form8kapril302009.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,
2009
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, 2009, Greene County Bancorp, Inc. issued a press release disclosing
financial results at and for fiscal quarters and nine-month periods ended March
31, 2009 and 2008. 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, 2009
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,
2009
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, 2009-- 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, 2009. Net income for the nine
months ended March 31, 2009 amounted to $3.0 million or $0.73 per basic and
diluted share as compared to $1.9 million or $0.45 per basic and diluted share
for the nine months ended March 31, 2008, an increase of $1.1 million, or 57.9%.
Net income for the quarter ended March 31, 2009 amounted to $1.2 million or
$0.28 per basic and diluted share as compared to $684,000 or $0.17 per basic and
$0.16 per diluted share for the quarter ended March 31, 2008, an increase of
$472,000, or 69.0%.
Donald E.
Gibson, President and CEO stated, “We are pleased to report strong earnings for
the quarter especially when one considers the many financial challenges
confronting our national, state and local economies.”
The most
significant factor contributing to the improved earnings was higher net interest
income, which increased to $11.6 million for the nine months ended March 31,
2009 as compared to $8.7 million for the nine months ended March 31, 2008, an
increase of $2.9 million or 33.3%. Net interest income increased to
$3.9 million for the quarter ended March 31, 2009 as compared to $3.2 million
for the quarter ended March 31, 2008, an increase of $764,000 million or
23.9%. Net interest rate spread increased 48 basis points to 3.56%
for the nine months ended March 31, 2009 as compared to 3.08% for the nine ended
March 31, 2008. Net interest rate spread increased 16 basis points to
3.47% for the quarter ended March 31, 2009 as compared to 3.31% for the quarter
ended March 31, 2008. Net interest margin increased 26 basis points
to 3.84% for the nine months ended March 31, 2009 as compared to 3.58% for the
nine months ended March 31, 2008. Net interest margin decreased one
basis point to 3.73% for the quarter ended March 31, 2009 as compared to 3.74%
for the quarter ended March 31, 2008.
Due to
the worsening economic climate, management continues to closely monitor asset
quality and adjust the level of the allowance for loan losses when
necessary. The provision for loan losses amounted to $1.8 million and
$449,000 for the nine months ended March 31, 2009 and 2008, respectively, an
increase of $1.3 million or 289.5%. The provision for loan losses
amounted to $1.2 million and $171,000 for the quarters ended March 31, 2009 and
2008, respectively, an increase of $1.0 million. Contributing to the
increased provision was continued growth in the loan portfolio, and an increase
in the amount of loan charge-offs. Net charge-offs amounted to
$372,000 and $132,000 for the nine months ended March 31, 2009 and 2008,
respectively, an increase of $240,000. The increase in the level of
charge-offs reflected the decline in the overall
economy. As a result, the level of allowance for loan
losses to total loans receivable has been increased to 1.23% as of March 31,
2009 as compared to 0.78% as of March 31, 2008.
Noninterest
income increased to approximately $4.9 million for the nine months ended March
31, 2009 compared to $3.4 million for the nine months ended March 31, 2008, an
increase of $1.5 million. Noninterest income increased to $2.7
million for the quarter ended March 31, 2009 compared to $1.1 million for the
quarter ended March 31, 2008, an increase of $1.6
million. Noninterest income for the nine months and quarter
ended March 31, 2009 reflected a one time cash payment of approximately $1.7
million ($1.0 million net of tax) received from TransFirst LLC. This
payment was the result of The Bank of Greene County transferring its merchant
bank card processing business to TransFirst LLC. Also reflected
in noninterest income for the nine months ended March 31, 2009 was an impairment
charge of $220,000 ($135,000 net of tax) related to the other-than-temporary
impairment of a Lehman Brothers Holdings, Inc. debt security held by the
Company.
Noninterest
expense increased $1.0 million or 11.1% to $10.0 million for the nine months
ended March 31, 2009 as compared to $9.0 million for the nine months ended March
31, 2008. Noninterest expense increased $305,000 or 9.5% to $3.5
million for the quarter ended March 31, 2009 as compared to $3.2 million for the
quarter ended March 31, 2008. The Company allocated $351,000 toward
the expected future termination of its currently frozen defined benefit plan
during the nine months ended March 31, 2009. Most recently, the
Company has decided not to terminate the current defined benefit plan, but
instead will modify the plan, moving it out of the existing multi-employer
plan. The Company has recognized approximately $58,000 in
professional expenses during the quarter and fiscal year to date ended March 31,
2009 related to this modification. It is expected that this
modification will be completed within the fourth quarter of fiscal
2009. Additional expenses such as compensation and depreciation due
to the new Chatham branch which opened in January 2008, and the new Ravena
branch which opened in January 2009, also contributed to the higher noninterest
expense.
Total
assets grew $79.0 million or 20.8% to $458.6 million at March 31, 2009 as
compared to $379.6 million at June 30, 2008. Securities classified as
available for sale and classified as held to maturity increased $39.3 million in
the aggregate to $151.4 million at March 31, 2009 as compared to $112.1 million
at June 30, 2008. Loans increased $27.3 million or 11.4% to $267.4
million at March 31, 2009 as compared to $240.1 million at June 30,
2008. Funding the growth in assets was deposit growth of $76.7
million, or 23.9%, to $398.1 million at March 31, 2009 as compared to $321.4
million at June 30, 2008. The Company continues to develop new
relationships with local municipalities including school districts to use the
services of Greene County Commercial Bank. The level of deposits held
by such public entities can be cyclical and fluctuate significantly from quarter
to quarter and are significantly dependent on and affected by tax collection
periods or special projects such as new buildings or
renovations. These types of local municipal entities are also
required to have certain forms of collateral pledged for amounts deposited over
the FDIC insurance limits.
The
Company’s capital ratios remain strong with total shareholders’ equity of $39.1
million at March 31, 2009, or 8.5% of total assets. The capital
ratios of the bank significantly exceeded the “well capitalized” regulatory
standard with a Tier 1 capital ratio of 7.69% and total risk-based capital ratio
of 16.04%. Given the Company’s strong financial and liquidity
positions, management determined that participation in the Troubled Asset Relief
Program (TARP) Capital Purchase Program (CPP) was not
warranted. Consequently, the Company elected to withdraw its
application for participation in this program.
Headquartered
in Catskill, New York, the Company provides full-service community-based banking
in its eleven branch offices located in Greene, Columbia and Albany
Counties. On January 12, 2009, the Company opened its newest branch,
located on Route 9W in Ravena in southern Albany County.
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,
|
|
| |
|
|
|
2009
|
|
|
2008
|
|
|
2009
|
|
|
2008
|
|
|
Dollars
In thousands,
except
share and per share data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
$ |
16,824 |
|
|
$ |
14,399 |
|
|
$ |
5,686 |
|
|
$ |
5,018 |
|
|
Interest
expense
|
|
|
|
5,184 |
|
|
|
5,657 |
|
|
|
1,742 |
|
|
|
1,838 |
|
|
Net
interest income
|
|
|
|
11,640 |
|
|
|
8,742 |
|
|
|
3,944 |
|
|
|
3,180 |
|
|
Provision
for loan losses
|
|
|
|
1,764 |
|
|
|
449 |
|
|
|
1,151 |
|
|
|
171 |
|
|
Noninterest
income
|
|
|
|
4,935 |
|
|
|
3,403 |
|
|
|
2,706 |
|
|
|
1,147 |
|
|
Noninterest
expense
|
|
|
|
10,000 |
|
|
|
9,036 |
|
|
|
3,487 |
|
|
|
3,182 |
|
|
Income
before taxes
|
|
|
|
4,811 |
|
|
|
2,660 |
|
|
|
2,012 |
|
|
|
974 |
|
|
Tax
provision
|
|
|
|
1,814 |
|
|
|
781 |
|
|
|
856 |
|
|
|
290 |
|
|
Net
Income
|
|
|
$ |
2,997 |
|
|
$ |
1,879 |
|
|
$ |
1,156 |
|
|
$ |
684 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
EPS
|
|
|
$ |
0.73 |
|
|
$ |
0.45 |
|
|
$ |
0.28 |
|
|
$ |
0.17 |
|
|
Weighted
average
shares
outstanding
|
|
|
|
4,100,072 |
|
|
|
4,131,089 |
|
|
|
4,104,119 |
|
|
|
4,118,958 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS
|
|
|
$ |
0.73 |
|
|
$ |
0.45 |
|
|
$ |
0.28 |
|
|
$ |
0.16 |
|
|
Weighted
average
diluted
shares outstanding
|
|
|
|
4,119,973 |
|
|
|
4,171,626 |
|
|
|
4,121,186 |
|
|
|
4,149,745 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
declared per share 1
|
|
|
$ |
0.51 |
|
|
$ |
0.54 |
|
|
$ |
0.17 |
|
|
$ |
0.15 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
on average assets
|
|
|
|
0.94 |
% |
|
|
0.72 |
% |
|
|
1.04 |
% |
|
|
0.75 |
% |
|
Return
on average equity
|
|
|
|
10.69 |
% |
|
|
6.93 |
% |
|
|
11.98 |
% |
|
|
7.46 |
% |
|
Net
interest rate spread
|
|
|
|
3.56 |
% |
|
|
3.08 |
% |
|
|
3.47 |
% |
|
|
3.31 |
% |
|
Net
interest margin
|
|
|
|
3.84 |
% |
|
|
3.58 |
% |
|
|
3.73 |
% |
|
|
3.74 |
% |
|
Non-performing
assets
to
total assets
|
|
|
|
0.40 |
% |
|
|
0.40 |
% |
|
|
|
|
|
|
|
|
|
Non-performing
loans
to
total loans
|
|
|
|
0.65 |
% |
|
|
0.67 |
% |
|
|
|
|
|
|
|
|
|
Allowance
for loan losses to
non-performing
loans
|
|
|
|
189.38 |
% |
|
|
117.84 |
% |
|
|
|
|
|
|
|
|
|
Allowance
for loan losses to
total
loans
|
|
|
|
1.23 |
% |
|
|
0.78 |
% |
|
|
|
|
|
|
|
|
|
Shareholders’
equity to total assets
|
|
|
|
8.52 |
% |
|
|
9.70 |
% |
|
|
|
|
|
|
|
|
|
Dividend
payout ratio1
|
|
|
|
69.86 |
% |
|
|
120.00 |
% |
|
|
|
|
|
|
|
|
|
Book
value per share
|
|
|
$ |
9.52 |
|
|
$ |
8.98 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2009
|
|
|
As
of June 30, 2008
|
|
|
Dollars
In thousands, except share data
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Total
cash and cash equivalents
|
|
|
$ |
21,440 |
|
|
$ |
8,662 |
|
|
Long
term certificate of deposit
|
|
|
|
1,000 |
|
|
|
1,000 |
|
|
Securities-
available for sale, at fair value
|
|
|
|
101,822 |
|
|
|
96,692 |
|
|
Securities-
held to maturity, at amortized cost
|
|
|
|
49,605 |
|
|
|
15,457 |
|
|
Federal
Home Loan Bank stock, at cost
|
|
|
|
1,341 |
|
|
|
1,386 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Gross
loans receivable
|
|
|
|
267,388 |
|
|
|
240,146 |
|
|
Less: Allowance
for loan losses
|
|
|
|
(3,280 |
) |
|
|
(1,888 |
) |
|
Unearned
origination fees and costs, net
|
|
|
|
330 |
|
|
|
182 |
|
|
Net
loans receivable
|
|
|
|
264,438 |
|
|
|
238,440 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Premises
and equipment
|
|
|
|
15,604 |
|
|
|
15,108 |
|
|
Accrued
interest receivable
|
|
|
|
2,610 |
|
|
|
2,139 |
|
|
Prepaid
expenses and other assets
|
|
|
|
627 |
|
|
|
724 |
|
|
Foreclosed
real estate
|
|
|
|
100 |
|
|
|
--- |
|
|
Total
Assets
|
|
|
$ |
458,587 |
|
|
$ |
379,608 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing deposits
|
|
|
$ |
36,704 |
|
|
$ |
41,798 |
|
|
Interest
bearing deposits
|
|
|
|
361,426 |
|
|
|
279,633 |
|
|
Total
deposits
|
|
|
|
398,130 |
|
|
|
321,431 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Borrowings
from FHLB, short term
|
|
|
|
--- |
|
|
|
1,000 |
|
|
Borrowings
from FHLB, long term
|
|
|
|
19,000 |
|
|
|
19,000 |
|
|
Accrued
expenses and other liabilities
|
|
|
|
2,363 |
|
|
|
1,910 |
|
|
Total
liabilities
|
|
|
|
419,493 |
|
|
|
343,341 |
|
|
Total
shareholders’ equity
|
|
|
|
39,094 |
|
|
|
36,267 |
|
|
Total
liabilities and shareholders’ equity
|
|
|
$ |
458,587 |
|
|
$ |
379,608 |
|
|
Common
shares outstanding
|
|
|
|
4,105,312 |
|
|
|
4,095,528 |
|
|
Treasury
shares
|
|
|
|
200,358 |
|
|
|
210,142 |
|
Contact: Donald
Gibson, President and CEO or Michelle Plummer, Executive Vice President, CFO
& COO
Phone: 518-943-2600