##### Table of Contents

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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)



|x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ---------------------------------------------------------------------------------------

For the quarterly period ended December 31, 2006

OR



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------

For the transition period from  to

0-24571

Commission File Number

Pulaski Financial Corp.

(Exact name of registrant as specified in its charter)



|                                                               |  |                                        
|-------------------------------------------------------------- |  | ---------------------------------------
|Missouri                                                       |  | 43-1816913                             
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification Number)
|                                                               | 
|12300 Olive Boulevard St. Louis, Missouri                      |  | 63141-6434                             
|(Address of principal executive office)                        |  | (Zip Code)                             

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

Not Applicable

(Former name,
address and former fiscal year, if changed since last report)

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 a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of accelerated
filer and large accelerated filer in Rule 12b-2 of the Exchange Act.

Large accelerated filer ̈Accelerated filer  x                    Non-accelerated filer ̈

Indicate by check mark whether the registrant is a shell company (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.



|                                       |  |                                
|-------------------------------------- |  | -------------------------------
|Class                                  |  | Outstanding at February 7, 2007
|Common Stock, par value $.01 per share |  | 9,942,921 shares               



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##### Table of Contents

PULASKI FINANCIAL CORP. AND SUBSIDIARIES

FORM 10-Q

DECEMBER 31, 2006

TABLE OF CONTENTS



|         |  |                                                                                                                              |  |     
|-------- |  | ---------------------------------------------------------------------------------------------------------------------------- |  | ----
|         |  |                                                                                                                              |  | Page
|         |  |                                                                                                                             
|PART I   |  | FINANCIAL INFORMATION                                                                                                        |  |     
|         |  |                                                                                                                             
|Item 1.  |  | Financial Statements                                                                                                         |  |     
|         |  |                                                                                                                             
|         |  | Consolidated Balance Sheets at December 31, 2006 (Unaudited) and September 30, 2006                                          |  | 1   
|         |  |                                                                                                                             
|         |  | Consolidated Statements of Income and Comprehensive Income for the Three Months Ended December 31, 2006 and 2005 (Unaudited) |  | 2   
|         |  |                                                                                                                             
|         |  | Consolidated Statement of Stockholders Equity for the Three Months Ended December 31, 2006 (Unaudited)                      |  | 3   
|         |  |                                                                                                                             
|         |  | Consolidated Statements of Cash Flows for the Three Months Ended December 31, 2006 and 2005 (Unaudited)                      |  | 4   
|         |  |                                                                                                                             
|         |  | Notes to Unaudited Consolidated Financial Statements (Unaudited)                                                             |  | 6   
|         |  |                                                                                                                             
|Item 2.  |  | Managements Discussion and Analysis of Financial Condition and Results of Operations                                        |  | 10  
|         |  |                                                                                                                             
|Item 3.  |  | Quantitative and Qualitative Disclosures About Market Risk                                                                   |  | 20  
|         |  |                                                                                                                             
|Item 4.  |  | Controls and Procedures                                                                                                      |  | 21  
|         |  |                                                                                                                             
|PART II  |  | OTHER INFORMATION                                                                                                            |  |     
|         |  |                                                                                                                             
|Item 1.  |  | Legal Proceedings                                                                                                            |  | 23  
|         |  |                                                                                                                             
|Item 1A. |  | Risk Factors                                                                                                                 |  | 23  
|         |  |                                                                                                                             
|Item 2.  |  | Unregistered Sales of Equity Securities and Use of Proceeds                                                                  |  | 23  
|         |  |                                                                                                                             
|Item 3.  |  | Defaults Upon Senior Securities                                                                                              |  | 25  
|         |  |                                                                                                                             
|Item 4.  |  | Submission of Matters to a Vote of Security Holders                                                                          |  | 25  
|         |  |                                                                                                                             
|Item 5.  |  | Other Information                                                                                                            |  | 25  
|         |  |                                                                                                                             
|Item 6.  |  | Exhibits                                                                                                                     |  | 25  
|         |  |                                                                                                                             
|         |  | Signatures                                                                                                                   |  |     



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##### Table of Contents

PART I - FINANCIAL INFORMATION

PULASKI FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2006 (UNAUDITED) AND SEPTEMBER 30, 2006



|                                                                                                                                                                         |  |                  |               |   |                   |   |             |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ---------------- | ------------- | - | ----------------- | - | ----------- | -
|                                                                                                                                                                         |  | December 31,2006 |               |   | September 30,2006 |  
|ASSETS                                                                                                                                                                   |  |                  |               |   |                   |   |             |  
|Cash and amounts due from depository institutions                                                                                                                        |  | $                | 19,388,396    |   |                   | $ | 19,085,655  |  
|Federal funds sold and overnight deposit                                                                                                                                 |  |                  | 1,767,118     |   |                   |   | 3,030,571   |  
|                                                                                                                                                                         |  |                  |               |   |                   |   |             |  
|Total cash and cash equivalents                                                                                                                                          |  |                  | 21,155,514    |   |                   |   | 22,116,226  |  
|Interest bearing time deposits in other banks                                                                                                                            |  |                  | 297,000       |   |                   |   | 792,000     |  
|Equity securities available for sale, at fair value                                                                                                                      |  |                  | 3,810,587     |   |                   |   | 4,517,259   |  
|Debt securities held to maturity, at amortized cost (fair value, $15,882,250 and $12,874,121 at December 31, 2006 and September 30,
2006, respectively)                  |  |                  | 15,925,010    |   |                   |   | 12,932,036  |  
|Mortgage-backed and related securities held to maturity, at amortized cost (fair value, $443,582 and $469,713 at December 31, 2006 and
September 30, 2006, respectively) |  |                  | 415,100       |   |                   |   | 441,266     |  
|Mortgage-backed securities available for sale, at fair value                                                                                                             |  |                  | 3,072,068     |   |                   |   | 3,190,125   |  
|Capital stock of Federal Home Loan Bank, at cost                                                                                                                         |  |                  | 10,099,500    |   |                   |   | 9,524,300   |  
|Loans receivable held for sale, at lower of cost or market                                                                                                               |  |                  | 83,169,258    |   |                   |   | 60,371,296  |  
|Loans receivable, net of allowance for loan losses of $8,350,262 and $7,817,317 at December 31, 2006 and September 30, 2006,
respectively                                |  |                  | 833,038,265   |   |                   |   | 785,199,024 |  
|Real estate acquired in settlement of loans, net of allowance for losses of $110,885 and $26,350 at December 31, 2006 and
September 30, 2006, respectively               |  |                  | 2,141,772     |   |                   |   | 2,764,167   |  
|Premises and equipment, net                                                                                                                                              |  |                  | 18,306,037    |   |                   |   | 18,165,840  |  
|Bank owned life insurance                                                                                                                                                |  |                  | 24,301,295    |   |                   |   | 24,043,698  |  
|Accrued interest receivable                                                                                                                                              |  |                  | 6,283,427     |   |                   |   | 5,532,177   |  
|Goodwill                                                                                                                                                                 |  |                  | 3,938,524     |   |                   |   | 3,938,524   |  
|Core deposit intangible                                                                                                                                                  |  |                  | 616,912       |   |                   |   | 657,802     |  
|Other assets                                                                                                                                                             |  |                  | 8,199,989     |   |                   |   | 8,274,356   |  
|                                                                                                                                                                         |  |                  |               |   |                   |   |             |  
|Total assets                                                                                                                                                             |  | $                | 1,034,770,258 |   |                   | $ | 962,460,096 |  
|                                                                                                                                                                         |  |                  |               |   |                   |   |             |  
|LIABILITIES AND STOCKHOLDERS EQUITY                                                                                                                                     |  |                  |               |   |                   |   |             |  
|                                                                                                                                                                         |  |                  |               |   |                   |   |             |  
|Liabilities:                                                                                                                                                             |  |                  |               |   |                   |   |             |  
|Deposits                                                                                                                                                                 |  | $                | 699,419,866   |   |                   | $ | 655,576,578 |  
|Advances from Federal Home Loan Bank                                                                                                                                     |  |                  | 203,500,000   |   |                   |   | 172,800,000 |  
|Note payable                                                                                                                                                             |  |                  | 3,235,000     |   |                   |   | 3,320,000   |  
|Subordinated debentures                                                                                                                                                  |  |                  | 19,589,000    |   |                   |   | 19,589,000  |  
|Advance payments by borrowers for taxes and insurance                                                                                                                    |  |                  | 1,003,219     |   |                   |   | 3,054,713   |  
|Accrued interest payable                                                                                                                                                 |  |                  | 1,141,276     |   |                   |   | 1,800,764   |  
|Due to other banks                                                                                                                                                       |  |                  | 21,610,596    |   |                   |   | 22,066,374  |  
|Other liabilities                                                                                                                                                        |  |                  | 7,704,533     |   |                   |   | 8,426,121   |  
|                                                                                                                                                                         |  |                  |               |   |                   |   |             |  
|Total liabilities                                                                                                                                                        |  |                  | 957,203,490   |   |                   |   | 886,633,550 |  
|                                                                                                                                                                         |  |                  |               |   |                   |   |             |  
|Stockholders Equity:                                                                                                                                                    |  |                  |               |   |                   |   |             |  
|Preferred stock - $.01 par value per share, authorized 1,000,000 shares; none issued or outstanding                                                                      |  |                  |              |   |                   |   |            |  
|Common stock - $.01 par value per share, authorized 18,000,000 shares; 13,068,618 shares issued at December 31, 2006 and
September 30, 2006                              |  |                  | 130,687       |   |                   |   | 130,687     |  
|Treasury stock - at cost; 3,110,956 and 3,122,275 shares at December 31, 2006 and September 30, 2006, respectively                                                       |  |                  | (16,161,799   | ) |                   |   | (15,982,452 | )
|Treasury stock - equity trust - at cost; 203,221 and 255,053 shares at December 31, 2006 and September 30, 2006,
respectively                                            |  |                  | (2,658,178    | ) |                   |   | (3,131,404  | )
|Additional paid-in capital                                                                                                                                               |  |                  | 49,917,401    |   |                   |   | 50,067,003  |  
|Accumulated other comprehensive loss                                                                                                                                     |  |                  | (57,451       | ) |                   |   | (12,933     | )
|Retained earnings                                                                                                                                                        |  |                  | 46,396,108    |   |                   |   | 44,755,645  |  
|                                                                                                                                                                         |  |                  |               |   |                   |   |             |  
|Total stockholders equity                                                                                                                                               |  |                  | 77,566,768    |   |                   |   | 75,826,546  |  
|                                                                                                                                                                         |  |                  |               |   |                   |   |             |  
|Total liabilities and stockholders equity                                                                                                                               |  | $                | 1,034,770,258 |   |                   | $ | 962,460,096 |  
|                                                                                                                                                                         |  |                  |               |   |                   |   |             |  

See accompanying notes to the unaudited consolidated financial statements.



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##### Table of Contents

PULASKI FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

THREE MONTHS ENDED DECEMBER 31, 2006 AND 2005 (UNAUDITED)



|                                                     |  |                                |            |   |      |   |           
|---------------------------------------------------- |  | ------------------------------ | ---------- | - | ---- | - | ----------
|                                                     |  | Three Months EndedDecember 31,
|                                                     |  | 2006                           |            |   | 2005
|Interest and Dividend Income:                        |  |                                |            |   |      |   |           
|Loans receivable                                     |  | $                              | 15,950,220 |   |      | $ | 11,524,508
|Debt and equity securities                           |  |                                | 187,107    |   |      |   | 82,178    
|Mortgage-backed securities                           |  |                                | 42,317     |   |      |   | 56,388    
|Capital stock of the Federal Home Loan Bank          |  |                                | 98,343     |   |      |   | 74,954    
|Other                                                |  |                                | 62,819     |   |      |   | 51,960    
|                                                     |  |                                |            |   |      |   |           
|Total interest and dividend income                   |  |                                | 16,340,806 |   |      |   | 11,789,988
|                                                     |  |                                |            |   |      |   |           
|Interest Expense:                                    |  |                                |            |   |      |   |           
|Deposits                                             |  |                                | 6,736,198  |   |      |   | 3,674,357 
|Advances from Federal Home Loan Bank of Des Moines   |  |                                | 2,291,254  |   |      |   | 1,893,184 
|Subordinated debentures                              |  |                                | 382,608    |   |      |   | 312,211   
|Note payable                                         |  |                                | 58,713     |   |      |   | 54,519    
|                                                     |  |                                |            |   |      |   |           
|Total interest expense                               |  |                                | 9,468,773  |   |      |   | 5,934,271 
|                                                     |  |                                |            |   |      |   |           
|Net interest income                                  |  |                                | 6,872,033  |   |      |   | 5,855,717 
|Provision for loan losses                            |  |                                | 681,553    |   |      |   | 406,621   
|                                                     |  |                                |            |   |      |   |           
|Net interest income after provision for loan losses  |  |                                | 6,190,480  |   |      |   | 5,449,096 
|                                                     |  |                                |            |   |      |   |           
|Non-Interest Income:                                 |  |                                |            |   |      |   |           
|Retail banking fees                                  |  |                                | 782,231    |   |      |   | 747,751   
|Mortgage revenues                                    |  |                                | 908,555    |   |      |   | 795,312   
|Title policy revenues                                |  |                                | 212,895    |   |      |   | 198,284   
|Investment brokerage revenues                        |  |                                | 242,455    |   |      |   | 117,281   
|Appraisal division revenues                          |  |                                | 208,200    |   |      |   |          
|Gain on the sale of securities                       |  |                                | 143,720    |   |      |   |          
|Bank-owned life insurance income                     |  |                                | 257,597    |   |      |   | 162,611   
|Other                                                |  |                                | 181,409    |   |      |   | 218,818   
|                                                     |  |                                |            |   |      |   |           
|Total non-interest income                            |  |                                | 2,937,062  |   |      |   | 2,240,057 
|                                                     |  |                                |            |   |      |   |           
|Non-Interest Expense:                                |  |                                |            |   |      |   |           
|Salaries and employee benefits                       |  |                                | 2,674,018  |   |      |   | 2,047,533 
|Occupancy, equipment and data processing expense     |  |                                | 1,250,670  |   |      |   | 1,108,237 
|Advertising                                          |  |                                | 247,266    |   |      |   | 189,098   
|Professional services                                |  |                                | 261,923    |   |      |   | 338,798   
|Loss (gain) on derivative instruments                |  |                                | (172,315   | ) |      |   | 407,391   
|Data processing termination expense                  |  |                                | 219,534    |   |      |   |          
|Other                                                |  |                                | 845,991    |   |      |   | 767,529   
|                                                     |  |                                |            |   |      |   |           
|Total non-interest expense                           |  |                                | 5,327,087  |   |      |   | 4,858,586 
|                                                     |  |                                |            |   |      |   |           
|Income before income taxes                           |  |                                | 3,800,455  |   |      |   | 2,830,567 
|Income tax expense                                   |  |                                | 1,314,010  |   |      |   | 983,486   
|                                                     |  |                                |            |   |      |   |           
|Net Income                                           |  | $                              | 2,486,445  |   |      | $ | 1,847,081 
|                                                     |  |                                |            |   |      |   |           
|Other comprehensive (loss) income                    |  |                                | (44,518    | ) |      |   | 28,632    
|                                                     |  |                                |            |   |      |   |           
|Net comprehensive income                             |  | $                              | 2,441,927  |   |      | $ | 1,875,713 
|                                                     |  |                                |            |   |      |   |           
|Per Share Amounts:                                   |  |                                |            |   |      |   |           
|                                                     |  |                                |            |   |      |   |           
|Basic earnings per share                             |  | $                              | 0.25       |   |      | $ | 0.22      
|Weighted average common shares outstanding - basic   |  |                                | 9,823,850  |   |      |   | 8,302,664 
|Diluted earnings per share                           |  | $                              | 0.24       |   |      | $ | 0.21      
|Weighted average common shares outstanding - diluted |  |                                | 10,269,066 |   |      |   | 8,864,422 

See accompanying notes to the unaudited consolidated financial statements.



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##### Table of Contents

PULASKI FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY

THREE MONTHS ENDED DECEMBER 31, 2006 (UNAUDITED)



|                                                             |  |             |         |                |   |             |                          |  |   |                                   |   |  |                  |         |   |       |   |            |   |  |   |            |  
|------------------------------------------------------------ |  | ----------- | ------- | -------------- | - | ----------- | ------------------------ |  | - | --------------------------------- | - |  | ---------------- | ------- | - | ----- | - | ---------- | - |  | - | ---------- | -
|                                                             |  | CommonStock |         | Treasury Stock |   |             | AdditionalPaid-InCapital |  |   | AccumulatedOtherComprehensiveLoss |   |  | RetainedEarnings |         |   | Total |  
|Balance, September 30, 2006                                  |  | $           | 130,687 |                | $ | (19,113,856 | )                        |  | $ | 50,067,003                        |   |  | $                | (12,933 | ) |       | $ | 44,755,645 |   |  | $ | 75,826,546 |  
|Comprehensive income:                                        |  |             |         |                |   |             |                          |  |   |                                   |   |  |                  |         |   |       |   |            |   |  |   |            |  
|Net income                                                   |  |             |        |                |   |            |                          |  |   |                                  |   |  |                  |        |   |       |   | 2,486,445  |   |  |   | 2,486,445  |  
|Unrealized loss on investment securities, net of tax         |  |             |        |                |   |            |                          |  |   |                                  |   |  |                  | (44,518 | ) |       |   |           |   |  |   | (44,518    | )
|Dividends ($.085 per share)                                  |  |             |        |                |   |            |                          |  |   |                                  |   |  |                  |        |   |       |   | (845,982   | ) |  |   | (845,982   | )
|Stock options exercised                                      |  |             |         |                |   | 76,853      |                          |  |   | 47,548                            |   |  |                  |        |   |       |   |           |   |  |   | 124,401    |  
|Stock option and award expense                               |  |             |        |                |   |            |                          |  |   | 76,238                            |   |  |                  |        |   |       |   |           |   |  |   | 76,238     |  
|Stock issued under dividend reinvestment plan (2,573 shares) |  |             |        |                |   | 9,477       |                          |  |   | 30,918                            |   |  |                  |        |   |       |   |           |   |  |   | 40,395     |  
|Stock repurchased (17,059 shares)                            |  |             |        |                |   | (265,677    | )                        |  |   |                                  |   |  |                  |        |   |       |   |           |   |  |   | (265,677   | )
|Release of equity trust shares                               |  |             |        |                |   | 473,226     |                          |  |   | (473,226                          | ) |  |                  |        |   |       |   |           |   |  |   |           |  
|Amortization of equity trust expense                         |  |             |        |                |   |            |                          |  |   | 157,977                           |   |  |                  |        |   |       |   |           |   |  |   | 157,977    |  
|Excess tax benefit from stock based compensation             |  |             |        |                |   |            |                          |  |   | 10,943                            |   |  |                  |        |   |       |   |           |   |  |   | 10,943     |  
|                                                             |  |             |         |                |   |             |                          |  |   |                                   |   |  |                  |         |   |       |   |            |   |  |   |            |  
|Balance, December 31, 2006                                   |  | $           | 130,687 |                | $ | (18,819,977 | )                        |  | $ | 49,917,401                        |   |  | $                | (57,451 | ) |       | $ | 46,396,108 |   |  | $ | 77,566,768 |  
|                                                             |  |             |         |                |   |             |                          |  |   |                                   |   |  |                  |         |   |       |   |            |   |  |   |            |  

See accompanying notes to the unaudited consolidated financial statements.



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##### Table of Contents

PULASKI FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THREE MONTHS

ENDED DECEMBER 31, 2006 (UNAUDITED) AND DECEMBER 31, 2005 (UNAUDITED)



|                                                                              |  |                                 |              |   |      |   |              |  
|----------------------------------------------------------------------------- |  | ------------------------------- | ------------ | - | ---- | - | ------------ | -
|                                                                              |  | Three Months Ended December 31, |             
|                                                                              |  | 2006                            |              |   | 2005 |  
|Cash Flows From Operating Activities:                                         |  |                                 |              |   |      |   |              |  
|Net income                                                                    |  | $                               | 2,486,445    |   |      | $ | 1,847,081    |  
|                                                                              |  |                                 |              |   |      |   |              |  
|Adjustments to reconcile net income to net cash from operating activities:    |  |                                 |              |   |      |   |              |  
|Depreciation, amortization and accretion:                                     |  |                                 |              |   |      |   |              |  
|Premises and equipment                                                        |  |                                 | 352,489      |   |      |   | 309,561      |  
|Net deferred loan costs                                                       |  |                                 | 660,482      |   |      |   | 649,149      |  
|Broker fees financed under interest-rate swap agreements                      |  |                                 | 49,233       |   |      |   |             |  
|Equity trust expense                                                          |  |                                 | 157,977      |   |      |   | 220,430      |  
|Stock option and award expense                                                |  |                                 | 76,238       |   |      |   | 88,191       |  
|Provision for loan losses                                                     |  |                                 | 681,553      |   |      |   | 406,621      |  
|Provision for losses on real estate acquired in settlement of loans           |  |                                 | 84,535       |   |      |   | 42,990       |  
|Losses on sale of real estate acquired in settlement of loans                 |  |                                 | 130,142      |   |      |   | 10,046       |  
|Originations of loans receivable for sale to correspondent lenders            |  |                                 | (307,400,962 | ) |      |   | (250,192,519 | )
|Proceeds from sales of loans to correspondent lenders                         |  |                                 | 285,217,476  |   |      |   | 268,284,674  |  
|Gain on sale of loans held for sale                                           |  |                                 | (614,476     | ) |      |   | (591,674     | )
|Gain on sale of equity securities available for sale                          |  |                                 | (143,720     | ) |      |   |             |  
|Loss (gain) on derivative instruments                                         |  |                                 | (172,315     | ) |      |   | 407,391      |  
|Increase in cash value of bank-owned life insurance                           |  |                                 | (257,597     | ) |      |   | (162,611     | )
|Decrease in accrued expenses                                                  |  |                                 | (863,903     | ) |      |   | (1,079,727   | )
|Excess tax benefit from stock-based compensation                              |  |                                 | (10,943      | ) |      |   |             |  
|Changes in other assets and liabilities                                       |  |                                 | (994,749     | ) |      |   | (2,841,481   | )
|                                                                              |  |                                 |              |   |      |   |              |  
|Net adjustments                                                               |  |                                 | (23,048,540  | ) |      |   | 15,551,041   |  
|                                                                              |  |                                 |              |   |      |   |              |  
|Net cash (used in) provided by operating activities                           |  |                                 | (20,562,095  | ) |      |   | 17,398,122   |  
|                                                                              |  |                                 |              |   |      |   |              |  
|Cash Flows From Investing Activities:                                         |  |                                 |              |   |      |   |              |  
|Proceeds from sales of equity securities available for sale                   |  |                                 | 772,648      |   |      |   |             |  
|Proceeds from maturities of time deposits                                     |  |                                 | 495,000      |   |      |   |             |  
|Proceeds from maturities of debt securities held to maturity                  |  |                                 | 11,000,000   |   |      |   | 4,000,000    |  
|Proceeds from redemption of FHLB stock                                        |  |                                 | 2,462,900    |   |      |   | 1,630,100    |  
|Purchases of debt securities available for sale                               |  |                                 | (24,188      | ) |      |   | (21,353      | )
|Purchases of debt securities held to maturity                                 |  |                                 | (13,850,871  | ) |      |   | (8,936,079   | )
|Purchases of FHLB stock                                                       |  |                                 | (3,038,100   | ) |      |   | (2,893,900   | )
|Principal payments received on mortgage-backed securities                     |  |                                 | 175,825      |   |      |   | 323,873      |  
|Net increase in loans                                                         |  |                                 | (50,439,241  | ) |      |   | (35,443,139  | )
|Proceeds from sales of real estate acquired in settlement of loans receivable |  |                                 | 1,525,000    |   |      |   | 472,615      |  
|Proceeds from disposal of equipment                                           |  |                                 |             |   |      |   | 10,731       |  
|Purchases of premises and equipment                                           |  |                                 | (492,686     | ) |      |   | (1,484,667   | )
|                                                                              |  |                                 |              |   |      |   |              |  
|Net cash used in investing activities                                         |  | $                               | (51,413,713  | ) |      | $ | (42,341,819  | )
|                                                                              |  |                                 |              |   |      |   |              |  

See accompanying notes to the unaudited consolidated financial statements.



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PULASKI FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THREE MONTHS ENDED

ENDED DECEMBER 31, 2006 (UNAUDITED) AND DECEMBER 31,
2005 (UNAUDITED)



|                                                                      |  |                                |            |   |      |   |             |  
|--------------------------------------------------------------------- |  | ------------------------------ | ---------- | - | ---- | - | ----------- | -
|                                                                      |  | Three Months EndedDecember 31, |           
|                                                                      |  | 2006                           |            |   | 2005 |  
|Cash Flows From Financing Activities:                                 |  |                                |            |   |      |   |             |  
|Net increase (decrease) in deposits                                   |  | $                              | 43,843,288 |   |      | $ | (6,398,669  | )
|Net decrease in deposit liabilities held for sale                     |  |                                |           |   |      |   | (909,524    | )
|Proceeds from Federal Home Loan Bank advances, net                    |  |                                | 30,700,000 |   |      |   | 29,000,000  |  
|Payment on note payable                                               |  |                                | (85,000    | ) |      |   |            |  
|Net decrease in due to other banks                                    |  |                                | (455,778   | ) |      |   | (2,562,737  | )
|Cash paid to trustee for purchase of equity trust shares              |  |                                |           |   |      |   | (1,644,278  | )
|Net decrease in advance payments by borrowers for taxes and insurance |  |                                | (2,051,494 | ) |      |   | (2,072,996  | )
|Proceeds from cash received in dividend reinvestment plan             |  |                                | 40,395     |   |      |   |            |  
|Excess tax benefit for stock based compensation                       |  |                                | 10,943     |   |      |   |            |  
|Treasury stock issued for stock options exercised                     |  |                                | 124,401    |   |      |   | 91,581      |  
|Dividends paid on common stock                                        |  |                                | (845,982   | ) |      |   | (676,430    | )
|Stock repurchases                                                     |  |                                | (265,677   | ) |      |   | (5,301      | )
|                                                                      |  |                                |            |   |      |   |             |  
|Net cash provided by financing activities                             |  |                                | 71,015,096 |   |      |   | 14,821,646  |  
|                                                                      |  |                                |            |   |      |   |             |  
|Net decrease in cash and cash equivalents                             |  |                                | (960,712   | ) |      |   | (10,122,051 | )
|Cash and cash equivalents at beginning of period                      |  |                                | 22,116,226 |   |      |   | 25,688,486  |  
|                                                                      |  |                                |            |   |      |   |             |  
|Cash and cash equivalents at end of period                            |  | $                              | 21,155,514 |   |      | $ | 15,566,435  |  
|                                                                      |  |                                |            |   |      |   |             |  
|Supplemental Disclosures of Cash Flow Information:                    |  |                                |            |   |      |   |             |  
|Cash paid during the period for:                                      |  |                                |            |   |      |   |             |  
|Interest on deposits                                                  |  | $                              | 7,435,591  |   |      | $ | 4,119,851   |  
|Interest on advances from FHLB                                        |  |                                | 2,255,258  |   |      |   | 1,874,568   |  
|Interest on subordinated debentures                                   |  |                                | 378,699    |   |      |   | 303,800     |  
|Interest on notes payable                                             |  |                                | 58,713     |   |      |   | 54,718      |  
|                                                                      |  |                                |            |   |      |   |             |  
|Cash paid during period for interest                                  |  | $                              | 10,128,261 |   |      | $ | 6,352,937   |  
|Income taxes, net                                                     |  |                                | 1,187,577  |   |      |   | 1,182,000   |  
|Noncash Investing Activities:                                         |  |                                |            |   |      |   |             |  
|Real estate acquired in settlement of loans receivable                |  |                                | 1,117,283  |   |      |   | 1,469,342   |  

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)



|1. | BASIS OF PRESENTATION
|-- | ---------------------

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 investment in the outstanding shares of the Bank and its liabilities consist principally of subordinated debentures. Accordingly, the
information set forth in this report, including the consolidated financial statements and related financial data, relates primarily to the Bank. The Company, through the Bank, 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 December 31, 2006 and September 30, 2006 and its results of operations for the
three-month periods ended December 31, 2006 and 2005. The results of operations for the three-month period ended December 31, 2006 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, 2006 contained in the Companys 2006 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, 2006.

The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements that affect the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates. The allowance for loan losses and fair values of financial instruments are significant
estimates reported within the consolidated financial statements.



|2. | EARNINGS PER SHARE
|-- | ------------------

Basic earnings per share is
computed using the weighted average number of common shares outstanding. The dilutive effect of potential common shares outstanding is included in diluted earnings per share. The computations of basic and diluted earnings per share are presented in
the following table.



|                                              |  |                                |            |      |   |          
|--------------------------------------------- |  | ------------------------------ | ---------- | ---- | - | ---------
|                                              |  | Three Months EndedDecember 31,
|                                              |  | 2006                           |            | 2005
|Weighted average shares outstanding - basic   |  |                                | 9,823,850  |      |   | 8,302,664
|Treasury stock - equity trust                 |  |                                | 121,675    |      |   | 129,357  
|Employee stock options and awards             |  |                                | 323,541    |      |   | 432,401  
|                                              |  |                                |            |      |   |          
|Weighted average shares outstanding - diluted |  |                                | 10,269,066 |      |   | 8,864,422
|                                              |  |                                |            |      |   |          
|Net income per share - basic                  |  | $                              | 0.25       |      | $ | 0.22     
|Net income per share - diluted                |  | $                              | 0.24       |      | $ | 0.21     



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##### Table of Contents

Under the treasury stock method, outstanding stock options are dilutive when the average market price of
the Companys common stock, when combined with the effect of any unamortized compensation expense, 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.

The following options to
purchase shares during the three month periods ended December 31, 2006 and 2005 were not included in the respective computations of diluted earnings per share because the exercise price of the options, when combined with the effect of the
unamortized compensation expense, was greater than the average market price of the common shares and were considered anti-dilutive. These options expire in various periods through 2016 and 2015, respectively.



|                                |  |                                |  |        |  |  |  |  |  |  |  | 
|------------------------------- |  | ------------------------------ |  | ------ |  |  |  |  |  |  |  | 
|                                |  | Three Months EndedDecember 31, |  |        |  |  |  |  |  | 
|                                |  | 2006                           |  | 2005   |  |  |  |  |  |  |  | 
|Number of option shares         |  | 126,719                        |  | 12,772 |  |  |  |  |  |  |  | 
|Equivalent anti-dilutive shares |  | 160,020                        |  | 15,616 |  |  |  |  |  |  |  | 



|3. | STOCK-BASED COMPENSATION
|-- | ------------------------

The Companys
shareholder-approved, stock-based incentive plans permit the grant of awards in the form of options intended to qualify as incentive stock options under Section 422 of the Internal Revenue Code, options that do not so qualify (non-statutory
stock options,) and grants of restricted shares of common stock. All employees, non-employee directors and consultants of the Company and its affiliates are eligible to receive awards under the plans. Generally, all stock option awards were granted
with an exercise price equal to the market value of the Companys shares at the date of grant and generally vest, and become exercisable, over a period of three to five years. The exercise period for stock options generally may not exceed 10
years from the date of grant. Generally, option and share awards provide for accelerated vesting if there is a change in control (as defined in the plans). On July 19, 2006, the Company granted stock option awards totaling 10,500 shares of its
common stock to non-employee directors with exercise prices at a premium of 10% over the market value of the Companys shares at the date of grant. These stock option awards were immediately vested on the date of grant and are exercisable for a
period of five years from the date of grant.



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##### Table of Contents

A summary of the Companys stock option programs as of December 31, 2006 and changes during the three-month
period then ended, is presented below:



|                                 |  |                 |   |  |                              |       |                                      |   |                                          |  |           
|-------------------------------- |  | --------------- | - |  | ---------------------------- | ----- | ------------------------------------ | - | ---------------------------------------- |  | ----------
|                                 |  | NumberOf Shares |   |  | WeightedAverageExercisePrice |       | AggregateIntrinsicValue(in millions) |   | Weighted-AverageRemainingContractualLife
|Outstanding at October 1, 2006   |  | 820,300         |   |  | $                            | 8.21  |                                      |   |                                          |  |           
|Granted                          |  | 15,500          |   |  |                              | 15.58 |                                      |   |                                          |  |           
|Exercised                        |  | (20,867         | ) |  |                              | 5.96  |                                      |   |                                          |  |           
|Expired                          |  |                |   |  |                              |      |                                      |   |                                          |  |           
|Forfeited                        |  | (3,000          | ) |  |                              | 16.54 |                                      |   |                                          |  |           
|                                 |  |                 |   |  |                              |       |                                      |   |                                          |  |           
|Outstanding at December 31, 2006 |  | 811,933         |   |  |                              | 8.37  |                                      | $ | 6.2                                      |  | 5.94 years
|                                 |  |                 |   |  |                              |       |                                      |   |                                          |  |           
|Exercisable at December 31, 2006 |  | 550,930         |   |  |                              | 5.82  |                                      | $ | 5.6                                      |  | 4.84 years
|                                 |  |                 |   |  |                              |       |                                      |   |                                          |  |           

The total intrinsic value of stock options exercised during the three months ended December 31, 2006 and 2005
was $201,000 and $199,000, respectively. The weighted average grant-date fair value of options granted during the three months ended December 31, 2006 was $4.26. As of December 31, 2006, the total unrecognized compensation expense related
to non-vested stock options and awards was $866,000 and the related weighted average period over which it is expected to be recognized is 1.8 years. Excess tax benefits associated with share based payments totaled approximately $11,000 for the three
months ended December 31, 2006.

The fair value of stock options granted in the three-month periods ended December 31, 2006 and 2005 is estimated
on the date of grant using the Black-Scholes option pricing model with the following average assumptions:



|                         |  |                                |   |  |       |   |  |  |  |  |  |  |  | 
|------------------------ |  | ------------------------------ | - |  | ----- | - |  |  |  |  |  |  |  | 
|                         |  | Three Months EndedDecember 31, |   |  |       |   |  |  |  |  | 
|                         |  | 2006                           |   |  | 2005  |   |  |  |  |  |  |  |  | 
|Risk free interest rate  |  | 4.56                           | % |  | 4.40  | % |  |  |  |  |  |  |  | 
|Expected volatility      |  | 27.50                          | % |  | 27.93 | % |  |  |  |  |  |  |  | 
|Expected life in years   |  | 5.7                            |   |  | 6.0   |   |  |  |  |  |  |  |  | 
|Dividend yield           |  | 2.13                           | % |  | 1.82  | % |  |  |  |  |  |  |  | 
|Expected forfeiture rate |  | 1.24                           | % |  | 1.50  | % |  |  |  |  |  |  |  | 



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##### Table of Contents

|4. | LOANS RECEIVABLE
|-- | ----------------

Loans receivable at
December 31, 2006 and September 30, 2006 are summarized as follows:



|                                          |  |                  |             |   |                   |   |             |  
|----------------------------------------- |  | ---------------- | ----------- | - | ----------------- | - | ----------- | -
|                                          |  | December 31,2006 |             |   | September 30,2006 |  
|Real estate mortgage:                     |  |                  |             |   |                   |   |             |  
|One to four family residential            |  | $                | 317,344,374 |   |                   | $ | 314,746,084 |  
|Multi-family residential                  |  |                  | 17,615,080  |   |                   |   | 13,628,962  |  
|Commercial real estate                    |  |                  | 175,100,804 |   |                   |   | 150,528,577 |  
|Real estate construction and development: |  |                  |             |   |                   |   |             |  
|Residential                               |  |                  | 32,352,795  |   |                   |   | 30,586,090  |  
|Multi-family                              |  |                  | 13,289,511  |   |                   |   | 6,042,116   |  
|Commercial                                |  |                  | 26,187,053  |   |                   |   | 20,566,734  |  
|Commercial and industrial                 |  |                  | 51,284,856  |   |                   |   | 48,785,481  |  
|Equity lines                              |  |                  | 205,889,723 |   |                   |   | 207,152,688 |  
|Consumer and installment                  |  |                  | 6,419,404   |   |                   |   | 6,276,425   |  
|                                          |  |                  |             |   |                   |   |             |  
|                                          |  |                  | 845,483,600 |   |                   |   | 798,313,157 |  
|Add (less):                               |  |                  |             |   |                   |   |             |  
|Deferred loan costs                       |  |                  | 4,991,860   |   |                   |   | 4,879,507   |  
|Loans-in-process                          |  |                  | (9,086,933  | ) |                   |   | (10,176,323 | )
|Allowance for loan losses                 |  |                  | (8,350,262  | ) |                   |   | (7,817,317  | )
|                                          |  |                  |             |   |                   |   |             |  
|Total                                     |  | $                | 833,038,265 |   |                   | $ | 785,199,024 |  
|                                          |  |                  |             |   |                   |   |             |  
|Weighted average rate at end of period    |  |                  | 7.49        | % |                   |   | 7.50        | %
|                                          |  |                  |             |   |                   |   |             |  



|5. | DEPOSITS
|-- | --------

Deposits at December 31, 2006 and
September 30, 2006 are summarized as follows:



|                              |  |                   |             |                             |                    |   |        |   |                             |  |      |  
|----------------------------- |  | ----------------- | ----------- | --------------------------- | ------------------ | - | ------ | - | --------------------------- |  | ---- | -
|                              |  | December 31, 2006 |             |                             | September 30, 2006 |  
|                              |  | Amount            |             | WeightedAverageInterestRate |                    |   | Amount |   | WeightedAverageInterestRate | 
|Transaction accounts:         |  |                   |             |                             |                    |   |        |   |                             |  |      |  
|Non-interest-bearing checking |  | $                 | 48,308,207  |                             |                   |   |        | $ | 38,830,048                  |  |     |  
|Interest-bearing checking     |  |                   | 67,613,279  |                             | 2.01               | % |        |   | 53,448,091                  |  | 1.66 | %
|Passbook savings accounts     |  |                   | 30,525,410  |                             | 0.37               | % |        |   | 31,895,237                  |  | 0.39 | %
|Money market                  |  |                   | 151,498,486 |                             | 4.21               | % |        |   | 134,383,062                 |  | 4.12 | %
|                              |  |                   |             |                             |                    |   |        |   |                             |  |      |  
|Total transaction accounts    |  |                   | 297,945,382 |                             | 2.63               | % |        |   | 258,556,438                 |  | 2.53 | %
|                              |  |                   |             |                             |                    |   |        |   |                             |  |      |  
|Certificates of deposit:      |  |                   |             |                             |                    |   |        |   |                             |  |      |  
|Less than $100,000            |  |                   | 207,684,344 |                             | 5.05               | % |        |   | 207,899,136                 |  | 4.91 | %
|$100,000 and greater          |  |                   | 193,790,140 |                             | 4.52               | % |        |   | 189,121,004                 |  | 4.43 | %
|                              |  |                   |             |                             |                    |   |        |   |                             |  |      |  
|Total certificates of deposit |  |                   | 401,474,484 |                             | 4.79               | % |        |   | 397,020,140                 |  | 4.68 | %
|                              |  |                   |             |                             |                    |   |        |   |                             |  |      |  
|Total                         |  | $                 | 699,419,866 |                             | 3.87               | % |        | $ | 655,576,578                 |  | 3.83 | %
|                              |  |                   |             |                             |                    |   |        |   |                             |  |      |  



|6. | RECLASSIFICATIONS
|-- | -----------------

Certain reclassifications have
been made to 2005 amounts to conform to the 2006 presentation.



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MANAGEMENTS DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD LOOKING STATEMENTS

This report contains certain
forward-looking statements within the meaning of the federal securities laws, which are made in good faith pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are
not historical facts; rather they are statements based on Pulaski Financial Corp.s current expectations regarding its business strategies, intended results and future performance. Forward-looking statements are generally preceded by terms such
as expects, believes, anticipates, intends and similar expressions.

Managements ability to predict
results or the effect of future plans or strategies is inherently uncertain. Factors which could affect actual results include interest rate trends, the general economic climate in the market area in which Pulaski Financial Corp. operates, as well
as nationwide, Pulaski Financial Corp.s ability to control costs and expenses, competitive products and pricing, loan delinquency rates and changes in federal and state legislation and regulation. These factors should be considered in
evaluating the forward-looking statements and undue reliance should not be placed on such statements. Subject to applicable law and regulation, Pulaski Financial Corp. assumes no obligation to update any forward-looking statements.

OVERVIEW

Pulaski Financial Corp. is the
holding company for Pulaski Bank, a $1.0 billion asset, growth-oriented bank, focused on becoming the premier community bank in St. Louis. The Banks 85-year history operating in the provincial and parochial St. Louis market as a deeply rooted
community institution servicing tens of thousands of residential, commercial and consumer customers has created years of customer goodwill. The current generation of management is leveraging the legacy of goodwill and customer service in an effort
to become the community bank of choice in the metropolitan St. Louis area.

The Companys business plan includes reshaping its physical footprint to
increase the Companys presence in key business centers of St. Louis. Prior to 2005, five of the six Pulaski Bank locations were located in areas of St. Louis that were primarily retail-based markets. Since August 2005, the Company has added
four full-service locations in several business districts of St. Louis, including the recently announced Richmond Heights location, which opened on January 5, 2007. By the end of fiscal 2007, the Company anticipates opening two additional
bank locations in Downtown St. Louis and Clayton, Missouri. The addition of new bank locations combined with strong marketing efforts and focused talent acquisition has resulted in rapid growth in the Companys balance sheet. Core deposits have
been a key component of this growth and their growth is a primary focus of the Companys strategic plan. During the quarter ended December 31, 2006, the Company saw a 15%, or $39.4 million, increase in core deposits to $297.9 million at
December 31, 2006 from $258.6 million at September 30, 2006. This growth in core deposits included a $23.6 million increase in checking account balances to $115.9 million and a $17.1 million increase in money market balances to $151.5
million at quarter end. Total deposits increased $43.8 million during the quarter to $699.4 million. Certificates of deposit totaled $401.5 million at December 31, 2006, including $126.9 million in brokered certificates of deposit.
Excluding changes in brokered certificates of deposit, time deposits declined $4.0 million. Because of the competition for time deposits created by growth of de novo banks in the Companys market area, the Company often has the ability to
raise time deposits on a national level at interest rates lower than in its market area. Management actively chooses between these two sources of time deposits depending on this price differential.

While the Companys primary strategic objective is to grow core deposits, the Company continues to measure its success through the growth and efficiency of its
five primary banking products, which include 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 Companys operating income and are the focus of the Companys balance sheet growth. Driving these relationships are more than 80 seasoned residential and commercial lenders in the Companys two



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market locations, St. Louis and Kansas City. Growth in the loan and deposit portfolios resulted in a 17.4% increase in net interest income over the prior
year to $6.9 million for the quarter ended December 31, 2006 from $5.9 million for the quarter ended December 31, 2005. The growth in net interest income combined with growth in non-interest income resulted in strong growth in diluted
earnings per share, which increased $0.03 to $0.24 per diluted share on net income of $2.5 million for the quarter ended December 31, 2006 compared with $0.21 diluted earnings per share on net income of $1.8 million for the quarter ended
December 31, 2005. Earnings per share for the current-year period reflect the impact of a 1.2 million increase in the number of shares outstanding from stock issued in a secondary public offering in February 2006 and 211,000 shares issued
to acquire CWE Bancorp on March 31, 2006.

The Company also achieved an important historic milestone during the quarter as total assets increased
$72.3 million to $1.035 billion at December 31, 2006 from $962.5 million at September 30, 2006. The growth in total assets was primarily due to $47.8 million of growth in loans receivable and $22.8 million in loans held for sale during the
three months ended December 31, 2006. The growth in loans receivable stemmed primarily from growth in the commercial portfolio, as loans secured by commercial real estate increased $24.6 million to $175.1 million and total real estate
construction and development loans increased $14.6 million to $71.8 million.

The net interest margin declined 13 basis points to 3.06% for the quarter
ended December 31, 2006 from 3.19% for the quarter ended December 31, 2005. On a linked-quarter basis, the net interest margin declined one basis point from 3.07% for the quarter ended September 30, 2006. The Company continues to face
challenges from the inverted yield curve as well as effectively funding the continued rapid growth of the Companys loan portfolio.

Overall asset
quality was relatively unchanged during the quarter as the ratio of nonperforming assets to total assets decreased from 1.02% at September 30, 2006 to 1.01% at December 31, 2006. Non-performing assets at December 31, 2006 totaled
$10.5 million, an increase of $599,000 from September 30, 2006 due to an increase in non-performing residential loans partially offset by a decline in real estate acquired in settlement of loans. The balance of nonperforming loans increased
$1.2 million to $8.3 million at December 31, 2006 from $7.0 million at September 30, 2006. The increase in nonperforming loans is consistent with a general decline in asset quality of the national residential mortgage and retail consumer
markets. Real estate acquired in settlement of loans declined $622,000 to $2.1 million and consisted entirely of residential real estate at quarter end.

The provision for loan losses for the quarter ended December 31, 2006 was $682,000 compared with $407,000 for the same period a year ago. The increase was due to both strong growth in the loan portfolio during the quarter, primarily
commercial and construction loans, which carry a higher risk of default than residential real estate loans, combined with the increase in non-performing loans. Net charge-offs for the current-year quarter totaled $149,000 compared with $313,000 for
the same period a year ago.

Non-interest income rose 31.1% to $2.9 million for the three months ended December 31, 2006 compared with $2.2 million
for the same period in the prior year. Mortgage revenue increased 14.2% to $909,000 during the quarter ended December 31, 2006 compared with $795,000 during the quarter ended December 31, 2005. Loan sales totaled $285 million during the
quarter ended December 31, 2006 compared to $268 million in the prior-year quarter. The mortgage activity continued to drive title and appraisal revenues, which collectively increased $223,000 over the December 2005 quarter. The appraisal
division is in its second quarter of operations and generated $208,000 in revenue for the quarter ended December 31, 2006. Also contributing to the rise in non-interest income during the quarter was an increase in retail banking revenues to
$782,000 from $748,000, an increase in investment brokerage revenues of $125,000 to $242,000 and a $144,000 gain on sale of equity securities available for sale.

Non-interest expense increased 9.6% to $5.3 million for the quarter ended December 31, 2006 compared with $4.9 million for the same period a year ago. The increase was primarily due to higher compensation expense, which increased
$626,000 to $2.7 million for the quarter ended December 31, 2006, and to a $220,000 expense related to the write-off of capitalized expenses related to the termination of a contract to convert the Companys core data processing system.
Non-interest expense in the current-year quarter was reduced by a $172,000 gain related to changes in the market values of derivative financial instruments compared with a $407,000 loss in the prior-year quarter.



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RECENT EVENTS

On December 14, 2006, the Company announced the opening of two new mortgage loan production offices that will serve the Godfrey and OFallon Illinois portion of the St. Louis metropolitan area. The opening
of these new offices followed the hiring of an experienced mortgage executive from a competing mortgage company along with a staff of 11 mortgage loan officers.

On January 5, 2007, the Company opened its tenth full service banking center in the St. Louis metropolitan area, located in
Richmond Heights, Missouri.

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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|                                                                                 |  |                        |         |   |                      |   |            |  |      |                |  |   |                      |   |            |   |        |  |      |  
|-------------------------------------------------------------------------------- |  | ---------------------- | ------- | - | -------------------- | - | ---------- |  | ---- | -------------- |  | - | -------------------- | - | ---------- | - | ------ |  | ---- | -
|                                                                                 |  | Three Months Ended     |        
|                                                                                 |  | December 31, 2006      |         |   | December 31, 2005    |  
|                                                                                 |  | AverageBalance         |         |   | InterestandDividends |   | Yield/Cost |  |      | AverageBalance |  |   | InterestandDividends |   | Yield/Cost |  
|                                                                                 |  | (Dollars in thousands) |        
|Interest-earning assets:                                                         |  |                        |         |   |                      |   |            |  |      |                |  |   |                      |   |            |   |        |  |      |  
|Loans receivable:(1)                                                             |  |                        |         |   |                      |   |            |  |      |                |  |   |                      |   |            |   |        |  |      |  
|Real estate and commercial                                                       |  | $                      | 604,121 |   |                      | $ | 10,864     |  | 7.19 | %              |  | $ | 461,156              |   |            | $ | 7,309  |  | 6.34 | %
|Consumer                                                                         |  |                        | 3,901   |   |                      |   | 64         |  | 6.58 | %              |  |   | 3,357                |   |            |   | 52     |  | 6.22 | %
|Home equity                                                                      |  |                        | 206,395 |   |                      |   | 4,259      |  | 8.25 | %              |  |   | 196,940              |   |            |   | 3,518  |  | 7.15 | %
|                                                                                 |  |                        |         |   |                      |   |            |  |      |                |  |   |                      |   |            |   |        |  |      |  
|Total loans receivable                                                           |  |                        | 814,417 |   |                      |   | 15,187     |  | 7.46 | %              |  |   | 661,453              |   |            |   | 10,879 |  | 6.58 | %
|Loans available for sale                                                         |  |                        | 51,249  |   |                      |   | 763        |  | 5.96 | %              |  |   | 45,202               |   |            |   | 646    |  | 5.72 | %
|Debt securities                                                                  |  |                        | 15,288  |   |                      |   | 187        |  | 4.90 | %              |  |   | 8,470                |   |            |   | 82     |  | 3.88 | %
|FHLB stock                                                                       |  |                        | 9,177   |   |                      |   | 98         |  | 4.29 | %              |  |   | 9,120                |   |            |   | 75     |  | 3.29 | %
|Mortgage-backed securities                                                       |  |                        | 3,553   |   |                      |   | 42         |  | 4.76 | %              |  |   | 4,697                |   |            |   | 56     |  | 4.80 | %
|Other                                                                            |  |                        | 4,903   |   |                      |   | 64         |  | 5.12 | %              |  |   | 5,142                |   |            |   | 52     |  | 4.04 | %
|                                                                                 |  |                        |         |   |                      |   |            |  |      |                |  |   |                      |   |            |   |        |  |      |  
|Total interest-earning assets                                                    |  |                        | 898,587 |   |                      |   | 16,341     |  | 7.27 | %              |  |   | 734,084              |   |            |   | 11,790 |  | 6.42 | %
|                                                                                 |  |                        |         |   |                      |   |            |  |      |                |  |   |                      |   |            |   |        |  |      |  
|Non-interest-earning assets                                                      |  |                        | 74,688  |   |                      |   |            |  |      |                |  |   | 51,186               |   |            |   |        |  |      |  
|                                                                                 |  |                        |         |   |                      |   |            |  |      |                |  |   |                      |   |            |   |        |  |      |  
|Total assets                                                                     |  | $                      | 973,275 |   |                      |   |            |  |      |                |  | $ | 785,270              |   |            |   |        |  |      |  
|                                                                                 |  |                        |         |   |                      |   |            |  |      |                |  |   |                      |   |            |   |        |  |      |  
|Interest-bearing liabilities:                                                    |  |                        |         |   |                      |   |            |  |      |                |  |   |                      |   |            |   |        |  |      |  
|Demand deposit                                                                   |  | $                      | 54,517  |   |                      | $ | 232        |  | 1.70 | %              |  | $ | 30,275               |   |            | $ | 25     |  | 0.33 | %
|Savings                                                                          |  |                        | 31,266  |   |                      |   | 29         |  | 0.37 | %              |  |   | 31,771               |   |            |   | 28     |  | 0.35 | %
|Money market                                                                     |  |                        | 148,837 |   |                      |   | 1,572      |  | 4.23 | %              |  |   | 92,908               |   |            |   | 616    |  | 2.65 | %
|Time deposits                                                                    |  |                        | 398,504 |   |                      |   | 4,903      |  | 4.92 | %              |  |   | 332,104              |   |            |   | 3,005  |  | 3.62 | %
|                                                                                 |  |                        |         |   |                      |   |            |  |      |                |  |   |                      |   |            |   |        |  |      |  
|Total interest-bearing deposits                                                  |  |                        | 633,124 |   |                      |   | 6,736      |  | 4.26 | %              |  |   | 487,058              |   |            |   | 3,674  |  | 3.02 | %
|                                                                                 |  |                        |         |   |                      |   |            |  |      |                |  |   |                      |   |            |   |        |  |      |  
|FHLB advances                                                                    |  |                        | 176,220 |   |                      |   | 2,291      |  | 5.20 | %              |  |   | 181,195              |   |            |   | 1,893  |  | 4.18 | %
|Note payable                                                                     |  |                        | 3,317   |   |                      |   | 59         |  | 7.08 | %              |  |   | 3,575                |   |            |   | 55     |  | 6.10 | %
|Subordinated debentures                                                          |  |                        | 19,589  |   |                      |   | 383        |  | 7.81 | %              |  |   | 19,589               |   |            |   | 312    |  | 6.38 | %
|                                                                                 |  |                        |         |   |                      |   |            |  |      |                |  |   |                      |   |            |   |        |  |      |  
|Total interest-bearing liabilities                                               |  |                        | 832,250 |   |                      |   | 9,469      |  | 4.55 | %              |  |   | 691,417              |   |            |   | 5,934  |  | 3.43 | %
|                                                                                 |  |                        |         |   |                      |   |            |  |      |                |  |   |                      |   |            |   |        |  |      |  
|Non-interest bearing liabilities:                                                |  |                        |         |   |                      |   |            |  |      |                |  |   |                      |   |            |   |        |  |      |  
|Non-interest bearing deposits                                                    |  |                        | 43,982  |   |                      |   |            |  |      |                |  |   | 27,727               |   |            |   |        |  |      |  
|Other non-interest bearing liabilities                                           |  |                        | 18,030  |   |                      |   |            |  |      |                |  |   | 16,754               |   |            |   |        |  |      |  
|                                                                                 |  |                        |         |   |                      |   |            |  |      |                |  |   |                      |   |            |   |        |  |      |  
|Total non-interest-bearing liabilities                                           |  |                        | 62,012  |   |                      |   |            |  |      |                |  |   | 44,481               |   |            |   |        |  |      |  
|                                                                                 |  |                        |         |   |                      |   |            |  |      |                |  |   |                      |   |            |   |        |  |      |  
|Stockholders equity                                                             |  |                        | 79,013  |   |                      |   |            |  |      |                |  |   | 49,372               |   |            |   |        |  |      |  
|                                                                                 |  |                        |         |   |                      |   |            |  |      |                |  |   |                      |   |            |   |        |  |      |  
|Total liabilities and stockholders equity                                       |  | $                      | 973,275 |   |                      |   |            |  |      |                |  | $ | 785,270              |   |            |   |        |  |      |  
|                                                                                 |  |                        |         |   |                      |   |            |  |      |                |  |   |                      |   |            |   |        |  |      |  
|Net interest income                                                              |  |                        |         |   |                      | $ | 6,872      |  |      |                |  |   |                      |   |            | $ | 5,856  |  |      |  
|                                                                                 |  |                        |         |   |                      |   |            |  |      |                |  |   |                      |   |            |   |        |  |      |  
|Interest rate spread(2)                                                          |  |                        |         |   |                      |   |            |  | 2.72 | %              |  |   |                      |   |            |   |        |  | 2.99 | %
|Net interest margin(3)                                                           |  |                        |         |   |                      |   |            |  | 3.06 | %              |  |   |                      |   |            |   |        |  | 3.19 | %
|Ratio of average interest-earning assets to average interest-bearing liabilities |  |                        | 107.97  | % |                      |   |            |  |      |                |  |   | 106.17               | % |            |   |        |  |      |  
|                                                                                 |  |                        |         |   |                      |   |            |  |      |                |  |   |                      |   |            |   |        |  |      |  



|(1) | Includes non-accrual loans with
an average balance of $1.2 million and $770,000 for the three months ended December 31, 2006 and 2005, respectively.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------



|(2) | Yield on interest-earning assets
less cost of interest-bearing liabilities.
|--- | ---------------------------------------------------------------------------



|(3) | Net interest income divided by average interest-earning assets.
|--- | ---------------------------------------------------------------



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RATE VOLUME ANALYSIS

The following table sets forth the effects of changing rates and volumes on net interest income for the periods indicated. The total change for each category of
interest-earning asset and interest-bearing liability is segmented into the change attributable to variations in volume (change in volume multiplied by prior period rate) and the change attributable to variations in interest rates (changes in rates
multiplied by prior period volume). Changes in interest income and expense attributed to both changes in volume and changes in rate are allocated proportionately to rate and volume.



|                                                      |  |                                             |       |   |      |   |       |     |  |   |       |  
|----------------------------------------------------- |  | ------------------------------------------- | ----- | - | ---- | - | ----- | --- |  | - | ----- | -
|                                                      |  | Three Months EndedDecember 31, 2006 vs 2005 |      
|                                                      |  | Volume                                      |       |   | Rate |   |       | Net | 
|                                                      |  | (In thousands)                              |      
|Interest-earning assets:                              |  |                                             |       |   |      |   |       |     |  |   |       |  
|Loans receivable:                                     |  |                                             |       |   |      |   |       |     |  |   |       |  
|Real estate and commercial                            |  | $                                           | 2,481 |   |      | $ | 1,074 |     |  | $ | 3,555 |  
|Consumer                                              |  |                                             | 9     |   |      |   | 3     |     |  |   | 12    |  
|Home Equity                                           |  |                                             | 176   |   |      |   | 565   |     |  |   | 741   |  
|                                                      |  |                                             |       |   |      |   |       |     |  |   |       |  
|Total loans receivable                                |  |                                             | 2,666 |   |      |   | 1,642 |     |  |   | 4,308 |  
|Loans available for sale                              |  |                                             | 89    |   |      |   | 28    |     |  |   | 117   |  
|Debt securities                                       |  |                                             | 79    |   |      |   | 26    |     |  |   | 105   |  
|FHLB stock                                            |  |                                             | 1     |   |      |   | 22    |     |  |   | 23    |  
|Mortgage-backed securities                            |  |                                             | (14   | ) |      |   |      |     |  |   | (14   | )
|Other                                                 |  |                                             | (15   | ) |      |   | 27    |     |  |   | 12    |  
|                                                      |  |                                             |       |   |      |   |       |     |  |   |       |  
|Net change in income on interest-earning assets       |  |                                             | 2,806 |   |      |   | 1,745 |     |  |   | 4,551 |  
|                                                      |  |                                             |       |   |      |   |       |     |  |   |       |  
|Interest-bearing liabilities:                         |  |                                             |       |   |      |   |       |     |  |   |       |  
|Demand deposits                                       |  |                                             | 33    |   |      |   | 174   |     |  |   | 207   |  
|Savings                                               |  |                                             | (3    | ) |      |   | 4     |     |  |   | 1     |  
|Money market                                          |  |                                             | 480   |   |      |   | 476   |     |  |   | 956   |  
|Time deposits                                         |  |                                             | 679   |   |      |   | 1,219 |     |  |   | 1,898 |  
|                                                      |  |                                             |       |   |      |   |       |     |  |   |       |  
|Total interest-bearing deposits                       |  |                                             | 1,189 |   |      |   | 1,873 |     |  |   | 3,062 |  
|FHLB advances                                         |  |                                             | (334  | ) |      |   | 732   |     |  |   | 398   |  
|Note payable                                          |  |                                             | (21   | ) |      |   | 25    |     |  |   | 4     |  
|Subordinated debentures                               |  |                                             |      |   |      |   | 71    |     |  |   | 71    |  
|                                                      |  |                                             |       |   |      |   |       |     |  |   |       |  
|Net change in expense on interest-bearing liabilities |  |                                             | 834   |   |      |   | 2,701 |     |  |   | 3,535 |  
|                                                      |  |                                             |       |   |      |   |       |     |  |   |       |  
|Change in net interest income                         |  | $                                           | 1,972 |   |      | $ | (956  | )   |  | $ | 1,016 |  
|                                                      |  |                                             |       |   |      |   |       |     |  |   |       |  



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ADDITIONAL DISCUSSION OF FINANCIAL
CONDITION

Cash and cash equivalents decreased $961,000 from $22.1 million at September 30, 2006 to $21.2 million
at December 31, 2006. The Company restructured one of its correspondent relationships allowing it to carry lower balances in overnight accounts. The Company maintains cash reserves at its bank branch locations and at its correspondent banks
including the Federal Reserve, to remain in compliance with federal banking regulations. Typically, excess cash inflows are used to retire daily borrowings from the Federal Home Loan Bank.

The balance of Federal Home Loan Bank advancesincreased $30.7 million during the quarter ended December 31, 2006 and totaled $203.5 million at
December 31, 2006. The increase in advances was used to help fund the combined $70.6 million of growth in loans receivable and loans held for sale.

Balances in due to other banks totaled $21.6 million at December 31, 2006 compared with $22.1 million at September 30, 2006. Due to other banks represents checks drawn on a correspondent Banks checking account.
On a daily basis, the Company settles with the correspondent bank. The balances primarily represent the checks issued to fund loans on the final business day of the month.

Total stockholders equity at December 31, 2006 was $77.6 million, an increase of $1.7 million from $75.8 million at September 30, 2006. The increase during the quarter was primarily
attributable to net income totaling $2.5 million, partially offset by dividend payments of $846,000 and a $266,000 increase in treasury stock resulting from the repurchase of 17,059 shares of the Companys common stock.

NON-PERFORMING ASSETS AND DELINQUENCIES

Total non-performing assets increased from $9.9 million at September 30, 2006 to $10.5 million at December 31, 2006. The balance of non-accrual loans decreased
from $940,000 to $786,000 as the Company foreclosed on several residential loans during the quarter. Accruing loans greater than 90 days past due increased from $5.6 million at September 30, 2006 to $7.2 million at December 31, 2006,
primarily as the result of a $1.1 million increase in loans secured by residential real estate that were greater than 90 days past due and still accruing interest. Loans are placed on non-accrual status when, in the opinion of management, there is
reasonable doubt as to the collectibility of interest or principal. The allowance for loan losses was $8.4 million at December 31, 2006, or 0.90% of total loans and 100.98% of non-performing loans, compared with $7.8 million at
September 30, 2006, or 0.92% of total loans and 110.91% of non-performing loans.

The provision for loan losses for the quarter ended
December 31, 2006 was $682,000 compared with $407,000 for the same period a year ago. The increase was due to both strong growth in the loan portfolio during the quarter, primarily commercial and construction loans, which carry a higher risk of
default than residential real estate loans, combined with the increase in non-performing loans. Net charge-offs for the current-year quarter totaled $149,000 compared with $313,000 for the same period a year ago.

The provision for loan losses is determined by management as the amount to bring the allowance for loan losses to a level that is considered adequate to absorb probable
losses in the loan portfolio. The allowance for loan losses is a critical accounting estimate reported within the consolidated financial statements. The allowance is based upon quarterly management estimates of probable losses inherent in the loan
portfolio. Managements estimates are determined by quantifying certain risks in the portfolio that are affected primarily by changes in the nature and volume of the portfolio combined with an analysis of past-due and classified loans, but can
also be affected by the following factors: changes in lending policies and procedures, including underwriting standards and collections, charge-off and recovery practices, changes in national and local economic conditions and developments, and
changes in the experience, ability, and depth of lending management staff.

Management believes that the amount maintained in the allowance will be
adequate to absorb probable losses inherent in the portfolio. Although management believes that it uses the best information available to make such determinations, future adjustments to the allowance for loan losses may be necessary and results of
operations could be significantly and adversely affected if circumstances differ substantially from the assumptions used in making the determinations. While management believes it has established the allowance for loan losses in accordance with U.S.
generally accepted accounting principles,



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there can be no assurance that the Banks regulators, in reviewing the Banks loan portfolio, will not request the Bank to significantly increase
its allowance for loan losses. In addition, because future events affecting borrowers and collateral cannot be predicted with certainty, there can be no assurance that the existing allowance for loan losses is adequate or that a substantial increase
will not be necessary should the quality of any loans deteriorate as a result of the factors discussed above. Any material increase in the allowance for loan losses will adversely affect the Companys financial condition and results of
operations.

Because management adheres to specific loan underwriting guidelines focusing primarily on residential and commercial real estate and home
equity loans secured by one-to four-family and commercial properties, the Companys five-year average annual historical loan loss experience has been low, totaling only $375,000, or 0.09% of average loans. While the losses have increased
slightly over the last five years, the balance of the allowance has increased dramatically, almost doubling in the last two fiscal years. The growth in allowance for loan losses was due to growth in the loan portfolio as well as loan product
diversification, which increased the risk profile of the portfolio. The Company was historically a lender of only 1-4 family conforming residential loans. Today, the Company has expanded its loan portfolio to include higher-risk home equity,
commercial and construction loans. Because the Companys loan portfolio is typically collateralized by real estate, losses occur more frequently when property values are declining and borrowers are losing equity in the underlying collateral.
Presently, the property values in the Companys lending areas have been stable and appreciating.

The following table is a summary of the activity in
the allowance for loan losses for the periods indicated:



|                                               |  |                                |        |   |      |   |        |  
|---------------------------------------------- |  | ------------------------------ | ------ | - | ---- | - | ------ | -
|                                               |  | Three Months EndedDecember 31, |       
|                                               |  | 2006                           |        |   | 2005 |  
|                                               |  | (Dollars In Thousands)         |       
|Allowance for loan losses, beginning of period |  | $                              | 7,817  |   |      | $ | 6,806  |  
|Provision charged to expense                   |  |                                | 682    |   |      |   | 407    |  
|Loans charged-off                              |  |                                | (159   | ) |      |   | (313   | )
|Recoveries of loans previously charged-off     |  |                                | 10     |   |      |   |       |  
|                                               |  |                                |        |   |      |   |        |  
|Allowance for loan losses, end of period       |  | $                              | 8,350  |   |      | $ | 6,900  |  
|                                               |  |                                |        |   |      |   |        |  
|Ratio of allowance to total loans outstanding  |  |                                | 0.90   | % |      |   | 0.96   | %
|Ratio of allowance to nonperforming loans      |  |                                | 100.98 | % |      |   | 112.93 | %

The following assessments are performed quarterly in accordance with the Companys allowance for loan losses
methodology:

Homogeneous residential mortgage loans are given one of five standard risk ratings at the time of origination. The risk
ratings are assigned through the use of a credit scoring model, which assesses credit risk determinants from the borrowers credit history, the loan-to-value ratio, the affordability ratios or other personal history. Five-year historical loss
rates and industry data for each credit rating are used to determine the appropriate allocation percentage for each loan grade. Commercial real estate loans are individually reviewed and assigned a credit risk rating on an annual basis by the
internal loan committee. Consumer and home equity loans are assigned standard risk weightings that determine the allocation percentage.

When commercial real estate loans are over 30 days delinquent or residential, consumer and home equity loans are over 90 days past due, they are evaluated individually for impairment. Additionally, loans that demonstrate credit weaknesses
that may impact the borrowers ability to repay or the value of the collateral are also reviewed individually for impairment. The Company considers a loan to be impaired when management believes it will be unable to collect all principal and
interest due according to the contractual terms of the loan. If a loan is impaired, the Company records a loss valuation equal to the excess of the loans carrying value over the present value of estimated future cash flows or the fair value of
collateral if the loan is collateral dependent.

The Companys methodology includes factors that allow the Company to adjust its
estimates of losses based on the most recent information available. Historic loss rates used to determine the allowance are adjusted to reflect the impact of



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current conditions, including actual collection and charge-off experience. Any material increase in non-performing loans will adversely affect our financial
condition and results of operation.

DISCUSSION OF OTHER NON-INTEREST
INCOME AND EXPENSE FOR THE THREE MONTHS ENDED DECEMBER 31, 2006

Title policy revenuestotaled $213,000 and $198,000 for the three months ended December 31, 2006 and 2005, respectively and were partially offset by
expenses totaling $115,000 and $82,000, respectively. The title division captures sales opportunities from the Companys residential and commercial lending activities. Its primary activities include researching and issuing title policies on
commercial and residential loans.

Appraisal division revenuestotaled $208,000 for the quarter ended December 31, 2006, which were
partially offset by expenses totaling $136,000 for the quarter. The Company hired three residential appraisers in July 2006 to help increase fee income by cross-selling appraisal services to the Companys mortgage loan customers.

Investment brokerage revenuestotaled $242,000 and $117,000 for the three months ended December 31, 2006 and 2005, respectively. After expenses, the
investment division had a slight pretax profit in the current year compared with a net pretax loss of $118,000 for the quarter ended December 31, 2005. The investment divisions operations consist principally of brokering bonds from
wholesale brokerage houses to bank, municipal and individual investors. Revenues are generated on trading spreads.

Gain on sale of
securities totaled $144,000 for the period ending December 31, 2006 and resulted from the sale of $773,000 of equity securities classified as available for sale.

Bank owned life insurance income increased $95,000 to $258,000 for the three-month period ending December 31, 2006 compared with the three-month period ending December 31, 2005 due to income
earned on additional policies purchased.

Salaries and employee benefits expense increased $626,000 to $2.7 million for the quarter ended
December 31, 2006 compared with $2.0 million for the quarter ended December 31, 2005. The growth in compensation expense is due to additional staff related to the acquisition of CWE Financial, Inc. on March 31, 2006, compensation
expense related to increased activity in the commercial loan division and additional staff related to the appraisal division which began operations in July 2006.

Occupancy, equipment and data processing expense increased $142,000 to $1.3 million during the three-month period ended December 31, 2006 compared with the three-month period ended December 31, 2005. The Company had
additional expense associated with its new Central West End locations as well as additional data processing costs.

Professional services
decreased $77,000 to $262,000 for the quarter ended December 31, 2006 compared with $339,000 for the quarter ended December 31, 2005. Consulting expense declined following the Companys first year of Sarbanes Oxley compliance.

Loss (gain) on derivative instrumentswas a gain of $172,000 for the quarter ended December 31, 2006 compared with a loss of $407,000
for the quarter ended December 31, 2005. The Company entered into interest rate swap agreements during November 2004 which were designed to convert the fixed rates paid on certain brokered certificates of deposits into variable, LIBOR-based
rates. During the first quarter of fiscal year 2006, changes in the estimated fair values of these derivatives were recognized as charges or credits to earnings, as appropriate, during the periods in which the changes occurred. Effective
January 1, 2006, the Company began using long-haul, fair-value, hedge accounting.

Advertising Expenseincreased $58,000 to $247,000 for
the quarter ended December 31, 2006 compared with $189,000 for the quarter ended December 31, 2005. The growth in advertising expense is consistent with the Companys objective to grow core deposits through an increased commercial
banking presence and a consistent marketing message.

Other non-interest expense increased $78,000 to $846,000 during the quarter ended
December 31, 2006 compared with $768,000 for the quarter ended December 31, 2005. The majority of this increase related to an increase in the overhead costs associated with increased loan originations.



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INCOME TAXES

The provision for income taxes increased $331,000 to $1.3 million for the three-month period ended December 31, 2006 compared with $983,000 for the three-month period ended December 31, 2005. The effective
tax rates for the three months ended December 31, 2006 and 2005 were 34.6% and 34.8%, respectively.

LIQUIDITY AND
CAPITAL RESOURCES

At December 31, 2006, the Bank had outstanding commitments to originate loans totaling $166.8
million and commitments to sell loans totaling $136.5 million. At December 31, 2006, certificates of deposit totaling $273.3 million are scheduled to mature in one year or less. Based on past experience, management believes the majority of
maturing certificates of deposit will remain with the Bank.

If the Bank or the Company require funds beyond their ability to generate them internally, the
Bank has the ability to borrow funds from the FHLB under a blanket agreement, which assigns all investments in FHLB stock, qualifying first residential mortgage loans, residential loans held for sale and home equity loans with a 90% or greater LTV
as collateral to secure the amounts borrowed. Total borrowings from the Federal Home Loan Bank are subject to limitations based upon a risk assessment of the Bank, which currently allows for a line of credit equal to 35% of the Banks assets.
At December 31, 2006, the Bank had approximately $158.1 million in additional borrowing authority under the above-mentioned arrangement in addition to the $203.5 million in advances outstanding at that date. The Company also maintains a $20.0
million line of credit with a correspondent bank. At December 31, 2006, $3.2 million has been borrowed under this arrangement.

SOURCES AND USES OF CASH

The Company is a large
originator of residential mortgage loans with more than 75% of such loans sold in the secondary residential mortgage market. Consequently, the primary source and use of cash in operations is the origination and subsequent sale of loans
held for sale. During the quarter ended December 31, 2006, the origination of loans held for sale used $307.4 million of cash and the sales of such loans provided cash totaling $285.0 million.

The primary use of cash from investing activities is the investment in loans receivable originated for the portfolio. During the quarter ended
December 31, 2006, the Company had a net increase in loans receivable of $50.4 million compared with an increase of $35.4 million for the quarter ended December 31, 2005. See the Overview for a discussion of the growth in
loans receivable.

The Companys primary sources of funds from financing activities during the quarter ended December 31, 2006 were
a $43.8 million increase in deposits and a $30.7 million increase in FHLB advances.

The following table presents the maturity structure of time
deposits and other maturing liabilities at December 31, 2006:



|                                      |  |                        |         |                |   |             |  |                   |       |                        |   |        |  |   |       
|------------------------------------- |  | ---------------------- | ------- | -------------- | - | ----------- |  | ----------------- | ----- | ---------------------- | - | ------ |  | - | ------
|                                      |  | December 31, 2006     
|                                      |  | Certificatesof deposit |         | FHLBBorrowings |   | NotePayable |  | Due to OtherBanks |       | SubordinatedDebentures
|                                      |  | (In thousands)        
|Three months or less                  |  | $                      | 103,335 |                | $ | 143,500     |  | $                 |      |                        | $ | 21,611 |  | $ |      
|Over three months through six months  |  |                        | 86,085  |                |   | 6,000       |  |                   | 3,235 |                        |   |       |  |   |      
|Over six months through twelve months |  |                        | 83,897  |                |   | 15,000      |  |                   |      |                        |   |       |  |   |      
|Over twelve months                    |  |                        | 128,157 |                |   | 39,000      |  |                   |      |                        |   |       |  |   | 19,589
|                                      |  |                        |         |                |   |             |  |                   |       |                        |   |        |  |   |       
|Total                                 |  | $                      | 401,474 |                | $ | 203,500     |  | $                 | 3,235 |                        | $ | 21,611 |  | $ | 19,589
|                                      |  |                        |         |                |   |             |  |                   |       |                        |   |        |  |   |       



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##### Table of Contents

CONTRACTUAL OBLIGATIONS

In addition to its owned banking facilities, the Company has entered into long-term operating leases to support ongoing activities. The required payments under such
commitments at December 31, 2006 are as follows:



|                                  |  |   |           |  |  |  |  |  |  |  | 
|--------------------------------- |  | - | --------- |  |  |  |  |  |  |  | 
|Less than one year                |  | $ | 449,986   |  |  |  |  |  |  |  | 
|Over 1 year but less than 5 years |  |   | 677,822   |  |  |  |  |  |  |  | 
|Over 5 years                      |  |   |          |  |  |  |  |  |  |  | 
|                                  |  |   |           |  |  |  |  |  |  |  | 
|Total                             |  | $ | 1,127,808 |  |  |  |  |  |  |  | 
|                                  |  |   |           |  |  |  |  |  |  |  | 

REGULATORY CAPITAL

The Bank is required to maintain specific amounts of capital pursuant to Office of Thrift Supervision (OTS) regulations on minimum capital standards. The
OTS minimum capital standards generally require the maintenance of regulatory capital sufficient to meet each of three tests, hereinafter described as the tangible capital requirement, the Tier I (core) capital requirement and the risk-based
capital requirement. The tangible capital requirement provides for minimum tangible capital (defined as stockholders equity less all intangible assets) equal to 1.5% of adjusted total assets. The Tier I capital requirement provides for minimum
core capital (tangible capital plus certain forms of supervisory goodwill and other qualifying intangible assets) equal to 4.0% of adjusted total assets. The risk-based capital requirement provides for the maintenance of core capital plus a portion
of unallocated loss allowances equal to 8.0% of risk-weighted assets. In computing risk-weighted assets, the Bank multiplies the value of each asset on its balance sheet by a defined risk-weighting factor (e.g., one-to four-family conventional
residential loans carry a risk-weighting factor of 50%).

The following table illustrates the Banks regulatory capital levels compared with its
regulatory capital requirements at December 31, 2006 and September 30, 2006.



|                                                     |  |                        |        |       |                             |   |        |                                                                               |        |  |      |        |  |       |        |  |       |  
|---------------------------------------------------- |  | ---------------------- | ------ | ----- | --------------------------- | - | ------ | ----------------------------------------------------------------------------- | ------ |  | ---- | ------ |  | ----- | ------ |  | ----- | -
|                                                     |  | Actual                 |        |       | For CapitalAdequacyPurposes |   |        | To be Categorized asWell CapitalizedUnder PromptCorrective
ActionProvisions |       
|                                                     |  | Amount                 |        | Ratio |                             |   | Amount |                                                                               | Ratio  |  |      | Amount |  | Ratio |       
|                                                     |  | (Dollars in thousands) |       
|As of December 31, 2006                              |  |                        |        |       |                             |   |        |                                                                               |        |  |      |        |  |       |        |  |       |  
|Tangible capital (to total assets)                   |  | $                      | 91,617 |       | 8.91                        | % |        | $                                                                             | 15,431 |  | 1.50 | %      |  |       | N/A    |  | N/A   |  
|Total risk-based capital (to risk- weighted assets)  |  |                        | 99,635 |       | 11.58                       | % |        |                                                                               | 68,848 |  | 8.00 | %      |  | $     | 86,060 |  | 10.00 | %
|Tier I risk-based capital (to risk- weighted assets) |  |                        | 91,617 |       | 10.65                       | % |        |                                                                               | 43,030 |  | 5.00 | %      |  |       | 51,636 |  | 6.00  | %
|Tier I leverage capital (to average assets)          |  |                        | 91,617 |       | 8.91                        | % |        |                                                                               | 41,149 |  | 4.00 | %      |  |       | 51,437 |  | 5.00  | %
|As of September 30, 2006                             |  |                        |        |       |                             |   |        |                                                                               |        |  |      |        |  |       |        |  |       |  
|Tangible capital (to total assets)                   |  | $                      | 88,954 |       | 9.30                        | % |        | $                                                                             | 14,348 |  | 1.50 | %      |  |       | N/A    |  | N/A   |  
|Total risk-based capital (to risk- weighted assets)  |  |                        | 96,598 |       | 11.99                       | % |        |                                                                               | 64,463 |  | 8.00 | %      |  | $     | 80,579 |  | 10.00 | %
|Tier I risk-based capital (to risk- weighted assets) |  |                        | 88,954 |       | 11.04                       | % |        |                                                                               | 40,289 |  | 5.00 | %      |  |       | 48,347 |  | 6.00  | %
|Tier I leverage capital (to average assets)          |  |                        | 88,954 |       | 9.30                        | % |        |                                                                               | 38,261 |  | 4.00 | %      |  |       | 47,826 |  | 5.00  | %



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EFFECTS OF INFLATION

Changes in interest rates may have a significant impact on a banks performance because virtually all assets and liabilities of banks are monetary in nature.
Interest rates do not necessarily move in the same direction or in the same magnitude as the prices of goods and services. Inflation does have an impact on the growth of total assets in the banking industry, often resulting in a need to increase
equity capital at higher than normal rates to maintain an appropriate equity to asset ratio. The Companys operations are not currently impacted by inflation.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There has been no material changes in the Companys quantitative or qualitative aspects of market risk during the quarter ended December 31, 2006 from that
disclosed in the Companys Annual Report on Form 10-K for the year ended September 30, 2006.

The Company originates and purchases derivative
financial instruments, including interest rate lock commitments, forward contracts to sell mortgage-backed securities and interest rate swaps. Derivative financial instruments originated by the Company consist of interest rate lock commitments to
originate residential loans. Commitments to originate loans consist primarily of residential real estate loans. At December 31, 2006, the Company had issued $166.8 million of unexpired interest rate lock commitments to loan customers compared
with $111.7 million of unexpired commitments at September 30, 2006.

The Company typically economically hedges these derivative commitments through
one of two means  either by obtaining a corresponding best-efforts lock commitment with an investor to sell the loan at an agreed upon price, or by forward selling mortgage-backed securities. The forward sale of mortgage-backed securities is a
means of matching a corresponding derivative asset that has similar characteristics as the bank-issued commitment but changes directly opposite in fair value from market movements. Loans hedged through forward sales of mortgaged-backed securities
are sold individually or in pools on a mandatory delivery basis to investors, whereas the best efforts sales are locked on a loan-by-loan basis shortly after issuing the rate lock commitments to customers. The Company had outstanding forward
commitments to sell mortgage-backed securities totaling $26.5 million and $15.0 million in notional value at December 31, 2006 and September 30, 2006, respectively. These hedges were matched against $29.2 million and $19.6 million of
interest rate lock commitments at December 31, 2006 and September 30, 2006, respectively that were to be sold through the mandatory delivery of loan pool sales.

The carrying value of the interest rate lock commitment liabilities included in the consolidated balance sheets was $129,000 and $30,000 at December 31, 2006 and September 30, 2006, respectively. The
carrying value of the forward sales commitment assets included in the consolidated balance sheets was $143,000 and $81,000 at December 31, 2006 and September 30, 2006, respectively.

The Company entered into interest rate swap agreements during November 2004 which were designed to convert the fixed rates paid on certain brokered certificates of
deposit into variable, LIBOR-based rates. The effect of the swap agreements result in the counterparty paying the fixed rate to the Company while the Company pays the variable LIBOR-based rate to the counterparty. During the quarter ended
December 31, 2005, changes in the estimated fair values of these derivatives were recognized as charges or credits to earnings, as appropriate, during the periods in which the changes occurred. Effective January 1, 2006, the Company
designated $80.0 million of interest rate swaps as fair value hedges of $80.0 million of the fixed-rate, brokered certificates of deposit under Statement of Financial Accounting Standards No. 133, Accounting for Derivative Financial
Instruments and Hedging Activities (SFAS No. 133) using long-haul, fair-value, hedge accounting. At December 31, 2006, these fair value hedges were considered to be highly effective. Any hedge ineffectiveness was deemed
not material and the impact was recognized as a charge or credit to earnings, as appropriate, during the period in which the change occurred. The notional amounts of the liabilities being hedged were $80.0 million at December 31, 2006 and
September 30, 2006, respectively. At December 31, 2006, there were no swaps in a net settlement receivable position and swaps in a net settlement payable position totaled $1.8 million. At September 30, 2006, there were no swaps in a
net settlement receivable position and swaps in a net settlement payable position totaled $2.0 million. Net gains of $172,000 were recognized on fair value hedges during the quarter ended December 31, 2006 compared to net losses of $407,000
during the quarter ended December 31, 2005.



20



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##### Table of Contents

The maturity date, notional amounts, interest rates paid and received and fair value of the Companys interest rate
swap agreements as of December 31, 2006 and September 30, 2006 were as follows:



|                   |  |                |            |                   |      |   |                      |      |   |                     |   |            |                  |  |      |                      |  |      |                     |  |   |            |  
|------------------ |  | -------------- | ---------- | ----------------- | ---- | - | -------------------- | ---- | - | ------------------- | - | ---------- | ---------------- |  | ---- | -------------------- |  | ---- | ------------------- |  | - | ---------- | -
|                   |  |                |            | December 31, 2006 |      |   | September 30, 2006   |     
|Maturity Date      |  | NotionalAmount |            | InterestRatePaid  |      |   | InterestRateReceived |      |   | EstimatedFair Value |   |            | InterestRatePaid |  |      | InterestRateReceived |  |      | EstimatedFair Value | 
|October 20, 2008   |  | $              | 10,000,000 |                   | 5.28 | % |                      | 4.30 | % |                     | $ | (145,000   | )                |  | 5.29 | %                    |  | 4.30 | %                   |  | $ | (154,000   | )
|November 19, 2009  |  |                | 10,000,000 |                   | 5.30 | % |                      | 3.50 | % |                     |   | (169,000   | )                |  | 5.31 | %                    |  | 3.50 | %                   |  |   | (208,000   | )
|November 23, 2009  |  |                | 10,000,000 |                   | 5.28 | % |                      | 3.75 | % |                     |   | (194,000   | )                |  | 5.28 | %                    |  | 3.75 | %                   |  |   | (216,000   | )
|November 26, 2010  |  |                | 10,000,000 |                   | 5.30 | % |                      | 4.13 | % |                     |   | (345,000   | )                |  | 5.31 | %                    |  | 4.13 | %                   |  |   | (365,000   | )
|November 26, 2010  |  |                | 5,000,000  |                   | 5.29 | % |                      | 4.13 | % |                     |   | (171,000   | )                |  | 5.30 | %                    |  | 4.13 | %                   |  |   | (181,000   | )
|November 26, 2010  |  |                | 5,000,000  |                   | 5.28 | % |                      | 4.13 | % |                     |   | (170,000   | )                |  | 5.29 | %                    |  | 4.13 | %                   |  |   | (179,000   | )
|January 24, 2010   |  |                | 10,000,000 |                   | 5.26 | % |                      | 3.70 | % |                     |   | (302,000   | )                |  | 5.27 | %                    |  | 3.70 | %                   |  |   | (321,000   | )
|January 28, 2011   |  |                | 10,000,000 |                   | 5.28 | % |                      | 4.30 | % |                     |   | (160,000   | )                |  | 5.29 | %                    |  | 4.30 | %                   |  |   | (188,000   | )
|February 25, 2011  |  |                | 5,000,000  |                   | 5.28 | % |                      | 4.80 | % |                     |   | (89,000    | )                |  | 5.28 | %                    |  | 4.80 | %                   |  |   | (96,000    | )
|September 14, 2012 |  |                | 5,000,000  |                   | 5.28 | % |                      | 4.25 | % |                     |   | (82,000    | )                |  | 5.29 | %                    |  | 4.25 | %                   |  |   | (98,000    | )
|                   |  |                |            |                   |      |   |                      |      |   |                     |   |            |                  |  |      |                      |  |      |                     |  |   |            |  
|Total              |  | $              | 80,000,000 |                   |      |   |                      |      |   |                     | $ | (1,827,000 | )                |  |      |                      |  |      |                     |  | $ | (2,006,000 | )
|                   |  |                |            |                   |      |   |                      |      |   |                     |   |            |                  |  |      |                      |  |      |                     |  |   |            |  

The gross amounts of interest paid to and received from the counterparty under the swap agreements
and the related average interest rates during the quarters ended December 31, 2006 and 2005 are as follows:



|                                |  |                                |         |   |      |   |       |   |  |  |  |  |  |  |  | 
|------------------------------- |  | ------------------------------ | ------- | - | ---- | - | ----- | - |  |  |  |  |  |  |  | 
|                                |  | Three Months EndedDecember 31, |         |   |      |   |       |   |  |  | 
|                                |  | 2006                           |         |   | 2005 |   |       |   |  |  |  |  |  | 
|Interest paid (variable rate):  |  |                                |         |   |      |   |       |   |  |  |  |  |  |  |  | 
|Total amount (000s)             |  | $                              | 1,057.2 |   |      | $ | 794.2 |   |  |  |  |  |  |  |  | 
|Average interest rate           |  |                                | 5.29    | % |      |   | 3.97  | % |  |  |  |  |  |  |  | 
|Interest received (fixed rate): |  |                                |         |   |      |   |       |   |  |  |  |  |  |  |  | 
|Total amount (000s)             |  | $                              | 808.1   |   |      | $ | 759.4 |   |  |  |  |  |  |  |  | 
|Average interest rate           |  |                                | 4.04    | % |      |   | 3.80  | % |  |  |  |  |  |  |  | 

CONTROLS AND PROCEDURES

Pulaski Financial maintains disclosure controls
and procedures as such term is defined in Rule 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the Exchange Act), that are designed to ensure that the information required to be disclosed
in the reports that Pulaski Financial files or submits under the Exchange Act with the Securities and Exchange Commission (the SEC) (1) is recorded, processed, summarized and reported within the time periods specified in the
SECs rules and forms, and (2) is accumulated and communicated to Pulaski Financials management including its principal executive and principal financial officers as appropriate to allow timely decisions regarding required
disclosure.

During the quarter ended December 31, 2006, Pulaski Financials management, including Pulaski Financials principal executive
officer and principal financial officer, evaluated the effectiveness of Pulaski Financials disclosure controls and procedures as of December 31, 2006, and concluded that Pulaski Financials disclosure controls and procedures were
effective as of such date.

There have been no changes in the Companys internal controls over financial reporting during the quarter that have
materially affected, or are reasonably likely to materially affect, the Companys internal control over financial reporting.



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IMPACT OF RECENTLY ISSUED ACCOUNTING
STANDARDS

In May 2005, the Financial Accounting Standards Board (FASB) issued Statement No. 154, Accounting
Changes and Error Corrections (SFAS No. 154), a replacement of APB Opinion No. 20, Accounting Changes, and FASB Statement No. 3, Reporting Accounting Changes in Interim Financial Statements.
SFAS No. 154 requires retrospective application for voluntary changes in accounting principles unless it is impracticable to do so. SFAS No. 154 is effective for the Company beginning October 1, 2006. We have evaluated the
requirements of SFAS No.154 and determined that it will not have a material effect on our financial condition or results of operations.

In February 2006,
the FASB issued Statement No. 155, Accounting for Certain Hybrid Financial Instruments (SFAS No. 155), which amends FASB Statements No. 133 and 140. This Statement permits fair value remeasurement for any
hybrid financial instrument containing an embedded derivative that would otherwise require bifurcation, and broadens a Qualified Special Purpose Entitys (QSPE) permitted holdings to include passive derivative financial instruments
that pertain to other derivative financial instruments. This statement is effective for the Company for all financial instruments acquired, issued or subject to a remeasurement event occurring on or after October 1, 2006. We have evaluated the
requirements of SFAS No. 155 and determined that it will not have a material effect on our financial condition or results of operations.

In March
2006, the FASB issued Statement No. 156, Accounting for Servicing of Financial Assets, an Amendment of FASB Statement No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities
(SFAS No. 156), which requires that all separately recognized servicing assets and servicing liabilities be initially measured at fair value, if practicable and permits the entities to elect either fair value measurement with
changes in fair value reflected in earnings or the amortization and impairment requirements of Statement 140 for subsequent measurement. The subsequent measurement of separately recognized servicing assets and servicing liabilities at fair value
eliminates the necessity for entities that manage the risks inherent in servicing assets and servicing liabilities with derivatives to qualify for hedge accounting treatment and eliminates the characterization of declines in fair value as
impairments or direct write-downs. Statement No. 156 is effective for the Company beginning October 1, 2006. We have evaluated the requirements of SFAS No. 156 and determined that it will not have a material effect on our financial
condition or results of operations.

In September 2006, the FASB issued Statement No. 157, Fair Value Measurements (SFAS
No. 157), which defines fair value, establishes a framework for measuring fair value in generally accepted accounting standards, and expands disclosures about fair value measurements. SFAS No. 157 is effective for financial
statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. We do not expect that the adoption of SFAS No. 157 will have a material effect on our financial condition or results of
operations.

In September 2006, the FASB issued Statement No. 158, Employers Accounting for Defined Benefit Pension and Other
Postretirement Plans (SFAS No. 158), which requires balance sheet recognition of the funded status of pension and other postretirement benefits with the offset to accumulated other comprehensive income. Employers will
recognize actuarial gains and losses, prior service cost, and any remaining transition amounts when recognizing a plans funded status. SFAS No. 158 is effective for fiscal years ending after December 15, 2006. We do not expect that
the adoption of SFAS No. 158 will have a material effect on our financial condition or results of operations.

In June 2006, the FASB issued
Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an interpretation of SFAS No. 109, Accounting for Income Taxes (Interpretation No. 48), which clarifies the accounting for
uncertainty in income taxes in financial statements and prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken. It also provides guidance on
derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. Interpretation No. 48 is effective for fiscal years beginning after December 15, 2006. We do not expect that the adoption of
Interpretation No. 48 will have a material effect on our financial condition or results of operations.

In September 2006, the SEC Staff issued Staff
Accounting Bulletin No. 108 (SAB No. 108), Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, which addresses how the effects of prior year
uncorrected misstatements should be considered when quantifying misstatements in current year financial statements. SAB No. 108 will require registrants to quantify misstatements using both the balance sheet and income-statement approaches and
to evaluate whether either approach results in quantifying an error that is material in light



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##### Table of Contents

of relevant quantitative and qualitative factors. When the effect of initial adoption is determined to be material, SAB No. 108 allows registrants to
record that effect as a cumulative effect adjustment to beginning retained earnings. The requirements are effective for the Company beginning October 1, 2006. We have evaluated the requirements of SAB No. 108 and determined that it will
not have a material effect on our financial condition or results of operations.

In September 2006, the Emerging Issues Task Force Issue 06-4, Accounting
for Deferred Compensation and Postretirement Benefit Aspects of Endorsement Split-Dollar Life Insurance Arrangements, was ratified. This EITF Issue addresses accounting for separate agreements which split life insurance policy benefits between an
employer and employee. The Issue requires the employer to recognize a liability for future benefits payable to the employee under these agreements. The effects of applying this Issue must be recognized through either a change in accounting principle
through an adjustment to equity or through the retrospective application to all prior periods. For calendar year companies, the Issue is effective beginning January 1, 2008. Early adoption is permitted as of January 1, 2007. We do not
expect the adoption of the Issue to have a material effect on our consolidated financial statements.

PART II - OTHER INFORMATION



|Item 1. | Legal Proceedings:
|------- | ------------------

Periodically, there have been
various claims and lawsuits involving the Bank, such as claims to enforce liens, condemnation proceedings on properties in which the Bank holds security interests, claims involving the making and servicing of real property loans and other issues
incident to the Banks business. Neither the Bank nor the Company is a party to any pending legal proceedings that it believes would have a material adverse effect on the financial condition or operations of the Company.



|Item 1A | Risk Factors-There have been no material changes from the risk factors as previously disclosed in Item 1A to Part 1 of the Companys Annual Report on Form 10-K for
the year ended September 30, 2006.
|------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds:
|------- | ------------------------------------------------------------



23



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##### Table of Contents

The following table provides information regarding the Companys purchases of its equity securities
during the three months ended December 31, 2006.

ISSUER PURCHASES OF EQUITY SECURITIES



|                                           |  |                                             |  |                                       |       |                                                                                            |        |                                                                                                                          |       
|------------------------------------------ |  | ------------------------------------------- |  | ------------------------------------- | ----- | ------------------------------------------------------------------------------------------ | ------ | ------------------------------------------------------------------------------------------------------------------------ | ------
|Period                                     |  | (a) TotalNumberof Shares(or Units)Purchased |  | (b)AveragePricePaid perShare(or Unit) |       | (c) Total Number ofShares (or
Units)Purchased as Partof PubliclyAnnounced Plansor Programs |        | (d)Maximum Number(or ApproximateDollar Value) ofShares (or Units) thatMay Yet BePurchased
Under thePlans or Programs (1)
|October 1, 2006 through October 31, 2006   |  |                                            |  | $                                     |      |                                                                                            |       |                                                                                                                          | 20,493
|November 1, 2006 through November 30, 2006 |  | 4,591                                       |  | $                                     | 15.74 |                                                                                            | 4,591  |                                                                                                                          | 15,902
|December 1, 2006 through December 31, 2006 |  | 12,468                                      |  | $                                     | 15.51 |                                                                                            | 12,468 |                                                                                                                          | 3,434 
|Total                                      |  | 17,059                                      |  | $                                     | 15.57 |                                                                                            | 17,059 |                                                                                                                          |       



|(1) | In February 2003, Pulaski Financial Corp. announced a repurchase program under which it would repurchase up to 140,000 shares of Pulaski Banks common stock. On July 21,
2003, the Company declared a two-for-one split of its common stock, increasing the shares authorized under this program to 280,000. On July 18, 2005, Pulaski Financial issued a three-for-two stock split, increasing the shares authorized under
this program to 420,000. The repurchase program will continue until it is completed or terminated by the Board of Directors.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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##### Table of Contents

|Item 3. | Defaults Upon Senior Securities:Not applicable
|------- | ----------------------------------------------



|Item 4. | Submission of Matters to a Vote of Security Holders:Not applicable
|------- | ------------------------------------------------------------------



|Item 5. | Other Information:Not applicable
|------- | --------------------------------



|Item 6. | Exhibits
|------- | --------



|     |  |                                                                                   
|---- |  | ----------------------------------------------------------------------------------
|3.1  |  | Articles of Incorporation of Pulaski Financial Corp.*                             
|     | 
|3.2  |  | Certificate of Amendment to Articles of Incorporation of Pulaski Financial Corp.**
|     | 
|3.3  |  | Bylaws of Pulaski Financial Corp.***                                              
|     | 
|4.0  |  | Form of Certificate for Common Stock****                                          
|     | 
|31.1 |  | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer                 
|     | 
|31.2 |  | Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer             
|     | 
|32.1 |  | Section 1350 Certification of Chief Executive Officer                             
|     | 
|32.2 |  | Section 1350 Certification of Chief Financial Officer                             

---

|* | Incorporated by reference into this document from the Exhibits to the 2003 proxy statement as filed with the Securities and Exchange Commission on December 27, 2002.
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------



|** | Incorporated by reference into this document from the Form 10-Q, as filed with the Securities and Exchange Commission on February 17, 2004.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------



|*** | Incorporated herein by reference from the Form 10-Q, as filed with the Securities and Exchange Commission on August 9, 2005.
|--- | ----------------------------------------------------------------------------------------------------------------------------



|**** | Incorporated by reference from the Form S-1 (Registration No. 333-56465), as amended, as filed with the Securities and Exchange Commission on June 9, 1998.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------



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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



|                       |  |  |  |                                     
|---------------------- |  |  |  | ------------------------------------
|                       |  |  |  | PULASKI FINANCIAL CORP.             
|                       |  | 
|Date: February 8, 2007 |  |  |  | /S/ William A. Donius               
|                       |  |  |  | William A. Donius                   
|                       |  |  |  | Chairman and Chief Executive Officer
|                       |  | 
|Date: February 8, 2007 |  |  |  | /S/ Ramsey K. Hamadi                
|                       |  |  |  | Ramsey K. Hamadi                    
|                       |  |  |  | Chief Financial Officer