Greene County Bancorp Extends Record Quarterly Earnings Streak

The Tip Desk · October 25, 2026 · 4 min read

Net interest income reached $21.9 million as the net interest margin widened 45 basis points to 2.93% in the three months ended September 30, 2026.

Greene County Bancorp, Inc. (GCBC), the holding company for Bank of Greene and its subsidiary Greene County Commercial Bank, reported record net income of $12.5 million, or $0.73 a share, for the three months ended September 30, 2026, up 40.9% from $8.9 million, or $0.52, a year earlier. Return on average assets was 1.61% and return on average equity was 17.73%. The result extended a run of record quarterly earnings that included $11.3 million in the fiscal year ended June 30, 2026.

The operating lift came from net interest income, which rose $4.4 million to $21.9 million from $17.5 million a year earlier. The company said the increase was primarily due to a $159.3 million rise in average interest-earning assets, a 16-basis-point higher average yield on those assets, and a 30-basis-point lower average rate on interest-bearing liabilities. Average loan balances increased $113.6 million and the loan yield rose 12 basis points; average securities balances increased $58.4 million and the securities yield rose 24 basis points. Growth in average interest-bearing liabilities of $101.8 million offset part of the gain.

Net interest margin expanded 45 basis points to 2.93% from 2.48% a year earlier; the fully taxable-equivalent margin was 3.24%. Net interest rate spread widened 46 basis points to 2.71%. The company attributed the margin improvement to higher loan and securities yields combined with lower deposit costs, including NOW accounts and certificates of deposit. The cost of NOW deposits decreased 39 basis points, certificates of deposit 25 basis points, and savings and money-market deposits 4 basis points. Yields on interest-bearing bank balances and federal funds fell 125 basis points, which the company said was more than offset.

Pre-provision net income rose $1.9 million, or 19.2%, to $12.1 million. The provision for credit losses swung to a $432,000 benefit from a $1.3 million charge a year earlier. The company said the benefit was primarily attributable to the release of the allowance on an individually evaluated loan that was repaid in full during the quarter, as well as improvements in the economic forecasts used in the CECL model. The allowance for credit losses on loans to total loans receivable was 1.21% at September 30, 2026, compared with 1.25% at June 30, 2026.

Credit quality improved on a sequential basis. Commercial and commercial real estate loans classified as substandard and special mention totaled $30.8 million at September 30, 2026, down $9.2 million from $40.0 million at June 30, 2026, which the company said was primarily due to upgrades of performing loans and payoffs. Nonperforming loans were $3.2 million, down from $3.9 million three months earlier. Net charge-offs were $48,000. Nonperforming assets were 0.10% of total assets and nonperforming loans 0.18% of net loans.

Noninterest income decreased $1.1 million, or 27.0%, to $2.9 million, primarily a $1.2 million loss on sales of securities available-for-sale and $289,000 less income on customer interest-rate swaps, partly offset by $140,000 more investment-services income. Noninterest expense increased $740,000, or 7.4%, to $10.8 million, led by $582,000 higher salaries and employee benefits and $367,000 more unfunded-commitment allowance expense. The efficiency ratio improved to 43.56% from 46.78%.

Net loans receivable increased $23.1 million, or 1.3%, to $1.8 billion from $1.7 billion at June 30, 2026, led by $18.3 million of commercial real estate loans, $3.7 million of commercial loans, and $2.5 million of home-equity loans. Deposits rose $134.4 million, or 5.0%, to $2.8 billion; NOW deposits increased $111.3 million, certificates of deposit $19.1 million, and noninterest-bearing deposits $13.9 million. Borrowings fell $88.9 million to $66.2 million after a $10.0 million redemption of 3.00% subordinated notes on September 15, 2026, leaving $20.0 million outstanding. Shareholders’ equity was $286.0 million.

Effective September 14, 2026, the primary banking subsidiary changed its legal name from the Bank of Greene County to Bank of Greene. At the November 7, 2026 annual meeting, shareholders will consider a related proposal to rename the holding company Greene Bancorp, Inc.; the Nasdaq symbol GCBC is not expected to change. Dividends declared were $0.11 a share. No share repurchases occurred in the quarter; 398,657 shares remain in the authorization.