PCSB Financial Corporation Announces Third Fiscal Quarter Financial Results and Declares a 17% Increase In Quarterly Cash Dividend
YORKTOWN HEIGHTS, N.Y., April 28, 2022 (GLOBE NEWSWIRE) -- PCSB Financial Corporation (the “Company”) (NASDAQ: PCSB), parent of PCSB Bank (the "Bank"), today announced net income of $3.5 million, or $0.24 per diluted share, for the three months ended March 31, 2022, compared to $4.3 million, or $0.30 per diluted share, for the three months ended December 31, 2021 and $3.6 million, or $0.25 per diluted share, for the three months ended March 31, 2021.
Results for the three months ended March 31, 2021 include a benefit for loan losses of $944,000, or $0.05 per diluted share, net of tax, related to the release of qualitative reserves established in the prior fiscal year associated with the COVID-19 pandemic.
On April 27, 2022, the Board of Directors declared a regular quarterly cash dividend of $0.07 per share, representing a 17% increase compared to the linked quarter. The dividend is payable on or about May 27, 2022 to shareholders of record as of the close of business on May 13, 2022.
Third Quarter Highlights
Net income of $3.5 million or $0.24 per diluted share for the current quarter, decreases of 19.0% and 3.3% compared to the linked quarter and same quarter last year, respectively. Excluding certain non-recurring items, current quarter adjusted net income (non-GAAP) was $3.2 million or $0.23 per diluted share, an increase of 2.4% compared to the linked quarter and a decrease of 0.6% compared to the same quarter last year. The decrease in net income compared to the prior year quarter includes a $1.2 million increase in the provision for loan losses, as the prior year quarter included a $944,000 release of qualitative reserves associated with the COVID-19 pandemic. Reconciliations of GAAP to non-GAAP financial measures are included at the end of this release.
Net interest income of $12.7 million for the current quarter, a decrease of 4.1% from the linked quarter and an increase of 9.3% from the same quarter last year. Adjusted net interest income (non-GAAP) of $12.4 million for the current quarter, unchanged from the linked quarter and an increase of 9.7% from the same quarter last year.
Tax equivalent net interest margin of 2.80% for the current quarter, a decrease from 2.97% in the linked quarter and an increase from 2.69% for the same quarter last year. Adjusted tax equivalent net interest margin (non-GAAP) of 2.70% for the current quarter, a decrease from 2.75% for the linked quarter and an increase from 2.61% for the same quarter last year.
Average cost of interest-bearing deposits of 0.37% for the current quarter, a decrease from 0.39% in the linked quarter and 0.59% for the same quarter last year.
Efficiency ratio of 65.66% for the current quarter, compared to 60.92% for the linked quarter and 70.10% for the same quarter last year. Adjusted efficiency ratio (non-GAAP) of 67.24% for the current quarter, largely unchanged from the linked quarter and improved from 72.76% for the same quarter last year.
Average loans receivable, excluding SBA Paycheck Protection Program (“PPP”) loans, of $1.25 billion for the current quarter, increased from $1.23 billion and $1.21 billion in the linked quarter and the same quarter last year, respectively.
Average deposits of $1.56 billion for the current quarter, increases of 2.8% and 11.2% compared to the linked quarter and same quarter last year, respectively.
Allowance for loan losses to total net loans receivable (excluding PPP loans) of 0.68% as of March 31, 2022, an increase from 0.66% as of June 30, 2021.
Non-performing loans of $7.9 million, or 0.61% of total net loans receivable (excluding PPP loans), as of March 31, 2022, increased from 0.48% as of June 30, 2021.
Loans on COVID-19-related payment deferral totaled $3.6 million (1 loan), or 0.28% of gross loans, as of March 31, 2022, compared to $27.3 million (19 loans), or 2.21% of gross loans, as of June 30, 2021.
President’s Comments
“We are extremely pleased with our third quarter and nine-month financial results which exhibited solid core earnings combined with strong loan and deposit growth despite continued economic uncertainty,” said Joseph D. Roberto, Chairman, President & Chief Executive Officer of PCSB Financial Corporation. “Annualized loan growth excluding PPP loans was 10.0% for the nine months and 13.6% for the current quarter. I am encouraged by the increased opportunities to originate quality loans within our strong market footprint. We believe we are well positioned to take advantage of the increase in market rates because of our current elevated liquidity position, resulting from significant deposit growth, and expected loan and securities portfolio repricing opportunities. Of the $1.3 billion of loan balances, 15% are subject to daily or monthly repricing with another 4% scheduled to mature or re-price within the next 12 months; additionally, approximately 13% of our securities portfolio have adjustable rates, more than half of which are subject to re-pricing in the June quarter. I am proud of what our PCSB team has accomplished as we continue working to create sustainable value for our shareholders.”
Income Statement Summary
Net income for the current quarter was $3.5 million, which decreased $814,000 from the linked quarter and $118,000 from the prior year quarter. The change from the linked quarter is primarily due to a $541,000 decrease in net interest income, a $272,000 decrease in noninterest income and increases of $151,000 in noninterest expense and $22,000 in provision for loan losses, partially offset by a $172,000 decrease in income tax expense. The change from the prior year quarter is primarily due to increases of $1.2 million in provision for loan losses and $384,000 in noninterest expense, largely offset by increases of $1.1 million in net interest income and $331,000 in noninterest income, and a $35,000 decrease in income tax expense.
Net interest income was $12.7 million for the current quarter, a decrease of $541,000, or 4.1%, compared to the linked quarter and an increase of $1.1 million, or 9.3%, compared to the prior year quarter. The decrease compared to the linked quarter is primarily the result of a 17 basis point decrease in the tax equivalent net interest margin, partially offset by a $36.9 million, or 2.1%, increase in average interest-earning assets. The increase in net interest income compared to the prior year period is primarily the result of an 11 basis point increase in the tax equivalent net interest margin and a $99.6 million, or 5.7%, increase in average interest-earning assets.
The Company recognized PPP loan interest and origination fee income (net of costs) of $266,000 in the current quarter, compared to $332,000 in the linked quarter and $279,000 in the prior year quarter. Unearned origination fees (net of costs) on PPP loans totaled $117,000 as of March 31, 2022 and will be recognized in income over the remaining lives of the loans. The timing of such recognition is largely dependent on the timing of loan forgiveness, which the Company expects to be substantially complete by June 30, 2022.
The tax equivalent net interest margin was 2.80% for the current quarter, reflecting a decrease of 17 basis points compared to 2.97% in the linked quarter and an increase of 11 basis points compared to 2.69% in the prior year quarter. During the linked quarter, the Company recognized $555,000 of loan prepayment income. Adjusted net interest margin, which excludes the effects of loan prepayment income and PPP loan interest and fees, was 2.70% for the current quarter compared to 2.75% in the linked quarter and 2.61% in the prior year quarter. Compared to the prior year quarter, reductions in the cost of funds were partially offset by a decrease in adjusted asset yield, driven by lower market interest rates. Compared to the linked quarter, margin compression was the result of an increase in cash liquidity. Reconciliations of GAAP to non-GAAP financial measures are included at the end of this release.
Tax equivalent yield on interest-earning assets for the current quarter was 3.12%, decreases of 21 basis points from the linked quarter and 11 basis point from the prior year quarter. Excluding the effects of non-recurring PPP loan income and loan prepayment income, the tax equivalent yield on interest-earning assets for the current quarter was 3.03%, decreases of 8 basis points from the linked quarter and 10 basis points from the same quarter last year. The decrease in yield compared to the prior year quarter is a result of the loan and investment portfolios continuing to re-price downward due to lower market interest rates.
The cost of interest-bearing deposits was 0.37% for the current quarter, decreases of 2 basis points and 22 basis points from 0.39% and 0.59% in the linked quarter and prior year quarter, respectively. In response to lower market interest rates and increased liquidity levels, deposit rate reductions have been implemented throughout the last 2 years, the effects of which continue to be realized. As of quarter end, the weighted average cost of interest-bearing deposits was 0.35%. The cost of interest-bearing liabilities was 0.43% for the current quarter, decreases of 4 basis points from 0.47% in the linked quarter and 27 basis points from 0.70% in the prior year quarter. Over the next 12 months, the Company has $50.0 million of wholesale funding maturing, comprised of FHLB advances and brokered time deposits, with a weighted average cost of 2.03%.
The provision for loan losses was $286,000 for current quarter, compared to $264,000 for the linked quarter and a benefit for loan losses of $894,000 for the prior year quarter. Loans on COVID-19 related payment deferral totaled $3.6 million, or 0.28% of gross loans, as of March 31, 2022, compared to $27.3 million, or 2.21% of gross loans, as of June 30, 2021. Charge-offs, net of recoveries, were $4,000 for the current quarter compared to recoveries, net of charge-offs, of $6,000 for the linked quarter and $82,000 for the prior year quarter. Non-performing loans as a percent of total loans receivable (excluding PPP loans) was 0.61% as of March 31, 2022, an increase from 0.48% as of June 30, 2021.
Noninterest income of $923,000 for the current quarter decreased $272,000 compared to the linked quarter and increased $331,000 compared to the prior year quarter. The decrease compared to the linked quarter was primarily due to decreases of $548,000 in gain on the sale of premises, $32,000 in gains on the sale of loans and $25,000 in all other noninterest income, partially offset by an increase of $333,000 in swap income. The increase compared to the prior year quarter was primarily due to increases of $333,000 in swap income, $65,000 in bank-owned life insurance income, $37,000 in fees and service charges and $9,000 in gains on the sale of loans, partially offset by a $113,000 decrease in gains on the sale of securities.
Noninterest expense of $9.0 million for the current quarter increased $151,000 compared to the linked quarter and $384,000 compared to the prior year quarter. The increase compared to the linked quarter was primarily due to increased professional, occupancy and data processing costs, partially offset by lower salary and benefits expense. Noninterest expenses increased compared to the prior year quarter primarily due to higher salaries and benefits and professional costs which were partially offset by lower pension costs.
The effective income tax rate was 21.0% for the current quarter, as compared to 20.4% for the linked quarter and 21.1% for the prior year quarter.
Balance Sheet Summary
Total assets increased $109.6 million to $1.98 billion at March 31, 2022 as compared to June 30, 2021, due to increases of $56.4 million in net loans receivable and $53.1 million in investment securities. Net loans receivable increased $56.4 million, or 4.6%, and $89.6 million or 7.5% excluding PPP loans. The increase was primarily the result of increases in commercial mortgage loans and construction loans of $70.8 million and $6.7 million, respectively, partially offset by decreases in commercial loans and residential mortgage loans of $9.2 million and $8.9 million, respectively. The decrease in commercial loans includes a decrease in PPP loans of $32.3 million, driven by forgiveness and paydowns, largely offset by a net increase of $23.0 million in all other commercial loans. The increase in investment securities was the result of the Company deploying excess liquidity and included increases of $28.2 million in state and municipal securities, $15.2 million in mortgage-backed securities, $5.3 million in corporate securities and $4.4 million in U.S. government and agency bonds.
Total liabilities increased $107.8 million to $1.71 billion at March 31, 2022 as compared to June 30, 2021 as an increase of $133.0 million in deposits was partially offset by decreases of $17.6 million in FHLB advances and $7.7 million in all other liabilities. The $133.0 million increase in deposits includes increases in money market, NOW, savings and demand accounts of $63.5 million, $44.2 million, $30.4 million and $24.8 million, respectively, partially offset by decreases in time deposits of $29.9 million. Current quarter deposit growth of $101.7 million or 6.7% includes approximately $38.1 million of transient deposits expected to outflow in the subsequent quarter.
Total shareholders’ equity increased $1.8 million to $276.4 million at March 31, 2022 as compared to $274.6 million as of June 30, 2021. The increase for the nine months ended March 31, 2022 was primarily due to net income of $11.4 million and $3.8 million of stock-based compensation and reduction in unearned ESOP shares for plan shares earned during the period, partially offset by the repurchase of $8.2 million (443,788 shares) of common stock, $2.5 million of other comprehensive losses related primarily to unrealized losses on investment securities driven by higher market interest rates and $2.6 million of cash dividends declared and paid.
At March 31, 2022, the Company’s book value per share and tangible book value per share were $18.02 and $17.62, respectively, compared to $17.41 and $17.01, respectively, at June 30, 2021. Reconciliations of book value per share (GAAP measure) to tangible book value per share (non-GAAP measure) appear at the end of this release. At March 31, 2022, 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 14 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)
March 31, | June 30, | |||||||
2022 | 2021 | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 156,982 | $ | 152,070 | ||||
Federal funds sold | 1,910 | 7,235 | ||||||
Total cash and cash equivalents | 158,892 | 159,305 | ||||||
Held to maturity debt securities, at amortized cost (fair value of $379,500 and | 410,896 | 337,584 | ||||||
Available for sale debt securities, at fair value | 37,185 | 57,387 | ||||||
Total investment securities | 448,081 | 394,971 | ||||||
Loans receivable, net of allowance for loan losses of $8,711 and | 1,285,886 | 1,229,451 | ||||||
Accrued interest receivable | 6,583 | 6,398 | ||||||
FHLB stock | 3,715 | 4,507 | ||||||
Premises and equipment, net | 18,904 | 21,099 | ||||||
Deferred tax asset, net | 3,089 | 2,552 | ||||||
Bank-owned life insurance | 36,136 | 35,568 | ||||||
Goodwill | 6,106 | 6,106 | ||||||
Other intangible assets | 102 | 151 | ||||||
Other assets | 17,047 | 14,827 | ||||||
Total assets | $ | 1,984,541 | $ | 1,874,935 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Interest bearing deposits | $ | 1,380,811 | $ | 1,272,610 | ||||
Non-interest bearing deposits | 243,908 | 219,072 | ||||||
Total deposits | 1,624,719 | 1,491,682 | ||||||
Mortgage escrow funds | 8,744 | 10,536 | ||||||
Advances from FHLB | 48,357 | 65,957 | ||||||
Other liabilities | 26,329 | 32,200 | ||||||
Total liabilities | 1,708,149 | 1,600,375 | ||||||
Commitments and contingencies | - | - | ||||||
Shareholders' equity: | ||||||||
Preferred stock ($0.01 par value, 10,000,000 shares authorized, no shares issued or outstanding as of March 31, 2022 and June 30, 2021) | - | - | ||||||
Common stock ($0.01 par value, 200,000,000 shares authorized, 18,703,577 shares issued as of both March 31, 2022 and June 30, 2021, and 15,334,857 and 15,770,645 shares outstanding as of March 31, 2022 and June 30, 2021, respectively) | 187 | 187 | ||||||
Additional paid in capital | 192,860 | 189,926 | ||||||
Retained earnings | 159,765 | 150,987 | ||||||
Unearned compensation - ESOP | (9,449 | ) | (10,176 | ) | ||||
Accumulated other comprehensive loss, net of income taxes | (5,628 | ) | (3,099 | ) | ||||
Treasury stock, at cost (3,368,720 and 2,932,932 shares as of March 31, 2022 and June 30, 2021, respectively) | (61,343 | ) | (53,265 | ) | ||||
Total shareholders' equity | 276,392 | 274,560 | ||||||
Total liabilities and shareholders' equity | $ | 1,984,541 | $ | 1,874,935 | ||||
PCSB Financial Corporation and Subsidiaries
Consolidated Statements of Operations (unaudited)
(amounts in thousands, except share and per share data)
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Interest and dividend income | ||||||||||||||||
Loans receivable | $ | 11,943 | $ | 12,116 | $ | 36,701 | $ | 36,845 | ||||||||
Investment securities | 2,152 | 1,700 | 6,294 | 5,489 | ||||||||||||
Federal funds and other | 105 | 109 | 302 | 344 | ||||||||||||
Total interest and dividend income | 14,200 | 13,925 | 43,297 | 42,678 | ||||||||||||
Interest expense | ||||||||||||||||
Deposits and escrow interest | 1,217 | 1,782 | 3,863 | 6,372 | ||||||||||||
FHLB advances | 266 | 506 | 924 | 1,545 | ||||||||||||
Total interest expense | 1,483 | 2,288 | 4,787 | 7,917 | ||||||||||||
Net interest income | 12,717 | 11,637 | 38,510 | 34,761 | ||||||||||||
Provision (benefit) for loan losses | 286 | (894 | ) | 563 | (678 | ) | ||||||||||
Net interest income after provision for loan losses | 12,431 | 12,531 | 37,947 | 35,439 | ||||||||||||
Noninterest income | ||||||||||||||||
Fees and service charges | 390 | 353 | 1,198 | 1,038 | ||||||||||||
Bank-owned life insurance | 185 | 120 | 568 | 381 | ||||||||||||
Gain on sale of premises | - | - | 548 | - | ||||||||||||
Swap income | 333 | - | 333 | 367 | ||||||||||||
Gains on sales of loans receivable | 9 | - | 56 | - | ||||||||||||
Gains on sales of securities | - | 113 | - | 113 | ||||||||||||
Other | 6 | 6 | 28 | 30 | ||||||||||||
Total noninterest income | 923 | 592 | 2,731 | 1,929 | ||||||||||||
Noninterest expense | ||||||||||||||||
Salaries and employee benefits | 5,737 | 5,595 | 17,353 | 16,722 | ||||||||||||
Occupancy and equipment | 1,414 | 1,359 | 4,115 | 4,051 | ||||||||||||
Communication and data processing | 573 | 517 | 1,626 | 1,539 | ||||||||||||
Professional fees | 543 | 382 | 1,356 | 1,285 | ||||||||||||
Postage, printing, stationery and supplies | 153 | 146 | 478 | 452 | ||||||||||||
FDIC assessment | 125 | 115 | 371 | 350 | ||||||||||||
Advertising | 100 | 100 | 300 | 300 | ||||||||||||
Amortization of intangible assets | 17 | 21 | 49 | 61 | ||||||||||||
Other operating expenses | 294 | 337 | 737 | 1,127 | ||||||||||||
Total noninterest expense | 8,956 | 8,572 | 26,385 | 25,887 | ||||||||||||
Net income before income tax expense | 4,398 | 4,551 | 14,293 | 11,481 | ||||||||||||
Income tax expense | 924 | 959 | 2,917 | 2,467 | ||||||||||||
Net income | $ | 3,474 | $ | 3,592 | $ | 11,376 | $ | 9,014 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.25 | $ | 0.25 | $ | 0.80 | $ | 0.60 | ||||||||
Diluted | 0.24 | 0.25 | 0.80 | 0.60 | ||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 14,165,775 | 14,631,122 | 14,247,188 | 14,944,097 | ||||||||||||
Diluted | 14,197,716 | 14,632,342 | 14,301,150 | 14,944,664 | ||||||||||||
PCSB Financial Corporation and Subsidiaries
Net Interest Margin Analysis (unaudited)
(dollar amounts in thousands)
Three Months Ended | ||||||||||||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||||||||||||||||||||||||||
Average Balance | Interest / Dividends | Average Rate | Average Balance | Interest / Dividends | Average Rate | Average Balance | Interest / Dividends | Average Rate | ||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||
Loans receivable (1) | $ | 1,255,117 | $ | 11,943 | 3.81 | % | $ | 1,242,109 | $ | 12,651 | 4.07 | % | $ | 1,252,492 | $ | 12,116 | 3.88 | % | ||||||||||||||||||
Investment securities (1) | 436,702 | 2,152 | 2.06 | 427,918 | 2,131 | 2.08 | 319,239 | 1,700 | 2.18 | |||||||||||||||||||||||||||
Other interest-earning assets | 141,677 | 105 | 0.30 | 126,586 | 88 | 0.28 | 162,193 | 109 | 0.27 | |||||||||||||||||||||||||||
Total interest-earning assets | 1,833,496 | 14,200 | 3.12 | 1,796,613 | 14,870 | 3.33 | 1,733,924 | 13,925 | 3.23 | |||||||||||||||||||||||||||
Non-interest-earning assets | 77,202 | 77,506 | 68,748 | |||||||||||||||||||||||||||||||||
Total assets | $ | 1,910,698 | $ | 1,874,119 | $ | 1,802,672 | ||||||||||||||||||||||||||||||
Liabilities and equity: | ||||||||||||||||||||||||||||||||||||
NOW accounts | $ | 215,021 | 94 | 0.18 | $ | 192,856 | 90 | 0.18 | $ | 161,049 | 59 | 0.15 | ||||||||||||||||||||||||
Money market accounts | 360,131 | 144 | 0.16 | 355,708 | 168 | 0.19 | 274,516 | 208 | 0.31 | |||||||||||||||||||||||||||
Savings accounts and mortgage escrow funds | 415,850 | 113 | 0.11 | 398,076 | 108 | 0.11 | 368,791 | 132 | 0.15 | |||||||||||||||||||||||||||
Time deposits | 349,266 | 866 | 1.00 | 357,242 | 926 | 1.03 | 411,500 | 1,383 | 1.36 | |||||||||||||||||||||||||||
Total interest-bearing deposits | 1,340,268 | 1,217 | 0.37 | 1,303,882 | 1,292 | 0.39 | 1,215,856 | 1,782 | 0.59 | |||||||||||||||||||||||||||
FHLB advances | 57,185 | 266 | 1.89 | 63,805 | 320 | 1.99 | 104,604 | 506 | 1.96 | |||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,397,453 | 1,483 | 0.43 | 1,367,687 | 1,612 | 0.47 | 1,320,460 | 2,288 | 0.70 | |||||||||||||||||||||||||||
Non-interest-bearing deposits | 220,809 | 214,558 | 187,778 | |||||||||||||||||||||||||||||||||
Other non-interest-bearing liabilities | 15,370 | 16,250 | 24,272 | |||||||||||||||||||||||||||||||||
Total liabilities | 1,633,632 | 1,598,495 | 1,532,510 | |||||||||||||||||||||||||||||||||
Total shareholders' equity | 277,066 | 275,624 | 270,162 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,910,698 | $ | 1,874,119 | $ | 1,802,672 | ||||||||||||||||||||||||||||||
Net interest income | $ | 12,717 | $ | 13,258 | $ | 11,637 | ||||||||||||||||||||||||||||||
Interest rate spread - tax equivalent (2) | 2.69 | 2.86 | 2.53 | |||||||||||||||||||||||||||||||||
Net interest margin - tax equivalent (3) | 2.80 | 2.97 | 2.69 | |||||||||||||||||||||||||||||||||
Average interest-earning assets to interest-bearing liabilities | 131.20 | % | 131.36 | % | 131.31 | % | ||||||||||||||||||||||||||||||
(1) Tax exempt yield is shown on a tax equivalent basis for proper comparison using a statutory federal income tax rate of 21% for all periods presented. See reconciliation of GAAP to non-GAAP measures at the end of this release. | ||||||||||||||||||||||||||||||||||||
(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 GAAP to non-GAAP measures at the end of this release. | ||||||||||||||||||||||||||||||||||||
PCSB Financial Corporation and Subsidiaries
Net Interest Margin Analysis (unaudited)
(dollar amounts in thousands)
Nine Months Ended March 31, | ||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||
Average | Interest/ | Average | Average | Interest/ | Average | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Loans receivable (1) | $ | 1,240,253 | $ | 36,701 | 3.95 | % | $ | 1,245,881 | $ | 36,845 | 3.95 | % | ||||||||||||
Investment securities (1) | 423,062 | 6,294 | 2.07 | 316,114 | 5,489 | 2.36 | ||||||||||||||||||
Other interest-earning assets | 142,974 | 302 | 0.28 | 162,946 | 344 | 0.28 | ||||||||||||||||||
Total interest-earning assets | 1,806,289 | 43,297 | 3.22 | 1,724,941 | 42,678 | 3.31 | ||||||||||||||||||
Non-interest-earning assets | 77,027 | 70,364 | ||||||||||||||||||||||
Total assets | $ | 1,883,316 | $ | 1,795,305 | ||||||||||||||||||||
Liabilities and equity: | ||||||||||||||||||||||||
NOW accounts | $ | 196,803 | 254 | 0.17 | $ | 153,378 | 227 | 0.20 | ||||||||||||||||
Money market accounts | 355,471 | 499 | 0.19 | 260,258 | 657 | 0.34 | ||||||||||||||||||
Savings accounts and escrow | 403,740 | 334 | 0.11 | 363,768 | 502 | 0.18 | ||||||||||||||||||
Time deposits | 358,050 | 2,776 | 1.03 | 429,811 | 4,986 | 1.54 | ||||||||||||||||||
Total interest-bearing deposits | 1,314,064 | 3,863 | 0.39 | 1,207,215 | 6,372 | 0.70 | ||||||||||||||||||
FHLB advances | 62,309 | 924 | 1.98 | 105,569 | 1,545 | 1.95 | ||||||||||||||||||
Total interest-bearing liabilities | 1,376,373 | 4,787 | 0.46 | 1,312,784 | 7,917 | 0.80 | ||||||||||||||||||
Non-interest-bearing deposits | 214,391 | 183,467 | ||||||||||||||||||||||
Other non-interest-bearing liabilities | 17,186 | 26,570 | ||||||||||||||||||||||
Total liabilities | 1,607,950 | 1,522,821 | ||||||||||||||||||||||
Total shareholders' equity | 275,366 | 272,484 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,883,316 | $ | 1,795,305 | ||||||||||||||||||||
Net interest income | $ | 38,510 | $ | 34,761 | ||||||||||||||||||||
Interest rate spread - tax equivalent (2) | 2.76 | 2.51 | ||||||||||||||||||||||
Net interest margin - tax equivalent (3) | 2.86 | 2.70 | ||||||||||||||||||||||
Average interest-earning assets to interest-bearing liabilities | 131.24 | % | 131.40 | % | ||||||||||||||||||||
(1) Tax exempt yield is shown on a tax equivalent basis for proper comparison using a statutory federal income tax rate of 21% for all periods presented. See reconciliation of GAAP to non-GAAP measures at the end of this release. | ||||||||||||||||||||||||
(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 GAAP to 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 | ||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
Condensed Balance Sheets | ||||||||||||||||||||
Cash and cash equivalents | $ | 158,892 | $ | 120,339 | $ | 148,012 | $ | 159,305 | $ | 169,314 | ||||||||||
Total investment securities | 448,081 | 433,999 | 423,525 | 394,971 | 347,302 | |||||||||||||||
Loans receivable, net | 1,285,886 | 1,243,646 | 1,210,674 | 1,229,451 | 1,261,155 | |||||||||||||||
Other assets | 91,682 | 90,137 | 90,968 | 91,208 | 76,903 | |||||||||||||||
Total assets | $ | 1,984,541 | $ | 1,888,121 | $ | 1,873,179 | $ | 1,874,935 | $ | 1,854,674 | ||||||||||
Total deposits and mortgage escrow funds | $ | 1,633,463 | $ | 1,533,947 | $ | 1,511,465 | $ | 1,502,218 | $ | 1,463,542 | ||||||||||
Advances from Federal Home Loan Bank | 48,357 | 58,390 | 65,924 | 65,957 | 95,991 | |||||||||||||||
Other liabilities | 26,329 | 20,950 | 21,062 | 32,200 | 23,844 | |||||||||||||||
Total liabilities | 1,708,149 | 1,613,287 | 1,598,451 | 1,600,375 | 1,583,377 | |||||||||||||||
Total shareholders' equity | 276,392 | 274,834 | 274,728 | 274,560 | 271,297 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 1,984,541 | $ | 1,888,121 | $ | 1,873,179 | $ | 1,874,935 | $ | 1,854,674 | ||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | March 31, | March 31, | ||||||||||||||||||||||
Condensed Income Statements | ||||||||||||||||||||||||||||
Interest income | $ | 14,200 | $ | 14,870 | $ | 14,227 | $ | 14,586 | $ | 13,925 | $ | 43,297 | $ | 42,678 | ||||||||||||||
Interest expense | 1,483 | 1,612 | 1,692 | 2,005 | 2,288 | 4,787 | 7,917 | |||||||||||||||||||||
Net interest income | 12,717 | 13,258 | 12,535 | 12,581 | 11,637 | 38,510 | 34,761 | |||||||||||||||||||||
Provision (benefit) for loan losses | 286 | 264 | 13 | 5 | (894 | ) | 563 | (678 | ) | |||||||||||||||||||
Noninterest income | 923 | 1,195 | 613 | 568 | 592 | 2,731 | ||||||||||||||||||||||
