10-Q · May 8, 2026
Greene County Bancorp reported a strong quarter, achieving a record net income of $10.5 million for Q3 2026, with diluted EPS of $0.62, representing substantial growth compared to $8.1 million and EPS of $0.51 in Q3…
Earnings analysis · 10-K
GCBC earnings analysis
Filed September 9, 2026 · Our reading of the company's report
The latest report
Greene County Bancorp delivered a strong fiscal 2026, with net income up 31.7% to $41.0 million, EPS rising to $2.41, and net interest margin expanding to 2.65%. Growth was led by commercial real estate lending and…
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Greene County Bancorp delivered a strong fiscal 2026, with net income up 31.7% to $41.0 million, EPS rising to $2.41, and net interest margin expanding to 2.65%. Growth was led by commercial real estate lending and securities, supported by deposit growth and disciplined funding costs, while capital and asset-quality metrics remain solid. The principal concerns are increasing exposure to non-owner-occupied commercial real estate, a modest deterioration in classified/problem loans, and reduced liquidity coverage of uninsured deposits.
Reported figures
- Earnings per share
- $2.41
- Segment
- Banking: $145.8 million of combined interest income and noninterest income; the Company operates as a single operating segment serving retail, municipal, and commercial customers in New York’s Hudson Valley and Capital District Regions.
What stood out
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Strong multi-year earnings acceleration
Net income increased 31.7% to $41.0 million from $31.1 million in fiscal 2025, while diluted EPS rose to $2.41 from $1.83. Over the three-year period, diluted EPS increased from $1.45 in 2024 to $2.41 in 2026.
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Material margin and efficiency improvement
Net interest income increased to $77.9 million from $60.1 million, driven by loan and securities growth and lower funding costs. Net interest margin expanded 46 basis points to 2.65% from 2.19%, and the efficiency ratio improved to 47.22% from 52.25%.
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Loan-led balance-sheet expansion
Net loans grew 7.7% to $1.7 billion, led by $92.3 million of commercial real estate growth, $24.7 million of commercial loan growth, and $11.3 million of home equity growth. Total assets increased 4.7% to $3.2 billion and deposits increased 2.8% to $2.7 billion.
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Focused regional banking franchise
The Company emphasizes relationship banking and conservative underwriting, stating that it does not engage in sub-prime lending or exotic loan products. It operated 19 full-service offices at June 30, 2026, versus 18 in each of the prior two years, across Greene, Columbia, Albany, Ulster, Rensselaer, and Saratoga Counties.
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Robust capital position
Capital generation remained strong: shareholders’ equity rose to $277.8 million from $238.8 million, book value per share increased to $16.32 from $14.03, and the consolidated total risk-based capital ratio was 17.9% versus 18.4% in the prior year. The Bank was categorized as “well capitalized.”
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Higher shareholder distributions
Capital returns increased through dividends, with $4.049 million paid in fiscal 2026 and a subsequent quarterly dividend increase to $0.11 per share, or a $0.44 annualized rate, representing a 10.0% increase from the prior $0.40 annual rate. The Company also repurchased 1,343 shares for $31,558 and retained authorization for 398,657 additional shares.
What to watch
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CRE concentration and credit migration
Commercial real estate represents 65.4% of gross loans, with 85.5% of commercial real estate loans non-owner occupied. Potential commercial and commercial real estate problem loans increased to $40.0 million from $39.4 million, while seven commercial real estate relationships were downgraded from pass due to deteriorating borrower cash flows and financial performance.
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Deposit liquidity exposure
Uninsured deposits after exclusions increased to $348.1 million, or 12.8% of total deposits, while uninsured-deposit coverage from immediately available liquidity declined to 119.6% from 128.4%. Cash and cash equivalents also fell $38.2 million to $144.9 million, increasing sensitivity to deposit outflows and funding markets.
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Interest-rate sensitivity
The filing identifies a declining-rate environment as the Company’s interest-rate risk, and its EVE analysis showed a 19.34% decline from par under an instantaneous +300-basis-point shock. Approximately 66.0% of the loan portfolio was adjustable-rate, while the Company states that its assets generally have longer maturities than its deposit-funded liabilities.
Management's outlook
No quantitative annual outlook or earnings guidance was provided in the 10-K; the filing discusses forward-looking risks and strategies but defers no specific financial targets.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.