form8kjanuary242012.htm
 
 
 
 
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 24, 2012

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 24, 2012, Greene County Bancorp, Inc. issued a press release disclosing financial results for the six months and quarter ended December 31, 2011 and 2010.  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.

•  
Not Applicable.

•  
Not Applicable.

•  
Not Applicable.

•  
Exhibits.

               Exhibit No.
Description

99.1                                           Press release dated January 24, 2012


 
 
 
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 30, 2012                                                                                                                                   By: /s/ Donald E. Gibson          
                                                                                                                                                                                           Donald E. Gibson
                                                                                           President and Chief Executive Officer

 
 
 
 

FOR IMMEDIATE RELEASE
Date: January 24, 2012
For Further Information Contact:
Donald E. Gibson
President & CEO
(518) 943-2600
donaldg@tbogc.com

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


Greene County Bancorp, Inc. - Reports 10.6% Increase in Quarterly Earnings

Catskill, N.Y. -- (BUSINESS WIRE) – January 24, 2012-- 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, 2011, which is the second quarter of the Company’s fiscal year ending June 30, 2012.  Net income for the six months and quarter ended December 31, 2011 totaled $3.0 million, or $0.72 per basic and diluted share, and $1.5 million, or $0.36 per basic and diluted share, respectively, as compared to $2.7 million, or $0.65 per basic and $0.64 per diluted share, and $1.4 million, or $0.33 per basic and $0.32 per diluted share, for the six months and quarter ended December 31, 2010, respectively, an increase of $328,000, or 12.3%, and $143,000, or 10.6% for these same periods in the prior year.

              Donald E. Gibson, President & CEO stated; “We are pleased to report a continuation of our strong performance. The Bank’s return on average equity for the six months ended December 31, 2011 was 12.20% and return on average assets was 1.09%. We remain focused on increasing shareholder value through quality growth and diligent cost controls.”

Selected highlights for the six months and quarter ended December 31, 2011 are as follows:

•  
Net interest income increased $730,000 to $10.4 million for the six months ended December 31, 2011 compared to $9.7 million for the six months ended December 31, 2010, and increased $328,000 to $5.2 million for the quarter ended December 31, 2011 compared to $4.9 million for the quarter ended December 31, 2010. The increase in average balances of loans and securities, along with a decrease in rates paid on deposit accounts, primarily led to an increase in net interest income for the six months and quarter- ended December 31, 2011 compared to the six months and quarter-ended December 31, 2010.
•  
Net interest spread increased 4 basis points to 3.79% for the six months ended December 31, 2011 from 3.75% for the six months ended December 31, 2010, and increased 11 basis points to 3.76% for the six months ended December 31, 2011 from 3.65% for the quarter ended December 31, 2010.  Net interest margin remained constant at 3.92% for the six months ended December 31, 2011 and 2010, and increased 8 basis points to 3.88% for the quarter ended December 31, 2011 as compared to 3.80% for the quarter ended December 31, 2010.  The increases in our spread and margin were primarily due to the growth in deposits, and the lower costs of total deposits.
•  
The provision for loan losses totaled $896,000 and $836,000 for the six months ended December 31, 2011 and 2010, respectively, an increase of $60,000, or 7.2%.  The provision for loan losses totaled $422,000 and $483,000 for the quarters ended December 31, 2011 and 2010, respectively.
•  
The allowance for loan losses totaled $5.6 million at December 31, 2011 compared to $4.6 million at December 31, 2010.  The allowance for loan losses totaled $5.1 million at June 30, 2011.  The level of allowance for loan losses to total loans receivable increased to 1.77% at December 31, 2011 as compared to 1.55% at December 31, 2010, and 1.66% at June 30, 2011.
•  
Net charge-offs totaled $348,000 and $211,000 for the six months ended December 31, 2011 and 2010, respectively, an increase of $137,000.
•  
Nonperforming loans increased by $922,000, or 14.6%, to $7.2 million at December 31, 2011 from $6.3 million at June 30, 2011. This growth has resulted from adverse changes in the economy and increases in local unemployment compounded by the extended length of time required to complete the foreclosure process in New York State.
•  
Noninterest income decreased $39,000 and $153,000 when comparing the six months and quarters ended December 31, 2011 and 2010, respectively.  Noninterest income totaled $2.4 million and $1.2 million for the six months and quarter ended December 31, 2011, respectively.  The Company recorded a net gain on sale of investments during the quarter ended December 31, 2010 of $212,000, and a net gain on sale of investments during the six months ended December 31, 2011 of $11,000.  Excluding these items, noninterest income increased $162,000 and $59,000 when comparing the six months and quarters ended December 31, 2011 and 2010, respectively.  These increases were primarily the result of higher service charges on deposit accounts and higher debit card fees due to growth in the number of deposit accounts.
•  
Noninterest expense increased $181,000 and $51,000 when comparing the six months and quarters ended December 31, 2011 and 2010, respectively. This increase was primarily due to an increase in legal and professional fees, service and data processing fees, equipment and furniture expense, computer software, supplies & support, and other expenses.  The increase in legal and professional fees of $90,000 and $67,000 when comparing the six months and quarters ended December 31, 2011 and 2010, respectively, were related to loans in process of foreclosure and increased fees for consulting services related to the implementation of strategic objectives. Included in the increases in service and data processing fees of $72,000 and $44,000 when comparing the six months and quarters ended December 31, 2011 and 2010, respectively, were increased costs associated with the increase in the number of debit card accounts.  The increase in other expenses was the result of the recognition of a loss on foreclosed assets of $131,500 and $81,500 for the six months and quarter ended December 31, 2011.  These increases were partially offset by decreases in FDIC insurance premiums of $129,000 and $76,000 when comparing the six months and quarters ended December 31, 2011 and 2010, respectively.  The decrease in FDIC insurance premiums was the result of regulatory changes in the method of calculating the premiums.
•  
Total assets of the Company were $559.6 million at December 31, 2011 compared to $547.5 million at June 30, 2011, an increase of $12.1 million, or 2.2%.
•  
Securities available for sale and held to maturity totaled $206.0 million, or 36.8% of assets, at December 31, 2011, as compared to $214.3 million, or 39.1% of assets, at June 30, 2011, a decrease of $8.3 million, or 3.9%.
•  
Net loans grew by $10.8 million, or 3.6%, to $311.8 million at December 31, 2011 compared to $301.0 million at June 30, 2011.  The increase in loans was primarily in nonresidential real estate and commercial installment loans, which generally carry higher yields than residential real estate loans.
•  
Total deposits increased to $494.0 million at December 31, 2011 from $469.9 million at June 30, 2011, an increase of $24.1 million, or 5.1%.  This increase was primarily the result of an $13.3 million increase in balances at the Company’s Commercial Bank subsidiary due primarily to the annual collection of taxes by several local school districts.
•  
As a result of the increase in deposits, the Company repaid its overnight borrowings with the Federal Home Loan Bank.  Borrowings decreased $14.3 million from $26.3 million at June 30, 2011 to $12.0 million at December 31, 2011.
•  
Total shareholders’ equity was $50.6 million at December 31, 2011, or 9.1% 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,
 
   
2011
   
2010
   
2011
   
2010
 
Dollars In thousands,
except share and per share data
                       
Interest income
  $ 12,363     $ 12,042     $ 6,158     $ 6,066  
Interest expense
    1,941       2,350       935       1,171  
Net interest income
    10,422       9,692       5,223       4,895  
Provision for loan losses
    896       836       422       483  
Noninterest income
    2,422       2,461       1,208       1,361  
Noninterest expense
    7,426       7,245       3,768       3,717  
Income before taxes
    4,522       4,072       2,241       2,056  
Tax provision
    1,518       1,396       746       704  
Net Income
  $ 3,004     $ 2,676     $ 1,495     $ 1,352  
                                 
Basic EPS
  $ 0.72     $ 0.65     $ 0.36     $ 0.33  
Weighted average
shares outstanding
    4,146,965       4,125,619       4,148,102       4,129,939  
                                 
Diluted EPS
  $ 0.72     $ 0.64     $ 0.36     $ 0.32  
Weighted average
diluted shares outstanding
    4,190,187       4,157,903       4,190,211       4,163,333  
                                 
Dividends declared per share 2
  $ 0.350     $ 0.550     $ 0.175     $ 0.375  
                                 
Selected Financial Ratios
                               
Return on average assets
    1.09 %     1.04 %     1.07 %     1.01 %
Return on average equity
    12.20 %     11.76 %     11.98 %     11.79 %
Net interest rate spread
    3.79 %     3.75 %     3.76 %     3.65 %
Net interest margin
    3.92 %     3.92 %     3.88 %     3.80 %
Efficiency ratio1
    57.82 %     59.61 %     58.59 %     59.41 %
Non-performing assets
to total assets
    1.35 %     1.16 %                
Non-performing loans
to net loans
    2.31 %     2.01 %                
Allowance for loan losses to
non-performing loans
    77.83 %     77.99 %                
Allowance for loan losses to
total loans
    1.77 %     1.55 %                
Shareholders’ equity to total assets
    9.05 %     8.64 %                
Dividend payout ratio2
    48.61 %     84.62 %                
Book value per share
  $ 12.20     $ 11.10                  
                                 


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

2 Greene County Bancorp, MHC, the owner of 53.5% 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 six months and quarter ended December 31, 2010 include a special dividend of $0.20 per share paid on December 15, 2010.


   
As of December 31, 2011      
   
As of June 30, 2011        
 
Dollars In thousands
           
Assets
           
Total cash and cash equivalents
  $ 20,055     $ 9,966  
Securities- available for sale, at fair value
    77,235       90,117  
Securities- held to maturity, at amortized cost
    128,748       124,177  
Federal Home Loan Bank stock, at cost
    1,273       1,916  
                 
Gross loans receivable
    317,041       305,620  
Less:  Allowance for loan losses
    (5,617 )     (5,069 )
          Unearned origination fees and costs, net
    410       495  
Net loans receivable
    311,834       301,046  
                 
Premises and equipment
    15,044       15,407  
Accrued interest receivable
    2,714       2,716  
Foreclosed real estate
    361       443  
Prepaid expenses and other assets
    2,319       1,737  
         Total assets
  $ 559,583     $ 547,525  
                 
Liabilities and shareholders’ equity
               
Noninterest bearing deposits
  $ 53,766     $ 49,313  
Interest bearing deposits
    440,203       420,584  
  Total deposits
    493,969       469,897  
                 
Borrowings from FHLB, short term
    ---       14,300  
FHLB borrowings, long term
    12,000       12,000  
Accrued expenses and other liabilities
    2,993       3,247  
         Total liabilities
    508,962       499,444  
Total shareholders’ equity
    50,621       48,081  
         Total liabilities and shareholders’ equity
  $ 559,583     $ 547,525  
Common shares outstanding
    4,150,228       4,145,828  
Treasury shares
    155,442       159,842