Greene County Bancorp Reports 31% Increase in Net Income for December 2024 Quarter

Greene County Bancorp, Inc. reported a net income of $7.5 million for the three months ended December 31, 2024, a 31.0% increase from $5.7 million in the same period of the previous year. For the six months ended December 31, 2024, net income rose to $13.8 million, up from $12.2 million in the prior year, reflecting a 13.2% increase. The company's total interest income for the latest quarter was $29.4 million, compared to $25.6 million a year earlier, driven by higher yields on loans and securities. Interest expense also increased, amounting to $15.4 million for the quarter, up from $13.2 million, primarily due to rising interest rates affecting the cost of deposits.

In terms of asset growth, total assets increased by 5.0% to $2.97 billion as of December 31, 2024, compared to $2.83 billion at the end of June 2024. The increase was largely attributed to a $51 million rise in net loans receivable, which reached $1.53 billion, and a $105 million increase in securities available-for-sale and held-to-maturity, totaling $1.1 billion. The company’s allowance for credit losses on loans rose to $20.2 million, or 1.30% of total loans, reflecting a conservative approach to credit risk management amid changing economic conditions.

Operationally, Greene County Bancorp continues to expand its customer base, with total deposits increasing by 3.3% to $2.47 billion. The growth in deposits was driven by a $75.7 million increase in NOW deposits and a $38.3 million rise in certificates of deposit. However, noninterest-bearing deposits decreased by $13 million, indicating a shift in customer preferences. The company maintained a strong liquidity position, with $166.4 million in cash and cash equivalents, representing 5.6% of total assets.

Strategically, Greene County Bancorp has focused on enhancing its product offerings and customer engagement. The company reported an increase in noninterest income, which rose to $3.9 million for the latest quarter, up 11.4% from the previous year, driven by higher service charges and fees. The bank has also been actively managing its interest rate risk, implementing a strategic reduction in deposit rates in response to the Federal Reserve's rate cuts, while continuing to offer competitive financial solutions to its customers.

Looking ahead, Greene County Bancorp remains cautiously optimistic about its growth trajectory. The company plans to continue monitoring economic conditions and adjusting its strategies accordingly to mitigate risks associated with interest rate fluctuations and credit quality. Management emphasized the importance of maintaining strong capital and liquidity positions to support ongoing operations and future growth initiatives.