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 six months and quarter ended December 31, 2012, which is the second quarter of the Company’s fiscal year ending June 30, 2013. Net income for the six months and quarter ended December 31, 2012 totaled $3.4 million, or $0.82 per basic and $0.81 per diluted share, and $1.7 million, or $0.40 per basic and $0.39 per diluted share, respectively, as compared to $3.0 million, or $0.72 per basic and diluted share, and $1.5 million, or $0.36 per basic and diluted share, for the six months and quarter ended December 31, 2011, respectively, an increase of $429,000, or 14.3%, and $174,000, or 11.6% for these same periods in the prior year.
Donald E. Gibson, President and CEO stated; “In light of the historically low interest environment and the net interest margin compression our industry has been experiencing we are proud to report another solid quarter.
A large part of our strategy to offset margin compression has been to focus on growing quality loans. Over the last two years we have introduced several new residential and commercial loan products and have increased the size of our lending team by over 50%. We believe this emphasis along with personal service has played a large role in growing our net loans by over $20.0 million over the last six months and will serve us well in the future.”
Selected highlights for the six months and quarter ended December 31, 2012 are as follows:
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 Six||At or for the Three|
|Months Ended December 31,||Months Ended December 31,|
|Dollars In thousands, |
except share and per share data
|Net interest income||10,762||10,422||5,370||5,223|
|Provision for loan losses||985||896||541||422|
|Income before taxes||4,933||4,522||2,379||2,241|
diluted shares outstanding
|Dividends declared per share 3||$0.350||$0.350||$0.175||$0.175|
Selected Financial Ratios
|Return on average assets1||1.13%||1.09%||1.07%||1.07%|
|Return on average equity1||12.79%||12.20%||12.30%||11.98%|
|Net interest rate spread1||3.58%||3.79%||3.47%||3.76%|
|Net interest margin1||3.67%||3.92%||3.55%||3.88%|
to total assets
to net loans
Allowance for loan losses to
Allowance for loan losses to
|Shareholders’ equity to total assets||8.75%||9.05%|
|Dividend payout ratio3||42.68%||48.61%|
|Book value per share||$13.05||$12.20|
1 Ratios are annualized when necessary.
2 Noninterest expense divided by the sum of net interest income and noninterest income.
3 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 six months ended December 31, 2011, no adjustment has been made to account for this waiver. During the six months ended December 31, 2012, the 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, and 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 during the quarter ended September 30, 2012.
|As of December 31, 2012||As of June 30, 2012|
|Dollars In thousands|
|Total cash and cash equivalents||$10,430||$7,742|
|Long term certificate of deposit||250||---|
|Securities- available for sale, at fair value||77,987||87,528|
|Securities- held to maturity, at amortized cost||167,449||146,389|
|Federal Home Loan Bank stock, at cost||1,713||1,744|
|Gross loans receivable||353,712||332,450|
|Less: Allowance for loan losses||(6,764||)||(6,177||)|
|Unearned origination fees and costs, net||599||478|
|Net loans receivable||347,547||326,751|
|Premises and equipment||14,605||14,899|
|Accrued interest receivable||2,747||2,688|
|Foreclosed real estate||140||260|
|Prepaid expenses and other assets||1,680||2,655|
|Liabilities and shareholders’ equity|
|Noninterest bearing deposits||$54,298||$52,783|
|Interest bearing deposits||491,392||459,154|
|Borrowings from FHLB, short term||14,300||14,000|
|Borrowings from FHLB, long term||6,000||7,000|
|Accrued expenses and other liabilities||3,931||5,055|
|Total shareholders’ equity||54,627||52,664|
|Total liabilities and shareholders’ equity||$624,548||$590,656|
|Common shares outstanding||4,185,671||4,182,671|