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What changed in GREENE COUNTY BANCORP INC's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of GREENE COUNTY BANCORP INC's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+212 added−217 removedSource: 10-K (2025-09-05) vs 10-K (2024-09-06)

Top changes in GREENE COUNTY BANCORP INC's 2025 10-K

212 paragraphs added · 217 removed · 186 edited across 7 sections

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeBoard of Directors Oversight The Board is responsible for the oversight of cybersecurity risk management and is composed of members with expertise in risk management, technology, and finance, thereby equipping them to manage and prevent cybersecurity risks effectively.
Biggest changeBoard of Directors Oversight The Board is responsible for the oversight of cybersecurity risk management and is composed of members with expertise in risk management, technology, and finance, thereby equipping them to manage and prevent cybersecurity risks effectively. 22 Index Management’s Role in Managing Risk The Chief Information Security Officer (“CISO”), and the Chief Information Officer (“CIO”), each play a pivotal role in informing the Board of Directors on cybersecurity risks.
Cybersecurity threats that are identified and deemed material are escalated and communicated directly to the Incident Response Team, in collaboration with relevant information technology personnel, insurance providers, legal counsels and when necessary, external cybersecurity firms specializing in forensic investigations. 21 Index The Company sets forth enterprise-wide coordinated responses to identified threats, ensuring timely mitigation and remediation, and facilitating awareness and communication.
Cybersecurity threats that are identified and deemed material are escalated and communicated directly to the Incident Response Team, in collaboration with relevant information technology personnel, insurance providers, legal counsels and when necessary, external cybersecurity firms specializing in forensic investigations. The Company sets forth enterprise-wide coordinated responses to identified threats, ensuring timely mitigation and remediation, and facilitating awareness and communication.
Furthermore, all significant cybersecurity matters and strategic risk management decisions are promptly escalated to the Board of Directors, ensuring that they have an up-to-date, comprehensive understanding of and can provide guidance on critical cybersecurity issues. 22 Index Primary responsibility for assessing and providing strategic direction to our cybersecurity program resides with our CISO.
Furthermore, all significant cybersecurity matters and strategic risk management decisions are promptly escalated to the Board of Directors, ensuring that they have an up-to-date, comprehensive understanding of and can provide guidance on critical cybersecurity issues. Primary responsibility for assessing and providing strategic direction to our cybersecurity program resides with our CISO.
Material Cybersecurity Threat Risks The Company has not experienced any material losses relating to cybersecurity threats or incidents for the year ended June 30, 2024.
Material Cybersecurity Threat Risks The Company has not experienced any material losses relating to cybersecurity threats or incidents for the year ended June 30, 2025.
These briefings encompass a broad range of topics, including: • Current cybersecurity landscape and emerging threats; • Status of ongoing cybersecurity initiatives and strategies; • Incident reports and issues identified from any cybersecurity events; and • Compliance with regulatory requirements and industry standards.
They provide comprehensive briefings to both the Board and the Audit Committee as part of managements reporting. These briefings encompass a broad range of topics, including: ● Current cybersecurity landscape and emerging threats; ● Status of ongoing cybersecurity initiatives and strategies; ● Incident reports and issues identified from any cybersecurity events; and ● Compliance with regulatory requirements and industry standards.
Removed
Management’s Role in Managing Risk The Chief Information Security Officer (“CISO”), and the Chief Information Officer (“CIO”), each play a pivotal role in informing the Board of Directors on cybersecurity risks. They provide comprehensive briefings to both the Board and the Audit Committee as part of managements reporting.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeIn the opinion of management, the physical properties of our holding company and our various subsidiaries are suitable and adequate. For more information on our properties, see Notes 1, 5 and 15 set forth in Part II, Item 8 Financial Statements and Supplementary Data, of this Annual Report.
Biggest changeIn the opinion of management, the physical properties of our holding company and our various subsidiaries are suitable and adequate. For more information on our properties, see Notes 1, 5 and 16 set forth in Part II, Item 8 Financial Statements and Supplementary Data, of this Annual Report.
At June 30, 2024, The Bank of Greene County conducted its business through 18 full-service banking offices. The Company owns nine branch offices and lease nine branch offices located within Greene, Columbia, Albany, Ulster and Rensselaer Counties of New York State. Greene County Commercial Bank conducts its business through the branch offices of The Bank of Greene County.
At June 30, 2025, the Bank of Greene County conducted its business through 18 full-service banking offices. The Company owns nine branch offices and lease nine branch offices located within Greene, Columbia, Albany, Ulster and Rensselaer Counties of New York State. Greene County Commercial Bank conducts its business through the branch offices of the Bank of Greene County.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeOn an ongoing basis, the Company is often the subject of, or a party to, various legal claims by other parties against the Company, by the Company against other parties, or involving the Company, which arise in the normal course of business. ITEM 4. Mine Safety Disclosures Not applicable. PART II
Biggest changeOn an ongoing basis, the Company is often the subject of, or a party to, various legal claims by other parties against the Company, by the Company against other parties, or involving the Company, which arise in the normal course of business. 23 Index ITEM 4. Mine Safety Disclosures Not applicable. PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeAs of September 5, 2024 the Company had 422 stockholders of record (excluding the number of persons or entities holding stock in street name through various brokerage firms) and 17,026,828 shares outstanding. As of such date, Greene County Bancorp, MHC (the “MHC”), the Company’s mutual holding company, held 9,218,528 shares of common stock, or 54.1% of total shares outstanding.
Biggest changeAs of September 4, 2025 the Company had 406 stockholders of record (excluding the number of persons or entities holding stock in street name through various brokerage firms) and 17,026,828 shares outstanding. As of such date, Greene County Bancorp, MHC (the “MHC”), the Company’s mutual holding company, held 9,218,528 shares of common stock, or 54.1% of total shares outstanding.
Repurchases will be made at management’s discretion at prices management considers to be attractive and in the best interests of both the Company and its stockholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company’s financial performance. At June 30, 2024, the Company had repurchased 48,800 shares.
Repurchases will be made at management’s discretion at prices management considers to be attractive and in the best interests of both the Company and its stockholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company’s financial performance. At June 30, 2025, the Company had repurchased 48,800 shares.
Therefore, its ability to waive its right to receive dividends beyond this date cannot be reasonably determined at this time. 23 Index On September 17, 2019, the Board of Directors of the Company adopted a stock repurchase program. Under the repurchase program, the Company is authorized to repurchase up to 400,000 shares of its common stock.
Therefore, its ability to waive its right to receive dividends beyond this date cannot be reasonably determined at this time. On September 17, 2019, the Board of Directors of the Company adopted a stock repurchase program. Under the repurchase program, the Company is authorized to repurchase up to 400,000 shares of its common stock.
There were no repurchases during the fiscal year ended June 30, 2024. ITEM 6. [Reserved]
There were no repurchases during the fiscal year ended June 30, 2025. ITEM 6. [Reserved]
The MHC received the approval of its members (depositors of The Bank of Greene County) and the non-objection of the Federal Reserve Bank of Philadelphia, to waive the MHC’s receipt of quarterly cash dividends aggregating up to $0.46 per share to be declared by the Company for the four quarters ending June 30, 2024.
The MHC received the approval of its members (depositors of the Bank of Greene County) and the non-objection of the Federal Reserve Bank of Philadelphia, to waive the MHC’s receipt of quarterly cash dividends aggregating up to $0.48 per share to be declared by the Company for the four quarters ending September 30, 2025.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeItem 6. [Reserved] 24 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 24-47 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 47-49 Item 8. Financial Statements and Supplementary Data 50 Report of Independent Registered PublicAccounting Firm (Bonadio LLP, Pittsford, New York, PCID: 1884 ) 51-53
Biggest changeItem 6. [Reserved] 24 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 24-46 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 46-48 Item 8. Financial Statements and Supplementary Data 49 Report of Independent Registered Public Accounting Firm (Bonadio LLP, Pittsford, New York, PCAOB ID:1884) 50-52

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

155 edited+24 added−29 removed83 unchanged
Biggest changeAt June 30, (Dollars in thousands) 2023 2022 2021 2020 Non-accrual loans: Residential real estate $ 2,747 $ 2,948 $ 1,324 $ 2,513 Residential construction and land - 1 - - Multi-family - - - 151 Commercial real estate 1,318 1,269 444 781 Home equity 54 188 237 319 Consumer installment 63 7 - - Commercial 1,276 1,904 296 313 Total non-accrual loans 5,458 6,317 2,301 4,077 Foreclosed real estate: Residential real estate - 68 64 - Commercial loans 302 - - - Total foreclosed real estate 302 68 64 - Total non-performing assets $ 5,760 $ 6,385 $ 2,365 $ 4,077 Troubled debt restructuring: Non-performing (included above) $ 2,691 $ 2,707 $ 354 $ 304 Performing (accruing and excluded above) 2,805 2,336 5,050 909 Non-accrual loans to total loans 0.39 % 0.50 % 0.21 % 0.40 % Non-performing loans to total loans 0.39 % 0.50 % 0.21 % 0.40 % Non-performing assets to total assets 0.21 % 0.25 % 0.11 % 0.24 % Allowance for loan losses to non-performing loans 388.64 % 360.31 % 854.76 % 402.04 % Allowance for loan losses to non-accrual loans 388.64 % 360.31 % 854.76 % 402.04 % 33 Index Effective July 1, 2023, the Company began analyzing loans on an individual basis when management determined that the individual loan no longer exhibited risk characteristics consistent with the risk characteristics existing in its designated pool of loans, under the Company’s CECL methodology.
Biggest changeAnalysis of Non-accrual Loans and Non-performing Assets The table below details additional information related to non-accrual loans at the dates indicated: At June 30, (Dollars in thousands) 2025 2024 2023 2022 2021 Non-accrual loans: Residential real estate $ 2,265 $ 2,518 $ 2,747 $ 2,949 $ 1,324 Commercial real estate 628 1,163 1,318 1,269 444 Home equity 30 47 54 188 237 Consumer 2 - 63 7 - Commercial 135 - 1,276 1,904 296 Total non-accrual loans 3,060 3,728 5,458 6,317 2,301 Foreclosed real estate: Residential real estate - - - 68 64 Commercial - - 302 - - Total foreclosed real estate - - 302 68 64 Total non-performing assets $ 3,060 $ 3,728 $ 5,760 $ 6,385 $ 2,365 Non-accrual loans to total loans 0.19 % 0.25 % 0.39 % 0.50 % 0.21% Non-performing loans to total loans 0.19 % 0.25 % 0.21 % 0.25 % 0.11% Non-performing assets to total assets 0.10 % 0.13 % 0.39 % 0.50 % 0.21% Allowance for credit losses on loans to non-performing loans 658.37 % 516.20 % 388.64 % 360.31 % 854.76% Allowance for credit losses on loans to non-accrual loans 658.37 % 516.20 % 388.64 % 360.31 % 854.76% At June 30, 2025 and June 30, 2024, there were no loans delinquent greater than 90 days and accruing.
While management uses available information to recognize losses on loans, additions or reductions to the allowance may fluctuate from one reporting period to another. These fluctuations are reflective of changes in the reasonable and supportable forecast, analysis of loans evaluated individually, and/or changes in management’s assessment of factors.
While management uses available information to recognize losses on loans, additions or reductions to the allowance may fluctuate from one reporting period to another. These fluctuations are reflective of changes in the reasonable and supportable forecast, analysis of loans individually evaluated, and/or changes in management’s assessment of factors.
The ACL is based on the results of life of loan quantitative models, reserves associated with collateral-dependent loans evaluated individually and adjustments for the impact of current economic conditions not accounted for in the quantitative models.
The ACL on loans is based on the results of life of loan quantitative models, reserves associated with collateral-dependent loans individually evaluated and adjustments for the impact of current economic conditions not accounted for in the quantitative models.
The allowance is recognized as a liability, a component of other liabilities, with adjustments as an expense in other noninterest expense. The Company estimates expected credit losses over the contractual period in which the Company has exposure to a contractual obligation to extend credit, unless that obligation in unconditionally cancellable by the Company.
The allowance is recognized as a liability, a component of other liabilities, with adjustments as an expense in other noninterest expense. The Company estimates expected credit losses over the contractual period in which the Company has exposure to a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company.
The Company charges loans off against the ACL when it becomes evident that a loan cannot be collected within a reasonable amount of time or that it will cost the Company 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.
The Company charges loans off against the ACL on loans when it becomes evident that a loan cannot be collected within a reasonable amount of time or that it will cost the Company 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.
Construction loans are typically 12 to 24 months in duration with active monitoring, which may include pre-engineering review and third party site inspections for more complex projects. High volatility commercial real estate loan exposure totaled $1.1 million or 1.0% of the Company’s construction exposure.
Construction loans are typically 12 to 24 months in duration with active monitoring, which may include pre-engineering review and third-party site inspections for more complex projects. High volatility commercial real estate loan exposure totaled $5.5 million or 1.0% of the Company’s construction exposure.
Generally, consumer loans and smaller business loans (not secured by real estate) in excess of 90 days are charged-off against the ACL, unless equitable arrangements are made. Included within consumer installment loan charge-offs and recoveries are deposit accounts that have been overdrawn in excess of 60 days.
Generally, consumer loans and smaller business loans (not secured by real estate) in excess of 90 days are charged-off against the ACL on loans, unless equitable arrangements are made. Included within consumer installment loan charge-offs and recoveries are deposit accounts that have been overdrawn in excess of 60 days.
DERIVATIVES The Company enters into interest rate swap agreements with its commercial customers to provide them with a long-term fixed rate, while simultaneously entering into offsetting interest rate swap agreements with a counterparty to swap the fixed rate to a variable rate to manage interest rate exposure. These interest rate swap agreements are not designated as hedges for accounting purposes.
The Company enters into interest rate swap agreements with its commercial customers to provide them with a long-term fixed rate, while simultaneously entering into offsetting interest rate swap agreements with a counterparty to swap the fixed rate to a variable rate to manage interest rate exposure. These interest rate swap agreements are not designated as hedges for accounting purposes.
Loans on non-accrual status totaled $3.7 million at June 30, 2024 of which there were four residential real estate loans totaling $686,000 and three commercial real estate loans totaling $1.6 million in the process of foreclosure.
Loans on non-accrual status totaled $3.7 million at June 30, 2024, of which there were four residential real estate loans totaling $686,000 and three commercial real estate loan totaling $1.6 million in the process of foreclosure.
The allowance for credit losses for loans, as reported in our consolidated statements of financial condition, are adjusted by a provision (expense) for credit losses, which is recognized in earnings, and reduced by the charge-off of loans, net of recoveries.
The allowance for credit losses for loans, as reported in our consolidated statements of financial condition, is adjusted by a provision (expense) for credit losses, which is recognized in earnings, and reduced by the charge-off of loans, net of recoveries.
Operational losses result from internal fraud; external fraud including cybersecurity risks; employment practices and workplace safety, clients, products, and business practices; damage to physical assets; business disruption and system failures; and execution, delivery, and process management. 26 Index Critical Accounting Policies The accounting and reporting policies followed by the Company conform, in all material respects, to accounting principles generally accepted in the United States of America (“GAAP”) and to general practices within the financial services industry.
Operational losses result from internal fraud; external fraud including cybersecurity risks; employment practices and workplace safety, clients, products, and business practices; damage to physical assets; business disruption and system failures; and execution, delivery, and process management. 27 Index Critical Accounting Policies The accounting and reporting policies followed by the Company conform, in all material respects, to accounting principles generally accepted in the United States of America (“GAAP”) and to general practices within the financial services industry.
Factors that could affect actual results include but are not limited to: (a) changes in general market general interest rates, (b) changes in general economic conditions, (c) credit risk, (d) continued period of high inflation could adversely impact customers, (e) cybersecurity risks, (f) bank failures, (g) changes in general business and economic trends, (h) legislative and regulatory changes, (i) monetary and fiscal policies of the U.S.
Factors that could affect actual results include but are not limited to: (a) changes in general market interest rates, (b) changes in general economic conditions, (c) credit risk, (d) continued period of high inflation could adversely impact customers, 24 Index (e) cybersecurity risks, (f) bank failures, (g) changes in general business and economic trends, (h) legislative and regulatory changes, (i) monetary and fiscal policies of the U.S.
The allowance for credit losses consists of the allowance for credit losses for loans and unfunded commitments. The measurement of Current Expensed Credit Losses (“CECL”) on financial instruments requires an estimate of the credit losses expected over the life of an exposure (or pool of exposures).
The allowance for credit losses consists of the allowance for credit losses for loans and unfunded commitments. The measurement of Current Expected Credit Losses (“CECL”) on financial instruments requires an estimate of the credit losses expected over the life of an exposure (or pool of exposures).
Interest rates do not necessarily move in the same direction or to the same extent as the price of goods and services. IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS Recent accounting pronouncements which may impact the Company’s financial statements are discussed within Part II, Item 8 Financial Statements and Supplementary Data, Note 1 Summary of significant accounting policies of this Annual Report.
Interest rates do not necessarily move in the same direction or to the same extent as the price of goods and services. 45 Index IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS Recent accounting pronouncements which may impact the Company’s financial statements are discussed within Part II, Item 8 Financial Statements and Supplementary Data, Note 1 Summary of significant accounting policies of this Annual Report.
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. As of June 30, 2024, the Company believes it has maintained a strong liquidity position.
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. As of June 30, 2025, the Company believes it has maintained a strong liquidity position.
The Company has a separate municipal department for the retention, management, and monitoring of municipal relationships. Uninsured deposits represents the portion of deposit accounts that exceed the FDIC insurance limit. The Company calculates its uninsured deposit balances based on the methodologies and assumptions used for regulatory reporting requirements, which includes affiliate deposits and collateralized deposits.
The Company has a separate municipal department for the retention, management, and monitoring of municipal relationships. Uninsured deposits represent the portion of deposit accounts that exceed the FDIC insurance limit. The Company calculates its uninsured deposit balances based on the methodologies and assumptions used for regulatory reporting requirements, which includes affiliate deposits and collateralized deposits.
At June 30, 2024, The Bank of Greene County operated 18 full-service branches, an administration office, lending centers, an operations center, customer call center, and a wealth management center in New York’s Hudson Valley and Capital District Regions of New York State.
At June 30, 2025, the Bank of Greene County operated 18 full-service branches, an administration office, lending centers, an operations center, customer call center, and a wealth management center in New York’s Hudson Valley and Capital District Regions of New York State.
A loan does not have to be 90 days delinquent in order to be classified as non-performing and may be placed on nonaccrual when circumstances indicate that the borrower may be unable to meet the contractual principal or interest payments. The threshold for evaluating classified and nonperforming loans specifically evaluated for individual credit loss is $250,000.
A loan does not have to be 90 days delinquent in order to be classified as non-performing and may be placed on non-accrual when circumstances indicate that the borrower may be unable to meet the contractual principal or interest payments. The threshold for evaluating classified and non-performing loans specifically evaluated for individual credit loss is $250,000.
The amount of funds available to the Company through the FHLB line of credit is reduced by any letters of credit outstanding. There were $90.0 million in municipal letters of credit outstanding at June 30, 2024. Capital Resources.
The amount of funds available to the Company through the FHLB line of credit is reduced by any letters of credit outstanding. There were $90.0 million in municipal letters of credit outstanding at June 30, 2025. Capital Resources.
As a result of the consistent earnings throughout the fiscal year, the Company did not push down any additional capital to The Bank of Greene County during the fiscal years ended June 30, 2024 and June 30, 2023.
As a result of the consistent earnings throughout the fiscal year, the Company did not push down any additional capital to the Bank of Greene County during the fiscal years ended June 30, 2025 and June 30, 2024.
Loan Maturity Schedule and Interest Rate Sensitivity The following table sets forth certain information as of June 30, 2024 regarding the amount of loans maturing or re-pricing in the Company's portfolio.
Loan Maturity Schedule and Interest Rate Sensitivity The following table sets forth certain information as of June 30, 2025, regarding the amount of loans maturing or re-pricing in the Company's portfolio.
At June 30, 2024, there were $29.8 million of these Subordinated Note Purchases Agreements outstanding, net of issuance costs. The Company’s borrowing agreements and additional borrowing capacity are discussed further within Part II, Item 8 Financial Statements and Supplemental Data, Note 7 Borrowings of this Annual Report.
At June 30, 2025, there were $29.9 million of these Subordinated Note Purchases Agreements outstanding, net of issuance costs. The Company’s borrowing agreements and additional borrowing capacity are discussed further within Part II, Item 8 Financial Statements and Supplemental Data, Note 7 Borrowings of this Annual Report.
The increase in rate on interest-earning assets had the greatest impact on interest income when comparing the years ended June 30, 2024 and 2023. Interest income is derived from loans, securities and other interest-earning assets.
The increase in rate on interest-earning assets had the greatest impact on interest income when comparing the years ended June 30, 2025 and 2024. Interest income is derived from loans, securities and other interest-earning assets.
For periods subsequent to adoption, the allowance is calculated under the CECL methodology. The periods prior to adoption, the allowance calculation was based on the incurred loss methodology. 25 Index GENERAL Greene County Bancorp, Inc.
For periods subsequent to adoption, the allowance is calculated under the CECL methodology. The periods prior to adoption, the allowance calculation was based on the incurred loss methodology. 26 Index GENERAL Greene County Bancorp, Inc.
The MHC waived its right to receive dividends declared during the three months ended, September 30, 2022, December 31, 2022, March 31, 2023, June 30, 2023, December 31, 2023, March 31, 2024 and June 30, 2024. Dividends declared during the three months ended September 30, 2023 were paid to the MHC.
The MHC waived its right to receive dividends declared during the three months ended June 30, 2023, December 31, 2023, March 31, 2024, June 30, 2024, March 31, 2025 and June 30, 2025. Dividends declared during the three months ended September 30, 2023, September 30, 2024, and December 31, 2024 were paid to the MHC.
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. Investment Maturity Schedule The following table set forth information with regard to contractual maturities of debt securities shown in amortized cost ($) and weighted average yield (%) at June 30, 2024.
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. Investment Maturity Schedule The following table sets forth information with regard to contractual maturities of debt securities shown in amortized cost ($) and weighted average yield (%) at June 30, 2025.
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. 41 Index Comparison of Operating Results for the Years Ended June 30, 2024 and 2023 Average Balance Sheet The following table sets forth certain information relating to the Company for the years ended June 30, 2024 and 2023.
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. 39 Index Comparison of Operating Results for the Years Ended June 30, 2025 and 2024 Average Balance Sheet The following table sets forth certain information relating to the Company for the years ended June 30, 2025 and 2024.
While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit outflows, mortgage prepayments, and borrowings are greatly influenced by general interest rates, economic conditions and competition. The Company’s most liquid assets are cash and cash equivalent accounts.
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. The Company’s most liquid assets are cash and cash equivalent accounts.
In efforts to enhance strong levels of liquidity and to fund strong loan demand, the Bank and Commercial Bank (the “Banks”) accept brokered deposits, generally in denominations of less than $250,000, from national brokerage networks, custodial deposit networks or through IntraFi’s one-way CDARS and ICS products, including IntraFi’s Insured Network Deposits (“IND”).
As needed, to enhance strong levels of liquidity and to fund loan demand, the Bank and Commercial Bank (the “Banks”) may accept brokered deposits, generally in denominations of less than $250,000, from national brokerage networks, custodial deposit networks or through IntraFi’s one-way CDARS and ICS products, including IntraFi’s Insured Network Deposits (“IND”).
The Company elected to use the practical expedient to evaluate loans individually, if they are collateral dependent loans that are on nonaccrual status with a balance of $250,000 or greater, which is consistent with regulatory requirements.
The Company elected to use the practical expedient to evaluate loans individually, if they are collateral dependent loans that are on non-accrual status with a balance of $250,000 or greater, which is consistent with regulatory requirements.
Included in non-accrual loans were $3.1 million of loans which were less than 90 days past due at June 30, 2023, 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.
Included in non-accrual loans were $1.2 million of loans which were less than 90 days past due at June 30, 2025, 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.
The Banks combined can place and obtain brokered deposits up to 30% of total deposits, in the amount of $716.8 million based on policy. Additionally, the Banks participate in the IntraFi reciprocal (“two-way”) CDARS and the ICS products, which provides for reciprocal two-way transactions among other institutions, facilitated by IntraFi, for the purpose of maximizing FDIC insurance for depositors.
The Banks combined can place and obtain brokered deposits up to 30.0% of total deposits, in the amount of $791.9 million based on policy. Additionally, the Banks participate in the IntraFi reciprocal (“two-way”) CDARS and the ICS products, which provides for reciprocal two-way transactions among other institutions, facilitated by IntraFi, for the purpose of maximizing FDIC insurance for depositors.
The fair value of collateral for collateral dependent loans less selling expenses will be compared to the loan balance to determine if a CECL reserve is required. A qualitative factor framework has been developed to adjust the quantitative loss rates for asset-specific risk characteristics or current conditions at the reporting date.
The fair value of collateral for collateral dependent loans less selling expenses will be compared to the loan balance to determine if an ACL on loans is required. A qualitative factor framework has been developed to adjust the quantitative loss rates for asset-specific risk characteristics or current conditions at the reporting date.
Foreclosed real estate represents property acquired through foreclosure and is vale lower of the carrying amount or fair value, less any estimated disposal costs. The Company monitors loan modifications made to borrowers experiencing financial difficulty.
Foreclosed real estate represents property acquired through foreclosure proceedings and is valued at the lower of the carrying amount or fair value, less any estimated disposal costs. The Company monitors loan modifications made to borrowers experiencing financial difficulty.
As the interest rate swap agreements have substantially equivalent and offsetting terms, they do not present any material exposure to the Company’s consolidated statements of income. The Company records its interest rate swap agreements at fair value and is presented on a gross basis within other assets and other liabilities on the consolidated statements of financial condition.
As the interest rate swap agreements have substantially equivalent and offsetting terms, they do not present any material exposure to the Company’s consolidated statements of income. The Company records its interest rate swap agreements at fair value and are presented within other assets and other liabilities on the consolidated statements of financial condition.
The rate used for this adjustment was 21% for federal income taxes, and 4.44% for New York State income taxes for the years ended June 30, 2024 and 2023.
The rate used for this adjustment was 21.0% for federal income taxes, and 4.44% for New York State income taxes for the years ended June 30, 2025 and 2024.
Uninsured deposits after exclusions, represents 13.3% of total deposits as of June 30, 2024. The Company believes that this presentation provides a more accurate view of deposits at risk, given that affiliate deposits are not customer facing and therefore are eliminated upon consolidation, and collateralized deposits are fully secured by investments and municipal letters of credit.
Uninsured deposits after exclusions represents 12.5% of total deposits as of June 30, 2025. The Company believes that this presentation provides a more accurate view of deposits at risk, given that affiliate deposits are not customer facing and therefore are eliminated upon consolidation, and collateralized deposits are fully secured by investments and municipal letters of credit.
At June 30, 2024 and 2023, The Bank of Greene County and Greene County Commercial Bank exceeded all of their regulatory capital requirements, as illustrated in Part II, Item 8 Financial Statements and Supplementary Data Note 18. Regulatory Matters of this Annual Report. Shareholders’ equity represented 7.3% and 6.8% of total consolidated assets at June 30, 2024 and 2023, respectively.
At June 30, 2025 and 2024, the Bank of Greene County and Greene County Commercial Bank exceeded all of their regulatory capital requirements, as illustrated in Part II, Item 8 Financial Statements and Supplementary Data Note 19. Regulatory Matters of this Annual Report. Shareholders’ equity represented 7.9% and 7.3% of total consolidated assets at June 30, 2025 and 2024, respectively.
The probable funding amount by segment is multiplied by the respective reserve percentage calculated in the allowance for credit losses on loans to calculate a reserve on unfunded commitments. The allowance for credit losses on unfunded commitments as of June 30, 2024 was $1.3 million.
The probable funding amount by segment is multiplied by the respective reserve percentage calculated in the allowance for credit losses on loans to calculate a reserve on unfunded commitments. At June 30, 2025, the allowance for credit losses on unfunded commitments was $1.8 million, as compared to $1.3 million at June 30, 2024.
Certificates of deposit scheduled to mature in one year or less from June 30, 2024 totaled $127.8 million. Based upon the Company’s experience and its current pricing strategy, management believes that a significant portion of such deposits will remain with the Company.
Certificates of deposit scheduled to mature in one year or less from June 30, 2025 totaled $191.9 million. Based upon the Company’s experience and its current pricing strategy, management believes that a significant portion of such deposits will remain with the Company.
These activities were funded primarily through deposit growth, and principal payments on loans and securities, and borrowings. Loan sales did not provide an additional source of liquidity during the years ended June 30, 2024 and 2023, as the Company originated loans for retention in its portfolio.
These activities were funded primarily through deposit growth, principal payments on loans and securities, and borrowings. Loan sales did not provide an additional source of liquidity during the years ended June 30, 2025 and 2024, as the Company originated loans for retention in its portfolio. The Company monitors its liquidity position on a daily basis.
As of June 30, 2024, the Company’s largest commercial real estate concentration was non-owner occupied multi-family loans, at $233.3 million or 24.9% of total commercial real estate loans. Non-owner occupied multi-family loans provide much needed housing for the residents located in our market area, and have historically performed well with strong credit metrics.
As of June 30, 2025, the Company’s largest commercial real estate concentration was non-owner occupied multi-family loans, at $282.3 million or 26.8% of total commercial real estate loans. Non-owner occupied multi-family loans provide much needed housing for the residents located in our market area and have historically performed well with strong credit metrics.
The discounted cash flow methodology is used to calculate the CECL reserve for the residential real estate, commercial real estate, home equity and commercial loan segments. The remaining life method is utilized to determine the CECL reserve for the consumer loan segment.
The discounted cash flow methodology is used to calculate the ACL on loans for the residential real estate, commercial real estate, home equity and commercial loan segments. The remaining life method is utilized to determine the ACL on loans for the consumer loan segment.
The ACL is increased by a provision for credit losses (which results in a charge to expense) and recoveries of loans previously charged off, and is reduced by charge-offs. The ACL totaled $19.2 million at June 30, 2024, compared to $21.2 million at June 30, 2023 and $19.9 million at July 1, 2023.
The ACL on loans is increased by a provision for credit losses (which results in a charge to expense) and recoveries of loans previously charged off and is reduced by charge-offs. The ACL on loans totaled $20.1 million at June 30, 2025, compared to $19.2 million at June 30, 2024.
The Company’s primary investing activities are the origination of residential and commercial real estate mortgage loans, other consumer and commercial loans, and the purchase of securities. Loan originations exceeded repayments by $90.7 million and $157.9 million and purchases of securities totaled $329.6 million and $212.0 million for the years ended June 30, 2024 and 2023, respectively.
The Company’s primary investing activities are the origination of residential and commercial real estate mortgage loans, other consumer and commercial loans, and the purchase of securities. Loan originations exceeded repayments by $127.0 million and $90.7 million and purchases of securities totaled $444.2 million and $329.6 million for the years ended June 30, 2025 and 2024, respectively.
The office loans are primarily low-rise, non-metropolitan buildings, located within our geographic footprint. As of June 30, 2024, the weighted average LTV was approximately 64.8% for the non-owner occupied office loan segment.
The office loans are primarily low-rise, non-metropolitan buildings, located within our geographic footprint. As of June 30, 2025, the weighted average LTV was approximately 59.3% for the non-owner occupied office loan segment.
Depreciation for the year ended June 30, 2024 totaled $928,000, compared to $871,000 for the year ended June 30, 2023. There were no disposals of premises and equipment during the fiscal years ended June 30, 2024 and 2023.
Depreciation for the year ended June 30, 2025 totaled $1.1 million, compared to $928,000 for the year ended June 30, 2024. There were no disposals of premises and equipment during the fiscal years ended June 30, 2025 and 2024.
The following table summarizes total uninsured deposits based on the same methodologies and assumptions used for the Bank’s regulatory reporting: At June 30, (Dollars in thousands) 2024 2023 2022 Estimated amount of uninsured for the Bank of Greene County $ 358,851 $ 368,566 $ 328,352 Estimated amount of uninsured for Greene County Commercial Bank (1) 931,731 941,634 858,015 Uninsured deposits, per regulatory requirements $ 1,290,582 $ 1,310,200 $ 1,186,367 (1) All of Greene County Commercial Bank deposits in excess of FDIC insurance limits are fully collateralized.
The following table summarizes total uninsured deposits based on the same methodologies and assumptions used for the Bank’s regulatory reporting: At June 30, (Dollars in thousands) 2025 2024 2023 Estimated amount of uninsured for the Bank of Greene County $ 388,060 $ 358,851 $ 368,566 Estimated amount of uninsured for Greene County Commercial Bank (1) 1,049,268 931,731 941,634 Uninsured deposits, per regulatory requirements $ 1,437,328 $ 1,290,582 $ 1,310,200 (1) All of Greene County Commercial Bank deposits in excess of FDIC insurance limits are fully collateralized.
The amount recognized for the provision for credit losses is determined by management based on its ongoing analysis of the adequacy of the allowance for credit losses. Provision for credit losses on loans amounted to a charge of $786,000 for the year ended June 30, 2024 and a benefit of $1.1 million for the year ended June 30, 2023.
The amount recognized for the provision for credit losses is determined by management based on its ongoing analysis of the adequacy of the allowance for credit losses. Provision for credit losses on loans amounted to a charge of $1.3 million and $786,000 for the years ended June 30, 2025 and 2024, respectively.
(2) Loan balances exclude accrued interest receivable of $6.2 million at June 30, 2024, which is included in accrued interest receivable in the consolidated statement of financial condition.
(2) Loan balances exclude accrued interest receivable of $7.0 million and $6.2 million at June 30, 2025 and 2024, respectively, which is included in accrued interest receivable in the consolidated statement of financial condition.
Interest expense paid on savings and money market accounts amounted to $1.5 million for the year ended June 30, 2024 as compared to $929,000 for the year ended June 30, 2023, an increase of $537,000, or 19.6%.
Interest expense paid on savings and money market accounts amounted to $1.6 million for the year ended June 30, 2025 as compared to $1.5 million for the year ended June 30, 2024, an increase of $140,000, or 9.6%.
Interest income earned on federal funds and interest-bearing bank balances amounted to $4.0 million for the year ended June 30, 2024 as compared to $1.6 million for the year ended June 30, 2023.
Interest income earned on federal funds and interest-bearing bank balances amounted to $3.5 million for the year ended June 30, 2025 as compared to $4.0 million for the year ended June 30, 2024.
Total average interest-bearing liabilities increased to $2.3 billion for the year ended June 30, 2024 as compared to $2.2 billion for the year ended June 30, 2023, an increase of $84.4 million, or 3.8%. The majority of the increase related to NOW accounts, primarily resulting from growth in new deposit relationships within our business and municipal accounts.
Total average interest-bearing liabilities increased to $2.5 billion for the year ended June 30, 2025 as compared to $2.3 billion for the year ended June 30, 2024, an increase of $168.3 million, or 7.3%. The majority of the increase related to NOW and certificates of deposit accounts, primarily resulting from growth in new deposit relationships within business and municipal accounts.
The average rate paid on savings and money market accounts increased 19 basis points to 0.39% for the year ended June 30, 2024 as compared to 0.20% for the year ended June 30, 2023.
The average rate paid on savings and money market accounts increased 7 basis points to 0.46% for the year ended June 30, 2025 as compared to 0.39% for the year ended June 30, 2024.
At June 30, 2024, approximately 61.6% of the loan portfolio was adjustable rate, of which a large portion is tied to the Prime Rate. Interest income earned on securities (excluding FHLB stock) increased to $27.9 million for the year ended June 30, 2024 as compared to $22.8 million for the year ended June 30, 2023.
At June 30, 2025, approximately 64.3% of the loan portfolio was adjustable-rate, of which a large portion is tied to the Prime Rate. Interest income earned on securities (excluding FHLB stock) increased to $34.0 million for the year ended June 30, 2025 as compared to $27.9 million for the year ended June 30, 2024.
The levels of these assets are dependent on the Company’s operating, financing, lending and investing activities during any given period. At June 30, 2024, cash and cash equivalents totaled $190.4 million, or 6.7% of total assets.
The levels of these assets are dependent on the Company’s operating, financing, lending and investing activities during any given period. At June 30, 2025, cash and cash equivalents totaled $183.1 million, or 6.0% of total assets.
The yield earned on such assets increased 65 basis points to 4.04% for the year ended June 30, 2024 as compared to 3.39% for the year ended June 30, 2023. Interest income earned on loans increased to $71.5 million for the year ended June 30, 2024 as compared to $60.0 million for the year ended June 30, 2023.
The yield earned on such assets increased 26 basis points to 4.30% for the year ended June 30, 2025 as compared to 4.04% for the year ended June 30, 2024. Interest income earned on loans increased to $80.0 million for the year ended June 30, 2025 as compared to $71.5 million for the year ended June 30, 2024.
Average loans outstanding increased $83.6 million, or 6.1%, to $1.5 billion for the year ended June 30, 2024 as compared to $1.4 billion for the year ended June 30, 2023. The yield on such loans increased 54 basis points to 4.92% for the year ended June 30, 2024 as compared to 4.38% for the year ended June 30, 2023.
Average loans outstanding increased $96.6 million, or 6.6%, to $1.6 billion for the year ended June 30, 2025 as compared to $1.5 billion for the year ended June 30, 2024. The yield on such loans increased 23 basis points to 5.15% for the year ended June 30, 2025 as compared to 4.92% for the year ended June 30, 2024.
The Company has purchased municipal securities as part of its strategy based on the fact that such securities can offer a higher tax-equivalent yield than other similar investments. 27 Index FINANCIAL OVERVIEW Net income for the year ended June 30, 2024 amounted to $24.8 million, or $1.45 per basic and diluted share, as compared to $30.8 million, or $1.81 per basic and diluted share, for the year ended June 30, 2023, a decrease of $6.0 million, or 19.5%.
The Company has purchased municipal securities as part of its strategy based on the fact that such securities can offer a higher tax-equivalent yield than other similar investments. 28 Index FINANCIAL OVERVIEW Net income for the year ended June 30, 2025 amounted to $31.1 million, or $1.83 per basic and diluted share, as compared to $24.8 million, or $1.45 per basic and diluted share, for the year ended June 30, 2024, an increase of $6.3 million, or 25.7%.
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. 24 Index Selected Financial Data At or for the years ended June 30, (Dollars in thousands, except per share amounts) 2024 2023 2022 SELECTED FINANCIAL CONDITION DATA: Total assets $ 2,825,788 $ 2,698,283 $ 2,571,740 Loans receivable, net of allowance for credit loss on loans 1,480,229 1,387,654 1,229,355 Securities available-for-sale, at fair value 350,001 281,133 408,062 Securities held-to-maturity, at amortized cost, net of allowance for credit losses of $483 at June 30, 2024 (9) 690,354 726,363 761,852 Equity securities 328 306 273 Deposits 2,389,222 2,437,161 2,212,604 Borrowings 149,456 - 123,700 Shareholders' equity 206,000 183,283 157,714 AVERAGE BALANCES: Total assets 2,660,947 2,580,849 2,366,070 Interest-earning assets 2,568,756 2,495,653 2,291,448 Loans receivable, net of allowance for credit loss on loans 1,435,122 1,349,538 1,123,201 Securities, net of allowance for credit loss on securities 1,037,023 1,086,294 1,066,189 Deposits 2,366,053 2,302,167 2,134,584 Borrowings 72,726 82,816 51,193 Shareholders' equity 192,515 169,837 156,098 SELECTED OPERATIONS DATA: Total interest income 103,664 84,625 63,444 Total interest expense 52,685 23,407 5,439 Net interest income 50,979 61,218 58,005 Provision (benefit) for credit losses (9) 766 (1,071 ) 3,278 Net interest income after provision for credit losses (9) 50,213 62,289 54,727 Total noninterest income 13,908 12,146 12,137 Total noninterest expense 37,302 38,608 33,959 Income before provision for income taxes 26,819 35,827 32,905 Provision for income taxes 2,050 5,042 4,919 Net income 24,769 30,785 27,986 FINANCIAL RATIOS: Return on average assets (1) 0.93 % 1.19 % 1.18 % Return on average shareholders’ equity (2) 12.87 18.13 17.93 Noninterest expenses to average total assets 1.40 1.50 1.44 Average interest-earning assets to average interest-bearing liabilities 111.77 112.73 114.57 Net interest rate spread (3) 1.75 2.33 2.50 Net interest margin (4) 1.98 2.45 2.53 Efficiency ratio (5) 57.49 52.63 48.41 Shareholders’ equity to total assets, at end of period 7.29 6.79 6.13 Average shareholders’ equity to average assets 7.23 6.58 6.60 Dividend payout ratio (6) 22.07 15.47 15.85 Actual dividends declared to net income (7) 13.08 7.12 9.41 Non-performing assets to total assets, at end of period 0.13 0.21 0.25 Non-performing loans to net loans, at end of period 0.25 0.39 0.51 Allowance for credit losses on loans to non-performing loans (9) 516.20 388.64 360.31 Allowance for credit losses on loans to total loans receivable (9) 1.28 1.51 1.82 Book value per share (8) $ 12.10 $ 10.76 $ 9.26 Basic earnings per share 1.45 1.81 1.64 Diluted earnings per share 1.45 1.81 1.64 OTHER DATA: Closing market price of common stock $ 33.71 $ 29.80 $ 22.65 Number of full-service offices 18 18 17 Number of full-time equivalent employees 200 206 198 (1) Ratio of net income to average total assets.
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. 25 Index Selected Financial Data At or for the years ended June 30, (Dollars in thousands, except per share amounts) 2025 2024 2023 SELECTED FINANCIAL CONDITION DATA: Total assets $ 3,040,609 $ 2,825,788 $ 2,698,283 Loans receivable, net of allowance for credit loss on loans 1,607,260 1,480,229 1,387,654 Securities available-for-sale, at fair value 356,062 350,001 281,133 Securities held-to-maturity, at amortized cost, net of allowance for credit losses of $548 and $483 at June 30, 2025 and 2024 (9) 776,147 690,354 726,363 Equity securities 402 328 306 Deposits 2,639,835 2,389,222 2,437,161 Borrowings 78,189 149,456 - Shareholders' equity 238,837 206,000 183,283 AVERAGE BALANCES: Total assets 2,835,441 2,660,947 2,580,849 Interest-earning assets 2,739,472 2,568,756 2,495,653 Loans receivable, net of allowance for credit loss on loans 1,531,716 1,435,122 1,349,538 Securities, net of allowance for credit loss on securities 1,116,147 1,037,023 1,086,294 Deposits 2,517,625 2,366,053 2,302,167 Borrowings 66,001 72,726 82,816 Shareholders' equity 221,178 192,515 169,837 SELECTED OPERATIONS DATA: Total interest income 117,705 103,664 84,625 Total interest expense 57,584 52,685 23,407 Net interest income 60,121 50,979 61,218 Provision (benefit) for credit losses (9) 1,316 766 (1,071 ) Net interest income after provision for credit losses (9) 58,805 50,213 62,289 Total noninterest income 15,233 13,908 12,146 Total noninterest expense 39,372 37,302 38,608 Income before provision for income taxes 34,666 26,819 35,827 Provision for income taxes 3,528 2,050 5,042 Net income 31,138 24,769 30,785 FINANCIAL RATIOS: Return on average assets (1) 1.10 % 0.93 % 1.19 % Return on average shareholders’ equity (2) 14.08 12.87 18.13 Noninterest expenses to average total assets 1.39 1.40 1.50 Average interest-earning assets to average interest-bearing liabilities 111.06 111.77 112.73 Net interest rate spread (3) 1.97 1.75 2.33 Net interest margin (4) 2.19 1.98 2.45 Efficiency ratio (5) 52.25 57.49 52.63 Shareholders’ equity to total assets, at end of period 7.85 7.29 6.79 Average shareholders’ equity to average assets 7.80 7.23 6.58 Dividend payout ratio (6) 19.67 22.07 15.47 Actual dividends declared to net income (7) 14.37 13.08 7.12 Non-performing assets to total assets, at end of period 0.10 0.13 0.21 Non-performing loans to net loans, at end of period 0.19 0.25 0.39 Allowance for credit losses on loans to non-performing loans (9) 658.37 516.20 388.64 Allowance for credit losses on loans to total loans receivable (9) 1.24 1.28 1.51 Book value per share (8) $ 14.03 $ 12.10 $ 10.76 Basic earnings per share 1.83 1.45 1.81 Diluted earnings per share 1.83 1.45 1.81 OTHER DATA: Closing market price of common stock $ 22.22 $ 33.71 $ 29.80 Number of full-service offices 18 18 18 Number of full-time equivalent employees 203 200 206 (1) Ratio of net income to average total assets.
Taxable-equivalent net interest income and net interest margin For the years ended June 30, (Dollars in thousands) 2024 2023 Net interest income (GAAP) $ 50,979 $ 61,218 Tax-equivalent adjustment (1) 6,791 5,258 Net interest income fully taxable-equivalent basis (non-GAAP) $ 57,770 $ 66,476 Average interest-earning assets (GAAP) $ 2,568,756 $ 2,495,653 Net interest margin fully taxable-equivalent basis (non-GAAP) 2.25 % 2.66 % (1) Interest income calculated on a taxable-equivalent basis (non-GAAP) 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.
Taxable-equivalent net interest income and net interest margin For the years ended June 30, (Dollars in thousands) 2025 2024 Net interest income (GAAP) $ 60,121 $ 50,979 Tax-equivalent adjustment (1) 7,679 6,791 Net interest income fully taxable-equivalent basis (non-GAAP) $ 67,800 $ 57,770 Average interest-earning assets (GAAP) $ 2,739,472 $ 2,568,756 Net interest margin fully taxable-equivalent basis (non-GAAP) 2.47 % 2.25 % ( 1 ) Interest income calculated on a taxable-equivalent basis (non-GAAP) includes the additional 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.
On a portfolio basis, the Company’s non-owner occupied commercial real estate loans have a weighted average LTV of approximately 55.4%, and the Company’s owner occupied commercial real estate loans have a weighted average LTV of approximately 50.5%, as of June 30, 2024.
On a portfolio basis, the Company’s non-owner occupied commercial real estate loans have a weighted average LTV of approximately 57.2%, and the Company’s owner occupied commercial real estate loans have a weighted average LTV of approximately 49.4%, as of June 30, 2025.
Total average interest-earning assets increased to $2.6 billion for the year ended June 30, 2024 as compared to $2.5 billion for the year ended June 30, 2023, an increase of $73.1 million, or 2.9%.
Total average interest-earning assets increased to $2.7 billion for the year ended June 30, 2025 as compared to $2.6 billion for the year ended June 30, 2024, an increase of $170.7 million, or 6.6%.
The increase in rate on interest-bearing liabilities had the greatest impact on interest expense when comparing the years ended June 30, 2024 and 2023. The rate paid on interest-bearing liabilities increased 123 basis points to 2.29% for the year ended June 30, 2024 compared to 1.06% for the year ended June 30, 2023.
The increase in the average balance of interest-bearing liabilities had the greatest impact on interest expense when comparing the years ended June 30, 2025 and 2024. The rate paid on interest-bearing liabilities increased 4 basis points to 2.33% for the year ended June 30, 2025 compared to 2.29% for the year ended June 30, 2024.
As the above table shows, net interest income for the fiscal year ended June 30, 2024 has been affected most significantly by the increase in the volume of loans and the increase in rates on all interest-earning assets. This was partially offset by an increase in volume and rate of interest-bearing liabilities.
As the above table shows, net interest income for the fiscal year ended June 30, 2025, has been affected most significantly by the increase in the volume of loans, taxable securities, and the increase in rates on said interest-earning assets. This was partially offset by an increase in volume of NOW and certificates of deposits.
The average yield on securities taxable increased 50 basis points to 2.53% for the year ended June 30, 2024 as compared to 2.03% for the year ended June 30, 2023.
The average yield on securities taxable increased 56 basis points to 3.09% for the year ended June 30, 2025 as compared to 2.53% for the year ended June 30, 2024.
The average balance of NOW accounts increased $140.3 million to $1.7 billion for the year ended June 30, 2024 as compared to $1.6 billion for the year ended June 30, 2023.
The average balance of NOW accounts increased $135.1 million to $1.9 billion for the year ended June 30, 2025 as compared to $1.7 billion for the year ended June 30, 2024.
During the year ended June 30, 2024, the Company downgraded 12 commercial and commercial real estate relationships from special mention to substandard, and downgraded 14 commercial and commercial real estate relationships from pass to special mention, due to the deterioration in the borrower cash flows and financial performance.
During the year ended June 30, 2024, the Company downgraded to classified from pass 17 commercial real estate relationships and 9 commercial loan relationships, due to the deterioration in the borrower cash flows and financial performance.
Construction loans are primarily comprised of approximately 35.5% mixed use real estate, 32.6% multi-family buildings and 13.1% pre-construction and land loans. The Company’s outstanding balance of non-owner occupied commercial real estate office loans were $55.6 million or 5.9% of total commercial real estate loans as of June 30, 2024.
Construction loans are primarily comprised of approximately 33.5% mixed use real estate, 27.3% multi-family buildings, 18.1% pre-construction and land loans, and 12.1% residential real estate. The Company’s outstanding balance of non-owner occupied commercial real estate office loans were $67.9 million or 6.4% of total commercial real estate loans as of June 30, 2025.
As of June 30, 2024, the weighted average LTV was approximately 55.8% for the non-owner occupied multi-family loan segment. As of June 30, 2024, non-owner occupied construction loans were $108.3 million or 11.6% of total commercial real estate loans.
As of June 30, 2025, the weighted average LTV was approximately 58.8% for the non-owner occupied multi-family loan segment. 31 Index As of June 30, 2025, non-owner occupied construction loans were $72.0 million or 6.8% of total commercial real estate loans.
Non-accrual Loans and Non-performing Assets Non-performing assets consist of non-accrual loans, loans over 90 days past due and still accruing, other real estate owned that has been acquired in partial or full satisfaction of the loan obligation or upon foreclosure, and nonperforming securities.
Non-accrual Loans and Non-performing Assets Non-performing assets consist of non-accrual loans, loans over 90 days past due and still accruing, other real estate owned that has been acquired in partial or full satisfaction of the loan obligation or upon foreclosure, and non-performing securities. 32 Index Generally, management places loans on non-accrual status once the loans have become 90 days or more delinquent.
At June 30, 2024, borrowings included $115.3 million of overnight borrowings with the Federal Home Loan Bank of New York (“FHLB”), $49.7 million of Fixed-to-Floating Rate Subordinated Notes, $25.0 million in the Bank Term Funding Program with the Federal Reserve Bank, and $9.2 million of long-term borrowings with the FHLB.
At June 30, 2025, borrowings included $74.0 million of overnight borrowings with the Federal Home Loan Bank of New York (“FHLB”), $49.9 million of Fixed-to-Floating Rate Subordinated Notes, and $4.2 million of long-term borrowings with the FHLB.
The decrease in net income was due to an increase of $29.3 million in interest expense partially offset by an increase of $19.0 million in interest income. The provision for credit losses amounted to a charge of $766,000 for the year ended June 30, 2024 and a benefit of $1.1 million for the year ended June 30, 2023.
The increase in net income was primarily due to an increase of $14.0 million in interest income partially offset by an increase of $4.9 million in interest expense. The provision for credit losses amounted to a charge of $1.3 million and $766,000 for the years ended June 30, 2025 and 2024, respectively.
At June 30, 2024, there were $19.9 million of Subordinated Note Purchases Agreements outstanding, net of issuance costs.
At June 30, 2025, there were $20.0 million of Subordinated Note Purchases Agreements outstanding, net of issuance costs.
The average rate paid on NOW accounts increased 141 basis points to 2.51% for the year ended June 30, 2024 as compared to 1.10% for the year ended June 30, 2023.
The average rate paid on NOW accounts decreased 2 basis points to 2.49% for the year ended June 30, 2025 as compared to 2.51% for the year ended June 30, 2024.
This was partially offset by increases in interest income on securities and loans, as they reprice at higher yields and the interest rates earned on new balances were higher than the low levels from the prior periods. 43 Index INTEREST INCOME Interest income for the year ended June 30, 2024 amounted to $103.7 million as compared to $84.6 million for the year ended June 30, 2023, an increase of $19.0 million, or 22.5%.
The increase during the year ended June 30, 2025 was due to increases in interest income on loans and securities, as they continue to reprice at higher yields and the interest rates earned on new balances were higher than the historic low levels from the prior periods. 41 Index INTEREST INCOME Interest income for the year ended June 30, 2025, amounted to $117.7 million as compared to $103.7 million for the year ended June 30, 2024, an increase of $14.0 million, or 13.5%.
In addition to non-performing assets discussed above, the Company has identified potential problem loans classified as substandard or special mention, totaling $48.6 million at June 30, 2024 compared to $41.9 million at June 30, 2023, an increase of $6.7 million.
In addition to non-performing assets discussed above, the Company has identified potential problem loans classified as substandard or special mention, totaling $45.4 million at June 30, 2025 compared to $48.6 million at June 30, 2024, a decrease of $3.2 million.
For additional details relating to the allocation of the provision for credit losses, see Part II, Item 8 Financial Statements and Supplemental Data, Note 4, Loans and Allowance for Credit Losses on Loans of this report.
The allowance for credit losses on loans to total loans receivable was 1.24% at June 30, 2025 compared to 1.28% at June 30, 2024. For additional details relating to the allocation of the provision for credit losses, see Part II, Item 8 Financial Statements and Supplemental Data, Note 4, Loans and Allowance for Credit Losses on Loans of this report.
The following table summarizes deposits by major categories: At June 30, 2024 2023 2022 (Dollars in thousands) Amount Percent Amount Percent Amount Percent Noninterest-bearing deposits $ 125,442 5.3 % $ 159,039 6.5 % $ 187,697 8.5 % Certificates of deposit 138,493 5.8 128,077 5.3 40,801 1.8 Savings deposits 252,362 10.6 299,038 12.3 343,731 15.5 Money market deposits 113,266 4.7 115,029 4.7 157,623 7.1 NOW deposits 1,759,659 73.6 1,735,978 71.2 1,482,752 67.0 Total deposits $ 2,389,222 100.0 % $ 2,437,161 100.0 % $ 2,212,604 100.0 % 38 Index The following table summarizes deposits by depositor type: At June 30, 2024 2023 2022 (Dollars in thousands) Amount Percent Amount Percent Amount Percent Business deposits $ 462,716 19.4 % $ 487,477 20.0 % $ 437,489 19.8 % Retail deposits 882,170 36.9 856,079 35.1 874,758 39.5 Municipal deposits 1,044,336 43.7 1,033,605 42.4 893,114 40.4 Brokered deposits - - 60,000 2.5 7,243 0.3 Total deposits $ 2,389,222 100.0 % $ 2,437,161 100.0 % $ 2,212,604 100.0 % The Company’s deposit base and liquidity position continues to be strong, and the deposit base is well diversified across segments to meet the transactional and investment needs of our customers.
The following table summarizes deposits by major categories: At June 30, 2025 2024 2023 (Dollars in thousands) Amount Percent Amount Percent Amount Percent Noninterest-bearing deposits $ 110,163 4.2 % $ 125,442 5.3 % $ 159,039 6.5 % Certificates of deposit 228,174 8.6 138,493 5.8 128,077 5.3 Savings deposits 246,488 9.3 252,362 10.6 299,038 12.3 Money market deposits 102,787 3.9 113,266 4.7 115,029 4.7 NOW deposits 1,952,223 74.0 1,759,659 73.6 1,735,978 71.2 Total deposits $ 2,639,835 100.0 % $ 2,389,222 100.0 % $ 2,437,161 100.0 % The following table summarizes deposits by depositor type: At June 30, 2025 2024 2023 (Dollars in thousands) Amount Percent Amount Percent Amount Percent Business deposits $ 499,964 18.9 % $ 462,716 19.4 % $ 487,477 20.0 % Retail deposits 903,767 34.2 882,170 36.9 856,079 35.1 Municipal deposits 1,184,514 44.9 1,044,336 43.7 1,033,605 42.4 Brokered deposits 51,590 2.0 - - 60,000 2.5 Total deposits $ 2,639,835 100.0 % $ 2,389,222 100.0 % $ 2,437,161 100.0 % 37 Index The Company’s deposit base and liquidity position continues to be strong, and the deposit base is well diversified across segments to meet the transactional and investment needs of our customers.
The average balance of savings and money market accounts decreased by $91.3 million to $373.7 million for the year ended June 30, 2024 as compared to $465.0 million for the year ended June 30, 2023.
The average balance of savings and money market accounts decreased by $22.8 million to $350.9 million for the year ended June 30, 2025 as compared to $373.7 million for the year ended June 30, 2024.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

17 edited+2 added−1 removed20 unchanged
Biggest changeThe Company’s EVE modeling projects that as of the reporting date and in response to instantaneous rate increases and decreases, the EVE remains within the Company’s policy limits. This contemplates instantaneous rate shocks, and would result from the increase in interest rates and the impact it has on the assets and the short-term nature of the Company’s liabilities.
Biggest changeAs investments and loans mature, and the funds are reinvested at higher interest rates, the EVE sensitivity will continue to improve. The Company’s EVE modeling projects that as of the reporting date and in response to instantaneous rate increases and decreases, the EVE remains within the Company’s policy limits.
The Company’s largest risk is a declining rate environment. The analysis of NII sensitivity is limited by the fact that it does not take into account any future changes in the balance sheet.
The Company’s risk is a declining rate environment. The analysis of NII sensitivity is limited by the fact that it does not take into account any future changes in the balance sheet.
Gap Analysis. The matching of assets and liabilities may be analyzed by examining the extent to which such assets and liabilities are “interest rate sensitive” and by monitoring a company’s interest rate sensitivity “gap.” An asset or liability is deemed to be interest rate sensitive within a specific time period if it will mature or reprice within that time period.
The matching of assets and liabilities may be analyzed by examining the extent to which such assets and liabilities are “interest rate sensitive” and by monitoring a company’s interest rate sensitivity “gap.” An asset or liability is deemed to be interest rate sensitive within a specific time period if it will mature or reprice within that time period.
The information set forth below is based on data that included all financial instruments as of June 30, 2024. Assumptions made by the Company relate to interest rates, loan prepayment rates, core deposit duration, and the market values of certain assets and liabilities under the various interest rate scenarios.
The information set forth below is based on data that included all financial instruments as of June 30, 2025. Assumptions made by the Company relate to interest rates, loan prepayment rates, core deposit duration, and the market values of certain assets and liabilities under the various interest rate scenarios.
Actual maturity dates were used for fixed rate loans and certificate accounts. Securities were scheduled at either maturity date or next scheduled call date based upon judgment of whether the particular security would be called based upon the current interest rate environment, as it existed on June 30, 2024.
Actual maturity dates were used for fixed rate loans and certificate accounts. Securities were scheduled at either maturity date or next scheduled call date based upon judgment of whether the particular security would be called based upon the current interest rate environment, as it existed on June 30, 2025.
By incorporating the Company’s financial projections into the analysis, the Company can better understand the impact that the implementation of those plans would have on its overall interest rate risk, and thereby better manage its interest rate risk position. EVE Analysis.
By incorporating the Company’s financial projections into the analysis, the Company can better understand the impact that the implementation of those plans would have on its overall interest rate risk, and thereby better manage its interest rate risk position. 46 Index EVE Analysis.
The noninterest-bearing category does not use a decay assumption, and the 24 month FHLB advance rate was used as the discount rate. The EVE at “Par” represents the difference between the Company’s estimated value of assets and value of liabilities assuming no change in interest rates. 48 Index The following sets forth the Company’s EVE as of June 30, 2024.
The noninterest-bearing category does not use a decay assumption, and the 24 month FHLB advance rate was used as the discount rate. The EVE at “Par” represents the difference between the Company’s estimated value of assets and value of liabilities assuming no change in interest rates. The following sets forth the Company’s EVE at June 30, 2025.
Finally, the ability of many borrowers to service their adjustable-rate loans may decrease in the event of an interest rate increase. 49 Index
Finally, the ability of many borrowers to service their adjustable-rate loans may decrease in the event of an interest rate increase. 48 Index
Factors beyond management’s control, such as market interest rates and competition, also have an impact on interest income and interest expense. 47 Index In recent years, the Company has followed the following strategies to manage interest rate 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.
In recent years, the Company has followed the following strategies to manage interest rate 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.
Certain shortcomings are inherent in this method of analysis. For example, although certain assets and liabilities may have similar maturities or periods to repricing, they may react in different degrees to changes in market interest rates.
For example, although certain assets and liabilities may have similar maturities or periods to repricing, they may react in different degrees to changes in market interest rates.
The Company generally does not engage in any balance sheet derivative-based hedging transactions, such as balance sheet interest rate swaps and caps. Due to the complex nature and additional risk often associated with derivative hedging transactions, such as counterparty risk, it is the Company’s policy to continue its strategy of mitigating interest rate risk through balance sheet composition.
Due to the complex nature and additional risk often associated with derivative hedging transactions, such as counterparty risk, it is the Company’s policy to continue its strategy of mitigating interest rate risk through balance sheet composition.
In the current higher interest rate environment, EVE sensitivity has increased across the industry, as loans and investments were originated and purchased during the historically low rate environment and, as a result the loans and investments have lost market value.
In the current higher interest rate environment, EVE sensitivity has increased across the industry, as loans and investments were originated and purchased during the historically low rate environment and, as a result the loans and investments have lost market value. EVE sensitivity may continue to increase if rates continue to rise, resulting in loans and investments losing further market value.
Market risk is the risk of loss from adverse changes in market prices and rates. Interest rate risk is the exposure to adverse changes in the net income of the Company as a result of changes in interest rates. The Company’s assets consist primarily of mortgage loans, which have longer maturities than the Company’s liabilities, which consist primarily of deposits.
Market risk is the risk of loss from adverse changes in market prices and/or interest rates. Interest rate risk is the exposure to adverse changes in the net income of the Company as a result of changes in interest rates.
At June 30, 2024, the Company’s cumulative one-year and three-year gap positions, the difference between the amount of interest-earning assets maturing or repricing within one year and three years and interest-bearing liabilities maturing or repricing within one year and three years, as a percentage of total interest-earning assets were positive 16.03% and 10.69% respectively.
At June 30, 2025, the Company’s cumulative one-year, two-year and three-year gap positions, the difference between the amount of interest-earning assets maturing or repricing within one, two and three years and interest-bearing liabilities maturing or repricing within one, two and three years, as a percentage of total interest-earning assets were positive 17.10%, 15.58% and 13.88%, respectively. 47 Index Certain shortcomings are inherent in this method of analysis.
Management will continue to monitor the EVE sensitivity and take corrective action, when applicable. Certain shortcomings are inherent in the methodology used in the above interest rate risk measurements. Modeling changes in EVE require the making of certain assumptions that may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates.
Modeling changes in EVE require the making of certain assumptions that may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. Gap Analysis.
These standard interest rate risk measures are described more fully below.
These standard interest rate risk measures are described more fully below. Factors beyond management’s control, such as market interest rates and competition, also have an impact on interest income and interest expense.
Changes in Market Interest Rates (Basis Points) (Dollars in thousands) Company EVE $ Change from par % Change from par EVE Ratio (1) Change (2) +300 bp $ 208,413 $ (89,336 ) (30.00 )% 8.25 % (264 )bp +200 bp 240,142 (57,607 ) (19.35 ) 9.27 (162 ) +100 bp 271,966 (25,783 ) (8.66 ) 10.22 (67 ) PAR 297,749 - - 10.89 - -100 bp 316,184 18,435 6.19 11.26 37 -200 bp 332,390 34,641 11.63 11.54 65 (1) Calculated as the estimated EVE divided by the present value of total assets.
Changes in Market Interest Rates (Basis Points) (Dollars in thousands) Company EVE $ Change from par % Change from par EVE Ratio (1) Change (2) +300 bp $ 259,295 $ (84,536 ) (24.59 )% 9.37 % (215 ) bp +200 bp 291,967 (51,864 ) (15.08 ) 10.29 (123 ) +100 bp 320,776 (23,055 ) (6.71 ) 11.02 (50 ) PAR 343,831 - - 11.52 - -100 bp 359,976 16,145 4.70 11.75 23 -200 bp 369,461 25,630 7.45 11.78 26 -300 bp 371,133 27,302 7.94 11.57 5 ( 1 ) Calculated as the estimated EVE divided by the present value of total assets.
Removed
EVE sensitivity may continue to increase if rates were to continue to rise, resulting in loans and investments losing further market value. As investments and loans mature, and the funds are reinvested at higher interest rates, the EVE sensitivity should improve.
Added
The Company’s assets consist primarily of mortgage loans, which have longer maturities than the Company’s liabilities, which consist primarily of deposits. The Company generally does not engage in any balance sheet derivative-based hedging transactions, such as balance sheet interest rate swaps and caps.
Added
This contemplates instantaneous rate shocks, and would result from the increase in interest rates and the impact it has on the assets and the short-term nature of the Company’s liabilities. Management will continue to monitor the EVE sensitivity and take corrective action, when applicable. Certain shortcomings are inherent in the methodology used in the above interest rate risk measurements.

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