Greene County Bancorp, Inc. :GCBC-US: Earnings Analysis: Q1, 2017 By the Numbers : October 26, 2016

Greene County Bancorp, Inc. reports financial results for the quarter ended September 30, 2016.

We analyze the earnings along side the following peers of Greene County Bancorp, Inc. – Elmira Savings Bank and TrustCo Bank Corp NY (ESBK-US and TRST-US) that have also reported for this period.


  • Summary numbers: Revenues of USD 8.64 million, Net Earnings of USD 2.51 million.
  • Net interest income margins widened from 81.21% to 82.06% compared to the same period last year.
  • Net loan assets changed 19.21% compared to same period last year and 5.00% from previous period, total deposits changed 16.30% compared to same period last year and 5.50% from previous period.
  • Earnings growth from operating margin improvements as well as from one-time items.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income (See complete table at the end of this report):

2015-09-30 2015-12-31 2016-03-31 2016-06-30 2016-09-30
Relevant Numbers (Quarterly)
Revenues (mil) 7.7 8.09 7.97 8.43 8.64
Revenue Growth (%YOY) 7.65 11.04 11.68 13.38 12.23
Earnings (mil) 2.15 2.32 2.16 2.33 2.51
Earnings Growth (%YOY) 21.13 28.11 21.13 28.2 16.6
Net Margin (%) 27.94 28.68 27.1 27.66 29.03
EPS 0.26 0.28 0.25 0.27 0.3
Return on Equity (%) 12.67 13.3 12.03 12.67 13.31
Return on Assets (%) 1.14 1.19 1.05 1.08 1.13

Access our Ratings and Scores for Greene County Bancorp, Inc.

Market Share Versus Profits

Revenues History
Earnings History

GCBC-US‘s change in revenue this period compared to the same period last year of 12.23% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that GCBC-US is holding onto its market share. Also, for comparison purposes, revenues changed by 2.44% and earnings by 7.50% compared to the immediate last period.

Revenues Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Leader, Earnings Focus, Laggard, Revenues Focus

Earnings Growth Analysis

The company’s earnings growth was influenced by the year-on-year improvement in net interest income margins from 81.21% to 82.06%. However, the company’s loan loss provisions have prevented it from fully capitalizing on these net interest income margin improvements. GCBC-US‘s net interest income after provisions margin showed no improvement. Loan loss provisions as a percentage of net interest income were 7.66% this period, and 5.98% a year ago.

Net Interest Income Margin Versus Loan Loss Provisions Margin

Quadrant label definitions. Hover to know more

High Risk; High Reward Loans, Risky Loan Portfolio, Conservative Loan Portfolio, Safer Loan Portfolio
Net Interest Income Margin History
Loan Loss Provisions Margin History

Net Loans and Total Deposits

A financial institution’s core operations represented by Net Interest Income and Net Interest Income after Provisions are dependent on both the growth and quality of its deposits as well as the growth and quality of its loans. A firm could boost its interest income in the short-term by just increasing its loan assets with less concern about their quality – but this would eventually lead to greater loan loss provisions. Similarly a drive to increase deposits could result in higher interest expenses and eventually effect the firm’s equity. It is thus important to understand net interest income performance in context to loan loss provisions, loan assets and deposits.

Loan Assets Growth Rate History (Qtr YOY)
Total Deposits Growth Rate History (Qtr YOY)

The firm’s improvement in net interest income margins was influenced by both the relative increase in the levels of net loan assets and the level of total deposits as a percentage of equity. On an absolute basis, net loan assets changed 19.21% compared to the same period last year and 5.00% from the previous period. Total deposits changed 16.30% compared to the same period last year and 5.50% from the previous period.


The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating margins from 36.40% to 38.66% and (2) one-time items. The company’s pretax margins are now 38.66%, compared to 36.40% for the same period last year.

EBIT Margin History
PreTax Margin History
EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables

Access our Ratings and Scores for Greene County Bancorp, Inc.

Company Profile

Greene County Bancorp, Inc. operates as a bank holding company to The Bank of Greene County and its subsidiary Greene County Commercial Bank. The Bank’s principal business is attracting deposits from customers within its market area and investing those funds primarily in loans, with excess funds used to invest in securities. It operates twelve full service branches, an administration office and an operations center in New York’s Greene, Albany and Columbia counties. Green County’s loan portfolio consists primarily of mortgage loans collateralized by residential real property located in its market area. Greene County Bancorp was founded in December 1998 and is headquartered in Catskill, NY.

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