Greene County Bancorp, Inc. (GCBC): Business Model Canvas [11-2024 Updated]

Discover the innovative framework behind Greene County Bancorp, Inc. (GCBC) as we delve into its Business Model Canvas. This comprehensive analysis highlights how GCBC engages with its community, leverages technology, and maintains strong customer relationships to drive growth and profitability. From key partnerships to diverse revenue streams, explore the essential elements that underpin the bank's operations and strategic vision.

Greene County Bancorp, Inc. (GCBC) - Business Model: Key Partnerships

Collaborations with local businesses

Greene County Bancorp, Inc. maintains strong relationships with local businesses to enhance its service offerings and community engagement. As of September 30, 2024, the bank reported total deposits of $2.5 billion, with business deposits amounting to $470.9 million, representing 18.9% of the total deposit portfolio. This collaboration enables GCBC to provide tailored financial products that cater to the needs of the local economy.

Relationships with government entities

The bank actively engages with various government entities to facilitate community development and access to funding. As part of its community commitment, GCBC participates in government programs that support local infrastructure and housing projects. Its effective tax rate was reported at 6.4% for the three months ended September 30, 2024, influenced by benefits from tax-exempt bond income. These partnerships are crucial for securing financial support for local initiatives and enhancing the bank's reputation within the community.

Partnerships with financial institutions

GCBC collaborates with several financial institutions to broaden its lending capabilities. As of September 30, 2024, the bank had established unsecured lines of credit with Atlantic Community Bankers Bank for $15 million and three other financial institutions for $75 million. This partnership allows GCBC to manage liquidity effectively and engage in loan participations, thus diversifying its loan portfolio and mitigating risks associated with lending.

Engagement with community organizations

Greene County Bancorp is dedicated to community engagement through partnerships with local organizations. These collaborations focus on financial literacy, economic development, and community support initiatives. In the quarter ending September 30, 2024, GCBC reported net income of $6.3 million, which reflects its commitment to sustainable community investments. By aligning with community organizations, the bank enhances its corporate social responsibility profile while fostering trust and loyalty among its customer base.

Partnership Type	Details	Financial Impact
Local Businesses	Total Deposits: $2.5 billion; Business Deposits: $470.9 million	18.9% of total deposit portfolio
Government Entities	Effective Tax Rate: 6.4%; Participation in local infrastructure programs	Benefits from tax-exempt income
Financial Institutions	Lines of Credit: $15 million + $75 million	Enhanced liquidity management
Community Organizations	Focus on financial literacy and economic development	Net Income: $6.3 million

Greene County Bancorp, Inc. (GCBC) - Business Model: Key Activities

Offering a variety of banking services

Greene County Bancorp, Inc. provides a comprehensive range of banking services including:

• Retail banking
• Commercial banking
• Mortgage services
• Investment services
• Insurance products

As of September 30, 2024, total deposits reached $2.5 billion, reflecting a 4.1% increase from the previous quarter. The breakdown of major classifications of deposits includes:

Deposit Type	Amount (in thousands)	Percentage of Portfolio
Noninterest-bearing deposits	$132,897	5.4%
Certificates of deposit	$156,344	6.3%
Savings deposits	$244,415	9.8%
Money market deposits	$104,698	4.2%
NOW deposits	$1,847,520	74.3%

Loan origination and servicing

The company's loan portfolio totaled $1.5 billion as of September 30, 2024, with a slight increase of $1.2 million from the previous quarter. The composition of loans includes:

Loan Type	Amount (in thousands)	Percentage of Total Loans
Residential real estate	$413,810	27.6%
Commercial real estate	$951,928	63.4%
Home equity	$30,854	2.1%
Consumer	$4,836	0.3%
Commercial loans	$99,784	6.6%

Risk management and compliance

Risk management is critical for GCBC, particularly in the current economic environment. The allowance for credit losses on loans was $19.8 million as of September 30, 2024, representing 1.32% of total loans. The provision for credit losses amounted to $634,000 for the quarter, an increase from $457,000 in the prior year.

Additionally, the bank maintains compliance with regulations, which is imperative for operational integrity and customer trust.

Community outreach and support

GCBC is committed to community engagement, providing various support initiatives. This includes local sponsorships and financial literacy programs aimed at enhancing community welfare. The bank's approach to community support contributes to its reputation and customer loyalty, which is crucial for its competitive positioning.

As part of its outreach, GCBC has also focused on building relationships with local businesses, thereby fostering economic growth within Greene County.

Greene County Bancorp, Inc. (GCBC) - Business Model: Key Resources

Strong capital base

The equity of Greene County Bancorp, Inc. stands at $211 million as of September 30, 2024. This represents a significant increase from $183.7 million reported in the same quarter of the previous year, indicating a robust capital position that supports growth and stability in operations.

Experienced management team

The management team at Greene County Bancorp, Inc. possesses extensive experience in the banking sector. Key executives have backgrounds in finance, risk management, and operational leadership, contributing to the company’s strategic direction and operational efficiency.

Technological infrastructure for banking operations

Greene County Bancorp has invested in advanced technological systems to enhance banking operations. This includes a comprehensive digital banking platform that facilitates online transactions and enhances customer experience. The company has also implemented robust cybersecurity measures to protect customer data and maintain trust.

Diverse loan and deposit portfolios

As of September 30, 2024, Greene County Bancorp reported total deposits of $2.5 billion, an increase of 4.1% from the previous quarter. The breakdown of deposits is as follows:

Deposit Type	Amount (in thousands)	Percentage of Portfolio
Noninterest-bearing deposits	$132,897	5.4%
Certificates of deposit	$156,344	6.3%
Savings deposits	$244,415	9.8%
Money market deposits	$104,698	4.2%
NOW deposits	$1,847,520	74.3%

In terms of loan portfolio, total net loans stood at $1.5 billion as of September 30, 2024, with the following composition:

Loan Type	Balance (in thousands)	Percentage of Portfolio
Residential real estate	$413,810	27.6%
Commercial real estate	$951,928	63.4%
Home equity	$30,854	2.1%
Consumer	$4,836	0.3%
Commercial loans	$99,784	6.6%

The allowance for credit losses on loans totaled $19.8 million, representing 1.32% of total loans, reflecting prudent risk management practices in the company’s lending operations.

Greene County Bancorp, Inc. (GCBC) - Business Model: Value Propositions

Personalized banking experiences

Greene County Bancorp, Inc. (GCBC) emphasizes tailored banking solutions to meet individual customer needs. The bank provides dedicated customer service and personalized financial advice, aiming to build long-term relationships with clients. As of September 30, 2024, the bank had approximately 17,000 active customer accounts, demonstrating its commitment to customer engagement.

Competitive interest rates on loans and deposits

GCBC offers competitive interest rates on both loans and deposits. As of September 30, 2024, the average interest rates for loans were as follows:

Loan Type	Average Interest Rate
Residential Real Estate Loans	4.25%
Commercial Real Estate Loans	5.00%
Home Equity Loans	4.75%
Consumer Loans	6.00%

For deposits, GCBC provided the following average interest rates as of the same date:

Deposit Type	Average Interest Rate
NOW Deposits	2.73%
Certificates of Deposit	4.39%
Savings Deposits	0.48%
Money Market Deposits	1.25%

Strong community presence and support

GCBC has a robust community engagement strategy, participating in various local initiatives and supporting local businesses. The bank contributed over $200,000 to community projects and non-profit organizations in 2024, reinforcing its commitment to local development. The bank's focus on municipal deposits, which totaled $1.14 billion at September 30, 2024, highlights its dedication to serving the community.

Access to a range of financial products

GCBC provides a comprehensive suite of financial products designed to meet diverse customer needs. This includes:

• Checking and savings accounts
• Personal and commercial loans
• Investment services
• Wealth management solutions

As of September 30, 2024, the bank managed approximately $500 million in assets under management (AUM) through its wealth management services, showcasing its capability to offer diverse financial solutions to clients.

Greene County Bancorp, Inc. (GCBC) - Business Model: Customer Relationships

Focus on customer service and satisfaction

Greene County Bancorp, Inc. (GCBC) prioritizes customer service and satisfaction as a core element of its business model. In the three months ended September 30, 2024, GCBC reported net income of $6.3 million, which reflects the bank's focus on maintaining strong customer relationships. The bank's return on average assets was 0.93%, while the return on average equity was 11.86% during the same period .

Community engagement initiatives

GCBC engages actively with the community through various initiatives aimed at enhancing customer relationships. The bank had $2.5 billion in total deposits as of September 30, 2024, demonstrating a 4.1% increase from the previous quarter . This growth can be attributed to community-focused programs and outreach that resonate with local customers.

Regular communication through newsletters and updates

The bank utilizes newsletters and updates to maintain regular communication with its customers. Noninterest income, which includes service charges and fees, amounted to $3.7 million for the three months ended September 30, 2024, an increase of 13.3% compared to the same period in 2023. This growth indicates successful engagement strategies that keep customers informed and connected.

Loyalty programs for long-term customers

GCBC has implemented loyalty programs designed to reward long-term customers. The bank's total deposits included $132.9 million in noninterest-bearing deposits and $1.8 billion in NOW deposits as of September 30, 2024 . These figures suggest that loyalty initiatives are effectively encouraging customers to maintain their banking relationships with GCBC.

Metric	Value as of September 30, 2024
Total Deposits	$2.5 billion
Net Income	$6.3 million
Return on Average Assets	0.93%
Return on Average Equity	11.86%
Noninterest Income	$3.7 million
Noninterest-Bearing Deposits	$132.9 million
NOW Deposits	$1.8 billion

Greene County Bancorp, Inc. (GCBC) - Business Model: Channels

Physical bank branches in Greene County

Greene County Bancorp, Inc. operates several physical bank branches across Greene County, New York. As of September 30, 2024, the bank's total deposits amounted to $2.5 billion, reflecting an increase of $96.7 million, or 4.1%, compared to the previous quarter. The branches serve as a primary point of contact for customers, offering services such as personal banking, business accounts, and loan applications.

Online banking platform

The bank's online banking platform provides customers with 24/7 access to their accounts, allowing them to perform transactions, check balances, and manage their finances from anywhere. The total interest income generated from loans and investment securities for the three months ended September 30, 2024, was $27.8 million, a significant portion of which is facilitated through online banking services.

Mobile banking application

GCBC's mobile banking application enhances customer engagement by providing features such as mobile check deposits, fund transfers, and account management. The convenience of mobile banking has contributed to the overall increase in deposits, with NOW deposits alone increasing by $87.9 million, or 5.0%, from June 30, 2024, to September 30, 2024.

Customer service via phone and email

Customer service is accessible through multiple channels including phone and email support. This ensures that customers can receive assistance with their banking needs promptly. For the three months ended September 30, 2024, noninterest income, which includes service charges and fees, totaled $3.7 million, indicating the bank's commitment to maintaining customer satisfaction and service quality.

Channel	Details	Financial Impact
Physical Bank Branches	Total deposits: $2.5 billion as of September 30, 2024	Increase of $96.7 million (4.1%) from previous quarter
Online Banking Platform	24/7 access for transactions and account management	Total interest income: $27.8 million for Q3 2024
Mobile Banking Application	Features include mobile check deposits and fund transfers	NOW deposits increased by $87.9 million (5.0%)
Customer Service	Available via phone and email	Noninterest income: $3.7 million for Q3 2024

Greene County Bancorp, Inc. (GCBC) - Business Model: Customer Segments

Retail customers (individuals and families)

As of September 30, 2024, retail deposits at Greene County Bancorp totaled $871.7 million, representing 35.1% of the overall deposit portfolio. This segment includes individual and family customers utilizing various banking services, including savings accounts, checking accounts, and personal loans.

Small to medium-sized businesses

Business deposits amounted to $470.9 million at September 30, 2024, accounting for 18.9% of total deposits. Greene County Bancorp offers tailored financial products such as business loans, lines of credit, and cash management services to meet the needs of small and medium-sized enterprises.

Municipal and government entities

Municipal deposits reached $1.1 billion, which is approximately 46.0% of the total deposits as of September 30, 2024. This segment includes various local government entities that rely on Greene County Bancorp for banking services, including public fund management and investment services.

Non-profit organizations

While specific numbers for non-profit organizations are not delineated, they are included within the retail and municipal deposit categories. These organizations benefit from specialized accounts and services designed to support their unique operational needs, such as fund management and grant disbursements.

Customer Segment	Total Deposits (in millions)	Percentage of Total Deposits
Retail customers	$871.7	35.1%
Small to medium-sized businesses	$470.9	18.9%
Municipal and government entities	$1,143.3	46.0%
Non-profit organizations	Included in retail and municipal	N/A

Greene County Bancorp, Inc. (GCBC) - Business Model: Cost Structure

Employee salaries and benefits

Total salaries and employee benefits amounted to $5.878 million for the three months ended September 30, 2024, an increase from $5.491 million in the same period of 2023, reflecting a growth of 7.0% due to new positions created to support the company's growth.

The net periodic pension expense related to the defined benefit pension plan was reported at $4,000 for the three months ended September 30, 2024.

Operational costs (branches and technology)

Total noninterest expense increased to $9.550 million for the three months ended September 30, 2024, compared to $8.845 million for the same period in 2023, marking an increase of 8.0%.

• Occupancy expense: $636,000 (2024) vs. $537,000 (2023)
• Equipment and furniture expense: $150,000 (2024) vs. $138,000 (2023)
• Service and data processing fees: $767,000 (2024) vs. $591,000 (2023)
• Computer software, supplies, and support: $355,000 (2024) vs. $511,000 (2023)
• FDIC insurance premiums: $322,000 (2024) vs. $312,000 (2023)
• Legal and professional fees: $364,000 (2024) vs. $383,000 (2023)
• Other operational costs: $1.001 million (2024) vs. $785,000 (2023)

Operational Cost Category	Q3 2024 ($)	Q3 2023 ($)	Change (%)
Occupancy Expense	636,000	537,000	18.4%
Equipment and Furniture	150,000	138,000	8.7%
Service and Data Processing Fees	767,000	591,000	29.8%
Computer Software, Supplies, and Support	355,000	511,000	(30.5%)
FDIC Insurance Premiums	322,000	312,000	3.2%
Legal and Professional Fees	364,000	383,000	(5.0%)
Other Operational Costs	1,001,000	785,000	27.5%

Marketing and promotional expenses

Marketing and promotional expenses for the three months ended September 30, 2024, were $77,000, a decrease from $97,000 in the same period of 2023, indicating a reduction of 20.6%.

Regulatory compliance costs

Regulatory compliance costs are included in the overall noninterest expenses, which totaled $9.550 million for the three months ended September 30, 2024. Specific figures for regulatory compliance costs were not explicitly detailed in the available data, but they contribute to the overall operational expenses that have seen an increase of 8.0% compared to the previous year.

Greene County Bancorp, Inc. (GCBC) - Business Model: Revenue Streams

Interest income from loans

Interest income amounted to $27.8 million for the three months ended September 30, 2024, compared to $24.7 million for the same period in 2023, representing an increase of $3.1 million or 12.6%. The average loan balances increased by $60.4 million, with the yield on loans rising by 36 basis points.

Noninterest income (fees and service charges)

Total noninterest income for the three months ended September 30, 2024, was $3.7 million, an increase of $438,000 or 13.3% compared to $3.3 million in 2023. The breakdown of noninterest income is as follows:

Type of Income	2024 (in thousands)	2023 (in thousands)	Change (in thousands)	Percentage Change
Service charges on deposit accounts	$1,226	$1,230	($4)	(0.3%)
Debit card fees	$1,101	$1,133	($32)	(2.8%)
Investment services	$248	$243	$5	2.1%
E-commerce fees	$37	$29	$8	27.6%
Bank-owned life insurance	$648	$362	$286	79.0%
Other operating income	$477	$302	$175	57.9%

Investment income from securities

The average balance of securities increased by $13.7 million for the three months ended September 30, 2024, with yields on securities rising by 45 basis points. Investment income from taxable securities was $3.3 million and from non-taxable securities was $4.5 million, contributing significantly to overall revenue.

Income from bank-owned life insurance products

Income from bank-owned life insurance (BOLI) products increased by $286,000 to $648,000 for the three months ended September 30, 2024, compared to $362,000 in 2023. This increase was primarily due to the restructuring of BOLI contracts, leading to higher yields on the policies.

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.