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Press Release

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

Company Release - 10/25/2018 8:30 AM ET

YORKTOWN HEIGHTS, New York, Oct. 25, 2018 (GLOBE NEWSWIRE) -- PCSB Financial Corporation (the “Company”) (NASDAQ: PCSB), parent of PCSB Bank (the "Bank"), today announced net income of $2.3 million, or $0.14 per basic and diluted share, for the three months ended September 30, 2018 compared to $2.7 million, or $0.16 per basic and diluted share, for the three months ended June 30, 2018 and $1.8 million, or $0.10 per basic and diluted share, for the three months ended September 30, 2017.

On a non-GAAP basis, which excludes certain nonrecurring items, the Company recorded net income of $2.3 million, or $0.14 per diluted share for the three months ended September 30, 2018 as compared to net income of $2.2 million, or $0.13 per diluted share for the three months ended June 30, 2018 and $1.6 million, or $0.10 per basic and diluted share, for the three months ended September 30, 2017. Reconciliations of GAAP to non-GAAP measures appear at the end of this release.

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 proud of the Company’s results for the first quarter of our fiscal year and the achievements we have made as we begin our second full year as a public company. Some of these achievements include year-over-year increases in interest income of 11.6%, net income of 32.6% and earnings per common share basic and diluted of 40.0%. The current quarter also showed a continued decline in problem assets as the ratio of non-performing assets to total assets decreased slightly to 0.43% from 0.44% for the June quarter and decreased by more than half from 0.88% a year ago. As we move forward in our second year as a public company, we will work to continue to build on these positive trends as we strive to create value for our shareholders.”

Income Statement Summary
Net interest income increased $588,000, or 6.0%, to $10.5 million for the three months ended September 30, 2018, compared to the same period in 2017 and decreased $968,000 or 8.5% from the previous quarter.  The increase in net interest income compared to the prior year is a result of a $55.4 million increase in average interest earning assets and a five basis point increase in the net interest margin. The increase in interest earning assets is primarily due to loan portfolio growth, partially offset by a decrease in investment securities. The net interest margin was 2.94% for the three months ended September 30, 2018, an increase from 2.89% for the three months ended September 30, 2017. The decrease in net interest income compared to the prior quarter is primarily due to the recording of $879,000 of interest income from the pay-off of two nonaccrual loans. Excluding this interest income, the net interest margin for the June quarter would have been 2.98%, compared to 2.94% in the current quarter. This four basis point decrease was primarily due to an eight basis point increase in the average rate paid on total average interest bearing liabilities.

The provision for loan losses was $58,000 for the three months ended September 30, 2018 compared to $25,000 in the prior quarter and $135,000 for the same period in 2017. Charge-offs, net of recoveries, were $3,000 for the three months ended September 30, 2018 compared to net recoveries of $255,000 for the three months ended June 30, 2018 and net charge-offs of $17,000 for the three months ended September 30, 2017.  Loans classified as substandard and doubtful decreased $2.4 million, or 15.2%, to $13.0 million at September 30, 2018 from $15.4 million at June 30, 2018 and decreased $11.6 million, or 46.9%, from $24.6 million at September 30, 2017. Non-performing loans as a percent of total loans receivable was 0.62% of total loans receivable as of September 30, 2018, a decrease from 0.66% as of June 30, 2018 and 1.35% as of September 30, 2017.

Noninterest income decreased $73,000 to $641,000 for the three months ended September 30, 2018 compared to the same period in 2017, primarily due to $173,000 of gains on the sale of securities recorded in the prior year period, partially offset by $71,000 of swap fee income recorded in the current quarter. Noninterest income increased $40,000 from the three months ended June 30, 2018, primarily due to increased swap and deposit-related fee income, partially offset by $63,000 of gains on the sale of securities realized in the prior quarter.

Noninterest expense increased $114,000 to $8.0 million for the three months ended September 30, 2018 compared to the same period in 2017 and decreased $256,000 compared to the three months ended June 30, 2018. The $114,000 increase from 2017 was caused primarily by a $280,000 increase in salaries and employee benefits, partially offset by decreases in advertising and occupancy expenses and professional fees. The increase in salaries and employee benefits was primarily due to additional staffing, partially offset by lower retirement and medical benefits costs. The $256,000 decrease in noninterest expense from the three months ended June 30, 2018 was primarily due to a $370,000 loss recorded on a receivable in the prior quarter as well as decreases in professional fees, communications and data processing expense, and occupancy expense. These decreases were partially offset by a $251,000 increase in salaries and benefits expense driven primarily by additional staffing and increased medical benefits costs, and an $87,000 increase in advertising costs.                                                                                        

The effective income tax rate was 23.4% for the three months ended September 30, 2018, as compared to 31.4% for the three months ended September 30, 2017 and 28.7% for the three months ended June 30, 2018. In the three months ended September 30, 2018, the Company began to realize the full benefits of the reduction in the corporate income tax rate which became effective in January 2018.

Balance Sheet Summary
Total assets decreased $5.7 million to $1.47 billion at September 30, 2018 from $1.48 billion at June 30, 2018.  This decrease was primarily due to a decrease of $16.9 million, or 3.7%, in total investment securities, partially offset by increases of $6.2 million in cash and cash equivalents and $2.8 million in loans receivable. The $2.8 million increase in loans was the result of $33.2 million of originations, partially offset by $30.4 million of net amortization on the remaining portfolio, highlighted by the prepayment of two commercial mortgage loans totaling $10.2 million.

Total liabilities decreased $8.0 million to $1.18 billion at September 30, 2018 from $1.19 billion at June 30, 2018.  This decrease was primarily due to decreases of $4.3 million in total deposits and $3.8 million in mortgage escrow funds driven primarily by expected seasonal outflows related to school and property tax payments.

Total shareholders’ equity increased $2.3 million to $289.9 million at September 30, 2018 from $287.6 million at June 30, 2018.  This increase was primarily due to net income of $2.3 million and a $493,000 reduction in unearned ESOP shares for plan shares earned during the period, partially offset by $505,000 of cash dividends paid.  At September 30, 2018, the Company’s book value per share and tangible book value per share were $15.96 and $15.60, respectively, compared to $15.83 and $15.47, respectively, at June 30, 2018.  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 September 30, 2018, the Bank was considered “well capitalized” under applicable regulatory guidelines.

Dividend
The Board of Directors declared a regular quarterly cash dividend of $0.03 per share. The dividend is payable on or about November 30, 2018 to stockholders of record on November 16, 2018.

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 stock savings bank and 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 data)
       
  September 30,  June 30, 
  2018  2018 
         
ASSETS        
Cash and due from banks $66,039  $60,684 
Federal funds sold  2,284   1,461 
Cash and cash equivalents  68,323   62,145 
Held to maturity debt securities, at amortized cost
  (fair value of $328,962 and $343,188, respectively)
  340,208   353,183 
Available for sale debt securities, at fair value  101,540   105,472 
Total investment securities  441,748   458,655 
Loans receivable, net of allowance for loan losses of $4,959 and $4,904, respectively  905,093   902,336 
Accrued interest receivable  4,747   4,358 
Federal Home Loan Bank stock  2,049   2,050 
Premises and equipment, net  11,546   11,598 
Deferred tax asset, net  2,495   2,622 
Foreclosed real estate  754   460 
Bank-owned life insurance  23,887   23,747 
Goodwill  6,106   6,106 
Other intangible assets  405   433 
Other assets  7,342   5,677 
Total assets $1,474,495  $1,480,187 
LIABILITIES AND SHAREHOLDERS' EQUITY        
Interest bearing deposits $1,022,096  $1,025,574 
Non-interest bearing deposits  131,025   131,883 
Total deposits  1,153,121   1,157,457 
Mortgage escrow funds  4,981   8,803 
Advances from Federal Home Loan Bank  18,810   18,841 
Other liabilities  7,706   7,527 
Total liabilities  1,184,618   1,192,628 
Commitments and contingencies  -   - 
Preferred stock ($0.01 par value, 10,000,000 shares authorized, no shares issued or outstanding as of September 30, 2018 and June 30, 2018, respectively)  -   - 
Common stock ($0.01 par value, 200,000,000 shares authorized, 18,165,110 shares issued and outstanding as of September 30, 2018 and June 30, 2018, respectively)  182   182 
Additional paid in capital  179,294   179,045 
Retained earnings  130,189   128,365 
Unearned compensation - ESOP  (12,839)  (13,083)
Accumulated other comprehensive loss, net of income taxes  (6,949)  (6,950)
Total shareholders' equity  289,877   287,559 
Total liabilities and shareholders' equity $1,474,495  $1,480,187 
         


    
PCSB Financial Corporation and Subsidiaries
Consolidated Statements of Operations (unaudited)
(amounts in thousands, except share and per share data)
    
  Three Months Ended 
  September 30, 
  2018  2017 
Interest and dividend income        
Loans receivable $9,898  $8,818 
Investment securities  2,366   2,245 
Federal funds and other  345   234 
Total interest and dividend income  12,609   11,297 
Interest expense        
Deposits  2,056   1,267 
FHLB advances  89   154 
Total interest expense  2,145   1,421 
Net interest income  10,464   9,876 
Provision for loan losses  58   135 
Net interest income after provision for loan losses  10,406   9,741 
Noninterest income        
Fees and service charges  418   381 
Bank-owned life insurance  140   149 
Gains on sales of securities, net  -   173 
Other  83   11 
Total noninterest income  641   714 
Noninterest expense        
Salaries and employee benefits  5,140   4,860 
Occupancy and equipment  1,241   1,282 
Communications and data processing  472   491 
Professional fees  369   413 
Postage, printing, stationary and supplies  138   132 
FDIC assessment  93   78 
Advertising  87   165 
Amortization of intangible assets  28   32 
Other operating expenses  440   441 
Total noninterest expense  8,008   7,894 
Net income before income tax expense  3,039   2,561 
Income tax expense  710   805 
Net income $2,329  $1,756 
Earnings per common share:        
Basic $0.14  $0.10 
Diluted $0.14  $0.10 
         
Weighted average common share - basic and diluted  16,869,100   16,756,447 
         


                        
PCSB Financial Corporation and Subsidiaries
Net Interest Margin Analysis (unaudited)
(dollar amounts in thousands)
                        
 Three Months Ended September 30, 
 2018  2017 
 Average Balance  Interest / Dividends  Average Rate  Average Balance  Interest / Dividends  Average Rate 
Assets:                       
Loans receivable$903,021  $9,898   4.38% $813,244  $8,818   4.33%
Investment securities 453,671   2,366   2.09   486,026   2,245   1.85 
Other interest-earning assets 67,222   345   2.03   69,257   234   1.34 
Total interest-earning assets 1,423,914   12,609   3.54   1,368,527   11,297   3.30 
Non-interest-earning assets 49,894           58,241         
Total assets$1,473,808          $1,426,768         
                        
Liabilities and equity:                       
NOW accounts$119,404   53   0.18  $114,770   49   0.17 
Money market accounts 58,704   139   0.94   30,100   21   0.28 
Savings accounts and escrow 462,542   289   0.25   518,315   325   0.25 
Time deposits 392,336   1,575   1.59   298,010   872   1.16 
Total interest-bearing deposits 1,032,986   2,056   0.79   961,195   1,267   0.52 
Federal Home Loan Bank advances 18,821   89   1.89   41,398   154   1.48 
Total interest-bearing liabilities 1,051,807   2,145   0.81   1,002,593   1,421   0.56 
Non-interest-bearing deposits 125,381           134,368         
Other non-interest-bearing liabilities 7,281           8,287         
Total liabilities 1,184,469           1,145,248         
Total shareholders' equity 289,339           281,520         
Total liabilities and shareholders' equity$1,473,808          $1,426,768         
                        
                        
Net interest income    $10,464          $9,876     
Interest rate spread (1)         2.73           2.74 
Net interest margin (2)         2.94           2.89 
Average interest-earning assets to interest-bearing liabilities 135.38%          136.50%        
                        
(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 
 September 30, 
2018
 June 30,
2018
 March 31,
2018
 December 31,
2017
 September 30,
2017
 
Condensed Balance Sheets               
Cash and cash equivalents$68,323 $62,145 $36,505 $77,106 $34,733 
Total investment securities 441,748  458,655  473,651  470,328  475,791 
Loans receivable, net 905,093  902,336  886,718  838,120  839,963 
Other assets 59,331  57,051  60,095  57,714  61,219 
Total assets$1,474,495 $1,480,187 $1,456,969 $1,443,268 $1,411,706 
                
Total deposits and escrow$1,158,102 $1,166,260 $1,095,581 $1,122,558 $1,086,662 
Advances from Federal Home Loan Bank 18,810  18,841  68,872  30,720  35,750 
Other liabilities 7,706  7,527  7,856  7,579  7,209 
Total liabilities 1,184,618  1,192,628  1,172,309  1,160,857  1,129,621 
Total shareholders' equity 289,877  287,559  284,660  282,411  282,085 
Total liabilities and shareholders' equity$1,474,495 $1,480,187 $1,456,969 $1,443,268 $1,411,706 


 Quarter Ended 
 September 30, 
2018
 June 30,
2018
 March 31,
2018
 December 31,
2017
 September 30,
2017
 
Condensed Income Statements               
Interest income$12,609 $13,358 $11,648 $11,657 $11,297 
Interest expense 2,145  1,926  1,505  1,471  1,421 
Net interest income 10,464  11,432  10,143  10,186  9,876 
Provision for loan losses 58  25  54  200  135 
Noninterest income 641  601  512  692  714 
Noninterest expense 8,008  8,264  7,833  8,125  7,894 
Income before income tax expense 3,039  3,744  2,768  2,553  2,561 
Income tax expense 710  1,075  591  2,551  805 
Net income$2,329 $2,669 $2,177 $2 $1,756 
                
Earnings per share:               
Basic$0.14 $0.16 $0.13 $0.00 $0.10 
Diluted$0.14 $0.16 $0.13 $0.00 $0.10 
                


   
PCSB Financial Corporation and Subsidiaries
Selected Financial Data (unaudited)
 
 Quarter Ended 
 September 30, 
2018
 June 30,
2018
 March 31,
2018
 December 31,
2017
 September 30,
2017
 
Performance Ratios (1):               
Return on average assets 0.63% 0.72% 0.62% 0.00% 0.49%
Return on average equity 3.22% 3.73% 3.06% 0.00% 2.44%
Interest rate spread 2.73% 3.04% 2.82% 2.85% 2.74%
Net interest margin 2.94% 3.23% 2.99% 3.00% 2.89%
Adjusted Efficiency ratio (2) 72.11% 71.17% 73.51% 74.69% 75.78%
                
Noninterest income to average assets 0.17% 0.16% 0.14% 0.20% 0.20%
Noninterest expense to average assets 2.17% 2.24% 2.21% 2.30% 2.20%
                
Average interest-earning assets to average interest-bearing liabilities 135.38% 134.26% 136.59% 136.51% 136.50%
Average equity to average assets 19.63% 19.41% 20.08% 20.00% 20.10%
Dividend payout ratio (5) 21.73% 18.94% 0.00% 0.00% 0.00%
                


   
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 
 September 30, 
2018
 June 30,
2018
 March 31,
2018
 December 31,
2017
 September 30,
2017
 
Loans to deposits 78.49% 77.96% 81.50% 75.21% 77.65%
                
Share Data:               
Shares outstanding 18,165,110  18,165,110  18,165,110  18,165,110  18,165,110 
Book value per common share$15.96 $15.83 $15.67 $15.55 $15.53 
Tangible book value per common share (3)$15.60 $15.47 $15.31 $15.18 $15.16 
                
Asset Quality Ratios:               
Non-performing assets$6,384 $6,462 $7,307 $8,191 $12,354 
Allowance for loan losses as a percent of total loans receivable 0.54% 0.54% 0.52% 0.53% 0.62%
Total valuation adjustment as a percent of total gross loans (6) 0.70% 0.71% 0.70% 0.74% 0.85%
Allowance for loan losses as a percent of non-performing loans 88.08% 81.71% 64.54% 54.58% 48.53%
Non-performing loans as a percent of total loans receivable, net 0.62% 0.66% 0.80% 0.97% 1.35%
Non-performing assets as a percent of total assets 0.43% 0.44% 0.50% 0.57% 0.88%
                
Net charge-offs (recoveries)$3 $(255)$(99)$997 $17 
Net charge-offs (recoveries) to average outstanding loans during the period (1) 0.00% (0.11%) (0.05%) 0.48% 0.01%
                
Capital Ratios (4):               
Tier 1 capital (to adjusted total assets) 13.85% 13.61% 13.97% 13.84% 13.52%
Common equity Tier 1 capital (to risk-weighted assets) 21.10% 21.11% 21.16% 21.64% 21.13%
Tier 1 capital (to risk-weighted assets) 21.10% 21.11% 21.16% 21.64% 21.13%
Total capital (to risk-weighted assets) 21.61% 21.62% 21.65% 22.13% 21.71%
                
(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) Tangible book value per share is a non-GAAP measure and equals total shareholders’ equity, less goodwill and other intangible assets, divided by shares outstanding.  We believe this disclosure may be meaningful to those investors who seek to evaluate our equity without giving effect to goodwill and other intangible assets. Reconciliations of GAAP to non-GAAP measures appear at the end of this release. 
(4) Represents Bank ratios. 
(5) Dividends declared per share divided by net income per share. 
(6) 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. 
  


   
PCSB Financial Corporation and Subsidiaries
Loan and Deposit Portfolio (unaudited)
(amounts in thousands)
 
 As of 
 September 30, June 30, March 31, December 31, September 30, 
 2018 2018 2018 2017 2017 
Mortgage loans:               
Residential mortgages$249,894 $250,578 $253,847 $213,716 $215,551 
Commercial mortgage 495,944  495,265  484,810  481,169  469,983 
Construction 16,890  17,352  16,098  16,379  23,104 
Net deferred loan origination costs 859  1,041  1,203  210  384 
Total mortgage loans 763,587  764,236  755,958  711,474  709,022 
Commercial and consumer loans:               
Commercial loans 110,196  104,135  96,096  89,941  93,180 
Home equity credit lines 35,191  37,395  38,220  40,158  42,044 
Consumer and overdrafts 344  745  344  251  213 
Net deferred loan origination costs 734  729  724  767  772 
Total commercial and consumer loans 146,465  143,004  135,384  131,117  136,209 
Total loans receivable 910,052  907,240  891,342  842,591  845,231 
Allowance for loan loss (4,959) (4,904) (4,624) (4,471) (5,268)
Loans receivable, net$905,093 $902,336 $886,718 $838,120 $839,963 


 As of 
 September 30, June 30, March 31, December 31, September 30, 
 2018 2018 2018 2017 2017 
Demand deposits$131,024 $131,883 $127,319 $150,830 $133,461 
Now accounts 121,449  117,875  114,899  118,462  110,646 
Money market accounts 79,266  49,885  40,374  31,021  28,590 
Savings 425,189  465,441  482,968  502,469  504,291 
Time deposits 396,193  392,373  322,425  311,547  304,719 
Total deposits$1,153,121 $1,157,457 $1,087,985 $1,114,329 $1,081,707 
                


   
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 
 September 30, 
2018
 June 30,
2018
 March 31,
2018
 December 31,
2017
 September 30,
2017
 
Computation of Adjusted Net Income and Earnings Per Share               
Net income$2,329 $2,669 $2,177 $2 $1,756 
Adjustments(1):               
Losses on other receivables -  292  -  132  - 
Nonaccrual loan interest earned -  (694) -  (94) - 
Gain on sale of securities -  (49) -  -  (114)
Deferred tax re-measurement charge -     (182) 1,752  - 
Adjusted net income$2,329 $2,218 $1,995 $1,792 $1,642 
                
Average number of common shares outstanding used to calculate basic earnings per common share 16,869,100  16,844,747  16,820,726  16,791,305  16,756,447 
                
Adjusted earnings per common share (basic and diluted):$0.14 $0.13 $0.12 $0.11 $0.10 
  
(1) Amounts included in income before income tax expense are presented net of tax. 


 Quarter Ended 
 September 30, 
2018
 June 30,
2018
 March 31,
2018
 December 31,
2017
 September 30,
2017
 
Computation of Efficiency Ratio               
Noninterest expense$8,008 $8,264 $7,833 $8,125 $7,894 
Adjustments:               
Losses on other receivables -  (370) -  (200) - 
Adjusted noninterest expense$8,008 $7,894 $7,833 $7,925 $7,894 
                
Net interest income$10,464 $11,432 $10,143 $10,186 $9,876 
Noninterest income 641  601  512  692  714 
Total revenue 11,105  12,033  10,655  10,878  10,590 
Adjustments:               
Nonaccrual loan interest earned -  (879) -  (142) - 
Gain on sale of securities -  (63) -  -  (173)
Adjusted operating revenue$11,105 $11,091 $10,655 $10,736 $10,417 
                
Efficiency ratio 72.11% 68.68% 73.51% 74.69% 74.54%
Adjusted efficiency ratio 72.11% 71.17% 73.51% 73.82% 75.78%
                


   
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 
 September 30, 
2018
 June 30,
2018
 March 31,
2018
 December 31,
2017
 September 30,
2017
 
Computation of Tangible Book Value per Common Share               
Total shareholders' equity$289,877 $287,559 $284,660 $282,411 $282,085 
Adjustments:               
Preferred stock -  -  -  -  - 
Common shareholders' equity 289,877  287,559  284,660  282,411  282,085 
Adjustments:               
Goodwill (6,106) (6,106) (6,106) (6,106) (6,106)
Other intangible assets (405) (433) (463) (495) (527)
Tangible common shareholders' equity$283,366 $281,020 $278,091 $275,810 $275,452 
                
Common shares outstanding 18,165,110  18,165,110  18,165,110  18,165,110  18,165,110 
                
Book value per share$15.96 $15.83 $15.67 $15.55 $15.53 
Adjustments:               
Effects of intangible assets (0.36) (0.36) (0.36) (0.37) (0.37)
                
Tangible book value per common share$15.60 $15.47 $15.31 $15.18 $15.16 


 Quarter Ended 
 September 30, 
2018
 June 30,
2018
 March 31,
2018
 December 31,
2017
 September 30,
2017
 
Computation of valuation adjustment               
Allowance for Loan losses$4,959 $4,904 $4,624 $4,471 $5,268 
Add: Purchase accounting marks 1,442  1,538  1,630  1,730  1,958 
Total valuation adjustments$6,401 $6,442 $6,254 $6,201 $7,226 
Total gross loans$910,052 $907,240 $891,342 $842,591 $845,231 
Total valuation adjustments as a percent of total gross loans 0.70% 0.71% 0.70% 0.74% 0.85%
                

 

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Source: PCSB Financial Corporation