Breaking Down Greene County Bancorp, Inc. (GCBC) Financial Health: Key Insights for Investors

You're looking for a regional bank that can defintely navigate the current rate environment, and honestly, Greene County Bancorp, Inc. (GCBC) just delivered a financial report you can't ignore, showing a powerful combination of growth and disciplined margin management. They closed their 2025 fiscal year with a record net income of $31.1 million, but the real story is their latest quarterly momentum, where net income surged 41.7% year-over-year to $8.9 million for the period ending September 30, 2025. That kind of jump isn't luck; it's a direct result of their Net Interest Margin (NIM)-the spread between what they earn on loans and pay on deposits-improving to a solid 2.48%, up 45 basis points from the prior year. They've pushed total assets to a new record of $3.1 billion, and that growth, plus their expansion into Saratoga County, signals a clear path forward, but we need to look closely at what's driving that loan book and how sustainable that NIM is in the near-term.

Revenue Analysis

You need to know where the money is coming from to judge the quality of earnings, and for Greene County Bancorp, Inc. (GCBC), the story is one of solid, core banking growth driven by loan interest. The company reported annual revenue of approximately $74.04 million for the fiscal year ending June 30, 2025, marking a strong year-over-year growth rate of 15.47%.

As a community-focused financial institution, GCBC's revenue structure is defintely straightforward, centering on the classic banking model: borrowing money cheap (deposits) and lending it out for more (loans). Since the company has no separate reportable operating segments, nearly all revenue flows through its core banking activities, which is a good sign of focus.

The primary revenue stream is, predictably, interest income from its loan portfolio and securities. This is where the bulk of the money is made. Here's the quick breakdown of those sources:

• Interest on residential and commercial real estate mortgages.
• Interest on consumer and commercial business loans.
• Interest from other investment securities.

Noninterest income, while a smaller piece of the pie, is also growing and provides a necessary buffer. This includes service charges on deposit accounts, debit card fee income, and income from bank-owned life insurance. For the quarter ended September 30, 2025 (Q1 of the 2026 fiscal year), noninterest income rose by a healthy 6.7% to $4.0 million, mostly due to increased customer service fees and interest rate swap contracts.

To see the recent momentum, look at the year-over-year change in total revenue. This is a clear rebound from a dip in 2024, showing the company is effectively navigating the current rate environment.

The significant change in the revenue picture is the surge in net interest income (NII), which is the difference between interest earned and interest paid. For the quarter ended September 30, 2025, Net Interest Income jumped by $4.4 million to $17.5 million. This NII growth is the engine, fueled by a $239.8 million year-over-year increase in the average balance of interest-earning assets. That's the core business firing on all cylinders. Plus, the company is actively expanding its footprint into Saratoga County, with a new office opening in Clifton Park in October 2025, which should provide a new source of loan and deposit revenue over the near term.

So, the takeaway is simple: GCBC is a classic interest-driven bank, and its revenue growth is accelerating because it's growing its loan book and managing its interest rate spread effectively. Your next step should be to dig into Exploring Greene County Bancorp, Inc. (GCBC) Investor Profile: Who's Buying and Why? to see who is betting on this continued growth.

Profitability Metrics

Greene County Bancorp, Inc. (GCBC) demonstrates a strong profitability profile, especially when benchmarked against its community bank peers, driven by effective cost management and a favorable interest rate environment. The company reported a record high net income of $31.1 million for the fiscal year ended June 30, 2025, and an annualized net profit margin of 42.4% as of October 2025, significantly outpacing the industry average. This margin expansion is a clear signal of operational discipline.

Margin Breakdown: Net, Operating, and Gross

In the banking sector, traditional gross profit (Revenue minus Cost of Goods Sold) is often represented by Net Interest Income (NII), as the primary cost of revenue is the interest paid on deposits and borrowings. For the quarter ended September 30, 2025 (Q1 FY2026), GCBC's Net Interest Income stood at $17.52 million.

Moving down the income statement, we see the true picture of operational health. The company's Pre-Provision Net Income (PPNI), a strong proxy for operating profit before loan loss provisions and taxes, was $10.1 million for the same quarter. This operational strength translates into a high net margin. While quarterly figures vary, the reported net profit margin expanded to 42.4% in the most recent period, up from 38.6% a year prior. This is defintely a key metric to watch.

• Net Profit Margin: 42.4% (Annualized/Latest Period)
• Net Income FY2025: $31.1 million
• Net Interest Income Q1 FY2026: $17.52 million

Profitability Trends and Operational Efficiency

The trend in GCBC's profitability is unequivocally positive. Net income for the three months ended September 30, 2025, was $8.9 million, marking a substantial 41.7% increase from the same period in the previous year. This growth isn't accidental; it's a direct result of operational efficiency and strategic asset management.

The core of this efficiency lies in cost management (noninterest expenses) and growth in interest-earning assets. Noninterest expenses for Q1 FY2026 were contained at $10.06 million, which, when compared to the surge in net interest income, shows disciplined cost control relative to revenue growth. The company's Return on Average Assets (ROAA), a key measure of how effectively the bank uses its assets to generate earnings, was 1.21% for the quarter, and its Return on Average Equity (ROAE) was an impressive 14.59%. Here's the quick math: generating nearly 15 cents of profit for every dollar of shareholder equity is a sign of a high-quality earnings stream.

For more on the long-term strategic focus that supports this efficiency, check out the Mission Statement, Vision, & Core Values of Greene County Bancorp, Inc. (GCBC).

Comparison with Industry Benchmarks

You need to know how GCBC stacks up against the average community bank, and honestly, the comparison is favorable. GCBC's key profitability ratios consistently surpass the sector averages, which suggests a competitive advantage in its market or superior management of its balance sheet.

The industry averages for community banks in the first half of 2025 show a more constrained environment. For instance, the aggregate Return on Assets (ROA) for community banks was 1.13% in Q2 2025. GCBC's ROAA of 1.21% for Q1 FY2026 is a clear outperformance. This gap highlights GCBC's ability to generate higher net income from its asset base than its average peer.

What this estimate hides is the potential impact of future interest rate changes on Net Interest Margin (NIM), but still, GCBC's current performance is a solid foundation. Your next step should be to look at their loan portfolio composition, especially commercial real estate, to map any near-term credit risks against this strong profitability.

Debt vs. Equity Structure

You're looking at Greene County Bancorp, Inc. (GCBC) and wondering how they fund their growth-is it mostly debt or shareholder capital? The direct takeaway is this: Greene County Bancorp maintains a remarkably low-leverage profile compared to its peers, relying heavily on its strong deposit base rather than external debt for core funding.

As of the fiscal year ended June 30, 2025, the company's total borrowings, which includes both short-term advances and long-term notes, stood at $128.1 million. This figure is notably small when you consider their total shareholders' equity (book value) was $238.8 million at the same time. Here's the quick math on what that means for investors.

The Debt-to-Equity (D/E) ratio for Greene County Bancorp is an extremely low 0.02 [cite: 2, 4 in previous step]. This metric, which measures total liabilities to shareholder equity, is an important gauge of financial leverage. For a regional bank, the industry average D/E ratio is around 0.5. GCBC's ratio is dramatically lower, showing a very conservative capital structure and minimal reliance on non-deposit debt to finance its assets.

What this low leverage hides is the nature of a bank's balance sheet. A bank's primary funding is customer deposits, which are technically liabilities but are considered low-risk, core funding. Greene County Bancorp leans into this strength, with total deposits reaching $2.6 billion at the close of the 2025 fiscal year [cite: 3 in previous step]. They use this stable, deposit-driven funding model to finance their loan portfolio, rather than taking on significant amounts of higher-cost, market-based debt.

The total borrowings of $128.1 million are primarily composed of Federal Home Loan Bank (FHLB) advances, which are a common and flexible source of liquidity for regional banks. A very small fraction is long-term, fixed-rate debt, such as the two FHLB borrowings totaling just $4.2 million as of June 30, 2025, with maturities in 2027 and 2028.

The company is defintely focused on reducing its debt obligations. A key action taken right after the fiscal year end underscores this conservative approach: on October 1, 2025, Greene County Bancorp redeemed the entire outstanding principal amount of $20.0 million of its 4.75% Fixed-to-Floating Rate Subordinated Notes, funding the move with cash on hand [cite: 12 in previous step]. That's a clear signal of management prioritizing a clean balance sheet and lower interest expense over maintaining leverage.

The balance of debt and equity is heavily skewed toward equity, which translates to a high level of capital adequacy and stability. This is a fortress balance sheet. For a deeper dive into who is investing in this capital structure, you should be Exploring Greene County Bancorp, Inc. (GCBC) Investor Profile: Who's Buying and Why?

• Total Borrowings (Debt, FY2025): $128.1 million [cite: 2 in previous step]
• Shareholders' Equity (FY2025): $238.8 million [cite: 2 in previous step]
• Debt-to-Equity Ratio: 0.02 [cite: 2, 4 in previous step]
• Regional Bank Industry Average D/E: ~0.5

This table summarizes the core components of the company's funding mix:

Liquidity and Solvency

You're looking at Greene County Bancorp, Inc. (GCBC) and want to know if they can cover their short-term obligations-a classic liquidity question. The direct takeaway is that while the standard current ratio looks low, it's a non-issue for a bank; GCBC maintains a strong liquidity profile, backed by a significant investment portfolio and consistent operating cash flow.

For the average company, a current ratio below 1.0 is a red flag, but for a bank, it's normal. Why? Because customer deposits, which are the bank's lifeblood, are classified as current liabilities. As of November 2025, Greene County Bancorp, Inc.'s current ratio and quick ratio both stand at approximately 0.65. This is simply a function of their business model, not a sign of distress. Your focus should be on their cash position and asset quality, not this ratio.

Working Capital and Core Liquidity

To understand Greene County Bancorp, Inc.'s true liquidity, you have to look beyond the simple ratio. The low current ratio is a technicality, but it means the bank has a negative working capital (Current Assets less Current Liabilities). This is typical because total deposits reached a record high of $2.7 billion as of September 30, 2025, which are short-term liabilities. However, their actual liquid assets-cash and short-term investments-totaled about $474.7 million in the third quarter of fiscal year 2025. That's a substantial buffer.

The trend shows a deliberate strategy to bolster liquid holdings. For the fiscal year ended June 30, 2025, the company increased its securities portfolio by $91.9 million, primarily in U.S. Treasury and municipal bonds. This portfolio acts as a secondary liquidity reserve, easily convertible to cash if needed. The balance sheet is resilient. Total assets also hit a record high of $3.1 billion as of September 30, 2025, which supports a conservative leverage stance.

Cash Flow Statement Overview (FY 2025)

The cash flow statement for Greene County Bancorp, Inc. tells a story of organic strength and strategic balance sheet management. Honest to goodness, a bank's cash flow is always complex, but here's the quick math on the major components:

• Operating Cash Flow (OCF): This is healthy. The bank generated an operating cash flow of around $7.305 million in Q3 2025, demonstrating a solid ability to convert earnings into cash.
• Investing Cash Flow: This is where the growth happens. Net loans increased to a record $1.6 billion as of September 30, 2025, indicating strong lending activity. Plus, the $91.9 million increase in the securities portfolio shows they are actively investing their deposit base.
• Financing Cash Flow: This is well-managed. The company reduced its total borrowings by $71.0 million to $128.1 million for the fiscal year ended June 30, 2025. Still, they issued about $78.8 million in debt in Q2 2025, signaling continued access to capital markets to support growth initiatives. They also paid out $4.5 million in dividends for the year.

The consistent cash generation and reduction in borrowings suggest a defintely prudent approach to funding and capital return, which you can see reflected in their Mission Statement, Vision, & Core Values of Greene County Bancorp, Inc. (GCBC).

Near-Term Liquidity Strengths and Actions

Greene County Bancorp, Inc.'s liquidity strength lies in its asset composition and funding stability. Their core business generates robust cash, and they have ample liquid assets to cover any unexpected deposit withdrawals. The focus on a strong deposit base, which reached $2.7 billion, is a major strength. The near-term action for you is to monitor the composition of their loan portfolio-specifically the $1.6 billion in net loans-to ensure credit quality remains strong, especially as they expand into new markets like Saratoga County.

Here is a snapshot of key liquidity metrics for the fiscal year 2025:

Next step: Strategy team should analyze the growth rate of non-interest-bearing deposits versus interest-bearing deposits to project future funding costs.

Valuation Analysis

You're looking at Greene County Bancorp, Inc. (GCBC) and trying to figure out if the recent stock dip is a buying opportunity or a sign of deeper trouble. The direct takeaway is that, based on traditional banking metrics, the stock appears undervalued, but the market is clearly pricing in significant near-term risk, likely tied to the sharp decline in its stock price over the last year.

As of November 2025, the stock price sits near $22.08. Here's the quick math on why a seasoned analyst would call this a classic risk/reward trade-off, using the most recent fiscal year data.

Is Greene County Bancorp, Inc. (GCBC) Overvalued or Undervalued?

The short answer is that GCBC looks undervalued on paper, especially when you compare its valuation multiples to its own history and the broader financial sector. The market is telling a different story, though, having punished the stock heavily in the past year.

The Price-to-Earnings (P/E) ratio, which measures the price you pay for every dollar of earnings, is currently around 11.15 (Trailing Twelve Months). To be fair, that's quite favorable compared to the broader Financial Services sector average, which is often higher. The Price-to-Book (P/B) ratio, which is crucial for a bank because it compares the stock price to the company's net asset value, is currently at a low 1.51. This suggests you are paying only $1.51 for every dollar of the bank's net assets, which can be a strong indicator of undervaluation for a profitable bank.

Now, you'll notice that the Enterprise Value-to-EBITDA (EV/EBITDA) ratio is effectively 0.00 or not applicable (N/A). This is defintely not a mistake; for a bank like GCBC, which makes money from interest income, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is not the standard profitability measure, so we focus on P/E and P/B instead.

• P/E Ratio: 11.15 (Suggests undervaluation relative to sector).
• P/B Ratio: 1.51 (A favorable metric for a bank).
• DCF Fair Value: $35.03 (Implies 37.3% undervaluation).

Stock Price Trends and Investor Sentiment

The stock's performance over the last 12 months is the clearest signal of market anxiety. Greene County Bancorp, Inc.'s stock has seen a sharp decrease of approximately 31.30%. The 52-week trading range tells the story of volatility, moving from a low of $20.00 to a high of $32.55. This massive drop is what creates the disconnect between the low valuation multiples and the high-risk perception. The recent insider buying is a positive sign, but it hasn't stopped the bearish technical trend.

The dividend profile is solid, still offering a decent return while maintaining a conservative payout. The forward dividend yield is about 1.81%, which is respectable in the current environment. Plus, the payout ratio is only around 20.2%, meaning the company is only using about one-fifth of its earnings to pay dividends. That leaves plenty of capital to support asset growth or weather any economic headwinds, which is what you want to see in a community bank.

The analyst community is aligned on caution, not panic. The consensus rating on Greene County Bancorp, Inc. is a clear Hold, with a price target of $23.00. This consensus suggests that while the stock is cheap, there isn't a clear catalyst for a significant upside move right now. The analysts cite 'strong profitability' but also 'declining revenue growth' and a 'bearish technical trend.' Your next step is to dig into the Mission Statement, Vision, & Core Values of Greene County Bancorp, Inc. (GCBC) to see if their strategic focus can overcome these near-term financial challenges.

Risk Factors

You might look at Greene County Bancorp, Inc.'s (GCBC) strong 2025 fiscal year-with net income hitting $31.1 million, a 25.7% jump from the prior year-and think the risk profile is benign. To be fair, those are great numbers. But as a seasoned financial analyst, I look past the headlines to the structural risks that could derail that momentum. Every bank, especially a regional one operating in the Hudson Valley and Capital District Regions of New York State, faces a trio of interconnected threats: interest rates, credit quality, and competition. That's just banking.

The company's latest filings highlight a few key areas where you need to focus your attention, translating abstract risks into concrete financial exposures.

Operational and External Risks: The Triple Threat

The primary external risk is the Interest Rate Risk. GCBC holds a significant portfolio of fixed-rate residential mortgage loans. If market interest rates continue to rise-or even stay elevated-the cost of funding (what they pay on deposits) will increase faster than the yield on those older, fixed-rate loans. This dynamic directly compresses the net interest income (NII), which was already a healthy $60.1 million for the fiscal year ending June 30, 2025. They are defintely exposed here.

Internally, the biggest operational risk is Cybersecurity. The reliance on technology for all banking services means a breach could compromise sensitive information or disrupt operations. This is a non-negotiable risk for any modern financial institution, plus the cost of compliance and defense only ever goes up.

Finally, the company faces significant Competition in its geographical market, particularly from larger banks with deeper financial resources who can offer more aggressive rates on both loans and deposits. This competition could limit the growth of their loan portfolio, which increased by $117.9 million in commercial real estate during the year.

• Interest Rate Risk: Threatens NII due to fixed-rate loan portfolio.
• Cybersecurity: A constant and escalating operational threat.
• Competition: Larger banks limit growth in the New York State market.

Financial and Strategic Risks

The core financial risk is Credit Risk, the chance that borrowers default. While GCBC manages this through strict, board-approved underwriting policies, an economic downturn or a continued period of high inflation-a macroeconomic risk noted in their filings-could erode the creditworthiness of their customers. You should watch their non-performing loan ratio closely in the coming quarters.

A strategic risk is the company's expansion into Saratoga County. While this move is a clear opportunity to tap into a vibrant market, navigating a new, competitive environment always introduces execution risk. It requires significant upfront investment and may not yield the expected returns immediately, impacting short-term profitability. This is a classic growth trade-off.

Mitigation and Actionable Steps

Greene County Bancorp, Inc. is not sitting still; they are actively managing these exposures. Their strategy is centered on robust capital and liquidity management. For example, they reduced their borrowings by $71.0 million to $128.1 million as of June 30, 2025, which improves their funding stability. They also reported a strong liquidity position, with cash and cash equivalents totaling $183.1 million as of the fiscal year-end.

To specifically counter the interest rate risk, they employ asset-liability management strategies, which include using financial derivatives like interest rate swaps to hedge against adverse rate movements. This is the technical term for proactively managing the mismatch between what they earn on assets and what they pay on liabilities. What this estimate hides, though, is the effectiveness of those hedges under extreme rate changes. You need to verify the notional value of those swaps in the next quarterly report.

If you want a deeper dive into the numbers that support these risk assessments, you can read more here: Breaking Down Greene County Bancorp, Inc. (GCBC) Financial Health: Key Insights for Investors. Your next step is to check the allowance for credit losses against the total loan portfolio to see how well-reserved they are for that credit risk.

Growth Opportunities

You're looking for a clear path forward for Greene County Bancorp, Inc. (GCBC), and the numbers from the fiscal year ending June 30, 2025, are defintely pointing up. The core takeaway is that this is a community bank successfully using its local strength and commercial focus to generate superior returns, which is a powerful growth engine in the current environment.

Their strategy isn't complicated; it's about doubling down on what works: commercial lending and smart geographic expansion. The company's net income for the 2025 fiscal year jumped to a record $31.1 million, a 25.7% increase from the prior year, showing their focus is paying off. That's a huge leap for a regional player.

Key Growth Drivers and Strategic Focus

The primary driver of this growth is a deliberate expansion of their commercial lending portfolio. The bank increased its commercial real estate loans by a significant $117.9 million during the 2025 fiscal year. This focus is their bread and butter; commercial real estate makes up the largest chunk of their loan portfolio, at about 64.8% or $1.05 billion as of the third quarter of FY2025. This specialization gives them a competitive edge (a moat, if you will) against larger, less-focused institutions.

Plus, they are not sitting still on the map. A major near-term initiative is the expansion into Saratoga County, a vibrant and growing market in New York State. The new Clifton Park office's grand opening in October 2025 is a concrete step to enhance their footprint in the Capital District.

• Expand commercial real estate lending.
• Grow geographically into high-potential areas like Saratoga County.
• Maintain a strong deposit base of $2.7 billion to fund loan growth.

Future Projections and Competitive Edge

While formal long-term revenue projections can be scarce for smaller banks, the near-term performance is a great indicator. In the first quarter of the 2026 fiscal year (ended September 30, 2025), net income surged to $8.9 million, a massive 41.7% year-over-year growth. That momentum suggests a very strong trajectory for the current year. Here's the quick math: their diluted Earnings Per Share (EPS) for FY2025 was $1.83, and the Q1 FY2026 EPS of $0.52 is a strong start.

The company's net profit margin of 42.4% is another competitive advantage, outpacing many peers in the US Banks category. This shows superior operational efficiency and strong cost controls. They also offer wealth management services through Greene Investment Services, which diversifies their revenue beyond just traditional lending. Honestly, the market seems to be lagging behind this performance; the stock trades below its discounted cash flow (DCF) fair value of $35.44 as of October 2025. This suggests a significant potential for capital appreciation if the market catches up to their intrinsic worth.

For a deeper look into the company's long-term vision, you should review their Mission Statement, Vision, & Core Values of Greene County Bancorp, Inc. (GCBC).

Here is a snapshot of the key financial metrics from the 2025 fiscal year and the most recent quarter:

What this estimate hides is the risk of interest rate changes impacting their fixed-rate residential mortgage portfolio, still, the strong growth in net interest income to $60.1 million in FY2025 shows they managed the rate environment well. Your next step should be to model a sensitivity analysis on their net interest margin based on a 50-basis-point shift in short-term rates.