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 DECEMBER 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 ...

Financial Performance - Net income for the six months ended December 31, 2025, was $19.2 million, a record high, compared to $13.8 million for the same period in 2024, representing a 39.3% increase[2][4] - Pre-provision net income increased by $5.7 million, or 38.7%, to $20.6 million for the six months ended December 31, 2025, compared to $14.9 million for the same period in 2024[7] - Net interest income increased by $9.4 million to $36.6 million for the six months ended December 31, 2025, from $27.2 million for the same period in 2024[8] - Net income for the six months ended December 31, 2025, was $19.2 million, compared to $13.8 million for the same period in 2024, reflecting a significant year-over-year growth[25] - Basic and diluted earnings per share (EPS) increased to $1.13 for the six months ended December 31, 2025, compared to $0.81 for the same period in 2024[25] - Net income (GAAP) for the six months ended December 31, 2025, was $19,162 thousand, an increase of 39.9% from $13,751 thousand in the same period of 2024[33] Asset and Loan Growth - Total assets reached $3.1 billion at December 31, 2025, marking a new record high for the company[4][6] - Total assets increased by $106.4 million, or 3.5%, to $3.1 billion at December 31, 2025, compared to $3.0 billion at June 30, 2025[16] - Net loans amounted to $1.7 billion at December 31, 2025, also a record high for the company[4][6] - Net loans receivable rose by $58.6 million, or 3.6%, to $1.7 billion at December 31, 2025, driven by growth in commercial real estate loans, commercial loans, and home equity loans[18] - Loans receivable increased to $1,687,184 thousand as of December 31, 2025, compared to $1,627,406 thousand at June 30, 2025, reflecting a growth of 3.7%[29] Income and Expense Analysis - Noninterest income decreased by $470,000, or 6.2%, to $7.1 million for the six months ended December 31, 2025, compared to $7.6 million for the same period in 2024[15] - Noninterest expense increased by $1.6 million, or 8.4%, to $20.5 million for the six months ended December 31, 2025, compared to $18.9 million for the same period in 2024[15] - The efficiency ratio improved to 46.93% for the six months ended December 31, 2025, down from 54.39% in the same period of 2024[25] Tax and Equity - The effective tax rate was 10.9% for the six months ended December 31, 2025, compared to 6.9% for the same period in 2024, primarily due to higher pre-tax income[13] - Shareholders' equity increased to $258.3 million at December 31, 2025, primarily due to net income of $19.2 million and a decrease in accumulated other comprehensive loss[18] Recognition and Awards - The company was recognized as a top-performing bank in Piper Sandler's Class of 2025 Bank & Thrift Small-Cap All Stars, ranking 9th out of 24 banks[5] Credit Losses - The allowance for credit losses on loans increased by $1.2 million, or 5.9%, to $21.3 million at December 31, 2025, reflecting an increase in loan volume[18] - The allowance for credit losses on loans was $21,334 thousand as of December 31, 2025, compared to $20,146 thousand at June 30, 2025[29] Deposits - Deposits remained stable at $2.6 billion as of December 31, 2025, with a notable increase in NOW deposits by $48.1 million, or 2.5%[18] - Total deposits reached $2,641,040 thousand as of December 31, 2025, slightly up from $2,639,835 thousand at June 30, 2025[29] Forward-Looking Statements - The Company cautions that forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those anticipated[19] Interest Margin - Net interest margin on a fully taxable-equivalent basis (non-GAAP) improved to 2.83% for the three months ended December 31, 2025, compared to 2.31% in the same period of 2024[31]

CATSKILL, N.Y., Jan. 21, 2026 (GLOBE NEWSWIRE) -- Greene County Bancorp, Inc. (the “Company”) (NASDAQ: 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, 2025, which is the second quarter of the Company’s fiscal year ending June 30, 2026. Net income for the three and six months ended December 31, 2025, was $10.3 million, or $0.60 per basic and diluted share, and $19.2 million, or ...

CATSKILL, N.Y., Jan. 21, 2026 (GLOBE NEWSWIRE) -- Greene County Bancorp, Inc. (the “Company”) (NASDAQ: 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, 2025, which is the second quarter of the Company’s fiscal year ending June 30, 2026. Net income for the three and six months ended December 31, 2025, was $10.3 million, or $0.60 per basic and diluted share, and $19.2 million, or ...

Core Insights - Greene County Bancorp, Inc. has been recognized as one of Piper Sandler's Class of 2025 Sm-All Stars, ranking 9th out of 24 banks and thrifts, marking its ninth inclusion since 2004, the highest among its peers in this class [1][2]. Company Overview - Greene County Bancorp, Inc. serves as the holding company for the Bank of Greene County and its subsidiary Greene County Commercial Bank, providing community-based banking services in the Hudson Valley and Capital Region of New York State [3]. - The company caters to a diverse clientele, including individuals, businesses, municipalities, and other institutions, and is publicly traded on the Nasdaq Capital Market [3]. Performance Recognition - To achieve the All Star Bank status, companies must have a market capitalization below $2.5 billion and meet various criteria related to growth, profitability, credit quality, and capital strength, while outperforming industry metrics [2]. - The recognition underscores the resilience and sustainability of the company's business model, emphasizing its focus on community banking, credit quality, and relationship-based growth [2].

Core Insights - Greene County Bancorp, Inc. has been recognized as one of Piper Sandler's Class of 2025 Sm-All Stars, ranking 9th out of 24 banks and thrifts, marking its ninth inclusion since 2004, the highest for any bank in this class [1][2]. Company Overview - Greene County Bancorp, Inc. serves as the holding company for the Bank of Greene County and its subsidiary Greene County Commercial Bank, providing community-based banking services in the Hudson Valley and Capital Region of New York State [3]. - The company caters to a diverse clientele, including individuals, businesses, municipalities, and other institutions, and is publicly traded on the Nasdaq Capital Market [3]. Performance Recognition - To achieve the All Star Bank status, companies must have a market cap below $2.5 billion and meet various criteria related to growth, profitability, credit quality, and capital strength, while outperforming industry metrics [2]. - The recognition emphasizes the resilience and sustainability of the company's business model, which focuses on community banking, credit quality, and relationship-based growth [2].

Financial Position - Total assets increased by $17.9 million, or 0.6%, to $3.1 billion at September 30, 2025, compared to $3.0 billion at June 30, 2025[123]. - Total cash and cash equivalents decreased by $28.5 million, or 15.6%, to $154.6 million at September 30, 2025, down from $183.1 million at June 30, 2025[124]. - Total securities at carrying value were $1.14 billion as of September 30, 2025, reflecting a slight increase from $1.13 billion at June 30, 2025[127]. - Total deposits reached $2.7 billion at September 30, 2025, an increase of $83.4 million, or 3.2%, from $2.6 billion at June 30, 2025[148]. - Shareholders' equity increased to $248.2 million at September 30, 2025, compared to $238.8 million at June 30, 2025, driven by net income of $8.9 million[165]. Loan and Credit Quality - Net loans receivable rose by $42.3 million, or 2.6%, to $1.65 billion at September 30, 2025, from $1.61 billion at June 30, 2025[123]. - The allowance for credit losses on loans rose by $1.1 million, or 5.7%, to $21.3 million at September 30, 2025, attributed to increased loan volume and adjustments in the commercial real estate segment[129]. - The allowance for credit losses (ACL) on loans to total loans receivable was 1.27% at September 30, 2025, compared to 1.24% at June 30, 2025[141]. - Non-accrual loans and non-performing assets are monitored closely, with three loans modified in the last 12 months totaling an amortized basis of $2.9 million[144]. - Non-performing assets increased to $3.6 million at September 30, 2025, up from $3.1 million at June 30, 2025, representing a 16.1% increase[146]. Securities and Investments - Securities available-for-sale and held-to-maturity increased by $5.0 million, or 0.4%, to $1.137 billion at September 30, 2025[125]. - Total securities available-for-sale amounted to $350.1 million, representing 30.8% of the portfolio, while total securities held-to-maturity reached $787.1 million, or 69.2% of the portfolio[127]. - The commercial real estate loan portfolio totaled $1.09 billion, with non-owner occupied loans comprising 84.7% of this segment[133]. - Mortgage-backed securities represented 32.8% of the securities portfolio at September 30, 2025, with no exposure to sub-prime loans[125]. Income and Expenses - Net income for the three months ended September 30, 2025, was $8.9 million, an increase of $2.6 million or 41.3% compared to $6.3 million for the same period in 2024[184]. - Interest income rose to $31.6 million for the three months ended September 30, 2025, an increase of $3.9 million or 13.9% from $27.8 million in 2024[186]. - Net interest income increased by $4.4 million to $17.5 million for the three months ended September 30, 2025, compared to $13.1 million for the same period in 2024[191]. - Total noninterest expense rose by $511,000, or 5.4%, to $10.1 million for the three months ended September 30, 2025, compared to $9.6 million in 2024[201]. Capital and Regulatory Compliance - The Company met all applicable regulatory capital requirements at September 30, 2025[210]. - As of September 30, 2025, The Bank of Greene County reported total risk-based capital of $304,107 thousand, with a ratio of 16.7% compared to the required 8.0%[211]. - The Tier 1 risk-based capital for The Bank of Greene County was $281,354 thousand, representing a ratio of 15.5%, exceeding the required 6.0%[211]. - Greene County Commercial Bank's total risk-based capital as of September 30, 2025, was $124,630 thousand, with a significant ratio of 44.6% against the required 8.0%[211]. Interest Rates and Economic Conditions - The Federal Reserve raised its target benchmark interest rate by 525 basis points in 2022 and 2023, impacting market rates significantly[166]. - The effective tax rate increased to 12.9% for the three months ended September 30, 2025, from 6.4% in the prior year[202]. - The Company anticipates sufficient funds to meet current commitments and funding needs based on cash levels and available investments[209].

[Earnings Release Summary](index=1&type=section&id=Earnings%20Release%20Summary) Greene County Bancorp, Inc. reported strong Q1 fiscal year 2026 financial results, achieving record net income, total assets, loans, deposits, and equity, alongside strategic expansion [Q1 Fiscal Year 2026 Financial Results](index=1&type=section&id=Q1%20Fiscal%20Year%202026%20Financial%20Results) Greene County Bancorp, Inc. reported a significant increase in net income for the first quarter of fiscal year 2026, driven by strong operational performance. Net income rose by 41.7% year-over-year, reaching $8.9 million, with basic and diluted EPS at $0.52 Net Income and EPS (Three Months Ended September 30) | Metric | Sep 30, 2025 | Sep 30, 2024 | Change ($) | Change (%) | | :---------------------- | :----------- | :----------- | :--------- | :--------- | | Net Income | $8.9 million | $6.3 million | $2.6 million | 41.7% | | Basic and Diluted EPS | $0.52 | $0.37 | - | - | [CEO Commentary & Strategic Highlights](index=1&type=section&id=CEO%20Commentary%20%26%20Strategic%20Highlights) The CEO highlighted a historical net income record of over $18.2 million in the prior six-month period and announced record highs in total assets, loans, deposits, and equity. The company also finalized expansion plans into Saratoga County with a new Clifton Park office opening - The Company achieved a historical net income record of over **$18.2 million** in the prior six-month period, reflecting powerful performance and consistent growth[2](index=2&type=chunk) - **Record highs** were reached in total assets, loans, deposits, and equity during the quarter ended September 30, 2025, underscoring balance sheet strength and business model resilience[2](index=2&type=chunk) - Expansion plans into Saratoga County were finalized, with a grand opening for the new Clifton Park office scheduled for October 25, 2025, marking entry into a vibrant New York State market[2](index=2&type=chunk) [Key Financial Metrics](index=1&type=section&id=Key%20Financial%20Metrics) The company reported record highs in total assets, net loans, and total deposits, alongside strong profitability ratios for the quarter ended September 30, 2025 Key Financial Metrics (as of/for Three Months Ended September 30, 2025) | Metric | Value | | :------------------------- | :------------- | | Net Income | $8.9 million | | Total Assets | $3.1 billion | | Net Loans | $1.6 billion | | Total Deposits | $2.7 billion | | Return on Average Assets | 1.21% | | Return on Average Equity | 14.59% | [Detailed Financial Performance](index=2&type=section&id=Detailed%20Financial%20Performance) This section details the company's financial performance, highlighting significant increases in pre-provision net income and net interest income, stable credit quality, and changes in noninterest income and expenses [Pre-provision Net Income](index=2&type=section&id=Pre-provision%20Net%20Income) Pre-provision net income significantly increased by 46.9% year-over-year, reaching $10.1 million, reflecting effective balance sheet management and a higher net interest margin Pre-provision Net Income (Three Months Ended September 30) | Metric | Sep 30, 2025 | Sep 30, 2024 | Change ($) | Change (%) | | :----------------------- | :----------- | :----------- | :--------- | :--------- | | Pre-provision Net Income | $10.1 million | $6.9 million | $3.2 million | 46.9% | - The Company strategically managed its balance sheet by focusing on higher-yielding loans and securities and lowering deposit rates to align with Federal Reserve interest rate cuts, resulting in a **higher net interest margin**[5](index=5&type=chunk) [Net Interest Income and Margin](index=2&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income increased substantially due to growth in interest-earning assets and higher yields, coupled with a reduction in rates paid on interest-bearing liabilities. This led to a significant improvement in both net interest rate spread and net interest margin Net Interest Income and Margin (Three Months Ended September 30) | Metric | Sep 30, 2025 | Sep 30, 2024 | Change ($) | Change (bps) | | :------------------------------- | :----------- | :----------- | :--------- | :----------- | | Net Interest Income | $17.5 million | $13.1 million | $4.4 million | - | | Net Interest Rate Spread | 2.25% | 1.76% | - | 49 bps | | Net Interest Margin | 2.48% | 2.03% | - | 45 bps | | Fully Taxable-Equivalent Net Interest Margin | 2.79% | 2.29% | - | 50 bps | - The increase in net interest income was driven by a **$239.8 million** increase in average interest-earning assets and an **18 basis point increase** in interest rates on these assets, alongside a **31 basis point decrease** in rates paid on interest-bearing liabilities[6](index=6&type=chunk) - The Company implemented a strategic reduction in deposit rates, aligning with Federal Reserve rate cuts, while repricing assets into the higher interest rate environment[7](index=7&type=chunk) [Credit Quality and Provision for Credit Losses](index=3&type=section&id=Credit%20Quality%20and%20Provision%20for%20Credit%20Losses) The provision for credit losses increased due to higher loan volume and specific reserve adjustments, while overall credit quality remained stable with a decrease in substandard and special mention loans and no material charge-offs Credit Quality Metrics (Three Months Ended September 30) | Metric | Sep 30, 2025 | Sep 30, 2024 | Change ($) | | :----------------------------------------- | :----------- | :----------- | :--------- | | Provision for Credit Losses | $1.3 million | $634,000 | $666,000 | | Net Charge-offs on Loans | $60,000 | $114,000 | -$54,000 | Credit Quality Ratios (as of Period End) | Metric | Sep 30, 2025 | Jun 30, 2025 | | :----------------------------------------- | :----------- | :----------- | | Allowance for Credit Losses on Loans to Total Loans Receivable | 1.27% | 1.24% | | Nonperforming Assets to Total Assets | 0.12% | 0.10% | | Nonperforming Loans to Net Loans | 0.22% | 0.19% | - Loans classified as substandard and special mention decreased by **$1.9 million** to **$43.5 million** at September 30, 2025, with **$40.0 million** performing[11](index=11&type=chunk) [Noninterest Income and Noninterest Expense](index=3&type=section&id=Noninterest%20Income%20and%20Noninterest%20Expense) Noninterest income increased due to higher customer interest rate swap contracts and service fees, while noninterest expense also rose, primarily driven by increased salaries and employee benefits to support growth, partially offset by a decrease in unfunded commitment expense Noninterest Income and Expense (Three Months Ended September 30) | Metric | Sep 30, 2025 | Sep 30, 2024 | Change ($) | Change (%) | | :----------------- | :----------- | :----------- | :--------- | :--------- | | Noninterest Income | $4.0 million | $3.7 million | $249,000 | 6.7% | | Noninterest Expense | $10.1 million | $9.6 million | $511,000 | 5.4% | - The increase in noninterest income was primarily due to a **$170,000** increase in income from customer interest rate swap contracts and an **$81,000** increase in customer service fees[11](index=11&type=chunk) - Noninterest expense growth was mainly attributed to a **$278,000** increase in salaries and employee benefits for new positions supporting growth, and a **$250,000** charitable donation, partially offset by a **$547,000** decrease in unfunded commitment expense[11](index=11&type=chunk) [Income Taxes](index=4&type=section&id=Income%20Taxes) The effective tax rate increased significantly to 12.9% from 6.4% year-over-year, primarily due to higher pre-tax income and a lower proportion of tax-exempt income Effective Tax Rate (Three Months Ended September 30) | Metric | Sep 30, 2025 | Sep 30, 2024 | | :----------------- | :----------- | :----------- | | Effective Tax Rate | 12.9% | 6.4% | - The increase in the effective tax rate was primarily due to higher pre-tax income and a lower mix of tax-exempt income from municipal bonds, tax advantage loans, and bank-owned life insurance in proportion to pre-tax income[12](index=12&type=chunk) [Balance Sheet Summary](index=4&type=section&id=Balance%20Sheet%20Summary) The balance sheet reflects modest asset growth, increased loans and deposits, a significant reduction in borrowings, and a healthy increase in shareholders' equity [Total Assets and Cash Equivalents](index=4&type=section&id=Total%20Assets%20and%20Cash%20Equivalents) Total assets grew modestly to $3.1 billion, while cash and cash equivalents decreased, reflecting continued strong capital and liquidity positions Total Assets and Cash Equivalents (as of Period End) | Metric | Sep 30, 2025 | Jun 30, 2025 | Change ($) | Change (%) | | :------------------------- | :----------- | :----------- | :--------- | :--------- | | Total Assets | $3.1 billion | $3.0 billion | $17.9 million | 0.6% | | Total Cash and Cash Equivalents | $154.6 million | $183.1 million | -$28.5 million | -15.6% | - The Company maintained **strong capital and liquidity positions** as of September 30, 2025[13](index=13&type=chunk) [Securities](index=4&type=section&id=Securities) Securities available-for-sale and held-to-maturity increased slightly, with significant purchases of state and political subdivision securities, partially offset by principal pay-downs and maturities Securities (as of Period End) | Metric | Sep 30, 2025 | Jun 30, 2025 | Change ($) | Change (%) | | :----------------------------------- | :----------- | :----------- | :--------- | :--------- | | Securities AFS and HTM | $1.1 billion | $1.1 billion | $5.0 million | 0.4% | - Securities purchases totaled **$93.3 million** during the quarter, primarily consisting of **$82.2 million** in state and political subdivision securities[13](index=13&type=chunk) - Principal pay-downs and maturities amounted to **$90.1 million**, primarily from state and political subdivision securities[13](index=13&type=chunk) [Net Loans Receivable](index=4&type=section&id=Net%20Loans%20Receivable) Net loans receivable experienced solid growth, primarily driven by commercial real estate and commercial loans, leading to an increase in the allowance for credit losses Net Loans Receivable and Allowance for Credit Losses (as of Period End) | Metric | Sep 30, 2025 | Jun 30, 2025 | Change ($) | Change (%) | | :----------------------------------------- | :----------- | :----------- | :--------- | :--------- | | Net Loans Receivable | $1.65 billion | $1.61 billion | $42.3 million | 2.6% | | Allowance for Credit Losses on Loans | $21.3 million | $20.1 million | $1.1 million | 5.7% | - Loan growth was primarily in commercial real estate loans (**$32.3 million**), commercial loans (**$9.2 million**), and home equity loans (**$3.1 million**)[13](index=13&type=chunk) - The increase in the allowance for credit losses was mainly attributable to increased loan volume and a higher quantitative modeling reserve for the commercial real estate segment[13](index=13&type=chunk) [Deposits and Borrowings](index=4&type=section&id=Deposits%20and%20Borrowings) Total deposits increased, with significant growth in NOW and noninterest-bearing deposits, while borrowings decreased substantially due to a reduction in short-term borrowings Deposits and Borrowings (as of Period End) | Metric | Sep 30, 2025 | Jun 30, 2025 | Change ($) | Change (%) | | :------------------------- | :----------- | :----------- | :--------- | :--------- | | Total Deposits | $2.7 billion | $2.6 billion | $83.4 million | 3.2% | | Borrowings | $54.1 million | $128.1 million | -$74.0 million | -57.8% | - NOW deposits increased by **$96.1 million (4.9%)** and noninterest-bearing deposits increased by **$12.7 million (11.5%)**[13](index=13&type=chunk) - The decrease in borrowings was primarily due to the elimination of **$74.0 million** in short-term borrowings[13](index=13&type=chunk) [Shareholders' Equity](index=5&type=section&id=Shareholders%27%20Equity) Shareholders' equity increased to $248.2 million, primarily driven by net income and a decrease in accumulated other comprehensive loss, partially offset by dividends paid Shareholders' Equity (as of Period End) | Metric | Sep 30, 2025 | Jun 30, 2025 | Change ($) | | :------------------- | :----------- | :----------- | :--------- | | Shareholders' Equity | $248.2 million | $238.8 million | $9.4 million | - The increase in shareholders' equity resulted primarily from **$8.9 million** in net income and a **$1.3 million** decrease in accumulated other comprehensive loss, partially offset by **$781,000** in dividends declared and paid[14](index=14&type=chunk) [Corporate Overview](index=5&type=section&id=Corporate%20Overview) This section provides an overview of Greene County Bancorp, Inc., its subsidiaries, and its role as a community-based banking service provider in New York State [Company Overview](index=5&type=section&id=Company%20Overview) Greene County Bancorp, Inc. serves as the holding company for the Bank of Greene County and Greene County Commercial Bank, providing community-based banking services across the Hudson Valley and Capital Region of New York State - Greene County Bancorp, Inc. is the holding company for the Bank of Greene County and its subsidiary Greene County Commercial Bank[15](index=15&type=chunk) - The Company is a leading provider of community-based banking services throughout the Hudson Valley and Capital Region of New York State, serving individuals, businesses, municipalities, and other institutions[15](index=15&type=chunk) - Greene County Bancorp, Inc. (GCBC) is publicly traded on the Nasdaq Capital Market and is committed to economic development and quality of life in its communities[15](index=15&type=chunk) [Disclosures](index=6&type=section&id=Disclosures) This section outlines important disclosures regarding forward-looking statements and the use of non-GAAP financial measures in the report [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This section contains standard cautionary language regarding forward-looking statements, emphasizing that actual results may differ materially due to various known and unknown risks and uncertainties beyond the Company's control, and disclaims any obligation to update these statements - Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those contemplated[16](index=16&type=chunk) - Factors that may cause differences include general economic conditions, financial and regulatory changes, interest rate fluctuations, competition, technological developments, and customer behavior[16](index=16&type=chunk) - The Company cautions readers not to place undue reliance on forward-looking statements and disclaims any obligation to publicly release revisions unless required by law[17](index=17&type=chunk)[18](index=18&type=chunk) [Non-GAAP Measures](index=6&type=section&id=Non-GAAP%20Measures) The report includes non-GAAP financial measures, such as fully taxable-equivalent net interest margin and pre-provision net income, which management believes are useful supplemental tools for evaluating performance, but should not be considered substitutes for GAAP measures - The news release contains non-GAAP financial measures, including fully taxable-equivalent net interest margin and pre-provision net income, which are commonly utilized by financial institutions[19](index=19&type=chunk)[20](index=20&type=chunk) - Management believes these non-GAAP measures are useful in evaluating the Company's performance and provide an alternative view of income generation, but are supplemental and not superior to GAAP information[5](index=5&type=chunk)[20](index=20&type=chunk) - Reconciliations of non-GAAP to GAAP measures are provided on page 9 of the report[20](index=20&type=chunk) [Consolidated Financial Statements and Reconciliations](index=7&type=section&id=Consolidated%20Financial%20Statements%20and%20Reconciliations) This section presents the Company's consolidated statements of income and financial condition, along with reconciliations of non-GAAP to GAAP financial measures [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) The consolidated statements of income present the Company's revenues, expenses, and net income for the three months ended September 30, 2025 and 2024, along with key financial ratios Consolidated Statements of Income (Three Months Ended September 30, Dollars in thousands) | Metric | 2025 | 2024 | | :---------------------- | :------ | :------ | | Interest income | $31,623 | $27,769 | | Interest expense | 14,103 | 14,633 | | Net interest income | 17,520 | 13,136 | | Provision for credit losses | 1,257 | 634 | | Noninterest income | 3,986 | 3,737 | | Noninterest expense | 10,061 | 9,550 | | Income before taxes | 10,188 | 6,689 | | Tax provision | 1,318 | 428 | | Net income | $8,870 | $6,261 | | Basic and diluted EPS | $0.52 | $0.37 | Selected Financial Ratios (Three Months Ended September 30) | Ratio | 2025 | 2024 | | :---------------------------------------- | :------ | :------ | | Return on average assets | 1.21% | 0.93% | | Return on average equity | 14.59% | 11.86% | | Net interest rate spread | 2.25% | 1.76% | | Net interest margin | 2.48% | 2.03% | | Fully taxable-equivalent net interest margin | 2.79% | 2.29% | | Efficiency ratio | 46.78% | 56.60% | | Non-performing assets to total assets | 0.12% | 0.13% | | Non-performing loans to net loans | 0.22% | 0.25% | | Allowance for credit losses on loans to non-performing loans | 597.92% | 542.39% | | Allowance for credit losses on loans to total loans | 1.27% | 1.32% | | Shareholders' equity to total assets | 8.11% | 7.52% | | Dividend payout ratio | 19.23% | 24.32% | | Actual dividends paid to net income | 8.80% | 24.48% | | Book value per share | $14.58 | $12.70 | [Consolidated Statements of Financial Condition](index=8&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) The consolidated statements of financial condition provide a snapshot of the Company's assets, liabilities, and shareholders' equity as of September 30, 2025, and June 30, 2025 Consolidated Statements of Financial Condition (as of, Dollars in thousands) | Asset/Liability Category | Sep 30, 2025 | Jun 30, 2025 | | :--------------------------------- | :----------- | :----------- | | **Assets:** | | | | Total cash and cash equivalents | $154,567 | $183,078 | | Securities available-for-sale | 350,073 | 356,062 | | Securities held-to-maturity | 787,132 | 776,147 | | Net loans receivable | 1,649,555 | 1,607,260 | | Total assets | $3,058,545 | $3,040,609 | | **Liabilities:** | | | | Total deposits | $2,723,187 | $2,639,835 | | Borrowings, short-term | - | 74,000 | | Borrowings, long-term | 4,189 | 4,189 | | Subordinated notes payable, net | 49,904 | 49,867 | | Total liabilities | 2,810,369 | 2,801,772 | | **Shareholders' Equity:** | | | | Total shareholders' equity | $248,176 | $238,837 | | Total liabilities and shareholders' equity | $3,058,545 | $3,040,609 | [Non-GAAP to GAAP Reconciliations](index=9&type=section&id=Non-GAAP%20to%20GAAP%20Reconciliations) This section provides reconciliations for non-GAAP financial measures, specifically the fully taxable-equivalent net interest margin and pre-provision net income, to their most directly comparable GAAP measures Non-GAAP to GAAP Reconciliations: Fully Taxable-Equivalent Net Interest Margins (Three Months Ended September 30, Dollars in thousands) | Metric | 2025 | 2024 | | :----------------------------------------- | :------ | :------ | | Net interest income (GAAP) | $17,520 | $13,136 | | Tax-equivalent adjustment | 2,225 | 1,713 | | Net interest income-fully taxable-equivalent basis (non-GAAP) | $19,745 | $14,849 | | Average interest-earning assets (GAAP) | $2,829,350 | $2,589,580 | | Net interest margin-fully taxable-equivalent basis (non-GAAP) | 2.79% | 2.29% | Non-GAAP to GAAP Reconciliations: Pre-provision Net Income (Three Months Ended September 30, Dollars in thousands) | Metric | 2025 | 2024 | | :-------------------------- | :------ | :------ | | Net income (GAAP) | $8,870 | $6,261 | | Provision for credit losses | 1,257 | 634 | | Pre-provision net income (non-GAAP) | $10,127 | $6,895 |

Core Insights - Greene County Bancorp, Inc. reported a net income of $8.9 million for the three months ended September 30, 2025, representing a 41.7% increase from $6.3 million in the same period of 2024 [1][6][23] Financial Performance - Total consolidated assets reached a record high of $3.1 billion at September 30, 2025, with net loans at $1.6 billion and total deposits at $2.7 billion, both also record highs [3][6][15] - Pre-provision net income increased to $10.1 million for the three months ended September 30, 2025, up 46.9% from $6.9 million in the same period of 2024 [4][32] - Net interest income rose by $4.4 million to $17.5 million, driven by an increase in the average balance of interest-earning assets and a rise in interest rates on those assets [5][23] Asset and Liability Management - The average balance of interest-earning assets increased by $239.8 million, while interest rates on these assets rose by 18 basis points [5][7] - The cost of NOW deposits decreased by 41 basis points, and the cost of certificates of deposit decreased by 88 basis points [8][10] - Total deposits increased by $83.4 million, or 3.2%, compared to June 30, 2025, with significant growth in NOW and noninterest-bearing deposits [15][27] Credit Quality - Provision for credit losses was $1.3 million for the three months ended September 30, 2025, compared to $634,000 in the same period of 2024, primarily due to increased loan volume [10][12] - Nonperforming loans amounted to $3.6 million, representing 0.22% of net loans, an increase from 0.19% at June 30, 2025 [10][12] Noninterest Income and Expenses - Noninterest income increased by $249,000, or 6.7%, to $4.0 million, mainly due to higher income from customer interest rate swap contracts [14][23] - Noninterest expense rose by $511,000, or 5.4%, to $10.1 million, driven by increased salaries and employee benefits [14][23] Taxation - The effective tax rate for the three months ended September 30, 2025, was 12.9%, up from 6.4% in the same period of 2024, primarily due to higher pre-tax income [12][23] Strategic Developments - The company announced its expansion into Saratoga County, with a new office set to open on October 25, 2025, marking entry into a growing market [3][6]

Lending and Loan Portfolio - As of June 30, 2025, the largest aggregate amount loaned by the Company to one borrower was $47.7 million, consisting of seven commercial mortgages and construction loans[58]. - During fiscal 2024, the Company purchased $17.4 million of residential loans outside its primary market area, ensuring full due diligence on each loan[30]. - The Company purchased $53.4 million of commercial real estate loans outside its primary market area during fiscal year 2025, with full due diligence completed[41]. - The Company originates residential mortgage loans with a maximum loan-to-value ratio of 85.0%, and up to 90.0% for first-time homebuyer programs[30]. - The Company has seen an increase in adjustable-rate mortgage loans due to the higher interest rate environment, focusing on first-time homebuyer loans[32]. - The Company requires personal guarantees on all commercial real estate mortgages unless properties are fully stabilized with strong cash flow coverage[42]. - The Company’s consumer loans consist of direct loans on new and used automobiles, personal loans, home equity loans, and other installment loans, generally with terms of one to five years[45]. - The Company’s commercial loan portfolio includes loans collateralized by inventory, business assets, and real estate, with terms of up to 20 years[50]. - The Company’s underwriting procedures for consumer loans include an assessment of the applicant's credit history and ability to meet debt obligations[48]. Investment Strategy and Portfolio - The Company primarily invests in high-quality securities, focusing on U.S. government and government-sponsored enterprise securities[61]. - The Company’s investment strategy emphasizes diversified investing across short-, intermediate-, and long-term securities to manage interest rate risk[62]. - The Company has no private-label mortgage-backed securities in its portfolio, limiting credit risk exposure[69]. - The Company’s investments in state and political subdivision securities are generally exempt from federal income tax, enhancing their attractiveness despite lower yields[66]. - Management believes the credit risk on its state and political subdivision securities portfolio is low, supported by thorough analysis and monitoring[67]. - The Company does not hold any asset-backed securities in its portfolio as of June 30, 2025[73]. Capital and Regulatory Compliance - As of June 30, 2025, the Company had $1.2 billion in deposits at the Commercial Bank[78]. - The Bank of Greene County and Greene County Commercial Bank are required to maintain a Common Equity Tier 1 capital ratio of at least 4.5%, a Tier 1 capital ratio of at least 6.0%, and a total capital ratio of at least 8.0%[98]. - As of June 30, 2025, the Bank of Greene County was considered "well capitalized," exceeding the total risk-based capital ratio of 10.0%, Tier 1 risk-based ratio of 8.0%, common equity Tier 1 ratio of 6.5%, and leverage ratio of 5.0%[107]. - The Bank must maintain at least 65.0% of its portfolio assets in qualified thrift investments to satisfy the qualified thrift lender requirement[110]. - The Bank utilized the IRS Domestic Building and Loan Association test and satisfied the requirements for the years ended June 30, 2025, and 2024[113]. - The Bank has elected not to opt into the community bank leverage ratio framework and will continue to follow Basel capital requirements[104]. - The Company is subject to minimum capital requirements imposed by the FDIC, which may be higher based on specific circumstances[151]. - The Company has issued subordinated notes to raise regulatory capital, with outstanding notes due in September 2030 and 2031[80]. Interest Rate Risk Management - The Company follows strategies to manage interest rate risk by investing in liquid securities and originating adjustable-rate loans[320]. - The Company’s net interest income sensitivity (NII) is relatively low, indicating limited exposure to rising interest rates[321]. - The Economic Value of Equity (EVE) analysis indicates the present value of future cash flows, with specific calculations based on market conditions as of June 30, 2025[324]. - The company's EVE (Economic Value of Equity) sensitivity has increased due to the current higher interest rate environment, with a projected EVE of $343,831 thousand at par[326]. - A 300 basis point increase in interest rates would result in a decrease of EVE by $84,536 thousand, representing a 24.59% decline[326]. - The company's cumulative one-year, two-year, and three-year gap positions are positive at 17.10%, 15.58%, and 13.88%, respectively, indicating a favorable interest rate sensitivity[330]. - As interest rates rise, the company anticipates that the market value of loans and investments will continue to decline, but EVE sensitivity is expected to improve as funds are reinvested at higher rates[328]. - The company is committed to monitoring EVE sensitivity and will take corrective actions as necessary to manage interest rate risks[328]. - The methodology used for measuring interest rate risk has inherent shortcomings, as it relies on assumptions that may not accurately reflect actual market responses[329]. - The interest rate sensitivity gap is defined as the difference between interest-earning assets and interest-bearing liabilities maturing or repricing within specific time periods[330]. - A negative gap position during rising interest rates could hinder the company's ability to invest in higher-yielding assets[330]. - The company acknowledges that certain assets and liabilities may react differently to changes in market interest rates, complicating the analysis[332]. - The ability of borrowers to service adjustable-rate loans may decrease if interest rates rise, impacting the company's loan portfolio[332]. Regulatory Environment and Compliance - The Bank is subject to extensive regulation by the OCC and must file reports and undergo periodic examinations[96]. - The Bank is required to hold shares of capital stock in the Federal Home Loan Bank equal to at least 1.0% of the aggregate principal amount of its unpaid residential mortgage loans[134]. - The Federal Reserve Board has reduced reserve requirement ratios to zero, with no current plans to re-impose them[135]. - The Bank must conduct enhanced scrutiny of account relationships to guard against money laundering and report suspicious transactions[122]. - The Bank's authority to extend credit to insiders is governed by specific regulations that require terms to be comparable to those for unaffiliated persons[124]. - The Bank received a "satisfactory" rating under the Community Reinvestment Act in its most recent examination[118]. - Federal regulations require the Bank to maintain a sufficient amount of liquid assets to ensure safe and sound operation[116]. - Institutions with less than $10 billion in assets pay lower assessments under the FDIC's risk-based assessment system, which estimates the probability of failure within three years[129]. - The OCC has the authority to impose civil penalties up to $25,000 per day for violations, which can increase to $1 million per day for reckless disregard[125]. - The Bank must maintain compliance with federal safety and soundness standards, which include internal controls, information systems, and credit underwriting[126].