form8kjan292008.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): January 29,
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 (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
January 29, 2008, Greene County Bancorp, Inc. issued a press release disclosing
financial results at and for the six-months and quarters ended December 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 January 29, 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:
January 29,
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) – January 29, 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
six months and quarter ended December 31, 2007. Net income for the
six months ended December 31, 2007 amounted to $1.2 million or $0.29 per basic
and diluted share as compared to $1.5 million or $0.37 per basic and $0.36
per
diluted share for the six months ended December 31, 2006, a decrease of
$316,000, or 20.9%. Net income for the quarter ended December 31, 2007 amounted
to $626,000 or $0.15 per basic and diluted share as compared to $757,000 or
$0.18 per basic and diluted share for the quarter ended December 31, 2006,
a
decrease of $131,000, or 17.3%. The decreases reflected higher
noninterest expenses during the six months and quarter ended December 31, 2007
as well as the recognition of a nonrecurring gain on the sale of the former
Coxsackie branch building during the quarter ended December 31, 2006, which
was
partially offset by an increase in net interest income and other noninterest
income.
Net
interest income increased $283,000 to $5.6 million for the six months ended
December 31, 2007 compared to December 31, 2006 and increased $171,000 to $2.8
million for the quarter ended December 31, 2007 compared to December 31,
2006. Net interest spread decreased 19 basis points
to 2.96% for the six months ended December 31, 2007 from 3.15% for the six
months ended December 31, 2006, and 18 basis points to 2.92% for the quarter
ended December 31, 2007 as compared to 3.10% for the quarter ended December
31,
2006. Net interest margin decreased 15 basis points to 3.49% for the
six months ended December 31, 2007 from 3.64% for the six months ended December
31, 2006, and 16 basis points to 3.45% for the quarter ended December 31, 2007
as compared to 3.61% for the quarter ended December 31, 2006. The
tightening of the net interest spread and margin hindered net interest income
growth when comparing the six months and quarters ended December 31, 2007 and
2006.
The
provision for loan losses amounted to $278,000 and $111,000 for the six months
ended December 31, 2007 and 2006, respectively, an increase of
$167,000. The provision for loan losses amounted to $135,000 and
$66,000 for the quarters ended December 31, 2007 and 2006, respectively, an
increase of $69,000. The increase in the level of provision was
partially a result of growth in the loan portfolio and an increase in the amount
of loan charge-offs, which were primarily associated with the overdraft
protection program. Net charge-offs associated with the overdraft
protection program increased $35,000, or 70.0% when comparing the six months
ended December 31, 2007 and 2006. 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 $2.3 million for the six months ended December 31, 2007
as
compared to $2.1 million for the six months ended December 31, 2006, an increase
of $162,000 or 7.7%. Noninterest income amounted to $1.2 million for
both the quarters ended December 31, 2007 and 2006. During the
six months and quarter ended December 31, 2006, 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 six months and quarter ended December 31,
2007. Service charges on deposit accounts increased $270,000 and
$110,000 for the six months and quarter ended December 31, 2007, respectively,
due to higher levels of insufficient funds charges as a result of changes
implemented in the Overdraft Privilege Program. Debit card fees
increased $97,000 and $53,000, respectively for the same periods primarily
due
to a higher volume of transactions.
Noninterest
expense amounted to $5.9 million for the six months ended December 31, 2007
as
compared to $5.1 million for the six months ended December 31, 2006, an increase
of $760,000 or 14.9%. Noninterest expense amounted to $2.9 million
for the quarter ended December 31, 2007 as compared to $2.7 million for the
quarter ended December 31, 2006, an increase of $288,000 or
10.8%. Salaries and employee benefits increased $318,000 when
comparing the six months ended December 31, 2007 and 2006; and $176,000 when
comparing the quarters ended December 31, 2007 and 2006. 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 has opened in January 2008) and
expansion of the commercial lending department, as well as a $75,000 payment
associated with the retirement of a senior officer. These salary
increases were partially offset by a decrease of $65,000 in retirement expense
associated with the Defined Benefit Pension Plan, partially offset by an
increase in 401(k) contribution expense of $20,000 resulting from increases
in
employer match during fiscal 2007. Occupancy expense and equipment
and furniture expense, in the aggregate, increased $133,000 and $52,000,
respectively, when comparing the six months and quarters ended December 31,
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 $309,000 and $60,000 when comparing the six months
and
quarters ended December 31, 2007 and 2006 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 pretax
income generated for the given period and certain regulatory
requirements. The effective tax rate was 29.1% for the six months
ended December 31, 2007, compared to 30.3% for the six months ended December
31,
2006. The effective tax rate was 28.6% for the quarter ended December
31, 2007, compared to 31.6% for the quarter ended December 31,
2006. The decreases in effective rates for the periods ended December
31, 2007 were the result of decreased pre-tax income and the resultant increased
percentage of tax exempt interest earned in total taxable income.
Total
assets of the Company increased to $344.0 million at December 31, 2007 from
$325.8 million at
June 30, 2007. The asset composition shifted toward loans, which
amounted to $222.5 million, or 64.7% of total assets at December 31, 2007,
as
compared to $207.3 million, or 63.6% of total assets at June 30,
2007. Securities, including both available for sale and held to
maturity, also increased during the six months ended December 31, 2007, and
represented $95.0 million or 27.6% of total assets at December 31, 2007 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 $13.0 million
increase in deposits to $297.2 million and a $4.0 million increase in borrowed
funds to $9.0 million at December 31, 2007. The Company only invests
in mortgage-backed securities, which are U.S. government agency
sponsored. The Company has no exposure to sub-prime loans in its
investment portfolio.
Shareholders’
equity increased to $36.5 million at December 31, 2007 from $35.4 million at
June 30, 2007, as net income of $1.2 million and other comprehensive income
of
$877,000 was partially offset by dividends declared and paid of
$720,000. 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 six months ended
December 31, 2007, the company repurchased 12,192 shares at a cost of
approximately $153,000. As a result of this stock repurchase and the
exercise of stock options during the period, treasury shares were increased
to
161,216. Other changes in equity, totaling an increase of $110,000,
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 Six
|
|
|
At
or for the Three
|
|
| |
|
|
|
Months
Ended December 31,
|
|
|
Months
Ended December 31,
|
|
| |
|
|
|
2007
|
|
|
2006
|
|
|
2007
|
|
|
2006
|
|
|
Dollars
In thousands,
except
share and per share data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
$ |
9,381 |
|
|
$ |
8,294 |
|
|
$ |
4,772 |
|
|
$ |
4,223 |
|
|
Interest
expense
|
|
|
|
3,819 |
|
|
|
3,015 |
|
|
|
1,971 |
|
|
|
1,593 |
|
|
Net
interest income
|
|
|
|
5,562 |
|
|
|
5,279 |
|
|
|
2,801 |
|
|
|
2,630 |
|
|
Provision
for loan losses
|
|
|
|
278 |
|
|
|
111 |
|
|
|
135 |
|
|
|
66 |
|
|
Noninterest
income
|
|
|
|
2,256 |
|
|
|
2,094 |
|
|
|
1,160 |
|
|
|
1,203 |
|
|
Noninterest
expense
|
|
|
|
5,854 |
|
|
|
5,094 |
|
|
|
2,949 |
|
|
|
2,661 |
|
|
Income
before taxes
|
|
|
|
1,686 |
|
|
|
2,168 |
|
|
|
877 |
|
|
|
1,106 |
|
|
Tax
provision
|
|
|
|
491 |
|
|
|
657 |
|
|
|
251 |
|
|
|
349 |
|
|
Net
Income
|
|
|
$ |
1,195 |
|
|
$ |
1,511 |
|
|
$ |
626 |
|
|
$ |
757 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
EPS
|
|
|
$ |
0.29 |
|
|
$ |
0.37 |
|
|
$ |
0.15 |
|
|
$ |
0.18 |
|
|
Weighted
average
shares
outstanding
|
|
|
|
4,137,088 |
|
|
|
4,119,836 |
|
|
|
4,136,620 |
|
|
|
4,122,029 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS
|
|
|
$ |
0.29 |
|
|
$ |
0.36 |
|
|
$ |
0.15 |
|
|
$ |
0.18 |
|
|
Weighted
average
diluted
shares outstanding
|
|
|
|
4,182,920 |
|
|
|
4,190,163 |
|
|
|
4,180,155 |
|
|
|
4,192,392 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
declared per share 1
|
|
|
$ |
0.39 |
|
|
$ |
0.23 |
|
|
$ |
0.14 |
|
|
$ |
--- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Financial Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
on average assets
|
|
|
|
0.71 |
% |
|
|
0.98 |
% |
|
|
0.73 |
% |
|
|
0.97 |
% |
|
Return
on average equity
|
|
|
|
6.66 |
% |
|
|
8.79 |
% |
|
|
6.91 |
% |
|
|
8.68 |
% |
|
Net
interest rate spread
|
|
|
|
2.96 |
% |
|
|
3.15 |
% |
|
|
2.92 |
% |
|
|
3.10 |
% |
|
Net
interest margin
|
|
|
|
3.49 |
% |
|
|
3.64 |
% |
|
|
3.45 |
% |
|
|
3.61 |
% |
|
Non-performing
assets
to
total assets
|
|
|
|
0.51 |
% |
|
|
0.13 |
% |
|
|
|
|
|
|
|
|
|
Non-performing
loans
to
total loans
|
|
|
|
0.79 |
% |
|
|
0.20 |
% |
|
|
|
|
|
|
|
|
|
Allowance
for loan losses to
non-performing
loans
|
|
|
|
95.92 |
% |
|
|
342.86 |
% |
|
|
|
|
|
|
|
|
|
Allowance
for loan losses to
total
loans
|
|
|
|
0.76 |
% |
|
|
0.67 |
% |
|
|
|
|
|
|
|
|
|
Shareholders’
equity to total assets
|
|
|
|
10.61 |
% |
|
|
11.30 |
% |
|
|
|
|
|
|
|
|
|
Dividend
payout ratio1
|
|
|
|
134.48 |
% |
|
|
62.16 |
% |
|
|
|
|
|
|
|
|
|
Book
value per share
|
|
|
$ |
8.83 |
|
|
$ |
8.56 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 December 31, 2007
|
|
|
As
of June 30, 2007
|
|
|
Dollar
In thousands, except share data
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Total
cash and cash equivalents
|
|
|
$ |
9,031 |
|
|
$ |
14,026 |
|
|
Securities-
available for sale, at fair value
|
|
|
|
78,619 |
|
|
|
87,184 |
|
|
Securities-
held to maturity, at cost
|
|
|
|
16,385 |
|
|
|
--- |
|
|
Federal
Home Loan Bank stock, at cost
|
|
|
|
837 |
|
|
|
657 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Gross
loans receivable
|
|
|
|
224,045 |
|
|
|
208,705 |
|
|
Less: Allowance
for loan losses
|
|
|
|
(1,694 |
) |
|
|
(1,486 |
) |
|
Unearned
origination fees and costs, net
|
|
|
|
111 |
|
|
|
61 |
|
|
Net
loans receivable
|
|
|
|
222,462 |
|
|
|
207,280 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Premises
and equipment
|
|
|
|
14,228 |
|
|
|
13,712 |
|
|
Accrued
interest receivable
|
|
|
|
1,989 |
|
|
|
1,955 |
|
|
Prepaid
expenses and other assets
|
|
|
|
444 |
|
|
|
1,012 |
|
|
Total
Assets
|
|
|
$ |
343,995 |
|
|
$ |
325,826 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing deposits
|
|
|
$ |
40,912 |
|
|
$ |
44,020 |
|
|
Interest
bearing deposits
|
|
|
|
256,279 |
|
|
|
240,156 |
|
|
Total
deposits
|
|
|
|
297,191 |
|
|
|
284,176 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
FHLB
borrowing
|
|
|
|
9,000 |
|
|
|
5,000 |
|
|
Accrued
expenses and other liabilities
|
|
|
|
1,298 |
|
|
|
1,235 |
|
|
Total
liabilities
|
|
|
|
307,489 |
|
|
|
290,411 |
|
|
Total
shareholders’ equity
|
|
|
|
36,506 |
|
|
|
35,415 |
|
|
Total
liabilities and shareholders’ equity
|
|
|
$ |
343,995 |
|
|
$ |
325,826 |
|
|
Common
shares outstanding
|
|
|
|
4,144,454 |
|
|
|
4,151,066 |
|
|
Treasury
shares
|
|
|
|
161,216 |
|
|
|
154,604 |
|
Contact: Donald
Gibson, President and CEO or Michelle Plummer, Executive Vice President, CFO
& COO
Phone: 518-943-2600