CATSKILL, N.Y., Jan. 22, 2025 (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 six months ended December 31, 2024, which is the second quarter of the Company’s fiscal year ending June 30, 2025. Net income for the three and six months ended December 31, 2024 was $7.5 million, or $0.44 per basic and diluted share, and $13.8 million, or $0.81 per basic and diluted share, respectively, as compared to $5.7 million, or $0.34 per basic and diluted share, and $12.2 million, or $0.72 per basic and diluted share, for the three and six months ended December 31, 2023, respectively. Net income increased $1.6 million, or 12.9%, when comparing the six months ended December 31, 2024 and 2023.
Highlights:
“I am pleased to report another excellent quarter of financial performance. Net income was $7.5 million for the three months ended December 31, 2024, an increase of $1.8 million, or 31.2% as compared to net income of $5.7 million for the three months ended December 31, 2023,” announced Company President & CEO Donald Gibson. “Second fiscal quarter results reflect solid performance across our key segments. The growth has been driven by our talented employees, who are our most valuable asset.”
Total consolidated assets for the Company were $2.97 billion at December 31, 2024, primarily consisting of $1.5 billion of net loans and $1.1 billion of total securities available-for-sale and held-to-maturity. Consolidated deposits totaled $2.5 billion at December 31, 2024, consisting of retail, business, municipal and private banking relationships.
Pre-provision net income was $14.9 million for the six months ended December 31, 2024 as compared to pre-provision net income of $12.8 million for the six months ended December 31, 2023, an increase of $2.1 million, or 16.1%. Pre-provision net income measures the Company’s net income less the provision for credit losses. Management believes that this non-GAAP measure assists investors in comprehending the impact of the provision for credit losses on the Company’s reported results, offering an alternative view of the Company’s performance and the Company’s ability to generate income in excess of its provision for credit losses. The Company strategically managed their balance sheet by focusing on higher-yielding loans and securities, and lowering deposit rates to align with the Federal Reserve’s recent interest rate cuts. This resulted in a higher net interest margin for the three months ended December 31, 2024 as compared to the three months ended December 31, 2023. The Company will continue to monitor the Federal Reserve and interest rates paid on deposits, while maintaining our long-term customer relationships.
Selected highlights for the three and six months ended December 31, 2024 are as follows:
Net Interest Income and Margin
Average loan balances increased $68.1 million and $64.3 million and the yield on loans increased 22 basis points and 29 basis points when comparing the three and six months ended December 31, 2024 and 2023, respectively. The average balance of securities increased $111.8 million and $62.7 million and the yield on such securities increased 19 basis points and 42 basis points when comparing the three and six months ended December 31, 2024 and 2023, respectively. Average interest-bearing bank balances and federal funds increased $24.9 million and $2.7 million and the yield on interest-bearing bank balances and federal funds decreased 8 basis points and 2 basis points when comparing the three and six months ended December 31, 2024 and 2023, respectively.
The cost of NOW deposits increased 5 basis points and 29 basis points, the cost of certificates of deposit increased 37 basis points and 40 basis points, and the cost of savings and money market deposits increased 11 basis points and 15 basis points when comparing the three and six months ended December 31, 2024 and 2023, respectively. The increase in the cost of interest-bearing liabilities was partially due to growth in the average balances of interest-bearing liabilities of $202.8 million and $133.5 million when comparing the three and six months ended December 31, 2024 and 2023, respectively. The growth in interest-bearing liabilities was due to an increase in average NOW deposits of $136.7 million and $92.2 million, an increase in average certificates of deposits of $86.2 million and $58.6 million, an increase in average borrowings of $1.7 million and $13.2 million, partially offset by a decrease in average savings and money market deposits of $21.8 million and $30.5 million when comparing the three and six months ended December 31, 2024 and 2023, respectively. Yields on interest-earning assets and costs of interest-bearing deposits increased when comparing the three and six months ended December 31, 2024 and 2023, as the Company continued to reprice assets and deposits into the higher interest rate environment. During the six months ended December 31, 2024, the Company implemented a strategic reduction in deposit rates that aligns with the Federal Reserve’s rate cuts, while providing competitive financial solutions to the Company’s customers that reflect the prevailing economic conditions, while growing new relationships.
Credit Quality and Provision for Credit Losses on Loans
Noninterest Income and Noninterest Expense
Income Taxes
Balance Sheet Summary
Corporate Overview
Greene County Bancorp, Inc. is the holding company for the Bank of Greene County, and its subsidiary Greene County Commercial Bank. The Company is the leading provider of community-based banking services throughout the Hudson Valley and Capital Region of New York State. Its customers include individuals, businesses, municipalities and other institutions. Greene County Bancorp, Inc. (GCBC) is publicly traded on the Nasdaq Capital Market and is dedicated to promoting economic development and a high quality of life in the communities it serves. For more information on Greene County Bancorp, Inc., visit www.tbogc.com.
Forward-Looking Statements
This earnings release contains statements about future events that constitute forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by references to a future period or periods or by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “will,” “should,” “could,” “plan,” and other similar terms of expressions. Forward-looking statements should not be relied on because they involve known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s control. These risks, uncertainties and other factors may cause the actual results, performance or achievements expressed in, or implied by, the forward-looking statements to differ materially from those contemplated by the forward-looking statements. Factors that may cause such a difference include, but are not limited to, local, regional, national and international general economic conditions, including actual or potential stress in the banking industry, financial and regulatory changes, changes in interest rates, regulatory considerations, competition, technological developments, retention and recruitment of qualified personnel, changes in customer deposit behavior, and market acceptance of the Company’s pricing, products and services.
The Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made, and advises readers that various factors, including, but not limited to, those described above and other factors discussed in the Company’s annual and quarterly reports previously filed with the Securities and Exchange Commission, could affect the Company’s financial performance and could cause the Company’s actual results or circumstances for future periods to differ materially from those anticipated or projected.
Unless required by law, the Company does not undertake, and specifically disclaims any obligations to, publicly release any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
For more information, please see our reports filed with the United States Securities and Exchange Commission (“SEC”), including our most recent annual report on Form 10-K and quarterly reports on Form 10-Q.
Non-GAAP 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 pre-provision 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. Refer to the tables on page 9 for Non-GAAP to GAAP reconciliations.
Greene County Bancorp, Inc.
Consolidated Statements of Income, and Selected Financial Ratios (Unaudited)
| At or for the Three Months | At or for the Six Months | |||||||||||
| Ended December 31, | Ended December 31, | |||||||||||
| Dollars in thousands, except share and per share data | 2024 | 2023 | 2024 | 2023 | ||||||||
| Interest income | $ | 29,418 | $ | 25,593 | $ | 57,187 | $ | 50,265 | ||||
| Interest expense | 15,350 | 13,205 | 29,983 | 24,438 | ||||||||
| Net interest income | 14,068 | 12,388 | 27,204 | 25,827 | ||||||||
| Provision for credit losses | 478 | 170 | 1,112 | 627 | ||||||||
| Noninterest income | 3,875 | 3,478 | 7,612 | 6,777 | ||||||||
| Noninterest expense | 9,386 | 9,326 | 18,936 | 18,171 | ||||||||
| Income before taxes | 8,079 | 6,370 | 14,768 | 13,806 | ||||||||
| Tax provision | 589 | 663 | 1,017 | 1,630 | ||||||||
| Net income | $ | 7,490 | $ | 5,707 | $ | 13,751 | $ | 12,176 | ||||
| Basic and diluted EPS | $ | 0.44 | $ | 0.34 | $ | 0.81 | $ | 0.72 | ||||
| Weighted average shares outstanding | 17,026,828 | 17,026,828 | 17,026,828 | 17,026,828 | ||||||||
| Dividends declared per share (4) | $ | 0.09 | $ | 0.08 | $ | 0.18 | $ | 0.16 | ||||
| Selected Financial Ratios | ||||||||||||
| Return on average assets(1) | 1.05 | % | 0.86 | % | 0.99 | % | 0.92 | % | ||||
| Return on average equity(1) | 13.84 | % | 12.12 | % | 12.89 | % | 13.07 | % | ||||
| Net interest rate spread(1) | 1.80 | % | 1.70 | % | 1.78 | % | 1.79 | % | ||||
| Net interest margin(1) | 2.04 | % | 1.94 | % | 2.04 | % | 2.03 | % | ||||
| Fully taxable-equivalent net interest margin(2) | 2.31 | % | 2.19 | % | 2.30 | % | 2.28 | % | ||||
| Efficiency ratio(3) | 52.31 | % | 58.78 | % | 54.39 | % | 55.73 | % | ||||
| Non-performing assets to total assets | 0.14 | % | 0.22 | % | ||||||||
| Non-performing loans to net loans | 0.26 | % | 0.39 | % | ||||||||
| Allowance for credit losses on loans to non-performing loans | 497.93 | % | 359.58 | % | ||||||||
| Allowance for credit losses on loans to total loans | 1.30 | % | 1.39 | % | ||||||||
| Shareholders’ equity to total assets | 7.37 | % | 7.14 | % | ||||||||
| Dividend payout ratio(4) | 22.22 | % | 22.22 | % | ||||||||
| Actual dividends paid to net income(5) | 22.33 | % | 16.35 | % | ||||||||
| Book value per share | $ | 12.83 | $ | 11.47 | ||||||||
| (1) Ratios are annualized when necessary. (2) Interest income calculated on a taxable-equivalent basis (non-GAAP) 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. (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 ended December 31, 2022, March 31, 2023, June 30, 2023, December 31, 2023, March 31, 2024 and June 30, 2024. Dividends declared during the three months ended September 30, 2023, September 30, 2024, and December 31, 2024 were paid to the MHC. | ||||||||||||
Greene County Bancorp, Inc.
Consolidated Statements of Financial Condition (Unaudited)
| At December 31, 2024 | At June 30, 2024 | ||||||
| Dollars In thousands, except share data | |||||||
| Assets | |||||||
| Cash and due from banks | $ | 9,218 | $ | 13,897 | |||
| Interest-bearing deposits | 157,225 | 176,498 | |||||
| Total cash and cash equivalents | 166,443 | 190,395 | |||||
| Long term certificate of deposit | 2,577 | 2,831 | |||||
| Securities available-for-sale, at fair value | 374,453 | 350,001 | |||||
| Securities held-to-maturity, at amortized cost, net of allowance for credit losses of $439 and $483 at December 31, 2024 and June 30, 2024 | 770,905 | 690,354 | |||||
| Equity securities, at fair value | 371 | 328 | |||||
| Federal Home Loan Bank stock, at cost | 10,669 | 7,296 | |||||
| Loans receivable | 1,551,400 | 1,499,473 | |||||
| Less: Allowance for credit losses on loans | (20,191 | ) | (19,244 | ) | |||
| Net loans receivable | 1,531,209 | 1,480,229 | |||||
| Premises and equipment, net | 15,416 | 15,606 | |||||
| Bank owned life insurance | 58,535 | 57,249 | |||||
| Accrued interest receivable | 16,623 | 14,269 | |||||
| Prepaid expenses and other assets | 18,570 | 17,230 | |||||
| Total assets | $ | 2,965,771 | $ | 2,825,788 | |||
| Liabilities and shareholders’ equity | |||||||
| Noninterest bearing deposits | $ | 112,470 | $ | 125,442 | |||
| Interest bearing deposits | 2,354,788 | 2,263,780 | |||||
| Total deposits | 2,467,258 | 2,389,222 | |||||
| Borrowings, short-term | 194,100 | 115,300 | |||||
| Borrowings, long-term | 6,976 | 34,156 | |||||
| Subordinated notes payable, net | 49,774 | 49,681 | |||||
| Accrued expenses and other liabilities | 29,214 | 31,429 | |||||
| Total liabilities | 2,747,322 | 2,619,788 | |||||
| Total shareholders’ equity | 218,449 | 206,000 | |||||
| Total liabilities and shareholders’ equity | $ | 2,965,771 | $ | 2,825,788 | |||
| Common shares outstanding | 17,026,828 | 17,026,828 | |||||
| Treasury shares | 195,852 | 195,852 | |||||
The above information is preliminary and based on the Company’s data available at the time of presentation.
Non-GAAP to GAAP Reconciliations
The following table summarizes the adjustments made to arrive at the fully taxable-equivalent net interest margins.
| For the three months ended December 31, | For the six months ended December 31, | |||||||||||
| (Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Net interest income (GAAP) | $ | 14,068 | $ | 12,388 | $ | 27,204 | $ | 25,827 | ||||
| Tax-equivalent adjustment(1) | 1,867 | 1,591 | 3,579 | 3,154 | ||||||||
| Net interest income-fully taxable-equivalent basis (non-GAAP) | $ | 15,935 | $ | 13,979 | $ | 30,783 | $ | 28,981 | ||||
| Average interest-earning assets (GAAP) | $ | 2,756,263 | $ | 2,551,427 | $ | 2,672,922 | $ | 2,543,172 | ||||
| Net interest margin-fully taxable-equivalent basis (non-GAAP) | 2.31 | % | 2.19 | % | 2.30 | % | 2.28 | % | ||||
(1) Interest income calculated on a taxable-equivalent basis (non-GAAP) 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 six months ended December 31, 2024 and 2023, 4.44% for New York State income taxes for the three and six months ended December 31, 2024 and 2023.
The following table summarizes the adjustments made to arrive at pre-provision net income.
| For the three months ended December 31, | ||||||
| (Dollars in thousands) | 2024 | 2023 | ||||
| Net income (GAAP) | $ | 7,490 | $ | 5,707 | ||
| Provision for credit losses | 478 | 170 | ||||
| Pre-provision net income (non-GAAP) | $ | 7,968 | $ | 5,877 | ||
| For the six months ended December 31, | ||||||
| (Dollars in thousands) | 2024 | 2023 | ||||
| Net income (GAAP) | $ | 13,751 | $ | 12,176 | ||
| Provision for credit losses | 1,112 | 627 | ||||
| Pre-provision net income (non-GAAP) | $ | 14,863 | $ | 12,803 | ||
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
Nick Barzee
SVP & CFO
(518) 943-2600
nickb@tbogc.com
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