form8kjuly292009.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): July 29,
2009
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 July
29, 2009, Greene County Bancorp, Inc. issued a press release disclosing
financial results at and for the fiscal year and quarter ended June 30, 2009 and
2008. 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.
99.1
Press
release dated July 29, 2009
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: July
31,
2009
By: /s/ Donald E. Gibson
Donald E. Gibson
President
and Chief Executive Officer
Greene
County Bancorp, Inc.
Announces
Strong Fiscal Year and Quarterly Earnings
Catskill,
N.Y. -- (BUSINESS WIRE) – July 29, 2009-- 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
year and quarter ended June 30, 2009. Net income for the year ended
June 30, 2009 amounted to $4.1 million or $1.00 per basic and $0.99 per diluted
share as compared to $2.7 million or $0.66 per basic and $0.65 diluted share for
the year ended June 30, 2008, an increase of $1.4 million, or 51.9%. Net income
for the quarter ended June 30, 2009 amounted to $1.1 million or $0.26 per basic
and diluted share as compared to $841,000 or $0.21 per basic and $0.20 per
diluted share for the quarter ended June 30, 2008, an increase of $247,000, or
29.4%.
Donald E.
Gibson, President & CEO stated: “In this very difficult economic environment
we are pleased to report that Greene County Bancorp had a very solid year.
Thanks to the extra efforts of our dedicated team and support from our Board of
Directors, fiscal year 2009 results were highlighted with record earnings along
with strong growth in loans, deposits and capital.”
The most
significant factor contributing to the improved earnings was higher net interest
income, which increased to $15.7 million for the year ended June 30, 2009 as
compared to $12.2 million for the year ended June 30, 2008, an increase of $3.5
million or 28.7%. Net interest income increased to $4.1 million for
the quarter ended June 30, 2009 as compared to $3.4 million for the quarter
ended June 30, 2008, an increase of $642,000 or 18.6%. Net interest
income for the quarter and fiscal year ended June 30, 2009 was affected by the
increase in the volume of loans and securities complemented by the decrease in
rates paid on deposit accounts. Total average earning assets
increased $78.8 million to $413.8 million for the fiscal year ended June 30,
2009 compared to the fiscal year ended June 30, 2008. Total average
earning assets increased $77.0 million to $441.6 million for the quarter ended
June 30, 2009 compared to the quarter ended June 30, 2008. Net
interest rate spread increased 36 basis points to 3.54% for the year ended June
30, 2009 as compared to 3.18% for the year ended June 30, 2008. Net
interest rate spread increased 5 basis points to 3.48% for the quarter ended
June 30, 2009 as compared to 3.43% for the quarter ended June 30,
2008. Net interest margin increased 16 basis points to 3.80% for the
year ended June 30, 2009 as compared to 3.64% for the year ended June 30,
2008. Net interest margin decreased 8 basis points to 3.70% for the
quarter ended June 30, 2009 as compared to 3.78% for the quarter ended June 30,
2008.
Due to
the worsening economic climate, management continues to closely monitor asset
quality and adjust the level of the allowance for loan losses when
necessary. The provision for loan losses amounted to $2.0 million and
$581,000 for the year ended June 30, 2009 and 2008, respectively, an increase of
$1.4 million or 247.3%. The provision for loan losses amounted to
$254,000 and $132,000 for the quarters ended June 30, 2009 and 2008,
respectively, an increase of $122,000. Contributing to the increased
provision was continued growth in the loan portfolio, an increase in
nonperforming assets, and an increase in the amount of loan
charge-offs. Nonperforming assets amounted to $2.9 million and $1.9
million at June 30, 2009 and 2008, respectively, an increase of $1.0
million. Net charge-offs amounted to $486,000 and $179,000 at June
30, 2009 and 2008, respectively, an increase of $307,000. The
increase in the level of charge-offs and nonperforming assets reflected the
decline in the overall economy. As a result, the level of
allowance for loan losses to total loans receivable has been increased to 1.26%
as of June 30, 2009 as compared to 0.79% as of June 30, 2008.
Noninterest
income increased to approximately $6.1 million for the year ended June 30, 2009
compared to $4.6 million for the year ended June 30, 2008, an increase of $1.5
million. Noninterest income was flat at $1.2 million when
comparing the quarters ended June 30, 2009 and
2008. Noninterest income for the year ended June 30, 2009
reflected a one time cash payment of approximately $1.7 million ($1.0 million
net of tax) received from TransFirst LLC. This payment was the result
of The Bank of Greene County transferring its merchant bank card processing
business to TransFirst LLC. Also reflected in noninterest
income for the year ended June 30, 2009 was an impairment charge of $220,000
($135,000 net of tax) related to the other-than-temporary impairment of a Lehman
Brothers Holdings, Inc. debt security held by the Company.
Noninterest
expense increased $1.3 million or 10.6% to $13.6 million for the year ended June
30, 2009 as compared to $12.3 million for the year ended June 30,
2008. Noninterest expense increased $292,000 or 8.9% to $3.6 million
for the quarter ended June 30, 2009 as compared to $3.3 million for the quarter
ended June 30, 2008. The most significant increase in noninterest
expense was in FDIC insurance premiums. During the quarter ended June
30, 2009, the FDIC imposed a special assessment on all insured financial
institutions equal to five cents on the insured Bank’s assets less Tier 1
capital as of June 30, 2009 to be paid on September 30, 2009. As a
result of this special assessment, along with increases in premium rates and a
$77.3 million increase in deposit balances during fiscal 2009, FDIC insurance
expense totaled $670,000 for the year ended June 30, 2009 compared to $52,000
for the year ended June 30, 2008. FDIC insurance expense totaled
$539,000 and $14,000 for the quarters ended June 30, 2009 and 2008,
respectively. Salaries and employee benefits increased $328,000 to
$6.9 million for the year ended June 30, 2009 as compared to $6.6 million for
the year ended June 30, 2008 and were primarily related to compensation expense
related to the 2008 Stock Option Plan, bonuses and an increase in the number of
employees as a result of the opening of new
branches. Salaries and employee benefits decreased
$422,000 to $1.4 million for the quarter ended June 30, 2009 as compared to $1.8
million for the quarter ended June 30, 2008. This primarily was a
result of modifying the defined benefit pension plan to a single-employer plan
from the existing multi-employer plan, which resulted in a reduction of pension
expense by $308,000.
Total
assets grew $80.9 million or 21.3% to $460.5 million at June 30, 2009 as
compared to $379.6 million at June 30, 2008. Securities classified as
available for sale and classified as held to maturity increased $49.5 million in
the aggregate to $161.6 million at June 30, 2009 as compared to $112.1 million
at June 30, 2008. Loans increased $29.5 million or 12.4% to $267.9
million at June 30, 2009 as compared to $238.4 million at June 30,
2008. This growth was primarily in residential and commercial real
estate and business loans. Funding the growth in assets was
deposit growth of $77.3 million, or 24.1%, to $398.7 million at June 30, 2009 as
compared to $321.4 million at June 30, 2008. Of the $77.3
million growth in deposits, $41.9 million was in new municipal deposits at the
Greene County Commercial Bank, and $35.4 million was in personal
interest-bearing checking accounts, savings and time deposits, which grew by
$10.8 million, $9.8 million and $15.1 million, respectively.
The
Company’s capital ratios remain strong with total shareholders’ equity of $40.3
million at June 30, 2009, or 8.7% of total assets. The capital ratios
of the bank significantly exceeded the “well capitalized” regulatory
standard. Given the Company’s strong financial and liquidity
positions, management determined that participation in the Troubled Asset Relief
Program (TARP) Capital Purchase Program (CPP) was not
warranted. Consequently, the Company elected to withdraw its
application for participation in this program.
Headquartered
in Catskill, New York, the Company provides full-service community-based banking
in its eleven branch offices located in Greene, Columbia and Albany
Counties. On January 12, 2009, the Company opened its newest branch,
located on Route 9W in Ravena in southern Albany County.
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
|
|
|
At
or for the
|
|
| |
|
|
|
Year
Ended June 30,
|
|
|
Three
Months Ended June 30,
|
|
| |
|
|
|
2009
|
|
|
2008
|
|
|
2009
|
|
|
2008
|
|
|
Dollars
In thousands,
except
share and per share data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
$ |
22,482 |
|
|
$ |
19,534 |
|
|
$ |
5,658 |
|
|
$ |
5,135 |
|
|
Interest
expense
|
|
|
|
6,752 |
|
|
|
7,344 |
|
|
|
1,568 |
|
|
|
1,687 |
|
|
Net
interest income
|
|
|
|
15,730 |
|
|
|
12,190 |
|
|
|
4,090 |
|
|
|
3,448 |
|
|
Provision
for loan losses
|
|
|
|
2,018 |
|
|
|
581 |
|
|
|
254 |
|
|
|
132 |
|
|
Noninterest
income
|
|
|
|
6,097 |
|
|
|
4,577 |
|
|
|
1,162 |
|
|
|
1,174 |
|
|
Noninterest
expense
|
|
|
|
13,557 |
|
|
|
12,301 |
|
|
|
3,557 |
|
|
|
3,265 |
|
|
Income
before taxes
|
|
|
|
6,252 |
|
|
|
3,885 |
|
|
|
1,441 |
|
|
|
1,225 |
|
|
Tax
provision
|
|
|
|
2,167 |
|
|
|
1,165 |
|
|
|
353 |
|
|
|
384 |
|
|
Net
Income
|
|
|
$ |
4,085 |
|
|
$ |
2,720 |
|
|
$ |
1,088 |
|
|
$ |
841 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
EPS
|
|
|
$ |
1.00 |
|
|
$ |
0.66 |
|
|
$ |
0.26 |
|
|
$ |
0.21 |
|
|
Weighted
average
shares
outstanding
|
|
|
|
4,101,378 |
|
|
|
4,121,260 |
|
|
|
4,105,312 |
|
|
|
4,091,558 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS
|
|
|
$ |
0.99 |
|
|
$ |
0.65 |
|
|
$ |
0.26 |
|
|
$ |
0.20 |
|
|
Weighted
average
diluted
shares outstanding
|
|
|
|
4,121,228 |
|
|
|
4,157,910 |
|
|
|
4,124,748 |
|
|
|
4,118,282 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
declared per share 1
|
|
|
$ |
0.68 |
|
|
$ |
0.70 |
|
|
$ |
0.17 |
|
|
$ |
0.16 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
on average assets
|
|
|
|
0.94 |
% |
|
|
0.76 |
% |
|
|
0.94 |
% |
|
|
0.87 |
% |
|
Return
on average equity
|
|
|
|
10.77 |
% |
|
|
7.52 |
% |
|
|
10.99 |
% |
|
|
9.23 |
% |
|
Net
interest rate spread
|
|
|
|
3.54 |
% |
|
|
3.18 |
% |
|
|
3.48 |
% |
|
|
3.43 |
% |
|
Net
interest margin
|
|
|
|
3.80 |
% |
|
|
3.64 |
% |
|
|
3.70 |
% |
|
|
3.78 |
% |
|
Non-performing
assets
to
total assets
|
|
|
|
0.64 |
% |
|
|
0.51 |
% |
|
|
|
|
|
|
|
|
|
Non-performing
loans
to
total loans
|
|
|
|
1.01 |
% |
|
|
0.81 |
% |
|
|
|
|
|
|
|
|
|
Allowance
for loan losses to
non-performing
loans
|
|
|
|
126.06 |
% |
|
|
97.37 |
% |
|
|
|
|
|
|
|
|
|
Allowance
for loan losses to
total
loans
|
|
|
|
1.26 |
% |
|
|
0.79 |
% |
|
|
|
|
|
|
|
|
|
Shareholders’
equity to total assets
|
|
|
|
8.74 |
% |
|
|
9.55 |
% |
|
|
|
|
|
|
|
|
|
Dividend
payout ratio1
|
|
|
|
68.00 |
% |
|
|
106.06 |
% |
|
|
|
|
|
|
|
|
|
Actual
dividends paid to net income
|
|
|
|
29.94 |
% |
|
|
47.10 |
% |
|
|
|
|
|
|
|
|
|
Book
value per share
|
|
|
$ |
9.81 |
|
|
$ |
8.87 |
|
|
|
|
|
|
|
|
|
1 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. It
should be noted effective December 1, 2007, the Company changed to a quarterly
rather than semi-annual dividend.
| |
|
|
|
As
of June 30, 2009
|
|
|
As
of June 30, 2008
|
|
|
Dollars
In thousands, except share data
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Total
cash and cash equivalents
|
|
|
$ |
9,443 |
|
|
$ |
8,662 |
|
|
Long
term certificate of deposit
|
|
|
|
1,000 |
|
|
|
1,000 |
|
|
Securities-
available for sale, at fair value
|
|
|
|
98,271 |
|
|
|
96,692 |
|
|
Securities-
held to maturity, at amortized cost
|
|
|
|
63,336 |
|
|
|
15,457 |
|
|
Federal
Home Loan Bank stock, at cost
|
|
|
|
1,495 |
|
|
|
1,386 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Gross
loans receivable
|
|
|
|
271,001 |
|
|
|
240,146 |
|
|
Less: Allowance
for loan losses
|
|
|
|
(3,420 |
) |
|
|
(1,888 |
) |
|
Unearned
origination fees and costs, net
|
|
|
|
321 |
|
|
|
182 |
|
|
Net
loans receivable
|
|
|
|
267,902 |
|
|
|
238,440 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Premises
and equipment
|
|
|
|
15,274 |
|
|
|
15,108 |
|
|
Accrued
interest receivable
|
|
|
|
2,448 |
|
|
|
2,139 |
|
|
Prepaid
expenses and other assets
|
|
|
|
1,152 |
|
|
|
724 |
|
|
Foreclosed
real estate
|
|
|
|
215 |
|
|
|
--- |
|
|
Total
Assets
|
|
|
$ |
460,536 |
|
|
$ |
379,608 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing deposits
|
|
|
$ |
39,772 |
|
|
$ |
41,798 |
|
|
Interest
bearing deposits
|
|
|
|
358,957 |
|
|
|
279,633 |
|
|
Total
deposits
|
|
|
|
398,729 |
|
|
|
321,431 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Borrowings
from FHLB, short term
|
|
|
|
--- |
|
|
|
1,000 |
|
|
Borrowings
from FHLB, long term
|
|
|
|
19,000 |
|
|
|
19,000 |
|
|
Accrued
expenses and other liabilities
|
|
|
|
2,543 |
|
|
|
1,910 |
|
|
Total
liabilities
|
|
|
|
420,272 |
|
|
|
343,341 |
|
|
Total
shareholders’ equity
|
|
|
|
40,264 |
|
|
|
36,267 |
|
|
Total
liabilities and shareholders’ equity
|
|
|
$ |
460,536 |
|
|
$ |
379,608 |
|
|
Common
shares outstanding
|
|
|
|
4,105,312 |
|
|
|
4,095,528 |
|
|
Treasury
shares
|
|
|
|
200,358 |
|
|
|
210,142 |
|
Contact: Donald
Gibson, President and CEO or Michelle Plummer, Executive Vice President, CFO
& COO
Phone: 518-943-2600