Please wait while we load the requested 10-K report or click the link below:
https://last10k.com/sec-filings/report/1070524/000114036119016552/form10k.htm
April 2022
April 2022
January 2022
January 2022
November 2021
October 2021
October 2021
September 2021
July 2021
July 2021
• |
Net interest income increased $898,000 to $10.3 million for the three months ended June 30, 2019 from $9.4 million for the three months ended June 30, 2018. Net interest income increased $5.1
million to $40.0 million for the year ended June 30, 2019 from $34.9 million for the year ended June 30, 2018. These increases in net interest income were primarily the result of the growth in the average balance of interest-earning
assets, which increased $108.5 million and $124.1 million when comparing the three months and years ended June 30, 2019 and 2018, respectively, and increases in interest rates on interest-earning assets, which increased 21 basis points
and 23 basis points when comparing the three months and years ended June 30, 2019 and 2018, respectively. These increases were partially offset by higher costing interest-bearing liabilities, which increased 25 basis points and 18 basis
points when comparing the three months and years ended June 30, 2019 and 2018, respectively. The higher interest costs are primarily the result of growth in NOW deposits due to the introduction of a new higher rate checking account
product, in the second half of fiscal 2019, designed to attract new deposits within our newer markets.
|
• |
Net interest spread decreased four basis points to 3.21% for the three months ended June 30, 2019 compared to 3.25% for the three months ended June 30, 2018. Net interest spread increased five
basis points to 3.28% for the year ended June 30, 2019 compared to 3.23% for the year ended June 30, 2018.
|
• |
Net interest margin remained flat at 3.34% for the three months ended June 30, 2019 and 2018. Net interest margin increased eight basis points to 3.39% for the year ended June 30, 2019 compared
to 3.31%, for the year ended June 30, 2018.
|
• |
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 3.56% for the three months ended June 30, 2019 and 2018, respectively. Tax equivalent net
interest margin was 3.56% and 3.52% for the years ended June 30, 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 twelve months ended June 30, 2019 compared to June 30,
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 $601,000 and $486,000 for the three months ended June 30, 2019 and 2018, respectively. The provision for loan losses amounted to $1.7 million and $1.5
million for the years ended June 30, 2019 and 2018, respectively. The increase in the provision for loan loss for the three months and year ended June 30, 2019 is the result of continued growth in loan balances, and an increase in loans
classified as substandard. Net loans grew $81.3 million during the year ended June 30, 2019. The Company continues to focus on commercial lending. Allowance for loan losses to total loans receivable decreased to 1.65% as of June 30,
2019 as compared to 1.68% as of June 30, 2018. Despite the significant increases in net loans over the past two years, the level of nonperforming loans has remained stable and the level of charge-off activity has been low, which has
led to this decrease in the allowance for loan losses to total loans receivable.
|
• |
Net charge-offs amounted to $246,000 and $85,000 for the three months ended June 30, 2019 and 2018, respectively, and amounted to $483,000 and $528,000 for the years ended June 30, 2019 and
2018, respectively. The increase in net charges-offs for the three months ended June 30, 2019 compared to 2018 was the result of the recognition of a partial charge-off totaling $162,000 for a residential mortgage that was modified as
a troubled debt restructuring. This increase was offset during the second quarter of the fiscal year ended June 30, 2019 by the recognition of a recovery of a commercial installment loan totaling $150,000.
|
• |
Nonperforming loans amounted to $3.6 million at June 30, 2019 and 2018, respectively. At June 30, 2019 and June 30, 2018, respectively, nonperforming assets to total assets were 0.29% and
0.32% and nonperforming loans to net loans were 0.46% and 0.51%.
|
• |
Noninterest income increased $163,000, or 8.2%, to $2.2 million for the three months ended June 30, 2019 as compared to $2.0 million for the three months ended June 30, 2018. Noninterest
income increased $880,000, or 11.8%, to $8.4 million for the year ended June 30, 2019 as compared to $7.5 million for the year ended June 30, 2018. These increases are 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 periods 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 $607,000, or 9.5%, to $7.0 million for the three months ended June 30, 2019 as compared to $6.4 million for the three months ended June 30, 2018. Noninterest
expense increased $3.3 million, or 14.8%, to $25.7 million for the year ended June 30, 2019 as compared to $22.4 million for the year ended June 30, 2018. These increases in noninterest expense are primarily the result of an increase in
salaries and employee benefits expenses as well as other operating costs resulting from the opening of a new branch located in Woodstock, New York and the addition of staffing in anticipation of opening of a new branch in Kinderhook -
Valatie, New York. The increase was also the result of the addition of our new Corporate Cash Management Department, and growth 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 $250,000 contribution to Bank of Greene County Charitable Foundation during the year ended June 30, 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
15.0% and 16.9% for the three months and year ended June 30, 2019, respectively, compared to 20.6% and 22.1% for the three months and year ended June 30, 2018. The decrease in the effective tax rate for the three months and year ended
June 30, 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 June 30, 2019 as compared to $1.2 million at June 30, 2018, an increase of $118.0 million, or 10.2%. 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 $31.6 million, or 8.0%, to $426.9 million at June 30, 2019 as compared to $395.3 million at June 30, 2018. Securities purchases
totaled $191.3 million during the year ended June 30, 2019 and consisted of $150.9 million of state and political subdivision securities, $40.1 million of mortgage backed securities, and $364,000 of other securities. Principal pay-downs
and maturities during the year amounted to $160.7 million, of which $29.4 million consisted of mortgage-backed securities, $131.0 million consisted of state and political subdivision securities, and $250,000 consisted of corporate debt
securities.
|
• |
Net loans receivable increased $81.3 million, or 11.5%, to $785.7 million at June 30, 2019 from $704.4 million at June 30, 2018. The loan growth experienced during the year consisted primarily
of $45.7 million in commercial real estate loans, $18.9 million in commercial loans, $9.6 million in multi-family real estate loans, $12.0 million in residential real estate loans, partially offset by a $5.6 million decrease in
construction loans. 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.
|
• |
Total deposits increased to $1.1 billion at June 30, 2019 from $1.0 billion at June 30, 2018, an increase of $95.3 million, or 9.3%. This increase was partially the result of a $37.5 million
increase in municipal deposits at Greene County Commercial Bank, primarily from continued growth in new account relationships as well as tax collection. NOW deposits increased $125.6 million, or 24.1%, and noninterest-bearing deposits
increased $4.8 million, or 4.7% when comparing June 30, 2019 and 2018. These increases were partially offset by a decrease in money market deposits of $18.8 million, or 14.1%, certificates of deposit of $14.8 million, or 28.8%, and
savings deposits of $1.4 million, or 1.0% when comparing June 30, 2019 and 2018. Included within certificates of deposits at June 30, 2018 were $15.0 million, in brokered certificates of deposit. At June 30, 2019, there were no brokered
certificates of deposit.
|
• |
Borrowings amounted to $8.0 million of overnight borrowings and $13.6 million of long-term borrowings, with the Federal Home Loan Bank of New York, at June 30, 2019 At June 30, 2018, there were
no overnight borrowings and $18.2 million of long-term borrowings with the Federal Home Loan Bank of New York.
|
• |
Shareholders’ equity increased $16.2 million to $112.4 million at June 30, 2019 from $96.2 million at June 30, 2018, as net income of $17.5 million was partially offset by dividends declared
and paid of $2.0 million. Other changes in equity consisted of a decrease in other comprehensive loss of $617,000.
|
At or for the Three Months
|
At or for the Years
|
|||||||||||||||
Ended June 30,
|
Ended June 30,
|
|||||||||||||||
Dollars in thousands, except share and per share data
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Interest income
|
$
|
12,197
|
$
|
10,543
|
$
|
46,308
|
$
|
38,928
|
||||||||
Interest expense
|
1,875
|
1,119
|
6,308
|
4,014
|
||||||||||||
Net interest income
|
10,322
|
9,424
|
40,000
|
34,914
|
||||||||||||
Provision for loan losses
|
601
|
486
|
1,659
|
1,530
|
||||||||||||
Noninterest income
|
2,158
|
1,995
|
8,361
|
7,481
|
||||||||||||
Noninterest expense
|
6,982
|
6,375
|
25,676
|
22,362
|
||||||||||||
Income before taxes
|
4,897
|
4,558
|
21,026
|
18,503
|
||||||||||||
Tax provision
|
733
|
939
|
3,542
|
4,095
|
||||||||||||
Net Income
|
$
|
4,164
|
$
|
3,619
|
$
|
17,484
|
$
|
14,408
|
||||||||
Basic EPS
|
$
|
0.49
|
$
|
0.42
|
$
|
2.05
|
$
|
1.69
|
||||||||
Weighted average shares outstanding
|
8,537,814
|
8,529,981
|
8,537,814
|
8,513,558
|
||||||||||||
Diluted EPS
|
$
|
0.49
|
$
|
0.42
|
$
|
2.05
|
$
|
1.69
|
||||||||
Weighted average diluted shares outstanding
|
8,537,814
|
8,537,892
|
8,537,814
|
8,534,909
|
||||||||||||
Dividends declared per share 4
|
$
|
0.10
|
$
|
0.0975
|
$
|
0.40
|
$
|
0.39
|
||||||||
Selected Financial Ratios
|
||||||||||||||||
Return on average assets1
|
1.33
|
%
|
1.26
|
%
|
1.46
|
%
|
1.34
|
%
|
||||||||
Return on average equity1
|
15.11
|
%
|
15.35
|
%
|
16.83
|
%
|
16.09
|
%
|
||||||||
Net interest rate spread1
|
3.21
|
%
|
3.25
|
%
|
3.28
|
%
|
3.23
|
%
|
||||||||
Net interest margin1
|
3.34
|
%
|
3.34
|
%
|
3.39
|
%
|
3.31
|
%
|
||||||||
Fully taxable-equivalent net interest margin2
|
3.51
|
%
|
3.56
|
%
|
3.56
|
%
|
3.52
|
%
|
||||||||
Efficiency ratio3
|
55.95
|
%
|
55.83
|
%
|
53.09
|
%
|
52.75
|
%
|
||||||||
Non-performing assets to total assets
|
0.29
|
%
|
0.32
|
%
|
||||||||||||
Non-performing loans to net loans
|
0.46
|
%
|
0.51
|
%
|
||||||||||||
Allowance for loan losses to non-performing loans
|
362.84
|
%
|
335.96
|
%
|
||||||||||||
Allowance for loan losses to total loans
|
1.65
|
%
|
1.68
|
%
|
||||||||||||
Shareholders’ equity to total assets
|
8.85
|
%
|
8.35
|
%
|
||||||||||||
Dividend payout ratio4
|
19.51
|
%
|
23.08
|
%
|
||||||||||||
Actual dividends paid to net income5
|
11.65
|
%
|
10.59
|
%
|
||||||||||||
Book value per share
|
$
|
13.16
|
$
|
11.27
|
For the three months ended June 30,
|
For the years ended June 30,
|
|||||||||||||||
(Dollars in thousands)
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Net interest income (GAAP)
|
$
|
10,322
|
$
|
9,424
|
$
|
40,000
|
$
|
34,914
|
||||||||
Tax-equivalent adjustment
|
547
|
627
|
1,999
|
2,223
|
||||||||||||
Net interest income (fully taxable-equivalent basis)
|
$
|
10,869
|
$
|
10,051
|
$
|
41,999
|
$
|
37,137
|
||||||||
Average interest-earning assets
|
$
|
1,237,878
|
$
|
1,129,376
|
$
|
1,180,201
|
$
|
1,056,101
|
||||||||
Net interest margin (fully taxable-equivalent basis)
|
3.51
|
%
|
3.56
|
%
|
3.56
|
%
|
3.52
|
%
|
As of
June 30, 2019
|
As of
June 30, 2018
|
|||||||
(Dollars In thousands)
|
||||||||
Assets
|
||||||||
Total cash and cash equivalents
|
$
|
29,538
|
$
|
26,504
|
||||
Long term certificate of deposit
|
2,875
|
2,385
|
||||||
Securities- available for sale, at fair value
|
122,728
|
120,806
|
||||||
Securities- held to maturity, at amortized cost
|
304,208
|
274,550
|
||||||
Equity Securities, at fair value
|
253
|
217
|
||||||
Federal Home Loan Bank stock, at cost
|
1,759
|
1,545
|
||||||
Gross loans receivable
|
798,105
|
715,641
|
||||||
Less: Allowance for loan losses
|
(13,200
|
)
|
(12,024
|
)
|
||||
Unearned origination fees and costs, net
|
833
|
814
|
||||||
Net loans receivable
|
785,738
|
704,431
|
||||||
Premises and equipment
|
13,255
|
13,304
|
||||||
Accrued interest receivable
|
5,853
|
5,057
|
||||||
Foreclosed real estate
|
53
|
119
|
||||||
Prepaid expenses and other assets
|
3,202
|
2,560
|
||||||
Total assets
|
$
|
1,269,462
|
$
|
1,151,478
|
||||
Liabilities and shareholders’ equity
|
||||||||
Noninterest bearing deposits
|
$
|
107,469
|
$
|
102,694
|
||||
Interest bearing deposits
|
1,013,100
|
922,540
|
||||||
Total deposits
|
1,120,569
|
1,025,234
|
||||||
Borrowings from FHLB, short term
|
8,000
|
-
|
||||||
Borrowings from FHLB, long term
|
13,600
|
18,150
|
||||||
Accrued expenses and other liabilities
|
14,924
|
11,903
|
||||||
Total liabilities
|
1,157,093
|
1,055,287
|
||||||
Total shareholders’ equity
|
112,369
|
96,191
|
||||||
Total liabilities and shareholders’ equity
|
$
|
1,269,462
|
$
|
1,151,478
|
||||
Common shares outstanding
|
8,537,814
|
8,537,814
|
||||||
Treasury shares
|
73,526
|
73,526
|
Please wait while we load the requested 10-K report or click the link below:
https://last10k.com/sec-filings/report/1070524/000114036119016552/form10k.htm
Compare this 10-K Annual 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
Learn More![]()
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.
A significant decline in home values, however, in the Company's 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 Company considers many factors, including the severity and duration of the impairment; the intent and ability of the Company to hold the equity security for a period of time sufficient for a recovery in value; recent events specific to the issuer or industry; and for debt securities, the intent to sell the security, the likelihood to be required to sell the security before it recovers the entire amortized cost, external credit ratings and recent downgrades.
Also, other noninterest expense increased as a result of an increase in foreclosed real estate losses, fees related to correspondent bank activity, and a general increase in other expenses related to branch expansion and balance sheet growth.
IMPACT OF INFLATION AND CHANGING PRICES The consolidated financial statements of Greene County Bancorp, Inc. and notes thereto, presented elsewhere herein, have been prepared in accordance with U.S. generally accepted accounting principles, which require the measurement of financial position and operating results in terms of historical dollars without considering the change in the relative purchasing power of money over time and due to inflation.
The yield earned on such...Read more
IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS...Read more
Interest income earned on securities...Read more
The increase was also the...Read more
ALLOWANCE FOR LOAN LOSSES The...Read more
Analysis of allowance for loan...Read more
This increase was primarily due...Read more
These increases in noninterest expense...Read more
The impact of inflation is...Read more
Investment services income also increased...Read more
FINANCIAL OVERVIEW Net income for...Read more
The increase in accrued interest...Read more
This increase was due to...Read more
Net interest spread and margin...Read more
The Company has an Irrevocable...Read more
SHAREHOLDERS' EQUITY Shareholders' equity increased...Read more
Net interest margin increased to...Read more
Analysis of Nonaccrual Loans, Nonperforming...Read more
Greene County Bancorp, Inc. holds...Read more
The statutory tax rate is...Read more
Net interest margin increased eight...Read more
Total assets grew $118.0 million,...Read more
LOANS Net loans receivable increased...Read more
The change in net interest...Read more
The Company continues to experience...Read more
Generally, management places loans on...Read more
Purchases totaled $589,000 during the...Read more
Purchases totaled $324,000 during the...Read more
The allowance for loan losses...Read more
Growth in loans was primarily...Read more
The decrease in impaired loans...Read more
Such evaluation, which includes a...Read more
We believe that the continued...Read more
INTEREST EXPENSE Interest expense for...Read more
Interest expense paid on certificates...Read more
Deposits grew $95.3 million, or...Read more
Critical Accounting Policies Greene County...Read more
Total average interest-earning assets increased...Read more
Growth in interest-earning assets was...Read more
The effective tax rate was...Read more
The increase in the average...Read more
Comparison of Financial Condition as...Read more
Greene County Bancorp, Inc. has...Read more
Taxable-equivalent net interest income and...Read more
The average balance of savings...Read more
Financial Statements, Disclosures and Schedules
Inside this 10-K Annual 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-K Annual Report
Accession Number: 0001140361-19-016552
Submitted to the SEC: Thu Sep 12 2019 2:05:49 AM EST
Accepted by the SEC: Thu Sep 12 2019
Period: Sunday, June 30, 2019
Industry: Savings Institutions Not Federally Chartered