db368bfb-df13-43a3-b9e8-f9a1b92f7883.pdf



PULASKI FINANCIAL REPORTS RECORD EARNINGS FOR FISCAL YEAR 2015


Full Year Highlights

  • Diluted EPS of $1.17 in fiscal 2015 versus $0.88 last year

  • Return on average assets was 1.01% in 2015 compared with 0.87% in 2014

  • Return on average common equity for 2015 at 12.09% versus 9.80% in 2014

  • Book value per common share grew to $10.19 at year-end 2015 from $9.31 last year end

  • Mortgage revenues up 152% from prior year on increases in loans originated for home purchase and refinancing activity combined with an improvement in the net profit margin

  • Net interest income increased 5% over prior year as the result of substantial growth in average loan balances partially offset by a decline in the net interest margin

  • Non-interest expense up 15% due in large part to increases in compensation expense and occupancy and data processing expense related to the Company's mortgage banking activities

  • Loan portfolio balance at September 30, 2015 up 7% from same time last year on increases in commercial and residential loans

  • Deposits increased 11% from September 30, 2014 on substantial growth in retail, commercial and municipal and public entity deposits

  • Decrease of 31% in the balance of non-performing assets dropped the ratio of non- performing assets to total assets to 1.49% at September 30, 2015

  • For the full year, the Company received $2.0 million from an insurance settlement related to a fraud perpetrated against the Company by one of its commercial loan customers in a prior year


    Linked-Quarter Highlights

  • Diluted EPS of $0.29 in September 2015 quarter versus $0.36 in June 2015 quarter

  • Annualized return on average assets was 0.98% in September 2015 quarter compared with 1.22% in June 2015 quarter

  • Annualized return on average common equity for September 2015 quarter at 11.79% versus 14.46% in June 2015 quarter

  • Higher returns in the June 2015 quarter primarily related to the receipt of $1.3 million representing the final insurance settlement for the customer loan fraud

  • Loan portfolio increased $13.8 million, or 1%

  • Deposits decreased $20.0 million, or 2% from June 30, 2015 as growth in commercial and retail deposits was more than offset by decreases in brokered deposits and municipal and public entity deposits

  • Level of non-performing assets decreased 8%


ST. LOUIS, October 27, 2015 -Pulaski Financial Corp. (Nasdaq Global Select: PULB, the 'Company') reported net income available to common shareholders for the fiscal year ended September 30, 2015 of $14.1 million, or $1.17 per diluted common share compared with

$10.2 million, or $0.88 per diluted common share, reported for fiscal 2014. For the quarter ended September 30, 2015, the Company reported net income available to common

shareholders of $3.6 million, or $0.29 per diluted common share, compared with $4.4 million, or

$0.36 per diluted common share, for the linked quarter ended June 30, 2015 and net income of

$3.3 million, or $0.27 per diluted common share, for the quarter ended September 30, 2014.


Earnings for the year represent a historical high for the Company and were fueled by strong operating revenues combined with low credit costs. The Company saw a 152% increase in mortgage revenues over last year, as the demand for loans to finance home purchases remained strong. The Company saw a 42% increase in loans to finance home purchases compared with last year, representing the highest purchase money mortgage volume in over five years. In addition, low market interest rates continued to fuel strong customer demand for loans to refinance existing mortgages.


Net interest income for the year was up 5% from fiscal 2014 as the Company benefited from substantial growth in portfolio loans and residential mortgage loans held for sale. This growth more than offset a decline in the net interest margin that resulted primarily from market driven declines in loan rates. The total balance of portfolio loans increased 7% from September 30, 2014 as the result of an increase in commercial loans and residential real estate loans.


The Company continued to be successful in raising deposits while carefully managing the total cost of deposits. Total deposits increased 11% during the year, while the weighted average period-end cost of total deposits increased to 0.39% at September 30, 2015 from 0.29% at September 30, 2014.


Also increasing non-interest income during the year ended September 30, 2015 were payments received by the Company under its fidelity bond, which were related to an elaborate fraud perpetrated against the Company by one of its commercial loan customers in a prior year. The Company received $688,000 and $1.3 million from its insurance carrier during the quarters ended December 31, 2014 and June 30, 2015, respectively. The payments were equivalent to

$0.11 per average diluted share after tax and represented the Company's final settlement with its insurance carrier.


Gary Douglass, President and Chief Executive Officer, commented, 'We are very pleased with both our fourth fiscal quarter and our record year of net income and earnings per share. While we do not expect to replicate the outstanding earnings growth performance of fiscal 2015 (21% excluding the insurance recovery), our goal is to deliver a modest level of earnings growth in fiscal 2016.'


Conference Call Tomorrow


Pulaski Financial's management will discuss fiscal 2015 results and other developments tomorrow, October 28, 2015, during a conference call beginning at 11 a.m. EST (10 a.m. CST). The call will also be simultaneously webcast and archived for three months at: http://www.pulaskibank.com/our-story/shareholder-relations/. Participants in the conference call may dial 877-473-3757, conference ID 67756700, a few minutes before the start time. The call will also be available for replay for three months at 855-859-2056 or 404-537-3406, conference ID 67756700.

About Pulaski Financial


Pulaski Financial Corp., operating in its 93rd year through its subsidiary, Pulaski Bank, N.A., 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, Kansas City, Chicago, and Omaha-Council Bluffs metropolitan areas, mid-Missouri, southwestern Missouri, eastern Kansas, and Lincoln, Nebraska. 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, 2014 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) 878-2210


Tables follow...


PULASKI FINANCIAL CORP.

CONDENSED STATEMENTS OF INCOME

(Unaudited)

(Dollars in thousands except per share data)

Three Months Ended

September 30,

June 30,

September 30,

2015

2015

2014

Interest income

$ 12,933

$ 12,837

$ 12,397

Interest expense

1,476

1,428

1,314

Net interest income

11,457

11,409

11,083

Provision for loan losses

500

1,000

310

Net interest income after provision for loan losses

10,957

10,409

10,773

Mortgage revenues

3,103

3,106

1,134

Retail banking fees

1,094

1,078

1,119

SBA loan sale revenues

14

97

72

Proceeds from insurance settlement

-

1,325

-

Other

305

444

295

Total non-interest income

4,516

6,050

2,620

Salaries and employee benefits

5,682

5,233

4,297

Occupancy, equipment and data processing expense

3,221

3,008

2,694

Advertising

182

162

164

Professional services

441

486

436

FDIC deposit insurance premium expense

229

265

289

Real estate foreclosure (recoveries) losses and expenses, net

29

85

(28)

Other

556

613

586

Total non-interest expense

10,340

9,852

8,438

Income before income taxes

5,133

6,607

4,955

Income tax expense

1,581

2,254

1,532

Net income after tax

3,552

4,353

3,423

Preferred stock dividends and premium paid on repurchases

-

-

(127)

Earnings available to common shares

$ 3,552

$ 4,353

$ 3,296


Annualized Performance Ratios

Return on average assets

0.98%

1.22%

1.03%

Return on average common equity

11.79%

14.46%

11.68%

Interest rate spread

3.27%

3.34%

3.46%

Net interest margin

3.38%

3.43%

3.56%

SHARE DATA

Weighted average common shares outstanding - basic

11,883,373

11,896,781

11,671,891

Weighted average common shares outstanding - diluted

12,065,763

12,081,029

12,095,294

Basic earnings per common share

$0.30

$0.37

$0.28

Diluted earnings per common share

$0.29

$0.36

$0.27

Dividends per common share

$0.095

$0.095

$0.095

distributed by