PCSB Financial Corporation (the “Company”) (NASDAQ: PCSB), parent
of PCSB Bank (the "Bank"), today announced net income of $3.0
million, or $0.19 per diluted share, for the three months ended
June 30, 2020 compared to $1.2 million, or $0.08 per diluted share,
for the three months ended March 31, 2020 and $1.7 million, or
$0.10 per diluted share, for the three months ended June 30, 2019.
Net income was $9.4 million, or $0.60 per diluted share, for the
year ended June 30, 2020 compared to $8.3 million, or $0.50 per
diluted share, for the year ended June 30, 2019. Provision for loan
losses for the three months and year ended June 30, 2020 was
$309,000 and $3.1 million, which includes $201,000 and $1.9
million, or $0.01 and $0.10 per diluted share, net of tax,
respectively, related to reserves established as a result of the
economic impacts of the COVID-19 pandemic.
On a non-GAAP basis, which excludes certain
nonrecurring items, the Company recorded adjusted net income of
$2.9 million, or $0.19 per diluted share, for the three months
ended June 30, 2020 compared to adjusted net income of $1.2
million, or $0.07 per diluted share, for the three months ended
March 31, 2020 and $1.6 million, or $0.10 per diluted share, for
the three months ended June 30, 2019. Adjusted net income for the
year ended June 30, 2020 was $8.8 million, or $0.56 per diluted
share, compared to $8.0 million, or $0.49 per diluted share, for
the previous year. Reconciliations of GAAP to non-GAAP measures
appear at the end of this release.
The Board of Directors declared a regular
quarterly cash dividend of $0.04 per share. The dividend is payable
on or about September 4, 2020 to stockholders of record as of the
close of business on August 21, 2020.
Fourth Quarter and Year-End
Highlights
- Earnings before income taxes and
provision for loan losses increased $1.1 million, or 36.2%, and
$3.3 million, or 28.0%, for the three months and year ended June
30, 2020, respectively, compared to the year ago periods.
- Net interest income was $11.5
million for the quarter, a 6.5% increase compared to the same
quarter last year. Full year net interest income was $46.7 million,
a 9.3% increase compared to the prior year.
- The net interest margin was 2.72%
for the quarter, a decrease from 2.94% for the same quarter last
year. Full year net interest margin was 2.89%, a decrease from
2.95% for the prior year.
- The adjusted efficiency ratio was
67.74% and 70.71% for the current year quarter and full year,
compared to 74.55% and 74.81% for the prior year quarter and full
year, respectively.
- Total loans receivable of $1.27
billion, representing year-over-year growth of $121.2 million, or
11.0%, excluding PPP loans.
- Non-performing loans decreased
$932,000 during the year to $1.8 million, equating to 0.14% of
gross loans receivable as of June 30, 2020
- Loan to deposit ratio was 91.82%,
an increase from 89.17% as of the same quarter last year.
President’s Comments
“I want to first thank our staff for their
unwavering commitment to our customers and our senior management
team and Board of Directors for their strong leadership through
this difficult period,” said Joseph D. Roberto, Chairman, President
and Chief Executive Officer of PCSB Financial Corporation.
“Although the COVID-19 pandemic continues to create unprecedented
challenges, we have continued to assist our customers in addressing
their financial needs, ensure the health and well-being of our
employees and support the communities in which we operate. The
actions we have taken, including loan payment deferrals, loan
modifications, fee waivers and loans funded through the Payroll
Protection Program (“PPP”) have all been part of our support for
the small businesses that are extremely important for the strength
of our local economy. Despite operating in a severe economic
recession, mainly affecting the third and fourth quarters of our
fiscal year, we are extremely pleased with our fourth quarter and
year-end results, which show both strong earnings and balance sheet
growth over the previous year periods.”
“Although credit quality remains extremely
strong, our allowance for loan losses incorporates our
acknowledgment of the potential credit deterioration resulting from
a prolonged downturn in the economy. We believe the Company’s
conservative underwriting will serve us well during these times as
we ended the fiscal year with a ratio of nonperforming assets to
total assets of 0.10%. Additionally, the $321.5 million of
loans we have in those industries expected to be most impacted by
COVID-19 are 98.8% secured by real estate with a weighted average
loan to value ratio under 55%.”
“While the pandemic’s final economic impact
remains uncertain, we believe that our robust capital and liquidity
positions will allow the Company to weather this crisis and
continue to deliver long-term growth and profitability for our
shareholders.”
COVID-19 Response
In response to the COVID-19 pandemic, the
Company has been active in providing assistance to our customers,
as well as assessing the risks and potential impact on the
Company’s financial position, including liquidity, credit quality,
earnings and capital. The following is a summary of these actions
through July 31, 2020:
Support for Consumer and Business
Customers
- Waive or reduce certain fees,
including overdraft fees, ATM fees, late charges and early CD
withdrawal penalties. The waiver of these fees and penalties ceased
on July 15, 2020.
- Moratorium on foreclosures and
certain credit bureau reporting.
- Consumer loan payment deferrals
granted for 109 loans totaling $30.7 million, representing
approximately 10.7% of the residential mortgage and home equity
line of credit portfolios, of which 9 loans totaling $2.4 million
have been granted a second payment deferral.
- Commercial loan payment deferrals
granted for 212 loans totaling $189.0 million, representing
approximately 19.2% of the commercial mortgage, commercial loan and
construction portfolios, of which 11 loans totaling $9.0 million
have been granted a second payment deferral.
- Funded $49.9 million in PPP loans,
averaging approximately $160,000 per loan, to over 300 small
businesses. The Company expects to earn approximately $868,000 of
fee income associated with originating these loans.
Risk Assessment and Financial
Impact
Liquidity
Management believes the Company’s liquidity is
strong. At June 30, 2020, cash and cash equivalents totaled $136.3
million and securities available for sale totaled $37.4 million.
Additionally, the Company had remaining borrowing capacity of
$246.0 million, comprising $112.3 million from the Federal Home
Loan Bank of New York, $108.7 million from the Federal Reserve Bank
of New York discount window, and $25.0 million in other lines of
credit. The Company experienced elevated draws on working capital
lines of credit and home equity lines of credit as of March 31,
2020, however line usage reduced over the fourth quarter. Lines of
credit have a usage rate of 25% as of June 30, 2020, compared with
35% as of March 31, 2020 and 32% as of June 30, 2019.
Capital
The Company’s capital position is also strong.
At June 30, 2020, all of the Bank’s regulatory capital ratios
significantly exceeded well-capitalized standards. Specifically,
the Bank’s Tier 1 Leverage Ratio was 12.51% as of June 30, 2020,
which represents 2 ½ times the well-capitalized regulatory standard
of 5%. Additionally, as of June 30, 2020, PCSB Financial
Corporation (parent of PCSB Bank) has $41.2 million of additional
funds that could be contributed to the Bank as capital, which would
result in a proforma Tier 1 Leverage ratio of 14.85%.
Credit Risk
The Company has taken actions to identify,
assess and address its COVID-19-related credit exposure. Many
factors are unknown, including the length of the resulting economic
shutdown imposed by New York State and other neighboring states,
the impacts of the government fiscal and monetary relief measures,
including payment deferral programs, as well as the long-term
impacts COVID-19 may have on our consumer and commercial borrowers.
The following table provides the Company’s commercial and
construction exposures to those industries the Company believes to
be the most directly and significantly impacted by the
pandemic:
Industry
Sector: |
Total Balance Outstanding as ofJune 30,
2020 (1)(amounts in thousands) |
|
% of Total Loans Receivable |
|
% Secured by Real Estate Collateral |
|
% Receiving Payment Assistance (4) |
|
Loan-to-Value % (5) |
|
Retail (2) |
$ |
140,086 |
|
|
11.1 |
% |
|
98.1 |
% |
|
31.9 |
% |
|
51.8 |
% |
Mixed-use with retail
component |
|
105,054 |
|
|
8.3 |
|
|
100.0 |
|
|
21.4 |
|
|
52.9 |
|
Hotels and accommodation services
(3) |
|
39,455 |
|
|
3.1 |
|
|
100.0 |
|
|
44.4 |
|
|
56.4 |
|
Food service (incl.
restaurants) |
|
26,596 |
|
|
2.1 |
|
|
96.2 |
|
|
49.1 |
|
|
56.2 |
|
Arts, entertainment and
recreation |
|
10,296 |
|
|
0.8 |
|
|
97.1 |
|
|
29.1 |
|
|
57.4 |
|
Total |
$ |
321,487 |
|
|
25.5 |
% |
|
98.8 |
% |
|
31.3 |
% |
|
53.3 |
% |
(1)
Excludes PPP loan
exposures. (2)
Includes $77.0 million of loans supported by properties with
credit-rated or anchored
tenants. (3)
Includes one construction relationship with an outstanding balance
of $3.7
million. (4)
Assistance is in association with COVID-19 payment
modification/deferral programs; 99.7% of loans receiving assistance
presented in the table above are secured by real estate, with a
weighted average loan-to-value ratio of 59.9% as of June 30,
2020. (5)
Generally based on collateral values upon origination.
As of June 30, 2020, the Company has no exposure
to leveraged lending, shared national credits, energy exploration
or credit cards.
Income Statement Summary
Net interest income was $11.5 million for the
quarter ended June 30, 2020, a decrease of $66,000, or 0.6%,
compared to the quarter ended March 31, 2020, and an increase of
$700,000, or 6.5%, compared to the quarter ended June 30, 2019. The
increase in net interest income compared to the prior year period
is primarily the result of an increase in average interest-earning
assets, as the Company experienced significant growth in average
loans receivable compared to the same quarter last year. However,
the effect of the growth was partially offset by a decrease in net
interest margin. Net interest income remained largely unchanged
compared to the prior quarter as lower market interest rates on
interest-earning asset yields were mostly offset by continued
decreases in the cost of interest-bearing liabilities.
The net interest margin was 2.72% for the
current quarter reflecting decreases of 17 basis points compared to
2.89% in the prior quarter and 22 basis points compared to 2.94% in
the prior year quarter. Despite continued asset growth and a more
profitable asset mix, along with a decrease in funding costs,
margin compression has resulted from significant decreases in
market interest rates over the past two quarters, stemming from
decreases in the fed funds rate in March, which has
disproportionately reduced asset yields.
The yield on interest-earning assets for the
current quarter was 3.52%, a 34 basis point decrease from the prior
quarter and a 29 basis point decrease from the prior year quarter.
Despite significant loan portfolio growth and a more profitable
asset mix, decreases in market interest rates driven most
significantly by fed funds rate cuts in March, the origination of
lower yielding PPP loans, as well as the significant increases in
liquidity over the last quarter has decreased asset yields.
The cost of interest-bearing deposits was 0.97%
for the current quarter, a decrease of 21 basis points from 1.18%
in the prior quarter and 16 basis points from 1.13% in the prior
year quarter. The Company had experienced a shift in deposit mix
over the past several quarters as customers in generally lower rate
savings products moved to generally higher rate money market and
time deposits, however the pace of this shift has slowed and
reversed in the most recent quarter. In response to the significant
decrease in market interest rates in mid-March, deposit rate
reductions were implemented, the effects of which have begun to be
realized in fourth quarter results. At June 30, 2020, the weighted
average cost of interest-bearing deposits was 0.85%.
The provision for loan losses was $309,000 for
the three months ended June 30, 2020 compared to $2.0 million in
the prior quarter and $737,000 for the same quarter in 2019. The
current quarter provision includes a $201,000 increase in
qualitative reserves as the Company continues to assess the
economic impacts the COVID-19 pandemic has had on our local economy
and loan portfolio. In total, the Company has provided for an
additional $1.9 million in qualitative reserves over the last 2
quarters in response to the pandemic, equal to 0.16% of total loans
(excluding PPP loans) and resulted in a 28.4% increase to allowance
for loan losses. The allowance for loan loss as of June 30, 2020
was 0.71% of total loans (excluding PPP loans). Charge-offs, net of
recoveries, were $17,000 for the three months ended June 30, 2020
compared to recoveries, net of charge-offs, of $122,000 for the
three months ended March 31, 2020 and charge-offs, net of
recoveries, of $18,000 for the three months ended June 30, 2019.
Loans classified as substandard or doubtful totaled $7.3 million,
an increase of $2.4 million, or 47.9%, from March 31, 2020, but
decreased $1.1 million, or 13.3%, from June 30, 2019. The increase
in classified loans from the prior quarter was caused primarily by
the downgrade of one commercial real estate relationship, which had
a loan-to-value ratio of 51.0%. Non-performing loans as a percent
of total loans receivable was 0.14% as of June 30, 2020, a decrease
from 0.15% as of March 31, 2020 and from 0.25% as of June 30,
2019.
Noninterest income of $1.2 million for the three
months ended June 30, 2020 increased $597,000 compared to the three
months ended March 31, 2020 and increased $215,000 when compared to
the prior year period. The increase over the linked quarter was due
to an $814,000 increase in swap income which was partially offset
by decreases of $139,000 in fees and service charges and $79,000 in
all other income. Noninterest income increased $215,000 compared to
the prior year quarter, as a $453,000 increase in swap income was
partially offset by a $225,000 decrease in fees and service
charges. The reduction in fees and service charge income was due to
the combined effects of reduced customer transaction activity as a
result of “stay-at-home” orders issued by New York and surrounding
states and our waiver of certain overdraft fees, ATM usage fees,
wire and CD early withdrawal fees in response to COVID-19, as
required by emergency regulations promulgated by the New York State
Department of Financial Services. The Company began waiving
such fees in accordance with this guidance on or about March 20,
2020, with approximately $175,000 in fees waived or lost in the
current quarter. The Company reinstituted these fees on July 15,
2020, however, we will continue to be subject to some level of
reduced customer activity and waivers based on customer-specific
circumstances.
Noninterest expense of $8.5 million for the
three months ended June 30, 2020 were unchanged compared to the
three months ended March 31, 2020 and decreased $175,000 compared
to the same period in 2019. Compared to the linked quarter, a
$283,000 decrease in salaries and benefits expense, was offset by
higher professional fees and FDIC assessment costs. The $175,000
decrease from the prior year period was caused primarily by
decreases of $488,000 in retirement costs and $110,000 in all other
expenses, partially offset by increases in salaries and benefits of
$229,000 and professional fees of $194,000. During the current
quarter, the Bank applied small bank assessment credits of $22,000
which partially offset its FDIC assessment for the current quarter.
All available credits have been applied as of June 30, 2020.
The effective income tax rate was 22.0% for the
three months ended June 30, 2020, as compared to 26.2% for the
three months ended June 30, 2019. The Company expects future
effective tax rates to remain consistent with that for the year
ended June 30, 2020.
Balance Sheet Summary
Total assets increased $154.4 million to $1.79
billion at June 30, 2020 from $1.64 billion at June 30, 2019.
This increase was primarily due to increases of $167.8 million, or
15.4%, in net loans receivable, $76.3 million in cash and cash
equivalents and $9.1 million in premises and equipment, partially
offset by a decrease of $104.6 million in total investment
securities. The $167.8 million increase in net loans receivable was
the result of increases in commercial mortgages of $155.7 million,
or 23.9%, and commercial loans of $30.6 million, or 22.9%, while
residential mortgages, home equity lines of credit and construction
loans decreased $9.8 million, $3.4 million and $2.2 million,
respectively, compared to the previous year. The increase in
commercial loans includes $49.6 million of PPP loans originated in
the fourth quarter. The increase in cash and cash equivalents is a
result of a significant increase in deposits, partially from the
deposit of PPP loan funds, and reduced loan originations
experienced in the fourth quarter as a result of the COVID-19
pandemic.
Total liabilities increased $161.9 million to
$1.52 billion at June 30, 2020 from $1.36 billion at June 30,
2019. This increase was primarily due to a $148.2 million, or
12.0%, increase in deposits and escrow accounts and a $18.9 million
increase in other liabilities, primarily as a result of recording a
$12.0 million lease liability (a related lease asset was also
recorded as part of premises and equipment) associated with the
adoption of new lease accounting standards, partially offset by a
$5.1 million decrease in FHLB advances. A majority of the growth in
deposits, $93.7 million or 7.3%, occurred in the fourth quarter,
likely the result of numerous economic trends associated with
COVID-19, including reduced consumer and commercial spending,
various forms of government stimulus and poor stock market
performance.
Total shareholders’ equity decreased $7.6
million to $273.7 million at June 30, 2020 from $281.3 million at
June 30, 2019. This decrease was primarily due to the repurchase of
$18.1 million (905,902 shares) of common stock, $2.6 million of
cash dividends declared and paid and $1.3 million of other
comprehensive loss, partially offset by net income of $9.4 million,
as well as $5.0 million of stock-based compensation and reduction
in unearned ESOP shares for plan shares earned during the
period.
At June 30, 2020, the Company’s book value per
share and tangible book value per share were $16.20 and $15.82,
respectively, compared to $15.80 and $15.44, respectively, at June
30, 2019. Reconciliations of book value per share (GAAP measure) to
tangible book value per share (non-GAAP measure) appear at the end
of this release. At June 30, 2020, the Bank was considered “well
capitalized” under applicable regulatory guidelines.
About PCSB Financial Corporation and
PCSB Bank
PCSB Financial Corporation is the bank holding
company for PCSB Bank. PCSB Bank is a New York-chartered commercial
bank that has served the banking needs of its customers in the
Lower Hudson Valley of New York State since 1871. It operates from
its executive offices/headquarters and 15 branch offices located in
Dutchess, Putnam, Rockland and Westchester Counties in New
York.
This News Release contains a number of
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These statements may
be identified by use of words such as "anticipate," "believe,"
"could," "estimate," "expect," "intend," "may," "outlook," "plan,"
"potential," "predict," "project," "should," "will," "would" and
similar terms and phrases, including references to assumptions.
Forward-looking statements are based upon
various assumptions and analyses made by the Company in light of
management's experience and its perception of historical trends,
current conditions and expected future developments, as well as
other factors it believes are appropriate under the circumstances.
These statements are not guarantees of future performance and are
subject to risks, uncertainties and other factors (many of which
are beyond the Company's control) that could cause actual results
to differ materially from future results expressed or implied by
such forward-looking statements. These factors include, without
limitation, the following: the duration, extent and severity of the
recent COVID-19 pandemic, including its impact on our business and
operations, including the impact of lost fee revenue and operating
expenses, as well as its effect on our customers and issuers of
securities, including their ability to make timely payments
on obligations, service providers and on economies and markets more
generally, the timing and occurrence or non-occurrence of events
may be subject to circumstances beyond the Company’s control; there
may be increases in competitive pressure among financial
institutions or from non-financial institutions; changes in the
interest rate environment may reduce interest margins; changes in
deposit flows, loan demand or real estate values may adversely
affect the Company's business; changes in accounting principles,
policies or guidelines may cause the Company’s financial condition
to be perceived differently; changes in corporate and/or individual
income tax laws may adversely affect the Company's financial
condition or results of operations; general economic conditions,
either nationally or locally in some or all areas in which the
Company conducts business, or conditions in the securities markets
or the banking industry may be less favorable than the Company
currently anticipates; legislation or regulatory changes may
adversely affect the Company’s business; technological changes may
be more difficult or expensive than the Company anticipates;
success or consummation of new business initiatives may be more
difficult or expensive than the Company anticipates; or litigation
or other matters before regulatory agencies, whether currently
existing or commencing in the future, may delay the occurrence or
non-occurrence of events longer than the Company anticipates. The
Company assumes no obligation to update any forward-looking
statements except as may be required by applicable law or
regulation.
Contact: Joseph D.
RobertoChairman, President and Chief Executive
Officer(914) 248-7272
PCSB Financial Corporation and
SubsidiariesConsolidated Balance Sheets
(unaudited)(amounts in thousands, except share and per
share data)
|
|
June 30, |
|
|
June 30, |
|
|
|
2020 |
|
|
2019 |
|
ASSETS |
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
135,045 |
|
|
$ |
58,756 |
|
Federal funds sold |
|
|
1,257 |
|
|
|
1,273 |
|
Cash and cash equivalents |
|
|
136,302 |
|
|
|
60,029 |
|
Held to maturity debt securities, at amortized cost (fair
value of $281,497 and $346,243, respectively) |
|
|
275,772 |
|
|
|
345,545 |
|
Available for sale debt securities, at fair value |
|
|
37,426 |
|
|
|
72,228 |
|
Total investment securities |
|
|
313,198 |
|
|
|
417,773 |
|
Loans receivable, net of allowance for loan losses of $8,639 and
$5,664, respectively |
|
|
1,260,947 |
|
|
|
1,093,121 |
|
Accrued interest receivable |
|
|
6,880 |
|
|
|
4,797 |
|
FHLB stock |
|
|
6,308 |
|
|
|
6,255 |
|
Premises and equipment, net |
|
|
20,853 |
|
|
|
11,802 |
|
Deferred tax asset, net |
|
|
3,129 |
|
|
|
2,478 |
|
Foreclosed real estate |
|
|
— |
|
|
|
1,158 |
|
Bank-owned life insurance |
|
|
25,019 |
|
|
|
24,291 |
|
Goodwill |
|
|
6,106 |
|
|
|
6,106 |
|
Other intangible assets |
|
|
229 |
|
|
|
323 |
|
Other assets |
|
|
12,958 |
|
|
|
9,446 |
|
Total assets |
|
$ |
1,791,929 |
|
|
$ |
1,637,579 |
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
$ |
1,181,357 |
|
|
$ |
1,084,442 |
|
Non interest-bearing deposits |
|
|
191,898 |
|
|
|
141,379 |
|
Total deposits |
|
|
1,373,255 |
|
|
|
1,225,821 |
|
Mortgage escrow funds |
|
|
10,123 |
|
|
|
9,355 |
|
Advances from Federal Home Loan Bank |
|
|
106,089 |
|
|
|
111,216 |
|
Other liabilities |
|
|
28,749 |
|
|
|
9,880 |
|
Total liabilities |
|
|
1,518,216 |
|
|
|
1,356,272 |
|
Commitments and contingencies |
|
|
- |
|
|
|
- |
|
Preferred stock ($0.01 par value, 10,000,000 shares authorized, no
shares issued or outstanding as of June 30, 2020 and June 30, 2019,
respectively) |
|
|
- |
|
|
|
- |
|
Common stock ($0.01 par value, 200,000,000 shares authorized,
18,712,295 shares issued as of June 30, 2020 and June 30, 2019, and
16,898,137 and 17,804,039 shares outstanding as of June 30, 2020
and June 30, 2019, respectively) |
|
|
187 |
|
|
|
187 |
|
Additional paid in capital |
|
|
186,200 |
|
|
|
182,129 |
|
Retained earnings |
|
|
141,288 |
|
|
|
134,500 |
|
Unearned compensation - ESOP |
|
|
(11,145 |
) |
|
|
(12,114 |
) |
Accumulated other comprehensive loss, net of income taxes |
|
|
(6,403 |
) |
|
|
(5,090 |
) |
Treasury stock, at cost (1,814,158 and 908,256 shares as of June
30, 2020 and June 30, 2019, respectively) |
|
|
(36,414 |
) |
|
|
(18,305 |
) |
Total shareholders' equity |
|
|
273,713 |
|
|
|
281,307 |
|
Total liabilities and shareholders' equity |
|
$ |
1,791,929 |
|
|
$ |
1,637,579 |
|
PCSB Financial Corporation and
SubsidiariesConsolidated Statements of Operations
(unaudited)(amounts in thousands, except share and per
share data)
|
|
Three Months
Ended |
|
|
Year
Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Interest and dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable |
|
$ |
12,808 |
|
|
$ |
10,987 |
|
|
$ |
52,107 |
|
|
$ |
41,619 |
|
Investment securities |
|
|
1,896 |
|
|
|
2,609 |
|
|
|
8,870 |
|
|
|
10,022 |
|
Federal funds and other |
|
|
117 |
|
|
|
356 |
|
|
|
933 |
|
|
|
1,806 |
|
Total interest and dividend income |
|
|
14,821 |
|
|
|
13,952 |
|
|
|
61,910 |
|
|
|
53,447 |
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and escrow interest |
|
|
2,848 |
|
|
|
3,005 |
|
|
|
12,775 |
|
|
|
10,177 |
|
FHLB advances |
|
|
514 |
|
|
|
188 |
|
|
|
2,456 |
|
|
|
566 |
|
Total interest expense |
|
|
3,362 |
|
|
|
3,193 |
|
|
|
15,231 |
|
|
|
10,743 |
|
Net interest
income |
|
|
11,459 |
|
|
|
10,759 |
|
|
|
46,679 |
|
|
|
42,704 |
|
Provision for loan losses |
|
|
309 |
|
|
|
737 |
|
|
|
3,064 |
|
|
|
808 |
|
Net interest income after
provision for loan losses |
|
|
11,150 |
|
|
|
10,022 |
|
|
|
43,615 |
|
|
|
41,896 |
|
Noninterest
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees and service charges |
|
|
227 |
|
|
|
452 |
|
|
|
1,397 |
|
|
|
1,763 |
|
Swap income |
|
|
814 |
|
|
|
361 |
|
|
|
984 |
|
|
|
507 |
|
Bank-owned life insurance |
|
|
129 |
|
|
|
134 |
|
|
|
528 |
|
|
|
544 |
|
Gains on sales of securities,
net |
|
|
- |
|
|
|
7 |
|
|
|
38 |
|
|
|
62 |
|
Other |
|
|
7 |
|
|
|
8 |
|
|
|
122 |
|
|
|
226 |
|
Total noninterest income |
|
|
1,177 |
|
|
|
962 |
|
|
|
3,069 |
|
|
|
3,102 |
|
Noninterest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits |
|
|
5,499 |
|
|
|
5,270 |
|
|
|
22,934 |
|
|
|
21,611 |
|
Occupancy and equipment |
|
|
1,264 |
|
|
|
1,320 |
|
|
|
5,223 |
|
|
|
5,185 |
|
Communications and data
processing |
|
|
502 |
|
|
|
523 |
|
|
|
2,061 |
|
|
|
1,953 |
|
Professional fees |
|
|
563 |
|
|
|
369 |
|
|
|
1,739 |
|
|
|
1,551 |
|
Postage, printing, stationery and
supplies |
|
|
145 |
|
|
|
132 |
|
|
|
584 |
|
|
|
586 |
|
Advertising |
|
|
100 |
|
|
|
- |
|
|
|
400 |
|
|
|
349 |
|
Amortization of intangible
assets |
|
|
21 |
|
|
|
25 |
|
|
|
94 |
|
|
|
110 |
|
FDIC assessment |
|
|
87 |
|
|
|
99 |
|
|
|
87 |
|
|
|
421 |
|
Loss on receivable |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
90 |
|
Other operating expenses |
|
|
352 |
|
|
|
970 |
|
|
|
1,512 |
|
|
|
2,138 |
|
Total noninterest expense |
|
|
8,533 |
|
|
|
8,708 |
|
|
|
34,634 |
|
|
|
33,895 |
|
Net income before income
tax expense |
|
|
3,794 |
|
|
|
2,276 |
|
|
|
12,050 |
|
|
|
11,004 |
|
Income tax expense |
|
|
834 |
|
|
|
597 |
|
|
|
2,691 |
|
|
|
2,686 |
|
Net income |
|
$ |
2,960 |
|
|
$ |
1,679 |
|
|
$ |
9,359 |
|
|
$ |
8,318 |
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.19 |
|
|
$ |
0.10 |
|
|
$ |
0.60 |
|
|
$ |
0.50 |
|
Diluted |
|
$ |
0.19 |
|
|
$ |
0.10 |
|
|
$ |
0.60 |
|
|
$ |
0.50 |
|
Weighted average common
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
15,334,098 |
|
|
|
16,033,505 |
|
|
|
15,648,627 |
|
|
|
16,492,760 |
|
Diluted |
|
|
15,334,098 |
|
|
|
16,099,846 |
|
|
|
15,674,169 |
|
|
|
16,527,117 |
|
PCSB Financial Corporation and
SubsidiariesNet Interest Margin Analysis
(unaudited)(dollar amounts in thousands)
|
Three Months Ended |
|
|
June 30, 2020 |
|
|
March 31, 2020 |
|
|
June 30, 2019 |
|
|
Average Balance |
|
|
Interest / Dividends |
|
Average Rate |
|
|
Average Balance |
|
|
Interest / Dividends |
|
Average Rate |
|
|
Average Balance |
|
|
Interest / Dividends |
|
Average Rate |
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable |
$ |
1,263,600 |
|
|
$ |
12,808 |
|
|
4.06 |
% |
|
$ |
1,209,920 |
|
|
$ |
13,114 |
|
|
4.34 |
% |
|
$ |
970,707 |
|
|
$ |
10,987 |
|
|
4.53 |
% |
Investment securities |
|
304,383 |
|
|
|
1,896 |
|
|
2.49 |
|
|
|
323,942 |
|
|
|
2,003 |
|
|
2.47 |
|
|
|
436,903 |
|
|
|
2,609 |
|
|
2.39 |
|
Other interest-earning
assets |
|
115,652 |
|
|
|
117 |
|
|
0.41 |
|
|
|
56,242 |
|
|
|
217 |
|
|
1.56 |
|
|
|
55,988 |
|
|
|
356 |
|
|
2.55 |
|
Total interest-earning
assets |
|
1,683,635 |
|
|
|
14,821 |
|
|
3.52 |
|
|
|
1,590,104 |
|
|
|
15,334 |
|
|
3.86 |
|
|
|
1,463,598 |
|
|
|
13,952 |
|
|
3.81 |
|
Non-interest-earning assets |
|
70,120 |
|
|
|
|
|
|
|
|
|
|
67,889 |
|
|
|
|
|
|
|
|
|
|
56,387 |
|
|
|
|
|
|
|
|
Total assets |
$ |
1,753,755 |
|
|
|
|
|
|
|
|
|
$ |
1,657,993 |
|
|
|
|
|
|
|
|
|
$ |
1,519,985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW accounts |
$ |
140,954 |
|
|
|
79 |
|
|
0.23 |
|
|
$ |
125,103 |
|
|
|
66 |
|
|
0.21 |
|
|
$ |
120,577 |
|
|
|
53 |
|
|
0.18 |
|
Money market accounts |
|
218,023 |
|
|
|
289 |
|
|
0.53 |
|
|
|
179,230 |
|
|
|
423 |
|
|
0.96 |
|
|
|
141,455 |
|
|
|
428 |
|
|
1.21 |
|
Savings accounts and escrow |
|
343,472 |
|
|
|
192 |
|
|
0.22 |
|
|
|
342,254 |
|
|
|
209 |
|
|
0.25 |
|
|
|
373,238 |
|
|
|
239 |
|
|
0.26 |
|
Time deposits |
|
470,279 |
|
|
|
2,288 |
|
|
1.95 |
|
|
|
480,233 |
|
|
|
2,570 |
|
|
2.17 |
|
|
|
434,073 |
|
|
|
2,285 |
|
|
2.11 |
|
Total interest-bearing
deposits |
|
1,172,728 |
|
|
|
2,848 |
|
|
0.97 |
|
|
|
1,126,820 |
|
|
|
3,268 |
|
|
1.18 |
|
|
|
1,069,343 |
|
|
|
3,005 |
|
|
1.13 |
|
FHLB advances |
|
106,099 |
|
|
|
514 |
|
|
1.94 |
|
|
|
98,364 |
|
|
|
541 |
|
|
2.23 |
|
|
|
29,283 |
|
|
|
188 |
|
|
2.57 |
|
Total interest-bearing
liabilities |
|
1,278,827 |
|
|
|
3,362 |
|
|
1.05 |
|
|
|
1,225,184 |
|
|
|
3,809 |
|
|
1.26 |
|
|
|
1,098,626 |
|
|
|
3,193 |
|
|
1.16 |
|
Non-interest-bearing
deposits |
|
176,146 |
|
|
|
|
|
|
|
|
|
|
137,930 |
|
|
|
|
|
|
|
|
|
|
133,919 |
|
|
|
|
|
|
|
|
Other non-interest-bearing
liabilities |
|
23,505 |
|
|
|
|
|
|
|
|
|
|
19,706 |
|
|
|
|
|
|
|
|
|
|
7,403 |
|
|
|
|
|
|
|
|
Total liabilities |
|
1,478,478 |
|
|
|
|
|
|
|
|
|
|
1,382,820 |
|
|
|
|
|
|
|
|
|
|
1,239,948 |
|
|
|
|
|
|
|
|
Total shareholders' equity |
|
275,277 |
|
|
|
|
|
|
|
|
|
|
275,173 |
|
|
|
|
|
|
|
|
|
|
280,037 |
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
1,753,755 |
|
|
|
|
|
|
|
|
|
$ |
1,657,993 |
|
|
|
|
|
|
|
|
|
$ |
1,519,985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
11,459 |
|
|
|
|
|
|
|
|
|
$ |
11,525 |
|
|
|
|
|
|
|
|
|
$ |
10,759 |
|
|
|
|
Interest rate spread (1) |
|
|
|
|
|
|
|
|
2.47 |
|
|
|
|
|
|
|
|
|
|
2.60 |
|
|
|
|
|
|
|
|
|
|
2.65 |
|
Net interest margin (2) |
|
|
|
|
|
|
|
|
2.72 |
|
|
|
|
|
|
|
|
|
|
2.89 |
|
|
|
|
|
|
|
|
|
|
2.94 |
|
Average interest-earning assets
to interest-bearing liabilities |
|
131.65 |
% |
|
|
|
|
|
|
|
|
|
129.78 |
% |
|
|
|
|
|
|
|
|
|
133.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net interest rate spread represents the
difference between the average yield on average interest-earning
assets and the average cost of average interest-bearing
liabilities. |
|
(2) Net interest margin represents annualized net
interest income divided by average interest-earning assets. |
|
PCSB Financial Corporation and
SubsidiariesNet Interest Margin Analysis
(unaudited)(dollar amounts in thousands)
|
Year Ended June 30, |
|
|
2020 |
|
|
2019 |
|
|
Average Balance |
|
|
Interest / Dividends |
|
|
Average Rate |
|
|
Average Balance |
|
|
Interest / Dividends |
|
|
Average Rate |
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable |
$ |
1,198,449 |
|
|
$ |
52,107 |
|
|
|
4.35 |
% |
|
$ |
924,182 |
|
|
$ |
41,619 |
|
|
|
4.50 |
% |
Investment securities |
|
346,569 |
|
|
|
8,870 |
|
|
|
2.56 |
|
|
|
444,024 |
|
|
|
10,022 |
|
|
|
2.26 |
|
Other interest-earning
assets |
|
69,371 |
|
|
|
933 |
|
|
|
1.34 |
|
|
|
77,303 |
|
|
|
1,806 |
|
|
|
2.34 |
|
Total interest-earning
assets |
|
1,614,389 |
|
|
|
61,910 |
|
|
|
3.83 |
|
|
|
1,445,509 |
|
|
|
53,447 |
|
|
|
3.70 |
|
Non-interest-earning assets |
|
69,268 |
|
|
|
|
|
|
|
|
|
|
|
57,039 |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
1,683,657 |
|
|
|
|
|
|
|
|
|
|
$ |
1,502,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW accounts |
$ |
127,091 |
|
|
|
270 |
|
|
|
0.21 |
|
|
$ |
118,286 |
|
|
|
210 |
|
|
|
0.18 |
|
Money market accounts |
|
177,052 |
|
|
|
1,647 |
|
|
|
0.93 |
|
|
|
107,680 |
|
|
|
1,216 |
|
|
|
1.13 |
|
Savings accounts and escrow |
|
350,897 |
|
|
|
866 |
|
|
|
0.25 |
|
|
|
411,251 |
|
|
|
1,019 |
|
|
|
0.25 |
|
Time deposits |
|
469,336 |
|
|
|
9,992 |
|
|
|
2.13 |
|
|
|
414,676 |
|
|
|
7,732 |
|
|
|
1.86 |
|
Total interest-bearing
deposits |
|
1,124,376 |
|
|
|
12,775 |
|
|
|
1.14 |
|
|
|
1,051,893 |
|
|
|
10,177 |
|
|
|
0.97 |
|
FHLB advances |
|
111,008 |
|
|
|
2,456 |
|
|
|
2.21 |
|
|
|
24,117 |
|
|
|
566 |
|
|
|
2.34 |
|
Total interest-bearing
liabilities |
|
1,235,384 |
|
|
|
15,231 |
|
|
|
1.23 |
|
|
|
1,076,010 |
|
|
|
10,743 |
|
|
|
1.00 |
|
Non-interest-bearing
deposits |
|
148,262 |
|
|
|
|
|
|
|
|
|
|
|
133,143 |
|
|
|
|
|
|
|
|
|
Other non-interest-bearing
liabilities |
|
21,563 |
|
|
|
|
|
|
|
|
|
|
|
8,108 |
|
|
|
|
|
|
|
|
|
Total liabilities |
|
1,405,209 |
|
|
|
|
|
|
|
|
|
|
|
1,217,261 |
|
|
|
|
|
|
|
|
|
Total shareholders' equity |
|
278,448 |
|
|
|
|
|
|
|
|
|
|
|
285,287 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
1,683,657 |
|
|
|
|
|
|
|
|
|
|
$ |
1,502,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
46,679 |
|
|
|
|
|
|
|
|
|
|
$ |
42,704 |
|
|
|
|
|
Interest rate spread (1) |
|
|
|
|
|
|
|
|
|
2.60 |
|
|
|
|
|
|
|
|
|
|
|
2.70 |
|
Net interest margin (2) |
|
|
|
|
|
|
|
|
|
2.89 |
|
|
|
|
|
|
|
|
|
|
|
2.95 |
|
Average interest-earning assets
to interest-bearing liabilities |
|
130.68 |
% |
|
|
|
|
|
|
|
|
|
|
134.34 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net interest rate spread represents the
difference between the average yield on average interest-earning
assets and the average cost of average interest-bearing
liabilities. |
|
(2) Net interest margin represents net interest
income divided by average interest-earning assets. |
|
PCSB Financial Corporation and
SubsidiariesCondensed Financial Information
(unaudited)(amounts in thousands, except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
June 30,2020 |
|
March 31,2020 |
|
December 31,2019 |
|
September 30,2019 |
|
June 30,2019 |
|
Condensed
Balance Sheets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
136,302 |
|
$ |
84,912 |
|
$ |
62,835 |
|
$ |
37,797 |
|
$ |
60,029 |
|
Total investment securities |
|
313,198 |
|
|
309,618 |
|
|
327,835 |
|
|
379,007 |
|
|
417,773 |
|
Loans receivable, net |
|
1,260,947 |
|
|
1,220,682 |
|
|
1,183,740 |
|
|
1,163,254 |
|
|
1,093,121 |
|
Other assets |
|
81,482 |
|
|
80,663 |
|
|
74,757 |
|
|
78,550 |
|
|
66,656 |
|
Total assets |
$ |
1,791,929 |
|
$ |
1,695,875 |
|
$ |
1,649,167 |
|
$ |
1,658,608 |
|
$ |
1,637,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits and escrow |
$ |
1,383,378 |
|
$ |
1,287,510 |
|
$ |
1,261,663 |
|
$ |
1,241,458 |
|
$ |
1,235,176 |
|
Advances from Federal Home Loan
Bank |
|
106,089 |
|
|
106,121 |
|
|
86,153 |
|
|
111,185 |
|
|
111,216 |
|
Other liabilities |
|
28,749 |
|
|
29,827 |
|
|
21,512 |
|
|
24,443 |
|
|
9,880 |
|
Total liabilities |
|
1,518,216 |
|
|
1,423,458 |
|
|
1,369,328 |
|
|
1,377,086 |
|
|
1,356,272 |
|
Total shareholders' equity |
|
273,713 |
|
|
272,417 |
|
|
279,839 |
|
|
281,522 |
|
|
281,307 |
|
Total liabilities and
shareholders' equity |
$ |
1,791,929 |
|
$ |
1,695,875 |
|
$ |
1,649,167 |
|
$ |
1,658,608 |
|
$ |
1,637,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Year Ended |
|
|
June 30,2020 |
|
March 31,2020 |
|
December 31,2019 |
|
September 30,2019 |
|
June 30,2019 |
|
June 30,2020 |
|
June 30,2019 |
|
Condensed
Income Statements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
$ |
14,821 |
|
$ |
15,334 |
|
$ |
15,729 |
|
$ |
16,026 |
|
$ |
13,952 |
|
$ |
61,910 |
|
$ |
53,447 |
|
Interest expense |
|
3,362 |
|
|
3,809 |
|
|
4,032 |
|
|
4,028 |
|
|
3,193 |
|
|
15,231 |
|
|
10,743 |
|
Net interest income |
|
11,459 |
|
|
11,525 |
|
|
11,697 |
|
|
11,998 |
|
|
10,759 |
|
|
46,679 |
|
|
42,704 |
|
Provision for loan losses |
|
309 |
|
|
2,008 |
|
|
412 |
|
|
335 |
|
|
737 |
|
|
3,064 |
|
|
808 |
|
Noninterest income |
|
1,177 |
|
|
580 |
|
|
547 |
|
|
765 |
|
|
962 |
|
|
3,069 |
|
|
3,102 |
|
Noninterest expense |
|
8,533 |
|
|
8,520 |
|
|
8,794 |
|
|
8,787 |
|
|
8,708 |
|
|
34,634 |
|
|
33,994 |
|
Income before income tax
expense |
|
3,794 |
|
|
1,577 |
|
|
3,038 |
|
|
3,641 |
|
|
2,276 |
|
|
12,050 |
|
|
11,004 |
|
Income tax expense |
|
834 |
|
|
360 |
|
|
685 |
|
|
812 |
|
|
597 |
|
|
2,691 |
|
|
2,686 |
|
Net income |
$ |
2,960 |
|
$ |
1,217 |
|
$ |
2,353 |
|
$ |
2,829 |
|
$ |
1,679 |
|
$ |
9,359 |
|
$ |
8,318 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.19 |
|
$ |
0.08 |
|
$ |
0.15 |
|
$ |
0.18 |
|
$ |
0.10 |
|
$ |
0.60 |
|
$ |
0.50 |
|
Diluted |
$ |
0.19 |
|
$ |
0.08 |
|
$ |
0.14 |
|
$ |
0.18 |
|
$ |
0.10 |
|
$ |
0.60 |
|
$ |
0.50 |
|
PCSB Financial Corporation and
SubsidiariesSelected Financial Data
(unaudited)
|
Quarter Ended |
|
Year Ended |
|
|
June 30,2020 |
|
March 31,2020 |
|
December 31,2019 |
|
September 30,2019 |
|
June 30,2019 |
|
June 30,2020 |
|
June 30,2019 |
|
Performance
Ratios (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
0.68 |
% |
|
0.29 |
% |
|
0.57 |
% |
|
0.68 |
% |
|
0.44 |
% |
|
0.56 |
% |
|
0.55 |
% |
Return on average equity |
|
4.30 |
% |
|
1.77 |
% |
|
3.35 |
% |
|
4.01 |
% |
|
2.40 |
% |
|
3.36 |
% |
|
2.92 |
% |
Interest rate spread |
|
2.47 |
% |
|
2.60 |
% |
|
2.63 |
% |
|
2.72 |
% |
|
2.65 |
% |
|
2.60 |
% |
|
2.70 |
% |
Net interest margin |
|
2.72 |
% |
|
2.89 |
% |
|
2.93 |
% |
|
3.03 |
% |
|
2.94 |
% |
|
2.89 |
% |
|
2.95 |
% |
Adjusted efficiency ratio
(2) |
|
67.74 |
% |
|
70.87 |
% |
|
72.55 |
% |
|
71.80 |
% |
|
74.55 |
% |
|
70.71 |
% |
|
74.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income to average
assets |
|
0.27 |
% |
|
0.14 |
% |
|
0.13 |
% |
|
0.18 |
% |
|
0.25 |
% |
|
0.18 |
% |
|
0.21 |
% |
Noninterest expense to average
assets |
|
1.95 |
% |
|
2.06 |
% |
|
2.11 |
% |
|
2.12 |
% |
|
2.29 |
% |
|
2.06 |
% |
|
2.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest-earning
assets to average interest-bearing liabilities |
|
131.65 |
% |
|
129.78 |
% |
|
130.45 |
% |
|
130.79 |
% |
|
133.22 |
% |
|
130.68 |
% |
|
134.34 |
% |
Average equity to average
assets |
|
15.70 |
% |
|
16.60 |
% |
|
16.89 |
% |
|
17.02 |
% |
|
18.42 |
% |
|
16.54 |
% |
|
18.99 |
% |
Dividend payout ratio (3) |
|
21.25 |
% |
|
52.01 |
% |
|
27.62 |
% |
|
23.29 |
% |
|
39.43 |
% |
|
27.47 |
% |
|
26.24 |
% |
PCSB Financial Corporation and
SubsidiariesSelected Financial Data (unaudited) -
Continued(dollar amounts in thousands, except
share and per share data)
|
As of and for the quarter ended |
|
|
June 30,2020 |
|
March 31,2020 |
|
December 31,2019 |
|
September 30,2019 |
|
June 30,2019 |
|
Loans to deposits |
|
91.82 |
% |
|
95.40 |
% |
|
94.58 |
% |
|
94.27 |
% |
|
89.17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding |
|
16,898,137 |
|
|
16,898,137 |
|
|
17,372,308 |
|
|
17,624,239 |
|
|
17,804,039 |
|
Book value per common share |
$ |
16.20 |
|
$ |
16.12 |
|
$ |
16.11 |
|
$ |
15.97 |
|
$ |
15.80 |
|
Tangible book value per common
share (4) |
$ |
15.82 |
|
$ |
15.74 |
|
$ |
15.74 |
|
$ |
15.61 |
|
$ |
15.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans
receivable |
$ |
1,795 |
|
$ |
1,802 |
|
$ |
1,618 |
|
$ |
3,425 |
|
$ |
2,727 |
|
Non-performing assets |
$ |
1,795 |
|
$ |
1,802 |
|
$ |
1,897 |
|
$ |
4,281 |
|
$ |
3,885 |
|
Allowance for loan losses as a
percent of total loans receivable |
|
0.68 |
% |
|
0.68 |
% |
|
0.52 |
% |
|
0.51 |
% |
|
0.52 |
% |
Total valuation adjustment as a
percent of total gross loans receivable (5) |
|
0.72 |
% |
|
0.74 |
% |
|
0.59 |
% |
|
0.60 |
% |
|
0.62 |
% |
Allowance for loan losses as a
percent of non-performing loans receivable |
|
481.28 |
% |
|
463.15 |
% |
|
384.18 |
% |
|
174.98 |
% |
|
207.70 |
% |
Non-performing loans as a percent
of total loans receivable, net |
|
0.14 |
% |
|
0.15 |
% |
|
0.14 |
% |
|
0.29 |
% |
|
0.25 |
% |
Non-performing assets as a
percent of total assets |
|
0.10 |
% |
|
0.11 |
% |
|
0.12 |
% |
|
0.26 |
% |
|
0.24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (recoveries) |
$ |
17 |
|
$ |
(122 |
) |
$ |
189 |
|
$ |
6 |
|
$ |
18 |
|
Net charge-offs (recoveries) to
average outstanding loans during the period (1) |
|
0.01 |
% |
|
(0.04 |
%) |
|
0.06 |
% |
|
0.00 |
% |
|
0.01 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios
(6): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital (to adjusted total
assets) |
|
12.51 |
% |
|
13.19 |
% |
|
13.00 |
% |
|
12.89 |
% |
|
13.81 |
% |
Common equity Tier 1 capital (to
risk-weighted assets) |
|
16.98 |
% |
|
16.80 |
% |
|
17.24 |
% |
|
17.16 |
% |
|
17.96 |
% |
Tier 1 capital (to risk-weighted
assets) |
|
16.98 |
% |
|
16.80 |
% |
|
17.24 |
% |
|
17.16 |
% |
|
17.96 |
% |
Total capital (to risk-weighted
assets) |
|
17.65 |
% |
|
17.44 |
% |
|
17.74 |
% |
|
17.64 |
% |
|
18.45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Performance ratios for quarter ended
periods are annualized. |
|
(2) Adjusted
efficiency ratio is a non-GAAP measure and is defined as
noninterest expense, less certain nonrecurring items, divided by
operating revenue, which is equal to net interest income plus
non-interest income excluding certain nonrecurring items. In our
judgment, the adjustments made to operating revenue allow investors
and analysts to better assess our operating expenses in relation to
our core operating revenue by removing the impact of certain
one-time items and other discrete items that are unrelated to our
core business. Reconciliations of GAAP to non-GAAP measures appear
at the end of this release. |
|
(3) Dividends
declared per share divided by net income per share. |
|
(4) Tangible book
value per share is a non-GAAP measure and equals total
shareholders’ equity, less goodwill and other intangible assets,
divided by shares outstanding. We believe this disclosure may
be meaningful to those investors who seek to evaluate our equity
without giving effect to goodwill and other intangible assets.
Reconciliations of GAAP to non-GAAP measures appear at the end of
this release. |
|
PCSB Financial Corporation and
SubsidiariesSelected Financial Data (unaudited)
- Continued(dollar amounts in thousands)
(5) Loans acquired in 2015 as
part of the CMS Bancorp. Inc./CMS Bank acquisition were recorded at
their estimated fair value at the acquisition date and did not
include a carry-over of the related pre-acquisition allowance for
loan losses. Total valuation adjustments equal the allowance for
loan losses plus the remaining discounts on acquired loans. We
believe this ratio provides investors a more meaningful comparison
to periods presented prior to the 2015 acquisition, as well as to
our peers. Reconciliations of GAAP to non-GAAP measures appear at
the end of this release. |
(6) Represents Bank
ratios. |
PCSB Financial Corporation and
SubsidiariesLoan and Deposit Portfolios
(unaudited)(amounts in thousands)
|
As of |
|
|
June 30,2020 |
|
March 31,2020 |
|
December 31,2019 |
|
September 30,2019 |
|
June 30,2019 |
|
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgages |
$ |
255,382 |
|
$ |
266,684 |
|
$ |
262,441 |
|
$ |
264,251 |
|
$ |
265,167 |
|
Commercial mortgage |
|
807,106 |
|
|
775,378 |
|
|
741,171 |
|
|
726,315 |
|
|
651,396 |
|
Construction |
|
11,053 |
|
|
24,929 |
|
|
22,787 |
|
|
18,830 |
|
|
13,231 |
|
Net deferred loan origination
costs |
|
739 |
|
|
925 |
|
|
1,054 |
|
|
1,202 |
|
|
1,031 |
|
Total mortgage loans |
|
1,074,280 |
|
|
1,067,916 |
|
|
1,027,453 |
|
|
1,010,598 |
|
|
930,825 |
|
Commercial and consumer
loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans (1) |
|
164,257 |
|
|
128,869 |
|
|
129,809 |
|
|
125,926 |
|
|
133,614 |
|
Home equity credit lines |
|
29,838 |
|
|
30,994 |
|
|
31,460 |
|
|
31,503 |
|
|
33,204 |
|
Consumer and overdrafts |
|
481 |
|
|
444 |
|
|
436 |
|
|
437 |
|
|
365 |
|
Net deferred loan origination
costs |
|
730 |
|
|
805 |
|
|
798 |
|
|
783 |
|
|
777 |
|
Total commercial and consumer
loans |
|
195,306 |
|
|
161,112 |
|
|
162,503 |
|
|
158,649 |
|
|
167,960 |
|
Total loans
receivable |
|
1,269,586 |
|
|
1,229,028 |
|
|
1,189,956 |
|
|
1,169,247 |
|
|
1,098,785 |
|
Allowance for loan losses |
|
(8,639 |
) |
|
(8,346 |
) |
|
(6,216 |
) |
|
(5,993 |
) |
|
(5,664 |
) |
Loans receivable, net |
$ |
1,260,947 |
|
$ |
1,220,682 |
|
$ |
1,183,740 |
|
$ |
1,163,254 |
|
$ |
1,093,121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
$49.6 million of PPP loans as of June 30, 2020 and none in all
other periods. |
|
|
As of |
|
|
June 30,2020 |
|
March 31,2020 |
|
December 31,2019 |
|
September 30,2019 |
|
June 30,2019 |
|
Demand deposits |
$ |
191,898 |
|
$ |
145,844 |
|
$ |
140,218 |
|
$ |
141,567 |
|
$ |
141,379 |
|
NOW accounts |
|
151,797 |
|
|
128,103 |
|
|
126,346 |
|
|
124,062 |
|
|
123,069 |
|
Money market accounts |
|
239,942 |
|
|
192,779 |
|
|
162,208 |
|
|
151,652 |
|
|
148,134 |
|
Savings |
|
343,352 |
|
|
330,310 |
|
|
354,078 |
|
|
350,250 |
|
|
357,844 |
|
Time deposits |
|
446,266 |
|
|
482,550 |
|
|
468,764 |
|
|
466,374 |
|
|
455,395 |
|
Total deposits |
$ |
1,373,255 |
|
$ |
1,279,586 |
|
$ |
1,251,614 |
|
$ |
1,233,905 |
|
$ |
1,225,821 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PCSB Financial Corporation and
SubsidiariesReconciliation of GAAP to Non-GAAP
Measures (unaudited)(dollar amounts in thousands, except
share and per share data)
|
Quarter Ended |
|
Year Ended |
|
|
June 30,2020 |
|
March 31,2020 |
|
December 31,2019 |
|
September 30,2019 |
|
June 30,2019 |
|
June 30,2020 |
|
June 30,2019 |
|
Computation
of Adjusted Net Income and Adjusted Earnings Per
Share |
|
|
|
|
|
|
|
Net income applicable to common stock (GAAP) |
$ |
2,960 |
|
$ |
1,217 |
|
$ |
2,353 |
|
$ |
2,829 |
|
$ |
1,679 |
|
$ |
9,359 |
|
$ |
8,318 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses on other receivables |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
68 |
|
Prepayment income on loans receivable and investment
securities |
|
(30 |
) |
|
(4 |
) |
|
(95 |
) |
|
(371 |
) |
|
(25 |
) |
|
(500 |
) |
|
(184 |
) |
Gain on sale of foreclosed real estate |
|
- |
|
|
(31 |
) |
|
- |
|
|
(37 |
) |
|
- |
|
|
(68 |
) |
|
(18 |
) |
Gain on sale of investment securities |
|
- |
|
|
(29 |
) |
|
- |
|
|
- |
|
|
(5 |
) |
|
(30 |
) |
|
(47 |
) |
Gain on sale of bank premises |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(117 |
) |
Adjusted net income
(Non-GAAP) |
$ |
2,930 |
|
$ |
1,153 |
|
$ |
2,258 |
|
$ |
2,421 |
|
$ |
1,649 |
|
$ |
8,761 |
|
$ |
8,020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
15,334,098 |
|
|
15,437,173 |
|
|
15,837,762 |
|
|
15,979,762 |
|
|
16,033,505 |
|
|
15,648,627 |
|
|
16,492,760 |
|
Diluted |
|
15,334,098 |
|
|
15,447,217 |
|
|
15,909,855 |
|
|
16,082,276 |
|
|
16,099,846 |
|
|
15,674,169 |
|
|
16,527,117 |
|
Earnings per share
(GAAP): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.19 |
|
$ |
0.08 |
|
$ |
0.15 |
|
$ |
0.18 |
|
$ |
0.10 |
|
$ |
0.60 |
|
$ |
0.50 |
|
Diluted |
$ |
0.19 |
|
$ |
0.08 |
|
$ |
0.14 |
|
$ |
0.18 |
|
$ |
0.10 |
|
$ |
0.60 |
|
$ |
0.50 |
|
Adjusted
earnings per common share (Non-GAAP): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.19 |
|
$ |
0.07 |
|
$ |
0.14 |
|
$ |
0.15 |
|
$ |
0.10 |
|
$ |
0.56 |
|
$ |
0.49 |
|
Diluted |
$ |
0.19 |
|
$ |
0.07 |
|
$ |
0.14 |
|
$ |
0.15 |
|
$ |
0.10 |
|
$ |
0.56 |
|
$ |
0.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts
included in income before income tax expense are presented net of
tax. |
|
|
|
|
|
|
|
PCSB Financial Corporation and
SubsidiariesReconciliation of GAAP to Non-GAAP
Measures (unaudited) - Continued(dollar amounts in
thousands, except share and per share data)
|
Quarter Ended |
|
|
Year Ended |
|
|
June 30,2020 |
|
March 31,2020 |
|
June 30,2019 |
|
|
June 30,2020 |
|
June 30,2019 |
|
Computation of
Adjusted Yield on Assets and Adjusted Net Interest
Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest-earning
assets |
$ |
1,683,635 |
|
$ |
1,590,104 |
|
$ |
1,463,598 |
|
|
$ |
1,614,389 |
|
$ |
1,445,509 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend income
(GAAP) |
$ |
14,821 |
|
$ |
15,334 |
|
$ |
13,952 |
|
|
$ |
61,910 |
|
$ |
53,447 |
|
Less: Prepayment income on loans
receivable and investment securities |
|
(39 |
) |
|
(5 |
) |
|
(34 |
) |
|
|
(644 |
) |
|
(244 |
) |
Adjusted interest and dividend
income (Non-GAAP) |
$ |
14,782 |
|
$ |
15,329 |
|
$ |
13,918 |
|
|
$ |
61,266 |
|
$ |
53,203 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield on interest-earning assets
(GAAP) |
|
3.52 |
% |
|
3.86 |
% |
|
3.81 |
% |
|
|
3.83 |
% |
|
3.70 |
% |
Adjusted yield on
interest-earning assets (Non-GAAP) |
|
3.51 |
% |
|
3.86 |
% |
|
3.80 |
% |
|
|
3.79 |
% |
|
3.68 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (GAAP) |
$ |
11,459 |
|
$ |
11,525 |
|
$ |
10,759 |
|
|
$ |
46,679 |
|
$ |
42,704 |
|
Less: Prepayment income on loans
receivable and investment securities |
|
(39 |
) |
|
(5 |
) |
|
(34 |
) |
|
|
(644 |
) |
|
(244 |
) |
Adjusted net interest income
(Non-GAAP) |
$ |
11,420 |
|
$ |
11,520 |
|
$ |
10,725 |
|
|
$ |
46,035 |
|
$ |
42,460 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (GAAP) |
|
2.72 |
% |
|
2.90 |
% |
|
2.94 |
% |
|
|
2.89 |
% |
|
2.95 |
% |
Adjusted net interest margin
(Non-GAAP) |
|
2.71 |
% |
|
2.90 |
% |
|
2.93 |
% |
|
|
2.85 |
% |
|
2.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PCSB Financial Corporation and
SubsidiariesReconciliation of GAAP to Non-GAAP
Measures (unaudited) - Continued(dollar amounts in
thousands, except share and per share data)
|
Quarter Ended |
|
Year Ended |
|
|
June 30,2020 |
|
March 31,2020 |
|
December 31,2019 |
|
September 30,2019 |
|
June 30,2019 |
|
June 30,2020 |
|
June 30,2019 |
|
Computation of Efficiency Ratio |
|
|
|
|
|
|
|
|
|
|
Noninterest expense (GAAP) |
$ |
8,533 |
|
$ |
8,520 |
|
$ |
8,794 |
|
$ |
8,787 |
|
$ |
8,708 |
|
$ |
34,634 |
|
$ |
33,994 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses on other receivables |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(90 |
) |
Adjusted noninterest expense
(non-GAAP) |
$ |
8,533 |
|
$ |
8,520 |
|
$ |
8,794 |
|
$ |
8,787 |
|
$ |
8,708 |
|
$ |
34,634 |
|
$ |
33,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
11,459 |
|
$ |
11,525 |
|
$ |
11,697 |
|
$ |
11,998 |
|
$ |
10,759 |
|
$ |
46,679 |
|
$ |
42,704 |
|
Noninterest income |
|
1,177 |
|
|
580 |
|
|
547 |
|
|
765 |
|
|
962 |
|
|
3,069 |
|
|
3,102 |
|
Total (GAAP) |
|
12,636 |
|
|
12,105 |
|
|
12,244 |
|
|
12,763 |
|
|
11,721 |
|
|
49,748 |
|
|
45,806 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prepayment income on loans receivable and investment
securities |
|
(39 |
) |
|
(5 |
) |
|
(123 |
) |
|
(477 |
) |
|
(34 |
) |
|
(644 |
) |
|
(244 |
) |
Gain on sale of foreclosed real estate |
|
- |
|
|
(40 |
) |
|
- |
|
|
(47 |
) |
|
- |
|
|
(87 |
) |
|
(24 |
) |
Gain on sale of investment securities |
|
- |
|
|
(38 |
) |
|
- |
|
|
- |
|
|
(7 |
) |
|
(38 |
) |
|
(62 |
) |
Gain on sale of bank premises |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(155 |
) |
Adjusted total (Non-GAAP) |
$ |
12,597 |
|
$ |
12,022 |
|
$ |
12,121 |
|
$ |
12,239 |
|
$ |
11,680 |
|
$ |
48,979 |
|
$ |
45,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (GAAP) |
|
67.53 |
% |
|
70.38 |
% |
|
71.82 |
% |
|
68.85 |
% |
|
74.29 |
% |
|
69.62 |
% |
|
74.21 |
% |
Adjusted efficiency ratio
(Non-GAAP) |
|
67.74 |
% |
|
70.87 |
% |
|
72.55 |
% |
|
71.80 |
% |
|
74.55 |
% |
|
70.71 |
% |
|
74.81 |
% |
PCSB Financial Corporation and
SubsidiariesReconciliation of GAAP to Non-GAAP
Measures (unaudited) - Continued(dollar amounts in
thousands, except share and per share data)
|
As of |
|
|
June 30,2020 |
|
March 31,2020 |
|
December 31,2019 |
|
September 30,2019 |
|
June 30,2019 |
|
Computation
of Tangible Book Value per Common Share |
|
|
|
|
Total shareholders' equity (GAAP) |
$ |
273,713 |
|
$ |
272,417 |
|
$ |
279,839 |
|
$ |
281,522 |
|
$ |
281,307 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Common shareholders' equity |
|
273,713 |
|
|
272,417 |
|
|
279,839 |
|
|
281,522 |
|
|
281,307 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
(6,106 |
) |
|
(6,106 |
) |
|
(6,106 |
) |
|
(6,106 |
) |
|
(6,106 |
) |
Other intangible assets |
|
(229 |
) |
|
(250 |
) |
|
(274 |
) |
|
(298 |
) |
|
(323 |
) |
Tangible common shareholders'
equity (Non-GAAP) |
$ |
267,378 |
|
$ |
266,061 |
|
$ |
273,459 |
|
$ |
275,118 |
|
$ |
274,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
|
16,898,137 |
|
|
16,898,137 |
|
|
17,372,308 |
|
|
17,624,239 |
|
|
17,804,039 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share (GAAP) |
$ |
16.20 |
|
$ |
16.12 |
|
$ |
16.11 |
|
$ |
15.97 |
|
$ |
15.80 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effects of intangible assets |
|
(0.38 |
) |
|
(0.38 |
) |
|
(0.37 |
) |
|
(0.36 |
) |
|
(0.36 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per common
share (Non-GAAP) |
$ |
15.82 |
|
$ |
15.74 |
|
$ |
15.74 |
|
$ |
15.61 |
|
$ |
15.44 |
|
PCSB Financial Corporation and
SubsidiariesReconciliation of GAAP to Non-GAAP
Measures (unaudited) - Continued(dollar amounts in
thousands, except share and per share data)
|
Quarter Ended |
|
|
June 30,2020 |
|
March 31,2020 |
|
December 31,2019 |
|
September 30,2019 |
|
June 30,2019 |
|
Computation of valuation adjustment |
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses (GAAP) |
$ |
8,639 |
|
$ |
8,346 |
|
$ |
6,216 |
|
$ |
5,993 |
|
$ |
5,664 |
|
Add: Purchase accounting
discounts on acquired loans |
|
554 |
|
|
693 |
|
|
837 |
|
|
983 |
|
|
1,180 |
|
Total valuation adjustments (Non-GAAP) |
$ |
9,193 |
|
$ |
9,039 |
|
$ |
7,053 |
|
$ |
6,976 |
|
$ |
6,844 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total gross loans |
$ |
1,269,586 |
|
$ |
1,229,028 |
|
$ |
1,189,956 |
|
$ |
1,169,247 |
|
$ |
1,098,785 |
|
Allowance for loan losses as a
percent of total gross loans (GAAP) |
|
0.68 |
% |
|
0.68 |
% |
|
0.52 |
% |
|
0.51 |
% |
|
0.52 |
% |
Total valuation adjustments as
a percent of total gross loans (Non-GAAP) |
|
0.72 |
% |
|
0.74 |
% |
|
0.59 |
% |
|
0.60 |
% |
|
0.62 |
% |
PCSB Financial (NASDAQ:PCSB)
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PCSB Financial (NASDAQ:PCSB)
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