Greene nty Bancorp(GCBC) - 2025 Q2 - Quarterly Report

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]