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2021 ReportG R E E N E C O U N T Y B A N C O R P, I N C . 2 0 2 1 A N N U A L R E P O R T Growing the Right Way LOOKING BEYOND THE BANK’S RAPID RISE FROM $1 BILLION TO $2 BILLION IN ASSETS PAGE 1 STORMING THE PORT THE PORT HELPING THE CARVER COMPANIES STIR UP COMMERCE IN COEYMANS PAGE 4 How Can We Help ? BANK OPENING NEW CUSTOMER SERVICE CENTER IN CATSKILL PAGE 15 MISSION: RESTORATION RESTORATION SAVING NEIGHBORHOODS WITH DEVELOPER PATRICK CHIOU PAGE 8 IN SIDE 1 GROWING THE RIGHT WAY PRESIDENT & CE O DO N GI B S ON O N RECORD EARNINGS FOR 2 02 1 A ND TH E P ATH FO RWA RD PARTNERING WITH CUSTOMERS 4 STORMING THE PORT HELPING THE CAR V ER COM PAN IES ST I R U P COM MERCE IN COEYMA NS 8 MISSION: RESTORATION RESTORING FORGOTTEN ALBANY BUILDINGS— AND TENANTS’ DIGNITY—WITH DEVELOPER PATRICK CHIOU 12 BOUNDARIES? NOT WHEN IT COMES TO ASSISTING LOCAL BUS INESSES AND TH E UL ST ER COUN TY R EG IO NAL CH AMBER OF CO MME RCE 15 HOW CAN WE HELP? BANK OF GREENE COUN T Y O PEN I N G NEW CUSTOMER SERV I CE CEN T ER I N C AT SK I L L 18-19 CONSOLIDATED FINANCIAL STATEMENTS 20-21 CORPORATE & BANK LEADERS back cover BRANCH & OFFICE LOCATIONS FIVE-YEAR FINANCIAL HIGHLIGHTS At or for the Years Ended June 30, Greene County Bancorp, Inc. (GCBC) is the parent company of the Bank of Greene County and its subsidiary, Greene County Commercial Bank. GCBC’s consolidated assets as of June 30, 2021, were $2.2 billion. The Bank of Greene County was founded in 1889 as The Building and Loan Association of Catskill. In 1974, the bank changed to a New York State-chartered mutual savings bank, under the name Greene County Savings Bank. In 1998, the bank converted to the mutual holding company form of ownership, changing its name to The Bank of Greene County. A commercial bank subsidiary, Greene County Commercial Bank, was formed in June 2004. The bank primarily serves Greene, Albany, Columbia and Ulster counties in New York State through administrative, lending, customer service and operations centers in Catskill, and 17 banking offices in Albany, Catskill (Main Street and Catskill Commons), Cairo, Chatham, Copake, Coxsackie, Germantown, Greenport, Greenville, Hudson, Kinderhook- Valatie, Kingston, Ravena-Coeymans, Tannersville, Westerlo and Woodstock. As part of its mission, the bank tries to foster a sense of community through personal service, local decision-making and participation with customers in community activities. (In thousands) Total assets 2021 2020 2019 2018 2017 $2,200,335 $1,676,803 $1,269,462 $1,151,478 $982,291 Loans receivable, net 1,085,947 Securities available-for-sale Securities held-to-maturity Equity securities Deposits Shareholders’ equity Net interest income Provision for loan losses Total noninterest income Total noninterest expense Provision for income taxes Net income 390,890 496,914 307 993,522 226,709 383,657 267 785,738 122,728 304,208 253 704,431 120,806 274,550 217 624,187 91,299 223,830 184 2,005,108 1,501,075 1,120,569 1,025,234 859,535 149,584 53,145 3,974 9,667 31,223 3,673 23,942 128,805 44,833 3,905 8,650 27,822 3,029 18,727 112,369 40,000 1,659 8,361 25,676 3,542 17,484 96,191 34,914 1,530 7,481 22,362 4,095 14,408 83,521 30,382 1,911 6,424 19,967 3,741 11,187 GROWING THE RIGHT WAY THE RIGHT WAY BANK ACHIEVES RECOR D NET I NCO ME FOR 13 TH CONSECUTI VE YEAR Fellow Shareholders, I could not be more pleased to report that your company continued on its remarkable upward trajectory in fiscal year 2021. Greene County Bancorp, Inc. (GCBC) posted record net income of $23.9 million for the year ended June 30, 2021, the 13th year in a row the company has set a record for net income. Those earnings represent an increase of $5.2 million, or 27.9%, over the prior fiscal year. We passed another significant milestone by ending the year with a new high of $2.2 billion in assets at June 30, 2021. Looking back at the company’s arc, it’s eye opening that it took us 129 years to reach the $1 billion mark, and only three years to more than double that number. At the risk of sounding repetitive—because this has been the case for many years—we continued to build momentum in all three of our core businesses: retail, commercial and municipal. Their robust performance fueled new highs in deposits, loans and capital, as well as achieving record assets. Of particular note is the opening of our first branch in Albany on Wolf Road in September 2020. To date the Wolf Road office has outperformed all of our previous branch openings. President & CEO Don Gibson on Main Street in Catskill, NY 1 \ As word spread among Albany area businesses that the Bank of Greene County was uniquely proficient at securing Paycheck Protection Program loans for COVID relief, applications poured in and we were able to help hundreds of companies. Where we really shined was in converting 90% of those loan transactions into full-blown banking relationships, a feat made possible by our physical presence in Albany, the Corporate Cash Management group and the entire bank team. The company is also experiencing a big lift in Columbia County, where the opening of our Kinderhook-Valatie branch two years ago has stimulated growth across our markets east of the Hudson River. We are continuing to grow for a number of reasons, but two rise above the others: the quality of our people and our investments in technology. We have brought in powerful software to help save customers time and money and solve problems on the spot. We are opening a new Customer Service Center in October that will support customers and employees alike, all to enhance the customer experience (see story in this report). Finally, we continue to encourage teamwork through a bank-wide profit-sharing plan and a range of ongoing team-building activities. We are mindful that rapid growth can be a slippery slope, especially for a community bank that prides itself on personal service and close ties to its customers. It’s easy to lose some of what makes you stand out when you grow too fast. We will try to moderate our growth, build up our KEY PERFORMANCE TRENDS NET INCOME (DOLLARS IN THOUSANDS) TOTAL ASSETS (DOLLARS IN THOUSANDS) 0 3 8 , 5 $ 1 7 3 , 6 $ 8 2 5 , 6 $ 9 8 1 , 7 $ 3 6 9 , 8 $ 7 8 1 , 1 1 $ 8 0 4 , 4 1 $ 4 8 4 , 7 1 $ 7 2 7 , 8 1 $ 2 4 9 , 3 2 $ , 6 5 6 0 9 5 $ , 5 0 6 3 3 6 $ , 1 6 1 4 7 6 $ , 7 4 6 8 3 7 $ , 1 8 7 8 6 8 $ , 1 9 2 2 8 9 $ 8 7 4 , 1 5 1 , 1 $ 2 6 4 , 9 6 2 , 1 $ 3 0 8 , 6 7 6 , 1 $ 5 3 3 , 0 0 2 , 2 $ 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 BASIC EARNINGS PER SHARE NET LOANS (DOLLARS IN THOUSANDS) 0 7 . 0 $ 6 7 . 0 $ 8 7 . 0 $ 5 8 . 0 $ 6 0 . 1 $ 2 3 . 1 $ 9 6 . 1 $ 5 0 . 2 $ 0 2 . 2 $ 1 8 . 2 $ 1 5 7 , 6 2 3 $ 6 2 4 , 9 5 3 $ 9 0 3 , 9 9 3 $ 6 9 4 , 3 4 4 $ 4 6 7 , 2 2 5 $ 7 8 1 , 4 2 6 $ 1 3 4 , 4 0 7 $ 8 3 7 , 5 8 7 $ 2 2 5 , 3 9 9 $ 7 4 9 , 5 8 0 , 1 $ 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Earnings per share have been restated for prior periods as a result of a 2-for-1 stock split which was paid on March 15, 2016. 2 back office and infrastructure, and then hit the accelerator again—once we’re confident we can do so the right way. Bigger must translate into better—for customers, communities, employees and shareholders. We are confident our strategies will get us there. There isn’t enough room here to name all of the people who are helping to move this company forward. I would like to thank James Campion, President Emeritus of Columbia-Greene Community College, for his service on our Advisory Board of Directors. He recently retired and was replaced by Tejraj Hada, owner of a regional group of Five Guys burger restaurants and a bank customer. Steve retired as Chief Lending Officer at the end of 2020 after 30-plus years with the bank. He was elected to the board in April and brings a deep understanding of the company to our planning process. We believe the company is well positioned to withstand any additional financial fallout from the pandemic. With your continued support and counsel, we can grow bigger—and better—for a very long time. Thank you, stay safe and take care of your neighbors. Sincerely, I would also like to welcome back Steve Nelson as the newest member of our Board of Directors. Donald E. Gibson President & Chief Executive Officer PS: Our annual shareholder brunch will not be held this year to ensure the safety of our owners, staff and other stakeholders. We encourage shareholders to vote by proxy. The Board of Directors will meet to conduct all necessary business at 2pm Tuesday, November 16, 2021, at our operations center in Catskill, NY. AWARDS AND HONORS 2021 KBW BANK HONOR ROLL 10th Consecutive Year Investment banking firm Keefe, Bruyette & Woods, Inc. again named GCBC one of the nation’s top- performing banks. KBW determined that only 16 institutions— just 4% of the banks screened—qualified for inclusion on the 2021 honor roll. Honor roll candidates are publicly traded banks with more than $500 million in total assets that consistently reported increases in earnings per share over the last ten years. 2021 NYS SENATE EMPIRE AWARD RECIPIENT State Senator Michelle Hinchey (from the 46th District) presented the award to the Bank of Greene County in recognition of its outstanding contributions to the growth, prosperity and betterment of local communities and New York State. BAUERFINANCIAL, INC. 5-STAR SUPERIOR RATING 12th Consecutive Year The Bank of Greene County and Greene County Commercial Bank again earned “5-Star Superior” ratings for financial strength and safety from BauerFinancial, Inc., a leading independent bank research firm. 3 A STORM AT THE PORT STIRRING UP A WHIRLWIND OF COMMERCE IN COEYMANS In front of a new barge maintenance facility (L to R): Carver Laraway, President of the Carver Companies; John Antalek, Commercial Chief Lending Officer for the bank; and Nick Laraway, Chief Operating Officer of the Carver Companies. 4 \ “ A STORM PARTNERING WITH CUSTOMERS CARVER COMP ANIES It was a harebrained idea that went well,” says Carver Laraway of his master plan to turn an abandoned brick factory into a full-service cargo port on the Hudson River. Carver, president of the Carver Companies, also planned to build an industrial park across the street that would lease exclusively to tenants who would require the services of such a port. “I called it my 30/30 club,” says Carver. “Thirty companies each with 30 employees. They would put 900 people in the community to work in industries that are mostly recession proof.” There must have been something to his mad- scientist swagger, because today the port and industrial park rumble like heavy-equipment beehives on either side of River Road in the otherwise quiet little town of Coeymans, just 10 miles south of Albany. Carver and his now deceased partner purchased the shuttered Powell & Minnock Brick Works back in 2003. The plant, which in its heyday produced 67 million bricks per year and sold to high-profile customers like Donald Trump Sr., had closed about four months earlier putting 150 people out of work. It was the last brick manufacturer operating in New York State. Carver considered reopening the brick plant but scrapped the idea due to a bleak economic outlook and competition from Canada and Puerto Rico. So, he asked himself, what does one do with 125 acres of open land alongside the Hudson River? “We’re looking at it and thought, why don’t we just make it a port?” Carver was already running a construction company and a sand and gravel business, both good fits for the port. It took him four years to obtain permits, complete the necessary dredging and fix up the buildings. Finally, the Port of Coeymans received its first vessel in 2008. In 2012, Carver bought an old mushroom farm on the opposite side of River Road and construction commenced on the 300-acre Coeymans Industrial Park. The park welcomed its first tenant in 2014. Today, Carver’s vision is well on its way to being fully realized. The industrial park is home to 18 companies employing about 500 people—scrap metal recyclers, a company that reclaims oil and other components from industrial transformers, a tenant that supplies road salt to municipalities throughout the northeast, even a medical marijuana grower. Meanwhile, the Port of Coeymans has developed the capacity to better support park tenants and other customers by adding a barge and tugboat fleet, cranes and marine lifts, docks, and open space for the modular construction of infrastructure like bridges, power plants and wind turbines. “We want customers affiliated with shipping, with cargoes inbound and outbound,” says Carver. “We’re a timeshare if you will. You don’t need that crane, don’t rent it. You only pay when you use something. Whether our trucks, warehouses, tugboats, barges, or our cranes…we’re basically a one-stop shop.” “We call it an industrial park on the water,” says Nick Laraway, Chief Operating Officer of the Carver Companies and Carver’s nephew. “That’s the concept.” 5 Recently, Nick has been overseeing the construction of a new 74,000-square-foot barge maintenance facility at the port. The hanger- like structure will be able accommodate up to four 900-ton barges in a climate-controlled environment. Nick called on the Bank of Greene County to help finance the new barge facility and two road salt warehouses in the industrial park with 430,000 square feet of space. Nick had already secured a loan from the bank to convert some residential buildings into apartments. During that process, he developed a close relationship with John Antalek, the bank’s Commercial Chief Lending Officer. “Every time we needed anything we called him and he said I’ll get it done and I’ll get it done faster than anyone else,” says Nick. “When we find someone like that we tend to gravitate toward them because speed is critical for us. “When the opportunity came about to do these two salt buildings and the barge building, we threw it out there and John said the Bank of Greene County could do it,” adds Nick. “I think he had approval turned around in less than a month.” And that was no small feat. The $19 million in financing for all three buildings was one of the largest transactions the bank had ever done. It was important for the bank to understand how the supply chain works—from ship, to barge, to warehouse, to customer. “For many of our tenants we provide logistics all the way from when the cargo arrives to when it gets to the customer,” says Nick. “So they’re not relying on other third parties to handle their trucking or their deliveries.” “We wanted to understand their entire business,” says John. “For instance learning where the salt comes from. It was amazing to me that a lot of it actually comes from Egypt. They flood a section of the desert, dry it out, float it up on a barge and ship it here.” To make the deal work, John put together a group of finance partners with the Bank of Greene County as the lead. “I was able to get all of the bankers onsite and make it tangible for them,” adds John. “We got on a bus and Carver took us around and explained everything. That makes it real for people. It’s one thing to sit in a boardroom and talk about it. But to show them, I think that helped a lot.” The financing package closed in August 2020. “We had salt going into the first building by September and into the second building by October. So we got them built very quickly,” says Nick. The barge facility is scheduled Cranes, tugboats and barges are available for rent at the Port of Coeymans. 6 The new 74,000-square-foot barge maintenance facility will feature heated floors and roll-up doors across the front. The concrete bases for the building were salvaged from the recently demolished Tappan Zee Bridge. The Carver Companies had a contract to haul away and recycle 100,000 tons of concrete from the old bridge. to begin operations in the Fall of 2021. “When you’re working on a barge, you’re down in big steel tanks that can either be too cold, too hot, too snowy, or too slippery,” says Carver. “Soon we’ll be able to just pick up the barge and bring it inside where it’s climate controlled.” He expects the efficiency of welding and other repair operations to increase dramatically. In addition to road salt, the port handles a lot of stone, gypsum and bauxite—materials used by the neighboring LaFarge Ravena plant to make cement. The port played a pivotal role in the construction of the new Tappan Zee Bridge (renamed the Mario M. Cuomo Bridge) and a number of other New York bridges. The availability of flat open space facilitates the assembly of large bridge components that can be loaded on to barges and floated down the river. Use of the port for the assembly of wind turbines, or parts of them, is also in the works. These will be used at wind farms off the coast of New York State. “We’re pretty serious about moving cargo,” says One of two massive road salt warehouses financed by the Bank of Greene County. About 850,000 tons of salt passed through the Coeymans terminal in 2020, arriving by ship and going out by truck. Carver. The Carver Companies include seven tugboats, 40 barges, 100 trucks, eight quarries, plus marine facilities in South Carolina, Florida and Massachusetts. They employ about 550 people in all, with 65 of them in Coeymans. “The Bank of Greene County helped us make a tremendous amount of progress and we’re looking to do a lot more,” says Nick. 7 Developer Patrick Chiou and Perry Lasher, Chief Lending Officer for the Bank of Greene County, outside of a recently renovated apartment building at 80-82 North Allen Street in Albany. RESTORING RESTORING FORGOTTEN FORGOTTEN BUILDINGS… BUILDINGS… and People’s Dignity and People’s Dignity ON A MI SSI ON TO PROVIDE QUA L I TY H OU SI NG FOR ALL 8 PARTNERING WITH CUSTOMERS DEVELOPER P ATRICK CHI OU Patrick Chiou is right at home tromping through the dust and debris of a hollowed- out rowhouse in Albany’s Arbor Hill neighborhood. This has become his calling in life, and it’s a far cry from the glitzy one he once knew as a New York City party promoter. mistakes,” says Patrick. Letting tenants slide on the rent because a relative had passed away (for the “tenth” time), falling behind on maintenance because no money was coming in, trying to save old building components rather than replacing them. He learned a lot. The son of Taiwanese immigrants, Patrick graduated from the University at Albany in 2006 with a bachelor’s in East Asian Studies. He had also soaked up some of the university’s considerable party culture. “I learned to be a professional beer pong player, a professional drinker,” he admits. So after graduation, he returned to his home on Long Island to leverage those particular skill sets. “I became a New York City nightlife promoter. I was a big party guy, and I did that for four or five years after college,” says Patrick. “My parents got seriously mad at me…they said do something with your life that’s real.” They actually did a little more than pass out parental advice. They got him a job learning construction in the city—and it doesn’t get a whole lot more “real” than that. “Watching construction was my catalyst for getting into development,” says Patrick. “I’ve always seen myself as more of a construction guy versus a developer…I’m usually in my jeans and boots getting dirty.” After working downstate as a project manager for a few years, Patrick and his associates decided they wanted to buy a building, but property in the city was just too expensive. He immediately thought of Albany—where he had first broken away from his strict upbringing filled with piano and viola lessons. Patrick also found a niche rehabbing abandoned, boarded-up buildings. “The scarier it looks, the more work involved, the better,” he says. “That’s what I want to do…buildings where the roof is literally caving in…full development projects.” Where there are crumbling walls and decaying floors, Patrick sees control. “My model is to do complete gut jobs,” he says. “These are hundred-year-old buildings, and the only way to know I won’t have a problem is to rip it all out and do it myself.” And rising from the rubble is a surprisingly diverse portfolio of restored buildings that have added over 100 apartments to the Albany housing market, all managed by his own rental agency. “There’s more to development for me than just making money,” says Patrick. “Going into an area where there are dilapidated buildings and leaving something brand new…it’s a feel-good thing. I feel like I’m making a difference.” Along for the journey, almost from the start, has been Perry Lasher, Business & Retail Chief Lending Officer for the Bank of Greene County. “I began working with Patrick’s former partner back in 2011,” says Perry. “Then we reconnected five or so years ago through Patrick’s mortgage broker.” “The Bank of Greene County has been great to us,” says Patrick. “We love the relationship with them, and we love doing projects with them. “We bought our first building on Washington Avenue about nine years ago and made all of our “I have different buildings that appeal to different types of tenants, depending on the geographic 9 Turning urban blight into “affordable luxury” for low-income tenants. Developer Patrick Chiou has been working on restoring these row houses at 525-541 Clinton Avenue in Albany for over half a decade. area. We want to respect the neighborhood when planning a project.” In 2018, he completed the renovation of several boarded-up residences at 800-806 Broadway, located adjacent to Albany’s warehouse district and Arbor Hill neighborhood. A $2 million investment financed by government and private sources turned the all-but-condemned structures into 15 new one- and two-bedroom apartments. Albany Mayor Kathy Sheehan and other community leaders lauded Patrick for the effort. Last year, he completed the $750,000 rehab of an abandoned building at 80-82 North Allen Street in Albany. Another developer had turned the building into a boarding house with as many as 27 micro units at one time. The neighborhood hated it and eventually compelled the owner to The Bank of Greene County financed the project with a construction loan and then converted it into a term loan once the work was finished. “These deals are a little more complicated than straight mortgages,” says Perry. “You need to share the vision and stay close to what’s going on, and the bank does both of those things.” shut it down, according to Patrick. “It had been “They keep everything very streamlined with us,” an eyesore in this neighborhood for years. We adds Patrick. “They understand what our product came in and gutted it out and made it into six is and how our timelines work.” two- and three-bedroom apartments. Patrick needs good financial partners, because the “The bedrooms all have ensuite bathrooms, so process often isn’t easy. He has been working on we’re kind of catering to people who want to have renovating 525-541 Clinton Avenue in Albany roommates but don’t want to share a bathroom,” for the last six years. The numbers really didn’t says Patrick. 10 make sense until the state came out with its Small Building Participation Loan Program, which offered a subsidy of up to $50,000 per unit. “We got a $2 million low-interest loan that made the project work. It also gave us an opportunity to provide a really nice product.” As a condition of the state subsidy, the Clinton Avenue apartments must be rented to lower- income tenants, which aligns perfectly with Patrick’s mission. “I’m a true believer that everybody deserves to live in a nice place. Your home is your base, and to some degree shapes who you are…everything starts from there. “I’m bringing that mentality into lower-income areas,” says Patrick. “Our model is to provide affordable luxury units, and I know that sounds like it doesn’t make sense. But that’s what we’re shooting for with the Clinton Avenue project.” The bank has helped finance 10 of Patrick’s projects to date, according to Perry. “We’ve also converted a lot of his loan portfolio to our Fast Finish Commercial Mortgage product to shorten the terms and save him money.” And there’s much more on the horizon for Patrick and his partnership with the bank. Plans are in the works to convert the old St. John’s Church in Albany’s South End into 27 apartments and the former Freihofer Bakery at 242 Spruce Street into 37 residential units and ground-floor commercial space. The old bakery is located in Albany’s Sheridan Hollow neighborhood. FROM PARTY ANIMAL TO URBAN PIONEER — Patrick Chiou finds redemption in rehabbing buildings. Perry. “He has renovated many rundown, blighted properties in Albany and turned them into beautiful multifamily locations. “Patrick is also a super nice guy,” adds Perry. “To celebrate the Chinese New Year, he rents out an entire Chinese restaurant in Albany and invites a large group of friends and business associates to join the festivities.” While Patrick has earned accolades locally as a champion of urban renewal, what do his parents think of his rise from beer pong to respectability? “My parents are proud but still worry about me. I’m the wild child between me and my little sister,” he says, “but as every year passes I can see “Patrick is true American success story,” says that they get more and more relaxed.” 11 STROLLING PAST THE OLD DUTCH CHURCH in Kingston, NY (L to R): Sean DuBois, Southern Region Executive and Commercial Lender for the Bank of Greene County; Ward Todd, President and CEO of the Ulster County Regional Chamber of Commerce; and Justin Goldman, Commercial Lending and Business Development Officer for the bank. 12 PARTNERING WITH CUSTOMERS ULSTER COUNT Y REGIONAL CH AMBER BOUNDARIES? NO T WHEN IT COMES TO HELP ING LOCAL BUSINES SES When a bank named after one county teams up with a chamber of commerce named after another, you begin to understand that community banking has no boundaries— especially when local businesses need help during a pandemic. Bank of Greene County commercial loan officers Sean DuBois and Justin Goldman never flinched when COVID-19 threatened the well-being of the Ulster County Regional Chamber of Commerce and its 1,000 member businesses. “That was a time when a lot of banks were shutting off financing due to all of the uncertainty,” says Justin. “But Sean and I and the bank believed in the chamber’s vitality and mission.” The bank had been developing a relationship with the chamber ever since expanding into Ulster County in 2012, sponsoring mixers and other events. But the depth of that relationship grew even more in early 2020. “During the pandemic when things were at a low point for us, we were able to connect with the bank,” says Ward Todd, President and CEO of the Ulster chamber. “They helped us with a grant and new mortgage for our building.” Sean recognized an opportunity to save the chamber money by refinancing its headquarters on Fair Street in Kingston. They closed on one of the bank’s popular Fast Finish Commercial Mortgages in August 2020. The refinance saved the chamber thousands of dollars per year in interest and reduced the payback time. “Like a lot of businesses, we didn’t know what the future was going to bring,” says Ward. “We felt one of our biggest issues was going to be making our mortgage payment every month. The refinance took a little pressure off of us.” Meanwhile, local utility Central Hudson had announced its “Back to Business” grant program to help commercial customers who were impacted by COVID. In coordination with Central Hudson, Justin led the bank’s efforts to help distribute $1 million in economic support to local businesses with fewer than 20 employees. “Central Hudson’s idea was to put the grants out there and let the banks wrap them into larger financing packages,” says Justin. In all, the Bank of Greene County distributed $100,000 in grants to 14 recipients. They included restaurants, specialty shops, accounting firms and the Ulster County Regional Chamber of Commerce. The chamber was awarded its grant in September 2020. 13 13 Bank of Greene County loan officers Sean DuBois and Justin Goldman flank Ulster Chamber President and CEO Ward Todd in front of the chamber’s headquarters in Kingston, NY. With in-person events cancelled due to COVID, the chamber used the funding to transition to online recruitment and member support, according to Justin, who also serves as the chamber’s treasurer. “There were a lot of costs associated with the pivot to online. They used the funds to buy video The bank partnered with utility Central Hudson and the Ulster chamber to help businesses cope with COVID. and recording equipment that wasn’t in the original budget, which was put together before the pandemic.” 14 Through effective social media campaigns, the chamber was actually able to add members, says Ward. “It turned out to be a good year for us, but who knew? And 2021 looks even better so far.” So how does a bank based in Greene County forge such strong bonds with a chamber of commerce in Ulster County? “Much like the chamber, it’s all about relationships,” says Ward, “and we’ve had a great relationship with both Sean and Justin for a number of years.” “I knew Ward when I was growing up from his days on the radio,” says Sean. Ward was a familiar voice in the mid-Hudson Valley, having worked as a local radio announcer for decades. “The chamber’s been with us every step of the way,” adds Sean. “We typically sponsor a mixer every January, they helped celebrate the opening of our new Kingston branch in 2015…it’s been a wonderful relationship.” \ HOW MAY WE HELP YOU? BANK OPE NING NEW CUSTOM E R SERVI CE CE NTER I N CATSK ILL Bank of Greene County President & CEO Don Gibson and Assistant Vice President of e-Services Susan Wren outside the renovated building that will house the new Customer Service Center. 15 \\ww The Customer Service Center’s new home at 491 Main Street was once a dance studio and before that a laundromat. The restoration of the building extends the bank’s investment in Catskill to the upper part of the town’s main thoroughfare. new state-of-the-art Customer Service The Bank of Greene County is opening a and renovated at 491 Main Street in Catskill. Center in a building it recently purchased expects most of those seats will be filled within the next few years. The operations staff will remain at 288 Main Street. The space vacated by customer service will The bank anticipates continued growth in its be used to accommodate new hires. The bank customer base and deemed the upgrade necessary has added 20 new positions since the to maintain the quality of the customer experience. middle of 2020. “As we continue to grow,” says Don Gibson, Assistant Vice President of e-Services President and CEO, “the last thing we want to see Susan Wren was charged with is an increase in call volume that results in a drop reimagining and modernizing the in service levels. So we’re getting out ahead of it.” Customer Service Center when she The Customer Service Center’s 12 staff members are expected to move into the new space in October, leaving their current home at 288 Main joined the bank in 2014.“They gave me an opportunity to start a department from the ground up,” says Susan. Street, which they share with the Operations Before joining the Bank of Greene Center. The new 2,500-square-foot building County, Susan worked at a regional bank for will have room for 24 employees, and the bank 12 years in branch operations, where she also ran 16 an internal help desk that supported employees. “It was very similar to a customer call center, so I gained a lot of valuable knowledge and experience.” She used that experience to establish policies and procedures for the department and was also tasked with hiring and training additional staff. After launching new software in March 2015, the Customer Service Center was receiving an average of 6,500 calls per month. Average calls received climbed to 9,100 per month for 2020 and are trending toward 10,000 per month for 2021. The department’s growth has been organic, with staff added as the call volume increased, according to Susan. “But we didn’t just add employees, we also took on new responsibilities.” “It’s important that we develop well-rounded team members,” says Susan. “Not only to give the best possible service to the bank’s customers but also to promote long-term, versatile employees, something I feel very strongly about. “Although it’s our most important role, the potential for burnout is there when team members are constantly taking call after call. To prevent this, we’ve incorporated several projects and tasks our staff can work on as time permits.” Today, the Customer Service Center performs three main functions: • Customer Support—Helping customers by answering questions about bank products and services, including online banking, bill pay and other electronic applications. • Switchboard—Routing all incoming calls to the proper branch, department or person. • Company Intranet—Creating and maintaining content on the bank’s intranet, and helping employees access and use the resources available. The Customer Service Center is also leading the bank’s initiative to digitize all of its forms and documents. Susan feels all of her training and experience have led her to this place—working for a community bank where she has been able to make a real difference. In fact, when one of her former colleagues learned she was moving to the Bank of Greene County, she remarked: “Oh, to work for a small bank again!” And that, Susan says, is a direct quote. Average calls received climbed to 9,100 per month for 2020 and are trending toward 10,000 per month for 2021.” 17 GREENE COUNTY BANCORP, INC. Consolidated Statements of Financial Condition (In thousands, except share and per share amounts) 2021 2020 June 30, ASSETS Total cash and cash equivalents Long term certificates of deposit Securities available-for-sale, at fair value Securities held-to-maturity, at amortized cost (fair value $519,042 at June 30, 2021; $405,512 at June 30, 2020) Equity securities, at fair value Federal Home Loan Bank stock, at cost Loans Allowance for loan losses Unearned origination fees and costs, net Net loans receivable Premises and equipment, net Bank owned life insurance Accrued interest receivable Foreclosed real estate Prepaid expenses and other assets Total assets LIABILITIES AND SHAREHOLDERS’ EQUITY Noninterest-bearing deposits Interest-bearing deposits Total deposits Borrowings from other banks, short-term Borrowings from Federal Home Loan Bank, long-term Subordinated notes payable, net Accrued expenses and other liabilities $ 149,775 $ 40,463 4,553 390,890 496,914 307 1,091 1,108,408 (19,668) (2,793) 1,085,947 14,137 40,425 7,781 64 8,451 4,070 226,709 383,657 267 1,226 1,012,660 (16,391) (2,747) 993,522 13,658 — 8,207 — 5,024 $2,200,335 $1,676,803 $ 174,114 1,830,994 2,005,108 3,000 — 19,644 22,999 $ 138,187 1,362,888 1,501,075 17,884 7,600 — 21,439 Total liabilities 2,050,751 1,547,998 SHAREHOLDERS’ EQUITY Preferred stock, Authorized — 1,000,000 shares; Issued — None Common stock, par value $.10 per share; Authorized — 12,000,000 shares; Issued — 8,611,340 Outstanding — 8,513,414 shares at June 30, 2021 and June 30, 2020 Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock, at cost 97,926 shares at June 30, 2021 and June 30, 2020 Total shareholders’ equity — — 861 11,017 139,775 (1,161) (908) 149,584 861 11,017 118,263 (428) (908) 128,805 Total liabilities and shareholders’ equity $2,200,335 $1,676,803 See notes to consolidated financial statements 18 GREENE COUNTY BANCORP, INC. Consolidated Statements of Income (In thousands, except share and per share amounts) INTEREST INCOME: Loans Investment securities — taxable Mortgage-backed securities Investment securities — tax exempt Interest-bearing deposits and federal funds sold Total interest income INTEREST EXPENSE: Interest on deposits Interest on borrowings Total interest expense Net interest income Provision for loan losses Net interest income after provision for loan losses NONINTEREST INCOME: Service charges on deposit accounts Debit card fees Investment services E-commerce fees Bank owned life insurance Other operating income Total noninterest income NONINTEREST EXPENSE: Salaries and employee benefits Occupancy expense Equipment and furniture expense Service and data processing fees Computer software, supplies and support Advertising and promotion FDIC insurance premiums Legal and professional fees Other Total noninterest expense Income before provision for income taxes Provision for income taxes Net income Basic earnings per share Basic average shares outstanding Diluted earnings per share Diluted average shares outstanding Dividends per share See notes to consolidated financial statements Years Ended June 30, 2021 2020 $45,275 816 4,203 7,953 81 58,328 4,221 962 5,183 53,145 3,974 49,171 3,414 3,860 732 113 425 1,123 9,667 19,166 2,169 637 2,621 1,369 491 738 1,212 2,820 31,223 27,615 3,673 $23,942 $ 2.81 8,513,414 $ 2.81 8,513,414 $ 0.48 $39,159 654 5,804 7,075 622 53,314 8,241 240 8,481 44,833 3,905 40,928 3,926 2,980 559 113 — 1,072 8,650 17,170 1,865 749 2,450 1,064 473 321 1,111 2,619 27,822 21,756 3,029 $18,727 $ 2.20 8,529,927 $ 2.20 8,529,927 $ 0.44 19 Leadership Team BRANCH ADMINISTRATION INFORMATION TECHNOLOGY MARKETING Gregory Spampinato Vice President and Chief Information Officer Margaret Tobiassen Assistant Vice President of IT Application Support Nathan Jones Manager of IT Infrastructure LENDING Tim Penk Senior Vice President and Chief Credit Officer Martha Keeler Vice President and Director of Marketing Susan Timan Assistant Vice President of e-Communications and Corporate Secretary MUNICIPAL BANKING Donald MacCormack Vice President of Municipal Banking Jonathan Halligan Municipal Banking Officer Sean DuBois Vice President, Southern Region Executive and Commercial Lender Robert Gibson Senior Advisor, Municipal Banking Officer OPERATIONAL SUPPORT, COMPLIANCE, AND FACILITIES Cynthia DuPilka Vice President of BSA, Compliance and Operational Support Nicholas Frantjeskos Assistant Vice President of BSA and Operational Support Rick Fernandez Information Security Officer Dan Lamarre Facilities Director and Security Officer OPERATIONS John Olivett Vice President of Operations Susan Wren Assistant Vice President of e-Services (Customer Service Center) Debra Guilzon Operations Manager Trish Lamb Vice President and Director of Residential and Consumer Lending Tina Selner Vice President and Chief of Credit Administration Robert Agostinoni Vice President of Commercial Lending and Business Development Brian Stickles Vice President of Commercial Lending and Business Development Jennifer Beers Assistant Vice President of Commercial Loan Originations Justin Goldman Commercial Lending and Business Development Officer Stephanie Premo Business Development Officer Cheryl Rothkranz Credit Manager and Officer Scott Lanzarone Senior Credit Analyst and Officer Alan Breindel Director of Special Assets, Commercial Lending Joseph Rothrock Fire and EMS Specialist Joseph Szepessy Portfolio Manager and Business Development Specialist Jackie Stiffler Consumer and Residential Lending Manager Ashley Taylor Loan Servicing Manager Andrea DiPace Vice President and Branch Administrator Amy Conte Regional Business Development Officer Christa Bush Regional Branch Officer BRANCH MANAGERS Betsy Braley Timothy Braunfeld Keith DeMichele Chris Hamilton Heather Hart Alyson Kozlowski Lisa Messina Kathy Proper Kristen Schiffer Gillian Sims-Elster Olivia Soltan Sarah VanAlphen Karishma Vermani Catherine Wade CORPORATE CASH MANAGEMENT Allen Austin Vice President, Director of Corporate Cash Management and Administration FINANCE Nick Barzee Vice President and Controller John Dudek Finance Officer and Assistant Controller Allison Eldred Investment Portfolio Officer HUMAN RESOURCES Mary Seely Vice President and Director of Human Resources Kathryn Nelson Human Resources Officer INVESTMENT SERVICES Timothy Bartholomew Vice President and Director of Investment Services 20 BOARD OF DIRECTORS Greene County Bancorp, Inc., the Bank of Greene County & Greene County Commercial Bank Jay Cahalan President & Chief Executive Officer, Columbia Memorial Health Donald Gibson President & Chief Executive Officer, Greene County Bancorp, Inc. Peter Hogan, CPA Shareholder, Karp, Ackerman, Small & Hogan, CPAs, PC David Jenkins, DVM Former owner, Catskill Animal Hospital Stephen Nelson Retired Chief Lending Officer, Bank of Greene County Michelle Plummer, CPA, CGMA Senior Executive Vice President, Chief Operating Officer & Chief Financial Officer, Greene County Bancorp, Inc. Charles H. Schaefer, Esq. Founding Partner, Deily and Schaefer Paul Slutzky Chairman of the Board Former co-owner, Hunter Mountain Ski Bowl, Inc. EXECUTIVE OFFICERS Donald Gibson President & Chief Executive Officer Michelle Plummer, CPA, CGMA Senior Executive Vice President, Chief Operating Officer & Chief Financial Officer Perry Lasher Executive Vice President, Business & Retail Chief Lending Officer John Antalek Executive Vice President, Commercial Chief Lending Officer ADVISORY BOARD OF DIRECTORS The Bank of Greene County Frances Spreer Albert, CPA Executive Vice President, COO & CFO, Albany Medical Center John Brust Principal & Owner, Delaware Engineering, D.P.C. Sean M. Byrne, Esq. Executive Deputy Commissioner, NYS Office of Addiction Services & Supports Christopher Cannucciari, MBA, CPA, ABV Partner, Lutz, Selig & Zeronda, LLP David Crawford, PE President and founder, Crawford & Associates Engineering & Land Surveying, PC Bradley Cummings, CPA, CVA Managing Director, UHY Advisors Tejraj Hada Owner of RSVT Holdings, LLC and Fresh Treats Holdings, LLC Eric Hannay President & Chief Executive Officer, Hannay Reels, Inc. Pamela Hassett Principal Member, PSH Management Consulting Services, LLC Daniel Leader Owner, Founder & Board Chair, Bread Alone Ronald Teator Owner, Crossroads Ford DIRECTORS EMERITUS Walter H. Ingalls Retired Chairman of the Board and former President, GNH Lumber Co. Dennis O’Grady Pharmacist, former owner, Mikhitarian Pharmacy Martin Smith Retired Chairman of the Board Retired consultant to Main Bros. Oil Company, Inc. and former owner, R.E. Smith Fuel Company J. Bruce Whittaker Retired President & Chief Executive Officer, Greene County Bancorp, Inc. Annual Meeting of Shareholders 2:00 p.m., November 16, 2021 288 Main Street Catskill, NY 12414 Stock Listing The NASDAQ Capital Market under the symbol GCBC Special Counsel Luse Gorman, PC 5335 Wisconsin Avenue, N.W., Suite 780 Washington, D.C. 20015 Independent Auditors Bonadio & Co. LLP 432 North Franklin Street Syracuse, NY 13204 Shareholder Information Stock Transfer Agent and Registrar Shareholders needing to report a change of name or address, as well as request information about shareholder’s records, lost or stolen certificates, dividend checks, dividend direct deposit, and dividend reinvestment plan should contact: Computershare Investor Services P.O. Box 505000 Louisville, KY 40233-5000 (888) 294-8217 Investor Centre™ Portal: www.computershare.com/investor Requests for transfers of shares should be directed to the address above. Annual Report on Form 10-K A copy of Greene County Bancorp, Inc.’s Form 10-K for the fiscal year ended June 30, 2021, will be furnished without charge to shareholders upon written request to: Secretary Greene County Bancorp, Inc. 302 Main Street P.O. Box 470 Catskill, New York 12414 21 BRANCH AND OFFICE LOCATIONS ALBANY 103 Wolf Road Albany, NY 12205 518-458-6150 CATSKILL Main Branch and Investment Center 425 Main Street Catskill, NY 12414 518-943-3700 CATSKILL COMMONS 100 Catskill Commons Catskill, NY 12414 518-719-8060 CAIRO 230 Matthew Simons Road Cairo, NY 12413 518-622-2662 CHATHAM 2631 Route 66 Ghent, NY 12075 518-392-9600 COPAKE 179 County Route 7A Copake, NY 12516 518-329-2265 COXSACKIE 2 Technology Drive Coxsackie, NY 12051 518-731-2731 GERMANTOWN 4266 State Route 9G Germantown, NY 12526 518-537-5596 GREENPORT 160 Fairview Avenue Hudson, NY 12534 518-697-3421 GREENVILLE 4 Garland Lane Greenville, NY 12083 518-966-5200 HUDSON Proprietor’s Hall 21 North 7th Street Hudson, NY 12534 518-697-3311 KINDERHOOK-VALATIE 2827 U.S. 9 Valatie, NY 12184 518-758-6911 KINGSTON 2 Miron Lane Kingston, NY 12401 845-336-4797 RAVENA-COEYMANS 2494 U.S. Route 9W Ravena, NY 12143 518-756-3003 TANNERSVILLE 6176 Main Street Tannersville, NY 12485 518-589-0800 WESTERLO 593 Route 143 Westerlo, NY 12193 518-797-3934 WOODSTOCK 81 Mill Hill Road Woodstock, NY 12498 845-679-8900 ADMINISTRATIVE CENTER 302 Main Street Catskill, NY 12414 518-943-2600 CUSTOMER SERVICE CENTER 491 Main Street Catskill, NY 12414 518-943-2600 LENDING CENTER 341 Main Street Catskill, NY 12414 518-943-1424 OPERATIONS CENTER 288 Main Street Catskill, NY 12414 518-943-2600 Administrative Center: 302 Main Street | Catskill, New York 12414 Mailing Address: P.O. Box 470 | Catskill, New York 12414 518-943-2600 | www.tbogc.com 001CSN4CDD
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