Greene County Bancorp net income jumps 40.9% year over year to a record $12.5 million

Greene County Bancorp reported record quarterly net income of $12.5 million for the three months ended September 30, 2026, or $0.73 per basic and diluted share, a 40.9% increase from $8.9 million a year earlier, as a wider margin and a credit-loss benefit more than offset a 27.0% decline in noninterest income.

Margin repricing carries the quarter

The Catskill, New York, holding company for Bank of Greene earned $21.9 million of net interest income in its fiscal first quarter, up $4.4 million from a year earlier. Average interest-earning assets grew $159.3 million, the yield on those assets rose 16 basis points and the rate paid on interest-bearing liabilities fell 30 basis points, a combination the release credits for the increase even as average interest-bearing liabilities grew $101.8 million. The company reported a net interest margin of 2.93%, up 45 basis points from 2.48% a year earlier, and a net interest rate spread of 2.71%, up 46 basis points from 2.25%. Deposit pricing did much of the work: the cost of NOW accounts fell 39 basis points, certificates of deposit 25 basis points and savings and money market accounts 4 basis points. Loan yields added 12 basis points on $113.6 million of average growth, while the securities book contributed 24 basis points more on $58.4 million of average growth.

A credit reversal supplied the second lever

The provision for credit losses became a $432,000 benefit, against a $1.3 million charge a year earlier. Management attributed the reversal to the release of reserves on an individually evaluated loan repaid in full during the quarter and to improved economic forecasts in the CECL model. Balance-sheet signals moved the same way: nonperforming loans fell to $3.2 million from $3.9 million at June 30, 2026, loans classified substandard or special mention dropped $9.2 million to $30.8 million, and nonperforming assets were 0.10% of total assets against 0.12%. Net charge-offs were $48,000. The allowance for credit losses on loans equaled 1.21% of loans, down from 1.25% at June 30, 2026. Noninterest income fell 27.0% from a year earlier to $2.9 million, reflecting a $1.2 million loss on sales of available-for-sale securities and $289,000 less income from customer interest rate swaps, partly offset by $140,000 more investment services income. Noninterest expense rose 7.4% from a year earlier to $10.8 million on $582,000 more in salaries and benefits and $367,000 of additional unfunded-commitment expense.

Deposits replace borrowings while the name changes

Deposits grew $134.4 million, or 5.0%, to $2.8 billion, led by a $111.3 million increase in NOW accounts and $19.1 million in certificates of deposit, while brokered deposits fell to $41.6 million from $52.4 million. Borrowings dropped $88.9 million to $66.2 million after the company redeemed $10.0 million of its 3.00% subordinated notes due 2031 on September 15, 2026, leaving $20.0 million outstanding. Net loans rose $23.1 million, or 1.3% on a sequential basis, to $1.8 billion, and securities rose 4.1% sequentially to $1.23 billion. Shareholders' equity reached $286.0 million from $277.8 million; there were no repurchases in the quarter and 398,657 shares remain in the stock repurchase program. Bank of Greene became the subsidiary's legal name on September 14, 2026, and shareholders vote November 7 on a charter change to Greene Bancorp, Inc. "This quarter marked an important milestone as we introduced the Bank of Greene name and delivered record quarterly earnings," said Donald Gibson, President & CEO. Pre-provision net income, which strips out the credit-loss line, rose 19.2% from a year earlier to $12.1 million, a slower gain than reported net income and a reminder that part of the quarter's improvement came from a reserve reversal rather than recurring earnings. The company described the figures as preliminary and based on data available at the time of presentation.