Net Interest Income and Margin
- Net interest income increased $1.0 million to $7.9 million for the three months ended June 30, 2017 from $6.9 million for the three months ended June 30, 2016. Net interest income increased $4.2 million to $30.4 million for the year ended June 30, 2017 from $26.2 million for the year ended June 30, 2016. These increases in net interest income resulted primarily from increases in average interest-earning assets.
- Net interest spread and margin increased during the three months and year ended June 30, 2017. Net interest spread increased nine basis points to 3.31% for the three months ended June 30, 2017 compared to 3.22% for the three months ended June 30, 2016. Net interest margin increased ten basis points to 3.39% for the three months ended June 30, 2017 compared to 3.29% for the three months ended June 30, 2016. Net interest spread and margin increased two basis points to 3.32% and 3.39%, respectively, for the year ended June 30, 2017 compared to 3.30% and 3.37%, respectively, for the year ended June 30, 2016.
- 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 3.64% and 3.55% for the three months ended June 30, 2017 and 2016, respectively. Tax equivalent net interest margin was 3.64% and 3.62% for the years ended June 30, 2017 and 2016, respectively.
- Provision for loan losses amounted to $439,000 and $535,000 for the three months ended June 30, 2017 and 2016, respectively. The provision for loan losses amounted to $1.9 million and $1.7 million for the years ended June 30, 2017 and 2016, respectively. Allowance for loan losses to total loans receivable decreased to 1.74% at June 30, 2017 compared to 1.79% at June 30, 2016.
- Net charge-offs amounted to $138,000 and $38,000 for the three months ended June 30, 2017 and 2016, respectively, and amounted to $374,000 and $330,000 for the years ended June 30, 2017 and 2016, respectively.
- Nonperforming loans amounted to $3.6 million and $3.4 million at June 30, 2017 and June 30, 2016, respectively. At June 30, 2017, nonperforming assets were 0.45% of total assets and nonperforming loans were 0.58% of net loans. At June 30, 2016, nonperforming assets were 0.43% of total assets and nonperforming loans were 0.65% of net loans.
- Noninterest income increased $149,000, or 9.7%, to $1.7 million for the three months ended June 30, 2017 as compared to $1.5 million for the three months ended June 30, 2016. Noninterest income increased $459,000, or 7.7%, to $6.4 million for the year ended June 30, 2017 as compared to $6.0 million for the year ended June 30, 2016. 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.
- Noninterest expense increased $573,000, or 11.9%, to $5.4 million for the three months ended June 30, 2017 as compared to $4.8 million for the three months ended June 30, 2016. Noninterest expense increased $1.1 million, or 5.8%, to $20.0 million for the year ended June 30, 2017 as compared to $18.9 million for the year ended June 30, 2016. These increases in noninterest expense were primarily the result of an increase in salaries and employee benefits expenses, resulting from additional staffing within our lending department and customer service center, and increased computer software, supplies and support expense, resulting from changing the Company's online banking platform to a new vendor, providing greater functionality for customers. Partially offsetting the aforementioned increases were decreases in legal and professional fees, lower FDIC insurance premiums resulting from a decrease in premium rates, and lower expenses related to foreclosed real estate included in other expenses.
- 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 24.4% and 25.1% for the three months and year ended June 30, 2017, respectively compared to 22.8% and 23.0% for the three months and year ended June 30, 2016. The effective 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.
- Total assets of the Company were $982.3 million at June 30, 2017 as compared to $868.8 million at June 30, 2016, an increase of $113.5 million, or 13.1%.
- Securities available-for-sale and held-to-maturity increased $10.2 million, or 3.3%, to $315.3 million at June 30, 2017 as compared to $305.1 million at June 30, 2016. Securities purchases totaled $115.3 million during the year ended June 30, 2017 and consisted of $97.4 million of state and political subdivision securities, $6.0 million of U.S. government sponsored enterprises securities, and $11.9 million of mortgage-backed securities. Principal pay-downs and maturities during the year ended June 30, 2017 amounted to $103.2 million, of which $16.8 million were mortgage-backed securities, $83.1 million were state and political subdivision securities, $2.0 million were U.S. government sponsored enterprises securities, and $1.3 million were corporate debt securities.
- Net loans receivable increased $101.4 million, or 19.4%, to $624.2 million at June 30, 2017 from $522.8 million at June 30, 2016. The loan growth experienced during the period consisted primarily of $65.3 million in commercial real estate loans, $8.3 million in commercial construction loans, $11.7 million in commercial loans, $5.3 million in multi-family real estate loans, $10.3 million in residential real estate loans, and $1.6 million in residential construction loans.
- Total deposits increased to $859.5 million at June 30, 2017 from $738.9 million at June 30, 2016, an increase of $120.6 million, or 16.3%. Noninterest-bearing deposits increased $7.7 million, or 8.7%, NOW deposits increased $83.0 million, or 26.8%, money market deposits increased $6.9 million, or 6.1%, savings deposits increased $20.0 million, or 11.3% and certificates of deposit increased $3.1 million, or 6.1% when comparing June 30, 2017 and 2016. These increases were partially the result of a $66.9 million increase in municipal deposits at Greene County Commercial Bank, primarily from continued growth in new account relationships as well as tax collection. Included within certificates of deposits at June 30, 2017 and 2016 were $15.0 million and $10.0 million, respectively, in brokered certificates of deposit.
- Borrowings for the Company amounted to $6.9 million of overnight borrowings and $22.7 million of long-term borrowings with the Federal Home Loan Bank of New York at June 30, 2017, compared to $26.1 million of overnight borrowings and $20.3 million of long-term borrowings at June 30, 2016.
- Shareholders' equity increased to $83.5 million at June 30, 2017 from $74.3 million at June 30, 2016, as net income of $11.2 million was partially offset by a $267,000 increase in other accumulated comprehensive loss and dividends declared and paid of $1.9 million. Other changes in equity, an increase of $220,000, were the result of options exercised with the Company's 2008 Stock Option Plan.
|Greene County Bancorp, Inc.|
|Consolidated Statements of Income (Unaudited)|
|Dollars in thousands, except per share data|
|At or for the three months||At or for the year|
|ended June 30,||ended June 30,|
|Net interest income||7,937||6,851||30,382||26,221|
|Provision for loan losses||439||535||1,911||1,673|
|Income before taxes||3,777||3,019||14,928||11,642|
|Weighted average shares outstanding||8,502,614||8,474,981||8,495,022||8,459,327|
|Weighted average diluted shares outstanding||8,521,191||8,493,523||8,513,129||8,476,292|
|Dividends declared per share||$0.095||$0.0925||$0.38||$0.37|
|Selected Financial Ratios|
|Return on average assets 1||1.20||%||1.10||%||1.22||%||1.13||%|
|Return on average equity 1||13.94||%||12.68||%||14.25||%||12.68||%|
|Net interest rate spread 1||3.31||%||3.22||%||3.32||%||3.30||%|
|Net interest margin 1||3.39||%||3.29||%||3.39||%||3.37||%|
|Fully taxable-equivalent net interest margin 2||3.64||%||3.55||%||3.64||%||3.62||%|
|Efficiency ratio 3||56.17||%||57.60||%||54.25||%||58.63||%|
|Non-performing assets to total assets||0.45||%||0.43||%|
|Non-performing loans to net loans||0.58||%||0.65||%|
|Allowance for loan losses to non-performing loans||302.72||%||278.72||%|
|Allowance for loan losses to total loans||1.74||%||1.79||%|
|Shareholders' equity to total assets||8.50||%||8.55||%|
|Dividend payout ratio 4||28.79||%||34.91||%|
|Actual dividends paid to net income 5||17.16||%||20.69||%|
|Book value per share||$9.82||$8.77|
|Non-GAAP reconciliation - Fully taxable equivalent net interest margin|
|For the three months ended June 30,||For the year ended June 30,|
|(Dollars in thousands)||2017||2016||2017||2016|
|Net interest income (GAAP)||$7,937||$6,851||$30,382||$26,221|
|Net interest income (fully taxable-equivalent basis)||$8,525||$7,379||$32,592||$28,143|
|Average interest-earning assets||$937,014||$832,146||$895,659||$777,539|
|Net interest margin (fully taxable-equivalent basis)||3.64%||3.55%||3.64%||3.62%|
|Greene County Bancorp, Inc.|
|Consolidated Statements of Financial Condition (Unaudited)|
|Dollars in thousands|
|At June 30, 2017||At June 30, 2016|
|Total cash and cash equivalents||$16,277||$15,895|
|Long term certificate of deposit||2,145||2,210|
|Securities- available for sale, at fair value||91,483||100,123|
|Securities- held to maturity, at amortized cost||223,830||204,935|
|Federal Home Loan Bank stock, at cost||2,131||2,752|
|Gross loans receivable||634,331||531,290|
|Allowance for loan losses||(11,022)||(9,485)|
|Unearned origination fees and costs, net||878||959|
|Net loans receivable||624,187||522,764|
|Premises and equipment||13,615||14,176|
|Accrued interest receivable||4,033||3,610|
|Foreclosed real estate||799||370|
|Prepaid expenses and other assets||3,791||1,946|
|Liabilities and shareholders' equity|
|Non-interest bearing deposits||$95,929||$88,254|
|Interest bearing deposits||763,606||650,633|
|Borrowings from FHLB, short term||6,900||26,100|
|Borrowings from FHLB, long term||22,650||20,300|
|Accrued expenses and other liabilities||9,685||9,193|
|Total shareholders' equity||83,521||74,301|
|Total liabilities and shareholders' equity||$982,291||$868,781|
|Common shares outstanding||8,502,614||8,475,614|
For Further Information Contact:Donald E. GibsonPresident & CEO(518) email@example.comMichelle M. Plummer, CPAEVP, COO & CFO(518) firstname.lastname@example.org