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FOR IMMEDIATE RELEASE
PULASKI FINANCIAL REPORTS FIRST QUARTER EARNINGS UP 36%
o REPORTED EARNINGS PER SHARE INCREASES 38% OVER THE PRIOR YEAR
o NET INCOME INCREASES 36% TO $1.9 MILLION OVER PRIOR YEAR
o NET INTEREST INCOME EXPANDS 48% TO $5.1 MILLION OVER PRIOR YEAR
o LOAN PORTFOLIO INCREASES 8.5% DURING THE FIRST QUARTER OF FISCAL
YEAR 2005
o INVESTMENT AND TITLE DIVISIONS REPORT STRONG INITIAL RESULTS
ST. LOUIS, JANUARY 26, 2005--Pulaski Financial Corp. (Nasdaq: PULB) today
reported earnings for the quarter ended December 31, 2004 of $1,910,000, or
$0.33 per diluted share compared with earnings of $1,404,000, or $0.24 per
diluted share, during the same quarter a year ago. Total assets increased 8.6%
to $692.0 million for the three months ended December 31, 2004.
COMMERCIAL AND HOME EQUITY LOANS DRIVE EARNINGS GROWTH
William A. Donius, chairman and chief executive, commented, "We are benefiting
from our growth strategy over the past years as growth in the loan portfolio and
core deposits are contributing to higher levels of net interest income." Pulaski
Financial Corp. reported 48% growth in net interest income for the quarter
compared to the same period in 2003. The loan portfolio continues to expand;
increasing 8.5% to $553.8 million during the three months ended December 31,
2004. The Company's commercial loan portfolio grew $25.8 million to $131.1
million due primarily to growth in commercial real estate loans. In addition,
home equity loan balances increased $13.7 million to $171.9 million in
outstanding balances at December 31, 2004.
MORTGAGE AND RETAIL BANKING REVENUE KEY TO STRONG RESULTS
"The mortgage and retail banking divisions continue to serve as our primary
sources of other income," Donius noted. "Our lending team in St. Louis and
Kansas City have excellent reputations in their communities and are continuing
to increase market share. The mortgage division generated $1.1 million in
mortgage revenues on $209 million of loan sales and $214 million of loan
closings."
The bank reported a 17% increase in retail banking revenues, to $619,000 from
$530,000. "We continue to focus on winning over core checking account and money
market relationships," Donius said. "With each passing year, we are further
enhancing our retail banking infrastructure."
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NEW INVESTMENT AND TITLE COMPANY DIVISIONS
"Our Title and Investment divisions generated a growing momentum as evidenced by
$159,000 and $139,000 of revenue, respectively," Donius said. After expenses,
the title division contributed net revenues of $52,000, while the bond division
broke even. "We were pleasantly surprised how quickly the bond and title
divisions covered their fixed costs."
OTHER OPERATING RESULTS
Non-performing assets at December 31, 2004 were $6.0 million, an increase of
$617,000 due to growth in non-performing residential loans.
On December 15, 2004, the Company issued $10.0 million in trust-preferred
securities. The proceeds were contributed to the subsidiary bank in order to
increase the capital levels for the Bank. Donius stated, "The added trust
issuance improves our capital position, which will help us support the continued
growth of the Bank."
The company recorded additional compensation expense during the quarter ended
December 31, 2004 of $192,000 ($0.03 per diluted share after tax) due to
accelerating the pay-down of debt on the Employee Stock Ownership Plan. The
transaction resulted in the allocation of 10,000 additional shares of PULB
stock.
"Due to the strong growth trends, we remain very optimistic about our outlook
for the remainder of fiscal year 2005," said Donius. "Overall, we expect
continued strong double-digit earnings growth in fiscal 2005."
CONFERENCE CALL TODAY
Pulaski Financial management will discuss first-quarter results and other
developments today during a conference call beginning at 10 a.m. Central. The
call also will be simultaneously webcast and archived for three months at
http://www.viavid.net/detailpage.aspx?sid=000021AA. Participants may dial in for
the live call at (201) 689-8359. A replay will be available through February 9,
2004, at (201) 612-7415, using account code 3055 and conference ID 134180.
Pulaski Financial Corp., operating in its 83rd year through its subsidiary,
Pulaski Bank, serves customers throughout the St. Louis and Kansas City
metropolitan areas. The bank offers a full line of quality retail-banking
products through seven full-service banks. The company's website can be accessed
at www.pulaskibankstl.com. Visit the shareholder information page for useful and
comparative data.
STATEMENTS CONTAINED IN THIS NEWS RELEASE CONTAIN FORWARD-LOOKING STATEMENTS
WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.
THESE STATEMENTS ARE BASED ON THE BELIEFS AND EXPECTATIONS OF MANAGEMENT AS WELL
AS THE ASSUMPTIONS MADE USING INFORMATION CURRENTLY AVAILABLE TO MANAGEMENT.
SINCE THESE STATEMENTS REFLECT THE VIEWS OF MANAGEMENT CONCERNING FUTURE EVENTS,
THESE STATEMENTS INVOLVE RISKS, UNCERTAINTIES AND ASSUMPTIONS. THESE RISKS AND
UNCERTAINTIES INCLUDE AMONG OTHERS, CHANGES IN MARKET INTEREST RATES AND GENERAL
AND REGIONAL ECONOMIC CONDITIONS, CHANGES IN GOVERNMENT REGULATIONS, CHANGES IN
ACCOUNTING PRINCIPLES AND THE QUALITY OR COMPOSITION OF THE LOAN AND INVESTMENT
PORTFOLIOS AND OTHER FACTORS THAT MAY BE DESCRIBED IN THE COMPANY'S QUARTERLY
REPORTS ON FORM 10-Q FOR THE QUARTERS ENDED DECEMBER 31, MARCH 31 AND JUNE 30
AND IN ITS ANNUAL REPORT ON FORM 10-K, EACH FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION, WHICH ARE AVAILABLE AT THE SECURITIES AND EXCHANGE
COMMISSION'S INTERNET WEBSITE (WWW.SEC.GOV) AND TO WHICH REFERENCE IS HEREBY
MADE. THEREFORE, ACTUAL FUTURE RESULTS MAY DIFFER SIGNIFICANTLY FROM RESULTS
DISCUSSED IN THE FORWARD-LOOKING STATEMENTS.
FOR ADDITIONAL INFORMATION CONTACT:
William A. Donius, President & CEO Brien Gately
Pulaski Financial Corp. The Investor Relations Company
(314) 878-2210 Ext. 3610 (847) 296-4200
TABLES FOLLOW...
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PULASKI FINANCIAL CORP.
UNAUDITED CONSOLIDATED FINANCIAL HIGHLIGHTS
SELECTED BALANCE SHEET DATA: AT DEC 31, AT SEPT, 30
(IN THOUSANDS EXCEPT PER SHARE DATA) 2004 2004
------------ ------------
Total assets $ 691,959 $ 637,278
Loans receivable, net 553,832 510,584
Allowance for loan losses 5,845 5,463
Loans held for sale, net 56,386 49,152
Investment securities 15,186 13,701
FHLB stock 7,903 7,538
Mortgage-backed & related securities 6,041 6,574
Cash and cash equivalents 20,194 19,581
Deposits 446,745 406,799
FHLB advances 165,800 154,600
Subordinated debentures 19,590 9,279
Stockholders equity 43,206 40,674
Book value per share 7.80 7.47
ASSET QUALITY RATIOS:
Nonperforming loans as a percent of total loans 0.79% 0.76%
Nonperforming assets as a percent of total assets 0.86% 0.84%
Allowance for loan losses as a percent of total loans 0.95% 0.99%
Allowance for loan losses as a percent of nonperforming loans 119.63% 130.63%
THREE MONTHS
SELECTED OPERATING DATA: ENDED DEC 31,
(IN THOUSANDS EXCEPT SHARE DATA) 2004 2003
----------- ------------
Interest income $ 8,206 $ 5,088
Interest expense 3,120 1,625
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Net interest income 5,086 3,463
Provision for loan losses 349 264
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Net interest income after provision for loan losses 4,737 3,199
Retail banking fees 619 530
Mortgage revenues 1,118 1,152
Insurance commissions 67 42
Gain on sale of securities - 280
Revenue from title company operations 159 -
Revenue from investment division operations 139 -
Other 244 207
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Total non-interest income 2,346 2,211
Compensation expense 2,068 1,460
Other 1,912 1,710
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Total non-interest expense 3,980 3,170
Income before income taxes 3,103 2,240
Income taxes 1,193 836
----------- ------------
Net income $ 1,910 $ 1,404
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SHARE DATA
Weighted average shares outstanding-basic 5,466,310 5,370,094
Weighted average shares outstanding-diluted 5,823,973 5,777,435
EPS-basic $ 0.35 $ 0.26
EPS-diluted $ 0.33 $ 0.24
Dividends $ 0.09 $ 0.06
PERFORMANCE RATIOS:
Return on average assets 1.16% 1.36%
Return on average equity (1) 18.04% 15.08%
Interest rate spread 3.20% 3.53%
Net interest margin 3.31% 3.66%
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(1) Annualized