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Greene County Bancorp, Inc. Reports Net Income of $18.0 million for the Nine Months Ended March 31, 2024 and opens Capital Region Banking Center in Albany, New York

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Greene County Bancorp, Inc. reported net income of $18.0 million for the nine months ended March 31, 2024. The company also opened a new Capital Region Banking Center in Albany, New York. Total assets reached $2.9 billion, with net loans at $1.5 billion. Despite a challenging economic environment, the company remains focused on strategic growth and building relationships in various business lines. Net interest income decreased due to interest rate environment challenges. The adoption of CECL accounting standard impacted the company's financials. Noninterest income increased, while noninterest expenses decreased. The company's balance sheet reflected growth in total assets, loans, and deposits. Shareholders' equity also saw an increase.
Greene County Bancorp, Inc. ha riportato un utile netto di 18,0 milioni di dollari per i nove mesi conclusisi il 31 marzo 2024. L'azienda ha inoltre inaugurato un nuovo Centro Bancario nella Regione della Capitale ad Albany, New York. Gli asset totali hanno raggiunto i 2,9 miliardi di dollari, con prestiti netti pari a 1,5 miliardi. Nonostante un ambiente economico difficile, l'azienda rimane concentrata sulla crescita strategica e sulla costruzione di relazioni in varie linee di business. Il reddito di interesse netto è diminuito a causa delle sfide del contesto dei tassi di interesse. L'adozione dello standard contabile CECL ha influenzato i risultati finanziari della società. I ricavi da attività non di interesse sono aumentati, mentre le spese non di interesse sono diminuite. Il bilancio della società ha riflettuto la crescita in termini di asset totali, prestiti e depositi. Anche il patrimonio netto degli azionisti ha registrato un aumento.
Greene County Bancorp, Inc. reportó una ganancia neta de $18,0 millones para los nueve meses que finalizaron el 31 de marzo de 2024. La compañía también abrió un nuevo Centro Bancario Capital Region en Albany, Nueva York. Los activos totales alcanzaron los $2,9 mil millones, con préstamos netos de $1,5 mil millones. A pesar de un entorno económico desafiante, la compañía sigue centrada en el crecimiento estratégico y en la construcción de relaciones en diversas líneas de negocio. Los ingresos netos por intereses disminuyeron debido a los desafíos del entorno de tasas de interés. La adopción del estándar contable CECL impactó las finanzas de la empresa. Los ingresos no provenientes de intereses aumentaron, mientras que los gastos no provenientes de intereses disminuyeron. El balance de la compañía reflejó un crecimiento en los activos totales, los préstamos y los depósitos. El patrimonio de los accionistas también experimentó un aumento.
그린 카운티 밴코프, Inc.는 2024년 3월 31일로 끝나는 아홉 달 동안 1,800만 달러의 순수익을 보고했습니다. 이 회사는 뉴욕 주 올버니에 새로운 캐피탈 리전 뱅킹 센터를 개설했습니다. 총 자산은 29억 달러에 이르렀으며, 순 대출은 15억 달러였습니다. 경제 환경이 어려운 상황에서도 회사는 전략적 성장과 다양한 사업 라인에서의 관계 구축에 집중하고 있습니다. 이자 환경의 도전으로 인해 순 이자 수입이 감소했습니다. CECL 회계 기준의 채택은 회사의 재무에 영향을 미쳤습니다. 비이자 수입은 증가했으며 비이자 비용은 감소했습니다. 회사의 대차대조표는 총 자산, 대출 및 예금의 성장을 나타냈습니다. 주주 자본도 증가했습니다.
Greene County Bancorp, Inc. a déclaré un bénéfice net de 18,0 millions de dollars pour les neuf mois se terminant le 31 mars 2024. La société a également ouvert un nouveau Centre Bancaire de la Région Capitale à Albany, New York. L'actif total a atteint 2,9 milliards de dollars, avec des prêts nets s'élevant à 1,5 milliard. Malgré un environnement économique difficile, la société reste concentrée sur la croissance stratégique et l'établissement de relations dans diverses lignes métiers. Le revenu net d'intérêts a diminué en raison des défis de l'environnement des taux d'intérêt. L'adoption de la norme comptable CECL a impacté les résultats financiers de la société. Les revenus non liés aux intérêts ont augmenté tandis que les dépenses non liées aux intérêts ont diminué. Le bilan de la société a reflété une croissance des actifs totaux, des prêts et des dépôts. Les capitaux propres des actionnaires ont également connu une augmentation.
Greene County Bancorp, Inc. berichtete über einen Nettogewinn von 18,0 Millionen Dollar für die neun Monate bis zum 31. März 2024. Das Unternehmen eröffnete auch ein neues Capital Region Banking Center in Albany, New York. Die Gesamtaktiva erreichten 2,9 Milliarden Dollar, wobei die Nettokredite 1,5 Milliarden Dollar ausmachten. Trotz einer herausfordernden wirtschaftlichen Umgebung konzentriert sich das Unternehmen weiterhin auf strategisches Wachstum und den Aufbau von Beziehungen in verschiedenen Geschäftsbereichen. Das Nettozinseinkommen verringerte sich aufgrund von Herausforderungen im Zinsumfeld. Die Einführung des CECL-Buchhaltungsstandards hatte Auswirkungen auf die Finanzen des Unternehmens. Die Nichtzins-Erträge stiegen, während die Nichtzins-Ausgaben sanken. Die Bilanz des Unternehmens zeigte Wachstum bei den Gesamtaktiva, Krediten und Einlagen. Auch das Eigenkapital der Aktionäre verzeichnete einen Anstieg.
Positive
  • Net income of $18.0 million for the nine months ended March 31, 2024
  • Total assets of $2.9 billion and net loans of $1.5 billion
  • Challenges in the current interest rate environment affecting net interest income
  • CECL accounting standard adoption impacting financials
  • Increase in noninterest income and decrease in noninterest expenses
  • Growth in total assets, loans, and deposits on the balance sheet
  • Increase in shareholders' equity to $199.2 million
Negative
  • Net income decreased by $6.3 million compared to the same period in 2023
  • Net interest income decreased due to interest rate challenges
  • Negative impact on financials from CECL accounting standard adoption

Insights

The reported decline in net income for Greene County Bancorp, Inc. is a vital metric for investors, indicating a 25.9% decrease in profitability for the nine-month period compared to the previous year. This contraction is attributed to the net interest margin compression, a result of the current high-interest rate environment. Notably, the company pursued a strategy to raise deposit rates to retain customers, which consequently increased interest expenses more rapidly than asset repricing could offset.

Investors should be cognizant of the leverage that Greene County Bancorp, Inc. has exercised through brokered deposits to maintain liquidity. This move can be advantageous for supporting loan growth; however, it also carries inherent risks associated with interest rate fluctuations and the cost of funds. The bank's capital region expansion could indicate a strategic move for growth, but it's imperative to monitor how this will balance with the current pressure on net interest margins. Investors should consider both the potential for growth in new markets and the current economic pressures when assessing the bank's future performance.

Within the banking sector, Greene County Bancorp's decision to expand with a non-branch Capital Region Banking Center aligns with an industry trend towards consolidation of services and regional growth. However, this strategic move comes at a time when the company has experienced a decrease in net interest income, which has been a significant revenue driver for most traditional financial institutions.

Considering the customer-centric focus noted in their strategy, it's clear that Greene County Bancorp is aiming to deepen customer relationships and cross-sell services. Despite the current rate challenges, if successful, this approach could translate into stronger customer loyalty and diversified revenue streams. Investors should track customer acquisition and retention metrics in the new Capital Region Banking Center to gauge the effectiveness of this strategy.

The adoption of the CECL model, which requires the estimation of expected credit losses over the life of loans, has led to a recalibration of the bank's allowance for credit losses. Greene County Bancorp's proactive adjustments resulted in a $1.3 million decrease to the allowance for credit losses on loans, displaying improvement in credit quality forecasting. Despite this, overall loan quality remains a central focus as the bank reports a modest increase in loans classified as substandard and special mention.

From a risk perspective, the bank's asset quality metrics, such as nonperforming loans ratio and the provision for credit losses on loans, should be closely monitored by investors. These metrics are especially important in the context of the current economic environment where a rise in interest rates could pressure borrowers and potentially lead to increased defaults.

CATSKILL, N.Y., April 23, 2024 (GLOBE NEWSWIRE) -- Greene County Bancorp, Inc. (the “Company”) (NASDAQ: GCBC), the holding company for The Bank of Greene County and its subsidiary Greene County Commercial Bank, today reported net income for the three and nine months ended March 31, 2024, which is the third quarter of the Company’s fiscal year ending June 30, 2024. Net income for the three and nine months ended March 31, 2024 was $5.9 million, or $0.34 per basic and diluted share, and $18.0 million, or $1.06 per basic and diluted share, respectively, as compared to $8.1 million, or $0.48 per basic and diluted share, and $24.3 million, or $1.43 per basic and diluted share, for the three and nine months ended March 31, 2023, respectively. Net income decreased $6.3 million, or 25.9%, when comparing the nine months ended March 31, 2024 and 2023.

Highlights:

  • Net Income: $18.0 million for the nine months ended March 31, 2024
  • Total Assets: $2.9 billion at March 31, 2024, a new record high
  • Net Loans: $1.5 billion at March 31, 2024, a new record high
  • Return on Average Assets: 0.91% for the nine months ended March 31, 2024
  • Return on Average Equity: 12.69% for the nine months ended March 31, 2024

Donald Gibson, President & CEO stated: “I am proud to report solid net income for the nine months ended March 31, 2024, despite what continues to be a very difficult economic environment with a continued inverted yield curve. We remain focused on our long-term strategy that has served us well. Our strategy is to continue to grow and build deep lasting relationships in all five of our primary lines of business which include retail, commercial, municipal, private banking and investment services. We continue to remain focused on our local markets in the Hudson Valley and Capital Regions in New York State.

To enhance our strategy highlighted above, on March 19, 2024, we opened a new Capital Region Banking Center, located at 3 Winners Circle, Albany, New York. This is our first non-branch office in the Capital Region. We have made tremendous strides in the Capital Region and our new Center is specifically designed to build on that momentum.”

Total consolidated assets for the Company were $2.9 billion at March 31, 2024, primarily consisting of $1.5 billion of net loans and $1.0 billion of total securities available-for-sale and held-to-maturity. Consolidated deposits totaled $2.6 billion at March 31, 2024, consisting of retail, business, municipal and private banking relationships.

Pre-provision for credit losses net income was $19.0 million for the nine months ended March 31, 2024 as compared to the pre-provision for credit losses net income of $23.1 million, for the nine months ended March 31, 2023, a decrease of $4.1 million, or 18.0%, as the Company booked a negative provision for loan losses for the nine months ended March 31, 2023. The decrease in net income was primarily the result of net interest margin compression due to the current interest rate environment. The Company has maintained higher levels of cash liquidity by obtaining brokered deposits, which increased the interest expense on deposits. In an effort to maintain our customer relationships, the Company raised rates paid on deposits, which has been at a faster rate than the Company was able to reprice assets. Interest rates are highly sensitive to factors that are beyond the Company’s control, including competition, the monetary policy of the Federal Reserve, inflation, the volatility of financial markets and geopolitical tensions. Elevated interest rates could continue to increase our cost of funds and negatively impact our net interest margin. The Company believes that increasing deposits rates and maintaining long-term relationships will benefit the Company for continued growth and earnings potential in the future.

Selected highlights for the three and nine months ended March 31, 2024 are as follows:

Net Interest Income and Margin

  • Net interest income decreased $2.9 million to $12.3 million for the three months ended March 31, 2024 from $15.2 million for the three months ended March 31, 2023. Net interest income decreased $8.9 million to $38.1 million for the nine months ended March 31, 2024 from $47.0 million for the nine months ended March 31, 2023. The decrease in net interest income was due to an increase in the average balance of interest-bearing liabilities, which increased $89.5 million and $85.6 million when comparing the three and nine months ended March 31, 2024 and 2023, respectively, and increases in rates paid on interest-bearing liabilities, which increased 118 and 137 basis points when comparing the three and nine months ended March 31, 2024 and 2023, respectively. The decrease in net interest income was partially offset by increases in the average balance of interest-earning assets, which increased $80.5 million and $76.5 million when comparing the three and nine months ended March 31, 2024 and 2023, respectively, and increases in interest rates on interest-earning assets, which increased 53 and 69 basis points when comparing the three and nine months ended March 31, 2024 and 2023, respectively.

    Average loan balances increased $66.7 million and $88.2 million and the yield on loans increased 44 and 58 basis points when comparing the three and nine months ended March 31, 2024 and 2023, respectively. Average securities decreased $34.0 million and $68.9 million and the yield on such securities increased 18 and 61 basis points when comparing the three and nine months ended March 31, 2024 and 2023, respectively. Average interest-bearing bank balances and federal funds increased $49.3 million and $58.3 million and the yield decreased 46 basis points and increased 118 basis points when comparing the three and nine months ended March 31, 2024 and 2023, respectively.

    The cost of NOW deposits increased 132 and 162 basis points, the cost of certificates of deposit increased 208 and 216 basis points, and the cost of savings and money market deposits increased 27 and 18 basis points when comparing the three and nine months ended March 31, 2024 and 2023, respectively. The increase in the cost of interest-bearing liabilities was partly due to growth in the average balances of interest-bearing liabilities of $89.5 million and $85.6 million when comparing the three and nine months ended March 31, 2024 and 2023, respectively. This was due to an increase in NOW deposits of $134.0 million and $164.8 million and an increase in average certificates of deposits of $73.2 million and $48.1 million, partially offset by a decrease in average savings and money market deposits of $95.1 million and $102.0 million and a decrease in average borrowings of $22.6 million and $25.4 million when comparing the three and nine months ended March 31, 2024 and 2023, respectively. Yields on interest-earning assets and costs of interest-bearing deposits increased for the three and nine months ended March 31, 2024, as the Company continues to reprice assets and deposits into the higher interest rate environment. The Company determines interest rates offered on deposit accounts based on current and future economic conditions, competition, liquidity needs and the asset-liability position of the Company, while growing the retention of relationships.
  • Net interest rate spread and margin both decreased when comparing the three and nine months ended March 31, 2024 and 2023. Net interest rate spread decreased 65 and 68 basis points to 1.66% and 1.75% for the three and nine months ended March 31, 2024, as compared to 2.31% and 2.43% for the three and nine months ended March 31, 2023, respectively. Net interest margin decreased 53 and 54 basis points to 1.90% and 1.99% for the three and nine months ended March 31, 2024, as compared to 2.43% and 2.53% for the three and nine months ended March 31, 2023, respectively. The decrease was due to the higher interest rate environment, which caused competitive pressure to increase rates paid on deposits, resulting in higher interest expense. This was partially offset by increases in interest income on loans and securities, as they reprice at higher yields and the interest rates earned on new balances were higher than the low levels from the prior period.
  • Net interest income on a taxable-equivalent basis includes the additional amount of interest income that would have been earned if the Company’s investment in tax-exempt securities and loans had been subject to federal and New York State income taxes yielding the same after-tax income. Tax equivalent net interest margin was 2.20% and 2.66% for the three months ended March 31, 2024 and 2023, respectively, and was 2.25% and 2.73% for the nine months ended March 31, 2024 and 2023, respectively.

CECL Adoption

  • The Company adopted the Current Expected Credit Loss (CECL) accounting standard effective July 1, 2023. As a result of the day-one CECL adjustment, the Company recognized a $1.3 million decrease to the allowance for credit losses on loans, a $503,000 increase to the allowance for credit losses on investment securities held-to-maturity, a $1.5 million increase to the reserve for unfunded loan commitments, and a $510,000 decrease to retained earnings, net of $186,000 in deferred income taxes, compared to fiscal year end June 30, 2023.

Credit Quality and Provision for Credit Losses on Loans

  • Provision for credit losses on loans amounted to $277,000 for the three months ended March 31, 2024 and a benefit of $944,000 for the three month ended March 31, 2023. Provision for credit losses on loans amounted to $922,000 for the nine months ended March 31, 2024 and a benefit of $1.2 million for the nine months ended March 31, 2023. The loan provision for the nine months ended March 31, 2024 was primarily due to the growth in gross loans, offset by improvements in the economic forecasts. The allowance for credit losses on loans to total loans receivable was 1.38% at March 31, 2024 compared to 1.51% at June 30, 2023 and 1.42% at day-one CECL adoption (July 1, 2023).
  • Loans classified as substandard and special mention totaled $51.6 million at March 31, 2024 and $41.9 million at June 30, 2023, an increase of $9.7 million. There were no loans classified as doubtful or loss at March 31, 2024 or June 30, 2023.
  • Net charge-offs on loans amounted to $204,000 and $190,000 for the three months ended March 31, 2024 and 2023, respectively, an increase of $14,000. Net charge-offs on loans totaled $420,000 and $407,000 for the nine months ended March 31, 2024 and 2023, respectively. There were no significant charge offs in any loan segment during the three and nine months ended March 31, 2024.
  • Nonperforming loans amounted to $5.6 million at March 31, 2024 and $5.5 million at June 30, 2023. The activity in nonperforming loans during the period included $482,000 in loan repayments, $93,000 in loans returning to performing status, $182,000 in charge-offs or transfers to foreclosed, and $940,000 of loans placed into nonperforming status. At March 31, 2024 and June 30, 2023, nonperforming assets were 0.21% of total assets. Nonperforming loans were 0.39% of net loans at March 31, 2024 and June 30, 2023.

Noninterest Income and Noninterest Expense

  • Noninterest income increased $353,000, or 11.5%, to $3.4 million for the three months ended March 31, 2024 compared to $3.1 million for the three months ended March 31, 2023. Noninterest income increased $1.1 million, or 12.6%, to $10.2 million for the nine months ended March 31, 2024 compared to $9.1 million for the nine months ended March 31, 2023. The increase during the three and nine months ended March 31, 2024 was primarily due to an increase in fee income earned on customer interest rate swap contracts and income from bank owned life insurance.
  • Noninterest expense decreased $622,000, or 6.3%, to $9.2 million for the three months ended March 31, 2024 compared to $9.9 million for the three months ended March 31, 2023. Noninterest expense decreased $1.2 million, or 4.2%, to $27.4 million for the nine months ended March 31, 2024, compared to $28.6 million for the nine months ended March 31, 2023. The decrease during the three and nine months ended March 31, 2024 was primarily due to a decrease in legal and professional fees, and a benefit from reducing the reserve for unfunded loan commitments included in other expense, as compared to the three and nine months ended March 31, 2023. This was partially offset by the increase in FDIC insurance premiums as compared to the three and nine months ended March 31, 2023.

Income Taxes

  • Provision for income taxes reflects the expected tax associated with the pre-tax income generated for the given period and certain regulatory requirements. The effective tax rate was 5.2% and 9.8% for the three and nine months ended March 31, 2024 and 13.7% and 15.0% for the three and nine months ended March 31, 2023. The statutory tax rate is impacted by the benefits derived from tax-exempt bond and loan income, the Company’s real estate investment trust subsidiary income, and income received on the bank owned life insurance, to arrive at the effective tax rate. The decrease in the current quarter’s effective tax rate primarily reflected a higher mix of tax-exempt income from municipal bonds, tax advantage loans and bank-owned life insurance in proportion to pre-tax income.

Balance Sheet Summary

  • Total assets of the Company were $2.9 billion at March 31, 2024 and $2.7 billion at June 30, 2023, an increase of $173.2 million, or 6.4%.
  • Total cash and cash equivalents for the Company were $255.8 million at March 31, 2024 and $196.4 million at June 30, 2023. The Company has continued to maintain strong capital and liquidity positions as of March 31, 2024.
  • Securities available-for-sale and held-to-maturity for the Company were $1.0 billion at March 31, 2024 and June 30, 2023. Securities purchases totaled $194.5 million during the nine months ended March 31, 2024 and consisted primarily of $158.4 million of state and political subdivision securities, $26.5 million of U.S. Treasury securities, $6.0 million of mortgage-backed securities and $3.6 million of corporate debt securities. Principal pay-downs and maturities during the nine months ended March 31, 2024 amounted to $156.4 million, primarily consisting of $141.1 million of state and political subdivision securities, $2.0 million of collateralized mortgage obligations, and $13.3 million of mortgage-backed securities.
  • Net loans receivable increased $69.6 million, or 5.0%, to $1.5 billion at March 31, 2024 from $1.4 billion at June 30, 2023. The loan growth experienced during the nine months consisted primarily of $42.4 million in commercial real estate loans, $20.6 million in residential real estate loans, and $4.8 million in home equity loans.
  • Deposits totaled $2.6 billion at March 31, 2024 and $2.4 billion at June 30, 2023, an increase of $119.9 million, or 4.9%. NOW deposits increased $194.4 million, or 11.2% and money market deposits increased $1.0 million, or 0.9%, when comparing March 31, 2024 and June 30, 2023. Savings deposits decreased $43.3 million, or 14.5%, noninterest-bearing deposits decreased $27.6 million, or 17.3%, and certificates of deposits decreased $4.6 million, or 3.6%, when comparing March 31, 2024 and June 30, 2023. As of March 31, 2024, the brokered deposit balance amounted to $120.0 million, which was included in NOW deposits. As of June 30, 2023, the brokered deposit balance amounted to $60.0 million, which was included in certificates of deposits. The Company maintains an increased level of brokered deposits from several available sources as an alternative to borrowed funds, and uses the funds to support loan growth, overall liquidity and a higher cash position.
  • Borrowings for the Company amounted to $85.8 million at March 31, 2024 compared to $49.5 million at June 30, 2023, an increase of $36.3 million. At March 31, 2024, borrowings included $49.6 million of Fixed-to-Floating Rate Subordinated Notes, $27.0 million in the Bank Term Funding Program with the Federal Reserve Bank, and $9.2 million of long-term borrowings with the FHLB.
  • Shareholders’ equity increased to $199.2 million at March 31, 2024 from $183.3 million at June 30, 2023, resulting primarily from net income of $18.0 million and a decrease in accumulated other comprehensive loss of $991,000, partially offset by dividends declared and paid of $2.6 million and the day-one CECL adoption impact of $510,000.

Greene County Bancorp, Inc. is the direct and indirect holding company for The Bank of Greene County, a federally chartered savings bank, and Greene County Commercial Bank, a New York-chartered commercial bank, both headquartered in Catskill, New York. Our primary market area is the Hudson Valley Region and Capital District Region in New York State. For more information on Greene County Bancorp, Inc., visit www.tbogc.com.

This press release contains statements about future events that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, general economic conditions, financial and regulatory changes, changes in interest rates, regulatory considerations, competition, technological developments, retention and recruitment of qualified personnel, and market acceptance of the Company’s pricing, products and services.

Non-GAAP Financial Measures

In addition to presenting information in conformity with accounting principles generally accepted in the United States of America (GAAP), this news release contains financial information determined by methods other than GAAP (non-GAAP). The following measures used in this release, which are commonly utilized by financial institutions, have not been specifically exempted by the Securities and Exchange Commission ("SEC") and may constitute "non-GAAP financial measures" within the meaning of the SEC's rules. The Company has provided in this news release supplemental disclosures for the calculation of net interest margin utilizing a fully taxable-equivalent adjustment and excluding provision for credit losses from net income. Management believes that the non-GAAP financial measures disclosed by the Company from time to time are useful in evaluating the Company's performance and that such information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Our non-GAAP financial measures may differ from similar measures presented by other companies. See the reconciliation of GAAP to non-GAAP measures in the section "Select Financial Ratios."


Greene County Bancorp, Inc.
Consolidated Statements of Income, and Selected Financial Ratios (Unaudited)

 At or for the Three MonthsAt or for the Nine Months
 Ended March 31,Ended March 31,
Dollars in thousands, except share and per share data 2024  2023  2024  2023 
Interest income$26,071 $21,933 $76,336 $61,101 
Interest expense 13,776  6,707  38,214  14,118 
Net interest income 12,295  15,226  38,122  46,983 
Provision for credit losses6 290  (944) 917  (1,199)
Noninterest income 3,412  3,059  10,189  9,052 
Noninterest expense 9,234  9,856  27,405  28,604 
Income before taxes 6,183  9,373  19,989  28,630 
Tax provision 322  1,282  1,952  4,305 
Net income$5,861 $8,091 $18,037 $24,325 
     
Basic and diluted EPS$0.34 $0.48 $1.06 $1.43 
Weighted average shares outstanding 17,026,828  17,026,828  17,026,828  17,026,828 
Dividends declared per share 4$0.08 $0.07 $0.24 $0.21 
     
Selected Financial Ratios    
Return on average assets1 0.88% 1.25% 0.91% 1.26%
Return on average equity1 11.92% 18.61% 12.69% 19.51%
Net interest rate spread1 1.66% 2.31% 1.75% 2.43%
Net interest margin1 1.90% 2.43% 1.99% 2.53%
Fully taxable-equivalent net interest margin2 2.20% 2.66% 2.25% 2.73%
Efficiency ratio3 58.79% 53.90% 56.73% 51.05%
Non-performing assets to total assets   0.21% 0.19%
Non-performing loans to net loans   0.39% 0.34%
Allowance for credit losses on loans to non-performing loans6   361.45% 450.87%
Allowance for credit losses on loans to total loans6   1.38% 1.50%
Shareholders’ equity to total assets   6.94% 6.55%
Dividend payout ratio4   22.64% 14.69%
Actual dividends paid to net income5   14.50% 6.76%
Book value per share  $11.70 $10.49 
 

1 Ratios are annualized when necessary.
2 Interest income calculated on a taxable-equivalent basis includes the additional interest income that would have been earned if the Company’s investment in tax-exempt securities and loans had been subject to federal and New York State income taxes yielding the same after-tax income. The rate used for this adjustment was 21% for federal income taxes for the three and nine months ended March 31, 2024 and 2023, 4.44% for New York State income taxes for the three and nine months ended March 31, 2024 and 2023. The following table summarizes the adjustments made to arrive at the fully taxable-equivalent net interest margins.


 For the three months ended
March 31,		For the nine months ended
March 31,
(Dollars in thousands) 2024  2023  2024  2023 
Net interest income (GAAP)$12,295 $15,226 $38,122 $46,983 
Tax-equivalent adjustment 1,897  1,400  5,051  3,808 
Net interest income (fully taxable-equivalent basis)$14,192 $16,626 $43,173 $50,791 
     
Average interest-earning assets$2,583,271 $2,502,802 $2,556,441 $2,479,919 
Net interest margin (fully taxable-equivalent basis) 2.20% 2.66% 2.25% 2.73%
 

3 The efficiency ratio has been calculated as noninterest expense divided by the sum of net interest income and noninterest income.
4 The dividend payout ratio has been calculated based on the dividends declared per share divided by basic earnings per share. No adjustments have been made to account for dividends waived by Greene County Bancorp, MHC (“MHC”), the Company’s majority shareholder, owning 54.1% of the shares outstanding.
5 Dividends declared divided by net income. The MHC waived its right to receive dividends declared during the three months September 30, 2022, December 31, 2022, March 31, 2023, June 30, 2023, December 31, 2023 and March 31, 2024. Dividends declared during the three months ended June 30, 2022 and September 30, 2023 were paid to the MHC.
6 The Company adopted the CECL accounting standard effective July 1, 2023.

The above information is preliminary and based on the Company’s data available at the time of presentation.

Greene County Bancorp, Inc.
Consolidated Statements of Financial Condition (Unaudited)

 At
March 31, 2024		 At
June 30, 2023
(Dollars In thousands, except share data)   
Assets   
Cash and due from banks$11,234  $15,305 
Interest-bearing deposits 244,589   181,140 
Total cash and cash equivalents 255,823   196,445 
    
Long term certificate of deposit 3,083   4,576 
Securities available-for-sale, at fair value 345,519   281,133 
Securities held-to-maturity, at amortized cost, net of   
allowance for credit losses of $498 at March 31, 20246 700,371   726,363 
Equity securities, at fair value 343   306 
Federal Home Loan Bank stock, at cost 2,219   1,682 
    
Loans receivable 1,477,635   1,408,866 
Less: Allowance for credit losses on loans6 (20,382)  (21,212)
Net loans receivable 1,457,253   1,387,654 
    
Premises and equipment 15,651   15,028 
Bank owned life insurance 56,618   55,063 
Accrued interest receivable 16,762   12,249 
Foreclosed real estate 302   302 
Prepaid expenses and other assets 17,567   17,482 
Total assets$2,871,511  $2,698,283 
    
Liabilities and shareholders’ equity   
Noninterest bearing deposits$131,452  $159,039 
Interest bearing deposits 2,425,655   2,278,122 
Total deposits 2,557,107   2,437,161 
    
Borrowings, short-term 2,000   - 
Borrowings, long-term 34,156   - 
Subordinated notes payable 49,635   49,495 
Accrued expenses and other liabilities 29,428   28,344 
Total liabilities 2,672,326   2,515,000 
Total shareholders’ equity 199,185   183,283 
Total liabilities and shareholders’ equity$2,871,511  $2,698,283 
Common shares outstanding 17,026,828   17,026,828 
Treasury shares 195,852   195,852 
    

6 The Company adopted the CECL accounting standard effective July 1, 2023.

The above information is preliminary and based on the Company’s data available at the time of presentation.

For Further Information Contact:
Donald E. Gibson
President & CEO
(518) 943-2600
donaldg@tbogc.com

Michelle M. Plummer, CPA, CGMA
SEVP, COO & CFO
(518) 943-2600
michellep@tbogc.com


FAQ

What was Greene County Bancorp, Inc.'s net income for the nine months ended March 31, 2024?

Greene County Bancorp, Inc. reported a net income of $18.0 million for the nine months ended March 31, 2024.

Where did Greene County Bancorp, Inc. open a new banking center?

Greene County Bancorp, Inc. opened a new Capital Region Banking Center in Albany, New York.

What were the total assets and net loans of Greene County Bancorp, Inc. as of March 31, 2024?

Greene County Bancorp, Inc. had total assets of $2.9 billion and net loans of $1.5 billion as of March 31, 2024.

What impacted Greene County Bancorp, Inc.'s net interest income?

Greene County Bancorp, Inc.'s net interest income was impacted by challenges in the current interest rate environment.

What accounting standard did Greene County Bancorp, Inc. adopt, and how did it impact the company's financials?

Greene County Bancorp, Inc. adopted the CECL accounting standard, which had an impact on the company's financials.

How did noninterest income and noninterest expenses change for Greene County Bancorp, Inc.?

Greene County Bancorp, Inc. saw an increase in noninterest income and a decrease in noninterest expenses.

What was the change in total assets, loans, and deposits on the balance sheet of Greene County Bancorp, Inc.?

Greene County Bancorp, Inc. experienced growth in total assets, loans, and deposits on the balance sheet.

What was the increase in shareholders' equity for Greene County Bancorp, Inc.?

Shareholders' equity for Greene County Bancorp, Inc. increased to $199.2 million.

Stock GCBC logo
Greene County Bancorp Inc

NASDAQ:GCBC

GCBC Rankings

#3005 Ranked by Market Cap
#1762 Ranked by Dividends

GCBC Latest News

Oct 22, 2024
Greene County Bancorp, Inc. Reports Net Income of $6.3 million for the Three Months Ended September 30, 2024 and Reaches New Milestone of $2.9 Billion in Assets
Oct 16, 2024
Greene County Bancorp, Inc. Announces Cash Dividend
Jul 23, 2024
Greene County Bancorp, Inc. Reports Net Income of $24.8 million for the Fiscal Year Ended June 30, 2024 and is selected for the “2024 KBW Bank Honor Roll” for the Thirteenth Consecutive Year
Jul 17, 2024
Greene County Bancorp, Inc. Announces Cash Dividend Increase
Apr 17, 2024
Greene County Bancorp, Inc. Announces Cash Dividend

GCBC Stock Data

573.14M
17.03M
59.27%
15.88%
0.5%
Banks - Regional
Savings Institutions, Not Federally Chartered
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United States of America
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