Greene County Bancorp, Inc. Announces Quarterly 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 quarter ended September 30, 2006 of $754,000 or $0.18 per basic and diluted share as compared to $656,000, or $0.16 per basic and diluted share for the quarter ended September 30, 2005, an increase of $98,000, or 14.9%. Net income was positively impacted by an improvement in noninterest income and a reduction of noninterest expenses partially offset by the compression of our net interest spread and margin when comparing the quarter ended September 30, 2006 to the quarter ended September 30, 2005. Net interest income remained relatively flat at $2.6 million for the quarter ended September 30, 2006 and $2.7 million for the quarter ended September 30, 2005. Net interest spread decreased 26 basis points to 3.58% as compared to 3.84%, when comparing the quarters ended September 30, 2006 and 2005. Net interest margin decreased 25 basis points to 3.68% for the quarter ended September 30, 2006 as compared to 3.93% for the quarter ended September 30, 2005. The tightening of the net interest spread and margin hindered net interest income growth when comparing the quarters ended September 30, 2006 and 2005. Due to the large level of long term fixed rate loans, we may continue to experience compression of net interest margin and spread in a rising rate environment. The provision for loan losses amounted to $45,000 for the quarter ended September 30, 2006 and $30,000 for the quarter ended September 30, 2005. The relatively low level of the provisions for loan losses was largely due to the continuing high quality of the overall loan portfolio. At September 30, 2006, nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. were 0.02% of total assets, nonperforming loans were 0.03% of total loans, and the number and dollar amount of loans classified as nonaccrual were insignificant. Noninterest income amounted to $891,000 for the quarter ended September 30, 2006 as compared to $802,000 for the quarter ended September 30, 2005, an increase of $89,000 or 11.1%. The Company continues to grow income from higher volumes of activity in debit cards 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. , E-commerce and services performed through Essex Corp's "Investors MarketPlace", an alternative investment resource. Noninterest expense amounted to $2.43 million for the quarter ended September 30, 2006 as compared to $2.57 million for the quarter ended September 30, 2005, a decrease of $132,000 or 5.1%. The largest component of noninterest expense, salaries and employee benefits, decreased $83,000 when comparing quarters ended September 30, 2006 and 2005. Retirement plan expense decreased approximately $36,000 primarily as a 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 beginning July 1, 2006. This decrease is partially offset by an increase in 401-k contribution expense of $12,000 resulting from an increase in employer match beginning July 1, 2006. Also contributing to the decrease in salaries and employee benefits was lower overtime expenses which declined $22,000. These expenses were higher for the quarter ended September 30, 2005 as a result of the training and preparation for the 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 system conversion which occurred in October 2005. Occupancy expense increased approximately $21,000 when comparing the quarters ended September 30, 2006 and 2005 due to higher utility costs and increased depreciation expense associated with the relocated Cairo and Coxsackie branches. Equipment and furniture expense increased $12,000 when comparing the quarters ended September 30, 2006 and 2005 due to higher depreciation expense associated with updated computer equipment and a new loan and deposit data processing system implemented in October 2005. The higher depreciation costs were partially offset by a $65,000 decrease in servicing and data processing fees that resulted from the discontinuation dis·con·tin·u·a·tion n. A cessation; a discontinuance. Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) discontinuance of the outsourcing of the data processing system following the implementation of the new system. The provision for income taxes directly reflects 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 29.0% for the quarter ended September 30, 2006, compared to 30.0% for the quarter ended September 30, 2005. The decline in effective rate is due to increased holdings of federally tax-exempt municipal securities in the current period. Total assets of the Company were $309.6 million at September 30, 2006 as compared to $307.6 million at June 30, 2006, an increase of $2.0 million, or 0.7%. Investment securities amounted to $85.3 million, or 27.6% of assets, at September 30, 2006 as compared to $87.3 million, or 28.4% of assets, at June 30, 2006, a decrease of $2.0 million or 2.3%. Principal pay-downs and maturities associated with investment securities amounted to $5.5 million during the quarter ended September 30, 2006. These activities were partially offset by investment security purchases of $3.0 million over the same time frame. Net loans grew by $6.3 million to $196.4 million during the quarter ended September 30, 2006, reaching 63.4% of assets as compared to 61.8% of assets at 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 $849,000 to $34.4 million at September 30, 2006 from $33.6 million at June 30, 2006, as net income of $754,000 and other comprehensive income of $462,000 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). Plan. 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 are to open in the next few months including an office on Catskill's west side 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.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. [TABLE OMITTED] [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. [TABLE OMITTED] |
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