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Section 1: 8-K (8-K 6302019)

pcsb-8k_20190630.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): August 1, 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))

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, $0.01 par value per share

 

PCSB

 

The NASDAQ Stock Market, LLC

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 August 1, 2019, PCSB Financial Corporation, the holding company for PCSB Bank, issued an earnings release to report its financial results at and for the three months and year ended June 30, 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 August 1, 2019

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SIGNATURES

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

 

 

 

PCSB Financial Corporation

 

 

 

 

Date: August 1, 2019

 

By:

/s/ Jeffrey M. Helf

 

 

 

Jeffrey M. Helf

 

 

 

Senior 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 Fourth Fiscal Quarter and Year End Financial Results and

Declares Quarterly Cash Dividend

 

Yorktown Heights, New York; August 1, 2019 – PCSB Financial Corporation (the “Company”) (NASDAQ: PCSB), parent of PCSB Bank (the "Bank"), today announced its results for the three months and year ended June 30, 2019. For the three months ended June 30, 2019, net income was $1.7 million, or $0.10 per share, compared to $2.0 million, or $0.12 per share, for the three months ended March 31, 2019 and $2.7 million, or $0.16 per share, for the three months ended June 30, 2018. Provision for loan losses was $737,000, or $0.03 per share, net of tax, for the three months ended June 30, 2019, driven by a $157.4 million increase in net loans during the quarter. Net income was $8.3 million, or $0.50 per share, for the year ended June 30, 2019 compared to $6.6 million, or $0.39 per share, for the year ended June 30, 2018.

 

On a non-GAAP basis, which excludes certain nonrecurring items, the Company recorded net income of $1.7 million, or $0.10 per share for the three months ended June 30, 2019 as compared to net income of $2.0 million, or $0.12 per share for the three months ended March 31, 2019 and $2.2 million, or $0.13 per share, for the three months ended June 30, 2018. On a non-GAAP basis, the Company recorded net income of $8.2 million, or $0.50 per share, for the year ended June 30, 2019 compared to $7.6 million, or $0.46 per share, for the year ended June 30, 2018. Reconciliations of GAAP to non-GAAP measures appear at the end of this release.

 

In conjunction with grants made under the stockholder-approved 2018 Equity Incentive Plan, the Company recorded $829,000, or $627,000 net of taxes, of stock-based compensation expense in the current and prior quarter. No such expense was recorded in the prior year quarter. This additional expense reduced earnings per share by $0.04 in the current and prior quarter and had no impact in the prior year quarter as the plan was not in effect. Stock-based compensation expense for the year ended June 30, 2019 was $2.1 million, or $1.6 million net of taxes, or $0.10 per share, compared to no such expense in the year ended June 30, 2018.

 

President’s Comments

 

Commenting on the Company’s results, Joseph D. Roberto, Chairman, President and Chief Executive Officer of PCSB Financial Corporation, said, “I am pleased to report continued progress and strong growth in our core business as we complete our second fiscal year as a public company. Strong loan growth in the fourth quarter has resulted in a year over year 21.1% increase in total loan receivables while driving increased non-interest income through swap fees. Although the fourth quarter earnings were impacted by the loan loss provision on the growth in the loan portfolio, the increase in loans is expected to have a positive impact on future earnings. In addition, asset quality remains extremely strong as the ratio of non-performing assets to total assets decreased to 0.24% at June 30, 2019 from 0.43% at June 30, 2018.  We are also pleased to report that although our year over year net interest margin decreased 7 basis points to 2.96% from 3.03%, our linked quarter’s net interest margin held steady at 2.94%. During the fourth fiscal quarter we also announced the commencement of our second share repurchase program as we continue to deploy our excess capital. As we move forward in our third year as a public company, we hope to continue to build on these results in order to create value for our shareholders.”

 

Year End Results

 

Net income totaled $8.3 million for the year ended June 30, 2019, an increase of $1.7 million, or 26.0%, compared to $6.6 million for the year ended June 30, 2018. The increase is primarily due to a $1.1 million increase in net interest income, a $2.3 million decrease in income tax expense, and a $583,000 increase in noninterest income, partially offset by a $1.9 million increase in noninterest expense and an increase of $394,000 in the provision for loan losses. The increase in net interest income was primarily due to a $70.1 million, or 5.1%, increase in average interest earning assets, partially offset by a 7 basis point decrease in net interest margin. Despite continued asset growth and a higher yielding asset mix, which resulted in a 21 basis point increase in the yield on interest earning assets, the margin has been impacted by rising funding costs due to higher short-term interest rates along with competitive pricing, which caused a 37 basis point increase in the average cost of interest bearing liabilities. The income tax expense decrease is a result of a $1.6 million one-time deferred tax remeasurement charge recorded in the prior year, and a lower effective tax rate in the current year, both a result of federal tax reform legislation enacted in December 2017. The increase in noninterest income is largely due to a $507,000 increase in swap income. Despite continued improvements in asset quality, which resulted in minimal charge-offs and a decrease in the ratio

 

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of non-performing loans as a percent of total loans receivable from 0.66% as of June 30, 2018 to 0.25% as of June 30, 2019, a $190.8 million increase in the loan portfolio resulted in a provision for loan losses of $808,000 for the year, an increase of $394,000 compared to the prior year. As of June 30, 2019, the allowance for loan losses as a percent of total loans receivable was 0.52%, a decrease from 0.54% as of June 30, 2018.

 

Income Statement Summary

 

Net interest income decreased $673,000, or 5.9%, to $10.8 million for the three months ended June 30, 2019, compared to the same period in 2018 and increased $22,000 from the previous quarter. The decrease in net interest income compared to the prior year period is primarily a result of a 29 basis point decrease in net interest margin, partially offset by a $45.8 million, or 3.2%, increase in average interest earning assets. Included in prior year quarter net interest income is $879,000 of interest income recorded from the pay-off of two nonaccrual loans. Excluding this interest income, net interest margin for the quarter ended June 30, 2018 would have been 2.98%. Despite a 29 basis point increase in the yield on interest earning assets (adjusted for the impact of the nonaccrual loan interest discussed above), the cost of interest-bearing deposits increased 47 basis points to 1.12% for the three months ended June 30, 2019 compared to 0.65% for the three months ended June 30, 2018. The Company has experienced a shift in the deposit mix as some customers in lower yielding saving products moved to higher rate money market and time deposit accounts. The increase in average interest earning assets is primarily due to a $69.7 million increase in average loans, partially offset by a $28.3 million decrease in average investment securities.

 

Net interest income was largely unchanged compared to the prior quarter as a result of minimal growth in average interest earning assets and an unchanged net interest margin. Net interest margin remained at 2.94% as a 6 basis point increase in the yield on assets, driven by a shift from lower yielding cash and cash equivalent and investment securities into higher yielding loans, was offset by an 8 basis point increase in the cost of interest-bearing liabilities.

 

The provision for loan losses was $737,000 for the three months ended June 30, 2019 compared to $7,000 in the prior quarter and $25,000 for the same period in 2018. Charge-offs, net of recoveries, were $18,000 for the three months ended June 30, 2019 compared to $5,000 for the three months ended March 31, 2019 and recoveries, net of charge-offs, of $255,000 for the three months ended June 30, 2018.  Loans classified as substandard or doubtful decreased $559,000, or 6.2%, to $8.5 million at June 30, 2019 from $9.0 million at March 31, 2019 and decreased $6.9 million, or 45.0%, from $15.4 million at June 30, 2018. Non-performing loans as a percent of total loans receivable was 0.25% as of June 30, 2019, a decrease from 0.30% as of March 31, 2019 and 0.66% as of June 30, 2018.

 

Noninterest income increased $361,000 to $962,000 for the three months ended June 30, 2019 compared to the same period in 2018, primarily due to increases of $361,000 in swap income and $68,000 in fees and services charges, partially offset by a $56,000 decrease in gains on the sale of securities. Noninterest income increased $383,000 from the three months ended March 31, 2019, primarily due to a $361,000 increase in swap income.

 

Noninterest expense increased $444,000 to $8.7 million for the three months ended June 30, 2019 compared to the same period in 2018 and increased $10,000 compared to the three months ended March 31, 2019. The $444,000 increase from the prior year period was caused primarily by $829,000 of stock-based compensation expense recorded in the current quarter, compared to no such expense in the prior year period, partially offset by a $370,000 loss on a receivable recorded in the prior year quarter and a $15,000 decrease in all other noninterest expenses.

 

The effective income tax rate was 26.2% for the three months ended June 30, 2019, as compared to 23.9% for the three months ended March 31, 2019 and 28.7% for the three months ended June 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 $157.4 million to $1.64 billion at June 30, 2019 from $1.48 billion at June 30, 2018.  This increase was primarily due to an increase of $190.8 million in net loans receivable, partially offset by a decrease of $40.9 million in total investment securities. The $190.8 million increase in loans was the result of $213.6 million of originations and $94.5 million of loan purchases, partially offset by $117.3 million of net amortization and repayments on the remaining portfolio. Commercial mortgages increased $156.1 million or 31.5%, commercial

 

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loans increased $29.5 million, or 28.3%, and residential mortgages increased $14.6 million, or 5.8%, with net decreases in all other loan types of $9.4 million.

 

Total liabilities increased $163.6 million to $1.36 billion at June 30, 2019 from $1.19 billion at June 30, 2018.  This increase was primarily due to increases of $92.4 million in FHLB advances and $68.4 million, or 5.9%, in total deposits.

 

Total shareholders’ equity decreased $6.3 million to $281.3 million at June 30, 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 $2.2 million of cash dividends declared, partially offset by net income of $8.3 million, $4.1 million of stock-based compensation and reduction in unearned ESOP shares for plan shares earned during the period, and other comprehensive income of $1.9 million. During the current quarter, the Company announced its second stock repurchase plan, under which up to 890,021 shares may be repurchased, representing 5% of its outstanding shares of common stock.

 

At June 30, 2019, the Company’s book value per share and tangible book value per share were $15.80 and $15.44, 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 June 30, 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 August 30, 2019 to stockholders of record on August 16, 2019.


 

3

 

 


 

 

 

 

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

 


 

4

 

 


 

 

 

 

PCSB Financial Corporation and Subsidiaries

Consolidated Balance Sheets (unaudited)

(amounts in thousands, except share data)

 

 

 

 

June 30,

 

 

June 30,

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

58,756

 

 

$

60,684

 

Federal funds sold

 

 

1,273

 

 

 

1,461

 

Cash and cash equivalents

 

 

60,029

 

 

 

62,145

 

Held to maturity debt securities, at amortized cost

  (fair value of $346,243 and $343,188, respectively)

 

 

345,545

 

 

 

353,183

 

Available for sale debt securities, at fair value

 

 

72,228

 

 

 

105,472

 

Total investment securities

 

 

417,773

 

 

 

458,655

 

Loans receivable, net of allowance for loan losses of $5,664 and $4,904, respectively

 

 

1,093,121

 

 

 

902,336

 

Accrued interest receivable

 

 

4,797

 

 

 

4,358

 

Federal Home Loan Bank stock

 

 

6,255

 

 

 

2,050

 

Premises and equipment, net

 

 

11,802

 

 

 

11,598

 

Deferred tax asset, net

 

 

2,478

 

 

 

2,622

 

Foreclosed real estate

 

 

1,158

 

 

 

460

 

Bank-owned life insurance

 

 

24,291

 

 

 

23,747

 

Goodwill

 

 

6,106

 

 

 

6,106

 

Other intangible assets

 

 

323

 

 

 

433

 

Other assets

 

 

9,446

 

 

 

5,677

 

Total assets

 

$

1,637,579

 

 

$

1,480,187

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Interest bearing deposits

 

$

1,084,442

 

 

$

1,025,574

 

Non-interest bearing deposits

 

 

141,379

 

 

 

131,883

 

Total deposits

 

 

1,225,821

 

 

 

1,157,457

 

Mortgage escrow funds

 

 

9,355

 

 

 

8,803

 

Advances from Federal Home Loan Bank

 

 

111,216

 

 

 

18,841

 

Other liabilities

 

 

9,880

 

 

 

7,527

 

Total liabilities

 

 

1,356,272

 

 

 

1,192,628

 

Commitments and contingencies

 

 

-

 

 

 

-

 

Preferred stock ($0.01 par value, 10,000,000 shares authorized, no shares issued or outstanding as of June 30, 2019 and June 30, 2018)

 

 

-

 

 

 

-

 

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 June 30, 2019 and June 30, 2018, respectively)

 

 

187

 

 

 

182

 

Additional paid in capital

 

 

182,129

 

 

 

179,045

 

Retained earnings

 

 

134,500

 

 

 

128,365

 

Unearned compensation - ESOP

 

 

(12,114

)

 

 

(13,083

)

Accumulated other comprehensive loss, net of income taxes

 

 

(5,090

)

 

 

(6,950

)

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

 

 

(18,305

)

 

 

-

 

Total shareholders' equity

 

 

281,307

 

 

 

287,559

 

Total liabilities and shareholders' equity

 

$

1,637,579

 

 

$

1,480,187

 

 

 

 

 

 

 

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PCSB Financial Corporation and Subsidiaries

Consolidated Statements of Operations (unaudited)

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

 

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable

 

$

10,987

 

 

$

10,706

 

 

$

41,619

 

 

$

37,798

 

Investment securities

 

 

2,609

 

 

 

2,384

 

 

 

10,022

 

 

 

9,266

 

Federal funds and other

 

 

356

 

 

 

268

 

 

 

1,806

 

 

 

896

 

Total interest and dividend income

 

 

13,952

 

 

 

13,358

 

 

 

53,447

 

 

 

47,960

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

3,005

 

 

 

1,600

 

 

 

10,177

 

 

 

5,554

 

FHLB advances

 

 

188

 

 

 

326

 

 

 

566

 

 

 

769

 

Total interest expense

 

 

3,193

 

 

 

1,926

 

 

 

10,743

 

 

 

6,323

 

Net interest income

 

 

10,759

 

 

 

11,432

 

 

 

42,704

 

 

 

41,637

 

Provision for loan losses

 

 

737

 

 

 

25

 

 

 

808

 

 

 

414

 

Net interest income after provision for loan losses

 

 

10,022

 

 

 

11,407

 

 

 

41,896

 

 

 

41,223

 

Noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges

 

 

452

 

 

 

384

 

 

 

1,763

 

 

 

1,529

 

Bank-owned life insurance

 

 

134

 

 

 

138

 

 

 

544

 

 

 

568

 

Swap income

 

 

361

 

 

 

-

 

 

 

507

 

 

 

-

 

Gains on sales of securities, net

 

 

7

 

 

 

63

 

 

 

62

 

 

 

236

 

Other

 

 

8

 

 

 

16

 

 

 

226

 

 

 

186

 

Total noninterest income

 

 

962

 

 

 

601

 

 

 

3,102

 

 

 

2,519

 

Noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

5,270

 

 

 

4,889

 

 

 

21,611

 

 

 

19,419

 

Occupancy and equipment

 

 

1,320

 

 

 

1,289

 

 

 

5,185

 

 

 

5,193

 

Communications and data processing

 

 

523

 

 

 

527

 

 

 

1,953

 

 

 

1,974

 

Professional fees

 

 

369

 

 

 

452

 

 

 

1,551

 

 

 

1,709

 

Postage, printing, stationary and supplies

 

 

132

 

 

 

143

 

 

 

586

 

 

 

578

 

FDIC assessment

 

 

99

 

 

 

93

 

 

 

421

 

 

 

328

 

Advertising

 

 

-

 

 

 

-

 

 

 

349

 

 

 

456

 

Loss on receivable

 

 

-

 

 

 

370

 

 

 

90

 

 

 

570

 

Amortization of intangible assets

 

 

25

 

 

 

29

 

 

 

110

 

 

 

126

 

Other operating expenses

 

 

970

 

 

 

472

 

 

 

2,138

 

 

 

1,763

 

Total noninterest expense

 

 

8,708

 

 

 

8,264

 

 

 

33,994

 

 

 

32,116

 

Net income before income tax expense

 

 

2,276

 

 

 

3,744

 

 

 

11,004

 

 

 

11,626

 

Income tax expense

 

 

597

 

 

 

1,075

 

 

 

2,686

 

 

 

5,022

 

Net income

 

$

1,679

 

 

$

2,669

 

 

$

8,318

 

 

$

6,604

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.10

 

 

$

0.16

 

 

$

0.50

 

 

$

0.39

 

Diluted

 

$

0.10

 

 

$

0.16

 

 

$

0.50

 

 

$

0.39

 

Weighted average common shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

16,033,505

 

 

 

16,844,747

 

 

 

16,492,760

 

 

 

16,802,894

 

Diluted

 

 

16,099,846

 

 

 

16,844,747

 

 

 

16,527,117

 

 

 

16,802,894

 

 


 

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PCSB Financial Corporation and Subsidiaries

Net Interest Margin Analysis (unaudited)

(dollar amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

2019

 

 

2018

 

 

Average Balance

 

 

Interest / Dividends

 

 

Average Rate

 

 

Average Balance

 

 

Interest / Dividends

 

 

Average Rate

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable

$

970,707

 

 

$

10,987

 

 

 

4.53

%

 

$

900,998

 

 

$

10,706

 

 

 

4.75

%

Investment securities

 

436,903

 

 

 

2,609

 

 

 

2.39

 

 

 

465,206

 

 

 

2,384

 

 

 

2.05

 

Other interest-earning assets

 

55,988

 

 

 

356

 

 

 

2.55

 

 

 

51,605

 

 

 

268

 

 

 

2.09

 

Total interest-earning assets

 

1,463,598

 

 

 

13,952

 

 

 

3.81

 

 

 

1,417,809

 

 

 

13,358

 

 

 

3.77

 

Non-interest-earning assets

 

58,295

 

 

 

 

 

 

 

 

 

 

 

57,004

 

 

 

 

 

 

 

 

 

Total assets

$

1,521,893

 

 

 

 

 

 

 

 

 

 

$

1,474,813

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW accounts

$

120,577

 

 

 

53

 

 

 

0.18

 

 

$

115,711

 

 

 

51

 

 

 

0.18

 

Money market accounts

 

143,576

 

 

 

428

 

 

 

1.20

 

 

 

46,104

 

 

 

70

 

 

 

0.61

 

Savings accounts and escrow

 

373,238

 

 

 

239

 

 

 

0.26

 

 

 

484,463

 

 

 

293

 

 

 

0.24

 

Time deposits

 

434,073

 

 

 

2,285

 

 

 

2.11

 

 

 

343,027

 

 

 

1,186

 

 

 

1.39

 

Total interest-bearing deposits

 

1,071,464

 

 

 

3,005

 

 

 

1.12

 

 

 

989,305

 

 

 

1,600

 

 

 

0.65

 

Federal Home Loan Bank advances

 

29,283

 

 

 

188

 

 

 

2.57

 

 

 

66,740

 

 

 

326

 

 

 

1.96

 

Total interest-bearing liabilities

 

1,100,747

 

 

 

3,193

 

 

 

1.16

 

 

 

1,056,045

 

 

 

1,926

 

 

 

0.73

 

Non-interest-bearing deposits

 

133,706

 

 

 

 

 

 

 

 

 

 

 

125,898

 

 

 

 

 

 

 

 

 

Other non-interest-bearing liabilities

 

7,403

 

 

 

 

 

 

 

 

 

 

 

6,671

 

 

 

 

 

 

 

 

 

Total liabilities

 

1,241,856

 

 

 

 

 

 

 

 

 

 

 

1,188,614

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

280,037

 

 

 

 

 

 

 

 

 

 

 

286,199

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

$

1,521,893

 

 

 

 

 

 

 

 

 

 

$

1,474,813

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

10,759

 

 

 

 

 

 

 

 

 

 

$

11,432

 

 

 

 

 

Interest rate spread (1)

 

 

 

 

 

 

 

 

 

2.65

 

 

 

 

 

 

 

 

 

 

 

3.04

 

Net interest margin (2)

 

 

 

 

 

 

 

 

 

2.94

 

 

 

 

 

 

 

 

 

 

 

3.23

 

Average interest-earning assets to interest-bearing liabilities

 

132.96

%

 

 

 

 

 

 

 

 

 

 

134.26

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

 

 

 

 

 

 

 


 

7

 

 


 

 

 

 

PCSB Financial Corporation and Subsidiaries

Net Interest Margin Analysis (unaudited) - Continued

(dollar amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended June 30,

 

 

2019

 

 

2018

 

 

Average Balance

 

 

Interest / Dividends

 

 

Average Rate

 

 

Average Balance

 

 

Interest / Dividends

 

 

Average Rate

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable

$

924,182

 

 

$

41,619

 

 

 

4.50

%

 

$

846,353

 

 

$

37,798

 

 

 

4.47

%

Investment securities

 

444,024

 

 

 

10,022

 

 

 

2.26

 

 

 

474,201

 

 

 

9,266

 

 

 

1.95

 

Other interest-earning assets

 

76,950

 

 

 

1,806

 

 

 

2.35

 

 

 

54,528

 

 

 

896

 

 

 

1.64

 

Total interest-earning assets

 

1,445,156

 

 

 

53,447

 

 

 

3.70

 

 

 

1,375,082

 

 

 

47,960

 

 

 

3.49

 

Non-interest-earning assets

 

56,075

 

 

 

 

 

 

 

 

 

 

 

57,696

 

 

 

 

 

 

 

 

 

Total assets

$

1,501,231

 

 

 

 

 

 

 

 

 

 

$

1,432,778

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW accounts

$

118,286

 

 

 

210

 

 

 

0.18

 

 

$

113,952

 

 

 

197

 

 

 

0.17

 

Money market accounts

 

107,449

 

 

 

1,216

 

 

 

1.13

 

 

 

36,917

 

 

 

163

 

 

 

0.44

 

Savings accounts and escrow

 

411,251

 

 

 

1,019

 

 

 

0.25

 

 

 

502,310

 

 

 

1,223

 

 

 

0.24

 

Time deposits

 

414,676

 

 

 

7,732

 

 

 

1.86

 

 

 

315,652

 

 

 

3,971

 

 

 

1.26

 

Total interest-bearing deposits

 

1,051,662

 

 

 

10,177

 

 

 

0.97

 

 

 

968,831

 

 

 

5,554

 

 

 

0.57

 

Federal Home Loan Bank advances

 

24,117

 

 

 

566

 

 

 

2.34

 

 

 

42,719

 

 

 

769

 

 

 

1.80

 

Total interest-bearing liabilities

 

1,075,779

 

 

 

10,743

 

 

 

1.00

 

 

 

1,011,550

 

 

 

6,323

 

 

 

0.63

 

Non-interest-bearing deposits

 

132,057

 

 

 

 

 

 

 

 

 

 

 

130,196

 

 

 

 

 

 

 

 

 

Other non-interest-bearing liabilities

 

8,108

 

 

 

 

 

 

 

 

 

 

 

7,360

 

 

 

 

 

 

 

 

 

Total liabilities

 

1,215,944

 

 

 

 

 

 

 

 

 

 

 

1,149,106

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

285,287

 

 

 

 

 

 

 

 

 

 

 

283,672

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

$

1,501,231

 

 

 

 

 

 

 

 

 

 

$

1,432,778

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income