Pulaski Financial Reports 47% Increase in Second Fiscal Quarter EPS

Current Versus Prior Year Quarter Highlights

• Diluted EPS were $0.25 in March 2015 quarter versus $0.17 in same quarter last year; up 44% to $0.52 for six months ended March 31, 2015 versus $0.36 last year
• Annualized return on average assets improved to 0.91% in March 2015 quarter compared with 0.67% in last year’s quarter
• Annualized return on average common equity for March 2015 quarter increased to 10.48% versus 7.57% in March 2014 quarter
• Mortgage revenues more than quadrupled from prior year quarter on increases in loans originated for refinancing and home purchase activity combined with an improvement in the net profit margin
• Net interest income increased 6% over prior year quarter as the result of substantial growth in average loan balances partially offset by a decline in the net interest margin
• Loan portfolio balance at March 31, 2015 up 8% from same time last year, but down 2% from December 31, 2014 on shrinkage in commercial and residential loans
• Deposits increased 3% during quarter on substantial growth in municipal and public entity and retail deposits
• Additional 6% improvement in non-performing assets dropped the ratio of non-performing assets to total assets below 2% for first time since September 30, 2008
• Book value per common share grew to $9.67 at March 31, 2015 from $9.50 at December 31, 2014

ST. LOUIS--(BUSINESS WIRE)-- Pulaski Financial Corp. (Nasdaq Global Select: PULB, the “Company”) reported net income available to common shareholders for the quarter ended March 31, 2015 of $3.1 million, or $0.25 per diluted common share, compared with $1.9 million, or $0.17 per diluted common share, for the same quarter last year. For the six months ended March 31, 2015, net income available to common shareholders was $6.2 million, or $0.52 per diluted common share, compared with $4.1 million, or $0.36 per diluted common share, for the same period last year.

The Company reported sharply higher returns for the quarter ended March 31, 2015 compared with the same quarter last year. The annualized return on average assets increased to 0.91%, up 24 basis points from 0.67% reported in last year’s quarter. The annualized average return on common equity increased to 10.48%, up 291 basis points from 7.57% reported for the quarter ended March 31, 2014.

Earnings for the quarter were marked by a 332% increase in mortgage revenues over the same quarter last year as low market interest rates fueled customer demand for loans to refinance existing mortgages. In addition, the Company saw a 57% increase in loans to finance home purchases compared with last year’s quarter.

Net interest income for the quarter saw a 6% increase from the March 2014 quarter as the Company continued to benefit from substantial loan growth experienced in earlier quarters. This growth more than offset a decline in the net interest margin that resulted primarily from market driven declines in portfolio loan rates. However, the total balance of loans receivable decreased 2% from December 31, 2014 as the result of a decrease in residential real estate loans, and to a lesser extent, a decrease in commercial loans.

The Company continued to be successful in raising deposits while controlling the total cost of deposits. Total deposits increased 3% during the quarter, while the average cost of deposits remained almost unchanged from the same quarter last year.

Gary Douglass, President and Chief Executive Officer, commented, “Considering that the March quarter is typically negatively impacted by mortgage and other seasonality, we are particularly pleased with our overall operating results for the current quarter. The better than anticipated results were largely driven by increased mortgage-related revenues and the absence of net credit costs for the quarter.”

Douglass concluded, “We are looking forward to an even stronger second half of our fiscal year driven by a continued strengthening of mortgage revenues, a restart of modest commercial and residential portfolio growth and continued low net credit costs.”

Conference Call Tomorrow

Pulaski Financial’s management will discuss second quarter results and other developments tomorrow, April 29, 2015, during a conference call beginning at 11 a.m. EDT (10 a.m. CDT). 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 67756688, a few minutes before the start time. The call will also be available for replay through May 30, 2015 at 855-859-2056 or 404-537-3406, conference ID 67756688.

About Pulaski Financial

Pulaski Financial Corp., operating in its 93rd 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, Kansas City, and Chicago 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, 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.

PULASKI FINANCIAL CORP.
CONDENSED STATEMENTS OF INCOME
(Unaudited)
			(Dollars in thousands except per share data)
			Three Months Ended
			March 31,					December 31,					March 31,
			2015					2014					2014
Interest income			$	12,037				$	12,223				$	11,374
Interest expense				1,375					1,373					1,313
Net interest income				10,662					10,850					10,061
Provision for loan losses				-					500					500
Net interest income after provision for loan losses				10,662					10,350					9,561
Mortgage revenues				2,189					1,474					506
Retail banking fees				1,030					1,055					988
SBA loan sale revenues				113					179					-
Other				329					1,008					360
Total non-interest income				3,661					3,716					1,854
Salaries and employee benefits				5,501					4,970					4,574
Occupancy, equipment and data processing expense				2,997					2,794					2,732
Advertising				194					172					126
Professional services				422					497					503
FDIC deposit insurance premium expense				251					259					263
Real estate foreclosure (recoveries) losses and expenses, net				(159	)				77					(412	)
Other				523					557					452
Total non-interest expense				9,729					9,326					8,238
Income before income taxes				4,594					4,740					3,177
Income tax expense				1,506					1,605					1,074
Net income after tax				3,088					3,135					2,103
Preferred stock dividends and premium paid on repurchases				-					-					(188	)
Earnings available to common shares			$	3,088				$	3,135				$	1,915
Annualized Performance Ratios
Return on average assets				0.91	%				0.93	%				0.67	%
Return on average common equity				10.48	%				10.91	%				7.57	%
Interest rate spread				3.27	%				3.32	%				3.31	%
Net interest margin				3.36	%				3.43	%				3.41	%
SHARE DATA
Weighted average common shares outstanding - basic				11,805,494					11,715,120					10,969,484
Weighted average common shares outstanding - diluted				12,115,757					12,063,777					11,357,212
Basic earnings per common share			$0.26					$0.27					$0.17
Diluted earnings per common share			$0.25					$0.26					$0.17
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)
			Six Months Ended March 31,
			2015					2014
Interest income			$	24,261				$	22,873
Interest expense				2,749					2,636
Net interest income				21,512					20,237
Provision for loan losses				500					700
Net interest income after provision for loan losses				21,012					19,537
Mortgage revenues				3,663					1,540
Retail banking fees				2,085					2,034
SBA loan sale revenues				293					-
Other				1,336					752
Total non-interest income				7,377					4,326
Salaries and employee benefits				10,471					8,765
Occupancy, equipment and data processing expense				5,791					5,360
Advertising				365					306
Professional services				919					1,325
FDIC deposit insurance premiums				511					524
Real estate foreclosure (recoveries) losses and expenses, net				(82	)				(285	)
Other				1,080					943
Total non-interest expense				19,055					16,938
Income before income taxes				9,334					6,925
Income tax expense				3,111					2,319
Net income after tax				6,223					4,606
Preferred stock dividends				-					(483	)
Earnings available to common shares			$	6,223				$	4,123
Annualized Performance Ratios
Return on average assets				0.92	%				0.74	%
Return on average common equity				10.69	%				8.20	%
Interest rate spread				3.30	%				3.36	%
Net interest margin				3.39	%				3.47	%
SHARE DATA
Weighted average shares outstanding - basic				11,759,811					10,959,019
Weighted average shares outstanding - diluted				12,079,766					11,349,010
Basic earnings per common share			$0.53					$0.38
Diluted earnings per common share			$0.52					$0.36
Dividends per common share			$0.19					$0.19

PULASKI FINANCIAL CORP.
SELECTED BALANCE SHEET DATA
(Unaudited)
(Dollars in thousands)
			March 31,								December 31,								September 30,
			2015								2014								2014
Total assets			$	1,383,450							$	1,426,456							$	1,380,096
Loans receivable, net				1,113,271								1,130,638								1,110,861
Allowance for loan losses				15,704								15,926								15,978
Mortgage loans held for sale, net				101,993								87,076								58,139
Investment securities				45,757								46,172								41,431
Capital stock of Federal Home Loan Bank				4,271								7,012								8,268
Cash and cash equivalents				34,407								72,953								81,549
Deposits				1,126,396								1,098,333								1,021,653
Borrowed money				102,345								181,313								210,940
Subordinated debentures				19,589								19,589								19,589
Stockholders' equity - common				116,449								114,512								112,116
Total book value per common share			$9.67								$9.50								$9.31
Tangible book value per common share			$9.34								$9.17								$8.99
Tangible common equity to total assets				8.16	%							7.77	%							7.86	%
			March 31,								December 31,								September 30,
			2015								2014								2014
LOANS RECEIVABLE
Single-family residential:
First mortgage			$	276,731							$	283,365							$	273,370
Second mortgage				40,029								39,434								39,555
Home equity lines of credit				80,961								87,143								90,179
Total single-family residential real estate				397,721								409,942								403,104
Commercial:
Commercial and multi-family real estate:
Owner occupied				129,929								136,901								134,609
Non-owner occupied				261,520								252,732								261,948
Land acquisition and development				32,133								30,457								37,052
Real estate construction and development				62,398								52,747								46,777
Commercial and industrial				238,769								257,315								235,297
Total commercial				724,749								730,152								715,683
Consumer and installment				2,969								3,618								4,024
				1,125,439								1,143,712								1,122,811
Add (less):
Deferred loan costs				4,752								4,627								4,669
Loans in process				(1,216	)							(1,775	)							(641	)
Allowance for loan losses				(15,704	)							(15,926	)							(15,978	)
Total			$	1,113,271							$	1,130,638							$	1,110,861
Weighted average rate at end of period				4.04	%							4.04	%							4.11	%
			March 31, 2015								December 31, 2014								September 30, 2014
							Weighted								Weighted								Weighted
							Average								Average								Average
							Interest								Interest								Interest
DEPOSITS			Balance				Rate				Balance				Rate				Balance				Rate
Demand deposits:			(Dollars in thousands)
Non-interest-bearing checking			$	189,107			0.00	%			$	194,758			0.00	%			$	189,642			0.00	%
Interest-bearing checking				231,111			0.12	%				229,847			0.12	%				222,156			0.10	%
Savings accounts				43,041			0.13	%				42,029			0.13	%				43,640			0.13	%
Money market				237,422			0.29	%				223,778			0.29	%				203,974			0.29	%
Total demand deposits				700,681			0.15	%				690,412			0.14	%				659,412			0.13	%
Certificates of Deposit:
Traditional				311,864			0.77	%				299,863			0.72	%				273,349			0.66	%
CDARS				73,876			0.40	%				63,962			0.40	%				44,794			0.31	%
Brokered				39,975			0.42	%				44,096			0.40	%				44,098			0.39	%
Total certificates of deposit				425,715			0.67	%				407,921			0.64	%				362,241			0.59	%
Total deposits			$	1,126,396			0.34	%			$	1,098,333			0.32	%			$	1,021,653			0.29	%

PULASKI FINANCIAL CORP.
RESIDENTIAL MORTGAGE LOAN ACTIVITY
(Unaudited)
RESIDENTIAL MORTGAGE LOANS ORIGINATED FOR SALE
			Six Months Ended											Six Months Ended
			March 31, 2015											March 31, 2014
			Mortgage			Home								Mortgage			Home
			Refinancings			Purchases			Total					Refinancings			Purchases			Total
			(In thousands)
First quarter			$	94,694		$	167,472		$	262,166				$	29,996		$	136,423		$	166,419
Second quarter			$	209,458		$	153,486		$	362,944				$	24,376		$	98,065		$	122,441
RESIDENTIAL MORTGAGE LOANS SOLD TO INVESTORS
			Six Months Ended											Six Months Ended
			March 31, 2015											March 31, 2014
									Net											Net
			Loans			Mortgage			Profit					Loans			Mortgage			Profit
			Sold			Revenues			Margin					Sold			Revenues			Margin
			(Dollars in thousands)
First quarter			$	229,565		$	1,474			0.64	%			$	179,919		$	1,033			0.57	%
Second quarter			$	337,890		$	2,189			0.65	%			$	136,231		$	507			0.37	%

	PULASKI FINANCIAL CORP.
	NONPERFORMING ASSETS
	(Unaudited)
	(In thousands)
				March 31,				December 31,				September 30,
	NON-PERFORMING ASSETS			2015				2014				2014
	Non-accrual loans:
	Single-family residential real estate:
	First mortgage			$	3,231			$	3,417			$	4,026
	Second mortgage				567				607				354
	Home equity lines of credit				1,861				1,410				1,479
					5,659				5,434				5,859
	Commercial:
	Commercial and multi-family real estate				279				-				457
	Land acquisition and development				-				-				3,734
	Commercial and industrial				302				310				348
	Total commercial				581				310				4,539
	Consumer and installment				49			-				-
	Total non-accrual loans				6,289				5,744				10,398
	Non-Accrual Troubled debt restructurings: (1)
	Current under the restructured terms:
	Single-family residential real estate:
	First mortgage				4,825				5,163				4,668
	Second mortgage				1,026				1,065				1,126
	Home equity lines of credit				997				867				741
	Total single-family residential real estate				6,848				7,095				6,535
	Commercial:
	Commercial and multi-family real estate				3,385				3,442				3,335
	Real estate construction and development				13				14				-
	Commercial and industrial				904				1,069				1,102
	Total commercial				4,302				4,525				4,437
	Consumer and installment				6				9				13
	Total current troubled debt restructurings				11,156				11,629				10,985
	Past due under restructured terms:
	Single-family residential real estate:
	First mortgage				2,087				2,914				3,477
	Second mortgage				492				548				483
	Home equity lines of credit				224				224				395
	Total single-family residential real estate				2,803				3,686				4,355
	Commercial:
	Commercial and multi-family real estate				388				443				669
	Land acquisition and development				38				39				38
	Real estate construction and development				-				-				39
	Commercial and industrial				-				-				488
	Total commercial				426				482				1,234
	Total past due troubled debt restructurings				3,229				4,168				5,589
	Total non-accrual troubled debt restructurings				14,385				15,797				16,574
	Total non-performing loans				20,674				21,541				26,972
	Real estate acquired in settlement of loans:
	Residential real estate				993				1,590				2,631
	Commercial real estate				5,699				6,130				3,171
	Total real estate acquired in settlement of loans				6,692				7,720				5,802
	Total non-performing assets			$	27,366			$	29,261			$	32,774
(1)	Troubled debt restructured includes non-accrual loans totaling $14.4 million, $15.8 million and $16.6 million at March 31, 2015, December 31, 2014 and September 30, 2014, 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									Six Months
			Ended March 31,									Ended March 31,
ALLOWANCE FOR LOAN LOSSES			2015				2014					2015				2014
Allowance for loan losses, beginning of period			$	15,926			$	17,670				$	15,978			$	18,306
Provision charged to expense				-				500					500				700
Charge-offs:
Single-family residential real estate:
First mortgage				161				258					330				975
Second mortgage				96				173					248				369
Home equity				143				658					427				1,012
Total single-family residential real estate				400				1,089					1,005				2,356
Commercial:
Land acquisition and development				-				562					-				1,027
Commercial and industrial				8				1					37				1
Total commercial				8				563					37				1,028
Consumer and installment				42				33					105				54
Total charge-offs				450				1,685					1,147				3,438
Recoveries:
Single-family residential real estate:
First mortgage				60				133					63				192
Second mortgage				92				11					106				58
Home equity				36				71					130				230
Total single-family residential real estate				188				215					299				480
Commercial:
Commercial and multi-family real estate				14				107					23				293
Land acquisition and development				-				-					8				1
Real estate construction and development				-				-					3				-
Commercial and industrial				17				14					24				471
Total commercial				31				121					58				765
Consumer and installment				9				8					16				16
Total recoveries				228				344					373				1,261
Net charge-offs				222				1,341					774				2,177
Balance, end of period			$	15,704			$	16,829				$	15,704			$	16,829
			March 31,				December 31,					September 30,
ASSET QUALITY RATIOS			2015				2014					2014
Non-performing loans as a percent of total loans				1.84	%			1.88	%				2.40	%
Non-performing loans excluding current troubled debt restructurings as a percent of total loans				0.85	%			0.87	%				1.42	%
Non-performing assets as a percent of total assets				1.98	%			2.05	%				2.37	%
Non-performing assets excluding current troubled debt restructurings as a percent of total assets				1.17	%			1.24	%				1.58	%
Allowance for loan losses as a percent of total loans				1.40	%			1.39	%				1.42	%
Allowance for loan losses as a percent of non-performing loans				75.96	%			73.94	%				59.24	%
Allowance for loan losses as a percent of non-performing loans excluding current troubled debt restructurings and related allowance for loan losses				159.70	%			154.67	%				97.06	%

PULASKI FINANCIAL CORP.
AVERAGE BALANCE SHEETS
(Unaudited)
			(Dollars in thousands)
			Three Months Ended
			March 31, 2015										March 31, 2014
						Interest			Average							Interest			Average
			Average			and			Yield/				Average			and			Yield/
Interest-earning assets:			Balance			Dividends			Cost				Balance			Dividends			Cost
Loans receivable			$	1,123,910		$	11,182		3.98	%			$	1,020,247		$	10,899		4.27	%
Mortgage loans held for sale				79,924			757		3.79	%				35,331			365		4.13	%
Other interest-earning assets				64,377			98		0.61	%				125,911			111		0.35	%
Total interest-earning assets				1,268,211			12,037		3.80	%				1,181,489			11,375		3.85	%
Non-interest-earning assets				88,983										80,621
Total assets			$	1,357,194									$	1,262,110
Interest-bearing liabilities:
Deposits			$	920,547		$	986		0.43	%			$	870,054		$	907		0.42	%
Borrowed money				118,515			389		1.31	%				94,108			407		1.73	%
Total interest-bearing liabilities				1,039,062			1,375		0.53	%				964,162			1,314		0.54	%
Non-interest-bearing deposits				188,448										176,095
Non-interest-bearing liabilities				11,792										10,728
Stockholders' equity				117,892										111,125
Total liabilities and stockholders' equity			$	1,357,194									$	1,262,110
Net interest income						$	10,662									$	10,061
Interest rate spread									3.27	%									3.31	%
Net interest margin									3.36	%									3.41	%
			(Dollars in thousands)
			Six Months Ended
			March 31, 2015										March 31, 2014
						Interest			Average							Interest			Average
			Average			and			Yield/				Average			and			Yield/
Interest-earning assets:			Balance			Dividends			Cost				Balance			Dividends			Cost
Loans receivable			$	1,126,943		$	22,589		4.01	%			$	1,014,355		$	21,734		4.29	%
Mortgage loans held for sale				73,847			1,461		3.96	%				44,889			932		4.15	%
Other interest-earning assets				66,704			211		0.63	%				108,070			207		0.38	%
Total interest-earning assets				1,267,494			24,261		3.83	%				1,167,314			22,873		3.92	%
Non-interest-earning assets				86,130										79,851
Total assets			$	1,353,624									$	1,247,165
Interest-bearing liabilities:
Deposits			$	882,789		$	1,880		0.43	%			$	853,902		$	1,864		0.44	%
Borrowed money				147,830			869		1.18	%				91,305			772		1.69	%
Total interest-bearing liabilities				1,030,619			2,749		0.53	%				945,207			2,636		0.56	%
Non-interest-bearing deposits				193,703										175,573
Non-interest-bearing liabilities				12,920										12,109
Stockholders' equity				116,382										114,276
Total liabilities and stockholders' equity			$	1,353,624									$	1,247,165
Net interest income						$	21,512									$	20,237
Interest rate spread									3.30	%									3.36	%
Net interest margin									3.39	%									3.47	%

Pulaski Financial Corp.
Paul Milano, 314-878-2210
Chief Financial Officer

Source: Pulaski Financial Corp.

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• Amylyx prices $500M stock offering at $35.50 per share