UNITED STATES

                       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                September 30, 1999
                               -------------------------------------------------

                                       OR

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


For the transition period from           to
                               --------      -----------------------------------

                             OTS DOCKET NUMBER 05016
                                               -----

                              PULASKI BANCORP, INC.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

   FEDERALLY-CHARTERED                                          22-1402632
--------------------------------------------------------------------------------
(State or other jurisdiction of                           (I.R.S. Employer
 incorporation or organization)                           Identification Number)

130 Mountain Avenue, Springfield, New Jersey                     07081
--------------------------------------------------------------------------------
(Address of principal executive offices)                       (Zip Code)


Registrant's telephone number, including area code           973-564-9000
                                                   -----------------------------

      Indicate  by check X whether  the  registrant  (1) has  filed all  reports
required to be filed by Section 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. (1) YES X NO (2) YES NO X

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date:

      As of November 1, 1999,  2,108,088  common  shares,  $.01 par value,  were
outstanding.
<PAGE>
                      PULASKI BANCORP, INC. AND SUBSIDIARY

                                      INDEX
<TABLE>
<CAPTION>
                                                                                          Page
                                                                                         Number
                                                                                      -------------
<S>                                                                                          <C>
PART I                    FINANCIAL INFORMATION

                 Item 1.  Financial Statements

                          Statements of Consolidated Financial Condition as of
                          September 30, 1999 and December 31, 1998 (Unaudited)               1

                          Statements of Consolidated Income for the Nine and Three
                          Months Ended September 30, 1999 and 1998 (Unaudited)               2


                          Statements of Consolidated Comprehensive Income for the
                          Nine and Three Months Ended September 30, 1999 and 1998            3
                          (Unaudited)

                          Statements of Consolidated Cash Flows for the Nine
                          Months Ended September 30, 1999 and 1998 (Unaudited)               4 - 5

                          Notes to Consolidated Financial Statements                         6

                 Item 2.  Management's Discussion and Analysis of
                          Financial Condition and Results of Operations                      7 - 14

                 Item 3.  Quantitative and Qualitative Disclosures
                          About Market Risk                                                  15 - 16

PART II                   OTHER INFORMATION

                 Item 1.  Legal Proceedings                                                  17
                 Item 2.  Changes in Securities and Use of Proceeds                          17
                 Item 3.  Defaults Upon Senior Securities                                    17
                 Item 4.  Submission of Matters to a Vote of Security Holders                17
                 Item 5.  Other Information                                                  17
                 Item 6.  Exhibits and Reports on Form 8-K                                   17

SIGNATURES                                                                                   18
</TABLE>
<PAGE>
                      PULASKI BANCORP, INC. AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                 ----------------------------------------------
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                September 30,     December 31,
ASSETS                                                               1999            1998
------                                                          -------------    -------------
<S>                                                             <C>              <C>
Cash and amounts due from depository institutions               $   2,787,717    $   2,336,949
Interest-bearing deposits                                             294,892        2,377,613
Federal funds sold                                                  4,350,000       18,650,000
                                                                -------------    -------------
      Cash and cash equivalents                                     7,432,609       23,364,562
Term deposits                                                         197,000          197,000
Trading account securities                                          2,813,500             --
Securities available for sale                                       5,829,794        5,642,498
Investment securities held to maturity                              6,946,850        6,946,353
Mortgage-backed securities held to maturity                        74,555,324       55,728,490
Loans receivable                                                  127,245,673      100,894,180
Real estate owned                                                      49,822          130,626
Premises and equipment                                              4,059,399        3,862,532
Federal Home Loan Bank of New York stock                            1,900,000        1,446,200
Accrued interest receivable                                         1,228,745          971,566
Other assets                                                          705,292          607,896
                                                                -------------    -------------
      Total assets                                              $ 232,964,008    $ 199,791,903
                                                                =============    =============
Liabilities and stockholders' equity

Liabilities

Deposits                                                        $ 169,714,773    $ 174,808,024
Advances from Federal Home Loan Bank of New York                   38,000,000             --
Other borrowed money                                                     --            454,805
Advance payments by borrowers for taxes                               849,518          773,361
Other liabilities                                                     683,072          950,124
                                                                -------------    -------------
      Total Liabilities                                           209,247,363      176,986,314
                                                                -------------    -------------
Stockholders' Equity

Preferred stock; authorized 2,000,000 shares; issued
  and outstanding-none                                                   --               --
Common stock; par value $.01; authorized 13,000,000
  shares; 2,108,088 shares issued and outstanding                      21,081           21,081
Paid-in-capital                                                     9,843,274        9,854,730
Retained earnings - substantially restricted                       14,701,179       14,029,016
Unearned Incentive Plan Award shares                                 (466,790)        (581,054)
Unearned Employee Stock Ownership Plan shares                        (333,459)        (495,144)
Accumulated other comprehensive income - Unrealized (loss) on
  Securities available for sale, net                                  (48,640)         (23,040)
                                                                -------------    -------------
      Total stockholders' equity                                   23,716,645       22,805,589
                                                                -------------    -------------
      Total liabilities and stockholders' equity                $ 232,964,008    $ 199,791,903
                                                                =============    =============
</TABLE>
See notes to financial statements.
                                        1
<PAGE>
                      PULASKI BANCORP, INC. AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF INCOME
                        ---------------------------------
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                             Nine Months Ended            Three Months Ended
                                                              September 30,                 September 30,
                                                      ----------------------------   ----------------------------
                                                          1999            1998           1999            1998
                                                      ------------    ------------   ------------    ------------
<S>                                                   <C>             <C>            <C>             <C>
Interest income:
       Loans                                          $  6,592,823    $  6,403,365   $  2,345,111    $  2,136,262
       Mortgage-backed securities held to maturity       2,702,156       2,481,834        996,242         843,627
       Investment securities held to maturity              296,085         378,889        108,540          82,522
       Securities available for sale                       227,296         232,265         78,064          78,311
       Other interest-earning assets                       540,624         610,880        157,352         241,255
                                                      ------------    ------------   ------------    ------------
            Total interest income                       10,358,984      10,107,233      3,685,309       3,381,977
                                                      ------------    ------------   ------------    ------------
Interest expense:

       Deposits                                          5,656,842       5,642,200      1,848,717       1,910,668
       Advances and other borrowed money                   298,491         148,540        280,543          12,486
                                                      ------------    ------------   ------------    ------------

            Total interest expense                       5,955,333       5,790,740      2,129,260       1,923,154
                                                      ------------    ------------   ------------    ------------

Net interest income                                      4,403,651       4,316,493      1,556,049       1,458,823
Provision for loan losses                                   86,000          89,000         25,000          26,000
                                                      ------------    ------------   ------------    ------------

Net interest income after provision for loan losses      4,317,651       4,227,493      1,531,049       1,432,823
                                                      ------------    ------------   ------------    ------------
Non-interest income:

       Fees and service charges                            130,297         113,540         58,062          37,858
       Trading account (loss) income                       (30,935)         68,753        (34,483)         13,125
       Gain (loss) on real estate owned                        599            --             (581)           --
       Gain on sale of branch                              422,554            --          422,554            --
       Miscellaneous                                        14,224          13,560          4,886           4,221
                                                      ------------    ------------   ------------    ------------

            Total non-interest income                      536,739         195,853        450,438          55,204
                                                      ------------    ------------   ------------    ------------
</TABLE>
(continued)
<PAGE>
<TABLE>
<CAPTION>
                                                             Nine Months Ended            Three Months Ended
                                                              September 30,                 September 30,
                                                      ----------------------------   ----------------------------
                                                          1999            1998           1999            1998
                                                      ------------    ------------   ------------    ------------
<S>                                                   <C>             <C>            <C>             <C>
Non-interest expenses:
       Salaries and employee benefits                    1,957,066       1,875,490        680,338         631,573
       Occupancy expense of premises                       310,595         218,459        116,188          75,788
       Equipment                                           279,570         458,003         93,002         121,012
       Advertising                                          62,228           7,274          5,243           2,884
       Loss on foreclosed real estate                         --             5,890           --             2,655
       Federal insurance premium                            75,810          71,708         25,101          24,480
       Miscellaneous                                       696,833         605,075        228,005         195,087
                                                      ------------    ------------   ------------    ------------

            Total non-interest expenses                  3,382,102       3,241,899      1,147,877       1,053,479
                                                      ------------    ------------   ------------    ------------

Income before income taxes                               1,472,288       1,181,447        833,610         434,548
Income taxes                                               573,371         453,340        306,078         159,000
                                                      ------------    ------------   ------------    ------------

            Net income                                $    898,917    $    728,107   $    527,532    $    275,548
                                                      ============    ============   ============    ============
Net income per common share:
       Basic/diluted                                  $       0.44    $       0.36   $       0.26    $       0.14
                                                      ============    ============   ============    ============
Weighted  average number  of
common shares
  and common stock equivalents outstanding:
      Basic/diluted                                      2,040,343       2,015,238      2,047,697       2,020,952
                                                      ============    ============   ============    ============
</TABLE>
See notes to financial statements.
                                       2
<PAGE>
                      PULASKI BANCORP, INC. AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                 -----------------------------------------------
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                         Nine Months Ended         Three Months Ended
                                                           September 30,              September 30,
                                                      ----------------------     ----------------------
                                                         1999        1998         1999         1998
                                                      ---------    ---------    ---------    ---------
<S>                                                   <C>          <C>          <C>          <C>
       Net income                                     $ 898,917    $ 728,107    $ 527,532    $ 275,548
       Other comprehensive income-unrealized
        holding (loss) gain on securities available

        for sale, net of income taxes                   (25,600)     (10,160)     (14,720)       3,200
                                                      ---------    ---------    ---------    ---------

       Comprehensive income                           $ 873,317    $ 717,947    $ 512,812    $ 278,748
                                                      ---------    ---------    ---------    ---------
</TABLE>

See notes to financial statements.
                                        3
<PAGE>
                      PULASKI BANCORP, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                      -------------------------------------
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                  Nine Months Ended
                                                                                     September 30,
                                                                             ----------------------------
                                                                                 1999            1998
                                                                             ------------    ------------
<S>                                                                          <C>             <C>
 Cash flows from operating activities:
       Net income                                                            $    898,917    $    728,107
       Adjustments to reconcile net income to
         cash (used in) provided by operating activities:

          Depreciation and amortization of premises and equipment                 195,902         155,266
          Accretion of discounts and amortization of premiums, net                 26,378          30,805
          Accretion of deferred fees and discounts                               (185,634)       (353,873)
          Provision for loan losses                                                86,000          89,000
          Purchases of trading account securities                              (7,074,557)    (14,824,783)
          Proceeds from sales of trading account securities                     4,289,672      14,893,536
          Realized gains on sales of trading account securities                   (41,011)        (68,753)
          Unrealized loss of trading account securities                            71,946            --
          (Gain) loss on sale of real estate owned                                 (3,226)          2,382
          Gain on sale of branch                                                 (422,554)           --
          (Increase) decrease in accrued interest receivable                     (257,179)          8,126
          (Increase) in other assets                                              (82,996)       (189,343)
          (Decrease) increase in interest payable on deposits                    (143,160)         60,154
          (Decrease) increase in other liabilities                               (267,052)        217,376
          ESOP committed to be released                                           153,867         194,249
          Amortization of cost of stock contributed to Incentive Plan             114,264         114,264
                                                                             ------------    ------------

             Net cash (used in) provided by operating activities               (2,640,423)      1,056,513
                                                                             ------------    ------------

 Cash flows from investing activities:
       Purchases of securities available for sale                                (227,296)       (232,264)
       Proceeds from maturities of investment securities held to maturity       1,000,000       7,000,000
       Proceeds from call of investment securities held to maturity             2,000,000            --
       Purchases of investment securities held to maturity                     (3,000,000)     (2,000,000)
       Purchases of mortgage-backed securities held to maturity               (37,148,664)    (21,590,834)
       Principal repayments on mortgage backed securities held to maturity     18,235,405      17,355,810
       Purchase of loans                                                       (7,725,227)       (216,000)
       Net change in loans receivable                                         (18,566,451)        755,429
       Capitalized cost on real estate owned                                      (10,003)           --
       Proceeds from sale of real estate owned                                    133,852          66,551
       Additions to premises and equipment                                       (392,769)       (351,846)
       Purchase of Federal Home Loan Bank of New York stock                      (453,800)           --
                                                                             ------------    ------------
             Net cash (used in) provided by investing activities              (46,154,953)        786,846
(Continued)
<PAGE>
<CAPTION>
                                                                                  Nine Months Ended
                                                                                     September 30,
                                                                             ----------------------------
                                                                                 1999            1998
                                                                             ------------    ------------
<S>                                                                          <C>             <C>
                                                                             ------------    ------------
 Cash flows from financing activities:
       Net increase in deposits                                                   718,330      13,720,658
       Cash paid for sale of branch                                            (5,245,867)           --
       Net increase (decrease) in advances from Federal Home Loan

         Bank of New York                                                      38,000,000      (5,000,000)
       Net (decrease) in other borrowed money                                    (454,805)       (137,103)
       Net increase (decrease) in payments by borrowers for taxes                  76,157         (95,382)
       Cash dividends paid                                                       (230,392)       (208,504)
                                                                             ------------    ------------

             Net cash provided by financing activities                         32,863,423       8,279,669
                                                                             ------------    ------------
 Net (decrease) increase in cash and cash equivalents                         (15,931,953)     10,123,028
 Cash and cash equivalents - beginning                                         23,364,562       6,429,709
                                                                             ------------    ------------
 Cash and cash equivalents - ending                                          $  7,432,609    $ 16,552,737
                                                                             ============    ============
</TABLE>
See notes to financial statements.
                                       4
<PAGE>
                      PULASKI BANCORP, INC. AND SUBSIDIARY
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                     -------------------------------------
                                  (Unaudited)
<TABLE>
<CAPTION>
                                                             Nine Months Ended
                                                               September 30,
                                                          -----------------------
                                                             1999         1998
                                                          ----------   ----------
<S>                                                       <C>          <C>
Supplemental information:
      Transfer of loans receivable to real estate owned   $   39,819   $     --
                                                          ==========   ==========
      Unrealized loss on securities available
         For sale, net of income taxes                    $   25,600   $   10,160
                                                          ==========   ==========
      Cash paid during the period for:
         Income taxes                                     $  512,588   $  561,740
                                                          ==========   ==========

         Interest on deposits and borrowings              $6,086,309   $5,779,197
                                                          ==========   ==========
</TABLE>
See notes to financial statements.

                                        5
<PAGE>
                      PULASKI BANCORP, INC. AND SUBSIDIARY
                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------

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

The accompanying  unaudited  consolidated  financial statements were prepared in
accordance with instructions for Form 10-Q and Regulation S-X and do not include
information  or footnotes  necessary  for a complete  presentation  of financial
condition,  results of operations,  and cash flows in conformity  with generally
accepted  accounting  principles.  However,  in the opinion of  management,  all
adjustments  (consisting only of normal recurring  adjustments)  necessary for a
fair presentation of the consolidated  financial  statements have been included.
The results of operations for the nine months ended  September 30, 1999, are not
necessarily  indicative  of the  results  which may be  expected  for the entire
fiscal year.

2. NET INCOME PER COMMON SHARE
------------------------------

Basic net income per common  share is based on the  weighted  average  number of
common shares actually outstanding, adjusted for unearned shares of the ESOP and
the Incentive Plan.  Diluted net income per share is calculated by adjusting the
weighted  average  number of shares of common stock  outstanding  to include the
effect of potential  common shares.  Potential common shares related to unearned
incentive plan awards,  unearned ESOP shares and stock options were not dilutive
during the three months and nine months ended September 30, 1999 and 1998.

3. FORMATION OF STOCK HOLDING COMPANY
-------------------------------------

On July 12, 1999, Pulaski Savings Bank (the "Bank")  reorganized into a two-tier
mutual  holding  company  structure   pursuant  to  an  Agreement  and  Plan  of
Reorganization  which was  unanimously  adopted by the Board of Directors of the
Bank on  January  28,  1999  ("Plan  of  Reorganization")  and  approved  by the
shareholders  of the Bank on April 23,  1999.  Under the Plan of  Reorganization
(the  "Reorganization"),  the Bank became a wholly owned  subsidiary  of Pulaski
Bancorp, Inc. (the "Company"),  a  federally-chartered  stock holding company, a
majority  of the  Common  Stock of which is now  owned by the  Pulaski  Bancorp,
M.H.C. (the "Mutual Holding Company"), the Bank's parent mutual holding company.
In the Reorganization, each outstanding share of Bank common stock was converted
into one share of Company  common  stock and the  holders of Bank  common  stock
became the holders of all of the  outstanding  shares of Company  common  stock.
Accordingly,   as  a  result  of  the   Reorganization,   the  Bank's   minority
stockholders,  became  minority  stockholders  of the  Company  and  the  Bank's
majority   stockholder,   the  Mutual  Holding  Company,   became  the  majority
stockholder of the Company.

After the Reorganization,  the Bank has continued its business and operations as
a wholly owned  subsidiary of the Company and the  consolidated  capitalization,
assets,  liabilities,  income and financial  statements,  and  management of the
Company  immediately  following the  Reorganization is substantially the same as
those of the Bank immediately prior to consummation of the  Reorganization.  The
Charter and Bylaws of the Bank continue in effect, and have not been affected in
any manner by the  Reorganization.  The name "Pulaski Savings Bank" continues to
be utilized  by the Bank.  The  corporate  existence  of the Bank has  continued
unaffected  and  unimpaired  by  the  Reorganization  except  that  all  of  its
outstanding stock is now owned by the Company.

                                        6
<PAGE>
                      PULASKI BANCORP, INC. AND SUBSIDIARY
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                  ---------------------------------------------

DISCUSSION OF FORWARD-LOOKING STATEMENTS

When used or  incorporated  by  reference  in  disclosure  documents,  the works
"anticipate",  "estimate",  "expect",  "project",  "target",  "goal" and similar
expressions   are  intended  to  identify   forward-looking   statements.   Such
forward-looking  statements  are  subject to certain  risks,  uncertainties  and
assumptions.  Should one or more of these risks or uncertainties materialize, or
should  underlying   assumptions  prove  incorrect,   actual  results  may  vary
materially  from those  anticipated,  estimated,  expected or  projected.  These
forward-looking  statements  speak  only  as of the  date of the  document.  The
Company  expressly  disclaims any obligation or undertaking to publicly  release
any updates or revisions to any  forward-looking  statement  contained herein to
reflect  any change in the  Company's  expectation  with  regard  thereto or any
change in events,  conditions or  circumstances  on which any such  statement is
based.

COMPARISON  OF  CONSOLIDATED  FINANCIAL  CONDITION  AT  SEPTEMBER  30,  1999 AND
DECEMBER 31, 1998

The  Company's  assets at September  30, 1999  totalled  $233.0  million,  which
represents an increase of $33.2 million or 16.6% as compared with $199.8 million
at December 31, 1998.

Cash and cash  equivalents  decreased  $16.0 million or 68.4% to $7.4 million at
September 30, 1999 from $23.4 million at December 31, 1998, primarily reflecting
a $14.3 million  decrease in federal funds sold. The decrease was primarily used
to fund loan originations and purchases.

Term  deposits  at  September  30, 1999 and  December  31, 1998 were the same at
$197,000.  Trading  account  securities  at September  30, 1999 amounted to $2.8
million.  The Bank did not have trading account securities at December 31, 1998.
Securities  available for sale at September 30, 1999 increased  $188,000 or 3.3%
to $5.8 million  when  compared  with $5.6  million at December 31, 1998,  which
resulted from purchases of $227,000 in securities  available for sale sufficient
to  offset  a net  unrealized  loss on such  portfolio  of  $40,000.  Investment
securities held to maturity at September 30, 1999 and December 31, 1998 totalled
$6.9 million.  During the nine months ended  September  30, 1999,  proceeds from
calls and  maturities of investment  securities  held to maturity  totalled $3.0
million, offset by purchases of $3.0 million.

Mortgage-backed  securities held to maturity increased $18.9 million or 33.9% to
$74.6  million at September  30, 1999 when compared to $55.7 million at December
31, 1998. The increase  during the nine months ended September 30, 1999 resulted
primarily  from  purchases  of  mortgage-backed   securities  of  $37.1  million
sufficient to offset repayments on mortgage-backed securities of $18.2 million

Net loans  increased  $26.3 million or 26.1% to $127.2  million at September 30,
1999 as compared to $100.9 million at December 31, 1998. The increase during the
nine months ended September 30, 1999,  resulted primarily from loan originations
and purchases exceeding loan principal repayments.

Deposits at September  30, 1999  decreased  $5.1 million to $169.7  million when
compared with $174.8  million at December 31, 1998.  During the third quarter of
1999, the Bank sold its deposits held at its Harrison,  New Jersey branch office
in the amount of $5.7 million, resulting in a gain of $423,000.

                                        7
<PAGE>
                      PULASKI BANCORP, INC. AND SUBSIDIARY
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                  ---------------------------------------------

COMPARISON  OF  CONSOLIDATED  FINANCIAL  CONDITION  AT  SEPTEMBER  30,  1999 AND
DECEMBER 31, 1998 (CONT'D.)

At September 30, 1999, advances from Federal Home Loan Bank of New York ("FHLB")
amounted to $38.0 million. Such advances were primarily used for the purchase of
mortgage-backed securities held to maturity and funding of loan originations and
purchases.  The Bank did not have any outstanding advances from FHLB at December
31, 1998. At December 31, 1998, other borrowed money amounted to $455,000, which
was paid-off on September 30, 1999.

Stockholders'  equity  totalled $23.7 million and $22.8 million at September 30,
1999 and December 31, 1998, respectively.

COMPARISON  OF OPERATING  RESULTS FOR THE THREE MONTHS ENDED  SEPTEMBER 30, 1999
AND 1998

Net income  increased  $252,000 or 91.3% to $528,000  for the three months ended
September 30, 1999 compared with $276,000 for the same 1998 period. The increase
in net income during the 1999 period  resulted from  increases in total interest
income and non-interest income which were partially offset by increases in total
interest expense, non-interest expenses and income taxes.

Interest  income on loans  increased by $209,000 or 9.8% to $2.3 million  during
the three months ended September 30, 1999 when compared with $2.1 million during
the same 1998  period.  The  increase  during the 1999 period  resulted  from an
increase of $20.8 million in the average balance of loans outstanding sufficient
to  offset a  decrease  of 77  basis  points  in the  yield  earned  on the loan
portfolio. Interest on mortgage-backed securities increased $152,000 or 18.0% to
$996,000  during the three months ended  September  30, 1999 when  compared with
$844,000 for the same 1998 period.  The increase during the 1999 period resulted
from  an  increase  in  the  average  balance  of   mortgage-backed   securities
outstanding  of $15.6  million,  which was sufficient to offset a decrease of 50
basis  points  in the  yield  earned  thereon.  Interest  earned  on  investment
securities,  including available for sale and held to maturity issues, increased
$26,000 or 16.1% to $187,000  during the three months ended  September  30, 1999
when compared with  $161,000 for the same 1998 period.  The increase  during the
1999 period  resulted from a increase of $1.2 million in the average  balance of
investment  securities  outstanding along with an increase of 29 basis points in
the yield earned on such securities.  Interest earned on other  interest-earning
assets, which includes trading account securities, decreased by $84,000 or 34.9%
to $157,000  during the three months ended September 30, 1999 when compared with
$241,000 for the same 1998 period.  The decrease during the 1999 period resulted
from a  decrease  of $8.0  million  or 48.3%  in the  average  balance  of other
interest-earning assets outstanding partially offset by an increase of 151 basis
points in the yield earned thereon.

Interest  expense on deposits  decreased  $63,000 or 3.3% to $1.8 million during
the three months ended  September 30, 1999 when compared to $1.9 million  during
the same 1998 period. Such decrease during the 1999 period was attributable to a
decrease of 35 basis points in the cost of interest-bearing  deposits which more
than   offset  an  increase   of  $7.2   million  in  the  average   balance  of
interest-bearing  deposits outstanding.  Interest on advances and borrowed money
amounted to $281,000 and $12,000  during the three months  ended  September  30,
1999 and 1998,  respectively.  The  increase  during  the 1999  period  resulted
primarily  from an increase of $20.2 million in the average  balance of borrowed
money.
                                       8
<PAGE>
                      PULASKI BANCORP, INC. AND SUBSIDIARY
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                  ---------------------------------------------

COMPARISON  OF OPERATING  RESULTS FOR THE THREE MONTHS ENDED  SEPTEMBER 30, 1999
AND 1998 (CONT'D.)

Net interest income increased  $97,000 or 6.6% to $1.56 million during the three
months ended September 30, 1999 when compared with $1.46 million during the same
1998 period.  Such increase was due to an increase in total  interest  income of
$303,000,  which was sufficient to offset an increase in total interest  expense
of $206,000. The Bank's net interest rate spread decreased to 2.45% in 1999 from
2.66% in 1998.  The decrease in the interest rate spread in 1999 resulted from a
decrease  of 45 basis  points in the yield  earned on  interest-earning  assets,
which was more than  sufficient to offset a 24 basis point  decrease in the cost
of interest-bearing liabilities.

During the three months ended  September  30, 1999 and 1998,  the Bank  provided
$25,000 and $26,000,  respectively,  for loan  losses.  The  allowance  for loan
losses is based on  management's  evaluation  of the risks  inherent in the loan
portfolio and gives due  consideration  to changes in general market  conditions
and in the nature and volume of the Bank's loan  activity.  The Bank  intends to
continue  to provide for loan losses  based on its  periodic  review of the loan
portfolio and general market conditions.

Management  believes  that,  based  on  information  currently  available,   the
allowance  for loan losses is  sufficient  to cover losses  inherent in its loan
portfolio at this time. However, no assurance can be given that the level of the
allowance  for loan losses will be  sufficient  to cover  future  possible  loan
losses incurred by the Bank or that future adjustments to the allowance for loan
losses  will  not  be  necessary  if  economic  and  other   conditions   differ
substantially  from the  economic and other  conditions  used by  management  to
determine the current level of the allowance for loan losses.  Management may in
the future  increase the level of the  allowance for loan losses as a percentage
of total loans and  non-performing  loans in the event it increases the level of
commercial real estate,  multifamily, or consumer lending as a percentage of its
total loan portfolio.  In addition,  various regulatory agencies, as an integral
part of their examination  process,  periodically  review the allowance for loan
losses. Such agencies may require the Bank to provide additions to the allowance
based upon judgments different from management.  At September 30, 1999 and 1998,
the Bank's  non-performing  loans,  which were  delinquent  ninety days or more,
totalled  $632,000  or .27% of total  assets  and $1.2  million or .62% of total
assets,  respectively.  At September 30, 1999 and 1998, all non-performing loans
were on non-accrual status.

Non-interest  income  increased by $395,000 to $450,000  during the three months
ended  September 30, 1999 when compared to $55,000  during the same 1998 period.
The increase  during the 1999 period resulted from increases in fees and service
charges  of  $20,000  and the gain on sale of a branch  of  $423,000,  partially
offset by a $48,000 decline in trading  account income.  During the three months
ended  September 30, 1999,  the Bank  purchased  trading  account  securities of
$551,000 and did not sell any securities.  Unrealized  losses on trading account
securities totalled,  however,  $34,000. During the three months ended September
30, 1999,  the Bank sold its deposits of $5.7 million held at its Harrison,  New
Jersey branch office at a gain of $423,000.
<PAGE>
Non-interest expenses increased by $95,000, or 9.0%, to $1.15 million during the
three months ended  September 30, 1999 when  compared with $1.05 million  during
the same 1998 period. During the 1999 period, increases in salaries and employee
benefits,  occupancy,  advertising,  federal insurance premium and miscellaneous
expenses of $49,000, $40,000, $2,000, $1,000, and $33,000, respectively, were

                                        9
<PAGE>
                      PULASKI BANCORP, INC. AND SUBSIDIARY
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                  ---------------------------------------------

COMPARISON  OF OPERATING  RESULTS FOR THE THREE MONTHS ENDED  SEPTEMBER 30, 1999
AND 1998 (CONT'D.)

partially  offset by  decreases  in  equipment  and loss on real estate owned of
$28,000 and $3,000,  respectively,  when compared with the same 1998 period. The
increase in occupancy  expense is largely the result of a new branch  located at
Bayville,  New  Jersey,  which was  opened  during  the first  quarter  of 1999.
Equipment  expenses  during  the  1998  period  included  the cost  incurred  in
connection with the change in the Bank's outside computer service center.

Income  taxes  totalled  $306,000  and  $159,000  during the three  months ended
September 30, 1999 and 1998,  respectively.  The increase during the 1999 period
resulted from an increase in pre-tax income.

COMPARISON OF OPERATING RESULTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND
1998

Net income  increased  $171,000 or 23.5% to $899,000  for the nine months  ended
September 30, 1999 compared with $728,000 for the same 1998 period. The increase
in net income during the 1999 period  resulted from  increases in total interest
income and  non-interest  income  combined with a decrease in provision for loan
losses,  which were  partially  offset by increases in total  interest  expense,
non-interest expenses and income taxes.

Interest  income on loans  increased by $190,000 or 3.0% to $6.6 million  during
the nine months ended  September 30, 1999 when compared with $6.4 million during
the same 1998  period.  The  increase  during the 1999 period  resulted  from an
increase of $11.3 million in the average balance of loans outstanding sufficient
to  offset a  decrease  of 63  basis  points  in the  yield  earned  on the loan
portfolio.  Interest on mortgage-backed securities increased $220,000 or 8.9% to
$2.7 million during the nine months ended  September 30, 1999 when compared with
$2.5  million  for the same 1998  period.  The  increase  during the 1999 period
resulted from an increase in the average balance of  mortgage-backed  securities
outstanding  of $10.1  million,  which was sufficient to offset a decrease of 52
basis  points  in the  yield  earned  thereon.  Interest  earned  on  investment
securities,  including available for sale and held to maturity issues, decreased
$88,000 or 14.4% to $523,000  during the nine months  ended  September  30, 1999
when compared with  $611,000 for the same 1998 period.  The decrease  during the
1999 period  resulted from a 10 basis point decrease in the yield earned on such
securities,  accompanied by a decrease of $1.8 million in the average balance of
investment  securities  outstanding.  Interest earned on other  interest-earning
assets, which includes trading account securities, decreased by $70,000 or 11.5%
to $541,000  during the nine months ended  September 30, 1999 when compared with
$611,000 for the same 1998 period.  The decrease during the 1999 period resulted
from a decrease of $1.2 million in the average balance of other interest-earning
assets outstanding, along with a decrease of 19 basis points in the yield earned
thereon.
<PAGE>
Interest  expense on deposits  increased  $15,000 or .3% to $5.66 million during
the nine months ended  September 30, 1999 when compared to $5.64 million  during
the same 1998 period.  Such increase during the 1999 period was  attributable to
an increase of $11.4 million in the average balance of interest-bearing deposits
outstanding, which was sufficient to offset a decrease of 30 basis points in the
cost of  interest-bearing  deposits.  Interest on advances  and  borrowed  money
amounted to $298,000 and $149,000  during the nine months  ended  September  30,
1999 and 1998,  respectively.  The  increase  during  the 1999  period  resulted
primarily from an increase of $4.1 million or 134.1%,  in the average balance of
advances and borrowed money.
                                       10
<PAGE>
                      PULASKI BANCORP, INC. AND SUBSIDIARY
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                  ---------------------------------------------

COMPARISON OF OPERATING RESULTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND
1998 (CONT'.D)

Net interest  income  increased  $88,000 or 2.0% to $4.4 million during the nine
months ended  September 30, 1999 when compared with $4.3 million during the same
1998 period.  Such increase was due to an increase in total  interest  income of
$252,000,  which was sufficient to offset an increase in total interest  expense
of $164,000. The Bank's net interest rate spread decreased to 2.44% in 1999 from
2.65% in 1998.  The decrease in the interest rate spread in 1999 resulted from a
decrease  of 51 basis  points in the yield  earned on  interest-earning  assets,
which was more than  sufficient to offset a 30 basis point  decrease in the cost
of interest-bearing liabilities.

During the nine months  ended  September  30, 1999 and 1998,  the Bank  provided
$86,000 and $89,000, respectively, for loan losses.

Non-interest  income  increased  by $341,000 to $537,000  during the nine months
ended  September 30, 1999 when compared to $196,000 during the same 1998 period.
The increase  during the 1999 period resulted from increases in fees and service
charges of $17,000 and a gain on sale of branch of $423,000  partially offset by
a $100,000  decrease in trading  account  income.  During the nine months  ended
September  30, 1999,  the Bank  purchased  $7.1 million and sold $4.2 million in
trading  securities,  resulting  in a realized  gains of $41,000,  and  recorded
unrealized  losses on trading  account  securities  of $72,000.  During the nine
months ended September 30, 1998, the Bank purchased and sold securities of $14.8
million resulting in income of $69,000 from such trading.

Non-interest expenses increased by $140,000, or 4.3%, to $3.4 million during the
nine months ended  September 30, 1999 when compared with $3.2 million during the
same 1998  period.  During the 1999  period,  increases in salaries and employee
benefits,  occupancy,  advertising,  federal insurance premium and miscellaneous
expenses of $82,000, $92,000, $55,000, $4,000, and $92,000,  respectively,  were
partially  offset by  decreases  in  equipment  and loss on real estate owned of
$178,000 and $6,000, respectively,  when compared with the same 1998 period. The
increase in occupancy  expense is largely the result of a new branch  located at
Bayville,  New  Jersey,  which was  opened  during  the first  quarter  of 1999.
Equipment  expenses  during  the  1998  period  included  the cost  incurred  in
connection with the change of the Bank's outside computer service center.

Income  taxes  totalled  $573,000  and  $453,000  during the nine  months  ended
September 30, 1999 and 1998,  respectively.  The increase during the 1999 period
resulted from an increase of pre-tax income.
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES

The Bank is required to maintain  minimum  levels of liquid assets as defined by
the Office of Thrift Supervision (the "OTS") regulations. The requirement, which
the OTS may vary from  time to time,  depending  upon  economic  conditions  and
deposit flows, is based upon a percentage of deposits and short-term borrowings.
The required ratio currently is 4.0%. The Bank's liquidity averaged 30.0% during
the month of September  1999. The Bank adjusts its liquidity  levels in order to
meet  funding  needs for deposit  outflows,  payment of real  estate  taxes from
escrow accounts on mortgage loans, repayment of borrowings, when applicable, and
loan  funding  commitments.  The  Bank  also  adjusts  its  liquidity  level  as
appropriate to meet its asset/liability objectives.

                                       11
<PAGE>
                      PULASKI BANCORP, INC. AND SUBSIDIARY
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                  ---------------------------------------------

LIQUIDITY AND CAPITAL RESOURCES (CONT'D.)

The Bank's primary sources of funds are deposits,  amortization  and prepayments
of loans and  mortgage-backed  securities  principal,  maturities  of investment
securities  and  funds  provided  by  operations.   While   scheduled  loan  and
mortgage-backed   securities   amortization   and  maturing  term  deposits  and
investment securities are relatively predictable sources of funds, deposit flows
and loan and  mortgage-backed  securities  prepayments are greatly influenced by
market interest rates, economic conditions and competition.  The levels of these
assets are dependent on the Bank's operating,  financing,  lending and investing
activities  during any given  period.  At September  30, 1999,  interest-bearing
deposits,  term deposits,  federal funds sold and securities  available for sale
totalled  $10.7  million.  The Bank has other sources of liquidity if a need for
additional  funds  arises,  including  advances  from the FHLB. At September 30,
1999, advances from FHLB amounted to $38.0 million.

During the nine months ended September 30, 1999 and 1998, cash dividends paid on
common stock amounted to $230,000 and $209,000, respectively. The mutual holding
company waived its right to receive dividends. If the mutual holding company had
not waived its right to receive dividends, the amount of such dividends,  during
the three and nine months ended September 30, 1999, would have been increased by
$89,000 and $267,000, respectively.

The Bank  anticipates  that it will have sufficient  funds available to meet its
current loan  commitments.  At  September  30,  1999,  the Bank had  outstanding
commitments to fund, originate and purchase loans of $29.8 million. Certificates
of  deposit  scheduled  to mature  in one year or less at  September  30,  1999,
totalled $97.5 million.  Management believes that, based upon its experience and
the Bank's  deposit flow history,  a  significant  portion of such deposits will
remain with the Bank.
<PAGE>
Under OTS  regulations,  three separate  measurements  of capital  adequacy (the
"Capital Rule") are required. The Capital Rule requires each savings institution
to maintain tangible capital equal to at least 1.5% and core capital equal to at
least 4.0% of its total adjusted assets.  The Capital Rule further requires each
savings  institution  to maintain  total  capital  equal to at least 8.0% of its
risk-weighted assets. The following table sets forth the Bank's capital position
at  September   30,  1999  as  compared  to  the  minimum   regulatory   capital
requirements:
<TABLE>
<CAPTION>
                                                                                                         To Be Well
                                                                                                     Capitalized Under
                                                                      Minimum Capital                Prompt Corrective
                                          Actual                        Requirements                 Actions Provisions
                                ----------------------------    -----------------------------   -----------------------------
                                   Amount          Ratio           Amount           Ratio          Amount           Ratio
                                -------------    -----------    --------------   ------------   --------------   ------------
                                                                   (Dollars in Thousands)
<S>                               <C>              <C>              <C>              <C>           <C>              <C>
Total Capital
 (to risk-weighted assets)        $ 23,546         21.99%           $ 8,566          8.00%         $ 10,707         10.00%

Tier 1 Capital
 (to risk-weighted assets)          22,503         21.02%                -              -             6,424          6.00%

Core (Tier 1) Capital
 (to adjusted total assets)         22,503          9.66%             9,318          4.00%           11,648          5.00%

Tangible Capital
 (to adjusted total assets)         22,503          9.66%             3,494          1.50%               -             -
</TABLE>
                                                        12

<PAGE>
                      PULASKI BANCORP, INC. AND SUBSIDIARY
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                  ---------------------------------------------

IMPACT OF THE YEAR 2000 ISSUE

The Year 2000 Issue is the result of computer  programs  being written using two
digits  rather  than four to  define  the  applicable  year.  Any of the  Bank's
computer  programs that would have date sensitive  software may recognize a date
during "00" as the year 1900 rather than the year 2000.  This could  result in a
system failure or miscalculations  causing disruptions of operations,  including
among other things a temporary inability to process  transactions,  or engage in
similar normal business activities.

The Bank has determined  that it will be required to modify or replace  portions
of its software so that its computer  systems will properly utilize dates beyond
December 31, 1999.  Mission critical  hardware and software has been deemed Year
2000 compliant.  Modifications to update or replace  non-critical  non-compliant
software is  scheduled  to begin on November  16,  1999 and is  estimated  to be
completed  by  November  30,  1999.  The  Bank  presently   believes  that  with
modifications to existing software and conversion to new software, the year 2000
Issue can be mitigated.  However,  if such modifications and conversions are not
made,  or are not  completed on a timely  basis,  the Year 2000 Issue may have a
material impact on the operations of the Bank.

The Bank has included and continues to include,  Year 2000 verbiage requirements
in its loan  documentation  for large borrowers since the third quarter of 1998.
Given the composition of the Bank's loan portfolio  which consists  primarily of
loans on residential  properties but also includes some commercial and mixed use
properties,  the Bank does not believe that it has a material amount of loans to
individuals or entities that are susceptible to Year 2000 issues such that their
noncompliance  with year 2000 issues will  materially  affect  their  ability to
repay such loans.

The Bank has also initiated  formal  communications  with all of its significant
suppliers and vendors to determine the extent to which the Bank is vulnerable to
those third parties' failure to remediate their own Year 2000 issues.  All third
parties have indicated their compliance or intended  compliance.  The Bank is in
the  process  of  reviewing  the Year 2000  compliance  of its third  party data
processing  vendor.  The vendor has completed  both proxy and end to end testing
with the Bank and also with other third party  providers of services to the Bank
with minor exceptions. The Bank completed testing with this vendor on October 3,
1999.
<PAGE>
At this time, the Bank is not aware of any problems that will lead to a material
loss of  revenue  related  to Year 2000  issue.  The Bank is in the  process  of
determining the costs and time  associated with the Year 2000 project.  The Bank
does not  expect  the total  cost of the Year 2000  project  to have a  material
adverse  impact on the  financial  condition or operations of the Bank. To date,
the Bank has incurred  approximately  $8,700  related to the  assessment of, and
preliminary efforts in connection with its Year 2000 project and the development
of a remediation  plan. It is anticipated  that additional  costs related to Y2K
compliance  will not  exceed  $15,000.  These  amounts do not  include  internal
Y2K-related  costs which are primarily  payroll  costs which are not  separately
tracked.  Because the Bank depends  substantially  on its  computer  systems and
those of third  parties,  the failure of these systems to be Year 2000 compliant
could  cause  substantial  disruption  of the Bank's  business  and could have a
material  adverse  financial  impact on the Bank.  Failure to resolve  Year 2000
issues presents the following risks to the Bank, which it believes  reflects its
most reasonably  likely  worst-case  scenario:  the Bank could lose customers to
other  financial  institutions,  resulting  in a loss of revenue,  if the Bank's
third-party service
                                       13


<PAGE>
                      PULASKI BANCORP, INC. AND SUBSIDIARY
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                  ---------------------------------------------

IMPACT OF THE YEAR 2000 ISSUE (CONT'D.)

bureau  is  unable  to  properly  process  customer  transactions;  governmental
agencies, such as the Federal Reserve Bank, and correspondent institutions could
fail to provide  funds to the Bank,  which  could  materially  impair the Bank's
liquidity and affect the Bank's  ability to fund loans and deposit  withdrawals;
concern on the part of  depositors  that Year 2000 issues could impair access to
their deposit  account  balances could result in the Bank  experiencing  deposit
outflows before December 31, 1999; and the Bank could incur increased  personnel
costs if  additional  staff is required to perform  functions  that  inoperative
systems would have  otherwise  performed.  There can be no  assurances  that the
Bank's Year 2000 plan will  effectively  address  the Year 2000 issue,  that the
bank's  estimates of the timing and costs of completing the plan will ultimately
be  accurate  or that the impact of any  failure of the Bank or its  third-party
vendors and service providers to be Year 2000 compliant will not have a material
adverse  effect on the  Bank's  business,  financial  condition  or  results  of
operations.

The Bank has prepared a contingency  plan in the event that there are any system
interruptions.  The contingency plan was tested during the third quarter of 1999
and the results of such testing were  satisfactory.  As part of the  contingency
plan, the Bank intends to engage  alternative  suppliers or other vendors if its
current significant  suppliers or other vendors fail to meet Year 2000 operating
requirements.  There  can be no  assurances,  however,  that  such  plan  or the
performances  by any of the Bank'  suppliers  and vendors  will be  effective to
remedy all potential problems.

PENDING LEGISLATION

Pending  legislation  designed to  modernize  the  regulation  of the  financial
services  industry  expands the ability of bank  holding  companies to affiliate
with other types of financial services companies such as insurance companies and
investment banking companies.  However,  the legislation provides that companies
that acquire control of a single savings  association after May 4, 1999 (or that
filed an  application  for that purpose after that date) are not entitled to the
unrestricted  activities formerly allowed for a unitary savings and loan holding
company. Rather, these companies will have authority to engage in the activities
permitted "a financial  holding  company" under the new  legislation,  including
insurance  and  securities-related  activities,  and  the  activities  currently
permitted for multiple savings and loan holding companies,  but generally not in
commercial   activities.   The   authority   for   unrestricted   activities  is
grandfathered  for  unitary  savings  and loan  holding  companies,  such as the
Company,  that  existed  prior  to May  4,  1999.  However,  the  authority  for
unrestricted  activities  would  not  apply to any  company  that  acquired  the
Company.
                                       14
<PAGE>
                      PULASKI BANCORP, INC. AND SUBSIDIARY
                          QUANTITATIVE AND QUALITATIVE
                          DISCLOSURES ABOUT MARKET RISK
                          -----------------------------

MANAGEMENT OF INTEREST RATE RISK

The  ability to  maximize  net  interest  income is largely  dependent  upon the
achievement  of a positive  interest  rate spread that can be  sustained  during
fluctuations  in  prevailing  interest  rates.  Interest rate  sensitivity  is a
measure  of the  difference  between  amounts  of  interest-earning  assets  and
interest-bearing  liabilities  which  either  reprice  or mature  within a given
period of time. The difference,  or the interest rate repricing "gap",  provides
an indication of the extent to which an institution's  interest rate spread will
be affected by changes in interest rates. A gap is considered  positive when the
amount of  interest-rate  sensitive  assets exceeds the amount of  interest-rate
sensitive   liabilities,   and  is  considered   negative  when  the  amount  of
interest-rate   sensitive   liabilities  exceeds  the  amount  of  interest-rate
sensitive  assets.  Generally,  during a period  of  rising  interest  rates,  a
negative  gap within  shorter  maturities  would  adversely  affect net interest
income,  while a  positive  gap within  shorter  maturities  would  result in an
increase in net interest income,  and during a period of falling interest rates,
a negative  gap within  shorter  maturities  would  result in an increase in net
interest income while a positive gap within shorter maturities would result in a
decrease in net interest income.

Because the Bank's  interest-bearing  liabilities which mature or reprice within
short periods exceed its interest-earning  assets with similar  characteristics,
material and prolonged  increases in interest rates  generally  would  adversely
affect net interest income,  while material and prolonged  decreases in interest
rates generally would have a positive effect on net interest income.

The Bank's  current  investment  strategy is to  maintain an overall  securities
portfolio that provides a source of liquidity and that contributes to the Bank's
overall   profitability   and  asset  mix  within  given  quality  and  maturity
considerations.  The securities  portfolio is concentrated in U.S.  Treasury and
federal government agency securities providing high asset quality to the overall
balance  sheet  mix.  Securities   classified  as  available  for  sale  provide
management  with the  flexibility  to make  adjustments  to the portfolio  given
changes in the economic or interest rate environment,  to fulfill  unanticipated
liquidity needs, or to take advantage of alternative investment opportunities.

NET PORTFOLIO VALUE

The Bank's interest rate sensitivity is monitored by management  through the use
of the OTS model which  estimates the change in the Bank's net  portfolio  value
("NPV") over a range of interest  rate  scenarios.  NPV is the present  value of
expected cash flows from assets,  liabilities,  and off-balance sheet contracts.
The NPV ratio,  under any interest rate scenario,  is defined as the NPV in that
scenario  divided by the market  value of assets in the same  scenario.  The OTS
produces its analysis based upon data submitted on the Bank's  quarterly  Thrift
Financial Reports.  The following table sets forth the Bank's NPV as of June 30,
1999, the most recent date the Bank's NPV was calculated by the OTS.

                                       15

<PAGE>

                      PULASKI BANCORP, INC. AND SUBSIDIARY
                          QUANTITATIVE AND QUALITATIVE
                          DISCLOSURES ABOUT MARKET RISK
                          -----------------------------

<TABLE>
<CAPTION>
                                                               NVP as
                                                        Percent of Portfolio
 Changes in              Net Portfolio Value              Value of Assets
Interest Rates    --------------------------------   -------------------------
in Basis Points               Dollar     Percent      NVP            Change
 (Rate Shock)      Amount     Change     Change       Ratio       Basis Points
 ------------     --------   --------  ----------    -------      ------------
                (Dollars in Thousands)

<S>               <C>         <C>          <C>         <C>          <C>
     300          $ 13,982    $10,923      (44)        7.31 %       (491)
     200            17,906      6,999      (28)        9.14         (307)
     100            21,656     (3,250)     (13)       10.82         (139)
   Static           24,905          -        -        12.22           -
    -100            27,384      2,479       10        13.23          102
    -200            29,441      4,536       18        14.04          183
    -300            31,727      6,821       27        14.91          270
</TABLE>


Certain  shortcomings are inherent in the methodology used in the above interest
rate risk  measurements.  Modeling  changes in NPV require the making of certain
assumptions  which may or may not reflect the manner in which actual  yields and
costs respond to changes in market interest rates. In this regard, the NPV model
presented  assumes that the composition of the Bank's interest  sensitive assets
and liabilities  existing at the beginning of a period remains constant over the
period being  measured  and also  assumes  that a particular  change in interest
rates is reflected  uniformly  across the yield curve regardless of the duration
to  maturity  or  repricing  of specific  assets and  liabilities.  Accordingly,
although  the NPV  measurements  and  net  interest  income  models  provide  an
indication of the Bank's  interest  rate risk exposure at a particular  point in
time,  such  measurements  are not  intended  to and do not  provide  a  precise
forecast  of the effect of changes  in market  interest  rates on the Bank's net
interest income and will differ from actual results.

                                       16
<PAGE>
                      PULASKI BANCORP, INC. AND SUBSIDIARY

                           PART II . OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS
        -----------------

         None.

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
        -----------------------------------------

         None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES
        -------------------------------

         None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
        ---------------------------------------------------

         None.

ITEM 5. OTHER INFORMATION
        -----------------

         None

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
        --------------------------------

        (a)      Exhibits:
        3.1      Stock Charter of Pulaski Bancorp, Inc. *
        3.2      Bylaws of Pulaski Bancorp, Inc. *
        4.0      Form  of  Common  Stock  Certificate  *
       11.0      Computation of earnings per share
       27.0      Financial Data Schedule


     * Incorporated herein by reference into this document from  the Exhibits to
       the Current Report on Form 8-K, filed July 12, 1999.

        (b)      Reports on form 8-K:

        On  July  12,  1999,  the  Company   filed  a Form  8-K,  reporting  the
        completion  of the  Pulaski  Savings   Bank's  reorganization  into  the
        two-tier mutual holding company   structure and the conversion of all of
        the  outstanding  shares of Pulaski   Savings  Bank's  common stock into
        shares of Pulaski Bancorp, Inc. common stock.

                                       17
<PAGE>
                                   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 BANCORP, INC.





Date:   November 12, 1999             By  /s/ Thomas Bentkowski
    -------------------------------       --------------------------------------
                                          Thomas Bentkowski
                                          President and Chief Executive Officer
                                          (Principal Executive Officer)



Date:   November 12, 1999             By: /s/ Lee Wagstaff
    -------------------------------       --------------------------------------
                                          Lee Wagstaff
                                          Vice President and Treasurer
                                          (Principal Financial and
                                          Accounting Officer)

                                       18