Regulatory Matters

9 Months Ended

Mar. 31, 2020

Banking And Thrift [Abstract]

Regulatory Matters

Note 8. Regulatory Matters

The following is a summary of the Bank’s actual capital amounts and ratios as of March 31, 2020 and June 30, 2019, compared to the required ratios for minimum capital adequacy and for classification as well capitalized (dollars in thousands). As a result of the Economic Growth, Regulatory Relief, and Consumer Protection Act passed by Congress in 2018, the Company is no longer subject to consolidated capital requirements, as the Company’s total consolidated assets do not exceed $3 billion.

											To Be Well Capitalized
						For Capital					Under Prompt
						Adequacy					Corrective Action
	Bank Actual					Purposes					Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
March 31, 2020
PCSB Bank
Leverage (Tier 1)	$	217,068		13.2	%	$	65,825		4.0	%	$	82,282		5.0	%
Risk-based:
Common Tier 1		217,068		16.8			58,154		4.5			84,001		6.5
Tier 1		217,068		16.8			77,539		6.0			103,386		8.0
Total		225,414		17.4			103,386		8.0			129,232		10.0
June 30, 2019
PCSB Bank
Leverage (Tier 1)	$	209,885		13.8	%	$	60,774		4.0	%	$	75,968		5.0	%
Risk-based:
Common Tier 1		209,885		18.0			52,579		4.5			75,948		6.5
Tier 1		209,885		18.0			70,105		6.0			93,474		8.0
Total		215,549		18.4			93,474		8.0			116,842		10.0

In addition to the ratios above, the Basel III Capital Rules have established that community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5% of total risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonus payments to executive officers.

Management believes that as of March 31, 2020 and June 30, 2019, the Bank met all capital adequacy requirements to which it was subject, including the capital conservation buffer of 2.5%, as of March 31, 2020 and June 30, 2019, respectively. Further, the most recent FDIC notification categorized the Bank as a well-capitalized institution under the prompt corrective action regulations. There have been no conditions or events since that notification that management believes have changed the Bank’s capital classification.