Exhibit 99.1
PCSB Financial Corporation Announces Second Fiscal Quarter Financial Results and
Declares Quarterly Cash Dividend
Yorktown Heights, New York; January 23, 2020 – PCSB Financial Corporation (the “Company”) (NASDAQ: PCSB), parent of PCSB Bank (the "Bank"), today announced net income of $2.4 million, or $0.14 per diluted share, for the three months ended December 31, 2019 compared to $2.8 million, or $0.18 per diluted share, for the three months ended September 30, 2019 and $2.3 million, or $0.14 per diluted share, for the three months ended December 31, 2018. Net income for the six months ended December 31, 2019 was $5.2 million, or $0.32 per diluted share, compared to $4.7 million, or $0.28 per diluted share, for the same period last year.
On a non-GAAP basis, which excludes certain nonrecurring items, the Company recorded adjusted net income of $2.3 million, or $0.14 per diluted share for the three months ended December 31, 2019 as compared to adjusted net income of $2.4 million, or $0.15 per diluted share, for the three months ended September 30, 2019 and $2.1 million, or $0.13 per diluted share, for the three months ended December 31, 2018. Adjusted net income for the six months ended December 31, 2019 was $4.7 million, or $0.29 per diluted share, compared to $4.4 million, or $0.26 per diluted share, for the same period last year. Reconciliations of GAAP to non-GAAP measures appear at the end of this release.
The Board of Directors declared a regular quarterly cash dividend of $0.04 per share. The dividend is payable on or about February 28, 2020 to stockholders of record as of the close of business on February 14, 2020.
Second Quarter 2020 Highlights
| • | Diluted earnings per share of $0.14 for the current quarter unchanged from the prior year quarter. |
| • | Net interest income of $11.7 million, an increase of $953,000, or 8.9%, compared to the same quarter last year. Fiscal year-to-date net interest income of $23.7 million, an 11.7% increase from the prior year. |
| • | The net interest margin was 2.93% for the quarter, a decrease from 2.99% for the same quarter last year. |
| • | The efficiency ratio was 71.82% for the quarter, compared to 73.56% for the same quarter last year. |
| • | Total loans receivable of $1.18 billion, representing year-to-date growth of $90.6 million, or 8.3%, and year-over-year growth of $279.4 million, or 30.9%. |
| • | Nonperforming loans decreased $1.8 million, or 52.6%, during the quarter to $1.6 million equating to 0.14% of gross loans receivable. |
| • | Loan to deposit ratio was 94.58%, an increase from 73.81% as of the same quarter last year. |
| • | The Company repurchased 251,931 shares of common stock during the quarter at a total cost of $5.1 million, or an average cost of $20.12 per share. |
President’s Comments
Commenting on the Company’s results, Joseph D. Roberto, Chairman, President and Chief Executive Officer of PCSB Financial Corporation, said, “I am pleased with the solid growth in our core business through the first six months of our third year as a public company. Loan volume remains strong, as evidenced by the $90.6 million, or 8.3%, increase in net loans over the six-month period. This growth resulted in a loan to deposit ratio of 94.58%, increasing from 89.17% at June 30, 2019. Asset quality continues to remain strong as non-performing assets as a percent of total assets was 0.12% as compared to 0.27% a year ago. Our net interest margin of 2.93% is down 6 basis points from 2.99% in the year ago period as a result of the continued low interest rate environment along with competitive loan and deposit pricing. However, we are pleased that our linked quarters’ cost of deposits has leveled off and we will look to take advantage of opportunities to reduce this cost. As we move forward, we remain focused on enhancing shareholder value through continued growth in our core business together with capital management techniques such as share repurchases and dividends.
Income Statement Summary
Net interest income was $11.7 million for the quarter ended December 31, 2019, a decrease of $301,000, or 2.5%, compared to the quarter ended September 30, 2019, and an increase of $953,000, or 8.9%, compared to quarter ended December 31, 2018. The increase in net interest income compared to the prior year is primarily the result of
an increase in average net interest earning assets, as the Company has accomplished significant growth in average loans receivable compared to the same quarter last year, however the effect of the growth was partially offset by a decrease in net interest margin. Net interest income declined compared to the quarter ended September 30, 2019 as a result of margin compression, largely resulting from higher prepayment income earned in the prior quarter.
The net interest margin was 2.93% for the current quarter, decreases of 10 basis points compared to 3.03% in the prior quarter and 6 basis points compared to 2.99% in the prior year quarter. Excluding non-recurring prepayment income earned in these periods, net interest margin for the current quarter would have been 2.90%, unchanged from the prior quarter and a decrease from 2.97% in the prior year quarter. Despite continued asset growth and a shift in the asset mix, rising funding costs due to higher short-term interest rates along with competitive loan and deposit pricing has resulted in net interest margin compression.
The yield on interest-earning assets for the current quarter was 3.94%, a 10 basis point decrease from the prior quarter, however this represents a 26 basis point increase from the prior year quarter. Excluding the effects of prepayment income, the yield on interest-earning assets was 3.91% for the current quarter, a decrease of one basis point from the prior quarter as a higher yielding asset mix was more than offset by downward pressures on market interest rates.
The cost of interest-bearing deposits was 1.20% for the current quarter, unchanged from the prior quarter and an increase of 29 basis points from 0.91% for the prior year quarter. The Company has experienced a shift in the deposit mix over the past several quarters as customers in generally lower costing savings products moved to generally higher rate money market and time deposits, however the pace of this shift has slowed in recent quarters. The cost of interest-bearing liabilities was 1.31% for the current quarter, a decrease of 1 basis point from 1.32% for the prior quarter and an increase of 38 basis points from 0.93% for the prior year quarter.
The provision for loan losses was $412,000 for the three months ended December 31, 2019 compared to $335,000 in the prior quarter and $6,000 for the same quarter in 2018. Charge-offs, net of recoveries, were $189,000 for the three months ended December 31, 2019 compared to $6,000 for the three months ended September 30, 2019 and $22,000 for the three months ended December 31, 2018. Current quarter charge-offs related primarily to one commercial loan relationship. Loans classified as substandard or doubtful decreased $6.3 million, or 56.2%, to $4.9 million at December 31, 2019 from $11.3 million at September 30, 2019 and decreased $5.3 million, or 51.5%, from $10.2 million at December 31, 2018. Non-performing loans as a percent of total loans receivable was 0.14% as of December 31, 2019, a decrease from 0.29% as of September 30, 2019 and 0.39% as of December 31, 2018.
Noninterest income of $547,000 for the three months ended December 31, 2019 decreased $218,000 compared to the three months ended September 30, 2019, primarily due to a $170,000 decrease in swap income and a $47,000 decrease in gains on sale of foreclosed real estate. Noninterest income decreased $373,000 compared to the same period in 2018, primarily due to decreases of $155,000 in gains on sale of bank premises, $75,000 in swap income, $56,000 in deposit-related fees, $55,000 in gains on sales of securities and $24,000 in gains on sale of foreclosed real estate.
Noninterest expense of $8.8 million for the three months ended December 31, 2019 was largely unchanged compared to the three months ended September 30, 2019 and increased $214,000 compared to the same period in 2018. The $214,000 increase from the prior year period was caused primarily by a $583,000 increase in salaries and employee benefits, partially offset by a $124,000 decrease in FDIC assessment costs, a $90,000 loss on a receivable recorded in the prior quarter and net decreases in all other operating expenses. The increase in salaries and employee benefits was caused primarily by increases of $347,000 in stock-based compensation and $251,000 in other compensation. During the current quarter, the Bank applied small bank assessment credits of $108,000 which fully offset the Bank’s FDIC assessment for the current quarter. The remaining credits available are approximately $131,000.
The effective income tax rate was 22.5% for the three months ended December 31, 2019, as compared to 22.3% for the three months ended September 30, 2019 and 24.5% for the three months ended December 31, 2018.
Balance Sheet Summary
Total assets increased $11.6 million to $1.65 billion at December 31, 2019 from $1.64 billion at June 30, 2019. This increase was primarily due to increases of $90.6 million, or 8.3%, in net loans receivable and $11.6 million in premises and equipment, partially offset by a decrease of $89.9 million in total investment securities. The $90.6 million increase in loans was the result of $111.6 million of originations and $44.1 million of loan purchases, partially offset by $65.1 million of net amortization and repayments. Commercial mortgages increased $89.8 million, or 13.8%, and construction loans increased $9.6 million, or 72.2%, while commercial loans, residential mortgages and home equity lines of credit all had immaterial decreases.
Total liabilities increased $13.1 million to $1.37 billion at December 31, 2019 from $1.36 billion at June 30, 2019. This increase was primarily due to a $26.5 million, or 2.1%, increase in deposits and escrow accounts and an $11.6 million increase in other liabilities, as a result of recording a $12.0 million lease liability (a related lease asset was also recorded as part of bank premises and equipment) associated with the adoption of new lease accounting standards, partially offset by a $25.1 million decrease in FHLB advances.
Total shareholders’ equity decreased $1.5 million to $279.8 million at December 31, 2019 from $281.3 million at June 30, 2019. This decrease was primarily due to the repurchase of $8.6 million (431,731 shares) of common stock and $1.3 million of cash dividends declared and paid, partially offset by net income of $5.2 million, as well as $2.6 million of stock-based compensation and reduction in unearned ESOP shares for plan shares earned during the period. As of December 31, 2019, there were 474,171 shares available to be repurchased under the current stock repurchase plan.
At December 31, 2019, the Company’s book value per share and tangible book value per share were $16.11 and $15.74, respectively, compared to $15.80 and $15.44, respectively, at June 30, 2019. Reconciliations of book value per share (GAAP measure) to tangible book value per share (non-GAAP measure) appear at the end of this release. At December 31, 2019, the Bank was considered “well capitalized” under applicable regulatory guidelines.
About PCSB Financial Corporation and PCSB Bank
PCSB Financial Corporation is the bank holding company for PCSB Bank. PCSB Bank is a New York-chartered commercial bank that has served the banking needs of its customers in the Lower Hudson Valley of New York State since 1871. It operates from its executive offices/headquarters and 15 branch offices located in Dutchess, Putnam, Rockland and Westchester Counties in New York.
This News Release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by use of words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions.
Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These factors include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the Company's business; changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company's financial condition or results of operations; general economic conditions, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive than the Company anticipates; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; or litigation or other matters before regulatory agencies, whether
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)
| | December 31, | | | June 30, | |
| | 2019 | | | 2019 | |
| | | | | | | | |
ASSETS | | | | | | | | |
Cash and due from banks | | $ | 61,603 | | | $ | 58,756 | |
Federal funds sold | | | 1,232 | | | | 1,273 | |
Cash and cash equivalents | | | 62,835 | | | | 60,029 | |
Held to maturity debt securities, at amortized cost (fair value of $274,850 and $346,243, respectively) | | | 273,381 | | | | 345,545 | |
Available for sale debt securities, at fair value | | | 54,454 | | | | 72,228 | |
Total investment securities | | | 327,835 | | | | 417,773 | |
Loans receivable, net of allowance for loan losses of $6,216 and $5,664, respectively | | | 1,183,740 | | | | 1,093,121 | |
Accrued interest receivable | | | 4,932 | | | | 4,797 | |
FHLB stock | | | 5,127 | | | | 6,255 | |
Premises and equipment, net | | | 23,438 | | | | 11,802 | |
Deferred tax asset, net | | | 1,956 | | | | 2,478 | |
Foreclosed real estate | | | 279 | | | | 1,158 | |
Bank-owned life insurance | | | 24,562 | | | | 24,291 | |
Goodwill | | | 6,106 | | | | 6,106 | |
Other intangible assets | | | 274 | | | | 323 | |
Other assets | | | 8,083 | | | | 9,446 | |
Total assets | | $ | 1,649,167 | | | $ | 1,637,579 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | |
Interest bearing deposits | | $ | 1,111,396 | | | $ | 1,084,442 | |
Non-interest bearing deposits | | | 140,218 | | | | 141,379 | |
Total deposits | | | 1,251,614 | | | | 1,225,821 | |
Mortgage escrow funds | | | 10,049 | | | | 9,355 | |
Advances from Federal Home Loan Bank | | | 86,153 | | | | 111,216 | |
Other liabilities | | | 21,512 | | | | 9,880 | |
Total liabilities | | | 1,369,328 | | | | 1,356,272 | |
Commitments and contingencies | | | - | | | | - | |
Preferred stock ($0.01 par value, 10,000,000 shares authorized, no shares issued or outstanding as of September 30, 2019 and June 30, 2019, respectively) | | | - | | | | - | |
Common stock ($0.01 par value, 200,000,000 shares authorized, 18,712,295 shares issued as of December 31, 2019 and June 30, 2019, and 17,372,308 and 17,804,039 shares outstanding as of December 31, 2019 and June 30, 2019, respectively) | | | 187 | | | | 187 | |
Additional paid in capital | | | 184,276 | | | | 182,129 | |
Retained earnings | | | 138,373 | | | | 134,500 | |
Unearned compensation - ESOP | | | (11,626 | ) | | | (12,114 | ) |
Accumulated other comprehensive loss, net of income taxes | | | (4,474 | ) | | | (5,090 | ) |
Treasury stock, at cost (1,339,987 and 908,256 shares as of December 31, 2019 and June 30, 2019, respectively) | | | (26,897 | ) | | | (18,305 | ) |
Total shareholders' equity | | | 279,839 | | | | 281,307 | |
Total liabilities and shareholders' equity | | $ | 1,649,167 | | | $ | 1,637,579 | |
PCSB Financial Corporation and Subsidiaries
Consolidated Statements of Operations (unaudited)
(amounts in thousands, except share and per share data)
| | Three Months Ended | | | Six Months Ended | |
| | December 31, | | | December 31, | |
| | 2019 | | | 2018 | | | 2019 | | | 2018 | |
Interest and dividend income | | | | | | | | | | | | | | | | |
Loans receivable | | $ | 13,149 | | | $ | 10,321 | | | $ | 26,185 | | | $ | 20,219 | |
Investment securities | | | 2,279 | | | | 2,428 | | | | 4,971 | | | | 4,794 | |
Federal funds and other | | | 301 | | | | 491 | | | | 599 | | | | 836 | |
Total interest and dividend income | | | 15,729 | | | | 13,240 | | | | 31,755 | | | | 25,849 | |
Interest expense | | | | | | | | | | | | | | | | |
Deposits and escrow interest | | | 3,358 | | | | 2,375 | | | | 6,659 | | | | 4,431 | |
FHLB advances | | | 674 | | | | 121 | | | | 1,401 | | | | 210 | |
Total interest expense | | | 4,032 | | | | 2,496 | | | | 8,060 | | | | 4,641 | |
Net interest income | | | 11,697 | | | | 10,744 | | | | 23,695 | | | | 21,208 | |
Provision for loan losses | | | 412 | | | | 6 | | | | 747 | | | | 64 | |
Net interest income after provision for loan losses | | | 11,285 | | | | 10,738 | | | | 22,948 | | | | 21,144 | |
Noninterest income | | | | | | | | | | | | | | | | |
Fees and service charges | | | 402 | | | | 457 | | | | 804 | | | | 875 | |
Bank-owned life insurance | | | 134 | | | | 139 | | | | 271 | | | | 279 | |
Swap income | | | - | | | | 75 | | | | 170 | | | | 146 | |
Gains on sales of securities, net | | | - | | | | 55 | | | | - | | | | 55 | |
Other | | | 11 | | | | 194 | | | | 67 | | | | 206 | |
Total noninterest income | | | 547 | | | | 920 | | | | 1,312 | | | | 1,561 | |
Noninterest expense | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 5,889 | | | | 5,306 | | | | 11,653 | | | | 10,328 | |
Occupancy and equipment | | | 1,333 | | | | 1,284 | | | | 2,648 | | | | 2,525 | |
Communications and data processing | | | 507 | | | | 482 | | | | 1,038 | | | | 954 | |
Professional fees | | | 379 | | | | 417 | | | | 783 | | | | 786 | |
Postage, printing, stationary and supplies | | | 159 | | | | 178 | | | | 299 | | | | 316 | |
FDIC assessment | | | - | | | | 124 | | | | - | | | | 217 | |
Advertising | | | 100 | | | | 131 | | | | 200 | | | | 218 | |
Amortization of intangible assets | | | 25 | | | | 28 | | | | 49 | | | | 56 | |
Other operating expenses | | | 402 | | | | 630 | | | | 911 | | | | 1,188 | |
Total noninterest expense | | | 8,794 | | | | 8,580 | | | | 17,581 | | | | 16,588 | |
Net income before income tax expense | | | 3,038 | | | | 3,078 | | | | 6,679 | | | | 6,117 | |
Income tax expense | | | 685 | | | | 754 | | | | 1,497 | | | | 1,464 | |
Net income | | $ | 2,353 | | | $ | 2,324 | | | $ | 5,182 | | | $ | 4,653 | |
Earnings per common share: | | | | | | | | | | | | | | | | |
Basic | | $ | 0.15 | | | $ | 0.14 | | | $ | 0.33 | | | $ | 0.28 | |
Diluted | | $ | 0.14 | | | $ | 0.14 | | | $ | 0.32 | | | $ | 0.28 | |
Weighted average common shares outstanding: | | | | | | | | | | | | | | | | |
Basic | | | 15,837,762 | | | | 16,852,718 | | | | 15,908,761 | | | | 16,860,942 | |
Diluted | | | 15,909,855 | | | | 16,868,464 | | | | 15,996,251 | | | | 16,868,815 | |
PCSB Financial Corporation and Subsidiaries
Net Interest Margin Analysis (unaudited)
(dollar amounts in thousands)
| Three Months Ended December 31, | |
| 2019 | | | 2018 | |
| Average Balance | | | Interest / Dividends | | | Average Rate | | | Average Balance | | | Interest / Dividends | | | Average Rate | |
| | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | |
Loans receivable | $ | 1,178,253 | | | $ | 13,149 | | | | 4.46 | % | | $ | 909,368 | | | $ | 10,321 | | | | 4.53 | % |
Investment securities | | 358,760 | | | | 2,279 | | | | 2.54 | | | | 439,919 | | | | 2,428 | | | | 2.21 | |
Other interest-earning assets | | 59,678 | | | | 301 | | | | 2.00 | | | | 86,527 | | | | 491 | | | | 2.25 | |
Total interest-earning assets | | 1,596,691 | | | | 15,729 | | | | 3.94 | | | | 1,435,814 | | | | 13,240 | | | | 3.68 | |
Non-interest-earning assets | | 68,793 | | | | | | | | | | | | 55,135 | | | | | | | | | |
Total assets | $ | 1,665,484 | | | | | | | | | | | $ | 1,490,949 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and equity: | | | | | | | | | | | | | | | | | | | | | | | |
NOW accounts | $ | 122,455 | | | | 67 | | | | 0.22 | | | $ | 116,381 | | | | 52 | | | | 0.18 | |
Money market accounts | | 161,075 | | | | 472 | | | | 1.16 | | | | 100,075 | | | | 280 | | | | 1.11 | |
Savings accounts and escrow | | 355,295 | | | | 234 | | | | 0.26 | | | | 416,687 | | | | 252 | | | | 0.24 | |
Time deposits | | 467,486 | | | | 2,585 | | | | 2.19 | | | | 403,652 | | | | 1,791 | | | | 1.76 | |
Total interest-bearing deposits | | 1,106,311 | | | | 3,358 | | | | 1.20 | | | | 1,036,795 | | | | 2,375 | | | | 0.91 | |
FHLB advances | | 117,712 | | | | 674 | | | | 2.27 | | | | 22,106 | | | | 121 | | | | 2.15 | |
Total interest-bearing liabilities | | 1,224,023 | | | | 4,032 | | | | 1.31 | | | | 1,058,901 | | | | 2,496 | | | | 0.93 | |
Non-interest-bearing deposits | | 138,346 | | | | | | | | | | | | 134,694 | | | | | | | | | |
Other non-interest-bearing liabilities | | 21,827 | | | | | | | | | | | | 6,506 | | | | | | | | | |
Total liabilities | | 1,384,196 | | | | | | | | | | | | 1,200,101 | | | | | | | | | |
Total shareholders' equity | | 281,288 | | | | | | | | | | | | 290,848 | | | | | | | | | |
Total liabilities and shareholders' equity | $ | 1,665,484 | | | | | | | | | | | $ | 1,490,949 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | | $ | 11,697 | | | | | | | | | | | $ | 10,744 | | | | | |
Interest rate spread (1) | | | | | | | | | | 2.63 | | | | | | | | | | | | 2.75 | |
Net interest margin (2) | | | | | | | | | | 2.93 | | | | | | | | | | | | 2.99 | |
Average interest-earning assets to interest-bearing liabilities | | 130.45 | % | | | | | | | | | | | 135.59 | % | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
(1) Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities. | |
(2) Net interest margin represents annualized net interest income divided by average interest-earning assets. | |
PCSB Financial Corporation and Subsidiaries
Net Interest Margin Analysis (unaudited)
(dollar amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | |
| Six Months Ended December 31, | |
| 2019 | | | 2018 | |
| Average Balance | | | Interest / Dividends | | | Average Rate | | | Average Balance | | | Interest / Dividends | | | Average Rate | |
| | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | |
Loans receivable | $ | 1,160,139 | | | $ | 26,185 | | | | 4.51 | % | | $ | 906,194 | | | $ | 20,219 | | | | 4.46 | % |
Investment securities | | 378,975 | | | | 4,971 | | | | 2.62 | | | | 446,795 | | | | 4,794 | | | | 2.15 | |
Other interest-earning assets | | 52,796 | | | | 599 | | | | 2.25 | | | | 76,875 | | | | 836 | | | | 2.16 | |
Total interest-earning assets | | 1,591,910 | | | | 31,755 | | | | 3.99 | | | | 1,429,864 | | | | 25,849 | | | | 3.61 | |
Non-interest-earning assets | | 69,530 | | | | | | | | | | | | 55,193 | | | | | | | | | |
Total assets | $ | 1,661,440 | | | | | | | | | | | $ | 1,485,057 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and equity: | | | | | | | | | | | | | | | | | | | | | | | |
NOW accounts | $ | 121,154 | | | | 124 | | | | 0.20 | | | $ | 117,893 | | | | 105 | | | | 0.18 | |
Money market accounts | | 155,477 | | | | 935 | | | | 1.19 | | | | 80,877 | | | | 419 | | | | 1.03 | |
Savings accounts and escrow | | 358,932 | | | | 466 | | | | 0.26 | | | | 439,615 | | | | 540 | | | | 0.25 | |
Time deposits | | 463,417 | | | | 5,134 | | | | 2.20 | | | | 397,994 | | | | 3,367 | | | | 1.68 | |
Total interest-bearing deposits | | 1,098,980 | | | | 6,659 | | | | 1.20 | | | | 1,036,379 | | | | 4,431 | | | | 0.85 | |
FHLB advances | | 119,784 | | | | 1,401 | | | | 2.32 | | | | 20,463 | | | | 210 | | | | 2.03 | |
Total interest-bearing liabilities | | 1,218,764 | | | | 8,060 | | | | 1.32 | | | | 1,056,842 | | | | 4,641 | | | | 0.87 | |
Non-interest-bearing deposits | | 139,486 | | | | | | | | | | | | 131,228 | | | | | | | | | |
Other non-interest-bearing liabilities | | 21,519 | | | | | | | | | | | | 6,894 | | | | | | | | | |
Total liabilities | | 1,379,769 | | | | | | | | | | | | 1,194,964 | | | | | | | | | |
Total shareholders' equity | | 281,671 | | | | | | | | | | | | 290,093 | | | | | | | | | |
Total liabilities and shareholders' equity | $ | 1,661,440 | | | | | | | | | | | $ | 1,485,057 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | | $ | 23,695 | | | | | | | | | | | $ | 21,208 | | | | | |
Interest rate spread (1) | | | | | | | | | | 2.67 | | | | | | | | | | | | 2.74 | |
Net interest margin (2) | | | | | | | | | | 2.98 | | | | | | | | | | | | 2.97 | |
Average interest-earning assets to interest-bearing liabilities | | 130.62 | % | | | | | | | | | | | 135.30 | % | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
(1) Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities. | |
(2) Net interest margin represents annualized net interest income divided by average interest-earning assets. | |
PCSB Financial Corporation and Subsidiaries
Condensed Financial Information (unaudited)
(amounts in thousands, except per share data)
| | | | | | | | | | | | | | | |
| As of | |
| December 31, 2019 | | September 30, 2019 | | June 30, 2019 | | March 31, 2019 | | December 31, 2018 | |
Condensed Balance Sheets | | | | | | | | | | | | | |
Cash and cash equivalents | $ | 62,835 | | $ | 37,797 | | $ | 60,029 | | $ | 87,105 | | $ | 143,119 | |
Total investment securities | | 327,835 | | | 379,007 | | | 417,773 | | | 440,014 | | | 452,463 | |
Loans receivable, net | | 1,183,740 | | | 1,163,254 | | | 1,093,121 | | | 935,680 | | | 904,377 | |
Other assets | | 74,757 | | | 78,550 | | | 66,656 | | | 60,959 | | | 57,356 | |
Total assets | $ | 1,649,167 | | $ | 1,658,608 | | $ | 1,637,579 | | $ | 1,523,758 | | $ | 1,557,315 | |
| | | | | | | | | | | | | | | |
Total deposits and escrow | $ | 1,261,663 | | $ | 1,241,458 | | $ | 1,235,176 | | $ | 1,209,868 | | $ | 1,234,409 | |
Advances from Federal Home Loan Bank | | 86,153 | | | 111,185 | | | 111,216 | | | 26,248 | | | 26,279 | |
Other liabilities | | 21,512 | | | 24,443 | | | 9,880 | | | 9,326 | | | 7,845 | |
Total liabilities | | 1,369,328 | | | 1,377,086 | | | 1,356,272 | | | 1,245,442 | | | 1,268,533 | |
Total shareholders' equity | | 279,839 | | | 281,522 | | | 281,307 | | | 278,316 | | | 288,782 | |
Total liabilities and shareholders' equity | $ | 1,649,167 | | $ | 1,658,608 | | $ | 1,637,579 | | $ | 1,523,758 | | $ | 1,557,315 | |
| | | | | | | | | | | | | | | |
| Quarter Ended | | Six Months Ended | |
| December 31, 2019 | | September 30, 2019 | | June 30, 2019 | | March 31, 2019 | | December 31, 2018 | | December 31, 2019 | | December 31, 2018 | |
Condensed Income Statements | | | | | | | | | | | | | | | | | | | |
Interest income | $ | 15,729 | | $ | 16,026 | | $ | 13,952 | | $ | 13,646 | | $ | 13,240 | | $ | 31,755 | | $ | 25,849 | |
Interest expense | | 4,032 | | | 4,028 | | | 3,193 | | | 2,909 | | | 2,496 | | | 8,060 | | | 4,641 | |
Net interest income | | 11,697 | | | 11,998 | | | 10,759 | | | 10,737 | | | 10,744 | | | 23,695 | | | 21,208 | |
Provision for loan losses | | 412 | | | 335 | | | 737 | | | 7 | | | 6 | | | 747 | | | 64 | |
Noninterest income | | 547 | | | 765 | | | 962 | | | 579 | | | 920 | | | 1,312 | | | 1,561 | |
Noninterest expense | | 8,794 | | | 8,787 | | | 8,708 | | | 8,698 | | | 8,580 | | | 17,581 | | | 16,588 | |
Income before income tax expense | | 3,038 | | | 3,641 | | | 2,276 | | | 2,611 | | | 3,078 | | | 6,679 | | | 6,117 | |
Income tax expense | | 685 | | | 812 | | | 597 | | | 625 | | | 754 | | | 1,497 | | | 1,464 | |
Net income | $ | 2,353 | | $ | 2,829 | | $ | 1,679 | | $ | 1,986 | | $ | 2,324 | | $ | 5,182 | | $ | 4,653 | |
| | | | | | | | | | | | | | | | | | | | | |
Earnings per share: | | | | | | | | | | | | | | | | | | | | | |
Basic | $ | 0.15 | | $ | 0.18 | | $ | 0.10 | | $ | 0.12 | | $ | 0.14 | | $ | 0.33 | | $ | 0.28 | |
Diluted | $ | 0.14 | | $ | 0.18 | | $ | 0.10 | | $ | 0.12 | | $ | 0.14 | | $ | 0.32 | | $ | 0.28 | |
PCSB Financial Corporation and Subsidiaries
Selected Financial Data (unaudited)
| Quarter Ended | | Six Months Ended | |
| December 31, 2019 | | September 30, 2019 | | June 30, 2019 | | March 31, 2019 | | December 31, 2018 | | December 31, 2019 | | December 31, 2018 | |
Performance Ratios (1): | | | | | | | | | | | | | | | | | | | |
Return on average assets | | 0.57 | % | | 0.68 | % | | 0.44 | % | | 0.52 | % | | 0.62 | % | | 0.62 | % | | 0.63 | % |
Return on average equity | | 3.35 | % | | 4.01 | % | | 2.40 | % | | 2.83 | % | | 3.20 | % | | 3.68 | % | | 3.21 | % |
Interest rate spread | | 2.63 | % | | 2.72 | % | | 2.65 | % | | 2.67 | % | | 2.75 | % | | 2.67 | % | | 2.74 | % |
Net interest margin | | 2.93 | % | | 3.03 | % | | 2.94 | % | | 2.94 | % | | 2.99 | % | | 2.98 | % | | 2.97 | % |
Adjusted Efficiency ratio (2) | | 72.55 | % | | 71.80 | % | | 74.55 | % | | 77.04 | % | | 74.90 | % | | 72.17 | % | | 73.81 | % |
| | | | | | | | | | | | | | | | | | | | | |
Noninterest income to average assets | | 0.13 | % | | 0.18 | % | | 0.25 | % | | 0.15 | % | | 0.25 | % | | 0.16 | % | | 0.21 | % |
Noninterest expense to average assets | | 2.11 | % | | 2.12 | % | | 2.29 | % | | 2.29 | % | | 2.30 | % | | 2.12 | % | | 2.23 | % |
| | | | | | | | | | | | | | | | | | | | | |
Average interest-earning assets to average interest-bearing liabilities | | 130.45 | % | | 130.79 | % | | 132.96 | % | | 133.68 | % | | 135.59 | % | | 130.62 | % | | 135.30 | % |
Average equity to average assets | | 16.89 | % | | 17.02 | % | | 18.40 | % | | 18.52 | % | | 19.51 | % | | 16.95 | % | | 19.53 | % |
Dividend payout ratio (3) | | 27.62 | % | | 23.29 | % | | 39.43 | % | | 24.97 | % | | 22.42 | % | | 25.26 | % | | 22.03 | % |
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 | |
| December 31, 2019 | | September 30, 2019 | | June 30, 2019 | | March 31, 2019 | | December 31, 2018 | |
Loans to deposits | | 94.58 | % | | 94.27 | % | | 89.17 | % | | 77.83 | % | | 73.81 | % |
| | | | | | | | | | | | | | | |
Share Data: | | | | | | | | | | | | | | | |
Shares outstanding | | 17,372,308 | | | 17,624,239 | | | 17,804,039 | | | 17,804,039 | | | 18,490,225 | |
Book value per common share | $ | 16.11 | | $ | 15.97 | | $ | 15.80 | | $ | 15.63 | | $ | 15.62 | |
Tangible book value per common share (4) | $ | 15.74 | | $ | 15.61 | | $ | 15.44 | | $ | 15.27 | | $ | 15.27 | |
| | | | | | | | | | | | | | | |
Asset Quality Ratios: | | | | | | | | | | | | | | | |
Non-performing loans receivable | $ | 1,618 | | $ | 3,425 | | $ | 2,727 | | $ | 2,847 | | $ | 3,576 | |
Non-performing assets | $ | 1,897 | | $ | 4,281 | | $ | 3,885 | | $ | 3,500 | | $ | 4,148 | |
Allowance for loan losses as a percent of total loans receivable | | 0.52 | % | | 0.51 | % | | 0.52 | % | | 0.53 | % | | 0.54 | % |
Total valuation adjustment as a percent of total gross loans receivable (5) | | 0.59 | % | | 0.60 | % | | 0.62 | % | | 0.66 | % | | 0.69 | % |
Allowance for loan losses as a percent of non-performing loans receivable | | 384.18 | % | | 174.98 | % | | 207.70 | % | | 173.67 | % | | 138.23 | % |
Non-performing loans as a percent of total loans receivable, net | | 0.14 | % | | 0.29 | % | | 0.25 | % | | 0.30 | % | | 0.39 | % |
Non-performing assets as a percent of total assets | | 0.12 | % | | 0.26 | % | | 0.24 | % | | 0.23 | % | | 0.27 | % |
| | | | | | | | | | | | | | | |
Net charge-offs | $ | 189 | | $ | 6 | | $ | 18 | | $ | 5 | | $ | 22 | |
Net charge-offs to average outstanding loans during the period (1) | | 0.06 | % | | 0.00 | % | | 0.01 | % | | 0.00 | % | | 0.01 | % |
| | | | | | | | | | | | | | | |
Capital Ratios (6): | | | | | | | | | | | | | | | |
Tier 1 capital (to adjusted total assets) | | 13.00 | % | | 12.89 | % | | 13.81 | % | | 13.71 | % | | 13.78 | % |
Common equity Tier 1 capital (to risk-weighted assets) | | 17.24 | % | | 17.16 | % | | 17.96 | % | | 20.47 | % | | 20.73 | % |
Tier 1 capital (to risk-weighted assets) | | 17.24 | % | | 17.16 | % | | 17.96 | % | | 20.47 | % | | 20.73 | % |
Total capital (to risk-weighted assets) | | 17.74 | % | | 17.64 | % | | 18.45 | % | | 20.96 | % | | 21.23 | % |
| | | | | | | | | | | | | | | |
(1) Performance ratios 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. | |
PCSB Financial Corporation and Subsidiaries
Selected Financial Data (unaudited) - Continued
(dollar amounts in thousands)
(5) Loans acquired in 2015 as part of the CMS Bancorp. Inc./CMS Bank acquisition were recorded at their estimated fair value at the acquisition date and did not include a carry-over of the related pre-acquisition allowance for loan losses. Total valuation adjustments equal the allowance for loan losses plus the remaining discounts on acquired loans. We believe this ratio provides investors a more meaningful comparison to periods presented prior to the 2015 acquisition, as well as to our peers. Reconciliations of GAAP to non-GAAP measures appear at the end of this release. |
(6) Represents Bank ratios. |
PCSB Financial Corporation and Subsidiaries
Loan and Deposit Portfolios (unaudited)
(amounts in thousands)
| As of | |
| December 31, 2019 | | September 30, 2019 | | June 30, 2019 | | March 31, 2019 | | December 31, 2018 | |
Mortgage loans: | | | | | | | | | | | | | | | |
Residential mortgages | $ | 262,441 | | $ | 264,251 | | $ | 265,167 | | $ | 261,970 | | $ | 248,575 | |
Commercial mortgage | | 741,171 | | | 726,315 | | | 651,396 | | | 499,284 | | | 499,930 | |
Construction | | 22,787 | | | 18,830 | | | 13,231 | | | 16,302 | | | 16,023 | |
Net deferred loan origination costs | | 1,054 | | | 1,202 | | | 1,031 | | | 843 | | | 842 | |
Total mortgage loans | | 1,027,453 | | | 1,010,598 | | | 930,825 | | | 778,399 | | | 765,370 | |
Commercial and consumer loans: | | | | | | | | | | | | | | | |
Commercial loans | | 129,809 | | | 125,926 | | | 133,614 | | | 126,514 | | | 107,899 | |
Home equity credit lines | | 31,460 | | | 31,503 | | | 33,204 | | | 34,525 | | | 35,029 | |
Consumer and overdrafts | | 436 | | | 437 | | | 365 | | | 459 | | | 321 | |
Net deferred loan origination costs | | 798 | | | 783 | | | 777 | | | 728 | | | 701 | |
Total commercial and consumer loans | | 162,503 | | | 158,649 | | | 167,960 | | | 162,226 | | | 143,950 | |
Total loans receivable | | 1,189,956 | | | 1,169,247 | | | 1,098,785 | | | 940,625 | | | 909,320 | |
Allowance for loan losses | | (6,216 | ) | | (5,993 | ) | | (5,664 | ) | | (4,945 | ) | | (4,943 | ) |
Loans receivable, net | $ | 1,183,740 | | $ | 1,163,254 | | $ | 1,093,121 | | $ | 935,680 | | $ | 904,377 | |
| | | | | | | | | | | | | | | |
| As of | |
| December 31, 2019 | | September 30, 2019 | | June 30, 2019 | | March 31, 2019 | | December 31, 2018 | |
Demand deposits | $ | 140,218 | | $ | 141,567 | | $ | 141,379 | | $ | 137,899 | | $ | 162,113 | |
NOW accounts | | 126,346 | | | 124,062 | | | 123,069 | | | 120,353 | | | 123,251 | |
Money market accounts | | 162,208 | | | 151,652 | | | 148,134 | | | 137,197 | | | 121,146 | |
Savings | | 354,078 | | | 350,250 | | | 357,844 | | | 379,550 | | | 397,460 | |
Time deposits | | 468,764 | | | 466,374 | | | 455,395 | | | 427,194 | | | 421,354 | |
Total deposits | $ | 1,251,614 | | $ | 1,233,905 | | $ | 1,225,821 | | $ | 1,202,193 | | $ | 1,225,324 | |
| | | | | | | | | | | | | | | |
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 | | Six Months Ended | |
| December 31, 2019 | | September 30, 2019 | | June 30, 2019 | | March 31, 2019 | | December 31, 2018 | | December 31, 2019 | | December 31, 2018 | |
Computation of Adjusted Net Income and Adjusted Earnings Per Share | | | | | | | |
Net income applicable to common stock (GAAP) | $ | 2,353 | | $ | 2,829 | | $ | 1,679 | | $ | 1,986 | | $ | 2,324 | | $ | 5,182 | | $ | 4,653 | |
| | | | | | | | | | | | | | | | | | | | | |
Adjustments (1): | | | | | | | | | | | | | | | | | | | | | |
Losses on other receivables | | - | | | - | | | - | | | - | | | 68 | | | - | | | 68 | |
Prepayment income on loans receivable and investment securities | | (95 | ) | | (371 | ) | | (25 | ) | | (20 | ) | | (72 | ) | | (466 | ) | | (140 | ) |
Gain on sale of foreclosed real estate | | - | | | (37 | ) | | - | | | - | | | (18 | ) | | (37 | ) | | (18 | ) |
Gain on sale of investment securities | | - | | | - | | | (5 | ) | | - | | | (42 | ) | | - | | | (42 | ) |
Gain on sale of bank premises | | - | | | - | | | - | | | - | | | (118 | ) | | - | | | (118 | ) |
Adjusted net income (Non-GAAP) | $ | 2,258 | | $ | 2,421 | | $ | 1,649 | | $ | 1,966 | | $ | 2,142 | | $ | 4,679 | | $ | 4,403 | |
| | | | | | | | | | | | | | | | | | | | | |
Average number of common shares outstanding: | | | | | | | | | | | | | |
Basic | | 15,837,762 | | | 15,979,762 | | | 16,033,505 | | | 16,204,393 | | | 16,852,718 | | | 15,908,761 | | | 16,860,942 | |
Diluted | | 15,909,855 | | | 16,082,276 | | | 16,099,846 | | | 16,261,755 | | | 16,868,464 | | | 15,996,251 | | | 16,868,815 | |
Earnings per share (GAAP): | | | | | | | | | | | | | | | | | | | | | |
Basic | $ | 0.15 | | $ | 0.18 | | $ | 0.10 | | $ | 0.12 | | $ | 0.14 | | $ | 0.33 | | $ | 0.28 | |
Diluted | $ | 0.14 | | $ | 0.18 | | $ | 0.10 | | $ | 0.12 | | $ | 0.14 | | $ | 0.32 | | $ | 0.28 | |
Adjusted earnings per common share (Non-GAAP): | | | | | | | | | | | | | |
Basic | $ | 0.14 | | $ | 0.15 | | $ | 0.10 | | $ | 0.12 | | $ | 0.13 | | $ | 0.29 | | $ | 0.26 | |
Diluted | $ | 0.14 | | $ | 0.15 | | $ | 0.10 | | $ | 0.12 | | $ | 0.13 | | $ | 0.29 | | $ | 0.26 | |
| | | | | | | | | | | | | | | | | | | | | |
(1) Amounts included in income before income tax expense are presented net of tax. | | | | | | | |
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 | | Six months ended | |
| December 31, 2019 | | September 30, 2019 | | December 31, 2018 | | December 31, 2019 | | December 31, 2018 | |
Computation of Adjusted Yield on Assets and Adjusted Net Interest Margin | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Average interest-earning assets | $ | 1,596,691 | | $ | 1,587,129 | | $ | 1,435,814 | | $ | 1,591,910 | | $ | 1,429,864 | |
| | | | | | | | | | | | | | | |
Interest and dividend income (GAAP) | $ | 15,729 | | $ | 16,026 | | $ | 13,240 | | $ | 31,755 | | $ | 25,849 | |
Less: Prepayment income on loans receivable and investment securities | | (123 | ) | | (477 | ) | | (95 | ) | | (600 | ) | | (184 | ) |
Adjusted interest and dividend income (Non-GAAP) | $ | 15,606 | | $ | 15,549 | | $ | 13,145 | | $ | 31,155 | | $ | 25,665 | |
Adjusted yield on interest-earning assets (Non-GAAP) | | 3.91 | % | | 3.92 | % | | 3.66 | % | | 3.91 | % | | 3.59 | % |
| | | | | | | | | | | | | | | |
Net interest income (GAAP) | $ | 11,697 | | $ | 11,998 | | $ | 10,744 | | $ | 23,695 | | $ | 21,208 | |
Less: Prepayment income on loans receivable and investment securities | | (123 | ) | | (477 | ) | | (95 | ) | | (600 | ) | | (184 | ) |
Adjusted net interest income (Non-GAAP) | $ | 11,574 | | $ | 11,521 | | $ | 10,649 | | $ | 23,095 | | $ | 21,024 | |
Adjusted net interest margin (Non-GAAP) | | 2.90 | % | | 2.90 | % | | 2.97 | % | | 2.90 | % | | 2.94 | % |
| | | | | | | | | | | | | | | |
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 | | Six Months Ended | |
| December 31, 2019 | | September 30, 2019 | | June 30, 2019 | | March 31, 2019 | | December 31, 2018 | | December 31, 2019 | | December 31, 2018 | |
Computation of Efficiency Ratio | | | | | | | | | | |
Noninterest expense (GAAP) | $ | 8,794 | | $ | 8,787 | | $ | 8,708 | | $ | 8,698 | | $ | 8,580 | | $ | 17,581 | | $ | 16,588 | |
Adjustments: | | | | | | | | | | | | | | | | | | | | | |
Losses on other receivables | | - | | | - | | | - | | | - | | | (90 | ) | | - | | | (90 | ) |
Adjusted noninterest expense (non-GAAP) | $ | 8,794 | | $ | 8,787 | | $ | 8,708 | | $ | 8,698 | | $ | 8,490 | | $ | 17,581 | | $ | 16,498 | |
| | | | | | | | | | | | | | | | | | | | | |
Net interest income | $ | 11,697 | | $ | 11,998 | | $ | 10,759 | | $ | 10,737 | | $ | 10,744 | | $ | 23,695 | | $ | 21,208 | |
Noninterest income | | 547 | | | 765 | | | 962 | | | 579 | | | 920 | | | 1,312 | | | 1,561 | |
Total (GAAP) | | 12,244 | | | 12,763 | | | 11,721 | | | 11,316 | | | 11,664 | | | 25,007 | | | 22,769 | |
Adjustments: | | | | | | | | | | | | | | | | | | | | | |
Prepayment income on loans receivable and investment securities | | (123 | ) | | (477 | ) | | (34 | ) | | (26 | ) | | (95 | ) | | (600 | ) | | (184 | ) |
Gain on sale of foreclosed real estate | | - | | | (47 | ) | | - | | | - | | | (24 | ) | | (47 | ) | | (24 | ) |
Gain on sale of investment securities | | - | | | - | | | (7 | ) | | - | | | (55 | ) | | - | | | (55 | ) |
Gain on sale of bank premises | | - | | | - | | | - | | | - | | | (155 | ) | | - | | | (155 | ) |
Adjusted total (Non-GAAP) | $ | 12,121 | | $ | 12,239 | | $ | 11,680 | | $ | 11,290 | | $ | 11,335 | | $ | 24,360 | | $ | 22,351 | |
| | | | | | | | | | | | | | | | | | | | | |
Efficiency ratio (GAAP) | | 71.82 | % | | 68.85 | % | | 74.29 | % | | 76.86 | % | | 73.56 | % | | 70.30 | % | | 72.85 | % |
Adjusted efficiency ratio (Non-GAAP) | | 72.55 | % | | 71.80 | % | | 74.55 | % | | 77.04 | % | | 74.90 | % | | 72.17 | % | | 73.81 | % |
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 | |
| December 31, 2019 | | September 30, 2019 | | June 30, 2019 | | March 31, 2019 | | December 31, 2018 | |
Computation of Tangible Book Value per Common Share | | | | |
Total shareholders' equity (GAAP) | $ | 279,839 | | $ | 281,522 | | $ | 281,307 | | $ | 278,316 | | $ | 288,782 | |
Adjustments: | | | | | | | | | | | | | | | |
Preferred stock | | - | | | - | | | - | | | - | | | - | |
Common shareholders' equity | | 279,839 | | | 281,522 | | | 281,307 | | | 278,316 | | | 288,782 | |
Adjustments: | | | | | | | | | | | | | | | |
Goodwill | | (6,106 | ) | | (6,106 | ) | | (6,106 | ) | | (6,106 | ) | | (6,106 | ) |
Other intangible assets | | (274 | ) | | (298 | ) | | (323 | ) | | (348 | ) | | (376 | ) |
Tangible common shareholders' equity (Non-GAAP) | $ | 273,459 | | $ | 275,118 | | $ | 274,878 | | $ | 271,862 | | $ | 282,300 | |
| | | | | | | | | | | | | | | |
Common shares outstanding | | 17,372,308 | | | 17,624,239 | | | 17,804,039 | | | 17,804,039 | | | 18,490,225 | |
| | | | | | | | | | | | | | | |
Book value per share (GAAP) | $ | 16.11 | | $ | 15.97 | | $ | 15.80 | | $ | 15.63 | | $ | 15.62 | |
Adjustments: | | | | | | | | | | | | | | | |
Effects of intangible assets | | (0.37 | ) | | (0.36 | ) | | (0.36 | ) | | (0.36 | ) | | (0.35 | ) |
| | | | | | | | | | | | | | | |
Tangible book value per common share (Non-GAAP) | $ | 15.74 | | $ | 15.61 | | $ | 15.44 | | $ | 15.27 | | $ | 15.27 | |
| Quarter Ended | |
| December 31, 2019 | | September 30, 2019 | | June 30, 2019 | | March 31, 2019 | | December 31, 2018 | |
Computation of valuation adjustment | | | | | | | | | | |
Allowance for loan losses | $ | 6,216 | | $ | 5,993 | | $ | 5,664 | | $ | 4,945 | | $ | 4,943 | |
Add: Purchase accounting discounts on acquired loans | | 837 | | | 983 | | | 1,180 | | | 1,262 | | | 1,349 | |
Total valuation adjustments | $ | 7,053 | | $ | 6,976 | | $ | 6,844 | | $ | 6,207 | | $ | 6,292 | |
Total gross loans | $ | 1,189,956 | | $ | 1,169,247 | | $ | 1,098,785 | | $ | 940,625 | | $ | 909,320 | |
Total valuation adjustments as a percent of total gross loans | | 0.59 | % | | 0.60 | % | | 0.62 | % | | 0.66 | % | | 0.69 | % |
