Greene County Bancorp reports record quarterly net income of $12.5 million

Greene County Bancorp, Inc. (NASDAQ: GCBC) reported net income of $12.5 million for the three months ended September 30, 2026, a 41% increase from the prior-year quarter. The result, which represents $0.73 per basic and diluted share, marks a record high for the company.

The bank's primary subsidiary, Bank of Greene, changed its legal name from the Bank of Greene County effective September 14, 2026. Management stated the name change reflects the broader region served and has no impact on operations or consolidated financial statements. Shareholders will consider a related proposal at the annual meeting on November 7, 2026, to amend the company's charter to change its legal name to Greene Bancorp, Inc. The Nasdaq trading symbol and CUSIP number are not expected to change.

Total consolidated assets reached a record $3.2 billion at September 30, 2026, consisting primarily of $1.8 billion in net loans and $1.2 billion in securities. Consolidated deposits also hit a record high of $2.8 billion. Return on average assets was 1.61%, and return on average equity was 17.73% for the quarter.

Net interest income rose $4.4 million to $21.9 million for the three months ended September 30, 2026, compared with $17.5 million in the same period last year. The increase was driven by a $159.3 million rise in the average balance of interest-earning assets and a 16 basis point increase in their average yield. These gains were partially offset by a $101.8 million increase in the average balance of interest-bearing liabilities. The net interest margin expanded by 45 basis points to 2.93%, while the net interest rate spread increased by 46 basis points to 2.71%.

Deposit costs declined across several categories during the period. The cost of NOW deposits decreased by 39 basis points, certificates of deposit costs fell by 25 basis points, and savings and money market deposit costs dropped by 4 basis points. Management attributed the margin improvement to higher yields on loans and securities combined with lower deposit costs, which outweighed the decline in yields on interest-bearing bank balances and federal funds.

Pre-provision net income increased by $1.9 million, or 19.2%, to $12.1 million for the three months ended September 30, 2026, from $10.1 million in the prior-year period. This non-GAAP measure excludes the provision for credit losses.

Donald Gibson, President and CEO, noted that the quarter marked a milestone with the introduction of the Bank of Greene name and record earnings. The company continues to focus on prudent risk management and disciplined deposit pricing in response to market interest rates and competitive conditions.