United States
|
|
14-1809721
|
(State or Other Jurisdiction of Incorporation or Organization)
|
|
(I.R.S. Employer Identification No.)
|
302 Main Street, Catskill, New York
|
|
12414
|
(Address of Principal Executive Office)
|
|
(Zip Code)
|
Title of class
|
Trading symbol
|
Name of exchange on which registered
|
Common Stock, $0.10 par value
|
GCBC
|
The Nasdaq Stock Market
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
Non-accelerated filer ☒
|
Smaller reporting company ☒
|
Emerging Growth Company ☐
|
ITEM 1. |
Business
|
|
(a) |
changes in general market interest rates,
|
|
(b) |
general economic conditions,
|
|
(c) |
economic or policy changes related to the COVID-19 pandemic,
|
|
(d) |
legislative and regulatory changes,
|
|
(e) |
monetary and fiscal policies of the U.S. Treasury and the Federal Reserve,
|
|
(f) |
changes in the quality or composition of Greene County Bancorp, Inc.’s loan and investment portfolios,
|
|
(g) |
deposit flows,
|
|
(h) |
competition, and
|
|
(i) |
demand for financial services in Greene County Bancorp, Inc.’s market area.
|
(in thousands)
|
||||||||||||||||
Balance sheet data as of June 30, 2020:
|
Assets
|
Deposits
|
Borrowings
|
Equity
|
||||||||||||
Greene County Bancorp, Inc. (consolidated)
|
$
|
1,676,803
|
$
|
1,501,075
|
$
|
25,484
|
$
|
128,805
|
||||||||
The Bank of Greene County (consolidated)
|
1,673,263
|
1,503,280
|
18,484
|
130,876
|
||||||||||||
Greene County Commercial Bank
|
674,750
|
579,269
|
-
|
62,472
|
||||||||||||
Greene Property Holdings, Ltd.
|
578,132
|
-
|
-
|
578,132
|
||||||||||||
Greene Risk Management, Inc.
|
4,262
|
-
|
-
|
2,700
|
|
• |
the total capital distributions for the applicable calendar year exceed the sum of the association’s net income for that year to date plus the association’s retained net income for the preceding two years;
|
|
• |
the association would not be at least adequately capitalized following the distribution;
|
|
• |
the distribution would violate any applicable statute, regulation, agreement or OCC-imposed condition; or
|
|
• |
the association is not eligible for expedited treatment of its filings.
|
|
• |
the association would be undercapitalized following the distribution;
|
|
• |
the proposed capital distribution raises safety and soundness concerns; or
|
|
• |
the capital distribution would violate a prohibition contained in any statute, regulation or agreement.
|
|
• |
Surcharges on large banks (total consolidated assets of $10 billion or more) ended; the last surcharge on large banks was collected on December 28, 2018.
|
|
• |
Small banks (total consolidated assets of less than $10 billion) were awarded assessment credits for the portion of their assessments that contributed to the growth in the reserve ratio from 1.15 percent to 1.35 percent, to be applied
when the reserve ratio is at least 1.38 percent.
|
|
• |
Truth-In-Lending Act, governing disclosures of credit terms to consumer borrowers;
|
|
• |
Home Mortgage Disclosure Act, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of
the community it serves;
|
|
• |
Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit;
|
|
• |
Fair Credit Reporting Act, governing the use and provision of information to credit reporting agencies;
|
|
• |
Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies;
|
|
• |
Truth in Savings Act; and
|
|
• |
rules and regulations of the various federal agencies charged with the responsibility of implementing such federal laws.
|
|
• |
Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records;
|
|
• |
Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and
other electronic banking services;
|
|
• |
Check Clearing for the 21st Century Act (also known as “Check 21”), which gives “substitute checks,” such as digital check images and copies made from that image, the same
legal standing as the original paper check;
|
|
• |
The USA PATRIOT Act, which requires financial institutions to, among other things, establish broadened anti-money laundering compliance programs, and due diligence policies and controls to ensure the detection and reporting of money
laundering. Such required compliance programs are intended to supplement existing compliance requirements that also apply to financial institutions under the Bank Secrecy Act and the Office of Foreign Assets Control regulations; and
|
|
• |
The Gramm-Leach-Bliley Act, which places limitations on the sharing of consumer financial information by financial institutions with unaffiliated third parties. Specifically, the Gramm-Leach-Bliley Act requires all financial institutions
offering financial products or services to retail customers to provide such customers with the financial institution’s privacy policy and provide such customers the opportunity to “opt out” of the sharing of certain personal financial
information with unaffiliated third parties.
|
|
• |
Allowing institutions not to characterize loan modifications relating to the COVID-19 pandemic as a troubled debt restructuring and also allowing them to suspend the corresponding impairment determination for
accounting purposes.
|
|
• |
Temporarily reducing the Community Bank Leverage Ratio (the “CBLR”) to 8%. This law also states that if a qualifying community bank falls below the CBLR, it “shall have a reasonable grace period to satisfy” the
CBLR. This provision terminates on the earlier of December 31, 2020 or the date the President declares that the coronavirus emergency is terminated.
|
|
• |
The ability of a borrower of a federally backed mortgage loan (VA, FHA, USDA, Freddie and Fannie) experiencing financial hardship due, directly or indirectly, to the COVID-19 pandemic to request forbearance from
paying their mortgage by submitting a request to the borrower’s servicer affirming their financial hardship during the COVID-19 emergency. Such a forbearance will be granted for up to 180 days, which can be extended for an additional
180-day period upon the request of the borrower. During that time, no fees, penalties or interest beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the mortgage contract
will accrue on the borrower’s account.
|
|
• |
The ability of a borrower of a multi-family federally backed mortgage loan that was current as of February 1, 2020, to submit a request for forbearance to the borrower’s servicer affirming that the borrower is
experiencing financial hardship during the COVID-19 emergency. A forbearance will be granted for up to 30 days, which can be extended for up to two additional 30-day periods upon the request of the borrower. During the time of the
forbearance, the multi-family borrower cannot evict or initiate the eviction of a tenant or charge any late fees, penalties or other charges to a tenant for late payment of rent. Additionally, a multi-family borrower that receives a
forbearance may not require a tenant to vacate a dwelling unit before a date that is 30 days after the date on which the borrower provides the tenant notice to vacate and may not issue a notice to vacate until after the expiration of the
forbearance.
|
ITEM 1A. |
Risk Factors
|
ITEM 1B. |
Unresolved Staff Comments
|
ITEM 2. |
Properties
|
ITEM 3. |
Legal Proceedings
|
ITEM 4. |
Mine Safety Disclosures
|
ITEM 5. |
Market for Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
ITEM 6. |
Selected Financial Data
|
(Dollars in thousands, except per share amounts)
|
2020
|
2019
|
2018
|
|||||||||
SELECTED FINANCIAL CONDITION DATA:
|
||||||||||||
Total assets
|
$
|
1,676,803
|
$
|
1,269,462
|
$
|
1,151,478
|
||||||
Loans receivable, net
|
993,522
|
785,738
|
704,431
|
|||||||||
Securities available-for-sale
|
226,709
|
122,728
|
120,806
|
|||||||||
Securities held-to-maturity
|
383,657
|
304,208
|
274,550
|
|||||||||
Equity securities
|
267
|
253
|
217
|
|||||||||
Deposits
|
1,501,075
|
1,120,569
|
1,025,234
|
|||||||||
Shareholders’ equity
|
128,805
|
112,369
|
96,191
|
|||||||||
AVERAGE BALANCES:
|
||||||||||||
Total assets
|
1,470,870
|
1,198,340
|
1,073,980
|
|||||||||
Interest-earning assets
|
1,450,398
|
1,180,201
|
1,056,101
|
|||||||||
Loans receivable, net
|
861,322
|
745,161
|
659,132
|
|||||||||
Securities
|
528,131
|
400,894
|
359,661
|
|||||||||
Deposits
|
1,318,027
|
1,052,146
|
952,753
|
|||||||||
Borrowings
|
15,300
|
30,192
|
22,913
|
|||||||||
Shareholders’ equity
|
120,387
|
103,894
|
89,540
|
|||||||||
SELECTED OPERATIONS DATA:
|
||||||||||||
Total interest income
|
53,314
|
46,308
|
38,928
|
|||||||||
Total interest expense
|
8,481
|
6,308
|
4,014
|
|||||||||
Net interest income
|
44,833
|
40,000
|
34,914
|
|||||||||
Provision for loan losses
|
3,905
|
1,659
|
1,530
|
|||||||||
Net interest income after provision for loan losses
|
40,928
|
38,341
|
33,384
|
|||||||||
Total noninterest income
|
8,650
|
8,361
|
7,481
|
|||||||||
Total noninterest expense
|
27,822
|
25,676
|
22,362
|
|||||||||
Income before provision for income taxes
|
21,756
|
21,026
|
18,503
|
|||||||||
Provision for income taxes
|
3,029
|
3,542
|
4,095
|
|||||||||
Net income
|
18,727
|
17,484
|
14,408
|
|||||||||
FINANCIAL RATIOS:
|
||||||||||||
Return on average assets1
|
1.27
|
%
|
1.46
|
%
|
1.34
|
%
|
||||||
Return on average shareholders’ equity2
|
15.56
|
16.83
|
16.09
|
|||||||||
Noninterest expenses to average total assets
|
1.89
|
2.14
|
2.08
|
|||||||||
Average interest-earning assets to average interest-bearing liabilities
|
118.84
|
120.31
|
120.36
|
|||||||||
Net interest rate spread3
|
2.98
|
3.28
|
3.23
|
|||||||||
Net interest margin4
|
3.09
|
3.39
|
3.31
|
|||||||||
Efficiency ratio5
|
52.02
|
53.09
|
52.75
|
|||||||||
Shareholders’ equity to total assets, at end of period
|
7.68
|
8.85
|
8.35
|
|||||||||
Average shareholders’ equity to average assets
|
8.18
|
8.67
|
8.34
|
|||||||||
Dividend payout ratio6
|
20.00
|
19.51
|
23.08
|
|||||||||
Actual dividends declared to net income7
|
11.95
|
11.65
|
10.59
|
|||||||||
Nonperforming assets to total assets, at end of period
|
0.24
|
0.29
|
0.32
|
|||||||||
Nonperforming loans to net loans, at end of period
|
0.41
|
0.46
|
0.51
|
|||||||||
Allowance for loan losses to nonperforming loans
|
402.04
|
362.84
|
335.96
|
|||||||||
Allowance for loan losses to total loans receivable
|
1.62
|
1.65
|
1.68
|
|||||||||
Book value per share8
|
$
|
15.13
|
$
|
13.16
|
$
|
11.27
|
||||||
Basic earnings per share
|
2.20
|
2.05
|
1.69
|
|||||||||
Diluted earnings per share
|
2.20
|
2.05
|
1.69
|
|||||||||
OTHER DATA:
|
||||||||||||
Closing market price of common stock
|
$
|
22.30
|
$
|
29.42
|
$
|
33.90
|
||||||
Number of full-service offices
|
16
|
15
|
14
|
|||||||||
Number of full-time equivalent employees
|
182
|
169
|
156
|
1
|
Ratio of net income to average total assets.
|
2
|
Ratio of net income to average shareholders’ equity.
|
3
|
The difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
|
4
|
Net interest income as a percentage of average interest-earning assets.
|
5
|
Noninterest expense divided by the sum of net interest income and noninterest income.
|
6
|
Dividends per share divided by basic earnings per share. This calculation does not take into account the waiver of dividends by Greene County Bancorp, MHC.
|
7
|
Dividends declared divided by net income.
|
8
|
Shareholders’ equity divided by outstanding shares.
|
ITEM 7. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
At June 30,
|
||||||||||||||||||||||||
2020
|
2019
|
2018
|
||||||||||||||||||||||
(Dollars in thousands)
|
Carrying
Amount
|
Percent
of total
|
Carrying
Amount
|
Percent
of total
|
Carrying
Amount
|
Percent
of total
|
||||||||||||||||||
Securities available-for-sale:
|
||||||||||||||||||||||||
U.S. government sponsored enterprises
|
$
|
504
|
0.1
|
%
|
$
|
5,553
|
1.3
|
%
|
$
|
5,531
|
1.4
|
%
|
||||||||||||
State and political subdivisions
|
177,107
|
29.0
|
96,570
|
22.6
|
92,255
|
23.4
|
||||||||||||||||||
Mortgage-backed securities-residential
|
15,528
|
2.5
|
2,645
|
0.6
|
3,247
|
0.8
|
||||||||||||||||||
Mortgage-backed securities-multi-family
|
28,910
|
4.7
|
16,410
|
3.8
|
18,069
|
4.6
|
||||||||||||||||||
Corporate debt securities
|
4,660
|
0.8
|
1,550
|
0.4
|
1,704
|
0.4
|
||||||||||||||||||
Total securities available-for-sale
|
226,709
|
37.1
|
122,728
|
28.7
|
120,806
|
30.6
|
||||||||||||||||||
Securities held-to-maturity:
|
||||||||||||||||||||||||
U.S. government sponsored enterprises
|
2,000
|
0.3
|
9,249
|
2.2
|
9,245
|
2.3
|
||||||||||||||||||
State and political subdivisions
|
210,535
|
34.5
|
152,358
|
35.7
|
136,335
|
34.5
|
||||||||||||||||||
Mortgage-backed securities-residential
|
38,884
|
6.4
|
4,570
|
1.1
|
6,472
|
1.6
|
||||||||||||||||||
Mortgage-backed securities-multi-family
|
127,582
|
20.9
|
134,970
|
31.6
|
118,780
|
30.0
|
||||||||||||||||||
Corporate debt securities
|
2,593
|
0.4
|
1,478
|
0.3
|
1,466
|
0.4
|
||||||||||||||||||
Other securities
|
2,063
|
0.4
|
1,583
|
0.4
|
2,252
|
0.6
|
||||||||||||||||||
Total securities held-to-maturity
|
383,657
|
62.9
|
304,208
|
71.3
|
274,550
|
69.4
|
||||||||||||||||||
Total securities
|
$
|
610,366
|
100.0
|
%
|
$
|
426,936
|
100.0
|
%
|
$
|
395,356
|
100.0
|
%
|
(Dollars in thousands)
|
In One Year
or Less
|
After One
Year
through
Five Years
|
After Five
Years
through Ten
Years
|
After Ten Years
|
Total
|
|||||||||||||||
Securities available-for-sale:
|
||||||||||||||||||||
U.S. government sponsored enterprises
|
$
|
504
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
504
|
||||||||||
State and political subdivisions
|
173,879
|
3,183
|
45
|
-
|
177,107
|
|||||||||||||||
Mortgage-backed securities-residential
|
-
|
38
|
1,266
|
14,224
|
15,528
|
|||||||||||||||
Mortgage-backed securities-multi-family
|
115
|
10,517
|
16,036
|
2,242
|
28,910
|
|||||||||||||||
Corporate debt securities
|
-
|
1,097
|
1,558
|
2,005
|
4,660
|
|||||||||||||||
Total securities available-for-sale
|
174,498
|
14,835
|
18,905
|
18,471
|
226,709
|
|||||||||||||||
Securities held-to-maturity:
|
||||||||||||||||||||
U.S. government sponsored enterprises
|
2,011
|
-
|
-
|
-
|
2,011
|
|||||||||||||||
State and political subdivisions
|
34,474
|
92,885
|
60,076
|
37,383
|
224,818
|
|||||||||||||||
Mortgage-backed securities-residential
|
797
|
149
|
1,518
|
37,407
|
39,871
|
|||||||||||||||
Mortgage-backed securities-multi-family
|
3,975
|
63,157
|
58,986
|
8,123
|
134,241
|
|||||||||||||||
Corporate debt securities
|
-
|
-
|
1,510
|
960
|
2,470
|
|||||||||||||||
Other securities
|
1,397
|
632
|
20
|
52
|
2,101
|
|||||||||||||||
Total securities held-to-maturity
|
42,654
|
156,823
|
122,110
|
83,925
|
405,512
|
|||||||||||||||
Total securities
|
$
|
217,152
|
$
|
171,658
|
$
|
141,015
|
$
|
102,396
|
$
|
632,221
|
||||||||||
Weighted Average Yield
|
1.80
|
%
|
2.48
|
%
|
2.43
|
%
|
2.17
|
%
|
2.18
|
%
|
At June 30,
|
||||||||||||||||||||||||||||||||||||||||
2020
|
2019
|
2018
|
2017
|
2016
|
||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||||||||||||||
Residential real estate
|
$
|
279,332
|
27.58
|
%
|
$
|
267,802
|
33.55
|
%
|
$
|
255,848
|
35.75
|
%
|
$
|
245,331
|
38.67
|
%
|
$
|
234,992
|
44.23
|
%
|
||||||||||||||||||||
Residential construction and land
|
11,847
|
1.17
|
7,462
|
0.93
|
9,951
|
1.39
|
7,160
|
1.13
|
5,575
|
1.05
|
||||||||||||||||||||||||||||||
Multi-family
|
25,104
|
2.48
|
24,592
|
3.08
|
14,961
|
2.09
|
9,199
|
1.45
|
3,918
|
0.74
|
||||||||||||||||||||||||||||||
Commercial real estate
|
381,415
|
37.67
|
329,668
|
41.31
|
283,935
|
39.68
|
257,964
|
40.67
|
192,678
|
36.27
|
||||||||||||||||||||||||||||||
Commercial construction
|
74,920
|
7.40
|
36,361
|
4.56
|
39,366
|
5.50
|
28,430
|
4.48
|
20,159
|
3.79
|
||||||||||||||||||||||||||||||
Total real estate loans
|
772,618
|
76.30
|
665,885
|
83.43
|
604,061
|
84.41
|
548,084
|
86.40
|
457,322
|
86.08
|
||||||||||||||||||||||||||||||
Consumer loans
|
||||||||||||||||||||||||||||||||||||||||
Home equity
|
22,106
|
2.18
|
23,185
|
2.91
|
21,919
|
3.06
|
21,076
|
3.32
|
20,893
|
3.93
|
||||||||||||||||||||||||||||||
Consumer installment(1)
|
4,817
|
0.48
|
5,481
|
0.69
|
5,017
|
0.70
|
4,790
|
0.76
|
4,350
|
0.82
|
||||||||||||||||||||||||||||||
Total consumer loans
|
26,923
|
2.66
|
28,666
|
3.60
|
26,936
|
3.76
|
25,866
|
4.08
|
25,243
|
4.75
|
||||||||||||||||||||||||||||||
Commercial loans
|
213,119
|
21.04
|
103,554
|
12.97
|
84,644
|
11.83
|
60,381
|
9.52
|
48,725
|
9.17
|
||||||||||||||||||||||||||||||
Total consumer loans and commercial loans
|
240,042
|
23.70
|
132,220
|
16.57
|
111,580
|
15.59
|
86,247
|
13.60
|
73,968
|
13.92
|
||||||||||||||||||||||||||||||
Total gross loans
|
1,012,660
|
100.00
|
%
|
798,105
|
100.00
|
%
|
715,641
|
100.00
|
%
|
634,331
|
100.00
|
%
|
531,290
|
100.00
|
%
|
|||||||||||||||||||||||||
Less:
|
||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses
|
(16,391
|
)
|
(13,200
|
)
|
(12,024
|
)
|
(11,022
|
)
|
(9,485
|
)
|
||||||||||||||||||||||||||||||
Deferred (fees) and costs
|
(2,747
|
)
|
833
|
814
|
878
|
959
|
||||||||||||||||||||||||||||||||||
Total loans receivable, net
|
$
|
993,522
|
$
|
785,738
|
$
|
704,431
|
$
|
624,187
|
$
|
522,764
|
(1)
|
Includes direct automobile loans (on both new and used automobiles) and personal loans.
|
(In thousands)
|
Within
1 Year
|
1 Year
Through
3 Years
|
3 Years
Through
5 Years
|
5 Years
Through
10 Years
|
Beyond
10 Years
|
Total
|
||||||||||||||||||
Residential real estate
|
$
|
10,706
|
$
|
21,992
|
$
|
35,856
|
$
|
61,323
|
$
|
149,455
|
$
|
279,332
|
||||||||||||
Residential construction and land
|
11,517
|
29
|
90
|
211
|
-
|
11,847
|
||||||||||||||||||
Multi-family
|
5,719
|
5,108
|
6,544
|
7,332
|
401
|
25,104
|
||||||||||||||||||
Commercial real estate
|
105,947
|
66,788
|
88,901
|
97,155
|
22,624
|
381,415
|
||||||||||||||||||
Commercial construction
|
66,420
|
8,500
|
-
|
-
|
-
|
74,920
|
||||||||||||||||||
Consumer loans
|
16,178
|
1,998
|
3,457
|
5,235
|
55
|
26,923
|
||||||||||||||||||
Commercial loans
|
44,162
|
114,130
|
17,181
|
31,891
|
5,755
|
213,119
|
||||||||||||||||||
Total loan portfolio
|
$
|
260,649
|
$
|
218,545
|
$
|
152,029
|
$
|
203,147
|
$
|
178,290
|
$
|
1,012,660
|
At June 30,
|
||||||||||||||||||||
(Dollars in thousands)
|
2020
|
2019
|
2018
|
2017
|
2016
|
|||||||||||||||
Nonaccrual loans:
|
||||||||||||||||||||
Residential real estate
|
$
|
2,513
|
$
|
2,474
|
$
|
1,778
|
$
|
1,240
|
$
|
1,207
|
||||||||||
Multi-family
|
151
|
-
|
-
|
-
|
-
|
|||||||||||||||
Commercial real estate
|
781
|
598
|
1,147
|
1,452
|
1,899
|
|||||||||||||||
Commercial construction
|
-
|
-
|
-
|
176
|
-
|
|||||||||||||||
Home equity
|
319
|
452
|
298
|
218
|
18
|
|||||||||||||||
Consumer installment
|
-
|
6
|
18
|
10
|
-
|
|||||||||||||||
Commercial
|
313
|
108
|
276
|
476
|
202
|
|||||||||||||||
Total nonaccrual loans
|
4,077
|
3,638
|
3,517
|
3,572
|
3,326
|
|||||||||||||||
Accruing loans delinquent 90 days or more:
|
||||||||||||||||||||
Residential real estate
|
-
|
-
|
62
|
69
|
77
|
|||||||||||||||
Total accruing loans delinquent 90 days or more
|
-
|
-
|
62
|
69
|
77
|
|||||||||||||||
Foreclosed real estate:
|
||||||||||||||||||||
Residential real estate
|
-
|
53
|
119
|
-
|
61
|
|||||||||||||||
Residential construction & land
|
-
|
-
|
-
|
-
|
65
|
|||||||||||||||
Commercial real estate
|
-
|
-
|
-
|
799
|
244
|
|||||||||||||||
Total foreclosed real estate
|
-
|
53
|
119
|
799
|
370
|
|||||||||||||||
Total nonperforming assets
|
$
|
4,077
|
$
|
3,691
|
$
|
3,698
|
$
|
4,440
|
$
|
3,773
|
||||||||||
Troubled debt restructuring:
|
||||||||||||||||||||
Nonperforming (included above)
|
$
|
304
|
$
|
531
|
$
|
774
|
$
|
932
|
$
|
1,645
|
||||||||||
Performing (accruing and excluded above)
|
909
|
1,368
|
1,557
|
916
|
934
|
|||||||||||||||
Nonperforming assets to total assets
|
0.24
|
%
|
0.29
|
%
|
0.32
|
%
|
0.45
|
%
|
0.43
|
%
|
||||||||||
Nonperforming loans to net loans
|
0.41
|
%
|
0.46
|
%
|
0.51
|
%
|
0.58
|
%
|
0.65
|
%
|
|
For the years ended June 30,
|
|||||||||||
(In thousands)
|
2020
|
2019
|
2018
|
|||||||||
Interest income that would have been recorded if loans had been performing in accordance with original terms
|
$
|
296
|
$
|
257
|
$
|
230
|
||||||
Interest income that was recorded on nonaccrual loans
|
193
|
146
|
125
|
For the years ended June 30,
|
||||||||||||
(In thousands)
|
2020
|
2019
|
2018
|
|||||||||
Balance of impaired loans, with a valuation allowance
|
$
|
1,662
|
$
|
2,000
|
$
|
2,799
|
||||||
Allowances relating to impaired loans included in allowance for loan losses
|
228
|
262
|
482
|
|||||||||
Balance of impaired loans, without a valuation allowance
|
1,608
|
1,894
|
1,349
|
|||||||||
Average balance of impaired loans for the years ended
|
3,496
|
3,982
|
3,955
|
|||||||||
Interest income recorded on impaired loans during the years ended
|
169
|
160
|
100
|
At or for the Years Ended June 30,
|
||||||||||||||||||||
(Dollars in thousands)
|
2020
|
2019
|
2018
|
2017
|
2016
|
|||||||||||||||
Balance at the beginning of the period
|
$
|
13,200
|
$
|
12,024
|
$
|
11,022
|
$
|
9,485
|
$
|
8,142
|
||||||||||
Charge-offs:
|
||||||||||||||||||||
Residential real estate
|
102
|
287
|
141
|
90
|
-
|
|||||||||||||||
Commercial real estate
|
-
|
74
|
-
|
39
|
162
|
|||||||||||||||
Home equity
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Consumer installment
|
459
|
374
|
318
|
270
|
245
|
|||||||||||||||
Commercial loans
|
335
|
51
|
159
|
66
|
20
|
|||||||||||||||
Total loans charged off
|
896
|
786
|
618
|
465
|
427
|
|||||||||||||||
Recoveries:
|
||||||||||||||||||||
Residential real estate
|
16
|
13
|
-
|
-
|
-
|
|||||||||||||||
Commercial real estate
|
-
|
-
|
-
|
-
|
17
|
|||||||||||||||
Consumer installment
|
130
|
137
|
85
|
88
|
78
|
|||||||||||||||
Commercial loans
|
36
|
153
|
5
|
3
|
2
|
|||||||||||||||
Total recoveries
|
182
|
303
|
90
|
91
|
97
|
|||||||||||||||
Net charge-offs
|
714
|
483
|
528
|
374
|
330
|
|||||||||||||||
Provisions charged to operations
|
3,905
|
1,659
|
1,530
|
1,911
|
1,673
|
|||||||||||||||
Balance at the end of the period
|
$
|
16,391
|
$
|
13,200
|
$
|
12,024
|
$
|
11,022
|
$
|
9,485
|
||||||||||
Net charge-offs to average loans outstanding
|
0.08
|
%
|
0.06
|
%
|
0.08
|
%
|
0.06
|
%
|
0.07
|
%
|
||||||||||
Net charge-offs to nonperforming assets
|
17.51
|
13.09
|
14.28
|
8.42
|
8.75
|
|||||||||||||||
Allowance for loan losses to nonperforming loans
|
402.04
|
362.84
|
335.96
|
302.72
|
278.72
|
|||||||||||||||
Allowance for loan losses to total loans receivable
|
1.62
|
1.65
|
1.68
|
1.74
|
1.79
|
|||||||||||||||
Net charge-offs to average assets
|
0.05
|
0.04
|
0.05
|
0.04
|
0.04
|
At June 30, | ||||||||||||||||||||||||||||||||||||||||
|
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Amount of
loan loss
allowance
|
Percent
of loans
in each
category
to total
loans
|
Amount of
loan loss
allowance
|
Percent
of loans
in each
category
to total
loans
|
Amount of
loan loss
allowance
|
Percent
of loans
in each
category
to total
loans
|
Amount of
loan loss
allowance
|
Percent
of loans
in each
category
to total
loans
|
Amount of
loan loss
allowance
|
Percent
of loans
in each
category
to total
loans
|
||||||||||||||||||||||||||||||
Residential real estate
|
$
|
2,091
|
27.6
|
%
|
$
|
2,026
|
33.6
|
%
|
$
|
2,116
|
35.8
|
%
|
$
|
2,289
|
38.7
|
%
|
$
|
2,396
|
44.2
|
%
|
||||||||||||||||||||
Residential construction and land
|
141
|
1.2
|
87
|
0.9
|
114
|
1.4
|
89
|
1.1
|
75
|
1.1
|
||||||||||||||||||||||||||||||
Multi-family
|
176
|
2.5
|
180
|
3.1
|
162
|
2.1
|
43
|
1.4
|
22
|
0.7
|
||||||||||||||||||||||||||||||
Commercial real estate
|
8,634
|
37.6
|
7,110
|
41.3
|
5,979
|
39.6
|
5,589
|
40.7
|
4,541
|
36.3
|
||||||||||||||||||||||||||||||
Commercial construction
|
2,053
|
7.4
|
872
|
4.5
|
950
|
5.5
|
687
|
4.5
|
502
|
3.8
|
||||||||||||||||||||||||||||||
Home equity
|
295
|
2.2
|
314
|
2.9
|
317
|
3.1
|
234
|
3.3
|
309
|
3.9
|
||||||||||||||||||||||||||||||
Consumer installment
|
197
|
0.5
|
250
|
0.7
|
224
|
0.7
|
231
|
0.8
|
228
|
0.8
|
||||||||||||||||||||||||||||||
Commercial loans
|
2,804
|
21.0
|
2,361
|
13.0
|
2,128
|
11.8
|
1,680
|
9.5
|
1,412
|
9.2
|
||||||||||||||||||||||||||||||
Unallocated
|
-
|
-
|
-
|
-
|
34
|
-
|
180
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||
Totals
|
$
|
16,391
|
100.0
|
%
|
$
|
13,200
|
100.0
|
%
|
$
|
12,024
|
100.0
|
%
|
$
|
11,022
|
100.0
|
%
|
$
|
9,485
|
100.0
|
%
|
At June 30,
|
||||||||||||||||||||||||
2020
|
2019
|
2018
|
||||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||||||||
Transaction and savings deposits:
|
||||||||||||||||||||||||
Noninterest-bearing deposits
|
$
|
138,187
|
9.2
|
%
|
$
|
107,469
|
9.6
|
%
|
$
|
102,694
|
10.0
|
%
|
||||||||||||
Certificates of deposit
|
35,625
|
2.4
|
36,542
|
3.3
|
51,317
|
5.0
|
||||||||||||||||||
Savings deposits
|
241,371
|
16.1
|
214,680
|
19.2
|
216,103
|
21.1
|
||||||||||||||||||
Money market deposits
|
133,970
|
8.9
|
114,915
|
10.2
|
133,753
|
13.0
|
||||||||||||||||||
NOW deposits
|
951,922
|
63.4
|
646,963
|
57.7
|
521,367
|
50.9
|
||||||||||||||||||
Total deposits
|
$
|
1,501,075
|
100.0
|
%
|
$
|
1,120,569
|
100.0
|
%
|
$
|
1,025,234
|
100.0
|
%
|
(Dollars in thousands)
|
2020
|
2019 | ||||||
Short-term borrowings
|
||||||||
Average outstanding balance
|
$
|
3,983
|
$
|
15,085
|
||||
Interest expense
|
49
|
365
|
||||||
Weighted average interest rate during the year
|
1.23
|
%
|
2.42
|
% | ||||
Weighted average interest rate at end of year
|
0.39
|
%
|
2.45
|
% | ||||
Long-term borrowings
|
||||||||
Average outstanding balance
|
$
|
11,317
|
$
|
15,107
|
||||
Interest expense
|
191
|
247
|
||||||
Weighted average interest rate during the year
|
1.69
|
%
|
1.64
|
% | ||||
Weighted average interest rate at end of year
|
1.73
|
%
|
1.68
|
% |
For the years ended June 30,
|
||||||||
2020
|
2019
|
|||||||
Average shareholders’ equity to average assets
|
8.18
|
%
|
8.67
|
%
|
||||
Dividend payout ratio1
|
20.00
|
%
|
19.51
|
%
|
||||
Actual dividends paid to net income2
|
11.95
|
%
|
11.65
|
%
|
1
|
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 for dividends waived by Greene County Bancorp, MHC
(“MHC”), the owner of 54.1% of the Company’s shares outstanding.
|
2
|
Dividends declared divided by net income. The MHC waived its right to receive dividends declared during the three months ended June 30, 2020, March 31, 2020, September 30, 2019, June 30, 2019, March 31,
2019, and December 31, 2018. Dividends declared during the three months ended December 31, 2019 and the three months ended September 30, 2018 were paid to the MHC. The MHC’s ability to waive the receipt of dividends is dependent upon
annual approval of its members as well as receiving the non-objection of the Federal Reserve Board.
|
Fiscal Years Ended June 30,
|
||||||||||||||||||||||||
2020
|
2019
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Average
Outstanding
Balance
|
Interest
Earned/
Paid
|
Average
Yield/
Rate
|
Average
Outstanding
Balance
|
Interest
Earned/
Paid
|
Average
Yield/
Rate
|
||||||||||||||||||
Interest-earning Assets:
|
||||||||||||||||||||||||
Loans receivable1
|
$
|
875,374
|
$
|
39,159
|
4.47
|
%
|
$
|
757,722
|
$
|
35,050
|
4.63
|
%
|
||||||||||||
Securities2
|
528,131
|
13,441
|
2.55
|
400,894
|
10,660
|
2.66
|
||||||||||||||||||
Interest-earning bank balances and federal funds
|
45,488
|
622
|
1.37
|
19,486
|
452
|
2.32
|
||||||||||||||||||
FHLB stock
|
1,405
|
92
|
6.55
|
2,099
|
146
|
6.96
|
||||||||||||||||||
Total interest-earning assets
|
1,450,398
|
53,314
|
3.67
|
%
|
1,180,201
|
46,308
|
3.92
|
%
|
||||||||||||||||
Cash and due from banks
|
11,080
|
10,553
|
||||||||||||||||||||||
Allowance for loan losses
|
(14,052
|
)
|
(12,561
|
)
|
||||||||||||||||||||
Other noninterest-earning assets
|
23,444
|
20,147
|
||||||||||||||||||||||
Total assets
|
$
|
1,470,870
|
$
|
1,198,340
|
||||||||||||||||||||
Interest-Bearing Liabilities:
|
||||||||||||||||||||||||
Savings and money market deposits
|
$
|
337,463
|
$
|
1,348
|
0.40
|
%
|
$
|
331,377
|
$
|
1,247
|
0.38
|
%
|
||||||||||||
NOW deposits
|
831,469
|
6,414
|
0.77
|
578,719
|
3,964
|
0.69
|
||||||||||||||||||
Certificates of deposit
|
36,187
|
479
|
1.32
|
40,658
|
485
|
1.19
|
||||||||||||||||||
Borrowings
|
15,300
|
240
|
1.57
|
30,192
|
612
|
2.03
|
||||||||||||||||||
Total interest-bearing liabilities
|
1,220,419
|
8,481
|
0.69
|
%
|
980,946
|
6,308
|
0.64
|
%
|
||||||||||||||||
Noninterest-bearing deposits
|
112,908
|
101,392
|
||||||||||||||||||||||
Other noninterest-bearing liabilities
|
17,156
|
12,108
|
||||||||||||||||||||||
Shareholders’ equity
|
120,387
|
103,894
|
||||||||||||||||||||||
Total liabilities and equity
|
$
|
1,470,870
|
$
|
1,198,340
|
||||||||||||||||||||
Net interest income
|
$
|
44,833
|
$
|
40,000
|
||||||||||||||||||||
Net interest rate spread
|
2.98
|
%
|
3.28
|
%
|
||||||||||||||||||||
Net earnings assets
|
$
|
229,979
|
$
|
199,255
|
||||||||||||||||||||
Net interest margin
|
3.09
|
%
|
3.39
|
%
|
||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities
|
118.84
|
% |
120.31
|
% |
1
|
Calculated net of deferred loan fees and costs, loan discounts, and loans in process.
|
2
|
Includes tax-free securities, mortgage-backed securities, asset-backed securities and long term certificates of deposit.
|
For the year ended June 30,
|
||||||||
(Dollars in thousands)
|
2020
|
2019
|
||||||
Net interest income (GAAP)
|
$
|
44,833
|
$ 40,000
|
|||||
Tax-equivalent adjustment(1)
|
2,510
|
1,999
|
||||||
Net interest income (fully taxable-equivalent)
|
$
|
47,343
|
$ 41,999
|
|||||
Average interest-earning assets
|
$
|
1,450,398
|
$
|
1,180,201
|
||||
Net interest margin (fully taxable-equivalent)
|
3.26
|
%
|
3.56
|
%
|
|
(i) |
Change attributable to changes in volume (changes in volume multiplied by prior rate);
|
|
(ii) |
Change attributable to changes in rate (changes in rate multiplied by prior volume); and
|
(iii) |
The net change.
|
Years Ended June 30,
|
||||||||||||||||||||||||
2020 versus 2019
|
2019 versus 2018
|
|||||||||||||||||||||||
Increase/(Decrease)
Due To
|
Total
Increase/
|
Increase/(Decrease)
Due To
|
Total
Increase/
|
|||||||||||||||||||||
(In thousands)
|
Volume
|
Rate
|
(Decrease) |
Volume
|
Rate
|
(Decrease) | ||||||||||||||||||
Interest-earning Assets:
|
||||||||||||||||||||||||
Loans receivable, net1
|
$
|
5,344
|
$
|
(1,235
|
)
|
$
|
4,109
|
$
|
3,978
|
$
|
1,380
|
$
|
5,358
|
|||||||||||
Securities2
|
3,241
|
(460
|
)
|
2,781
|
1,057
|
831
|
1,888
|
|||||||||||||||||
Interest-earning bank balances and federal funds
|
413
|
(243
|
)
|
170
|
(79
|
)
|
179
|
100
|
||||||||||||||||
FHLB stock
|
(46
|
)
|
(8
|
)
|
(54
|
)
|
26
|
8
|
34
|
|||||||||||||||
Total interest-earning assets
|
8,952
|
(1,946
|
)
|
7,006
|
4,982
|
2,398
|
7,380
|
|||||||||||||||||
Interest-Bearing Liabilities:
|
||||||||||||||||||||||||
Savings and money market deposits
|
26
|
75
|
101
|
(7
|
)
|
173
|
166
|
|||||||||||||||||
NOW deposits
|
1,936
|
514
|
2,450
|
502
|
1,243
|
1,745
|
||||||||||||||||||
Certificates of deposit
|
(56
|
)
|
50
|
(6
|
)
|
8
|
133
|
141
|
||||||||||||||||
Borrowings
|
(255
|
)
|
(117
|
)
|
(372
|
)
|
133
|
109
|
242
|
|||||||||||||||
Total interest-bearing liabilities
|
1,651
|
522
|
2,173
|
636
|
1,658
|
2,294
|
||||||||||||||||||
Net change in net interest income
|
$
|
7,301
|
$
|
(2,468
|
)
|
$
|
4,833
|
$
|
4,346
|
$
|
740
|
$
|
5,086
|
1
|
Calculated net of deferred loan fees, loan discounts, and loans in process.
|
2
|
Includes tax-free securities, mortgage-backed securities, asset-backed securities and long term certificates of deposit.
|
(Dollars in thousands)
|
For the years ended June 30,
|
Change from Prior Year
|
||||||||||||||
2020
|
2019
|
Amount
|
Percent
|
|||||||||||||
Service charges on deposit accounts
|
$
|
3,926
|
$
|
4,117
|
$
|
(191
|
)
|
(4.64
|
)%
|
|||||||
Debit card fees
|
2,980
|
2,624
|
356
|
13.57
|
||||||||||||
Investment services
|
559
|
544
|
15
|
2.76
|
||||||||||||
E-commerce fees
|
113
|
139
|
(26
|
)
|
(18.71
|
)
|
||||||||||
Other operating income
|
1,072
|
937
|
135
|
14.41
|
||||||||||||
Total noninterest income
|
$
|
8,650
|
$
|
8,361
|
$
|
289
|
3.46
|
%
|
(Dollars in thousands)
|
For the years ended June 30,
|
Change from Prior Year
|
||||||||||||||
2020
|
2019
|
Amount
|
Percent
|
|||||||||||||
Salaries and employee benefits
|
$
|
17,170
|
$
|
15,488
|
$
|
1,682
|
10.86
|
%
|
||||||||
Occupancy expense
|
1,865
|
1,722
|
143
|
8.30
|
||||||||||||
Equipment and furniture expense
|
749
|
580
|
169
|
29.14
|
||||||||||||
Service and data processing fees
|
2,450
|
2,149
|
301
|
14.01
|
||||||||||||
Computer software, supplies and support
|
1,064
|
926
|
138
|
14.90
|
||||||||||||
Advertising and promotion
|
473
|
461
|
12
|
2.60
|
||||||||||||
FDIC insurance premiums
|
321
|
461
|
(140
|
)
|
(30.37
|
)
|
||||||||||
Legal and professional fees
|
1,111
|
1,146
|
(35
|
)
|
(3.05
|
)
|
||||||||||
Other
|
2,619
|
2,743
|
(124
|
)
|
(4.52
|
)
|
||||||||||
Total noninterest expense
|
$
|
27,822
|
$
|
25,676
|
$
|
2,146
|
8.36
|
%
|
Cash equivalents/(deposits plus short term borrowings)
|
2.66
|
%
|
||
(Cash equivalents plus unpledged securities)/(deposits plus short term borrowings)
|
9.58
|
%
|
||
(Cash equivalents plus unpledged securities plus additional borrowing capacity)/(deposits plus short term borrowings)
|
36.70
|
%
|
(In thousands)
|
2020
|
2019
|
||||||
Unfunded loan commitments
|
$
|
100,241
|
$
|
55,874
|
||||
Unused lines of credit
|
70,333
|
69,190
|
||||||
Total commitments
|
$
|
170,574
|
$
|
125,064
|
(In thousands, except per share data)
|
First Quarter
|
Second Quarter
|
Third Quarter
|
Fourth Quarter
|
||||||||||||
The year ended June 30, 2020
|
||||||||||||||||
Loans receivable, net
|
$
|
805,539
|
$
|
851,065
|
$
|
883,735
|
$
|
993,522
|
||||||||
Deposits
|
1,263,210
|
1,244,658
|
1,429,532
|
1,501,075
|
||||||||||||
Interest income
|
12,608
|
13,197
|
13,437
|
14,072
|
||||||||||||
Interest expense
|
2,108
|
2,286
|
2,296
|
1,791
|
||||||||||||
Net interest income
|
10,500
|
10,911
|
11,141
|
12,281
|
||||||||||||
Provision for loan losses
|
551
|
690
|
1,425
|
1,239
|
||||||||||||
Noninterest income
|
2,266
|
2,316
|
2,126
|
1,942
|
||||||||||||
Noninterest expense
|
6,422
|
6,535
|
7,228
|
7,637
|
||||||||||||
Income before provision for income taxes
|
5,793
|
6,002
|
4,614
|
5,347
|
||||||||||||
Net income
|
4,863
|
5,113
|
4,051
|
4,700
|
||||||||||||
Basic earnings per share
|
0.57
|
0.60
|
0.47
|
0.55
|
||||||||||||
Diluted earnings per share
|
0.57
|
0.60
|
0.47
|
0.55
|
||||||||||||
The year ended June 30, 2019
|
||||||||||||||||
Loans receivable, net
|
$
|
724,526
|
$
|
750,370
|
$
|
763,285
|
$
|
785,738
|
||||||||
Deposits
|
1,002,461
|
1,009,220
|
1,139,778
|
1,120,569
|
||||||||||||
Interest income
|
10,997
|
11,406
|
11,708
|
12,197
|
||||||||||||
Interest expense
|
1,340
|
1,411
|
1,682
|
1,875
|
||||||||||||
Net interest income
|
9,657
|
9,995
|
10,026
|
10,322
|
||||||||||||
Provision for loan losses
|
354
|
354
|
350
|
601
|
||||||||||||
Noninterest income
|
2,052
|
2,141
|
2,010
|
2,158
|
||||||||||||
Noninterest expense
|
5,961
|
6,247
|
6,486
|
6,982
|
||||||||||||
Income before provision for income taxes
|
5,394
|
5,535
|
5,200
|
4,897
|
||||||||||||
Net income
|
4,380
|
4,584
|
4,356
|
4,164
|
||||||||||||
Basic earnings per share
|
0.51
|
0.54
|
0.51
|
0.49
|
||||||||||||
Diluted earnings per share
|
0.51
|
0.54
|
0.51
|
0.49
|
ITEM 7A. |
Quantitative and Qualitative Disclosures About Market Risk
|
|
(i) |
maintaining a high level of liquid interest-earning assets such as short-term interest-earning deposits and various investment securities;
|
|
(ii) |
maintaining a high concentration of less interest-rate sensitive and lower-costing core deposits;
|
|
(iii) |
originating consumer installment loans that have up to five-year terms but that have significantly shorter average lives due to early prepayments;
|
|
(iv) |
originating adjustable-rate commercial real estate mortgage loans and commercial loans; and
|
|
(v) |
where possible, matching the funding requirements for fixed-rate residential mortgages with lower-costing core deposits.
|
Changes in Market Interest Rates (Basis Points)
|
||||||||||||||||||||||
(Dollars in thousands)
|
Company EVE
|
$ Change From
Par
|
% Change From
Par
|
EVE Ratio1 |
Change2
|
|
||||||||||||||||
+300 bp
|
|
$
|
176,610
|
$
|
(20,030
|
)
|
(10.19
|
)%
|
10.90
|
%
|
(45
|
)
|
bps
|
|||||||||
+200 bp
|
|
186,710
|
(9,930
|
)
|
(5.05
|
)
|
11.26
|
(9
|
)
|
|||||||||||||
+100 bp
|
|
193,379
|
(3,261
|
)
|
(1.66
|
)
|
11.41
|
6
|
||||||||||||||
PAR
|
196,640
|
-
|
-
|
11.35
|
-
|
|||||||||||||||||
-100 bp
|
|
218,575
|
21,935
|
11.15
|
12.37
|
102
|
1
|
Calculated as the estimated EVE divided by the present value of total assets.
|
2
|
Calculated as the excess (deficiency) of the EVE ratio assuming the indicated change in interest rates over the estimated EVE ratio assuming no change in interest rates.
|
ITEM 8. |
Financial Statements and Supplementary Data
|
|
/s/ Donald E Gibson
|
|
/s/ Michelle Plummer
|
|
|
Donald E. Gibson
|
|
Michelle Plummer, CPA, CGMA
|
|
|
President and Chief Executive Officer
|
|
Executive Vice President,
|
|
|
|
|
Chief Operating Officer and
|
|
|
|
|
Chief Financial Officer
|
|
ASSETS
|
2020
|
2019
|
||||||
Total cash and cash equivalents
|
$
|
40,463
|
$
|
29,538
|
||||
Long term certificates of deposit
|
4,070
|
2,875
|
||||||
Securities available-for-sale, at fair value
|
226,709
|
122,728
|
||||||
Securities held-to-maturity, at amortized cost (fair value $405,512 at June 30, 2020; $313,613 at June 30, 2019)
|
383,657
|
304,208
|
||||||
Equity securities, at fair value
|
267
|
253
|
||||||
Federal Home Loan Bank stock, at cost
|
1,226
|
1,759
|
||||||
Loans
|
1,012,660
|
798,105
|
||||||
Allowance for loan losses
|
(16,391
|
)
|
(13,200
|
)
|
||||
Unearned origination fees and costs, net
|
(2,747
|
)
|
833
|
|||||
Net loans receivable
|
993,522
|
785,738
|
||||||
Premises and equipment, net
|
13,658
|
13,255
|
||||||
Accrued interest receivable
|
8,207
|
5,853
|
||||||
Foreclosed real estate
|
-
|
53
|
||||||
Prepaid expenses and other assets
|
5,024
|
3,202
|
||||||
Total assets
|
$
|
1,676,803
|
$
|
1,269,462
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Noninterest-bearing deposits
|
$
|
138,187
|
$
|
107,469
|
||||
Interest-bearing deposits
|
1,362,888
|
1,013,100
|
||||||
Total deposits
|
1,501,075
|
1,120,569
|
||||||
Borrowings from Federal Home Loan Bank, short-term
|
-
|
8,000
|
||||||
Borrowings from other banks, short-term
|
17,884
|
-
|
||||||
Borrowings from Federal Home Loan Bank, long-term
|
7,600
|
13,600
|
||||||
Accrued expenses and other liabilities
|
21,439
|
14,924
|
||||||
Total liabilities
|
1,547,998
|
1,157,093
|
||||||
SHAREHOLDERS’ EQUITY
|
||||||||
Preferred stock, Authorized - 1,000,000 shares; Issued - None
|
-
|
-
|
||||||
Common stock, par value $.10 per share; Authorized - 12,000,000 shares; Issued – 8,611,340 Outstanding – 8,513,414 shares at June 30, 2020, and 8,537,814 at June 30, 2019
|
861
|
861
|
||||||
Additional paid-in capital
|
11,017
|
11,017
|
||||||
Retained earnings
|
118,263
|
101,774
|
||||||
Accumulated other comprehensive loss
|
(428
|
)
|
(1,006
|
)
|
||||
Treasury stock, at cost 97,926 shares at June 30, 2020, and 73,526 shares at June 30, 2019
|
(908
|
)
|
(277
|
)
|
||||
Total shareholders’ equity
|
128,805
|
112,369
|
||||||
Total liabilities and shareholders’ equity
|
$
|
1,676,803
|
$
|
1,269,462
|
2020
|
2019
|
|||||||
Interest income:
|
||||||||
Loans
|
$
|
39,159
|
$
|
35,050
|
||||
Investment securities - taxable
|
654
|
798
|
||||||
Mortgage-backed securities
|
5,804
|
4,285
|
||||||
Investment securities - tax exempt
|
7,075
|
5,723
|
||||||
Interest-bearing deposits and federal funds sold
|
622
|
452
|
||||||
Total interest income
|
53,314
|
46,308
|
||||||
Interest expense:
|
||||||||
Interest on deposits
|
8,241
|
5,696
|
||||||
Interest on borrowings
|
240
|
612
|
||||||
Total interest expense
|
8,481
|
6,308
|
||||||
Net interest income
|
44,833
|
40,000
|
||||||
Provision for loan losses
|
3,905
|
1,659
|
||||||
Net interest income after provision for loan losses
|
40,928
|
38,341
|
||||||
Noninterest income:
|
||||||||
Service charges on deposit accounts
|
3,926
|
4,117
|
||||||
Debit card fees
|
2,980
|
2,624
|
||||||
Investment services
|
559
|
544
|
||||||
E-commerce fees
|
113
|
139
|
||||||
Other operating income
|
1,072
|
937
|
||||||
Total noninterest income
|
8,650
|
8,361
|
||||||
Noninterest expense:
|
||||||||
Salaries and employee benefits
|
17,170
|
15,488
|
||||||
Occupancy expense
|
1,865
|
1,722
|
||||||
Equipment and furniture expense
|
749
|
580
|
||||||
Service and data processing fees
|
2,450
|
2,149
|
||||||
Computer software, supplies and support
|
1,064
|
926
|
||||||
Advertising and promotion
|
473
|
461
|
||||||
FDIC insurance premiums
|
321
|
461
|
||||||
Legal and professional fees
|
1,111
|
1,146
|
||||||
Other
|
2,619
|
2,743
|
||||||
Total noninterest expense
|
27,822
|
25,676
|
||||||
Income before provision for income taxes
|
21,756
|
21,026
|
||||||
Provision for income taxes
|
3,029
|
3,542
|
||||||
Net income
|
$
|
18,727
|
$
|
17,484
|
||||
Basic earnings per share
|
$
|
2.20
|
$
|
2.05
|
||||
Basic average shares outstanding
|
8,529,927
|
8,537,814
|
||||||
Diluted earnings per share
|
$
|
2.20
|
$
|
2.05
|
||||
Diluted average shares outstanding
|
8,529,927
|
8,537,814
|
||||||
Dividends per share
|
$
|
0.44
|
$
|
0.40
|
2020
|
2019
|
|||||||
Net income
|
$
|
18,727
|
$
|
17,484
|
||||
Other comprehensive income:
|
||||||||
Unrealized holding gains on available-for-sale securities,
|
||||||||
net of income tax expense of $325 and $331, respectively
|
918
|
936
|
||||||
Pension actuarial (loss), net of income tax (benefit) of ($162) and ($108), respectively
|
(457
|
)
|
(344
|
)
|
||||
Amortization of pension actuarial losses recognized in salaries and benefits, net of income taxes of $41 and $36, respectively
|
117
|
139
|
||||||
Total other comprehensive income net of taxes
|
578
|
731
|
||||||
Comprehensive income
|
$
|
19,305
|
$
|
18,215
|
Common
Stock
|
Additional
Paid-In
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Loss
|
Treasury
Stock
|
Total
Shareholders’
Equity
|
|||||||||||||||||||
Balance at June 30, 2018
|
$
|
861
|
$
|
11,017
|
$
|
86,213
|
$
|
(1,623
|
)
|
$
|
(277
|
)
|
$
|
96,191
|
||||||||||
Impact of Adopting ASU 2016-01(1)
|
114
|
(114
|
)
|
-
|
||||||||||||||||||||
Dividends declared
|
(2,037
|
)
|
(2,037
|
)
|
||||||||||||||||||||
Net income
|
17,484
|
17,484
|
||||||||||||||||||||||
Other comprehensive income, net of taxes
|
731
|
731
|
||||||||||||||||||||||
Balance at June 30, 2019
|
$
|
861
|
$
|
11,017
|
$
|
101,774
|
$
|
(1,006
|
)
|
$
|
(277
|
)
|
$
|
112,369
|
||||||||||
Stock repurchases
|
(631
|
)
|
(631
|
)
|
||||||||||||||||||||
Dividends declared
|
(2,238
|
)
|
(2,238
|
)
|
||||||||||||||||||||
Net income
|
18,727
|
18,727
|
||||||||||||||||||||||
Other comprehensive income, net of taxes
|
578
|
578
|
||||||||||||||||||||||
Balance at June 30, 2020
|
$
|
861
|
$
|
11,017
|
$
|
118,263
|
$
|
(428
|
)
|
$
|
(908
|
)
|
$
|
128,805
|
2020
|
2019
|
|||||||
Cash flows from operating activities:
|
||||||||
Net Income
|
$
|
18,727
|
$
|
17,484
|
||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||
Depreciation
|
713
|
638
|
||||||
Deferred income tax benefit
|
(1,026
|
)
|
(967
|
)
|
||||
Net amortization of securities premiums and discounts
|
1,228
|
303
|
||||||
Net amortization of deferred loan costs and fees
|
510
|
495
|
||||||
Provision for loan losses
|
3,905
|
1,659
|
||||||
Net gain on equity securities
|
(14
|
)
|
(36
|
)
|
||||
Net (gain) loss on sale of foreclosed real estate
|
(19
|
)
|
35
|
|||||
Net decrease in accrued income taxes
|
936
|
109
|
||||||
Net increase in accrued interest receivable
|
(2,354
|
)
|
(796
|
)
|
||||
Net increase in prepaid expenses and other assets
|
(1,527
|
)
|
(43
|
)
|
||||
Net increase in accrued expenses and other liabilities
|
5,644
|
2,744
|
||||||
Net cash provided by operating activities
|
26,723
|
21,625
|
||||||
Cash flows from investing activities:
|
||||||||
Securities available-for-sale:
|
||||||||
Proceeds from maturities
|
122,384
|
105,479
|
||||||
Purchases of securities
|
(234,196
|
)
|
(108,958
|
)
|
||||
Principal payments on securities
|
8,794
|
2,793
|
||||||
Securities held-to-maturity:
|
||||||||
Proceeds from maturities
|
34,240
|
25,785
|
||||||
Purchases of securities
|
(157,297
|
)
|
(82,365
|
)
|
||||
Principal payments on securities
|
42,661
|
26,650
|
||||||
Net redemption (purchase) of Federal Home Loan Bank Stock
|
533
|
(214
|
)
|
|||||
Purchase of long term certificate of deposit
|
(1,440
|
)
|
(735
|
)
|
||||
Maturity of long term certificate of deposit
|
245
|
245
|
||||||
Net increase in loans receivable
|
(212,414
|
)
|
(83,495
|
)
|
||||
Proceeds from sale of foreclosed real estate
|
287
|
65
|
||||||
Purchases of premises and equipment
|
(1,116
|
)
|
(589
|
)
|
||||
Net cash used in investing activities
|
(397,319
|
)
|
(115,339
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Net (decrease) increase in short-term FHLB advances
|
(8,000
|
)
|
8,000
|
|||||
Proceeds from long-term FHLB advances
|
-
|
950 950
|
||||||
Repayment of long-term FHLB advances
|
(6,000
|
)
|
(5,500
|
)
|
||||
Net increase in short-term advances from other banks
|
17,884
|
-
|
||||||
Purchase of treasury stock
|
(631
|
)
|
-
|
|||||
Payment of cash dividends
|
(2,238
|
)
|
(2,037
|
)
|
||||
Net increase in deposits
|
380,506
|
95,335
|
||||||
Net cash provided by financing activities
|
381,521
|
96,748
|
||||||
Net increase in cash and cash equivalents
|
10,925
|
3,034
|
||||||
Cash and cash equivalents at beginning of year
|
29,538
|
26,504
|
||||||
Cash and cash equivalents at end of year
|
$
|
40,463
|
$
|
29,538
|
||||
Non-cash investing activities:
|
||||||||
Foreclosed loans transferred to other real estate
|
$
|
215
|
$
|
34
|
||||
Cash paid during period for:
|
||||||||
Interest
|
$
|
8,472
|
$
|
6,286
|
||||
Income taxes
|
$
|
3,119
|
$
|
4,400
|
(In thousands)
|
Amortized Cost
|
Gross Unrealized
Gains
|
Gross Unrealized
Losses
|
Estimated
Fair Value
|
||||||||||||
Securities available-for-sale:
|
||||||||||||||||
U.S. government sponsored enterprises
|
$
|
502
|
$
|
2
|
$
|
-
|
$
|
504
|
||||||||
State and political subdivisions
|
176,064
|
1,043
|
-
|
177,107
|
||||||||||||
Mortgage-backed securities-residential
|
15,148
|
380
|
-
|
15,528
|
||||||||||||
Mortgage-backed securities-multi-family
|
28,116
|
798
|
4
|
28,910
|
||||||||||||
Corporate debt securities
|
4,510
|
163
|
13
|
4,660
|
||||||||||||
Total securities available-for-sale
|
224,340
|
2,386
|
17
|
226,709
|
||||||||||||
Securities held-to-maturity:
|
||||||||||||||||
U.S. government sponsored enterprises
|
2,000
|
11
|
-
|
2,011
|
||||||||||||
State and political subdivisions
|
210,535
|
14,286
|
3
|
224,818
|
||||||||||||
Mortgage-backed securities-residential
|
38,884
|
1,002
|
15
|
39,871
|
||||||||||||
Mortgage-backed securities-multi-family
|
127,582
|
6,680
|
21
|
134,241
|
||||||||||||
Corporate debt securities
|
2,593
|
7
|
130
|
2,470
|
||||||||||||
Other securities
|
2,063
|
38
|
-
|
2,101
|
||||||||||||
Total securities held-to-maturity
|
383,657
|
22,024
|
169
|
405,512
|
||||||||||||
Total securities
|
$
|
607,997
|
$
|
24,410
|
$
|
186
|
$
|
632,221
|
(In thousands)
|
Amortized Cost
|
Gross Unrealized
Gains
|
Gross Unrealized
Losses
|
Estimated
Fair Value
|
||||||||||||
Securities available-for-sale:
|
||||||||||||||||
U.S. government sponsored enterprises
|
$
|
5,522
|
$
|
31
|
$
|
-
|
$
|
5,553
|
||||||||
State and political subdivisions
|
95,782
|
788
|
-
|
96,570
|
||||||||||||
Mortgage-backed securities-residential
|
2,634
|
31
|
20
|
2,645
|
||||||||||||
Mortgage-backed securities-multi-family
|
16,151
|
259
|
-
|
16,410
|
||||||||||||
Corporate debt securities
|
1,513
|
37
|
-
|
1,550
|
||||||||||||
Total securities available-for-sale
|
121,602
|
1,146
|
20
|
122,728
|
||||||||||||
Securities held-to-maturity:
|
||||||||||||||||
U.S. government sponsored enterprises
|
9,249
|
1
|
14
|
9,236
|
||||||||||||
State and political subdivisions
|
152,358
|
6,212
|
23
|
158,547
|
||||||||||||
Mortgage-backed securities-residential
|
4,570
|
97
|
-
|
4,667
|
||||||||||||
Mortgage-backed securities-multi-family
|
134,970
|
3,122
|
17
|
138,075
|
||||||||||||
Corporate debt securities
|
1,478
|
18
|
25
|
1,471
|
||||||||||||
Other securities
|
1,583
|
34
|
-
|
1,617
|
||||||||||||
Total securities held-to-maturity
|
304,208
|
9,484
|
79
|
313,613
|
||||||||||||
Total securities
|
$
|
425,810
|
$
|
10,630
|
$
|
99
|
$
|
436,341
|
Less Than 12 Months
|
More Than 12 Months
|
Total
|
||||||||||||||||||||||||||||||||||
(In thousands, except number of securities)
|
Fair
Value
|
Unrealized
Losses
|
Number
of
Securities
|
Fair
Value
|
Unrealized
Losses
|
Number
of
Securities
|
Fair
Value
|
Unrealized
Losses
|
Number
of
Securities
|
|||||||||||||||||||||||||||
Securities available-for-sale:
|
||||||||||||||||||||||||||||||||||||
Mortgage-backed securities-multi-family
|
$
|
1,051
|
$
|
4
|
1
|
$
|
-
|
$
|
-
|
-
|
$
|
1,051
|
$
|
4
|
1
|
|||||||||||||||||||||
Corporate debt securities
|
2,487
|
13
|
3
|
-
|
-
|
-
|
2,487
|
13
|
3
|
|||||||||||||||||||||||||||
Total securities available-for-sale
|
3,538
|
17
|
4
|
-
|
-
|
-
|
3,538
|
17
|
4
|
|||||||||||||||||||||||||||
Securities held-to-maturity:
|
||||||||||||||||||||||||||||||||||||
State and political subdivisions
|
3,336
|
3
|
12
|
-
|
-
|
-
|
3,336
|
3
|
12
|
|||||||||||||||||||||||||||
Mortgage-backed securities-residential
|
3,604
|
15
|
2
|
-
|
-
|
-
|
3,604
|
15
|
2
|
|||||||||||||||||||||||||||
Mortgage-backed securities-multi-family
|
3,562
|
21
|
3
|
-
|
-
|
-
|
3,562
|
21
|
3
|
|||||||||||||||||||||||||||
Corporate debt securities
|
1,103
|
2
|
2
|
361
|
128
|
1
|
1,464
|
130
|
3
|
|||||||||||||||||||||||||||
Total securities held-to-maturity
|
11,605
|
41
|
19
|
361
|
128
|
1
|
11,966
|
169
|
20
|
|||||||||||||||||||||||||||
Total securities
|
$
|
15,143
|
$
|
58
|
23
|
$
|
361
|
$
|
128
|
1
|
$
|
15,504
|
$
|
186
|
24
|
Less Than 12 Months
|
More Than 12 Months
|
Total
|
||||||||||||||||||||||||||||||||||
(In thousands, except number of securities)
|
Fair
Value
|
Unrealized
Losses
|
Number
of
Securities
|
Fair
Value
|
Unrealized
Losses
|
Number
of
Securities
|
Fair
Value
|
Unrealized
Losses
|
Number
of
Securities
|
|||||||||||||||||||||||||||
Securities available-for-sale:
|
||||||||||||||||||||||||||||||||||||
Mortgage-backed securities-residential
|
$
|
856
|
$
|
20
|
1
|
$
|
-
|
$
|
-
|
-
|
$
|
856
|
$
|
20
|
1
|
|||||||||||||||||||||
Total securities available-for-sale
|
856
|
20
|
1
|
-
|
-
|
-
|
856
|
20
|
1
|
|||||||||||||||||||||||||||
Securities held-to-maturity:
|
||||||||||||||||||||||||||||||||||||
U.S. government sponsored enterprises
|
-
|
-
|
-
|
1,986
|
14
|
1
|
1,986
|
14
|
1
|
|||||||||||||||||||||||||||
State and political subdivisions
|
3,541
|
17
|
22
|
2,111
|
6
|
13
|
5,652
|
23
|
35
|
|||||||||||||||||||||||||||
Mortgage-backed securities-multi-family
|
1,250
|
6
|
1
|
3,799
|
11
|
3
|
5,049
|
17
|
4
|
|||||||||||||||||||||||||||
Corporate debt securities
|
-
|
-
|
-
|
452
|
25
|
1
|
452
|
25
|
1
|
|||||||||||||||||||||||||||
Total securities held-to-maturity
|
4,791
|
23
|
23
|
8,348
|
56
|
18
|
13,139
|
79
|
41
|
|||||||||||||||||||||||||||
Total securities
|
$
|
5,647
|
$
|
43
|
24
|
$
|
8,348
|
$
|
56
|
18
|
$
|
13,995
|
$
|
99
|
42
|
Available-for-sale debt securities
|
Amortized Cost
|
Fair Value
|
||||||
Within one year
|
$
|
173,351
|
$
|
174,383
|
||||
After one year through five years
|
4,181
|
4,280
|
||||||
After five years through ten years
|
1,544
|
1,603
|
||||||
After ten years
|
2,000
|
2,005
|
||||||
Total available-for-sale debt securities
|
181,076
|
182,271
|
||||||
Mortgage-backed and asset-backed securities
|
43,264
|
44,438
|
||||||
Total available-for-sale securities
|
224,340
|
226,709
|
||||||
Held-to-maturity debt securities
|
||||||||
Within one year
|
37,271
|
37,882
|
||||||
After one year through five years
|
89,352
|
93,517
|
||||||
After five years through ten years
|
56,560
|
61,606
|
||||||
After ten years
|
34,008
|
38,395
|
||||||
Total held-to-maturity debt securities
|
217,191
|
231,400
|
||||||
Mortgage-backed
|
166,466
|
174,112
|
||||||
Total held-to-maturity securities
|
383,657
|
405,512
|
||||||
Total securities
|
$
|
607,997
|
$
|
632,221
|
At June 30,
|
||||||||
(In thousands)
|
2020
|
2019
|
||||||
Residential real estate:
|
||||||||
Residential real estate
|
$
|
279,332
|
$
|
267,802
|
||||
Residential construction and land
|
11,847
|
7,462
|
||||||
Multi-family
|
25,104
|
24,592
|
||||||
Commercial real estate:
|
||||||||
Commercial real estate
|
381,415
|
329,668
|
||||||
Commercial construction
|
74,920
|
36,361
|
||||||
Consumer loan:
|
||||||||
Home equity
|
22,106
|
23,185
|
||||||
Consumer installment
|
4,817
|
5,481
|
||||||
Commercial loans
|
213,119
|
103,554
|
||||||
Total gross loans
|
1,012,660
|
798,105
|
||||||
Allowance for loan losses
|
(16,391
|
)
|
(13,200
|
)
|
||||
Deferred (fees) and costs
|
(2,747
|
)
|
833
|
|||||
Loans receivable, net
|
$
|
993,522
|
$
|
785,738
|
(dollars in thousands)
NAICS Industry Classification
|
Balance
|
Number of
Loans
|
||||||
Accommodation and Food Services
|
$
|
14,517
|
169
|
|||||
Administrative and Support and Waste Management and Remediation Services
|
2,041
|
44
|
||||||
Agriculture, Forestry, Fishing and Hunting
|
847
|
24
|
||||||
Arts, Entertainment, and Recreation
|
1,438
|
54
|
||||||
Construction
|
11,190
|
166
|
||||||
Educational Services
|
1,423
|
20
|
||||||
Finance and Insurance
|
3,044
|
35
|
||||||
Health Care and Social Assistance
|
15,030
|
99
|
||||||
Information
|
5,856
|
30
|
||||||
Manufacturing
|
6,934
|
51
|
||||||
Mining, Quarrying, and Oil and Gas Extraction
|
1,493
|
1
|
||||||
Other Services (except Public Administration)
|
8,589
|
136
|
||||||
Professional, Scientific, and Technical Services
|
11,383
|
192
|
||||||
Public Administration
|
649
|
8
|
||||||
Real Estate and Rental and Leasing
|
2,792
|
68
|
||||||
Retail Trade
|
7,639
|
113
|
||||||
Transportation and Warehousing
|
1,756
|
25
|
||||||
Utilities
|
108
|
2
|
||||||
Wholesale Trade
|
3,034
|
30
|
||||||
$
|
99,763
|
1,267
|
(In thousands)
|
Performing
|
Watch
|
Special Mention
|
Substandard
|
Total
|
|||||||||||||||
Residential real estate
|
$
|
274,973
|
$
|
626
|
$
|
996
|
$
|
2,737
|
$
|
279,332
|
||||||||||
Residential construction and land
|
11,847
|
-
|
-
|
-
|
11,847
|
|||||||||||||||
Multi-family
|
23,336
|
-
|
1,645
|
123
|
25,104
|
|||||||||||||||
Commercial real estate
|
364,884
|
-
|
13,189
|
3,342
|
381,415
|
|||||||||||||||
Commercial construction
|
67,844
|
-
|
6,974
|
102
|
74,920
|
|||||||||||||||
Home equity
|
21,466
|
-
|
-
|
640
|
22,106
|
|||||||||||||||
Consumer installment
|
4,792
|
25
|
-
|
-
|
4,817
|
|||||||||||||||
Commercial loans
|
210,031
|
50
|
2,675
|
363
|
213,119
|
|||||||||||||||
Total gross loans
|
$
|
979,173
|
$
|
701
|
$
|
25,479
|
$
|
7,307
|
$
|
1,012,660
|
(In thousands)
|
Performing
|
Watch
|
Special Mention
|
Substandard
|
Total
|
|||||||||||||||
Residential real estate
|
$
|
264,138
|
$
|
874
|
$
|
86
|
$
|
2,704
|
$
|
267,802
|
||||||||||
Residential construction and land
|
7,462
|
-
|
-
|
-
|
7,462
|
|||||||||||||||
Multi-family
|
22,544
|
137
|
1,835
|
76
|
24,592
|
|||||||||||||||
Commercial real estate
|
318,703
|
616
|
7,435
|
2,914
|
329,668
|
|||||||||||||||
Commercial construction
|
36,259
|
-
|
-
|
102
|
36,361
|
|||||||||||||||
Home equity
|
22,392
|
20
|
-
|
773
|
23,185
|
|||||||||||||||
Consumer installment
|
5,461
|
14
|
-
|
6
|
5,481
|
|||||||||||||||
Commercial loans
|
102,103
|
261
|
1,082
|
108
|
103,554
|
|||||||||||||||
Total gross loans
|
$
|
779,062
|
$
|
1,922
|
$
|
10,438
|
$
|
6,683
|
$
|
798,105
|
(Dollars in thousands)
|
Number of
Contracts
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
Current
Outstanding
Recorded
Investment
|
||||||||||||
For the year ended June 30, 2019
|
||||||||||||||||
Commercial loans
|
1
|
$
|
127
|
$
|
131
|
$
|
131
|
|||||||||
Residential
|
1
|
294
|
169
|
169
|
Full Payment Deferral
|
Principal Payment Deferral
|
Total Deferral
|
||||||||||||||||||||||
(Dollars in thousands)
|
Balance
|
Number
of Loans
|
Balance
|
Number
of Loans
|
Balance
|
Number
of Loans
|
||||||||||||||||||
Residential
|
$
|
31,373
|
172
|
$
|
17,664
|
109
|
$
|
49,037
|
281
|
|||||||||||||||
Multi-family
|
8,264
|
10
|
4,226
|
7
|
12,490
|
17
|
||||||||||||||||||
Nonresidential
|
74,481
|
173
|
36,267
|
85
|
110,748
|
258
|
||||||||||||||||||
Commercial construction
|
339
|
1
|
-
|
-
|
339
|
1
|
||||||||||||||||||
Home equity
|
291
|
7
|
140
|
8
|
431
|
15
|
||||||||||||||||||
Consumer installment
|
116
|
10
|
133
|
17
|
250
|
27
|
||||||||||||||||||
Commercial loans
|
8,537
|
64
|
11,643
|
43
|
20,180
|
107
|
||||||||||||||||||
Total
|
$
|
123,401
|
437
|
$
|
70,073
|
269
|
$
|
193,474
|
706
|
(In thousands)
|
30-59
days
past due
|
60-89
days
past due
|
90 days
or more
past due
|
Total
past due
|
Current
|
Total Loans
|
Loans on
Non-accrual
|
|||||||||||||||||||||
Residential real estate
|
$
|
871
|
$
|
345
|
$
|
1,691
|
$
|
2,907
|
$
|
276,425
|
$
|
279,332
|
$
|
2,513
|
||||||||||||||
Residential construction and land
|
-
|
-
|
-
|
-
|
11,847
|
11,847
|
-
|
|||||||||||||||||||||
Multi-family
|
-
|
-
|
151
|
151
|
24,953
|
25,104
|
151
|
|||||||||||||||||||||
Commercial real estate
|
393
|
189
|
374
|
956
|
380,459
|
381,415
|
781
|
|||||||||||||||||||||
Commercial construction
|
-
|
-
|
-
|
-
|
74,920
|
74,920
|
-
|
|||||||||||||||||||||
Home equity
|
29
|
-
|
238
|
267
|
21,839
|
22,106
|
319
|
|||||||||||||||||||||
Consumer installment
|
36
|
25
|
-
|
61
|
4,756
|
4,817
|
-
|
|||||||||||||||||||||
Commercial loans
|
48
|
72
|
245
|
365
|
212,754
|
213,119
|
313
|
|||||||||||||||||||||
Total gross loans
|
$
|
1,377
|
$
|
631
|
$
|
2,699
|
$
|
4,707
|
$
|
1,007,953
|
$
|
1,012,660
|
$
|
4,077
|
(In thousands)
|
30-59
days
past due
|
60-89
days
past due
|
90 days
or more
past due
|
Total
past due
|
Current
|
Total Loans
|
Loans on
Non-
accrual
|
|||||||||||||||||||||
Residential real estate
|
$
|
2,144
|
$
|
870
|
$
|
1,385
|
$
|
4,399
|
$
|
263,403
|
$
|
267,802
|
$
|
2,474
|
||||||||||||||
Residential construction and land
|
-
|
-
|
-
|
-
|
7,462
|
7,462
|
-
|
|||||||||||||||||||||
Multi-family
|
1
|
137
|
-
|
138
|
24,454
|
24,592
|
-
|
|||||||||||||||||||||
Commercial real estate
|
280
|
1,108
|
102
|
1,490
|
328,178
|
329,668
|
598
|
|||||||||||||||||||||
Commercial construction
|
-
|
-
|
-
|
-
|
36,361
|
36,361
|
-
|
|||||||||||||||||||||
Home equity
|
16
|
136
|
309
|
461
|
22,724
|
23,185
|
452
|
|||||||||||||||||||||
Consumer installment
|
32
|
14
|
6
|
52
|
5,429
|
5,481
|
6
|
|||||||||||||||||||||
Commercial loans
|
430
|
342
|
28
|
800
|
102,754
|
103,554
|
108
|
|||||||||||||||||||||
Total gross loans
|
$
|
2,903
|
$
|
2,607
|
$
|
1,830
|
$
|
7,340
|
$
|
790,765
|
$
|
798,105
|
$
|
3,638
|
(In thousands)
|
2020
|
2019
|
||||||
Interest income that would have been recorded if loans had been performing in accordance with original terms
|
$
|
296
|
$
|
257
|
||||
Interest income that was recorded on nonaccrual loans
|
193
|
146
|
As of June 30, 2020
|
For the year ended June 30, 2020
|
|||||||||||||||||||
(In thousands)
|
Recorded
Investment
|
Unpaid
Principal
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest Income
Recognized
|
|||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Residential real estate
|
$
|
868
|
$
|
868
|
$
|
-
|
$
|
719
|
$
|
70
|
||||||||||
Multi-family
|
123
|
123
|
-
|
42
|
-
|
|||||||||||||||
Commercial real estate
|
344
|
344
|
-
|
499
|
14
|
|||||||||||||||
Home equity
|
128
|
128
|
-
|
168
|
-
|
|||||||||||||||
Commercial loans
|
145
|
145
|
-
|
137
|
1
|
|||||||||||||||
Impaired loans with no allowance
|
1,608
|
1,608
|
-
|
1,565
|
85
|
|||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Residential real estate
|
995
|
995
|
127
|
1,184
|
47
|
|||||||||||||||
Multi-family
|
-
|
-
|
-
|
54
|
1
|
|||||||||||||||
Commercial real estate
|
-
|
-
|
-
|
26
|
3
|
|||||||||||||||
Commercial construction
|
102
|
102
|
15
|
102
|
-
|
|||||||||||||||
Home equity
|
431
|
431
|
73
|
418
|
24
|
|||||||||||||||
Commercial Loans
|
134
|
134
|
13
|
147
|
9
|
|||||||||||||||
Impaired loans with allowance
|
1,662
|
1,662
|
228
|
1,931
|
84
|
|||||||||||||||
Total impaired:
|
||||||||||||||||||||
Residential real estate
|
1,863
|
1,863
|
127
|
1,903
|
117
|
|||||||||||||||
Multi-family
|
123
|
123
|
-
|
96
|
1
|
|||||||||||||||
Commercial real estate
|
344
|
344
|
-
|
525
|
17
|
|||||||||||||||
Commercial construction
|
102
|
102
|
15
|
102
|
-
|
|||||||||||||||
Home equity
|
559
|
559
|
73
|
586
|
24
|
|||||||||||||||
Commercial loans
|
279
|
279
|
13
|
284
|
10
|
|||||||||||||||
Total impaired loans
|
$
|
3,270
|
$
|
3,270
|
$
|
228
|
$
|
3,496
|
$
|
169
|
As of June 30, 2019
|
For the year ended June 30, 2019
|
|||||||||||||||||||
(In thousands)
|
Recorded
Investment
|
Unpaid
Principal
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest Income
Recognized
|
|||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Residential real estate
|
$
|
727
|
$
|
727
|
$
|
-
|
$
|
170
|
$
|
20
|
||||||||||
Commercial real estate
|
717
|
717
|
-
|
915
|
57
|
|||||||||||||||
Commercial Construction
|
-
|
-
|
-
|
34
|
-
|
|||||||||||||||
Home equity
|
309
|
309
|
-
|
288
|
-
|
|||||||||||||||
Commercial loans
|
141
|
141
|
-
|
150
|
-
|
|||||||||||||||
Impaired loans with no allowance
|
1,894
|
1,894
|
-
|
1,557
|
77
|
|||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Residential real estate
|
1,420
|
1,420
|
188
|
1,809
|
61
|
|||||||||||||||
Commercial real estate
|
-
|
-
|
-
|
91
|
-
|
|||||||||||||||
Commercial construction
|
102
|
102
|
2
|
111
|
-
|
|||||||||||||||
Home equity
|
348
|
348
|
59
|
338
|
19
|
|||||||||||||||
Commercial Loans
|
130
|
130
|
13
|
76
|
3
|
|||||||||||||||
Impaired loans with allowance
|
2,000
|
2,000
|
262
|
2,425
|
83
|
|||||||||||||||
Total impaired loans:
|
||||||||||||||||||||
Residential real estate
|
2,147
|
2,147
|
188
|
1,979
|
81
|
|||||||||||||||
Commercial real estate
|
717
|
717
|
-
|
1,006
|
57
|
|||||||||||||||
Commercial construction
|
102
|
102
|
2
|
145
|
-
|
|||||||||||||||
Home equity
|
657
|
657
|
59
|
626
|
19
|
|||||||||||||||
Commercial loans
|
271
|
271
|
13
|
226
|
3
|
|||||||||||||||
Total impaired loans
|
$
|
3,894
|
$
|
3,894
|
$
|
262
|
$
|
3,982
|
$
|
160
|
Activity for the year ended June 30, 2020
|
||||||||||||||||||||
(In thousands)
|
Balance June 30,
2019
|
Charge-offs
|
Recoveries
|
Provision
|
Balance June 30,
2020
|
|||||||||||||||
Residential real estate
|
$
|
2,026
|
$
|
102
|
$
|
16
|
$
|
151
|
$
|
2,091
|
||||||||||
Residential construction and land
|
87
|
-
|
-
|
54
|
141
|
|||||||||||||||
Multi-family
|
180
|
-
|
-
|
(4
|
)
|
176
|
||||||||||||||
Commercial real estate
|
7,110
|
-
|
-
|
1,524
|
8,634
|
|||||||||||||||
Commercial construction
|
872
|
-
|
-
|
1,181
|
2,053
|
|||||||||||||||
Home equity
|
314
|
-
|
-
|
(19
|
)
|
295
|
||||||||||||||
Consumer installment
|
250
|
459
|
130
|
276
|
197
|
|||||||||||||||
Commercial loans
|
2,361
|
335
|
36
|
742
|
2,804
|
|||||||||||||||
Total
|
$
|
13,200
|
$
|
896
|
$
|
182
|
$
|
3,905
|
$
|
16,391
|
Activity for the year ended June 30, 2019
|
||||||||||||||||||||
(In thousands)
|
Balance June 30,
2018
|
Charge-offs
|
Recoveries
|
Provision
|
Balance June 30,
2019
|
|||||||||||||||
Residential real estate
|
$
|
2,116
|
$
|
287
|
$
|
13
|
$
|
184
|
$
|
2,026
|
||||||||||
Residential construction and land
|
114
|
-
|
-
|
(27
|
)
|
87
|
||||||||||||||
Multi-family
|
162
|
-
|
-
|
18
|
180
|
|||||||||||||||
Commercial real estate
|
5,979
|
74
|
-
|
1,205
|
7,110
|
|||||||||||||||
Commercial construction
|
950
|
-
|
-
|
(78
|
)
|
872
|
||||||||||||||
Home equity
|
317
|
-
|
-
|
(3
|
)
|
314
|
||||||||||||||
Consumer installment
|
224
|
374
|
137
|
263
|
250
|
|||||||||||||||
Commercial loans
|
2,128
|
51
|
153
|
131
|
2,361
|
|||||||||||||||
Unallocated
|
34
|
-
|
-
|
(34
|
)
|
-
|
||||||||||||||
Total
|
$
|
12,024
|
$
|
786
|
$
|
303
|
$
|
1,659
|
$
|
13,200
|
Allowance for Loan Losses
|
Loans Receivable
|
|||||||||||||||
Ending Balance June 30, 2020
Impairment Analysis
|
Ending Balance June 30, 2020
Impairment Analysis
|
|||||||||||||||
(In thousands)
|
Individually
Evaluated
|
Collectively
Evaluated
|
Individually
Evaluated
|
Collectively
Evaluated
|
||||||||||||
Residential real estate
|
$
|
127
|
$
|
1,964
|
$
|
1,863
|
$
|
277,469
|
||||||||
Residential construction and land
|
-
|
141
|
-
|
11,847
|
||||||||||||
Multi-family
|
-
|
176
|
123
|
24,981
|
||||||||||||
Commercial real estate
|
-
|
8,634
|
344
|
381,071
|
||||||||||||
Commercial construction
|
15
|
2,038
|
102
|
74,818
|
||||||||||||
Home equity
|
73
|
222
|
559
|
21,547
|
||||||||||||
Consumer installment
|
-
|
197
|
-
|
4,817
|
||||||||||||
Commercial loans
|
13
|
2,791
|
279
|
212,840
|
||||||||||||
Total
|
$
|
228
|
$
|
16,163
|
$
|
3,270
|
$
|
1,009,390
|
Allowance for Loan Losses
|
Loans Receivable
|
|||||||||||||||
Ending Balance June 30, 2019
Impairment Analysis
|
Ending Balance June 30, 2019
Impairment Analysis
|
|||||||||||||||
(In thousands)
|
Individually
Evaluated
|
Collectively
Evaluated
|
Individually
Evaluated
|
Collectively
Evaluated
|
||||||||||||
Residential real estate
|
$
|
188
|
$
|
1,838
|
$
|
2,147
|
$
|
265,655
|
||||||||
Residential construction and land
|
-
|
87
|
-
|
7,462
|
||||||||||||
Multi-family
|
-
|
180
|
-
|
24,592
|
||||||||||||
Commercial real estate
|
-
|
7,110
|
717
|
328,951
|
||||||||||||
Commercial construction
|
2
|
870
|
102
|
36,259
|
||||||||||||
Home equity
|
59
|
255
|
657
|
22,528
|
||||||||||||
Consumer installment
|
-
|
250
|
-
|
5,481
|
||||||||||||
Commercial loans
|
13
|
2,348
|
271
|
103,283
|
||||||||||||
Total
|
$
|
262
|
$
|
12,938
|
$
|
3,894
|
$
|
794,211
|
(in thousands)
|
2020
|
2019
|
||||||
Residential real estate
|
$
|
-
|
$
|
53
|
||||
Total foreclosed real estate
|
$
|
-
|
$
|
53
|
(In thousands)
|
2020
|
2019
|
||||||
Land
|
$
|
2,883
|
$
|
2,883
|
||||
Building and improvements
|
17,375
|
16,376
|
||||||
Furniture and equipment
|
4,756
|
4,639
|
||||||
Less: accumulated depreciation
|
(11,356
|
)
|
(10,643
|
)
|
||||
Total premises and equipment
|
$
|
13,658
|
$
|
13,255
|
(In thousands)
|
2020
|
2019
|
||||||
Noninterest-bearing deposits
|
$
|
138,187
|
$
|
107,469
|
||||
Certificates of deposit
|
35,625
|
36,542
|
||||||
Savings deposits
|
241,371
|
214,680
|
||||||
Money market deposits
|
133,970
|
114,915
|
||||||
NOW deposits
|
951,922
|
646,963
|
||||||
Total deposits
|
$
|
1,501,075
|
$
|
1,120,569
|
(In thousands)
|
|
3 Months
or Less
|
3 to 6
Months
|
7 to 12
Months
|
Over 12
Months
|
Total
|
||||||||||||||
Certificates of deposit less than $100,000
|
$
|
4,549
|
$
|
3,492
|
$
|
4,606
|
$
|
10,523
|
$
|
23,170
|
||||||||||
Certificates of deposit $100,000 or more
|
2,507
|
1,367
|
2,538
|
6,043
|
12,455
|
|||||||||||||||
Total certificates of deposit
|
$
|
7,056
|
$
|
4,859
|
$
|
7,144
|
$
|
16,566
|
$
|
35,625
|
(In thousands)
|
||||
The year ended June 30,
|
||||
2021
|
$
|
19,059
|
||
2022
|
5,709
|
|||
2023
|
5,897
|
|||
2024
|
3,368
|
|||
2025
|
1,592
|
|||
$
|
35,625
|
(In thousands)
|
||||
Within the twelve months ended June 30,
|
||||
2021
|
$
|
1,800
|
||
2022
|
5,800
|
|||
$
|
7,600
|
Unrealized
gain (losses)
on securities
available-for-
sale
|
Unrealized
losses on
securities
transferred
to held to
maturity
|
Pension
benefits
|
Total
|
|||||||||||||
Balance - June 30, 2018
|
$
|
10
|
$
|
-
|
$
|
(1,633
|
)
|
$
|
(1,623
|
)
|
||||||
Other comprehensive (loss) income before reclassification
|
936
|
-
|
(344
|
)
|
592
|
|||||||||||
Amounts reclassified from accumulated other comprehensive income
|
-
|
-
|
139
|
139
|
||||||||||||
Other comprehensive (loss) income for the year ended June 30, 2018
|
936
|
-
|
(205
|
)
|
731
|
|||||||||||
Impact of adopting ASU 2016-01
|
(114
|
)
|
-
|
-
|
(114
|
)
|
||||||||||
Balance - June 30, 2019
|
832
|
-
|
(1,838
|
)
|
(1,006
|
)
|
||||||||||
Other comprehensive (loss) income before reclassification
|
918
|
-
|
(457
|
)
|
461
|
|||||||||||
Amounts reclassified from accumulated other comprehensive income
|
-
|
-
|
117
|
117
|
||||||||||||
Other comprehensive (loss) income for the year ended June 30, 2020
|
918
|
-
|
(340
|
)
|
578
|
|||||||||||
Balance - June 30, 2020
|
$
|
1,750
|
$
|
-
|
$
|
(2,178
|
)
|
$
|
(428
|
)
|
(In thousands)
|
2020
|
2019
|
||||||
Service charges on deposit accounts
|
||||||||
Insufficient funds fees
|
$
|
3,510
|
$
|
3,694
|
||||
Deposit related fees
|
154
|
155
|
||||||
ATM/point of sale fees
|
262
|
268
|
||||||
Total service charges
|
3,926
|
4,117
|
||||||
Interchange fee income
|
||||||||
Debit card interchange fees
|
2,980
|
2,624
|
||||||
E-commerce fee income
|
||||||||
E-commerce fees
|
113
|
139
|
||||||
Investment services income
|
||||||||
Investment services
|
559
|
544
|
||||||
Sales of assets
|
||||||||
Net gain (loss) on sale of foreclosed real estate
|
19
|
(35
|
)
|
(In thousands) | ||||||||
Change in projected benefit obligation:
|
2020
|
2019
|
||||||
Benefit obligation at beginning of period
|
$
|
5,865
|
$
|
5,410
|
||||
Interest cost
|
196
|
215
|
||||||
Actuarial loss
|
706
|
579
|
||||||
Benefits paid
|
(263
|
)
|
(339
|
)
|
||||
Benefit obligation at June 30
|
6,504
|
5,865
|
||||||
Change in fair value of plan assets:
|
||||||||
Fair value of plan assets at beginning of period
|
5,139
|
4,851
|
||||||
Actual return on plan assets
|
338
|
397
|
||||||
Employer contributions
|
-
|
230
|
||||||
Benefits paid
|
(263
|
)
|
(339
|
)
|
||||
Fair value of plan assets at June 30
|
5,214
|
5,139
|
||||||
Underfunded status at June 30 included in other liabilities
|
$
|
1,290
|
$
|
726
|
(In thousands)
|
2020
|
2019
|
||||||
Interest cost
|
$
|
196
|
$
|
215
|
||||
Expected return on plan assets
|
(251
|
)
|
(235
|
)
|
||||
Amortization of net loss
|
158
|
139
|
||||||
Net periodic pension expense
|
$
|
103
|
$
|
119
|
(In thousands)
|
2020
|
2019
|
||||||
Actuarial loss (gain) on plan assets and benefit obligations
|
$
|
461
|
$
|
277
|
||||
Deferred tax expense
|
121
|
72
|
||||||
Net change in plan assets and benefit obligations recognized in other comprehensive income
|
$
|
340
|
$
|
205
|
(In thousands)
|
||||||||
Other liabilities:
|
|
2020 |
2019
|
|||||
Projected benefit obligation in excess of fair value of pension plan
|
$
|
1,290
|
$
|
726
|
||||
Accumulated other comprehensive loss, net of taxes:
|
||||||||
Net losses and past service liability
|
$
|
(2,178
|
)
|
$
|
(1,838
|
)
|
Projected benefit obligation:
|
2020
|
2019
|
||||||
Discount rate
|
2.56
|
%
|
3.41
|
%
|
||||
Net periodic pension expense:
|
||||||||
Amortization period, in years
|
11
|
12
|
||||||
Discount rate
|
3.41
|
%
|
4.09
|
%
|
||||
Expected long-term rate of return on plan assets
|
5.00
|
%
|
5.00
|
%
|
(Dollars in thousands)
|
2020
|
2019
|
||||||||||||||
Fair Value
|
Fair Value
|
|||||||||||||||
Mutual funds
|
$
|
5,214
|
100.0
|
%
|
$
|
5,139
|
100.0
|
%
|
||||||||
Total plan assets
|
$
|
5,214
|
100.0
|
%
|
$
|
5,139
|
100.0
|
%
|
(In thousands)
|
||||
2021
|
$
|
242
|
||
2022
|
245
|
|||
2023
|
244
|
|||
2024
|
244
|
|||
2025
|
246
|
|||
2026-2030
|
1,225
|
2020
|
2019
|
|||||||
Number of options outstanding at beginning of year
|
1,711,600
|
1,634,160
|
||||||
Options granted
|
614,700
|
592,700
|
||||||
Options forfeited
|
(7,000
|
)
|
(12,500
|
)
|
||||
Options paid in cash upon vesting
|
(554,200
|
)
|
(502,760
|
)
|
||||
Number of options outstanding at period end
|
1,765,100
|
1,711,600
|
(In thousands)
|
2020
|
2019
|
||||||
Cash paid out on options vested
|
$
|
2,516
|
$
|
1,745
|
||||
Compensation expense recognized
|
3,280
|
2,901
|
2020
|
2019
|
|||||||
Net Income
|
$
|
18,727,000
|
$
|
17,484,000
|
||||
Weighted Average Shares – Basic
|
8,529,927
|
8,537,814
|
||||||
Effect of Dilutive Stock Options
|
-
|
-
|
||||||
Weighted Average Shares - Dilute
|
8,529,927
|
8,537,814
|
||||||
Earnings per share - Basic
|
$
|
2.20
|
$
|
2.05
|
||||
Earnings per share - Diluted
|
$
|
2.20
|
$
|
2.05
|
(In thousands)
|
2020
|
2019
|
||||||
Current expense:
|
||||||||
Federal
|
$
|
3,621
|
$
|
4,028
|
||||
State
|
434
|
481
|
||||||
Total current expense
|
4,055
|
4,509
|
||||||
Deferred benefit
|
(1,026
|
)
|
(967
|
)
|
||||
Total provision for income taxes
|
$
|
3,029
|
$
|
3,542
|
2020
|
2019
|
|||||||
Tax based on federal statutory rate
|
21.00
|
%
|
21.00
|
%
|
||||
State income taxes, net of federal benefit
|
0.54
|
0.80
|
||||||
Tax-exempt income
|
(6.91
|
)
|
(5.74
|
)
|
||||
Captive insurance premium income
|
(1.37
|
)
|
(1.35
|
)
|
||||
Other, net
|
0.66
|
2.14
|
||||||
Total income tax expense
|
13.92
|
%
|
16.85
|
%
|
(In thousands)
|
2020
|
2019
|
||||||
Deferred tax assets:
|
||||||||
Allowance for loan losses
|
$
|
4,284
|
$
|
3,450
|
||||
Pension benefits
|
337
|
190
|
||||||
Other benefit plans
|
2,995
|
2,454
|
||||||
Total deferred tax assets
|
7,616
|
6,094
|
||||||
Deferred tax liabilities:
|
||||||||
Depreciation
|
958
|
903
|
||||||
Loan costs
|
914
|
831
|
||||||
Real estate investment trust income
|
2,774
|
2,553
|
||||||
Unrealized gains on securities
|
673
|
345
|
||||||
Other
|
218
|
204
|
||||||
Total deferred tax liabilities
|
5,537
|
4,836
|
||||||
Net deferred tax asset included in prepaid expenses and other assets
|
$
|
2,079
|
$
|
1,258
|
(In thousands)
|
2020
|
2019
|
||||||
Unfunded loan commitments
|
$
|
100,241
|
$
|
55,874
|
||||
Unused lines of credit
|
70,333
|
69,190
|
||||||
Total commitments
|
$
|
170,574
|
$
|
125,064
|
(In thousands, except weighted-average information).
|
||||
Operating lease amounts:
|
June 30, 2020
|
|||
Right-of-use assets
|
$
|
1,575
|
||
Lease liabilities
|
$
|
1,587
|
||
Other information:
|
||||
Operating outgoing cash flows from operating leases
|
$
|
296
|
||
Right-of-use assets obtained in exchange for new operating lease liabilities
|
$
|
1,840
|
||
Weighted-average remaining lease term (Years)
|
7.23
|
|||
Weighted-average discount rate
|
2.53
|
%
|
Year ended
June 30, 2020
|
||||
(In thousands)
|
||||
Lease costs
|
||||
Operating lease cost
|
$
|
268
|
||
Variable lease cost
|
$
|
40
|
Fair Value Measurements Using
|
||||||||||||||||
(In thousands)
|
June 30, 2020
|
Quoted Prices
In Active Markets
For Identical
Assets
(Level 1)
|
Significant
Other Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
Assets:
|
||||||||||||||||
U.S. Government sponsored enterprises
|
$
|
504
|
$
|
-
|
$
|
504
|
$
|
-
|
||||||||
State and political subdivisions
|
177,107
|
-
|
177,107
|
-
|
||||||||||||
Mortgage-backed securities-residential
|
15,528
|
-
|
15,528
|
-
|
||||||||||||
Mortgage-backed securities-multi-family
|
28,910
|
-
|
28,910
|
-
|
||||||||||||
Corporate debt securities
|
4,660
|
4,660
|
-
|
-
|
||||||||||||
Securities available-for-sale
|
226,709
|
4,660
|
222,049
|
-
|
||||||||||||
Equity securities
|
267
|
267
|
-
|
-
|
||||||||||||
Total securities measured at fair value
|
$
|
226,976
|
$
|
4,927
|
$
|
222,049
|
$
|
-
|
Fair Value Measurements Using
|
||||||||||||||||
(In thousands)
|
June 30, 2019
|
Quoted Prices
In Active Markets
For Identical
Assets
(Level 1)
|
Significant
Other Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
Assets:
|
||||||||||||||||
U.S. Government sponsored enterprises
|
$
|
5,553
|
$
|
-
|
$
|
5,553
|
$
|
-
|
||||||||
State and political subdivisions
|
96,570
|
-
|
96,570
|
-
|
||||||||||||
Mortgage-backed securities-residential
|
2,645
|
-
|
2,645
|
-
|
||||||||||||
Mortgage-backed securities-multi-family
|
16,410
|
-
|
16,410
|
-
|
||||||||||||
Corporate debt securities
|
1,550
|
1,550
|
-
|
-
|
||||||||||||
Securities available-for-sale
|
122,728
|
1,550
|
121,178
|
-
|
||||||||||||
Equity securities
|
253
|
253
|
-
|
-
|
||||||||||||
Total securities measured at fair value
|
$
|
122,981
|
$
|
1,803
|
$
|
121,178
|
$
|
-
|
Fair Value Measurements Using
|
||||||||||||||||||||||||
(In thousands)
|
Recorded
Investment
|
Related
Allowance
|
Fair Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||||||||
June 30, 2020
|
||||||||||||||||||||||||
Impaired loans
|
$
|
1,809
|
$
|
228
|
$
|
1,581
|
$
|
-
|
$
|
-
|
$ |
1,581
|
||||||||||||
June 30, 2019
|
||||||||||||||||||||||||
Impaired loans
|
$
|
2,335
|
$
|
262
|
$
|
2,073
|
$
|
-
|
$
|
-
|
$
|
2,073
|
||||||||||||
Foreclosed real estate
|
53
|
-
|
53
|
-
|
-
|
53
|
Weighted
|
||||||||||||||
(Dollars in thousands)
|
Fair Value
|
Valuation Technique
|
Unobservable Input
|
Range
|
Average
|
|||||||||
June 30, 2020
|
||||||||||||||
Impaired Loans
|
$
|
1,143
|
Appraisal of collateral(1)
|
Appraisal adjustments(2)
|
8.57%-33.73
|
%
|
27.55
|
%
|
||||||
|
Liquidation expenses(3)
|
3.98%-6.88
|
% |
4.64
|
% | |||||||||
438
|
Discounted cash flow
|
Discount rate
|
4.19%-6.63
|
% |
5.64
|
% | ||||||||
June 30, 2019
|
|
|||||||||||||
Impaired loans
|
$
|
1,403
|
Appraisal of collateral(1)
|
Appraisal adjustments(2)
|
0.00%-33.73
|
%
|
24.48
|
%
|
||||||
|
Liquidation expenses(3)
|
3.98%-6.00
|
% |
4.53
|
% | |||||||||
670
|
Discounted cash flow
|
Discount rate
|
4.19%-8.66
|
% |
6.07
|
% | ||||||||
Foreclosed real estate
|
53
|
Appraisal of collateral(1)
|
Appraisal adjustments(2)
|
0.00%-0.00
|
% |
0.00
|
% | |||||||
|
Liquidation expenses(3)
|
10.41
|
% |
10.41
|
% |
(1)
|
Fair value is generally determined through independent third-party appraisals of the underlying collateral, which generally includes various Level 3 inputs which are not observable.
|
(2)
|
Appraisals may be adjusted downwards by management for qualitative factors such as economic conditions. Higher downward adjustments are caused by negative changes to the collateral or conditions in the
real estate market, actual offers or sales contracts received or age of the appraisal.
|
(3)
|
Appraisals may be adjusted downwards by management for items such as the estimated costs to liquidate the collateral.
|
(In thousands)
|
June 30, 2020
|
Fair Value Measurements Using
|
||||||||||||||||||
Carrying
Amount
|
Fair Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||||||
Cash and cash equivalents
|
$
|
40,463
|
$
|
40,463
|
$
|
40,463
|
$
|
-
|
$
|
-
|
||||||||||
Long term certificate of deposit
|
4,070
|
4,070
|
4,070
|
-
|
-
|
|||||||||||||||
Securities available-for-sale
|
226,709
|
226,709
|
4,660
|
222,049
|
-
|
|||||||||||||||
Securities held-to-maturity
|
383,657
|
405,512
|
-
|
405,512
|
-
|
|||||||||||||||
Equity Securities
|
267
|
267
|
267
|
-
|
-
|
|||||||||||||||
Federal Home Loan Bank stock
|
1,226
|
1,226
|
-
|
1,226
|
-
|
|||||||||||||||
Net loans receivable
|
993,522
|
1,004,031
|
-
|
-
|
1,004,031
|
|||||||||||||||
Accrued interest receivable
|
8,207
|
8,207
|
-
|
8,207
|
-
|
|||||||||||||||
Deposits
|
1,501,075
|
1,501,628
|
-
|
1,501628
|
-
|
|||||||||||||||
Borrowings
|
25,484
|
25,602
|
-
|
25,602
|
-
|
|||||||||||||||
Accrued interest payable
|
119
|
119
|
-
|
119
|
-
|
(In thousands)
|
June 30, 2019
|
Fair Value Measurements Using
|
||||||||||||||||||
Carrying
Amount
|
Fair Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||||||
Cash and cash equivalents
|
$
|
29,538
|
$
|
29,538
|
$
|
29,538
|
$
|
-
|
$
|
-
|
||||||||||
Long term certificate of deposit
|
2,875
|
2,875
|
2,875
|
-
|
-
|
|||||||||||||||
Securities available-for-sale
|
122,728
|
122,728
|
1,550
|
121,178
|
-
|
|||||||||||||||
Securities held-to-maturity
|
304,208
|
313,613
|
-
|
313,613
|
-
|
|||||||||||||||
Equity securities
|
253
|
253
|
253
|
-
|
-
|
|||||||||||||||
Federal Home Loan Bank stock
|
1,759
|
1,759
|
-
|
1,759
|
-
|
|||||||||||||||
Net loans receivable
|
785,738
|
781,614
|
-
|
-
|
781,614
|
|||||||||||||||
Accrued interest receivable
|
5,853
|
5,853
|
-
|
5,853
|
-
|
|||||||||||||||
Deposits
|
1,120,569
|
1,120,632
|
-
|
1,120,632
|
-
|
|||||||||||||||
Borrowings
|
21,600
|
21,534
|
-
|
21,534
|
-
|
|||||||||||||||
Accrued interest payable
|
110
|
110
|
-
|
110
|
-
|
(Dollars in thousands)
|
Actual
|
For Capital
Adequacy
Purposes
|
To Be Well
Capitalized Under
Prompt Corrective
Action Provisions
|
Capital Conservation
Buffer
|
||||||||||||||||||||||||||||
The Bank of Greene County
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Actual
|
Required
|
||||||||||||||||||||||||
As of June 30, 2020:
|
||||||||||||||||||||||||||||||||
Total risk-based capital
|
$
|
142,524
|
16.0
|
%
|
$
|
71,393
|
8.0
|
%
|
$
|
89,241
|
10.0
|
%
|
7.97
|
%
|
2.50
|
%
|
||||||||||||||||
Tier 1 risk-based capital
|
131,305
|
14.7
|
53,545
|
6.0
|
71,393
|
8.0
|
8.71
|
2.50
|
||||||||||||||||||||||||
Common equity tier 1 capital
|
131,305
|
14.7
|
40,158
|
4.5
|
58,007
|
6.5
|
10.21
|
2.50
|
||||||||||||||||||||||||
Tier 1 leverage ratio(1)
|
131,305
|
8.1
|
65,238
|
4.0
|
81,547
|
5.0
|
4.05
|
2.50
|
||||||||||||||||||||||||
As of June 30, 2019:
|
||||||||||||||||||||||||||||||||
Total risk-based capital
|
$
|
118,113
|
15.8
|
%
|
$
|
59,842
|
8.0
|
%
|
$
|
74,802
|
10.0
|
%
|
7.79
|
%
|
2.50
|
%
|
||||||||||||||||
Tier 1 risk-based capital
|
108,716
|
14.5
|
44,881
|
6.0
|
59,842
|
8.0
|
8.53
|
2.50
|
||||||||||||||||||||||||
Common equity tier 1 capital
|
108,716
|
14.5
|
33,661
|
4.5
|
48,621
|
6.5
|
10.03
|
2.50
|
||||||||||||||||||||||||
Tier 1 leverage ratio
|
108,716
|
8.7
|
50,049
|
4.0
|
62,561
|
5.0
|
4.68
|
2.50
|
||||||||||||||||||||||||
Greene County Commercial Bank
|
||||||||||||||||||||||||||||||||
As of June 30, 2020:
|
||||||||||||||||||||||||||||||||
Total risk-based capital
|
$
|
60,832
|
45.3
|
%
|
$
|
10,754
|
8.0
|
%
|
$
|
13,442
|
10.0
|
%
|
37.26
|
%
|
2.50
|
%
|
||||||||||||||||
Tier 1 risk-based capital
|
60,832
|
45.3
|
8,065
|
6.0
|
10,754
|
8.0
|
39.26
|
2.50
|
||||||||||||||||||||||||
Common equity tier 1 capital
|
60,832
|
45.3
|
6,049
|
4.5
|
8,737
|
6.5
|
40.76
|
2.50
|
||||||||||||||||||||||||
Tier 1 leverage ratio
|
60,832
|
9.0
|
26,976
|
4.0
|
33,720
|
5.0
|
5.02
|
2.50
|
||||||||||||||||||||||||
As of June 30, 2019:
|
||||||||||||||||||||||||||||||||
Total risk-based capital
|
$
|
47,366
|
47.4
|
%
|
$
|
7,996
|
8.0
|
%
|
$
|
9,996
|
10.0
|
%
|
39.39
|
%
|
2.50
|
%
|
||||||||||||||||
Tier 1 risk-based capital
|
47,366
|
47.4
|
5,997
|
6.0
|
7,996
|
8.0
|
41.39
|
2.50
|
||||||||||||||||||||||||
Common equity tier 1 capital
|
47,366
|
47.4
|
4,498
|
4.5
|
6,497
|
6.5
|
42.89
|
2.50
|
||||||||||||||||||||||||
Tier 1 leverage ratio
|
47,366
|
9.6
|
19,678
|
4.0
|
24,597
|
5.0
|
5.63
|
2.50
|
ASSETS
|
2020
|
2019
|
||||||
Cash and cash equivalents
|
$
|
2,205
|
$
|
2,176
|
||||
Investment in subsidiaries
|
133,577
|
110,182
|
||||||
Prepaid expenses and other assets
|
112
|
99
|
||||||
Total assets
|
$
|
135,894
|
$
|
112,457
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Borrowings from other banks, short-term
|
$
|
7,000
|
-
|
|||||
Accrued expenses and other liabilities
|
89
|
88
|
||||||
Total liabilities
|
7,089
|
88
|
||||||
Total shareholders’ equity
|
128,805
|
112,369
|
||||||
Total liabilities and shareholders’ equity
|
$
|
135,894
|
$
|
112,457
|
2020
|
2019
|
|||||||
INCOME:
|
||||||||
Equity in undistributed net income of subsidiaries
|
$
|
15,817
|
$
|
14,770
|
||||
Dividend distributed by subsidiary
|
3,254
|
3,084
|
||||||
Interest-earning deposits
|
10
|
3
|
||||||
Total Income
|
19,081
|
17,857
|
||||||
OPERATING EXPENSES:
|
||||||||
Legal fees
|
49
|
48
|
||||||
Other
|
305
|
325
|
||||||
Total operating expenses
|
354
|
373
|
||||||
Net income
|
$
|
18,727
|
$
|
17,484
|
Cash flow from operating activities:
|
2020
|
2019
|
||||||
Net Income
|
$
|
18,727
|
$
|
17,484
|
||||
Adjustments to reconcile net income to cash provided by operating activities:
|
||||||||
Undistributed earnings of subsidiaries
|
(15,817
|
)
|
(14,770
|
)
|
||||
Net (increase) decrease in prepaid expenses and other assets
|
(13
|
)
|
17
|
|||||
Net increase in total liabilities
|
1
|
6
|
||||||
Net cash provided by operating activities
|
2,898
|
2,737
|
||||||
Cash flows from Investing Activities:
|
||||||||
Investment in subsidiary
|
(7,000
|
)
|
-
|
|||||
Net cash used by investing activities
|
(7,000
|
)
|
-
|
|||||
Cash flows from financing activities:
|
||||||||
Net increase in short-term advances – other banks
|
7,000
|
-
|
||||||
Payment of cash dividends
|
(2,238
|
)
|
(2,037
|
)
|
||||
Stock repurchase
|
(631
|
)
|
-
|
|||||
Net cash provided by (used in) financing activities
|
4,131
|
(2,037
|
)
|
|||||
Net increase in cash and cash equivalents
|
29
|
700
|
||||||
Cash and cash equivalents at beginning of year
|
2,176
|
1,476
|
||||||
Cash and cash equivalents at end of year
|
$
|
2,205
|
$
|
2,176
|
ITEM 9A. |
Controls and Procedures
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
(a)(1) |
The following financial statements and Reports of Bonadio & Co., LLP are included in this Annual Report on Form 10-K:
|
(a)(2) |
List of Financial Schedules
|
(a)(3) |
Exhibits
|
|
3.1 |
Charter of Greene County Bancorp, Inc. (incorporated by reference to Current Report on Form 8-K filed on May 29, 2001)
|
|
3.2 |
Bylaws of Greene County Bancorp, Inc. (incorporated by reference to Exhibit 3.2 of the Current Report on Form 8-K filed on May 22, 2015)
|
|
4.0 |
Form of Stock Certificate of Greene County Bancorp, Inc.
|
|
4.2 |
Description of Greene County Bancorp, Inc. Securities
|
|
10.1 |
Employee Stock Ownership Plan (incorporated herein by reference to Greene County Bancorp, Inc.’s SB-2)
|
|
10.2 |
Employment agreement between the Registrant and Donald E. Gibson, and Michelle M. Plummer effective July 1, 2007, as amended and incorporated by reference from the Registrant’s Form 8-K (Exhibit 10.2 and 10.3) filed on December 2,
2008.
|
|
10.3 |
Employment agreement between the Registrant and Stephen E. Nelson, effective July 1, 2008, incorporated by reference from the Registrant’s Form 8-K (Exhibit 10.1) filed on December 2, 2008.
|
|
10.4 |
Supplemental Executive Retirement Plan, effective July 1, 2010, incorporated by reference from the Registrant’s 2010 Proxy Statement filed on September 27, 2010.
|
|
10.5 |
Greene County Bancorp, Inc. 2011 Phantom Stock Option and Long Term Incentive Plan, effective July 1, 2011, as amended and incorporated by reference from the Registrant’s Form 8-K (Exhibit 10.1), filed on June 20, 2018.
|
|
21.0 |
Subsidiaries of Greene County Bancorp, Inc.
|
|
23.0 |
Consent of Independent Registered Public Accounting Firm
|
|
31.1 |
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
|
31.2 |
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
32.1 |
Certification of Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
32.2 |
Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
101 |
The following materials from Greene County Bancorp, Inc. Form 10-K for the year ended June 30, 2020, formatted in Extensible Business Reporting Language (XBRL): (i) the Consolidated Statements of Income, (ii) the Consolidated
Statements of Financial Condition, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Changes in Shareholders’ Equity, (v) Consolidated Statements of Cash Flows and (vi) related notes, tagged as
blocks of text and in detail.
|
|
GREENE COUNTY BANCORP, INC.
|
Date: September 11, 2020
|
By: /s/ Donald E. Gibson
|
|
Donald E. Gibson
|
|
President and Chief Executive Officer
|
No.
|
INCORPORATED UNDER THE LAWS OF THE UNITED STATES OF AMERICA
|
Shares
|
THIS CERTIFIES that |
is the owner of
|
By |
|
|
By |
|
|
|
SUSAN TIMAN |
|
|
DONALD E. GIBSON |
|
|
CORPORATE SECRETARY |
|
|
PRESIDENT AND CHIEF EXECUTIVE OFFICER
|
|
|
(please print or typewrite name and address including postal zip code of assignee)
|
|
•
|
the acquisition would result in a monopoly or substantially lessen competition;
|
•
|
the financial condition of the acquiring person might jeopardize the financial stability of the institution;
|
|
• |
the competence, experience or integrity of the acquiring person indicates that it would not be in the interest of the depositors or the public to permit the acquisition of control by such person; or
|
•
|
the acquisition would have an adverse effect on the Deposit Insurance Fund.
|
Company
|
State of Incorporation
|
Percent Owned |
The Bank of Greene County
|
Federal
|
100% owned by Greene County Bancorp, Inc.
|
Greene County Commercial Bank
|
New York
|
100% owned by The Bank of Greene County
|
Greene Property Holdings, Ltd.
|
New York
|
100% owned by The Bank of Greene County
|
Greene Risk Management, Inc.
|
Nevada
|
100% owned by Greene County Bancorp, Inc.
|
1. |
I have reviewed this annual report on Form 10-K of Greene County Bancorp, Inc.;
|
2. |
Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which
such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the consolidated financial statements, and other financial information included in this annual report, fairly present in all material respects the consolidated financial condition, results of
operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control
over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the
registrant’s board of directors:
|
Date: September 11, 2020
|
/s/ Donald E. Gibson
|
|
Donald E. Gibson,
|
|
President and Chief Executive Officer
|
1. |
I have reviewed this annual report on Form 10-K of Greene County Bancorp, Inc.;
|
2. |
Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which
such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the consolidated financial statements, and other financial information included in this report, fairly present in all material respects the consolidated financial condition, results of
operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control
over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the
registrant’s board of directors:
|
Date: September 11, 2020
|
/s/ Michelle M. Plummer
|
Michelle M. Plummer, CPA, CGMA
|
|
Executive Vice President,
|
|
Chief Financial Officer and Chief Operating Officer
|
|
1. |
the report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
2. |
the information contained in the report fairly presents, in all material respects, the consolidated financial condition and results of operations of the Company as of the dates and for the periods covered by the
report.
|
Date: September 11, 2020
|
/s/ Donald E. Gibson
|
Donald E. Gibson
|
|
President and Chief Executive Officer
|
|
1. |
the report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
2. |
the information contained in the report fairly presents, in all material respects, the consolidated financial condition and results of operations of the Company as of the dates and for the periods covered by the
report.
|
Date: September 11, 2020
|
/s/ Michelle M. Plummer
|
Michelle M. Plummer, CPA, CGMA
|
|
Executive Vice President,
|
|
Chief Financial Officer and Chief Operating Officer
|