form8kmay042007
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): May
4,
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
May 4,
2007, Greene County Bancorp, Inc. issued a press release disclosing financial
results at and for the nine-months and quarter ended March 31, 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.
Exhibit
No. Description
99.1 Press
release dated May 4, 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:
May
4, 2007
By:
/s/ J. Bruce Whittaker
J.
Bruce
Whittaker
President
and Chief Executive Officer
Greene
County Bancorp, Inc.
Announces
Earnings
Catskill,
N.Y. -- (BUSINESS WIRE) - May 4, 2007-- Greene County Bancorp, Inc. (the
“Company”) (NASDAQ: GCBC), the holding company for The Bank of Greene County and
its’ wholly-owned subsidiary Greene County Commercial Bank, today reported net
income for the nine months and quarter ended March 31, 2007. Net income for
the
nine months ended March 31, 2007 amounted to $1.9 million or $0.46 per basic
and
$0.45 per diluted share as compared to $1.8 million or $0.43 per basic and
$0.42
per diluted share for the nine months ended March 31, 2006, an increase of
$133,000, or 7.6%. Net income for the quarter ended March 31, 2007 amounted
to
$379,000 or $0.09 per basic and diluted share as compared to $574,000 or $0.14
per basic and diluted share for the quarter ended March 31, 2006, a decrease
of
$195,000, or 34.0%. The increase for the nine month period 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.
The
decrease for the quarter end period reflects the compression of net interest
spread and margin as well as higher noninterest expenses resulting from the
opening of two new branch offices at the new Catskill Commons Plaza and in
the
Town of Greenport. The Company has also increased its lending staff during
the
quarter ended March 31, 2007 to increase its focus on meeting the financial
needs of businesses within its market area.
Net
interest income was $7.9 million and $2.6 million for the nine months and
quarter ended March 31, 2007, respectively, which decreased by $134,000 and
$70,000 from the same periods ended March 31, 2006. Net interest spread
decreased 26 basis points to 3.52% for the nine months ended March 31, 2007
from
3.78% for the nine months ended March 31, 2006, and 30 basis points to 3.46%
for
the quarter ended March 31, 2007 as compared to 3.76% for the quarter ended
March 31, 2006. Net interest margin decreased 24 basis points to 3.63% for
the
nine months ended March 31, 2007 from 3.87% for the nine months ended March
31,
2006, and 28 basis points to 3.57% for the quarter ended March 31, 2007 as
compared to 3.85% for the quarter ended March 31, 2006. Rates have remained
relatively unchanged, continuing an inverted 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 $194,000 and $100,000 for the nine months
ended March 31, 2007 and 2006, respectively, an increase of $94,000. The
provision for loan losses amounted to $83,000 and $40,000 for the quarters
ended
March 31, 2007 and 2006, respectively, an increase of $43,000. The increase
in
the level of provision was partially a result of growth in the loan portfolio
and an increase in the amount of charge-offs, which were associated with the
overdraft protection program. Net charge-offs associated with the overdraft
protection program increased $41,000, or 128.1%, to $73,000 from $32,000 when
comparing the nine months ended March 31, 2007 and 2006.
Noninterest
income amounted to $2.9 million for the nine months ended March 31, 2007 as
compared to $2.3 million for the nine months ended March 31, 2006, an increase
of $609,000 or 26.2%. A pretax 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. Noninterest income
amounted to $840,000 for the quarter ended March 31, 2007 as compared to
$762,000 for the quarter ended March 31, 2006, an increase of $78,000 or 10.2%.
Service charges on deposit accounts increased $236,000 and $92,000 for the
nine
months and quarter ended March 31, 2007, respectively, due to higher levels
of
insufficient funds charges.
Noninterest
expense amounted to $8.0 million for the nine months ended March 31, 2007 as
compared to $7.8 million for the nine months ended March 31, 2006, an increase
of $205,000 or 2.6%, and $2.9 million for the quarter ended March 31, 2007
as
compared to $2.6 million for the quarter ended March 31, 2006, an increase
of
$295,000 or 11.3%. Salaries and employee benefits increased $25,000 and $90,000
when comparing the nine months and quarter ended March 31, 2007 and 2006.
Retirement expense decreased approximately $143,000 and $40,000 for the nine
months and quarter ended March 31, 2007, respectively, 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 $39,000 and $19,000 for the nine months and
quarter ended March 31, 2007, respectively, resulting from increases in our
employer match beginning July 1, 2006 and January 1, 2007. Also contributing
to
the increase in salaries and employee benefits were higher salaries expenses,
which increased $164,000 and $132,000 for the nine months and quarter ended
March 31, 2007, respectively, 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 increased approximately $138,000 and $45,000, respectively,
when comparing the nine months ended March 31, 2007 and 2006, and $74,000 and
$44,000, respectively, when comparing the quarter ended March 31, 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. Other noninterest expenses decreased approximately
$86,000 and $5,000 when comparing the nine months and quarters ended March
31,
2007 and 2006, respectively. These expenses were higher for the nine months
ended March 31, 2006 as a result of expenses associated with the data processing
system conversion such as training costs, licensing fees, and professional
fees.
The
provisions for income taxes reflect the expected tax associated with the revenue
generated for the given periods and certain regulatory requirements. The
effective tax rate was 28.1% for the nine months ended March 31, 2007, compared
to 28.3% for the nine months ended March 31, 2006. The effective tax rate was
17.4% for the quarter ended March 31, 2007, compared to 27.2% for the quarter
ended March 31, 2006. The increase in effective rate for the nine months ended
March 31, 2007 was the result of increased pre-tax income and the resultant
reduced percentage of tax exempt interest included in pre-tax income.
Conversely, the decrease in effective rate for the quarter ended March 31,
2007
was the result of decreased pre-tax income and the resultant increased
percentage of tax exempt interest included in pre-tax income.
Total
assets of the Company were $321.4 million at March 31, 2007 as compared to
$307.6 million at June 30, 2006, an increase of $13.8 million, or 4.5%. The
loan
portfolio increased $14.8 million to $204.9 million at March 31, 2007. Real
estate mortgages, both residential and commercial, and home equity loans
increased during the nine-month period. Funding the loan growth was an increase
in deposits of $12.0 million and principal payments and maturities of securities
of $15.8 million, partially offset by purchases of securities of $7.6 million.
Premises and equipment increased $2.9 million due to the new operations center
in Catskill and new branches 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 increased $1.8 million to $35.4 million at March 31, 2007 from $33.6
million at June 30, 2006, as net income of $1.9 million and other comprehensive
income of $595,000 were partially offset by cash dividends paid of $885,000.
Accumulated other comprehensive income 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.
Headquartered
in Catskill, New York, the Company provides full-service community-based banking
in its nine branch offices located in Catskill, Cairo, Coxsackie, Greenville,
Hudson, Tannersville, Westerlo, and Greenport New York. The Company has also
recently purchased a parcel of land in the Town of Ghent, just outside the
Village of Chatham in Columbia County. Branch plans are currently being
developed for this property.
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
and for the Nine
|
At
and for the Three
|
| |
|
Months
Ended March 31,
|
Months
Ended March 31,
|
| |
|
|
2007
|
|
|
2006
|
|
|
2007
|
|
|
2006
|
|
|
In
thousands,
except
share and per share data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
$
|
12,531
|
|
$
|
10,921
|
|
$
|
4,237
|
|
$
|
3,732
|
|
|
Interest
expense
|
|
|
4,653
|
|
|
2,909
|
|
|
1,638
|
|
|
1,063
|
|
|
Net
interest income
|
|
|
7,878
|
|
|
8,012
|
|
|
2,599
|
|
|
2,669
|
|
|
Provision
for loan losses
|
|
|
194
|
|
|
100
|
|
|
83
|
|
|
40
|
|
|
Noninterest
income
|
|
|
2,934
|
|
|
2,325
|
|
|
840
|
|
|
762
|
|
|
Noninterest
expense
|
|
|
7,991
|
|
|
7,786
|
|
|
2,897
|
|
|
2,602
|
|
|
Income
before taxes
|
|
|
2,627
|
|
|
2,451
|
|
|
459
|
|
|
789
|
|
|
Income
taxes
|
|
|
737
|
|
|
694
|
|
|
80
|
|
|
215
|
|
|
Net
Income
|
|
$
|
1,890
|
|
$
|
1,757
|
|
$
|
379
|
|
$
|
574
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
EPS
|
|
$
|
0.46
|
|
$
|
0.43
|
|
$
|
0.09
|
|
$
|
0.14
|
|
|
Weighted
average
shares
outstanding
|
|
|
4,122,500
|
|
|
4,095,406
|
|
|
4,127,946
|
|
|
4,103,510
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS
|
|
$
|
0.45
|
|
$
|
0.42
|
|
$
|
0.09
|
|
$
|
0.14
|
|
|
Weighted
average
diluted
shares outstanding
|
|
|
4,192,002
|
|
|
4,178,548
|
|
|
4,195,761
|
|
|
4,179,729
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
declared per share 1
|
|
$
|
0.48
|
|
$
|
0.45
|
|
$
|
---
|
|
$
|
---
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Financial Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
on average assets
|
|
|
0.81
|
%
|
|
0.80
|
%
|
|
0.48
|
%
|
|
0.77
|
%
|
|
Return
on average equity
|
|
|
7.28
|
%
|
|
7.08
|
%
|
|
4.30
|
%
|
|
6.86
|
%
|
|
Net
interest rate spread
|
|
|
3.52
|
%
|
|
3.78
|
%
|
|
3.46
|
%
|
|
3.76
|
%
|
|
Net
interest margin
|
|
|
3.63
|
%
|
|
3.87
|
%
|
|
3.57
|
%
|
|
3.85
|
%
|
|
Non-performing
assets
to
total assets
|
|
|
0.36
|
%
|
|
0.24
|
%
|
|
|
|
|
|
|
|
Non-performing
loans
to
total loans
|
|
|
0.56
|
%
|
|
0.39
|
%
|
|
|
|
|
|
|
|
Allowance
for loan losses to
non-performing
loans
|
|
|
124.20
|
%
|
|
178.07
|
%
|
|
|
|
|
|
|
|
Allowance
for loan losses to
total
loans
|
|
|
0.70
|
%
|
|
0.71
|
%
|
|
|
|
|
|
|
|
Shareholders’
equity to total assets
|
|
|
11.01
|
%
|
|
11.24
|
%
|
|
|
|
|
|
|
|
Dividend
payout ratio1
|
|
|
78.26
|
%
|
|
78.49
|
%
|
|
|
|
|
|
|
|
Book
value per share
|
|
$
|
8.57
|
|
$
|
8.19
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Greene
County Bancorp, MHC, 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.
| |
|
|
As
of March 31, 2007
|
|
|
As
of June 30, 2006
|
|
|
In
thousands, except share data
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Total
cash and cash equivalents
|
|
$
|
19,952
|
|
$
|
15,852
|
|
|
Investment
securities, at fair value
|
|
|
79,390
|
|
|
87,267
|
|
|
Federal
Home Loan Bank stock, at cost
|
|
|
643
|
|
|
643
|
|
| |
|
|
|
|
|
|
|
|
Gross
loans receivable
|
|
|
206,251
|
|
|
191,429
|
|
|
Less:
Allowance for loan losses
|
|
|
(1,437
|
)
|
|
(1,314
|
)
|
|
Less:
Unearned origination fees and costs, net
|
|
|
51
|
|
|
(22
|
)
|
|
Net
loans receivable
|
|
|
204,865
|
|
|
190,093
|
|
| |
|
|
|
|
|
|
|
|
Premises
and equipment
|
|
|
13,703
|
|
|
10,805
|
|
|
Accrued
interest receivable
|
|
|
1,901
|
|
|
1,736
|
|
|
Prepaid
expenses and other assets
|
|
|
951
|
|
|
1,169
|
|
|
Total
Assets
|
|
$
|
321,405
|
|
$
|
307,565
|
|
| |
|
|
|
|
|
|
|
|
Liabilities
and shareholders’ equity
|
|
|
|
|
|
|
|
|
Noninterest
bearing deposits
|
|
$
|
42,008
|
|
$
|
41,503
|
|
|
Interest
bearing deposits
|
|
|
238,205
|
|
|
226,747
|
|
|
Total
deposits
|
|
|
280,213
|
|
|
268,250
|
|
| |
|
|
|
|
|
|
|
|
FHLB
borrowing
|
|
|
5,000
|
|
|
5,000
|
|
|
Accrued
expenses and other liabilities
|
|
|
820
|
|
|
734
|
|
|
Total
liabilities
|
|
|
286,033
|
|
|
273,984
|
|
|
Total
shareholders’ equity
|
|
|
35,372
|
|
|
33,581
|
|
|
Total
liabilities and shareholders’ equity
|
|
$
|
321,405
|
|
$
|
307,565
|
|
|
Common
shares outstanding
|
|
|
4,150,066
|
|
|
4,145,246
|
|
|
Treasury
shares
|
|
|
155,604
|
|
|
160,424
|
|
Contact: J.
Bruce
Whittaker, President and CEO or Michelle Plummer, CFO and Treasurer
Phone: 518-943-2600