GCBC · Greene County Bancorp, Inc.

Greene County Bancorp, Inc. reported robust Q3 FY2026 results, with net income of $10.5 million, up 30.6% from $8.1 million in the prior year quarter. This improvement stemmed primarily from a decrease in the average cost of funds, which more than offset the impact of higher average balances in interest-bearing liabilities. The decline in the cost of NOW deposits exerted the greatest influence on lowering overall interest expense, enabling margin expansion that fueled profitability. Diluted EPS rose 31.9% to $0.62 from $0.47, underscoring the earnings leverage from these dynamics.

Cash generation proved exceptionally strong, with net cash provided by operating activities surging to $24.0 million from $14.8 million year-over-year. After modest capital expenditures of $624 thousand, free cash flow totaled $23.4 million. This performance highlights the quality of earnings and the company's ability to convert profitability into liquidity, supporting ongoing operations and strategic flexibility.

The company has continued to maintain strong capital and liquidity positions as of March 31, 2026. Management remains responsible for liquidity monitoring and has available different sources of liquidity as requirements and demands change, positioning the balance sheet resiliently amid evolving market conditions.

While specific drivers of noninterest income changes were not quantified in supported metrics, the overall results reflect disciplined operations. The company's bond portfolio is expected to mature at par, allowing unrealized losses from higher market interest rates to decrease as bonds approach maturity. This natural unwind supports future balance sheet normalization without forced sales.

Growth in interest-bearing liabilities reflects business expansion, partially offset by the favorable cost reductions. These trends demonstrate effective management of funding mix in a normalizing rate environment, driving higher net income and cash flows while preserving capital strength.