Greene County Bancorp, Inc. reported its financial results for the third quarter ended September 30, 2024, showing a net income of $6.3 million, a decrease from $6.5 million in the same period of 2023. The annualized return on average assets was 0.93%, down from 0.99%, while the return on average equity fell to 11.86% from 14.09%. Total assets increased to $2.9 billion, up from $2.8 billion at the end of June 2024, reflecting a growth of $48.8 million, or 1.7%.

Total interest income for the quarter was $27.8 million, an increase of $3.1 million (12.6%) compared to $24.7 million in Q3 2023. This rise was driven by higher interest earned on loans and securities. However, total interest expense also rose significantly to $14.6 million, up from $11.2 million, marking a 30.3% increase. Consequently, net interest income decreased to $13.1 million from $13.4 million year-over-year, with the net interest margin declining to 2.03% from 2.12%.

Noninterest income increased to $3.7 million, a 13.3% rise from $3.3 million in the prior year, primarily due to higher fee income from customer interest rate swap contracts and increased income from bank-owned life insurance. Noninterest expenses rose to $9.6 million, an 8.0% increase attributed to higher salaries and employee benefits, service fees, and reserves for credit losses on off-balance sheet commitments.

The company’s total deposits increased by $96.7 million, or 4.1%, to $2.5 billion, with notable growth in NOW accounts and certificates of deposit. The allowance for credit losses on loans rose to $19.8 million from $19.2 million, reflecting unfavorable changes in economic forecasts. Non-performing assets decreased slightly to $3.6 million from $3.7 million, with non-accrual loans totaling $3.6 million.

As of September 30, 2024, total shareholders' equity increased to $216.3 million from $206.0 million at the end of June 2024. The company declared a quarterly cash dividend of $0.09 per share, reflecting a 12.5% increase from the previous rate. The effective tax rate for the quarter was 6.4%, down from 13.0% in the prior year, attributed to a higher mix of tax-exempt income.

Overall, Greene County Bancorp's financial performance in Q3 2024 reflects a mix of growth in interest income and deposits, alongside challenges in net interest income and profitability metrics compared to the previous fiscal period.