Pulaski Financial (PULB) 8-K Pulaski Financial Reports Subsequent Event

Exhibit 99.1

PULASKI FINANCIAL REPORTS SUBSEQUENT EVENT

AND REVISES EARNINGS FOR FISCAL YEAR 2013

ST. LOUIS, November 11, 2013 — Pulaski Financial Corp. (Nasdaq Global Select:  PULB, the “Company”), the holding company for Pulaski Bank (the “Bank”), announced today that it has uncovered an elaborate fraud perpetrated against the Bank by one of its commercial loan customers.  The customer, who purported to be in the business of leasing equipment, appears to have created false documentation to purchase assets that did not exist and that were the subject of fictitious leases.  The Company’s total exposure to the customer at September 30, 2013 consisted of an aggregate outstanding loan balance of $7.0 million less collateral of $631,000 that was in the Bank’s possession.

Although the Company discovered this information subsequent to the October 29, 2013 announcement of its results for the fiscal year ended September 30, 2013, the Company determined that the loans had been impaired at September 30, 2013 based on the new information.  As a result, the Company will charge off the entire amount of the exposure that was determined to be unsecured effective September 30, 2013, resulting in an after-tax charge to earnings of $3.9 million.  Revised results for the fourth quarter of fiscal 2013 will be a loss attributable to common shares of $942,000, or $0.08 per diluted common share.  For the full fiscal year ended September 30, 2013, revised earnings available to common shares will be $8.3 million, or $0.74 per diluted common share.  Notwithstanding the reduced earnings resulting from this fraud, the Bank’s capital ratios remain above the level required to be considered “well-capitalized.”

The Company is aggressively pursuing collection of the loans from the customer and with the appropriate authorities.  The Company also believes it has a sound basis for filing an insurance claim under its fidelity bond, which carries a maximum limit of $5 million subject to certain adjustments.  However, the timing and potential results of these efforts are uncertain.

About Pulaski Financial

Pulaski Financial Corp., operating in its 91st year through its subsidiary, Pulaski Bank, offers a full line of quality retail and commercial banking products through 13 full-service branch offices in the St. Louis metropolitan area.  The Bank also offers mortgage loan products through loan production offices in the St. Louis and Kansas City metropolitan areas, mid-Missouri, southwestern Missouri, eastern Kansas, Omaha, Nebraska, and Council Bluffs, Iowa. The Company’s website can be accessed at www.pulaskibank.com.

This news release may contain forward-looking statements about Pulaski Financial Corp., which the Company intends to be covered under the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.  Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements. These forward-looking statements cover, among other things, anticipated future revenue and expenses and the future plans and prospects of the Company. These statements often include the words “may,” “could,” “would,” “should,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions. You are cautioned that forward-looking statements involve uncertainties, and important factors could cause actual results to differ materially from those anticipated, including changes in general business and economic conditions, changes in interest rates, legal and regulatory developments, increased competition from both banks and non-banks, changes in customer behavior and preferences,  and effects of critical accounting policies and judgments. For discussion of these and other risks that may cause actual results to differ from expectations, refer to our Annual Report on Form 10-K for the year ended September 30, 2012 on file with the SEC, including the sections entitled “Risk Factors.”  These risks and uncertainties should be considered in

evaluating forward-looking statements and undue reliance should not be placed on such statements.  Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update them in light of new information or future events.

For Additional Information Contact:

Paul Milano

Chief Financial Officer

Pulaski Financial Corp.

(314) 317-5046

Revised tables follow...

2

PULASKI FINANCIAL CORP.

CONDENSED STATEMENTS OF INCOME

(Unaudited)

	(Dollars in thousands except per share data)
	Three Months Ended
	September 30,			June 30,			September 30,
	2013			2013			2012
Interest income	$	12,117		$	12,707		$	13,411
Interest expense	1,406			1,545			1,963
Net interest income	10,711			11,162			11,448
Provision for loan losses	6,850			1,800			2,950
Net interest income after provision for loan losses	3,861			9,362			8,498
Retail banking fees	1,050			998			1,124
Mortgage revenues	2,752			3,444			2,779
Investment brokerage revenues	231			185			282
Other	471			287			446
Total non-interest income	4,504			4,914			4,631
Salaries and employee benefits	4 ,354			4,414			3,966
Occupancy, equipment and data processing expense	2,543			2,664			2,450
Advertising	157			157			138
Professional services	600			569			411
Real estate foreclosure losses and expense, net	644			112			1,256
FDIC deposit insurance premium expense	276			265			439
Other	908			617			668
Total non-interest expense	9,482			8,798			9,328
(Loss) income before income taxes	(1,117		)	5,478			3,801
Income tax (benefit) expense	(537		)	1,870			1,129
Net (loss) income after tax	(580		)	3,608			2,672
Expense (benefit) from repurchase of preferred stock, net	(20		)	43			365
Preferred stock dividends	(342		)	(388		)	(493		)
(Loss) earnings available to common shares	$	(942	)	$	3,263		$	2,544
Annualized Performance Ratios
Return on average assets	(0.18		)%	1.11		%	0.82		%
Return on average common equity	(3.71		)%	13.08		%	10.80		%
Interest rate spread	3.54		%	3.54		%	3.61		%
Net interest margin	3.65		%	3.65		%	3.75		%
SHARE DATA
Weighted average shares outstanding - basic	10,922,253			10,914,913			10,742,660
Weighted average shares outstanding - diluted	11,181,889			11,147,049			11,019,007
Basic (loss) earnings per common share	$	(0.09	)	$	0.30		$	0.24
Diluted (loss) earnings per common share	$	(0.08	)	$	0.29		$	0.23
Dividends per common share	$	0.095		$	0.095		$	0.095

PULASKI FINANCIAL CORP.

CONDENSED STATEMENTS OF INCOME, Continued

(Unaudited)

	(Dollars in thousands except per share data)
	Twelve Months Ended September 30,
	2013			2012
Interest income	$	51,614		$	55,708
Interest expense	6,445			8,678
Net interest income	45,169			47,030
Provision for loan losses	12,090			14,450
Net interest income after provision for loan losses	33,079			32,580
Retail banking fees	4,195			4,106
Mortgage revenues	12,332			8,773
Investment brokerage revenues	974			1,402
Other	1,269			1,423
Total non-interest income	18,770			15,704
Salaries and employee benefits	17,747			15,263
Occupancy, equipment and data processing expense	10,112			9,290
Advertising	545			519
Professional services	2,524			2,084
Real estate foreclosure losses and expenses, net	2,210			3,039
FDIC deposit insurance premiums	1,252			1,757
Other	2,853			2,239
Total non-interest expense	37,243			34,191
Income before income taxes	14,606			14,093
Income tax expense	4,797			4,263
Net income after tax	9,809			9,830
Benefit from repurchase of preferred stock, net	22			365
Preferred stock dividends	(1,542		)	(2,048		)
Earnings available to common shares	$	8,289		$	8,147
Annualized Performance Ratios
Return on average assets	0.75		%	0.75		%
Return on average common equity	8.42		%	8.75		%
Interest rate spread	3.59		%	3.71		%
Net interest margin	3.71		%	3.86		%
SHARE DATA
Weighted average shares outstanding - basic	10,892,136			10,679,091
Weighted average shares outstanding - diluted	11,132,941			10,993,862
Basic earnings per common share	$	0.76		$	0.76
Diluted earnings per common share	$	0.74		$	0.74
Dividends per common share	$	0.38		$	0.38

PULASKI FINANCIAL CORP.

BALANCE SHEET DATA

(Unaudited)

	(Dollars in thousands)
	September 30,			June 30,			September 30,
	2013			2013			2012
Total assets	$	1,275,944		$	1,348,402		$	1,347,517
Loans receivable, net	988,668			1,001,095			975,728
Allowance for loan losses	18,306			18,581			17,117
Mortgage loans held for sale, net	70,473			144,636			180,575
Investment securities	43,211			41,014			27,578
FHLB stock	4,777			6,552			5,559
Cash and cash equivalents	86,309			69,555			62,335
Deposits	1,010,812			1,042,900			1,081,698
Borrowed Money	113,483			145,877			109,981
Subordinated debentures	19,589			19,589			19,589
Stockholders’ equity - preferred	17,310			23,225			24,976
Stockholders’ equity - common	98,748			100,068			93,191
Total book value per common share	$	8.65		$	8.80		$	8.21
Tangible book value per common share	$	8.30		$	8.46		$	7.86
Regulatory capital ratios - Pulaski Bank only: (1)
Tier 1 leverage capital (to average assets)	10.05		%	10.08		%	9.63		%
Total risk-based capital (to risk-weighted assets)	14.03		%	14.15		%	13.58		%

(1) September 30, 2013 regulatory capital ratios are estimated.

	September 30,			June 30,			September 30,
	2013			2013			2012
LOANS RECEIVABLE
Single-family residential:
Residential first mortgage	$	212,357		$	213,650		$	211,760
Residential second mortgage	43,208			43,181			42,091
Home equity lines of credit	110,906			121,760			143,931
Total single-family residential	366,471			378,591			397,782
Commercial:
Commercial and multi-family real estate	348,003			341,778			323,334
Land acquisition and development	40,430			45,533			47,263
Real estate construction and development	20,548			21,227			21,907
Commercial and industrial	226,829			228,071			197,755
Total commercial	635,810			636,609			590,259
Consumer and installment	2,761			2,124			2,674
	1,005,042			1,017,324			990,715
Add (less):
Deferred loan costs	3,188			3,147			3,116
Loans in process	(1,256		)	(795		)	(986		)
Allowance for loan losses	(18,306		)	(18,581		)	(17,117		)
Total	$	988,668		$	1,001,095		$	975,728
Weighted average rate at end of period	4.45		%	4.57		%	4.92		%

	September 30, 2013				June 30, 2013				September 30, 2012
			Weighted				Weighted				Weighted
			Average				Average				Average
			Interest				Interest				Interest
	Balance		Rate		Balance		Rate		Balance		Rate
	(Dollars in thousands)
DEPOSITS
Demand Deposit Accounts:
Non-interest-bearing checking	$	168,033	0.00	%	$	172,358	0.00	%	$	173,374	0.00	%
Interest-bearing checking	237,362		0.10	%	250,655		0.09	%	276,542		0.14	%
Savings accounts	39,845		0.13	%	39,288		0.13	%	37,258		0.14	%
Money market	206,927		0.26	%	192,252		0.26	%	149,194		0.26	%
Total demand deposit accounts	652,167		0.13	%	654,553		0.12	%	636,368		0.13	%
Certificates of Deposit:
Retail	313,217		0.84	%	331,938		0.92	%	365,848		1.17	%
CDARS	45,428		0.28	%	56,409		0.29	%	79,483		0.34	%
Total certificates of deposit	358,645		0.77	%	388,347		0.83	%	445,331		1.02	%
Total deposits	$	1,010,812	0.35	%	$	1,042,900	0.39	%	$	1,081,699	0.50	%

PULASKI FINANCIAL CORP.

RESIDENTIAL MORTGAGE LOAN ACTIVITY

(Unaudited)

RESIDENTIAL MORTGAGE LOANS ORIGINATED FOR SALE

	2013						2012
	Mortgage		Home				Mortgage		Home
	Refinancings		Purchases		Total		Refinancings		Purchases		Total
	(In thousands)
First quarter	$	230,399	$	149,241	$	379,640	$	238,393	$	132,843	$	371,236
Second quarter	186,515		123,009		309,524		190,436		118,288		308,724
Third quarter	133,380		224,655		358,035		150,778		199,770		350,548
Fourth quarter	44,144		202,571		246,715		218,931		161,730		380,661
Total	$	594,438	$	699,476	$	1,293,914	$	798,538	$	612,631	$	1,411,169

RESIDENTIAL MORTGAGE LOANS SOLD TO INVESTORS

	2013						2012
					Net						Net
	Loans		Mortgage		Profit		Loans		Mortgage		Profit
	Sold		Revenues		Margin		Sold		Revenues		Margin
	(Dollars in thousands)
First quarter	$	367,388	$	2,988	0.81	%	$	328,582	$	1,686	0.51	%
Second quarter	349,870		3,148		0.90	%	309,121		1,897		0.61	%
Third quarter	354,544		3,444		0.97	%	342,158		2,410		0.70	%
Fourth quarter	323,979		2,752		0.85	%	342,619		2,780		0.81	%
Total	$	1,395,781	$	12,332	0.88	%	$	1,322,480	$	8,773	0.66	%

PULASKI FINANCIAL CORP.

NONPERFORMING ASSETS

(Unaudited)

	(In thousands)
	September 30,		June 30,		September 30,
	2013		2013		2012
NON-PERFORMING ASSETS
Non-accrual loans:
Residential real estate first mortgages	$	5,335	$	3,675	$	4,248
Residential real estate second mortgages	442		815		610
Home equity lines of credit	2,124		2,588		1,613
Commercial and multi-family real estate	1,774		2,467		6,119
Real estate construction and development	—		—		358
Commercial and industrial	—		3,580		4,412
Consumer and other	78		1		102
Total non-accrual loans	9,753		13,126		17,462
Troubled debt restructured: (1)
Current under the restructured terms:
Residential real estate first mortgages	5,169		5,549		11,809
Residential real estate second mortgages	904		780		1,473
Home equity lines of credit	498		647		1,266
Commercial and multi-family real estate	2,585		6,476		6,388
Land acquisition and development	43		44		—
Real estate construction and development	23		44		34
Commercial and industrial	2,055		675		1,186
Consumer and other	28		31		42
Total current troubled debt restructurings	11,305		14,246		22,198
Past due under restructured terms:
Residential real estate first mortgages	3,974		2,155		5,463
Residential real estate second mortgages	155		357		166
Home equity lines of credit	178		169		542
Commercial and multi-family real estate	1,652		1,838		1,607
Land acquisition and development	19		—		39
Commercial and industrial	572		1,298		—
Total past due troubled debt restructurings	6,550		5,817		7,817
Total troubled debt restructurings	17,855		20,063		30,015
Total non-performing loans	27,608		33,189		47,477
Real estate acquired in settlement of loans:
Residential real estate	3,019		5,853		2,651
Commercial real estate	3,376		3,898		11,301
Total real estate acquired in settlement of loans	6,395		9,751		13,952
Total non-performing assets	$	34,003	$	42,940	$	61,429

(1) Troubled debt restructured includes non-accrual loans totaling $17.9 million, $20.1 million and $30.0 million at September 30, 2013, June 30, 2013 and September 30, 2012, respectively.  These totals are not included in non-accrual loans above.

PULASKI FINANCIAL CORP.

ALLOWANCE FOR LOAN LOSSES AND ASSET QUALITY RATIOS

(Unaudited)

	(Dollars in thousands)
	Three Months					Twelve Months
	Ended September 30,					Ended September 30,
	2013		2012			2013		2012
ALLOWANCE FOR LOAN LOSSES
Allowance for loan losses, beginning of period	$	18,581	$	18,001		$	17,117	$	25,714
Provision charged to expense	6,850		2,950			12,090		14,450
Charge-offs:
Residential real estate loans:
First mortgages	434		1,447			3,364		8,035
Second mortgages	555		872			1,633		2,696
Home equity	496		1,938			2,402		6,029
Total residential real estate loans	1,485		4,257			7,399		16,760
Commercial loans:
Commercial and multi-family real estate	10		57			1,013		4,055
Land acquisition & development	49		—			73		262
Real estate construction and development	—		—			260		298
Commercial and industrial loans	6,350		42			6,834		2,067
Total commercial loans	6,409		99			8,180		6,682
Consumer and other	22		(288		)	106		215
Total charge-offs	7,916		4,068			15,685		23,657
Recoveries:
Residential real estate loans:
First mortgages	21		40			80		81
Second mortgages	79		61			232		103
Home equity	235		47			544		150
Total residential real estate loans	335		148			856		334
Commercial loans:
Commercial and multi-family real estate	419		54			1,638		119
Land acquisition & development	1		1			23		8
Real estate construction and development	3		—			1,800		10
Commercial and industrial	21		24			421		117
Total commercial loans	444		79			3,882		254
Consumer and other	12		7			46		21
Total recoveries	791		234			4,784		610
Net charge-offs	7,125		3,834			10,901		23,047
Balance, end of period	$	18,306	$	17,117		$	18,306	$	17,117

	September 30,		June 30,		September 30,
	2013		2013		2012
ASSET QUALITY RATIOS
Non-performing loans as a percent of total loans	2.75	%	3.26	%	4.79	%
Non-performing loans excluding current troubled debt restructurings as a percent of total loans	1.62	%	1.86	%	2.55	%
Non-performing assets as a percent of total assets	2.66	%	3.18	%	4.56	%
Non-performing assets excluding current troubled debt restructurings as a percent of total assets	1.78	%	2.13	%	2.91	%
Allowance for loan losses as a percent of total loans	1.82	%	1.83	%	1.73	%
Allowance for loan losses as a percent of non-performing loans	66.31	%	55.99	%	36.05	%
Allowance for loan losses as a percent of non-performing loans excluding current troubled debt restructurings and related allowance for loan losses	106.56	%	92.30	%	65.56	%

PULASKI FINANCIAL CORP.

AVERAGE BALANCE SHEETS

(Unaudited)

	(Dollars in thousands)
	Three Months Ended
	September 30, 2013						September 30, 2012
			Interest		Average				Interest		Average
	Average		and		Yield/		Average		and		Yield/
	Balance		Dividends		Cost		Balance		Dividends		Cost
Interest-earning assets:
Loans receivable	$	1,011,550	$	11,081	4.38	%	$	1,000,200	$	11,807	4.72	%
Mortgage loans held for sale	97,804		950		3.89	%	171,305		1,502		3.51	%
Other interest-earning assets	63,003		86		0.55	%	49,680		102		0.82	%
Total interest-earning assets	1,172,357		12,117		4.13	%	1,221,185		13,411		4.39	%
Non-interest-earning assets	82,212						89,511
Total assets	$	1,254,569					$	1,310,696
Interest-bearing liabilities:
Deposits	$	850,366	$	1,035	0.49	%	$	925,221	$	1,589	0.69	%
Borrowed money	95,418		371		1.55	%	75,222		374		1.98	%
Total interest-bearing liabilities	945,784		1,406		0.59	%	1,000,443		1,963		0.78	%
Non-interest-bearing deposits	171,722						171,189
Non-interest-bearing liabilities	15,426						16,461
Stockholders’ equity	121,637						122,603
Total liabilities and stockholders’ equity	$	1,254,569					$	1,310,696
Net interest income			$	10,711					$	11,448
Interest rate spread					3.54	%					3.61	%
Net interest margin					3.65	%					3.75	%

	(Dollars in thousands)
	Twelve Months Ended
	September 30, 2013						September 30, 2012
			Interest		Average				Interest		Average
	Average		and		Yield/		Average		and		Yield/
	Balance		Dividends		Cost		Balance		Dividends		Cost
Interest-earning assets:
Loans receivable	$	1,005,985	$	46,044	4.58	%	$	1,021,439	$	49,961	4.89	%
Mortgage loans held for sale	152,340		5,170		3.39	%	146,269		5,338		3.65	%
Other interest-earning assets	58,745		400		0.68	%	51,548		409		0.79	%
Total interest-earning assets	1,217,070		51,614		4.24	%	1,219,256		55,708		4.57	%
Non-interest-earning assets	83,536						88,681
Total assets	$	1,300,606					$	1,307,937
Interest-bearing liabilities:
Deposits	$	899,241	$	4,965	0.55	%	$	937,063	$	7,193	0.77	%
Borrowed money	91,621		1,480		1.62	%	71,490		1,485		2.08	%
Total interest-bearing liabilities	990,862		6,445		0.65	%	1,008,553		8,678		0.86	%
Noninterest-bearing deposits	172,814						160,331
Noninterest-bearing liabilities	14,909						15,057
Stockholders’ equity	122,021						123,996
Total liabilities and stockholders’ equity	$	1,300,606					$	1,307,937
Net interest income			$	45,169					$	47,030
Interest rate spread					3.59	%					3.71	%
Net interest margin					3.71	%					3.86	%

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