UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 25, 2011

GREENE COUNTY BANCORP, INC.
(Exact Name of Registrant as Specified in its Charter)

                                                                       Federal                        0-25165                      14-1809721                       
                                                                   (State or Other Jurisdiction                              (Commission File No.)                            (I.R.S. Employer
                                                                      of Incorporation)                                                                                                         Identification No.)


                                                                                              302 Main Street, Catskill NY                                          12414            
                                                                                     (Address of Principal Executive Offices)                                                                  (Zip Code)


                                                                                               Registrant’s telephone number, including area code:     (518) 943-2600

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17
      CFR 240.14d-2(b))

[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
 

 



Item 2.02            Results of Operations and Financial Condition.

On January 25, 2011, Greene County Bancorp, Inc. issued a press release disclosing financial results at and for the three months and six months ended December 31, 2010 and 2009.  A copy of the press release is included as exhibit 99.1 to this report.

The information in the preceding paragraph, as well as Exhibit 99.1 referenced therein, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.

Item 9.01            Financial Statements and Exhibits.

(a)  
Not Applicable.

(b)  
Not Applicable.

(c)  
Not Applicable.

(d)  
Exhibits.

              Exhibit No.
Description
 
               99.1                                          Press release dated January 25, 2011


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

GREENE COUNTY BANCORP, INC.


DATE:  January 27, 2011                                                      By: /s/ Donald E. Gibson         
              Donald E. Gibson
              President and Chief Executive Officer


 
 

 


FOR IMMEDIATE RELEASE
Date: January 25, 2011
For Further Information Contact:
Donald E. Gibson
President & CEO
(518) 943-2600
donaldg@tbogc.com

Michelle M. Plummer
EVP, COO & CFO
(518) 943-2600
michellep@tbogc.com

Greene County Bancorp, Inc.
Reports Record Quarterly Earnings

Catskill, N.Y. -- (BUSINESS WIRE) – January 25, 2011-- 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 six months and quarter ended December 31, 2010.  Net income for the six months ended December 31, 2010 amounted to $2.7 million or $0.65 per basic share and $0.64 per diluted share as compared to $2.4 million or $0.58 per basic and diluted share for the six months ended December 31, 2009, an increase of $276,000, or 11.5%. Net income for the quarter ended December 31, 2010 amounted to $1.4 million or $0.33 per basic share and $0.32 per diluted share as compared to $1.2 million or $0.29 per basic and diluted share for the quarter ended December 31, 2009, an increase of $136,000, or 11.2%.

Donald E. Gibson, President & CEO, stated, “In light of the difficult general economic conditions, we are obviously pleased to report record earnings for the quarter and fiscal year to date. In addition, we are pleased to report our Germantown branch, which we opened in October, is off to a solid start and exceeding projections.”

The most significant factor contributing to the higher earnings was higher net interest income, which increased to $9.7 million for the six months ended December 31, 2010 as compared to $8.6 million for the six months ended December 31, 2009, an increase of $1.1 million or 12.8%.  Net interest income increased to $4.9 million for the quarter ended December 31, 2010 as compared to $4.3 million for the quarter ended December 31, 2009, an increase of $547,000 or 12.6%.  Net interest rate spread increased 11 basis points to 3.75% for the six months ended December 31, 2010 as compared to 3.64% for the six months ended December 31, 2009.  Net interest rate spread remained constant at 3.65% for the quarters ended December 31, 2010 and 2009.  Net interest margin increased 8 basis points to 3.92% for the six months ended December 31, 2010 as compared to 3.84% for the six months ended December 31, 2009.  Net interest margin decreased 5 basis points to 3.80% for the quarter ended December 31, 2010 as compared to 3.85% for the quarter ended December 31, 2009.  The increase in average balances of loans and securities, along with a decrease in rate paid on deposit accounts, primarily led to an increase in net interest income when comparing the six months and quarters ended December 31, 2010 and 2009.

Management continues to closely monitor asset quality and adjust the level of the allowance for loan losses when necessary.   The provision for loan losses amounted to $836,000 and $677,000 for the six months ended December 31, 2010 and 2009, respectively, an increase of $159,000 or 23.5%.  The provision for loan losses amounted to $483,000 and $429,000 for the quarters ended December 31, 2010 and 2009, respectively, an increase of $54,000, or 12.6%.  The increase in the level of provision was partially a result of the shift to a greater level of commercial loans and an increase in the amount of nonperforming assets.  The commercial real estate and commercial loan portfolio has grown as a percent of total loans from 24.1% at December 31, 2009 to 25.6% at December 31, 2010.   Generally, commercial loans are considered to have greater credit risk, and require a higher level of allowance for loan losses.   Nonperforming assets amounted to $6.2 million and $3.6 million at December 31, 2010 and 2009, respectively, an increase of $2.6 million or 72.2%.  This increase was primarily made up of $1.3 million in residential mortgage loans, $605,000 in commercial real estate loans, and $457,000 in multi-family mortgage loans.  Net charge-offs amounted to $211,000 and $419,000 for the six months ended December 31, 2010 and 2009, respectively.  The increase in the level of nonperforming assets reflected the decline in the overall economy. As a result, the level of allowance for loan losses to total loans receivable has been increased to 1.55% as of December 31, 2010 as compared to 1.28% as of December 31, 2009.  At December 31, 2010, nonperforming assets were 1.16% of total assets and nonperforming loans were 2.01% of total loans.   The Company has not been an originator of “no documentation” mortgage loans and the loan portfolio does not include any mortgage loans that the Company classifies as sub-prime.

Noninterest income increased $23,000 and $124,000 when comparing the six months and quarters ended December 31, 2010 and 2009, respectively.  Noninterest income amounted to $2.5 million and $1.4 million for the six months and quarter ended December 31, 2010, respectively. The Company recorded a net gain on sale of investments during the quarter ended December 31, 2010 totaling $212,000 and a net loss on sale of investments during the quarter ended December 31, 2009 totaling $5,000.   Excluding these items, noninterest income decreased $194,000 when comparing the six months ended December 31, 2010 and 2009, and $93,000 when comparing the quarters ended December 31, 2010 and 2009. These decreases were primarily the result of lower service charges on deposit accounts, primarily NSF fees, which decreased $333,000 and $152,000 for the six months and quarters ended December 31, 2010 and 2009, respectively.  Debit card fees increased $92,000 and $43,000 when comparing the six months and quarters ended December 31, 2010 and 2009 as a result of a higher volume of transactions due to growth in the number of checking accounts with debit cards.

Noninterest expense increased $560,000 or 8.4% to $7.2 million for the six months ended December 31, 2010 as compared to $6.7 million for the six months ended December 31, 2009.  Noninterest expense increased $414,000 or 12.5% to $3.7 million for the quarter ended December 31, 2010 as compared to $3.3 million for the quarter ended December 31, 2009. The increases for both the six months and the quarter ended December 31, 2010 were primarily the result of an increase in salaries and benefits as well as higher advertising and promotional expenses due to the opening of the new Germantown branch in October 2010.

Total assets grew $36.1 million or 7.3% to $531.4 million at December 31, 2010 as compared to $495.3 million at June 30, 2010.  Securities classified as both available for sale and held to maturity increased $14.8 million to $182.1 million at December 31, 2010 as compared to $167.3 million at June 30, 2010.  Net loans increased $583,000 or 0.2% to $296.2 million at December 31, 2010 as compared to $295.6 million at June 30, 2010.  Funding the growth in assets in the six months ended December 31, 2010 were increased deposits of $44.2 million to $465.9 million.  The growth in deposits also was utilized to reduce short-term borrowings, which decreased $9.1 million when comparing December 31, 2010 and June 30, 2010.  Total shareholders’ equity amounted to $45.9 million at December 31, 2010, or 8.6% of total assets.

Headquartered in Catskill, New York, the Company provides full-service community-based banking in its twelve branch offices located in Greene, Columbia and Albany Counties.  Customers are offered 24-hour services through ATM network systems, an automated telephone banking system and Internet Banking through its web site at http://www.tbogc.com.

This press release contains statements about future events that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Actual results could differ materially from those projected in the forward-looking statements.  Factors that might cause such a difference include, but are not limited to, general economic conditions, changes in interest rates, regulatory considerations, competition, technological developments, retention and recruitment of qualified personnel, and market acceptance of the Company’s pricing, products and services.

 
 

 


   
                At or for the Six
   
        At or for the Three
 
   
            Months Ended December 31,
   
        Months Ended December 31,
 
   
2010
   
2009
   
2010
   
2009
 
Dollars In thousands,
except share and per share data
                       
Interest income
  $ 12,042     $ 11,386     $ 6,066     $ 5,730  
Interest expense
    2,350       2,799       1,171       1,382  
Net interest income
    9,692       8,587       4,895       4,348  
Provision for loan losses
    836       677       483       429  
Noninterest income
    2,461       2,438       1,361       1,237  
Noninterest expense
    7,245       6,685       3,717       3,303  
Income before taxes
    4,072       3,663       2,056       1,853  
Tax provision
    1,396       1,263       704       637  
Net Income
  $ 2,676     $ 2,400     $ 1,352     $ 1,216  
                                 
Basic EPS
  $ 0.65     $ 0.58     $ 0.33     $ 0.29  
Weighted average
shares outstanding
    4,125,619       4,106,704       4,129,939       4,108,097  
                                 
Diluted EPS
  $ 0.64     $ 0.58     $ 0.32     $ 0.29  
Weighted average
diluted shares outstanding
    4,157,903       4,133,758       4,163,333       4,134,732  
                                 
Dividends declared per share 2
  $ 0.550     $ 0.340     $ 0.375     $ 0.170  
                                 
Selected Financial Ratios
                               
Return on average assets
    1.04 %     1.02 %     1.01 %     1.03 %
Return on average equity
    11.76 %     11.59 %     11.79 %     11.56 %
Net interest rate spread
    3.75 %     3.64 %     3.65 %     3.65 %
Net interest margin
    3.92 %     3.84 %     3.80 %     3.85 %
Efficiency ratio1
    59.61 %     60.64 %     59.41 %     59.14 %
Non-performing assets
to total assets
    1.16 %     0.76 %                
Non-performing loans
to total loans
    2.01 %     1.27 %                
Allowance for loan losses to
non-performing loans
    77.99 %     102.57 %                
Allowance for loan losses to
total loans
    1.55 %     1.28 %                
Shareholders’ equity to total assets
    8.64 %     9.01 %                
Dividend payout ratio2
    84.62 %     58.62 %                
Book value per share
  $ 11.10     $ 10.36                  
                                 

 
1 Noninterest expense divided by the sum of net interest income and noninterest income.

2 Greene County Bancorp, MHC, the owner of 56.0% of the shares issued by the Company, waived its right to receive the dividends. No adjustment has been made to account for this waiver.   Dividends per share for the year and quarter ended December 31, 2010 include a special dividend of $0.20 per share paid on December 15, 2010.

 
 

 


   
As of December 31, 2010
   
As of June 30, 2010
 
Dollars In thousands, except share data
           
Assets
           
Total cash and cash equivalents
  $ 31,036     $ 9,643  
Long term certificate of deposit
    ---       1,000  
Securities- available for sale, at fair value
    98,315       89,805  
Securities- held to maturity, at amortized cost
    83,830       77,520  
Federal Home Loan Bank stock, at cost
    1,457       1,866  
                 
Gross loans receivable
    300,361       299,200  
Less:  Allowance for loan losses
    (4,649 )     (4,024 )
          Unearned origination fees and costs, net
    453       406  
Net loans receivable
    296,165       295,582  
                 
Premises and equipment
    15,347       14,804  
Accrued interest receivable
    2,633       2,731  
Prepaid expenses and other assets
    2,373       2,372  
Foreclosed assets
    200       ---  
         Total Assets
  $ 531,356     $ 495,323  
                 
Liabilities and shareholders’ equity
               
Noninterest bearing deposits
  $ 46,198     $ 44,239  
Interest bearing deposits
    419,656       377,493  
  Total deposits
    465,854       421,732  
                 
Borrowings from FHLB, short term
    ---       9,100  
Borrowings from FHLB, long term
    17,000       17,000  
Accrued expenses and other liabilities
    2,590       2,988  
         Total liabilities
    485,444       450,820  
Total shareholders’ equity
    45,912       44,503  
         Total liabilities and shareholders’ equity
  $ 531,356     $ 495,323  
Common shares outstanding
    4,135,495       4,118,912  
Treasury shares
    170,175       186,758