 YORKTOWN HEIGHTS, N.Y., Aug. 06, 2020 GLOBE NEWSWIRE -- PCSB Financial Corporation the Company NASDAQ: PCSB, parent of PCSB Bank the Bank, today announced net income of 3.0 million, or 0.19 per diluted share, for the three months ended June 30, 2020 compared to 1.2 million, or 0.08 per diluted share, for the three months ended March 31, 2020 and 1.7 million, or 0.10 per diluted share, for the three months ended June 30, 2019. Net income was 9.4 million, or 0.60 per diluted share, for the year ended June 30, 2020 compared to 8.3 million, or 0.50 per diluted share, for the year ended June 30, 2019. Provision for loan losses for the three months and year ended June 30, 2020 was 309,000 and 3.1 million, which includes 201,000 and 1.9 million, or 0.01 and 0.10 per diluted share, net of tax, respectively, related to reserves established as a result of the economic impacts of the COVID-19 pandemic. On a non-GAAP basis, which excludes certain nonrecurring items, the Company recorded adjusted net income of 2.9 million, or 0.19 per diluted share, for the three months ended June 30, 2020 compared to adjusted net income of 1.2 million, or 0.07 per diluted share, for the three months ended March 31, 2020 and 1.6 million, or 0.10 per diluted share, for the three months ended June 30, 2019. Adjusted net income for the year ended June 30, 2020 was 8.8 million, or 0.56 per diluted share, compared to 8.0 million, or 0.49 per diluted share, for the previous 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 September 4, 2020 to stockholders of record as of the close of business on August 21, 2020.Fourth Quarter and Year-End Highlights Earnings before income taxes and provision for loan losses increased 1.1 million, or 36.2, and 3.3 million, or 28.0, for the three months and year ended June 30, 2020, respectively, compared to the year ago periods. Net interest income was 11.5 million for the quarter, a 6.5 increase compared to the same quarter last year. Full year net interest income was 46.7 million, a 9.3 increase compared to the prior year. The net interest margin was 2.72 for the quarter, a decrease from 2.94 for the same quarter last year. Full year net interest margin was 2.89, a decrease from 2.95 for the prior year. The adjusted efficiency ratio was 67.74 and 70.71 for the current year quarter and full year, compared to 74.55 and 74.81 for the prior year quarter and full year, respectively. Total loans receivable of 1.27 billion, representing year-over-year growth of 121.2 million, or 11.0, excluding PPP loans. Non-performing loans decreased 932,000 during the year to 1.8 million, equating to 0.14 of gross loans receivable as of June 30, 2020 Loan to deposit ratio was 91.82, an increase from 89.17 as of the same quarter last year.Presidents CommentsI want to first thank our staff for their unwavering commitment to our customers and our senior management team and Board of Directors for their strong leadership through this difficult period, said Joseph D. Roberto, Chairman, President and Chief Executive Officer of PCSB Financial Corporation. Although the COVID-19 pandemic continues to create unprecedented challenges, we have continued to assist our customers in addressing their financial needs, ensure the health and well-being of our employees and support the communities in which we operate. The actions we have taken, including loan payment deferrals, loan modifications, fee waivers and loans funded through the Payroll Protection Program PPP have all been part of our support for the small businesses that are extremely important for the strength of our local economy. Despite operating in a severe economic recession, mainly affecting the third and fourth quarters of our fiscal year, we are extremely pleased with our fourth quarter and year-end results, which show both strong earnings and balance sheet growth over the previous year periods.Although credit quality remains extremely strong, our allowance for loan losses incorporates our acknowledgment of the potential credit deterioration resulting from a prolonged downturn in the economy. We believe the Companys conservative underwriting will serve us well during these times as we ended the fiscal year with a ratio of nonperforming assets to total assets of 0.10. Additionally, the 321.5 million of loans we have in those industries expected to be most impacted by COVID-19 are 98.8 secured by real estate with a weighted average loan to value ratio under 55.While the pandemics final economic impact remains uncertain, we believe that our robust capital and liquidity positions will allow the Company to weather this crisis and continue to deliver long-term growth and profitability for our shareholders.COVID-19 ResponseIn response to the COVID-19 pandemic, the Company has been active in providing assistance to our customers, as well as assessing the risks and potential impact on the Companys financial position, including liquidity, credit quality, earnings and capital. The following is a summary of these actions through July 31, 2020:Support for Consumer and Business Customers Waive or reduce certain fees, including overdraft fees, ATM fees, late charges and early CD withdrawal penalties. The waiver of these fees and penalties ceased on July 15, 2020. Moratorium on foreclosures and certain credit bureau reporting. Consumer loan payment deferrals granted for 109 loans totaling 30.7 million, representing approximately 10.7 of the residential mortgage and home equity line of credit portfolios, of which 9 loans totaling 2.4 million have been granted a second payment deferral. Commercial loan payment deferrals granted for 212 loans totaling 189.0 million, representing approximately 19.2 of the commercial mortgage, commercial loan and construction portfolios, of which 11 loans totaling 9.0 million have been granted a second payment deferral. Funded 49.9 million in PPP loans, averaging approximately 160,000 per loan, to over 300 small businesses. The Company expects to earn approximately 868,000 of fee income associated with originating these loans.Risk Assessment and Financial ImpactLiquidityManagement believes the Companys liquidity is strong. At June 30, 2020, cash and cash equivalents totaled 136.3 million and securities available for sale totaled 37.4 million. Additionally, the Company had remaining borrowing capacity of 246.0 million, comprising 112.3 million from the Federal Home Loan Bank of New York, 108.7 million from the Federal Reserve Bank of New York discount window, and 25.0 million in other lines of credit. The Company experienced elevated draws on working capital lines of credit and home equity lines of credit as of March 31, 2020, however line usage reduced over the fourth quarter. Lines of credit have a usage rate of 25 as of June 30, 2020, compared with 35 as of March 31, 2020 and 32 as of June 30, 2019.CapitalThe Companys capital position is also strong. At June 30, 2020, all of the Banks regulatory capital ratios significantly exceeded well-capitalized standards. Specifically, the Banks Tier 1 Leverage Ratio was 12.51 as of June 30, 2020, which represents 2 12 times the well-capitalized regulatory standard of 5. Additionally, as of June 30, 2020, PCSB Financial Corporation parent of PCSB Bank has 41.2 million of additional funds that could be contributed to the Bank as capital, which would result in a proforma Tier 1 Leverage ratio of 14.85.Credit RiskThe Company has taken actions to identify, assess and address its COVID-19-related credit exposure. Many factors are unknown, including the length of the resulting economic shutdown imposed by New York State and other neighboring states, the impacts of the government fiscal and monetary relief measures, including payment deferral programs, as well as the long-term impacts COVID-19 may have on our consumer and commercial borrowers. The following table provides the Companys commercial and construction exposures to those industries the Company believes to be the most directly and significantly impacted by the pandemic:Industry Sector:Total Balance Outstanding as of June 30, 2020 1 amounts in thousands of Total Loans Receivable Secured by Real Estate Collateral Receiving Payment Assistance 4 Loan-to-Value 5 Retail 2140,086 11.1 98.1 31.9 51.8 Mixed-use with retail component 105,054 8.3 100.0 21.4 52.9 Hotels and accommodation services 3 39,455 3.1 100.0 44.4 56.4 Food service incl. restaurants 26,596 2.1 96.2 49.1 56.2 Arts, entertainment and recreation 10,296 0.8 97.1 29.1 57.4 Total321,487 25.5 98.8 31.3 53.3 1 Excludes PPP loan exposures. 2 Includes 77.0 million of loans supported by properties with credit-rated or anchored tenants. 3 Includes one construction relationship with an outstanding balance of 3.7 million. 4 Assistance is in association with COVID-19 payment modificationdeferral programs; 99.7 of loans receiving assistance presented in the table above are secured by real estate, with a weighted average loan-to-value ratio of 59.9 as of June 30, 2020. 5 Generally based on collateral values upon origination.As of June 30, 2020, the Company has no exposure to leveraged lending, shared national credits, energy exploration or credit cards.Income Statement SummaryNet interest income was 11.5 million for the quarter ended June 30, 2020, a decrease of 66,000, or 0.6, compared to the quarter ended March 31, 2020, and an increase of 700,000, or 6. 