• |
Net Income: $21.2 million for the nine months ended March 31, 2022
|
• |
Total Assets: $2.5 billion at March 31, 2022
|
• |
Return on Average Assets: 1.21% for the nine months ended March 31, 2022
|
• |
Return on Average Equity: 18.09% for the nine months ended March 31, 2022
|
• |
Net interest income increased $517,000 to $14.1 million for the three months ended March 31, 2022 from $13.6 million for the three months ended March 31, 2021. Net interest income increased $3.9 million to $42.9 million for the nine months ended March 31, 2022 from $39.0 million for the nine months ended March 31, 2021. The increase in net interest income was primarily the result of the growth in the average balance of interest-earning assets, which increased $369.6 million and $420.4 million when comparing the three and nine months ended March 31, 2022 and 2021, offset by a decrease in the average interest rate on interest-earning assets, which decreased 39 and 36 basis points when comparing the three and nine months ended March 31, 2022 and 2021, respectively.
|
• |
Net interest rate spread and margin both decreased when comparing the three and nine months ended March 31, 2022 and 2021. Net interest rate spread decreased 34 basis points to 2.38% for the three months ended March 31, 2022 compared to 2.72% for the three months ended March 31, 2021. Net interest rate spread decreased 27 basis points to 2.51% for the nine months ended March 31, 2022 compared to 2.78% for the nine months ended March 31, 2021. Net interest margin decreased 35 basis points and 30 basis points to 2.41% and 2.54%, respectively, for the three and nine months ended March 31, 2022 compared to 2.76% and 2.84%, respectively, for the three and nine months ended March 31, 2021. Decreases in net interest rate spread and net interest margin resulted primarily from lower-yielding securities and loans offset by lower rates on deposits as well as growth in loan and securities balances.
|
• |
Net interest income on a taxable-equivalent basis includes the additional amount of interest income that would have been earned if the Company's investment in tax-exempt securities and loans had been subject to federal and New York State income taxes yielding the same after-tax income. Tax equivalent net interest margin was 2.56% and 2.91% for the three months ended March 31, 2022 and 2021, respectively, and was 2.69% and 3.00% for the nine months ended March 31, 2022 and 2021, respectively.
|
• |
Provision for loan losses amounted to $163,000 and $1.4 million the three months ended March 31, 2022 and 2021, and to $2.4 million and $3.9 million for the nine months ended March 31, 2022 and 2021, respectively. The provision for loan losses for the three months ended March 31, 2021 and for the nine months ended March 31, 2022 and 2021 was due to the impact of the COVID-19 pandemic as well as growth in gross loans and an increase in loans adversely classified. The Company instituted a loan deferral program in response to the COVID-19 pandemic whereby deferral of principal and/or interest payments have been provided and correspond to the length of the National Emergency as defined under the CARES Act and extended under the Consolidated Appropriations Act which was signed into law on December 27, 2020. At March 31, 2022, the Company had zero loans on payment deferral compared to eight loans aggregating $8.0 million as of June 30, 2021. Loans classified as substandard or special mention totaled $50.0 million at March 31, 2022, compared to $49.7 million at June 30, 2021, an increase of $300,000, and compared to $43.0 million at March 31, 2021, an increase of $7.0 million. Loans classified as substandard or special mention slightly increased as compared to June 30, 2021 but remained elevated compared to March 31, 2021, due to insufficient cash flows and revenues related to the COVID-19 pandemic. As a result, reserves on loans classified as substandard or special mention totaled $9.6 million at March 31, 2022 compared to $7.8 million at June 30, 2021, an increase of $1.8 million. No loans were classified as doubtful or loss at March 31, 2022 or June 30, 2021. Allowance for loan losses to total loans receivable was 1.88% at March 31, 2022 compared to 1.77% at June 30, 2021. Total loans receivable included $6.7 million and $67.4 million of SBA Paycheck Protection Program (PPP) loans at March 31, 2022 and June 30, 2021, respectively. Excluding these SBA guaranteed loans, the allowance for loan losses to total loans receivable would have been 1.89% at March 31, 2022 and June 30, 2021, respectively.
|
• |
Net charge-offs amounted to $108,000 and $36,000 for the three months ended March 31, 2022 and 2021, respectively, an increase of $72,000. Net charge-offs totaled $360,000 and $662,000 for the nine months ended March 31, 2022 and 2021, respectively. The primary net charge off activity was a commercial loan charge off that occurred during the quarter ended December 31, 2020.
|
• |
Nonperforming loans amounted to $3.9 million and $2.3 million at March 31, 2022 and June 30, 2021, respectively. The increase in nonperforming loans during the period was primarily due to $2.6 million of loans placed into nonperforming status due to delinquency, $920,000 in loan repayments, and $134,000 in charge-offs. At March 31, 2022 nonperforming assets were 0.16% of total assets compared to 0.11% at June 30, 2021. Nonperforming loans were 0.34% and 0.21% of net loans at March 31, 2022 and June 30, 2021, respectively.
|
• |
Noninterest income increased $544,000, or 23.0%, to $2.9 million for the three months ended March 31, 2022 compared to $2.4 million for the three months ended March 31, 2021. Noninterest income increased $2.2 million, or 32.8%, to $9.1 million for the nine months ended March 31, 2022 compared to $6.8 million for the nine months ended March 31, 2021. The increase was primarily due to an increase in debit card fees resulting from continued growth in the number of checking accounts with debit cards, the income from bank owned life insurance, and increases in service charges on deposit accounts.
|
• |
Noninterest expense decreased $53,000, or 0.6%, to $8.3 million for the three months ended March 31, 2022 compared to $8.4 million for the three months ended March 31, 2021. Noninterest expense increased $1.6 million, or 6.8%, to $24.6 million for the nine months ended March 31, 2022, compared to $23.0 million for the nine months ended March 31, 2021. The increase in noninterest expense during the nine months ended March 31, 2022 was primarily due to an increase in salaries and employee benefits expense resulting from creating new positions during the previous fiscal year. The new positions were required to support growth in the bank's lending department, customer service center and finance department. There was also an increase in computer software and professional fees during the current period.
|
• |
Provision for income taxes reflects the expected tax associated with the pre-tax income generated for the given year and certain regulatory requirements. The effective tax rate was 15.6% and 15.2% for the three and nine months ended March 31, 2022 and 14.2% and 13.4% for the three and nine months ended March 31, 2021, respectively. The statutory tax rate is impacted by the benefits derived from tax-exempt bond and loan income, the Company's real estate investment trust subsidiary income, income received on the bank owned life insurance, as well as the tax benefits derived from premiums paid to the Company's pooled captive insurance subsidiary to arrive at the effective tax rate. The increase in the current quarter was attributable to the increase in income before taxes for March 31, 2022 compared to March 31, 2021.
|
• |
Total assets of the Company were $2.5 billion at March 31, 2022 and $2.2 billion at June 30, 2021, an increase of $321.4 million, or 14.6%.
|
• |
Securities available-for-sale and held-to-maturity increased $253.4 million, or 28.5%, to $1.1 billion at March 31, 2022 as compared to $887.8 million at June 30, 2021. This increase was the result of utilizing excess cash on hand due to an increase in deposits. Securities purchases totaled $510.5 million during the nine months ended March 31, 2022 and consisted of $360.3 million of state and political subdivision securities, $106.1 million of mortgage-backed securities, $22.9 million of corporate securities, $18.2 million of US Treasury securities, and $3.0 million of collateralized mortgage obligations. Principal pay-downs and maturities during the nine months amounted to $237.9 million, primarily consisting of $32.4 million of mortgage-backed securities, $203.8 million of state and political subdivision securities, and $1.7 million of collateralized mortgage obligations.
|
• |
Net loans receivable increased $47.6 million, or 4.4%, to $1.1 billion at March 31, 2022 from $1.1 billion at June 30, 2021. The loan growth experienced during the nine months consisted primarily of $62.7 million in commercial real estate loans, $14.5 million in commercial construction loans, $17.0 million in residential real estate loans, $3.8 million in residential construction, $9.1 million in multi-family loans, and a $2.6 million net decrease in deferred fees due to the forgiveness of SBA PPP loans. This growth was partially offset by a $60.0 million decrease in commercial loans, driven by the decrease in SBA PPP loans, and a $2.1 million dollar increase in allowance for loan losses. SBA PPP loans decreased $60.7 million to $6.7 million at March 31, 2022 from $67.4 million at June 30, 2021, due to the receipt of forgiveness proceeds.
|
• |
Deposits totaled $2.3 billion at March 31, 2022 and $2.0 billion at June 30, 2021, an increase of $286.8 million, or 14.3%. Noninterest-bearing deposits increased $13.9 million, or 8.0%, NOW deposits increased $228.8 million, or 17.0%, savings deposits increased $31.9 million, or 10.6%, and money market deposits increased 12.8 million, or 8.7% when comparing March 31, 2022 and June 30, 2021. These increases were offset by a decrease in certificates of deposits of $693,000, or 2.0%, when comparing March 31, 2022 and June 30, 2021. Deposits continued to increase during the nine months ended March 31, 2022 as a result of an increase in new account relationships, including new corporate cash management deposit relationships, and an increase in municipal deposits at Greene County Commercial Bank, primarily from New York State funding and tax collection.
|
• |
Borrowings of the Company amounted to $49.3 million at March 31, 2022 compared to $22.6 million at June 30, 2021, an increase of $26.7 million. At March 31, 2022, borrowings consisted of $49.3 million of Fixed-to-Floating Rate Subordinated Notes. During the nine months ended March 31, 2022, the Company repaid $3.0 million of short-term borrowings with Atlantic Central Bankers Bank. The Company entered into Subordinated Note Purchase Agreements on September 15, 2021, issued at 3.00% Fixed-to-Floating Rate, due September 15, 2031, in the aggregate principal amount of $30.0 million. These notes are callable on September 15, 2026.
|
• |
Shareholders' equity increased to $156.9 million at March 31, 2022 from $149.6 million at June 30, 2021, resulting primarily from net income of $21.2 million, partially offset by dividends declared and paid of $1.5 million and an increase in other accumulated comprehensive loss of $12.3 million.
|
At or for the Three Months
Ended March 31,
|
At or for the Nine Months
Ended March 31,
| |||||||||||||||
Dollars in thousands, except share and per share data
|
2022
|
2021
|
2022
|
2021
| ||||||||||||
Interest income
|
$
|
15,305
|
$
|
14,788
|
$
|
46,729
|
$
|
43,075
| ||||||||
Interest expense
|
1,218
|
1,218
|
3,790
|
4,080
| ||||||||||||
Net interest income
|
14,087
|
13,570
|
42,939
|
38,995
| ||||||||||||
Provision for loan losses
|
163
|
1,434
|
2,431
|
3,939
| ||||||||||||
Noninterest income
|
2,905
|
2,361
|
9,072
|
6,833
| ||||||||||||
Noninterest expense
|
8,314
|
8,367
|
24,612
|
23,040
| ||||||||||||
Income before taxes
|
8,515
|
6,130
|
24,968
|
18,849
| ||||||||||||
Tax provision
|
1,327
|
872
|
3,789
|
2,521
| ||||||||||||
Net income
|
$
|
7,188
|
$
|
5,258
|
$
|
21,179
|
$
|
16,328
| ||||||||
Basic and diluted EPS
|
$
|
0.84
|
$
|
0.62
|
$
|
2.49
|
$
|
1.92
| ||||||||
Weighted average shares outstanding
|
8,513,414
|
8,513,414
|
8,513,414
|
8,513,414
| ||||||||||||
Dividends declared per share 4 |
$
|
0.13
|
$
|
0.12
|
$
|
0.39
|
$
|
0.36
| ||||||||
Selected Financial Ratios | ||||||||||||||||
Return on average assets1 |
1.19
|
%
|
1.04
|
%
|
1.21
|
%
|
1.17
|
%
| ||||||||
Return on average equity1 |
18.10
|
%
|
15.13
|
%
|
18.09
|
%
|
16.12
|
%
| ||||||||
Net interest rate spread1 |
2.38
|
%
|
2.72
|
%
|
2.51
|
%
|
2.78
|
%
| ||||||||
Net interest margin1 |
2.41
|
%
|
2.76
|
%
|
2.54
|
%
|
2.84
|
%
| ||||||||
Fully taxable-equivalent net interest margin2 |
2.56
|
%
|
2.91
|
%
|
2.69
|
%
|
3.00
|
%
| ||||||||
Efficiency ratio3 |
48.93
|
%
|
52.52
|
%
|
47.32
|
%
|
50.27
|
%
| ||||||||
Non-performing assets to total assets
|
0.16
|
%
|
0.13
|
%
| ||||||||||||
Non-performing loans to net loans
|
0.34
|
%
|
0.25
|
%
| ||||||||||||
Allowance for loan losses to non-performing loans
|
562.46
|
%
|
737.73
|
%
| ||||||||||||
Allowance for loan losses to total loans
|
1.88
|
%
|
1.80
|
%
| ||||||||||||
Shareholders' equity to total assets
|
6.22
|
%
|
6.49
|
%
| ||||||||||||
Dividend payout ratio4 |
15.66
|
%
|
18.75
|
%
| ||||||||||||
Actual dividends paid to net income5 |
7.21
|
%
|
12.02
|
%
| ||||||||||||
Book value per share
|
$
|
18.43
|
$
|
16.34
|
For the three months ended
March 31,
|
For the nine months ended
March 31,
| |||||||||||||||
(Dollars in thousands)
|
2022
|
2021
|
2022
|
2021
| ||||||||||||
Net interest income (GAAP)
|
$
|
14,087
|
$
|
13,570
|
$
|
42,939
|
$
|
38,995
| ||||||||
Tax-equivalent adjustment
|
865
|
751
|
2,440
|
2,207
| ||||||||||||
Net interest income (fully taxable-equivalent basis)
|
$
|
14,952
|
$
|
14,321
|
$
|
45,379
|
$
|
41,202
| ||||||||
Average interest-earning assets
|
$
|
2,336,019
|
$
|
1,966,451
|
$
|
2,252,913
|
$
|
1,832,465
| ||||||||
Net interest margin (fully taxable-equivalent basis)
|
2.56
|
%
|
2.91
|
%
|
2.69
|
%
|
3.00
|
%
|
At
March 31, 2022
|
At
June 30, 2021
| |||||||
(Dollars In thousands, except share data)
Assets
| ||||||||
Total cash and cash equivalents
|
$
|
150,615
|
$
|
149,775
| ||||
Long term certificate of deposit
|
4,112
|
4,553
| ||||||
Securities- available for sale, at fair value
|
411,442
|
390,890
| ||||||
Securities- held to maturity, at amortized cost
|
729,739
|
496,914
| ||||||
Equity securities, at fair value
|
296
|
307
| ||||||
Federal Home Loan Bank stock, at cost
|
1,091
|
1,091
| ||||||
Gross loans receivable
|
1,155,399
|
1,108,408
| ||||||
Less: Allowance for loan losses
|
(21,739
|
)
|
(19,668
|
)
| ||||
Unearned origination fees and costs, net
|
(140
|
)
|
(2,793
|
)
| ||||
Net loans receivable
|
1,133,520
|
1,085,947
| ||||||
Premises and equipment
|
14,273
|
14,137
| ||||||
Bank owned life insurance
|
53,364
|
40,425
| ||||||
Accrued interest receivable
|
9,495
|
7,781
| ||||||
Foreclosed real estate
|
68
|
64
| ||||||
Prepaid expenses and other assets
|
13,674
|
8,451
| ||||||
Total assets
|
$
|
2,521,689
|
$
|
2,200,335
| ||||
Liabilities and shareholders' equity
| ||||||||
Noninterest bearing deposits
|
$
|
188,043
|
$
|
174,114
| ||||
Interest bearing deposits
|
2,103,827
|
1,830,994
| ||||||
Total deposits
|
2,291,870
|
2,005,108
| ||||||
Borrowings from other banks, short-term
|
-
|
3,000
| ||||||
Subordinated notes payable
|
49,263
|
19,644
| ||||||
Accrued expenses and other liabilities
|
23,624
|
22,999
| ||||||
Total liabilities
|
2,364,757
|
2,050,751
| ||||||
Total shareholders' equity
|
156,932
|
149,584
| ||||||
Total liabilities and shareholders' equity
|
$
|
2,521,689
|
$
|
2,200,335
| ||||
Common shares outstanding
|
8,513,414
|
8,513,414
| ||||||
Treasury shares
|
97,926
|
97,926
|
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Disclaimer
Greene County Bancorp Inc. published this content on 21 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 April 2022 18:14:03 UTC.