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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

For the quarterly period ended March 31, 2004

OR

For the transition period from              to             

0-24571

Commission File Number

Pulaski Financial Corp.

(Exact name of registrant as specified in its charter)

Registrant’s telephone number, including area code: (314) 878-2210

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

Indicate the number of shares outstanding of the registrant’s classes of common stock, as of the latest practicable date.

PULASKI FINANCIAL CORP. AND SUBSIDIARIES

FORM 10-Q

March 31, 2004

TABLE OF CONTENTS

PULASKI FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2004 AND SEPTEMBER 30, 2003 (UNAUDITED)

See accompanying notes to the unaudited consolidated financial statements.

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PULASKI FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

THREE AND SIX MONTHS ENDED MARCH 31, 2004 AND 2003 (UNAUDITED)

See accompanying notes to the unaudited consolidated financial statements.

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PULASKI FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

SIX MONTHS ENDED MARCH 31, 2004 (UNAUDITED)

See accompanying notes to the unaudited consolidated financial statements.

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PULASKI FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR SIX MONTHS

ENDED MARCH 31, 2004 (UNAUDITED) AND MARCH 31, 2003 (UNAUDITED)

(Continued)

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PULASKI FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR SIX MONTHS

ENDED MARCH 31, 2004 (UNAUDITED) AND MARCH 31, 2003 (UNAUDITED)

See accompanying notes to the unaudited consolidated financial statements.

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PULASKI FINANCIAL CORP. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The unaudited consolidated financial statements include the accounts of Pulaski Financial Corp. (the “Company”) and its wholly owned subsidiary, Pulaski Bank (the “Bank”), and its wholly owned subsidiary, Pulaski Service Corporation. All significant intercompany accounts and transactions have been eliminated. The assets of the Company consist primarily of the outstanding shares of the Bank, and it has no significant liabilities. Accordingly, the information set forth in this report, including the consolidated financial statements and related financial data, relates primarily to the Bank. The Company operates as a single business segment, providing traditional community banking services through its full service branch network.

In the opinion of management, the unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of the financial condition of the Company as of March 31, 2004 and September 30, 2003 and its results of operations for the three and six-month periods ended March 31, 2004 and 2003. The results of operations for the three and six-months ended March 31, 2004 and 2003 are not necessarily indicative of the operating results that may be expected for the entire fiscal year. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended September 30, 2003 contained in the Company’s 2003 Annual Report to Stockholders, which was filed as an exhibit to the Company’s Annual Report on Form 10-K for the year ended September 30, 2003.

Under the treasury stock method, outstanding stock options are dilutive when the average market price of the Company’s common stock exceeds the option price during a period. In addition, proceeds from the assumed exercise of dilutive options along with the related tax benefit are assumed to be used to repurchase common shares at the average market price of such stock during the period. Anti-dilutive shares are those option shares with exercise prices in excess of the current market value.

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In December 2002, the FASB issued SFAS No. 148, Accounting for Stock-Based Compensation – Transition and Disclosure (SFAS 148), which provides alternative methods of transition for a voluntary change to the fair value based method of accounting for stock-based employee compensation. In addition, SFAS 148 requires disclosures in the interim as well as annual financial statements about the method of accounting used for stock-based employee compensation and the effect of the method on net income. The Company has elected to continue to account for stock-based employee compensation under APB Opinion No. 25. Accordingly, no stock-based employee compensation cost related to options granted is reflected in net income, as all options granted under those plans had an exercise price equal to the market value of the underlying common stock on the date of the grant.

The following table shows pro forma compensation expense, net income and earnings per share as if the Company had applied the fair value recognition provisions of Statement of Financial Accounting Standards No.123, “Accounting for Stock Based Compensation.”

On March 30, 2004 Pulaski Financial Statutory Trust I, a Connecticut statutory trust, issued $9.0 million adjustable-rate preferred securities. The proceeds from this issuance, along with the Company’s $279,000 capital contribution for the Trust’s common securities, were used to acquire $9.3 million aggregate principal amount of the Company’s amount of the Company’s floating rate junior subordinated deferrable interest debentures due 2034 (the “Debentures”), which constitute the sole asset of the Trust. The interest rate on the Debentures and the capital securities is variable and adjustable quarterly at 2.70% over the three-month LIBOR, with an initial rate of 3.81%.

The stated maturity of the Debentures is June 17, 2034. In addition, the Debentures are subject to redemption at par at the option of the Company, subject to prior regulatory approval, in whole or in part on any interest payment date on or after June 17, 2009.

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Certain reclassifications have been made to 2003 amounts to conform to the 2004 presentation.

* * * * * *

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD LOOKING STATEMENTS

This report contains forward-looking statements within the meaning of the federal securities laws. These statements are not historical facts, rather they are statements, based on the Company’s current expectations, regarding its business strategies, intended results and future performance. Forward-looking statements are preceded by terms such as “expects,” “believes,” “anticipates,” “intends,” and similar expressions.

Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties could cause the Company’s actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; changes in accounting principles and guidelines; competition, demand for loan products; deposit flows; and other factors disclosed periodically in the Company’s filings with the Securities and Exchange Commission.

Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this report or made elsewhere from time to time by the Company or on its behalf. Except as required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.

OVERVIEW

Management’s discussion and analysis of financial condition and results of operations is intended to assist in understanding the financial condition and results of operations of the Company. The information contained in this section should be read in conjunction with the unaudited consolidated financial statements and accompanying notes thereto.

The Company’s business strategy is to focus on the growth and efficiency of five core products, which includes two deposit products, checking and money market accounts, and three loan products, residential, home equity and commercial loans. These five products provide the primary source of the Bank’s operating income and are the focus of the Company’s growth in the balance sheet. Driving these relationships are more than 40 seasoned residential and commercial lenders in the Company’s two market locations, St. Louis and Kansas City, which includes seven branch locations and two loan production offices. During the quarter ended March 31, 2004, the Company realized important gains in each of the five core products, which led to a record 13% or $57.8 million increase in assets during the quarter and a total of 23.9% or $95.9 million increase in assets year to date. Total assets equaled $497.3 million at March 31, 2004 compared to $401.4 million at September 30, 2003, respectively.

Net income increased 5.6%, or $76,000 to $1.4 million, or $0.25 diluted earnings per share, for the quarter ended March 31, 2004, compared to $1.4 million, or $0.24 diluted earnings per share for the quarter ended March 31, 2003. For the six months ended March 31, 2004, net income and diluted earnings per share remain unchanged at $2.8 million and $0.49, respectively. The Company’s earnings benefited from higher net interest income, retail-banking revenue and gains on sale of investment securities, combined with lower non-interest expense, but was partially offset by declines in mortgage revenue. Fiscal 2003 was one of the best mortgage banking environments in history due to the low interest rate environment. The decline in interest rates resulted in extraordinary refinance activity. During the fourth quarter of 2003, refinance activity decreased significantly. The Company’s mortgage applications dropped by more than 50% from its peak. While the decline in refinance activity resulted in the Company realizing lower mortgage revenues, which declined 50.7% to $930,000 for the quarter ending March 31, 2004, the Company’s retained loan portfolio realized extraordinary growth, increasing 36.9% or $102.3 million for

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the six month period ended March 31, 2004. The growth has resulted in higher net interest income for the quarter and year to date periods. As the Company has transitioned out of the refinance boom, the Company has also bolstered net income through $736,000 in gains on sale of investment securities through the six months ended March 31, 2004, $456,000 of which came in the most recent quarter.

During the quarter ended March 31, 2004, the Company consummated two transactions that enhance the Company’s overall financial condition: the issuance of $9.0 million of trust preferred securities and the sale of $2.5 million in non-performing loans. The issuance of the trust preferred securities bolsters the Bank’s regulatory capital levels as the proceeds were injected into the Bank as additional capital. The additional capital can support close to $200 million in additional asset growth. The Company sold the pool of non-performing loans at approximately par value. The Company wrote off $100,000 in accrued interest at the time of sale of the $2.5 million pool. At December 31, 2003, the Company’s allowance for loan losses as a percentage of nonperforming loans was 102.06%. After the sale, this ratio increased to 192.99% at March 31, 2004.

RECENT EVENTS

On January 26, 2004, the Company announced that it would be launching a new title insurance business that will further build on the Bank’s goal of becoming a full service consumer and commercial bank. John Banjak, 36, formerly president and general counsel of Abstar Title in St. Louis joined the Bank as president of title operations.

On January 28, 2004, the Company announced Christopher K. Reichert, 39, the Company’s executive vice president, and William M. Corrigan, Jr., 44, a principal in the law firm Armstrong Teasdale, LLP, were elected to the Board of Directors. The Company further announced expectations to see the commercial loan portfolio top $100 million within three years.

On March 30, 2004, the Company announced the issuance of $9.0 million in trust preferred securities and that the added capital would provide the equity leverage to grow the Bank to more than $700 million in assets.

Management’s Discussion on Core Business Strategy

The Company’s retained loan portfolio, net of allowance for loan losses increased to $379.2 million at March 31, 2004 from $276.9 million at September 30, 2003. The Company’s strong commitment to its three core lending products, home equity lines of credit, residential mortgages and commercial loans, resulted in a $65.7 million, or 21%, increase in loans receivable during the quarter ended March 31, 2004 and $102.3 million, or 36.9%, increase year to date. Net interest income increased $200,000 to $3.5 million for the quarter ended March 31, 2004 compared to the same period a year ago and increased $464,000 to $7.0 million for six months ended March 31, 2004. Current period net interest income was reduced $100,000 due to the $2.5 million sale of non-performing loans. Growth in net interest income was due to growth in the average balance of interest bearing assets. The average balance of interest earning assets increased from $390.4 million for the quarter ended March 31, 2003 to $406.6 million for the quarter ended March 31, 2004. The growth in the average balance of interest earning assets was due primarily to growth in the balance of loans receivable, but was offset by a $84.8 million decline in the average balance of loans held for sale. The Company’s net interest margin year to date increased 9 basis points from 3.47% during the six-month period ended March 31, 2003 to 3.56% during the six-month period ended March 31, 2004 and 6 basis points from the three months ended March 31, 2003 of 3.42% to 3.48% for the three months ended March 31, 2004.

Commercial real estate and commercial and industrial loans increased $33.8 million to $41.1 million at March 31, 2004 compared to $7.3 million at September 30, 2003. The newly formed commercial division has increased its total portfolio to $55.8 million, which includes $14.7 million in residential loans originated to commercial borrowers. Two years ago, the Company began originating commercial credits focusing exclusively on strong borrowers collateralized by commercial real estate. The Company expanded the commercial lending team in the current fiscal year by hiring three experienced commercial lenders from the St. Louis area, including Brian

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Björkman, the president of the commercial lending division. The commercial loan growth over the next three years is expected to be about 70% commercial real estate and 30% C&I. At March 31, 2004, the Company had $9.1 million in C&I loans. Management believes that commercial relationships are essential for the long-term growth of the Company, for diversification of assets as well as expansion of the customer deposit base. At March 31, 2004, the Company had no significant commercial delinquencies.

Home equity lines of credit remain the most consistently growing interest-earning asset within the Company. The equity line balances increased $29.6 million to $118.3 million at March 31, 2004 compared to $88.8 million at September 30, 2003. Home equity loans are approved for qualified borrowers in conjunction with the first mortgage loan applications. The large volume of mortgage loans originated in recent years has provided many opportunities to cross-sell this product to customers. As a prime-based asset, home equity lines carry low interest rate risk characteristics and attractive yields, lending stability to the Bank’s net interest margin. At March 31, 2004, the Bank had a balance of $155,000 of non-performing home equity loans or 0.13% of the home equity portfolio and had charge-offs of just $15,000 during the six months ended March 31, 2004.

Permanent and construction residential loan balances increased $41.5 million to $223.7 million at March 31, 2004 compared to $182.2 million at September 30, 2003. Having focused on becoming a large volume mortgage lender has allowed the Bank the opportunity to carefully select loans to retain. Typically, portfolio loans mature or reprice within three years and carry higher credit risk and interest rate yields than conforming loans that are originated for sale. In July 2003, following two years of declines, the Bank’s retained residential mortgage portfolio began expanding. The interest rate environment, which had declined steadily for two years, suddenly increased. This resulted in a significant decline in customer payoffs due to refinances. As the prepayment levels declined, the portfolio began to grow. At March 31, 2004, the balance of residential non-performing loans was $1.8 million. The Company has government guarantees on $431,000 of the $1.8 million of non-performing residential loans. In part due to the historically strong collateral of the residential loan portfolio, the Company has absorbed few losses with this product, including just $23,000 during the six months ended March 31, 2004 and $26,000 for the fiscal year ended September 30, 2003. In the Midwest region of the United States, residential properties have not experienced any significant price declines over the last 10 years. In an economic environment that resulted in declining residential values, the Company would be at increased risk of credit losses from non-performing loans.

Offsetting growth in the retained portfolio, the average balance of mortgage loans held for sale declined $84.8 million to $49.7 million for the quarter ended March 31, 2004. The decline in average balances during the period resulted in a $1.0 million decline in interest income from loans held for sale to $477,000 for the quarter ended March 31, 2004 compared to $1.5 million for the quarter ended March 31, 2003. Year to date, interest income on loans held for sale declined from $2.8 million for the six month period ended March 31, 2003 to $1.3 million for the six month period ended March 31, 2004. Mortgage revenues also declined as the volume of loan originations and sales declined. Mortgage revenue was $930,000 and $2.1 million for the three and six month periods ending March 31, 2004, respectively, compared to $1.9 million and $3.6 million for the three and six month periods ending March 31, 2003. Mortgage revenue is generated primarily through the gain on sale of whole loans to investors. Through six months ended March 31, 2004, the Company sold $366.8 million of loans to investors compared to $640.7 million for the six months ended March 31, 2003.

Total liabilities increased $94.0 million to $459.0 million at March 31, 2004 compared to $365.0 million at September 30, 2003. The Company’s strategic focus on growing core liability products centers on checking account and money market deposit growth. While the Company offers competitive CDs following strict pricing disciplines, it readily supports the core liability products with wholesale funding in order to support asset growth. Wholesale funding sources include FHLB borrowings and public brokered CDs. At March 31, 2004 the Company had $11.4 million in brokered CDs.

The balance of checking accounts increased $2.9 million to $31.8 million at March 31, 2004 from $28.9 million at September 30, 2003. Approximately $2.2 million of the growth stems from new relationships with commercial checking accounts. Checking accounts are the lowest cost deposits for the Company and are also the primary

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source of retail banking revenue. Retail banking revenue increased $107,000, or 24.3%, to $547,000 for the quarter ended March 31, 2004 compared to $440,000 for the same period ended March 31, 2003. The increase in retail banking revenue was caused by a 21.0% increase in the number of checking accounts, which went from 11,843 at March 31, 2003 to 14,297 accounts at March 31, 2004. The weighted average cost of checking account deposits was below 20 basis points.

The balance of money market accounts increased $7.1 million to $71.4 million at March 31, 2004 from $64.3 million at September 30, 2003. The Company is in its fourth year of pursuing money market accounts as a core product and its third year of a successful marketing campaign, “the Big Bertha Money Market Account”. The product carries similar interest rate characteristics as the Company’s home equity loans and results in an ideal source of funds for the growth of this line of credit portfolio. Money market accounts are generally less interest rate sensitive and more stable than CD balances. The market became very competitive in money market accounts during the last two months of the quarter, as several banks made aggressive marketing efforts to capture this market. The Company has stayed disciplined in its pricing and has seen slower growth toward the end of the quarter. Many bank managers have become very aggressive pricing short-term deposits as they anticipate increases in the rate environment.

AVERAGE BALANCE SHEET

The following table sets forth information regarding average daily balances of assets and liabilities as well as the total dollar amounts of interest income from average interest-earning assets and interest expense on average interest-bearing liabilities, resultant yields, interest rate spread, net interest margin, and ratio of average interest-earning assets to average interest-bearing liabilities for the periods indicated.

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