 CATSKILL, N.Y., July 24, 2020 GLOBE NEWSWIRE -- Greene County Bancorp, Inc. the Company NASDAQ: GCBC, the holding company for The Bank of Greene County and its subsidiary Greene County Commercial Bank, today reported net income for the quarter and fiscal year ended June 30, 2020. Net income for the quarter and fiscal year ended June 30, 2020 was 4.7 million, or 0.55 per basic and diluted share, and 18.7 million, or 2.20 per basic and diluted share, respectively, as compared to 4.2 million, or 0.49 per basic and diluted share, and 17.5 million, or 2.05 per basic and diluted share, for the quarter and year ended June 30, 2019, respectively. Net income increased 536,000, or 12.9, when comparing the quarters ended June 30, 2020 and 2019, and increased 1.2 million, or 7.1, when comparing the years ended June 30, 2020 and 2019. Total consolidated assets for the Company were 1.7 billion at June 30, 2020, primarily consisting of 610.4 million of total securities available-for-sale and held-to-maturity and 993.5 million of net loans. Consolidated deposits totaled 1.5 billion at June 30, 2020, consisting of retail, business and municipal banking relationships. The Bank of Greene County operates 16 full-service banking offices, with operations and lending centers located in the Capital District and Hudson Valley Regions of New York State.Donald Gibson, President CEO, stated: It is my great pleasure to report our 12th consecutive year of record net income for the fiscal year ending June 30, 2020. In addition to record net income, new record highs have been established on our balance sheet for deposits, assets, loans, and capital. Reflecting on where we are today, in a world of social, political, and economic chaos, I take solace in the fact that we have a strong balance sheet with excess reserves and the ability to generate additional reserves, if required. I would also like to take this opportunity to thank all of our great employees for their heroic efforts and outstanding work over the last several months. COVID-19 may have changed our routine, but it has not changed our bond to our customers and local community. For over 130 years, our employees and their continued dedication have been our greatest asset.Over the fiscal year ended June 30, 2020, a novel strain of coronavirus COVID-19 has spread world-wide and the Federal and state governments have been diligently working to contain its spread. The coronavirus pandemic has created much turmoil for many businesses throughout our country and in our financial markets. With much uncertainty regarding the duration of the containment strategies, the overall impact to the Companys financial position cannot be determined at this time. However, the Company continues to maintain strong asset quality, capital and liquidity. With the Companys 12th year of record income for the year ended June 30, 2020 and continued growth in both assets and earnings, management believes that it is well positioned to withstand the financial impact from this health crisis. The Companys strength not only lies within its balance sheet, but with its employees. With a strong management team, we believe we have been able to adapt to the rapidly changing needs of our customers, proactively reaching out to borrowers and providing assistance to both individuals and businesses during this time of great need. Management is working with borrowers to determine best strategies to help mitigate the impact of the temporary business closures, declines in business, and loss of employment, including payment deferrals, debt consolidations andor loan restructurings. The Company has instituted a loan deferment program whereby short-term 3-6 months deferral of principal andor interest payments has been provided. As of June 30, 2020, the Bank has received requests to defer payments on 706 loans aggregating 193.5 million. Based on guidance provided by bank regulators on March 22, 2020 regarding deferrals granted due to COVID-19, the Company has not reported these loans as delinquent at June 30, 2020, and has continued to recognize interest income during the deferral period. These loans will be closely monitored to determine collectability and accrual and delinquency status will be updated as deemed appropriate.The Company is also participating in the CARES Act the Act Paycheck Protection Program PPP, providing loans to local small businesses through the Small Business Administration SBA. As of June 30, 2020, the Company has processed 1,267 applications for up to 99.8 million of loans under the PPP. These PPP loans are 100 guaranteed by the SBA and we expect that most of the funds provided will be forgiven based on certain criteria established within the Act. Depending upon the duration of the COVID-19 pandemic, these strategies may not be sufficient for all borrowers impacted and may ultimately result in losses to the Company. As discussed under Asset Quality and Loan Loss Provision below, the Company has increased its allowance for loan losses during the year ended June 30, 2020 and believes that total reserves are adequate. The Federal Reserve Board has taken a number of measures in an attempt to mitigate the impact of the coronavirus on the economy. In addition to providing guidance to financial institutions that are working with borrowers affected by the coronavirus, the Federal Reserve Board decreased the Federal Funds benchmark rate by 100 basis points to 0.00-.0.25, in mid-March 2020. Although the impact to the Company from this rate decrease is limited for the year ended June 30, 2020, it is anticipated that it will have a negative impact on the Companys interest rate spread and margin during fiscal 2021.Selected highlights for the quarter and fiscal year ended June 30, 2020 are as follows:Net Interest Income and Margin Net interest income increased 2.0 million to 12.3 million for the three months ended June 30, 2020 from 10.3 million for the three months ended June 30, 2019. Net interest income increased 4.8 million to 44.8 million for the year ended June 30, 2020 from 40.0 million for the year ended June 30, 2019. These increases in net interest income were primarily the result of the growth in the average balance of interest-earning assets, which increased 386.2 million and 270.2 million when comparing the three months and years ended June 30, 2020 and 2019, respectively, offset by decreases in interest rates on interest-earning assets, which decreased 48 basis points and 25 basis points when comparing the three months and years ended June 30, 2020 and 2019, respectively. Decreases in yields on interest-earning assets resulted from five interest rate decreases by the Federal Reserve Board during the twelve months ended June 30, 2020, and were also impacted by the origination of 99.8 million of PPP loans at a rate of 1.0. Cost of interest-bearing liabilities decreased 21 basis points when comparing the three months ended June 30, 2020 and 2019, respectively, as a result of the decreases in market interest rates. Cost of interest-bearing liabilities increased five basis points when comparing the years ended June 30, 2020 and 2019, respectively, and is the result of growth in balances of NOW deposits. Net interest rate spread and margin both decreased when comparing the three and twelve months ended June 30, 2020. Net interest rate spread decreased 27 basis points to 2.94 for the three months ended June 30, 2020 compared to 3.21 for the three months ended June 30, 2019. Net interest spread decreased 30 basis points to 2.98 for the year ended June 30, 2020 compared to 3.28 for the year ended June 30, 2019. Net interest margin decreased 32 basis points to 3.02 for the three months ended June 30, 2020 compared to 3.34 for the three months ended June 30, 2019. Net interest margin decreased 30 basis points to 3.09 for the year ended June 30, 2020 compared to 3.39, for the year ended June 30, 2019. Decreases in net interest spread and margin resulted primarily from lower yields on loans, partially offset by growth in average loan and securities balances. Also offsetting lower net interest spread and margin were yield maintenance payments received when various agency mortgage-backed securities prepaid in advance of maturity. Yield maintenance payments amounted to 891,000 and 44,000 for the three months ended June 30, 2020 and 2019, respectively and amounted to 1.3 million and 144,000 for the years ended June 30, 2020 and 2019, respectively. Net interest income on a taxable-equivalent basis includes the additional amount of interest income that would have been earned if the Companys investment in tax-exempt securities and loans had been subject to Federal and New York State income taxes yielding the same after-tax income. Tax equivalent net interest margin was 3.19 and 3.51 for the three months ended June 30, 2020 and 2019, respectively. Tax equivalent net interest margin was 3.26 and 3.56 for the years ended June 30, 2020 and 2019, respectively. Asset Quality and Loan Loss Provision Provision for loan losses amounted to 1.2 million and 601,000 for the three months ended June 30, 2020 and 2019, respectively, and amounted to 3.9 million and 1.7 million for the years ended June 30, 2020 and 2019, respectively. These increases were due to the impact of the COVID-19 pandemic as well as growth in gross loans and an increase in loans adversely classified. As a result of the COVID-19 pandemic, the Company increased the provision for loan loss by 750,000 and 1.3 million for the three months and year ended June 30, 2020. Loans classified as substandard or special mention totaled 32.8 million at June 30, 2020 compared to 17.1 million at June 30, 2019, an increase of 15.7 million. 