Greene County Bancorp, Inc. – Reports Quarterly Earnings.
Bancorp, Inc. (the
GCBC Ghana Catholic Bishops Conference
GCBC Gulf Coast Business Council
GCBC Gold Coast Bridge Club
), 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
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
tr.v. di·lut·ed, di·lut·ing, di·lutes
1. To make thinner or less concentrated by adding a liquid such as water.
2. To lessen the force, strength, purity, or brilliance of, especially by admixture.
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.
E. Gibson, President and
stated; “In light of the
historically low interest environment and the net interest margin
external stress applied to an object or substance, tending to cause a decrease in volume (see pressure). Gases can be compressed easily, solids and liquids to a very small degree if at all.
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:
* Net interest income increased $340,000 to $10.8 million for the
six months ended December 31, 2012 compared to $10.4 million for the six
months ended December 31, 2011 and increased $147,000 to $5.4 million
for the quarter ended December 31, 2012 compared to $5.2 million for the
quarter ended December 31, 2011. 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 six months and quarters ended December 31, 2012 and
* Net interest rate spread decreased 21 basis points to 3.58% for
the six months ended December 31, 2012 from 3.79% for the six months
ended December 31, 2011, and decreased 29 basis points to 3.47% for the
three months ended December 31, 2012 from 3.76% for the three months
ended December 31, 2011. Net interest margin decreased 25 basis points
to 3.67% for the six months ended December 31, 2012 from 3.92% for the
six months ended December 31, 2011, and decreased 33 basis points to
3.55% for the quarter ended December 31, 2012 as compared to 3.88% for
the quarter ended December 31, 2011. Despite increased net interest
income from increased volume of loans and securities and a lower
, declines in the yields on interest-earning assets resulted in our
net interest spread and net interest margin decreasing when comparing
the three and six months ended December 31, 2012 and 2011, respectively.
Although the Company has benefited from re-pricing its
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 $985,000 and $896,000
for the six months ended December 31, 2012 and 2011, respectively, an
increase of $89,000 or 9.9%. The provision for loan losses amounted to
$541,000 and $422,000 for the quarters ended December 31, 2012 and 2011,
respectively. The allowance for loan losses totaled $6.8 million at
December 31, 2012 compared to $6.2 million at June 30, 2012 and $5.6
million at December 31, 2011. The level of allowance for loan losses to
total loans receivable increased to 1.91% at December 31, 2012 compared
to 1.86% at June 30, 2012, and 1.77% at December 31, 2011.
* Net charge-offs amounted to $398,000 and $348,000 for the six
months ended December 31, 2012 and 2011, respectively, an increase of
* Nonperforming loans amounted to $7.1 million and $7.0 million at
December 31, 2012 and June 30, 2012, respectively, an increase of
$58,000 or 0.8%. 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
Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
State. At December 31,
2012, nonperforming assets were 1.16% of total assets and nonperforming
loans were 2.04% of net loans.
* Noninterest income increased $153,000 and $88,000 when comparing
the six months and quarters ended December 31, 2012 and 2011,
respectively. Noninterest income amounted to $2.6 million and $1.3
million for the six months and quarter ended December 31, 2012,
respectively. These increases were 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
* Noninterest expense decreased $7,000 and $22,000 when comparing
the six months and quarters ended December 31, 2012 and 2011,
respectively. These decreases were primarily due to a decrease in legal
and professional fees, equipment and furniture expense, occupancy
expense, and other expenses. The decrease in legal and professional fees
of $68,000 and $43,000 when comparing the six months and quarters ended
December 31, 2012 and 2011, respectively, were the result of lower costs
n. the work performed by a lawyer for a client.
related to loans in process of
consulting services related to the implementation of strategic
objectives. The decrease in equipment and furniture expense was the
result of lower depreciation as assets previously
Of or relating to a fixed asset that has been depreciated to a book value of zero.
. The decrease in other expenses was the result
of the recognition of a loss on foreclosed assets of $27,700 and
$131,500 for the six months ended December 31, 2012 and 2011,
respectively. Partially offsetting these decreases were increases in
salaries and employee benefits, service and
or operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a
advertising and promotion. The increase in salaries and employee
benefits of $129,000 and $63,000 when comparing the six months and three
months ended December 31, 2012 and 2011, respectively, was primarily the
result of an increase in the number of employees. Included in the
increases in service and data processing fees of $39,000 and $13,000
when comparing the six months and three months ended December 31, 2012
and 2011, respectively, were increased costs associated with the
increase in the number of accounts with a
card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser’s checking account. They can also be used at automated teller machines for withdrawing cash from the user’s checking account.
* Total assets of the Company were $624.5 million at December 31,
2012 as compared to $590.7 million at June 30, 2012, an increase of
$33.8 million, or 5.7%.
* Securities available for sale and held to maturity amounted to
$245.4 million, or 39.3% of assets, at December 31, 2012 as compared to
$233.9 million, or 39.6% of assets, at June 30, 2012, an increase of
$11.5 million or 4.9%.
* Net loans grew by $20.7 million or 6.3% to $347.5 million at
December 31, 2012 as compared to $326.8 million at June 30, 2012. The
loan growth experienced during the six months primarily consisted of
$5.5 million in
real estate loans, $11.5 million in
residential mortgage loans, $2.3 million in construction loans, $111,000
in multi-family mortgage loans and $2.0 million in non-mortgage loans,
and was partially offset by a $587,000 increase in the allowance for
loan loss. The continued low interest rate environment and strong
customer satisfaction from personal service continued to enhance loan
* Total deposits increased to $545.7 million at December 31, 2012
from $511.9 million at June 30, 2012, an increase of $33.8 million, or
6.6%. This increase was partially the result of an increase of $13.5
million in balances at the Greene County Commercial Bank due primarily
to the annual collection of taxes by several local school districts.
* Borrowings decreased $700,000 from $21.0 million at June 30, 2012
to $20.3 million at December 31, 2012. During the quarter and six months
ended December 31, 2012, the Company
tr.v. pre·paid, pre·pay·ing, pre·pays
To pay or pay for beforehand.
$1.0 million in long term
borrowings and recognized a
* Total shareholders’ equity increased $1.9 million to $54.6
million at December 31, 2012, or 8.7% of total assets, from $52.7
million at June 30, 2012 primarily resulting from $3.4 million in net
income for the six-month period less the payment of $1.5 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,
1 City (1990 pop. 75,883), Howard co., central Md., between Washington, D.C., and Baltimore.
, town (1996 pop. 14,590), Western Australia, SW Australia. It is a port on Princess Royal Harbour of King George Sound. The town has woolen mills and fish canneries.
Counties. Customers are offered
24-hour services through ATM network systems, an
v. au·to·mat·ed, au·to·mat·ing, au·to·mates
1. To convert to automatic operation:
banking system and
Banking through its web site at
This press release contains statements about future events that
constitute forward-looking statements within the meaning of the
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,
tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates
1. To control or direct according to rule, principle, or law.
considerations, competition, technological developments, retention and
1. the gradual increase to a maximum in a reflex when a stimulus of unaltered intensity is prolonged.
of qualified personnel, and market acceptance of the
Company’s pricing, products and services.