Greene County Bancorp, Inc. - Reports Quarterly Earnings

  Greene County Bancorp, Inc. - Reports Quarterly Earnings

Business Wire

CATSKILL, N.Y. -- April 24, 2013

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 nine months and quarter
ended March 31, 2013, which is the third quarter of the Company’s fiscal year
ending June 30, 2013. For the nine months ended March 31, 2013, net income
totaled $5.0 million, or $1.19 per basic and $1.18 per diluted share,
representing an increase of $483,000, or 10.8%, as compared to net income of
$4.5 million, or $1.08 per basic and $1.07 per diluted share, for the nine
months ended March 31, 2012. For the quarter ended March 31, 2013, net income
totaled $1.5 million, or $0.37 per basic and $0.36 per diluted share,
representing an increase of $54,000, or 3.6%, as compared to $1.5 million, or
$0.36 per basic and $0.35 per diluted share, for the quarter ended March 31,
2012.

Donald Gibson, President and Chief Executive Officer stated, “We are pleased
to report another solid quarter. Despite the weak economy, we continue to
achieve our goals of growing both loans and our core deposit base, which we
believe is fundamental to creating long term shareholder value.”

Selected highlights for the nine months and quarter ended March 31, 2013 are
as follows:

  *Net interest income increased $482,000 to $16.1 million for the nine
    months ended March 31, 2013 compared to $15.6 million for the nine months
    ended March 31, 2012, and increased $142,000 to $5.3 million for the
    quarter ended March 31, 2013 compared to $5.2 million for the quarter
    ended March 31, 2012. The increase in average balances of loans and
    securities, along with a decrease in rates paid on deposit accounts,
    primarily led to an increase in net interest income when comparing the
    nine months and quarters ended March 31, 2013 and 2012.
  *Net interest rate spread decreased 26 basis points to 3.52% for the nine
    months ended March 31, 2013 from 3.78% for the nine months ended March 31,
    2012, and decreased 34 basis points to 3.40% for the three months ended
    March 31, 2013 from 3.74% for the three months ended March 31, 2012. Net
    interest margin decreased 29 basis points to 3.61% for the nine months
    ended March 31, 2013 from 3.90% for the nine months ended March 31, 2012,
    and decreased 36 basis points to 3.49% for the quarter ended March 31,
    2013 as compared to 3.85% for the quarter ended March 31, 2012. Despite
    increased net interest income from increased volume of loans and
    securities and a lower cost of funds, declines in the yields on
    interest-earning assets resulted in our net interest spread and net
    interest margin decreasing when comparing the three and nine months ended
    March 31, 2013 and 2012, 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 amounted to $1.3 million and $1.4 million
    for the nine months ended March 31, 2013 and 2012, respectively. The
    provision for loan losses amounted to $331,000 and $541,000 for the
    quarters ended March 31, 2013 and 2012, respectively. The level of
    allowance for loan losses to total loans receivable increased to 1.94% at
    March 31, 2013 compared to 1.86% at June 30, 2012.
  *Net charge-offs amounted to $571,000 and $539,000 for the nine months
    ended March 31, 2013 and 2012, respectively, an increase of $32,000.
  *Nonperforming loans amounted to $7.0 million at March 31, 2013 and 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. At March 31, 2013, nonperforming assets
    were 1.15% of total assets and nonperforming loans were 2.01% of net
    loans.
  *Noninterest income increased $117,000 and decreased $36,000 when comparing
    the nine months and quarters ended March 31, 2013 and 2012, respectively.
    Noninterest income amounted to $3.7 million and $1.1 million for the nine
    months and quarter ended March 31, 2013, respectively. The increase for
    the nine months ended March 31, 2013 was primarily the result of higher
    service charges on deposit accounts due to growth in the number of deposit
    accounts, as well as an increase in fees earned through investment
    services.
  *Noninterest expense increased $218,000 and $225,000 when comparing the
    nine months and quarters ended March 31, 2013 and 2012, respectively. The
    increase for the nine months and quarter ended March 31, 2013 was
    primarily the result of an increase of $207,000 and $78,000, respectively
    in salaries and employee benefits which was partially due to an increase
    in medical insurance expenses and also to growth in staffing within the
    Company’s lending department. During the nine months and quarter ended
    March 31, 2013, the Company prepaid $6.0 million and $5.0 million,
    respectively, in long term borrowings and recognized prepayment penalties
    of $155,000 and $112,000.
  *Total assets of the Company were $650.2 million at March 31, 2013 as
    compared to $590.7 million at June 30, 2012, an increase of $59.5 million,
    or 10.1%.
  *Securities available for sale and held to maturity amounted to $239.0
    million, or 36.8% of assets, at March 31, 2013 as compared to $233.9
    million, or 39.6% of assets, at June 30, 2012, an increase of $5.1 million
    or 2.2%.
  *Net loans receivable increased to $350.1 million at March 31, 2013 from
    $326.8 million at June 30, 2012, an increase of $23.3 million, or 7.1%.
    The loan growth experienced during the nine months primarily consisted of
    $6.8 million in nonresidential real estate loans, $15.4 million in
    residential mortgage loans, $859,000 in construction loans, $50,000 in
    multi-family mortgage loans and $2.5 million in non-mortgage loans, and
    was partially offset by a $1.6 million decrease in home equity loans and a
    $745,000 increase in the allowance for loan loss. We believe that the
    continued low interest rate environment and strong customer satisfaction
    from personal service continued to enhance loan growth.
  *Total deposits increased to $586.7 million at March 31, 2013 from $511.9
    million at June 30, 2012, an increase of $74.8 million, or 14.6%. This
    increase was primarily the result of an increase of $60.8 million in
    balances at Greene County Commercial Bank due primarily to the annual
    collection of taxes by several local municipalities.
  *Borrowings decreased $17.0 million from $21.0 million at June 30, 2012 to
    $4.0 million at March 31, 2013. During the quarter and nine months ended
    March 31, 2013, the Company prepaid $5.0 million and $6.0 million,
    respectively, in long term borrowings and recognized prepayment penalties
    of $112,000 and $155,000.
  *Total shareholders’ equity increased $3.1 million to $55.8 million at
    March 31, 2013, or 8.6% of total assets, from $52.7 million at June 30,
    2012 primarily resulting from $5.0 million in net income for the nine
    month period less the payment of $1.8 million in dividends during the
    period.

Headquartered in Catskill, New York, the Company provides full-service
community-based banking in 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 Nine        At or for the Three
                           Months Ended March 31,      Months Ended March 31,
                           2013        2012        2013        2012
Dollars In
thousands,                                                      
except share and per
share data
Interest income            $18,223       $18,362       $5,985        $5,999
Interest expense           2,157         2,778         681           837
Net interest income        16,066        15,584        5,304         5,162
Provision for loan         1,316         1,437         331           541
losses
Noninterest income         3,716         3,599         1,141         1,177
Noninterest expense        11,365        11,147        3,946         3,721
Income before taxes        7,101         6,599         2,168         2,077
Tax provision              2,131         2,112         631           594
Net Income                 $4,970        $4,487        $1,537        $1,483
                                                                     
Basic EPS                  $1.19         $1.08         $0.37         $0.36
Weighted average
                           4,185,707     4,150,978     4,187,671     4,159,093
shares outstanding
                                                                     
Diluted EPS                $1.18         $1.07         $0.36         $0.35
Weighted average
                           4,224,814     4,192,567     4,227,166     4,197,430
diluted shares
outstanding
                                                                     
Dividends declared         $0.525        $0.525        $0.175        $0.175
per share ^3
                                                                     
Selected Financial
Ratios
Return on average          1.08%         1.08%         0.98%         1.06%
assets^1
Return on average          12.23%        11.99%        11.14%        11.59%
equity^1
Net interest rate          3.52%         3.78%         3.40%         3.74%
spread^1
Net interest               3.61%         3.90%         3.49%         3.85%
margin^1
Efficiency ratio^2         57.45%        58.11%        61.23%        58.70%
Non-performing
assets                     1.15%         1.25%

to total assets
Non-performing loans
                           2.01%         2.19%
to net loans
Allowance for loan
losses to                  98.31%        87.33%

non-performing loans
Allowance for loan
losses to                  1.94%         1.88%

total loans
Shareholders’ equity       8.59%         8.95%
to total assets
Dividend payout            44.12%        48.61%
ratio^3
Book value per share       $13.32        $12.42



^1  Ratios are annualized when necessary.
^2   Noninterest expense divided by the sum of net interest income and
     noninterest income.
     Greene County Bancorp, MHC (the “MHC”), the owner of 55.1% of the shares
     outstanding by the Company, waived its right to receive the dividends
     during the nine months ended March 31, 2012, and no adjustment has been
     made to account for this waiver. The MHC waived its right to receive the
^3   dividend declared during the three months ended March 31, 2013, and no
     adjustment has been made to account for this waiver. However, the MHC was
     not permitted to waive its receipt of dividends declared during the
     quarter ended December 31, 2012 because it did not yet have the
     non-objection from the Federal Reserve Board for such waiver.


                                                                             
                                       As of March 31,   As of June 30,
                                          2013                2012
Dollars In thousands
Assets
Total cash and cash equivalents           $38,428             $7,742
Long term certificate of deposit          250                 ---
Securities- available for sale, at        76,840              87,528
fair value
Securities- held to maturity, at          162,207             146,389
amortized cost
Federal Home Loan Bank stock, at          979                 1,744
cost
                                                                             
Gross loans receivable                    356,425             332,450
Less: Allowance for loan losses           (6,922)             (6,177)
Unearned origination fees and             592                 478
costs, net
Net loans receivable                      350,095             326,751
                                                                             
Premises and equipment                    14,503              14,899
Accrued interest receivable               2,875               2,688
Foreclosed real estate                    435                 260
Prepaid expenses and other assets         3,565               2,655
Total assets                              $650,177            $590,656
                                                                             
Liabilities and shareholders’
equity
Noninterest bearing deposits              $52,688             $52,783
Interest bearing deposits                 534,030             459,154
Total deposits                            586,718             511,937
                                                                             
Borrowings from FHLB, short term          ---                 14,000
Borrowings from FHLB, long term           4,000               7,000
Accrued expenses and other                3,624               5,055
liabilities
Total liabilities                         594,342             537,992
Total shareholders’ equity                55,835              52,664
Total liabilities and shareholders’       $650,177            $590,656
equity
Common shares outstanding                 4,191,671           4,182,671
Treasury shares                           113,999             122,999
                                                                             

Contact:

Greene County Bancorp, Inc.
Donald E. Gibson, 518-943-2600
President & CEO
donaldg@tbogc.com
or
Michelle M. Plummer, CPA, 518-943-2600
EVP, COO & CFO
michellep@tbogc.com
 
Press spacebar to pause and continue. Press esc to stop.