form8kaugust022007.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): August 2, 2007
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
August
2, 2007, Greene County Bancorp, Inc. issued a press release disclosing financial
results at and for the fiscal year and quarter ended June 30, 2007 and 2006.
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 August
2, 2007
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: August
2,
2007 By:
/s/ Donald E.
Gibson
Donald
E. Gibson
President
and Chief Executive
Officer
Greene
County Bancorp, Inc.
Announces
Fiscal Year and Quarterly Earnings
Catskill,
N.Y. -- (BUSINESS WIRE) – August 2, 2007-- Greene County Bancorp, Inc. (the
“Company”) (NASDAQ: GCBC), the holding company for The Bank of Greene County
(the “Bank”) and its’ wholly-owned subsidiary Greene County Commercial Bank,
today reported net income for the quarter and fiscal year ended June 30,
2007. Net income for the fiscal year ended June 30, 2007
amounted to $2.26 million, or $0.55 per basic and $0.54 per diluted share as
compared to $2.24 million, or $0.55 per basic and $0.54 per diluted share,
an
increase of $16,000 or 0.7%. Net income for the quarter ended June
30, 2007 amounted to $369,000 or $0.09 per basic and diluted share as compared
to $486,000, or $0.12 per basic and diluted share for the quarter ended June
30,
2006, a decrease of $117,000, or 24.1%. Net income for the quarter
and fiscal year was impacted by lower net interest income resulting from a
narrowing of the interest rate spread and margin, and by increased operating
expenses associated with additional commercial lending staff as well as the
opening of two new branch locations during the third quarter of fiscal
2007.
Net
interest income decreased to $10.5 million for the year ended June 30, 2007
as
compared to $10.7 million for the year ended June 30, 2006, a decline of
$145,000 or 1.4% when comparing periods. Net interest income was
unchanged at $2.7 million for the quarters ended June 30, 2007 and
2006. The flat to inverted yield curve was the leading factor in the
net interest income position. Net interest spread decreased 28 basis
points to 3.48% as compared to 3.76% when comparing the years ended June 30,
2007 to 2006 and decreased 31 basis points to 3.39% as compared to 3.70% when
comparing the quarters ended June 30, 2007 and 2006. Net interest
margin decreased 25 basis points to 3.60% as compared to 3.85% when comparing
the years ended June 30, 2007 and 2006 and decreased 29 basis points to 3.51%
as
compared to 3.80% when comparing the quarters ended June 30, 2007 and
2006. The decline was primarily due to the increase in average rate
paid on interest-bearing liabilities, which include NOW accounts, savings
deposits, money market accounts, certificates of deposit and
borrowings. The rate paid on interest-bearing liabilities increased
73 basis points to 2.31% for the year ended June 30, 2007 as compared to 1.58%
for the year ended June 30, 2006. The rate paid on interest-bearing
liabilities increased 63 basis points to 2.47% for the quarter ended June 30,
2007 as compared to 1.84% for the quarter ended June 30, 2006. The
increased rate paid on interest-bearing liabilities was partially offset by
increased loan volume and higher yielding interest-earning
assets. Average loans increased $24.5 million between the fiscal
years ended June 30, 2006 and 2007 to $200.1 million. The average
yield on interest-earning assets increased 45 basis points to 5.79% for the
fiscal year ended June 30, 2007 as compared to 5.34% for the fiscal year ended
June 30, 2006. The average yield on interest-earning assets increased
32 basis points to 5.86% for the quarter ended June 30, 2007 as compared to
5.54% for the quarter ended June 30, 2006.
The
provision for loan losses increased to $279,000 for the fiscal year ended June
30, 2007 as compared to $200,000 for the fiscal year ended June 30,
2006. Loan growth has contributed to the higher provision
levels. 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 protection
program. Net charge-offs associated with the overdraft protection
program increased $46,000, or 87.5%, to $98,000 when comparing the years ended
June 30, 2007 and 2006. The provision for loan losses decreased to
$85,000 for the quarter ended June 30, 2007 as compared to $100,000 for the
quarter ended June 30, 2006. The higher provision in the quarter
ended June 30, 2006 was the result of a charge-off for approximately
$57,000.
Noninterest
income amounted to $3.9 million and $3.1 million for the fiscal years ended
June
30, 2007 and 2006, respectively, an increase of $829,000, or
26.6%. Noninterest income amounted to $1.0 million and $787,000 for
the quarters ended June 30, 2007 and 2006, respectively, an increase of
$220,000, or 28.0%. Fees earned from debit card transactions have
increased significantly due to more transaction volume, amounting to $611,000
for the year ended June 30, 2007 as compared to $510,000 for the year ended
June
30, 2006, an increase of $101,000, or 19.8%. Also contributing to
this increase was income from service charges which increased $381,000, or
21.4%, to $2.2 million for fiscal year 2007 compared to $1.8 million for fiscal
year 2006 due to higher levels of insufficient funds charges collected as a
result of changes implemented in the Overdraft Privilege Program. The
Company also recognized a pretax gain of approximately $257,000 related to
the
sale of the old Coxsackie branch building during fiscal
2007. No gains or losses were recognized in either year
on sales of investment securities.
Noninterest
expense amounted to $11.0 million for the fiscal year ended June 30, 2007 as
compared to $10.5 million for the fiscal year ended June 30, 2006, an increase
of $509,000, or 4.8%. Noninterest expense amounted to $3.0
million for the quarter ended June 30, 2007 as compared to $2.7 million for
the
quarter ended June 30, 2006, an increase of $304,000, or
11.1%. Salaries and employee benefits decreased $73,000 when
comparing the fiscal years ended June 30, 2007 and 2006, and $98,000 when
comparing the quarters ended June 30, 2007 and
2006. Retirement expense decreased $483,000 for the
fiscal year ended June 30, 2007 primarily as a result of discontinuing the
accrual of benefits under the defined benefit pension plan beginning July 1,
2006. This decrease was partially offset by an increase in 401(k)
contribution expense of $52,000 for the fiscal year ended June 30, 2007
resulting from increases in employer match beginning July 1, 2006 and January
1,
2007. Also offsetting this decrease were higher salaries expenses,
which increased by $415,000 for the fiscal year ended June 30, 2007 due
primarily to the staffing of two new branch offices which opened in February
and
March 2007 as well as several new positions within the commercial lending
department. Occupancy expense and equipment and furniture expense
combined increased approximately $294,000, or 21.1%, when comparing the fiscal
years ended June 30, 2007 and 2006, and $111,000, or 31.3%, when comparing
the
quarters ended June 30, 2007 and 2006, due to higher utility costs, building
maintenance and increased depreciation expense associated with the relocated
Cairo and Coxsackie branches, the opening of the new operations center in
Catskill and the opening of two new branches in Catskill and
Greenport. All other noninterest expenses increased $288,000, or
9.1%, and $291,000, or 39.5%, when comparing the fiscal year and quarters ended
June 30, 2007 and 2006, respectively, due to increased marketing costs, office
supplies and various other costs associated with the opening of two new branch
locations, increased legal and professional fees and assessments resulting
from
the conversion of the bank from a New York State chartered financial institution
to a Federally chartered institution.
The
effective tax rate was 28.7% for the year ended June 30, 2007, compared to
27.0%
for the year ended June 30, 2006.
Total
assets of the Company were $325.8 million at June 30, 2007 as compared to $307.6
million at June 30, 2006, an increase of $18.2 million, or
5.9%. The most significant growth occurred in net loans, which
increased $17.2 million, or 9.0%, to $207.3 million at June 30, 2007 as compared
to $190.1 million at June 30, 2006. Net loans represented 63.6% of
the asset composition at June 30, 2007 as compared to 61.8% at prior fiscal
year
end. Deposit growth of $15.9 million and reductions in cash and cash
equivalents of $1.8 million helped fund the $17.2 million growth in net loans,
and the net additions of premises and equipment of $2.9 million during the
fiscal year ended June 30, 2007. The opening of two new full service branches
as
well as the continued increase in the customer base within the commercial bank
subsidiary contributed to this growth in deposits.
Shareholders’
equity increased to $35.4 million at June 30, 2007 from $33.6 million at June
30, 2006, as net income of $2.26 million was partially offset by dividends
paid
of $885,000. Accumulated other comprehensive income increased
$347,000 as a result of the mark-to-market of the available-for-sale investment
portfolio, net of tax. The increase 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 Plan.
Headquartered
in Catskill, New York, the Company serves Greene and Columbia Counties, and
southern Albany County, New York from nine full-service branch offices in
Catskill, Cairo, Coxsackie, Greenport, Greenville, Hudson, Tannersville and
Westerlo. The Bank of Greene County also has a branch office under construction
outside the Village of Chatham in Columbia County. The Company’s
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.
|
For
the
|
For
the
|
For
the
|
For
the
|
|
|
Twelve
Months
|
Twelve
Months
|
Three
Months
|
Three
Months
|
|
|
Ended
|
Ended
|
Ended
|
Ended
|
|
|
June
30, 2007
|
June
30, 2006
|
June
30, 2007
|
June
30, 2006
|
|
(In
thousands,
except
share and per share data)
|
|
|
|
|
Interest
income
|
$16,985
|
$14,825
|
$4,454
|
$3,904
|
|
Interest
expense
|
6,442
|
4,137
|
1,789
|
1,228
|
|
Net
interest income
|
10,543
|
10,688
|
2,665
|
2,676
|
|
Provision
for loan loss
|
279
|
200
|
85
|
100
|
|
Noninterest
income
|
3,941
|
3,112
|
1,007
|
787
|
|
Noninterest
expense
|
11,037
|
10,528
|
3,046
|
2,742
|
|
Income
before taxes
|
3,168
|
3,072
|
541
|
621
|
|
Tax
provision
|
909
|
829
|
172
|
135
|
|
Net
Income
|
$2,259
|
$2,243
|
$369
|
$486
|
|
|
|
|
|
|
|
Basic
EPS
|
$0.55
|
$0.55
|
$0.09
|
$0.12
|
|
Weighted
average shares outstanding
|
4,125,126
|
4,099,857
|
4,133,032
|
4,113,261
|
|
|
|
|
|
|
|
Diluted
EPS
|
$0.54
|
$0.54
|
$0.09
|
$0.12
|
|
Weighted
average diluted shares outstanding
|
4,193,435
|
4,179,938
|
4,197,369
|
4,183,941
|
|
Dividend,
declared 1
|
$0.48
|
$0.45
|
$0.00
|
$0.00
|
|
|
|
|
|
As
of June 30, 2007
|
|
|
As
of June 30, 2006
|
|
(Dollars
in thousands)
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Total
cash and cash equivalents
|
|
|
$ |
14,026
|
|
|
$ |
15,852
|
|
Securities
available for sale, at fair value
|
|
|
|
87,184
|
|
|
|
87,267
|
|
Federal
Home Loan Bank stock, at cost
|
|
|
|
657
|
|
|
|
643
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
loans receivable
|
|
|
|
208,705
|
|
|
|
191,429
|
|
Less: Allowance
for loan losses
|
|
|
|
(1,486 |
) |
|
|
(1,314 |
) |
Less: Unearned
origination fees and costs, net
|
|
|
|
61
|
|
|
|
(22 |
) |
Net
loans receivable
|
|
|
|
207,280
|
|
|
|
190,093
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises
and equipment
|
|
|
|
13,712
|
|
|
|
10,805
|
|
Accrued
interest receivable
|
|
|
|
1,955
|
|
|
|
1,736
|
|
Prepaid
expenses and other assets
|
|
|
|
1,012
|
|
|
|
1,169
|
|
Total
Assets
|
|
|
$ |
325,826
|
|
|
$ |
307,565
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and shareholders’ equity
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing deposits
|
|
|
$ |
44,020
|
|
|
$ |
41,503
|
|
Interest
bearing deposits
|
|
|
|
240,156
|
|
|
|
226,747
|
|
Total
deposits
|
|
|
|
284,176
|
|
|
|
268,250
|
|
|
|
|
|
|
|
|
|
|
|
|
FHLB
borrowing
|
|
|
|
5,000
|
|
|
|
5,000
|
|
Accrued
expenses and other liabilities
|
|
|
|
1,235
|
|
|
|
734
|
|
Total
liabilities
|
|
|
|
290,411
|
|
|
|
273,984
|
|
Total
shareholders’ equity
|
|
|
|
35,415
|
|
|
|
33,581
|
|
Total
liabilities and shareholders’ equity
|
|
|
$ |
325,826
|
|
|
$ |
307,565
|
|
Common
shares outstanding
|
|
|
|
4,151,066
|
|
|
|
4,145,246
|
|
Treasury
stock, (shares at cost)
|
|
|
|
154,604
|
|
|
|
160,424
|
|
|
|
|
|
At
and For the
|
|
|
At
and For the
|
|
|
For
the
|
|
|
For
the
|
|
|
|
|
|
Twelve Months
|
|
|
Twelve
Months
|
|
|
Three
Months
|
|
|
Three
Months
|
|
|
|
|
|
Ended
|
|
|
Ended
|
|
|
Ended
|
|
|
Ended
|
|
|
|
|
|
June
30, 2007
|
|
|
June
30, 2006
|
|
|
June
30, 2007
|
|
|
June
30, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Financial Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
on average assets
|
|
|
|
0.72 |
% |
|
|
0.76 |
% |
|
|
0.45 |
% |
|
|
0.64 |
% |
Return
on average equity
|
|
|
|
6.49 |
% |
|
|
6.75 |
% |
|
|
4.17 |
% |
|
|
5.76 |
% |
Net
interest rate spread
|
|
|
|
3.48 |
% |
|
|
3.76 |
% |
|
|
3.39 |
% |
|
|
3.70 |
% |
Net
interest margin
|
|
|
|
3.60 |
% |
|
|
3.85 |
% |
|
|
3.51 |
% |
|
|
3.80 |
% |
Non-performing
assets to total assets
|
|
|
|
0.21 |
% |
|
|
0.00 |
% |
|
|
|
|
|
|
|
|
Non-performing
loans to total loans
|
|
|
|
0.33 |
% |
|
|
0.00 |
% |
|
|
|
|
|
|
|
|
Allowance
for loan loss to
non-performing
loans
|
|
|
|
217.89 |
% |
|
|
18,771.43 |
% |
|
|
|
|
|
|
|
|
Allowance
for loan loss to gross loans
|
|
|
|
0.71 |
% |
|
|
0.69 |
% |
|
|
|
|
|
|
|
|
Shareholders’
equity to total assets
|
|
|
|
10.87 |
% |
|
|
10.92 |
% |
|
|
|
|
|
|
|
|
Book
value per share
|
|
|
$ |
8.53
|
|
|
$ |
8.17
|
|
|
|
|
|
|
|
|
|
Dividend
payout ratio
adjusted
for MHC Waiver1
|
|
|
|
39.18 |
% |
|
|
36.70 |
% |
|
|
|
|
|
|
|
|
1
Greene
County
Bancorp, MHC 55.5% owner of
shares outstanding waives its right to receive dividends.
Contact: Donald
Gibson, President and CEO or Michelle Plummer, EVP, COO & CFO
Phone: 518-943-2600