Greene nty Bancorp(US:GCBC)2024-05-10 13:04Financial Position - Total assets increased by $173.2 million, or 6.4%, to $2.9 billion as of March 31, 2024, compared to $2.7 billion at June 30, 2023[155] - Total cash and cash equivalents increased to $255.8 million at March 31, 2024, up from $196.4 million at June 30, 2023[156] - Total deposits increased to $2.6 billion as of March 31, 2024, up $119.9 million or 4.9% from $2.4 billion on June 30, 2023[182] - Shareholders' equity increased to $199.2 million at March 31, 2024, from $183.3 million at June 30, 2023, primarily due to net income of $18.0 million[198] - Average assets increased by $86.2 million, or 3.3%, to $2.68 billion for the three months ended March 31, 2024, compared to $2.59 billion for the same period in 2023[213] Loan and Credit Quality - Net loans receivable rose by $69.6 million, or 5.0%, to $1.5 billion at March 31, 2024, from $1.4 billion at June 30, 2023[155] - The allowance for credit losses (ACL) on loans was $20.4 million at March 31, 2024, down from $21.2 million at June 30, 2023, with the ACL to total loans receivable ratio at 1.38%[175] - The allowance for credit losses on loans decreased to $(20,392) for the three months ended March 31, 2024, from $(21,572) in 2023, indicating an improvement in credit quality[206] - Loans classified as substandard and special mention totaled $51.6 million at March 31, 2024, an increase of $9.7 million from $41.9 million at June 30, 2023[224] - The company maintains a conservative underwriting policy and does not engage in sub-prime lending or exotic loan products[164] Securities and Investments - Securities purchases totaled $194.5 million during the nine months ended March 31, 2024, primarily consisting of $158.4 million in state and political subdivision securities[157] - At March 31, 2024, 60.6% of the securities portfolio consisted of state and political subdivision securities, aimed at tax savings and community participation[157] - Total securities available-for-sale increased to $345.5 million, representing 33.0% of the portfolio, up from $281.1 million or 27.9% at June 30, 2023[162] - The total securities held-to-maturity decreased to $700.4 million, representing 67.0% of the portfolio, down from $726.4 million or 72.1% at June 30, 2023[162] Income and Expenses - Net interest income for the three months ended March 31, 2024, decreased to $12,295, down from $15,226 in the same period of 2023, representing a decline of 19.3%[206] - Net interest income (GAAP) for the nine months ended March 31, 2024, was $38,122, down from $46,983 in 2023, a decrease of 18.7%[209] - Noninterest income increased by $353,000, or 11.5%, to $3.4 million for the three months ended March 31, 2024, compared to $3.1 million for the same period in 2023[226] - Noninterest expense decreased by $622,000, or 6.3%, to $9.2 million for the three months ended March 31, 2024, compared to $9.9 million for the same period in 2023[227] - The decrease in noninterest expense was primarily due to a reduction in legal and professional fees and a benefit from reducing the reserve for unfunded loan commitments[227] Risk and Capital Management - The Company faces various risks including market, credit, liquidity, and operational risks, which could materially affect its financial condition and results of operations[138] - The Company maintains strong capital and liquidity positions as of March 31, 2024, reflecting effective management of cash flow requirements[156] - As of March 31, 2024, total risk-based capital for The Bank of Greene County was $274.0 million, with a ratio of 17.3% compared to the required 8.0%[235] - The Tier 1 risk-based capital ratio for The Bank of Greene County was 16.1% as of March 31, 2024, exceeding the required 6.0%[235] - The Company anticipates sufficient funds to meet current commitments based on cash and cash equivalents, available-for-sale investment portfolio, and borrowing capacity[233] Interest Rates and Margins - The Company’s net interest income is primarily affected by changes in interest rates, which also influence loan originations and repayment behaviors[140] - The net interest margin (fully taxable-equivalent) for the three months ended March 31, 2024, was 2.20%, down from 2.66% in 2023, indicating a decrease of 46 basis points[206] - The net interest margin (fully taxable-equivalent) for the nine months ended March 31, 2024, was 2.25%, compared to 2.73% in 2023, reflecting a decline of 48 basis points[209] - The net interest rate spread for the three months ended March 31, 2024, was 1.66%, down from 2.31% in 2023, indicating a contraction of 65 basis points[206] Dividends and Shareholder Returns - The dividend payout ratio increased to 22.64% for the nine months ended March 31, 2024, compared to 14.69% for the same period in 2023[201] - The Company did not repurchase any shares under its stock repurchase program for the three and nine months ended March 31, 2024[200]