CATSKILL, N.Y., April 21, 2017 (GLOBE NEWSWIRE) -- Greene County Bancorp, Inc. (the “Company”) (NASDAQ:GCBC), the holding company for The Bank of Greene County and its subsidiary Greene County Commercial Bank, today reported net income for the three and nine months ended March 31, 2017, which is the third quarter of the Company’s fiscal year ending June 30, 2017. Net income for the three and nine months ended March 31, 2017 was $2.9 million, or $0.34 per basic and diluted share, and $8.3 million, or $0.98 per basic and diluted share, respectively, as compared to $2.2 million, or $0.26 per basic share and $0.25 per diluted share, and $6.6 million, or $0.78 per basic and diluted share, for the three and nine months ended March 31, 2016, respectively. Net income increased $736,000, or 34.1%, when comparing the three months ended March 31, 2017 and 2016, and increased $1.7 million, or 25.8%, when comparing the nine months ended March 31, 2017 and 2016.
Donald Gibson, President & CEO stated, “I am pleased to report another very solid quarter. Highlighting the quarter was our Bank’s balance sheet growth. At quarter end March 31, 2017, we reached several new milestones. For the first time in our Bank’s history we surpassed $950 million in assets and $600 million in gross loans.”
On April 18, 2017, for the sixth consecutive year, Greene County Bancorp, Inc. was recognized by investment banking firm KBW for our exceptional 10 year track record. This year, only 15 U.S. banking institutions made the honor roll, down from 18 institutions in the prior year. To be eligible for the KBW Bank Honor Roll, banks must be publically traded institutions with more than $500 million in assets, and meet the following conditions:
Selected highlights for the three and nine months ended March 31, 2017 are as follows:
Net Interest Income and Margin
Asset Quality and Loan Loss Provision
Noninterest Income and Noninterest Expense
Income Taxes
Balance Sheet Summary
Greene County Bancorp, Inc. is the direct and indirect holding company, respectively, for The Bank of Greene County, a federally chartered savings bank, and Greene County Commercial Bank, a New York-chartered commercial bank, both headquartered in Catskill, New York. Our primary market area is the Hudson Valley in New York State. For more information on Greene County Bancorp, Inc., visit 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.
In addition to presenting information in conformity with accounting principles generally accepted in the United States of America (GAAP), this news release contains financial information determined by methods other than GAAP (non-GAAP). The following measures used in this release, which are commonly utilized by financial institutions, have not been specifically exempted by the Securities and Exchange Commission ("SEC") and may constitute "non-GAAP financial measures" within the meaning of the SEC's rules. The Company has provided in this news release supplemental disclosures for the calculation of net interest margin utilizing a fully taxable-equivalent adjustment. Management believes that the non-GAAP financial measures disclosed by the Company from time to time are useful in evaluating the Company's performance and that such information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Our non-GAAP financial measures may differ from similar measures presented by other companies. See the reconciliation of GAAP to non-GAAP measures in the section "Select Financial Ratios."
Greene County Bancorp, Inc. | ||||||||||||
Consolidated Statements of Income (Unaudited) | ||||||||||||
At or for the Three | At or for the Nine | |||||||||||
Months Ended March 31, | Months Ended March 31, | |||||||||||
Dollars in thousands, except share and per share data | 2017 | 2016 | 2017 | 2016 | ||||||||
Interest income | $ | 8,411 | $ | 7,263 | $ | 24,709 | $ | 21,262 | ||||
Interest expense | 784 | 652 | 2,264 | 1,892 | ||||||||
Net interest income | 7,627 | 6,611 | 22,445 | 19,370 | ||||||||
Provision for loan losses | 343 | 421 | 1,472 | 1,138 | ||||||||
Noninterest income | 1,582 | 1,418 | 4,743 | 4,433 | ||||||||
Noninterest expense | 5,023 | 4,804 | 14,565 | 14,042 | ||||||||
Income before taxes | 3,843 | 2,804 | 11,151 | 8,623 | ||||||||
Tax provision | 946 | 643 | 2,821 | 1,992 | ||||||||
Net Income | $ | 2,897 | $ | 2,161 | $ | 8,330 | $ | 6,631 | ||||
Basic EPS | $ | 0.34 | $ | 0.26 | $ | 0.98 | $ | 0.78 | ||||
Weighted average shares outstanding | 8,502,614 | 8,464,392 | 8,492,501 | 8,454,147 | ||||||||
Diluted EPS | $ | 0.34 | $ | 0.25 | $ | 0.98 | $ | 0.78 | ||||
Weighted average diluted shares outstanding | 8,519,376 | 8,484,209 | 8,509,752 | 8,469,732 | ||||||||
Dividends declared per share 4 | $ | 0.0950 | $ | 0.0925 | $ | 0.2850 | $ | 0.2775 | ||||
Selected Financial Ratios | ||||||||||||
Return on average assets1 | 1.24 | % | 1.05 | % | 1.23 | % | 1.14 | % | ||||
Return on average equity1 | 14.56 | % | 12.03 | % | 14.36 | % | 12.68 | % | ||||
Net interest rate spread1 | 3.26 | % | 3.24 | % | 3.32 | % | 3.33 | % | ||||
Net interest margin1 | 3.33 | % | 3.31 | % | 3.39 | % | 3.40 | % | ||||
Fully taxable-equivalent net interest margin1,2 | 3.58 | % | 3.56 | % | 3.64 | % | 3.65 | % | ||||
Efficiency ratio3 | 54.54 | % | 59.83 | % | 53.57 | % | 58.99 | % | ||||
Non-performing assets to total assets | 0.40 | % | 0.48 | % | ||||||||
Non-performing loans to net loans | 0.60 | % | 0.76 | % | ||||||||
Allowance for loan losses to non-performing loans | 293.81 | % | 239.94 | % | ||||||||
Allowance for loan losses to total loans | 1.74 | % | 1.79 | % | ||||||||
Shareholders’ equity to total assets | 8.45 | % | 8.57 | % | ||||||||
Dividend payout ratio4 | 29.08 | % | 35.58 | % | ||||||||
Actual dividends paid to net income5 | 13.35 | % | 16.15 | % | ||||||||
Book value per share | $ | 9.52 | $ | 8.61 | ||||||||
1 Ratios are annualized when necessary. | ||||||||||||
2 Interest income calculated on a taxable-equivalent basis includes the additional 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. The rate used for this adjustment was approximately 34% for federal income taxes and 3.32% and 3.63% for New York State income taxes for the three and nine months ended March 31, 2017 and 2016, respectively. |
Non-GAAP reconciliation – Fully taxable equivalent net interest margin | ||||||||||||
For the three months ended | For the nine months ended | |||||||||||
(Dollars in thousands) | March 31, 2017 | March 31, 2016 | March 31, 2017 | March 31, 2016 | ||||||||
Net interest income (GAAP) | $ | 7,627 | $ | 6,611 | $ | 22,445 | $ | 19,370 | ||||
Tax-equivalent adjustment | 565 | 494 | 1,622 | 1,398 | ||||||||
Net interest income (fully taxable-equivalent basis) | $ | 8,192 | $ | 7,105 | $ | 24,068 | $ | 20,768 | ||||
Average interest-earning assets | $ | 915,483 | $ | 799,099 | $ | 881,924 | $ | 759,470 | ||||
Net interest margin (fully taxable-equivalent basis) | 3.58 | % | 3.56 | % | 3.64 | % | 3.65 | % | ||||
3 The efficiency ratio has been calculated as noninterest expense divided by the sum of net interest income and noninterest income. | ||||||||||||
4 The dividend payout ratio has been calculated based on the dividends declared per share divided by basic earnings per share. No adjustments have been made to account for dividends waived by Greene County Bancorp, MHC (“MHC”), the owner of 54.2% of the Company’s shares outstanding. | ||||||||||||
5 Dividends declared divided by net income. The MHC waived its right to receive dividends declared during the nine months ended March 31, 2017 and 2016. |
Greene County Bancorp, Inc. | |||||||
Consolidated Statements of Financial Condition (Unaudited) | |||||||
As of March 31, 2017 | As of June 30, 2016 | ||||||
(Dollars In thousands) | |||||||
Assets | |||||||
Total cash and cash equivalents | $ | 35,587 | $ | 15,895 | |||
Long term certificate of deposit | 2,145 | 2,210 | |||||
Securities- available for sale, at fair value | 77,041 | 100,123 | |||||
Securities- held to maturity, at amortized cost | 214,300 | 204,935 | |||||
Federal Home Loan Bank stock, at cost | 1,683 | 2,752 | |||||
Gross loans receivable | 616,492 | 531,290 | |||||
Less: Allowance for loan losses | (10,721 | ) | (9,485 | ) | |||
Unearned origination fees and costs, net | 880 | 959 | |||||
Net loans receivable | 606,651 | 522,764 | |||||
Premises and equipment | 13,773 | 14,176 | |||||
Accrued interest receivable | 4,043 | 3,610 | |||||
Foreclosed real estate | 208 | 370 | |||||
Prepaid expenses and other assets | 3,060 | 1,946 | |||||
Total assets | $ | 958,491 | $ | 868,781 | |||
Liabilities and shareholders’ equity | |||||||
Noninterest bearing deposits | $ | 91,251 | $ | 88,254 | |||
Interest bearing deposits | 753,938 | 650,633 | |||||
Total deposits | 845,189 | 738,887 | |||||
Borrowings from FHLB, short term | - | 26,100 | |||||
Borrowings from other banks, short term | 500 | - | |||||
Borrowings from FHLB, long term | 22,650 | 20,300 | |||||
Accrued expenses and other liabilities | 9,204 | 9,193 | |||||
Total liabilities | 877,543 | 794,480 | |||||
Total shareholders’ equity | 80,948 | 74,301 | |||||
Total liabilities and shareholders’ equity | $ | 958,491 | $ | 868,781 | |||
Common shares outstanding | 8,502,614 | 8,475,614 | |||||
Treasury shares | 108,726 | 135,726 |