Date: October 22, 2021
|
For Further Information Contact:
|
Donald E. Gibson
|
President & CEO
|
(518) 943-2600
|
donaldg@tbogc.com |
Michelle M. Plummer, CPA, CGMA
|
SEVP, COO & CFO
|
(518) 943-2600
|
michellep@tbogc.com |
• |
Net Income: $7.1 million for the quarter ended September 30, 2021
|
• |
Total Assets: New high of $2.3 billion at September 30, 2021
|
• |
Return on Average Assets: 1.28% for the quarter ended September 30, 2021
|
• |
Return on Average Equity: 18.60% for the quarter ended September 30, 2021
|
• |
Net interest income increased $2.6 million to $14.4 million for the three months ended September 30, 2021 from $11.8 million for the three months ended September 30, 2020. The increase in net interest income was primarily the result of the growth in the average balance of interest-earning assets, which increased $460.5 million when comparing the three months ended September 30, 2021 and 2020, offset by a decrease in the average interest rate on interest-earning assets, which decreased 25 basis points when comparing the three months ended September 30, 2021 and 2020.
|
• |
Net interest rate spread and margin both decreased when comparing the three months ended September 30, 2021 and 2020. Net interest rate spread decreased eight basis points to 2.64% for the three months ended September 30, 2021 compared to 2.72% for the three months ended September 30, 2020. Net interest margin decreased 12 basis points to 2.67% for the three months ended September 30, 2021 compared to 2.79% for the three months ended September 30, 2020. 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 2.81% and 2.98% for the three months ended September 30, 2021 and 2020, respectively.
|
• |
Provision for loan losses amounted to $988,000 and $1.2 million for the three months ended September 30, 2021 and 2020, respectively. The provision for loan losses for the three months ended September 30, 2021 and 2020 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 September 30, 2021, the Company had $7.1 million, consisting of six loans, on payment deferral as a result of the pandemic, which is a decrease from $8.0 million, consisting of eight loans, at June 30, 2021. Management continues to monitor these loans, and it remains uncertain whether all of these loans will continue to perform as agreed once they reach the end of the deferral period. Loans classified as substandard or special mention totaled $47.6 million at September 30, 2021, compared to $49.7 million at June 30, 2021, a decrease of $2.1 million, and compared to $38.9 million at September 30, 2020, an increase of $8.7 million. Loans classified as substandard or special mention decreased slightly as compared to June 30, 2021 but remained elevated as compared to September 30, 2020, due to insufficient cash flows and revenues related to the COVID-19 pandemic. Reserves on loans classified as substandard or special mention totaled $8.0 million at September 30, 2021 compared to $7.8 million at June 30, 2021, an increase of $200,000. No loans were classified as doubtful or loss at September 30, 2021 or June 30, 2021. Allowance for loan losses to total loans receivable was 1.83% at September 30, 2021 compared to 1.77% at June 30, 2021. Total loans receivable included $37.4 million and $67.4 million of SBA Paycheck Protection Program (PPP) loans at September 30, 2021 and June 30, 2021, respectively. Excluding these SBA guaranteed loans, the allowance for loan losses to total loans receivable would have been 1.90% and 1.89% at September 30, 2021 and June 30, 2021, respectively.
|
• |
Net charge-offs amounted to $163,000 and $38,000 for the three months ended September 30, 2021 and 2020, respectively, an increase of $125,000. The primary net charge off activity was a commercial loan charge off that occurred during the quarter ended September 30, 2021.
|
• |
Nonperforming loans amounted to $1.9 million and $2.3 million at September 30, 2021 and June 30, 2021, respectively. The decrease in nonperforming loans during the period was primarily due to $304,000 in loan repayments, and $97,000 in charge-offs. At September 30, 2021 nonperforming assets were 0.09% of total assets compared to 0.11% at June 30, 2021. Nonperforming loans were 0.17% and 0.21% of net loans at September 30, 2021 and June 30, 2021, respectively.
|
• |
Noninterest income increased $851,000, or 41.0%, and totaled $2.9 million and $2.1 million for the three months ended September 30, 2021 and 2020, respectively. 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 increased $828,000, or 11.6%, to $8.0 million for the three months ended September 30, 2021 compared to $7.1 million for the three months ended September 30, 2020. The increase in noninterest expense during the three months ended September 30, 2021 was primarily due to an increase in salaries and employee benefits expense resulting from creating 13 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 other non-interest expense as the bank made a charitable donation to The Bank of Greene County Charitable Foundation during the three months ended September 30, 2021.
|
• |
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 15.1% for the three months ended September 30, 2021 and 11.7% for the three months ended September 30, 2020, 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 the New York State tax rate and the increase in income before taxes for September 30, 2021 compared to September 30, 2020.
|
• |
Total assets of the Company were $2.3 billion at September 30, 2021 and $2.2 billion at June 30, 2021, an increase of $82.5 million, or 3.8%.
|
• |
Securities available-for-sale and held-to-maturity increased $100.5 million, or 11.3%, to $988.3 million at September 30, 2021 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 $198.2 million during the three months ended September 30, 2021 and consisted of $142.3 million of state and political subdivision securities, $33.5 million of mortgage-backed securities, $2.5 million of corporate securities, and $19.9 million of other securities. Principal pay-downs and maturities during the three months amounted to $95.0 million, primarily consisting of $11.1 million of mortgage-backed securities, $81.3 million of state and political subdivision securities, $867,000 of collateralized mortgage obligations, and $1.7 million of other securities.
|
• |
Net loans receivable increased $10.9 million, or 1.0%, to $1.1 billion at September 30, 2021 from $1.1 billion at June 30, 2021. Net loans receivable at September 30, 2021 included $37.4 million in SBA Paycheck Protection Program loans. The loan growth experienced during the three months consisted primarily of $38.2 million in commercial real estate loans, $1.1 million in residential real estate loans, $2.5 million in residential construction, $1.6 million in multi-family loans, and a $1.3 million net decrease in deferred fees due to the forgiveness of SBA PPP loans. This growth was partially offset by a $1.1 million decrease in commercial construction loans, $32.3 million decrease in commercial loans and an $825,000 increase in allowance for loan losses. SBA PPP loans decreased $30.0 million to $37.4 million at September 30, 2021 from $67.4 million at June 30, 2021, due to the receipt of forgiveness proceeds.
|
• |
Deposits totaled $2.1 billion at September 30, 2021 and $2.0 billion at June 30, 2021, an increase of $51.4 million, or 2.6%. Noninterest-bearing deposits increased $20.5 million, or 11.8%, and NOW deposits increased $36.4 million, or 2.7%, when comparing September 30, 2021 and June 30, 2021. These increases were offset by decreases in certificates of deposits of $84,000, or 0.2%, money market deposits decreased $5.0 million, or 3.4%, and savings deposits decreased $410,000, or 0.1%, when comparing September 30, 2021 and June 30, 2021. Deposits increased during the three months ended September 30, 2021 as a result of an increase in municipal deposits at Greene County Commercial Bank, primarily from tax collection, and new account relationships.
|
• |
Borrowings of the Company amounted to $49.2 million at September 30, 2021 compared to $22.6 million at June 30, 2021, an increase of $26.5 million. At September 30, 2021, borrowings consisted of $49.2 million of Fixed-to-Floating Rate Subordinated Notes. During the three months ended September 30, 2021, 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 $154.8 million at September 30, 2021 from $149.6 million at June 30, 2021, resulting primarily from net income of $7.1 million, partially offset by dividends declared and paid of $508,000 and a decrease in other accumulated comprehensive loss of $1.4 million.
|
At or for the Three Months
| ||||||||
Ended September 30,
| ||||||||
Dollars in thousands, except share and per share data
|
2021
|
2020
| ||||||
Interest income
|
$
|
15,613
|
$
|
13,338
| ||||
Interest expense
|
1,214
|
1,522
| ||||||
Net interest income
|
14,399
|
11,816
| ||||||
Provision for loan losses
|
988
|
1,243
| ||||||
Noninterest income
|
2,929
|
2,078
| ||||||
Noninterest expense
|
7,961
|
7,133
| ||||||
Income before taxes
|
8,379
|
5,518
| ||||||
Tax provision
|
1,265
|
643
| ||||||
Net income
|
$
|
7,114
|
$
|
4,875
| ||||
Basic and diluted EPS
|
$
|
0.84
|
$
|
0.57
| ||||
Weighted average shares outstanding
|
8,513,414
|
8,513,414
| ||||||
Dividends declared per share 4 |
$
|
0.13
|
$
|
0.12
| ||||
Selected Financial Ratios | ||||||||
Return on average assets1 |
1.28
|
%
|
1.14
|
%
| ||||
Return on average equity1 |
18.60
|
%
|
14.89
|
%
| ||||
Net interest rate spread1 |
2.64
|
%
|
2.72
|
%
| ||||
Net interest margin1 |
2.67
|
%
|
2.79
|
%
| ||||
Fully taxable-equivalent net interest margin2 |
2.81
|
%
|
2.98
|
%
| ||||
Efficiency ratio3 |
45.94
|
%
|
51.34
|
%
| ||||
Non-performing assets to total assets
|
0.09
|
%
|
0.24
|
%
| ||||
Non-performing loans to net loans
|
0.17
|
%
|
0.42
|
%
| ||||
Allowance for loan losses to non-performing loans
|
1078.58
|
%
|
404.78
|
%
| ||||
Allowance for loan losses to total loans
|
1.83
|
%
|
1.68
|
%
| ||||
Shareholders' equity to total assets
|
6.78
|
%
|
7.39
|
%
| ||||
Dividend payout ratio4 |
15.48
|
%
|
21.05
|
%
| ||||
Actual dividends paid to net income5 |
7.14
|
%
|
9.60
|
%
| ||||
Book value per share
|
$
|
18.19
|
$
|
15.62
|
For the three months ended September 30,
| ||||||||
(Dollars in thousands)
|
2021
|
2020
| ||||||
Net interest income (GAAP)
|
$
|
14,399
|
$
|
11,816
| ||||
Tax-equivalent adjustment
|
766
|
812
| ||||||
Net interest income (fully taxable-equivalent basis)
|
$
|
15,165
|
$
|
12,628
| ||||
Average interest-earning assets
|
$
|
2,155,976
|
$
|
1,695,482
| ||||
Net interest margin (fully taxable-equivalent basis)
|
2.81
|
%
|
2.98
|
%
|
At
September 30, 2021
|
At
June 30, 2021
| |||||||
(Dollars In thousands, except share data)
| ||||||||
Assets
| ||||||||
Total cash and cash equivalents
|
$
|
113,329
|
$
|
149,775
| ||||
Long term certificate of deposit
|
4,367
|
4,553
| ||||||
Securities- available for sale, at fair value
|
412,375
|
390,890
| ||||||
Securities- held to maturity, at amortized cost
|
575,898
|
496,914
| ||||||
Equity securities, at fair value
|
297
|
307
| ||||||
Federal Home Loan Bank stock, at cost
|
1,091
|
1,091
| ||||||
Gross loans receivable
|
1,118,784
|
1,108,408
| ||||||
Less: Allowance for loan losses
|
(20,493
|
)
|
(19,668
|
)
| ||||
Unearned origination fees and costs, net
|
(1,475
|
)
|
(2,793
|
)
| ||||
Net loans receivable
|
1,096,816
|
1,085,947
| ||||||
Premises and equipment
|
14,161
|
14,137
| ||||||
Bank owned life insurance
|
47,726
|
40,425
| ||||||
Accrued interest receivable
|
8,305
|
7,781
| ||||||
Foreclosed real estate
|
64
|
64
| ||||||
Prepaid expenses and other assets
|
8,371
|
8,451
| ||||||
Total assets
|
$
|
2,282,800
|
$
|
2,200,335
| ||||
Liabilities and shareholders' equity
| ||||||||
Noninterest bearing deposits
|
$
|
194,566
|
$
|
174,114
| ||||
Interest bearing deposits
|
1,861,896
|
1,830,994
| ||||||
Total deposits
|
2,056,462
|
2,005,108
| ||||||
Borrowings from other banks, short-term
|
-
|
3,000
| ||||||
Subordinated notes payable
|
49,170
|
19,644
| ||||||
Accrued expenses and other liabilities
|
22,332
|
22,999
| ||||||
Total liabilities
|
2,127,964
|
2,050,751
| ||||||
Total shareholders' equity
|
154,836
|
149,584
| ||||||
Total liabilities and shareholders' equity
|
$
|
2,282,800
|
$
|
2,200,335
| ||||
Common shares outstanding
|
8,513,414
|
8,513,414
| ||||||
Treasury shares
|
97,926
|
97,926
|
Attachments
- Original document
- Permalink
Disclaimer
Greene County Bancorp Inc. published this content on 22 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 October 2021 16:33:04 UTC.