form8knovember12007.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): November 1, 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
November 1, 2007, Greene County Bancorp, Inc. issued a press release disclosing
financial results at and for the fiscal quarters ended September 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 November 1, 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: November
1,
2007 By: /s/
Donald E.
Gibson
Donald
E. Gibson
President
and Chief Executive
Officer
Greene
County Bancorp, Inc.
Announces
Earnings
Catskill,
N.Y. -- (BUSINESS WIRE) – November 1, 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 quarter ended September 30, 2007. Net income for the
quarter ended September 30, 2007 amounted to $569,000 or $0.14 per basic and
diluted share as compared to $754,000 or $0.18 per basic and diluted share
for
the quarter ended September 30, 2006, a decrease of $185,000, or
24.5%. Net income for the quarter ended September 30, 2007 was
$200,000 or $0.05 per basic and diluted share higher when comparing net income
for the quarter ended June 30, 2007 which amounted to $369,000 or $0.09 per
basic and diluted share. When comparing the quarters ended September
30, 2007 and 2006, compression of net interest spread and margin contributed
to
the lower earnings. Noninterest expense resulting from the opening of
two new branch offices at the new Catskill Commons Plaza and in the Town of
Greenport also affected overall earnings when comparing the quarters ended
September 30, 2007 and 2006. The Company also increased its lending
staff during the third quarter of the 2007 fiscal year to increase its focus
on
meeting the financial needs of businesses within its market
area. During the quarter ended September 30, 2007, the Company did
make some progress in reducing noninterest expenses such as compensation, office
supplies and advertising when compared to the quarter ended June 30,
2007.
Net
interest income was $2.8 million for the quarter ended September 30, 2007,
which
increased by $112,000 from the same period ended September 30,
2006. Net interest spread decreased 20 basis points to 3.00% for the
quarter ended September 30, 2007 from 3.20% for the quarter ended September
30,
2006. Net interest margin decreased 13 basis points to 3.54% for the quarter
ended September 30, 2007 as compared to 3.67% for the quarter ended September
30, 2006. The most significant factor affecting net interest
spread and net interest margin was the flat to inverted yield curve experienced
over the last several quarters.
The
provision for loan losses amounted to $143,000 and $45,000 for the quarters
ended September 30, 2007 and 2006, respectively, an increase of
$98,000. 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 $29,000, or 116.0%, to $54,000 from $25,000 when comparing
the
quarters ended September 30, 2007 and 2006.
Noninterest
income amounted to $1.1 million for the quarter ended September 30, 2007 as
compared to $891,000 for the quarter ended September 30, 2006, an increase
of
$205,000 or 23.0%. Service charges on deposit accounts increased
$160,000 due to higher levels of insufficient funds charges collected as a
result of changes implemented in the Overdraft Privilege
Program. Debit card fees increased $44,000 or 31.7%, primarily due to
a higher volume of transactions.
Noninterest
expense amounted to $2.9 million for the quarter ended September 30, 2007 as
compared to $2.4 million for the quarter ended September 30, 2006, an increase
of $472,000 or 19.4%. Salaries and employee benefits increased
$142,000 when comparing quarters ended September 30, 2007 and
2006. This increase was primarily due 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. This increase was
partially offset by lower expenses related to the defined benefit pension plan
and ESOP plan, which decreased $30,000 and $12,000,
respectively. Occupancy expense and equipment and
furniture expense increased approximately $81,000 on a combined basis when
comparing the quarters ended September 30, 2007 and 2006 due to higher utility
costs, building maintenance and increased depreciation expense associated with
the opening of the new operations center in Catskill and the opening of two
new
branches in Catskill and Greenport. All other noninterest expenses,
in the aggregate, increased approximately $249,000, or 35.5% when comparing
the
quarters ended September 30, 2007 and 2006 due to increased costs related to
debit card transactions, marketing costs related to deposit product promotions,
and increased assessments resulting from the conversion of the bank from a
New
York State chartered financial institution to a Federally chartered
institution.
The
provision for income taxes directly
reflected the expected tax associated with the revenue generated for the given
year and certain regulatory requirements. The effective tax rate was
29.7% for the quarter ended September 30, 2007, compared to 29.0% for the
quarter ended September 30, 2006.
Total
assets of the Company were $339.1 million at September 30, 2007 as compared
to
$325.8 million at June 30, 2007, an increase of $13.3 million, or
4.1%. The loan portfolio increased $10.8 million to $218.1 million at
September 30, 2007. Real estate mortgages, both residential and
commercial, and home equity loans increased during the three-month
period. Funding the loan growth was an increase in deposits of $12.9
million.
Shareholders’
equity increased $385,000 to $35.8 million at September 30, 2007 from $35.4
million at June 30, 2007, as net income of $569,000 and other comprehensive
income of $455,000 were partially offset by cash dividends paid of
$462,000. Accumulated other comprehensive income increased as a
result of the mark-to-market of the available-for-sale investment portfolio,
net
of tax. The Company also recorded an adjustment reducing retained
earnings by $218,000 as a result of implementing FASB Interpretation No. 48,
“Accounting for Uncertainty in Income Taxes – an Interpretation of FASB
Statement No. 109”. 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 branch construction underway just outside the Village of Chatham
in
Columbia County, which is anticipated to open in January 2008.
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 Three
|
|
|
|
|
|
Months
Ended September 30,
|
|
|
|
|
|
2007
|
|
|
2006
|
|
In
thousands,
except
share and per share data
|
|
|
|
|
|
|
|
Interest
income
|
|
|
$ |
4,609
|
|
|
$ |
4,071
|
|
Interest
expense
|
|
|
|
1,848
|
|
|
|
1,422
|
|
Net
interest income
|
|
|
|
2,761
|
|
|
|
2,649
|
|
Provision
for loan losses
|
|
|
|
143
|
|
|
|
45
|
|
Noninterest
income
|
|
|
|
1,096
|
|
|
|
891
|
|
Noninterest
expense
|
|
|
|
2,905
|
|
|
|
2,433
|
|
Income
before taxes
|
|
|
|
809
|
|
|
|
1,062
|
|
Income
taxes
|
|
|
|
240
|
|
|
|
308
|
|
Net
Income
|
|
|
$ |
569
|
|
|
$ |
754
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
EPS
|
|
|
$ |
0.14
|
|
|
$ |
0.18
|
|
Weighted
average
shares
outstanding
|
|
|
|
4,137,556
|
|
|
|
4,117,643
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS
|
|
|
$ |
0.14
|
|
|
$ |
0.18
|
|
Weighted
average
diluted
shares outstanding
|
|
|
|
4,184,289
|
|
|
|
4,187,925
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
declared per share 1
|
|
|
$ |
0.25
|
|
|
$ |
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Financial Ratios
|
|
|
|
|
|
|
|
|
|
Return
on average assets
|
|
|
|
0.69 |
% |
|
|
0.98 |
% |
Return
on average equity
|
|
|
|
6.40 |
% |
|
|
8.90 |
% |
Net
interest rate spread
|
|
|
|
3.00 |
% |
|
|
3.20 |
% |
Net
interest margin
|
|
|
|
3.54 |
% |
|
|
3.67 |
% |
Non-performing
assets
to
total assets
|
|
|
|
0.24 |
% |
|
|
0.02 |
% |
Non-performing
loans
to
total loans
|
|
|
|
0.37 |
% |
|
|
0.03 |
% |
Allowance
for loan losses to
non-performing
loans
|
|
|
|
197.16 |
% |
|
|
2,704.08 |
% |
Allowance
for loan losses to
total
loans
|
|
|
|
0.73 |
% |
|
|
0.67 |
% |
Shareholders’
equity to total assets
|
|
|
|
10.56 |
% |
|
|
11.12 |
% |
Dividend
payout ratio1
|
|
|
|
89.29 |
% |
|
|
63.89 |
% |
Book
value per share
|
|
|
$ |
8.67
|
|
|
$ |
8.38
|
|
|
|
|
|
|
|
|
|
|
|
|
1
On
an annualized
basis the ratio of dividends per share divided by basic earnings per
share. 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. This calculation does not take into account the waiver of
dividends by Greene County Bancorp, MHC.
|
|
|
|
As
of September 30, 2007
|
|
|
As
of June 30, 2007
|
|
In
thousands, except share data
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Total
cash and cash equivalents
|
|
|
$ |
20,539
|
|
|
$ |
14,026
|
|
Investment
securities, at fair value
|
|
|
|
83,179
|
|
|
|
87,184
|
|
Federal
Home Loan Bank stock, at cost
|
|
|
|
657
|
|
|
|
657
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
loans receivable
|
|
|
|
219,618
|
|
|
|
208,705
|
|
Less: Allowance
for loan losses
|
|
|
|
(1,597 |
) |
|
|
(1,486 |
) |
Less: Unearned
origination fees and costs, net
|
|
|
|
85
|
|
|
|
61
|
|
Net
loans receivable
|
|
|
|
218,106
|
|
|
|
207,280
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises
and equipment
|
|
|
|
14,148
|
|
|
|
13,712
|
|
Accrued
interest receivable
|
|
|
|
1,859
|
|
|
|
1,955
|
|
Prepaid
expenses and other assets
|
|
|
|
653
|
|
|
|
1,012
|
|
Total
Assets
|
|
|
$ |
339,141
|
|
|
$ |
325,826
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and shareholders’ equity
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing deposits
|
|
|
$ |
41,638
|
|
|
$ |
44,020
|
|
Interest
bearing deposits
|
|
|
|
255,423
|
|
|
|
240,156
|
|
Total
deposits
|
|
|
|
297,061
|
|
|
|
284,176
|
|
|
|
|
|
|
|
|
|
|
|
|
FHLB
borrowing
|
|
|
|
5,000
|
|
|
|
5,000
|
|
Accrued
expenses and other liabilities
|
|
|
|
1,280
|
|
|
|
1,235
|
|
Total
liabilities
|
|
|
|
303,341
|
|
|
|
290,411
|
|
Total
shareholders’ equity
|
|
|
|
35,800
|
|
|
|
35,415
|
|
Total
liabilities and shareholders’ equity
|
|
|
$ |
339,141
|
|
|
$ |
325,826
|
|
Common
shares outstanding
|
|
|
|
4,151,286
|
|
|
|
4,151,066
|
|
Treasury
shares
|
|
|
|
154,384
|
|
|
|
154,604
|
|
Contact: Donald
Gibson, President and CEO or Michelle Plummer, Executive Vice President, CFO
& COO
Phone: 518-943-2600