|
|
|
||
(State or Other Jurisdiction of Incorporation)
|
(Commission File No.)
|
(I.R.S. Employer Identification No.)
|
|
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
Registrant’s telephone number, including area code:
|
(
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of class
|
Trading symbol
|
Name of exchange on which registered
|
|
|
|
Item 2.02 |
Results of Operations and Financial Condition
|
Item 9.01. |
Financial Statements and Exhibits
|
Exhibit No.
|
Description
|
|
Press release dated July 23, 2024
|
||
Exhibit Number |
Description
|
|
104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document)
|
GREENE COUNTY BANCORP, INC.
|
|||
DATE: July 23, 2024
|
By:
|
/s/ Donald E. Gibson
|
|
Donald E. Gibson
|
|||
President and Chief Executive Officer
|
• |
Net Income: $24.8 million for the fiscal year ended June 30, 2024
|
• |
Total Assets: $2.8 billion at June 30, 2024, a new record high
|
• |
Net Loans: $1.5 billion at June 30, 2024, a new record high
|
• |
Return on Average Assets: 0.93% for the year ended June 30, 2024
|
• |
Return on Average Equity: 12.87% for the year ended June 30, 2024
|
• |
Net interest income decreased $1.3 million to $12.9 million
for the three months ended June 30, 2024 from $14.2 million for the three months ended June 30, 2023. Net interest income decreased $10.2 million to $51.0 million for the year ended June 30, 2024 from $61.2 million for the year ended June
30, 2023. The decrease in net interest income was due to an increase in the average balance of interest-bearing liabilities, which increased $80.7 million and $84.4 million when comparing the three months and years ended June 30, 2024 and
2023, respectively, and increases in rates paid on interest-bearing liabilities, which increased 83 and 123 basis points when comparing the three months and years ended June 30, 2024 and 2023, respectively. The decrease in net interest
income was partially offset by the increase in the average balance of interest-earning assets, which increased $62.9 million and $73.1 million when comparing the three months and years ended June 30, 2024 and 2023, respectively, and
increases in interest rates on interest-earning assets, which increased 49 and 65 basis points when comparing the three months and years ended June 30, 2024 and 2023, respectively.
|
• |
Net interest rate spread and margin both decreased when
comparing the three months and years ended June 30, 2024 and 2023. Net interest rate spread decreased 34 and 58 basis points to 1.72% and 1.75% for the three months and year ended June 30, 2024, as compared to 2.06% and 2.33% for the
three months and year ended June 30, 2023, respectively. Net interest margin decreased 27 and 47 basis points to 1.97% and 1.98% for the three months and year ended June 30, 2024, as compared to 2.24% and 2.45% for the three months and
year ended June 30, 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 securities and loans, as they reprice at higher yields and the interest rates earned on new balances were higher than the low levels from the prior periods.
|
• |
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 2.24% and 2.47% for the three months ended June 30, 2024 and 2023, respectively, and was 2.25% and 2.66% for the years ended June 30, 2024 and 2023, respectively.
|
• |
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.
|
• |
Provision for credit losses on loans amounted to a benefit
of $151,000 for the three months ended June 30, 2024 and a charge of $128,000 for the three months ended June 30, 2023. The benefit for the three months ended June 30, 2024, was primarily attributable to a decrease in the reserve for
individually evaluated loans due to improved credit risk and improvement in the qualitative factor assessments as of June 30, 2024. This was partially offset by an increase in the
modeled pooled reserve due to less favorable economic forecasts and growth in gross loans as of June 30, 2024. Provision for credit losses on loans amounted to a charge of $766,000 for the year ended June 30, 2024 and a benefit of $1.1
million for the year ended June 30, 2023. The loan provision for the year ended June 30, 2024 was primarily due to the growth in gross loans, partially offset by improvement in the economic forecasts. The allowance for credit losses on
loans to total loans receivable was 1.28% at June 30, 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
$48.6 million at June 30, 2024 and $41.9 million at June 30, 2023, an increase of $6.7 million. There were no loans classified as doubtful or loss at June 30, 2024 or June 30, 2023.
|
• |
Net charge-offs on loans amounted to $1.0 million and
$71,000 for the three months ended June 30, 2024 and 2023, respectively, an increase of $929,000. Net charge-offs on loans totaled $1.4 million and $478,000 for the years ended June 30, 2024 and 2023, respectively. The increase in net
charge-offs for the three months and year ended June 30, 2024, was due to one commercial loan being charged-off during the three months ended June 30, 2024. The charge-off taken on the commercial loan was fully reserved for as an
individually evaluated loan through the allowance for credit losses.
|
• |
Nonperforming loans amounted to $3.7 million at June 30,
2024 and $5.5 million at June 30, 2023. The activity in nonperforming loans during the period included $1.3 million in loan repayments, $1.2 million in charge-offs or transfers to foreclosed, $237,000 in loans returning to performing
status, and $940,000 of loans placed into nonperforming status. At June 30, 2024, nonperforming assets were 0.13% of total assets compared to 0.21% at June 30, 2023. Nonperforming loans were 0.25% and 0.39% of net loans at June 30, 2024
and June 30, 2023, respectively.
|
• |
Noninterest income increased $625,000, or 20.2%, to $3.7
million for the three months ended June 30, 2024 compared to $3.1 million for the three months ended June 30, 2023. Noninterest income increased $1.8 million, or 14.5%, to $13.9 million for the year ended June 30, 2024 compared to $12.1
million for the year ended June 30, 2023. The increase during the three months and year ended June 30, 2024 was primarily due to an increase in fee income earned on customer interest rate swap contracts, investment services income and
income from bank owned life insurance (“BOLI”). During the quarter ended December 31, 2023, the Company restructured $23 million of BOLI contracts, by surrendering and simultaneously purchasing new higher-yielding policies, which
resulted in $814,000 of additional noninterest income.
|
• |
Noninterest expense decreased $107,000, or 1.1%, to $9.9
million for the three months ended June 30, 2024 compared to $10.0 million for the three months ended June 30, 2023. Noninterest expense decreased $1.3 million, or 3.4%, to $37.3 million for the year ended June 30, 2024, compared to $38.6
million for the year ended June 30, 2023. The decrease during the three months ended June 30, 2024 was primarily due to a decrease in service and data processing fees and
computer software and support fees, in which the Company was able to negotiate a reduction in costs. The decrease during the year ended June 30, 2024 was primarily due to a decrease in legal and professional fees, due to non-recurring
litigation expenses during the year ended June 30, 2023. This was partially offset by an increase in salaries and employee benefits, due to new positions created during the period to support the Company’s continued growth, as
compared to the year ended June 30, 2023.
|
• |
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 1.4% and 7.6% for the three months and year ended June 30, 2024 and 10.2% and 14.1% for the three months and
year ended June 30, 2023. The statutory tax rate is impacted by the benefits derived from tax-exempt security 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 reflects historic preservation tax credits received on
the Company’s new wealth management center, located at 345 Main Street, in Catskill New York. The wealth
management center was originally built in 1910 and is located in Catskill’s historic district. The decrease in the current year’s effective tax rate primarily reflected a higher mix of tax-exempt income from municipal bonds, tax advantage loans, historic preservation tax credits and bank-owned life insurance in proportion to pre-tax income.
|
• |
Total assets of the Company were $2.8 billion at June 30,
2024 and $2.7 billion at June 30, 2023, an increase of $127.5 million, or 4.7%.
|
• |
Total cash and cash equivalents for the Company were $190.4
million at June 30, 2024 and $196.4 million at June 30, 2023. The Company has continued to maintain strong capital and liquidity positions as of June 30, 2024.
|
• |
Securities available-for-sale and held-to-maturity for the
Company remained unchanged at $1.0 billion at June 30, 2024 and June 30, 2023. Securities purchases totaled $329.6 million during the year ended June 30, 2024 and consisted primarily of $245.1 million of state and political subdivision
securities, $51.1 million of U.S. Treasury securities, $29.8 million of mortgage-backed securities and $3.6 million of corporate debt securities. Principal pay-downs and maturities during the year ended June 30, 2024 amounted to $297.8
million, primarily consisting of $240.4 million of state and political subdivision securities, $37.0 million of U.S. Treasury securities, $17.4 million of mortgage-backed securities, and $2.7 million of collateralized mortgage
obligations.
|
• |
Net loans receivable increased $92.6 million, or 6.7%, to
$1.5 billion at June 30, 2024 from $1.4 billion at June 30, 2023. The loan growth experienced during the year ended consisted primarily of $54.3 million in commercial real estate loans, $26.7 million in residential real estate loans,
$6.3 million in home equity loans, $3.3 million in commercial loans, and a $2.0 million decrease in the allowance for credit losses on loans.
|
• |
Deposits totaled $2.39 billion at June 30, 2024 and $2.44
billion at June 30, 2023, a decrease of $47.9 million, or 2.0%. The Company had zero and $60 million of brokered deposits, included in certificates of deposits, as of
June 30, 2024 and 2023, respectively. The Company’s core deposit, net of brokered deposits, increased $12.1 million or 1.0%. NOW deposits increased $23.7 million, or 1.4%, certificates of deposits increased $10.4 million, or
8.1%, when comparing June 30, 2024 and June 30, 2023. Savings deposits decreased $46.7 million, or 15.6%, noninterest-bearing deposits decreased $33.6 million, or 21.1%, and money market deposits decreased $1.8 million, or 1.5%, when
comparing June 30, 2024 and June 30, 2023.
|
• |
Borrowings for the Company amounted to $199.1 million at June 30, 2024 compared to $49.5 million at June 30, 2023, an increase of $149.6 million. At June 30, 2024, borrowings included $115.3 million of overnight borrowings with
the Federal Home Loan Bank of New York (“FHLB”), $49.7 million of Fixed-to-Floating Rate Subordinated Notes, $25.0 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 $206.0 million at June 30,
2024 from $183.3 million at June 30, 2023, resulting primarily from net income of $24.8 million and an increase in accumulated other comprehensive loss of $1.7 million, partially offset by dividends declared and paid of $3.2 million and
the day-one CECL adoption impact of $510,000.
|
At or for the three months
ended June 30,
|
At or for the years
ended June 30,
|
|||||||||||||||
Dollars in thousands, except share and per share data
|
2024
|
2023
|
2024
|
2023
|
||||||||||||
Interest income
|
$
|
27,328
|
$
|
23,524
|
$
|
103,664
|
$
|
84,625
|
||||||||
Interest expense
|
14,471
|
9,289
|
52,685
|
23,407
|
||||||||||||
Net interest income
|
12,857
|
14,235
|
50,979
|
61,218
|
||||||||||||
Provision for credit losses(6)
|
(151
|
)
|
128
|
766
|
(1,071
|
)
|
||||||||||
Noninterest income
|
3,719
|
3,094
|
13,908
|
12,146
|
||||||||||||
Noninterest expense
|
9,897
|
10,004
|
37,302
|
38,608
|
||||||||||||
Income before taxes
|
6,830
|
7,197
|
26,819
|
35,827
|
||||||||||||
Tax provision
|
98
|
737
|
2,050
|
5,042
|
||||||||||||
Net income
|
$
|
6,732
|
$
|
6,460
|
$
|
24,769
|
$
|
30,785
|
||||||||
Basic and diluted EPS
|
$
|
0.40
|
$
|
0.38
|
$
|
1.45
|
$
|
1.81
|
||||||||
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
|
$
|
0.32
|
$
|
0.28
|
||||||||
Selected Financial Ratios
|
||||||||||||||||
Return on average assets(1)
|
1.00
|
%
|
0.98
|
%
|
0.93
|
%
|
1.19
|
%
|
||||||||
Return on average equity(1)
|
13.36
|
%
|
14.27
|
%
|
12.87
|
%
|
18.13
|
%
|
||||||||
Net interest rate spread(1)
|
1.72
|
%
|
2.06
|
%
|
1.75
|
%
|
2.33
|
%
|
||||||||
Net interest margin(1)
|
1.97
|
%
|
2.24
|
%
|
1.98
|
%
|
2.45
|
%
|
||||||||
Fully taxable-equivalent net interest margin(2)
|
2.24
|
%
|
2.47
|
%
|
2.25
|
%
|
2.66
|
%
|
||||||||
Efficiency ratio(3)
|
59.71
|
%
|
57.73
|
%
|
57.49
|
%
|
52.63
|
%
|
||||||||
Non-performing assets to total assets
|
0.13
|
%
|
0.21
|
%
|
||||||||||||
Non-performing loans to net loans
|
0.25
|
%
|
0.39
|
%
|
||||||||||||
Allowance for credit losses on loans to non-performing loans(6)
|
516.20
|
%
|
388.64
|
%
|
||||||||||||
Allowance for credit losses on loans to total loans(6)
|
1.28
|
%
|
1.51
|
%
|
||||||||||||
Shareholders’ equity to total assets
|
7.29
|
%
|
6.79
|
%
|
||||||||||||
Dividend payout ratio(4)
|
22.07
|
%
|
15.47
|
%
|
||||||||||||
Actual dividends paid to net income(5)
|
13.08
|
%
|
7.12
|
%
|
||||||||||||
Book value per share
|
$
|
12.10
|
$
|
10.76
|
At
June 30, 2024
|
At
June 30, 2023
|
|||||||
(Dollars In thousands, except share data)
|
||||||||
Assets
|
||||||||
Cash and due from banks
|
$
|
13,897
|
$
|
15,305
|
||||
Interest-bearing deposits
|
176,498
|
181,140
|
||||||
Total cash and cash equivalents
|
190,395
|
196,445
|
||||||
Long term certificate of deposit
|
2,831
|
4,576
|
||||||
Securities available-for-sale, at fair value
|
350,001
|
281,133
|
||||||
Securities held-to-maturity, at amortized cost, net of allowance for credit losses of $483 at June 30, 2024(1)
|
690,354
|
726,363
|
||||||
Equity securities, at fair value
|
328
|
306
|
||||||
Federal Home Loan Bank stock, at cost
|
7,296
|
1,682
|
||||||
Loans receivable
|
1,499,473
|
1,408,866
|
||||||
Less: Allowance for credit losses on loans(1)
|
(19,244
|
)
|
(21,212
|
)
|
||||
Net loans receivable
|
1,480,229
|
1,387,654
|
||||||
Premises and equipment
|
15,606
|
15,028
|
||||||
Bank owned life insurance
|
57,249
|
55,063
|
||||||
Accrued interest receivable
|
14,269
|
12,249
|
||||||
Foreclosed real estate
|
-
|
302
|
||||||
Prepaid expenses and other assets
|
17,230
|
17,482
|
||||||
Total assets
|
$
|
2,825,788
|
$
|
2,698,283
|
||||
Liabilities and shareholders’ equity
|
||||||||
Noninterest bearing deposits
|
$
|
125,442
|
$
|
159,039
|
||||
Interest bearing deposits
|
2,263,780
|
2,278,122
|
||||||
Total deposits
|
2,389,222
|
2,437,161
|
||||||
Borrowings, short-term
|
115,300
|
-
|
||||||
Borrowings, long-term
|
34,156
|
-
|
||||||
Subordinated notes payable
|
49,681
|
49,495
|
||||||
Accrued expenses and other liabilities
|
31,429
|
28,344
|
||||||
Total liabilities
|
2,619,788
|
2,515,000
|
||||||
Total shareholders’ equity
|
206,000
|
183,283
|
||||||
Total liabilities and shareholders’ equity
|
$
|
2,825,788
|
$
|
2,698,283
|
||||
Common shares outstanding
|
17,026,828
|
17,026,828
|
||||||
Treasury shares
|
195,852
|
195,852
|
For the three months ended
June 30,
|
For the years ended
June 30,
|
|||||||||||||||
(Dollars in thousands)
|
2024
|
2023
|
2024
|
2023
|
||||||||||||
Net interest income (GAAP)
|
$
|
12,857
|
$
|
14,235
|
$
|
50,979
|
$
|
61,218
|
||||||||
Tax-equivalent adjustment(1)
|
1,740
|
1,450
|
6,791
|
5,258
|
||||||||||||
Net interest income-fully taxable-equivalent basis (non-GAAP)
|
$
|
14,597
|
$
|
15,685
|
$
|
57,770
|
$
|
66,476
|
||||||||
Average interest-earning assets (GAAP)
|
$
|
2,605,966
|
$
|
2,543,026
|
$
|
2,568,756
|
$
|
2,495,653
|
||||||||
Net interest margin-fully taxable-equivalent basis (non-GAAP)
|
2.24
|
%
|
2.47
|
%
|
2.25
|
%
|
2.66
|
%
|
For the three months ended
June 30,
|
For the years ended
June 30,
|
|||||||||||||||
(Dollars in thousands)
|
2024
|
2023
|
2024
|
2023
|
||||||||||||
Net income (GAAP)
|
$
|
6,732
|
$
|
6,460
|
$
|
24,769
|
$
|
30,785
|
||||||||
Provision for credit losses(1)
|
(151
|
)
|
128
|
766
|
(1,071
|
)
|
||||||||||
Net income excluding provision for credit losses (non-GAAP)
|
$
|
6,581
|
$
|
6,588
|
$
|
25,535
|
$
|
29,714
|
Document and Entity Information |
Jul. 23, 2024 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Jul. 23, 2024 |
Entity File Number | 0-25165 |
Entity Registrant Name | GREENE COUNTY BANCORP, INC. |
Entity Central Index Key | 0001070524 |
Entity Incorporation, State or Country Code | X1 |
Entity Tax Identification Number | 14-1809721 |
Entity Address, Address Line One | 302 Main Street |
Entity Address, City or Town | Catskill |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 12414 |
City Area Code | 518 |
Local Phone Number | 943-2600 |
Title of 12(b) Security | Common Stock, $0.10 par value |
Trading Symbol | GCBC |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
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