PCSB Financial Corporation Announces Second Quarter Results

YORKTOWN HEIGHTS, N.Y., Jan. 25, 2018 (GLOBE NEWSWIRE) -- PCSB Financial Corporation (the “Company”) (NASDAQ:PCSB), parent of PCSB Bank (the "Bank"), today announced net income of $2,000, or $0.00 per basic and diluted share, for the three months ended December 31, 2017 compared to $1.8 million for the quarter ended September 30, 2017 and $1.7 million for the three months ended December 31, 2016. For the six months ended December 31, 2017, net income was $1.8 million, or $0.10 per basic and diluted share, compared to $3.1 million for the six months ended December 31, 2016. Results for the three and six months ended December 31, 2017 include a $1.8 million deferred tax re-measurement charge associated with federal tax law changes enacted during the current quarter.

The following nonrecurring items were recorded in the periods indicated:

  • In connection with the passing of the Tax Cuts and Jobs Act, the Company recorded a $1.8 million charge to tax expense, reflecting a write-down of our deferred tax assets resulting from a decrease in the corporate income tax rate from 34% to 21%. The amount recorded in the current quarter is an estimate which may be refined in future periods as the Company finalizes its analysis of the tax law changes.
  • A $173,000 pre-tax gain on sale of securities recorded during the three months ended September 30, 2017 and six months ended December 31, 2017.
  • A $1.6 million settlement on an acquired loan included in other noninterest income in the three and six months ended December 31, 2016.
  • A $521,000 lease write-down expense in the three and six months ended December 31, 2016.

On a non-GAAP basis, which excludes the nonrecurring items discussed above, the Company recorded net income of $1.8 million and $3.4 million for the three and six months ended December 31, 2017, or $0.10 and $0.20 per diluted share, respectively. This compares to non-GAAP net income of $950,000 and $2.4 million for the three and six months ended December 31, 2016. Reconciliations of GAAP to non-GAAP measures begin on page 12.

Effective April 20, 2017, PCSB Bank completed its mutual-to-stock conversion and the Company completed its related initial public offering. Accordingly, 2016 financial results are for the Bank only.

President’s Comments
Commenting on the Company's results, Joseph Roberto, Chairman, President and Chief Executive Officer of PCSB Financial Corporation said, “We are pleased with our core second quarter results. Loans and deposits have grown $28.5 million (3.5%) and $25.9 million (2.4%), respectively; net interest income increased 19.5% from last year and 3.1% from last quarter; and non-performing assets as a percent of total assets has decreased from 0.91% at June 30, 2017 to 0.57% at December 31, 2017. These results are consistent with our continued strategy to leverage the capital raised in our initial public offering in April 2017 in a safe and disciplined way.”

“While the Tax Cuts and Jobs Act required the Company to record a write-down of our deferred tax assets, we expect to benefit from the lower tax rate going forward, allowing for increased investment in strategic opportunities to increase stockholder value.”

Income Statement Summary
Net interest income increased $1.7 million, or 19.5%, to $10.2 million for the three months ended December 31, 2017, compared to the same period in 2016 and increased $310,000, or 3.1%, compared to the previous quarter. Net interest income increased as a result of an increase in the average balances of loans and investment securities outstanding, partially offset by an increase in the average balance of advances from Federal Home Loan Bank. The net interest margin was 3.00% for the three months ended December 31, 2017, increasing from 2.89% for both the three months ended December 31, 2016 and September 30, 2017.

The provision for loan losses decreased $362,000 to $200,000 for the three months ended December 31, 2017 compared to the same period in 2016 due to increases in specific reserves on impaired loans in the prior year period. The provision for loan losses increased $65,000 compared to the prior quarter due primarily to increases in specific reserves on impaired loans. Charge-offs, net of recoveries, were $997,000 for the three months ended December 31, 2017, compared to $17,000 for the three months ended September 30, 2017 and net recoveries of $1,000 for the three months ended December 31, 2016. Loans classified as substandard and doubtful decreased $6.3 million or 25.7% to $18.3 million at December 31, 2017 from $24.6 million at September 30, 2017 and decreased $3.4 million or 15.9% from $21.7 million at December 31, 2016.

Noninterest income decreased $1.6 million to $692,000 for the three months ended December 31, 2017 compared to the same period in 2016, due to a one-time settlement on an acquired loan of $1.6 million in the prior period, and decreased $22,000 from the three months ended June 30, 2017, due primarily to $173,000 in gains on sale of securities recognized in the prior quarter, partially offset by loan-related fees.

Noninterest expense increased $331,000 to $8.1 million for the three months ended December 31, 2017 compared to the same period in 2016 and increased $231,000 from the three months ended September 30, 2017. The $331,000 increase was caused primarily by increases in salaries and employee benefits of $379,000 and in all other operating expenses of $500,000, partially offset by a decrease in occupancy expense of $548,000. The increase in salaries and benefits was due primarily to a $301,000 increase in retirement expenses, including ESOP expense which commenced in April 2017, and a $159,000 increase in salaries expense due primarily to increased staffing, partially offset by a $97,000 decrease in benefits expense due primarily to lower healthcare costs. The increase in other operating expenses was caused primarily by increases in Director and Officer insurance and other professional fees associated with being a public company, as well as increased advertising and data processing costs. Occupancy expense decreased due primarily to a $521,000 lease obligation write-off recorded in the prior period. The $231,000 increase in noninterest expense from the three months ended September 30, 2017 was primarily due to a loss recorded on a receivable.

Income tax expense increased $1.8 million to $2.6 million for the three months ended December 31, 2017 compared to the same period in 2016 as well as the prior quarter and was caused by the $1.8 million deferred tax re-measurement charge recorded in the current quarter. The effective income tax rate was 99.9% (31.3% excluding the effects of the re-measurement charge) for the three months ended December 31, 2017 as compared to 31.2% for the three months ended December 31, 2016.

Balance Sheet Summary
Total assets increased $16.8 million to $1.44 billion at December 31, 2017 from $1.43 billion at June 30, 2017. This increase was primarily due to increases of $16.6 million in cash and cash equivalents and $28.5 million in net loans receivable, partially offset by a decrease of $25.1 million in total investment securities. The increase in cash and cash equivalents and loans was primarily funded by the increase in liabilities and the decrease in investment securities. The $28.5 million increase in net loans was primarily due to an increase of $43.5 million in commercial mortgage loans, partially offset by decreases of $6.0 million in construction loans, $4.1 million in residential mortgage loans, $2.0 million in commercial loans and $1.8 million in home equity lines of credit.

Total liabilities increased $14.2 million to $1.16 billion at December 31, 2017 from $1.15 billion at June 30, 2017. This increase was primarily due to an increase of $25.9 million in total deposits, partially offset by a $11.9 million decrease in advances from FHLB.

Total shareholders’ equity increased $2.6 million to $282.4 million at December 31, 2017 from $279.8 million at June 30, 2017. This increase was primarily due to net income of $1.8 million and a $1.3 million reduction in unearned ESOP shares for plan shares earned during the period. At December 31, 2017, the Company’s book value per share and tangible book value per share were $15.55 and $15.18, respectively, compared to $15.41 and $15.04, respectively, at June 30, 2017. For reconciliations of book value per share (GAAP measure) to tangible book value per share (non-GAAP measure), see page 13. At December 31, 2017, 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 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)
December 31, June 30,
2017 2017
ASSETS
Cash and due from banks $75,778 $59,115
Federal funds sold 1,328 1,371
Cash and cash equivalents 77,106 60,486
Investment Securities:
Held to maturity investment securities, at amortized cost
(fair value of $363,457 and $383,588, respectively)
367,646 383,551
Available for sale securities, at fair value 102,714 111,889
Total investment securities 470,360 495,440
Loans receivable, net of allowance for loan losses of $4,471 and $5,150, respectively 838,120 809,648
Accrued interest receivable 4,001 3,693
Federal Home Loan Bank stock 2,395 3,132
Premises and equipment, net 12,625 12,959
Deferred tax asset, net 2,832 4,770
Foreclosed real estate 977
Bank-owned life insurance 23,473 23,179
Goodwill 6,106 6,106
Other intangible assets 495 559
Other assets 5,755 5,509
Total assets $1,443,268 $1,426,458
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest bearing deposits $963,495 $952,109
Non-interest bearing deposits 150,834 136,352
Total deposits 1,114,329 1,088,461
Mortgage escrow funds 8,229 8,084
Advances from Federal Home Loan Bank 30,720 42,598
Other liabilities 7,579 7,469
Total liabilities 1,160,857 1,146,612
Total shareholders' equity 282,411 279,846
Total liabilities and shareholders' equity $1,443,268 $1,426,458


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,
2017 2016 2017 2016
Interest and dividend income
Loans receivable $9,171 $8,238 $17,989 $16,763
Investment securities 2,269 1,530 4,514 3,010
Federal funds and other 217 82 451 186
Total interest and dividend income 11,657 9,850 22,954 19,959
Interest expense
Deposits 1,307 1,292 2,574 2,576
FHLB advances 164 31 318 81
Total interest expense 1,471 1,323 2,892 2,657
Net interest income 10,186 8,527 20,062 17,302
Provision for loan losses 200 562 335 588
Net interest income after provision for loan losses 9,986 7,965 19,727 16,714
Noninterest income
Fees and service charges 293 360 569 602
Gains on sales of securities, net - - 173 -
Bank-owned life insurance 145 160 294 328
Settlement on acquired loan - 1,615 - 1,615
Other 254 124 370 266
Total noninterest income 692 2,259 1,406 2,811
Noninterest expense
Salaries and employee benefits 4,823 4,444 9,636 8,694
Occupancy and equipment 1,296 1,844 2,578 3,135
Professional fees 379 276 792 585
Advertising 179 90 344 229
Postage, printing, stationary and supplies 142 131 274 264
FDIC assessment 64 106 142 321
Amortization of intangible assets 33 37 65 73
Other operating expenses 1,209 866 2,188 1,691
Total noninterest expense 8,125 7,794 16,019 14,992
Net income before income tax expense 2,553 2,430 5,114 4,533
Income tax expense 2,551 758 3,356 1,405
Net income $2 $1,672 $1,758 $3,128
Earnings per common share:
Basic $0.00 n/a $0.10 n/a
Diluted $0.00 n/a $0.10 n/a
Weighted average common share - basic and diluted 16,791,305 n/a 16,773,883 n/a


PCSB Financial Corporation and Subsidiaries
Net Interest Margin Analysis
(amounts in thousands)
Three months ended December 31,
2017 2016
Average
Balance
Interest /
Dividends
Average
Rate
Average
Balance
Interest /
Dividends
Average
Rate
Assets:
Loans receivable$827,614 $9,171 4.43% $762,538 $8,238 4.32%
Investment securities 473,641 2,269 1.92 362,954 1,530 1.69
Other interest-earning assets 54,388 217 1.58 56,045 82 0.58
Total interest-earning assets 1,355,643 11,657 3.44 1,181,537 9,850 3.33
Non-interest-earning assets 58,665 58,604
Total assets$1,414,308 $1,240,141
Liabilities and equity:
NOW accounts$112,147 48 0.17 $105,647 44 0.16
Money market accounts 29,014 22 0.30 31,874 21 0.26
Savings accounts and escrow 509,888 309 0.24 527,779 327 0.25
Certificates of deposit 306,756 928 1.20 317,757 900 1.12
Total interest-bearing deposits 957,805 1,307 0.54 983,057 1,292 0.52
Federal Home Loan Bank advances 35,293 164 1.85 6,354 31 1.96
Total interest-bearing liabilities 993,098 1,471 0.59 989,411 1,323 0.53
Non-interest-bearing deposits 130,614 123,135
Other non-interest-bearing liabilities 7,765 15,101
Total liabilities 1,131,477 1,127,647
Total shareholders' equity 282,831 112,494
Total liabilities and shareholders' equity$1,414,308 $1,240,141
Net interest income $10,186 $8,527
Interest rate spread (1) 2.85 2.80
Net interest margin (2) 3.00 2.89
Average interest-earning assets to interest-bearing liabilities 136.51% 119.42%
(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
(amounts in thousands)
Six months ended December 31,
2017 2016
Average
Balance
Interest /
Dividends
Average
Rate
Average
Balance
Interest /
Dividends
Average
Rate
Assets:
Loans receivable$820,429 $17,989 4.38% $769,340 $16,763 4.35%
Investment securities 479,833 4,514 1.88 368,855 3,010 1.63
Other interest-earning assets 61,822 451 1.45 59,800 186 0.62
Total interest-earning assets 1,362,084 22,954 3.37 1,197,995 19,959 3.33
Non-interest-earning assets 58,453 56,929
Total assets$1,420,537 $1,254,924
Liabilities and equity:
NOW accounts$113,458 97 0.17 $107,803 88 0.16
Money market accounts 29,557 43 0.29 31,642 42 0.26
Savings accounts and escrow 514,102 633 0.25 528,580 654 0.25
Certificates of deposit 302,382 1,801 1.18 321,775 1,792 1.10
Total interest-bearing deposits 959,499 2,574 0.53 989,800 2,576 0.52
Federal Home Loan Bank advances 38,346 318 1.65 10,914 81 1.48
Total interest-bearing liabilities 997,845 2,892 0.58 1,000,714 2,657 0.53
Non-interest-bearing deposits 132,491 126,951
Other non-interest-bearing liabilities 8,026 15,394
Total liabilities 1,138,362 1,143,059
Total shareholders' equity 282,175 111,865
Total liabilities and shareholders' equity$1,420,537 $1,254,924
Net interest income $20,062 $17,302
Interest rate spread (1) 2.79 2.80
Net interest margin (2) 2.95 2.89
Average interest-earning assets to interest-bearing liabilities 136.50% 119.71%
(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)
For the Quarter Ended
December 31,
2017
September 30,
2017
June 30,
2017
March 31,
2017
December 31,
2016
Condensed Income Statements
Interest income$11,657 $11,297 $10,723 $10,276 $9,850
Interest expense 1,471 1,421 1,318 1,318 1,323
Net interest income 10,186 9,876 9,405 8,958 8,527
Provision for loan losses 200 135 - 235 562
Noninterest income 692 714 647 626 2,259
Noninterest expense 8,125 7,894 12,859 6,580 7,794
Income before income tax expense (benefit) 2,553 2,561 (2,807) 2,769 2,430
Income tax expense (benefit) 2,551 805 (1,017) 878 758
Net income (loss)$2 $1,756 $(1,790)$1,891 $1,672
Earnings per share:
Basic$0.00 $0.10 n/a n/a n/a
Diluted$0.00 $0.10 n/a n/a n/a
As of
December 31,
2017
September 30,
2017
June 30,
2017
March 31,
2017
December 31,
2016
Condensed Balance Sheets
Cash and cash equivalents$77,106 $34,733 $60,486 $178,409 $48,327
Total investment securities 470,360 475,823 495,440 391,359 367,954
Loans receivable, net 838,120 839,963 809,648 776,756 766,681
Other assets 57,682 61,187 60,884 60,797 57,921
Total assets$1,443,268 $1,411,706 $1,426,458 $1,407,321 $1,240,883
Total deposits and escrow$1,122,558 $1,086,662 $1,096,545 $1,121,201 $1,114,457
Advances from Federal Home Loan Bank 30,720 35,750 42,598 24,446 4,022
Other liabilities 7,579 7,209 7,469 144,404 9,647
Total liabilities 1,160,857 1,129,621 1,146,612 1,290,051 1,128,126
Total shareholders' equity 282,411 282,085 279,846 117,270 112,757
Total liabilities and shareholders' equity$1,443,268 $1,411,706 $1,426,458 $1,407,321 $1,240,883


PCSB Financial Corporation and Subsidiaries
Selected Financial Data (unaudited)
For the Quarter Ended
December 31,
2017
September 30,
2017
June 30,
2017
March 31,
2017
December 31,
2016
Performance Ratios (1):
Return on average assets 0.00% 0.49% -0.50% 0.59% 0.54%
Return on average equity 0.00% 2.44% -2.69% 6.62% 5.95%
Interest rate spread 2.85% 2.74% 2.69% 2.87% 2.80%
Net interest margin 3.00% 2.89% 2.81% 2.96% 2.89%
Adjusted Efficiency ratio (2) 74.69% 75.78% 78.18% 78.24% 79.30%
Noninterest income to average assets 0.20% 0.20% 0.18% 0.20% 0.73%
Noninterest expense to average assets 2.30% 2.20% 3.60% 2.07% 2.51%
Average interest-earning assets to average interest-bearing liabilities 136.51% 136.50% 130.71% 118.73% 119.42%
Equity to assets (3) 20.00% 20.10% 18.65% 8.97% 9.17%


PCSB Financial Corporation and Subsidiaries
Selected Financial Data (unaudited) - Continued
(amounts in thousands, except share and per share data)
As of
December 31,
2017
September 30,
2017
June 30,
2017
March 31,
2017
December 31,
2016
Loans to deposits 75.21% 77.65% 74.38% 69.70% 69.21%
Share Data:
Shares outstanding 18,165,110 18,165,110 18,165,110 n/a n/a
Book value per common share$15.55 $15.53 $15.41 n/a n/a
Tangible book value per common share (4)$15.18 $15.16 $15.04 n/a n/a
Asset Quality Ratios:
Non-performing assets$8,191 $12,354 $13,049 $13,363 $9,248
Allowance for loan losses as a percent of total gross loans 0.53% 0.62% 0.63% 0.62% 0.60%
Allowance for loan losses as a percent of non-performing loans 54.58% 48.53% 42.66% 41.58% 65.86%
Non-performing loans as a percent of total loans 0.97% 1.35% 1.48% 1.49% 0.91%
Non-performing assets as a percent of total assets 0.57% 0.88% 0.91% 0.95% 0.75%
Net charge-offs (recoveries)$997 $17 $(320)$33 $(1)
Net charge-offs (recoveries) to average outstanding loans during the period 0.48% 0.01% -0.16% 0.02% 0.00%
Capital Ratios (5):
Tier 1 capital (to adjusted total assets) 13.84% 13.52% 13.65% 9.13% 9.28%
Common equity Tier 1 capital (to risk-weighted assets) 21.64% 21.13% 21.69% 13.99% 14.05%
Tier 1 capital (to risk-weighted assets) 21.64% 21.13% 21.69% 13.99% 14.05%
Total capital (to risk-weighted assets) 22.13% 21.71% 22.27% 14.57% 14.62%
(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 our 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 volatility that is associated with certain one-time items and other discrete items that are unrelated to our core business.
(3) Represents average shareholders' equity divided by average total assets.
(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.
(5) Represents Bank ratios.


PCSB Financial Corporation and Subsidiaries
Loan and Deposit Portfolio
(amounts in thousands)
December 31, June 30,
2017 2017
Mortgage loans:
Residential mortgages$213,716 $217,778
Commercial mortgage 481,169 437,651
Construction 16,379 22,404
Net deferred loan origination costs 210 397
711,474 678,230
Commercial and consumer loans:
Commercial loans 31,276 33,297
Other loans secured 46,056 46,802
Home equity credit lines 40,158 41,927
Consumer and installment loans 12,860 13,765
Net deferred loan origination costs 767 777
131,117 136,568
Total loans receivable 842,591 814,798
Allowance for loan loss (4,471) (5,150)
Loans receivable, net$838,120 $809,648


December 31, June 30,
2017 2017
Demand deposits$150,830 $136,361
Now accounts 118,462 115,527
Money market accounts 31,021 29,097
Savings 502,469 512,697
Time deposits 311,547 294,779
Total deposits$1,114,329 $1,088,461


PCSB Financial Corporation and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures (unaudited)
(amounts in thousands, except share and per share data)
Three Months Ended Six Months Ended,
December 31, December 31,
2017 2016 2017 2016
Computation of Adjusted Net Income
Net income $2 $1,672 $1,758 $3,128
Adjustments:
Deferred tax re-measurement charge 1,752 - 1,752 -
Write-down of operating lease obligation (1) - 344 - 344
Settlement on acquired loan (1) - (1,066) - (1,066)
Gain on sale of securities (1) - - (114) -
Adjusted net income $1,754 $950 $3,396 $2,406
Average number of common shares outstanding used to calculate basic earnings per common share 16,791,305 n/a 16,773,883 n/a
Adjusted earnings per common share (basic and diluted): $0.10 n/a $0.20 n/a
Computation of Adjusted Effective Tax Rate
Net income before income tax expense 2,553 2,430 5,114 4,533
Income tax expense 2,551 758 3,356 1,405
Adjustments:
Deferred tax re-measurement charge (1,752) - (1,752) -
Adjusted income tax expense 799 758 1,604 1,405
Effective tax rate % 99.9% 31.2% 65.6% 31.0%
Adjusted effective tax rate % 31.3% 31.2% 31.4% 31.0%
(1) Amounts net of tax.


PCSB Financial Corporation and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures (unaudited)
(amounts in thousands, except share and per share data)
For the Quarter Ended
December 31,
2017
September 30,
2017
June 30,
2017
March 31,
2017
December 31,
2016
Computation of Efficiency Ratio
Noninterest expense$8,125 $7,894 $12,859 $6,580 $7,794
Adjustments:
PCSB Community Foundation contribution - - (5,000) - -
Defined benefit pension plan curtailment - - - 919 -
Write-down of operating lease obligation - - - - (521)
Adjusted noninterest expense$8,125 $7,894 $7,859 $7,499 $7,273
Net interest income$10,186 $9,876 $9,405 $8,958 $8,527
Noninterest income 692 714 647 626 2,259
Total revenue 10,878 10,590 10,052 9,584 10,786
Adjustments:
Settlement on acquired loan - - - - (1,615)
Gain on sale of securities - (173) - - -
Adjusted operating revenue$10,878 $10,417 $10,052 $9,584 $9,171
Efficiency ratio 74.69% 74.54% 127.92% 68.66% 72.26%
Adjusted efficiency ratio 74.69% 75.78% 78.18% 78.24% 79.30%


As of
December 31,
2017
September 30,
2017
June 30,
2017
March 31,
2017
December 31,
2016
Computation of Tangible Book Value per Common Share
Total shareholders' equity$282,411 $282,085 $279,846 $117,270 $112,757
Adjustments:
Preferred stock - - - - -
Common shareholders' equity 282,411 282,085 279,846 117,270 112,757
Adjustments:
Goodwill (6,106) (6,106) (6,106) (6,106) (6,106)
Other intangible assets (495) (527) (559) (593) (629)
Tangible common shareholders' equity$275,810 $275,452 $273,181 $110,571 $106,022
Common shares outstanding 18,165,110 18,165,110 18,165,110 n/a n/a
Book value per share$15.55 $15.53 $15.41 n/a n/a
Adjustments:
Effects of intangible assets (0.37) (0.37) (0.37)n/a n/a
Tangible book value per common share$15.18 $15.16 $15.04 n/a n/a

Source:PCSB Financial Corporation