Toggle SGML Header (+)


Section 1: 8-K (8-K 12312018)

pcsb-8k_20181231.htm

 

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 24, 2019

 

PCSB Financial Corporation

(Exact name of Registrant as Specified in Its Charter)

 

 

Maryland

001-38065

81-4710738

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

 

 

 

2651 Strang Blvd., Suite 100,

Yorktown Heights, NY

 

10598

(Address of Principal Executive Offices)

 

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (914) 248-7272

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

 


 

Item 2.02 Results of Operations and Financial Condition.

On January 24, 2019, PCSB Financial Corporation, the holding company for PCSB Bank, issued an earnings release to report its financial results at and for the three and six months ended December 31, 2018. A copy of the earnings release is furnished as an exhibit hereto and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(a) Not applicable.

(b) Not applicable.

(c) Not applicable.

(d) Exhibits

 

Exhibit

Number

 

Description

 

 

 

99.1

 

Earnings Release dated January 24, 2019

1


 

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.

 

 

 

PCSB Financial Corporation

 

 

 

 

Date: January 24, 2019

 

By:

/s/ Scott D. Nogles

 

 

 

Scott D. Nogles

 

 

 

Executive Vice President and Chief Financial Officer

 

2

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

pcsb-ex991_6.htm

 

 

 

 

Exhibit 99.1

 

PCSB Financial Corporation Announces Second Fiscal Quarter Results and

Declares Quarterly Cash Dividend

 

Yorktown Heights, New York; January 24, 2019 – PCSB Financial Corporation (the “Company”) (NASDAQ: PCSB), parent of PCSB Bank (the "Bank"), today announced net income of $2.3 million, or $0.14 per basic and diluted share, for the three months ended December 31, 2018 compared to $2.3 million, or $0.14 per basic and diluted share, for the three months ended September 30, 2018 and $2,000, or $0.00 per basic and diluted share, for the three months ended December 31, 2017.

 

On a non-GAAP basis, which excludes certain nonrecurring items, the Company recorded net income of $2.2 million, or $0.13 per diluted share for the three months ended December 31, 2018 as compared to net income of $2.3 million, or $0.14 per diluted share for the three months ended September 30, 2018 and $1.8 million, or $0.11 per diluted share, for the three months ended December 31, 2017. Reconciliations of GAAP to non-GAAP measures appear at the end of this release.

 

In conjunction with grants under the stockholder-approved 2018 Equity Incentive Plan, the Company recorded $482,000, $364,000 net of taxes, of stock-based compensation expense in the current quarter. No such expense was recorded in the previous quarter or prior year period. The $482,000 of expense is a partial quarter's worth of expense, the annualized cost of which is approximately $3.3 million, or $829,000 quarterly.

 

President’s Comments

Commenting on the Company’s results, Joseph Roberto, Chairman, President and Chief Executive Officer of PCSB Financial Corporation, said, ”We are pleased with our achievements in our second year as a public company. Some of these achievements include current year asset growth and deposit growth of 5.2% and 5.9%, respectively, and a year-over-year increase in adjusted net income of 32.8%. The current quarter also showed a continued decline in problem assets as the ratio of non-performing assets to total assets decreased to 0.27% from 0.43% for the September quarter and decreased by more than half, from 0.57% a year ago. During the second quarter, we also began the process of capital management by announcing our first share repurchase program. As we continue to move forward in our second year as a public company, we hope to build on these results as we strive to create value for our shareholders.

 

Additionally, as of December 31, 2018, we are excited by our recently announced conversion to a commercial bank and look forward to the business opportunities this organizational change will provide us including additional products and services to our customers and a better position in which to compete in the Municipal deposit markets.”  

 

Income Statement Summary

Net interest income increased $558,000, or 5.5%, to $10.7 million for the three months ended December 31, 2018, compared to the same period in 2017 and increased $280,000 or 2.7% from the previous quarter. The increase in net interest income compared to the prior year is primarily a result of a $79.5 million increase in average interest earning assets. The increase in average interest earning assets is primarily due to loan portfolio growth, partially offset by a decrease in investment securities. The net interest margin was 3.00% for the three months ended December 31, 2018, unchanged from the prior year quarter, as asset growth and a higher yielding asset mix offset the increased cost of funds driven by higher market interest rates. The increase in net interest income compared to the prior quarter is primarily due to continued balance sheet growth and a six basis point increase in net interest margin, driven by the Company’s ability to control the increase in the cost of funds despite continued increases in short-term market rates.

 

The provision for loan losses was $6,000 for the three months ended December 31, 2018 compared to $58,000 in the prior quarter and $200,000 for the same period in 2017. Charge-offs, net of recoveries, were $21,000 for the three months ended December 31, 2018 compared to $3,000 for the three months ended September 30, 2018 and $997,000 for the three months ended December 31, 2017.  Loans classified as substandard and doubtful decreased $2.8 million, or 22.1%, to $10.2 million at December 31, 2018 from $13.0 million at September 30, 2018 and decreased $8.1 million, or 44.3%, from $18.3 million at December 31, 2017. Non-performing loans as a percent of total loans receivable was 0.39% as of December 31, 2018, a decrease from 0.62% as of September 30, 2018 and 0.97% as of December 31, 2017.

 

 

1

 

 


 

 

 

 

Noninterest income increased $228,000 to $920,000 for the three months ended December 31, 2018 compared to the same period in 2017, primarily due to a $155,000 gain on the sale of bank premises, $55,000 in gains on the sale of securities, and $76,000 of swap income recorded in the current quarter, partially offset by $99,000 of one-time loan related fee income recorded in the prior year quarter. Noninterest income increased $279,000 from the three months ended September 30, 2018, primarily due to the aforementioned gains on the sale of bank premises and securities, as well as $24,000 of gains on the sale of REO and increases in deposit-related fees.

 

Noninterest expense increased $455,000 to $8.6 million for the three months ended December 31, 2018 compared to the same period in 2017 and increased $572,000 compared to the three months ended September 30, 2018. The $455,000 increase from 2017 was caused primarily by a $574,000 increase in salaries and employee benefits, partially offset by a $110,000 decrease in losses on a receivable. The increase in salaries and employee benefits was primarily due to $482,000 of stock-based compensation expense recorded in the current quarter, as well as a $199,000 increase in salaries and short-term incentive comp as a result of additional staffing, partially offset by lower retirement and medical benefits costs. The $572,000 increase in noninterest expense from the three months ended September 30, 2018 was primarily due to a $304,000 increase in salaries and benefits expense driven primarily by higher stock-based compensation, partially offset by lower salary expense, a $90,000 loss on a receivable recorded in the current quarter, and a net increase of $178,000 in all other expenses.

 

The effective income tax rate was 24.5% for the three months ended December 31, 2018, as compared to a tax rate, adjusted for the one-time effects of the Tax Cuts and Jobs Act, of 31.3% for the three months ended December 31, 2017 and 23.4% for the three months ended September 30, 2018. Beginning on July 1, 2018, the Company began to realize the full benefits of the reduction in the corporate income tax rate which became effective in January 2018.

 

Balance Sheet Summary

Total assets increased $77.1 million to $1.56 billion at December 31, 2018 from $1.48 billion at June 30, 2018.  This increase was primarily due to increases of $81.0 million in cash and cash equivalents and $2.0 million in loans receivable, partially offset by a decrease of $6.2 million in total investment securities. The increase in cash and cash equivalents is primarily due to increases in deposits and FHLB advances. The $2.0 million increase in loans was the result of $75.3 million of originations, partially offset by $73.3 million of net amortization on the remaining portfolio, highlighted by $25.0 million of loan prepayments on four commercial mortgage loans and one residential mortgage loan.

 

Total liabilities increased $75.9 million to $1.27 billion at December 31, 2018 from $1.19 billion at June 30, 2018.  This increase was primarily due to increases of $67.9 million in total deposits and $7.4 million in FHLB advances. Deposits as of December 31, 2018 includes a $7.5 million net increase in brokered time deposits and a transient balance of $28.4 million in one non-interest bearing customer account, the majority of which is expected to be withdrawn from the Bank in January 2019. Excluding this transient balance, deposit growth year to date is $39.5 million or 3.4%, concentrated primarily in money market and time deposit accounts.

 

Total shareholders’ equity increased $1.2 million to $288.8 million at December 31, 2018 from $287.6 million at June 30, 2018.  This increase was primarily due to net income of $4.7 million and a $970,000 reduction in unearned ESOP shares for plan shares earned during the period, partially offset by the repurchase of $4.3 million in common stock and $1.0 million of cash dividends paid. As of December 31, 2018, the Company had repurchased 222,070 shares, at an average cost of $19.52 per share, which represents 24% of the 908,256 shares authorized for repurchase under the existing plan. At December 31, 2018, the Company’s book value per share and tangible book value per share were $15.62 and $15.27, respectively, compared to $15.83 and $15.47, respectively, at June 30, 2018.  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 December 31, 2018, the Bank was considered “well capitalized” under applicable regulatory guidelines.

 

Dividend

The Board of Directors declared a regular quarterly cash dividend of $0.03 per share. The dividend is payable on or about March 1, 2019 to stockholders of record on February 15, 2019.

 


 

2

 

 


 

 

 

 

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 and 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 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. Roberto

Chairman, President and Chief Executive Officer

(914) 248-7272

 


 

3

 

 


 

 

 

 

PCSB Financial Corporation and Subsidiaries

Consolidated Balance Sheets (unaudited)

(amounts in thousands, except share data)

 

 

 

 

December 31,

 

 

June 30,

 

 

 

2018

 

 

2018

 

ASSETS

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

141,569

 

 

$

60,684

 

Federal funds sold

 

 

1,550

 

 

 

1,461

 

Cash and cash equivalents

 

 

143,119

 

 

 

62,145

 

Held to maturity debt securities, at amortized cost

  (fair value of $351,701 and $343,188, respectively)

 

 

359,777

 

 

 

353,183

 

Available for sale debt securities, at fair value

 

 

92,686

 

 

 

105,472

 

Total investment securities

 

 

452,463

 

 

 

458,655

 

Loans receivable, net of allowance for loan losses of $4,943 and $4,904, respectively

 

 

904,377

 

 

 

902,336

 

Accrued interest receivable

 

 

4,457

 

 

 

4,358

 

Federal Home Loan Bank stock

 

 

2,385

 

 

 

2,050

 

Premises and equipment, net

 

 

11,429

 

 

 

11,598

 

Deferred tax asset, net

 

 

2,436

 

 

 

2,622

 

Foreclosed real estate

 

 

572

 

 

 

460

 

Bank-owned life insurance

 

 

24,026

 

 

 

23,747

 

Goodwill

 

 

6,106

 

 

 

6,106

 

Other intangible assets

 

 

376

 

 

 

433

 

Other assets

 

 

5,569

 

 

 

5,677

 

Total assets

 

$

1,557,315

 

 

$

1,480,187

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Interest bearing deposits

 

$

1,063,211

 

 

$

1,025,574

 

Non-interest bearing deposits

 

 

162,113

 

 

 

131,883

 

Total deposits

 

 

1,225,324

 

 

 

1,157,457

 

Mortgage escrow funds

 

 

9,085

 

 

 

8,803

 

Advances from Federal Home Loan Bank

 

 

26,279

 

 

 

18,841

 

Other liabilities

 

 

7,845

 

 

 

7,527

 

Total liabilities

 

 

1,268,533

 

 

 

1,192,628

 

Commitments and contingencies

 

 

-

 

 

 

-

 

Preferred stock ($0.01 par value, 10,000,000 shares authorized, no shares issued or outstanding as of December 31, 2018 and June 30, 2018, respectively)

 

 

-

 

 

 

-

 

Common stock ($0.01 par value, 200,000,000 shares authorized, 18,712,295 and 18,165,110 shares issued, and 18,490,225 and 18,165,110 shares outstanding as of December 31, 2018 and June 30, 2018, respectively)

 

 

187

 

 

 

182

 

Additional paid in capital

 

 

180,003

 

 

 

179,045

 

Retained earnings

 

 

131,993

 

 

 

128,365

 

Unearned compensation - ESOP

 

 

(12,594

)

 

 

(13,083

)

Accumulated other comprehensive loss, net of income taxes

 

 

(6,471

)

 

 

(6,950

)

Treasury stock, at cost (222,070 shares as of December 31, 2018 and no shares as of June 30, 2018)

 

 

(4,336

)

 

 

-

 

Total shareholders' equity

 

 

288,782

 

 

 

287,559

 

Total liabilities and shareholders' equity

 

$

1,557,315

 

 

$

1,480,187

 

 

 

 

 

 

 

4

 

 


 

 

 

 

PCSB Financial Corporation and Subsidiaries

Consolidated Statements of Operations (unaudited)

(amounts in thousands, except share and per share data)

 

 

  

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable

 

$

10,321

 

 

$

9,171

 

 

$

20,219

 

 

$

17,989

 

Investment securities

 

 

2,428

 

 

 

2,269

 

 

 

4,794

 

 

 

4,514

 

Federal funds and other

 

 

491

 

 

 

217

 

 

 

836

 

 

 

451

 

Total interest and dividend income

 

 

13,240

 

 

 

11,657

 

 

 

25,849

 

 

 

22,954

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

2,375

 

 

 

1,307

 

 

 

4,431

 

 

 

2,574

 

FHLB advances

 

 

121

 

 

 

164

 

 

 

210

 

 

 

318

 

Total interest expense

 

 

2,496

 

 

 

1,471

 

 

 

4,641

 

 

 

2,892

 

Net interest income

 

 

10,744

 

 

 

10,186

 

 

 

21,208

 

 

 

20,062

 

Provision for loan losses

 

 

6

 

 

 

200

 

 

 

64

 

 

 

335

 

Net interest income after provision for loan losses

 

 

10,738

 

 

 

9,986

 

 

 

21,144

 

 

 

19,727

 

Noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges

 

 

457

 

 

 

412

 

 

 

875

 

 

 

793

 

Bank-owned life insurance

 

 

139

 

 

 

145

 

 

 

279

 

 

 

294

 

Gains on sales of securities, net

 

 

55

 

 

 

-

 

 

 

55

 

 

 

173

 

Other

 

 

269

 

 

 

135

 

 

 

352

 

 

 

146

 

Total noninterest income

 

 

920

 

 

 

692

 

 

 

1,561

 

 

 

1,406

 

Noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

5,444

 

 

 

4,870

 

 

 

10,584

 

 

 

9,730

 

Occupancy and equipment

 

 

1,284

 

 

 

1,296

 

 

 

2,525

 

 

 

2,578

 

Communications and data processing

 

 

482

 

 

 

479

 

 

 

954

 

 

 

970

 

Professional fees

 

 

417

 

 

 

379

 

 

 

786

 

 

 

792

 

Postage, printing, stationary and supplies

 

 

178

 

 

 

142

 

 

 

316

 

 

 

274

 

FDIC assessment

 

 

124

 

 

 

64

 

 

 

217

 

 

 

142

 

Advertising

 

 

131

 

 

 

179

 

 

 

218

 

 

 

344

 

Amortization of intangible assets

 

 

28

 

 

 

33

 

 

 

56

 

 

 

65

 

Other operating expenses

 

 

492

 

 

 

683

 

 

 

932

 

 

 

1,124

 

Total noninterest expense

 

 

8,580

 

 

 

8,125

 

 

 

16,588

 

 

 

16,019

 

Net income before income tax expense

 

 

3,078

 

 

 

2,553

 

 

 

6,117

 

 

 

5,114

 

Income tax expense

 

 

754

 

 

 

2,551

 

 

 

1,464

 

 

 

3,356

 

Net income

 

$

2,324

 

 

$

2

 

 

$

4,653

 

 

$

1,758

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.14

 

 

$

-

 

 

$

0.28

 

 

$

0.10

 

Diluted

 

$

0.14

 

 

$

-

 

 

$

0.28

 

 

$

0.10

 

Weighted average common shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

16,852,718

 

 

 

16,791,305

 

 

 

16,860,942

 

 

 

16,773,883

 

Diluted

 

 

16,868,464

 

 

 

16,791,305

 

 

 

16,868,815

 

 

 

16,773,883

 

 


 

5

 

 


 

 

 

 

PCSB Financial Corporation and Subsidiaries

Net Interest Margin Analysis (unaudited)

(dollar amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

2018

 

 

2017

 

 

Average Balance

 

 

Interest / Dividends

 

 

Average Rate

 

 

Average Balance

 

 

Interest / Dividends

 

 

Average Rate

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable

$

909,368

 

 

$

10,321

 

 

 

4.53

%

 

$

827,614

 

 

$

9,171

 

 

 

4.43

%

Investment securities

 

439,919

 

 

 

2,428

 

 

 

2.21

 

 

 

473,641

 

 

 

2,269

 

 

 

1.92

 

Other interest-earning assets

 

85,874

 

 

 

491

 

 

 

2.27

 

 

 

54,388

 

 

 

217

 

 

 

1.58

 

Total interest-earning assets

 

1,435,161

 

 

 

13,240

 

 

 

3.69

 

 

 

1,355,643

 

 

 

11,657

 

 

 

3.44

 

Non-interest-earning assets

 

57,567

 

 

 

 

 

 

 

 

 

 

 

58,665

 

 

 

 

 

 

 

 

 

Total assets

$

1,492,728

 

 

 

 

 

 

 

 

 

 

$

1,414,308

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW accounts

$

116,381

 

 

 

52

 

 

 

0.18

 

 

$

112,147

 

 

 

48

 

 

 

0.17

 

Money market accounts

 

101,078

 

 

 

280

 

 

 

1.10

 

 

 

29,014

 

 

 

22

 

 

 

0.30

 

Savings accounts and escrow

 

416,687

 

 

 

252

 

 

 

0.24

 

 

 

509,888

 

 

 

309

 

 

 

0.24

 

Time deposits

 

403,652

 

 

 

1,791

 

 

 

1.76

 

 

 

306,756

 

 

 

928

 

 

 

1.20

 

Total interest-bearing deposits

 

1,037,798

 

 

 

2,375

 

 

 

0.91

 

 

 

957,805

 

 

 

1,307

 

 

 

0.54

 

Federal Home Loan Bank advances

 

22,106

 

 

 

121

 

 

 

2.15

 

 

 

35,293

 

 

 

164

 

 

 

1.85

 

Total interest-bearing liabilities

 

1,059,904

 

 

 

2,496

 

 

 

0.94

 

 

 

993,098

 

 

 

1,471

 

 

 

0.59

 

Non-interest-bearing deposits

 

135,470

 

 

 

 

 

 

 

 

 

 

 

130,614

 

 

 

 

 

 

 

 

 

Other non-interest-bearing liabilities

 

6,506

 

 

 

 

 

 

 

 

 

 

 

7,765

 

 

 

 

 

 

 

 

 

Total liabilities

 

1,201,880

 

 

 

 

 

 

 

 

 

 

 

1,131,477

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

290,848

 

 

 

 

 

 

 

 

 

 

 

282,831

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

$

1,492,728

 

 

 

 

 

 

 

 

 

 

$

1,414,308

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

10,744

 

 

 

 

 

 

 

 

 

 

$

10,186

 

 

 

 

 

Interest rate spread (1)

 

 

 

 

 

 

 

 

 

2.75

 

 

 

 

 

 

 

 

 

 

 

2.85

 

Net interest margin (2)

 

 

 

 

 

 

 

 

 

3.00

 

 

 

 

 

 

 

 

 

 

 

3.00

 

Average interest-earning assets to interest-bearing liabilities

 

135.40

%

 

 

 

 

 

 

 

 

 

 

136.51

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

 

 

 

 

 

 

 


 

6

 

 


 

 

 

 

PCSB Financial Corporation and Subsidiaries

Net Interest Margin Analysis (unaudited) - Continued

(dollar amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended December 31,

 

 

2018

 

 

2017

 

 

Average Balance

 

 

Interest / Dividends

 

 

Average Rate

 

 

Average Balance

 

 

Interest / Dividends

 

 

Average Rate

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable

$

906,194

 

 

$

20,219

 

 

 

4.46

%

 

$

820,429

 

 

$

17,989

 

 

 

4.38

%

Investment securities

 

446,795

 

 

 

4,794

 

 

 

2.15

 

 

 

479,833

 

 

 

4,514

 

 

 

1.88

 

Other interest-earning assets

 

76,548

 

 

 

836

 

 

 

2.17

 

 

 

61,822

 

 

 

451

 

 

 

1.45

 

Total interest-earning assets

 

1,429,537

 

 

 

25,849

 

 

 

3.61

 

 

 

1,362,084

 

 

 

22,954

 

 

 

3.37

 

Non-interest-earning assets

 

53,731

 

 

 

 

 

 

 

 

 

 

 

58,453

 

 

 

 

 

 

 

 

 

Total assets

$

1,483,268

 

 

 

 

 

 

 

 

 

 

$

1,420,537

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW accounts

$

117,893

 

 

 

105

 

 

 

0.18

 

 

$

113,458

 

 

 

97

 

 

 

0.17

 

Money market accounts

 

79,891

 

 

 

419

 

 

 

1.04

 

 

 

29,557

 

 

 

43

 

 

 

0.29

 

Savings accounts and escrow

 

439,615

 

 

 

540

 

 

 

0.25

 

 

 

514,102

 

 

 

633

 

 

 

0.25

 

Time deposits

 

397,994

 

 

 

3,367

 

 

 

1.68

 

 

 

302,382

 

 

 

1,801

 

 

 

1.18

 

Total interest-bearing deposits

 

1,035,393

 

 

 

4,431

 

 

 

0.85

 

 

 

959,499

 

 

 

2,574

 

 

 

0.53

 

Federal Home Loan Bank advances

 

20,463

 

 

 

210

 

 

 

2.03

 

 

 

38,346

 

 

 

318

 

 

 

1.65

 

Total interest-bearing liabilities

 

1,055,856

 

 

 

4,641

 

 

 

0.87

 

 

 

997,845

 

 

 

2,892

 

 

 

0.58

 

Non-interest-bearing deposits

 

130,425

 

 

 

 

 

 

 

 

 

 

 

132,491

 

 

 

 

 

 

 

 

 

Other non-interest-bearing liabilities

 

6,894

 

 

 

 

 

 

 

 

 

 

 

8,026

 

 

 

 

 

 

 

 

 

Total liabilities

 

1,193,175

 

 

 

 

 

 

 

 

 

 

 

1,138,362

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

290,093

 

 

 

 

 

 

 

 

 

 

 

282,175

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

$

1,483,268

 

 

 

 

 

 

 

 

 

 

$

1,420,537

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

21,208

 

 

 

 

 

 

 

 

 

 

$

20,062

 

 

 

 

 

Interest rate spread (1)

 

 

 

 

 

 

 

 

 

2.74

 

 

 

 

 

 

 

 

 

 

 

2.79

 

Net interest margin (2)

 

 

 

 

 

 

 

 

 

2.97