In March 2017, the FASB issued an Update (ASU 2017-08) to its guidance on “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20) related to premium
amortization on purchased callable debt securities. The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the
earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, the amendments in this Update are effective for fiscal
years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments
should be reflected as of the beginning of the fiscal year that includes that interim period. An entity should apply the amendments in this Update on a modified retrospective basis through a cumulative-effect adjustment directly to retained
earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosure about a change in accounting principle. The adoption of this guidance is not expected to have a material
impact on our consolidated results of operations or financial position.
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results
of Operation
|
Overview of the Company’s Activities and Risks
Greene County Bancorp, Inc.’s results of operations depend primarily on its net interest income, which is the difference between the income earned on
Greene County Bancorp, Inc.’s loan and securities portfolios and its cost of funds, consisting of the interest paid on deposits and borrowings. Results of operations are also affected by Greene County Bancorp, Inc.’s provision for loan
losses, gains and losses from sales of securities, noninterest income and noninterest expense. Noninterest income consists primarily of fees and service charges. Greene County Bancorp, Inc.’s noninterest expense consists principally of
compensation and employee benefits, occupancy, equipment and data processing, and other operating expenses. Results of operations are also significantly affected by general economic and competitive conditions, changes in interest rates, as
well as government policies and actions of regulatory authorities. Additionally, future changes in applicable law, regulations or government policies may materially affect Greene County Bancorp, Inc.
To operate successfully, the Company must manage various types of risk, including but not limited to, market or interest rate risk, credit risk,
transaction risk, liquidity risk, security risk, strategic risk, reputation risk and compliance risk. While all of these risks are important, the risks of greatest significance to the Company relate to market or interest rate risk and credit
risk.
Market risk is the risk of loss from adverse changes in market prices and/or interest rates. Since net interest income (the difference between
interest earned on loans and investments and interest paid on deposits and borrowings) is the Company’s primary source of revenue, interest rate risk is the most significant non-credit related market risk to which the Company is exposed. Net
interest income is affected by changes in interest rates as well as fluctuations in the level and duration of the Company’s assets and liabilities.
Interest rate risk is the exposure of the Company’s net interest income to adverse movements in interest rates. In addition to directly impacting
net interest income, changes in interest rates can also affect the amount of new loan originations, the ability of borrowers and debt issuers to repay loans and debt securities, the volume of loan repayments and refinancings, and the flow and
mix of deposits.
Credit risk is the risk to the Company’s earnings and shareholders’ equity that results from customers, to whom loans have been made and to the
issuers of debt securities in which the Company has invested, failing to repay their obligations. The magnitude of risk depends on the capacity and willingness of borrowers and debt issuers to repay and the sufficiency of the value of
collateral obtained to secure the loans made or investments purchased.
Special Note Regarding Forward-Looking Statements
This quarterly report contains forward-looking statements. Greene County Bancorp, Inc. desires to take advantage of the “safe harbor” provisions of
the Private Securities Litigation Reform Act of 1995 and is including this statement for the express purpose of availing itself of the protections of the safe harbor with respect to all such forward-looking statements. These forward-looking
statements, which are included in this Management’s Discussion and Analysis and elsewhere in this quarterly report, describe future plans or strategies and include Greene County Bancorp, Inc.’s expectations of future financial results. The
words “believe,” “expect,” “anticipate,” “project,” and similar expressions identify forward-looking statements. Greene County Bancorp, Inc.’s ability to predict results or the effect of future plans or strategies or qualitative or
quantitative changes based on market risk exposure is inherently uncertain. Factors that could affect actual results include but are not limited to:
|
(a)
|
changes in general market interest rates,
|
|
(b)
|
general economic conditions, including unemployment rates and real estate values,
|
|
(c)
|
legislative and regulatory changes,
|
|
(d)
|
monetary and fiscal policies of the U.S. Treasury and the Federal Reserve,
|
|
(e)
|
changes in the quality or composition of Bank of Greene County’s loan portfolio or the consolidated investment portfolios of Bank of Greene County and Greene County
Bancorp, Inc.,
|
|
(h)
|
demand for financial services in Greene County Bancorp, Inc.’s market area.
|
These factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements, since
results in future periods may differ materially from those currently expected because of various risks and uncertainties.
Non-GAAP Financial Measures
Regulation G, a rule adopted by the Securities and Exchange Commission (SEC), applies to certain SEC filings, including earnings releases, made by
registered companies that contain “non-GAAP financial measures.” GAAP is generally accepted accounting principles in the United States of America. Under Regulation G, companies making public disclosures containing non-GAAP financial
measures must also disclose, along with each non-GAAP financial measure, certain additional information, including a reconciliation of the non-GAAP financial measure to the closest comparable GAAP financial measure (if a comparable GAAP
measure exists) and a statement of the Company’s reasons for utilizing the non-GAAP financial measure as part of its financial disclosures. The SEC has exempted from the definition of “non-GAAP financial measures” certain commonly used
financial measures that are not based on GAAP. When these exempted measures are included in public disclosures, supplemental information is not required. Financial institutions like the Company and its subsidiary banks are subject to an
array of bank regulatory capital measures that are financial in nature but are not based on GAAP and are not easily reconcilable to the closest comparable GAAP financial measures, even in those cases where a comparable measure exists. The
Company follows industry practice in disclosing its financial condition under these various regulatory capital measures in its periodic reports filed with the SEC, including period-end regulatory capital ratios for itself and its subsidiary
banks, and does so without compliance with Regulation G, on the widely-shared assumption that the SEC regards such non-GAAP measures to be exempt from Regulation G. The Company uses in this Report additional non-GAAP financial measures that
are commonly utilized by financial institutions and have not been specifically exempted by the SEC from Regulation G. The Company provides, as supplemental information, such non-GAAP measures included in this Report as described immediately
below.
Tax-Equivalent Net Interest Income and Net Interest Margin:
Net interest income, as a component of the tabular presentation by financial institutions of Selected Financial Information regarding their recently completed operations, as well as disclosures based on that tabular presentation, is commonly
presented on a tax-equivalent basis. That is, to the extent that some component of the institution’s net interest income, which is presented on a before-tax basis, is exempt from taxation (e.g., is received by the institution as a result of
its holdings of state or municipal obligations), an amount equal to the tax benefit derived from that component is added to the actual before-tax net interest income total. This adjustment is considered helpful in comparing one financial
institution’s net interest income to that of another institution or in analyzing any institution’s net interest income trend line over time, to correct any analytical distortion that might otherwise arise from the fact that financial
institutions vary widely in the proportions of their portfolios that are invested in tax-exempt securities, and that even a single institution may significantly alter over time the proportion of its own portfolio that is invested in
tax-exempt obligations. Moreover, net interest income is itself a component of a second financial measure commonly used by financial institutions, net interest margin, which is the ratio of net interest income to average earning assets. For
purposes of this measure as well, tax-equivalent net interest income is generally used by financial institutions, again to provide a better basis of comparison from institution to institution and to better demonstrate a single institution’s
performance over time. While we present net interest income and net interest margin utilizing GAAP measures (no tax-equivalent adjustments) as a component of the tabular presentation within our disclosures, we do provide as supplemental
information net interest income and net interest margin on a tax-equivalent basis.
Comparison of Financial Condition at December 31, 2018 and June 30, 2018
ASSETS
Total assets of the Company were $1.2 billion at December 31, 2018 and at June 30, 2018, an increase of $43.8 million, or 3.8%. Securities
available-for-sale and held-to-maturity amounted to $384.1 million at December 31, 2018 as compared to $395.4 million at June 30, 2018, a decrease of $11.3 million, or 2.9%. Net loans grew by $46.0 million, or 6.5%, to $750.4 million at
December 31, 2018 as compared to $704.4 million at June 30, 2018.
CASH AND CASH EQUIVALENTS
Total cash and cash equivalents increased $5.4 million to $31.9 million at December 31, 2018 from $26.5 million at June 30, 2018. The level of cash
and cash equivalents is a function of the daily account clearing needs and deposit levels as well as activities associated with securities transactions and loan funding. All of these items can cause cash levels to fluctuate significantly on
a daily basis.
SECURITIES
Securities available-for-sale and held-to-maturity decreased $11.3 million, or 2.9%, to $384.1 million at December 31, 2018 as compared to $395.4
million at June 30, 2018. Securities purchases totaled $72.4 million during the six months ended December 31, 2018 and consisted of $59.4 million of state and political subdivision securities and $13.0 million of mortgage-backed securities.
Principal pay-downs and maturities during the six months ended December 31, 2018 amounted to $83.8 million, of which $19.2 million were mortgage-backed securities, and $64.6 million were state and political subdivision securities. At December
31, 2018, 58.1% of our securities portfolio consisted of state and political subdivision securities to take advantage of tax savings and to promote Greene County Bancorp, Inc.’s participation in the communities in which it operates.
Mortgage-backed securities and asset-backed securities held within the portfolio do not contain sub-prime loans and are not exposed to the credit risk associated with such lending.
|
|
December 31, 2018
|
|
|
June 30, 2018
|
|
(Dollars in thousands)
|
|
Balance
|
|
|
Percentage of
portfolio
|
|
|
Balance
|
|
|
Percentage of
portfolio
|
|
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government sponsored enterprises
|
|
$
|
5,531
|
|
|
|
1.4
|
%
|
|
$
|
5,531
|
|
|
|
1.4
|
%
|
State and political subdivisions
|
|
|
80,438
|
|
|
|
20.9
|
|
|
|
92,255
|
|
|
|
23.4
|
|
Mortgage-backed securities-residential
|
|
|
2,859
|
|
|
|
0.8
|
|
|
|
3,247
|
|
|
|
0.8
|
|
Mortgage-backed securities-multifamily
|
|
|
16,655
|
|
|
|
4.4
|
|
|
|
18,069
|
|
|
|
4.6
|
|
Corporate debt securities
|
|
|
1,709
|
|
|
|
0.4
|
|
|
|
1,704
|
|
|
|
0.4
|
|
Total securities available-for-sale
|
|
|
107,192
|
|
|
|
27.9
|
|
|
|
120,806
|
|
|
|
30.6
|
|
Securities held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government sponsored enterprises
|
|
|
9,248
|
|
|
|
2.4
|
|
|
|
9,245
|
|
|
|
2.3
|
|
State and political subdivisions
|
|
|
142,854
|
|
|
|
37.2
|
|
|
|
136,335
|
|
|
|
34.5
|
|
Mortgage-backed securities-residential
|
|
|
5,256
|
|
|
|
1.4
|
|
|
|
6,472
|
|
|
|
1.6
|
|
Mortgage-backed securities-multifamily
|
|
|
116,810
|
|
|
|
30.4
|
|
|
|
118,780
|
|
|
|
30.0
|
|
Corporate debt securities
|
|
|
1,471
|
|
|
|
0.4
|
|
|
|
1,466
|
|
|
|
0.4
|
|
Other securities
|
|
|
1,300
|
|
|
|
0.3
|
|
|
|
2,252
|
|
|
|
0.6
|
|
Total securities held-to-maturity
|
|
|
276,939
|
|
|
|
72.1
|
|
|
|
274,550
|
|
|
|
69.4
|
|
Total securities
|
|
$
|
384,131
|
|
|
|
100.0
|
%
|
|
$
|
395,356
|
|
|
|
100.0
|
%
|
LOANS
Net loans receivable increased $46.0 million, or 6.5%, to $750.4 million at December 31, 2018 from $704.4 million at June 30, 2018. The loan growth
experienced during the six months ended December 31, 2018 consisted primarily of $16.8 million in commercial real estate loans, $14.9 million in commercial loans, $12.6 million in residential real estate loans, and $7.7 million in
multi-family real estate loans. This growth was partially offset by a decrease in construction loans (both residential and nonresidential) of $6.1 million. The Company continues to experience loan growth as a result of continued growth in
customer base within its newest markets in Ulster and Columbia counties, and its relationships with other financial institutions in originating loan participations. We believe that the continued low interest rate environment and strong
customer satisfaction from personal service continued to enhance loan growth. If long term rates begin to rise, the Company anticipates some slowdown in new loan demand as well as refinancing activities. Bank of Greene County continues to
use a conservative underwriting policy in regard to all loan originations, and does not engage in sub-prime lending or other exotic loan products. A significant decline in home values, however, in the Company’s markets could have a negative
effect on the consolidated results of operations, as any such decline in home values would likely lead to a decrease in residential real estate loans and new home equity loan originations and increased delinquencies and defaults in both the
consumer home equity loan and the residential real estate loan portfolios and result in increased losses in these portfolios. Updated appraisals are obtained on loans when there is a reason to believe that there has been a change in the
borrower’s ability to repay the loan principal and interest, generally, when a loan is in a delinquent status. Additionally, if an existing loan is to be modified or refinanced, generally, an appraisal is ordered to ensure continued
collateral adequacy.
(Dollars in thousands)
|
|
December 31, 2018
|
|
|
June 30, 2018
|
|
|
|
Balance
|
|
|
Percentage of
Portfolio
|
|
|
Balance
|
|
|
Percentage of
Portfolio
|
|
Residential real estate
|
|
$
|
268,463
|
|
|
|
35.2
|
%
|
|
$
|
255,848
|
|
|
|
35.7
|
%
|
Residential construction and land
|
|
|
7,875
|
|
|
|
1.0
|
|
|
|
9,951
|
|
|
|
1.4
|
|
Multi-family
|
|
|
22,626
|
|
|
|
3.0
|
|
|
|
14,961
|
|
|
|
2.1
|
|
Commercial real estate
|
|
|
300,725
|
|
|
|
39.5
|
|
|
|
283,935
|
|
|
|
39.7
|
|
Commercial construction
|
|
|
35,255
|
|
|
|
4.6
|
|
|
|
39,366
|
|
|
|
5.5
|
|
Home equity
|
|
|
22,413
|
|
|
|
2.9
|
|
|
|
21,919
|
|
|
|
3.1
|
|
Consumer installment
|
|
|
5,344
|
|
|
|
0.7
|
|
|
|
5,017
|
|
|
|
0.7
|
|
Commercial loans
|
|
|
99,532
|
|
|
|
13.1
|
|
|
|
84,644
|
|
|
|
11.8
|
|
Total gross loans
|
|
|
762,233
|
|
|
|
100.0
|
%
|
|
|
715,641
|
|
|
|
100.0
|
%
|
Allowance for loan losses
|
|
|
(12,673
|
)
|
|
|
|
|
|
|
(12,024
|
)
|
|
|
|
|
Deferred fees and costs
|
|
|
810
|
|
|
|
|
|
|
|
814
|
|
|
|
|
|
Total net loans
|
|
$
|
750,370
|
|
|
|
|
|
|
$
|
704,431
|
|
|
|
|
|
ALLOWANCE FOR LOAN LOSSES
The allowance for loan losses is established through a provision for loan losses based on management’s evaluation of the risk inherent in the loan
portfolio, the composition of the loan portfolio, specific impaired loans and current economic conditions. Such evaluation, which includes a review of certain identified loans on which full collectability may not be reasonably assured,
considers among other matters, the estimated net realizable value or the fair value of the underlying collateral, economic conditions, payment status of the loan, historical loan loss experience and other factors that warrant recognition in
providing for an allowance for loan loss. In addition, various regulatory agencies, as an integral part of their examination process, periodically review Bank of Greene County’s allowance for loan losses. Such agencies may require Bank of
Greene County to recognize additions to the allowance based on their judgment about information available to them at the time of their examination. Bank of Greene County considers smaller balance residential mortgages, home equity loans and
installment loans to customers as small, homogeneous loans, which are evaluated for impairment collectively based on historical loss experience. Larger balance residential and commercial mortgage and business loans are viewed individually
and considered impaired if it is probable that Bank of Greene County will not be able to collect scheduled payments of principal and interest when due, according to the contractual terms of the loan agreements. The measurement of impaired
loans is generally based on the fair value of the underlying collateral. Bank of Greene County charges loans off against the allowance for loan losses when it becomes evident that a loan cannot be collected within a reasonable amount of time
or that it will cost the Bank more than it will receive, and all possible avenues of repayment have been analyzed, including the potential of future cash flow, the value of the underlying collateral, and strength of any guarantors or
co-borrowers. Generally, consumer loans and smaller business loans (not secured by real estate) in excess of 90 days are charged-off against the allowance for loan losses, unless equitable arrangements are made. For loans secured by real
estate, a charge-off is recorded when it is determined that the collection of all or a portion of a loan may not be collected and the amount of that loss can be reasonably estimated. The allowance for loan losses is increased by a provision
for loan losses (which results in a charge to expense) and recoveries of loans previously charged off and is reduced by charge-offs.
Analysis of allowance for loan losses activity
|
|
At or for the six months ended
December 31,
|
|
(Dollars in thousands)
|
|
2018
|
|
|
2017
|
|
Balance at the beginning of the period
|
|
$
|
12,024
|
|
|
$
|
11,022
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
Residential real estate
|
|
|
96
|
|
|
|
71
|
|
Consumer installment
|
|
|
188
|
|
|
|
177
|
|
Commercial loans
|
|
|
-
|
|
|
|
157
|
|
Total loans charged off
|
|
|
284
|
|
|
|
405
|
|
|
|
|
|
|
|
|
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
Residential real estate
|
|
|
13
|
|
|
|
-
|
|
Consumer installment
|
|
|
59
|
|
|
|
36
|
|
Commercial loans
|
|
|
153
|
|
|
|
-
|
|
Total recoveries
|
|
|
225
|
|
|
|
36
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
|
|
|
59
|
|
|
|
369
|
|
|
|
|
|
|
|
|
|
|
Provisions charged to operations
|
|
|
708
|
|
|
|
699
|
|
Balance at the end of the period
|
|
$
|
12,673
|
|
|
$
|
11,352
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs to average loans outstanding (annualized)
|
|
|
0.02
|
%
|
|
|
0.12
|
%
|
Net charge-offs to nonperforming assets (annualized)
|
|
|
3.20
|
%
|
|
|
16.16
|
%
|
Allowance for loan losses to nonperforming loans
|
|
|
350.66
|
%
|
|
|
309.91
|
%
|
Allowance for loan losses to total loans receivable
|
|
|
1.66
|
%
|
|
|
1.68
|
%
|
Nonaccrual Loans and Nonperforming Assets
Loans are reviewed on a regular basis to assess collectability of all principal and interest payments due. Management determines that a loan is
impaired or nonperforming when it is probable at least a portion of the principal or interest will not be collected in accordance with contractual terms of the note. When a loan is determined to be impaired, the measurement of the loan is
based on present value of estimated future cash flows, except that all collateral-dependent loans are measured for impairment based on the fair value of the collateral.
Generally, management places loans on nonaccrual status once the loans have become 90 days or more delinquent or sooner if there is a significant
reason for management to believe the collectability is questionable and, therefore, interest on the loan will no longer be recognized on an accrual basis. The Company identifies impaired loans and measures the impairment in accordance with
FASB ASC subtopic “
Receivables – Loan Impairment.”
Management may consider a loan impaired once it is classified as nonaccrual and when it is probable
that the borrower will be unable to repay the loan according to the original contractual terms of the loan agreement or the loan is restructured in a troubled debt restructuring. It should be noted that management does not evaluate all loans
individually for impairment. Generally, Bank of Greene County considers residential mortgages, home equity loans and installment loans as small, homogeneous loans, which are evaluated for impairment collectively based on historical loan
experience and other factors. In contrast, large commercial mortgage, construction, multi-family, business loans and select larger balance residential mortgage loans are viewed individually and considered impaired if it is probable that Bank
of Greene County will not be able to collect scheduled payments of principal and interest when due, according to the contractual terms of the loan agreement. The measurement of impaired loans is generally based on the fair value of the
underlying collateral. The majority of Bank of Greene County loans, including most nonaccrual loans, are small homogenous loan types adequately supported by collateral. Management considers the payment status of loans in the process of
evaluating the adequacy of the allowance for loan losses among other factors. Based on this evaluation, a delinquent loan’s risk rating may be downgraded to either pass-watch, special mention, or substandard, and the allocation of the
allowance for loan loss is based upon the risk associated with such designation. A loan does not have to be 90 days delinquent in order to be classified as nonperforming. Foreclosed real estate is considered to be a nonperforming asset.
Analysis of Nonaccrual Loans and Nonperforming Assets
(Dollars in thousands)
|
|
December 31, 2018
|
|
|
June 30, 2018
|
|
Nonaccruing loans:
|
|
|
|
|
|
|
Residential real estate
|
|
$
|
1,843
|
|
|
$
|
1,778
|
|
Commercial real estate
|
|
|
1,247
|
|
|
|
1,147
|
|
Home equity
|
|
|
414
|
|
|
|
298
|
|
Consumer installment
|
|
|
23
|
|
|
|
18
|
|
Commercial
|
|
|
87
|
|
|
|
276
|
|
Total nonaccruing loans
|
|
|
3,614
|
|
|
|
3,517
|
|
90 days & accruing
|
|
|
|
|
|
|
|
|
Residential real estate
|
|
|
-
|
|
|
|
62
|
|
Total 90 days & accruing
|
|
|
-
|
|
|
|
62
|
|
Total nonperforming loans
|
|
|
3,614
|
|
|
|
3,579
|
|
Foreclosed real estate:
|
|
|
|
|
|
|
|
|
Residential real estate
|
|
|
79
|
|
|
|
119
|
|
Total foreclosed real estate
|
|
|
79
|
|
|
|
119
|
|
Total nonperforming assets
|
|
$
|
3,693
|
|
|
$
|
3,698
|
|
|
|
|
|
|
|
|
|
|
Troubled debt restructuring:
|
|
|
|
|
|
|
|
|
Nonperforming (included above)
|
|
$
|
762
|
|
|
$
|
774
|
|
Performing (accruing and excluded above)
|
|
|
1,675
|
|
|
|
1,557
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming assets as a percentage of total assets
|
|
|
0.31
|
%
|
|
|
0.32
|
%
|
Total nonperforming loans to net loans
|
|
|
0.48
|
%
|
|
|
0.51
|
%
|
The table below details additional information related to nonaccrual loans for the three and six months ended December 31:
|
|
For the three months
ended December 31,
|
|
|
For the six months
ended December 31
|
|
(In thousands)
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Interest income that would have been recorded if loans had been performing in accordance with
original terms
|
|
$
|
58
|
|
|
$
|
59
|
|
|
$
|
129
|
|
|
$
|
137
|
|
Interest income that was recorded on nonaccrual loans
|
|
|
23
|
|
|
|
31
|
|
|
|
55
|
|
|
|
65
|
|
Nonperforming assets amounted to $3.7
million at December 31, 2018 and June 30,
2018. Nonaccrual loans consisted primarily of loans secured by real estate at December 31, 2018 and June 30, 2018. Loans on nonaccrual status totaled $3.6 million at December 31, 2018 of which $2.1 million were in the process of foreclosure.
At December 31, 2018, there were 12 residential loans in the process of foreclosure totaling $1.5 million. Included in nonaccrual loans were $1.1 million of loans which were less than 90 days past due at December 31, 2018, but have a recent
history of delinquency greater than 90 days past due. These loans will be returned to accrual status once they have demonstrated a history of timely payments. Loans on nonaccrual status totaled $3.5 million at June 30, 2018 of which $1.9
million were in the process of foreclosure. At June 30, 2018, there were 11 residential loans in the process of foreclosure totaling $1.2 million. Included in nonaccrual loans were $1.3 million of loans which were less than 90 days past due
at June 30, 2018, but have a recent history of delinquency greater than 90 days past due.
Impaired Loans
The Company identifies impaired loans and measures the impairment in accordance with FASB ASC subtopic “
Receivables – Loan Impairment”
. A loan is considered impaired when it is probable that the borrower will be unable to repay the loan according to the original contractual terms of the loan
agreement or the loan is restructured in a troubled debt restructuring.
The table below details additional information on impaired loans at December 31, 2018 and June 30, 2018:
(In thousands)
|
|
December 31, 2018
|
|
|
June 30, 2018
|
|
Balance of impaired loans, with a valuation allowance
|
|
$
|
2,228
|
|
|
$
|
2,799
|
|
Allowances relating to impaired loans included in allowance for loan losses
|
|
|
356
|
|
|
|
482
|
|
Balance of impaired loans, without a valuation allowance
|
|
|
1,882
|
|
|
|
1,349
|
|
Total impaired loans
|
|
|
4,110
|
|
|
|
4,148
|
|
|
|
For the three months
ended December 31,
|
|
|
For the six months
ended December 31,
|
|
(In thousands)
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Average balance of impaired loans for the periods ended
|
|
$
|
3,920
|
|
|
$
|
3,931
|
|
|
$
|
3,938
|
|
|
$
|
3,816
|
|
Interest income recorded on impaired loans during the periods ended
|
|
|
25
|
|
|
|
27
|
|
|
|
63
|
|
|
|
49
|
|
DEPOSITS
Deposits totaled $1.0 billion at December 31, 2018 and at June 30, 2018, a decrease of $16.0 million, or 1.6%. Certificates of deposits increased
$6.5 million, or 12.7%, and NOW deposits increased $5.7 million, or 1.1%, when comparing December 31, 2018 and June 30, 2018. These increases were offset by a decrease in money market deposits of $25.4 million, or 19.0%, a decrease in
savings deposits of $1.5 million, or 0.7%, and a decrease in noninterest-bearing deposits of $1.3 million, or 1.3%, when comparing December 31, 2018 and June 30, 2018. These decreases are primarily the result of normal fluctuations in
municipal deposits which have been partially offset by an increase in retail and commercial deposits as the Company continues to expand into its newest markets. Included within certificates of deposits at December 31, 2018 and June 30, 2018
were $22.0 million and $15.0 million, respectively, in brokered certificates of deposit.
(In thousands)
|
|
December 31, 2018
|
|
|
Percentage
of Portfolio
|
|
|
June 30, 2018
|
|
|
Percentage
of Portfolio
|
|
Noninterest-bearing deposits
|
|
$
|
101,387
|
|
|
|
10.1
|
%
|
|
$
|
102,694
|
|
|
|
10.0
|
%
|
Certificates of deposit
|
|
|
57,852
|
|
|
|
5.7
|
|
|
|
51,317
|
|
|
|
5.0
|
|
Savings deposits
|
|
|
214,623
|
|
|
|
21.3
|
|
|
|
216,103
|
|
|
|
21.1
|
|
Money market deposits
|
|
|
108,320
|
|
|
|
10.7
|
|
|
|
133,753
|
|
|
|
13.0
|
|
NOW deposits
|
|
|
527,038
|
|
|
|
52.2
|
|
|
|
521,367
|
|
|
|
50.9
|
|
Total deposits
|
|
$
|
1,009,220
|
|
|
|
100.0
|
%
|
|
$
|
1,025,234
|
|
|
|
100.0
|
%
|
BORROWINGS
At December 31, 2018, Bank of Greene County had pledged approximately $299.4 million of its residential and commercial mortgage portfolio as
collateral for borrowing and irrevocable stand-by letters of credit at the Federal Home Loan Bank of New York (“FHLB”). The maximum amount of funding available from the FHLB was $238.1 million at December 31, 2018, of which $69.9 million in
borrowings and $55.0 million in irrevocable stand-by letters of credit were outstanding at December 31, 2018. There were $54.7 million of short-term or overnight borrowings outstanding at December 31, 2018, compared to no short-term or
overnight borrowings at June 30, 2018. The increase in short-term borrowings is the result of the continued growth in earning assets and the decrease in deposit, as discussed above. The $15.2 million consisted of long-term fixed rate
advances with a weighted average rate of 1.62% and a weighted average maturity of 20 months. The $55.0 million of irrevocable stand-by letters of credit with the FHLB have been issued to secure municipal transactional deposit accounts, on
behalf of Greene County Commercial Bank.
Bank of Greene County also pledges securities as collateral at the Federal Reserve Bank discount window for overnight borrowings. At December 31,
2018, approximately $1.7 million of collateral was available to be pledged against potential borrowings at the Federal Reserve Bank discount window. There were no balances outstanding with the Federal Reserve Bank at December 31, 2018 or June
30, 2018.
Bank of Greene County has established unsecured lines of credit with Atlantic Community Bankers Bank and another financial institution for $6.0
million and $10.0 million, respectively. At December 31, 2018 and June 30, 2018, there were no balances outstanding on either of these lines of credit. Greene County Bancorp, Inc. has also established an unsecured line of credit with Atlantic
Community Bankers Bank for $7.5 million. At December 31, 2018 there was $200,000 outstanding, and at June 30, 2018, there were no balances outstanding on this line of credit. All of these lines of credit provide for overnight borrowing and
the interest rate is determined at the time of the borrowing.
Scheduled maturities of long-term borrowings at December 31, 2018 were as follows:
(In thousands)
|
|
|
|
Within the twelve months ended December 31,
|
|
|
|
2019
|
|
$
|
3,500
|
|
2020
|
|
|
6,500
|
|
2021
|
|
|
2,950
|
|
2022
|
|
|
2,200
|
|
|
|
$
|
15,150
|
|
EQUITY
Shareholders’ equity increased to $104.1 million at December 31, 2018 from $96.2 million at June 30, 2018, resulting primarily from net income of
$9.0 million, partially offset by dividends declared and paid of $1.3 million and a decrease in other accumulated comprehensive loss of $217,000.
Selected Equity Data:
|
|
|
|
|
|
December 31, 2018
|
|
|
June 30, 2018
|
|
Shareholders’ equity to total assets, at end of period
|
|
|
8.71
|
%
|
|
|
8.35
|
%
|
|
|
|
|
|
|
|
|
|
Book value per share
|
|
$
|
12.20
|
|
|
$
|
11.27
|
|
Closing market price of common stock
|
|
$
|
31.12
|
|
|
$
|
33.90
|
|
|
|
For the six months ended December 31,
|
|
|
|
|
2018
|
|
|
|
2017
|
|
Average shareholders’ equity to average assets
|
|
|
8.60
|
%
|
|
|
8.49
|
%
|
Dividend payout ratio
1
|
|
|
19.05
|
%
|
|
|
23.21
|
%
|
Actual dividends paid to net income
2
|
|
|
13.96
|
%
|
|
|
10.73
|
%
|
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 54.0% 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 December 31, 2018 and the three and six months ended December 31, 2017. Dividends declared during 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.
Comparison of Operating Results for the Three and Six Months Ended December 31, 2018 and 2017
Average Balance Sheet
The following table sets forth certain information relating to Greene County Bancorp, Inc. for the three and six months ended December 31, 2018 and
2017. For the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resultant yields, as well as the interest expense on average interest-bearing liabilities, are expressed both in dollars
and rates. No tax equivalent adjustments were made. Average balances were based on daily averages. Average loan balances include nonperforming loans. The loan yields include net amortization of certain deferred fees and costs that are
considered adjustments to yields.
|
|
Three months ended December 31,
|
|
|
|
2018
|
|
|
2017
|
|
(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 receivable, net
1
|
|
$
|
750,182
|
|
|
$
|
8,696
|
|
|
|
4.64
|
%
|
|
$
|
658,990
|
|
|
$
|
7,287
|
|
|
|
4.42
|
%
|
Securities
2
|
|
|
393,525
|
|
|
|
2,624
|
|
|
|
2.67
|
|
|
|
340,403
|
|
|
|
2,016
|
|
|
|
2.37
|
|
Interest-bearing bank balances and federal funds
|
|
|
5,111
|
|
|
|
28
|
|
|
|
2.19
|
|
|
|
27,159
|
|
|
|
87
|
|
|
|
1.28
|
|
FHLB stock
|
|
|
1,950
|
|
|
|
58
|
|
|
|
11.90
|
|
|
|
1,689
|
|
|
|
30
|
|
|
|
7.10
|
|
Total interest-earning assets
|
|
|
1,150,768
|
|
|
|
11,406
|
|
|
|
3.96
|
%
|
|
|
1,028,241
|
|
|
|
9,420
|
|
|
|
3.66
|
%
|
Cash and due from banks
|
|
|
9,633
|
|
|
|
|
|
|
|
|
|
|
|
8,933
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses
|
|
|
(12,452
|
)
|
|
|
|
|
|
|
|
|
|
|
(11,167
|
)
|
|
|
|
|
|
|
|
|
Other noninterest-earning assets
|
|
|
20,186
|
|
|
|
|
|
|
|
|
|
|
|
18,362
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,168,135
|
|
|
|
|
|
|
|
|
|
|
$
|
1,044,369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and money market deposits
|
|
$
|
325,726
|
|
|
$
|
295
|
|
|
|
0.36
|
%
|
|
$
|
324,300
|
|
|
$
|
261
|
|
|
|
0.32
|
%
|
NOW deposits
|
|
|
554,996
|
|
|
|
832
|
|
|
|
0.60
|
|
|
|
464,907
|
|
|
|
523
|
|
|
|
0.45
|
|
Certificates of deposit
|
|
|
45,335
|
|
|
|
144
|
|
|
|
1.27
|
|
|
|
38,768
|
|
|
|
83
|
|
|
|
0.86
|
|
Borrowings
|
|
|
27,171
|
|
|
|
140
|
|
|
|
2.06
|
|
|
|
22,783
|
|
|
|
93
|
|
|
|
1.63
|
|
Total interest-bearing liabilities
|
|
|
953,228
|
|
|
|
1,411
|
|
|
|
0.59
|
%
|
|
|
850,758
|
|
|
|
960
|
|
|
|
0.45
|
%
|
Noninterest-bearing deposits
|
|
|
102,467
|
|
|
|
|
|
|
|
|
|
|
|
99,200
|
|
|
|
|
|
|
|
|
|
Other noninterest-bearing liabilities
|
|
|
10,744
|
|
|
|
|
|
|
|
|
|
|
|
6,412
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity
|
|
|
101,696
|
|
|
|
|
|
|
|
|
|
|
|
87,999
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
$
|
1,168,135
|
|
|
|
|
|
|
|
|
|
|
$
|
1,044,369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
|
|
|
$
|
9,995
|
|
|
|
|
|
|
|
|
|
|
$
|
8,460
|
|
|
|
|
|
Net interest rate spread
|
|
|
|
|
|
|
|
|
|
|
3.37
|
%
|
|
|
|
|
|
|
|
|
|
|
3.21
|
%
|
Net earnings assets
|
|
$
|
197,540
|
|
|
|
|
|
|
|
|
|
|
$
|
177,483
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
|
|
|
|
|
|
|
|
|
|
3.47
|
%
|
|
|
|
|
|
|
|
|
|
|
3.29
|
%
|
Average interest-earning assets to average interest-bearing liabilities
|
|
|
120.72
|
%
|
|
|
|
|
|
|
|
|
|
|
120.86
|
%
|
|
|
|
|
|
|
|
|
1
Calculated
net of deferred loan fees and costs, loan discounts, and loans in process.
2
Includes
tax-free securities, mortgage-backed securities, and asset-backed securities
.
Taxable-equivalent net interest income and net interest margin
|
|
For the three months ended
December 31,
|
|
(Dollars in thousands)
|
|
2018
|
|
|
2017
|
|
Net interest income (GAAP)
|
|
$
|
9,995
|
|
|
$
|
8,460
|
|
Tax-equivalent adjustment
(1)
|
|
|
493
|
|
|
|
532
|
|
Net interest income (fully taxable-equivalent)
|
|
$
|
10,488
|
|
|
$
|
8,992
|
|
|
|
|
|
|
|
|
|
|
Average interest-earning assets
|
|
$
|
1,150,768
|
|
|
$
|
1,028,241
|
|
Net interest margin (fully taxable-equivalent)
|
|
|
3.65
|
%
|
|
|
3.50
|
%
|
1
Net
interest income on a taxable-equivalent basis includes the additional amount of interest income that would have been earned if the Company’s investment in tax-exempt securities and loans had been subject to federal and New York State income
taxes yielding the same after-tax income. The rate used for this adjustment was 21% and 28.1% for federal income taxes and 3.98% and 3.62% for New York State income taxes for the period ended December 31, 2018 and 2017 respectively
.
|
|
Six months ended December 31,
|
|
|
|
2018
|
|
|
2017
|
|
(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 receivable, net
1
|
|
$
|
737,662
|
|
|
$
|
16,994
|
|
|
|
4.61
|
%
|
|
$
|
649,121
|
|
|
$
|
14,346
|
|
|
|
4.42
|
%
|
Securities
2
|
|
|
396,196
|
|
|
|
5,264
|
|
|
|
2.66
|
|
|
|
334,645
|
|
|
|
4,005
|
|
|
|
2.39
|
|
Interest-bearing bank balances and federal funds
|
|
|
5,945
|
|
|
|
59
|
|
|
|
1.98
|
|
|
|
16,035
|
|
|
|
99
|
|
|
|
1.23
|
|
FHLB stock
|
|
|
2,631
|
|
|
|
86
|
|
|
|
6.54
|
|
|
|
1,838
|
|
|
|
59
|
|
|
|
6.42
|
|
Total interest-earning assets
|
|
|
1,142,434
|
|
|
|
22,403
|
|
|
|
3.92
|
%
|
|
|
1,001,639
|
|
|
|
18,509
|
|
|
|
3.69
|
%
|
Cash and due from banks
|
|
|
9,629
|
|
|
|
|
|
|
|
|
|
|
|
9,115
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses
|
|
|
(12,284
|
)
|
|
|
|
|
|
|
|
|
|
|
(11,117
|
)
|
|
|
|
|
|
|
|
|
Other noninterest-earning assets
|
|
|
19,671
|
|
|
|
|
|
|
|
|
|
|
|
18,575
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,159,450
|
|
|
|
|
|
|
|
|
|
|
$
|
1,018,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and money market deposits
|
|
$
|
334,362
|
|
|
$
|
588
|
|
|
|
0.35
|
%
|
|
$
|
321,304
|
|
|
$
|
517
|
|
|
|
0.32
|
%
|
NOW deposits
|
|
|
527,348
|
|
|
|
1,473
|
|
|
|
0.56
|
|
|
|
438,882
|
|
|
|
986
|
|
|
|
0.45
|
|
Certificates of deposit
|
|
|
42,453
|
|
|
|
246
|
|
|
|
1.16
|
|
|
|
41,202
|
|
|
|
173
|
|
|
|
0.84
|
|
Borrowings
|
|
|
42,298
|
|
|
|
444
|
|
|
|
2.10
|
|
|
|
25,566
|
|
|
|
203
|
|
|
|
1.59
|
|
Total interest-bearing liabilities
|
|
|
946,461
|
|
|
|
2,751
|
|
|
|
0.58
|
%
|
|
|
826,954
|
|
|
|
1,879
|
|
|
|
0.45
|
%
|
Noninterest-bearing deposits
|
|
|
102,341
|
|
|
|
|
|
|
|
|
|
|
|
97,626
|
|
|
|
|
|
|
|
|
|
Other noninterest-bearing liabilities
|
|
|
10,915
|
|
|
|
|
|
|
|
|
|
|
|
7,184
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity
|
|
|
99,733
|
|
|
|
|
|
|
|
|
|
|
|
86,448
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
$
|
1,159,450
|
|
|
|
|
|
|
|
|
|
|
$
|
1,018,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
|
|
|
$
|
19,652
|
|
|
|
|
|
|
|
|
|
|
$
|
16,630
|
|
|
|
|
|
Net interest rate spread
|
|
|
|
|
|
|
|
|
|
|
3.34
|
%
|
|
|
|
|
|
|
|
|
|
|
3.24
|
%
|
Net earnings assets
|
|
$
|
195,973
|
|
|
|
|
|
|
|
|
|
|
$
|
174,685
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
|
|
|
|
|
|
|
|
|
|
3.44
|
%
|
|
|
|
|
|
|
|
|
|
|
3.32
|
%
|
Average interest-earning assets to average interest-bearing liabilities
|
|
|
120.71
|
%
|
|
|
|
|
|
|
|
|
|
|
121.12
|
%
|
|
|
|
|
|
|
|
|
1
Calculated
net of deferred loan fees and costs, loan discounts, and loans in process.
2
Includes
tax-free securities, mortgage-backed securities, and asset-backed securities
.
Taxable-equivalent net interest income and net interest margin
|
|
For the six months ended
December 31,
|
|
(Dollars in thousands)
|
|
2018
|
|
|
2017
|
|
Net interest income (GAAP)
|
|
$
|
19,652
|
|
|
$
|
16,630
|
|
Tax-equivalent adjustment
(1)
|
|
|
962
|
|
|
|
1,037
|
|
Net interest income (fully taxable-equivalent)
|
|
$
|
20,614
|
|
|
$
|
17,667
|
|
|
|
|
|
|
|
|
|
|
Average interest-earning assets
|
|
$
|
1,142,434
|
|
|
$
|
1,001,639
|
|
Net interest margin (fully taxable-equivalent)
|
|
|
3.61
|
%
|
|
|
3.53
|
%
|
1
Net
interest income on a taxable-equivalent basis includes the additional amount of interest income that would have been earned if the Company’s investment in tax-exempt securities and loans had been subject to federal and New York State income
taxes yielding the same after-tax income. The rate used for this adjustment was 21% and 28.1% for federal income taxes and 3.98% and 3.62% for New York State income taxes for the period ended December 31, 2018 and 2017 respectively
.
Rate / Volume Analysis
The following table presents the extent to which changes in interest rates and changes in the volume of interest-earning assets and interest-bearing
liabilities have affected Greene County Bancorp, Inc.’s interest income and interest expense during the periods indicated. Information is provided in each category with respect to:
|
(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
|
The changes attributable to the combined impact of volume and rate have been allocated proportionately to the changes due to volume and the changes
due to rate.
(Dollars in thousands)
|
|
Three Months Ended December 31,
2018 versus 2017
|
|
|
Six Months Ended December 31,
2018 versus 2017
|
|
|
|
Increase/(Decrease)
Due To
|
|
|
|
|
|
Increase/(Decrease)
Due To
|
|
|
|
|
|
|
Volume
|
|
|
Rate
|
|
|
(Decrease)
|
|
|
Volume
|
|
|
Rate
|
|
|
(Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Earning Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable, net
1
|
|
$
|
1,036
|
|
|
$
|
373
|
|
|
$
|
1,409
|
|
|
$
|
2,013
|
|
|
$
|
635
|
|
|
$
|
2,648
|
|
Securities
2
|
|
|
336
|
|
|
|
272
|
|
|
|
608
|
|
|
|
780
|
|
|
|
479
|
|
|
|
1,259
|
|
Interest-bearing bank balances and federal funds
|
|
|
(97
|
)
|
|
|
38
|
|
|
|
(59
|
)
|
|
|
(81
|
)
|
|
|
41
|
|
|
|
(40
|
)
|
FHLB stock
|
|
|
5
|
|
|
|
23
|
|
|
|
28
|
|
|
|
26
|
|
|
|
1
|
|
|
|
27
|
|
Total interest-earning assets
|
|
|
1,280
|
|
|
|
706
|
|
|
|
1,986
|
|
|
|
2,738
|
|
|
|
1,156
|
|
|
|
3,894
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and money market deposits
|
|
|
1
|
|
|
|
33
|
|
|
|
34
|
|
|
|
21
|
|
|
|
50
|
|
|
|
71
|
|
NOW deposits
|
|
|
114
|
|
|
|
195
|
|
|
|
309
|
|
|
|
220
|
|
|
|
267
|
|
|
|
487
|
|
Certificates of deposit
|
|
|
16
|
|
|
|
45
|
|
|
|
61
|
|
|
|
5
|
|
|
|
68
|
|
|
|
73
|
|
Borrowings
|
|
|
20
|
|
|
|
27
|
|
|
|
47
|
|
|
|
162
|
|
|
|
79
|
|
|
|
241
|
|
Total interest-bearing liabilities
|
|
|
151
|
|
|
|
300
|
|
|
|
451
|
|
|
|
408
|
|
|
|
464
|
|
|
|
872
|
|
Net change in net interest income
|
|
$
|
1,129
|
|
|
$
|
406
|
|
|
$
|
1,535
|
|
|
$
|
2,330
|
|
|
$
|
692
|
|
|
$
|
3,022
|
|
1
Calculated net of deferred loan fees, loan discounts, and loans in
process.
2
Includes tax-free securities, mortgage-backed securities, and
asset-backed securities.
GENERAL
Return on average assets and return on average equity are common methods of measuring operating results. Annualized return on average assets
increased to 1.57% for the three months ended December 31, 2018 as compared to 1.39% for the three months ended December 31, 2017, and was 1.55% and 1.40% for the six months ended December 31, 2018 and 2017, respectively. Annualized return
on average equity increased to 18.03% for the three months and 17.98% for the six months ended December 31, 2018, as compared to 16.55% for the three months and 16.45% for the six months ended December 31, 2017. The increase in return on
average assets and return on average equity was primarily the result of growth in net income resulting from growth in interest-earning assets with continued growth in loans and securities. Net income amounted to $4.6 million and $3.6 million
for the three months ended December 31, 2018 and 2017, respectively, an increase of $1.0 million, or 27.8%, and amounted to $9.0 million and $7.1 million for the six months ended December 31, 2018 and 2017, respectively, an increase of $1.9
million, or 26.8%. Average assets increased $123.8 million, or 11.9%, to $1.2 billion for the three months ended December 31, 2018 as compared to $1.0 billion for the three months ended December 31, 2017. Average equity increased $13.7
million, or 15.6%, to $101.7 million for the three months ended December 31, 2018 as compared to $88.0 million for the three months ended December 31, 2017. Average assets increased $141.2 million, or 13.9%, to $1.2 billion for the six months
ended December 31, 2018 as compared to $1.0 billion for the six months ended December 31, 2017. Average equity increased $13.3 million, or 15.4%, to $99.7 million for the six months ended December 31, 2018 as compared to $86.4 million for
the six months ended December 31, 2017.
INTEREST INCOME
Interest income amounted to $11.4 million for the three months ended December 31, 2018 as compared to $9.4 million for the three months ended
December 31, 2017, an increase of $2.0 million, or 21.3%. Interest income amounted to $22.4 million for the six months ended December 31, 2018 as compared to $18.5 million for the six months ended December 31, 2017, an increase of $3.9
million, or 21.1%. The increase in average loan and securities balances had the greatest impact on interest income when comparing the three and six months ended December 31, 2018 and 2017, which were complemented by an increase in the yield
on interest-earning assets. Average loan balances increased $91.2 million and $88.5 million while the yield on loans increased 22 basis points and 19 basis points when comparing the three and six months ended December 31, 2018 and 2017,
respectively. Average securities increased $52.9 million and $61.6 million and the yield on such securities increased 30 basis points and 27 basis points when comparing the three and six months ended December 31, 2018 and 2017,
respectively.
INTEREST EXPENSE
Interest expense amounted to $1.4 million for the three months ended December 31, 2018 as compared to $960,000 for the three months ended December
31, 2017, an increase of $451,000, or 47.0%. Interest expense amounted to $2.8 million for the six months ended December 31, 2018 as compared to $1.9 million for the six months ended December 31, 2017, an increase of $872,000, or 46.4%.
Increases in average balances on interest-bearing liabilities as well as an increase in rates paid contributed to the increase in overall interest expense. As illustrated in the rate/volume table, interest expense increased $151,000 and
$408,000 when comparing the three and six months ended December 31, 2018 and 2017, respectively, due to a $102.5 million and $119.5 million increase in the average balances on interest-bearing liabilities when comparing these same periods.
The average rate paid on interest-bearing liabilities increased 14 basis points to 0.59% from 0.45% when comparing the three months ended December 31, 2018 and 2017, respectively, and increased 13 basis points to 0.58% from 0.45% when
comparing the six months ended December 31, 2018 and 2017.
Average deposits increased $98.1 million and $102.8 million for the three and six months ended December 31, 2018 and 2017, respectively, as a result
of continued growth across all three of our primary banking lines – retail, commercial and municipal. The average rate paid on NOW deposits increased 15 basis points when comparing the three months ended December 31, 2018 and 2017, and the
average balance of such accounts grew by $90.1 million when comparing these same periods. The average rate paid on NOW deposits increased 11 basis points when comparing the six months ended December 31, 2018 and 2017, and the average balance
of such accounts increased $88.5 million when comparing these same periods. The average balance of savings and money market deposits increased $1.4 million and $13.1 million when comparing the three and six months ended December 31, 2018 and
2017, respectively. The rates paid on savings and money market deposits increased four basis points and three basis points when comparing the three and six months ended December 31, 2018 and 2017, respectively. The average balance of
certificates of deposit increased $6.6 million and $1.3 million when comparing the three and six months ended December 31, 2018 and 2017, respectively. The average rate paid on certificate of deposits increased 41 basis points when comparing
the three months ended December 31, 2018 and 2017, and increased 32 basis points when comparing the six months ended December 31, 2018 and 2017. This increase in the average balance and the rate paid on certificates of deposit for the three
and six months is the result of an increase in short-term brokered certificates of deposit and the promotion of a five year certificate product.
The average balance on borrowings increased $4.4 million and the rate increased 43 basis points when comparing the three months ended December 31,
2018 and 2017. The average balance on borrowings increased $16.7 million and the rate increased 51 basis points when comparing the six months ended December 31, 2018 and 2017. With the recent increases in rates by the Federal Reserve Bank,
the cost of short-term borrowings has increased dramatically and currently exceeds the average rate paid on the Company’s longer term borrowings. The increase in the average balance on borrowings was due to an increase in overnight
borrowings with the Federal Home Loan Bank of New York.
NET INTEREST INCOME
Net interest income increased $1.5 million to $10.0 million for the three months ended December 31, 2018 from $8.5 million for the three months ended
December 31, 2017. Net interest income increased $3.1 million to $19.7 million for the six months ended December 31, 2018 from $16.6 million for the six months ended December 31, 2017. These increases in net interest income were primarily
the result of the growth in the average balance of interest-earning assets, with continued growth in loans and securities.
Net interest spread increased 16 basis points to 3.37% for the three months ended December 31, 2018 compared to 3.21% for the three months ended
December 31, 2017. Net interest margin increased 18 basis points to 3.47% for the three months ended December 31, 2018 compared to 3.29% for the three months ended December 31, 2017. Net interest spread and margin increased 10 and 12 basis
points to 3.34% and 3.44%, respectively, for the six months ended December 31, 2018 compared to 3.24% and 3.32%, respectively, for the six months ended December 31, 2017. Increases in net interest spread and margin are primarily the result
of the increasing rate environment over the past two years, with repricing of the Company’s adjustable rate investment and loan products, and the reinvestment of cash flows into higher rate investments and loans. These increases have been
partially offset by increases in cost of funds from both increases in deposit rates and in increased short-term borrowings.
Net interest income on a taxable-equivalent basis includes the additional amount of interest income that would have been earned if the Company’s
investment in tax-exempt securities and loans had been subject to federal and New York State income taxes yielding the same after-tax income. Tax equivalent net interest margin was 3.65% and 3.50% for the three months ended December 31, 2018
and 2017, respectively, and was 3.61% and 3.53% for the six months ended December 31, 2018 and 2017, respectively. As a result of the enactment of the Tax Cut and Jobs Act of 2017 (“TCJA”) in December 2017, which permanently reduces the
maximum corporate income tax rate from 35% to 21% effective for tax years beginning after December 31, 2017, the tax benefits derived from tax-exempt securities and loans is lower for the three and six months ended December 31, 2018 compared
to December 31, 2017. However, beginning January 1, 2018, pricing of tax-exempt securities and loan originations have been adjusted to reflect the change in the corporate tax rate, thereby producing a tax-equivalent yield on these securities
and loans that are comparable to yields obtained on similar taxable investments.
Due to the large portion of fixed-rate residential mortgages in the Company’s portfolio, interest rate risk is a concern and the Company will
continue to monitor and adjust the asset and liability mix as much as possible to take advantage of the benefits and reduce the risks or potential negative effects of a rising rate environment. Management attempts to mitigate the interest
rate risk through balance sheet composition. Several strategies are used to help manage interest rate risk such as maintaining a high level of liquid assets such as short-term federal funds sold and various investment securities and
maintaining a high concentration of less interest-rate sensitive and lower-costing core deposits.
PROVISION FOR LOAN LOSSES
Management continues to closely monitor asset quality and adjust the level of the allowance for loan losses when necessary. The amount recognized
for the provision for loan losses is determined by management based on its ongoing analysis of the adequacy of the allowance for loan losses. The provision for loan losses amounted to $354,000 and $352,000 for the three months ended December
31, 2018 and 2017, respectively. The provision for loan losses amounted to $708,000 and $699,000 for the six months ended December 31, 2018 and 2017, respectively. The provision for loan loss was relatively unchanged between these periods
despite continued loan growth as a result of the recognition of a $150,000 recovery during the three and six month ended December 31, 2018. For the three months ended December 31, 2018, the Company recognized net recoveries of $12,000, and
for the three months ended December 31, 2017, the Company recognized net charge-offs of $98,000. Net charge-offs amounted to $58,000 and $369,000 for the six months ended December 31, 2018 and 2017, respectively.
Allowance for loan losses to total loans receivable was 1.66% at December 31, 2018, and 1.68% at June 30, 2018. Nonperforming loans amounted to $3.6
million at December 31, 2018 and June 30, 2018. At December 31, 2018 and June 30, 2018, respectively, nonperforming assets were 0.31% and 0.32% of total assets and nonperforming loans were 0.48% and 0.51% of net loans. The Company has not
been an originator of “no documentation” mortgage loans, and the loan portfolio does not include any mortgage loans that the Company classifies as sub-prime.
NONINTEREST INCOME
(In thousands)
|
|
For the three months
ended December 31,
|
|
|
Change from Prior Year
|
|
|
For the six months
ended December 31,
|
|
|
Change from Prior Year
|
|
Noninterest income:
|
|
2018
|
|
|
2017
|
|
|
Amount
|
|
|
Percent
|
|
|
2018
|
|
|
2017
|
|
|
Amount
|
|
|
Percent
|
|
Service charges on deposit accounts
|
|
$
|
1,106
|
|
|
$
|
934
|
|
|
$
|
172
|
|
|
|
18.42
|
%
|
|
$
|
2,143
|
|
|
$
|
1,785
|
|
|
$
|
358
|
|
|
|
20.06
|
%
|
Debit card fees
|
|
|
685
|
|
|
|
591
|
|
|
|
94
|
|
|
|
15.91
|
|
|
|
1,325
|
|
|
|
1,157
|
|
|
|
168
|
|
|
|
14.52
|
|
Investment services
|
|
|
136
|
|
|
|
122
|
|
|
|
14
|
|
|
|
11.48
|
|
|
|
251
|
|
|
|
194
|
|
|
|
57
|
|
|
|
29.38
|
|
E-commerce fees
|
|
|
34
|
|
|
|
35
|
|
|
|
(1
|
)
|
|
|
(2.86
|
)
|
|
|
71
|
|
|
|
73
|
|
|
|
(2
|
)
|
|
|
(2.74
|
)
|
Other operating income
|
|
|
180
|
|
|
|
205
|
|
|
|
(25
|
)
|
|
|
(12.20
|
)
|
|
|
403
|
|
|
|
418
|
|
|
|
(15
|
)
|
|
|
(3.59
|
)
|
Total noninterest income
|
|
$
|
2,141
|
|
|
$
|
1,887
|
|
|
$
|
254
|
|
|
|
13.46
|
%
|
|
$
|
4,193
|
|
|
$
|
3,627
|
|
|
$
|
566
|
|
|
|
15.61
|
%
|
Noninterest income increased $254,000, or 13.5%, and totaled $2.1million and $1.9 million for the three months ended December 31, 2018 and 2017.
Noninterest income increased $566,000, or 15.6%, and totaled $4.2 million and $3.6 million for the six months ended December 31, 2018 and 2017. This increase was primarily due to increases in debit card fees and service charges on deposit
accounts resulting from continued growth in the number of checking accounts with debit cards, as well as increased monthly or transactional service charges on deposit accounts. Investment services income also increased during the period due
to higher sales volume of investment products.
NONINTEREST EXPENSE
(In thousands)
|
|
For the three months
ended December 31
|
|
|
Change from Prior Year
|
|
|
For the six months
ended December 31,
|
|
|
Change from Prior Year
|
|
Noninterest expense:
|
|
2018
|
|
|
2017
|
|
|
Amount
|
|
|
Percent
|
|
|
2018
|
|
|
2017
|
|
|
Amount
|
|
|
Percent
|
|
Salaries and employee benefits
|
|
$
|
3,677
|
|
|
$
|
3,075
|
|
|
$
|
602
|
|
|
|
19.58
|
%
|
|
$
|
7,155
|
|
|
$
|
5,957
|
|
|
$
|
1,198
|
|
|
|
20.11
|
%
|
Occupancy expense
|
|
|
414
|
|
|
|
355
|
|
|
|
59
|
|
|
|
16.62
|
|
|
|
816
|
|
|
|
711
|
|
|
|
105
|
|
|
|
14.77
|
|
Equipment and furniture expense
|
|
|
127
|
|
|
|
158
|
|
|
|
(31
|
)
|
|
|
(19.62
|
)
|
|
|
341
|
|
|
|
271
|
|
|
|
70
|
|
|
|
25.83
|
|
Service and data processing fees
|
|
|
542
|
|
|
|
540
|
|
|
|
2
|
|
|
|
0.37
|
|
|
|
1,037
|
|
|
|
1,027
|
|
|
|
10
|
|
|
|
0.97
|
|
Computer software, supplies and support
|
|
|
200
|
|
|
|
162
|
|
|
|
38
|
|
|
|
23.46
|
|
|
|
423
|
|
|
|
305
|
|
|
|
118
|
|
|
|
38.69
|
|
Advertising and promotion
|
|
|
76
|
|
|
|
112
|
|
|
|
(36
|
)
|
|
|
(32.14
|
)
|
|
|
196
|
|
|
|
167
|
|
|
|
29
|
|
|
|
17.37
|
|
FDIC insurance premiums
|
|
|
100
|
|
|
|
93
|
|
|
|
7
|
|
|
|
7.53
|
|
|
|
227
|
|
|
|
186
|
|
|
|
41
|
|
|
|
22.04
|
|
Legal and professional fees
|
|
|
283
|
|
|
|
229
|
|
|
|
54
|
|
|
|
23.58
|
|
|
|
612
|
|
|
|
460
|
|
|
|
152
|
|
|
|
33.04
|
|
Other
|
|
|
828
|
|
|
|
588
|
|
|
|
240
|
|
|
|
40.82
|
|
|
|
1,401
|
|
|
|
1,121
|
|
|
|
280
|
|
|
|
24.98
|
|
Total noninterest expense
|
|
$
|
6,247
|
|
|
$
|
5,312
|
|
|
$
|
935
|
|
|
|
17.60
|
%
|
|
$
|
12,208
|
|
|
$
|
10,205
|
|
|
$
|
2,003
|
|
|
|
19.63
|
%
|
Noninterest expense increased $935,000, or 17.6%, to $6.2 million for the three months ended December 31, 2018, compared to $5.3 million for the
three months ended December 31, 2017. Noninterest expense increased $2.0 million, or 19.6%, to $12.2 million for the six months ended December 31, 2018, compared to $10.2 million for the six months ended December 31, 2017. This increase was
primarily due to an increase in salaries and employee benefits expenses, resulting from additional staffing for the addition of two new branches located in Copake and Woodstock, New York. Staffing was also increased within our lending
department, customer service center and investment center.
The increase is also due to costs associated with the opening of the newest branch in Woodstock, New York
during the six months ended December 31, 2018, and an increase in professional fees. Also, other noninterest expense increased as a result of a $200,000 contribution to Bank of Greene County Charitable Foundation during the six months ended
December 31, 2018.
INCOME TAXES
The provision for income taxes directly reflects the expected tax associated with the pre-tax income generated for the given year and certain
regulatory requirements. The effective tax rate was 17.2% and 18.0% for the three months and six months ended December 31, 2018, respectively, compared to 22.3% and 24.0% for the three and six months ended December 31, 2017, respectively.
The decrease in the effective tax rate for the three and six months ended December 31, 2018 is primarily the result of the impact of the enactment of the Tax Cut and Jobs Act of 2017 (“TCJA”) in December 2017. The Company recognized a net tax
benefit of $251,000 during the three and six months ended December 31, 2017 as a result of the enactment of the TCJA.
The TCJA permanently reduces the maximum corporate income tax rate from 35% to 21% effective for tax years beginning after December 31, 2017.
Additionally, fiscal year-end taxpayers such as Greene County Bancorp, Inc. were required to utilize a “blended rate” in calculating the effective tax rate for the fiscal year 2018 based on a ratio utilizing the number of days at the 35% tax
rate and the number of days at the 21% tax rate. Greene County Bancorp, Inc.’s statutory blended rate for fiscal 2018 is approximately 28%. Effective July 1, 2018, Greene County Bancorp, Inc.’s statutory rate decreased to 21%. The statutory
tax rate is impacted by the benefits derived from tax exempt bond and loan income, the Company’s real estate investment trust subsidiary income, as well as the tax benefits derived from premiums paid to the Company’s pooled captive insurance
subsidiary to arrive at the effective tax rate.
LIQUIDITY AND CAPITAL RESOURCES
Market risk is the risk of loss in a financial instrument arising from adverse changes in market rates or prices such as interest rates, foreign
currency exchange rates, commodity prices, and equity prices. Greene County Bancorp, Inc.’s most significant form of market risk is interest rate risk since the majority of Greene County Bancorp, Inc.’s assets and liabilities are sensitive
to changes in interest rates. Greene County Bancorp, Inc.’s primary sources of funds are deposits and proceeds from principal and interest payments on loans, mortgage-backed securities and debt securities, with lines of credit available
through the Federal Home Loan Bank and Atlantic Central Bankers Bank as needed. While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit outflows, mortgage prepayments, and lending
activities are greatly influenced by general interest rates, economic conditions and competition.
Bank of Greene County’s unfunded loan commitments and unused lines of credit are as follows at December 31, 2018:
(In thousands)
|
|
2018
|
|
Unfunded loan commitments
|
|
$
|
50,839
|
|
Unused lines of credit
|
|
|
65,508
|
|
Total commitments
|
|
$
|
116,347
|
|
Greene County Bancorp, Inc. anticipates that it will have sufficient funds available to meet current loan commitments based on the level of cash and
cash equivalents as well as the available-for-sale investment portfolio and borrowing capacity.
Bank of Greene County and Greene County Commercial Bank met all applicable regulatory capital requirements at December 31, 2018 and June 30, 2018.
Consolidated shareholders’ equity represented 8.7% and 8.4% of total assets at December 31, 2018 and at June 30, 2018, respectively.
(Dollars in thousands)
|
|
Actual
|
|
|
For Capital
Adequacy Purposes
|
|
|
To Be Well
Capitalized Under
Prompt Corrective
ActionProvisions
|
|
|
Capital Conservation
Buffer
|
|
Bank of Greene County
|
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
|
Actual
|
|
|
Required
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital
|
|
$
|
111,551
|
|
|
|
16.0
|
%
|
|
$
|
55,913
|
|
|
|
8.0
|
%
|
|
$
|
69,891
|
|
|
|
10.0
|
%
|
|
|
7.961
|
%
|
|
|
1.875
|
%
|
Tier 1 risk-based capital
|
|
|
102,766
|
|
|
|
14.7
|
|
|
|
41,935
|
|
|
|
6.0
|
|
|
|
55,913
|
|
|
|
8.0
|
|
|
|
8.704
|
|
|
|
1.875
|
|
Common equity tier 1 capital
|
|
|
102,766
|
|
|
|
14.7
|
|
|
|
31,451
|
|
|
|
4.5
|
|
|
|
45,429
|
|
|
|
6.5
|
|
|
|
10.204
|
|
|
|
1.875
|
|
Tier 1 leverage ratio
|
|
|
102,766
|
|
|
|
8.8
|
|
|
|
46,621
|
|
|
|
4.0
|
|
|
|
58,276
|
|
|
|
5.0
|
|
|
|
4.817
|
|
|
|
1.875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital
|
|
$
|
102,549
|
|
|
|
15.5
|
%
|
|
$
|
53,024
|
|
|
|
8.0
|
%
|
|
$
|
66,280
|
|
|
|
10.0
|
%
|
|
|
7.472
|
%
|
|
|
1.875
|
%
|
Tier 1 risk-based capital
|
|
|
94,148
|
|
|
|
14.2
|
|
|
|
39,768
|
|
|
|
6.0
|
|
|
|
53,024
|
|
|
|
8.0
|
|
|
|
8.205
|
|
|
|
1.875
|
|
Common equity tier 1 capital
|
|
|
94,148
|
|
|
|
14.2
|
|
|
|
29,826
|
|
|
|
4.5
|
|
|
|
43,082
|
|
|
|
6.5
|
|
|
|
9.705
|
|
|
|
1.875
|
|
Tier 1 leverage ratio
|
|
|
94,148
|
|
|
|
8.2
|
|
|
|
45,789
|
|
|
|
4.0
|
|
|
|
57,236
|
|
|
|
5.0
|
|
|
|
4.225
|
|
|
|
1.875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greene County Commercial Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital
|
|
$
|
43,608
|
|
|
|
50.3
|
%
|
|
$
|
6,931
|
|
|
|
8.0
|
%
|
|
$
|
8,664
|
|
|
|
10.0
|
%
|
|
|
42.334
|
%
|
|
|
1.875
|
%
|
Tier 1 risk-based capital
|
|
|
43,608
|
|
|
|
50.3
|
|
|
|
5,198
|
|
|
|
6.0
|
|
|
|
6,931
|
|
|
|
8.0
|
|
|
|
44.334
|
|
|
|
1.875
|
|
Common equity tier 1 capital
|
|
|
43,608
|
|
|
|
50.3
|
|
|
|
3,899
|
|
|
|
4.5
|
|
|
|
5,631
|
|
|
|
6.5
|
|
|
|
45.834
|
|
|
|
1.875
|
|
Tier 1 leverage ratio
|
|
|
43,608
|
|
|
|
9.78
|
|
|
|
17,827
|
|
|
|
4.0
|
|
|
|
22,284
|
|
|
|
5.0
|
|
|
|
5.784
|
|
|
|
1.875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital
|
|
$
|
40,286
|
|
|
|
47.1
|
%
|
|
$
|
6,837
|
|
|
|
8.0
|
%
|
|
$
|
8,546
|
|
|
|
10.0
|
%
|
|
|
39.139
|
%
|
|
|
1.875
|
%
|
Tier 1 risk-based capital
|
|
|
40,286
|
|
|
|
47.1
|
|
|
|
5,128
|
|
|
|
6.0
|
|
|
|
6,837
|
|
|
|
8.0
|
|
|
|
41.139
|
|
|
|
1.875
|
|
Common equity tier 1 capital
|
|
|
40,286
|
|
|
|
47.1
|
|
|
|
3,846
|
|
|
|
4.5
|
|
|
|
5,555
|
|
|
|
6.5
|
|
|
|
42.639
|
|
|
|
1.875
|
|
Tier 1 leverage ratio
|
|
|
40,286
|
|
|
|
9.1
|
|
|
|
17,747
|
|
|
|
4.0
|
|
|
|
22,184
|
|
|
|
5.0
|
|
|
|
5.080
|
|
|
|
1.875
|
|