Greene County Bancorp, Inc. Reports Net Income of $8.9 Million for the Three Months Ended September 30, 2025, and Finalized Expansion Plans into Saratoga County

Rhea-AI Summary

Greene County Bancorp (NASDAQ: GCBC) reported net income of $8.9 million and $0.52 per share for the three months ended September 30, 2025, up 41.7% from the prior year quarter. The company posted record balances: $3.1 billion in total assets, $1.6 billion in net loans, and $2.7 billion in total deposits. Return on average assets was 1.21% and return on average equity was 14.59%. Net interest income rose to $17.5 million and net interest margin expanded to 2.48%. Provision for credit losses increased to $1.3 million. The company finalized expansion into Saratoga County with a Clifton Park office ribbon cutting on October 25, 2025.

Positive

• Net income +41.7% to $8.9M (Q1 FY2026)
• Record $3.1B total assets at September 30, 2025
• Record $1.6B net loans and $2.7B deposits
• Net interest income +$4.4M to $17.5M
• Net interest margin +45 bps to 2.48%
• Borrowings decreased $74.0M to $54.1M

Negative

• Provision for credit losses rose to $1.3M from $634K
• Nonperforming loans increased 16% to $3.6M

Insights

Bank financial analyst

Greene County Bancorp delivered materially stronger quarter-to-quarter earnings, record balance-sheet growth, and announced market expansion into Saratoga County.

The company generated $8.9 million of net income for the quarter, up 41.7% year-over-year, with record total assets of $3.1 billion, net loans of $1.6 billion, and deposits of $2.7 billion. Net interest income rose to $17.5 million and net interest margin expanded to 2.48%, driven by higher yields on loans and securities and lower deposit costs. Return metrics were strong at 1.21% ROA and 14.59% ROE, while pre-provision net income improved to $10.1 million, showing underlying earnings power before credit provisioning.

Key dependencies include continued loan growth, stable credit performance, and the interest-rate path that enabled higher yields and lower deposit costs; provision for credit losses increased to $1.3 million reflecting higher loan volume and modeling changes for commercial real estate. Nonperforming assets remain low at 0.12% of assets, and net charge-offs were immaterial. Watch the conversion of construction loans to permanent financing and the allowance dynamics for commercial real estate, plus the upcoming Clifton Park office opening on October 25, 2025, which will test execution in a new market over the next 6–12 months.

CATSKILL, N.Y., Oct. 21, 2025 (GLOBE NEWSWIRE) -- 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 months ended September 30, 2025, which is the first quarter of the Company’s fiscal year ending June 30, 2026. Net income for the three months ended September 30, 2025, was $8.9 million, or $0.52 per basic and diluted share, as compared to $6.3 million, or $0.37 per basic and diluted share, for the three months ended September 30, 2024. Net income increased $2.6 million, or 41.7%, when comparing the three months ended September 30, 2025 and 2024.

Highlights:

• Net Income: $8.9 million for the three months ended September 30, 2025
• Total Assets: $3.1 billion at September 30, 2025, a new record high
• Net Loans: $1.6 billion at September 30, 2025, a new record high
• Total Deposits: $2.7 billion at September 30, 2025, a new record high
• Return on Average Assets: 1.21% for the three months ended September 30, 2025
• Return on Average Equity: 14.59% for the three months ended September 30, 2025

Donald Gibson, President & CEO, stated: “I am extremely pleased to report that in the prior six-month period, the Company earned a historical net income record of over $18.2 million, representing another period of powerful performance and consistent growth for Greene County Bancorp, Inc. Our continued growth and strong earnings reflect the dedication of our employees, the loyalty of our customers, and the trust placed in us by our communities. During the quarter ended September 30, 2025, we reached record highs in total assets, loans, deposits, and equity, underscoring the strength of our balance sheet and resilience of our business model. We are excited to announce that we have finalized our expansion plans into Saratoga County, with a grand opening and ribbon cutting ceremony for our new Clifton Park office on Saturday, October 25, 2025. This expansion marks our entry into one of New York State’s most vibrant and growing markets. As we celebrate these milestones, we remain focused on delivering value to our shareholders, customers, and communities through prudent growth, exceptional service, and continued commitment to community banking excellence.”

Total consolidated assets for the Company were $3.1 billion at September 30, 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 September 30, 2025, consisting of retail, business, municipal and private banking relationships.

Pre-provision net income was $10.1 million for the three months ended September 30, 2025 as compared to $6.9 million for the three months ended September 30, 2024, an increase of $3.2 million, or 46.9%. 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 months ended September 30, 2025 as compared to the three months ended September 30, 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 months ended September 30, 2025 are as follows:

Net Interest Income and Margin

• Net interest income increased $4.4 million to $17.5 million for the three months ended September 30, 2025, from $13.1 million for the three months ended September 30, 2024. The increase in net interest income was due to an increase in the average balance of interest-earning assets, which increased $239.8 million when comparing the three months ended September 30, 2025 and 2024, an increase in interest rates on interest-earning assets, which increased 18 basis points when comparing the three months ended September 30, 2025 and 2024, and a decrease of 31 basis points in rates paid on interest-bearing liabilities when comparing the three months ended September 30, 2025 and 2024. The increase in net interest income was offset by increases in the average balance of interest-bearing liabilities, which increased $223.1 million when comparing the three months ended September 30, 2025 and 2024.
  
  Average loan balances increased $157.8 million and the yield on loans increased 16 basis points when comparing the three months ended September 30, 2025 and 2024. The average balance of securities increased $87.9 million and the yield on such securities increased 24 basis points when comparing the three months ended September 30, 2025 and 2024. Average interest-bearing bank balances and federal funds decreased $6.8 million and the yield on interest-bearing bank balances and federal funds decreased 116 basis points when comparing the three months ended September 30, 2025 and 2024.
  
  The cost of NOW deposits decreased 41 basis points and the cost of certificates of deposit decreased 88 basis points when comparing the three months ended September 30, 2025 and 2024. The growth in interest-bearing liabilities was primarily due to an increase in average NOW deposits of $189.7 million and an increase in average certificates of deposits of $61.7 million when comparing the three months ended September 30, 2025 and 2024. This was partially offset by a decrease in average savings and money market deposits of $15.8 million and a decrease in borrowings of $12.4 million when comparing the three months ended September 30, 2025 and 2024. Yields on interest-earning assets increased when comparing the three months ended September 30, 2025 and 2024, as the Company continued to reprice assets into the higher interest rate environment. During the prior fiscal year and continued through the three months ended September 30, 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, and continued to grow new relationships.

• Net interest rate spread increased 49 basis points to 2.25% for the three months ended September 30, 2025, compared to 1.76% for the three months ended September 30, 2024.
  Net interest margin increased 45 basis points to 2.48% for the three months ended September 30, 2025, compared to 2.03% for the three months ended September 30, 2024. The increase in net interest rate spread and margin during the three months ended September 30, 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, and the reduction in deposit rates.

• Net interest income on a taxable-equivalent basis includes the additional amount of 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. Tax equivalent net interest margin was 2.79% and 2.29% for the three months ended September 30, 2025 and 2024, respectively.
  

Credit Quality and Provision for Credit Losses

• Provision for credit losses amounted to $1.3 million for the three months ended September 30, 2025 compared to $634,000 for the three months ended September 30, 2024. The provision for the three months ended September 30, 2025 was primarily attributable to an increase in loan volume, an increase in the quantitative modeling reserve for the commercial real estate segment due to the conversion of construction loans to permanent financing, and growth in securities held-to-maturity that require an allowance. The allowance for credit losses on loans to total loans receivable was 1.27% at September 30, 2025 compared to 1.24% at June 30, 2025.
  
• Loans classified as substandard and special mention totaled $43.5 million at September 30, 2025 and $45.4 million at June 30, 2025, a decrease of $1.9 million. Of the loans classified as substandard or special mention, $40.0 million were performing at September 30, 2025. There were no loans classified as doubtful or loss at September 30, 2025 or June 30, 2025.
  
• Net charge-offs on loans amounted to $60,000 and $114,000 for the three months ended September 30, 2025 and 2024, respectively, a decrease of $54,000. There were no material charge-offs in any loan segment during the three months ended September 30, 2025.
  
• Nonperforming loans amounted to $3.6 million at September 30, 2025 and $3.1 million at June 30, 2025. The activity in nonperforming loans during the period included $134,000 in loan repayments, $1,600 in charge-offs or transfers to foreclosure, and $637,000 of loans placed into nonperforming status. At September 30, 2025, nonperforming assets were 0.12% of total assets compared to 0.10% at June 30, 2025. At September 30, 2025, nonperforming loans were 0.22% of net loans compared to 0.19% at June 30, 2025.
  

Noninterest Income and Noninterest Expense

• Noninterest income increased $249,000, or 6.7%, to $4.0 million for the three months ended September 30, 2025 compared to $3.7 million for the three months ended September 30, 2024. The increase during the three months ended September 30, 2025 was primarily due to an increase in income earned on customer interest rate swap contracts of $170,000 and an increase in customer service fees of $81,000.
  
• Noninterest expense increased $511,000, or 5.4%, to $10.1 million for the three months ended September 30, 2025 compared to $9.6 million for the three months ended September 30, 2024. The increase during the three months ended September 30, 2025 was primarily due to an increase of $278,000 in salaries and employee benefits, due to new positions created during the period to support the Company’s continued growth, an increase of $110,000 in bank service charges, and an increase of $104,000 in service and computer data processing expenses. This was partially offset by a $547,000 decrease in the unfunded commitment expense, due to a decrease in the Company’s contractual obligation to extend credit. There was also an increase in other noninterest expense as the bank made a $250,000 charitable donation to the Bank of Greene County Charitable Foundation during the three months ended September 30, 2025.
  

Income Taxes

• Provision for income taxes reflects the expected tax associated with the pre-tax income generated for the given period and certain regulatory requirements. The effective tax rate was 12.9% for the three months ended September 30, 2025 and 6.4% for the three months ended September 30, 2024. The statutory tax rate is impacted by the benefits derived from tax-exempt bond and loan income, the Company’s real estate investment trust subsidiary income, income received on the bank owned life insurance and tax credits, to arrive at the effective tax rate. The increase during the three months ended September 30, 2025, is primarily due to higher pre-tax income and reflects a lower mix of tax-exempt income from municipal bonds, tax advantage loans, and bank owned life insurance in proportion to pre-tax income.
  

Balance Sheet Summary

• Total assets of the Company were $3.1 billion at September 30, 2025 and $3.0 billion at June 30, 2025, an increase of $17.9 million, or 0.6%.
  
• Total cash and cash equivalents for the Company were $154.6 million at September 30, 2025 and $183.1 million at June 30, 2025. The Company has continued to maintain strong capital and liquidity positions as of September 30, 2025.
  
• Securities available-for-sale and held-to-maturity increased $5.0 million, or 0.4%, to $1.1 billion at September 30, 2025 as compared to $1.1 billion at June 30, 2025. Securities purchases totaled $93.3 million during the three months ended September 30, 2025, and consisted primarily of $82.2 million of state and political subdivision securities, $5.7 million of mortgage-backed securities, $3.5 million of corporate debt securities, and $1.9 million of collateralized mortgage obligations. Principal pay-downs and maturities during the three months ended September 30, 2025, amounted to $90.1 million, primarily consisting of $78.6 million of state and political subdivision securities, $8.9 million of mortgage-backed securities, $1.6 million of corporate debt securities, and $1.0 million of collateralized mortgage obligations.
  
• Net loans receivable increased $42.3 million, or 2.6%, to $1.65 billion at September 30, 2025 as compared to $1.61 million at June 30, 2025. Loan growth experienced during the three months ended September 30, 2025, consisted primarily of $32.3 million in commercial real estate loans, $9.2 million in commercial loans, and $3.1 million in home equity loans. The allowance for credit losses on loans increased $1.1 million, or 5.7%, to $21.3 million at September 30, 2025 as compared to $20.1 million at June 30, 2025. The increase in the allowance for credit losses was primarily attributable to an increase in loan volume and an increase in the quantitative modeling reserve for the commercial real estate segment due to the conversion of construction loans to permanent financing.
  
• Deposits totaled $2.7 billion at September 30, 2025 and $2.6 billion at June 30, 2025, an increase of $83.4 million, or 3.2%. The Company had $31.6 million and $51.6 million of brokered deposits at September 30, 2025 and June 30, 2025, respectively. NOW deposits increased $96.1 million, or 4.9%, and noninterest bearing deposits increased $12.7 million, or 11.5%, when comparing September 30, 2025 and June 30, 2025. Savings deposits decreased $11.3 million, or 4.6%, money market deposits decreased $10.2 million, or 10.0%, and certificates of deposits decreased $3.9 million, or 1.7%, when comparing September 30, 2025 and June 30, 2025.
  
• Borrowings amounted to $54.1 million at September 30, 2025 compared to $128.1 million at June 30, 2025, a decrease of $74.0 million. At September 30, 2025, borrowings included $49.9 million of Fixed-to-Floating Rate Subordinated Notes and $4.2 million of long-term borrowings with the Federal Home Loan Bank of New York (“FHLB”). There were no overnight borrowings with the FHLB at September 30, 2025.
• Shareholders’ equity increased to $248.2 million at September 30, 2025 compared to $238.8 million at June 30, 2025, resulting primarily from net income of $8.9 million and a decrease in accumulated other comprehensive loss of $1.3 million, partially offset by dividends declared and paid of $781,000.
  

Corporate Overview

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.

Forward-Looking Statements

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.

Non-GAAP Measures

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.

Greene County Bancorp, Inc. Consolidated Statements of Income, and Selected Financial Ratios (Unaudited)
	At or for the Three Months
	Ended September 30,
Dollars in thousands, except share and per share data		2025			2024
Interest income	$	31,623		$	27,769
Interest expense		14,103			14,633
Net interest income		17,520			13,136
Provision for credit losses		1,257			634
Noninterest income		3,986			3,737
Noninterest expense		10,061			9,550
Income before taxes		10,188			6,689
Tax provision		1,318			428
Net income	$	8,870		$	6,261
Basic and diluted EPS	$	0.52		$	0.37
Weighted average shares outstanding		17,026,828			17,026,828
Dividends declared per share (4)	$	0.10		$	0.09
Selected Financial Ratios
Return on average assets(1)		1.21	%		0.93	%
Return on average equity(1)		14.59	%		11.86	%
Net interest rate spread(1)		2.25	%		1.76	%
Net interest margin(1)		2.48	%		2.03	%
Fully taxable-equivalent net interest margin(2)		2.79	%		2.29	%
Efficiency ratio(3)		46.78	%		56.60	%
Non-performing assets to total assets		0.12	%		0.13	%
Non-performing loans to net loans		0.22	%		0.25	%
Allowance for credit losses on loans to non-performing loans		597.92	%		542.39	%
Allowance for credit losses on loans to total loans		1.27	%		1.32	%
Shareholders’ equity to total assets		8.11	%		7.52	%
Dividend payout ratio(4)		19.23	%		24.32	%
Actual dividends paid to net income(5)		8.80	%		24.48	%
Book value per share	$	14.58		$	12.70
(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 December 31, 2023, March 31, 2024, June 30, 2024, March 31, 2025, June 30, 2025, and September 30, 2025. Dividends declared during the three months ended September 30, 2023, September 30, 2024, and December 31, 2024, were paid to the MHC.

Greene County Bancorp, Inc. Consolidated Statements of Financial Condition (Unaudited)
	At September 30, 2025				At June 30, 2025
Dollars In thousands, except share data
Assets
Cash and due from banks	$	27,373			$	12,788
Interest-bearing deposits		127,194				170,290
Total cash and cash equivalents		154,567				183,078
Long term certificate of deposit		1,425				1,425
Securities available-for-sale, at fair value		350,073				356,062
Securities held-to-maturity, at amortized cost, net of allowance for credit losses of $599 and $548 at September 30, 2025 and June 30, 2025		787,132				776,147
Equity securities, at fair value		391				402
Federal Home Loan Bank stock, at cost		2,311				5,504
Loans receivable		1,670,847				1,627,406
Less: Allowance for credit losses on loans		(21,292	)			(20,146	)
Net loans receivable		1,649,555				1,607,260
Premises and equipment, net		15,355				15,232
Bank owned life insurance		60,447				59,795
Accrued interest receivable		17,321				16,381
Prepaid expenses and other assets		19,968				19,323
Total assets	$	3,058,545			$	3,040,609
Liabilities and shareholders’ equity
Noninterest bearing deposits	$	122,871			$	110,163
Interest bearing deposits		2,600,316				2,529,672
Total deposits		2,723,187				2,639,835
Borrowings, short-term		-				74,000
Borrowings, long-term		4,189				4,189
Subordinated notes payable, net		49,904				49,867
Accrued expenses and other liabilities		33,089				33,881
Total liabilities		2,810,369				2,801,772
Total shareholders’ equity		248,176				238,837
Total liabilities and shareholders’ equity	$	3,058,545			$	3,040,609
Common shares outstanding		17,026,828				17,026,828
Treasury shares		195,852				195,852

The above information is preliminary and based on the Company’s data available at the time of presentation.

Non-GAAP to GAAP Reconciliations

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

	For the three months ended September 30,
(Dollars in thousands)		2025			2024
Net interest income (GAAP)	$	17,520		$	13,136
Tax-equivalent adjustment(1)		2,225			1,713
Net interest income-fully taxable-equivalent basis (non-GAAP)	$	19,745		$	14,849
Average interest-earning assets (GAAP)	$	2,829,350		$	2,589,580
Net interest margin-fully taxable-equivalent basis (non-GAAP)		2.79	%		2.29	%

⁽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 months ended September 30, 2025 and 2024, 4.44% for New York State income taxes for the three months ended September 30, 2025 and 2024.

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

	For the three months ended
(Dollars in thousands)	September 30, 2025		September 30, 2024
Net income (GAAP)	$	8,870	$	6,261
Provision for credit losses		1,257		634
Pre-provision net income (non-GAAP)	$	10,127	$	6,895

The above information is preliminary and based on the Company’s data available at the time of presentation.

For Further Information Contact:
Donald E. Gibson
President & CEO
(518) 943-2600
donaldg@tbogc.com

Nick Barzee
SVP & CFO
(518) 943-2600
nickb@tbogc.com

FAQ

What was Greene County Bancorp (GCBC) net income for Q1 fiscal 2026?

GCBC reported $8.9 million net income for the three months ended September 30, 2025.

How did GCBC's net interest margin change in Q1 2026?

Net interest margin increased to 2.48% for the three months ended September 30, 2025.

What record balance sheet metrics did Greene County Bancorp report on September 30, 2025?

GCBC reported record $3.1B total assets, $1.6B net loans, and $2.7B total deposits.

When is Greene County Bancorp opening its Clifton Park branch in Saratoga County?

The company finalized expansion with a grand opening and ribbon cutting on October 25, 2025.

Did GCBC's provision for credit losses change in Q1 2026?

Yes. Provision for credit losses rose to $1.3M for the three months ended September 30, 2025 from $634K a year earlier.

How did GCBC reduce its reliance on borrowings in Q1 2026?

Borrowings decreased by $74.0M to $54.1M at September 30, 2025, improving liquidity metrics.