Greene County Bancorp, Inc. Reports 27% Increase in Net

CATSKILL, N.Y., Oct. 21, 2022 (GLOBE NEWSWIRE) — Greene County Bancorp, Inc. (the “Company”) (NASDAQ: GCBC), the holding firm for The Bank of Greene County and its subsidiary Greene County Commercial Bank, immediately reported internet earnings for the quarter ended September 30, 2022, which is the primary quarter of the Company’s fiscal 12 months ending June 30, 2023. Net earnings for the three months ended September 30, 2022 was $9.0 million, or $1.06 per fundamental and diluted share, as in comparison with $7.1 million, or $0.84 per fundamental and diluted share, for the quarter ended September 30, 2021. Net earnings elevated $1.9 million, or 27.0%, when evaluating the quarters ended September 30, 2022 and 2021.

Highlights:

• Net Income: $9.0 million for the quarter ended September 30, 2022
• Total Assets: $2.6 billion at September 30, 2022
• Return on Average Assets: 1.43% for the quarter ended September 30, 2022
• Return on Average Equity: 22.55% for the quarter ended September 30, 2022

Donald Gibson, President & CEO acknowledged: “I am very proud of our teams continued strong performance. Greene County Bancorp, Inc. has been recognized by Piper Sandler, as a member of their Sm-All Stars Class of 2022, and is the only bank in the country to have currently achieved six consecutive years on this prestigious list. To earn Sm-All Star status, companies need to have a market cap below $2.5 billion, and clear numerous hurdles related to growth, profitability, credit quality, and capital strength. Piper Sandler’s objective is to identify the top performing small-cap banks and thrifts in the country.”

Total consolidated belongings for the Company have been $2.6 billion at September 30, 2022, primarily consisting of $1.3 billion of internet loans and $1.1 billion of whole securities available-for-sale and held-to-maturity. Consolidated deposits totaled $2.3 billion at September 30, 2022, consisting of retail, business and municipal banking relationships.

Selected highlights for the three months ended September 30, 2022 are as follows:

Net Interest Income and Margin

• Net curiosity earnings elevated $1.4 million to $15.8 million for the three months ended September 30, 2022 from $14.4 million for the three months ended September 30, 2021. The enhance in internet curiosity earnings was the results of development in the typical stability of interest-earning belongings, which elevated $298.5 million when evaluating the three months ended September 30, 2022 and 2021, and will increase in rates of interest on interest-earning belongings, which elevated 14 foundation factors when evaluating the three months ended September 30, 2022 and 2021.

  Average mortgage balances elevated $209.5 million and the yield on loans decreased 30 foundation factors when evaluating the three months ended September 30, 2022 and 2021. Average securities elevated $184.6 million and the yield on such securities elevated 37 foundation factors when evaluating the three months ended September 30, 2022 and 2021. Average interest-bearing financial institution balances and federal funds decreased $97.7 million and the yield elevated 181 foundation factors when evaluating the three months ended September 30, 2022 and 2021.

  Cost of interest-bearing liabilities elevated 26 foundation factors when evaluating the three months ended September 30, 2022 and 2021. The value of NOW deposits elevated 25 foundation factors, the price of certificates of deposit elevated 38 foundation factors, and the price of financial savings and cash market deposits decreased 2 foundation factors when evaluating the three months ended September 30, 2022 and 2021. The enhance in the price of interest-bearing liabilities was additionally on account of development in the typical stability of interest-bearing liabilities of $297.0 million, most notably on account of a rise in NOW deposits of $143.7 million, a rise in common financial savings and cash market deposits of $51.6 million, a rise in common borrowings of $66.6 million, and a rise in common certificates of deposits of $35.0 million, when evaluating the three months ended September 30, 2022 and 2021. Yields on interest-earning belongings and prices of interest-bearing deposits elevated for the quarter ended September 30, 2022, because the Federal Reserve Board raised rates of interest throughout the first three quarters of calendar 12 months 2022.

• Net rate of interest unfold and margin each decreased when evaluating the three months ended September 30, 2022 and 2021. Net rate of interest unfold decreased 12 foundation factors to 2.52% for the three months ended September 30, 2022 in comparison with 2.64% for the three months ended September 30, 2021. Net curiosity margin decreased 9 foundation factors to 2.58% for the three months ended September 30, 2022 in comparison with 2.67% for the three months ended September 30, 2021. When evaluating the three months ended September 30, 2022 to the three months ended June 30, 2022, internet rate of interest unfold elevated 5 foundation factors and internet curiosity margin elevated 8 foundation factors. The internet rate of interest unfold and internet curiosity margin decreased when in comparison with the prior 12 months quarter ended September 30, 2021, however improved in comparison with the latest quarter ended June 30, 2022. During the present quarter, sure loans and securities repriced at increased yields reflecting the upper charge atmosphere, because the rates of interest earned on new balances have elevated from the historic low ranges. The further earnings earned on these belongings was partially offset by increased charges paid on deposits.
• Net curiosity earnings on a taxable-equivalent foundation contains the extra quantity of curiosity earnings that might have been earned if the Company’s funding in tax-exempt securities and loans had been topic to federal and New York State earnings taxes yielding the identical after-tax earnings. Tax equal internet curiosity margin was 2.76% and a pair of.81% for the three months ended September 30, 2022 and 2021, respectively.

Asset Quality and Loan Loss Provision

• Provision for mortgage losses amounted to a good thing about $499,000 and a cost of $988,000 for the three months ended September 30, 2022 and 2021, respectively. The profit for the three months ended September 30, 2022 was on account of a lower in the stability and reserve share on loans adversely categorised, partially offset by the expansion in gross loans. The Company instituted a mortgage deferral program in response to the COVID-19 pandemic whereby deferral of principal and/or curiosity funds have been offered and correspond to the size of the National Emergency as outlined below the CARES Act and prolonged below the Consolidated Appropriations Act which was signed into regulation on December 27, 2020.   The program ended throughout the quarter ended March 31, 2022 and due to this fact the Company has zero loans on cost deferral as of September 30, 2022, in comparison with $7.1 million, associated to 6 loans, at September 30, 2021. Loans categorised as substandard or particular point out totaled $45.5 million at September 30, 2022 and $52.1 million at June 30, 2022, a lower of $6.6 million.   Reserves on loans categorised as substandard or particular point out totaled $7.0 million at September 30, 2022 in comparison with $9.6 million at June 30, 2022, a lower of $2.6 million. There have been no loans categorised as uncertain or loss at September 30, 2022 or June 30, 2022. Allowance for mortgage losses to whole loans receivable was 1.64% at September 30, 2022 in comparison with 1.82% at June 30, 2022.  
• Net charge-offs amounted to $115,000 and $163,000 for the three months ended September 30, 2022 and 2021, respectively, a lower of $48,000. There have been no vital cost offs in every mortgage phase throughout the quarter ended September 30, 2022.
• Nonperforming loans amounted to $5.4 million and $6.3 million at September 30, 2022 and June 30, 2022, respectively. The lower in nonperforming loans throughout the interval was primarily on account of $543,000 in mortgage repayments, $134,000 in loans returning to performing standing, $7,000 in charge-offs, and $286,000 in principal funds acquired, partially offset by $83,000 of loans positioned into nonperforming standing. At September 30, 2022 nonperforming belongings have been 0.21% of whole belongings in comparison with 0.25% at June 30, 2022. Nonperforming loans have been 0.41% and 0.50% of internet loans at September 30, 2022 and June 30, 2022, respectively.

Noninterest Income and Noninterest Expense

• Noninterest earnings elevated $169,000, or 5.8%, to $3.1 million for the three months ended September 30, 2022 in comparison with $2.9 million for the three months ended September 30, 2021. The enhance was primarily on account of a rise in debit card charges and repair costs on deposit accounts ensuing from continued development in the variety of checking accounts with debit playing cards and the variety of deposit accounts, and the earnings from financial institution owned life insurance.
• Noninterest expense elevated $836,000 or 10.5%, to $8.8 million for the three months ended September 30, 2022 in comparison with $8.0 million for the three months ended September 30, 2021. The enhance in noninterest expense throughout the three months ended September 30, 2022 was primarily on account of a rise in salaries and worker advantages expense on account of new positions created throughout the 12 months to assist the financial institution’s development.

Income Taxes

• Provision for earnings taxes displays the anticipated tax related to the pre-tax earnings generated for the given 12 months and sure regulatory necessities. The efficient tax charge was 15.0% for the three months ended September 30, 2022 and 15.1% for the three months ended September 30, 2021. The statutory tax charge is impacted by the advantages derived from tax-exempt bond and mortgage earnings, the Company’s actual property funding belief subsidiary earnings, earnings acquired on the financial institution owned life insurance, in addition to the tax advantages derived from premiums paid to the Company’s pooled captive insurance subsidiary to reach on the efficient tax charge.

Balance Sheet Summary

• Total belongings of the Company have been $2.6 billion at September 30, 2022 and $2.6 billion at June 30, 2022, a rise of $12.5 million, or 0.49%.  
• Securities available-for-sale and held-to-maturity decreased $83.4 million, or 7.1%, to $1.1 billion at September 30, 2022 as in comparison with $1.2 billion at June 30, 2022. The lower was the results of using maturing investments to fund mortgage development throughout the quarter and a rise in unrealized loss on securities of $9.0. Securities purchases totaled $43.5 million throughout the three months ended September 30, 2022 and consisted of state and political subdivision securities. Principal pay-downs and maturities throughout the three months ended September 30, 2022 amounted to $117.2 million, primarily consisting of $14.4 million of mortgage-backed securities, $102.0 million of state and political subdivision securities, and $810,000 of collateralized mortgage obligations.
• Net loans receivable elevated $98.5 million, or 8.0%, to $1.3 billion at September 30, 2022 from $1.2 billion at June 30, 2022.   The mortgage development skilled throughout the quarter consisted primarily of $82.0 million in industrial actual property loans, $7.3 million in residential actual property loans, $2.9 million in industrial loans, $3.3 million in multi-family loans, $1.6 million in dwelling fairness loans, and $2.9 million in residential development and land loans. This development was partially offset by a $2.1 million lower in industrial development loans.
• Deposits totaled $2.3 billion at September 30, 2022 and $2.2 billion at June 30, 2022, a rise of $114.3 million, or 5.2%. NOW deposits elevated $108.6 million, or 7.3%, and certificates of deposits elevated $31.1 million, or 76.2% when evaluating September 30, 2022 and June 30, 2022. Included inside certificates of deposits at September 30, 2022 have been $40.0 million in brokered certificates of deposit. Money market deposits decreased $14.4 million, or 9.1%, financial savings deposits decreased $6.5 million, or 1.9%, and noninterest-bearing deposits decreased $4.5 million, or 2.4% when evaluating September 30, 2022 and June 30, 2022. Deposits elevated throughout the three months ended September 30, 2022 on account of a rise in municipal deposits at Greene County Commercial Bank, primarily from tax assortment, and new account relationships.  
• Borrowings for the Company amounted to $72.8 million at September 30, 2022 in comparison with $173.0 million at June 30, 2022, a lower of $100.2 million.   At September 30, 2022, borrowings consisted of $49.4 million of Fixed-to-Floating Rate Subordinated Notes and $23.4 million of in a single day borrowings with Federal Home Loan Bank of New York (“FHLB”).
• Shareholders’ fairness elevated to $159.6 million at September 30, 2022 from $157.7 million at June 30, 2022, ensuing primarily from internet earnings of $9.0 million, partially offset by dividends declared and paid of $546,000 and a rise in different accrued complete lack of $6.6 million.

Greene County Bancorp, Inc. is the direct and oblique holding firm for The Bank of Greene County, a federally chartered financial savings financial institution, and Greene County Commercial Bank, a New York-chartered industrial financial institution, each headquartered in Catskill, New York. Our main market space is the Hudson Valley Region and Capital District Region in New York State. For extra data on Greene County Bancorp, Inc., go to www.tbogc.com.

This press launch accommodates statements about future occasions that represent forward-looking statements inside the which means of the Private Securities Litigation Reform Act of 1995. Actual outcomes might differ materially from these projected in the forward-looking statements. Factors which may trigger such a distinction embody, however usually are not restricted to, basic financial circumstances, monetary and regulatory modifications, modifications in rates of interest, regulatory concerns, competitors, technological developments, retention and recruitment of certified personnel, and market acceptance of the Company’s pricing, services and products.

In addition to presenting data in conformity with accounting rules usually accepted in the United States of America (GAAP), this information launch accommodates monetary data decided by strategies aside from GAAP (non-GAAP). The following measures used in this launch, that are generally utilized by monetary establishments, haven’t been particularly exempted by the Securities and Exchange Commission (“SEC”) and will represent “non-GAAP financial measures” inside the which means of the SEC’s guidelines. The Company has offered in this information launch supplemental disclosures for the calculation of internet curiosity margin using a totally taxable-equivalent adjustment. Management believes that the non-GAAP monetary measures disclosed by the Company on occasion are helpful in evaluating the Company’s efficiency and that such data ought to be thought-about as supplemental in nature and never as an alternative to or superior to the associated monetary data ready in accordance with GAAP.  Our non-GAAP monetary measures might differ from comparable measures offered by different corporations. See the reconciliation of GAAP to non-GAAP measures in the part “Select Financial Ratios.”

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

¹ Ratios are annualized when mandatory.
² Interest earnings calculated on a taxable-equivalent foundation contains the extra curiosity earnings that might have been earned if the Company’s funding in tax-exempt securities and loans had been topic to federal and New York State earnings taxes yielding the identical after-tax earnings. The charge used for this adjustment was 21% for federal earnings taxes for the three months ended September 30, 2022 and 2021, 4.44% for New York State earnings taxes for the three months ended September 30, 2022 and 2021. The following desk summarizes the changes made to reach on the totally taxable-equivalent internet curiosity margins.

³ The effectivity ratio has been calculated as noninterest expense divided by the sum of internet curiosity earnings and noninterest earnings.
⁴ The dividend payout ratio has been calculated primarily based on the dividends declared per share divided by fundamental earnings per share. No changes have been made to account for dividends waived by Greene County Bancorp, MHC (“MHC”), the Company’s majority shareholder, proudly owning 54.1% of the shares excellent.
⁵ Dividends declared divided by internet earnings. The MHC waived its proper to obtain dividends declared throughout the three months ended September 30, 2021; December 31, 2021, March 31, 2022 and September 30, 2022. Dividends declared throughout the three months ended March 31, 2021 and June 30, 2022 have been paid to the MHC.

^{The above data is preliminary and primarily based on the Company’s knowledge accessible on the time of presentation.}

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

^{The above data is preliminary and primarily based on the Company’s knowledge accessible on the time of presentation.}

For Further Information Contact:
Donald E. Gibson
President & CEO
(518) 943-2600
[email protected]

Michelle M. Plummer, CPA, CGMA
SEVP, COO & CFO
(518) 943-2600
[email protected]