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April 2022
April 2022
January 2022
January 2022
November 2021
October 2021
October 2021
September 2021
July 2021
July 2021
• |
Net interest income increased $1.1 million to $10.0 million for the three months
ended March 31, 2019 from $8.9 million for the three months ended March 31, 2018. Net interest income increased $4.2 million to $29.7 million for the nine months ended March 31, 2019 from $25.5 million for the nine months ended March
31, 2018. These increases in net interest income were primarily the result of the growth in the average balance of interest-earning assets, with continued growth in loans and securities.
|
• |
Net interest spread increased seven basis points to 3.24% for the three months
ended March 31, 2019 compared to 3.17% for the three months ended March 31, 2018. Net interest spread increased nine basis points to 3.31% for the nine months ended March 31, 2019 compared to 3.22% for the nine months ended March 31,
2018.
|
• |
Net interest margin increased 10 basis points to 3.34% for the three months ended
March 31, 2019 compared to 3.24% for the three months ended March 31, 2018. Net interest margin increased 12 basis points to 3.41% for the nine months ended March 31, 2019 compared to 3.29%, for the nine months ended March 31, 2018.
|
• |
Increases in net interest spread and margin are primarily the result of the
increasing rate environment over the past two years, with repricing of the Company’s adjustable rate investment and loan products, and the reinvestment of cash flows into higher rate investments and loans. These increases have been
partially offset by increases in cost of funds from both increases in deposit rates and in increased average short-term borrowing balances.
|
• |
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 3.51% and 3.45% for the three months ended March 31, 2019 and 2018, respectively, and was 3.58% and 3.50% for the nine months ended March 31, 2019 and 2018, respectively. As a result of the enactment of the Tax Cut and Jobs
Act of 2017 (“TCJA”) in December 2017, which permanently reduces the maximum corporate income tax rate from 35% to 21% effective for tax years beginning after December 31, 2017, the tax benefits derived from tax-exempt securities and
loans is lower for the three and nine months ended March 31, 2019 compared to March 31, 2018. However, beginning January 1, 2018, pricing of tax-exempt securities and loan originations has been adjusted to reflect the change in the
corporate tax rate, thereby producing a tax-equivalent yield on these securities and loans that are comparable to yields obtained on similar taxable investments.
|
• |
Provision for loan losses amounted to $350,000 and $345,000 for the three months
ended March 31, 2019 and 2018, respectively. The provision for loan losses amounted to $1.1 million and $1.0 million for the nine months ended March 31, 2019 and 2018, respectively. The provision for loan loss was relatively unchanged
between these periods despite continued loan growth as a result of the recognition of a $150,000 recovery during the nine month ended March 31, 2019. Allowance for loan losses to total loans receivable decreased to 1.66% at March 31,
2019 as compared to 1.68% at June 30, 2018, and 1.69% at March 31, 2018.
|
• |
Net charge-offs for the three months ended March 31, 2019, amounted to $177,000,
and for the three months ended March 31, 2018, amounted to $75,000. Net charge-offs amounted to $236,000 and $444,000 for the nine months ended March 31, 2019 and 2018, respectively.
|
• |
Nonperforming loans amounted to $3.0 million at March 31, 2019 and $3.6 million at
June 30, 2018. At March 31, 2019 and June 30, 2018, respectively, nonperforming assets were 0.24% and 0.32% of total assets and nonperforming loans were 0.39% and 0.51% of net loans. At March 31, 2018, nonperforming assets to total
assets were 0.32% and nonperforming loans to net loans were 0.52%.
|
• |
Noninterest income increased $151,000, or 8.1%, and totaled $2.0 million and $1.9
million for the three months ended March 31, 2019 and 2018. Noninterest income increased $717,000, or 13.1%, and totaled $6.2 million and $5.5 million for the nine months ended March 31, 2019 and 2018. This increase was primarily due
to increases in debit card fees and service charges on deposit accounts resulting from continued growth in the number of checking accounts with debit cards, as well as increased monthly or transactional service charges on deposit
accounts. Investment services income also increased during the period due to higher sales volume of investment products. The increase in other operating income was primarily the result of an increase in fee income related to loans.
|
• |
Noninterest expense increased $704,000, or 12.2%, to $6.5 million for the three
months ended March 31, 2019, compared to $5.8 million for the three months ended March 31, 2018. Noninterest expense increased $2.7 million, or 16.9%, to $18.7 million for the nine months ended March 31, 2019, compared to $16.0 million
for the nine months ended March 31, 2018. This increase was primarily due to an increase in salaries and employee benefits expenses, resulting from additional staffing for the addition of our new Corporate Cash Management Department and
two new branches located in Copake and Woodstock, New York. Staffing was also increased within our lending department, customer service center, information technology department, BSA department, operations center, and investment
center. Also, other noninterest expense increased as a result of a $200,000 contribution to Bank of Greene County Charitable Foundation during the nine months ended March 31, 2019.
|
• |
Provision for income taxes directly reflects the expected tax associated with the
pre-tax income generated for the given year and certain regulatory requirements. The effective tax rate was 16.2% and 17.4% for the three months and nine months ended March 31, 2019, respectively, compared to 19.9% and 22.6% for the
three and nine months ended March 31, 2018, respectively. The decrease in the effective tax rate for the three and nine months ended March 31, 2019 is primarily the result of the impact of the enactment of the TCJA in December 2017.
The TCJA permanently reduces the maximum corporate income tax rate from 35% to 21% effective for tax years beginning after December 31, 2017. 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, as well as the tax benefits derived from premiums paid to the Company’s pooled captive insurance subsidiary to arrive at the effective tax rate.
|
• |
Total assets of the Company were $1.3 billion at March 31, 2019 and $1.2 billion at
June 30, 2018, an increase of $122.3 million, or 10.6%. This growth is the result of the continued expansion within our existing markets, across all three of our primary banking lines - retail, commercial, and municipal.
|
• |
Securities available-for-sale and held-to-maturity increased $108,000 to $395.5
million at March 31, 2019 as compared to $395.4 million at June 30, 2018, primarily the result of an increase in the unrealized gain on available-for-sale securities partially offset by the amortization of premiums during the period.
Securities purchases totaled $113.6 million during the nine months ended March 31, 2019 and consisted of $83.9 million of state and political subdivision securities, $29.3 million of mortgage-backed securities and $364,000 of other
securities. Principal pay-downs and maturities during the nine months ended March 31, 2019 amounted to $113.8 million, of which $21.8 million were mortgage-backed securities, $91.0 million were state and political subdivision securities
and $980,000 were other securities.
|
• |
Net loans receivable increased $58.9 million, or 8.4%, to $763.3 million at March
31, 2019 from $704.4 million at June 30, 2018. The loan growth experienced during the nine months ended March 31, 2019 consisted primarily of $25.3 million in commercial real estate loans, $2.1 million in commercial construction loans,
$15.4 million in commercial loans, $12.4 million in residential real estate loans, and $7.2 million in multi-family real estate loans. This growth was partially offset by a decrease in residential construction loans of $3.2 million.
The Company continues to experience loan growth as a result of continued growth in customer base within its newest markets in Ulster and Columbia counties, and its relationships with other financial institutions in originating loan
participations.
|
• |
Deposits totaled $1.1 billion at March 31, 2019 and $1.0 billion at June 30, 2018,
an increase of $114.5 million, or 11.2%. NOW deposits increased $151.8 million, or 29.1%, when comparing March 31, 2019 and June 30, 2018. This increase was offset by a decrease in money market deposits of $11.5 million, or 8.6%, a
decrease in savings deposits of $7.3 million, or 3.4%, a decrease in certificates of deposit of $15.6 million or 30.3%, and a decrease in noninterest-bearing deposits of $2.9 million, or 2.8%, when comparing March 31, 2019 and June 30,
2018. The overall increase in deposits is primarily the result of normal fluctuations in municipal deposits complimented by an increase in retail and commercial deposits as the Company continues to expand into its newest markets.
Included within certificates of deposits at June 30, 2018 were $15.0 million, respectively, in brokered certificates of deposit. There were no brokered certificates of deposit at March 31, 2019.
|
• |
Borrowings amounted to $12.7 million of long-term borrowings, with the Federal Home
Loan Bank of New York at March 31, 2019, compared to $18.2 million of long-term borrowings at June 30, 2018.
|
• |
Shareholders’ equity increased to $108.3 million at March 31, 2019 from $96.2
million at June 30, 2018, resulting primarily from net income of $13.3 million, partially offset by dividends declared and paid of $1.6 million and a decrease in other accumulated comprehensive loss of $284,000.
|
At or for the Three Months
Ended March 31,
|
At or for the Nine Months
Ended March 31,
|
|||||||||||||||
Dollars in thousands, except share and per share data
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Interest income
|
$
|
11,708
|
$
|
9,876
|
$
|
34,111
|
$
|
28,385
|
||||||||
Interest expense
|
1,682
|
1,016
|
4,433
|
2,895
|
||||||||||||
Net interest income
|
10,026
|
8,860
|
29,678
|
25,490
|
||||||||||||
Provision for loan losses
|
350
|
345
|
1,058
|
1,044
|
||||||||||||
Noninterest income
|
2,010
|
1,859
|
6,203
|
5,486
|
||||||||||||
Noninterest expense
|
6,486
|
5,782
|
18,694
|
15,987
|
||||||||||||
Income before taxes
|
5,200
|
4,592
|
16,129
|
13,945
|
||||||||||||
Tax provision
|
844
|
915
|
2,809
|
3,156
|
||||||||||||
Net Income
|
$
|
4,356
|
$
|
3,677
|
$
|
13,320
|
$
|
10,789
|
||||||||
Basic EPS
|
$
|
0.51
|
$
|
0.43
|
$
|
1.56
|
$
|
1.27
|
||||||||
Weighted average shares outstanding
|
8,537,814
|
8,517,614
|
8,537,814
|
8,508,103
|
||||||||||||
Diluted EPS
|
$
|
0.51
|
$
|
0.43
|
$
|
1.56
|
$
|
1.26
|
||||||||
Weighted average diluted shares outstanding
|
8,537,814
|
8,536,407
|
8,537,814
|
8,533,850
|
||||||||||||
Dividends declared per share 4
|
$
|
0.10
|
$
|
0.0975
|
$
|
0.30
|
$
|
0.2925
|
||||||||
Selected Financial
Ratios
|
||||||||||||||||
Return on average assets1
|
1.43
|
%
|
1.32
|
%
|
1.51
|
%
|
1.37
|
%
|
||||||||
Return on average equity1
|
16.44
|
%
|
16.17
|
%
|
17.45
|
%
|
16.36
|
%
|
||||||||
Net interest rate spread1
|
3.24
|
%
|
3.17
|
%
|
3.31
|
%
|
3.22
|
%
|
||||||||
Net interest margin1
|
3.34
|
%
|
3.24
|
%
|
3.41
|
%
|
3.29
|
%
|
||||||||
Fully taxable-equivalent net interest margin2
|
3.51
|
%
|
3.45
|
%
|
3.58
|
%
|
3.50
|
%
|
||||||||
Efficiency ratio3
|
53.89
|
%
|
53.94
|
%
|
52.10
|
%
|
51.61
|
%
|
||||||||
Non-performing assets to total assets
|
0.24
|
%
|
0.32
|
%
|
||||||||||||
Non-performing loans to net loans
|
0.39
|
%
|
0.52
|
%
|
||||||||||||
Allowance for loan losses to non-performing loans
|
429.92
|
%
|
328.58
|
%
|
||||||||||||
Allowance for loan losses to total loans
|
1.66
|
%
|
1.69
|
%
|
||||||||||||
Shareholders’ equity to total assets
|
8.50
|
%
|
7.89
|
%
|
||||||||||||
Dividend payout ratio4
|
19.23
|
%
|
23.03
|
%
|
||||||||||||
Actual dividends paid to net income5
|
12.34
|
%
|
10.61
|
%
|
||||||||||||
Book value per share
|
$
|
12.68
|
$
|
10.87
|
(Dollars in thousands)
|
For the three months ended
|
For the nine months ended
|
||||||||||||||
March 31, 2019
|
March 31, 2018
|
March 31, 2019
|
March 31, 2018
|
|||||||||||||
Net interest income (GAAP)
|
$
|
10,026
|
$
|
8,860
|
$
|
29,678
|
$
|
25,490
|
||||||||
Tax-equivalent adjustment
|
496
|
558
|
1,455
|
1,595
|
||||||||||||
Net interest income (fully taxable-equivalent basis)
|
$
|
10,522
|
$
|
9,418
|
$
|
31,133
|
$
|
27,085
|
||||||||
Average interest-earning assets
|
$
|
1,199,096
|
$
|
1,093,356
|
$
|
1,161,046
|
$
|
1,031,765
|
||||||||
Net interest margin (fully taxable-equivalent basis)
|
3.51
|
%
|
3.45
|
%
|
3.58
|
%
|
3.50
|
%
|
At March 31, 2019
|
At June 30, 2018
|
|||||||
(Dollars In thousands, except share data)
|
||||||||
Assets
|
||||||||
Total cash and cash equivalents
|
$
|
88,422
|
$
|
26,504
|
||||
Long term certificate of deposit
|
2,875
|
2,385
|
||||||
Securities- available for sale, at fair value
|
104,008
|
120,806
|
||||||
Securities- held to maturity, at amortized cost
|
291,456
|
274,550
|
||||||
Equity securities, at fair value
|
237
|
217
|
||||||
Federal Home Loan Bank stock, at cost
|
1,298
|
1,545
|
||||||
Gross loans receivable
|
775,352
|
715,641
|
||||||
Less: Allowance for loan losses
|
(12,846
|
)
|
(12,024
|
)
|
||||
Unearned origination fees and costs, net
|
779
|
814
|
||||||
Net loans receivable
|
763,285
|
704,431
|
||||||
Premises and equipment
|
13,193
|
13,304
|
||||||
Accrued interest receivable
|
6,125
|
5,057
|
||||||
Foreclosed real estate
|
54
|
119
|
||||||
Prepaid expenses and other assets
|
2,835
|
2,560
|
||||||
Total assets
|
$
|
1,273,788
|
$
|
1,151,478
|
||||
Liabilities and shareholders’ equity
|
||||||||
Noninterest bearing deposits
|
$
|
99,824
|
$
|
102,694
|
||||
Interest bearing deposits
|
1,039,954
|
922,540
|
||||||
Total deposits
|
1,139,778
|
1,025,234
|
||||||
Borrowings, long term
|
12,650
|
18,150
|
||||||
Accrued expenses and other liabilities
|
13,095
|
11,903
|
||||||
Total liabilities
|
1,165,523
|
1,055,287
|
||||||
Total shareholders’ equity
|
108,265
|
96,191
|
||||||
Total liabilities and shareholders’ equity
|
$
|
1,273,788
|
$
|
1,151,478
|
||||
Common shares outstanding
|
8,537,814
|
8,537,814
|
||||||
Treasury shares
|
73,526
|
73,526
|
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Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were removed , added and changed by Greene County Bancorp Inc.
Greene County Bancorp Inc's Definitive Proxy Statement (Form DEF 14A) filed after their 2019 10-K Annual Report includes:
Rating
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The allowance for loan losses is increased by a provision for loan losses (which results in a charge to expense) and recoveries of loans previously charged off and is reduced by charge-offs.
To operate successfully, the Company must manage various types of risk, including but not limited to, market or interest rate risk, credit risk, transaction risk, liquidity risk, security risk, strategic risk, reputation risk and compliance risk.
A significant decline in home values, however, in the Companys markets could have a negative effect on the consolidated results of operations, as any such decline in home values would likely lead to a decrease in residential real estate loans and new home equity loan originations and increased delinquencies and defaults in both the consumer home equity loan and the residential real estate loan portfolios and result in increased losses in these portfolios.
The increase in return on average assets and return on average equity was primarily the result of growth in net income resulting from growth in interest-earning assets with continued growth in loans and securities.
ALLOWANCE FOR LOAN LOSSES The allowance for loan losses is established through a provision for loan losses based on managements evaluation of the risk inherent in the loan portfolio, the composition of the loan portfolio, specific impaired loans and current economic conditions.
This increase was primarily due...Read more
With the recent increases in...Read more
As illustrated in the rate/volume...Read more
Investment services income also increased...Read more
Factors that could affect actual...Read more
Net interest margin increased 10...Read more
Net interest spread and margin...Read more
Annualized return on average assets...Read more
The $120.0 million of irrevocable...Read more
Average deposits increased $85.7 million...Read more
Increases in average balances on...Read more
At March 31, 2019, 56.1%...Read more
The statutory tax rate is...Read more
This increase was primarily due...Read more
These increases in net interest...Read more
LOANS Net loans receivable increased...Read more
Annualized return on average equity...Read more
The maximum amount of funding...Read more
There were no short-term or...Read more
The Company continues to experience...Read more
Generally, management places loans on...Read more
Analysis of Nonaccrual Loans and...Read more
The overall increase in deposits...Read more
Effective July 1, 2018, Greene...Read more
We believe that the continued...Read more
This increase was offset by...Read more
CASH AND CASH EQUIVALENTS Total...Read more
The effective tax rate was...Read more
These factors should be considered...Read more
Average assets increased $106.1 million,...Read more
Average assets increased $129.7 million,...Read more
Financial institutions like the Company...Read more
Comparison of Financial Condition at...Read more
Net income amounted to $4.4...Read more
The decrease in the effective...Read more
Greene County Bancorp, Inc.?s primary...Read more
The $12.7 million consisted of...Read more
The increase in average loan...Read more
The increase in the average...Read more
SECURITIES Securities available-for-sale and held-to-maturity...Read more
This adjustment is considered helpful...Read more
As a result of the...Read more
Noninterest income increased $717,000, or...Read more
NONINTEREST INCOME Noninterest income increased...Read more
Financial Statements, Disclosures and Schedules
Inside this 10-Q Quarterly Report
Material Contracts, Statements, Certifications & more
Greene County Bancorp Inc provided additional information to their SEC Filing as exhibits
Ticker: GCBC
CIK: 1070524
Form Type: 10-Q Quarterly Report
Accession Number: 0001140361-19-008706
Submitted to the SEC: Thu May 09 2019 2:10:38 AM EST
Accepted by the SEC: Thu May 09 2019
Period: Sunday, March 31, 2019
Industry: Savings Institutions Not Federally Chartered