GREENE COUNTY BANCORP INC

Previous wording

Fully Tax-Equivalent Net Interest Income and Net Interest Margin: Net interest income, as a component of the tabular presentation by financial institutions of Selected Financial Information regarding their recently completed operations, as well as disclosures based on that tabular presentation, is commonly presented on a tax-equivalent basis. That is, to the extent that some component of the institution's net interest income, which is presented on a before-tax basis, is exempt from taxation (e.g., is received by the institution as a result of its holdings of state or municipal obligations), an amount equal to the tax benefit derived from that component is added to the actual before-tax net interest income total. This adjustment is considered helpful in comparing one financial institution's net interest income to that of another institution or in analyzing any institution’s net interest income trend line over time, to correct any analytical distortion that might otherwise arise from the fact that financial institutions vary widely in the proportions of their portfolios that are invested in tax-exempt securities, and that even a single institution may significantly alter over time the proportion of its own portfolio that is invested in tax-exempt obligations. Moreover, net interest income is itself a component of a second financial measure commonly used by financial institutions, net interest margin, which is the ratio of net interest income to average interest-earning assets. For purposes of this measure as well, tax-equivalent net interest income is generally used by financial institutions, again to provide a better basis of comparison from institution to institution and to better demonstrate a single institution’s performance over time. While we present net interest income and net interest margin utilizing GAAP measures (no tax-equivalent adjustments) as a component of the tabular presentation within our disclosures, we do provide as supplemental information net interest income and net interest margin on a tax-equivalent basis.

Current wording

Fully Tax-Equivalent Net Interest Income and Net Interest Margin: Net interest income, as a component of the tabular presentation by financial institutions of Selected Financial Information regarding their recently completed operations, as well as disclosures based on that tabular presentation, is commonly presented on a tax-equivalent basis. That is, to the extent that some component of the institution's net interest income, which is presented on a before-tax basis, is exempt from taxation (e.g., is received by the institution as a result of its holdings of state or municipal obligations), an amount equal to the tax benefit derived from that component is added to the actual before-tax net interest income total. This adjustment is considered helpful in comparing one financial institution's net interest income to that of another institution or in analyzing any institution’s net interest income trend line over time, to correct any analytical distortion that might otherwise arise from the fact that financial institutions vary widely in the proportions of their portfolios that are invested in tax-exempt assets, and that even a single institution may significantly alter over time the proportion of its own portfolio that is invested in tax-exempt obligations. Moreover, net interest income is itself a component of a second financial measure commonly used by financial institutions, net interest margin, which is the ratio of net interest income to average interest-earning assets. For purposes of this measure as well, tax-equivalent net interest income is generally used by financial institutions, again to provide a better basis of comparison from institution to institution and to better demonstrate a single institution’s performance over time. While we present net interest income and net interest margin utilizing GAAP measures (no tax-equivalent adjustments) as a component of the tabular presentation within our disclosures, we do provide as supplemental information net interest income and net interest margin on a tax-equivalent basis.

Previous wording

Critical accounting estimates as those estimates made in accordance with GAAP that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or results of operations. The more significant of these policies are summarized in Note 1, Summary of significant accounting policies to the consolidated financial statements presented in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025. Not all significant accounting policies require management to make difficult, subjective or complex judgments. The allowance for credit losses on loans and unfunded commitments policies noted below are deemed the Company’s critical accounting estimate.

Current wording

Critical accounting estimates, as those estimates made in accordance with GAAP, involve a significant level of estimation uncertainty and have had, or are reasonably likely to have, a material impact on the financial condition or results of operations. The more significant of these policies are summarized in Note 1, Summary of significant accounting policies to the consolidated financial statements presented in our Annual Report on Form 10-K for the fiscal year ended June 30, 2026. Not all significant accounting policies require management to make difficult, subjective or complex judgments. The allowance for credit losses on loans and unfunded commitments policies noted below are deemed the Company’s critical accounting estimate.

Previous wording

Management of the Company considers the accounting policy relating to the allowance for credit losses on loans to be a critical accounting estimate given the uncertainty in evaluating the level of the allowance required to cover management’s estimate of all expected credit losses over the expected contractual life of our loan portfolios. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the then-existing loan portfolios, in light of the factors then prevailing, may result in significant changes in the allowance for credit losses in those future periods. While management’s current evaluation of the allowance for credit losses on loans indicates that the allowance is appropriate, the allowance may need to be increased under adversely different conditions or assumptions. The impact of utilizing the CECL models to calculate the allowance for credit losses are significantly influenced by the composition, characteristics and quality of our loan portfolios, as well as the prevailing economic conditions and forecasts utilized. Changes in the national unemployment rate and national GDP could have a material impact on the model’s estimation of the allowance. Material changes to these and other relevant factors may result in greater volatility to the allowance for credit losses, and therefore, greater volatility to our reported earnings. This critical accounting policy and its application are periodically reviewed with the Audit Committee and the Board of Directors.

Current wording

Management of the Company considers the accounting policy relating to the allowance for credit losses on loans to be a critical accounting estimate given the uncertainty in evaluating the level of the allowance required to cover management’s estimate of all expected credit losses over the expected contractual life of our loan portfolios. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the then-existing loan portfolios, in light of the factors then prevailing, may result in significant changes in the allowance for credit losses in those future periods. While management’s current evaluation of the allowance for credit losses on loans indicates that the allowance is appropriate, the allowance may need to be increased under adversely different conditions or assumptions. The impact of utilizing the CECL models to calculate the allowance for credit losses are significantly influenced by the composition, characteristics and quality of our loan portfolios, as well as the prevailing economic conditions and forecasts utilized. Changes in the national unemployment rate and national gross domestic product could have a material impact on the model’s estimation of the allowance. Material changes to these and other relevant factors may result in greater volatility to the allowance for credit losses, and therefore, greater volatility to our reported earnings. This critical accounting policy and its application are periodically reviewed with the Audit Committee and the Board of Directors.

Previous wording

Total assets of the Company were $3.2 billion at March 31, 2026 and $3.0 billion at June 30, 2025, an increase of $140.5 million, or 4.6%. Securities available-for-sale and held-to-maturity increased $52.3 million, or 4.6%, to $1.2 billion at March 31, 2026 as compared to $1.1 billion at June 30, 2025. Net loans receivable increased $118.7 million, or 7.4%, to $1.7 billion at March 31, 2026 as compared to $1.6 billion at June 30, 2025.

Current wording

Total assets of the Company were $3.2 billion at September 30, 2026 and June 30, 2026. Securities available-for-sale and held-to-maturity increased $48.6 million, or 4.1%, to $1.23 billion at September 30, 2026 as compared to $1.18 billion at June 30, 2026. Net loans receivable increased $23.1 million, or 1.3%, to $1.8 billion at September 30, 2026 as compared to $1.7 billion at June 30, 2026.

Previous wording

Total cash and cash equivalents for the Company were $139.5 million at March 31, 2026 and $183.1 million at June 30, 2025, a decrease of $43.6 million, or 23.8%. The level of cash and cash equivalents is a function of the daily account clearing needs and deposit levels, as well as activities associated with securities transactions and loan funding. All of these items can cause cash levels to fluctuate significantly on a daily basis. The Company has continued to maintain strong capital and liquidity positions as of March 31, 2026 and June 30, 2025.

Current wording

Total cash and cash equivalents for the Company were $135.0 million at September 30, 2026 and $144.9 million at June 30, 2026, a decrease of $9.9 million, or 6.8%. The level of cash and cash equivalents is a function of the daily account clearing needs and deposit levels as well as activities associated with securities transactions and loan funding. All of these items can cause cash levels to fluctuate significantly on a daily basis. The Company has continued to maintain strong capital and liquidity positions as of September 30, 2026 and June 30, 2026.

Previous wording

Securities available-for-sale and held-to-maturity increased $52.3 million, or 4.6%, to $1.2 billion at March 31, 2026 as compared to $1.1 billion at June 30, 2025. Securities purchases totaled $569.3 million during the nine months ended March 31, 2026, primarily consisting of $254.2 million of U.S. Treasuries, $229.9 million of state and political subdivision securities, $68.1 million of mortgage-backed securities, $9.0 million of corporate debt securities, and $8.1 million of collateralized mortgage obligations. Principal pay-downs and maturities during the nine months ended March 31, 2026, amounted to $512.4 million, primarily consisting of $259.0 million of U.S. Treasuries, $205.0 million of state and political subdivision securities, $31.3 million of mortgage-backed securities, $14.4 million of corporate debt securities, and $2.7 million of collateralized mortgage obligations. At March 31, 2026, 58.7% of our securities portfolio consisted of state and political subdivision securities to take advantage of tax savings and to promote the Company’s participation in the communities in which it operates. Mortgage-backed securities, which represent 35.4% of our securities portfolio at March 31, 2026, do not contain sub-prime loans and are not exposed to the credit risk associated with such lending.

Current wording

Securities available-for-sale and held-to-maturity increased $48.6 million, or 4.1%, to $1.23 billion at September 30, 2026 as compared to $1.18 billion at June 30, 2026. Securities purchased totaled $148.1 million during the three months ended September 30, 2026, primarily consisting of $125.2 million of state and political subdivision securities, $13.9 million of mortgage-backed securities, and $9.0 million of collateralized mortgage obligations. Principal pay-downs and maturities during the three months ended September 30, 2026, amounted to $87.0 million, primarily consisting of $66.8 million of state and political subdivision securities, $13.0 million of mortgage-backed securities, $3.0 million in U.S. Treasuries, $3.0 million in corporate debt securities, and $1.2 million of collateralized mortgage obligations. At September 30, 2026, 61.1% of our securities portfolio consisted of state and political subdivision securities to take advantage of tax savings and to promote the Company’s participation in the communities in which it operates. Mortgage-backed securities, which represent 34.4% of our securities portfolio at September 30, 2026, do not contain sub-prime loans and are not exposed to the credit risk associated with such lending.

Previous wording

Securities held-to-maturity are evaluated for credit losses on a quarterly basis under the CECL methodology. The allowance for credit losses on securities held-to-maturity was $550,000 and $548,000 at March 31, 2026 and June 30, 2025, respectively.

Current wording

Securities held-to-maturity are evaluated for credit losses on a quarterly basis under the CECL methodology. The allowance for credit losses on securities held-to-maturity was $467,000 and $530,000 at September 30, 2026 and June 30, 2026, respectively.

Previous wording

Net loans receivable increased $118.7 million, or 7.4%, to $1.7 billion at March 31, 2026 as compared to $1.6 billion at June 30, 2025. Loan growth experienced during the nine months ended March 31, 2026, consisted primarily of $96.8 million in commercial real estate loans, $18.2 million in commercial loans, and $7.7 million in home equity loans. The allowance for credit losses on loans increased $1.6 million, or 8.1%, to $21.8 million at March 31, 2026 as compared to $20.1 million at June 30, 2025. The increase in the allowance for credit losses was primarily attributable to an increase in loan volume. The Company continues to experience loan growth as a result of the continued growth in its customer base and its relationships with other financial institutions in originating loan participations. The Company continues to use a conservative underwriting policy in its loan originations and does not engage in sub-prime lending or other exotic loan products. Updated appraisals are obtained on loans when there is a reason to believe that there has been a change in the borrower’s ability to repay the loan principal and interest, generally when a loan is in a delinquent status. Additionally, if an existing loan is to be modified or refinanced, generally an appraisal is ordered to ensure continued collateral adequacy.

Current wording

Net loans receivable increased $23.1 million, or 1.3%, to $1.8 billion at September 30, 2026 as compared to $1.7 billion at June 30, 2026. Loan growth experienced during the three months ended September 30, 2026, consisted primarily of $18.3 million in commercial real estate loans, $3.7 million in commercial loans, and $2.5 million in home equity loans. The allowance for credit losses on loans decreased $417,000, or 1.9%, to $21.4 million at September 30, 2026 as compared to $21.9 million at June 30, 2026. The decrease in the allowance for credit losses was primarily attributable to the release of the allowance for credit losses associated with an individually evaluated loan that was repaid in full during the quarter, as well as improvements in the economic forecasts used in the CECL model. The Company continues to experience loan growth as a result of the continued growth in its customer base and its relationships with other financial institutions in originating loan participations. The Company continues to use conservative underwriting in its loan originations and does not engage in sub-prime lending or other exotic loan products. Updated appraisals may be obtained on loans when there is a reason to believe that there has been a change in the borrower’s ability to repay the loan principal and interest, generally when a loan is in a delinquent status, or an event that would indicate a significant decline in the collateral value. Additionally, if an existing loan is to be modified or refinanced, generally, an appraisal is ordered to ensure collateral adequacy.

Previous wording

Commercial and commercial real estate loans classified as substandard and special mention totaled $34.9 million at March 31, 2026, and $39.4 million at June 30, 2025, a decrease of $4.5 million. The decrease in the loans classified during the period ended March 31, 2026, was primarily due to upgrades of commercial real estate loans that were considered to be performing and paying in accordance with the terms of their loan agreements and commercial real estate loans that were paid off during the period. Of the loans classified as substandard or special mention, $31.5 million were performing at March 31, 2026. There were no loans classified as doubtful or loss at March 31, 2026 or June 30, 2025.

Current wording

Commercial and commercial real estate loans classified as substandard and special mention totaled $30.8 million at September 30, 2026, and $40.0 million at June 30, 2026, a decrease of $9.2 million. The decrease in the commercial and commercial real estate loans classified during the period ended September 30, 2026 was primarily due to upgrades of commercial real estate and commercial loans that were considered to be performing and paying in accordance with the terms of their loan agreements, and commercial real estate and commercial loans that were paid off during the period. Of the loans classified as substandard or special mention, $29.9 million were performing at September 30, 2026. There were no loans classified as doubtful or loss at September 30, 2026 or June 30, 2026.

Previous wording

Commercial real estate loans are the largest segment of the Company’s loan portfolio and are comprised of 85.4% in non-owner occupied loans and 14.6% in owner occupied loans. These loans are generally secured by commercial, residential investment or industrial property types. The Company’s commercial real estate loan portfolio generally consists of standalone loans supported by both sufficient cash flows and collateral. On a portfolio basis, the Company’s non-owner occupied commercial real estate loans have a weighted average loan-to-value (“LTV”) of approximately 57.8%, and the Company’s owner occupied commercial real estate loans have a weighted average LTV of approximately 49.5%, as of March 31, 2026. The Company’s commercial real estate loans are primarily made within our market area in Greene, Columbia, Albany, Ulster, Rensselaer, and Saratoga Counties of New York State. The Company actively monitors the economic and credit trends for borrower industries and manages our commercial real estate portfolio concentrations to mitigate its credit risk exposure.

Current wording

Commercial real estate loans are the largest segment of the Company’s loan portfolio and are comprised of 85.7% in non-owner occupied loans and 14.3% in owner occupied loans. These loans are generally secured by commercial, residential investment or industrial property types. The Company’s commercial real estate loan portfolio generally consists of standalone loans supported by both sufficient cash flows and collateral. On a portfolio basis, the Company’s non-owner occupied commercial real estate loans have a weighted average loan-to-value (“LTV”) of approximately 57.5%, and the Company’s owner occupied commercial real estate loans have a weighted average LTV of approximately 49.0%, as of September 30, 2026. The Company’s commercial real estate loans are primarily made within our market area in Greene, Columbia, Albany, Ulster, Rensselaer, and Saratoga Counties of New York State. The Company actively monitors the economic and credit trends for borrower industries and manages our commercial real estate portfolio concentrations to mitigate its credit risk exposure.

Previous wording

As of March 31, 2026, the Company’s largest commercial real estate concentration was non-owner occupied multi-family loans at $297.5 million, or 25.8% of total commercial real estate loans. Non-owner occupied multi-family loans provide much needed housing for the residents located in our market area and have historically performed well with strong credit metrics. As of March 31, 2026, the weighted average LTV was approximately 58.0% for the non-owner occupied multi-family loan segment.

Current wording

As of September 30, 2026, the Company’s largest commercial real estate concentration was non-owner occupied multi-family loans at $298.5 million, or 25.6% of total commercial real estate loans. Non-owner occupied multi-family loans provide much needed housing for the residents located in our market area and have historically performed well with strong credit metrics. As of September 30, 2026, the weighted average LTV was approximately 58.0% for the non-owner occupied multi-family loan segment.

Previous wording

As of March 31, 2026, non-owner occupied construction loans were $86.6 million, or 7.5% of total commercial real estate loans. Construction loans are typically 12 to 24 months in duration with active monitoring, which may include pre-engineering review and third party site inspections for more complex projects. High volatility commercial real estate loan exposure totaled $7.8 million of the Company’s construction exposure. Construction loans are primarily comprised of approximately 43.5% multi-family buildings, 24.7% mixed use real estate, 10.9% self-storage and 9.5% condominiums.

Current wording

As of September 30, 2026, non-owner occupied construction loans were $94.7 million, or 8.1% of total commercial real estate loans. Construction loans are typically 12 to 24 months in duration with active monitoring, which may include pre-engineering review and third-party site inspections for more complex projects. High volatility commercial real estate loan exposure totaled $1.5 million of the Company’s construction exposure. Construction loans are primarily comprised of approximately 38.9% multi-family buildings, 30.3% mixed use real estate, 18.8% condominiums and 10.0% self-storage.

Previous wording

The Company’s outstanding balance of non-owner occupied commercial real estate office loans were $86.0 million, or 7.5% of total commercial real estate loans as of March 31, 2026. The office loans are primarily low-rise, non-metropolitan buildings, located within our geographic footprint. As of March 31, 2026, the weighted average LTV was approximately 58.5% for the non-owner occupied office loan segment.

Current wording

The Company’s outstanding balance of non-owner occupied commercial real estate office loans were $54.7 million, or 4.7% of total commercial real estate loans as of September 30, 2026. The office loans are primarily low-rise, non-metropolitan buildings, located within our geographic footprint. As of September 30, 2026, the weighted average LTV was approximately 53.6% for the non-owner occupied office loan segment.

Previous wording

The ACL on loans totaled $21.8 million at March 31, 2026, compared to $20.1 million at June 30, 2025. The ACL on loans to total loans receivable was 1.25% at March 31, 2026 compared to 1.24% at June 30, 2025. The increase in the ACL on loans from March 31, 2026 to June 30, 2025, was primarily attributable to an increase in loan volume offset by improvements in the economic forecasts used in the Current Expected Credit Loss model.

Current wording

The ACL on loans totaled $21.4 million at September 30, 2026, as compared to $21.9 million at June 30, 2026. The ACL on loans to total loans receivable was 1.21% at September 30, 2026 as compared to 1.25% at June 30, 2026. The decrease in the allowance for credit losses was primarily attributable to the release of the allowance for credit losses associated with an individually evaluated loan that was repaid in full during the quarter, as well as improvements in the economic forecasts used in the CECL model.

Previous wording

Net charge-offs on loans amounted to $73,000 and $96,000 for the three months ended March 31, 2026 and 2025, respectively, a decrease of $23,000. Net charge-offs totaled $273,000 and $305,000 for the nine months ended March 31, 2026 and 2025, respectively. There were no material charge-offs in any loan segment during the three and nine months ended March 31, 2026 and 2025, respectively.

Current wording

Net charge-offs on loans amounted to $48,000 and $60,000 for the three months ended September 30, 2026 and 2025, respectively, a decrease of $12,000. There were no material charge-offs in any loan segment during the three months ended September 30, 2026 and 2025, respectively.

Previous wording

At March 31, 2026, the allowance for credit losses on unfunded commitments totaled $1.3 million as compared to $1.8 million at June 30, 2025, a decrease of $519,000, or 29.3%. The decrease in the provision for the nine months ended March 31, 2026, was primarily due to a decrease in the Company’s contractual obligation to extend credit.

Current wording

At September 30, 2026, the allowance for credit losses on unfunded commitments totaled $1.6 million as compared to $1.4 million at June 30, 2026, an increase of $130,000, or 9.1%. The increase in the provision for the three months ended September 30, 2026, was primarily due to an increase in the Company’s contractual obligation to extend credit.

Previous wording

Generally, management places loans on non-accrual status once the loans have become 90 days or more delinquent. A non-accrual loan is defined as a loan in which collectability is questionable and therefore interest on the loan will no longer be recognized on an accrual basis. A loan is not placed back on accrual status until the borrower has demonstrated the ability and willingness to make timely payments on the loan. A loan does not have to be 90 days delinquent in order to be classified as non-performing and may be placed on non-accrual when circumstances indicate that the borrower may be unable to meet the contractual principal or interest payments. The threshold for evaluating classified and non-performing loans specifically evaluated for individual credit loss is $250,000. Foreclosed real estate represents property acquired through foreclosure and is valued at the lower of the carrying amount or fair value, less any estimated disposal costs. The Company monitors loan modifications made to borrowers experiencing financial difficulty. As of March 31, 2026, three loans have been modified in the last 12 months with a total amortized basis of $2.8 million. As of March 31, 2025, there were five loans modified with a total amortized basis of $6.9 million.

Current wording

Generally, management places loans on non-accrual status once the loans have become 90 days or more delinquent. A non-accrual loan is defined as a loan in which collectability is questionable and therefore interest on the loan will no longer be recognized on an accrual basis. A loan is not placed back on accrual status until the borrower has demonstrated the ability and willingness to make timely payments on the loan. A loan does not have to be 90 days delinquent in order to be classified as non-performing and may be placed on non-accrual when circumstances indicate that the borrower may be unable to meet the contractual principal or interest payments. The threshold for evaluating classified and non-performing loans specifically evaluated for individual credit loss is $250,000. Foreclosed real estate represents property acquired through foreclosure and is valued at the lower of the carrying amount or fair value, less any estimated disposal costs. The Company monitors loan modifications made to borrowers experiencing financial difficulty. As of September 30, 2026, there were three loans being monitored that had been modified in the last 12 months, with a total amortized basis of $4.1 million. As of September 30, 2025, there were three loans being monitored that had been modified in the last 12 months, with a total amortized basis of $2.9 million.

Previous wording

Non-performing assets amounted to $3.1 million at March 31, 2026 and June 30, 2025, respectively. Loans on non-accrual status totaled $3.1 million at March 31, 2026, of which there were four residential real estate loans totaling $644,000 in the process of foreclosure. Included in non-accrual loans were $1.7 million of loans which were less than 90 days past due at March 31, 2026, but have a recent history of delinquency greater than 90 days past due. These loans will be returned to accrual status once they have demonstrated a history of timely payments. Loans on non-accrual status totaled $3.1 million at June 30, 2025, of which there were one commercial real estate loan totaling $142,000 and three residential real estate loans totaling $841,000 in the process of foreclosure. Included in non-accrual loans were $1.2 million of loans which were less than 90 days past due at June 30, 2025, but have a recent history of delinquency greater than 90 days past due.

Current wording

Non-performing assets amounted to $3.4 million and $3.9 million at September 30, 2026 and June 30, 2026, respectively. Loans on non-accrual status totaled $3.2 million at September 30, 2026, of which there were two residential real estate loans totaling $189,000 in the process of foreclosure. Included in non-accrual loans were $2.0 million of loans which were less than 90 days past due at September 30, 2026, but have a recent history of delinquency greater than 90 days past due. These loans will be returned to accrual status once they have demonstrated a history of timely payments. Loans on non-accrual status totaled $3.9 million at June 30, 2026, of which there were four residential real estate loans totaling $745,000 in the process of foreclosure. Included in non-accrual loans were $1.7 million of loans which were less than 90 days past due at June 30, 2026, but have a recent history of delinquency greater than 90 days past due. These loans will be returned to accrual status once they have demonstrated a history of timely payments.

Previous wording

Deposits totaled $2.8 billion at March 31, 2026 as compared to $2.6 billion at June 30, 2025, an increase of $132.7 million. The Company had $31.6 million and $51.6 million of brokered deposits at March 31, 2026 and June 30, 2025, respectively. NOW deposits increased $141.3 million, or 7.2%, and money market deposits increased $2.3 million, or 2.3% when comparing March 31, 2026 and June 30, 2025. Savings deposits decreased $7.5 million, or 3.0%, certificates of deposits decreased $2.3 million, or 1.0%, and noninterest bearing deposits decreased $1.1 million, or 1.0%, when comparing March 31, 2026 and June 30, 2025.

Current wording

Deposits totaled $2.8 billion at September 30, 2026 as compared to $2.7 billion at June 30, 2026, an increase of $134.4 million, or 5.0%. The Company had $41.6 million and $52.4 million of brokered deposits at September 30, 2026 and June 30, 2026, respectively. NOW deposits increased $111.3 million, or 5.6%, certificates of deposits increased $19.1 million, or 7.7%, and noninterest bearing deposits increased $13.9 million, or 9.9%, when comparing September 30, 2026 and June 30, 2026. Savings deposits decreased $5.5 million, or 2.3%, and money market deposits decreased $4.4 million, or 4.4%, when comparing September 30, 2026 and June 30, 2026.

Previous wording

Uninsured deposits after exclusions represent 12.5% of total deposits for both March 31, 2026 and June 30, 2025, respectively. The Company believes that this presentation provides a more accurate view of deposits at risk, given that affiliate deposits are not customer facing and therefore are eliminated upon consolidation, and collateralized deposits are fully secured by investments and municipal letters of credit. The Company continually monitors the level and composition of uninsured deposits.

Current wording

Uninsured deposits after exclusions represents 12.8% of total deposits as of September 30, 2026 and June 30, 2026, respectively. The Company believes that this presentation provides a more accurate view of deposits at risk, given that affiliate deposits are not customer facing and therefore are eliminated upon consolidation, and collateralized deposits are fully secured by investments and municipal letters of credit. The Company continually monitors the level and composition of uninsured deposits.

Previous wording

At March 31, 2026, the Bank had pledged approximately $693.8 million of its residential and commercial mortgage portfolio as collateral for borrowing and irrevocable municipal letters of credit at the Federal Home Loan Bank of New York (“FHLB”). The maximum amount of funding available from the FHLB was $448.7 million at March 31, 2026, of which there were $73.2 million of overnight borrowings, $4.2 million long-term fixed rate borrowings and $155.0 million irrevocable municipal letters of credit outstanding at March 31, 2026. At June 30, 2025, the Bank had $74.0 million in overnight borrowings, $4.2 million of long-term fixed rate borrowings and $90.0 million in irrevocable municipal letters of credit at the FHLB. Interest rates on overnight borrowings are determined at the time of borrowing. The irrevocable municipal letters of credit with the FHLB have been issued to secure municipal transactional deposit accounts, on behalf of Greene County Commercial Bank.

Current wording

At September 30, 2026, the Bank had pledged approximately $712.0 million of its residential and commercial mortgage portfolios as collateral for borrowings and irrevocable municipal letters of credit at the Federal Home Loan Bank of New York (“FHLB”). The maximum amount of funding available from the FHLB was $439.2 million at September 30, 2026, of which there were $40.0 million of overnight borrowings, $6.2 million long-term fixed rate borrowings and $150.0 million irrevocable municipal letters of credit outstanding. At June 30, 2026, the Bank had $119.0 million in overnight borrowings, $6.2 million of long-term fixed rate borrowings and $70.0 million in irrevocable municipal letters of credit at the FHLB. Interest rates on overnight borrowings are determined at the time of borrowing. The irrevocable municipal letters of credit with the FHLB have been issued to secure municipal transactional deposit accounts, on behalf of Greene County Commercial Bank.

Previous wording

The FHLB term borrowings include long-term fixed rate borrowings from the “FHLB 0.0% Development Advance (ZDA) Program.” The Company receives a corresponding credit related to the FHLB term fixed rate borrowings, which effectively reduces the interest rate paid to zero percent. At March 31, 2026 and June 30, 2025, the Bank had a FHLB long-term fixed rate borrowing of $2.2 million at a stated rate of 3.8%, maturing October 2027, and a FHLB long-term fixed rate borrowing of $2.0 million at a stated rate of 4.2%, maturing June 2028.

Current wording

The FHLB term borrowings include long-term fixed rate borrowings from the “FHLB 0.0% Development (ZDA) Advance Program.” The Company receives a corresponding credit related to the FHLB term fixed rate borrowings, which effectively reduces the interest rate paid to zero percent. At September 30, 2026 and June 30, 2026, the Bank had a FHLB long-term fixed rate borrowing of $2.2 million at a stated rate of 3.8%, maturing October 2027, a FHLB long-term fixed rate borrowing of $2.0 million at a stated rate of 4.2%, maturing June 2028, and a FHLB long-term fixed rate borrowing of $2.0 million at a stated rate of 4.2%, maturing June 2029.

Previous wording

The Bank pledges securities and certificates of deposits as collateral at the Federal Reserve Bank discount window for overnight borrowings. At March 31, 2026 and June 30, 2025, approximately $15.9 million and $18.2 million, respectively, of collateral was available to be pledged against potential borrowings at the Federal Reserve Bank discount window. There were zero overnight borrowings outstanding with the Federal Reserve Bank at March 31, 2026 and June 30, 2025.

Current wording

The Bank pledges securities and certificates of deposits as collateral at the Federal Reserve Bank discount window for overnight borrowings. At September 30, 2026 and June 30, 2026, approximately $15.8 million and $15.9 million, respectively, of collateral was available to be pledged against potential borrowings at the Federal Reserve Bank discount window. There were zero overnight borrowings outstanding with the Federal Reserve Bank at September 30, 2026 and June 30, 2026.

Previous wording

On September 17, 2020, the Company entered into Subordinated Note Purchase Agreements (“SNPAs”) with 14 qualified institutional investors, issued at 4.75% Fixed-to-Floating Rate due September 17, 2030, in the aggregate principal amount of $20.0 million, carried net of issuance costs of $424,000 amortized over a period of 60 months. These notes were callable on September 17, 2025 and had a floating interest rate of 8.99%. On October 1, 2025, the Company redeemed the entire outstanding principal amount of $20.0 million. The redemption was funded by cash on hand.

Current wording

On September 15, 2021, the Company entered into Subordinated Note Purchase Agreements (SNPAs) with 18 qualified institutional investors, issued at 3.00% Fixed-to-Floating Rate due September 15, 2031, in the aggregate principal amount of $30.0 million, carried net of issuance costs of $499,000 amortized over a period of 60 months. These notes were callable on September 15, 2026. As previously announced, on September 15, 2026, the Company redeemed $10.0 million of the aggregate principal amount. Following the redemption, $20.0 million in aggregate principal remained outstanding. The Company funded the redemption with cash on hand. At September 30, 2026, there were $20.0 million of these SNPAs outstanding, net of issuance costs.

Previous wording

For regulatory purposes, the Company allocated the SNPAs to the Bank of Greene County to qualify as Tier 1 capital subject to a 25.0% of capital limitation under risk-based capital guidelines. The portion that exceeds 25.0% of capital limitation qualifies as Tier 2 capital.

Current wording

For regulatory purposes, the Company allocated the SNPAs to Bank of Greene to qualify as Tier 1 capital subject to a 25% of capital limitation under risk-based capital guidelines. The portion that exceeds 25% of capital limitation qualifies as Tier 2 capital.

Previous wording

Shareholders’ equity increased to $267.6 million at March 31, 2026 as compared to $238.8 million at June 30, 2025, resulting primarily from net income of $29.7 million and a decrease in accumulated other comprehensive loss of $2.3 million, partially offset by dividends declared and paid of $3.3 million.

Current wording

Shareholders’ equity increased to $286.0 million at September 30, 2026 as compared to $277.8 million at June 30, 2026, resulting primarily from net income of $12.5 million, partially offset by an increase in accumulated other comprehensive loss of $3.5 million and dividends declared and paid of $859,000.

Previous wording

The Federal Reserve reduced interest rates by 100 basis points in the third and fourth quarters of 2024, and 75 basis points in the third and fourth quarters of 2025, while holding rates unchanged in the first quarter of 2026. With the recent Federal Reserve rate cuts, the long-term interest rates begin to decrease. This resulted in the fair values of the fixed income bond portfolio to increase and decrease the unrealized loss position as of March 31, 2026. Additionally, the Company continued to purchase investment securities in the higher interest rate environment, decreasing the unrealized loss position.

Current wording

The Federal Reserve reduced interest rates by 75 basis points in the third and fourth quarters of 2025 and then held rates steady in 2026 until September, when it raised interest rates by 25 basis points. Raising rates can slow the growth of the economy and may slow down inflation. Increases in long-term interest rates generally decreases the fair value of the fixed income bond portfolio and increase the unrealized loss position. The Company has continued to purchase investment securities in the higher interest rate environment to improve the overall yield of the portfolio.

Previous wording

As previously announced on April 15, 2026, the Board of Directors of the Company adopted a stock repurchase program. Under the repurchase program, the Company may repurchase up to 400,000 shares of its common stock, at management’s discretion, at prices management considers to be attractive, and in the best interests of both the Company and its stockholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company’s financial performance. For the three and nine months ended March 31, 2026, the Company did not repurchase any shares.

Current wording

Under the Company’s stock repurchase program, the Company may repurchase up to 400,000 shares of its common stock, at management’s discretion, at prices management considers to be attractive, and in the best interests of both the Company and its stockholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company’s financial performance. Under the Company’s current program, there were no repurchases during the three months ended September 30, 2026. As of the quarter ended September 30, 2026, 398,657 shares remain in the stock repurchase program.

Previous wording

(3) Dividends declared divided by net income. The MHC waived its right to receive dividends declared during the three months ended March 31, 2025, June 30, 2025, September 30, 2025, and December 31, 2025. Dividends declared during the three months ended September 30, 2024, and December 31, 2024, and March 31, 2026 were paid to the MHC. The MHC’s ability to waive the receipt of dividends is dependent upon annual approval of its members as well as receiving the non-objection of the Federal Reserve Board.

Current wording

(3) Dividends declared divided by net income. The MHC waived its right to receive dividends declared during the three months ended June 30, 2025, September 30, 2025, December 31, 2025, June 30, 2026, and September 30, 2026. Dividends declared during the three months ended March 31, 2026 were paid to the MHC. The MHC’s ability to waive the receipt of dividends is dependent upon annual approval of its members as well as receiving the non-objection of the Federal Reserve Board.

Previous wording

Comparison of Operating Results for the Three and Nine Months Ended March 31, 2026 and 2025

Current wording

Comparison of Operating Results for the Three Months Ended September 30, 2026 and 2025

Previous wording

The following table sets forth certain information relating to the Company for the three and nine months ended March 31, 2026 and 2025. For the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resultant yields, as well as the interest expense on average interest-bearing liabilities, are expressed in both dollars and rates. No tax equivalent adjustments made. Average balances were based on daily averages. Average loan balances include non-performing loans. The loan yields include net amortization of certain deferred fees and costs that are considered adjustments to yields.

Current wording

The following table sets forth certain information relating to the Company for the three months ended September 30, 2026 and 2025. For the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resultant yields, as well as the interest expense on average interest-bearing liabilities, are expressed in both dollars and rates. No tax equivalent adjustments made. Average balances were based on daily averages. Average loan balances include non-performing loans. The loan yields are calculated net amortization of certain deferred fees and costs that are considered adjustments to yields.

Previous wording

Return on average assets and return on average equity are common methods of measuring operating results. Annualized return on average assets increased to 1.37% and 1.31% for the three and nine months ended March 31, 2026 compared to 1.12% and 1.04% for the three and nine months ended March 31, 2025. Annualized return on average equity increased to 16.02% and 15.65% for the three and nine months ended March 31, 2026 as compared to 14.41% and 13.40% for the three and nine months ended March 31, 2025. The increase in return on average assets and average equity for the three and nine months ended March 31, 2026 was primarily the result of net income outpacing growth in the balance sheet.

Current wording

Return on average assets and return on average equity are common methods of measuring operating results. Annualized return on average assets increased to 1.61% for the three months ended September 30, 2026 as compared to 1.21% for the three months ended September 30, 2025. Annualized return on average equity increased to 17.73% for the three months ended September 30, 2026 as compared to 14.59% for the three months ended September 30, 2025. The increase in return on average assets and average equity for the three months ended September 30, 2026 was primarily the result of net income outpacing growth in the balance sheet.

Previous wording

Interest income amounted to $32.6 million for the three months ended March 31, 2026 as compared to $29.8 million for the three months ended March 31, 2025, an increase of $2.8 million, or 9.4%. Interest income amounted to $97.7 million for the nine months ended March 31, 2026 as compared to $87.0 million for the nine months ended March 31, 2025, an increase of $10.7 million, or 12.3%. The increase during the three and nine months ended March 31, 2026, was primarily due to the increase in the average balances on loans and securities. The increase in yields of loans and securities also increased during the comparative periods contributing to higher interest income.

Current wording

Interest income amounted to $34.6 million for the three months ended September 30, 2026 as compared to $31.6 million for the three months ended September 30, 2025, an increase of $3.0 million, or 9.4%. The increase during the three months ended September 30, 2026, was primarily due to the increase in the average balances on loans and securities and an increase in the average yields of loans and securities during the comparative periods contributing to higher interest income.

Previous wording

Average loan balances increased $129.9 million and $150.2 million and the yield on loans increased 6 and 14 basis points when comparing the three and nine months ended March 31, 2026 and 2025, respectively. The average balance of securities increased $58.9 million and $84.9 million and the yield on such securities increased 26 basis points for both the three and nine months ended March 31, 2026 and 2025, respectively. The average interest-bearing bank balances and federal funds decreased $24.7 million and $20.5 million and the yield on interest-bearing bank balances and federal funds decreased 77 and 72 basis points when comparing the three and nine months ended March 31, 2026 and 2025, respectively.

Current wording

Average loan balances increased $113.6 million and the yield on such loans increased 12 basis points when comparing the three months ended September 30, 2026 and 2025. The average balance of securities increased $58.4 million and the yield on such securities increased 24 basis points when comparing the three months ended September 30, 2026 and 2025. The average interest-bearing bank balances and federal funds decreased $14.6 million and the yield on interest-bearing bank balances and federal funds decreased 125 basis points when comparing the three months ended September 30, 2026 and 2025.

Previous wording

Interest expense amounted to $12.4 million for the three months ended March 31, 2026 as compared to $13.6 million for the three months ended March 31, 2025, a decrease of $1.2 million, or 8.7%. Interest expense amounted to $40.9 million for the nine months ended March 31, 2026 as compared to $43.6 million for the nine months ended March 31, 2025, a decrease of $2.7 million, or 6.0%. The decrease during the three and nine months ended March 31, 2026 was primarily due to the decrease in the average cost of funds, partially offset by the increase in the average balance of interest-bearing liabilities. The decrease in the cost of NOW deposits had the greatest impact on interest expense when comparing the three and nine months ended March 31, 2026 and 2025.

Current wording

Interest expense amounted to $12.7 million for the three months ended September 30, 2026 as compared to $14.1 million for the three months ended September 30, 2025, a decrease of $1.4 million, or 9.9%. The decrease in the cost of borrowings, NOW deposits and certificates of deposits had the greatest impact on interest expense when comparing the three months ended September 30, 2026 and 2025.

Previous wording

The cost of NOW deposits decreased 35 and 39 basis points, and the cost of certificates of deposits decreased 50 and 64 basis points when comparing the three and nine months ended March 31, 2026 and 2025, respectively. The growth in interest-bearing liabilities was primarily due to an increase in average NOW deposits of $129.6 million and $174.2 million and an increase in average certificates of deposits of $34.4 million and $45.2 million when comparing the three and nine months ended March 31, 2026 and 2025, respectively. This was partially offset by a decrease in average savings and money market deposits of $9.8 million and $14.0 million when comparing the three and nine months ended March 31, 2026 and 2025, respectively. When comparing the three and nine months ended March 31, 2026 and 2025, yields on interest-earning assets increased while the costs of interest-bearing deposits declined, reflecting continued asset repricing and the Company’s strategic reduction in deposit rates.

Current wording

The cost of NOW deposits decreased 39 basis points, the cost of certificates of deposits decreased 25 basis points, and the cost of savings and money market deposits decreased 4 basis points when comparing the three months ended September 30, 2026 and 2025. The growth in the average interest-bearing liabilities was primarily due to an increase in certificates of deposits of $51.8 million, an increase in average NOW deposits of $32.7 million, and an increase in average savings and money market deposits of $489,000 when comparing the three months ended September 30, 2026 and 2025. When comparing the three months ended September 30, 2026 and 2025, yields on interest-earning assets increased while the costs of interest-bearing deposits declined, reflecting continued asset repricing and the Company’s strategic reduction in deposit rates.

Previous wording

Net interest income increased $4.0 million to $20.2 million for the three months ended March 31, 2026, from $16.2 million for the three months ended March 31, 2025. Net interest income increased $13.4 million to $56.8 million for the nine months ended March 31, 2026, from $43.4 million for the nine months ended March 31, 2025. The increase in net interest income was due to an increase in the average balance of interest-earning assets, which increased $164.7 million and $215.6 million when comparing the three and nine months ended March 31, 2026 and 2025, respectively, an increase in interest rates on interest-earning assets, which increased 14 and 17 basis points when comparing the three and nine months ended March 31, 2026 and 2025, respectively, and a decrease in rates paid on interest-bearing liabilities, which decreased 29 and 31 basis points when comparing the three and nine months ended March 31, 2026 and 2025, respectively. The increase in net interest income was offset by an increase in the average balance of interest-bearing liabilities, which increased $144.1 million and $196.2 million when comparing the three and nine months ended March 31, 2026 and 2025, respectively.

Current wording

Net interest income increased $4.4 million to $21.9 million for the three months ended September 30, 2026, from $17.5 million for the three months ended September 30, 2025. The increase in net interest income was primarily due to an increase in the average balance of interest-earning assets, which increased $159.3 million when comparing the three months ended September 30, 2026 and 2025, an increase in the average yield on interest-earning assets, which increased 16 basis points when comparing the three months ended September 30, 2026 and 2025, and a decrease in the average rate paid on interest-bearing liabilities, which decreased 30 basis points when comparing the three months ended September 30, 2026 and 2025. The increase in net interest income was offset by an increase in the average balance of interest-bearing liabilities, which increased $101.8 million when comparing the three months ended September 30, 2026 and 2025.

Previous wording

Net interest income on a taxable-equivalent basis includes the additional amount of interest income that would have been earned if the Company’s 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 3.03% and 2.60% for the three months ended March 31, 2026 and 2025, respectively, and was 2.88% and 2.41% for the nine months ended March 31, 2026 and 2025, respectively.

Current wording

Net interest income on a taxable-equivalent basis includes the additional amount of interest income that would have been earned if the Company’s 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 increased 46 basis points to 3.24% for the three months ended September 30, 2026, from 2.78% for the three months ended September 30, 2025.

Previous wording

Management continues to closely monitor asset quality and adjust the level of the allowance for credit losses. The amount recognized for the provision for credit losses is determined by management based on its ongoing analysis of the adequacy of the allowance for credit losses. Provision for credit losses amounted to $451,000 and $1.1 million for the three months ended March 31, 2026 and 2025, respectively, and $1.9 million and $2.2 million for the nine months ended March 31, 2026 and 2025, respectively. The provision for the nine months ended March 31, 2026, was primarily attributable to an increase in loan volume offset by improvements in the economic forecasts used in the Current Expected Credit Loss model. The allowance for credit losses on loans to total loans receivable was 1.25% at March 31, 2026 as compared to 1.24% at June 30, 2025.

Current wording

Management continues to closely monitor asset quality and adjust the level of the allowance for credit losses. The amount recognized for the provision for credit losses is determined by management based on its ongoing analysis of the adequacy of the allowance for credit losses. Provision for credit losses amounted to a benefit of $432,000 for the three months ended September 30, 2026 as compared to a charge of $1.3 million for the three months ended September 30, 2025. The benefit for the three months ended September 30, 2026 was primarily attributable to the release of the allowance for credit losses associated with an individually evaluated loan that was repaid in full during the quarter, as well as improvements in the economic forecasts used in the Current Expected Credit Loss (“CECL”) model. The allowance for credit losses on loans to total loans receivable was 1.21% at September 30, 2026 as compared to 1.25% at June 30, 2026.

Previous wording

Noninterest expense increased $1.2 million, or 12.3%, to $11.3 million for the three months ended March 31, 2026 compared to $10.0 million for the three months ended March 31, 2025. The increase during the three months ended March 31, 2026 was primarily due to a $706,000 non-cash settlement charge as a result of the completed termination of the Company’s defined benefit pension plan, included in other expense, an increase of $588,000 in salaries and employee benefits, and an increase of $166,000 in service and data processing expenses. This was partially offset by a decrease of $277,000 in the allowance for credit losses unfunded commitment expense, included in other expense, due to a decrease in the Company’s contractual obligation to extend credit. Noninterest expense increased $2.8 million, or 9.7%, to $31.8 million for the nine months ended March 31, 2026 as compared to $29.0 million for the nine months ended March 31, 2025. The increase during the nine months ended March 31, 2026 was primarily due to an increase of $1.4 million in salaries and employee benefits, a $905,000 non-cash settlement charge as a result of the completed termination of the Company’s defined benefit pension plan, included in other expense, an increase of $355,000 in computer software, supplies and support fees, an increase of $252,000 in charitable contributions, included in other expense, as the Bank made a $250,000 charitable donation to the Bank of Greene County Charitable Foundation, an increase of $194,000 in service and data processing expenses, an increase of $162,000 in legal and professional fees, and an increase of $152,000 in occupancy expenses. This was partially offset by a $1.0 million decrease in the allowance for credit losses unfunded commitment expense, included in other expense.

Current wording

Noninterest expense increased $740,000, or 7.4%, to $10.8 million for the three months ended September 30, 2026 as compared to $10.1 million for the three months ended September 30, 2025. The increase during the three months ended September 30, 2026 was primarily due to an increase of $582,000 in salaries and employee benefits and an increase of $367,000 in the allowance for credit losses unfunded commitment expense, included in other expense, due to an increase in the Company’s contractual obligation to extend credit.