PCSB Financial Earnings 2021-03-31

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

pcsb-10q_20210331.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File Number: 001-38065

PCSB Financial Corporation

(Exact Name of Registrant as Specified in its Charter)

Maryland	81-4710738
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
2651 Strang Blvd, Suite 100 Yorktown Heights, NY	10598
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (914) 248-7272

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value per share

PCSB

The NASDAQ Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐

Non-accelerated filer	☒	Small reporting company	☒

		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for completing with any or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

15,966,216 shares of the Registrant’s common stock, par value $0.01 per share, were outstanding as of May 7, 2021.

Table of Contents

		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	3
	Consolidated Balance Sheets	3
	Consolidated Statements of Operations	4
	Consolidated Statements of Comprehensive Income	5
	Consolidated Statements of Changes in Shareholders’ Equity	6
	Consolidated Statements of Cash Flows	8
	Notes to Unaudited Consolidated Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	35
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	47
Item 4.	Controls and Procedures	47
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	47
Item 1A.	Risk Factors	47
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	47
Item 3.	Defaults Upon Senior Securities	48
Item 4.	Mine Safety Disclosures	48
Item 5.	Other Information	48
Item 6.	Exhibits	48
Signatures		50

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

PCSB Financial Corporation and Subsidiaries

Consolidated Balance Sheets (unaudited)

(amounts in thousands, except share and per share data)

	March 31,			June 30,
	2021			2020
ASSETS
Cash and due from banks	$	167,983		$	135,045
Federal funds sold		1,331			1,257
Total cash and cash equivalents		169,314			136,302
Investment securities:
Held to maturity debt securities, at amortized cost (fair value of $313,974 and $281,497, respectively)		309,692			275,772
Available for sale debt securities, at fair value		37,610			37,426
Total investment securities		347,302			313,198
Loans receivable, net of allowance for loan losses of $7,865 and $8,639, respectively		1,261,155			1,260,947
Accrued interest receivable		6,731			6,880
FHLB stock		5,854			6,308
Premises and equipment, net		19,364			20,853
Deferred tax asset, net		3,163			3,129
Bank-owned life insurance		25,400			25,019
Goodwill		6,106			6,106
Other intangible assets		168			229
Other assets		10,117			12,958
Total assets	$	1,854,674		$	1,791,929
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest bearing deposits	$	1,250,945		$	1,181,357
Non-interest bearing deposits		203,345			191,898
Total deposits		1,454,290			1,373,255
Mortgage escrow funds		9,252			10,123
Advances from FHLB		95,991			106,089
Other liabilities		23,844			28,749
Total liabilities		1,583,377			1,518,216
Commitments and contingencies		-			-
Shareholders' equity:
Preferred stock ($0.01 par value, 10,000,000 shares authorized, no shares issued or outstanding as of March 31, 2021 and June 30, 2020)		-			-
Common stock ($0.01 par value, 200,000,000 shares authorized, 18,703,577 and 18,712,295 shares issued as of March 31, 2021 and June 30, 2020, respectively, and 15,966,216 and 16,898,137 shares outstanding as of March 31, 2021 and June 30, 2020, respectively)		187			187
Additional paid in capital		188,926			186,200
Retained earnings		148,466			141,288
Unearned compensation - ESOP		(10,418	)		(11,145	)
Accumulated other comprehensive loss, net of income taxes		(6,180	)		(6,403	)
Treasury stock, at cost (2,737,361 and 1,814,158 shares as of March 31, 2021 and June 30, 2020, respectively)		(49,684	)		(36,414	)
Total shareholders' equity		271,297			273,713
Total liabilities and shareholders' equity	$	1,854,674		$	1,791,929

See accompanying notes to the consolidated financial statements (unaudited)

PCSB Financial Corporation and Subsidiaries

Consolidated Statements of Operations (unaudited)

(amounts in thousands, except share and per share data)

	Three Months Ended March 31,					Nine Months Ended March 31,
	2021			2020		2021			2020
Interest and dividend income
Loans receivable	$	12,116		$	13,114	$	36,845		$	39,299
Investment securities		1,700			2,003		5,489			6,974
Federal funds and other		109			217		344			816
Total interest and dividend income		13,925			15,334		42,678			47,089
Interest expense
Deposits and escrow interest		1,782			3,268		6,372			9,927
FHLB advances		506			541		1,545			1,942
Total interest expense		2,288			3,809		7,917			11,869
Net interest income		11,637			11,525		34,761			35,220
Provision (benefit) for loan losses		(894	)		2,008		(678	)		2,755
Net interest income after provision for loan losses		12,531			9,517		35,439			32,465
Noninterest income
Fees and service charges		353			366		1,038			1,170
Bank-owned life insurance		120			128		381			399
Swap income		-			-		367			170
Gains on sales of securities		113			38		113			38
Other		6			48		30			115
Total noninterest income		592			580		1,929			1,892
Noninterest expense
Salaries and employee benefits		5,595			5,782		16,722			17,435
Occupancy and equipment		1,359			1,311		4,051			3,959
Communication and data processing		517			521		1,539			1,559
Professional fees		382			393		1,285			1,176
Postage, printing, stationery and supplies		146			140		452			439
FDIC assessment		115			-		350			-
Advertising		100			100		300			300
Amortization of intangible assets		21			24		61			73
Other operating expenses		337			249		1,127			1,160
Total noninterest expense		8,572			8,520		25,887			26,101
Net income before income tax expense		4,551			1,577		11,481			8,256
Income tax expense		959			360		2,467			1,857
Net income	$	3,592		$	1,217	$	9,014		$	6,399
Earnings per common share:
Basic	$	0.25		$	0.08	$	0.60		$	0.41
Diluted	$	0.25		$	0.08	$	0.60		$	0.40
Weighted average common shares outstanding:
Basic		14,631,122			15,437,173		14,944,097			15,752,709
Diluted		14,632,342			15,447,217		14,944,664			15,814,322

See accompanying notes to the consolidated financial statements (unaudited)

PCSB Financial Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income (Loss) (unaudited)

(amounts in thousands)

	Three Months Ended March 31,						Nine Months Ended March 31,
	2021			2020			2021			2020
Net income	$	3,592		$	1,217		$	9,014		$	6,399

Other comprehensive income:
Unrealized (losses) gains on available for sale debt securities:
Net change in unrealized gains/losses before reclassification adjustment		(565	)		186			(584	)		406
Reclassification adjustment for gains realized in net income		(52	)		(20	)		(52	)		(20	)
Net change in unrealized gains/losses		(617	)		166			(636	)		386
Tax effect		129			(35	)		133			(80	)
Net of tax		(488	)		131			(503	)		306

Defined benefit pension plan:
Net gain (loss) arising during the period		-			-			-			-
Reclassification adjustment for amortization of prior service cost and net gain included in net periodic pension cost		305			132			877			668
Tax effect		(64	)		(27	)		(184 </

Price	20.50	EPS	1
Shares	18	P/E	41
MCap	361	P/FCF	34
Net Debt	0	EBIT	25
TEV	361	TEV/EBIT	15
TTM 2019-09-30, in MM, except price, ratios

10-Q	2021-03-31	Filed 2021-05-07
10-Q	2020-12-31	Filed 2021-02-05
10-Q	2020-09-30	Filed 2020-11-06
10-K	2020-06-30	Filed 2020-09-11
10-Q	2020-03-31	Filed 2020-05-06
10-Q	2019-12-31	Filed 2020-02-07
10-Q	2019-09-30	Filed 2019-11-08
10-K	2019-06-30	Filed 2019-09-10
10-Q	2019-03-31	Filed 2019-05-10
10-Q	2018-12-31	Filed 2019-02-08
10-Q	2018-09-30	Filed 2018-11-09
10-K	2018-06-30	Filed 2018-09-13
10-Q	2018-03-31	Filed 2018-05-11
10-Q	2017-12-31	Filed 2018-02-09
10-Q	2017-09-30	Filed 2017-11-09
10-K	2017-06-30	Filed 2017-09-27
10-Q	2017-03-31	Filed 2017-05-12
10-Q	2016-12-31	Filed 2017-03-27

8-K	2020-10-29
8-K	2020-10-28
8-K	2020-08-20
8-K	2020-08-10
8-K	2020-08-06
8-K	2020-04-30
8-K	2020-02-19
8-K	2020-01-31
8-K	2020-01-23
8-K	2019-10-23
8-K	2019-10-23
8-K	2019-08-01
8-K	2019-06-19
8-K	2019-05-22
8-K	2019-04-25
8-K	2019-02-06
8-K	2019-01-24
8-K	2018-12-31
8-K	2018-11-15
8-K	2018-11-07
8-K	2018-10-30
8-K	2018-10-25
8-K	2018-10-24
8-K	2018-10-24
8-K	2018-08-02
8-K	2018-07-25
8-K	2018-04-26
8-K	2018-01-25

EX-31.1	pcsb-ex311_6.htm
EX-31.2	pcsb-ex312_8.htm
EX-32	pcsb-ex32_7.htm

PCSB 10Q Quarterly Report

PCSB Financial Earnings 2021-03-31