form8kapril302008.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): April 30,
2008
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 April
30, 2008, Greene County Bancorp, Inc. issued a press release disclosing
financial results at and for the fiscal nine-months and quarters ended March 31,
2008 and 2007. 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 April 30,
2008
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
5,
2008 By: /s/ Donald E.
Gibson
Donald E. Gibson
President and Chief Executive
Officer
Greene
County Bancorp, Inc.
Announces
Earnings
Catskill,
N.Y. -- (BUSINESS WIRE) – April 30, 2008-- 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
nine months and quarter ended March 31, 2008. Net income for the nine
months ended March 31, 2008 amounted to $1.9 million or $0.45 per basic and
diluted share as compared to $1.9 million or $0.46 per basic and $0.45 per
diluted share for the nine months ended March 31, 2007. During the nine months
ended March 31, 2008, net interest income and noninterest income both increased
compared to the nine months ended March 31, 2007, but were offset by increases
in provision for loan losses and noninterest expense. Net income for
the quarter ended March 31, 2008 amounted to $684,000 or $0.17 per basic and
$0.16 per diluted share as compared to $379,000 or $0.09 per basic and diluted
share for the quarter ended March 31, 2007, an increase of $305,000, or
80.5%. The increase reflected higher net interest income and
noninterest income which was partially offset by an increased loan loss
provision and higher noninterest expenses during the quarter ended March 31,
2008.
Net
interest income increased $864,000 to $8.7 million for the nine months ended
March 31, 2008 compared to March 31, 2007 and increased $581,000 to $3.2 million
for the quarter ended March 31, 2008 compared to March 31,
2007. Net interest spread decreased 2 basis points
to 3.08% from 3.10% for the nine months ended March 31, 2008 and 2007,
respectively. Net interest margin decreased 3 basis points to 3.58% from 3.61%
for the same periods. Net interest spread increased 29 basis points
to 3.31% from 3.02% for the quarters ended March 31, 2008 and 2007,
respectively. Net interest margin increased 19 basis points to 3.74%
from 3.55% for the same periods. These increases for the quarter were
primarily due to the recent decreases in short-term interest rates implemented
by the Federal Open Market Committee, and the resulting repricing of many of the
Company’s interest-bearing liabilities.
The
provision for loan losses amounted to $449,000 and $194,000 for the nine months
ended March 31, 2008 and 2007, respectively, an increase of
$255,000. The provision for loan losses amounted to $171,000 and
$83,000 for the quarters ended March 31, 2008 and 2007, respectively, an
increase of $88,000. The increases in the level of provision were
partially a result of growth in the loan portfolio and an increase in the amount
of loan charge-offs, which was primarily associated with the overdraft
protection program. Net charge-offs associated with the overdraft
protection program increased $56,000, or 76.7% when comparing the nine months
ended March 31, 2008 and 2007. The Company has not been an originator
of “no documentation” mortgage loans and the loan portfolio does not include any
mortgage loans that the Company classifies as sub-prime.
Noninterest
income amounted to $3.4 million for the nine months ended March 31, 2008 as
compared to $2.9 million for the nine months ended March 31, 2007, an increase
of $469,000 or 16.0%. Noninterest income amounted to $1.1 million
compared to $840,000 for the quarters ended March 31, 2008 and 2007,
respectively. During the nine months ended March 31, 2007, a
pretax gain of approximately $257,000 related to the sale of the former
Coxsackie branch building was recognized in noninterest income. There
were no significant sales of assets during the nine months and quarter ended
March 31, 2008. Service charges on deposit accounts increased
$440,000 and $170,000 for the nine months and quarter ended March 31, 2008,
respectively, due to higher levels of insufficient funds charges as a result of
changes implemented in the Overdraft Privilege Program and more checking
accounts. Debit card fees increased $145,000 and $48,000,
respectively, for the same periods primarily due to a higher volume of
transactions.
Noninterest
expense amounted to $9.0 million for the nine months ended March 31, 2008 as
compared to $8.0 million for the nine months ended March 31, 2007, an increase
of $1.0 million or 12.5%. Noninterest expense amounted to $3.2
million for the quarter ended March 31, 2008 as compared to $2.9 million for the
quarter ended March 31, 2007, an increase of $285,000 or
9.8%. Salaries and employee benefits increased $437,000 when
comparing the nine months ended March 31, 2008 and 2007; and $119,000 when
comparing the quarters ended March 31, 2008 and 2007. These increases
were primarily due to an increase in the number of employees resulting from the
addition of three new branches (two branches which opened in the third quarter
of fiscal 2007 and one branch which opened in January 2008) and expansion of the
commercial lending department. Occupancy expense and equipment and
furniture expense, in the aggregate, increased approximately $135,000 when
comparing the nine months ended March 31, 2008 and 2007 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 three
new branches in Catskill, Greenport, and Chatham. All other
noninterest expenses, in the aggregate, increased approximately $473,000 and
$164,000 when comparing the nine months and quarters ended March 31, 2008 and
2007, respectively, due to increased costs related to debit card transactions
and the loyalty program, 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 reflected the expected tax associated with the
revenue generated for the given period and certain regulatory
requirements. The effective tax rate was 29.4% for the nine months
ended March 31, 2008, compared to 28.1% for the nine months ended March 31,
2007. The effective tax rate was 29.8% for the quarter ended March
31, 2008, compared to 17.4% for the quarter ended March 31, 2007. The
increases in effective rates for the periods ended March 31, 2008 were the
result of increased pre-tax income and the resultant decreased percentage of tax
exempt interest earned in total taxable income.
Total
assets of the Company increased to $379.6 million at March 31, 2008 from $325.8
million at June 30,
2007. Loans continued to grow from $207.3 million at June 30, 2007 to
$228.8 million at March 31, 2008. Securities, including both
available for sale and held to maturity, also increased during the nine months
ended March 31, 2008, and represented $107.1 million or 28.2% of total assets at
March 31, 2008 as compared to $87.2 million or 26.8% of total assets at June 30,
2007. Funding the growth in loans and securities was a $37.9 million
increase in deposits to $322.1 million and a $14.0 million increase in borrowed
funds to $19.0 million at March 31, 2008. The Company’s investments
in mortgage-backed securities are all U.S. government agency
sponsored. The Company has no exposure to sub-prime loans in its
securities portfolio.
Shareholders’
equity increased to $36.8 million at March 31, 2008 from $35.4 million at June
30, 2007, as net income of $1.9 million and other comprehensive income of $1.3
million were partially offset by dividends declared and paid of
$995,000. In addition, the Company recorded an adjustment, effective
July 1, 2007, 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.” On August 22, 2007, the
Board of Directors authorized a stock repurchase program pursuant to which the
Company intends to repurchase up to 5% of its outstanding shares (excluding
shares held by Greene County Bancorp, MHC, the Company’s mutual holding
company), or up to 92,346 shares. During the nine months ended March
31, 2008, the Company repurchased 46,258 shares at a cost of approximately
$583,000. As a result of this stock repurchase during the period,
treasury shares were increased to 195,282. Other changes in equity,
totaling a net increase of $5,000, 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 provides full-service community-based banking
in its ten branch offices located in Greene, Columbia and Albany
Counties. The Company has completed construction of its newest branch
just outside the Village of Chatham in Columbia County, which opened 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
or for the Nine
|
|
|
At
or for the Three
|
|
| |
|
|
|
Months
Ended March 31,
|
|
|
Months
Ended March 31,
|
|
| |
|
|
|
2008
|
|
|
2007
|
|
|
2008
|
|
|
2007
|
|
|
Dollars
In thousands,
except
share and per share data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
$ |
14,399 |
|
|
$ |
12,531 |
|
|
$ |
5,018 |
|
|
$ |
4,237 |
|
|
Interest
expense
|
|
|
|
5,657 |
|
|
|
4,653 |
|
|
|
1,838 |
|
|
|
1,638 |
|
|
Net
interest income
|
|
|
|
8,742 |
|
|
|
7,878 |
|
|
|
3,180 |
|
|
|
2,599 |
|
|
Provision
for loan losses
|
|
|
|
449 |
|
|
|
194 |
|
|
|
171 |
|
|
|
83 |
|
|
Noninterest
income
|
|
|
|
3,403 |
|
|
|
2,934 |
|
|
|
1,147 |
|
|
|
840 |
|
|
Noninterest
expense
|
|
|
|
9,036 |
|
|
|
7,991 |
|
|
|
3,182 |
|
|
|
2,897 |
|
|
Income
before taxes
|
|
|
|
2,660 |
|
|
|
2,627 |
|
|
|
974 |
|
|
|
459 |
|
|
Tax
provision
|
|
|
|
781 |
|
|
|
737 |
|
|
|
290 |
|
|
|
80 |
|
|
Net
Income
|
|
|
$ |
1,879 |
|
|
$ |
1,890 |
|
|
$ |
684 |
|
|
$ |
379 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
EPS
|
|
|
$ |
0.45 |
|
|
$ |
0.46 |
|
|
$ |
0.17 |
|
|
$ |
0.09 |
|
|
Weighted
average
shares
outstanding
|
|
|
|
4,131,089 |
|
|
|
4,122,500 |
|
|
|
4,118,958 |
|
|
|
4,127,946 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS
|
|
|
$ |
0.45 |
|
|
$ |
0.45 |
|
|
$ |
0.16 |
|
|
$ |
0.09 |
|
|
Weighted
average
diluted
shares outstanding
|
|
|
|
4,171,626 |
|
|
|
4,192,002 |
|
|
|
4,149,745 |
|
|
|
4,195,761 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
declared per share 1
|
|
|
$ |
0.54 |
|
|
$ |
0.48 |
|
|
$ |
0.15 |
|
|
$ |
0.25 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
on average assets
|
|
|
|
0.72 |
% |
|
|
0.81 |
% |
|
|
0.75 |
% |
|
|
0.48 |
% |
|
Return
on average equity
|
|
|
|
6.93 |
% |
|
|
7.28 |
% |
|
|
7.46 |
% |
|
|
4.30 |
% |
|
Net
interest rate spread
|
|
|
|
3.08 |
% |
|
|
3.10 |
% |
|
|
3.31 |
% |
|
|
3.02 |
% |
|
Net
interest margin
|
|
|
|
3.58 |
% |
|
|
3.61 |
% |
|
|
3.74 |
% |
|
|
3.55 |
% |
|
Non-performing
assets
to
total assets
|
|
|
|
0.40 |
% |
|
|
0.36 |
% |
|
|
|
|
|
|
|
|
|
Non-performing
loans
to
total loans
|
|
|
|
0.67 |
% |
|
|
0.56 |
% |
|
|
|
|
|
|
|
|
|
Allowance
for loan losses to
non-performing
loans
|
|
|
|
117.84 |
% |
|
|
124.20 |
% |
|
|
|
|
|
|
|
|
|
Allowance
for loan losses to
total
loans
|
|
|
|
0.78 |
% |
|
|
0.70 |
% |
|
|
|
|
|
|
|
|
|
Shareholders’
equity to total assets
|
|
|
|
9.70 |
% |
|
|
11.01 |
% |
|
|
|
|
|
|
|
|
|
Dividend
payout ratio1
|
|
|
|
120.00 |
% |
|
|
78.26 |
% |
|
|
|
|
|
|
|
|
|
Book
value per share
|
|
|
$ |
8.98 |
|
|
$ |
8.57 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 March 31, 2008
|
|
|
As
of June 30, 2007
|
|
|
Dollar
In thousands, except share data
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Total
cash and cash equivalents
|
|
|
$ |
24,386 |
|
|
$ |
14,026 |
|
|
Securities-
available for sale, at fair value
|
|
|
|
90,349 |
|
|
|
87,184 |
|
|
Securities-
held to maturity, at amortized cost
|
|
|
|
16,753 |
|
|
|
--- |
|
|
Federal
Home Loan Bank stock, at cost
|
|
|
|
1,287 |
|
|
|
657 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Gross
loans receivable
|
|
|
|
230,521 |
|
|
|
208,705 |
|
|
Less: Allowance
for loan losses
|
|
|
|
(1,803 |
) |
|
|
(1,486 |
) |
|
Unearned
origination fees and costs, net
|
|
|
|
117 |
|
|
|
61 |
|
|
Net
loans receivable
|
|
|
|
228,835 |
|
|
|
207,280 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Premises
and equipment
|
|
|
|
15,204 |
|
|
|
13,712 |
|
|
Accrued
interest receivable
|
|
|
|
2,145 |
|
|
|
1,955 |
|
|
Prepaid
expenses and other assets
|
|
|
|
642 |
|
|
|
1,012 |
|
|
Total
Assets
|
|
|
$ |
379,601 |
|
|
$ |
325,826 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing deposits
|
|
|
$ |
41,294 |
|
|
$ |
44,020 |
|
|
Interest
bearing deposits
|
|
|
|
280,773 |
|
|
|
240,156 |
|
|
Total
deposits
|
|
|
|
322,067 |
|
|
|
284,176 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
FHLB
borrowing
|
|
|
|
19,000 |
|
|
|
5,000 |
|
|
Accrued
expenses and other liabilities
|
|
|
|
1,703 |
|
|
|
1,235 |
|
|
Total
liabilities
|
|
|
|
342,770 |
|
|
|
290,411 |
|
|
Total
shareholders’ equity
|
|
|
|
36,831 |
|
|
|
35,415 |
|
|
Total
liabilities and shareholders’ equity
|
|
|
$ |
379,601 |
|
|
$ |
325,826 |
|
|
Common
shares outstanding
|
|
|
|
4,110,388 |
|
|
|
4,151,066 |
|
|
Treasury
shares
|
|
|
|
195,282 |
|
|
|
154,604 |
|
Contact: Donald
Gibson, President and CEO or Michelle Plummer, Executive Vice President, CFO
& COO
Phone: 518-943-2600