Greene County Bancorp, Inc. Announces Fiscal Year and Quarterly Earnings.CATSKILL Catskill (kăt`skĭl), village (1990 pop. 4,690), seat of Greene co., SE N.Y., on the Hudson River; settled 17th cent. by Dutch, inc. 1806. Connected with Hudson, N.Y. , N.Y. -- Greene County Greene County is the name of fourteen counties in the United States of America, each named in honor of American Revolutionary War general Nathanael Greene:
in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : GCBC GCBC Grand Case Beach Club (St Martin) GCBC Ghana Catholic Bishops Conference GCBC Gulf Coast Business Council GCBC Gold Coast Bridge Club (Australia) ), the holding company for The Bank of Greene County (the "Bank"), today reported net income for the quarter and fiscal year ended June June: see month. 30, 2006. Net income for the fiscal year ended June 30, 2006 amounted to $2.2 million, or $0.55 per basic and $0.54 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share as compared to $2.9 million or $0.72 per basic and $0.70 per diluted share, a decrease of $0.7 million or 24.1%. Net income for the quarter ended June 30, 2006 amounted to $486,000 or $0.12 per basic and diluted share as compared to $658,000, or $0.16 per basic and diluted share for the quarter ended June 30, 2005, a decrease of $172,000, or 26.1%. Net income for the quarter and fiscal year was impacted by a $300,000 payment to fund a portion of the unfunded liability associated with the Company's defined benefit pension plan, which was frozen effective July July: see month. 1, 2006. Other items that impacted net income were expenses related to the upgrade of the Bank's loan and deposit system to another platform and the replacement of the Coxsackie Coxsackie Microbiology A family of picornaviruses, genus Enterovirus with 22 virotypes of Coxsackie A, 6 virotypes of Coxsackie B Clinical Herpangina-Coxsackie A, hand, foot, mouth disease, summer grippe, aseptic meningitis–A and B, epidemic branch, as well as slightly lower net interest income. Net interest income decreased to $10.7 million for the year ended June 30, 2006 as compared to $10.8 million for the year ended June 30, 2005, a decline of $0.1 million or 0.9% when comparing periods. Net interest income was unchanged at $2.7 million for the quarters ended June 30, 2006 and 2005. The relatively flat yield curve Flat Yield Curve A chart that shows that the yields of bonds with short maturities are equal to the yields of bonds with longer maturities. was the leading factor in the net interest income position. Net interest spread decreased 15 basis points to 3.76% as compared to 3.91% when comparing the years ended June 30, 2006 to 2005 and decreased 14 basis points to 3.70% as compared to 3.84% when comparing the quarters ended June 30, 2006 and 2005. Net interest margin decreased 14 basis points to 3.85% as compared to 3.99% when comparing the years ended June 30, 2006 and 2005 and decreased 12 basis points to 3.80% as compared to 3.92% when comparing the quarters ended June 30, 2006 and 2005. The decline was primarily due to the increase in average rate paid on interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities, which include savings deposits Savings deposits Accounts that pay interest, typically at below-market interest rates, that do not have a specific maturity, and that usually can be withdrawn upon demand. , money market accounts, certificates of deposit and borrowings. The rate paid on interest-bearing liabilities increased 30 basis points to 1.58% for the year ended June 30, 2006 as compared to 1.28% for the year ended June 30, 2005. The rate paid on interest-bearing liabilities increased 52 basis points to 1.84% for the quarter ended June 30, 2006 as compared to 1.32% for the quarter ended June 30, 2005. The increased rate paid on interest-bearing liabilities was partially offset by increased loan volume and higher yielding interest-earning assets. Average loans increased $20.4 million between the fiscal years ended June 30, 2005 and 2006 to $175.6 million. The average yield on interest-earning assets increased 15 basis points to 5.34% for the fiscal year ended June 30, 2006 as compared 5.19% for the fiscal year ended June 30, 2005. The average yield on interest-earning assets increased 38 basis points to 5.54% for the quarter ended June 30, 2006 as compared to 5.16% for the quarter ended June 30, 2005. The provision for loan losses increased to $200,000 for the fiscal year and $100,000 for the quarter ended June 30, 2006 as compared to $71,000 for the year and no provision for the quarter ended June 30, 2005. Loan growth has contributed to the higher provision levels. Also, a charge-off Eliminate or write off. The term charge-off is used to describe the process of removing from the records of a company something that was once regarded as an asset but has subsequently become worthless. for approximately $56,700 was taken in the quarter ended June 30, 2006. The historically low level of non-performing assets was partially the reason for the decision to lower the ratio of allowance for loan loss to net loans to 0.69% at June 30, 2006 as compared to 0.75% at June 30, 2005. Non-performing assets were less than $10,000 as of June 30, 2006. Noninterest income amounted to $3.1 million and $2.7 million for the fiscal years ended June 30, 2006 and 2005, respectively, an increase of $0.4 million, or 14.8%. Noninterest income amounted to $787,000 and $693,000 for the quarters ended June 30, 2006 and 2005, respectively, an increase of $94,000, or 13.6%. Fees earned from debit card debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. transactions have increased significantly due to more transaction volume, amounting to $510,000 for the year ended June 30, 2006 as compared to $377,000 for the year ended June 30, 2005, an increase of $133,000 or 35.3%. Higher transaction volume associated with various E-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. products caused fees earned on such products to increase $47,000 to $195,000 for the year ended June 30, 2006. Alternative investment options offered to customers through Essex's Investors Marketplace and Fenimore Asset Management contributed $86,000 in additional revenue over the prior year, totaling $233,000 for the year ended June 30, 2006. No gains or losses on REO reo Noun NZ a language [Maori] were recognized during the year ended June 30, 2006 as compared to a $19,500 gain the prior year. No gains or losses were recognized in either year on sales of investment securities. Noninterest expense increased to $10.5 million from $9.2 million, an increase of $1.3 million or 14.1% when comparing the years ended June 30, 2006 and 2005. Noninterest expense increased to $2.7 million from $2.4 million, an increase of $0.3 million or 12.5% when comparing the quarters ended June 30, 2006 and 2005. Salaries and employee benefits increased $841,000 when comparing the fiscal years, and $309,000 when comparing the quarters ended June 30, 2006 and 2005. The primary factor contributing to both the yearly and quarterly increase in salary and employee benefits was the $300,000 payment toward the unfunded portion of the defined benefit pension plan. Total expense recognized in association with this plan amounted to $789,000 for the year ended June 30, 2006 as compared to $373,000 for the prior year. Occupancy expense increased $132,000 between the fiscal years and $34,000 between the quarters ended June 30, 2006 and 2005, due to increased utility costs, insurance, tax and depreciation as a result of the recent branch replacement and other building expansions. Depreciation and other expenses associated with additional computer equipment, including the Bank's OSI (1) (Open System Interconnection) An ISO standard for worldwide communications that defines a framework for implementing protocols in seven layers. Control is passed from one layer to the next, starting at the application layer in one station, proceeding to the loan and deposit system, and new furniture in the replacement branches accounted for the increase of $163,000 between fiscal years and $31,500 between quarters ended June 30, 2006 and 2005. Service and data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a fees decreased $104,000 primarily due to the change from a Fiserv  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . out-sourced loan and deposit platform to an internally run OSI platform. The level of miscellaneous other expense increased by $245,000 between fiscal years ended June 30, 2006 and 2005. Items impacting miscellaneous expense included expenses associated with the conversion to the OSI platform, the loss on the sale of the old Cairo Old Cairo (Egyptian Arabic: Masr el Adīma) is a part of Cairo that contains the remnants of those cities which were capitals before Cairo, such as Fustat, as well as some other elements from the city's varied history. branch and higher legal expense partially due to fees incurred in the process of converting The Bank of Greene County from a New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of State savings bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. to a federal savings bank Noun 1. federal savings bank - a federally chartered savings bank FSB savings bank - a thrift institution in the northeastern United States; since deregulation in the 1980s they offer services competitive with many commercial banks . It is expected this change will be approved during the quarter ended September September: see month. 2006. Professional fees, another element of miscellaneous expense, were higher due primarily to services performed in association with the conversion of the loan and deposit system as well as assistance in expansion of the Company's primary network for additional branching capacity. The effective tax rate was 27.0% for the year ended June 30, 2006, compared to 30.0% for the year ended June 30, 2005. The level of tax-free income tax-free income The income received but not subject to income taxes. For example, interest from most municipal bonds is free of federal income taxes and often from state and local income taxes as well. Compare tax-deferred income, tax-sheltered income. to total net income increased to 45.8% as of June 30, 2006 as compared to 30.6% as of June 30, 2005. Total assets of the Company were $307.6 million at June 30, 2006 as compared to $294.7 million at June 30, 2005, an increase of $12.9 million, or 4.4%. The most significant growth occurred in net loans, which increased $25.8 million, or 15.7%, to $190.1 million at June 30, 2006 as compared to $164.3 million at June 30, 2005. Net loans represented 61.8% of the asset composition at June 30, 2006 as compared to 55.8% at prior fiscal year end. Deposit growth of $15.0 million, a decrease in the investment portfolio of $11.6 million and the reduction in cash of $4.1 million helped fund loan growth, net additions of premises and equipment of $3.0 million, and a repayment of $2.5 million in borrowings during the fiscal year ended June 30, 2006. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. increased to $33.6 million at June 30, 2006 from $32.8 million at June 30, 2006, as net income of $2.2 million was partially offset by dividends paid of $823,000. Accumulated other comprehensive income In 1997 the Financial Accounting Standards Board issued a Statement on Financial Accounting Standards entitled “Comprehensive Income”. This statement required all income statement items to be reported either as a regular item in the income statement and or a special item as decreased $910,000 as a result of the mark-to-market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. of the available-for-sale investment portfolio, net of tax. The decrease was entirely related to changes in market interest rates, and was not considered by management to be other than temporary. Other changes in equity were the result of activities associated with the various stock-based compensation plans of the Company, including the 2000 Stock Option Plan and ESOP ESOP See: Employee Stock Ownership Plan ESOP See Employee Stock Ownership Plan (ESOP). Plan. Headquartered in Catskill, New York, the Company serves Greene and Columbia Counties Columbia County is the name of eight counties in the United States:
Albany County is a county located in the U.S. state of New York, generally located in the vicinity of Albany, New York, the capital of New York State. Albany is also the county seat of Albany County. from seven full-service branch offices in Catskill, Cairo, Coxsackie, Greenville, Hudson, Tannersville and Westerlo. The Bank of Greene County also has branch offices under construction on Catskill's west side, and on Route 9 in the Town of Greenport in Columbia County. The Company's customers are offered 24-hour services through ATM network systems, an automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. telephone banking system and Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the Banking through its web site at http://www.thebankofgreenecounty.com. This press release contains statements about future events that constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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.
For the For the For the For the
Twelve Twelve Three Three
Months Months Months Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
---------- ---------- ---------- -----------
In thousands, except share
and per share data
Interest income $ 14,825 $ 14,084 $ 3,904 $ 3,561
Interest expense 4,137 3,258 1,228 857
Net interest income 10,688 10,826 2,676 2,704
Provision for loan loss 200 71 100 ---
Noninterest income 3,112 2,695 787 693
Noninterest expense 10,528 9,239 2,742 2,427
Income before taxes 3,072 4,211 621 970
Tax provision 829 1,262 135 312
Net Income $ 2,243 $ 2,949 $ 486 $ 658
Basic EPS $ 0.55 $ 0.72 $ 0.12 $ 0.16
Weighted average shares
outstanding 4,099,857 4,123,223 4,113,261 4,141,732
Diluted EPS $ 0.54 $ 0.70 $ 0.12 $ 0.16
Weighted average diluted
shares outstanding 4,179,938 4,216,203 4,183,941 4,228,633
Dividend (1) $ 0.45 $ 0.43
As of June As of June
30, 2006 30, 2005
----------- -----------
In thousands, except share data
Assets
Total cash and cash equivalents $ 15,852 $ 19,931
Investment securities, at fair value 87,267 98,851
Federal Home Loan Bank stock, at cost 643 1,785
Gross loans receivable 191,429 165,691
Less: Allowance for loan losses (1,314) (1,236)
Less: Unearned origination fees and costs, net (22) (163)
---------- ----------
Net loans receivable 190,093 164,292
Premises and equipment 10,805 7,796
Accrued interest receivable 1,736 1,573
Prepaid expenses and other assets 1,169 452
---------- ----------
Total Assets $ 307,565 $ 294,680
========== ==========
Liabilities and shareholders' equity
Noninterest bearing deposits $ 41,503 $ 37,591
Interest bearing deposits 226,747 215,646
---------- ----------
Total deposits 268,250 253,237
FHLB borrowing 5,000 7,500
Accrued expenses and other liabilities 734 1,190
---------- ----------
Total liabilities 273,984 261,927
Total shareholders' equity 33,581 32,753
---------- ----------
Total liabilities and shareholders'
equity $ 307,565 $ 294,680
========== ==========
Common shares outstanding 4,145,246 4,129,906
Treasury stock, at cost 160,424 175,764
At and At and For the For the
For the For the Three Three
Twelve Twelve Months Months
Months Months Ended Ended
Ended Ended June June
June 30, June 30, 30, 30,
2006 2005 2006 2005
----------- -------- ------- -------
Selected Financial Ratios
Return on average assets 0.76% 1.02% 0.64% 0.90%
Return on average equity 6.75% 9.39% 5.76% 8.19%
Net interest rate spread 3.76% 3.91% 3.70% 3.84%
Net interest margin 3.85% 3.99% 3.80% 3.92%
Non-performing assets to total
assets 0.00% 0.12%
Non-performing loans to total
loans 0.00% 0.21%
Allowance for loan loss to
non-performing loans 17,832.00% 354.82%
Allowance for loan loss to net
loans 0.69% 0.75%
Shareholders' equity to total
assets 10.92% 11.11%
Book value per share $ 8.17 $ 8.03
Dividend payout ratio
adjusted for MHC Waiver(1) 36.70% 26.56%
All share and per share information has been restated to give effect
to the 2-for-1 stock split which was effective on May 31, 2005.
(1)Greene County Bancorp, MHC 53.5% owner of shares issued waives its
right to receive dividends.
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