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PCSB Financial Corporation (PCSB)

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Previous Close16.49
Open16.56
Bid0.00 x 800
Ask0.00 x 900
Day's Range16.26 - 16.63
52 Week Range11.01 - 18.37
Volume17,330
Avg. Volume38,427
Market Cap263.329M
Beta (5Y Monthly)0.64
PE Ratio (TTM)26.06
EPS (TTM)0.63
Earnings DateApr 28, 2021 - May 03, 2021
Forward Dividend & Yield0.16 (0.97%)
Ex-Dividend DateFeb 11, 2021
1y Target Est18.00
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  • PCSB Financial (NASDAQ:PCSB) Could Be A Buy For Its Upcoming Dividend
    Simply Wall St.

    PCSB Financial (NASDAQ:PCSB) Could Be A Buy For Its Upcoming Dividend

    PCSB Financial Corporation ( NASDAQ:PCSB ) stock is about to trade ex-dividend in four days. This means that investors...

  • PCSB Financial Corporation Authorizes Stock Repurchase Program
    GlobeNewswire

    PCSB Financial Corporation Authorizes Stock Repurchase Program

    YORKTOWN HEIGHTS, N.Y., Feb. 03, 2021 (GLOBE NEWSWIRE) -- PCSB Financial Corporation (the “Company”) (NASDAQ: “PCSB”), parent of PCSB Bank, announced today that it has authorized a program to repurchase up to 801,856 shares, or 5%, of its outstanding common stock. The timing and amount of any repurchases will depend on various factors, including but not limited to, market conditions, stock price, and alternative uses of capital. Repurchases may be transacted in the open-market or in negotiated private transactions and may be conducted pursuant to a trading plan adopted in accordance with Securities and Exchange Commission Rule 10b5-1. About PCSB Financial Corporation and PCSB Bank PCSB Financial Corporation is the bank holding company for PCSB Bank, a New York-chartered commercial bank. PCSB Bank 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. Forward Looking Statements This press release contains certain forward-looking statements about the stock repurchase program. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may”. Certain factors that could cause actual results to differ materially from expected results include delays in completing the proposed repurchase program, changes in the interest rate environment, changes in the market price of the Company’s common stock, changes in the general economic conditions, legislative and regulatory changes that adversely affect the business of the Company and PCSB Bank, changes in the securities markets, and other factors disclosed in the Company’s periodic filings with the Securities and Exchange Commission. Contact:Joseph D. RobertoChairman, President and Chief Executive Officer(914) 248-7272

  • GlobeNewswire

    PCSB Financial Corporation Announces Second Fiscal Quarter Financial Results and Declares Quarterly Cash Dividend

    YORKTOWN HEIGHTS, N.Y., Jan. 28, 2021 (GLOBE NEWSWIRE) -- PCSB Financial Corporation (the “Company”) (NASDAQ: PCSB), parent of PCSB Bank (the “Bank”), today announced net income of $2.7 million, or $0.18 per diluted share, for the three months ended December 31, 2020 compared to $2.7 million, or $0.18 per diluted share, for the three months ended September 30, 2020 and $2.4 million, or $0.14 per diluted share, for the three months ended December 31, 2019. Net income was $5.4 million, or $0.36 per diluted share, for the six months ended December 31, 2020, compared to $5.2 million, or $0.32 per diluted, for the six months ended December 31, 2019. On a non-GAAP basis, which excludes certain nonrecurring items, the Company recorded adjusted net income of $2.6 million, or $0.17 per diluted share, for the three months ended December 31, 2020 compared to adjusted net income of $2.7 million, or $0.17 per diluted share, for the three months ended September 30, 2020 and $2.3 million, or $0.14 per diluted share, for the three months ended December 31, 2019. Adjusted net income was $5.2 million, or $0.35 per diluted share, for the six months ended December 31, 2020 compared to $4.7 million, or $0.29 per diluted share, for the six months ended December 31, 2019. Reconciliations of GAAP to non-GAAP measures appear at the end of this release. On January 27, 2021, the Board of Directors declared a regular quarterly cash dividend of $0.04 per share. The dividend is payable on or about February 26, 2021 to stockholders of record as of the close of business on February 12, 2021. Second Quarter Highlights Earnings before income taxes of $3.5 million for the quarter increased $54,000 or 1.6% from the linked quarter and $454,000 or 14.9% from the same quarter last year.Net interest income of $11.5 million for the current quarter decreased $30,000 or 0.3% from the linked quarter and decreased $150,000 or 1.3% from the same quarter last year.The net interest margin was 2.70% for the quarter, an increase from 2.69% in the linked quarter but a decrease from 2.94% for the same quarter last year.Cost of interest-bearing deposits was 0.71% for the quarter, a decrease from 0.80% in the linked quarter and 1.20% for the same quarter last year.The efficiency ratio was 70.72% for the current quarter compared to 70.86% for the linked quarter and 71.82% for the prior year quarter.Average loans receivable, excluding SBA Paycheck Protection Program (“PPP”) loans, of $1.20 billion for the current quarter, an increase of 1.6% compared to the same quarter last year.Average deposits of $1.38 billion for the current quarter, an increase of 11.0% compared to the same quarter last year.Non-performing loans of $1.7 million increased $50,000 year-over-year and equates to 0.13% of total net loans receivable as of December 31, 2020. President’s Comments Commenting on the Company’s performance, Joseph D. Roberto, Chairman, President and Chief Executive Officer of PCSB Financial Corporation, said, “I am pleased with the Company’s operating and financial results despite the challenges presented by the prolonged pandemic. As our quarter and six-month results indicate, we continue to provide stable core earnings and very strong asset quality. We continue to follow strong safety protocols to protect the health and well-being of our employees and customers including the technology that allows them to work and bank remotely when necessary. Meanwhile, with additional funding available for PPP loans we will continue to be a source of strength to our customers and communities in addressing their financial needs during these uncertain economic times. As we look ahead to 2021, we are optimistic that the latest stimulus package along with the progress on vaccinations will lead not only to a strong national economic recovery but opportunities for continued long-term growth and profitability for our shareholders.” Loan Payment Deferrals The COVID-19 pandemic has created extensive disruptions to the local economy and our customers. Through December 31, 2020, the Company has granted loan payment deferrals on 320 consumer and commercial loans whose borrowers have demonstrated financial hardship caused by COVID-19 with loan balances totaling $213.6 million. As of December 31, 2020, 26 loans totaling $31.9 million were still on deferral. Of those loans still on deferral as of December 31, 2020, $6.2 million are scheduled to resume payments prior to March 31, 2021, with the remainder scheduled to resume payments prior to January 31, 2022, however as we continue to assess our borrowers’ financial condition and individual circumstances in the coming weeks and months, additional payment deferrals may be granted. The table below provides additional detail for those loans on deferral as of December 31, 2020 (dollar amounts in thousands): Industry Sector:Number of loans Recorded Investment (2) % secured by real estate collateral Loan-to-Value % (3) Weighted average term of remaining deferral (in months) Consumer (1) 13 $5,531 100.0% 61.9% 2.7 Commercial: Retail 3 11,591 100.0 53.4 12.0 Hotels and accommodation services 2 7,648 100.0 60.3 6.0 Food service 3 5,793 100.0 46.1 5.6 All other commercial 5 1,370 83.3 63.8 3.7 Total commercial 13 26,402 99.1 54.2 8.5 Total 26 $31,933 99.3% 55.6% 7.5 (1) Includes first and second lien residential mortgages of $5.2 million and $294,000, respectively. (2) Includes loans classified as special mention and substandard of $2.5 million and $15.2 million, respectively. (3) Generally based on collateral values upon origination.As of December 31, 2020, the Company does not participate in leveraged lending, shared national credits or credit card lending. Income Statement Summary Net income for the three months ended December 31, 2020 was $2.7 million, unchanged from the linked quarter and a $341,000 increase from $2.4 million in the prior year period. The change from the prior year period is primarily due to a $305,000 decrease in provision for loan loss, a $196,000 increase in noninterest income and a $103,000 decrease in noninterest expenses, partially offset by a $150,000 decrease in net interest income and a $113,000 increase in income tax expense. Net interest income was $11.5 million for the quarter ended December 31, 2020, decreases of $30,000, or 0.3%, compared to the linked quarter, and $150,000, or 1.3%, compared to the prior year quarter. The decrease compared to the linked quarter is primarily the result of a $11.0 million, or 0.6%, decrease in average interest-earning assets, partially offset by a 1 basis point increase in net interest margin. The decrease in net interest income compared to the prior year period is primarily the result of a 24 basis point decrease in net interest margin, partially offset by a $118.3 million, or 7.4% increase in average interest-earning assets. The net interest margin was 2.70% for the current quarter reflecting an increase of 1 basis point compared to 2.69% in the linked quarter and a 24 basis point decrease compared to 2.94% in the prior year quarter. When compared to the prior year period, despite continued asset growth and a decrease in funding costs, margin compression has resulted from significant decreases in market interest rates over the past year and a less profitable asset mix due to an increase in cash and cash equivalents. However, in the current quarter, the reduction in funding costs more than offset the decrease in asset yields, resulting in slight net interest margin expansion. Net interest margin, excluding the effect of PPP loans was 2.66% for the current quarter compared to 2.63% in the linked quarter and 2.94% in the prior year quarter. Net interest margin, excluding the effect of PPP loans was 2.65% for the current year to date period compared to 2.98% in the prior year period. The Company has experienced significant excess liquidity balances beginning in the June 2020 quarter due to deposit growth stemming from the various impacts of the pandemic, including, but not limited to, government stimulus, a decrease in consumer and commercial spending, and reduced loan growth due to suppressed originations and higher prepayment rates. Excluding the effects of this excess liquidity, net interest margin is estimated to have been 2.89% and 2.86% for the current and linked quarters, respectively. Some level of excess liquidity is expected to continue for the foreseeable future and is largely dependent on future government stimulus programs. The yield on interest-earning assets for the current quarter was 3.32%, a 5 basis point decrease from the prior quarter and a 62 basis point decrease from the prior year quarter. A $54.3 million or 4.6% increase in average loans compared to the prior year quarter was more than offset by a decrease in asset yields, a result of decreases in market interest rates, the origination of lower yielding PPP loans, and significant increases in liquidity over the last nine months. The rate of asset yield decrease has slowed in recent quarters due to a more stable yield curve and earning asset composition. The cost of interest-bearing deposits was 0.71% for the current quarter, decreases of 9 basis points from 0.80% in the prior quarter and 49 basis points from 1.20% in the prior year quarter. In response to the significant decrease in market interest rates in March 2020, deposit rate reductions have been implemented throughout the last year, the effects of which continue to be realized. At December 31, 2020, the weighted average cost of interest-bearing deposits was 0.54%. The cost of interest-bearing liabilities was 0.81% for the current quarter, decreases of 8 basis points from 0.89% in the prior quarter and 50 basis points from 1.31% in the prior year quarter. Over the remainder of the current fiscal year, the Company has $60.0 million of wholesale funding maturing, comprised of FHLB advances and brokered time deposits, with a weighted average cost of 2.08%. Additionally, over the same period the Company has $155.2 million of non-brokered time deposits maturing with a current weighted average cost of 1.05%. If interest rates stay constant, the Company expects the cost of these deposits to be reduced significantly. The provision for loan losses was $107,000 for the three months ended December 31, 2020 compared to $109,000 in the linked quarter and $412,000 for the prior year quarter. Charge-offs, net of recoveries, were $102,000 for the three months ended December 31, 2020 compared to $76,000 for the linked quarter and $189,000 for the prior year quarter. Non-performing loans as a percent of total loans receivable was 0.13% as of December 31, 2020, a decrease from 0.17% as of September 30, 2020 and 0.14% as of December 31, 2019. Noninterest income of $743,000 for the three months ended December 31, 2020 increased $149,000 compared to the linked quarter and $196,000 compared to the prior year quarter. The increase compared to the linked quarter was primarily due to a $109,000 increase in swap income and a $41,000 increase in fees and service charges. The increase compared to the prior year quarter was primarily due to a $238,000 increase in swap income, partially offset by a decrease of $39,000 in fees and service charges. The reduction in fees and service charge income compared to the prior year quarter was due to the effects of reduced customer transaction activity since the start of the COVID-19 pandemic, however fee and service charge income has increased compared to the linked quarter. Noninterest expense of $8.7 million for the three months ended December 31, 2020 increased $67,000 compared to the linked quarter and decreased $103,000 compared to the prior year quarter. The increase compared to the linked quarter was primarily due to increases of $103,000 in professional fees, $93,000 in pension costs and $88,000 in all other non-interest expenses, partially offset by a $130,000 decrease in communications and data processing and $87,000 in salaries and benefits. The decrease compared to the prior year quarter was caused primarily by decreases of $369,000 in salaries and benefits and $61,000 in communication and data processing costs, partially offset by increases of $124,000 in professional fees, $122,000 in FDIC insurance premiums and $81,000 in all other expenses. The Bank applied small bank assessment credits of $108,000 which fully offset its FDIC assessment for the prior year quarter. All available credits were applied as of June 30, 2020. The effective income tax rate was 22.9% for the three months ended December 31, 2020, as compared to 22.5% for the prior year quarter. The Company expects an effective tax rate of approximately 21.5% for the year ending June 30, 2021. Balance Sheet Summary Total assets decreased $2.0 million to $1.79 billion at December 31, 2020 as compared to June 30, 2020. However, the mix of assets changed due to decreases of $23.4 million in net loans receivable and $3.0 million in total investment securities, which was mostly offset by an increase of $26.2 million in cash and cash equivalents. The $23.4 million decrease in net loans receivable was the result of decreases in residential mortgages of $17.4 million, commercial mortgages of $5.8 million, commercial loans of $3.6 million, which included a decrease in PPP loans of $13.9 million, and home equity lines of credit of $2.2 million, partially offset by an increase in construction loans of $6.5 million. The increase in cash and cash equivalents is a result of an increase in deposits and reduced loan originations experienced during the quarter due to reduced economic activity resulting from the COVID-19 pandemic. Total liabilities increased $2.3 million to $1.52 billion at December 31, 2020 as a $4.0 million increase in deposits which was partially offset by a $1.7 million decrease in all other liabilities. Total shareholders’ equity decreased $4.4 million to $269.3 million at December 31, 2020 as compared to June 30, 2020. This decrease was primarily due to the repurchase of $11.3 million (784,170 shares) of common stock and $1.2 million of cash dividends declared and paid, partially offset by net income of $5.4 million and $2.3 million of stock-based compensation and reduction in unearned ESOP shares for plan shares earned during the period. As of December 31, 2020, there were 60,737 shares available to be repurchased under the current stock repurchase plan. On January 20, 2021, the stock repurchase plan was completed, in which the Company repurchased a total of 844,907 shares at an average price of $14.24 per share. At December 31, 2020, the Company’s book value per share and tangible book value per share were $16.73 and $16.34, respectively, compared to $16.20 and $15.82, respectively, at June 30, 2020. 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, 2020, 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 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. RobertoChairman, President and Chief Executive Officer(914) 248-7272 PCSB Financial Corporation and SubsidiariesConsolidated Balance Sheets (unaudited)(amounts in thousands, except share and per share data) December 31, June 30, 2020 2020 ASSETS Cash and due from banks $159,000 $135,045 Federal funds sold 3,541 1,257 Cash and cash equivalents 162,541 136,302 Held to maturity debt securities, at amortized cost (fair value of $273,858 and $281,497, respectively) 266,949 275,772 Available for sale debt securities, at fair value 43,282 37,426 Total investment securities 310,231 313,198 Loans receivable, net of allowance for loan losses of $8,677 and $8,639, respectively 1,237,550 1,260,947 Accrued interest receivable 6,117 6,880 FHLB stock 6,305 6,308 Premises and equipment, net 19,524 20,853 Deferred tax asset, net 3,665 3,129 Bank-owned life insurance 25,280 25,019 Goodwill 6,106 6,106 Other intangible assets 189 229 Other assets 12,331 12,958 Total assets $1,789,839 $1,791,929 LIABILITIES AND SHAREHOLDERS’ EQUITY Interest-bearing deposits $1,187,319 $1,181,357 Non interest-bearing deposits 189,968 191,898 Total deposits 1,377,287 1,373,255 Mortgage escrow funds 10,610 10,123 Advances from Federal Home Loan Bank 106,023 106,089 Other liabilities 26,595 28,749 Total liabilities 1,520,515 1,518,216 Commitments and contingencies - - Preferred stock ($0.01 par value, 10,000,000 shares authorized, no shares issued or outstanding as of December 31, 2020 and June 30, 2020, respectively) - - Common stock ($0.01 par value, 200,000,000 shares authorized, 18,712,295 shares issued as of December 31, 2020 and June 30, 2020, and 16,097,867 and 16,898,137 shares outstanding as of December 31, 2020 and June 30, 2020, respectively) 187 187 Additional paid in capital 187,964 186,200 Retained earnings 145,472 141,288 Unearned compensation - ESOP (10,657) (11,145)Accumulated other comprehensive loss, net of income taxes (5,945) (6,403)Treasury stock, at cost (2,614,428 and 1,814,158 shares as of December 31, 2020 and June 30, 2020, respectively) (47,697) (36,414)Total shareholders’ equity 269,324 273,713 Total liabilities and shareholders’ equity $1,789,839 $1,791,929 PCSB Financial Corporation and SubsidiariesConsolidated Statements of Operations (unaudited)(amounts in thousands, except share and per share data) Three Months Ended Six Months Ended December 31, December 31, 2020 2019 2020 2019 Interest and dividend income Loans receivable $12,182 $13,149 $24,729 $26,185 Investment securities 1,933 2,279 3,789 4,971 Federal funds and other 110 301 235 599 Total interest and dividend income 14,225 15,729 28,753 31,755 Interest expense Deposits and escrow interest 2,158 3,358 4,590 6,659 FHLB advances 520 674 1,039 1,401 Total interest expense 2,678 4,032 5,629 8,060 Net interest income 11,547 11,697 23,124 23,695 Provision for loan losses 107 412 216 747 Net interest income after provision for loan losses 11,440 11,285 22,908 22,948 Noninterest income Fees and service charges 363 402 685 804 Swap income 238 - 367 170 Bank-owned life insurance 129 134 261 271 Other 13 11 24 67 Total noninterest income 743 547 1,337 1,312 Noninterest expense Salaries and employee benefits 5,520 5,889 11,127 11,653 Occupancy and equipment 1,374 1,333 2,692 2,648 Communications and data processing 446 507 1,022 1,038 Professional fees 503 379 903 783 Postage, printing, stationery and supplies 167 159 306 299 Advertising 100 100 200 200 FDIC assessment 122 - 235 - Amortization of intangible assets 20 25 40 49 Other operating expenses 439 402 790 911 Total noninterest expense 8,691 8,794 17,315 17,581 Net income before income tax expense 3,492 3,038 6,930 6,679 Income tax expense 798 685 1,508 1,497 Net income $2,694 $2,353 $5,422 $5,182 Earnings per common share: Basic $0.18 $0.15 $0.36 $0.33 Diluted 0.18 0.14 0.36 0.32 Weighted average common shares outstanding: Basic 14,888,528 15,837,762 15,094,982 15,908,761 Diluted 14,899,020 15,909,855 15,094,982 15,996,251 PCSB Financial Corporation and SubsidiariesNet Interest Margin Analysis (unaudited)(dollar amounts in thousands) Three Months Ended December 31, 2020 September 30, 2020 December 31, 2019 Average Balance Interest / Dividends Average Rate Average Balance Interest / Dividends Average Rate Average Balance Interest / Dividends Average Rate Assets: Loans receivable$1,232,555 $12,182 3.95% $1,252,595 $12,547 4.00% $1,178,253 $13,149 4.46%Investment securities (1) 313,812 1,933 2.51 315,292 1,856 2.40 358,760 2,279 2.55 Other interest-earning assets 168,608 110 0.26 158,038 125 0.31 59,678 301 2.00 Total interest-earning assets 1,714,975 14,225 3.32 1,725,925 14,528 3.37 1,596,691 15,729 3.94 Non-interest-earning assets 70,417 71,926 68,793 Total assets$1,785,392 $1,797,851 $1,665,484 Liabilities and equity: NOW accounts$149,620 79 0.21 $149,466 89 0.24 $122,455 67 0.22 Money market accounts 255,961 211 0.33 250,297 238 0.38 161,075 472 1.16 Savings accounts and escrow 362,422 168 0.18 360,091 202 0.22 355,295 234 0.26 Time deposits 434,446 1,700 1.55 443,487 1,903 1.70 467,486 2,585 2.19 Total interest-bearing deposits 1,202,449 2,158 0.71 1,203,341 2,432 0.80 1,106,311 3,358 1.20 FHLB advances 106,034 520 1.94 106,067 519 1.94 117,712 674 2.27 Total interest-bearing liabilities 1,308,483 2,678 0.81 1,309,408 2,951 0.89 1,224,023 4,032 1.31 Non-interest-bearing deposits 178,538 184,085 138,346 Other non-interest-bearing liabilities 26,482 28,958 21,827 Total liabilities 1,513,503 1,522,451 1,384,196 Total shareholders' equity 271,889 275,400 281,288 Total liabilities and shareholders' equity$1,785,392 $1,797,851 $1,665,484 Net interest income $11,547 $11,577 $11,697 Interest rate spread - tax equivalent (2) 2.51 2.48 2.63 Net interest margin - tax equivalent (3) 2.70 2.69 2.94 Average interest-earning assets to interest-bearing liabilities 131.07% 131.81% 130.45% (1) Tax exempt interest revenue is shown on a tax equivalent basis for proper comparison using a statutory federal income tax rate of 21% for all period presented. See reconciliation of 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. PCSB Financial Corporation and SubsidiariesNet Interest Margin Analysis (unaudited)(dollar amounts in thousands) Six Months Ended December 31, 2020 2019 Average Balance Interest / Dividends Average Rate Average Balance Interest / Dividends Average Rate Assets: Loans receivable$1,242,575 $24,729 3.98% $1,160,139 $26,185 4.51%Investment securities (1) 314,552 3,789 2.44 378,975 4,971 2.63 Other interest-earning assets 163,323 235 0.29 52,796 599 2.25 Total interest-earning assets 1,720,450 28,753 3.35 1,591,910 31,755 3.99 Non-interest-earning assets 71,172 69,530 Total assets$1,791,622 $1,661,440 Liabilities and equity: NOW accounts$149,543 168 0.22 $121,154 124 0.20 Money market accounts 253,129 449 0.35 155,477 935 1.19 Savings accounts and escrow 361,256 370 0.20 358,932 466 0.26 Time deposits 438,966 3,603 1.63 463,417 5,134 2.20 Total interest-bearing deposits 1,202,894 4,590 0.76 1,098,980 6,659 1.20 FHLB advances 106,051 1,039 1.94 119,784 1,401 2.32 Total interest-bearing liabilities 1,308,945 5,629 0.86 1,218,764 8,060 1.32 Non-interest-bearing deposits 181,312 139,486 Other non-interest-bearing liabilities 27,720 21,519 Total liabilities 1,517,977 1,379,769 Total shareholders’ equity 273,645 281,671 Total liabilities and shareholders’ equity$1,791,622 $1,661,440 Net interest income $23,124 $23,695 Interest rate spread - tax equivalent (2) 2.49 2.67 Net interest margin - tax equivalent (3) 2.70 2.98 Average interest-earning assets to interest-bearing liabilities 131.44% 130.62% (1) Tax exempt interest revenue is shown on a tax equivalent basis for proper comparison using a statutory federal income tax rate of 21% for all period presented. See reconciliation of 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. PCSB Financial Corporation and SubsidiariesCondensed Financial Information (unaudited)(amounts in thousands, except per share data) As of December 31,2020 September 30,2020 June 30,2020 March 31,2020 December 31,2019 Condensed Balance Sheets Cash and cash equivalents$162,541 $162,739 $136,302 $84,912 $62,835 Total investment securities 310,231 318,509 313,198 309,618 327,835 Loans receivable, net 1,237,550 1,227,913 1,260,947 1,220,682 1,183,740 Other assets 79,517 81,914 81,482 80,663 74,757 Total assets$1,789,839 $1,791,075 $1,791,929 $1,695,875 $1,649,167 Total deposits and escrow$1,387,897 $1,383,432 $1,383,378 $1,287,510 $1,261,663 Advances from Federal Home Loan Bank 106,023 106,056 106,089 106,121 86,153 Other liabilities 26,595 27,908 28,749 29,827 21,512 Total liabilities 1,520,515 1,517,396 1,518,216 1,423,458 1,369,328 Total shareholders’ equity 269,324 273,679 273,713 272,417 279,839 Total liabilities and shareholders’ equity$1,789,839 $1,791,075 $1,791,929 $1,695,875 $1,649,167 Quarter Ended Six Months Ended December 31,2020 September 30,2020 June 30,2020 March 31,2020 December 31,2019 December 31,2020 December 31,2019 Condensed Income Statements Interest income$14,225 $14,528 $14,821 $15,334 $15,729 $28,753 $31,755 Interest expense 2,678 2,951 3,362 3,809 4,032 5,629 8,060 Net interest income 11,547 11,577 11,459 11,525 11,697 23,124 23,695 Provision for loan losses 107 109 309 2,008 412 216 747 Noninterest income 743 594 1,177 580 547 1,337 1,312 Noninterest expense 8,691 8,624 8,533 8,520 8,794 17,315 17,581 Income before income tax expense 3,492 3,438 3,794 1,577 3,038 6,930 6,679 Income tax expense 798 710 834 360 685 1,508 1,497 Net income$2,694 $2,728 $2,960 $1,217 $2,353 $5,422 $5,182 Earnings per share: Basic$0.18 $0.18 $0.19 $0.08 $0.15 $0.36 $0.33 Diluted 0.18 0.18 0.19 0.08 0.14 0.36 0.32 PCSB Financial Corporation and SubsidiariesSelected Financial Data (unaudited) Quarter Ended Six Months Ended December 31,2020 September 30,2020 June 30,2020 March 31,2020 December 31,2019 December 31,2020 December 31,2019 Performance Ratios (1): Return on average assets 0.60% 0.61% 0.68% 0.29% 0.57% 0.61% 0.62%Return on average equity 3.96% 3.96% 4.30% 1.77% 3.35% 3.96% 3.68%Interest rate spread 2.51% 2.48% 2.47% 2.60% 2.63% 2.49% 2.67%Net interest margin 2.70% 2.69% 2.72% 2.89% 2.94% 2.70% 2.98%Efficiency ratio 70.72% 70.86% 67.53% 70.38% 71.82% 70.79% 70.30%Adjusted efficiency ratio (2) 71.74% 71.28% 67.74% 70.87% 72.55% 71.51% 72.17% Noninterest income to average assets 0.17% 0.13% 0.27% 0.14% 0.13% 0.15% 0.16%Noninterest expense to average assets 1.95% 1.92% 1.95% 2.06% 2.11% 1.93% 2.12% Average interest-earning assets to average interest-bearing liabilities 131.07% 131.81% 131.65% 129.78% 130.45% 131.44% 130.62%Average equity to average assets 15.23% 15.32% 15.70% 16.60% 16.89% 15.27% 16.95%Dividend payout ratio (3) 22.57% 23.09% 21.25% 52.01% 27.62% 22.83% 25.26% PCSB Financial Corporation and SubsidiariesSelected Financial Data (unaudited) - Continued(dollar amounts in thousands, except share and per share data) As of and for the quarter ended December 31,2020 September 30,2020 June 30,2020 March 31,2020 December 31,2019 Loans to deposits 89.85% 89.17% 91.82% 95.40% 94.58% Share Data: Shares outstanding 16,097,867 16,634,237 16,898,137 16,898,137 17,372,308 Book value per common share$16.73 $16.45 $16.20 $16.12 $16.11 Tangible book value per common share (4)$16.34 $16.07 $15.82 $15.74 $15.74 Asset Quality Ratios: Non-performing loans receivable$1,668 $2,083 $1,795 $1,802 $1,618 Non-performing assets$1,668 $2,083 $1,795 $1,802 $1,897 Allowance for loan losses as a percent of total loans receivable 0.70% 0.70% 0.68% 0.68% 0.52%Allowance for loan losses as a percent of non-performing loans receivable 520.20% 416.32% 481.28% 463.15% 384.18%Non-performing loans as a percent of total loans receivable, net 0.13% 0.17% 0.14% 0.15% 0.14%Non-performing assets as a percent of total assets 0.09% 0.12% 0.10% 0.11% 0.12% Net charge-offs (recoveries)$102 $76 $17 $(122)$189 Net charge-offs (recoveries) to average outstanding loans during the period (1) 0.03% 0.02% 0.01% (0.04%) 0.06% Capital Ratios (5): Tier 1 capital (to adjusted total assets) 12.66% 12.41% 12.51% 13.19% 13.00%Common equity Tier 1 capital (to risk-weighted assets) 17.74% 17.56% 16.98% 16.80% 17.24%Tier 1 capital (to risk-weighted assets) 17.74% 17.56% 16.98% 16.80% 17.24%Total capital (to risk-weighted assets) 18.42% 18.24% 17.65% 17.44% 17.74% (1) Performance ratios for quarter ended periods are annualized. (2) Adjusted efficiency ratio is a non-GAAP measure and is defined as noninterest expense, less certain nonrecurring items, divided by operating revenue, which is equal to net interest income plus non-interest income excluding certain nonrecurring items. In our judgment, the adjustments made to operating revenue allow investors and analysts to better assess our operating expenses in relation to our core operating revenue by removing the impact of certain one-time items and other discrete items that are unrelated to our core business. Reconciliations of GAAP to non-GAAP measures appear at the end of this release. (3) Dividends declared per share divided by net income per share. (4) 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. (5) Represents Bank ratios. PCSB Financial Corporation and SubsidiariesLoan and Deposit Portfolios (unaudited)(amounts in thousands) As of December 31,2020 September 30,2020 June 30,2020 March 31,2020 December 31,2019 Mortgage loans: Residential mortgages$237,987 $245,008 $255,382 $266,684 $262,441 Commercial mortgage 801,348 794,248 807,106 775,378 741,171 Construction 17,551 11,512 11,053 24,929 22,787 Net deferred loan origination costs 600 666 739 925 1,054 Total mortgage loans 1,057,486 1,051,434 1,074,280 1,067,916 1,027,453 Commercial and consumer loans: Commercial loans (1) 160,678 155,569 164,257 128,869 129,809 Home equity credit lines 27,653 29,249 29,838 30,994 31,460 Consumer and overdrafts 328 308 481 444 436 Net deferred loan origination costs 82 25 730 805 798 Total commercial and consumer loans 188,741 185,151 195,306 161,112 162,503 Total loans receivable 1,246,227 1,236,585 1,269,586 1,229,028 1,189,956 Allowance for loan losses (8,677) (8,672) (8,639) (8,346) (6,216)Loans receivable, net$1,237,550 $1,227,913 $1,260,947 $1,220,682 $1,183,740 (1) Includes PPP loans of $35.7 million as of December 31, 2020 and September 30, 2020, $49.6 million as of June 30, 2020 and none at all other dates. As of December 31,2020 September 30,2020 June 30,2020 March 31,2020 December 31,2019 Demand deposits$189,968 $183,844 $191,898 $145,844 $140,218 NOW accounts 159,919 148,176 151,797 128,103 126,346 Money market accounts 256,132 253,176 239,942 192,779 162,208 Savings 354,882 349,805 343,352 330,310 354,078 Time deposits 416,386 442,011 446,266 482,550 468,764 Total deposits$1,377,287 $1,377,012 $1,373,255 $1,279,586 $1,251,614 PCSB Financial Corporation and SubsidiariesReconciliation of GAAP to Non-GAAP Measures (unaudited)(dollar amounts in thousands, except share and per share data) Quarter Ended Six Months Ended December 31,2020 September 30,2020 June 30,2020 March 31,2020 December 31,2019 December 31,2020 December 31,2019 Computation of Adjusted Net Income and Adjusted Earnings Per Share Net income applicable to common stock (GAAP)$2,694 $2,728 $2,960 $1,217 $2,353 $5,422 $5,182 Adjustments (1): Prepayment income on loans receivable and investment securities (136) (58) (30) (4) (95) (195) (466)Gain on sale of foreclosed real estate - - - (31) - - (37)Gain on sale of investment securities - - - (29) - - - Adjusted net income (Non-GAAP)$2,558 $2,670 $2,930 $1,153 $2,258 $5,227 $4,679 Average number of common shares outstanding: Basic 14,888,528 15,302,838 15,334,098 15,437,173 15,837,762 15,094,982 15,908,761 Diluted 14,899,020 15,302,949 15,334,098 15,447,217 15,909,855 15,094,982 15,996,251 Earnings per share (GAAP): Basic$0.18 $0.18 $0.19 $0.08 $0.15 $0.36 $0.33 Diluted 0.18 0.18 0.19 0.08 0.14 0.36 0.32 Adjusted earnings per common share (Non-GAAP): Basic$0.17 $0.17 $0.19 $0.07 $0.14 $0.35 $0.29 Diluted 0.17 0.17 0.19 0.07 0.14 0.35 0.29 (1) Amounts included in income before income tax expense are presented net of tax. PCSB Financial Corporation and SubsidiariesReconciliation of GAAP to Non-GAAP Measures (unaudited) - Continued(dollar amounts in thousands, except share and per share data) Quarter Ended Six Months Ended December 31,2020 September 30,2020 December 31,2019 December 31,2020 December 31,2019 Computation of tax equivalent net interest income Total interest income$14,225 $14,528 $15,729 $28,753 $31,755 Total interest expense 2,678 2,951 4,032 5,629 8,060 Net interest income (GAAP) 11,547 11,577 11,697 23,124 23,695 Tax equivalent adjustment 35 21 6 55 12 Net interest income - tax equivalent (Non-GAAP)$11,582 $11,598 $11,703 $23,179 $23,707 PCSB Financial Corporation and SubsidiariesReconciliation of GAAP to Non-GAAP Measures (unaudited) - Continued(dollar amounts in thousands, except share and per share data) Quarter Ended Six Months Ended December 31,2020 September 30,2020 June 30,2020 March 31,2020 December 31,2019 December 31,2020 December 31,2019 Computation of Efficiency Ratio Noninterest expense (GAAP)$8,691 $8,624 $8,533 $8,520 $8,794 $17,315 $17,581 Net interest income (GAAP)$11,547 $11,577 $11,459 $11,525 $11,697 $23,124 $23,695 Noninterest income (GAAP) 743 594 1,177 580 547 1,337 1,312 Total (GAAP) 12,290 12,171 12,636 12,105 12,244 24,461 25,007 Adjustments: Prepayment income on loans receivable and investment securities (176) (73) (39) (5) (123) (249) (600)Gain on sale of foreclosed real estate - - - (40) - - (47)Gain on sale of investment securities - - - (38) - - - Adjusted total (Non-GAAP)$12,114 $12,098 $12,597 $12,022 $12,121 $24,212 $24,360 Efficiency ratio (GAAP) 70.72% 70.86% 67.53% 70.38% 71.82% 70.79% 70.30%Adjusted efficiency ratio (Non-GAAP) 71.74% 71.28% 67.74% 70.87% 72.55% 71.51% 72.17% PCSB Financial Corporation and SubsidiariesReconciliation of GAAP to Non-GAAP Measures (unaudited) - Continued(dollar amounts in thousands, except share and per share data) As of December 31,2020 September 30,2020 June 30,2020 March 31,2020 December 31,2019 Computation of Tangible Book Value per Common Share Total shareholders' equity (GAAP)$269,324 $273,679 $273,713 $272,417 $279,839 Adjustments: Goodwill (6,106) (6,106) (6,106) (6,106) (6,106)Other intangible assets (189) (209) (229) (250) (274)Tangible common shareholders' equity (Non-GAAP)$263,029 $267,364 $267,378 $266,061 $273,459 Common shares outstanding 16,097,867 16,634,237 16,898,137 16,898,137 17,372,308 Book value per share (GAAP)$16.73 $16.45 $16.20 $16.12 $16.11 Adjustments: Effects of intangible assets (0.39) (0.38) (0.38) (0.38) (0.37) Tangible book value per common share (Non-GAAP)$16.34 $16.07 $15.82 $15.74 $15.74