AP NEWS

PCSB Financial Corporation Announces Fourth Quarter Results and Declares Quarterly Cash Dividend

August 2, 2018

YORKTOWN HEIGHTS, N.Y., Aug. 02, 2018 (GLOBE NEWSWIRE) -- PCSB Financial Corporation (the “Company”) (NASDAQ: PCSB), parent of PCSB Bank (the “Bank”), today announced net income of $2.7 million, or $0.16 per basic and diluted share, for the three months ended June 30, 2018 compared to $2.2 million, or $0.13 per basic and diluted share, for the three months ended March 31, 2018 and a loss of $1.8 million for the three months ended June 30, 2017. For the year ended June 30, 2018, net income was $6.6 million, or $0.39 per basic and diluted share, compared to $3.2 million for the year ended June 30, 2017.

The following nonrecurring items were recorded in the current quarter:

-- Interest income of $879,000 recorded upon the pay-off of two nonaccrual loans -- A $370,000 loss on a receivable -- A $63,000 gain on sale of securities

On a non-GAAP basis, which excludes certain nonrecurring items, including those discussed above, the Company recorded net income of $2.2 million and $7.6 million for the three months and year ended June 30, 2018, or $0.13 and $0.46 per diluted share, respectively. This compares to non-GAAP net income of $1.5 million and $5.2 million for the three months and year ended June 30, 2017, respectively. Reconciliations of GAAP to non-GAAP measures appear at the end of this release.

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

President’s CommentsCommenting 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 progress and successful achievements as we completed our first full year as a public company. Some of these accomplishments include fourth quarter net income of $2.7 million, the highest quarterly income in the Company’s history, a $92.7 million, or 11.4%, year-over-year increase in net loans and a 16.7% increase in net interest income. Problem assets continue to decline as the ratio of non-performing assets to total assets fell by more than half to 0.44% from 0.91% a year ago. Additionally, as the Federal Reserve increased the Fed Funds Rate by 1.75%, the Bank’s average cost of funds, at 0.55%, increased minimally year-over-year. As we head into fiscal year 2019, we hope to build on these results by continuing to grow the balance sheet with loans while maintaining high credit quality standards. I am also pleased to announce that our Board of Directors approved our second quarterly cash dividend of $0.03 per share.”

Income Statement SummaryNet interest income increased $2.0 million, or 21.6%, to $11.4 million for the three months ended June 30, 2018, compared to the same period in 2017 and increased $1.3 million or 12.7% from the previous quarter. The increase in net interest income compared to the prior year is a result of a $44.2 million increase in average net interest earning assets and a 43-basis point increase in the net interest margin. The increase in net interest earning assets is due primarily to the deployment of the capital raised in the initial public offering into loans receivable and investments. The net interest margin was 3.23% for the three months ended June 30, 2018, an increase from 2.80% for the three months ended June 30, 2017 and 2.99% for the three months ended March 31, 2018. Included in current quarter net interest income is $879,000 of interest income recorded from the pay-off of two nonaccrual loans. Excluding this interest, net interest margin for the quarter would have been 2.98%, an increase of 18 basis points from the prior year and a decrease of 1 basis point from the prior quarter.

The provision for loan losses was $25,000 for the three months June 30, 2018 compared to no provision expense for the same period in 2017. The provision for loan losses decreased $29,000 compared to prior quarter due primarily to recoveries realized in the current quarter. Recoveries, net of charge-offs, were $255,000 for the three months ended June 30, 2018 compared to $99,000 for the three months ended March 31, 2018 and $320,000 for the three months ended June 30, 2017. Loans classified as substandard and doubtful decreased $4.2 million, or 21.4%, to $15.4 million at June 30, 2018 from $19.6 million at March 31, 2018 and decreased $9.7 million, or 38.8%, from $25.1 million at June 30, 2017. Non-performing loans were 0.66% of total loans receivable as of June 30, 2018, down from 0.80% as of March 31, 2018 and 1.48% as of June 30, 2017.

Noninterest income decreased $46,000 to $601,000 for the three months ended June 30, 2018 compared to the same period in 2017, due primarily to $142,000 of gains on the sale of foreclosed real estate recorded in the quarter ended June 30, 2017, partially offset by $63,000 of gains on the sale of securities recorded in the current quarter and a $45,000 increase in deposit-related fee income. Noninterest income increased $89,000 from the three months ended March 31, 2018, due primarily to $63,000 of gains on the sale of securities realized in the current quarter.

Noninterest expense decreased $4.6 million to $8.3 million for the three months ended June 30, 2018 compared to the same period in 2017 and increased $431,000 compared to the three months ended March 31, 2018. The $4.6 million decrease was caused primarily by a $5.0 million contribution expense recognized in the prior year related to the establishment of the PCSB Community Foundation, partially offset by a $370,000 loss recorded on a receivable in the current quarter. All other operating expenses were largely unchanged compared to the prior year quarter as increases in salaries and employee benefits, as well as increases in Director and Officer insurance expense and other professional fees associated with being a public company, were primarily offset by lower FDIC assessments, advertising costs and expenses on foreclosed real estate. The $431,000 increase in noninterest expense from the three months ended March 31, 2018 was due primarily to a $370,000 loss recorded on a receivable in the current quarter.

Income tax expense was $1.1 million for the three months ended June 30, 2018 compared to an income tax benefit of $1.0 million for the same period in 2017. The effective income tax rate was 28.7% for the three months ended June 30, 2018 as compared to 36.2% for the three months ended June 30, 2017. Income tax expense increased $484,000 compared to the three months ended March 31, 2018 due primarily to higher net income before income tax expense, partially offset by a $182,000 deferred tax re-measurement benefit recorded in the prior quarter.

Balance Sheet SummaryTotal assets increased $53.7 million to $1.48 billion at June 30, 2018 from $1.43 billion at June 30, 2017. This increase was due primarily to an increase of $92.7 million, or 11.4%, in net loans receivable, partially offset by a decrease of $36.8 million in total investment securities. The $92.7 million increase in net loans included increases of $57.6 million in commercial mortgage loans, $32.8 million in residential mortgage loans, and $11.0 million in commercial loans, partially offset by decreases of $5.1 million in construction loans and $4.5 million in home equity lines of credit. Loan growth was funded by a decrease in investment securities as well as an increase in deposits.

Total liabilities increased $46.0 million to $1.19 billion at June 30, 2018 from $1.15 billion at June 30, 2017. This increase was due primarily to a $69.0 million increase in deposits, partially offset by a $23.8 million decrease in advances from FHLB.

Total shareholders’ equity increased $7.8 million to $287.6 million at June 30, 2018 from $279.8 million at June 30, 2017. This increase was due primarily to net income of $6.6 million and a $2.2 million reduction in unearned ESOP shares for plan shares earned during the period, partially offset by other comprehensive losses of $618,000 due largely to increased unrealized losses in the available for sale investment securities portfolio driven by increased market interest rates, as well as $504,000 of cash dividends paid. At June 30, 2018, the Company’s book value per share and tangible book value per share were $15.83 and $15.47, respectively, compared to $15.41 and $15.04, respectively, at June 30, 2017. 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 June 30, 2018, the Bank was considered “well capitalized” under applicable regulatory guidelines.

DividendThe Board of Directors has declared a regular quarterly cash dividend of $0.03 per share. The dividend is payable on or about August 31, 2018 to stockholders of record on August 17, 2018.

Equity Incentive PlanThe Company has sought and received the New York State Department of Financial Services’ requisite non-objection to its proposed 2018 Equity Incentive Plan and will seek stockholder approval of the Plan at its 2018 Annual Meeting of Stockholders scheduled for October 24, 2018.

About PCSB Financial Corporation and PCSB BankPCSB 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. RobertoChairman, President and Chief Executive Officer(914) 248-7272

PCSB Financial Corporation and SubsidiariesConsolidated Balance Sheets (unaudited)(amounts in thousands, except share data)

June 30, June 30, 2018 2017 ----------- ----------- ASSETS Cash and due from banks $ 60,684 $ 59,115 Federal funds sold 1,461 1,371 - --------- - --------- Cash and cash equivalents 62,145 60,486 Investment Securities: Held to maturity investment securities, at amortized cost 353,183 383,551 (fair value of $343,188 and $383,588, respectively) Available for sale securities, at fair value 105,504 111,889 - --------- - --------- Total investment securities 458,687 495,440 Loans receivable, net of allowance for loan losses of $4,904 and $5,150, 902,336 809,648 respectively Accrued interest receivable 4,358 3,693 Federal Home Loan Bank stock 2,050 3,132 Premises and equipment, net 11,598 12,959 Deferred tax asset, net 2,622 4,770 Foreclosed real estate 460 977 Bank-owned life insurance 23,747 23,179 Goodwill 6,106 6,106 Other intangible assets 433 559 Other assets 5,645 5,509 - --------- - --------- Total assets $ 1,480,187 $ 1,426,458 - --------- - --------- LIABILITIES AND SHAREHOLDERS’ EQUITY Interest bearing deposits $ 1,025,574 $ 952,109 Non-interest bearing deposits 131,883 136,352 - --------- - --------- Total deposits 1,157,457 1,088,461 Mortgage escrow funds 8,803 8,084 Advances from Federal Home Loan Bank 18,841 42,598 Other liabilities 7,527 7,469 - --------- - --------- Total liabilities 1,192,628 1,146,612 - --------- - --------- Commitments and contingencies - - Preferred stock ($0.01 par value, 10,000,000 shares authorized, no shares issued - - or outstanding as of June 30, 2018 and June 30, 2017, respectively) Common stock ($0.01 par value, 200,000,000 shares authorized, 18,165,110 shares 182 182 issued and outstanding as of June 30, 2018 and June 30, 2017, respectively) Additional paid in capital 179,045 177,993 Retained earnings 128,365 121,148 Unallocated common stock of Employee Stock (13,083) (14,262) Ownership Plan (“ESOP”) Accumulated other comprehensive loss, net of (6,950) (5,215) income taxes - --------- - --------- Total shareholders’ equity 287,559 279,846 - --------- - --------- Total liabilities and shareholders’ equity $ 1,480,187 $ 1,426,458 - --------- - ---------

PCSB Financial Corporation and SubsidiariesConsolidated Statements of Operations (unaudited)(amounts in thousands, except share and per share data)

Three Months Ended Year Ended June 30, June 30, ------------------------ ---------------------- 2018 2017 2018 2017 ------------ --------- ------------ -------- Interest and dividend income Loans receivable $ 10,706 $ 8,408 $ 37,798 $ 33,664 Investment securities 2,384 2,018 9,266 6,661 Federal funds and other 268 297 896 633 - ---------- - ------- - ---------- - ------ Total interest and dividend income 13,358 10,723 47,960 40,958 - ---------- - ------- - ---------- - ------ Interest expense Deposits 1,600 1,244 5,554 5,083 FHLB advances 326 74 769 210 - ---------- - ------- - ---------- - ------ Total interest expense 1,926 1,318 6,323 5,293 - ---------- - ------- - ---------- - ------ Net interest income 11,432 9,405 41,637 35,665 Provision for loan losses 25 - 414 823 - ---------- - ------- - ---------- - ------ Net interest income after provision for loan losses 11,407 9,405 41,223 34,842 Noninterest income Fees and service charges 260 223 1,070 1,178 Gains on sales of securities, net 63 - 236 - Bank-owned life insurance 138 149 568 622 Settlement on acquired loan - - 1,615 Other 140 275 645 669 - ---------- - ------- - ---------- - ------ Total noninterest income 601 647 2,519 4,084 Noninterest expense Salaries and employee benefits 4,844 4,712 19,235 16,901 Occupancy and equipment 1,289 1,367 5,193 5,864 Charitable foundation contribution - 5,000 - 5,000 Professional fees 452 450 1,709 1,308 Advertising - 165 456 529 Postage, printing, stationary and supplies 143 143 578 547 FDIC assessment 93 77 328 558 Amortization of intangible assets 29 34 126 143 Other operating expenses 1,414 911 4,491 3,581 - ---------- - ------- - ---------- - ------ Total noninterest expense 8,264 12,859 32,116 34,431 - ---------- - ------- - ---------- - ------ Net income (loss) before income tax expense 3,744 (2,807) 11,626 4,495 Income tax expense (benefit) 1,075 (1,017) 5,022 1,266 - ---------- - ------- - ---------- - ------ Net income (loss) $ 2,669 $ (1,790) $ 6,604 $ 3,229 - ---------- - ------- - ---------- - ------ Earnings per common share: Basic $ 0.16 n/a $ 0.39 n/a Diluted $ 0.16 n/a $ 0.39 n/a Weighted average common share - basic and diluted 16,844,747 n/a 16,802,894 n/a

PCSB Financial Corporation and SubsidiariesNet Interest Margin Analysis (unaudited)(dollar amounts in thousands)

Three months ended June 30, ------------------------------------------------------------------- 2018 2017 ----------------------------- ----------------------------------- Average Interest Average Average Interest Balance / Rate Balance / Average Rate Dividends Dividends ----------- -------- ------ ----------- -------- ------------ Assets: Loans receivable $ 900,998 $ 10,706 4.75% $ 782,658 $ 8,408 4.3% Investment securities 465,206 2,384 2.05 447,826 2,018 1.8 Other interest-earning 51,605 268 2.09 111,821 297 1.07 assets - --------- - ------ - --------- - ------ Total interest-earning 1,417,809 13,358 3.77 1,342,305 10,723 3.20 assets - ------ - ------ Non-interest-earning 57,004 84,528 assets - --------- - --------- Total assets $ 1,474,813 $ 1,426,833 - --------- - --------- Liabilities and equity: NOW accounts $ 115,711 51 0.18 $ 148,361 53 0.15 Money market accounts 46,104 70 0.61 30,067 20 0.26 Savings accounts and 484,463 293 0.24 521,739 319 0.24 escrow Time deposits 343,027 1,186 1.39 298,694 852 1.14 - --------- - ------ - --------- - ------ Total interest-bearing 989,305 1,600 0.65 998,861 1,244 0.51 deposits Federal Home Loan Bank 66,740 326 1.96 25,895 74 1.16 advances - --------- - ------ - --------- - ------ Total interest-bearing 1,056,045 1,926 0.73 1,024,756 1,318 0.52 liabilities - ------ - ------ Non-interest-bearing 125,898 126,987 deposits Other non-interest-bearing 6,671 8,929 liabilities - --------- - --------- Total liabilities 1,188,614 1,160,672 Total shareholders’ 286,199 266,161 equity - --------- - --------- Total liabilities and shareholders’ equity $ 1,474,813 $ 1,426,833 - --------- - --------- Net interest income $ 11,432 $ 9,405 - ------ - ------ Interest rate spread 3.04 2.68 (1) Net interest margin (2) 3.23 2.80 Average interest-earning assets to 134.26% 130.99% interest-bearing liabilities (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 SubsidiariesNet Interest Margin Analysis (unaudited)(dollar amounts in thousands)

Year ended June 30, ------------------------------------------------------------ 2018 2017 ----------------------------- ----------------------------- Average Interest Average Average Interest Average Balance / Rate Balance / Rate Dividends Dividends ----------- -------- ------ ----------- -------- ------ Assets: Loans receivable $ 846,353 $ 37,798 4.47% $ 773,590 $ 33,664 4.35% Investment securities 474,201 9,266 1.95 389,910 6,661 1.71 Other interest-earning assets 54,528 896 1.64 74,149 633 0.85 - --------- - ------ - --------- - ------ Total interest-earning assets 1,375,082 47,960 3.49 1,237,649 40,958 3.31 - ------ - ------ Non-interest-earning assets 57,696 64,935 - --------- - --------- Total assets $ 1,432,778 $ 1,302,584 - --------- - --------- Liabilities and equity: NOW accounts $ 113,952 197 0.17 $ 125,818 195 0.16 Money market accounts 36,917 163 0.44 31,260 83 0.26 Savings accounts and escrow 502,310 1,223 0.24 525,486 1,289 0.25 Time deposits 315,652 3,971 1.26 313,334 3,516 1.12 - --------- - ------ - --------- - ------ Total interest-bearing deposits 968,831 5,554 0.57 995,898 5,083 0.52 Federal Home Loan Bank advances 42,719 769 1.8 15,911 210 1.32 - --------- - ------ - --------- - ------ Total interest-bearing liabilities 1,011,550 6,323 0.63 1,011,809 5,293 0.52 - ------ - ------ Non-interest-bearing deposits 130,196 126,666 Other non-interest-bearing liabilities 7,360 13,083 - --------- - --------- Total liabilities 1,149,106 1,151,558 Total shareholders’ equity 283,672 151,026 - --------- - --------- Total liabilities and shareholders’ equity $ 1,432,778 $ 1,302,584 - --------- - --------- Net interest income $ 41,637 $ 35,665 - ------ - ------ Interest rate spread (1) 2.86 2.79 Net interest margin (2) 3.03 2.88 Average interest-earning assets to 135.94% 122.32% interest-bearing liabilities (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 SubsidiariesCondensed Financial Information (unaudited)(amounts in thousands, except per share data)

As of --------------------------------------------------------------- June 30, March 31, December September June 30, 31, 30, 2018 201 2012017 2017 8 7 ----------- -- -- ---------- ---------- Condensed Balance Sheets Cash and cash equivalents $ 62,145 $ 36,505 $ 77,106 $ 34,733 $ 60,486 Total investment securities 458,687 473,683 470,360 475,823 495,440 Loans receivable, net 902,336 886,718 838,120 839,963 809,648 Other assets 57,019 60,063 57,682 61,187 60,884 - --------- - --------- - --------- - --------- - --------- Total assets $ 1,480,187 $ 1,456,969 $ 1,443,268 $ 1,411,706 $ 1,426,458 - --------- - --------- - --------- - --------- - --------- Total deposits and escrow $ 1,166,260 $ 1,095,581 $ 1,122,558 $ 1,086,662 $ 1,096,545 Advances from Federal Home Loan Bank 18,841 68,872 30,720 35,750 42,598 Other liabilities 7,527 7,856 7,579 7,209 7,469 - --------- - --------- - --------- - --------- - --------- Total liabilities 1,192,628 1,172,309 1,160,857 1,129,621 1,146,612 Total shareholders’ equity 287,559 284,660 282,411 282,085 279,846 - --------- - --------- - --------- - --------- - --------- Total liabilities and shareholders’ equity $ 1,480,187 $ 1,456,969 $ 1,443,268 $ 1,411,706 $ 1,426,458 - --------- - --------- - --------- - --------- - ---------

Quarter Ended Year Ended ------------------------------------------------ ------------------ June 30, March December September June 30, June 30, June 30, 31, 31, 30, 2018 201 2012017 2017 2018 2017 8 7 -------- -- -- ------- ------- -------- -------- Condensed Income Statements Interest income $ 13,358 $ 11,648 $ 11,657 $ 11,297 $ 10,723 $ 47,960 $ 40,958 Interest expense 1,926 1,505 1,471 1,421 1,318 6,323 5,293 - ------ - ------ - ------ - ------ - ------ - ------ - ------ Net interest income 11,432 10,143 10,186 9,876 9,405 41,637 35,665 Provision for loan losses 25 54 200 135 - 414 823 Noninterest income 601 512 692 714 647 2,519 4,084 Noninterest expense 8,264 7,833 8,125 7,894 12,859 32,116 34,431 - ------ - ------ - ------ - ------ - ------ - ------ - ------ Income before income tax expense 3,744 2,768 2,553 2,561 (2,807 ) 11,626 4,495 (benefit) Income tax expense (benefit) 1,075 591 2,551 805 (1,017 ) 5,022 1,266 - ------ - ------ - ------ - ------ - ------ - ------ - ------ Net income (loss) $ 2,669 $ 2,177 $ 2 $ 1,756 $ (1,790 ) $ 6,604 $ 3,229 - ------ - ------ - ------ - ------ - ------ - ------ - ------ Earnings per share: Basic $ 0.16 $ 0.13 $ 0.00 $ 0.10 n/a $ 0.39 n/a Diluted $ 0.16 $ 0.13 $ 0.00 $ 0.10 n/a $ 0.39 n/a

PCSB Financial Corporation and SubsidiariesSelected Financial Data (unaudited)

----------------------------------------------------- ------------------ Quarter Ended Year Ended ----------------------------------------------------- ------------------ June 30, March 31, December Septembe June 30, June 30, June 30, 31, r 30, 2018 2018 2017 2017 2017 2018 2017 -------- ---- ---- -------- ------- -------- -------- Performance Ratios (1): Return on average 0.72% 0.62% 0.00% 0.49% (0.50%) 0.46% 0.25% assets Return on average 3.73% 3.06% 0.00% 2.44% (2.69%) 2.33% 2.14% equity Interest rate 3.04% 2.82% 2.85% 2.74% 2.69% 2.86% 2.79% spread Net interest margin 3.23% 2.99% 3% 2.89% 2.81% 3.03% 2.88% Adjusted Efficiency 71.17% 73.51% 74.69% 75.78% 78.18% 73.54% 78.22% ratio (2) Noninterest income 0.16% 0.14% 0.20% 0.20% 0.18% 0.18% 0.31% to average assets Noninterest expense 2.24% 2.21% 2.3% 2.2% 3.6% 2.24% 2.64% to average assets Average interest-earning assets to 134.26% 136.59% 136.51% 136.5% 130.71% 135.94% 122.32% average interest-bearing liabilities Average equity to 19.41% 20.08% 20.00% 20.10% 18.65% 19.80% 11.59% average assets

PCSB Financial Corporation and SubsidiariesSelected Financial Data (unaudited) - Continued(dollar amounts in thousands, except share and per share data)

---------------------------------------------------------------------- As of or for the quarter ended ---------------------------------------------------------------------- June 30, March 31, December 31, September June 30, 30, 2018 2012017 2017 2017 8 -------------- -- ----------- ------------ ------------ Loans to deposits 77.96% 81.5% 75.21% 77.65% 74.38% Share Data: Shares outstanding 18,165,110 18,165,110 18,165,110 18,165,110 18,165,110 Book value per common share $ 15.83 $ 15.67 $ 15.55 $ 15.53 $ 15.41 Tangible book value per common share $ 15.47 $ 15.31 $ 15.18 $ 15.16 $ 15.04 (3) Asset Quality Ratios: Non-performing assets $ 6,462 $ 7,307 $ 8,191 $ 12,354 $ 13,049 Allowance for loan losses as a percent 0.54% 0.52% 0.53% 0.62% 0.63% of total loans receivable Allowance for loan losses as a percent 81.71% 64.54% 54.58% 48.53% 42.66% of non-performing loans Non-performing loans as a percent of 0.66% 0.80% 0.97% 1.35% 1.48% total loans receivable, net Non-performing assets as a percent of 0.44% 0.5% 0.57% 0.88% 0.91% total assets Net charge-offs (recoveries) $ (255) $ (99) $ 997 $ 17 $ (320) Net charge-offs (recoveries) to average (0.11%) (0.05%) 0.48% 0.01% (0.16%) outstanding loans during the period (1) Capital Ratios(4): Tier 1 capital (to adjusted total 13.61% 13.97% 13.84% 13.52% 13.65% assets) Common equity Tier 1 capital (to 21.11% 21.16% 21.64% 21.13% 21.69% risk-weighted assets) Tier 1 capital (to risk-weighted 21.11% 21.16% 21.64% 21.13% 21.69% assets) Total capital (to risk-weighted assets) 21.62% 21.65% 22.13% 21.71% 22.27% (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. (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. (4)Represents Bank ratios.

PCSB Financial Corporation and SubsidiariesLoan and Deposit Portfolio (unaudited)(amounts in thousands)

As of --------------------------------------------------------------- June 30, March 31, December September June 30, 31, 30, 2018 2018 2017 2017 2017 ----------- ----------- ----------- ----------- ----------- Mortgage loans: Residential mortgages $ 250,578 $ 253,847 $ 213,716 $ 215,551 $ 217,778 Commercial mortgage 495,265 484,810 481,169 469,983 437,651 Construction 17,352 16,098 16,379 23,104 22,404 Net deferred loan origination costs 1,041 1,203 210 384 397 - --------- - --------- - --------- - --------- - --------- 764,236 755,958 711,474 709,022 678,230 Commercial and consumer loans: Commercial loans 104,135 96,096 89,941 93,180 93,631 Home equity credit lines 37,395 38,220 40,158 42,044 41,927 Consumer and overdrafts 745 344 251 213 233 Net deferred loan origination costs 729 724 767 772 777 - --------- - --------- - --------- - --------- - --------- 143,004 135,384 131,117 136,209 136,568 - --------- - --------- - --------- - --------- - --------- Total loans receivable 907,240 891,342 842,591 845,231 814,798 Allowance for loan loss (4,904) (4,624) (4,471) (5,268) (5,150) - --------- - --------- - --------- - --------- - --------- Loans receivable, net $ 902,336 $ 886,718 $ 838,120 $ 839,963 $ 809,648 - --------- - --------- - --------- - --------- - --------- As of --------------------------------------------------------------- June 30, March 31, December September June 30, 31, 30, 2018 2018 2017 2017 2017 ----------- ----------- ----------- ----------- ----------- Demand deposits $ 131,883 $ 127,319 $ 150,830 $ 133,461 $ 136,361 Now accounts 117,875 114,899 118,462 110,646 115,527 Money market accounts 49,885 40,374 31,021 28,590 29,097 Savings 465,441 482,968 502,469 504,291 512,697 Time deposits 392,373 322,425 311,547 304,719 294,779 - --------- - --------- - --------- - --------- - --------- Total deposits $ 1,157,457 $ 1,087,985 $ 1,114,329 $ 1,081,707 $ 1,088,461 - --------- - --------- - --------- - --------- - ---------

PCSB Financial Corporation and SubsidiariesReconciliation of GAAP to Non-GAAP Measures (unaudited)(dollar amounts in thousands, except share and per share data)

Three Months Ended Year Ended June 30, June 30, ----------------------- ----------------------- 2018 2017 2018 2017 ------------ --------- ------------ --------- Computation of Adjusted Net Income and Earnings Per Share Net income (loss) $ 2,669 $ (1,790) $ 6,604 $ 3,229 Adjustments (1): Losses on other 292 - 424 - receivables Nonaccrual loan (694) - (788) - interest earned Gain on sale of (49) - (163) - securities Deferred tax - - 1,570 - re-measurement charge Charitable foundation - 3,300 - 3,300 contribution Defined benefit pension plan - - - (607) curtailment Write-down of operating lease - - - 344 obligation Settlement on acquired - - - (1,066) loan - ---------- - ------- - ---------- - ------- Adjusted net income $ 2,218 $ 1,510 $ 7,647 $ 5,200 - ---------- - ------- - ---------- - ------- Average number of common shares outstanding used to 16,844,747 n/a 16,802,894 n/a calculate basic earnings per common share Adjusted earnings per common share $ 0.13 n/a $ 0.46 n/a (basic and diluted): Computation of Adjusted Effective Tax Rate Net income (loss) before income tax $ 3,744 $ (2,807) $ 11,626 $ 4,495 expense Income tax expense 1,075 (1,017) 5,022 1,266 (benefit) Adjustments: Deferred tax - - (1,570) - re-measurement charge - ---------- - ------- - ---------- - ------- Adjusted income tax $ 1,075 $ (1,017) $ 3,452 $ 1,266 expense (benefit) Effective tax rate 28.7% 36.2% 43.2% 28.2% Adjusted effective tax 28.7% 36.2% 29.7% 28.2% rate (1)Amounts included in income before income tax expense are presented net of tax.

PCSB Financial Corporation and SubsidiariesReconciliation of GAAP to Non-GAAP Measures (unaudited) - Continued(dollar amounts in thousands, except share and per share data)

------------------------------------------------- -------------------- Quarter Ended Year Ended ------------------------------------------------- -------------------- June 30, March December September June 30, June 30, June 30, 31, 31, 30, 2018 201 2012017 2017 2018 2017 8 7 -------- -- -- ------- ------- --------- --------- Computation of Efficiency Ratio Noninterest expense $ 8,264 $ 7,833 $ 8,125 $ 7,894 $ 12,859 $ 32,116 $ 34,431 Adjustments: Losses on other receivables (370) - (200) - - (570) - PCSB Community Foundation contribution - - - - (5,000) - (5,000) Defined benefit pension plan - - - - - - 919 curtailment Write-down of operating lease - - - - - - (521) obligation - ------ - ------ - ------ - ------ - ------- - ------- - ------- Adjusted noninterest expense $ 7,894 $ 7,833 $ 7,925 $ 7,894 $ 7,859 $ 31,546 $ 29,829 - ------ - ------ - ------ - ------ - ------- - ------- - ------- Net interest income $ 11,432 $ 10,143 $ 10,186 $ 9,876 $ 9,405 $ 41,637 $ 35,665 Noninterest income 601 512 692 714 647 2,519 4,084 - ------ - ------ - ------ - ------ - ------- - ------- - ------- Total revenue 12,033 10,655 10,878 10,590 10,052 44,156 39,749 Adjustments: Nonaccrual loan interest earned (879) - (142) - - (1,021) - Gain on sale of securities (63) - - (173) - (236) - Settlement on acquired loan - - - - - - (1,615) - ------ - ------ - ------ - ------ - ------- - ------- - ------- Adjusted operating revenue $ 11,091 $ 10,655 $ 10,736 $ 10,417 $ 10,052 $ 42,899 $ 38,134 - ------ - ------ - ------ - ------ - ------- - ------- - ------- Efficiency ratio 68.68% 73.51% 74.69% 74.54% 127.92% 72.73% 86.62% Adjusted efficiency ratio 71.17% 73.51% 73.82% 75.78% 78.18% 73.54% 78.22%

PCSB Financial Corporation and SubsidiariesReconciliation of GAAP to Non-GAAP Measures (unaudited) - Continued(dollar amounts in thousands, except share and per share data)

As of -------------------------------------------------------------------- June 30, March 31, December 31, September June 30, 30, 2018 201 2012017 2017 8 7 ------------ -- -- ----------- ----------- Computation of Tangible Book Value per Common Share Total shareholders’ equity $ 287,559 $ 284,660 $ 282,411 $ 282,085 $ 279,846 Adjustments: Preferred stock - - - - - - ---------- - ---------- - ---------- - ---------- - ---------- Common shareholders’ equity 287,559 284,660 282,411 282,085 279,846 Adjustments: Goodwill (6,106) (6,106) (6,106) (6,106) (6,106) Other intangible assets (433) (463) (495) (527) (559) - ---------- - ---------- - ---------- - ---------- - ---------- Tangible common shareholders’ equity $ 281,020 $ 278,091 $ 275,810 $ 275,452 $ 273,181 Common shares outstanding 18,165,110 18,165,110 18,165,110 18,165,110 18,165,110 Book value per share $ 15.83 $ 15.67 $ 15.55 $ 15.53 $ 15.41 Adjustments: Effects of intangible assets (0.36) (0.36) (0.37) (0.37) (0.37) - ---------- - ---------- - ---------- - ---------- - ---------- Tangible book value per common share $ 15.47 $ 15.31 $ 15.18 $ 15.16 $ 15.04

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