Core Viewpoint - The article highlights Greene County Bancorp (GCBC) as a promising small-cap bank that operates under the radar, suggesting it may present investment opportunities due to its less widespread attention from average investors [1]. Company Overview - Greene County Bancorp was established in 1998 as part of a first-step initiative in the financial sector [1]. Investment Philosophy - The author emphasizes a belief in the efficiency of financial markets, asserting that most stocks reflect their true current value. However, the best profit opportunities arise from stocks that are less followed or do not accurately represent existing market opportunities [1].

In my continued search for high-quality, small-cap banks that are operating out of the spotlight, I have landed on Greene County Bancorp ( GCBC ). The company was created in 1998 as part of a first-stepI have been involved in the financial world for over 25 years with experience as an advisor, teacher, and writer. I am a full believer in the free-market system and that financial markets are efficient with most stocks reflecting their real current value. The best opportunities for profits on individual stock ...

Financial Position - 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[134]. - Total cash and cash equivalents decreased by $59.0 million, or 32.2%, to $124.1 million at December 31, 2025[135]. - Total deposits were $2.6 billion as of December 31, 2025, with NOW deposits increasing by $48.1 million, or 2.5%, compared to June 30, 2025[161]. - Shareholders' equity increased to $258.3 million at December 31, 2025, compared to $238.8 million at June 30, 2025, driven by net income of $19.2 million[176]. - As of December 31, 2025, shareholders' equity to total assets increased to 8.21% from 7.85% at June 30, 2025[180]. - Book value per share rose to $15.17 as of December 31, 2025, compared to $14.03 at June 30, 2025[180]. Loan and Credit Quality - Net loans receivable increased by $58.6 million, or 3.6%, to $1.7 billion at December 31, 2025[134]. - Total gross loans reached $1.7 billion at December 31, 2025, with commercial real estate loans comprising 65.1% of the portfolio[142]. - Non-owner occupied multi-family loans accounted for $288.3 million, or 26.3% of total commercial real estate loans, as of December 31, 2025[146]. - The allowance for credit losses on loans increased by $1.2 million, or 5.9%, to $21.3 million at December 31, 2025, from $20.1 million at June 30, 2025[140]. - The allowance for credit losses on loans to non-performing loans was 654.22% as of December 31, 2025, indicating a strong coverage ratio[158]. - Net charge-offs on loans for the three months ended December 31, 2025, amounted to $140,000, an increase from $95,000 in the same period of 2024[154]. Securities and Investments - Securities available-for-sale and held-to-maturity rose by $89.7 million, or 7.9%, to $1.2 billion at December 31, 2025[136]. - At December 31, 2025, 57.8% of the securities portfolio consisted of state and political subdivision securities[136]. - Mortgage-backed securities represented 32.4% of the securities portfolio at December 31, 2025, with no exposure to sub-prime loans[136]. - As of December 31, 2025, total securities available-for-sale increased to $411.6 million, representing 33.7% of the portfolio, up from $356.1 million or 31.4% at June 30, 2025[138]. - The total securities held-to-maturity increased to $810.3 million, representing 66.3% of the portfolio, up from $776.1 million or 68.6% at June 30, 2025[138]. Revenue and Income - The Company’s primary source of revenue is net interest income, which is affected by changes in interest rates and market conditions[119]. - For the three months ended December 31, 2025, net interest income was $19,059,000, up from $14,068,000 in the same period of 2024[189]. - Net income increased to $10.3 million for the three months ended December 31, 2025, compared to $7.5 million for the same period in 2024, representing a 37.3% increase[193]. - Interest income increased by $4.1 million, or 13.9%, to $33.5 million for the three months ended December 31, 2025, compared to $29.4 million for the same period in 2024[196]. - Net interest income increased by $5.0 million to $19.1 million for the three months ended December 31, 2025, from $14.1 million for the same period in 2024[200]. Expenses and Efficiency - Total noninterest expense increased by $1.1 million, or 11.4%, to $10.5 million for the three months ended December 31, 2025, compared to $9.4 million for the same period in 2024[208]. - Salaries and employee benefits increased by $570,000, or 10.1%, for the three months ended December 31, 2025, compared to the same period in 2024[208]. - Legal and professional fees rose by $234,000, or 95.5%, for the three months ended December 31, 2025, compared to the same period in 2024[208]. Capital and Regulatory Compliance - The Company met all applicable regulatory capital requirements at December 31, 2025[218]. - As of December 31, 2025, The Bank of Greene County reported total risk-based capital of $315,317 thousand, with a ratio of 16.9%, exceeding the required 8.89%[219]. - The Tier 1 risk-based capital for The Bank of Greene County was $291,974 thousand, representing a ratio of 15.6%, above the required 9.64%[219]. - Greene County Commercial Bank's total risk-based capital as of December 31, 2025, was $127,715 thousand, with a significant ratio of 50.2%, well above the required 2.50%[219]. - The Tier 1 leverage ratio for Greene County Commercial Bank was reported at 8.9% as of December 31, 2025, exceeding the required 2.50%[219].

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]

Core Insights - Greene County Bancorp, Inc. reported record net income of $10.3 million for the second quarter of fiscal year 2026, marking a 39.3% increase compared to the same period in the previous year [1][7] - The company achieved total consolidated assets of $3.1 billion, with net loans reaching $1.7 billion, both representing record highs [4][7] - 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 [3] Financial Performance - Net income for the six months ended December 31, 2025, was $19.2 million, or $1.13 per share, compared to $13.8 million, or $0.81 per share, for the same period in 2024 [1][7] - Pre-provision net income increased to $20.6 million for the six months ended December 31, 2025, up from $14.9 million in the prior year, reflecting a 38.7% increase [5] - Net interest income rose to $19.1 million for the three months ended December 31, 2025, an increase of $5.0 million from the previous year [6][8] Asset and Loan Growth - Total consolidated assets increased by $106.4 million, or 3.5%, from $3.0 billion at June 30, 2025, to $3.1 billion at December 31, 2025 [14] - Net loans receivable grew by $58.6 million, or 3.6%, to $1.7 billion as of December 31, 2025, driven by increases in commercial real estate and commercial loans [14] - The allowance for credit losses on loans increased to $21.3 million, reflecting a 5.9% rise due to higher loan volumes [14] Deposit and Borrowing Trends - Total deposits remained stable at $2.6 billion as of December 31, 2025, with notable increases in NOW deposits [14] - Borrowings increased significantly from $128.1 million at June 30, 2025, to $214.1 million at December 31, 2025, primarily due to overnight borrowings with the Federal Home Loan Bank [14] Credit Quality - The provision for credit losses was $199,000 for the three months ended December 31, 2025, down from $478,000 in the prior year [11] - Nonperforming loans amounted to $3.3 million at December 31, 2025, representing 0.20% of net loans, a slight increase from 0.19% at June 30, 2025 [12] Noninterest Income and Expenses - Noninterest income decreased by $719,000, or 18.6%, to $3.2 million for the three months ended December 31, 2025, primarily due to losses on securities sales [11] - Noninterest expense increased by $1.1 million, or 11.4%, to $10.5 million for the three months ended December 31, 2025, driven by higher salaries and employee benefits [11]

Core Insights - Greene County Bancorp, Inc. reported record net income of $10.3 million for the second quarter of fiscal year 2026, a 39.3% increase compared to the same period in the previous year, with earnings per share rising to $0.60 from $0.44 [1][7] - The company achieved total consolidated assets of $3.1 billion, marking a 3.5% increase from $3.0 billion at the end of June 2025 [4][17] - 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 [3] Financial Performance - Net interest income increased by $5.0 million to $19.1 million for the three months ended December 31, 2025, and by $9.4 million to $36.6 million for the six months ended December 31, 2025 [6][8] - Pre-provision net income for the six months ended December 31, 2025, was $20.6 million, up from $14.9 million in the same period of 2024, reflecting a 38.7% increase [5] - The return on average assets was 1.27% and the return on average equity was 15.45% for the six months ended December 31, 2025 [7][24] Asset and Loan Growth - Total cash and cash equivalents decreased to $124.1 million at December 31, 2025, from $183.1 million at June 30, 2025 [17] - Net loans receivable increased by $58.6 million, or 3.6%, to $1.7 billion at December 31, 2025, driven by growth in commercial real estate loans and commercial loans [17][29] - The allowance for credit losses on loans increased to $21.3 million at December 31, 2025, reflecting a 5.9% rise from $20.1 million at June 30, 2025 [17] Deposit and Borrowing Trends - Total deposits remained stable at $2.6 billion as of December 31, 2025, with notable increases in NOW deposits [17] - Borrowings increased significantly to $214.1 million at December 31, 2025, up from $128.1 million at June 30, 2025, primarily due to overnight borrowings with the Federal Home Loan Bank [17] Noninterest Income and Expenses - Noninterest income decreased by $719,000, or 18.6%, to $3.2 million for the three months ended December 31, 2025, primarily due to losses on sales of securities [11] - Noninterest expense increased by $1.1 million, or 11.4%, to $10.5 million for the three months ended December 31, 2025, driven by higher salaries and employee benefits [11]

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 |