PCSB Financial Corporation Announces Fourth Fiscal Quarter and Year End Financial Results and Declares Quarterly Cash Dividend
PCSB Financial Corporation reported a net income of $3.4 million, or $0.23 per diluted share, for Q4 2021, down from $3.6 million in Q3 but up from $3.0 million in Q4 2020. Annual net income rose to $12.4 million, or $0.84 per share, compared to $9.4 million the previous year. The company declared a $0.06 quarterly cash dividend. Notable highlights include an 8.1% increase in net interest income for the quarter and a 5.8% increase in average deposits. However, non-performing loans rose to 0.48% of total net loans.
- Net income for the year increased by 31.9% to $12.4 million.
- Quarterly net interest income rose by 8.1% to $12.6 million.
- Average deposits grew by 5.8% quarter-over-quarter.
- The company's efficiency ratio improved to 67.43% from 70.10% in the prior quarter.
- Net income decreased by $182,000 compared to the last quarter.
- Non-performing loans increased to 0.48% from 0.17% in the prior quarter.
- Loan deferrals related to COVID-19 totaled $27.3 million.
YORKTOWN HEIGHTS, N.Y., Aug. 05, 2021 (GLOBE NEWSWIRE) -- PCSB Financial Corporation (the “Company”) (NASDAQ: PCSB), parent of PCSB Bank (the "Bank"), today announced net income of
Results for the year ended June 30, 2021 include a benefit for loan losses of
On July 28, 2021, the Board of Directors declared a regular quarterly cash dividend of
Fourth Quarter and Year End Highlights
- Earnings before income tax expense and provision for loan losses of
$4.3 million for the current quarter increased17.1% from the linked quarter and4.4% from the same quarter last year. Earnings before income tax expense and provision for loan losses of$15.1 million for the current year was unchanged from the prior year. - Net interest income of
$12.6 million for the current quarter increased8.1% from the linked quarter and9.8% from the same quarter last year. Net interest income of$47.3 million for the current year increased1.4% from the prior year. - Tax equivalent net interest margin was
2.81% for the current quarter, an increase from2.69% in the linked quarter and2.73% for the same quarter last year. Tax equivalent net interest margin was2.73% for the current year, a decrease from2.89% in the prior year. - The average cost of interest-bearing deposits was
0.48% for the current quarter, a decrease from0.59% in the linked quarter and0.97% for the same quarter last year. The average cost of interest-bearing deposit was0.64% for the current year, a decrease from1.14% in the prior year. - The efficiency ratio was
67.43% for the current quarter compared to70.10% for the linked quarter and67.53% for the prior year quarter. The efficiency ratio was69.73% for the current year compared to69.62% in the prior year. - Average loans receivable, excluding SBA Paycheck Protection Program (“PPP”) loans, of
$1.20 billion for the current quarter, a decrease from$1.23 billion in the same quarter last year. - Average deposits of
$1.48 billion for the current quarter, increases of5.8% and10.1% compared to the linked quarter and same quarter last year, respectively. - Allowance for loan losses to total net loans receivable (excluding PPP loans) of
0.66% as of June 30, 2021, a decrease from0.71% as of June 30, 2020. - Non-performing loans of
$5.8 million , or0.48% of total net loans receivable (excluding PPP loans), as of June 30, 2021, compared to0.17% as of March 31, 2021 and0.15% as of June 30, 2020. The increase in the current quarter was the result of one commercial mortgage with an LTV of53.9% upon origination being placed on nonaccrual status. - Loans on a COVID-19 related payment deferral totaled
$27.3 million , or2.21% of gross loans, compared to$34.4 million , or2.71% of gross loans as of March 31, 2021. Loans on deferral totaling$12.5 million ,$1.3 million and$13.5 million are scheduled to resume payments in the next three consecutive quarters, respectively.
President’s Comments
Joseph D. Roberto, Chairman, President & Chief Executive Officer of PCSB Financial Corporation, commented, “We are pleased with the Company’s solid operating and financial results for the fourth quarter and year ended June 30, 2021. I am proud of what our team achieved over the past 12 months during a time of disruption and uncertainty presented by the pandemic, especially during the first half of our fiscal year. Our employees came together and provided vital support to our communities during this difficult period. That support included participation in the PPP program, loan payment deferrals, loan modifications and fee waivers. All of this was accomplished while adjusting to a new work environment and all the challenges that it presented operationally. As the economy continues to improve, PCSB with strong liquidity and capital is well positioned to build on these results in fiscal 2022 and continue to create value for our shareholders.”
Income Statement Summary
Net income for the three months ended June 30, 2021 was
Net interest income was
The tax equivalent net interest margin was
The Company recognized PPP loan interest and origination fee income (net of costs) of
Tax equivalent yield on interest-earning assets for the current quarter was
The cost of interest-bearing deposits was
The provision for loan losses was
The table below provides additional detail for those loans on deferral as of June 30, 2021 (dollar amounts in thousands):
Industry Sector: | Number of loans | Recorded Investment (2) (3) | % secured by real estate collateral | Loan-to- Value % (4) | Weighted average term of remaining deferral (in months) | |||||
Consumer (1) | 7 | $ | 3,147 | 100.0 | % | 57.5 | % | 0.3 | ||
Commercial: | ||||||||||
Retail | 3 | 11,591 | 100.0 | 48.7 | 4.8 | |||||
Hotels and accommodation services | 2 | 7,648 | 100.0 | 55.6 | 0.6 | |||||
Food service | 2 | 3,018 | 100.0 | 59.8 | 6.1 | |||||
All other commercial | 5 | 1,903 | 89.2 | 70.0 | 2.2 | |||||
Total commercial | 12 | 24,160 | 99.2 | 57.8 | 3.9 | |||||
Total | 19 | $ | 27,307 | 99.2 | % | 57.7 | % | 3.5 | ||
(1) Includes first and second lien residential mortgages of | ||||||||||
(2) Includes loans classified as special mention and substandard of | ||||||||||
(3) Includes | ||||||||||
(4) Generally based on collateral values upon origination. | ||||||||||
Noninterest income of
Noninterest expense of
The effective income tax rate was
Balance Sheet Summary
Total assets increased
Total liabilities increased
Total shareholders’ equity increased
At June 30, 2021, the Company’s book value per share and tangible book value per share were
About PCSB Financial Corporation and PCSB Bank
PCSB Financial Corporation is the bank holding company for PCSB Bank. PCSB Bank is a New York-chartered commercial bank that has served the banking needs of its customers in the Lower Hudson Valley of New York State since 1871. It operates from its executive offices/headquarters and 15 branch offices located in Dutchess, Putnam, Rockland and Westchester Counties in New York.
This News Release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by use of words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions.
Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These factors include, without limitation, the following: the duration, extent and severity of the COVID-19 pandemic, including its impact on our business and operations, the impact of lost fee revenue and increased operating expenses, as well as its effect on our customers and issuers of securities, including their ability to make timely payments on obligations, service providers and on economies and markets more generally, the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the Company's business; changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company's financial condition or results of operations; general economic conditions, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive than the Company anticipates; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; or litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates. The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation.
Contact: Joseph D. Roberto
Chairman, President and Chief Executive Officer
(914) 248-7272
PCSB Financial Corporation and Subsidiaries
Consolidated Balance Sheets (unaudited)
(amounts in thousands, except share and per share data)
June 30, | June 30, | ||||||
2021 | 2020 | ||||||
ASSETS | |||||||
Cash and due from banks | $ | 152,070 | $ | 135,045 | |||
Federal funds sold | 7,235 | 1,257 | |||||
Cash and cash equivalents | 159,305 | 136,302 | |||||
Held to maturity debt securities, at amortized cost (fair value of | 337,584 | 275,772 | |||||
Available for sale debt securities, at fair value | 57,387 | 37,426 | |||||
Total investment securities | 394,971 | 313,198 | |||||
Loans receivable, net of allowance for loan losses of | 1,229,451 | 1,260,947 | |||||
Accrued interest receivable | 6,398 | 6,880 | |||||
FHLB stock | 4,507 | 6,308 | |||||
Premises and equipment, net | 21,099 | 20,853 | |||||
Deferred tax asset, net | 2,552 | 3,129 | |||||
Bank-owned life insurance | 35,568 | 25,019 | |||||
Goodwill | 6,106 | 6,106 | |||||
Other intangible assets | 151 | 229 | |||||
Other assets | 14,827 | 12,958 | |||||
Total assets | $ | 1,874,935 | $ | 1,791,929 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Interest-bearing deposits | $ | 1,272,610 | $ | 1,181,357 | |||
Non interest-bearing deposits | 219,072 | 191,898 | |||||
Total deposits | 1,491,682 | 1,373,255 | |||||
Mortgage escrow funds | 10,536 | 10,123 | |||||
Advances from Federal Home Loan Bank | 65,957 | 106,089 | |||||
Other liabilities | 32,200 | 28,749 | |||||
Total liabilities | 1,600,375 | 1,518,216 | |||||
Commitments and contingencies | - | - | |||||
Shareholders' equity: | |||||||
Preferred stock ( | - | - | |||||
Common stock ( | 187 | 187 | |||||
Additional paid in capital | 189,926 | 186,200 | |||||
Retained earnings | 150,987 | 141,288 | |||||
Unearned compensation - ESOP | (10,176 | ) | (11,145 | ) | |||
Accumulated other comprehensive loss, net of income taxes | (3,099 | ) | (6,403 | ) | |||
Treasury stock, at cost (2,932,932 and 1,814,158 shares as of June 30, 2021 and June 30, 2020, respectively) | (53,265 | ) | (36,414 | ) | |||
Total shareholders' equity | 274,560 | 273,713 | |||||
Total liabilities and shareholders' equity | $ | 1,874,935 | $ | 1,791,929 | |||
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, | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Interest and dividend income | |||||||||||||||
Loans receivable | $ | 12,625 | $ | 12,808 | $ | 49,470 | $ | 52,107 | |||||||
Investment securities | 1,851 | 1,896 | 7,340 | 8,870 | |||||||||||
Federal funds and other | 110 | 117 | 454 | 933 | |||||||||||
Total interest and dividend income | 14,586 | 14,821 | 57,264 | 61,910 | |||||||||||
Interest expense | |||||||||||||||
Deposits and escrow interest | 1,519 | 2,848 | 7,891 | 12,775 | |||||||||||
FHLB advances | 486 | 514 | 2,031 | 2,456 | |||||||||||
Total interest expense | 2,005 | 3,362 | 9,922 | 15,231 | |||||||||||
Net interest income | 12,581 | 11,459 | 47,342 | 46,679 | |||||||||||
Provision (benefit) for loan losses | 5 | 309 | (673 | ) | 3,064 | ||||||||||
Net interest income after provision (benefit) for loan losses | 12,576 | 11,150 | 48,015 | 43,615 | |||||||||||
Noninterest income | |||||||||||||||
Fees and service charges | 390 | 227 | 1,428 | 1,397 | |||||||||||
Swap income | - | 814 | 367 | 984 | |||||||||||
Bank-owned life insurance | 168 | 129 | 549 | 528 | |||||||||||
Gains on sale of securities, net | - | - | 113 | 38 | |||||||||||
Other | 10 | 7 | 40 | 122 | |||||||||||
Total noninterest income | 568 | 1,177 | 2,497 | 3,069 | |||||||||||
Noninterest expense | |||||||||||||||
Salaries and employee benefits | 5,795 | 5,499 | 22,517 | 22,934 | |||||||||||
Occupancy and equipment | 1,362 | 1,264 | 5,413 | 5,223 | |||||||||||
Communications and data processing | 525 | 502 | 2,064 | 2,061 | |||||||||||
Professional fees | 405 | 563 | 1,690 | 1,739 | |||||||||||
Postage, printing, stationery and supplies | 137 | 145 | 589 | 584 | |||||||||||
Advertising | 100 | 100 | 400 | 400 | |||||||||||
FDIC assessment | 113 | 87 | 463 | 87 | |||||||||||
Amortization of intangible assets | 17 | 21 | 78 | 94 | |||||||||||
Other operating expenses | 413 | 352 | 1,540 | 1,512 | |||||||||||
Total noninterest expense | 8,867 | 8,533 | 34,754 | 34,634 | |||||||||||
Net income before income tax expense | 4,277 | 3,794 | 15,758 | 12,050 | |||||||||||
Income tax expense | 867 | 834 | 3,334 | 2,691 | |||||||||||
Net income | $ | 3,410 | $ | 2,960 | $ | 12,424 | $ | 9,359 | |||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 0.23 | $ | 0.19 | $ | 0.84 | $ | 0.60 | |||||||
Diluted | 0.23 | 0.19 | 0.84 | 0.60 | |||||||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 14,553,783 | 15,334,098 | 14,846,786 | 15,648,627 | |||||||||||
Diluted | 14,586,928 | 15,334,098 | 14,847,579 | 15,674,169 | |||||||||||
PCSB Financial Corporation and Subsidiaries
Net Interest Margin Analysis (unaudited)
(dollar amounts in thousands)
Three Months Ended | |||||||||||||||||||||||||||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2020 | |||||||||||||||||||||||||||||||||
Average Balance | Interest / Dividends | Average Rate | Average Balance | Interest / Dividends | Average Rate | Average Balance | Interest / Dividends | Average Rate | |||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Loans receivable (1) | $ | 1,245,610 | $ | 12,625 | 4.06 | % | $ | 1,252,492 | $ | 12,116 | 3.88 | % | $ | 1,263,600 | $ | 12,808 | 4.06 | % | |||||||||||||||||
Investment securities (1) | 363,175 | 1,851 | 2.11 | 319,239 | 1,700 | 2.18 | 304,383 | 1,896 | 2.50 | ||||||||||||||||||||||||||
Other interest-earning assets | 190,582 | 110 | 0.23 | 162,193 | 109 | 0.27 | 115,652 | 117 | 0.41 | ||||||||||||||||||||||||||
Total interest-earning assets | 1,799,367 | 14,586 | 3.26 | 1,733,924 | 13,925 | 3.23 | 1,683,635 | 14,821 | 3.53 | ||||||||||||||||||||||||||
Non-interest-earning assets | 79,015 | 68,748 | 70,120 | ||||||||||||||||||||||||||||||||
Total assets | $ | 1,878,382 | $ | 1,802,672 | $ | 1,753,755 | |||||||||||||||||||||||||||||
Liabilities and equity: | |||||||||||||||||||||||||||||||||||
NOW accounts | $ | 182,475 | 69 | 0.15 | $ | 161,049 | 59 | 0.15 | $ | 140,954 | 79 | 0.23 | |||||||||||||||||||||||
Money market accounts | 311,255 | 162 | 0.21 | 274,516 | 208 | 0.31 | 218,023 | 289 | 0.53 | ||||||||||||||||||||||||||
Savings accounts and mortgage escrow funds | 387,422 | 109 | 0.11 | 368,791 | 132 | 0.15 | 343,472 | 192 | 0.22 | ||||||||||||||||||||||||||
Time deposits | 395,240 | 1,179 | 1.20 | 411,500 | 1,383 | 1.36 | 470,279 | 2,288 | 1.95 | ||||||||||||||||||||||||||
Total interest-bearing deposits | 1,276,392 | 1,519 | 0.48 | 1,215,856 | 1,782 | 0.59 | 1,172,728 | 2,848 | 0.97 | ||||||||||||||||||||||||||
FHLB advances | 94,970 | 486 | 2.05 | 104,604 | 506 | 1.96 | 106,099 | 514 | 1.94 | ||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,371,362 | 2,005 | 0.59 | 1,320,460 | 2,288 | 0.70 | 1,278,827 | 3,362 | 1.05 | ||||||||||||||||||||||||||
Non-interest-bearing deposits | 208,265 | 187,778 | 176,146 | ||||||||||||||||||||||||||||||||
Other non-interest-bearing liabilities | 23,114 | 24,272 | 23,505 | ||||||||||||||||||||||||||||||||
Total liabilities | 1,602,741 | 1,532,510 | 1,478,478 | ||||||||||||||||||||||||||||||||
Total shareholders' equity | 275,641 | 270,162 | 275,277 | ||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,878,382 | $ | 1,802,672 | $ | 1,753,755 | |||||||||||||||||||||||||||||
Net interest income | $ | 12,581 | $ | 11,637 | $ | 11,459 | |||||||||||||||||||||||||||||
Interest rate spread - tax equivalent (2) | 2.67 | 2.53 | 2.48 | ||||||||||||||||||||||||||||||||
Net interest margin - tax equivalent (3) | 2.81 | 2.69 | 2.73 | ||||||||||||||||||||||||||||||||
Average interest-earning assets to interest-bearing liabilities | 131.21 | % | 131.31 | % | 131.65 | % | |||||||||||||||||||||||||||||
(1) Tax exempt yield is shown on a tax equivalent basis for proper comparison using a statutory federal income tax rate of | |||||||||||||||||||||||||||||||||||
(2) 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. | |||||||||||||||||||||||||||||||||||
(3) Net interest margin represents tax equivalent net interest income divided by average interest-earning assets. See reconciliation of non-GAAP measures at the end of this release. | |||||||||||||||||||||||||||||||||||
PCSB Financial Corporation and Subsidiaries
Net Interest Margin Analysis (unaudited)
(dollar amounts in thousands)
Year Ended June 30, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Average Balance | Interest / Dividends | Average Rate | Average Balance | Interest / Dividends | Average Rate | ||||||||||||||||||
Assets: | |||||||||||||||||||||||
Loans receivable (1) | $ | 1,245,818 | $ | 49,470 | 3.97 | % | $ | 1,198,449 | $ | 52,107 | 4.35 | % | |||||||||||
Investment securities (1) | 327,879 | 7,340 | 2.29 | 346,569 | 8,870 | 2.57 | |||||||||||||||||
Other interest-earning assets | 169,855 | 454 | 0.27 | 69,371 | 933 | 1.34 | |||||||||||||||||
Total interest-earning assets | 1,743,552 | 57,264 | 3.30 | 1,614,389 | 61,910 | 3.84 | |||||||||||||||||
Non-interest-earning assets | 72,522 | 69,268 | |||||||||||||||||||||
Total assets | $ | 1,816,074 | $ | 1,683,657 | |||||||||||||||||||
Liabilities and equity: | |||||||||||||||||||||||
NOW accounts | $ | 160,652 | 296 | 0.18 | $ | 127,091 | 270 | 0.21 | |||||||||||||||
Money market accounts | 273,007 | 819 | 0.30 | 177,052 | 1,647 | 0.93 | |||||||||||||||||
Savings accounts and mortgage escrow funds | 369,681 | 611 | 0.17 | 350,897 | 866 | 0.25 | |||||||||||||||||
Time deposits | 421,168 | 6,165 | 1.46 | 469,336 | 9,992 | 2.13 | |||||||||||||||||
Total interest-bearing deposits | 1,224,508 | 7,891 | 0.64 | 1,124,376 | 12,775 | 1.14 | |||||||||||||||||
FHLB advances | 102,919 | 2,031 | 1.97 | 111,008 | 2,456 | 2.21 | |||||||||||||||||
Total interest-bearing liabilities | 1,327,427 | 9,922 | 0.75 | 1,235,384 | 15,231 | 1.23 | |||||||||||||||||
Non-interest-bearing deposits | 189,667 | 148,262 | |||||||||||||||||||||
Other non-interest-bearing liabilities | 25,707 | 21,563 | |||||||||||||||||||||
Total liabilities | 1,542,801 | 1,405,209 | |||||||||||||||||||||
Total shareholders' equity | 273,273 | 278,448 | |||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,816,074 | $ | 1,683,657 | |||||||||||||||||||
Net interest income | $ | 47,342 | $ | 46,679 | |||||||||||||||||||
Interest rate spread - tax equivalent (2) | 2.55 | 2.61 | |||||||||||||||||||||
Net interest margin - tax equivalent (3) | 2.73 | 2.89 | |||||||||||||||||||||
Average interest-earning assets to interest-bearing liabilities | 131.35 | % | 130.68 | % | |||||||||||||||||||
(1) Tax exempt yield is shown on a tax equivalent basis for proper comparison using a statutory federal income tax rate of | |||||||||||||||||||||||
(2) 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. | |||||||||||||||||||||||
(3) Net interest margin represents tax equivalent net interest income divided by average interest-earning assets. See reconciliation of non-GAAP measures at the end of this release. | |||||||||||||||||||||||
PCSB Financial Corporation and Subsidiaries
Condensed Financial Information (unaudited)
(amounts in thousands, except per share data)
As of | ||||||||||||||
June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | ||||||||||
Condensed Balance Sheets | ||||||||||||||
Cash and cash equivalents | $ | 159,305 | $ | 169,314 | $ | 162,541 | $ | 162,739 | $ | 136,302 | ||||
Total investment securities | 394,971 | 347,302 | 310,231 | 318,509 | 313,198 | |||||||||
Loans receivable, net | 1,229,451 | 1,261,155 | 1,237,550 | 1,227,913 | 1,260,947 | |||||||||
Other assets | 91,208 | 76,903 | 79,517 | 81,914 | 81,482 | |||||||||
Total assets | $ | 1,874,935 | $ | 1,854,674 | $ | 1,789,839 | $ | 1,791,075 | $ | 1,791,929 | ||||
Total deposits and mortgage escrow funds | $ | 1,502,218 | $ | 1,463,542 | $ | 1,387,897 | $ | 1,383,432 | $ | 1,383,378 | ||||
Advances from Federal Home Loan Bank | 65,957 | 95,991 | 106,023 | 106,056 | 106,089 | |||||||||
Other liabilities | 32,200 | 23,844 | 26,595 | 27,908 | 28,749 | |||||||||
Total liabilities | 1,600,375 | 1,583,377 | 1,520,515 | 1,517,396 | 1,518,216 | |||||||||
Total shareholders' equity | 274,560 | 271,297 | 269,324 | 273,679 | 273,713 | |||||||||
Total liabilities and shareholders' equity | $ | 1,874,935 | $ | 1,854,674 | $ | 1,789,839 | $ | 1,791,075 | $ | 1,791,929 | ||||
Quarter Ended | Year Ended | |||||||||||||||||||
June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | June 30, 2021 | June 30, 2020 | ||||||||||||||
Condensed Income Statements | ||||||||||||||||||||
Interest income | $ | 14,586 | $ | 13,925 | $ | 14,225 | $ | 14,528 | $ | 14,821 | $ | 57,264 | $ | 61,910 | ||||||
Interest expense | 2,005 | 2,288 | 2,678 | 2,951 | 3,362 | 9,922 | 15,231 | |||||||||||||
Net interest income | 12,581 | 11,637 | 11,547 | 11,577 | 11,459 | 47,342 | 46,679 | |||||||||||||
Provision (benefit) for loan losses | 5 | (894 | ) | 107 | 109 | 309 | (673 | ) | 3,064 | |||||||||||
Noninterest income | 568 | 592 | 743 | 594 | 1,177 | 2,497 | 3,069 | |||||||||||||
Noninterest expense | 8,867 | 8,572 | 8,691 | 8,624 | 8,533 | 34,754 | 34,634 | |||||||||||||
Income before income tax expense | 4,277 | 4,551 | 3,492 | 3,438 | 3,794 | 15,758 | 12,050 | |||||||||||||
Income tax expense | 867 | 959 | 798 | 710 | 834 | 3,334 | 2,691 | |||||||||||||
Net income | $ | 3,410 | $ | 3,592 | $ | 2,694 | $ | 2,728 | $ | 2,960 | $ | 12,424 | $ | 9,359 | ||||||
Earnings per share: | ||||||||||||||||||||
Basic | $ | 0.23 | $ | 0.25 | $ | 0.18 | $ | 0.18 | $ | 0.19 | $ | 0.84 | $ | 0.60 | ||||||
Diluted | 0.23 | 0.25 | 0.18 | 0.18 | 0.19 | 0.84 | 0.60 | |||||||||||||
PCSB Financial Corporation and Subsidiaries
Selected Financial Data (unaudited)
Quarter Ended | Year Ended | |||||||||||||
June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | June 30, 2021 | June 30, 2020 | ||||||||
Performance Ratios (1): | ||||||||||||||
Return on average assets | 0.73 | % | 0.80 | % | 0.60 | % | 0.61 | % | 0.68 | % | 0.68 | % | 0.56 | % |
Return on average equity | 4.95 | % | 5.32 | % | 3.96 | % | 3.96 | % | 4.30 | % | 4.55 | % | 3.36 | % |
Interest rate spread | 2.67 | % | 2.53 | % | 2.52 | % | 2.47 | % | 2.48 | % | 2.55 | % | 2.61 | % |
Net interest margin | 2.81 | % | 2.69 | % | 2.71 | % | 2.69 | % | 2.73 | % | 2.73 | % | 2.89 | % |
Efficiency ratio | 67.43 | % | 70.10 | % | 70.72 | % | 70.86 | % | 67.53 | % | 69.73 | % | 69.62 | % |
Noninterest income to average assets | 0.12 | % | 0.13 | % | 0.17 | % | 0.13 | % | 0.27 | % | 0.14 | % | 0.18 | % |
Noninterest expense to average assets | 1.89 | % | 1.90 | % | 1.95 | % | 1.92 | % | 1.95 | % | 1.91 | % | 2.06 | % |
Average interest-earning assets to average interest-bearing liabilities | 131.21 | % | 131.31 | % | 131.07 | % | 131.81 | % | 131.65 | % | 131.35 | % | 130.68 | % |
Average equity to average assets | 14.67 | % | 14.99 | % | 15.23 | % | 15.32 | % | 15.70 | % | 15.05 | % | 16.54 | % |
Dividend payout ratio (2) | 26.07 | % | 16.65 | % | 22.57 | % | 23.09 | % | 21.25 | % | 21.93 | % | 27.47 | % |
PCSB Financial Corporation and Subsidiaries
Selected Financial Data (unaudited) - Continued
(dollar amounts in thousands, except share and per share data)
As of and for the quarter ended | |||||||||||||||
June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | |||||||||||
Loans to deposits | 82.42 | % | 86.72 | % | 89.85 | % | 89.17 | % | 91.82 | % | |||||
Share Data: | |||||||||||||||
Shares outstanding | 15,770,645 | 15,966,216 | 16,097,867 | 16,634,237 | 16,898,137 | ||||||||||
Book value per common share | $ | 17.41 | $ | 16.99 | $ | 16.73 | $ | 16.45 | $ | 16.20 | |||||
Tangible book value per common share (3) | $ | 17.01 | $ | 16.60 | $ | 16.34 | $ | 16.07 | $ | 15.82 | |||||
Asset Quality Ratios: | |||||||||||||||
Non-performing loans receivable | $ | 5,764 | $ | 2,054 | $ | 1,668 | $ | 2,083 | $ | 1,795 | |||||
Non-performing assets | $ | 5,764 | $ | 2,054 | $ | 1,668 | $ | 2,083 | $ | 1,795 | |||||
Allowance for loan losses as a percent of total loans receivable (4) | 0.66 | % | 0.65 | % | 0.72 | % | 0.72 | % | 0.71 | % | |||||
Allowance for loan losses as a percent of non-performing loans receivable | 136.73 | % | 382.91 | % | 520.20 | % | 416.32 | % | 481.28 | % | |||||
Non-performing loans as a percent of total loans receivable, net (4) | 0.48 | % | 0.17 | % | 0.14 | % | 0.17 | % | 0.15 | % | |||||
Non-performing assets as a percent of total assets | 0.31 | % | 0.11 | % | 0.09 | % | 0.12 | % | 0.10 | % | |||||
Net (recoveries) charge-offs | $ | (11 | ) | $ | (82 | ) | $ | 102 | $ | 76 | $ | 17 | |||
Net (recoveries) charge-offs to average outstanding loans during the period (1) | 0.00 | % | (0.03 | %) | 0.03 | % | 0.02 | % | 0.01 | % | |||||
Capital Ratios (5): | |||||||||||||||
Tier 1 capital (to adjusted total assets) | 12.48 | % | 12.76 | % | 12.66 | % | 12.41 | % | 12.51 | % | |||||
Common equity Tier 1 capital (to risk-weighted assets) | 17.93 | % | 17.72 | % | 17.74 | % | 17.56 | % | 16.98 | % | |||||
Tier 1 capital (to risk-weighted assets) | 17.93 | % | 17.72 | % | 17.74 | % | 17.56 | % | 16.98 | % | |||||
Total capital (to risk-weighted assets) | 18.53 | % | 18.33 | % | 18.42 | % | 18.24 | % | 17.65 | % | |||||
(1) Performance ratios for quarter ended periods are annualized. | |||||||||||||||
(2) Dividends declared per share divided by net income per share. | |||||||||||||||
(3) Tangible book value per share is a non-GAAP measure and equals total shareholders’ equity, less goodwill and other intangible assets, divided by shares outstanding. We believe this disclosure may be meaningful to those investors who seek to evaluate our equity without giving effect to goodwill and other intangible assets. Reconciliations of GAAP to non-GAAP measures appear at the end of this release. | |||||||||||||||
(4) Total loans receivable excludes PPP loans. | |||||||||||||||
(5) Represents Bank ratios. | |||||||||||||||
PCSB Financial Corporation and Subsidiaries
Loan and Deposit Portfolios (unaudited)
(amounts in thousands)
As of | |||||||||||||||
June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | |||||||||||
Mortgage loans: | |||||||||||||||
Residential mortgages | $ | 224,305 | $ | 229,008 | $ | 237,987 | $ | 245,008 | $ | 255,382 | |||||
Commercial mortgages | 826,624 | 831,162 | 801,348 | 794,248 | 807,106 | ||||||||||
Construction | 10,151 | 10,047 | 17,551 | 11,512 | 11,053 | ||||||||||
Net deferred loan origination costs | 196 | 365 | 600 | 666 | 739 | ||||||||||
Total mortgage loans | 1,061,276 | 1,070,582 | 1,057,486 | 1,051,434 | 1,074,280 | ||||||||||
Commercial and consumer loans: | |||||||||||||||
Commercial loans (1) | 150,658 | 171,314 | 160,678 | 155,569 | 164,257 | ||||||||||
Home equity credit lines | 25,439 | 27,211 | 27,653 | 29,249 | 29,838 | ||||||||||
Consumer and overdrafts | 345 | 269 | 328 | 308 | 481 | ||||||||||
Net deferred loan origination costs | (386 | ) | (356 | ) | 82 | 25 | 730 | ||||||||
Total commercial and consumer loans | 176,056 | 198,438 | 188,741 | 185,151 | 195,306 | ||||||||||
Total loans receivable | 1,237,332 | 1,269,020 | 1,246,227 | 1,236,585 | 1,269,586 | ||||||||||
Allowance for loan losses | (7,881 | ) | (7,865 | ) | (8,677 | ) | (8,672 | ) | (8,639 | ) | |||||
Loans receivable, net | $ | 1,229,451 | $ | 1,261,155 | $ | 1,237,550 | $ | 1,227,913 | $ | 1,260,947 | |||||
(1) Includes PPP loans totaling: | $ | 37,050 | $ | 50,380 | $ | 35,687 | $ | 35,687 | $ | 49,603 | |||||
As of | |||||||||||||||
June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | |||||||||||
Demand deposits | $ | 219,072 | $ | 203,344 | $ | 189,968 | $ | 183,844 | $ | 191,898 | |||||
NOW accounts | 177,223 | 169,077 | 159,919 | 148,176 | 151,797 | ||||||||||
Money market accounts | 332,843 | 301,892 | 256,132 | 253,176 | 239,942 | ||||||||||
Savings | 387,529 | 372,151 | 354,882 | 349,805 | 343,352 | ||||||||||
Time deposits | 375,015 | 407,826 | 416,386 | 442,011 | 446,266 | ||||||||||
Total deposits | $ | 1,491,682 | $ | 1,454,290 | $ | 1,377,287 | $ | 1,377,012 | $ | 1,373,255 | |||||
PCSB Financial Corporation and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures (unaudited)
(dollar amounts in thousands, except share and per share data)
Quarter Ended | Year Ended | |||||||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | ||||||||||||
Computation of Tax Equivalent Net Interest Income | ||||||||||||||||
Total interest income | $ | 14,586 | $ | 13,925 | $ | 14,821 | $ | 57,264 | $ | 61,910 | ||||||
Total interest expense | 2,005 | 2,288 | 3,362 | 9,922 | 15,231 | |||||||||||
Net interest income (GAAP) | 12,581 | 11,637 | 11,459 | 47,342 | 46,679 | |||||||||||
Tax equivalent adjustment | 68 | 51 | 18 | 198 | 56 | |||||||||||
Net interest income - tax equivalent (Non-GAAP) | $ | 12,649 | $ | 11,688 | $ | 11,477 | $ | 47,540 | $ | 46,735 | ||||||
PCSB Financial Corporation and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures (unaudited) - Continued
(dollar amounts in thousands, except share and per share data)
As of | |||||||||||||||
June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | |||||||||||
Computation of Tangible Book Value per Common Share | |||||||||||||||
Total shareholders' equity (GAAP) | $ | 274,560 | $ | 271,297 | $ | 269,324 | $ | 273,679 | $ | 273,713 | |||||
Adjustments: | |||||||||||||||
Goodwill | (6,106 | ) | (6,106 | ) | (6,106 | ) | (6,106 | ) | (6,106 | ) | |||||
Other intangible assets | (151 | ) | (168 | ) | (189 | ) | (209 | ) | (229 | ) | |||||
Tangible common shareholders' equity (Non-GAAP) | $ | 268,303 | $ | 265,023 | $ | 263,029 | $ | 267,364 | $ | 267,378 | |||||
Common shares outstanding | 15,770,645 | 15,966,216 | 16,097,867 | 16,634,237 | 16,898,137 | ||||||||||
Book value per share (GAAP) | $ | 17.41 | $ | 16.99 | $ | 16.73 | $ | 16.45 | $ | 16.20 | |||||
Adjustments: | |||||||||||||||
Effects of intangible assets | (0.40 | ) | (0.39 | ) | (0.39 | ) | (0.38 | ) | (0.38 | ) | |||||
Tangible book value per common share (Non-GAAP) | $ | 17.01 | $ | 16.60 | $ | 16.34 | $ | 16.07 | $ | 15.82 | |||||
PCSB Financial Corporation and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures (unaudited) - Continued
(dollar amounts in thousands, except share and per share data)
Quarter Ended | Year Ended | ||||||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||
Computation of Adjusted Yield on Assets and Adjusted Net Interest Margin, Excluding PPP income | |||||||||||||||
Average interest-earning assets | $ | 1,799,485 | $ | 1,733,924 | $ | 1,683,635 | $ | 1,743,581 | $ | 1,614,389 | |||||
Interest and dividend income (GAAP) | $ | 14,586 | $ | 13,925 | $ | 14,821 | $ | 57,264 | $ | 61,910 | |||||
Less: PPP income | (516 | ) | (279 | ) | (172 | ) | (1,171 | ) | (172 | ) | |||||
Adjusted interest and dividend income (Non-GAAP) | $ | 14,070 | $ | 13,646 | $ | 14,649 | $ | 56,093 | $ | 61,738 | |||||
Yield on interest-earning assets (GAAP) | 3.26 | % | 3.23 | % | 3.53 | % | 3.30 | % | 3.84 | % | |||||
Adjusted yield on interest-earning assets (Non-GAAP) | 3.13 | % | 3.15 | % | 3.48 | % | 3.22 | % | 3.82 | % | |||||
Net interest income (GAAP) | $ | 12,581 | $ | 11,637 | $ | 11,459 | $ | 47,342 | $ | 46,679 | |||||
Less: PPP income | (516 | ) | (279 | ) | (172 | ) | (1,171 | ) | (172 | ) | |||||
Adjusted net interest income (Non-GAAP) | $ | 12,065 | $ | 11,358 | $ | 11,287 | $ | 46,171 | $ | 46,507 | |||||
Net interest margin (GAAP) | 2.81 | % | 2.69 | % | 2.73 | % | 2.73 | % | 2.89 | % | |||||
Adjusted net interest margin (Non-GAAP) | 2.68 | % | 2.62 | % | 2.68 | % | 2.65 | % | 2.88 | % |
FAQ
What is PCSB's net income for Q4 2021?
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