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Section 1: 8-K (8-K 03312019)

pcsb-8k_20190425.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): April 25, 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 April 25, 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 nine months ended March 31, 2019. 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 April 25, 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: April 25, 2019

 

By:

/s/ Scott D. Nogles

 

 

 

Scott D. Nogles

 

 

 

Executive Vice President and Chief Financial Officer

 

2

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Section 2: EX-99.1 (EX-99.1)

pcsb-ex991_6.htm

 

 

 

 

Exhibit 99.1

 

PCSB Financial Corporation Announces Third Fiscal Quarter Results and

Declares Quarterly Cash Dividend

 

Yorktown Heights, New York; April 25, 2019 – PCSB Financial Corporation (the “Company”) (NASDAQ: PCSB), parent of PCSB Bank (the "Bank"), today announced net income of $2.0 million, or $0.12 per basic and diluted share, for the three months ended March 31, 2019 compared to $2.3 million, or $0.14 per basic and diluted share, for the three months ended December 31, 2018 and $2.2 million, or $0.13 per basic and diluted share, for the three months ended March 31, 2018.

 

On a non-GAAP basis, which excludes certain nonrecurring items, the Company recorded net income of $2.0 million, or $0.12 per diluted share for the three months ended March 31, 2019 as compared to net income of $2.2 million, or $0.13 per diluted share for the three months ended December 31, 2018 and $2.0 million, or $0.12 per diluted share, for the three months ended March 31, 2018. 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 $829,000, or $631,000 net of taxes, of stock-based compensation expense in the current quarter, compared to $482,000, or $364,000 net of taxes in the prior quarter. No such expense was recorded in the prior year period. This additional expense reduced diluted earnings per share by $0.04 in the current quarter, $0.02 in the prior quarter, and had no impact in the prior year quarter.

 

President’s Comments

Commenting on the Company’s results, Joseph Roberto, Chairman, President and Chief Executive Officer of PCSB Financial Corporation, said, “I am pleased to report continued progress in our second year as a public company. Year-to-date non-GAAP net income improved by 20.6% over the year ago period, supported by a nearly 10% increase in the average balance of loans for the same period. Asset quality remains strong as the ratio of non-performing assets to total assets decreased to 0.23% at March 31, 2019 from 0.27% at December 31, 2018, and decreased by more than half from 0.50% a year ago. During the third fiscal quarter, we also completed our first share repurchase program as part of our capital management program. As we continue to move forward in our third year as public company, we hope to build on these results as we strive to create value for our shareholders. I am also pleased to announce that our Board of Directors declared a quarterly cash dividend of $0.04 per share, representing a 33% increase over last quarter’s dividend.”

 

Income Statement Summary

Net interest income increased $594,000, or 5.9%, to $10.7 million for the three months ended March 31, 2019, compared to the same period in 2018 and was unchanged from the previous quarter. The increase in net interest income compared to the prior year is primarily a result of a $99.6 million, or 7.3%, increase in average interest earning assets, partially offset by a five basis point decrease in the net interest margin. The increase in average interest earning assets is primarily due to a $70.1 million increase in average loans. The net interest margin was 2.94% for the three months ended March 31, 2019, a decrease of five basis points compared to 2.99% in the prior year quarter. Despite continued asset growth and a higher yielding asset mix, the margin has been impacted by rising funding costs due to higher short-term interest rates along with competitive pricing. The cost of interest-bearing deposits was 1.04% for the three months ended March 31, 2019 compared to 0.58% for the three months ended March 31, 2018, an increase of 46 basis points. The Company has experienced a shift in deposit mix as customers in lower costing saving products moved to higher rate money market and time deposits. Net interest income was unchanged compared to the prior quarter as balance sheet growth was offset by a six basis point decrease in net interest margin, driven by higher market interest rates on deposits.

 

The provision for loan losses was $7,000 for the three months ended March 31, 2019 compared to $6,000 in the prior quarter and $54,000 for the same period in 2018. Charge-offs, net of recoveries, were $5,000 for the three months ended March 31, 2019 compared to $22,000 for the three months ended December 31, 2018 and recoveries, net of charge-offs, of $99,000 for the three months ended March 31, 2018.  Loans classified as substandard or doubtful decreased $1.2 million, or 11.3%, to $9.0 million at March 31, 2019 from $10.2 million at December 31, 2018 and decreased $10.6 million, or 53.9%, from $19.6 million at March 31, 2018. Non-performing loans as a percent of total loans receivable was 0.30% as of March 31, 2019, a decrease from 0.39% as of December 31, 2018 and 0.80% as of March 31, 2018.

 

1

 

 


 

 

 

 

 

Noninterest income increased $67,000 to $579,000 for the three months ended March 31, 2019 compared to the same period in 2018, primarily due to increased deposit fees and loan processing fees. Noninterest income decreased $341,000 from the three months ended December 31, 2018, primarily due to a $76,000 decrease in swap income, as well as nonrecurring gains recognized in the prior quarter totaling $239,000 related to the sales of bank premises, securities, and REO.

 

Noninterest expense increased $865,000 to $8.7 million for the three months ended March 31, 2019 compared to the same period in 2018 and increased $118,000 compared to the three months ended December 31, 2018. The $865,000 increase from the prior year period was caused primarily by a $957,000 increase in salaries and employee benefits, partially offset by a $92,000 decrease in all other noninterest expenses. The increase in salaries and employee benefits was primarily due to $829,000 of stock-based compensation expense recorded in the current quarter, as well as a $110,000 increase in salaries as a result of additional staffing. The $118,000 increase in noninterest expense from the three months ended December 31, 2018 was primarily due to a $313,000 increase in salaries and benefits expense driven primarily by $347,000 increase in stock-based compensation as it was a partial expense in the prior quarter, partially offset by a $90,000 loss on a receivable recorded in the prior quarter, and a net decrease of $105,000 in all other noninterest expenses.

 

The effective income tax rate was 23.9% for the three months ended March 31, 2019, as compared to 24.5% for the three months ended December 31, 2018. The effective tax rate, adjusted for the one-time effects of the Tax Cuts and Jobs Act, was 27.9% for the three months ended March 31, 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 $43.6 million to $1.52 billion at March 31, 2019 from $1.48 billion at June 30, 2018.  This increase was primarily due to increases of $33.3 million in loans receivable and $25.0 million in cash and cash equivalents, partially offset by a decrease of $18.6 million in total investment securities. The increase in cash and cash equivalents is primarily due to increases in deposits and FHLB advances. The $33.3 million increase in loans was the result of $127.7 million of originations and loan purchases, partially offset by $94.4 million of net amortization and repayments on the remaining portfolio.

 

Total liabilities increased $52.8 million to $1.25 billion at March 31, 2019 from $1.19 billion at June 30, 2018.  This increase was primarily due to increases of $44.7 million in total deposits and $7.4 million in FHLB advances.

 

Total shareholders’ equity decreased $9.2 million to $278.3 million at March 31, 2019 from $287.6 million at June 30, 2018.  This decrease was primarily due to the repurchase of $18.3 million in common stock and $1.5 million of cash dividends paid, partially offset by net income of $6.6 million, $2.8 million of stock-based compensation and reduction in unearned ESOP shares for plan shares earned during the period, as well as other comprehensive income of $1.2 million, primarily due to the decrease in net unrealized losses on investment securities. During the current quarter, the Company completed its first stock repurchase plan, under which 908,256 shares of common stock were repurchased at an average cost of $20.15 per share.

 

At March 31, 2019, the Company’s book value per share and tangible book value per share were $15.63 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 March 31, 2019, the Bank was considered “well capitalized” under applicable regulatory guidelines.

 

Dividend

The Board of Directors declared a regular quarterly cash dividend of $0.04 per share. The dividend is payable on or about May 31, 2019 to stockholders of record on May 17, 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)

 

 

  

 

March 31,

 

 

June 30,

 

 

 

2019

 

 

2018

 

ASSETS

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

85,875

 

 

$

60,684

 

Federal funds sold

 

 

1,230

 

 

 

1,461

 

Cash and cash equivalents

 

 

87,105

 

 

 

62,145

 

Held to maturity debt securities, at amortized cost

  (fair value of $351,184 and $343,188, respectively)

 

 

354,000

 

 

 

353,183

 

Available for sale debt securities, at fair value

 

 

86,014

 

 

 

105,472

 

Total investment securities

 

 

440,014

 

 

 

458,655

 

Loans receivable, net of allowance for loan losses of $4,945 and $4,904, respectively

 

 

935,680

 

 

 

902,336

 

Accrued interest receivable

 

 

5,037

 

 

 

4,358

 

Federal Home Loan Bank stock

 

 

2,384

 

 

 

2,050

 

Premises and equipment, net

 

 

11,497

 

 

 

11,598

 

Deferred tax asset, net

 

 

2,372

 

 

 

2,622

 

Foreclosed real estate

 

 

653

 

 

 

460

 

Bank-owned life insurance

 

 

24,157

 

 

 

23,747

 

Goodwill

 

 

6,106

 

 

 

6,106

 

Other intangible assets

 

 

348

 

 

 

433

 

Other assets

 

 

8,405

 

 

 

5,677

 

Total assets

 

$

1,523,758

 

 

$

1,480,187

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Interest bearing deposits

 

$

1,064,294

 

 

$

1,025,574

 

Non-interest bearing deposits

 

 

137,899

 

 

 

131,883

 

Total deposits

 

 

1,202,193

 

 

 

1,157,457

 

Mortgage escrow funds

 

 

7,675

 

 

 

8,803

 

Advances from Federal Home Loan Bank

 

 

26,248

 

 

 

18,841

 

Other liabilities

 

 

9,326

 

 

 

7,527

 

Total liabilities

 

 

1,245,442

 

 

 

1,192,628

 

Commitments and contingencies

 

 

-

 

 

 

-

 

Preferred stock ($0.01 par value, 10,000,000 shares authorized, no shares issued or outstanding as of March 31, 2019 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 17,804,039 and 18,165,110 shares outstanding as of March 31, 2019 and June 30, 2018, respectively)

 

 

187

 

 

 

182

 

Additional paid in capital

 

 

181,066

 

 

 

179,045

 

Retained earnings

 

 

133,483

 

 

 

128,365

 

Unearned compensation - ESOP

 

 

(12,364

)

 

 

(13,083

)

Accumulated other comprehensive loss, net of income taxes

 

 

(5,751

)

 

 

(6,950

)

Treasury stock, at cost (908,256 shares as of March 31, 2019 and no shares as of June 30, 2018)

 

 

(18,305

)

 

 

-

 

Total shareholders' equity

 

 

278,316

 

 

 

287,559

 

Total liabilities and shareholders' equity

 

$

1,523,758

 

 

$

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

 

 

Nine Months Ended

 

 

 

March 31,

 

 

March 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable

 

$

10,413

 

 

$

9,103

 

 

$

30,632

 

 

$

27,092

 

Investment securities

 

 

2,619

 

 

 

2,368

 

 

 

7,413

 

 

 

6,882

 

Federal funds and other

 

 

614

 

 

 

177

 

 

 

1,450

 

 

 

628

 

Total interest and dividend income

 

 

13,646

 

 

 

11,648

 

 

 

39,495

 

 

 

34,602

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

2,741

 

 

 

1,380

 

 

 

7,172

 

 

 

3,954

 

FHLB advances

 

 

168

 

 

 

125

 

 

 

378

 

 

 

443

 

Total interest expense

 

 

2,909

 

 

 

1,505

 

 

 

7,550

 

 

 

4,397

 

Net interest income

 

 

10,737

 

 

 

10,143

 

 

 

31,945

 

 

 

30,205

 

Provision for loan losses

 

 

7

 

 

 

54

 

 

 

71

 

 

 

389

 

Net interest income after provision for loan losses

 

 

10,730

 

 

 

10,089

 

 

 

31,874

 

 

 

29,816

 

Noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges

 

 

436

 

 

 

352

 

 

 

1,311

 

 

 

1,145

 

Bank-owned life insurance

 

 

131

 

 

 

136

 

 

 

410

 

 

 

430

 

Gains on sales of securities, net

 

 

-

 

 

 

-

 

 

 

55

 

 

 

173

 

Other

 

 

12

 

 

 

24

 

 

 

364

 

 

 

170

 

Total noninterest income

 

 

579

 

 

 

512

 

 

 

2,140

 

 

 

1,918

 

Noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

5,757

 

 

 

4,800

 

 

 

16,341

 

 

 

14,530

 

Occupancy and equipment

 

 

1,340

 

 

 

1,326

 

 

 

3,865

 

 

 

3,904

 

Communications and data processing

 

 

476

 

 

 

477

 

 

 

1,430

 

 

 

1,447

 

Professional fees

 

 

396

 

 

 

465

 

 

 

1,182

 

 

 

1,257

 

Postage, printing, stationary and supplies

 

 

138

 

 

 

161

 

 

 

454

 

 

 

435

 

FDIC assessment

 

 

105

 

 

 

93

 

 

 

322

 

 

 

235

 

Advertising

 

 

131

 

 

 

112

 

 

 

349

 

 

 

456

 

Amortization of intangible assets

 

 

29

 

 

 

32

 

 

 

85

 

 

 

97

 

Other operating expenses

 

 

326

 

 

 

367

 

 

 

1,258

 

 

 

1,491

 

Total noninterest expense

 

 

8,698

 

 

 

7,833

 

 

 

25,286

 

 

 

23,852

 

Net income before income tax expense

 

 

2,611

 

 

 

2,768

 

 

 

8,728

 

 

 

7,882

 

Income tax expense

 

 

625

 

 

 

591

 

 

 

2,089

 

 

 

3,947

 

Net income

 

$

1,986

 

 

$

2,177

 

 

$

6,639

 

 

$

3,935

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.12

 

 

$

0.13

 

 

$

0.40

 

 

$

0.23

 

Diluted

 

$

0.12

 

 

$

0.13

 

 

$

0.40

 

 

$

0.23

 

Weighted average common shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

16,204,393

 

 

 

16,820,726

 

 

 

16,645,287

 

 

 

16,789,131

 

Diluted

 

 

16,261,755

 

 

 

16,820,726

 

 

 

16,659,746

 

 

 

16,789,131

 

 


 

5

 

 


 

 

 

 

PCSB Financial Corporation and Subsidiaries

Net Interest Margin Analysis (unaudited)

(dollar amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

2019

 

 

2018

 

 

Average Balance

 

 

Interest / Dividends

 

 

Average Rate

 

 

Average Balance

 

 

Interest / Dividends

 

 

Average Rate

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable

$

913,634

 

 

$

10,413

 

 

 

4.57

%

 

$

843,557

 

 

$

9,103

 

 

 

4.32

%

Investment securities

 

445,604

 

 

 

2,619

 

 

 

2.35

 

 

 

471,932

 

 

 

2,368

 

 

 

2.01

 

Other interest-earning assets

 

98,717

 

 

 

614

 

 

 

2.52

 

 

 

42,860

 

 

 

177

 

 

 

1.68

 

Total interest-earning assets

 

1,457,955

 

 

 

13,646

 

 

 

3.75

 

 

 

1,358,349

 

 

 

11,648

 

 

 

3.44

 

Non-interest-earning assets

 

58,541

 

 

 

 

 

 

 

 

 

 

 

56,874

 

 

 

 

 

 

 

 

 

Total assets

$

1,516,496

 

 

 

 

 

 

 

 

 

 

$

1,415,223

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW accounts

$

116,781

 

 

 

52

 

 

 

0.18

 

 

$

113,178

 

 

 

49

 

 

 

0.18

 

Money market accounts

 

126,438

 

 

 

368

 

 

 

1.18

 

 

 

42,448

 

 

 

50

 

 

 

0.48

 

Savings accounts and escrow

 

392,537

 

 

 

239

 

 

 

0.24

 

 

 

496,574

 

 

 

297

 

 

 

0.24

 

Time deposits

 

428,643

 

 

 

2,082

 

 

 

1.97

 

 

 

314,815

 

 

 

984

 

 

 

1.27

 

Total interest-bearing deposits

 

1,064,399

 

 

 

2,741

 

 

 

1.04

 

 

 

967,015

 

 

 

1,380

 

 

 

0.58

 

Federal Home Loan Bank advances

 

26,259

 

 

 

168

 

 

 

2.61

 

 

 

27,444

 

 

 

125

 

 

 

1.84

 

Total interest-bearing liabilities

 

1,090,658

 

 

 

2,909

 

 

 

1.08

 

 

 

994,459

 

 

 

1,505

 

 

 

0.62

 

Non-interest-bearing deposits

 

133,671

 

 

 

 

 

 

 

 

 

 

 

129,905

 

 

 

 

 

 

 

 

 

Other non-interest-bearing liabilities

 

11,242

 

 

 

 

 

 

 

 

 

 

 

6,719

 

 

 

 

 

 

 

 

 

Total liabilities

 

1,235,571

 

 

 

 

 

 

 

 

 

 

 

1,131,083

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

280,925

 

 

 

 

 

 

 

 

 

 

 

284,140

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

$

1,516,496

 

 

 

 

 

 

 

 

 

 

$

1,415,223

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

10,737

 

 

 

 

 

 

 

 

 

 

$

10,143

 

 

 

 

 

Interest rate spread (1)

 

 

 

 

 

 

 

 

 

2.67

 

 

 

 

 

 

 

 

 

 

 

2.82

 

Net interest margin (2)

 

 

 

 

 

 

 

 

 

2.94

 

 

 

 

 

 

 

 

 

 

 

2.99

 

Average interest-earning assets to interest-bearing liabilities

 

133.68

%

 

 

 

 

 

 

 

 

 

 

136.59

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended March 31,

 

 

2019

 

 

2018

 

 

Average Balance

 

 

Interest / Dividends

 

 

Average Rate

 

 

Average Balance

 

 

Interest / Dividends

 

 

Average Rate

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable

$

908,674

 

 

$

30,632

 

 

 

4.49

%

 

$

828,138

 

 

$

27,092

 

 

 

4.36

%

Investment securities

 

446,398

 

 

 

7,413

 

 

 

2.21

 

 

 

477,199

 

 

 

6,882

 

 

 

1.92

 

Other interest-earning assets

 

83,938

 

 

 

1,450

 

 

 

2.30

 

 

 

55,502

 

 

 

628

 

 

 

1.51

 

Total interest-earning assets

 

1,439,010

 

 

 

39,495

 

 

 

3.66

 

 

 

1,360,839

 

 

 

34,602

 

 

 

3.39

 

Non-interest-earning assets

 

55,334

 

 

 

 

 

 

 

 

 

 

 

57,927

 

 

 

 

 

 

 

 

 

Total assets

$

1,494,344

 

 

 

 

 

 

 

 

 

 

$

1,418,766

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW accounts

$

117,522

 

 

 

157

 

 

 

0.18

 

 

$

113,365

 

 

 

146

 

 

 

0.17

 

Money market accounts

 

95,407

 

 

 

788

 

 

 

1.10

 

 

 

33,854

 

 

 

93

 

 

 

0.37

 

Savings accounts and escrow

 

423,922

 

 

 

780

 

 

 

0.25

 

 

 

508,259

 

 

 

930

 

 

 

0.24

 

Time deposits

 

408,210

 

 

 

5,447

 

 

 

1.78

 

 

 

306,527

 

 

 

2,785

 

 

 

1.21

 

Total interest-bearing deposits

 

1,045,061

 

 

 

7,172

 

 

 

0.91

 

 

 

962,005

 

 

 

3,954

 

 

 

0.55

 

Federal Home Loan Bank advances

 

22,395

 

 

 

378

 

 

 

2.25

 

 

 

34,712

 

 

 

443

 

 

 

1.70

 

Total interest-bearing liabilities

 

1,067,456

 

 

 

7,550

 

 

 

0.94

 

 

 

996,717

 

 

 

4,397

 

 

 

0.59

 

Non-interest-bearing deposits

 

131,507

 

 

 

 

 

 

 

 

 

 

 

131,629

 

 

 

 

 

 

 

 

 

Other non-interest-bearing liabilities

 

8,344

 

 

 

 

 

 

 

 

 

 

 

7,590

 

 

 

 

 

 

 

 

 

Total liabilities

 

1,207,307

 

 

 

 

 

 

 

 

 

 

 

1,135,936

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

287,037

 

 

 

 

 

 

 

 

 

 

 

282,830

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

$

1,494,344

 

 

 

 

 

 

 

 

 

 

$

1,418,766

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

31,945

 

 

 

 

 

 

 

 

 

 

$

30,205

 

 

 

 

 

Interest rate spread (1)

 

 

 

 

 

 

 

 

 

2.72

 

 

 

 

 

 

 

 

 

 

 

2.80

 

Net interest margin (2)

 

 

 

 

 

 

 

 

 

2.96

 

 

 

 

 

 

 

 

 

 

 

2.96

 

Average interest-earning assets to interest-bearing liabilities

 

134.81

%