Greene nty Bancorp(US:GCBC)2024-02-08 16:00Financial Position - Total assets increased by $38.4 million, or 1.4%, to $2.74 billion at December 31, 2023, compared to $2.70 billion at June 30, 2023[157] - Total deposits decreased by $102.3 million, or 4.2%, to $2.33 billion at December 31, 2023, compared to $2.44 billion at June 30, 2023[179] - Shareholders' equity increased to $195.3 million at December 31, 2023, from $183.3 million at June 30, 2023, primarily due to net income of $12.2 million[189] - Cash and cash equivalents were $176.1 million, representing 6.4% of total assets as of December 31, 2023[223] - The Company has maintained strong capital and liquidity positions as of December 31, 2023[158] Loan and Credit Quality - Net loans receivable rose by $49.2 million, or 3.6%, to $1.44 billion at December 31, 2023, from $1.39 billion at June 30, 2023[157] - The allowance for credit losses (ACL) on loans was $20.3 million at December 31, 2023, down from $21.2 million at June 30, 2023, representing a decrease in the ACL to total loans receivable ratio from 1.51% to 1.39%[173] - Nonperforming assets amounted to $6.0 million at December 31, 2023, compared to $5.8 million at June 30, 2023, with total nonaccrual loans at $5.6 million[178] - The allowance for credit losses on loans to total loans receivable was 1.39% at December 31, 2023, compared to 1.51% at June 30, 2023[216] - Provision for credit losses amounted to $170,000 for the three months ended December 31, 2023, compared to $244,000 for the same period in 2022[216] Securities and Investments - Securities purchases totaled $121.3 million during the six months ended December 31, 2023, primarily consisting of $119.7 million in state and political subdivision securities[159] - At December 31, 2023, 62.2% of the securities portfolio consisted of state and political subdivision securities, while mortgage-backed securities represented 27.7%[159] - Securities available-for-sale increased to $307.8 million, or 30.5% of the total securities portfolio, from $281.1 million, or 27.9%, at the previous reporting date[163] - The total securities held-to-maturity decreased to $700.9 million, or 69.5% of the total securities portfolio, from $726.4 million, or 72.1%[163] - The company reported a total of $485,000 in allowance for credit losses on held-to-maturity securities as of December 31, 2023[164] Income and Expenses - The Company’s noninterest income primarily consists of fees and service charges, while noninterest expenses are mainly related to compensation and employee benefits[157] - Net interest income for the three months ended December 31, 2023, was $25.8 million, a decrease of $5.9 million, or 18.5%, compared to $31.8 million for the same period in 2022[201] - Noninterest income increased by $583,000, or 20.1%, to $3.5 million for the three months ended December 31, 2023, compared to $2.9 million for the same period in 2022[219] - Total noninterest expense decreased by $625,000, or 6.3%, to $9.3 million for the three months ended December 31, 2023, compared to $10.0 million for the same period in 2022[221] - The net interest margin (fully taxable-equivalent) decreased to 2.19% for the three months ended December 31, 2023, from 2.77% in 2022[197] Capital and Regulatory Compliance - The Company met all applicable regulatory capital requirements as of December 31, 2023[229] - The Bank of Greene County reported total risk-based capital of $267,630,000 with a ratio of 16.9% as of December 31, 2023, an increase from 16.5% at June 30, 2023[230] - Tier 1 risk-based capital for the Bank of Greene County was $247,765,000, representing a ratio of 15.6% as of December 31, 2023, compared to 15.2% as of June 30, 2023[230] - Greene County Commercial Bank's total risk-based capital was $106,922,000 with a ratio of 47.2% as of December 31, 2023, up from 46.6% at June 30, 2023[231] - The Tier 1 leverage ratio for Greene County Commercial Bank was 8.9% as of December 31, 2023, compared to 9.1% as of June 30, 2023[231] Economic and Market Conditions - Future changes in economic conditions, interest rates, and regulatory policies may materially impact the Company’s financial performance[149] - The Company’s operational results are significantly influenced by interest rate risk, which affects net interest income and loan originations[144] - The effective tax rate was 10.4% for the three months ended December 31, 2023, down from 16.5% for the same period in 2022[222] - The Company anticipates sufficient funds to meet current commitments based on cash and cash equivalents, available-for-sale investment portfolio, and borrowing capacity[228] - The Company has not requested funding through the Bank Term Funding Program (BTFP) as of December 31, 2023, but has an established relationship with the Federal Reserve to take advantage of this program[224]