United States
|
14-1809721
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification Number)
|
302 Main Street, Catskill, New York
|
12414
|
|
(Address of principal executive office)
|
(Zip code)
|
Title of class
|
Trading symbol
|
Name of exchange on which registered
|
Common Stock, $0.10 par value
|
GCBC
|
The Nasdaq Stock Market
|
Large accelerated filer ☐
|
Accelerated filer ☒
|
Emerging Growth Company ☐
|
Non-accelerated filer ☐
|
Smaller reporting company ☒
|
PART I.
|
FINANCIAL INFORMATION
|
|
Page
|
||
Item 1.
|
Financial Statements (unaudited)
|
|
3
|
||
4
|
||
5
|
||
6
|
||
7
|
||
8-30
|
||
Item 2.
|
31-43
|
|
Item 3.
|
44
|
|
Item 4.
|
44
|
|
PART II.
|
OTHER INFORMATION
|
|
Item 1.
|
44
|
|
Item 1A.
|
44
|
|
Item 2.
|
44
|
|
Item 3.
|
44
|
|
Item 4.
|
44
|
|
Item 5.
|
44
|
|
Item 6.
|
44
|
|
45
|
ASSETS
|
September 30, 2019
|
June 30, 2019
|
||||||
Total cash and cash equivalents
|
$
|
110,852
|
$
|
29,538
|
||||
Long term certificates of deposit
|
3,626
|
2,875
|
||||||
Securities available-for-sale, at fair value
|
159,263
|
122,728
|
||||||
Securities held-to-maturity, at amortized cost (fair value $315,322 at September 30, 2019; $313,613 at June 30, 2019)
|
304,582
|
304,208
|
||||||
Equity securities, at fair value
|
251
|
253
|
||||||
Federal Home Loan Bank stock, at cost
|
1,399
|
1,759
|
||||||
Loans
|
818,176
|
798,105
|
||||||
Allowance for loan losses
|
(13,444
|
)
|
(13,200
|
)
|
||||
Unearned origination fees and costs, net
|
807
|
833
|
||||||
Net loans receivable
|
805,539
|
785,738
|
||||||
Premises and equipment, net
|
13,336
|
13,255
|
||||||
Accrued interest receivable
|
5,970
|
5,853
|
||||||
Foreclosed real estate
|
303
|
53
|
||||||
Prepaid expenses and other assets
|
4,599
|
3,202
|
||||||
Total assets
|
$
|
1,409,720
|
$
|
1,269,462
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Noninterest-bearing deposits
|
$
|
115,474
|
$
|
107,469
|
||||
Interest-bearing deposits
|
1,147,736
|
1,013,100
|
||||||
Total deposits
|
1,263,210
|
1,120,569
|
||||||
Borrowings from Federal Home Loan Bank, short-term
|
-
|
8,000
|
||||||
Borrowings from Federal Home Loan Bank, long-term
|
13,600
|
13,600
|
||||||
Accrued expenses and other liabilities
|
16,381
|
14,924
|
||||||
Total liabilities
|
1,293,191
|
1,157,093
|
||||||
SHAREHOLDERS' EQUITY
|
||||||||
Preferred stock, Authorized - 1,000,000 shares; Issued - None
|
-
|
-
|
||||||
Common stock, par value $.10 per share; Authorized - 12,000,000 shares; Issued – 8,611,340; Outstanding – 8,537,814
|
861
|
861
|
||||||
Additional paid-in capital
|
11,017
|
11,017
|
||||||
Retained earnings
|
106,205
|
101,774
|
||||||
Accumulated other comprehensive loss
|
(1,277
|
)
|
(1,006
|
)
|
||||
Treasury stock, at cost 73,526 shares
|
(277
|
)
|
(277
|
)
|
||||
Total shareholders’ equity
|
116,529
|
112,369
|
||||||
Total liabilities and shareholders’ equity
|
$
|
1,409,720
|
$
|
1,269,462
|
2019
|
2018
|
|||||||
Interest income:
|
||||||||
Loans
|
$
|
9,405
|
$
|
8,298
|
||||
Investment securities - taxable
|
159
|
194
|
||||||
Mortgage-backed securities
|
1,244
|
1,114
|
||||||
Investment securities - tax exempt
|
1,602
|
1,360
|
||||||
Interest-bearing deposits and federal funds sold
|
198
|
31
|
||||||
Total interest income
|
12,608
|
10,997
|
||||||
Interest expense:
|
||||||||
Interest on deposits
|
2,050
|
1,036
|
||||||
Interest on borrowings
|
58
|
304
|
||||||
Total interest expense
|
2,108
|
1,340
|
||||||
Net interest income
|
10,500
|
9,657
|
||||||
Provision for loan losses
|
551
|
354
|
||||||
Net interest income after provision for loan losses
|
9,949
|
9,303
|
||||||
Noninterest income:
|
||||||||
Service charges on deposit accounts
|
1,125
|
1,037
|
||||||
Debit card fees
|
743
|
640
|
||||||
Investment services
|
145
|
115
|
||||||
E-commerce fees
|
35
|
37
|
||||||
Other operating income
|
218
|
223
|
||||||
Total noninterest income
|
2,266
|
2,052
|
||||||
Noninterest expense:
|
||||||||
Salaries and employee benefits
|
3,942
|
3,478
|
||||||
Occupancy expense
|
466
|
402
|
||||||
Equipment and furniture expense
|
281
|
214
|
||||||
Service and data processing fees
|
574
|
495
|
||||||
Computer software, supplies and support
|
242
|
223
|
||||||
Advertising and promotion
|
116
|
120
|
||||||
FDIC insurance premiums
|
(39
|
)
|
127
|
|||||
Legal and professional fees
|
279
|
329
|
||||||
Other
|
561
|
573
|
||||||
Total noninterest expense
|
6,422
|
5,961
|
||||||
Income before provision for income taxes
|
5,793
|
5,394
|
||||||
Provision for income taxes
|
930
|
1,014
|
||||||
Net income
|
$
|
4,863
|
$
|
4,380
|
||||
Basic and diluted earnings per share
|
$
|
0.57
|
$
|
0.51
|
||||
Basic and diluted average shares outstanding
|
8,537,814
|
8,537,814
|
||||||
Dividends per share
|
$
|
0.11
|
$
|
0.10
|
2019
|
2018
|
|||||||
Net Income
|
$
|
4,863
|
$
|
4,380
|
||||
Other comprehensive loss:
|
||||||||
Unrealized holding loss on available-for-sale securities, net of income tax benefit of ($96) and ($27), respectively
|
(271
|
)
|
(76
|
)
|
||||
Total other comprehensive loss, net of taxes
|
(271
|
)
|
(76
|
)
|
||||
Comprehensive income
|
$
|
4,592
|
$
|
4,304
|
Common
Stock
|
Additional
Paid-In
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Loss
|
Treasury
Stock
|
Total
Shareholders'
Equity
|
|||||||||||||||||||
Balance at June 30, 2018
|
$
|
861
|
$
|
11,017
|
$
|
86,213
|
$
|
(1,623
|
)
|
$
|
(277
|
)
|
$
|
96,191
|
||||||||||
Impact of Adopting ASU 2016-01(1)
|
114
|
(114
|
)
|
-
|
||||||||||||||||||||
Dividends declared
|
(854
|
)
|
(854
|
)
|
||||||||||||||||||||
Net income
|
4,380
|
4,380
|
||||||||||||||||||||||
Other comprehensive loss, net of taxes
|
(76
|
)
|
(76
|
)
|
||||||||||||||||||||
Balance at September 30, 2018
|
$
|
861
|
$
|
11,017
|
$
|
89,853
|
$
|
(1,813
|
)
|
$
|
(277
|
)
|
$
|
99,641
|
Common
Stock
|
Additional
Paid-In
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Loss
|
Treasury
Stock
|
Total
Shareholders'
Equity
|
|||||||||||||||||||
Balance at June 30, 2019
|
$
|
861
|
$
|
11,017
|
$
|
101,774
|
$
|
(1,006
|
)
|
$
|
(277
|
)
|
$
|
112,369
|
||||||||||
Dividends declared
|
(432
|
)
|
(432
|
)
|
||||||||||||||||||||
Net income
|
4,863
|
4,863
|
||||||||||||||||||||||
Other comprehensive loss, net of taxes
|
(271
|
)
|
(271
|
)
|
||||||||||||||||||||
Balance at September 30, 2019
|
$
|
861
|
$
|
11,017
|
$
|
106,205
|
$
|
(1,277
|
)
|
$
|
(277
|
)
|
$
|
116,529
|
(1) |
See Note 9 Impact of Recent Accounting Pronouncements – cumulative effect of change in measurement of equity securities.
|
2019
|
2018
|
|||||||
Cash flows from operating activities:
|
||||||||
Net Income
|
$
|
4,863
|
$
|
4,380
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation
|
175
|
154
|
||||||
Deferred income tax benefit
|
(380
|
)
|
(388
|
)
|
||||
Net amortization of premiums and discounts
|
120
|
81
|
||||||
Net amortization of deferred loan costs and fees
|
143
|
110
|
||||||
Provision for loan losses
|
551
|
354
|
||||||
Net loss (gain) on equity securities
|
2
|
(15
|
)
|
|||||
(Income) losses on sale of foreclosed real estate
|
(76
|
)
|
9
|
|||||
Net increase in accrued income taxes
|
558
|
426
|
||||||
Net increase in accrued interest receivable
|
(117
|
)
|
(380
|
)
|
||||
Net (increase) decrease in prepaid and other assets
|
(1,450
|
)
|
255
|
|||||
Net increase (decrease) in other liabilities
|
1,428
|
(2,082
|
)
|
|||||
Net cash provided by operating activities
|
5,817
|
2,904
|
||||||
Cash flows from investing activities:
|
||||||||
Securities available-for-sale:
|
||||||||
Proceeds from maturities
|
30,178
|
32,825
|
||||||
Purchases of securities
|
(68,828
|
)
|
(32,921
|
)
|
||||
Principal payments on securities
|
1,739
|
1,191
|
||||||
Securities held-to-maturity:
|
||||||||
Proceeds from maturities
|
14,129
|
4,519
|
||||||
Purchases of securities
|
(21,466
|
)
|
(23,918
|
)
|
||||
Principal payments on securities
|
6,852
|
13,102
|
||||||
Net redemption (purchase) of Federal Home Loan Bank Stock
|
360
|
(2,602
|
)
|
|||||
Purchase of long term certificates of deposit
|
(751
|
)
|
-
|
|||||
Net increase in loans receivable
|
(20,710
|
)
|
(20,593
|
)
|
||||
Proceeds from sale of foreclosed real estate
|
41
|
65
|
||||||
Purchases of premises and equipment
|
(256
|
)
|
(117
|
)
|
||||
Net cash used by investing activities
|
(58,712
|
)
|
(28,449
|
)
|
||||
Cash flows from financing activities
|
||||||||
Net (decrease) increase in short-term advances
|
(8,000
|
)
|
58,800
|
|||||
Repayment of long-term FHLB advances
|
-
|
(1,000
|
)
|
|||||
Payment of cash dividends
|
(432
|
)
|
(854
|
)
|
||||
Net increase (decrease) in deposits
|
142,641
|
(22,773
|
)
|
|||||
Net cash provided by financing activities
|
134,209
|
34,173
|
||||||
Net increase in cash and cash equivalents
|
81,314
|
8,628
|
||||||
Cash and cash equivalents at beginning of period
|
29,538
|
26,504
|
||||||
Cash and cash equivalents at end of period
|
$
|
110,852
|
$
|
35,132
|
||||
Non-cash investing activities:
|
||||||||
Foreclosed loans transferred to foreclosed real estate
|
$
|
215
|
$
|
34
|
||||
Cash paid during period for:
|
||||||||
Interest
|
$
|
2,094
|
$
|
1,332
|
||||
Income taxes
|
$
|
752
|
$
|
975
|
(1) |
Basis of Presentation
|
(2) |
Nature of Operations
|
(3) |
Use of Estimates
|
(4) |
Securities
|
(In thousands)
|
Amortized Cost
|
Gross Unrealized
Gains
|
Gross Unrealized
Losses
|
Estimated
Fair Value
|
||||||||||||
Securities available-for-sale:
|
||||||||||||||||
U.S. government sponsored enterprises
|
$
|
4,517
|
$
|
28
|
$
|
-
|
$
|
4,545
|
||||||||
State and political subdivisions
|
120,630
|
346
|
-
|
120,976
|
||||||||||||
Mortgage-backed securities-residential
|
8,589
|
51
|
19
|
8,621
|
||||||||||||
Mortgage-backed securities-multi-family
|
20,256
|
323
|
1
|
20,578
|
||||||||||||
Corporate debt securities
|
4,512
|
61
|
30
|
4,543
|
||||||||||||
Total securities available-for-sale
|
158,504
|
809
|
50
|
159,263
|
||||||||||||
Securities held-to-maturity:
|
||||||||||||||||
U.S. government sponsored enterprises
|
2,000
|
-
|
12
|
1,988
|
||||||||||||
State and political subdivisions
|
155,729
|
6,383
|
70
|
162,042
|
||||||||||||
Mortgage-backed securities-residential
|
10,154
|
164
|
-
|
10,318
|
||||||||||||
Mortgage-backed securities-multi-family
|
132,795
|
4,257
|
2
|
137,050
|
||||||||||||
Corporate debt securities
|
1,480
|
12
|
28
|
1,464
|
||||||||||||
Other securities
|
2,424
|
36
|
-
|
2,460
|
||||||||||||
Total securities held-to-maturity
|
304,582
|
10,852
|
112
|
315,322
|
||||||||||||
Total securities
|
$
|
463,086
|
$
|
11,661
|
$
|
162
|
$
|
474,585
|
(In thousands)
|
Amortized Cost
|
Gross Unrealized
Gains
|
Gross Unrealized
Losses
|
Estimated
Fair Value
|
||||||||||||
Securities available-for-sale:
|
||||||||||||||||
U.S. government sponsored enterprises
|
$
|
5,522
|
$
|
31
|
$
|
-
|
$
|
5,553
|
||||||||
State and political subdivisions
|
95,782
|
788
|
-
|
96,570
|
||||||||||||
Mortgage-backed securities-residential
|
2,634
|
31
|
20
|
2,645
|
||||||||||||
Mortgage-backed securities-multi-family
|
16,151
|
259
|
-
|
16,410
|
||||||||||||
Corporate debt securities
|
1,513
|
37
|
-
|
1,550
|
||||||||||||
Total securities available-for-sale
|
121,602
|
1,146
|
20
|
122,728
|
||||||||||||
Securities held-to-maturity:
|
||||||||||||||||
U.S. government sponsored enterprises
|
9,249
|
1
|
14
|
9,236
|
||||||||||||
State and political subdivisions
|
152,358
|
6,212
|
23
|
158,547
|
||||||||||||
Mortgage-backed securities-residential
|
4,570
|
97
|
-
|
4,667
|
||||||||||||
Mortgage-backed securities-multi-family
|
134,970
|
3,122
|
17
|
138,075
|
||||||||||||
Corporate debt securities
|
1,478
|
18
|
25
|
1,471
|
||||||||||||
Other securities
|
1,583
|
34
|
-
|
1,617
|
||||||||||||
Total securities held-to-maturity
|
304,208
|
9,484
|
79
|
313,613
|
||||||||||||
Total securities
|
$
|
425,810
|
$
|
10,630
|
$
|
99
|
$
|
436,341
|
Less Than 12 Months
|
More Than 12 Months
|
Total
|
||||||||||||||||||||||||||||||||||
(In thousands, except number of securities)
|
Fair
Value
|
Unrealized
Losses
|
Number
of
Securities
|
Fair
Value
|
Unrealized
Losses
|
Number
of
Securities
|
Fair
Value
|
Unrealized
Losses
|
Number
of
Securities
|
|||||||||||||||||||||||||||
Securities available-for-sale:
|
||||||||||||||||||||||||||||||||||||
Mortgage-backed securities-residential
|
$
|
3,078
|
$
|
2
|
1
|
$
|
803
|
$
|
17
|
1
|
$
|
3,881
|
$
|
19
|
2
|
|||||||||||||||||||||
Mortgage-backed securities-multi-family
|
3,085
|
1
|
1
|
-
|
-
|
-
|
3,085
|
1
|
1
|
|||||||||||||||||||||||||||
Corporate debt securities
|
2,970
|
30
|
5
|
-
|
-
|
-
|
2,970
|
30
|
5
|
|||||||||||||||||||||||||||
Total securities available-for-sale
|
9,133
|
33
|
7
|
803
|
17
|
1
|
9,936
|
50
|
8
|
|||||||||||||||||||||||||||
Securities held-to-maturity:
|
||||||||||||||||||||||||||||||||||||
U.S. government sponsored enterprises
|
-
|
-
|
-
|
1,988
|
12
|
1
|
1,988
|
12
|
1
|
|||||||||||||||||||||||||||
State and political subdivisions
|
10,966
|
58
|
94
|
2,424
|
12
|
16
|
13,390
|
70
|
110
|
|||||||||||||||||||||||||||
Mortgage-backed securities-multi-family
|
2,764
|
2
|
2
|
-
|
-
|
-
|
2,764
|
2
|
2
|
|||||||||||||||||||||||||||
Corporate debt securities
|
-
|
-
|
-
|
452
|
28
|
1
|
452
|
28
|
1
|
|||||||||||||||||||||||||||
Total securities held-to-maturity
|
13,730
|
60
|
96
|
4,864
|
52
|
18
|
18,594
|
112
|
114
|
|||||||||||||||||||||||||||
Total securities
|
$
|
22,863
|
$
|
93
|
103
|
$
|
5,667
|
$
|
69
|
19
|
$
|
28,530
|
$
|
162
|
122
|
Less Than 12 Months
|
More Than 12 Months
|
Total
|
||||||||||||||||||||||||||||||||||
(In thousands, except number of securities)
|
Fair
Value
|
Unrealized
Losses
|
Number
of
Securities
|
Fair
Value
|
Unrealized
Losses
|
Number
of
Securities
|
Fair
Value
|
Unrealized
Losses
|
Number
of
Securities
|
|||||||||||||||||||||||||||
Securities available-for-sale:
|
||||||||||||||||||||||||||||||||||||
Mortgage-backed securities-residential
|
$
|
856
|
$
|
20
|
1
|
$
|
-
|
$
|
-
|
-
|
$
|
856
|
$
|
20
|
1
|
|||||||||||||||||||||
Total securities available-for-sale
|
856
|
20
|
1
|
-
|
-
|
-
|
856
|
20
|
1
|
|||||||||||||||||||||||||||
Securities held-to-maturity:
|
||||||||||||||||||||||||||||||||||||
U.S. government sponsored enterprises
|
-
|
-
|
-
|
1,986
|
14
|
1
|
1,986
|
14
|
1
|
|||||||||||||||||||||||||||
State and political subdivisions
|
3,541
|
17
|
22
|
2,111
|
6
|
13
|
5,652
|
23
|
35
|
|||||||||||||||||||||||||||
Mortgage-backed securities-multi-family
|
1,250
|
6
|
1
|
3,799
|
11
|
3
|
5,049
|
17
|
4
|
|||||||||||||||||||||||||||
Corporate debt securities
|
-
|
-
|
-
|
452
|
25
|
1
|
452
|
25
|
1
|
|||||||||||||||||||||||||||
Total securities held-to-maturity
|
4,791
|
23
|
23
|
8,348
|
56
|
18
|
13,139
|
79
|
41
|
|||||||||||||||||||||||||||
Total securities
|
$
|
5,647
|
$
|
43
|
24
|
$
|
8,348
|
$
|
56
|
18
|
$
|
13,995
|
$
|
99
|
42
|
Available-for-sale debt securities
|
Amortized Cost
|
Fair Value
|
||||||
Within one year
|
$
|
125,147
|
$
|
125,521
|
||||
After one year through five years
|
510
|
526
|
||||||
After five years through ten years
|
2,002
|
2,046
|
||||||
After ten years
|
2,000
|
1,971
|
||||||
Total available-for-sale debt securities
|
129,659
|
130,064
|
||||||
Mortgage-backed securities
|
28,845
|
29,199
|
||||||
Total available-for-sale securities
|
158,504
|
159,263
|
||||||
Held-to-maturity debt securities
|
||||||||
Within one year
|
25,105
|
25,395
|
||||||
After one year through five years
|
74,861
|
76,755
|
||||||
After five years through ten years
|
43,093
|
45,660
|
||||||
After ten years
|
18,574
|
20,144
|
||||||
Total held-to-maturity debt securities
|
161,633
|
167,954
|
||||||
Mortgage-backed securities
|
142,949
|
147,368
|
||||||
Total held-to-maturity securities
|
304,582
|
315,322
|
||||||
Total debt securities
|
$
|
463,086
|
$
|
474,585
|
(5) |
Loans and Allowance for Loan Losses
|
(In thousands)
|
September 30, 2019
|
June 30, 2019
|
||||||
Residential real estate:
|
||||||||
Residential real estate
|
$
|
267,245
|
$
|
267,802
|
||||
Residential construction and land
|
8,377
|
7,462
|
||||||
Multi-family
|
25,021
|
24,592
|
||||||
Commercial real estate:
|
||||||||
Commercial real estate
|
332,185
|
329,668
|
||||||
Commercial construction
|
48,751
|
36,361
|
||||||
Consumer loan:
|
||||||||
Home equity
|
23,288
|
23,185
|
||||||
Consumer installment
|
5,677
|
5,481
|
||||||
Commercial loans
|
107,632
|
103,554
|
||||||
Total gross loans
|
818,176
|
798,105
|
||||||
Allowance for loan losses
|
(13,444
|
)
|
(13,200
|
)
|
||||
Unearned origination fees and costs, net
|
807
|
833
|
||||||
Loans receivable, net
|
$
|
805,539
|
$
|
785,738
|
(In thousands)
|
Performing
|
Watch
|
Special Mention
|
Substandard
|
Total
|
|||||||||||||||
Residential real estate
|
$
|
264,257
|
$
|
496
|
$
|
209
|
$
|
2,283
|
$
|
267,245
|
||||||||||
Residential construction and land
|
8,377
|
-
|
-
|
-
|
8,377
|
|||||||||||||||
Multi-family
|
23,127
|
-
|
1,759
|
135
|
25,021
|
|||||||||||||||
Commercial real estate
|
321,306
|
161
|
7,569
|
3,149
|
332,185
|
|||||||||||||||
Commercial construction
|
43,957
|
-
|
4,692
|
102
|
48,751
|
|||||||||||||||
Home equity
|
22,624
|
75
|
-
|
589
|
23,288
|
|||||||||||||||
Consumer installment
|
5,659
|
18
|
-
|
-
|
5,677
|
|||||||||||||||
Commercial loans
|
105,389
|
-
|
1,936
|
307
|
107,632
|
|||||||||||||||
Total gross loans
|
$
|
794,697
|
$
|
750
|
$
|
16,165
|
$
|
6,564
|
$
|
818,176
|
(In thousands)
|
Performing
|
Watch
|
Special
Mention
|
Substandard
|
Total
|
|||||||||||||||
Residential real estate
|
$
|
264,138
|
$
|
874
|
$
|
86
|
$
|
2,704
|
$
|
267,802
|
||||||||||
Residential construction and land
|
7,462
|
-
|
-
|
-
|
7,462
|
|||||||||||||||
Multi-family
|
22,544
|
137
|
1,835
|
76
|
24,592
|
|||||||||||||||
Commercial real estate
|
318,703
|
616
|
7,435
|
2,914
|
329,668
|
|||||||||||||||
Commercial construction
|
36,259
|
-
|
-
|
102
|
36,361
|
|||||||||||||||
Home equity
|
22,392
|
20
|
-
|
773
|
23,185
|
|||||||||||||||
Consumer installment
|
5,461
|
14
|
-
|
6
|
5,481
|
|||||||||||||||
Commercial loans
|
102,103
|
261
|
1,082
|
108
|
103,554
|
|||||||||||||||
Total gross loans
|
$
|
779,062
|
$
|
1,922
|
$
|
10,438
|
$
|
6,683
|
$
|
798,105
|
(In thousands)
|
30-59 days
past due
|
60-89 days
past due
|
90 days or
more past
due
|
Total past
due
|
Current
|
Total Loans
|
Loans on
Non-accrual
|
|||||||||||||||||||||
Residential real estate
|
$
|
1,906
|
$
|
212
|
$
|
986
|
$
|
3,104
|
$
|
264,141
|
$
|
267,245
|
$
|
2,026
|
||||||||||||||
Residential construction and land
|
-
|
-
|
-
|
-
|
8,377
|
8,377
|
-
|
|||||||||||||||||||||
Multi-family
|
-
|
-
|
134
|
134
|
24,887
|
25,021
|
134
|
|||||||||||||||||||||
Commercial real estate
|
1,083
|
474
|
114
|
1,671
|
330,514
|
332,185
|
847
|
|||||||||||||||||||||
Commercial construction
|
-
|
-
|
-
|
-
|
48,751
|
48,751
|
-
|
|||||||||||||||||||||
Home equity
|
124
|
75
|
243
|
442
|
22,846
|
23,288
|
268
|
|||||||||||||||||||||
Consumer installment
|
66
|
18
|
-
|
84
|
5,593
|
5,677
|
-
|
|||||||||||||||||||||
Commercial loans
|
174
|
-
|
237
|
411
|
107,221
|
107,632
|
247
|
|||||||||||||||||||||
Total gross loans
|
$
|
3,353
|
$
|
779
|
$
|
1,714
|
$
|
5,846
|
$
|
812,330
|
$
|
818,176
|
$
|
3,522
|
(In thousands)
|
30-59
days
past due
|
60-89
days
past due
|
90 days
or more
past due
|
Total
past due
|
Current
|
Total Loans
|
Loans on
Non-
accrual
|
|||||||||||||||||||||
Residential real estate
|
$
|
2,144
|
$
|
870
|
$
|
1,385
|
$
|
4,399
|
$
|
263,403
|
$
|
267,802
|
$
|
2,474
|
||||||||||||||
Residential construction and land
|
-
|
-
|
-
|
-
|
7,462
|
7,462
|
-
|
|||||||||||||||||||||
Multi-family
|
1
|
137
|
-
|
138
|
24,454
|
24,592
|
-
|
|||||||||||||||||||||
Commercial real estate
|
280
|
1,108
|
102
|
1,490
|
328,178
|
329,668
|
598
|
|||||||||||||||||||||
Commercial construction
|
-
|
-
|
-
|
-
|
36,361
|
36,361
|
-
|
|||||||||||||||||||||
Home equity
|
16
|
136
|
309
|
461
|
22,724
|
23,185
|
452
|
|||||||||||||||||||||
Consumer installment
|
32
|
14
|
6
|
52
|
5,429
|
5,481
|
6
|
|||||||||||||||||||||
Commercial loans
|
430
|
342
|
28
|
800
|
102,754
|
103,554
|
108
|
|||||||||||||||||||||
Total gross loans
|
$
|
2,903
|
$
|
2,607
|
$
|
1,830
|
$
|
7,340
|
$
|
790,765
|
$
|
798,105
|
$
|
3,638
|
(In thousands)
|
2019
|
2018
|
||||||
Interest income that would have been recorded if loans had been performing in accordance with original terms
|
$
|
101
|
$
|
71
|
||||
Interest income that was recorded on nonaccrual loans
|
50
|
32
|
At September 30, 2019
|
For the three months ended
September 30, 2019
|
|||||||||||||||||||
(In thousands)
|
Recorded
Investment
|
Unpaid
Principal
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
|||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Residential real estate
|
$
|
674
|
$
|
674
|
$
|
-
|
$
|
692
|
$
|
30
|
||||||||||
Commercial real estate
|
697
|
697
|
-
|
704
|
7
|
|||||||||||||||
Home equity
|
153
|
153
|
-
|
266
|
-
|
|||||||||||||||
Commercial loans
|
135
|
135
|
-
|
137
|
-
|
|||||||||||||||
Total impaired loans with no allowance
|
1,659
|
1,659
|
-
|
1,799
|
37
|
|||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Residential real estate
|
830
|
830
|
91
|
1,087
|
24
|
|||||||||||||||
Commercial construction
|
102
|
102
|
2
|
102
|
-
|
|||||||||||||||
Home equity
|
321
|
321
|
73
|
330
|
5
|
|||||||||||||||
Commercial loans
|
130
|
130
|
12
|
130
|
1
|
|||||||||||||||
Total impaired loans with allowance
|
1,383
|
1,383
|
178
|
1,649
|
30
|
|||||||||||||||
Total impaired:
|
||||||||||||||||||||
Residential real estate
|
1,504
|
1,504
|
91
|
1,779
|
54
|
|||||||||||||||
Commercial real estate
|
697
|
697
|
-
|
704
|
7
|
|||||||||||||||
Commercial construction
|
102
|
102
|
2
|
102
|
-
|
|||||||||||||||
Home equity
|
474
|
474
|
73
|
596
|
5
|
|||||||||||||||
Commercial loans
|
265
|
265
|
12
|
267
|
1
|
|||||||||||||||
Total impaired loans
|
$
|
3,042
|
$
|
3,042
|
$
|
178
|
$
|
3,448
|
$
|
67
|
At June 30, 2019
|
For the three months ended
September 30, 2018
|
|||||||||||||||||||
(In thousands)
|
Recorded
Investment
|
Unpaid
Principal
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
|||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Residential real estate
|
$
|
727
|
$
|
727
|
$
|
-
|
$
|
7
|
$
|
3
|
||||||||||
Commercial real estate
|
717
|
717
|
-
|
796
|
8
|
|||||||||||||||
Home equity
|
309
|
309
|
-
|
224
|
-
|
|||||||||||||||
Commercial loans
|
141
|
141
|
-
|
157
|
-
|
|||||||||||||||
Impaired loans with no allowance
|
1,894
|
1,894
|
-
|
1,184
|
11
|
|||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Residential real estate
|
1,420
|
1,420
|
188
|
1,855
|
23
|
|||||||||||||||
Commercial real estate
|
-
|
-
|
-
|
365
|
-
|
|||||||||||||||
Commercial construction
|
102
|
102
|
2
|
176
|
-
|
|||||||||||||||
Home equity
|
348
|
348
|
59
|
322
|
4
|
|||||||||||||||
Commercial Loans
|
130
|
130
|
13
|
-
|
-
|
|||||||||||||||
Impaired loans with allowance
|
2,000
|
2,000
|
262
|
2,718
|
27
|
|||||||||||||||
Total impaired:
|
||||||||||||||||||||
Residential real estate
|
2,147
|
2,147
|
188
|
1,862
|
26
|
|||||||||||||||
Commercial real estate
|
717
|
717
|
-
|
1,161
|
8
|
|||||||||||||||
Commercial construction
|
102
|
102
|
2
|
176
|
-
|
|||||||||||||||
Home equity
|
657
|
657
|
59
|
546
|
4
|
|||||||||||||||
Commercial loans
|
271
|
271
|
13
|
157
|
-
|
|||||||||||||||
Total impaired loans
|
$
|
3,894
|
$
|
3,894
|
$
|
262
|
$
|
3,902
|
$
|
38
|
Activity for the three months ended September 30, 2019
|
||||||||||||||||||||
(In thousands)
|
Balance at
June 30, 2019
|
Charge-offs
|
Recoveries
|
Provision
|
Balance at
September 30,
2019
|
|||||||||||||||
Residential real estate
|
$
|
2,026
|
$
|
53
|
$
|
-
|
$
|
(461
|
)
|
$
|
1,512
|
|||||||||
Residential construction and land
|
87
|
-
|
-
|
12
|
99
|
|||||||||||||||
Multi-family
|
180
|
-
|
-
|
25
|
205
|
|||||||||||||||
Commercial real estate
|
7,110
|
-
|
-
|
49
|
7,159
|
|||||||||||||||
Commercial construction
|
872
|
-
|
-
|
419
|
1,291
|
|||||||||||||||
Home equity
|
314
|
-
|
-
|
(7
|
)
|
307
|
||||||||||||||
Consumer installment
|
250
|
109
|
24
|
154
|
319
|
|||||||||||||||
Commercial loans
|
2,361
|
199
|
30
|
360
|
2,552
|
|||||||||||||||
Total
|
$
|
13,200
|
$
|
361
|
$
|
54
|
$
|
551
|
$
|
13,444
|
Allowance for Loan Losses
|
Loans Receivable
|
|||||||||||||||
Ending Balance At September 30, 2019
Impairment Analysis
|
Ending Balance At September 30, 2019
Impairment Analysis
|
|||||||||||||||
(In thousands)
|
Individually
Evaluated
|
Collectively
Evaluated
|
Individually
Evaluated
|
Collectively
Evaluated
|
||||||||||||
Residential real estate
|
$
|
91
|
$
|
1,421
|
$
|
1,504
|
$
|
265,741
|
||||||||
Residential construction and land
|
-
|
99
|
-
|
8,377
|
||||||||||||
Multi-family
|
-
|
205
|
-
|
25,021
|
||||||||||||
Commercial real estate
|
-
|
7,159
|
697
|
331,488
|
||||||||||||
Commercial construction
|
2
|
1,289
|
102
|
48,649
|
||||||||||||
Home equity
|
73
|
234
|
474
|
22,814
|
||||||||||||
Consumer installment
|
-
|
319
|
-
|
5,677
|
||||||||||||
Commercial loans
|
12
|
2,540
|
265
|
107,367
|
||||||||||||
Unallocated
|
-
|
-
|
-
|
-
|
||||||||||||
Total
|
$
|
178
|
$
|
13,266
|
$
|
3,042
|
$
|
815,134
|
Activity for the three months ended September 30, 2018
|
||||||||||||||||||||
(In thousands)
|
Balance at
June 30, 2018
|
Charge-offs
|
Recoveries
|
Provision
|
Balance at
September 30,
2018
|
|||||||||||||||
Residential real estate
|
$
|
2,116
|
$
|
21
|
$
|
13
|
$
|
-
|
$
|
2,108
|
||||||||||
Residential construction and land
|
114
|
-
|
-
|
2
|
116
|
|||||||||||||||
Multi-family
|
162
|
-
|
-
|
9
|
171
|
|||||||||||||||
Commercial real estate
|
5,979
|
-
|
-
|
44
|
6,023
|
|||||||||||||||
Commercial construction
|
950
|
-
|
-
|
7
|
957
|
|||||||||||||||
Home equity
|
317
|
-
|
-
|
-
|
317
|
|||||||||||||||
Consumer installment
|
224
|
99
|
37
|
67
|
229
|
|||||||||||||||
Commercial loans
|
2,128
|
-
|
-
|
5
|
2,133
|
|||||||||||||||
Unallocated
|
34
|
-
|
-
|
220
|
254
|
|||||||||||||||
Total
|
$
|
12,024
|
$
|
120
|
$
|
50
|
$
|
354
|
$
|
12,308
|
Allowance for Loan Losses
|
Loans Receivable
|
|||||||||||||||
Ending Balance June 30, 2019
Impairment Analysis
|
Ending Balance June 30, 2019
Impairment Analysis
|
|||||||||||||||
(In thousands)
|
Individually
Evaluated
|
Collectively
Evaluated
|
Individually
Evaluated
|
Collectively
Evaluated
|
||||||||||||
Residential real estate
|
$
|
188
|
$
|
1,838
|
$
|
2,147
|
$
|
265,655
|
||||||||
Residential construction and land
|
-
|
87
|
-
|
7,462
|
||||||||||||
Multi-family
|
-
|
180
|
-
|
24,592
|
||||||||||||
Commercial real estate
|
-
|
7,110
|
717
|
328,951
|
||||||||||||
Commercial construction
|
2
|
870
|
102
|
36,259
|
||||||||||||
Home equity
|
59
|
255
|
657
|
22,528
|
||||||||||||
Consumer installment
|
-
|
250
|
-
|
5,481
|
||||||||||||
Commercial loans
|
13
|
2,348
|
271
|
103,283
|
||||||||||||
Unallocated
|
-
|
-
|
-
|
-
|
||||||||||||
Total
|
$
|
262
|
$
|
12,938
|
$
|
3,894
|
$
|
794,211
|
(in thousands)
|
September 30, 2019
|
June 30, 2019
|
||||||
Residential real estate
|
$
|
303
|
$
|
53
|
||||
Total foreclosed real estate
|
$
|
303
|
$
|
53
|
(6) |
Fair Value Measurements and Fair Value of Financial Instruments
|
Fair Value Measurements Using
|
||||||||||||||||
Quoted
Prices In
Active Markets
For Identical
Assets
|
Significant
Other
Observable
Inputs
|
Significant
Unobservable
Inputs
|
||||||||||||||
(In thousands)
|
September 30, 2019
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Assets:
|
||||||||||||||||
U.S. Government sponsored enterprises
|
$
|
4,545
|
$
|
-
|
$
|
4,545
|
$
|
-
|
||||||||
State and political subdivisions
|
120,976
|
-
|
120,976
|
-
|
||||||||||||
Mortgage-backed securities-residential
|
8,621
|
-
|
8,621
|
-
|
||||||||||||
Mortgage-backed securities-multi-family
|
20,578
|
-
|
20,578
|
-
|
||||||||||||
Corporate debt securities
|
4,543
|
4,543
|
-
|
-
|
||||||||||||
Securities available-for-sale
|
159,263
|
$
|
4,543
|
$
|
154,720
|
-
|
||||||||||
Equity securities
|
251
|
251
|
-
|
-
|
||||||||||||
Total securities measured at fair value
|
$
|
159,514
|
$
|
4,794
|
$
|
154,720
|
$
|
-
|
Fair Value Measurements Using
|
||||||||||||||||
Quoted Prices
In Active
Markets For
Identical Assets
|
Significant
Other Observable
Inputs
|
Significant
Unobservable
Inputs
|
||||||||||||||
(In thousands)
|
June 30, 2019
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Assets:
|
||||||||||||||||
U.S. Government sponsored enterprises
|
$
|
5,553
|
$
|
-
|
$
|
5,553
|
$
|
-
|
||||||||
State and political subdivisions
|
96,570
|
-
|
96,570
|
-
|
||||||||||||
Mortgage-backed securities-residential
|
2,645
|
-
|
2,645
|
-
|
||||||||||||
Mortgage-backed securities-multi-family
|
16,410
|
-
|
16,410
|
-
|
||||||||||||
Corporate debt securities
|
1,550
|
1,550
|
-
|
-
|
||||||||||||
Securities available-for-sale
|
122,728
|
1,550
|
121,178
|
-
|
||||||||||||
Equity securities
|
253
|
253
|
-
|
-
|
||||||||||||
Total securities measured at fair value
|
$
|
122,981
|
$
|
1,803
|
$
|
121,178
|
$
|
-
|
Fair Value Measurements Using
|
||||||||||||||||||||||||
(In thousands)
|
Recorded
Investment
|
Related
Allowance
|
Fair Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||||||||
September 30, 2019
|
||||||||||||||||||||||||
Impaired loans
|
$
|
1,547
|
$
|
178
|
$
|
1,369
|
$
|
-
|
$
|
-
|
$
|
1,369
|
||||||||||||
Foreclosed real estate
|
303
|
-
|
303
|
-
|
-
|
303
|
||||||||||||||||||
June 30, 2019
|
||||||||||||||||||||||||
Impaired loans
|
$
|
2,335
|
$
|
262
|
$
|
2,073
|
$
|
-
|
$
|
-
|
$
|
2,073
|
||||||||||||
Foreclosed real estate
|
53
|
-
|
53
|
-
|
-
|
53
|
(Dollars in thousands)
|
Fair Value
|
Valuation Technique
|
Unobservable Input
|
Range
|
Weighted
Average
|
|||||||||
September 30, 2019
|
||||||||||||||
Impaired Loans
|
$
|
703
|
Appraisal of collateral(1)
|
Appraisal adjustments(2)
|
27.03%-41.67
|
%
|
35.97
|
%
|
||||||
Liquidation expenses(3)
|
3.98%-5.49
|
%
|
4.43
|
%
|
||||||||||
666
|
Discounted cash flow
|
Discount rate
|
4.19%-8.66
|
%
|
6.07
|
%
|
||||||||
Foreclosed real estate
|
303
|
Appraisal of collateral(1)
|
Appraisal adjustments(2)
|
0.00-0.00
|
%
|
0.00
|
%
|
|||||||
Liquidation expenses(3)
|
6.80
|
%
|
6.80
|
%
|
||||||||||
June 30, 2019
|
||||||||||||||
Impaired loans
|
$
|
1,403
|
Appraisal of collateral(1)
|
Appraisal adjustments(2)
|
0.00%-33.73
|
%
|
24.48
|
%
|
||||||
Liquidation expenses(3)
|
3.98%-6.00
|
% |
4.53
|
% |
||||||||||
670
|
Discounted cash flow
|
Discount rate
|
4.19%-8.66
|
% |
6.07
|
% |
||||||||
Foreclosed real estate
|
53
|
Appraisal of collateral(1)
|
Appraisal adjustments(2)
|
0.00%-0.00
|
% |
0.00
|
% |
|||||||
Liquidation expenses(3)
|
10.41
|
% |
10.41
|
%
|
(1) |
Fair value is generally determined through independent third-party appraisals of the underlying collateral, which generally includes various Level 3 inputs which are not observable.
|
(2) |
Appraisals may be adjusted downwards by management for qualitative factors such as economic conditions. Higher downward adjustments are caused by negative changes to the collateral or conditions in the real estate market, actual
offers or sales contracts received or age of the appraisal.
|
(3) |
Appraisals are adjusted downwards by management for qualitative factors such as the estimated costs to liquidate the collateral.
|
(In thousands)
|
September 30, 2019
|
Fair Value Measurements Using
|
||||||||||||||||||
Carrying
Amount
|
Fair Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||||||
Cash and cash equivalents
|
$
|
110,852
|
$
|
110,852
|
$
|
110,852
|
$
|
-
|
$
|
-
|
||||||||||
Long term certificate of deposit
|
3,626
|
3,626
|
3,626
|
-
|
-
|
|||||||||||||||
Securities available-for-sale
|
159,263
|
159,263
|
4,543
|
154,720
|
-
|
|||||||||||||||
Securities held-to-maturity
|
304,582
|
315,322
|
-
|
315,322
|
-
|
|||||||||||||||
Equity securities
|
251
|
251
|
251
|
-
|
||||||||||||||||
Federal Home Loan Bank stock
|
1,399
|
1,399
|
-
|
1,399
|
-
|
|||||||||||||||
Net loans receivable
|
805,539
|
805,814
|
-
|
-
|
805,814
|
|||||||||||||||
Accrued interest receivable
|
5,970
|
5,970
|
-
|
5,970
|
-
|
|||||||||||||||
Deposits
|
1,263,210
|
1,263,336
|
-
|
1,263,336
|
-
|
|||||||||||||||
Borrowings from Federal Home Loan Bank
|
13,600
|
13,572 |
-
|
13,572 |
-
|
|||||||||||||||
Accrued interest payable
|
124
|
124
|
-
|
124
|
-
|
(In thousands)
|
June 30, 2019
|
Fair Value Measurements Using
|
||||||||||||||||||
Carrying
Amount
|
Fair Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||||||
Cash and cash equivalents
|
$
|
29,538
|
$
|
29,538
|
$
|
29,538
|
$
|
-
|
$
|
-
|
||||||||||
Long term certificate of deposit
|
2,875
|
2,875
|
2,875
|
-
|
-
|
|||||||||||||||
Securities available-for-sale
|
122,728
|
122,728
|
1,550
|
121,178
|
-
|
|||||||||||||||
Securities held-to-maturity
|
304,208
|
313,613
|
-
|
313,613
|
-
|
|||||||||||||||
Equity Securities
|
253
|
253
|
253
|
-
|
-
|
|||||||||||||||
Federal Home Loan Bank stock
|
1,759
|
1,759
|
-
|
1,759
|
-
|
|||||||||||||||
Net loans receivable
|
785,738
|
781,614
|
-
|
-
|
781,614
|
|||||||||||||||
Accrued interest receivable
|
5,853
|
5,853
|
-
|
5,853
|
-
|
|||||||||||||||
Deposits
|
1,120,569
|
1,120,632
|
-
|
1,120,632
|
-
|
|||||||||||||||
Borrowings from Federal Home Loan Bank
|
21,600
|
21,534
|
-
|
21,534
|
-
|
|||||||||||||||
Accrued interest payable
|
110
|
110
|
-
|
110
|
-
|
(7)
|
Earnings Per Share
|
For the three months ended September 30,
|
||||||||
2019
|
2018
|
|||||||
Net Income
|
$
|
4,863,000
|
$
|
4,380,000
|
||||
Weighted Average Shares – Basic
|
8,537,814
|
8,537,814
|
||||||
Weighted Average Shares - Diluted
|
8,537,814
|
8,537,814
|
||||||
Earnings per share - Basic
|
$
|
0.57
|
$
|
0.51
|
||||
Earnings per share - Diluted
|
$
|
0.57
|
$
|
0.51
|
(8)
|
Dividends
|
(9)
|
Impact of Recent Accounting Pronouncements
|
(10) |
Employee Benefit Plans
|
Three months ended
September 30,
|
||||||||
(In thousands)
|
2019
|
2018
|
||||||
Interest cost
|
$
|
49
|
$
|
54
|
||||
Expected return on plan assets
|
(63
|
)
|
(59
|
)
|
||||
Amortization of net loss
|
40
|
35
|
||||||
Net periodic pension cost
|
$
|
26
|
$
|
30
|
(11) |
Stock-Based Compensation
|
2019
|
2018
|
|||||||
Number of options outstanding at beginning of year
|
1,711,600
|
1,634,160
|
||||||
Options granted
|
614,700
|
592,700
|
||||||
Options forfeited
|
(7,000
|
)
|
-
|
|||||
Options paid in cash
|
-
|
(484,760
|
)
|
|||||
Number of options outstanding at period end
|
2,319,300
|
1,742,100
|
(In thousands)
|
2019
|
2018
|
||||||
Cash paid out on options vested
|
$
|
-
|
$
|
1,704
|
||||
Compensation expense recognized
|
645
|
516
|
(12) |
Accumulated Other Comprehensive Loss
|
(In thousands)
|
Unrealized
gain (losses)
on securities
available-for-
sale
|
Pension
benefits
|
Total
|
|||||||||
Balance - June 30, 2018
|
$
|
10
|
$
|
(1,633
|
)
|
$
|
(1,623
|
)
|
||||
Other comprehensive loss before reclassification
|
(76
|
)
|
-
|
(76
|
)
|
|||||||
Other comprehensive loss for the three months ended September 30, 2018
|
(76
|
)
|
-
|
(76
|
)
|
|||||||
Reclassification for change in accounting(1)
|
(114
|
)
|
-
|
(114
|
)
|
|||||||
Balance - September 30, 2018
|
$
|
(180
|
)
|
$
|
(1,633
|
)
|
$
|
(1,813
|
)
|
|||
Balance - June 30, 2019
|
$
|
832
|
$
|
(1,838
|
)
|
$
|
(1,006
|
)
|
||||
Other comprehensive loss before reclassification
|
(271
|
)
|
-
|
(271
|
)
|
|||||||
Other comprehensive loss for the three months ended September 30, 2019
|
(271
|
)
|
-
|
(271
|
)
|
|||||||
Balance - September 30, 2019
|
$
|
561
|
$
|
(1,838
|
)
|
$
|
(1,277
|
)
|
(1) |
Adoption of ASU 2016-01 – cumulative effect of change in measurement of equity securities.
|
(13)
|
Revenue from Contracts with Customers
|
For the three months ended
September 30,
|
||||||||
(In thousands)
|
2019
|
2018
|
||||||
Service charges on deposit accounts
|
||||||||
Insufficient funds fees
|
$
|
1,019
|
$
|
930
|
||||
Deposit related fees
|
38
|
37
|
||||||
ATM/point of sale fees
|
68
|
70
|
||||||
Total service charges
|
1,125
|
1,037
|
||||||
Interchange fee income
|
||||||||
Debit card interchange fees
|
743
|
640
|
||||||
E-commerce fee income
|
||||||||
E-commerce fees
|
35
|
37
|
||||||
Investment services income
|
||||||||
Investment services
|
145
|
115
|
||||||
Sales of assets
|
||||||||
Net gain (loss) on sale of foreclosed real estate
|
76
|
(9
|
)
|
(14) |
Operating leases
|
(In thousands, except weighted-average information).
|
||||
Right-of-use assets
|
$
|
1,770
|
||
Lease liabilities
|
$
|
1,773
|
||
Operating lease cost
|
$
|
72
|
||
Variable lease cost
|
$
|
10
|
||
Operating outgoing cash flows from operating leases
|
$
|
78
|
||
Right-of-use assets obtained in exchange for new operating lease liabilities
|
$
|
1,840
|
||
Weighted-average remaining lease term (Years)
|
7.8
|
|||
Weighted-average discount rate
|
2.50
|
%
|
(in thousands)
|
||||
Within the twelve months ended September 30,
|
||||
2020
|
$
|
288
|
||
2021
|
283
|
|||
2022
|
245
|
|||
2023
|
205
|
|||
2024
|
218
|
|||
Thereafter
|
722
|
|||
Total undiscounted cash flow
|
1,961
|
|||
Less net present value adjustment
|
(188
|
)
|
||
Lease Liability
|
$
|
1,773
|
(15) |
Subsequent events
|
(a) |
changes in general market interest rates,
|
(b) |
general economic conditions, including unemployment rates and real estate values,
|
(c) |
legislative and regulatory changes,
|
(d) |
monetary and fiscal policies of the U.S. Treasury and the Federal Reserve,
|
(e) |
changes in the quality or composition of The Bank of Greene County’s loan portfolio or the consolidated investment portfolios of The Bank of Greene County and Greene County Bancorp, Inc.,
|
(f) |
deposit flows,
|
(g) |
competition, and
|
(h) |
demand for financial services in Greene County Bancorp, Inc.’s market area.
|
September 30, 2019
|
June 30, 2019
|
|||||||||||||||
(Dollars in thousands)
|
Balance
|
Percentage of
portfolio
|
Balance
|
Percentage of
portfolio
|
||||||||||||
Securities available-for-sale:
|
||||||||||||||||
U.S. government sponsored enterprises
|
$
|
4,545
|
1.0
|
%
|
$
|
5,553
|
1.3
|
%
|
||||||||
State and political subdivisions
|
120,976
|
26.1
|
96,570
|
22.6
|
||||||||||||
Mortgage-backed securities-residential
|
8,621
|
1.9
|
2,645
|
0.6
|
||||||||||||
Mortgage-backed securities-multifamily
|
20,578
|
4.4
|
16,410
|
3.8
|
||||||||||||
Corporate debt securities
|
4,543
|
1.0
|
1,550
|
0.4
|
||||||||||||
Total securities available-for-sale
|
159,263
|
34.4
|
122,728
|
28.7
|
||||||||||||
Securities held-to-maturity:
|
||||||||||||||||
U.S. government sponsored enterprises
|
2,000
|
0.4
|
9,249
|
2.2
|
||||||||||||
State and political subdivisions
|
155,729
|
33.6
|
152,358
|
35.7
|
||||||||||||
Mortgage-backed securities-residential
|
10,154
|
2.2
|
4,570
|
1.1
|
||||||||||||
Mortgage-backed securities-multifamily
|
132,795
|
28.6
|
134,970
|
31.6
|
||||||||||||
Corporate debt securities
|
1,480
|
0.3
|
1,478
|
0.3
|
||||||||||||
Other securities
|
2,424
|
0.5
|
1,583
|
0.4
|
||||||||||||
Total securities held-to-maturity
|
304,582
|
65.6
|
304,208
|
71.3
|
||||||||||||
Total securities
|
$
|
463,845
|
100.0
|
%
|
$
|
426,936
|
100.0
|
%
|
(Dollars in thousands)
|
September 30, 2019
|
June 30, 2019
|
||||||||||||||
Balance
|
Percentage of
Portfolio
|
Balance
|
Percentage of
Portfolio
|
|||||||||||||
Residential real estate
|
$
|
267,245
|
32.7
|
%
|
$
|
267,802
|
33.6
|
%
|
||||||||
Residential construction and land
|
8,377
|
1.0
|
7,462
|
0.9
|
||||||||||||
Multi-family
|
25,021
|
3.1
|
24,592
|
3.1
|
||||||||||||
Commercial real estate
|
332,185
|
40.6
|
329,668
|
41.3
|
||||||||||||
Commercial construction
|
48,751
|
5.9
|
36,361
|
4.5
|
||||||||||||
Home equity
|
23,288
|
2.8
|
23,185
|
2.9
|
||||||||||||
Consumer installment
|
5,677
|
0.7
|
5,481
|
0.7
|
||||||||||||
Commercial loans
|
107,632
|
13.2
|
103,554
|
13.0
|
||||||||||||
Total gross loans
|
818,176
|
100.0
|
%
|
798,105
|
100.0
|
%
|
||||||||||
Allowance for loan losses
|
(13,444
|
)
|
(13,200
|
)
|
||||||||||||
Deferred fees and costs
|
807
|
833
|
||||||||||||||
Total net loans
|
$
|
805,539
|
$
|
785,738
|
At or for the three months
ended September 30,
|
||||||||
(Dollars in thousands)
|
2019
|
2018
|
||||||
Balance at the beginning of the period
|
$
|
13,200
|
$
|
12,024
|
||||
Charge-offs:
|
||||||||
Residential real estate
|
53
|
21
|
||||||
Consumer installment
|
109
|
99
|
||||||
Commercial loans
|
199
|
-
|
||||||
Total loans charged off
|
361
|
120
|
||||||
Recoveries:
|
||||||||
Consumer installment
|
24
|
13
|
||||||
Commercial loans
|
30
|
37
|
||||||
Total recoveries
|
54
|
50
|
||||||
Net charge-offs
|
307
|
70
|
||||||
Provisions charged to operations
|
551
|
354
|
||||||
Balance at the end of the period
|
$
|
13,444
|
$
|
12,308
|
||||
Net charge-offs to average loans outstanding (annualized)
|
0.16
|
%
|
0.04
|
%
|
||||
Net charge-offs to nonperforming assets (annualized)
|
32.10
|
%
|
8.08
|
%
|
||||
Allowance for loan losses to nonperforming loans
|
381.71
|
%
|
363.39
|
%
|
||||
Allowance for loan losses to total loans receivable
|
1.64
|
%
|
1.67
|
%
|
(Dollars in thousands)
|
September 30,
2019
|
June 30,
2019
|
||||||
Nonaccruing loans:
|
||||||||
Residential real estate
|
$
|
2,026
|
$
|
2,474
|
||||
Multi-family
|
134
|
-
|
||||||
Commercial real estate
|
847
|
598
|
||||||
Home equity
|
268
|
452
|
||||||
Consumer installment
|
-
|
6
|
||||||
Commercial
|
247
|
108
|
||||||
Total nonaccruing loans
|
3,522
|
3,638
|
||||||
90 days & accruing
|
||||||||
Residential real estate
|
-
|
-
|
||||||
Total 90 days & accruing
|
-
|
-
|
||||||
Total nonperforming loans
|
3,522
|
3,638
|
||||||
Foreclosed real estate:
|
||||||||
Residential real estate
|
303
|
53
|
||||||
Total foreclosed real estate
|
303
|
53
|
||||||
Total nonperforming assets
|
$
|
3,825
|
$
|
3,691
|
||||
Troubled debt restructuring:
|
||||||||
Nonperforming (included above)
|
$
|
337
|
$
|
531
|
||||
Performing (accruing and excluded above)
|
1361
|
1,368
|
||||||
Total nonperforming assets as a percentage of total assets
|
0.27
|
% |
0.29
|
%
|
||||
Total nonperforming loans to net loans
|
0.44
|
%
|
0.46
|
%
|
(In thousands)
|
2019
|
2018
|
||||||
Interest income that would have been recorded if loans had been performing in accordance with original terms
|
$
|
101
|
$
|
71
|
||||
Interest income that was recorded on nonaccrual loans
|
50
|
32
|
(In thousands)
|
September 30, 2019
|
June 30, 2019
|
||||||
Balance of impaired loans, with a valuation allowance
|
$
|
1,383
|
$
|
2,000
|
||||
Allowances relating to impaired loans included in allowance for loan losses
|
178
|
262
|
||||||
Balance of impaired loans, without a valuation allowance
|
1,659
|
1,894
|
||||||
Total impaired loans
|
3,042
|
3,894
|
For the three months ended
September 30,
|
||||||||
(In thousands)
|
2019
|
2018
|
||||||
Average balance of impaired loans for the periods ended
|
$
|
3,448
|
$
|
3,902
|
||||
Interest income recorded on impaired loans during the periods ended
|
67
|
38
|
(In thousands)
|
September 30, 2019
|
Percentage
of Portfolio
|
June 30, 2019
|
Percentage
of Portfolio
|
||||||||||||
Noninterest-bearing deposits
|
$
|
115,474
|
9.1
|
%
|
$
|
107,469
|
9.6
|
%
|
||||||||
Certificates of deposit
|
36,943
|
2.9
|
36,542
|
3.3
|
||||||||||||
Savings deposits
|
208,319
|
16.5
|
214,680
|
19.2
|
||||||||||||
Money market deposits
|
110,844
|
8.8
|
114,915
|
10.2
|
||||||||||||
NOW deposits
|
791,630
|
62.7
|
646,963
|
57.7
|
||||||||||||
Total deposits
|
$
|
1,263,210
|
100.0
|
%
|
$
|
1,120,569
|
100.0
|
%
|
(In thousands)
|
||||
Within the twelve months ended September 30,
|
||||
2020
|
$
|
6,000
|
||
2021
|
1,800
|
|||
2022
|
5,800
|
|||
$
|
13,600
|
Selected Equity Data:
|
||||||||
September 30, 2019
|
June 30, 2019
|
|||||||
Shareholders’ equity to total assets, at end of period
|
8.27
|
%
|
8.85
|
%
|
||||
Book value per share
|
$
|
13.65
|
$
|
13.16
|
||||
Closing market price of common stock
|
$
|
27.40
|
$
|
29.42
|
For the three months ended September 30,
|
||||||||
2019
|
2018
|
|||||||
Average shareholders’ equity to average assets
|
8.76
|
%
|
8.49
|
%
|
||||
Dividend payout ratio1
|
19.30
|
%
|
19.61
|
%
|
||||
Actual dividends paid to net income2
|
8.88
|
%
|
19.50
|
%
|
2019
|
2018
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Average
Outstanding
Balance
|
Interest
Earned
/ Paid
|
Average
Yield /
Rate
|
Average
Outstanding
Balance
|
Interest
Earned
/ Paid
|
Average
Yield /
Rate
|
||||||||||||||||||
Interest-earning Assets:
|
||||||||||||||||||||||||
Loans receivable, net1
|
$
|
804,498
|
$
|
9,405
|
4.68
|
%
|
$
|
725,143
|
$
|
8,298
|
4.58
|
%
|
||||||||||||
Securities2
|
441,557
|
2,982
|
2.70
|
398,867
|
2,640
|
2.65
|
||||||||||||||||||
Interest-bearing bank balances and federal funds
|
39,507
|
198
|
2.00
|
6,779
|
31
|
1.83
|
||||||||||||||||||
FHLB stock
|
1,404
|
23
|
6.55
|
3,313
|
28
|
3.38
|
||||||||||||||||||
Total interest-earning assets
|
1,286,966
|
12,608
|
3.92
|
%
|
1,134,102
|
10,997
|
3.88
|
%
|
||||||||||||||||
Cash and due from banks
|
10,736
|
9,624
|
||||||||||||||||||||||
Allowance for loan losses
|
(13,229
|
)
|
(12,116
|
)
|
||||||||||||||||||||
Other noninterest-earning assets
|
21,650
|
19,155
|
||||||||||||||||||||||
Total assets
|
$
|
1,306,123
|
$
|
1,150,765
|
||||||||||||||||||||
Interest-Bearing Liabilities:
|
||||||||||||||||||||||||
Savings and money market deposits
|
$
|
329,695
|
$
|
341
|
0.41
|
%
|
$
|
342,998
|
$
|
293
|
0.34
|
%
|
||||||||||||
NOW deposits
|
688,624
|
1,587
|
0.92
|
499,699
|
641
|
0.51
|
||||||||||||||||||
Certificates of deposit
|
36,984
|
122
|
1.32
|
39,571
|
102
|
1.03
|
||||||||||||||||||
Borrowings
|
13,736
|
58
|
1.69
|
57,425
|
304
|
2.12
|
||||||||||||||||||
Total interest-bearing liabilities
|
1,069,039
|
2,108
|
0.79
|
%
|
939,693
|
1,340
|
0.57
|
%
|
||||||||||||||||
Noninterest-bearing deposits
|
106,673
|
102,215
|
||||||||||||||||||||||
Other noninterest-bearing liabilities
|
16,015
|
11,110
|
||||||||||||||||||||||
Shareholders' equity
|
114,396
|
97,747
|
||||||||||||||||||||||
Total liabilities and equity
|
$
|
1,306,123
|
$
|
1,150,765
|
||||||||||||||||||||
Net interest income
|
$
|
10,500
|
$
|
9,657
|
||||||||||||||||||||
Net interest rate spread
|
3.13
|
%
|
3.31
|
%
|
||||||||||||||||||||
Net earnings assets
|
$
|
217,927
|
$
|
194,409
|
||||||||||||||||||||
Net interest margin
|
3.26
|
%
|
3.41
|
%
|
||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities
|
120.39 | % |
120.69
|
% |
Taxable-equivalent net interest income and net interest margin
|
For the three months ended
September 30,
|
|||||||
(Dollars in thousands)
|
2019
|
2018
|
||||||
Net interest income (GAAP)
|
$
|
10,500
|
$
|
9,657
|
||||
Tax-equivalent adjustment(1)
|
571
|
473
|
||||||
Net interest income (fully taxable-equivalent)
|
$
|
11,071
|
$
|
10,130
|
||||
Average interest-earning assets
|
$
|
1,286,966
|
$
|
1,134,102
|
||||
Net interest margin (fully taxable-equivalent)
|
3.44
|
%
|
3.57
|
%
|
(i) |
Change attributable to changes in volume (changes in volume multiplied by prior rate);
|
(ii) |
Change attributable to changes in rate (changes in rate multiplied by prior volume); and
|
(iii) |
The net change.
|
Three months ended September 30,
|
||||||||||||
2019 versus 2018
|
||||||||||||
Increase/(Decrease)
|
Total
|
|||||||||||
Due To
|
Increase/
|
|||||||||||
(Dollars in thousands)
|
Volume
|
Rate
|
(Decrease)
|
|||||||||
Interest-earning Assets:
|
||||||||||||
Loans receivable, net1
|
$
|
923
|
$
|
184
|
$
|
1,107
|
||||||
Securities2
|
291
|
51
|
342
|
|||||||||
Interest-bearing bank balances and federal funds
|
164
|
3
|
167
|
|||||||||
FHLB stock
|
(22
|
)
|
17
|
(5
|
)
|
|||||||
Total interest-earning assets
|
1,356
|
255
|
1,611
|
|||||||||
Interest-Bearing Liabilities:
|
||||||||||||
Savings and money market deposits
|
(11
|
)
|
59
|
48
|
||||||||
NOW deposits
|
303
|
643
|
946
|
|||||||||
Certificates of deposit
|
(7
|
)
|
27
|
20
|
||||||||
Borrowings
|
(194
|
)
|
(52
|
)
|
(246
|
)
|
||||||
Total interest-bearing liabilities
|
91
|
677
|
768
|
|||||||||
Net change in net interest income
|
$
|
1,265
|
$
|
(422
|
)
|
$
|
843
|
For the three months
ended September 30,
|
Change from
Prior Year
|
|||||||||||||||
Noninterest income:
|
2019
|
2018
|
Amount
|
Percent
|
||||||||||||
Service charges on deposit accounts
|
$
|
1,125
|
$
|
1,037
|
$
|
88
|
8.49
|
%
|
||||||||
Debit card fees
|
743
|
640
|
103
|
16.09
|
||||||||||||
Investment services
|
145
|
115
|
30
|
26.09
|
||||||||||||
E-commerce fees
|
35
|
37
|
(2
|
)
|
(5.41
|
)
|
||||||||||
Other operating income
|
218
|
223
|
(5
|
)
|
(2.24
|
)
|
||||||||||
Total noninterest income
|
$
|
2,266
|
$
|
2,052
|
$
|
214
|
10.43
|
%
|
For the three months
ended September 30,
|
Change from
Prior Year
|
|||||||||||||||
Noninterest expense:
|
2019
|
2018
|
Amount
|
Percent
|
||||||||||||
Salaries and employee benefits
|
$
|
3,942
|
$
|
3,478
|
$
|
464
|
13.34
|
%
|
||||||||
Occupancy expense
|
466
|
402
|
64
|
15.92
|
||||||||||||
Equipment and furniture expense
|
281
|
214
|
67
|
31.31
|
||||||||||||
Service and data processing fees
|
574
|
495
|
79
|
15.96
|
||||||||||||
Computer software, supplies and support
|
242
|
223
|
19
|
8.52
|
||||||||||||
Advertising and promotion
|
116
|
120
|
(4
|
)
|
(3.33
|
)
|
||||||||||
FDIC insurance premiums
|
(39
|
)
|
127
|
(166
|
)
|
(130.71
|
)
|
|||||||||
Legal and professional fees
|
279
|
329
|
(50
|
)
|
(15.20
|
)
|
||||||||||
Other
|
561
|
573
|
(12
|
)
|
(2.09
|
)
|
||||||||||
Total noninterest expense
|
$
|
6,422
|
$
|
5,961
|
$
|
461
|
7.73
|
%
|
(In thousands)
|
2019
|
|||
Unfunded loan commitments
|
$
|
97,791
|
||
Unused lines of credit
|
66,519
|
|||
Total commitments
|
$
|
164,310
|
(Dollars in thousands)
|
Actual
|
For Capital
Adequacy
Purposes
|
To Be Well
Capitalized
Under
Prompt
Corrective
Action
Provisions
|
Capital Conservation
Buffer
|
||||||||||||||||||||||||||||
The Bank of Greene County
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Actual
|
Required
|
||||||||||||||||||||||||
As of September 30, 2019:
|
||||||||||||||||||||||||||||||||
Total risk-based capital
|
$
|
123,128
|
15.8
|
%
|
$
|
62,349
|
8.0
|
%
|
$
|
77,936
|
10.0
|
%
|
7.80
|
%
|
2.50
|
%
|
||||||||||||||||
Tier 1 risk-based capital
|
113,341
|
14.5
|
46,762
|
6.0
|
62,349
|
8.0
|
8.54
|
2.50
|
||||||||||||||||||||||||
Common equity tier 1 capital
|
113,341
|
14.5
|
35,071
|
4.5
|
50,659
|
6.5
|
10.04
|
2.50
|
||||||||||||||||||||||||
Tier 1 leverage ratio
|
113,341
|
8.7
|
52,071
|
4.0
|
65,089
|
5.0
|
4.71
|
2.50
|
||||||||||||||||||||||||
As of June 30, 2019:
|
||||||||||||||||||||||||||||||||
Total risk-based capital
|
$
|
118,113
|
15.8
|
%
|
$
|
59,842
|
8.0
|
%
|
$
|
74,802
|
10.0
|
%
|
7.79
|
%
|
2.50
|
%
|
||||||||||||||||
Tier 1 risk-based capital
|
108,716
|
14.5
|
44,881
|
6.0
|
59,842
|
8.0
|
8.53
|
2.50
|
||||||||||||||||||||||||
Common equity tier 1 capital
|
108,716
|
14.5
|
33,661
|
4.5
|
48,621
|
6.5
|
10.03
|
2.50
|
||||||||||||||||||||||||
Tier 1 leverage ratio
|
108,716
|
8.7
|
50,049
|
4.0
|
62,561
|
5.0
|
4.69
|
2.50
|
||||||||||||||||||||||||
Greene County Commercial Bank
|
||||||||||||||||||||||||||||||||
As of September 30, 2019:
|
||||||||||||||||||||||||||||||||
Total risk-based capital
|
$
|
49,156
|
41.3
|
%
|
$
|
9,513
|
8.0
|
%
|
$
|
11,891
|
10.0
|
%
|
33.34
|
%
|
2.50
|
%
|
||||||||||||||||
Tier 1 risk-based capital
|
49,156
|
41.3
|
7,135
|
6.0
|
9,513
|
8.0
|
35.34
|
2.50
|
||||||||||||||||||||||||
Common equity tier 1 capital
|
49,156
|
41.3
|
5,351
|
4.5
|
7,729
|
6.5
|
36.84
|
2.50
|
||||||||||||||||||||||||
Tier 1 leverage ratio
|
49,156
|
9.7
|
20,205
|
4.0
|
25,256
|
5.0
|
5.73
|
2.50
|
||||||||||||||||||||||||
As of June 30, 2019:
|
||||||||||||||||||||||||||||||||
Total risk-based capital
|
$
|
47,366
|
47.4
|
%
|
$
|
7,996
|
8.0
|
%
|
$
|
9,996
|
10.0
|
%
|
39.39
|
%
|
2.50
|
%
|
||||||||||||||||
Tier 1 risk-based capital
|
47,366
|
47.4
|
5,997
|
6.0
|
7,996
|
8.0
|
41.39
|
2.50
|
||||||||||||||||||||||||
Common equity tier 1 capital
|
47,366
|
47.4
|
4,498
|
4.5
|
6,497
|
6.5
|
42.89
|
2.50
|
||||||||||||||||||||||||
Tier 1 leverage ratio
|
47,366
|
9.6
|
19,678
|
4.0
|
24,597
|
5.0
|
5.63
|
2.50
|
Part II. |
Other Information
|
a) |
Not applicable
|
b) |
Not applicable
|
c) |
Not applicable
|
a) |
Not applicable
|
b) |
There were no material changes to the procedures by which security holders may recommend nominees to the Company’s Board of Directors during the period covered by this Form 10-Q.
|
Exhibits
|
||
Certification of Chief Executive Officer, adopted pursuant to Rule 13a-14(a)/15d-14(a)
|
||
Certification of Chief Financial Officer, adopted pursuant to Rule 13a-14(a)/15d-14(a)
|
||
Statement of Chief Executive Officer, furnished pursuant to U.S.C. Section 1350
|
||
Statement of Chief Financial Officer, furnished pursuant to U.S.C. Section 1350
|
||
101
|
The following materials from Greene County Bancorp, Inc. Form 10-Q for the quarter ended September 30, 2019, formatted in Extensible Business Reporting Language (XBRL): (i) the Consolidated Statements of
Income, (ii) the Consolidated Statements of Financial Condition, (iii) Consolidated Statements of Cash Flows and (iv) related notes, tagged as blocks of text.
|