Greene County Bancorp, Inc. (GCBC): history, ownership, mission, how it works & makes money

A Brief History of Greene County Bancorp, Inc.

Overview

Greene County Bancorp, Inc. (GCBC) is a financial institution that operates primarily in New York State, providing a range of banking services. As of September 30, 2024, the organization has shown significant financial performance amidst a challenging economic environment marked by rising interest rates.

Financial Performance

For the three months ended September 30, 2024, Greene County Bancorp reported the following financial metrics:

Interest Income and Expense

Interest income for the three months ended September 30, 2024, amounted to $27.769 million, representing an increase from $24.672 million in the same period of 2023. The increase is attributed to higher yields on loans and securities.

Interest expense increased significantly to $14.633 million for the three months ended September 30, 2024, up from $11.233 million in 2023, driven by rising market interest rates and increased average balances of interest-bearing liabilities.

Balance Sheet Highlights

As of September 30, 2024, Greene County Bancorp's total assets were reported at $2.683 billion, compared to $2.625 billion at the end of the previous year. Shareholders' equity increased to $216.3 million from $206.0 million at June 30, 2024, primarily due to net income and a decrease in accumulated other comprehensive loss.

Loan Performance

As of September 30, 2024, the total provision for credit losses on loans was $634,000, reflecting a cautious approach to loan quality amid potential economic headwinds. The allowance for credit losses on loans to total loans was 1.32% at this date.

The company reported net charge-offs of $114,000 for the three months ended September 30, 2024, compared to $93,000 in 2023. Loans classified as substandard and special mention totaled $59.0 million, up from $48.6 million at June 30, 2024, indicating an increase in riskier loan classifications.

Market Conditions and Strategic Positioning

The Federal Reserve's interest rate hikes, which began in 2022, have significantly impacted the banking sector. As of September 30, 2024, market rates have fluctuated due to recent cuts by the Federal Reserve, affecting the fair value of the bank's fixed-income securities. The institution's management continues to focus on maintaining a balanced asset and liability mix to mitigate interest rate risks.

Greene County Bancorp's strategic initiatives include enhancing its deposit base and managing interest rate sensitivity while exploring opportunities for growth in its lending portfolio.

A Who Owns Greene County Bancorp, Inc. (GCBC)

Ownership Structure

As of 2024, Greene County Bancorp, Inc. (GCBC) has a unique ownership structure primarily characterized by its mutual holding company structure. Greene County Bancorp, MHC owns approximately 54.1% of the outstanding shares of GCBC. This ownership structure allows the MHC to influence the management and operations of the company while providing certain benefits to the shareholders.

Major Shareholders

The significant shareholders of Greene County Bancorp, Inc. include institutional investors, mutual funds, and individual stakeholders. Below is a table summarizing the major shareholders and their respective ownership percentages:

Recent Shareholder Activity

In the most recent quarter ending September 30, 2024, Greene County Bancorp declared a quarterly cash dividend of $0.09 per share, reflecting an annual rate of $0.36 per share, which is a 12.5% increase from the previous annual cash dividend rate of $0.32 per share.

Financial Performance and Market Capitalization

As of September 30, 2024, Greene County Bancorp reported total shareholders' equity of $216.3 million, compared to $206.0 million at June 30, 2024. The book value per share at this date was $12.70. The closing market price of the common stock was $30.90.

Dividend Policy

The dividend payout ratio for the three months ended September 30, 2024, was 24.32%, which indicates the proportion of earnings distributed to shareholders as dividends. The MHC waived its right to receive dividends declared in several previous quarters, allowing additional funds to be retained within the company for growth and investment purposes.

Conclusion of Ownership Structure

The ownership structure of Greene County Bancorp, Inc. as of 2024 is characterized by a significant stake held by its mutual holding company, along with a diverse range of institutional and individual investors. This structure influences the operational strategies and financial decisions of the bank, reflecting a commitment to both shareholder value and community-oriented banking.

Greene County Bancorp, Inc. (GCBC) Mission Statement

Overview

Greene County Bancorp, Inc. (GCBC) operates with a commitment to providing quality banking services while maintaining a focus on community and customer satisfaction. The mission statement emphasizes their dedication to serving the needs of their customers, fostering relationships, and contributing to the economic well-being of the communities they serve.

Financial Performance Metrics

The financial performance of GCBC reflects its commitment to growth and stability. As of September 30, 2024, the following key financial metrics were reported:

Deposit Composition

GCBC's deposit composition as of September 30, 2024, showcases a diverse portfolio aimed at meeting customer needs:

Loan Portfolio

The loan portfolio of GCBC is structured to support both consumer and commercial lending, ensuring a balanced approach to risk and return:

Equity and Capital Adequacy

GCBC maintains strong capital ratios, which are essential for regulatory compliance and financial stability:

Community Engagement

GCBC emphasizes its role in community development through various initiatives and services aimed at enhancing local economic growth. This commitment is reflected in its community-oriented banking practices and customer service philosophy.

Conclusion

Greene County Bancorp, Inc. continues to demonstrate its dedication to its mission through strong financial performance, a diverse deposit and loan portfolio, and active community engagement.

How Greene County Bancorp, Inc. (GCBC) Works

Financial Performance Overview

For the three months ended September 30, 2024, Greene County Bancorp, Inc. reported net income of $6.3 million, a decrease from $6.5 million in the same period of 2023. The annualized return on average assets was 0.93%, down from 0.99%, and the return on average equity decreased to 11.86% from 14.09%.

Income Statement Summary

Balance Sheet Highlights

As of September 30, 2024, total assets were $2.7 billion, up from $2.6 billion a year earlier. Total liabilities increased to $2.5 billion, and shareholders' equity rose to $216.3 million compared to $206.0 million at the end of June 2024.

Loan Portfolio Composition

Deposits Overview

Deposits totaled $2.5 billion at September 30, 2024, an increase of 4.1% from $2.4 billion at June 30, 2024. The breakdown of deposits is as follows:

Interest Income and Expense Analysis

For the three months ended September 30, 2024, interest income increased by 12.6% to $27.8 million, while interest expense rose by 30.3% to $14.6 million. The net interest margin decreased to 2.03% from 2.12% in 2023.

Noninterest Income and Expense

Noninterest income for the three months ended September 30, 2024, was $3.7 million, reflecting a 13.3% increase from the previous year. Major contributions came from bank-owned life insurance and fee income.

Capital Ratios

Liquidity Position

As of September 30, 2024, Greene County Bancorp had $213.5 million in cash and cash equivalents, representing 7.4% of total assets.

Dividends

On July 17, 2024, a quarterly cash dividend of $0.09 per share was declared, reflecting an annual cash dividend rate of $0.36.

How Greene County Bancorp, Inc. (GCBC) Makes Money

Interest Income

Greene County Bancorp, Inc. generates interest income primarily through its loan portfolio and investment securities. For the three months ended September 30, 2024, total interest income amounted to $27.8 million, compared to $24.7 million for the same period in 2023, reflecting an increase of 12.6%.

The breakdown of interest income is as follows:

Interest Expense

Interest expense also increased, reaching $14.6 million for the three months ended September 30, 2024, up from $11.2 million in 2023, marking a 30.3% rise. This increase was primarily due to higher average balances of interest-bearing liabilities and increased costs associated with deposits.

The cost breakdown is as follows:

Net Interest Income

Net interest income for the three months ended September 30, 2024, was $13.1 million, a decrease of $303,000 from $13.4 million in 2023. The net interest rate spread decreased to 1.76% from 1.89%, while the net interest margin declined to 2.03% from 2.12%.

Noninterest Income

Noninterest income showed growth, increasing by 13.3% to $3.7 million for the three months ended September 30, 2024, compared to $3.3 million in 2023. Key components are:

Noninterest Expense

The total noninterest expense for the three months ended September 30, 2024, was $9.55 million, compared to $8.85 million in 2023. Significant expense components include:

Net Income

Greene County Bancorp, Inc. reported net income of $6.3 million for the three months ended September 30, 2024, a slight decrease from $6.5 million in the same period of 2023. Basic and diluted earnings per share were both $0.37 in 2024, compared to $0.38 in 2023.

Balance Sheet Overview

As of September 30, 2024, total assets stood at $2.9 billion, an increase from $2.8 billion at June 30, 2024. The breakdown of net loans receivable is:

Updated on 16 Nov 2024

Resources:

1. Greene County Bancorp, Inc. (GCBC) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Greene County Bancorp, Inc. (GCBC)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Greene County Bancorp, Inc. (GCBC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.