Pulaski Financial Reports 45% Increase in Third Fiscal Quarter EPS

 

Pulaski Financial Corp. (Nasdaq Global Select: PULB) reported net income available to common shares for the quarter ended June 30, 2013 of $3.2 million, or $0.29 per diluted common share, compared with $2.2 million, or $0.20 per diluted common share, for the quarter ended June 30, 2012. For the nine-month periods, the Company reported net income available to common shares of $9.2 million, or $0.83 per diluted common share, in 2013 compared with net income of $5.6 million, or $0.51 per diluted common share, in 2012.

Gary Douglass, President and Chief Executive Officer, commented, “We are very pleased with our third fiscal quarter results. We saw a significant increase in mortgage revenues driven by the recovering housing market. Our asset quality continued to improve, showing meaningful declines in non-performing and internally classified assets. And finally, despite a challenging and generally low growth environment, we saw our third consecutive quarter of commercial loan growth.”

Net Interest Income Declines Modestly

Net interest income was $11.2 million for the quarter ended June 30, 2013 compared with $11.5 million for the quarter ended March 31, 2013 and $11.6 million for the quarter ended June 30, 2012. The decreases were primarily the result of declines in the net interest margin combined with a change in the mix of interest-earning assets. The net interest margin was 3.65% for the quarter ended June 30, 2013 compared with 3.67% for the March 2013 quarter and 3.84% for the June 2012 quarter.

Douglass commented, “We were encouraged to see another quarter of commercial loan growth. Unfortunately, this growth was not sufficient to offset the expected shrinkage in our legacy residential loan portfolio caused mainly by the decreasing balances in our home equity line of credit portfolio, resulting in slight shrinkage in our total portfolio level. We were also encouraged to see our net interest margin remain almost unchanged on a linked-quarter basis despite the significant industry-wide headwinds we faced during the quarter as we continued to feel the effect of the market-driven yield declines on new and renewing loans.”

Mortgage Revenues Showed a Substantial Increase on Improved Profit Margins and Higher Loan Sales Volumes

Primarily as the result of increased mortgage revenues, non-interest income increased to $4.9 million for the quarter ended June 30, 2013 compared with $4.1 million for the quarter ended June 30, 2012. Mortgage revenues were $3.4 million on loan sales of $355 million for the quarter ended June 30, 2013 compared with $2.4 million on loan sales of $342 million for the quarter ended June 30, 2012. The Company also saw a 9% increase in linked-quarter mortgage revenues.

Mortgage loans originated for sale totaled $358 million for the quarter ended June 30, 2013 compared with $350 million for the quarter ended June 30, 2012. The Company continued to experience strong demand for loans to finance the purchase of homes. Mortgage loans originated to finance the purchase of homes totaled $225 million, or 63% of total loans originated for sale, during the quarter ended June 30, 2013 compared with $200 million, or 57% of total loans originated for sale, for the quarter ended June 30, 2012.

The net profit margin on loans sold improved to 0.97% for the quarter ended June 30, 2013 compared with 0.70% for the June 30, 2012 quarter and 0.90% for the March 2013 quarter. The increases were primarily the result of strong selling prices realized from the Company’s mortgage loan investors and the continued control of costs to originate such loans. Mortgage loans held for sale increased to $144.6 million at June 30, 2013 compared with $144.0 million at March 31, 2013.

Douglass noted, “We experienced another quarter of strong loan demand that helped us achieve our ninth consecutive quarterly increase in mortgage revenues. The recovering housing market had a dramatic impact on the mix of our origination activity during the quarter. The total dollar volume of loans originated to finance home purchases reached its highest level in 14 quarters.”

Asset Quality Continued to Improve

Non-performing assets decreased to $42.9 million, or 3.2% of total assets, at June 30, 2013 from $44.9 million, or 3.3% of total assets, at March 31, 2013. In addition, the balance of internal adversely classified assets decreased approximately 3% from March 31, 2013 to June 30, 2013, resulting in the seventh consecutive quarterly decline in this category.

The provision for loan losses for the three months ended June 30, 2013 was $1.8 million compared with $1.4 million for the three months ended March 31, 2013. The increased provision was primarily the result of a higher level of net charge-offs. Net charge-offs for the quarter ended June 30, 2013 totaled $1.8 million compared with $724,000 for the March 2013 quarter.

Other News – Results of At-The-Market Common Stock Offering

The Company previously announced on May 7, 2013, that it had filed a prospectus supplement under which it planned from time to time sell up to $10,000,000 of its common stock pursuant to an “at-the-market” equity offering program. During the quarter ended June 30, 2013, the Company sold 13,653 shares of its common stock under the program through Sandler O’Neill & Partners, L.P. as sales agent. Sales were made in “at-the-market” offerings directly on The Nasdaq Global Select Market at an average price of $10.60 resulting in net proceeds to the Company totaling $140,000.

Conclusion / Outlook

Douglass stated, “For our fourth fiscal quarter of 2013, we expect to see additional asset quality improvement resulting in the continuing normalization of credit costs. We will remain focused on increasing our residential mortgage market share to capitalize on increasing home purchase activity and help minimize the revenue impact of potentially lower demand for mortgage refinancings caused by a higher interest rate environment. We will also concentrate on a continuation of commercial loan growth. And finally, we expect to continue to implement our capital management strategy by repurchasing additional preferred shares with available cash and excess capital.”

Conference Call Tomorrow

Pulaski Financial’s management will discuss third fiscal quarter results and other developments tomorrow, July 31, 2013, 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://pulaskibank.com/corporate-profile.aspx. Participants in the conference call may dial 877-473-3757, conference ID 42945640, a few minutes before the start time. The call will also be available for replay through August 31, 2013 at 855-859-2056 or 404-537-3406, conference ID 42945640.

About Pulaski Financial

Pulaski Financial Corp., operating in its 91st 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 and Kansas City 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.

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5 Financial Numbers You Should Know

iStockphoto

Financial literacy is an important, lifelong personal finance skill that everyone should have because it fosters careful spending and informed decision making. Responsible personal finance habits will guide you toward a life of financial freedom, and increasing your vocabulary of money words can only help. Here are five money definitions you should add to your financial literacy repertoire so you know how to get the most out of your money and financial decisions.

[More from Manilla.com: 5 Tips for Boosting Your Stock Portfolio]

1. Credit Score

Your credit score impacts many facets of your life including getting a loan for a car or house and being approved for a credit card. Because a poor credit score can have such a negative impact on your life, it’s important that you frequently check your credit score. Experts recommend checking your credit report at least once a year to catch errors or identity theft.

2. APY

APY—or annual percentage yield—is your yearly compounded interest generally associated with a bank account. Every year, your financial institution will pay you a certain percentage of the money you keep in an account and the APY determines how much you receive.

[More from Manilla.com: Financial Tracking & Budgeting Basics]

3. APR

APR—or annual percentage rate of interest—works the other way around. APR is the interest that you pay a financial institution or creditor on loans or credit cards. Therefore, if you know you won’t be able to pay your credit card bill in full each month, choose a card with a lower APR.

4. Mortgage rate

A mortgage rate is the interest rate charged by a mortgage lender, in this case regarding home ownership. Before getting a loan, shop around for a financial institution that has a low mortgage rate because a house is a large investment, and paying an above-market interest rate is a waste of money. Once you’ve obtained a loan, you should know your mortgage rate so you can make sure you’re getting the best deal out there. If you happen upon a lower rate, consider refinancing your home to save money. Before you make your decision, calculate the “payback period” because refinancing fees can be expensive.

[More from Manilla.com: 10 Steps to a Financially Organized Life]

5. 401(k) Fees

Recently, NerdWallet published a study that calculated fees associated with companies’ 401k plans can actually reduce a two-income family’s return on investment by as much as $155,000 in a lifetime. Many of us are unaware of these costly fees. How it works is when you invest in a company’s 401k plan, the money is often used to purchase mutual funds, some of which charge high fees and front-end loads. These high fees are associated with active funds using managers who make the stock purchasing decisions. On the other hand, passive funds that follow a market index without an active manager generally have lower fees. Do some research to learn more about your company’s 401k plan and the funds it selects to ensure you’re getting the most out of your hard earned money.

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

5 Financial Numbers You Should Know

iStockphoto

Financial literacy is an important, lifelong personal finance skill that everyone should have because it fosters careful spending and informed decision making. Responsible personal finance habits will guide you toward a life of financial freedom, and increasing your vocabulary of money words can only help. Here are five money definitions you should add to your financial literacy repertoire so you know how to get the most out of your money and financial decisions.

[More from Manilla.com: 5 Tips for Boosting Your Stock Portfolio]

1. Credit Score

Your credit score impacts many facets of your life including getting a loan for a car or house and being approved for a credit card. Because a poor credit score can have such a negative impact on your life, it’s important that you frequently check your credit score. Experts recommend checking your credit report at least once a year to catch errors or identity theft.

2. APY

APY—or annual percentage yield—is your yearly compounded interest generally associated with a bank account. Every year, your financial institution will pay you a certain percentage of the money you keep in an account and the APY determines how much you receive.

[More from Manilla.com: Financial Tracking & Budgeting Basics]

3. APR

APR—or annual percentage rate of interest—works the other way around. APR is the interest that you pay a financial institution or creditor on loans or credit cards. Therefore, if you know you won’t be able to pay your credit card bill in full each month, choose a card with a lower APR.

4. Mortgage rate

A mortgage rate is the interest rate charged by a mortgage lender, in this case regarding home ownership. Before getting a loan, shop around for a financial institution that has a low mortgage rate because a house is a large investment, and paying an above-market interest rate is a waste of money. Once you’ve obtained a loan, you should know your mortgage rate so you can make sure you’re getting the best deal out there. If you happen upon a lower rate, consider refinancing your home to save money. Before you make your decision, calculate the “payback period” because refinancing fees can be expensive.

[More from Manilla.com: 10 Steps to a Financially Organized Life]

5. 401(k) Fees

Recently, NerdWallet published a study that calculated fees associated with companies’ 401k plans can actually reduce a two-income family’s return on investment by as much as $155,000 in a lifetime. Many of us are unaware of these costly fees. How it works is when you invest in a company’s 401k plan, the money is often used to purchase mutual funds, some of which charge high fees and front-end loads. These high fees are associated with active funds using managers who make the stock purchasing decisions. On the other hand, passive funds that follow a market index without an active manager generally have lower fees. Do some research to learn more about your company’s 401k plan and the funds it selects to ensure you’re getting the most out of your hard earned money.

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Financial Services Commission of Ontario Issues Interim Orders Against Mortgage Lenders Ltd. and Ralph Iacono

TORONTO , July 30, 2013 /CNW/ - The Superintendent of Financial Services for the Financial Services Commission of Ontario (FSCO) has issued an Interim Compliance Order against Ralph Iacono and Mortgage Lenders Ltd. and an Interim Suspension Order against Mortgage Lenders Ltd. ordering them to immediately cease carrying on mortgage brokering business in Ontario and holding themselves out as doing so.

The Superintendent has grounds to believe that Mr. Iacono is dealing in mortgages without a licence on behalf of Mortgage Lenders Ltd. It is alleged that the clients of Mortgage Lenders Ltd. are at risk because Mr. Iacono 's dealings with them contravenes the Mortgage Brokerages, Lenders and Administrators Act, 2006 (the Act). The Act requires Ontario's mortgage brokerages, administrators, brokers and agents to be licenced and holds them to specific standards. In addition, it is alleged that Mr. Iacono 's ongoing mortgage activities are in defiance of an Order of the Superintendent dated December 5, 2012 , which revoked Mr. Iacono 's mortgage broker licence.

The Act allows the Superintendent to make an interim order when the interests of the public may be adversely affected by any delay in making a compliance or revocation order.

The interim orders against Mortgage Lenders Ltd. and Mr. Iacono will expire in 21 days if the Superintendent does not make a notice of proposal to make a permanent order in either matter.

Every individual convicted of an offence under the Act, including not complying with an interim order, is liable to a fine of up to $100,000.00 , imprisonment for up to a year, or both. Every corporation convicted of an offence under the Act is liable to a fine up to $200,000.00 .

FSCO investigates allegations of misconduct, unfair practices and non-compliance with legislation or regulations in its regulated sectors. When warranted, FSCO takes enforcement action.

FSCO is an agency of the Ministry of Finance established under the Financial Services Commission of Ontario Act, 1997. It regulates insurance, pension plans, loan and trust companies, credit unions and caisses populaires, co-operative corporations and mortgage brokerages and administrators in Ontario.

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Financial Opposites in a Life Together

And boy, did Ms. Bartone, a 32-year-old legal recruiter, and Mr. Bartone, a 43-year-old bartender, have a lot to talk about. I was in their living room, in North Bergen, N.J., to witness it all as part of a “fiscal health day” exercise, where I promised to spend several hours helping readers organize their financial life.

The goal of our meeting was to try to reconcile their different money philosophies before they opened a joint bank account to handle their household expenses. They needed to figure out a way to track Mr. Bartone’s earnings, most of them in cash, which they were not entirely sure of. She also wanted a better way to track their spending (and overspending). And both of them had accumulated significant credit card debt, which had to be tackled before they could begin to think about saving for a house.

“Financially, we are opposites,” said Mr. Bartone, who has a sleeve of colorful tattoos that climb from each wrist to his elbows. “Total, total, total opposites.”

Both of them were honest about their financial behavior: Mr. Bartone acknowledged that he was the spender. Ms. Bartone described herself as determined and goal-oriented, and said she had saved significant sums in the past. But they now owe more than $30,000 on credit cards, a topic that Ms. Bartone said she had avoided broaching. So they had not had the tough talk about how best to stanch the bleeding and work on a joint plan to get out of debt. “I have been really cautious about not stepping on his pride,” she added.

But they volunteered to put it all on the table for their personal fiscal health day, the brainchild of my colleague Ron Lieber, which involves setting aside a full day to fine-tune finances and make headway on the money-related tasks that never seem to get done. I asked readers on the Bucks blog to submit their pleas, with the promise that I would meet with the candidate with the most compelling story.

Nearly 100 readers responded, many of them needing something more like an overhaul than a financial tuneup. There were tales of paralyzing student loan and credit card debts and crushing medical bills, as well as pleas from single people and young families hoping to do better than live paycheck to paycheck. Some lost their jobs in the recession, and had gotten new, lower-paying work and were trying to figure out how to live on less.

I chose the Bartones in part because their financial issues are all too common. Ms. Bartone, who has curly brown hair and a contagious smile, wanted to make sure she and her husband were on the same financial page and to set priorities on their financial to-do list. She also felt it would help to have a neutral third party to walk them through the process given that they are financial opposites. She calls herself neurotic and keeps spreadsheets. He puts his cash tips in a kitchen drawer.

Here is what we managed to get done in one afternoon:

MONEY TALK  The biggest accomplishment, by far, was having the newlyweds sit down at their dining room table to actually talk about their financial life, their differing outlooks and how their views were influenced by their upbringings. This was a huge step. My suggestion, unromantic as it may sound, was to make the money talk a weekly ritual, at least until they learned more about their income and spending patterns and made progress on paying down their debts.  

CREDIT CARD DEBT The couple have lived together for several years, yet each still did not know exactly how much debt the other had. So Ms. Bartone created two lists of each of their credit cards, along with the outstanding balances and interest rates. She has already started to pay down the cards with the highest rates first, and she said she would help her husband set up his own plan of attack. But she had a good question: since the interest rates on Mr. Bartone’s cards were more than twice as high as hers, should she focus on paying down his debt first?

I told her she could not enable his behavior, particularly if he did not start to control his spending. But I also contacted an expert after I left — Kristin Harad, of VitaVie Financial Planning, who had seen this situation many times before.

“Creating healthy habits as a unit is paramount,” she said, since they are building a future together. So yes, they should focus on paying down Mr. Bartone’s debt first. But that also means Mr. Bartone needs to remove the plastic from his wallet (and frankly, the financial planner said, so does Ms. Bartone). They should use only cash and debit cards and stow the rest of the cards away. (We will talk about how they managed to accumulate their debt below.)

 

 

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Financial Worries Pile on Long Before Graduation

Money troubles interfere with the academic performance of about one-third of all college students, and a similar number of students regularly skip buying required academic materials because of the costs, according to a survey released on Thursday.

In an era of stagnant incomes and rising tuition and student debt, the burden of college costs on families and former students is well documented. But the new findings, from the National Survey of Student Engagement, show that financial worries are a major source of stress for undergraduates while they are still in school.

About three-fifths of students surveyed reported that they often worry about having enough money to cover ordinary costs, and students who spend the most hours at paying jobs are, not surprisingly, those feeling the most financial stress. Among those who work more than 20 hours a week, about three-fifths said that their jobs got in the way of school work.

“For far too many students, this is a real obstacle to achievement,” said Alexander C. McCormick, director of the survey, which included 285,000 students at 577 four-year colleges and universities in the United States and Canada.

Dr. McCormick, an associate professor of education at Indiana University, said money troubles had always existed for some students, but “since the 2008 recession, it’s something we need to view more seriously.”

The survey findings parallel those in studies by the American College Health Association, which show that as a drain on students’ mental health, finances rank second only to academics, and ahead of intimate relationships, lack of sleep and family problems. About one-third of students in those surveys say that in the prior year, financial concerns have been “traumatic or very difficult to handle.”

The National Survey of Student Engagement dates to 2000 and is conducted annually, concentrating primarily on academic issues. The survey does not release scores by institution, but it does show colleges their own results and how they compare with their peers. School administrators have come to see it as a valuable tool for assessing their institutions.

As in the past, this year’s survey asked students about practices that research has shown to improve learning, like frequent interaction with professors, collaboration with other students, studying abroad and doing internships. The results showed sharp variations by demographics and major area of study.

Students in sciences like astronomy, biochemistry and physics, for example, were more than twice as likely as their peers in other fields to participate in research with faculty members, and among the least likely to combine their academics with some kind of community service.

Black students were more likely to work collaboratively than those in other racial and ethnic groups. Women spent significantly more hours studying than men did, and students at undergraduate colleges of arts and sciences studied more than those at universities with graduate programs.

For the first time, the survey asked why students chose their majors, and more than half said a central reason was having the skills to find a job and advance a career. Students in science and technology fields were far more likely than others to give that answer, while white students were far less likely than their Hispanic, black or Asian classmates.

This year’s survey also looked at the booming population of college students who take their classes online, who tend to be older than traditional college students. It found that the remote learners spent more time studying — which is consistent with the age difference — but fell short on many other measures of engagement.

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