UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT UNDER SECTION 13 OF 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OF 15(d) OF THE SECURITIES EXCHANGE ACT Commission File Number: 0-25165 GREENE COUNTY BANCORP, INC. (Exact Name of Registrant as Specified in its Charter) United States 14-1809721 (State or other jurisdiction of incorporation or organization) (I.R.S. ...

Financial Performance - Net income for the quarter ended March 31, 2025, was $8.1 million, a 37.4% increase from $5.9 million for the same quarter in 2024[2] - Net income for the nine months ended March 31, 2025, was $21.8 million, compared to $18.0 million for the same period in 2024, reflecting a growth of 20.5%[22] - Basic and diluted earnings per share (EPS) increased to $0.47 for the three months ended March 31, 2025, compared to $0.34 for the same period in 2024[22] - Pre-provision net income increased by $5.0 million, or 26.6%, to $24.0 million for the nine months ended March 31, 2025, compared to $19.0 million for the same period in 2024[4] - Pre-provision net income for Q1 2025 reached $9,138,000, up 48.4% from $6,151,000 in Q1 2024[30] Assets and Loans - Total consolidated assets reached a new record high of $3.0 billion as of March 31, 2025, up from $1.0 billion in 2018[2] - Net loans amounted to $1.6 billion at March 31, 2025, marking a new record high[3] - Net loans receivable rose by $118.0 million, or 8.0%, to $1.6 billion at March 31, 2025, driven primarily by $111.9 million in commercial real estate loans[13] - Average interest-earning assets for Q1 2025 were $2,789,102,000, compared to $2,583,271,000 in Q1 2024, reflecting a growth of 8.0%[28] - The average interest-earning assets for the nine months ended March 31, 2025, were $2,711,083,000, up from $2,556,441,000 in the same period of 2024, indicating a growth of 6.0%[28] Deposits - Total deposits were $2.7 billion at March 31, 2025, also a new record high[3] - Deposits totaled $2.7 billion at March 31, 2025, an increase of $265.5 million, or 11.1%, from $2.4 billion at June 30, 2024[13] Income and Expenses - Net interest income rose by $3.9 million to $16.2 million for the quarter ended March 31, 2025, compared to $12.3 million for the same quarter in 2024[5] - Noninterest income increased by $444,000, or 13.0%, to $3.9 million for the quarter ended March 31, 2025[8] - Noninterest expense increased by $808,000, or 8.8%, to $10.0 million for the quarter ended March 31, 2025, compared to $9.2 million for the same quarter in 2024[11] - The efficiency ratio improved to 50.04% for the three months ended March 31, 2025, down from 58.79% for the same period in 2024[22] Credit Quality - The provision for credit losses on loans was $1.1 million for the quarter ended March 31, 2025, compared to $277,000 for the same quarter in 2024[10] - Nonperforming loans decreased to $2.9 million at March 31, 2025, from $3.7 million at June 30, 2024[10] - The company maintained a non-performing loans to net loans ratio of 0.18% as of March 31, 2025, down from 0.39% a year earlier[22] Return on Equity - The company reported a return on average equity of 14.41% for the three months ended March 31, 2025, compared to 11.92% for the same period in 2024[22]

Core Points - Greene County Bancorp, Inc. reported a net income of $8.1 million for the third quarter of fiscal year 2025, representing a 37.4% increase compared to $5.9 million in the same quarter of the previous year [1][2] - For the nine months ended March 31, 2025, net income was $21.8 million, up from $18.0 million in the prior year, marking a 20.9% increase [1][5] - The company achieved a milestone of $3.0 billion in consolidated assets as of March 31, 2025, with total deposits reaching $2.7 billion [2][5] Financial Performance - Net interest income for the three months ended March 31, 2025, increased by $3.9 million to $16.2 million, and for the nine months, it rose by $5.3 million to $43.4 million [4][21] - Pre-provision net income for the nine months ended March 31, 2025, was $24.0 million, an increase of 26.6% from $19.0 million in the previous year [3][30] - The return on average assets was 1.04% and return on average equity was 13.40% for the nine months ended March 31, 2025 [5][21] Asset and Loan Growth - Total consolidated assets were $3.0 billion, with net loans at $1.6 billion and total securities at $1.1 billion as of March 31, 2025 [2][5] - Average loan balances increased by $113.1 million for the three months and $80.3 million for the nine months ended March 31, 2025 [7][15] - The company experienced a significant increase in commercial real estate loans, contributing to the overall loan growth [15] Credit Quality - The provision for credit losses on loans was $1.1 million for the three months ended March 31, 2025, compared to $277,000 in the same period of the previous year [8][10] - Nonperforming loans decreased to $2.9 million at March 31, 2025, from $3.7 million at June 30, 2024, indicating improved credit quality [10][11] Noninterest Income and Expenses - Noninterest income increased by $444,000, or 13.0%, to $3.9 million for the three months ended March 31, 2025, and by $1.3 million, or 12.6%, to $11.5 million for the nine months [9][21] - Noninterest expense rose by $808,000, or 8.8%, to $10.0 million for the three months ended March 31, 2025, and by $1.6 million, or 5.7%, to $29.0 million for the nine months [9][21] Balance Sheet Highlights - Total deposits increased by $265.5 million, or 11.1%, to $2.7 billion at March 31, 2025, compared to $2.4 billion at June 30, 2024 [15][26] - Shareholders' equity rose to $229.0 million at March 31, 2025, from $206.0 million at June 30, 2024, primarily due to net income and a decrease in accumulated other comprehensive loss [15][26]

Core Points - Greene County Bancorp, Inc. reported a net income of $8.1 million for the three months ended March 31, 2025, and $21.8 million for the nine months ended March 31, 2025, representing increases of 37.4% and 20.9% respectively compared to the same periods in 2024 [1][3][6] - The company achieved a milestone of $3.0 billion in consolidated assets as of March 31, 2025, with net loans of $1.6 billion and total deposits of $2.7 billion, both record highs [3][6][18] - Pre-provision net income for the nine months ended March 31, 2025, was $24.0 million, an increase of 26.6% from the previous year [4][6] Financial Performance - Net interest income increased to $16.2 million for the three months ended March 31, 2025, and $43.4 million for the nine months ended March 31, 2025, driven by higher average balances of interest-earning assets and increased interest rates [5][6][8] - The net interest margin rose to 2.32% for the three months and 2.14% for the nine months ended March 31, 2025, reflecting improved interest income on loans and securities [9][10] - Noninterest income increased to $3.9 million for the three months and $11.5 million for the nine months ended March 31, 2025, primarily due to the Employee Retention Tax Credit and increased fee income [12][6] Credit Quality - Provision for credit losses on loans was $1.1 million for the three months and $2.3 million for the nine months ended March 31, 2025, attributed to loan growth and economic forecast adjustments [10][6] - Nonperforming loans decreased to $2.9 million at March 31, 2025, compared to $3.7 million at June 30, 2024, indicating improved credit quality [15][6] Balance Sheet Highlights - Total assets reached $3.0 billion at March 31, 2025, up from $2.8 billion at June 30, 2024, marking a 6.5% increase [18][6] - Total deposits increased by $265.5 million, or 11.1%, to $2.7 billion as of March 31, 2025 [18][6] - Shareholders' equity rose to $229.0 million at March 31, 2025, primarily due to net income and a decrease in accumulated other comprehensive loss [18][6]

Financial Position - Total assets increased by $140.0 million, or 5.0%, to $2.97 billion at December 31, 2024, compared to $2.83 billion at June 30, 2024[136] - Total deposits rose to $2.5 billion at December 31, 2024, representing an increase of $78.0 million, or 3.3%, from $2.4 billion at June 30, 2024[163] - Shareholders' equity grew to $218.4 million at December 31, 2024, compared to $206.0 million at June 30, 2024, driven by net income of $13.8 million[178] - The Company reported an increase in book value per share to $12.83 at December 31, 2024, up from $12.10 at June 30, 2024[183] - Total assets increased to $2,850,592,000 as of December 31, 2024, from $2,642,902,000 in 2023, marking a growth of 7.9%[187] Loan and Credit Quality - Net loans receivable increased by $51.0 million, or 3.4%, to $1.53 billion at December 31, 2024[136] - The allowance for credit losses (ACL) on loans was $20.2 million at December 31, 2024, compared to $19.2 million at June 30, 2024, with an ACL to total loans receivable ratio of 1.30%[155] - Non-accrual loans totaled $4.1 million as of December 31, 2024, up from $3.7 million at June 30, 2024, with a non-accrual loans to total loans ratio of 0.26%[160] - Loans classified as substandard and special mention totaled $54.2 million at December 31, 2024, an increase of $5.6 million from June 30, 2024[209] - The allowance for credit losses on unfunded commitments increased to $1.7 million as of December 31, 2024, from $1.3 million at June 30, 2024[156] Securities and Investments - Securities available-for-sale and held-to-maturity rose by $105.0 million, or 10.1%, to $1.1 billion at December 31, 2024[136] - Total securities available-for-sale amounted to $374.5 million, representing 32.7% of the portfolio, while total securities held-to-maturity reached $770.9 million, accounting for 67.3% of the portfolio[140] - At December 31, 2024, 59.4% of the securities portfolio consisted of state and political subdivision securities[138] - Mortgage-backed securities represented 32.2% of the securities portfolio at December 31, 2024, with no exposure to sub-prime loans[138] Income and Expenses - The Company’s net interest income is primarily affected by changes in interest rates and the level of assets and liabilities[121] - For the three months ended December 31, 2024, net interest income increased to $14,068,000 from $12,388,000 in 2023, representing a growth of 13.6%[188] - Interest income rose to $29.4 million for the three months ended December 31, 2024, up from $25.6 million in 2023, marking a 14.9% increase[198] - Noninterest income increased by $397,000, or 11.4%, to $3.9 million for the three months ended December 31, 2024, compared to $3.5 million for the same period in 2023[211] - Noninterest expense increased by $60,000, or 0.6%, to $9.4 million for the three months ended December 31, 2024, compared to $9.3 million for the same period in 2023[213] Risk and Liquidity - The Company is exposed to various risks including market risk, credit risk, and liquidity risk, which may materially affect its operations[120] - The primary liquidity measurement indicated a Month 1 liquidity ratio of 101.76% as of December 31, 2024[220] - The Company anticipates sufficient funds to meet current commitments based on cash and cash equivalents and available-for-sale investments[220] - Unfunded loan commitments totaled $141.9 million as of December 31, 2024[220] - The Company had zero brokered deposits at both December 31, 2024, and June 30, 2024[163] Interest Rates and Economic Conditions - The Federal Reserve raised its target benchmark interest rate by 525 basis points from March 2022 to December 2023, impacting market conditions[179] - The net interest margin on a fully taxable-equivalent basis improved to 2.31% in 2024 from 2.19% in 2023[188] - The net interest rate spread for the three months ended December 31, 2024, was 1.80%, up from 1.70% in the previous year[187] - The effective tax rate decreased to 7.3% and 6.9% for the three and six months ended December 31, 2024, respectively, down from 10.4% and 11.8% in the prior year[214]

Financial Performance - Net income for the three months ended December 31, 2024, was $7.5 million, an increase of 31.2% compared to $5.7 million for the same period in 2023[2] - Net income for the six months ended December 31, 2024, was $13.8 million, compared to $12.2 million for the same period in 2023, reflecting a growth of 12.9%[21] - Net income for Q4 2024 was $7,490,000, representing a 31.3% increase from $5,707,000 in Q4 2023[29] - Pre-provision net income increased by $2.1 million, or 16.1%, to $14.9 million for the six months ended December 31, 2024, compared to $12.8 million for the same period in 2023[4] - Pre-provision net income for Q4 2024 was $7,968,000, an increase of 35.5% from $5,877,000 in Q4 2023[29] - Pre-provision net income for the six months ended December 31, 2024, was $14,863,000, an increase of 16.3% from $12,803,000 in the same period of 2023[29] Assets and Liabilities - Total consolidated assets reached a record high of $2.97 billion at December 31, 2024, with net loans of $1.53 billion and total deposits of $2.47 billion[3] - Total assets increased by $140.0 million, or 5.0%, to $2.97 billion at December 31, 2024, compared to $2.83 billion at June 30, 2024[12] - Net loans receivable rose by $51.0 million, or 3.4%, to $1.53 billion at December 31, 2024, driven primarily by $46.4 million in commercial real estate loans[12] - Deposits totaled $2.5 billion at December 31, 2024, an increase of $78.0 million, or 3.3%, from $2.4 billion at June 30, 2024[12] - Securities available-for-sale and held-to-maturity increased by $105.0 million, or 10.1%, to $1.1 billion at December 31, 2024[12] Income and Expenses - Net interest income rose by $1.7 million to $14.1 million for the three months ended December 31, 2024, driven by an increase in the average balance of interest-earning assets[5] - Noninterest income increased by $397,000, or 11.4%, to $3.9 million for the three months ended December 31, 2024, primarily due to higher fee income from interest rate swap contracts and loan fees[8] - Noninterest expense increased by $765,000, or 4.2%, to $18.9 million for the six months ended December 31, 2024, mainly due to higher salaries and employee benefits[10] - Interest income for the three months ended December 31, 2024, was $29.4 million, up from $25.6 million in the same period of 2023, representing a year-over-year increase of 7.1%[21] Tax and Provisions - The effective tax rate decreased to 7.3% for the three months ended December 31, 2024, compared to 10.4% for the same period in 2023, reflecting a higher mix of tax-exempt income[11] - Provision for credit losses on loans amounted to $1.2 million for the six months ended December 31, 2024, up from $645,000 for the same period in 2023, attributed to increased loan volume[9] - Provision for credit losses in Q4 2024 was $478,000, compared to $170,000 in Q4 2023, indicating an increase of 180.0%[29] Ratios and Margins - The net interest margin increased by 10 basis points to 2.04% for the three months ended December 31, 2024, compared to 1.94% for the same period in 2023[9] - The efficiency ratio improved to 52.31% for the three months ended December 31, 2024, compared to 58.78% for the same period in 2023[21] - The company reported a net interest margin of 2.30% for the six months ended December 31, 2024, compared to 2.28% for the same period in 2023[27] - Net interest margin on a fully taxable-equivalent basis for Q4 2024 was 2.31%, up from 2.19% in Q4 2023[27] Equity and Shareholder Information - Shareholders' equity increased to $218.4 million at December 31, 2024, from $206.0 million at June 30, 2024, primarily due to net income and a decrease in accumulated other comprehensive loss[14] - Basic and diluted earnings per share (EPS) increased to $0.44 for the three months ended December 31, 2024, up from $0.34 in the same period of 2023[21]

Core Viewpoint - Greene County Bancorp, Inc. reported strong financial performance for the second quarter of its fiscal year, with significant increases in net income and total assets compared to the previous year [1][3][6]. Financial Performance - Net income for the three months ended December 31, 2024, was $7.5 million, a 31.2% increase from $5.7 million in the same period of 2023 [1][3]. - For the six months ended December 31, 2024, net income was $13.8 million, up from $12.2 million in 2023, marking a 12.9% increase [1][6]. - Pre-provision net income for the six months ended December 31, 2024, was $14.9 million, a 16.1% increase from $12.8 million in 2023 [4]. Asset and Deposit Growth - Total consolidated assets reached a record high of $2.97 billion at December 31, 2024, up from $2.83 billion at June 30, 2024 [6][13]. - Net loans increased to $1.53 billion, a 3.4% rise from $1.48 billion at June 30, 2024 [17]. - Total deposits were $2.5 billion at December 31, 2024, reflecting a 3.3% increase from $2.4 billion at June 30, 2024 [17]. Interest Income and Margin - Net interest income rose to $14.1 million for the three months ended December 31, 2024, compared to $12.4 million in 2023, driven by an increase in interest-earning assets [5][23]. - The net interest margin increased to 2.04% for the three months ended December 31, 2024, up from 1.94% in the same period of 2023 [9][24]. Credit Quality - Provision for credit losses on loans was $505,000 for the three months ended December 31, 2024, compared to $183,000 in 2023, reflecting increased loan volume [9][10]. - Nonperforming loans amounted to $4.1 million at December 31, 2024, compared to $3.7 million at June 30, 2024, indicating a slight increase in credit risk [14]. Noninterest Income and Expense - Noninterest income increased by 11.4% to $3.9 million for the three months ended December 31, 2024, primarily due to higher fee income [14]. - Noninterest expense rose to $9.4 million for the three months ended December 31, 2024, a slight increase from $9.3 million in 2023 [14]. Tax and Effective Tax Rate - The effective tax rate was 7.3% for the three months ended December 31, 2024, down from 10.4% in the same period of 2023, reflecting a higher mix of tax-exempt income [12]. Shareholder Equity - Shareholders' equity increased to $218.4 million at December 31, 2024, compared to $206.0 million at June 30, 2024, primarily due to net income and a decrease in accumulated other comprehensive loss [17].

Financial Performance - Net income for the three months ended September 30, 2024, was $6.3 million, a decrease of 3.2% from $6.5 million in the same period of 2023[1] - Net income for the three months ended September 30, 2024, was $6,261,000, down from $6,469,000, a decrease of 3.2%[26] - Basic and diluted EPS decreased to $0.37 from $0.38, a decline of 2.6%[26] Assets and Deposits - Total assets reached a new record high of $2.9 billion at September 30, 2024, an increase of $48.8 million, or 1.7%, from $2.8 billion at June 30, 2024[15] - Total assets as of September 30, 2024, were $2,874,621,000, up from $2,825,788,000, an increase of 1.7%[27] - Total deposits increased to $2.5 billion at September 30, 2024, up $96.7 million, or 4.1%, from $2.4 billion at June 30, 2024[17] - Total deposits increased to $2,485,874,000 from $2,389,222,000, reflecting a growth of 4.0%[27] Loans and Credit Losses - Net loans remained at $1.5 billion at September 30, 2024, with a growth of $15.3 million in commercial real estate loans[17] - Provision for credit losses on loans was $634,000 for the three months ended September 30, 2024, compared to $457,000 in the same period of 2023[9] - Provision for credit losses increased to $634,000 from $457,000, reflecting a rise of 38.7%[26] - The allowance for credit losses on loans to non-performing loans was 542.39%, up from 369.10%, showing an increase in coverage for potential loan losses[26] Income and Expenses - Noninterest income increased by $438,000, or 13.3%, to $3.7 million for the three months ended September 30, 2024, compared to $3.3 million in the same period of 2023[12] - Noninterest income rose to $3,737,000, compared to $3,299,000, marking an increase of 13.3%[26] - Noninterest expense rose by $705,000, or 8.0%, to $9.6 million for the three months ended September 30, 2024, primarily due to increased salaries and employee benefits[13] Tax and Efficiency - The effective tax rate decreased to 6.4% for the three months ended September 30, 2024, from 13.0% in the same period of 2023[14] - The efficiency ratio for the period was 56.60%, compared to 52.84% in the previous year, indicating a decline in operational efficiency[26] Interest Income - Interest income for the three months ended September 30, 2024, was $27,769,000, an increase from $24,672,000 in the same period last year, representing a growth of 8.5%[26] - Net interest income for the same period was $13,136,000, slightly down from $13,439,000, indicating a decrease of 2.3%[26] - The net interest margin decreased to 2.03% for the three months ended September 30, 2024, down from 2.12% in the same period of 2023[7] Shareholders' Equity - Shareholders' equity increased to $216.3 million at September 30, 2024, compared to $206.0 million at June 30, 2024, driven by net income and a decrease in accumulated other comprehensive loss[18]

Residential and Commercial Lending - As of June 30, 2024, the Company purchased $17.4 million of residential loans outside its primary market area, ensuring full due diligence on each loan to maintain credit quality [23]. - The Company offers residential mortgage loans with a maximum loan-to-value ratio of 85%, increasing to 90% for first-time homebuyer programs [23]. - The Company has seen an increase in adjustable-rate mortgage loans due to the higher interest rate environment, reflecting a shift in customer preference [25]. - The Company's adjustable-rate mortgage loans allow for maximum rate adjustments of 150 basis points per year and 600 basis points over the loan term [26]. - At June 30, 2024, the largest loan to one borrower was $23.8 million, consisting of eleven commercial mortgages and lines, performing according to repayment terms [44]. - The Company retains most residential mortgage loans in its portfolio, exposing it to interest rate risk as yields on fixed-rate assets remain constant while deposit rates may increase [24]. - The Company has emphasized growing its commercial lending department, focusing on multi-family and mixed-use properties [32]. - The Company requires personal guarantees on all commercial real estate mortgages unless properties are fully stabilized with strong cash flow coverage [33]. - The Company’s consumer loans include direct loans on automobiles and personal loans, generally with terms of one to five years [36]. Investment Strategy and Risk Management - The Company maintains high balances of liquid investments to mitigate interest rate risk and meet collateral requirements for municipal deposits exceeding FDIC insurance limits [45]. - The Company’s investment strategy focuses on high-quality securities, with an emphasis on managing interest rate risk through diversified investments across short-, intermediate-, and long-term categories [47]. - The Company does not hold any private-label mortgage-backed securities, focusing instead on those guaranteed by government-sponsored enterprises [53]. - The Company’s portfolio of state and political subdivision securities is primarily composed of short-term obligations, which are generally exempt from federal income tax [50]. - The Company has an unrecaptured pre-1988 Federal bad debt reserve of approximately $1.8 million, for which no Federal income tax provision has been made [67]. - The Company does not engage in balance sheet derivative or hedging investment transactions, such as interest rate swaps or caps [47]. - The Company’s mortgage-backed securities are primarily secured by cash flows from pools of mortgages, with guarantees from entities like Freddie Mac and Fannie Mae [54]. - The Company employs a risk management approach to assess credit risk on its state and political subdivision securities portfolio, which is considered low [52]. Capital and Regulatory Compliance - As of June 30, 2024, The Bank of Greene County met the criteria for being considered "well capitalized," with a total risk-based capital ratio exceeding 10%, a Tier 1 risk-based ratio exceeding 8.0%, a common equity Tier 1 ratio exceeding 6.5%, and a leverage ratio exceeding 5.0% [81]. - The capital standards require maintenance of common equity Tier 1 capital, Tier 1 capital, and total capital to risk-weighted assets of at least 4.5%, 6%, and 8%, respectively [75]. - The community bank leverage ratio was established at 9% Tier 1 capital to total average assets, effective January 1, 2020 [78]. - The Bank of Greene County was in compliance with the loans-to-one borrower limitations as of June 30, 2024, which generally restricts loans to a single borrower to 15% of unimpaired capital and surplus [81]. - The Bank received a "satisfactory" Community Reinvestment Act rating in its most recent examination, indicating compliance with credit needs in its communities [88]. - Federal regulations require that an insured depository institution shall not make any capital distribution if it would be undercapitalized after such distribution [86]. - The Bank has exercised a one-time opt-out regarding the treatment of Accumulated Other Comprehensive Income (AOCI) in its regulatory capital determinations [75]. - The Bank must maintain at least 65% of its portfolio assets in qualified thrift investments to satisfy the qualified thrift lender requirement [82]. - The regulations limit capital distributions and certain discretionary bonus payments to management if the institution does not hold a capital conservation buffer of 2.5% of common equity Tier 1 capital to risk-weighted assets [77]. Cybersecurity and Risk Management - The Bank is subject to various federal and state laws regarding cybersecurity, which impose standards and requirements related to data security and risk management processes [90]. - The Board of Directors oversees cybersecurity risk management, ensuring effective governance and proactive responses to emerging threats [127]. - The Company has not experienced any material losses related to cybersecurity threats for the year ended June 30, 2024 [126]. - The Company employs comprehensive methodologies for risk assessment, including regular examinations of emerging threats and vulnerability scanning [121]. - The Chief Information Security Officer and Chief Information Officer regularly update the Board on cybersecurity risks and compliance with regulatory requirements [128]. - The Company has developed an Incident Response Plan to address cybersecurity incidents, ensuring timely mitigation and remediation [122]. Interest Rate Risk and Sensitivity - The Company has a relatively low level of net interest income (NII) sensitivity, indicating low income exposure to rising interest rates, with the largest risk being a declining rate environment [269]. - As of June 30, 2024, the Company's economic value of equity (EVE) was $297,749 thousand at par, with a projected decrease of 30% to $208,413 thousand in a +300 basis points rate shock scenario [273]. - The cumulative one-year and three-year gap positions were positive at 16.03% and 10.69% respectively, indicating a favorable position for interest rate sensitivity [276]. - EVE sensitivity has increased across the industry due to loans and investments losing market value in the current higher interest rate environment [274]. - The Company performs dynamic modeling to assess interest rate risk, incorporating projected balance sheets and income statements under various economic scenarios [270]. - The EVE ratio at par was 10.89%, with a projected change of -264 basis points in a +300 basis points rate shock scenario [273]. - The Company utilizes gap analysis to monitor interest rate sensitivity, with a positive gap indicating a favorable position during rising interest rates [276]. - The EVE measure does not account for future changes in the balance sheet, which may limit its effectiveness [271]. - The Company’s interest rate risk measurements are subject to certain assumptions that may not reflect actual market responses [275]. - The analysis of interest rate sensitivity is limited by the potential for different reactions of similar maturity assets and liabilities to market rate changes [277].

Financial Performance - Net income for the fiscal year ended June 30, 2024, was $24.8 million, a decrease of $6.0 million or 19.5% compared to $30.8 million for the fiscal year ended June 30, 2023[2][4]. - Net income for the year ended June 30, 2024, was $24.769 million, down from $30.785 million for the year ended June 30, 2023[33]. - Net income for the three months ended June 30, 2024, was $6,732 thousand, compared to $6,460 thousand for the same period in 2023, representing an increase of 4.20%[39]. - Net income excluding provision for credit losses (non-GAAP) for the three months ended June 30, 2024, was $6,581 thousand, slightly down from $6,588 thousand in the previous year[39]. - The Company reported a basic and diluted EPS of $1.45 for the year ended June 30, 2024, down from $1.81 for the year ended June 30, 2023[33]. Income and Revenue - Net interest income decreased by $10.2 million to $51.0 million for the year ended June 30, 2024, from $61.2 million for the year ended June 30, 2023[5]. - Interest income for the year ended June 30, 2024, was $103.664 million, compared to $84.625 million for the year ended June 30, 2023, representing an increase of 22.5%[33]. - Noninterest income increased by $1.8 million or 14.5% to $13.9 million for the year ended June 30, 2024, compared to $12.1 million for the year ended June 30, 2023[16]. - Net interest margin decreased to 1.98% for the year ended June 30, 2024, compared to 2.45% for the year ended June 30, 2023[12]. - Net interest margin on a fully taxable-equivalent basis (non-GAAP) decreased to 2.24% for the three months ended June 30, 2024, down from 2.47% in the prior year[37]. Assets and Loans - Total assets reached a record high of $2.8 billion at June 30, 2024, an increase of $127.5 million or 4.7% from $2.7 billion at June 30, 2023[19]. - Average loan balances increased by $83.6 million for the year ended June 30, 2024, with the yield on loans increasing by 54 basis points[11]. - Net loans receivable increased by $92.6 million, or 6.7%, to $1.5 billion at June 30, 2024, compared to $1.4 billion at June 30, 2023[21]. - Net loans receivable rose to $1,480,229 thousand, up from $1,387,654 thousand, marking an increase of 6.66% year-over-year[35]. Deposits and Borrowings - Consolidated deposits totaled $2.4 billion at June 30, 2024, consisting of retail, business, municipal, and private banking relationships[10]. - Deposits totaled $2.39 billion at June 30, 2024, a decrease of $47.9 million, or 2.0%, from $2.44 billion at June 30, 2023[22]. - Total deposits decreased to $2,389,222 thousand as of June 30, 2024, from $2,437,161 thousand, a decline of 1.97%[35]. - Borrowings increased to $199.1 million at June 30, 2024, from $49.5 million at June 30, 2023, an increase of $149.6 million[23]. - The Company had zero brokered deposits as of June 30, 2024, compared to $60 million as of June 30, 2023[22]. Credit Quality - Nonperforming loans decreased to $3.7 million at June 30, 2024, from $5.5 million at June 30, 2023[15]. - The allowance for credit losses on loans to total loans receivable was 1.28% at June 30, 2024, down from 1.51% at June 30, 2023[13]. - The allowance for credit losses on loans was $19,244 thousand as of June 30, 2024, down from $21,212 thousand in the previous year, indicating improved credit quality[35]. Shareholders' Equity - Shareholders' equity increased to $206.0 million at June 30, 2024, from $183.3 million at June 30, 2023, primarily due to net income of $24.8 million[24]. - Total shareholders' equity increased to $206,000 thousand as of June 30, 2024, compared to $183,283 thousand in the previous year, reflecting a growth of 12.35%[35]. Taxation - The effective tax rate decreased to 1.4% for the three months ended June 30, 2024, compared to 10.2% for the same period in 2023[18]. Efficiency - The efficiency ratio for the year ended June 30, 2024, was 57.49%, compared to 52.63% for the year ended June 30, 2023[33]. Accounting Standards - The Company adopted the CECL accounting standard effective July 1, 2023, impacting the allowance for credit losses[34].