Date: April 22, 2025

For Further Information Contact:

Donald E. Gibson

President & CEO

Nick Barzee

SVP & CFO

Greene County Bancorp, Inc. Reports Net Income of $8.1 Million for the Quarter Ended

March 31, 2025 and Reaches New Milestone of $3.0 Billion in Assets

Catskill, N.Y. – April 22, 2025 - 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 three and nine months ended March 31, 2025, which is the third quarter of the Company’s fiscal year ending June 30, 2025. Net income for the three and nine months ended March 31, 2025 was $8.1 million, or $0.47 per basic and diluted share, and $21.8 million, or $1.28 per basic and diluted share, respectively, as compared to $5.9 million, or $0.34 per basic and diluted share, and $18.0 million, or $1.06 per basic and diluted share, for the three and nine months ended March 31, 2024, respectively. Net income increased $3.8 million, or 20.9%, when comparing the nine months ended March 31, 2025 and 2024.

Donald Gibson, President & CEO stated: “I am pleased to report we reached a new milestone exceeding $3.0 billion in consolidated assets for the quarter ended March 31, 2025. This milestone in asset growth is a true testament to our Bank’s unique long-term culture to grow organically. The primary driver of our growth has been our team’s ability to provide innovative solutions and world-class customer service. When reviewing our company’s 136 year history, it took us approximately 128 years to reach $1.0 billion in assets, and only seven more years to reach $3.0 billion in assets. I am also proud to report solid quarterly income for the quarter ended March 31, 2025 of $8.1 million, an increase of 37.4% when compared to the quarterly net income of $5.9 million for the quarter ended March 31, 2024.”

Total consolidated assets for the Company were $3.0 billion at March 31, 2025, primarily consisting of $1.6 billion of net loans and $1.1 billion of total securities available-for-sale and held-to-maturity. Consolidated deposits totaled $2.7 billion at March 31, 2025, consisting of retail, business, municipal and private banking relationships.

Pre-provision net income was $24.0 million for the nine months ended March 31, 2025 as compared to  $19.0 million for the nine months ended March 31, 2024, an increase of $5.0 million, or 26.6%. Pre-provision net income measures the Company’s net income less the provision for credit losses. Management believes that this non-GAAP measure assists investors in comprehending the impact of the provision for credit losses on the Company’s reported results, offering an alternative view of the Company’s performance and the Company’s ability to generate income in excess of its provision for credit losses.  The Company strategically managed its balance sheet by focusing on higher-yielding loans and securities, and lowering deposit rates to align with the Federal Reserve’s recent interest rate cuts. This resulted in a higher net interest margin for the three and nine months ended March 31, 2025 as compared to the three and nine months ended March 31, 2024. The Company will continue to monitor the Federal Reserve and interest rates paid on deposits, while maintaining our long-term customer relationships.

Selected highlights for the three and nine months ended March 31, 2025 are as follows:

Average loan balances increased $113.1 million and $80.3 million and the yield on loans increased 19 basis points and 26 basis points when comparing the three and nine months ended March 31, 2025 and 2024, respectively. The average balance of securities increased $104.5 million and $76.4 million and the yield on such securities increased 11 basis points and 40 basis points when comparing the three and nine months ended March 31, 2025 and 2024, respectively. Average interest-bearing bank balances and federal funds decreased $11.9 million and $2.1 million and the yield on interest-bearing bank balances and federal funds increased 22 basis points and 6 basis points when comparing the three and nine months ended March 31, 2025 and 2024, respectively.

The cost of NOW deposits decreased 29 basis points, the cost of certificates of deposit decreased 56 basis points, and the cost of savings and money market deposits decreased 5 basis points when comparing the three months ended March 31, 2025 and 2024, respectively. The cost of NOW deposits increased 9 basis points, the cost of certificates of deposit increased 4 basis points, and the cost of savings and money market deposits increased 8 basis points when comparing the nine months ended March 31, 2025 and 2024, respectively. The growth in interest-bearing liabilities was primarily due to an increase in average NOW deposits of $179.5 million and $120.8 million and an increase in average certificates of deposits of $58.9 million and $58.7 million when comparing the three and nine months ended March 31, 2025 and 2024, respectively.  This was partially offset by a decrease in average savings and money market deposits of $14.9 million and $25.4 million when comparing the three and nine months ended March 31, 2025 and 2024, respectively. Yields on interest-earning assets increased when comparing the three and nine months ended March 31, 2025 and 2024 as the Company continued to reprice assets into the higher interest rate environment.  During the nine months ended March 31, 2025, the Company implemented a strategic reduction in deposit rates that aligns with the Federal Reserve’s rate cuts, while providing competitive financial solutions to the Company’s customers that reflect the prevailing economic conditions, while growing new relationships.

Net interest margin increased 42 basis points to 2.32% for the three months ended March 31, 2025, compared to 1.90% for the three months ended March 31, 2024. Net interest margin increased 15 basis points to 2.14% for the nine months ended March 31, 2025, compared to 1.99% for the nine months ended March 31, 2024. The increase in net interest rate spread and margin during the three and nine months ended March 31, 2025, was due to increases in interest income on loans and securities, as they continue to reprice at higher yields and the interest rates earned on new balances were higher than the historic low levels from the prior periods. This was partially offset by the increase in rates paid on deposits as compared to the nine months ended March 31, 2025.

Noninterest income increased $444,000, or 13.0%, to $3.9 million for the three months ended March 31, 2025 compared to $3.4 million for the three months ended March 31, 2024. The increase during the three months ended March 31, 2025 was primarily due to a $610,000 Employee Retention Tax Credit (“ERTC”) and an increase in fee income earned on customer interest rate swap contracts of $190,000. This was partially offset by a $665,000 loss on sales of securities available-for-sale.  Noninterest income increased $1.3 million, or 12.6%, to $11.5 million for the nine months ended March 31, 2025 compared to $10.2 million for the nine months ended March 31, 2024. The increase during the nine months ended March 31, 2025 was primarily due to a $610,000 Employee Retention Tax Credit (“ERTC”), an increase in fee income earned on customer interest rate swap contracts of $400,000, service charge account fees of $222,000, loan fees of $174,000 and income from bank owned life insurance (“BOLI”) of $359,000. This was partially offset by a $665,000 loss on sales of securities available-for-sale.

Greene County Bancorp, Inc. is the holding company for the Bank of Greene County, and its subsidiary Greene County Commercial Bank. The Company is the leading provider of community-based banking services throughout the Hudson Valley and Capital Region of New York State. Its customers include individuals, businesses, municipalities and other institutions. Greene County Bancorp, Inc. (GCBC) is publicly traded on the Nasdaq Capital Market and is dedicated to promoting economic development and a high quality of life in the communities it serves. For more information on Greene County Bancorp, Inc., visit www.tbogc.com.

This earnings release contains statements about future events that constitute forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995.  Forward-looking statements may be identified by references to a future period or periods or by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “will,” “should,” “could,” “plan,” and other similar terms of expressions.  Forward-looking statements should not be relied on because they involve known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s control. These risks, uncertainties and other factors may cause the actual results, performance or achievements expressed in, or implied by, the forward-looking statements to differ materially from those contemplated by the forward-looking statements.  Factors that may cause such a difference include, but are not limited to, local, regional, national and international general economic conditions, including actual or potential stress in the banking industry, financial and regulatory changes, changes in interest rates, regulatory considerations, competition, technological developments, retention and recruitment of qualified personnel, changes in customer deposit behavior, and market acceptance of the Company’s pricing, products and services.

The Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made, and advises readers that various factors, including, but not limited to, those described above and other factors discussed in the Company’s annual and quarterly reports previously filed with the Securities and Exchange Commission, could affect the Company’s financial performance and could cause the Company’s actual results or circumstances for future periods to differ materially from those anticipated or projected.

Unless required by law, the Company does not undertake, and specifically disclaims any obligations to, publicly release any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

For more information, please see our reports filed with the United States Securities and Exchange Commission (“SEC”), including our most recent annual report on Form 10-K and quarterly reports on Form 10-Q.

In addition to presenting information in conformity with accounting principles generally accepted in the United States of America (GAAP), this news release contains financial information determined by methods other than GAAP (non-GAAP). The following measures used in this release, which are commonly utilized by financial institutions, have not been specifically exempted by the Securities and Exchange Commission ("SEC") and may constitute "non-GAAP financial measures" within the meaning of the SEC's rules.

The Company has provided in this news release supplemental disclosures for the calculation of net interest margin utilizing a fully taxable-equivalent adjustment and pre-provision net income. Management believes that the non-GAAP financial measures disclosed by the Company from time to time are useful in evaluating the Company's performance and that such information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP.  Our non-GAAP financial measures may differ from similar measures presented by other companies. Refer to the tables on page 9 for Non-GAAP to GAAP reconciliations.

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Consolidated Statements of Income, and Selected Financial Ratios (Unaudited)

(1) Ratios are annualized when necessary.

(2) Interest income calculated on a taxable-equivalent basis (non-GAAP) includes the additional interest income that would have been earned if the Company’s investment in tax-exempt securities and loans had been subject to federal and New York State income taxes yielding the same after-tax income.

(3) The efficiency ratio has been calculated as noninterest expense divided by the sum of net interest income and noninterest income.

(4) The dividend payout ratio has been calculated based on the dividends declared per share divided by basic earnings per share.  No adjustments have been made to account for dividends waived by Greene County Bancorp, MHC (“MHC”), the Company’s majority shareholder, owning 54.1% of the shares outstanding.

(5) Dividends declared divided by net income. The MHC waived its right to receive dividends declared during the three months ended March 31, 2023, June 30, 2023, December 31, 2023, March 31, 2024, June 30, 2024 and March 31, 2025. Dividends declared during the three months ended September 30, 2023, September 30, 2024, and December 31, 2024 were paid to the MHC.

 

Consolidated Statements of Financial Condition (Unaudited)

The following table summarizes the adjustments made to arrive at the fully taxable-equivalent net interest margins.

 (1) Interest income calculated on a taxable-equivalent basis (non-GAAP) includes the additional interest income that would have been earned if the Company’s investment in tax-exempt securities and loans had been subject to federal and New York State income taxes yielding the same after-tax income. The rate used for this adjustment was 21% for federal income taxes for the three and nine months ended March 31, 2025 and 2024, 4.44% for New York State income taxes for the three and nine months ended March 31, 2025 and 2024.

The following table summarizes the adjustments made to arrive at pre-provision net income.