Greene County Bancorp, Inc. Announces Increased Earnings.CATSKILL, 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, today reported net income for the six months and quarter ended December 31, 2006. Net income for the six months ended December 31, 2006 amounted to $1.5 million or $0.37 per basic and $0.36 per diluted share as compared to $1.2 million or $0.29 per basic and $0.28 per diluted share for the six months ended December 31, 2005, an increase of $0.3 million, or 25.0%. Net income for the quarter ended December 31, 2006 amounted to $757,000 or $0.18 per basic and diluted share as compared to $527,000 or $0.13 per basic and diluted share for the quarter ended December 31, 2005, an increase of $230,000, or 43.6%. The increases reflected improvement in noninterest income, including a gain on the sale of the old Coxsackie branch building, which helped offset compression of net interest spread and margin. Net interest income remained relatively flat at $5.3 million and $2.6 million for the six months and quarters ended December 31, 2006 and 2005, respectively. Net interest spread decreased 25 basis points to 3.54% as compared to 3.79%, when comparing the six months ended December 31, 2006 and 2005. Net interest spread decreased 23 basis points to 3.51% as compared to 3.74%, when comparing the quarters ended December 31, 2006 and 2005. Net interest margin decreased 22 basis points to 3.66% for the six months ended December 31, 2006 as compared to 3.88% for the six months ended December 31, 2005. Net interest margin decreased 20 basis points to 3.63% for the quarter ended December 31, 2006 as compared to 3.83% for the quarter ended December 31, 2005. Rates have remained relatively unchanged, continuing an inverted yield curve Inverted Yield Curve Usually a chart showing long-term debt instruments that have lower yields than short-term debt instruments. It is sometimes referred to as a negative yield curve. and contributing to compression of net interest spread and margin. Due to its high levels of long-term fixed rate loans, the Company may continue to experience compression of net interest margin and spread. The provision for loan losses amounted to $111,000 and $60,000 for the six months ended December 31, 2006 and 2005, respectively, an increase of $51,000. The provision for loan losses amounted to $66,000 and $30,000 for the quarters ended December 31, 2006 and 2005, respectively, an increase of $36,000. The increase in the level of provision was partially a result of growth in the loan portfolio and an increase in the amount of loan charge-offs, which were associated with the overdraft A check that is drawn on an account containing less money than the amount stated on the check. The term overdraft is also used in reference to the condition that exists when vouchers protection program. Net charge-offs associated with the overdraft protection program increased $29,000, or 138.0% when comparing the six months ended December 31, 2006 and 2005. Noninterest income amounted to $2.1 million for the six months ended December 31, 2006 as compared to $1.6 million for the six months ended December 31, 2005, an increase of $0.5 million or 31.3%. Noninterest income amounted to $1.2 million for the quarter ended December 31, 2006 as compared to $761,000 for the quarter ended December 31, 2005, an increase of $442,000 or 58.1%. A pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern gain of approximately $257,000 related to the sale of the old Coxsackie branch building was the most significant item contributing to the improvement in noninterest income. Service charges on deposit accounts increased $140,000 for both the six months and quarter ended December 31, 2006 due to higher levels of insufficient funds charges. Noninterest expense declined $90,000 to $5.1 million for the six months ended December 31, 2006 compared to $5.2 million for the six months ended December 31, 2005. Noninterest expense increased $42,000 to $2.66 million for the quarter ended December 31, 2006 as compared to $2.62 million for the quarter ended December 31, 2005. Salaries and employee benefits decreased $65,000 when comparing the six months ended December 31, 2006 and 2005. Retirement expense decreased $103,000 primarily as result of discontinuing the accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. of benefits under the defined benefit pension plan. This decrease was partially offset by an increase in 401-(k) contribution expense of $20,000 resulting from an increase in the Company's employer match. Overtime was higher for the periods ended December 31, 2005 due to the upgrade of the Company's core processing system. Salaries and employee benefits increased $18,000 when comparing the quarters ended December 31, 2006 and 2005 as a result of additional staffing in preparation for the opening of two new branch locations in the third quarter of fiscal 2007. Occupancy expense increased $64,000 and $43,000, respectively, when comparing the six months and quarters ended December 31, 2006 and 2005 due to higher utility costs, building maintenance and increased depreciation expense associated with the relocated Cairo and Coxsackie branches, and the opening of the new operations center The facility or location on an installation, base, or facility used by the commander to command, control, and coordinate all crisis activities. See also base defense operations center; command center. in Catskill. 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 $47,000 when comparing the six months ended December 31, 2006 and 2005, which resulted from discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: outsourcing of the core data processing function. Other noninterest expenses decreased $80,000 and $68,000, respectively, when comparing the six months and quarters ended December 31, 2006 and 2005. These expenses were higher for the periods ended December 31, 2005, due to expenses associated with the data processing system conversion such as training costs, licensing fees and professional fees. The provision for income taxes reflected the expected tax associated with the revenue generated for the given period and certain regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. . The effective tax rate was 30.3% for the six months ended December 31, 2006, compared to 28.8% for the six months ended December 31, 2005. The effective tax rate was 31.6% for the quarter ended December 31, 2006, compared to 27.3% for the quarter ended December 31, 2005. The increases in effective rates for the periods ended December 31, 2006 were the result of increased pre-tax income and the resultant reduced percentage of tax exempt interest earned in total taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. . Total assets of the Company were $312.3 million at December 31, 2006 as compared to $307.6 million at June 30, 2006, an increase of $4.7 million, or 1.5%. The loan portfolio increased $12.0 million to $203.5 million at December 31, 2006. Real estate mortgages, both residential and commercial, and home equity loans, increased during the six-month period. Funding the loan growth was an increase in deposits of $2.9 million and principal payments and maturities of securities of $12.4 million, offset by purchases of securities of $3.8 million. Premises and equipment increased $2.5 million due to the new operations center in Catskill and new branches in development in the new Catskill Commons Plaza and in the Town of Greenport. These new facility additions were partially offset by the sale of the old Coxsackie branch building. 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 $1.7 million to $35.3 million at December 31, 2006 from $33.6 million at June 30, 2006, as net income of $1.5 million and other comprehensive income of $516,000 were partially offset by cash dividends paid of $424,000. 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 increased as a result of the mark-to-market of the available-for-sale investment portfolio, net of tax. 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). . Headquartered in Catskill, 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 , the Company provides full-service community-based banking in its seven branch offices located in Catskill, Cairo, Coxsackie, Greenville, Hudson, Tannersville, and Westerlo, New York Westerlo is a town in Albany County, New York, United States. The population was 3,466 at the 2000 census. The Town of Westerlo is on the south border of Albany County. . New branches opening in the next few weeks include an office in the new Catskill Commons Plaza and another in Greenport located in Columbia County Columbia County is the name of eight counties in the United States:
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 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. [TABLE OMITTED] 1Greene County Bancorp, MHC MHC major histocompatibility complex. MHC abbr. major histocompatibility complex MHC major histocompatibility complex. , the owner of 53.5% of the shares issued by the Company, waived its right to receive the semi-annual dividends. No adjustment has been made to account for this waiver. [TABLE OMITTED] |
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