Exhibit 99.1

 

PCSB Financial Corporation Announces Second Fiscal Quarter Financial Results and

Declares Quarterly Cash Dividend

 

Yorktown Heights, New York; January 23, 2020 – PCSB Financial Corporation (the “Company”) (NASDAQ: PCSB), parent of PCSB Bank (the "Bank"), today announced net income of $2.4 million, or $0.14 per diluted share, for the three months ended December 31, 2019 compared to $2.8 million, or $0.18 per diluted share, for the three months ended September 30, 2019 and $2.3 million, or $0.14 per diluted share, for the three months ended December 31, 2018. Net income for the six months ended December 31, 2019 was $5.2 million, or $0.32 per diluted share, compared to $4.7 million, or $0.28 per diluted share, for the same period last year.

 

On a non-GAAP basis, which excludes certain nonrecurring items, the Company recorded adjusted net income of $2.3 million, or $0.14 per diluted share for the three months ended December 31, 2019 as compared to adjusted net income of $2.4 million, or $0.15 per diluted share, for the three months ended September 30, 2019 and $2.1 million, or $0.13 per diluted share, for the three months ended December 31, 2018. Adjusted net income for the six months ended December 31, 2019 was $4.7 million, or $0.29 per diluted share, compared to $4.4 million, or $0.26 per diluted share, for the same period last 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 February 28, 2020 to stockholders of record as of the close of business on February 14, 2020.

 

Second Quarter 2020 Highlights

 

 

Diluted earnings per share of $0.14 for the current quarter unchanged from the prior year quarter.

 

Net interest income of $11.7 million, an increase of $953,000, or 8.9%, compared to the same quarter last year. Fiscal year-to-date net interest income of $23.7 million, an 11.7% increase from the prior year.

 

The net interest margin was 2.93% for the quarter, a decrease from 2.99% for the same quarter last year.

 

The efficiency ratio was 71.82% for the quarter, compared to 73.56% for the same quarter last year.

 

Total loans receivable of $1.18 billion, representing year-to-date growth of $90.6 million, or 8.3%, and year-over-year growth of $279.4 million, or 30.9%.

 

Nonperforming loans decreased $1.8 million, or 52.6%, during the quarter to $1.6 million equating to 0.14% of gross loans receivable.

 

Loan to deposit ratio was 94.58%, an increase from 73.81% as of the same quarter last year.

 

The Company repurchased 251,931 shares of common stock during the quarter at a total cost of $5.1 million, or an average cost of $20.12 per share.

 

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 with the solid growth in our core business through the first six months of our third year as a public company.  Loan volume remains strong, as evidenced by the $90.6 million, or 8.3%, increase in net loans over the six-month period. This growth resulted in a loan to deposit ratio of 94.58%, increasing from 89.17% at June 30, 2019.  Asset quality continues to remain strong as non-performing assets as a percent of total assets was 0.12% as compared to 0.27% a year ago.  Our net interest margin of 2.93% is down 6 basis points from 2.99% in the year ago period as a result of the continued low interest rate environment along with competitive loan and deposit pricing. However, we are pleased that our linked quarters’ cost of deposits has leveled off and we will look to take advantage of opportunities to reduce this cost.  As we move forward, we remain focused on enhancing shareholder value through continued growth in our core business together with capital management techniques such as share repurchases and dividends.    

 

Income Statement Summary

 

Net interest income was $11.7 million for the quarter ended December 31, 2019, a decrease of $301,000, or 2.5%, compared to the quarter ended September 30, 2019, and an increase of $953,000, or 8.9%, compared to quarter ended December 31, 2018. The increase in net interest income compared to the prior year is primarily the result of

 

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an increase in average net interest earning assets, as the Company has accomplished 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 declined compared to the quarter ended September 30, 2019 as a result of margin compression, largely resulting from higher prepayment income earned in the prior quarter.

 

The net interest margin was 2.93% for the current quarter, decreases of 10 basis points compared to 3.03% in the prior quarter and 6 basis points compared to 2.99% in the prior year quarter. Excluding non-recurring prepayment income earned in these periods, net interest margin for the current quarter would have been 2.90%, unchanged from the prior quarter and a decrease from 2.97% in the prior year quarter. Despite continued asset growth and a shift in the asset mix, rising funding costs due to higher short-term interest rates along with competitive loan and deposit pricing has resulted in net interest margin compression.

 

The yield on interest-earning assets for the current quarter was 3.94%, a 10 basis point decrease from the prior quarter, however this represents a 26 basis point increase from the prior year quarter. Excluding the effects of prepayment income, the yield on interest-earning assets was 3.91% for the current quarter, a decrease of one basis point from the prior quarter as a higher yielding asset mix was more than offset by downward pressures on market interest rates.

 

The cost of interest-bearing deposits was 1.20% for the current quarter, unchanged from the prior quarter and an increase of 29 basis points from 0.91% for the prior year quarter. The Company has experienced a shift in the deposit mix over the past several quarters as customers in generally lower costing savings products moved to generally higher rate money market and time deposits, however the pace of this shift has slowed in recent quarters. The cost of interest-bearing liabilities was 1.31% for the current quarter, a decrease of 1 basis point from 1.32% for the prior quarter and an increase of 38 basis points from 0.93% for the prior year quarter.

 

The provision for loan losses was $412,000 for the three months ended December 31, 2019 compared to $335,000 in the prior quarter and $6,000 for the same quarter in 2018. Charge-offs, net of recoveries, were $189,000 for the three months ended December 31, 2019 compared to $6,000 for the three months ended September 30, 2019 and $22,000 for the three months ended December 31, 2018.  Current quarter charge-offs related primarily to one commercial loan relationship. Loans classified as substandard or doubtful decreased $6.3 million, or 56.2%, to $4.9 million at December 31, 2019 from $11.3 million at September 30, 2019 and decreased $5.3 million, or 51.5%, from $10.2 million at December 31, 2018. Non-performing loans as a percent of total loans receivable was 0.14% as of December 31, 2019, a decrease from 0.29% as of September 30, 2019 and 0.39% as of December 31, 2018.

 

Noninterest income of $547,000 for the three months ended December 31, 2019 decreased $218,000 compared to the three months ended September 30, 2019, primarily due to a $170,000 decrease in swap income and a $47,000 decrease in gains on sale of foreclosed real estate. Noninterest income decreased $373,000 compared to the same period in 2018, primarily due to decreases of $155,000 in gains on sale of bank premises, $75,000 in swap income, $56,000 in deposit-related fees, $55,000 in gains on sales of securities and $24,000 in gains on sale of foreclosed real estate.

 

Noninterest expense of $8.8 million for the three months ended December 31, 2019 was largely unchanged compared to the three months ended September 30, 2019 and increased $214,000 compared to the same period in 2018. The $214,000 increase from the prior year period was caused primarily by a $583,000 increase in salaries and employee benefits, partially offset by a $124,000 decrease in FDIC assessment costs, a $90,000 loss on a receivable recorded in the prior quarter and net decreases in all other operating expenses. The increase in salaries and employee benefits was caused primarily by increases of $347,000 in stock-based compensation and $251,000 in other compensation. During the current quarter, the Bank applied small bank assessment credits of $108,000 which fully offset the Bank’s FDIC assessment for the current quarter. The remaining credits available are approximately $131,000.

 

The effective income tax rate was 22.5% for the three months ended December 31, 2019, as compared to 22.3% for the three months ended September 30, 2019 and 24.5% for the three months ended December 31, 2018.

 

 

 

 

 

 

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Balance Sheet Summary

 

Total assets increased $11.6 million to $1.65 billion at December 31, 2019 from $1.64 billion at June 30, 2019.  This increase was primarily due to increases of $90.6 million, or 8.3%, in net loans receivable and $11.6 million in premises and equipment, partially offset by a decrease of $89.9 million in total investment securities. The $90.6 million increase in loans was the result of $111.6 million of originations and $44.1 million of loan purchases, partially offset by $65.1 million of net amortization and repayments. Commercial mortgages increased $89.8 million, or 13.8%, and construction loans increased $9.6 million, or 72.2%, while commercial loans, residential mortgages and home equity lines of credit all had immaterial decreases.

 

Total liabilities increased $13.1 million to $1.37 billion at December 31, 2019 from $1.36 billion at June 30, 2019.  This increase was primarily due to a $26.5 million, or 2.1%, increase in deposits and escrow accounts and an $11.6 million increase in other liabilities, as a result of recording a $12.0 million lease liability (a related lease asset was also recorded as part of bank premises and equipment) associated with the adoption of new lease accounting standards, partially offset by a $25.1 million decrease in FHLB advances.

 

Total shareholders’ equity decreased $1.5 million to $279.8 million at December 31, 2019 from $281.3 million at June 30, 2019.  This decrease was primarily due to the repurchase of $8.6 million (431,731 shares) of common stock and $1.3 million of cash dividends declared and paid, partially offset by net income of $5.2 million, as well as $2.6 million of stock-based compensation and reduction in unearned ESOP shares for plan shares earned during the period. As of December 31, 2019, there were 474,171 shares available to be repurchased under the current stock repurchase plan.

 

At December 31, 2019, the Company’s book value per share and tangible book value per share were $16.11 and $15.74, 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 December 31, 2019, 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 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

 

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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

 

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PCSB Financial Corporation and Subsidiaries

Consolidated Balance Sheets (unaudited)

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

 

 

 

 

December 31,

 

 

June 30,

 

 

 

2019

 

 

2019

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

61,603

 

 

$

58,756

 

Federal funds sold

 

 

1,232

 

 

 

1,273

 

Cash and cash equivalents

 

 

62,835

 

 

 

60,029

 

Held to maturity debt securities, at amortized cost

  (fair value of $274,850 and $346,243, respectively)

 

 

273,381

 

 

 

345,545

 

Available for sale debt securities, at fair value

 

 

54,454

 

 

 

72,228

 

Total investment securities

 

 

327,835

 

 

 

417,773

 

Loans receivable, net of allowance for loan losses of $6,216 and $5,664, respectively

 

 

1,183,740

 

 

 

1,093,121

 

Accrued interest receivable

 

 

4,932

 

 

 

4,797

 

FHLB stock

 

 

5,127

 

 

 

6,255

 

Premises and equipment, net

 

 

23,438

 

 

 

11,802

 

Deferred tax asset, net

 

 

1,956

 

 

 

2,478

 

Foreclosed real estate

 

 

279

 

 

 

1,158

 

Bank-owned life insurance

 

 

24,562

 

 

 

24,291

 

Goodwill

 

 

6,106

 

 

 

6,106

 

Other intangible assets

 

 

274

 

 

 

323

 

Other assets

 

 

8,083

 

 

 

9,446

 

Total assets

 

$

1,649,167

 

 

$

1,637,579

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Interest bearing deposits

 

$

1,111,396

 

 

$

1,084,442

 

Non-interest bearing deposits

 

 

140,218

 

 

 

141,379

 

Total deposits

 

 

1,251,614

 

 

 

1,225,821

 

Mortgage escrow funds

 

 

10,049

 

 

 

9,355

 

Advances from Federal Home Loan Bank

 

 

86,153

 

 

 

111,216

 

Other liabilities

 

 

21,512

 

 

 

9,880

 

Total liabilities

 

 

1,369,328

 

 

 

1,356,272

 

Commitments and contingencies

 

 

-

 

 

 

-

 

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

 

 

-

 

 

 

-

 

Common stock ($0.01 par value, 200,000,000 shares authorized, 18,712,295 shares issued as of December 31, 2019 and June 30, 2019, and 17,372,308 and 17,804,039 shares outstanding as of December 31, 2019 and June 30, 2019, respectively)

 

 

187

 

 

 

187

 

Additional paid in capital

 

 

184,276

 

 

 

182,129

 

Retained earnings

 

 

138,373

 

 

 

134,500

 

Unearned compensation - ESOP

 

 

(11,626

)

 

 

(12,114

)

Accumulated other comprehensive loss, net of income taxes

 

 

(4,474

)

 

 

(5,090

)

Treasury stock, at cost (1,339,987 and 908,256 shares as of December 31, 2019 and June 30, 2019, respectively)

 

 

(26,897

)

 

 

(18,305

)

Total shareholders' equity

 

 

279,839

 

 

 

281,307

 

Total liabilities and shareholders' equity

 

$

1,649,167

 

 

$

1,637,579

 

 

 

 

 

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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

 

 

Six Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable

 

$

13,149

 

 

$

10,321

 

 

$

26,185

 

 

$

20,219

 

Investment securities

 

 

2,279

 

 

 

2,428

 

 

 

4,971

 

 

 

4,794

 

Federal funds and other

 

 

301

 

 

 

491

 

 

 

599

 

 

 

836

 

Total interest and dividend income

 

 

15,729

 

 

 

13,240

 

 

 

31,755

 

 

 

25,849

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits and escrow interest

 

 

3,358

 

 

 

2,375

 

 

 

6,659

 

 

 

4,431

 

FHLB advances

 

 

674

 

 

 

121

 

 

 

1,401

 

 

 

210

 

Total interest expense

 

 

4,032

 

 

 

2,496

 

 

 

8,060

 

 

 

4,641

 

Net interest income

 

 

11,697

 

 

 

10,744

 

 

 

23,695

 

 

 

21,208

 

Provision for loan losses

 

 

412

 

 

 

6

 

 

 

747

 

 

 

64

 

Net interest income after provision for loan losses

 

 

11,285

 

 

 

10,738

 

 

 

22,948

 

 

 

21,144

 

Noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges

 

 

402

 

 

 

457

 

 

 

804

 

 

 

875

 

Bank-owned life insurance

 

 

134

 

 

 

139

 

 

 

271

 

 

 

279

 

Swap income

 

 

-

 

 

 

75

 

 

 

170

 

 

 

146

 

Gains on sales of securities, net

 

 

-

 

 

 

55

 

 

 

-

 

 

 

55

 

Other

 

 

11

 

 

 

194

 

 

 

67

 

 

 

206

 

Total noninterest income

 

 

547

 

 

 

920

 

 

 

1,312

 

 

 

1,561

 

Noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

5,889

 

 

 

5,306

 

 

 

11,653

 

 

 

10,328

 

Occupancy and equipment

 

 

1,333

 

 

 

1,284

 

 

 

2,648

 

 

 

2,525

 

Communications and data processing

 

 

507

 

 

 

482

 

 

 

1,038

 

 

 

954

 

Professional fees

 

 

379

 

 

 

417

 

 

 

783

 

 

 

786

 

Postage, printing, stationary and supplies

 

 

159

 

 

 

178

 

 

 

299

 

 

 

316

 

FDIC assessment

 

 

-

 

 

 

124

 

 

 

-

 

 

 

217

 

Advertising

 

 

100

 

 

 

131

 

 

 

200

 

 

 

218

 

Amortization of intangible assets

 

 

25

 

 

 

28

 

 

 

49

 

 

 

56

 

Other operating expenses

 

 

402

 

 

 

630

 

 

 

911

 

 

 

1,188

 

Total noninterest expense

 

 

8,794

 

 

 

8,580

 

 

 

17,581

 

 

 

16,588

 

Net income before income tax expense

 

 

3,038

 

 

 

3,078

 

 

 

6,679

 

 

 

6,117

 

Income tax expense

 

 

685

 

 

 

754

 

 

 

1,497

 

 

 

1,464

 

Net income

 

$

2,353

 

 

$

2,324

 

 

$

5,182

 

 

$

4,653

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.15

 

 

$

0.14

 

 

$

0.33

 

 

$

0.28

 

Diluted

 

$

0.14

 

 

$

0.14

 

 

$

0.32

 

 

$

0.28

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

15,837,762

 

 

 

16,852,718

 

 

 

15,908,761

 

 

 

16,860,942

 

Diluted

 

 

15,909,855

 

 

 

16,868,464

 

 

 

15,996,251

 

 

 

16,868,815

 

 


 

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PCSB Financial Corporation and Subsidiaries

Net Interest Margin Analysis (unaudited)

(dollar amounts in thousands)

 

 

 

Three Months Ended December 31,

 

 

2019

 

 

2018

 

 

Average Balance

 

 

Interest / Dividends

 

 

Average Rate

 

 

Average Balance

 

 

Interest / Dividends

 

 

Average Rate

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable

$

1,178,253

 

 

$

13,149

 

 

 

4.46

%

 

$

909,368

 

 

$

10,321

 

 

 

4.53

%

Investment securities

 

358,760

 

 

 

2,279

 

 

 

2.54

 

 

 

439,919

 

 

 

2,428

 

 

 

2.21

 

Other interest-earning assets

 

59,678

 

 

 

301

 

 

 

2.00

 

 

 

86,527

 

 

 

491

 

 

 

2.25

 

Total interest-earning assets

 

1,596,691

 

 

 

15,729

 

 

 

3.94

 

 

 

1,435,814

 

 

 

13,240

 

 

 

3.68

 

Non-interest-earning assets

 

68,793

 

 

 

 

 

 

 

 

 

 

 

55,135

 

 

 

 

 

 

 

 

 

Total assets

$

1,665,484

 

 

 

 

 

 

 

 

 

 

$

1,490,949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW accounts

$

122,455

 

 

 

67

 

 

 

0.22

 

 

$

116,381

 

 

 

52

 

 

 

0.18

 

Money market accounts

 

161,075

 

 

 

472

 

 

 

1.16

 

 

 

100,075

 

 

 

280

 

 

 

1.11

 

Savings accounts and escrow

 

355,295

 

 

 

234

 

 

 

0.26

 

 

 

416,687

 

 

 

252

 

 

 

0.24

 

Time deposits

 

467,486

 

 

 

2,585

 

 

 

2.19

 

 

 

403,652

 

 

 

1,791

 

 

 

1.76

 

Total interest-bearing deposits

 

1,106,311

 

 

 

3,358

 

 

 

1.20

 

 

 

1,036,795

 

 

 

2,375

 

 

 

0.91

 

FHLB advances

 

117,712

 

 

 

674

 

 

 

2.27

 

 

 

22,106

 

 

 

121

 

 

 

2.15

 

Total interest-bearing liabilities

 

1,224,023

 

 

 

4,032

 

 

 

1.31

 

 

 

1,058,901

 

 

 

2,496

 

 

 

0.93

 

Non-interest-bearing deposits

 

138,346

 

 

 

 

 

 

 

 

 

 

 

134,694

 

 

 

 

 

 

 

 

 

Other non-interest-bearing liabilities

 

21,827

 

 

 

 

 

 

 

 

 

 

 

6,506

 

 

 

 

 

 

 

 

 

Total liabilities

 

1,384,196

 

 

 

 

 

 

 

 

 

 

 

1,200,101

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

281,288

 

 

 

 

 

 

 

 

 

 

 

290,848

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

$

1,665,484

 

 

 

 

 

 

 

 

 

 

$

1,490,949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

11,697

 

 

 

 

 

 

 

 

 

 

$

10,744

 

 

 

 

 

Interest rate spread (1)

 

 

 

 

 

 

 

 

 

2.63

 

 

 

 

 

 

 

 

 

 

 

2.75

 

Net interest margin (2)

 

 

 

 

 

 

 

 

 

2.93

 

 

 

 

 

 

 

 

 

 

 

2.99

 

Average interest-earning assets to interest-bearing liabilities

 

130.45

%

 

 

 

 

 

 

 

 

 

 

135.59

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

 

 

7

 

 


 

 

 

 

PCSB Financial Corporation and Subsidiaries

Net Interest Margin Analysis (unaudited)

(dollar amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended December 31,

 

 

2019

 

 

2018

 

 

Average Balance

 

 

Interest / Dividends

 

 

Average Rate

 

 

Average Balance

 

 

Interest / Dividends

 

 

Average Rate

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable

$

1,160,139

 

 

$

26,185

 

 

 

4.51

%

 

$

906,194

 

 

$

20,219

 

 

 

4.46

%

Investment securities

 

378,975

 

 

 

4,971

 

 

 

2.62

 

 

 

446,795

 

 

 

4,794

 

 

 

2.15

 

Other interest-earning assets

 

52,796

 

 

 

599

 

 

 

2.25

 

 

 

76,875

 

 

 

836

 

 

 

2.16

 

Total interest-earning assets

 

1,591,910

 

 

 

31,755

 

 

 

3.99

 

 

 

1,429,864

 

 

 

25,849

 

 

 

3.61

 

Non-interest-earning assets

 

69,530

 

 

 

 

 

 

 

 

 

 

 

55,193

 

 

 

 

 

 

 

 

 

Total assets

$

1,661,440

 

 

 

 

 

 

 

 

 

 

$

1,485,057

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW accounts

$

121,154

 

 

 

124

 

 

 

0.20

 

 

$

117,893

 

 

 

105

 

 

 

0.18

 

Money market accounts

 

155,477

 

 

 

935

 

 

 

1.19

 

 

 

80,877

 

 

 

419

 

 

 

1.03

 

Savings accounts and escrow

 

358,932

 

 

 

466

 

 

 

0.26

 

 

 

439,615

 

 

 

540

 

 

 

0.25

 

Time deposits

 

463,417

 

 

 

5,134

 

 

 

2.20

 

 

 

397,994

 

 

 

3,367

 

 

 

1.68

 

Total interest-bearing deposits

 

1,098,980

 

 

 

6,659

 

 

 

1.20

 

 

 

1,036,379

 

 

 

4,431

 

 

 

0.85

 

FHLB advances

 

119,784

 

 

 

1,401

 

 

 

2.32

 

 

 

20,463

 

 

 

210

 

 

 

2.03

 

Total interest-bearing liabilities

 

1,218,764

 

 

 

8,060

 

 

 

1.32

 

 

 

1,056,842

 

 

 

4,641

 

 

 

0.87

 

Non-interest-bearing deposits

 

139,486

 

 

 

 

 

 

 

 

 

 

 

131,228

 

 

 

 

 

 

 

 

 

Other non-interest-bearing liabilities

 

21,519

 

 

 

 

 

 

 

 

 

 

 

6,894

 

 

 

 

 

 

 

 

 

Total liabilities

 

1,379,769

 

 

 

 

 

 

 

 

 

 

 

1,194,964

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

281,671

 

 

 

 

 

 

 

 

 

 

 

290,093

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

$

1,661,440

 

 

 

 

 

 

 

 

 

 

$

1,485,057

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

23,695

 

 

 

 

 

 

 

 

 

 

$

21,208

 

 

 

 

 

Interest rate spread (1)

 

 

 

 

 

 

 

 

 

2.67

 

 

 

 

 

 

 

 

 

 

 

2.74

 

Net interest margin (2)

 

 

 

 

 

 

 

 

 

2.98

 

 

 

 

 

 

 

 

 

 

 

2.97

 

Average interest-earning assets to interest-bearing liabilities

 

130.62

%

 

 

 

 

 

 

 

 

 

 

135.30

%