Greene County Bancorp, Inc. Reports Record Earnings for Quarter Ended September 30, 2012

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Greene County Bancorp, Inc. Reports Record Earnings for Quarter Ended September 30, 2012

CATSKILL, N.Y.--(BUSINESS WIRE)-- Greene County Bancorp, Inc. (the "Company") (NAS: GCBC) , the holding company for The Bank of Greene County and its subsidiary Greene County Commercial Bank, today reported net income for the quarter ended September 30, 2012, which is the first quarter of the Company's fiscal year ending June 30, 2013.

Net income increased $255,000, or 16.9%, to $1.8 million, or $0.42 per basic and diluted share, for the quarter ended September 30, 2012, from net income of $1.5 million, or $0.36 per basic and diluted share, for the quarter ended September 30, 2011.


Donald E. Gibson, President & CEO stated: "I am pleased to report record quarterly earnings for the period ending on September 30, 2012. The strong results reflect the benefits in our strategy of making long term investments in people, upgraded facilities, new products and technology, all of which have made us more efficient."

Selected highlights for the quarter ended September 30, 2012 are as follows:

  • Net interest income increased $193,000 to $5.4 million for the quarter ended September 30, 2012 from $5.2 million for the quarter ended September 30, 2011. The increase in average loan balances, partially offset by the narrowing of the net interest spread and margin, led to an increase in net interest income when compared to the quarters ended September 30, 2012 and 2011.
  • Net interest spread decreased 13 basis points to 3.70% for the quarter ended September 30, 2012 from 3.83% for the quarter ended September 30, 2011. Net interest margin decreased 16 basis points to 3.80% for the quarter ended September 30, 2012, compared to 3.96% for the quarter ended September 30, 2011. Despite the positive effects on net interest income from increased volume and a lower cost of funds, declines in the yields on interest-earning assets resulted in our net interest spread and net interest margin narrowing when comparing the quarters ended September 30, 2012 and 2011 respectively. Although the Company has benefited from re-pricing its interest-bearing liabilities in the continuing historically low interest rate environment, the average interest rates earned on our loans and investments have similarly continued to re-price into lower yields.
  • The provision for loan losses totaled $444,000 and $474,000 for the quarters ended September 30, 2012 and 2011, respectively. The allowance for loan losses totaled $6.5 million at September 30, 2012 compared to $6.2 million at June 30, 2012, and $5.5 million at September 30, 2011. The level of the allowance for loan losses to total loans receivable increased to 1.91% at September 30, 2012 from 1.86% at June 30, 2012, and 1.75% at September 30, 2011.
  • Net charge-offs totaled $85,000 and $90,000 for the quarters ended September 30, 2012 and 2011, respectively, a decrease of $5,000.
  • Nonperforming loans decreased by $127,000, or 1.8%, to $6.9 million at September 30, 2012 from $7.0 million at June 30, 2012. Nonperforming loans remain high compared to historical levels as a result of adverse changes in the economy and local unemployment, which have been compounded by the extended length of time required to complete foreclosures in New York State.
  • Noninterest income increased $65,000, or 5.4%, to $1.3 million for the quarter ended September 30, 2012 from $1.2 million for the quarter ended September 30, 2011, which was primarily due to an increase in service charges on deposits resulting from continued growth in the number of deposit accounts.
  • Noninterest expense was flat when comparing the quarters ended September 30, 2012 and 2011 at $3.7 million for both periods. However, salaries and employee benefits increased $66,000, advertising increased $53,000, and service and data processing fees increased $26,000. These increases were offset by a $25,000 decrease in legal and professional fees, a $15,000 decrease in FDIC insurance premiums, and a $92,000 decrease in other expenses. Included in the decreases in other expenses were a $54,000 decrease in debit card expenses and a $41,000 decrease in net foreclosed real estate expenses.
  • Total assets of the Company were $600.9 million at September 30, 2012 compared to $590.7 million at June 30, 2012, an increase of $10.2 million, or 1.7%.
  • Securities available for sale and held to maturity totaled $220.8 million, or 36.7% of assets, at September 30, 2012 as compared to $233.9 million, or 39.6% of assets, at June 30, 2012, a decrease of $13.1 million or 5.6%.
  • Net loans grew by $9.2 million, or 2.8%, to $336.0 million at September 30, 2012 compared to $326.8 million at June 30, 2012. The loan growth experienced during the quarter primarily consisted of $2.4 million in nonresidential real estate loans, $4.5 million in residential mortgage loans, $561,000 in home equity loans, $1.3 million in construction loans, and $580,000 in consumer and commercial loans, and was partially offset by a $359,000 increase in the allowance for loan losses.
  • Total deposits increased $24.2 million, or 4.7% to $536.1 million at September 30, 2012 from $511.9 million at June 30, 2012. This increase was primarily the result of a $32.6 million increase in balances at the Company's Commercial Bank subsidiary due primarily to the annual collection of taxes by several local school districts.
  • The Company had no overnight borrowings with the Federal Home Loan Bank at September 30, 2012 compared to $14.0 million of such borrowings at June 30, 2012.
  • Total shareholders' equity increased $1.2 million to $53.9 million, or 9.0% of total assets, at September 30, 2012, from total equity of $52.7 million, or 8.9% of total assets, at June 30, 2012.

Headquartered in Catskill, New York, the Company provides full-service community-based banking through its twelve branch offices located in Greene, Columbia and Albany Counties. Customers are offered 24-hour services through ATM network systems, an automated telephone banking system and Internet Banking through its web site at http://www.tbogc.com.

This press release contains statements about future events that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, general economic conditions, changes in interest rates, regulatory considerations, competition, technological developments, retention and recruitment of qualified personnel, and market acceptance of the Company's pricing, products and services.

  At or for the Quarter
Ended September 30,
2012 2011
In thousands,

except share and per share data

 
Interest income$6,131$6,205
Interest expense7391,006
Net interest income5,3925,199
Provision for loan losses444474
Noninterest income1,2791,214
Noninterest expense3,6733,658
Income before taxes2,5542,281
Tax provision790772
Net Income$1,764$1,509
 
Basic EPS$0.42$0.36
Weighted average

shares outstanding

4,183,932

4,145,828
 
Diluted EPS$0.42$0.36
Weighted average

diluted shares outstanding

4,221,451

4,190,151
 
Dividends declared per share 2$0.175$0.175
 

Selected Financial Ratios

Return on average assets1.20%1.10%
Return on average equity13.28%12.41%
Net interest rate spread3.70%3.83%
Net interest margin3.80%3.96%
Efficiency ratio155.06%57.04%
Non-performing assets

to total assets

1.18%

1.35%
Non-performing loans

to net loans

2.05%

2.37%
Allowance for loan losses to

non-performing loans

94.86%

75.05%
Allowance for loan losses to

total loans

1.91%

1.75%
Shareholders' equity to total assets8.96%8.90%
Dividend payout ratio241.67%48.61%
Book value per share$12.87$11.94

1 Noninterest expense divided by the sum of net interest income and noninterest income.

2 Greene County Bancorp, MHC, the owner of 55.1% of the shares outstanding by the Company, waived its right to receive the dividends during the quarter ended September 30, 2011, no adjustment has been made to account for this waiver. During the quarter ended September 30, 2012, Greene County Bancorp, MHC ("MHC") did not receive permission to waive dividends. The Federal Reserve Bank has adopted interim final regulations that impose significant conditions and restrictions on the ability of mutual holding companies to waive the receipt of dividends from their subsidiaries the MHC did not obtain the non-objection of the Federal Reserve Board to waive the receipt of its dividends on the Company's common stock.

  As of

September 30, 2012

 As of

June 30, 2012

Dollars (In thousands)

Assets

Total cash and cash equivalents$22,919$7,742
Securities- available for sale, at fair value81,82487,528
Securities- held to maturity, at amortized cost138,970146,389
Federal Home Loan Bank stock, at cost1,1141,744
 
Gross loans receivable342,023332,450
Less: Allowance for loan losses(6,536)(6,177)
Unearned origination fees and costs, net525478
Net loans receivable336,012326,751
 
Premises and equipment14,75014,899
Accrued interest receivable2,8362,688
Foreclosed real estate200260
Prepaid expenses and other assets2,3072,655
Total assets$600,932$590,656
 

Liabilities and shareholders' equity

Noninterest bearing deposits$48,993$52,783
Interest bearing deposits487,150459,154
Total deposits536,143511,937
 
Borrowings from FHLB, short term---14,000
Borrowings from FHLB, long term7,0007,000
Accrued expenses and other liabilities3,9205,055
Total liabilities547,063537,992
Total shareholders' equity53,86952,664
Total liabilities and shareholders' equity$600,932$590,656
Common shares outstanding4,184,6714,182,671
Treasury shares120,999122,999



Greene County Bancorp, Inc.
Donald E. Gibson, 518-943-2600
President & CEO
donaldg@tbogc.com
or
Michelle M. Plummer, CPA
EVP, COO & CFO
518-943-2600
michellep@tbogc.com

KEYWORDS:   United States  North America  New York

INDUSTRY KEYWORDS:

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