Attached files
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| 8-K - CURRENT REPORT - PULASKI FINANCIAL CORP | pulaski8koct30-14.htm |
PULASKI FINANCIAL REPORTS 19% GROWTH IN DILUTED
EARNINGS PER SHARE FOR FISCAL YEAR 2014 VERSUS 2013
Full Year Highlights
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Diluted EPS was $0.88 in 2014 versus $0.74 in 2013
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Return on average assets was 0.87% in 2014 compared with 0.75% in 2013
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Return on average common equity for 2014 at 9.80% versus 8.42% in 2013
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Book value per common share increased to $9.31 at year-end 2014 from $8.65 last year end
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Earnings improvement was driven by lower credit costs as asset quality showed significant improvement from last year end
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Loan portfolio increased $122.2 million, or 12%, on substantial growth in commercial and residential loans
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Net interest income was down 7% on a decline in net interest margin combined with a decrease in the average balance of mortgage loans held for sale
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Mortgage revenues were down 68% on a sharp drop in loan refinancing activity combined with a weak home purchase market
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Remaining balance of preferred stock repurchased or redeemed in shareholder-friendly transactions
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Trends in Linked-Quarter Results
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Diluted EPS was $0.27 in September 2014 quarter versus $0.25 in June 2014 quarter
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Annualized return on average assets was 1.03% in September 2014 quarter compared with 0.95% in June 2014 quarter
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Annualized return on average common equity for September 2014 quarter at 11.68% versus 10.89% in June 2014 quarter
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Loan portfolio increased $17.6 million, or 2%
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Net interest income increased 2% primarily due to growth in average balance of mortgage loans held for sale
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Mortgage revenues were down 9% as lower selling prices and increased production costs offset the impact of increased sales activity
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Credit costs remained low and in line with linked quarter
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Level of non-performing assets increased 5%, but the combined level of internal adversely classified and watch list assets declined 3%
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ST. LOUIS, October 28, 2014 —Pulaski Financial Corp. (Nasdaq Global Select: PULB, the “Company”) reported net income available to common shareholders for the fiscal year ended September 30, 2014 of $10.2 million, or $0.88 per diluted common share compared with $8.3 million, or $0.74 per diluted common share, reported for fiscal 2013. For the quarter ended September 30, 2014, the Company reported net income available to common shareholders of $3.3 million, or $0.27 per diluted common share, compared with $2.8 million, or $0.25 per diluted common share, for the linked quarter ended June 30, 2014 and a loss of $942,000, or $0.08 per diluted common share, for the quarter ended September 30, 2013.
Earnings for the year were positively impacted by a $13.4 million decrease in total credit costs, consisting of the provision for loan losses and foreclosed property losses, net of recoveries and expense, as the Company continued to see improvement in asset quality. Nonperforming assets dropped to 2.37% of total assets at September 30, 2014 compared with 2.66% at September 30, 2013. Excluding loans classified as troubled debt restructurings that were current under their restructured terms, this ratio dropped to 1.58% at September 30, 2014 compared with 1.78% last year.
The Company experienced strong loan portfolio growth during the year. Commercial loans increased $80.4 million, or 13%, and single-family residential loans increased $36.6 million, or 10%. However, net interest income decreased 7% from last year as the benefit of the growth in portfolio loans was more than offset by the negative impact of a market-driven decline in the net interest margin combined with a decrease in the average balance of mortgage loans held for sale.
Noninterest income declined 49% from 2013 as mortgage revenues were significantly impacted by the sharp drop in the market demand for mortgage loan refinancings combined with a weak home purchase market. In addition, the net profit margin on loans sold was negatively impacted by proportionately higher loan production costs. Also, sales prices realized from the Company’s mortgage loan investors softened during the last fiscal quarter of 2014.
The Company continued to implement its capital management strategy during fiscal 2014 by repurchasing or redeeming the remaining $17.3 million in par value of its preferred stock that was outstanding at September 30, 2013, or about half the amount originally issued. Such transactions were not dilutive to book value per common share.
Significant Trends in Linked-Quarter Results
The Company saw another quarter of growth in portfolio loans. The total balance of portfolio loans at September 30, 2014 increased $17.6 million, or 1.6%, from June 30, 2014, mainly due to an increase in the balance of residential first mortgage loans. The Company continued to be successful in marketing two “niche” adjustable-rate loan products, resulting in a $20.4 million, or 8%, increase in residential first mortgage loans during the quarter. The commercial loan portfolio also experienced growth in owner occupied commercial real estate and commercial and industrial loans during the quarter. However, this growth was mostly offset by shrinkage in non-owner occupied commercial real estate loans.
Net interest income for the quarter was up 1.9% compared with the June 2014 quarter. Contributing to the increase was an increase in the average balance of mortgage loans held for sale. The net interest margin for the quarter decreased to 3.56% compared with 3.68% for the June 2014 quarter primarily as the result of interest income recoveries recorded during the June 2014 quarter. The Company collected $364,000 of previously charged off interest from several commercial loan customers in the June 2014 quarter, which increased interest income and resulted in a 13 basis point positive impact on the net interest margin for that quarter. The Company’s total cost of funds remained almost constant with the linked quarter.
Noninterest income for the quarter remained almost constant when compared with the linked quarter. A decrease in mortgage revenues was almost entirely offset by increases in revenues realized on SBA loan sales and retail banking fees. During the quarter, the Company successfully implemented a new program to sell the insured portion of SBA loans to third-party investors resulting in realized sales profits of approximately $72,000. The Company anticipates increased sales volumes and resulting profits on sales in future periods.
A seasonal rebound in consumer demand for loans to finance home purchases combined with an increase in the demand for mortgage loan refinancings resulted in increased loan sales activity during the quarter and an increase in interest income earned on loans held for sale. Loan sales increased 26%, to $237.0 million in the September 2014 quarter compared with $188.4 million in the linked quarter. However, mortgage revenues decreased $111,000, or 9%, compared with the June 2014 quarter as the increased sales activity was offset by a drop in the net profit margin. The net profit margin on loans sold declined to 0.48% in the September 2014 quarter compared with 0.66% in the June 2014 quarter primarily due to lower sales prices realized from the Company’s mortgage loan investors combined with higher production costs. The level of mortgage loans originated for sale during the quarter increased $19.8 million, or 9%, compared with the linked quarter, showing almost equal increases in the dollar amounts of loans originated to finance home purchases and mortgage loan refinancings.
Asset quality continued to improve during the quarter resulting in continued low credit costs. The combined level of internal adversely classified and watch list loans declined 3% compared with the June 30, 2014 levels. Total credit costs were $282,000 for the quarter ended September 30, 2014 compared with $189,000 for the linked quarter. However, non-performing assets increased $1.5 million, or 5%, during the quarter to $32.8 million at September 30, 2014. During the quarter, the Company classified as nonaccrual a $3.7 million commercial land development loan that had been on the Company’s list of adversely classified loans for several quarters. Excluding this loan, the level of non-performing assets declined 7% during the quarter.
Gary Douglass, President and Chief Executive Officer, commented, “All things considered, we were pleased with our fourth fiscal quarter and full year results. Our strong 12% loan portfolio growth for the year was especially impressive given the generally low growth environment in which we operate. We were also encouraged by the stronger performance of our mortgage division during the second half of the year. Our net credit costs for the year were extremely low reflecting our continued emphasis on asset quality improvement, including another year of meaningful recoveries. We continued to focus on controlling operating expenses and were successful in our efforts. And finally, we repurchased or redeemed our remaining outstanding preferred shares without dilution to common shareholders.”
Douglass concluded, “With the anticipation of continued loan portfolio growth, especially commercial loans, additional fee income from the first full year of operation of our new SBA lending platform, continued growth of mortgage-related revenues, controlled credit costs and effective expense management, we expect another year of meaningful earnings growth in fiscal 2015.”
Conference Call Tomorrow
Pulaski Financial’s management will discuss fourth fiscal quarter results and other developments tomorrow, October 29, 2014, 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 44447077, a few minutes before the start time. The call will also be available for replay through November 29, 2014 at 855-859-2056 or 404-537-3406, conference ID 44447077.
About Pulaski Financial
Pulaski Financial Corp., operating in its 92nd 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, Chicago and Denver 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, 2012 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) | ||||||||||||
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Three Months Ended
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September 30,
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June 30,
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September 30,
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2014
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2014
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2013
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||||||||||
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Interest income
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$ | 12,397 | $ | 12,157 | $ | 12,117 | ||||||
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Interest expense
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1,314 | 1,280 | 1,406 | |||||||||
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Net interest income
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11,083 | 10,877 | 10,711 | |||||||||
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Provision for loan losses
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310 | 200 | 6,850 | |||||||||
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Net interest income after provision for loan losses
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10,773 | 10,677 | 3,861 | |||||||||
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Mortgage revenues
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1,134 | 1,245 | 2,752 | |||||||||
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Retail banking fees
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1,119 | 1,099 | 1,050 | |||||||||
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SBA loan sale revenues
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72 | -- | -- | |||||||||
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Other
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295 | 252 | 702 | |||||||||
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Total non-interest income
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2,620 | 2,596 | 4,504 | |||||||||
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Salaries and employee benefits
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4,297 | 4,651 | 4,354 | |||||||||
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Occupancy, equipment and data processing expense
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2,694 | 2,762 | 2,543 | |||||||||
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Advertising
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164 | 167 | 157 | |||||||||
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Professional services
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436 | 508 | 600 | |||||||||
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FDIC deposit insurance premium expense
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289 | 278 | 276 | |||||||||
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Real estate foreclosure (recoveries) losses and expenses, net
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(28 | ) | (11 | ) | 644 | |||||||
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Other
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586 | 531 | 908 | |||||||||
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Total non-interest expense
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8,438 | 8,886 | 9,482 | |||||||||
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Income (loss) before income taxes
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4,955 | 4,387 | (1,117 | ) | ||||||||
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Income tax expense (benefit)
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1,532 | 1,382 | (537 | ) | ||||||||
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Net income (loss) after tax
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3,423 | 3,005 | (580 | ) | ||||||||
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Preferred stock dividends and premium paid on repurchases
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(127 | ) | (201 | ) | (362 | ) | ||||||
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Earnings available to common shares
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$ | 3,296 | $ | 2,804 | $ | (942 | ) | |||||
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Annualized Performance Ratios
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Return on average assets
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1.03 | % | 0.95 | % | (0.18 | %) | ||||||
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Return on average common equity
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11.68 | % | 10.89 | % | (3.71 | %) | ||||||
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Interest rate spread
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3.46 | % | 3.58 | % | 3.54 | % | ||||||
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Net interest margin
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3.56 | % | 3.68 | % | 3.65 | % | ||||||
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SHARE DATA
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Weighted average common shares outstanding - basic
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11,671,891 | 11,023,167 | 10,922,253 | |||||||||
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Weighted average common shares outstanding - diluted
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12,095,294 | 11,418,794 | 11,181,889 | |||||||||
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Basic earnings (loss) per common share
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$ | 0.28 | $ | 0.25 | $ | (0.09 | ) | |||||
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Diluted earnings (loss) per common share
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$ | 0.27 | $ | 0.25 | $ | (0.08 | ) | |||||
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Dividends per common share
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$ | 0.095 | $ | 0.095 | $ | 0.095 | ||||||
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PULASKI FINANCIAL CORP.
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CONDENSED STATEMENTS OF INCOME, Continued
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(Unaudited)
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Year Ended September 30,
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2014
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2013
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Interest income
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$ | 47,427 | $ | 51,614 | ||||
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Interest expense
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5,230 | 6,445 | ||||||
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Net interest income
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42,197 | 45,169 | ||||||
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Provision for loan losses
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1,210 | 12,090 | ||||||
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Net interest income after provision for loan losses
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40,987 | 33,079 | ||||||
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Mortgage revenues
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3,918 | 12,332 | ||||||
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Retail banking fees
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4,252 | 4,195 | ||||||
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SBA loan sale revenues
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72 | -- | ||||||
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Other
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1,300 | 2,243 | ||||||
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Total non-interest income
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9,542 | 18,770 | ||||||
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Salaries and employee benefits
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17,714 | 17,747 | ||||||
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Occupancy, equipment and data processing expense
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10,816 | 10,112 | ||||||
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Advertising
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637 | 545 | ||||||
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Professional services
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2,269 | 2,524 | ||||||
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FDIC deposit insurance premiums
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1,091 | 1,252 | ||||||
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Real estate foreclosure (recoveries) losses and expenses, net
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(324 | ) | 2,210 | |||||
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Other
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2,060 | 2,853 | ||||||
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Total non-interest expense
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34,263 | 37,243 | ||||||
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Income before income taxes
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16,266 | 14,606 | ||||||
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Income tax expense
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5,233 | 4,797 | ||||||
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Net income after tax
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11,033 | 9,809 | ||||||
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Preferred stock dividends and premium paid on repurchases
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(810 | ) | (1,520 | ) | ||||
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Earnings available to common shares
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$ | 10,223 | $ | 8,289 | ||||
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Annualized Performance Ratios
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Return on average assets
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0.87 | % | 0.75 | % | ||||
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Return on average common equity
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9.80 | % | 8.42 | % | ||||
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Interest rate spread
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3.44 | % | 3.59 | % | ||||
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Net interest margin
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3.54 | % | 3.71 | % | ||||
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SHARE DATA
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Weighted average shares outstanding - basic
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11,154,695 | 10,892,136 | ||||||
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Weighted average shares outstanding - diluted
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11,570,033 | 11,132,941 | ||||||
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Basic earnings per common share
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$ | 0.92 | $ | 0.76 | ||||
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Diluted earnings per common share
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$ | 0.88 | $ | 0.74 | ||||
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Dividends per common share
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$ | 0.38 | $ | 0.38 | ||||
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PULASKI FINANCIAL CORP.
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BALANCE SHEET DATA
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(Unaudited)
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September 30,
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June 30,
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September 30,
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2014
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2014
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2013
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Total assets
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$ | 1,380,096 | $ | 1,374,164 | $ | 1,275,944 | ||||||
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Loans receivable, net
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1,110,861 | 1,093,309 | 988,668 | |||||||||
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Allowance for loan losses
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15,978 | 16,830 | 18,306 | |||||||||
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Mortgage loans held for sale, net
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58,139 | 60,231 | 70,473 | |||||||||
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Investment securities
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41,431 | 51,507 | 43,211 | |||||||||
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Capital stock of Federal Home Loan Bank
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8,268 | 9,020 | 4,777 | |||||||||
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Cash and cash equivalents
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81,549 | 78,839 | 86,309 | |||||||||
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Deposits
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1,021,653 | 999,463 | 1,010,812 | |||||||||
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Borrowed money
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210,940 | 224,113 | 113,483 | |||||||||
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Subordinated debentures
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19,589 | 19,589 | 19,589 | |||||||||
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Stockholders' equity - preferred
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-- | 6,653 | 17,310 | |||||||||
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Stockholders' equity - common
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112,116 | 109,897 | 98,748 | |||||||||
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Total book value per common share
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$ | 9.31 | $ | 9.10 | $ | 8.65 | ||||||
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Tangible book value per common share
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$ | 8.99 | $ | 8.77 | $ | 8.30 | ||||||
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Regulatory capital ratios - Pulaski Bank only: (1)
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Tier 1 leverage capital (to average assets)
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9.70 | % | 9.59 | % | 10.05 | % | ||||||
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Total risk-based capital (to risk-weighted assets)
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13.46 | % | 13.86 | % | 14.03 | % | ||||||
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(1) September 30, 2014 regulatory capital ratios are estimated.
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September
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June 30,
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September 30,
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2014
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2014
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2013
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LOANS RECEIVABLE
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Single-family residential:
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First mortgage
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$ | 273,370 | $ | 252,961 | $ | 212,357 | ||||||
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Second mortgage
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39,555 | 40,785 | 43,208 | |||||||||
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Home equity lines of credit
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90,179 | 96,672 | 110,906 | |||||||||
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Total single-family residential real estate
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403,104 | 390,418 | 366,471 | |||||||||
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Commercial:
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Commercial and multi-family real estate:
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Owner occupied
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134,609 | 128,474 | 110,487 | |||||||||
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Non-owner occupied
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261,948 | 274,975 | 237,516 | |||||||||
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Land acquisition and development
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37,052 | 37,431 | 40,430 | |||||||||
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Real estate construction and development
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46,777 | 47,427 | 20,549 | |||||||||
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Commercial and industrial
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235,297 | 224,816 | 226,263 | |||||||||
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Total commercial
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715,683 | 713,123 | 635,245 | |||||||||
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Consumer and installment
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4,024 | 3,165 | 3,326 | |||||||||
| 1,122,811 | 1,106,706 | 1,005,042 | ||||||||||
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Add (less):
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Deferred loan costs
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4,669 | 4,160 | 3,188 | |||||||||
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Loans in process
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(641 | ) | (727 | ) | (1,256 | ) | ||||||
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Allowance for loan losses
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(15,978 | ) | (16,830 | ) | (18,306 | ) | ||||||
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Total
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$ | 1,110,861 | $ | 1,093,309 | $ | 988,668 | ||||||
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Weighted average rate at end of period
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4.11 | % | 4.21 | % | 4.45 | % | ||||||
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September 30, 2014
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June 30, 2014
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September 30, 2013
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Weighted
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Weighted
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Weighted
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||||||||||||||||||||||
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Average
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Average
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Average
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Interest
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Interest
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Interest
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DEPOSITS
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Balance
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Rate
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Balance
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Rate
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Balance
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Rate
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Demand deposits:
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(Dollars in thousands)
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Non-interest-bearing checking
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$ | 189,642 | 0.00 | % | $ | 182,941 | 0.00 | % | $ | 168,033 | 0.00 | % | ||||||||||||
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Interest-bearing checking
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222,156 | 0.10 | % | 242,844 | 0.10 | % | 237,362 | 0.10 | % | |||||||||||||||
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Savings accounts
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43,640 | 0.13 | % | 43,195 | 0.13 | % | 39,845 | 0.13 | % | |||||||||||||||
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Money market
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203,974 | 0.29 | % | 215,207 | 0.29 | % | 206,927 | 0.26 | % | |||||||||||||||
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Total demand deposits
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659,412 | 0.13 | % | 684,187 | 0.13 | % | 652,167 | 0.13 | % | |||||||||||||||
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Certificates of Deposit:
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Traditional
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273,349 | 0.66 | % | 275,569 | 0.67 | % | 313,217 | 0.84 | % | |||||||||||||||
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CDARS
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44,794 | 0.31 | % | 39,707 | 0.25 | % | 45,428 | 0.28 | % | |||||||||||||||
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Brokered
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44,098 | 0.39 | % | -- | -- | -- | -- | |||||||||||||||||
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Total certificates of deposit
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362,241 | 0.59 | % | 315,276 | 0.62 | % | 358,645 | 0.77 | % | |||||||||||||||
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Total deposits
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$ | 1,021,653 | 0.29 | % | $ | 999,463 | 0.29 | % | $ | 1,010,812 | 0.35 | % | ||||||||||||
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PULASKI FINANCIAL CORP.
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RESIDENTIAL MORTGAGE LOAN ACTIVITY
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(Unaudited)
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RESIDENTIAL MORTGAGE LOANS ORIGINATED FOR SALE
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2014
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2013
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Mortgage
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Home
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Mortgage
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Home
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Refinancings
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Purchases
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Total
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Refinancings
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Purchases
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Total
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|||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||
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First quarter
|
$ | 29,996 | $ | 136,423 | $ | 166,419 | $ | 230,399 | $ | 149,241 | $ | 379,640 | ||||||||||||
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Second quarter
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$ | 24,376 | $ | 98,065 | $ | 122,441 | $ | 186,515 | $ | 123,009 | $ | 309,524 | ||||||||||||
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Third quarter
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$ | 28,212 | $ | 186,716 | $ | 214,928 | $ | 133,380 | $ | 224,655 | $ | 358,035 | ||||||||||||
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Fourth quarter
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$ | 37,657 | $ | 197,096 | $ | 234,753 | $ | 44,144 | $ | 202,571 | $ | 246,715 | ||||||||||||
| $ | 120,241 | $ | 618,300 | $ | 738,541 | $ | 594,438 | $ | 699,476 | $ | 1,293,914 | |||||||||||||
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RESIDENTIAL MORTGAGE LOANS SOLD TO INVESTORS
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||||||||||||||||||||||||
| 2014 | 2013 | |||||||||||||||||||||||
|
Net
|
Net
|
|||||||||||||||||||||||
|
Loans
|
Mortgage
|
Profit
|
Loans
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Mortgage
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Profit
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|||||||||||||||||||
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Sold
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Revenues
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Margin
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Sold
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Revenues
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Margin
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| (Dollars in thousands) | ||||||||||||||||||||||||
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First quarter
|
$ | 179,919 | $ | 1,033 | 0.57 | % | $ | 367,388 | $ | 2,988 | 0.81 | % | ||||||||||||
|
Second quarter
|
$ | 136,231 | $ | 507 | 0.37 | % | $ | 349,870 | $ | 3,148 | 0.90 | % | ||||||||||||
|
Third quarter
|
$ | 188,431 | $ | 1,245 | 0.66 | % | $ | 354,544 | $ | 3,444 | 0.97 | % | ||||||||||||
|
Fourth quarter
|
$ | 237,043 | $ | 1,133 | 0.48 | % | $ | 323,979 | $ | 2,752 | 0.85 | % | ||||||||||||
| $ | 741,624 | $ | 3,918 | 0.53 | % | $ | 1,395,781 | $ | 12,332 | 0.88 | % | |||||||||||||
|
PULASKI FINANCIAL CORP.
|
||||||||||||
|
NONPERFORMING ASSETS
|
||||||||||||
|
(Unaudited)
|
||||||||||||
|
(In thousands)
|
|
|||||||||||
|
September 30,
|
June 30,
|
September 30,
|
||||||||||
|
NON-PERFORMING ASSETS
|
2014
|
2014
|
2013
|
|||||||||
|
Non-accrual loans:
|
||||||||||||
|
Single-family residential real estate:
|
||||||||||||
|
First mortgage
|
$ | 4,026 | $ | 3,878 | $ | 5,335 | ||||||
|
Second mortgage
|
354 | 353 | 442 | |||||||||
|
Home equity lines of credit
|
1,479 | 2,027 | 2,124 | |||||||||
|
|
5,859 | 6,258 | 7,901 | |||||||||
|
Commercial:
|
||||||||||||
|
Commercial and multi-family real estate
|
457 | -- | 1,774 | |||||||||
|
Land acquisition and development
|
3,734 | -- | -- | |||||||||
|
Real estate construction and development
|
-- | -- | -- | |||||||||
|
Commercial and industrial
|
348 | 350 | -- | |||||||||
|
Total commercial
|
4,539 | 350 | 1,774 | |||||||||
|
Consumer & installment
|
-- | 54 | 78 | |||||||||
|
Total non-accrual loans
|
10,398 | 6,662 | 9,753 | |||||||||
|
Non-Accrual Troubled debt restructurings: (1)
|
||||||||||||
|
Current under the restructured terms:
|
||||||||||||
|
Single-family residential real estate:
|
||||||||||||
|
First mortgage
|
4,668 | 5,225 | 5,169 | |||||||||
|
Second mortgage
|
1,126 | 1,323 | 904 | |||||||||
|
Home equity lines of credit
|
741 | 863 | 498 | |||||||||
|
Total single-family residential real estate
|
6,535 | 7,411 | 6,571 | |||||||||
|
Commercial:
|
||||||||||||
|
Commercial and multi-family real estate
|
3,335 | 3,469 | 2,585 | |||||||||
|
Land acquisition and development
|
-- | -- | 43 | |||||||||
|
Real estate construction and development
|
-- | 40 | 23 | |||||||||
|
Commercial and industrial
|
1,102 | 1,464 | 2,055 | |||||||||
|
Total commercial
|
4,437 | 4,973 | 4,706 | |||||||||
|
Consumer and installment
|
13 | 18 | 28 | |||||||||
|
Total current troubled debt restructurings
|
10,985 | 12,402 | 11,305 | |||||||||
|
Past due under restructured terms:
|
||||||||||||
|
Single-family residential real estate:
|
||||||||||||
|
First mortgage
|
3,477 | 2,636 | 3,974 | |||||||||
|
Second mortgage
|
483 | 99 | 155 | |||||||||
|
Home equity lines of credit
|
395 | 238 | 178 | |||||||||
|
Total single-family residential real estate
|
4,355 | 2,973 | 4,307 | |||||||||
|
Commercial:
|
||||||||||||
|
Commercial and multi-family real estate
|
669 | 660 | 1,652 | |||||||||
|
Land acquisition and development
|
38 | 40 | 19 | |||||||||
|
Real estate construction and development
|
39 | -- | -- | |||||||||
|
Commercial and industrial
|
488 | 939 | 572 | |||||||||
|
Total commercial
|
1,234 | 1,639 | 2,243 | |||||||||
|
Total past due troubled debt restructurings
|
5,589 | 4,612 | 6,550 | |||||||||
|
Total non-accrual troubled debt restructurings
|
16,574 | 17,014 | 17,855 | |||||||||
|
Total non-performing loans
|
26,972 | 23,676 | 27,608 | |||||||||
|
Real estate acquired in settlement of loans:
|
||||||||||||
|
Residential real estate
|
2,631 | 2,364 | 3,019 | |||||||||
|
Commercial real estate
|
3,171 | 5,229 | 3,376 | |||||||||
|
Total real estate acquired in settlement of loans
|
5,802 | 7,593 | 6,395 | |||||||||
|
Total non-performing assets
|
$ | 32,774 | $ | 31,269 | $ | 34,003 | ||||||
|
(1) Troubled debt restructured includes non-accrual loans totaling $16.6 million, $17.0 million and $17.9 million at September 30, 2014, June 30, 2014 and
September 30, 2013, 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
|
Year
|
|||||||||||||||||
|
Ended September 30,
|
Ended September 30,
|
|||||||||||||||||
|
ALLOWANCE FOR LOAN LOSSES
|
2014
|
2013
|
2014
|
2013
|
||||||||||||||
|
Allowance for loan losses, beginning of period
|
$ | 16,830 | $ | 18,581 | $ | 18,306 | $ | 17,117 | ||||||||||
|
Provision charged to expense
|
310 | 6,850 | 1,210 | 12,090 | ||||||||||||||
|
Charge-offs:
|
||||||||||||||||||
|
Single-family residential real estate:
|
||||||||||||||||||
|
First mortgage
|
271 | 434 | 1,772 | 3,364 | ||||||||||||||
|
Second mortgage
|
119 | 555 | 618 | 1,633 | ||||||||||||||
|
Home equity
|
328 | 496 | 1,577 | 2,402 | ||||||||||||||
|
Total single-family residential real estate
|
718 | 1,485 | 3,967 | 7,399 | ||||||||||||||
|
Commercial:
|
||||||||||||||||||
|
Commercial and multi-family real estate
|
31 | 10 | 15 | 1,013 | ||||||||||||||
|
Land acquisition and development
|
859 | 49 | 1,883 | 73 | ||||||||||||||
|
Real estate construction and development
|
-- | -- | -- | 260 | ||||||||||||||
|
Commercial and industrial
|
-- | 6,350 | 1 | 6,834 | ||||||||||||||
|
Total commercial
|
890 | 6,409 | 1,899 | 8,180 | ||||||||||||||
|
Consumer and installment
|
47 | 22 | 128 | 106 | ||||||||||||||
|
Total charge-offs
|
1,655 | 7,916 | 5,994 | 15,685 | ||||||||||||||
|
Recoveries:
|
||||||||||||||||||
|
Single-family residential real estate:
|
||||||||||||||||||
|
First mortgage
|
5 | 21 | 396 | 80 | ||||||||||||||
|
Second mortgage
|
15 | 79 | 92 | 232 | ||||||||||||||
|
Home equity
|
86 | 235 | 323 | 544 | ||||||||||||||
|
Total single-family residential real estate
|
106 | 335 | 811 | 856 | ||||||||||||||
|
Commercial:
|
||||||||||||||||||
|
Commercial and multi-family real estate
|
2 | 419 | 765 | 1,638 | ||||||||||||||
|
Land acquisition and development
|
-- | 1 | 1 | 23 | ||||||||||||||
|
Real estate construction and development
|
-- | 3 | -- | 1,800 | ||||||||||||||
|
Commercial and industrial
|
377 | 21 | 848 | 421 | ||||||||||||||
|
Total commercial
|
379 | 444 | 1,614 | 3,882 | ||||||||||||||
|
Consumer and installment
|
8 | 12 | 31 | 46 | ||||||||||||||
|
Total recoveries
|
493 | 791 | 2,456 | 4,784 | ||||||||||||||
|
Net charge-offs
|
1,162 | 7,125 | 3,538 | 10,901 | ||||||||||||||
|
Balance, end of period
|
$ | 15,978 | $ | 18,306 | $ | 15,978 | $ | 18,306 | ||||||||||
|
September 30,
|
June 30,
|
September 30,
|
||||||||||
|
ASSET QUALITY RATIOS
|
2014
|
2014
|
2013
|
|||||||||
|
Non-performing loans as a percent of total loans
|
2.40 | % | 2.14 | % | 2.75 | % | ||||||
|
Non-performing loans excluding current troubled debt
|
||||||||||||
|
restructurings as a percent of total loans
|
1.42 | % | 1.02 | % | 1.62 | % | ||||||
|
Non-performing assets as a percent of total assets
|
2.37 | % | 2.28 | % | 2.66 | % | ||||||
|
Non-performing assets excluding current troubled debt
|
||||||||||||
|
restructurings as a percent of total assets
|
1.58 | % | 1.37 | % | 1.78 | % | ||||||
|
Allowance for loan losses as a percent of total loans
|
1.42 | % | 1.52 | % | 1.82 | % | ||||||
|
Allowance for loan losses as a percent
|
||||||||||||
|
of non-performing loans
|
59.24 | % | 71.08 | % | 66.31 | % | ||||||
|
Allowance for loan losses as a percent of
|
||||||||||||
|
non-performing loans excluding current troubled debt
|
||||||||||||
|
restructurings and related allowance for loan losses
|
97.06 | % | 144.30 | % | 106.56 | % | ||||||
|
PULASKI FINANCIAL CORP.
|
||||||||||||||||||||||||
|
AVERAGE BALANCE SHEETS
|
||||||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||
|
Three Months Ended
|
||||||||||||||||||||||||
|
September 30, 2014
|
September 30, 2013
|
|||||||||||||||||||||||
|
|
Interest
|
Average
|
Interest
|
Average
|
||||||||||||||||||||
|
Average
|
and
|
Yield/
|
Average
|
and
|
Yield/
|
|||||||||||||||||||
|
Interest-earning assets:
|
Balance
|
Dividends
|
Cost
|
Balance
|
Dividends
|
Cost
|
||||||||||||||||||
|
Loans receivable
|
$ | 1,117,601 | $ | 11,509 | 4.12 | % | $ | 1,011,550 | $ | 11,081 | 4.38 | % | ||||||||||||
|
Mortgage loans held for sale
|
72,628 | 776 | 4.27 | % | 97,804 | 950 | 3.89 | % | ||||||||||||||||
|
Other interest-earning assets
|
56,251 | 112 | 0.80 | % | 63,003 | 86 | 0.55 | % | ||||||||||||||||
|
Total interest-earning assets
|
1,246,480 | 12,397 | 3.98 | % | 1,172,357 | 12,117 | 4.13 | % | ||||||||||||||||
|
Non-interest-earning assets
|
86,304 | 82,212 | ||||||||||||||||||||||
|
Total assets
|
$ | 1,332,784 | $ | 1,254,569 | ||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Deposits
|
$ | 822,486 | $ | 820 | 0.40 | % | $ | 850,366 | $ | 1,035 | 0.49 | % | ||||||||||||
|
Borrowed money
|
193,443 | 494 | 1.02 | % | 95,418 | 371 | 1.55 | % | ||||||||||||||||
|
Total interest-bearing liabilities
|
1,015,929 | 1,314 | 0.52 | % | 945,784 | 1,406 | 0.59 | % | ||||||||||||||||
|
Non-interest-bearing deposits
|
188,000 | 171,722 | ||||||||||||||||||||||
|
Non-interest-bearing liabilities
|
13,828 | 15,426 | ||||||||||||||||||||||
|
Stockholders' equity
|
115,027 | 121,637 | ||||||||||||||||||||||
|
Total liabilities and stockholders' equity
|
$ | 1,332,784 | $ | 1,254,569 | ||||||||||||||||||||
|
Net interest income
|
$ | 11,083 | $ | 10,711 | ||||||||||||||||||||
|
Interest rate spread
|
3.46 | % | 3.54 | % | ||||||||||||||||||||
|
Net interest margin
|
3.56 | % | 3.65 | % | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||
|
Year Ended
|
||||||||||||||||||||||||
|
September 30, 2014
|
September 30, 2013
|
|||||||||||||||||||||||
|
|
Interest
|
Average
|
Interest
|
Average
|
||||||||||||||||||||
|
Average
|
and
|
Yield/
|
Average
|
and
|
Yield/
|
|||||||||||||||||||
|
Interest-earning assets:
|
Balance
|
Dividends
|
Cost
|
Balance
|
Dividends
|
Cost
|
||||||||||||||||||
|
Loans receivable
|
$ | 1,053,709 | $ | 44,822 | 4.25 | % | $ | 1,005,985 | $ | 46,044 | 4.58 | % | ||||||||||||
|
Mortgage loans held for sale
|
51,838 | 2,195 | 4.23 | % | 152,340 | 5,170 | 3.39 | % | ||||||||||||||||
|
Other interest-earning assets
|
85,832 | 410 | 0.48 | % | 58,745 | 400 | 0.68 | % | ||||||||||||||||
|
Total interest-earning assets
|
1,191,379 | 47,427 | 3.98 | % | 1,217,070 | 51,614 | 4.24 | % | ||||||||||||||||
|
Non-interest-earning assets
|
83,341 | 83,536 | ||||||||||||||||||||||
|
Total assets
|
$ | 1,274,720 | $ | 1,300,606 | ||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Deposits
|
$ | 840,398 | $ | 3,514 | 0.42 | % | $ | 899,241 | $ | 4,965 | 0.55 | % | ||||||||||||
|
Borrowed money
|
127,529 | 1,716 | 1.35 | % | 91,621 | 1,480 | 1.62 | % | ||||||||||||||||
|
Total interest-bearing liabilities
|
967,927 | 5,230 | 0.54 | % | 990,862 | 6,445 | 0.65 | % | ||||||||||||||||
|
Non-interest-bearing deposits
|
180,896 | 172,814 | ||||||||||||||||||||||
|
Non-interest-bearing liabilities
|
12,410 | 14,909 | ||||||||||||||||||||||
|
Stockholders' equity
|
113,487 | 122,021 | ||||||||||||||||||||||
|
Total liabilities and stockholders' equity
|
$ | 1,274,720 | $ | 1,300,606 | ||||||||||||||||||||
|
Net interest income
|
$ | 42,197 | $ | 45,169 | ||||||||||||||||||||
|
Interest rate spread
|
3.44 | % | 3.59 | % | ||||||||||||||||||||
|
Net interest margin
|
3.54 | % | 3.71 | % | ||||||||||||||||||||
For Additional Information Contact:
Paul Milano
Chief Financial Officer
Pulaski Financial Corp.
(314) 878-2210