Pulaski Financial Corp. Reports Record Earnings Per Share with a 56% Increase In Net Income

-- EPS Reaches Record 24 Cents

-- Non-Interest Income Up 177% To $1.5 Million

-- Management Notes Benefits Of Retail Banking Focus



Apr 25, 2001, 01:00 ET from Pulaski Financial Corp.

    ST. LOUIS, April 25 /PRNewswire/ -- Pulaski Financial Corp.
 (Nasdaq: PULB) announced today that net income for the March 31, 2001, quarter
 was a record $703,000.  Net income per diluted share was $0.24 -- up
 85 percent from the adjusted net income per share of $0.13 reported for the
 three months ended March 31, 2000.
     For the six months ended March 31, 2001, net income totaled $1.2 million.
 Net income per diluted share was $0.42 -- up 45 percent from the adjusted net
 income per share of $0.29 reported for the prior-year period.  The prior-year
 results for both the quarter and the year-to-date period were significantly
 reduced by the non-recurring charge triggered by the Company's decision to pay
 a special $4.00 per share dividend to shareholders.
     The record-setting results were paced by a 177 percent increase in
 non-interest income.  The Company's mobilization of the retail franchise
 continues to prove rewarding as Pulaski Bank is now the second largest
 mortgage originator in the St. Louis area.  Originations of mortgage and home
 equity loans topped $133 million during the quarter -- up 196 percent from the
 prior year period.  Revenues from mortgage banking operations were $907,000 --
 up 314 percent from the prior year period.
     Supporting the greater volume of lending, deposits increased $16 million
 in the March 2001 quarter.  Retail banking fees were up 23 percent to
 $239,000.  Rounding out the expansion of the retail franchise, commissions on
 insurance sales were up 71 percent to $147,000.
     During the quarter, the Company continued to make progress in reducing its
 excess capital by repurchasing its stock.  Through March 31, 2001, the Company
 had repurchased 1,000,888 shares since the initial public offering (IPO) on
 December 2, 1998, at an average price of $11.20 per share.  The Company also
 paid approximately $11.5 million to shareholders during September 2000 in the
 form of a special $4.00 per share dividend.
     William A. Donius, Chairman and CEO remarked,  "Our strategic focus on
 retail banking is beginning to pay off.  Nearly half of our income for the
 most recent quarter came from non-interest sources.  We've positioned the
 Company to win over customers in our core areas of competence.  We continue to
 make good progress in this arena against a consolidating group of
 commodity-like competitors by creating a franchise that cannot be easy
 duplicated.  Shareholders are benefiting from our progress as shown by our
 more than doubling the return on equity for the quarter to over 9 percent from
 the less than 4 percent one year ago.
     "On our IPO date of December 2, 1998, shareholders essentially paid
 $39.7 million to own and control our franchise," Donius said.  "Since that
 time, we have returned more than $23 million of those dollars to shareholders
 and we believe that we have greatly enhanced the value of the franchise.  We
 are confident that creating an increasingly unique retail franchise, expanding
 our return on equity and rapidly growing earnings per share will provide
 excellent growth in value for all shareholders in the future."
     Pulaski Financial Corp. serves customers throughout the St. Louis
 metropolitan area through its subsidiary, Pulaski Bank.  The Bank offers a
 full line of quality retail banking products through five full-service
 offices.  The Company's website can be accessed at www.pulaskibankstl.com .
     Statements in this news release, which are not historical facts, are
 forward-looking statements as defined in the Private Securities Litigation
 Reform Act of 1995.  Such forward-looking statements, which contain the words
 "expects", "intends" and words of similar import, are subject to numerous
 risks and uncertainties disclosed from time to time in documents the Company
 files with the Securities and Exchange Commission, which could cause actual
 results to differ materially from the results currently anticipated.  Undue
 reliance should not be placed on such forward-looking statements.
 
 
     PULASKI FINANCIAL CORP.
     UNAUDITED CONSOLIDATED FINANCIAL HIGHLIGHTS
 
 
 
                                                At March 31,     At Sept 30,
                                                   2001              2000
                                               (in thousands)    (in thousands)
     SELECTED BALANCE SHEET  DATA:
 
     Total assets                                 $294,434         $283,120
     Loans receivable retained , net               212,131          209,919
     Loans held for sale, net                       39,865           14,374
     Investment securities                           6,794           19,128
     Mortgage-backed & related securities           13,179           22,604
     Cash and cash equivalents                      11,682            7,562
     Deposits                                      187,127          168,413
     FHLB advances                                  73,500           66,100
     Stockholders equity                            30,911           31,200
     Book value per share                            10.40             9.88
 
     Asset Quality Ratios:
     Nonperforming loans as a percent of
      total loans                                     0.75%            0.86%
     Nonperforming assets as a percent of
      total assets                                    0.69%            0.69%
     Allowance for loan losses as a
      percent of total loans                          0.60%            0.61%
     Allowance for loan losses as a
      percent of nonperforming loans                 79.59%           70.89%
 
 
                                                        Three months
                                                        ended March 31,
                                              2001         2000 (a)     2000
 
     SELECTED OPERATING DATA:         (in thousands, except per share data)
 
     Interest income                         $5,053         $4,369     $4,369
     Interest expense                         3,010          2,131      2,131
 
     Net interest income                      2,043          2,238      2,238
     Provision for loan losses                  190             72         72
 
     Net interest income after provision
      for loan losses                         1,853          2,166      2,166
 
     Retail banking fees                        239            194        194
     Mortgage revenues                          907            219        219
     Insurance commissions                      147             86         86
     Gain on sale of securities                  99              0          0
     Other                                      126             48         48
         Total non-interest income            1,518            547        547
 
     Compensation expense-special dividend      -                       1,356
     Compensation expense-other               1,196          1,056      1,056
     Other operating expenses                 1,022            942        942
         Total non-interest expense           2,218          1,998      3,354
 
     Income (loss) before income taxes        1,153            715       (641)
     Income taxes                               450            265        104
     Net income (loss)                         $703           $450      ($745)
 
     PER SHARE DATA
     Weighted average shares outstanding-
      basic                               2,886,507                 3,378,878
     Weighted average shares outstanding-
      diluted                             2,949,440                 3,396,462
     EPS-basic                                $0.24          $0.13     ($0.22)
     EPS-diluted                              $0.24          $0.13     ($0.22)
     Dividends                               $0.065                     $0.09
 
     Performance Ratios:
     Return on average assets                  0.99%                     (1.2%)
     Return on average equity                  9.04%          3.82%      (6.3%)
     Interest rate spread                      2.60%                     2.98%
     Net interest margin                       2.96%                     3.80%
 
     (a) Results adjusted for non-recurring expenses and taxes associated with
         $4.00 return of capital
 
 
                                                          Six months
                                                        ended March 31,
                                              2001         2000 (a)     2000
 
     SELECTED OPERATING DATA:
 
     Interest income                        $10,092         $8,571     $8,571
     Interest expense                         6,013          4,134      4,134
 
     Net interest income                      4,079          4,437      4,437
     Provision for loan losses                  280            199        199
 
     Net interest income after provision
      for loan losses                         3,799          4,238      4,238
 
     Retail banking fees                        603            368        368
     Mortgage revenues                        1,571            495        495
     Insurance commissions                      219            207        207
     Gain on sale of securities                  99              0          0
     Other                                      210             96         96
         Total non-interest income            2,702          1,166      1,166
 
     Compensation expense-special dividend      -                       1,356
     Compensation expense-other               2,616          1,916      1,916
     Other operating expenses                 1,870          1,892      1,892
         Total non-interest expense           4,486          3,808      5,164
 
     Income (loss) before income taxes        2,015          1,596        240
     Income taxes                               769            591        419
     Net income (loss)                       $1,246         $1,005      ($179)
 
     PER SHARE DATA
     Weighted average shares outstanding-
      basic                               2,922,792                 3,428,147
     Weighted average shares outstanding-
      diluted                             2,987,263                 3,446,424
     EPS-basic                                $0.43          $0.29     ($0.05)
     EPS-diluted                              $0.42          $0.29     ($0.05)
     Dividends                                $0.13                     $0.18
 
     Performance Ratios:
     Return on average assets                  0.90%                    (0.15%)
     Return on average equity                  8.05%          4.17%     (0.74%)
     Interest rate spread                      2.60%                     2.91%
     Net interest margin                       3.10%                     3.77%
 
     (a) Results adjusted for non-recurring expenses and taxes associated with
         $4.00 return of capital
 
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SOURCE Pulaski Financial Corp.
    ST. LOUIS, April 25 /PRNewswire/ -- Pulaski Financial Corp.
 (Nasdaq: PULB) announced today that net income for the March 31, 2001, quarter
 was a record $703,000.  Net income per diluted share was $0.24 -- up
 85 percent from the adjusted net income per share of $0.13 reported for the
 three months ended March 31, 2000.
     For the six months ended March 31, 2001, net income totaled $1.2 million.
 Net income per diluted share was $0.42 -- up 45 percent from the adjusted net
 income per share of $0.29 reported for the prior-year period.  The prior-year
 results for both the quarter and the year-to-date period were significantly
 reduced by the non-recurring charge triggered by the Company's decision to pay
 a special $4.00 per share dividend to shareholders.
     The record-setting results were paced by a 177 percent increase in
 non-interest income.  The Company's mobilization of the retail franchise
 continues to prove rewarding as Pulaski Bank is now the second largest
 mortgage originator in the St. Louis area.  Originations of mortgage and home
 equity loans topped $133 million during the quarter -- up 196 percent from the
 prior year period.  Revenues from mortgage banking operations were $907,000 --
 up 314 percent from the prior year period.
     Supporting the greater volume of lending, deposits increased $16 million
 in the March 2001 quarter.  Retail banking fees were up 23 percent to
 $239,000.  Rounding out the expansion of the retail franchise, commissions on
 insurance sales were up 71 percent to $147,000.
     During the quarter, the Company continued to make progress in reducing its
 excess capital by repurchasing its stock.  Through March 31, 2001, the Company
 had repurchased 1,000,888 shares since the initial public offering (IPO) on
 December 2, 1998, at an average price of $11.20 per share.  The Company also
 paid approximately $11.5 million to shareholders during September 2000 in the
 form of a special $4.00 per share dividend.
     William A. Donius, Chairman and CEO remarked,  "Our strategic focus on
 retail banking is beginning to pay off.  Nearly half of our income for the
 most recent quarter came from non-interest sources.  We've positioned the
 Company to win over customers in our core areas of competence.  We continue to
 make good progress in this arena against a consolidating group of
 commodity-like competitors by creating a franchise that cannot be easy
 duplicated.  Shareholders are benefiting from our progress as shown by our
 more than doubling the return on equity for the quarter to over 9 percent from
 the less than 4 percent one year ago.
     "On our IPO date of December 2, 1998, shareholders essentially paid
 $39.7 million to own and control our franchise," Donius said.  "Since that
 time, we have returned more than $23 million of those dollars to shareholders
 and we believe that we have greatly enhanced the value of the franchise.  We
 are confident that creating an increasingly unique retail franchise, expanding
 our return on equity and rapidly growing earnings per share will provide
 excellent growth in value for all shareholders in the future."
     Pulaski Financial Corp. serves customers throughout the St. Louis
 metropolitan area through its subsidiary, Pulaski Bank.  The Bank offers a
 full line of quality retail banking products through five full-service
 offices.  The Company's website can be accessed at www.pulaskibankstl.com .
     Statements in this news release, which are not historical facts, are
 forward-looking statements as defined in the Private Securities Litigation
 Reform Act of 1995.  Such forward-looking statements, which contain the words
 "expects", "intends" and words of similar import, are subject to numerous
 risks and uncertainties disclosed from time to time in documents the Company
 files with the Securities and Exchange Commission, which could cause actual
 results to differ materially from the results currently anticipated.  Undue
 reliance should not be placed on such forward-looking statements.
 
 
     PULASKI FINANCIAL CORP.
     UNAUDITED CONSOLIDATED FINANCIAL HIGHLIGHTS
 
 
 
                                                At March 31,     At Sept 30,
                                                   2001              2000
                                               (in thousands)    (in thousands)
     SELECTED BALANCE SHEET  DATA:
 
     Total assets                                 $294,434         $283,120
     Loans receivable retained , net               212,131          209,919
     Loans held for sale, net                       39,865           14,374
     Investment securities                           6,794           19,128
     Mortgage-backed & related securities           13,179           22,604
     Cash and cash equivalents                      11,682            7,562
     Deposits                                      187,127          168,413
     FHLB advances                                  73,500           66,100
     Stockholders equity                            30,911           31,200
     Book value per share                            10.40             9.88
 
     Asset Quality Ratios:
     Nonperforming loans as a percent of
      total loans                                     0.75%            0.86%
     Nonperforming assets as a percent of
      total assets                                    0.69%            0.69%
     Allowance for loan losses as a
      percent of total loans                          0.60%            0.61%
     Allowance for loan losses as a
      percent of nonperforming loans                 79.59%           70.89%
 
 
                                                        Three months
                                                        ended March 31,
                                              2001         2000 (a)     2000
 
     SELECTED OPERATING DATA:         (in thousands, except per share data)
 
     Interest income                         $5,053         $4,369     $4,369
     Interest expense                         3,010          2,131      2,131
 
     Net interest income                      2,043          2,238      2,238
     Provision for loan losses                  190             72         72
 
     Net interest income after provision
      for loan losses                         1,853          2,166      2,166
 
     Retail banking fees                        239            194        194
     Mortgage revenues                          907            219        219
     Insurance commissions                      147             86         86
     Gain on sale of securities                  99              0          0
     Other                                      126             48         48
         Total non-interest income            1,518            547        547
 
     Compensation expense-special dividend      -                       1,356
     Compensation expense-other               1,196          1,056      1,056
     Other operating expenses                 1,022            942        942
         Total non-interest expense           2,218          1,998      3,354
 
     Income (loss) before income taxes        1,153            715       (641)
     Income taxes                               450            265        104
     Net income (loss)                         $703           $450      ($745)
 
     PER SHARE DATA
     Weighted average shares outstanding-
      basic                               2,886,507                 3,378,878
     Weighted average shares outstanding-
      diluted                             2,949,440                 3,396,462
     EPS-basic                                $0.24          $0.13     ($0.22)
     EPS-diluted                              $0.24          $0.13     ($0.22)
     Dividends                               $0.065                     $0.09
 
     Performance Ratios:
     Return on average assets                  0.99%                     (1.2%)
     Return on average equity                  9.04%          3.82%      (6.3%)
     Interest rate spread                      2.60%                     2.98%
     Net interest margin                       2.96%                     3.80%
 
     (a) Results adjusted for non-recurring expenses and taxes associated with
         $4.00 return of capital
 
 
                                                          Six months
                                                        ended March 31,
                                              2001         2000 (a)     2000
 
     SELECTED OPERATING DATA:
 
     Interest income                        $10,092         $8,571     $8,571
     Interest expense                         6,013          4,134      4,134
 
     Net interest income                      4,079          4,437      4,437
     Provision for loan losses                  280            199        199
 
     Net interest income after provision
      for loan losses                         3,799          4,238      4,238
 
     Retail banking fees                        603            368        368
     Mortgage revenues                        1,571            495        495
     Insurance commissions                      219            207        207
     Gain on sale of securities                  99              0          0
     Other                                      210             96         96
         Total non-interest income            2,702          1,166      1,166
 
     Compensation expense-special dividend      -                       1,356
     Compensation expense-other               2,616          1,916      1,916
     Other operating expenses                 1,870          1,892      1,892
         Total non-interest expense           4,486          3,808      5,164
 
     Income (loss) before income taxes        2,015          1,596        240
     Income taxes                               769            591        419
     Net income (loss)                       $1,246         $1,005      ($179)
 
     PER SHARE DATA
     Weighted average shares outstanding-
      basic                               2,922,792                 3,428,147
     Weighted average shares outstanding-
      diluted                             2,987,263                 3,446,424
     EPS-basic                                $0.43          $0.29     ($0.05)
     EPS-diluted                              $0.42          $0.29     ($0.05)
     Dividends                                $0.13                     $0.18
 
     Performance Ratios:
     Return on average assets                  0.90%                    (0.15%)
     Return on average equity                  8.05%          4.17%     (0.74%)
     Interest rate spread                      2.60%                     2.91%
     Net interest margin                       3.10%                     3.77%
 
     (a) Results adjusted for non-recurring expenses and taxes associated with
         $4.00 return of capital
 
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 SOURCE  Pulaski Financial Corp.