Greene County Bancorp, Inc. Reports Net Income of $7.5 Million for the Three Months Ended December 31, 2024, an Increase of 31% When Comparing the Same Quarter Ended December 31, 2023

CATSKILL, N.Y., Jan. 22, 2025 (GLOBE NEWSWIRE) -- Greene County Bancorp, Inc. (the "Company") $(GCBC)$, the holding company for the Bank of Greene County and its subsidiary Greene County Commercial Bank, today reported net income for the three and six months ended December 31, 2024, which is the second quarter of the Company's fiscal year ending June 30, 2025. Net income for the three and six months ended December 31, 2024 was $7.5 million, or $0.44 per basic and diluted share, and $13.8 million, or $0.81 per basic and diluted share, respectively, as compared to $5.7 million, or $0.34 per basic and diluted share, and $12.2 million, or $0.72 per basic and diluted share, for the three and six months ended December 31, 2023, respectively. Net income increased $1.6 million, or 12.9%, when comparing the six months ended December 31, 2024 and 2023.

Highlights:

   -- Net Income: $13.8 million for the six months ended December 31, 2024 
 
   -- Total Assets: $2.97 billion at December 31, 2024, a new record high 
 
   -- Net Loans: $1.53 billion at December 31, 2024, a new record high 
 
   -- Total Deposits $2.47 billion at December 31, 2024 
 
   -- Return on Average Assets: 0.99% for the six months ended December 31, 
      2024 
 
   -- Return on Average Equity: 12.89% for the six months ended December 31, 
      2024 

"I am pleased to report another excellent quarter of financial performance. Net income was $7.5 million for the three months ended December 31, 2024, an increase of $1.8 million, or 31.2% as compared to net income of $5.7 million for the three months ended December 31, 2023," announced Company President & CEO Donald Gibson. "Second fiscal quarter results reflect solid performance across our key segments. The growth has been driven by our talented employees, who are our most valuable asset."

Total consolidated assets for the Company were $2.97 billion at December 31, 2024, primarily consisting of $1.5 billion of net loans and $1.1 billion of total securities available-for-sale and held-to-maturity. Consolidated deposits totaled $2.5 billion at December 31, 2024, consisting of retail, business, municipal and private banking relationships.

Pre-provision net income was $14.9 million for the six months ended December 31, 2024 as compared to pre-provision net income of $12.8 million for the six months ended December 31, 2023, an increase of $2.1 million, or 16.1%. Pre-provision net income measures the Company's net income less the provision for credit losses. Management believes that this non-GAAP measure assists investors in comprehending the impact of the provision for credit losses on the Company's reported results, offering an alternative view of the Company's performance and the Company's ability to generate income in excess of its provision for credit losses. The Company strategically managed their balance sheet by focusing on higher-yielding loans and securities, and lowering deposit rates to align with the Federal Reserve's recent interest rate cuts. This resulted in a higher net interest margin for the three months ended December 31, 2024 as compared to the three months ended December 31, 2023. The Company will continue to monitor the Federal Reserve and interest rates paid on deposits, while maintaining our long-term customer relationships.

Selected highlights for the three and six months ended December 31, 2024 are as follows:

Net Interest Income and Margin

   -- Net interest income increased $1.7 million to $14.1 million for the three 
      months ended December 31, 2024 from $12.4 million for the three months 
      ended December 31, 2023. Net interest income increased $1.4 million to 
      $27.2 million for the six months ended December 31, 2024 from $25.8 
      million for the six months ended December 31, 2023. The increase in net 
      interest income was due to an increase in the average balance of 
      interest-earning assets which increased $204.8 million and $129.8 million 
      when comparing the three and six months ended December 31, 2024 and 2023, 
      respectively, and increases in interest rates on interest-earning assets, 
      which increased 26 and 33 basis points when comparing the three and six 
      months ended December 31, 2024 and 2023, respectively. The increase in 
      net interest income was offset by increases in the average balance of 
      interest-bearing liabilities, which increased $202.8 million and $133.5 
      million when comparing the three and six months ended December 31, 2024 
      and 2023, respectively, and increases in rates paid on interest-bearing 
      liabilities, which increased 16 and 34 basis points when comparing the 
      three and six months ended December 31, 2024 and 2023, 
      respectively.Average loan balances increased $68.1 million and $64.3 
      million and the yield on loans increased 22 basis points and 29 basis 
      points when comparing the three and six months ended December 31, 2024 
      and 2023, respectively. The average balance of securities increased 
      $111.8 million and $62.7 million and the yield on such securities 
      increased 19 basis points and 42 basis points when comparing the three 
      and six months ended December 31, 2024 and 2023, respectively. Average 
      interest-bearing bank balances and federal funds increased $24.9 million 
      and $2.7 million and the yield on interest-bearing bank balances and 
      federal funds decreased 8 basis points and 2 basis points when comparing 
      the three and six months ended December 31, 2024 and 2023, 
      respectively.The cost of NOW deposits increased 5 basis points and 29 
      basis points, the cost of certificates of deposit increased 37 basis 
      points and 40 basis points, and the cost of savings and money market 
      deposits increased 11 basis points and 15 basis points when comparing the 
      three and six months ended December 31, 2024 and 2023, respectively. The 
      increase in the cost of interest-bearing liabilities was partially due to 
      growth in the average balances of interest-bearing liabilities of $202.8 
      million and $133.5 million when comparing the three and six months ended 
      December 31, 2024 and 2023, respectively. The growth in interest-bearing 
      liabilities was due to an increase in average NOW deposits of $136.7 
      million and $92.2 million, an increase in average certificates of 
      deposits of $86.2 million and $58.6 million, an increase in average 
      borrowings of $1.7 million and $13.2 million, partially offset by a 
      decrease in average savings and money market deposits of $21.8 million 
      and $30.5 million when comparing the three and six months ended December 
      31, 2024 and 2023, respectively. Yields on interest-earning assets and 
      costs of interest-bearing deposits increased when comparing the three and 
      six months ended December 31, 2024 and 2023, as the Company continued to 
      reprice assets and deposits into the higher interest rate environment. 
      During the six months ended December 31, 2024, the Company implemented a 
      strategic reduction in deposit rates that aligns with the Federal 
      Reserve's rate cuts, while providing competitive financial solutions to 
      the Company's customers that reflect the prevailing economic conditions, 
      while growing new relationships. 
   -- Net interest rate spread increased 10 basis points to 1.80% for the three 
      months ended December 31, 2024 compared to 1.70% for the three months 
      ended December 31, 2023. Net interest rate spread decreased one basis 
      point to 1.78% for the six months ended December 31, 2024, compared to 
      1.79% for the six months ended December 31, 2023. 
 
   -- Net interest margin increased 10 basis points to 2.04% for the three 
      months ended December 31, 2024, compared to 1.94% for the three months 
      ended December 31, 2023. Net interest margin increased one basis point to 
      2.04% for the six months ended December 31, 2024, compared to 2.03% for 
      the six months ended December 31, 2023. The increase in net interest rate 
      spread and margin during the three months ended December 31, 2024, was 
      due to increases in interest income on loans and securities, as they 
      continue to reprice at higher yields and the interest rates earned on new 
      balances were higher than the historic low levels from the prior periods. 
      This was partially offset by the increase in rates paid on deposits as 
      compared to the prior period. 
   -- 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 2.31% and 2.19% for the three months 
      ended December 31, 2024 and 2023, respectively, and was 2.30% and 2.28% 
      for the six months ended December 31, 2024 and 2023, respectively. 

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