Greene County Bancorp Inc (GCBC)GCBC

Greene County Bancorp Inc. (GCBC)

Company Profile:

Detailed history and background: Greene County Bancorp Inc. (GCBC) was founded in 1945 as a community bank in Snow Hill, North Carolina. The company has grown organically over the years and currently operates as a holding company for its subsidiary, Greene County Bank. Greene County Bank serves the local community through its seven branch offices located in eastern North Carolina.

Core business areas: Greene County Bancorp Inc.'s core business is traditional community banking. The company provides a range of financial products and services to individuals and businesses, including:

• Checking and savings accounts
• Loans (commercial and consumer)
• Mortgage lending
• Cash management services
• Credit cards

Leadership and Corporate Structure: Greene County Bancorp Inc. is led by President and CEO, Kenneth J. Braswell. The company's board of directors consists of eight individuals, primarily from eastern North Carolina. The corporate structure is relatively flat with limited layers of management.

Top Products and Market Share:

Top Products:

• Loans: Loans are the primary income driver for Greene County Bancorp Inc., accounting for over 65% of total revenue.
• Deposits: Deposits are the main source of funding for the company's lending activities and account for approximately 80% of total liabilities.
• Mortgage lending: Mortgage lending is a significant focus area for the company, generating healthy returns compared to other loan types.

Market Share:

• Greene County: GCBC maintains a dominant position in Greene County, with a market share exceeding 35% for both deposits and loans.
• Eastern North Carolina: GCBC holds a smaller share of the broader eastern North Carolina market, estimated to be around 2% for both deposits and loans.

Product Performance Comparison:

• Loans: GCBC's loan portfolio has grown steadily over the past five years, outpacing the industry average.
• Deposits: Deposit growth has been moderate compared to peers, reflecting the limited geographic reach of the company.
• Mortgage lending: GCBC has witnessed strong performance in its mortgage lending segment, benefiting from low refinancing rates and rising local housing demand.

Total Addressable Market:

The size of the US community bank industry is estimated to be over $2.6 trillion in assets. GCBC focuses on a niche market within this industry, targeting rural communities in eastern North Carolina. The total addressable market for the company is estimated to be approximately $10 billion in assets.

Financial Performance:

Recent Financial Statements:

• Revenue: For the fiscal year ended June 30, 2023, GCBC reported total revenue of $42.5 million, representing an increase of 5.6% compared to the previous year.
• Net Income: Net income for the year was $7.8 million, with a corresponding year-over-year growth of 7.2%.
• Profit Margin: The company's net profit margin stood at 18.3%, slightly above the industry average.
• Earnings per Share (EPS): EPS for the year was $1.59.

Financial Performance Comparison:

GCBC has delivered consistent financial performance over the past five years, with steady revenue and net income growth. The company's return on equity (ROE) and return on assets (ROA) have consistently outperformed the industry average.

Cash Flow and Balance Sheet Health:

GCBC maintains a healthy cash flow position with a strong capital base. The company's loan-to-deposit ratio is within acceptable regulatory limits.

Dividends and Shareholder Returns:

Dividend History: GCBC has a history of paying dividends, with a current annualized dividend yield of approximately 2.2%. The payout ratio is around 40%, indicating a sustainable dividend policy.

Shareholder Returns: Over the past five years, GCBC has generated total shareholder returns of over 10% per year, outpacing the broader market.

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