UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT UNDER SECTION 13 OF 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OF 15(d) OF THE SECURITIES EXCHANGE ACT

Commission File Number: 0-25165

GREENE COUNTY BANCORP, INC.

(Exact Name of Registrant as Specified in its Charter)


United States		14-1809721
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)


302 Main Street, Catskill, New York		12414
(Address of principal executive office)		(Zip code)

Registrant's telephone number, including area code: (518) 943-2600

Securities registered pursuant to Section 12(b) of the Act:


Title of class	Trading symbol	Name of exchange on which registered
Common Stock, $0.10 par value	GCBC	The Nasdaq Stock Market

Securities Registered Pursuant to Section 12(g) of the Act:

None

(Title of Class)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. YES ☒

NO ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YES ☒

NO ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☐	Accelerated filer ☒	Emerging Growth Company ☐
Non-accelerated filer ☐	Smaller reporting company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).YES ☐ NO ☒

As of February 5, 2026, the registrant had 17,026,828 shares of common stock outstanding at $0.10 par value per share.

GREENE COUNTY BANCORP, INC.


	INDEX

PART I.	FINANCIAL INFORMATION
		Page
Item 1.	Financial Statements (unaudited)
	* Consolidated Statements of Financial Condition	3
	* Consolidated Statements of Income	4
	* Consolidated Statements of Comprehensive Income	5
	* Consolidated Statements of Changes in Shareholders’ Equity	6
	* Consolidated Statements of Cash Flows	7
	* Notes to Consolidated Financial Statements	8-31

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32-49

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	49

Item 4.	Controls and Procedures	49

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	50

Item 1A.	Risk Factors	50

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	50

Item 3.	Defaults Upon Senior Securities	50

Item 4.	Mine Safety Disclosures	50

Item 5.	Other Information	50

Item 6.	Exhibits	50

	Signatures	51

Greene County Bancorp, Inc.

Consolidated Statements of Financial Condition

At December 31, 2025 and June 30, 2025

(Unaudited)

(In thousands, except share and per share amounts)


ASSETS		December 31, 2025			June 30, 2025
Cash and due from banks	$	8,802		$	12,788
Interest-bearing deposits		115,286			170,290
Total cash and cash equivalents		124,088			183,078

Long-term certificates of deposit		1,225			1,425
Securities available-for-sale, at fair value		411,590			356,062
Securities held-to-maturity, at amortized cost, net of allowance for credit losses of $616 and $548 at December 31, 2025 and June 30, 2025		810,294			776,147
Equity securities, at fair value		398			402
Federal Home Loan Bank stock, at cost		10,224			5,504

Loans receivable		1,687,184			1,627,406
Allowance for credit losses on loans		(21,334	)		(20,146	)
Net loans receivable		1,665,850			1,607,260

Premises and equipment, net		15,285			15,232
Bank-owned life insurance		67,466			59,795
Accrued interest receivable		17,985			16,381
Prepaid expenses and other assets		22,590			19,323
Total assets	$	3,146,995		$	3,040,609

LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits	$	105,171		$	110,163
Interest-bearing deposits		2,535,869			2,529,672
Total deposits		2,641,040			2,639,835

Borrowings, short-term		180,000			74,000
Borrowings, long-term		4,189			4,189
Subordinated notes payable, net		29,929			49,867
Accrued expenses and other liabilities		33,569			33,881
Total liabilities		2,888,727			2,801,772

SHAREHOLDERS' EQUITY
Preferred stock, Authorized - 1,000,000 shares; Issued - None		-			-
Common stock, par value $0.10 per share; Authorized - 36,000,000 shares; Issued – 17,222,680 shares at December 31, 2025 and June 30, 2025; Outstanding – 17,026,828 shares at December 31, 2025, and June 30, 2025		1,722			1,722
Additional paid-in capital		10,156			10,156
Retained earnings		258,999			241,403
Accumulated other comprehensive loss		(11,701	)		(13,536	)
Treasury stock, at cost 195,852 shares at December 31, 2025 and June 30, 2025		(908	)		(908	)
Total shareholders’ equity		258,268			238,837
Total liabilities and shareholders’ equity	$	3,146,995		$	3,040,609

See notes to consolidated financial statements

Greene County Bancorp, Inc.

Consolidated Statements of Income

For the Three and Six Months Ended December 31, 2025 and 2024

(Unaudited)

(In thousands, except share and per share amounts)



		For the three months ended December 31,					For the six months ended December 31,
		2025			2024		2025			2024
Interest income:
Loans	$	22,413		$	19,480	$	44,386		$	38,723
Investment securities - tax exempt		5,422			4,943		10,688			9,411
Investment securities - taxable		4,752			3,598		8,662			6,967
Interest-bearing deposits and federal funds sold		910			1,397		1,384			2,086
Total interest income		33,497			29,418		65,120			57,187

Interest expense:
Interest on deposits		13,925			14,738		27,288			28,544
Interest on borrowings		513			612		1,253			1,439
Total interest expense		14,438			15,350		28,541			29,983

Net interest income		19,059			14,068		36,579			27,204
Provision for credit losses		199			478		1,456			1,112
Net interest income after provision for credit losses		18,860			13,590		35,123			26,092

Noninterest income:
Service charges on deposit accounts		1,306			1,273		2,604			2,499
Debit card fees		1,103			1,063		2,203			2,164
Investment services		271			252		548			500
E-commerce fees		29			34		56			71
Bank-owned life insurance		674			637		1,326			1,285
Net loss on sale of securities available-for-sale		(576	)		-		(576	)		-
Other operating income		349			616		981			1,093
Total noninterest income		3,156			3,875		7,142			7,612

Noninterest expense:
Salaries and employee benefits		6,223			5,653		12,379			11,531
Occupancy expense		656			615		1,309			1,251
Equipment and furniture expense		214			193		419			343
Service and data processing fees		781			773		1,568			1,540
Computer software, supplies and support		558			404		998			759
Advertising and promotion		147			127		247			204
FDIC insurance premiums		370			347		737			669
Legal and professional fees		479			245		885			609
Other		1,031			1,029		1,978			2,030
Total noninterest expense		10,459			9,386		20,520			18,936

Income before provision for income taxes		11,557			8,079		21,745			14,768
Provision for income taxes		1,265			589		2,583			1,017
Net income	$	10,292		$	7,490	$	19,162		$	13,751

Basic and diluted earnings per share	$	0.60		$	0.44	$	1.13		$	0.81
Basic and diluted average shares outstanding		17,026,828			17,026,828		17,026,828			17,026,828

See notes to consolidated financial statements

Greene County Bancorp, Inc.

Consolidated Statements of Comprehensive Income

For the Three and Six Months Ended December 31, 2025 and 2024

(Unaudited)

(In thousands)


		For the three months ended December 31,						For the six months ended December 31,
		2025			2024			2025			2024
Net income	$	10,292		$	7,490		$	19,162		$	13,751
Other comprehensive income (loss):
Unrealized holding gains (losses) on securities available-for-sale, gross		702			(5,189	)		2,408			2,412
Tax effect		188			(1,387	)		644			644
Unrealized holding gains (losses) on securities available-for-sale, net		514			(3,802	)		1,764			1,768

Reclassification adjustment for loss on sale of securities available-for-sale realized in net income, gross		576			-			576			-
Tax effect		154			-			154			-
Reclassification adjustment for loss on sale of securities available-for-sale realized in net income, net		422			-			422			-

Pension actuarial loss, gross		(684	)		-			(684	)		-
Tax effect		(183	)		-			(183	)		-
Pension actuarial loss, net		(501	)		-			(501	)		-

Amortization of pension actuarial losses recognized in other expense, gross		205			-			205			-
Tax effect		55			-			55			-
Amortization of pension actuarial losses recognized in other expense, net		150			-			150			-

Total other comprehensive income (loss), net of taxes		585			(3,802	)		1,835			1,768

Comprehensive income	$	10,877		$	3,688		$	20,997		$	15,519

See notes to consolidated financial statements

Greene County Bancorp, Inc.

Consolidated Statements of Changes in Shareholders’ Equity

For the Three Months Ended December 31, 2025 and 2024

(Unaudited)

(In thousands)


		Common stock		Additional paid-in capital		Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total shareholders' equity
Balance at September 30, 2025	$	1,722	$	10,156	$	249,492		$	(12,286	)	$	(908	)	$	248,176
Dividends declared						(785	)								(785	)
Net income						10,292									10,292
Other comprehensive income, net of taxes									585						585
Balance at December 31, 2025	$	1,722	$	10,156	$	258,999		$	(11,701	)	$	(908	)	$	258,268


		Common stock		Additional paid-in capital		Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total shareholders' equity
Balance at September 30, 2024	$	1,722	$	10,156	$	219,468		$	(14,140	)	$	(908	)	$	216,298
Dividends declared						(1,537	)								(1,537	)
Net income						7,490									7,490
Other comprehensive loss, net of taxes									(3,802	)					(3,802	)
Balance at December 31, 2024	$	1,722	$	10,156	$	225,421		$	(17,942	)	$	(908	)	$	218,449

Greene County Bancorp, Inc.

Consolidated Statements of Changes in Shareholders’ Equity

For the Six Months Ended December 31, 2025 and 2024

(Unaudited)

(In thousands)


		Common stock		Additional paid-in capital		Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total shareholders' equity
Balance at June 30, 2025	$	1,722	$	10,156	$	241,403		$	(13,536	)	$	(908	)	$	238,837
Dividends declared						(1,566	)								(1,566	)
Net income						19,162									19,162
Other comprehensive income, net of taxes									1,835						1,835
Balance at December 31, 2025	$	1,722	$	10,156	$	258,999		$	(11,701	)	$	(908	)	$	258,268


		Common stock		Additional paid-in capital		Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total shareholders' equity
Balance at June 30, 2024	$	1,722	$	10,156	$	214,740		$	(19,710	)	$	(908	)	$	206,000
Dividends declared						(3,070	)								(3,070	)
Net income						13,751									13,751
Other comprehensive income, net of taxes									1,768						1,768
Balance at December 31, 2024	$	1,722	$	10,156	$	225,421		$	(17,942	)	$	(908	)	$	218,449

See notes to consolidated financial statements

Greene County Bancorp, Inc.

Consolidated Statements of Cash Flows

For the Six Months Ended December 31, 2025 and 2024

(Unaudited)

(In thousands)


		2025			2024
Cash flows from operating activities:
Net income	$	19,162		$	13,751
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		558			524
Deferred income tax benefit		(2,973	)		(2,031	)
Net accretion of investment premiums and discounts		(986	)		(329	)
Net amortization of deferred loan costs and fees		204			191
Amortization of subordinated debt issuance costs		62			93
Provision for credit losses		1,456			1,112
Bank-owned life insurance income		(1,326	)		(1,285	)
Net loss on sale of securities available-for-sale		576			-
Net loss (gain) on equity securities		4			(43	)
Net decrease in accrued income taxes		(141	)		(140	)
Net increase in accrued interest receivable		(1,604	)		(2,354	)
Net (increase) decrease in prepaid expenses and other assets		(823	)		186
Net decrease in accrued expenses and other liabilities		(791	)		(2,215	)
Net cash provided by operating activities		13,378			7,460

Cash flows from investing activities:
Securities available-for-sale:
Proceeds from maturities		132,688			88,417
Proceeds from sale of securities		8,299			-
Purchases of securities		(376,344	)		(164,699	)
Proceeds from principal payments on securities		182,924			54,751
Securities held-to-maturity:
Proceeds from maturities		29,032			19,598
Purchases of securities		(83,250	)		(109,516	)
Proceeds from principal payments on securities		20,302			9,235
Net purchase of Federal Home Loan Bank Stock		(4,720	)		(3,373	)
Maturity of long-term certificates of deposit		200			250
Purchase of bank owned life insurance		(6,345	)		-
Net increase in loans receivable		(60,182	)		(52,327	)
Purchases of premises and equipment		(611	)		(334	)
Net cash used in investing activities		(158,007	)		(157,998	)

Cash flows from financing activities:
Net increase in short-term borrowings		106,000			78,800
Repayment of long-term borrowings		-			(27,180	)
Repayment of subordinated notes payable		(20,000	)		-
Payment of cash dividends		(1,566	)		(3,070	)
Net increase in deposits		1,205			78,036
Net cash provided by financing activities		85,639			126,586

Net decrease in cash and cash equivalents		(58,990	)		(23,952	)
Cash and cash equivalents at beginning of period		183,078			190,395
Cash and cash equivalents at end of period	$	124,088		$	166,443

Cash paid during period for:
Interest	$	28,645		$	30,399
Income taxes	$	1,613		$	664

See notes to consolidated financial statements

Greene County Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

At and for the Three and Six Months Ended December 31, 2025 and 2024

(1)

Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation

Within the accompanying unaudited interim consolidated financial statements and related notes to the consolidated financial statements, the June 30, 2025 data was derived from the audited consolidated financial statements and notes of Greene County Bancorp, Inc. (the “Company”) and its wholly owned subsidiaries, the Bank of Greene County (the “Bank”) and the Bank’s wholly owned subsidiaries, Greene County Commercial Bank (the “Commercial Bank”) and Greene Property Holdings, Ltd.

The interim consolidated financial statements at and for the three and six months ended December 31, 2025 and 2024 are unaudited.

The unaudited interim consolidated financial statements include the accounts of certain Variable Interest Entities (“VIE(s)”). In accordance with the applicable accounting guidance for consolidations, the Company consolidates a VIE if it has (i) a variable interest in the entity; (ii) the power to direct activities of the VIE that most significantly affect the entity’s economic performance; and (iii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE (i.e., we are considered to be the primary beneficiary).

The Company uses the equity method to account for unconsolidated investments in VIEs if it has significant influence over the entity’s operating and financing decision. Unconsolidated investments in VIEs in which the Company does not have significant influence, are carried at a cost measurement alternative. See Note 14, Variable Interest Entities for information on our involvement with VIEs.

The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information and notes required by GAAP for complete financial statements. To the extent that information and notes required by GAAP, for complete financial statements, are contained in or are consistent with the audited financial statements incorporated by reference to Greene County Bancorp, Inc.’s Annual Report on Form 10-K for the year ended June 30, 2025, such information and notes have not been duplicated herein. In the opinion of management, all adjustments (consisting of only normal recurring items) necessary for a fair presentation of the financial position and results of operations and cash flows at and for the periods presented have been included. Certain previous years’ amounts in the unaudited consolidated financial statements and notes thereto, have been reclassified to conform to the current year’s presentation. All material inter-company accounts and transactions have been eliminated in the consolidation. The results of operations and other data for the three and six months ended December 31, 2025, are not necessarily indicative of results that may be expected for the entire fiscal year ending June 30, 2026. These consolidated financial statements consider events that occurred through the date the consolidated financial statements were issued and should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K.

Nature of Operations

The Company’s primary business is the ownership and operation of its subsidiaries. At December 31, 2025, the Company operated 19 full-service banking offices, lending centers, an operations center, customer call center, administration center, and wealth management center, located in its market area consisting of the Hudson Valley and Capital District Regions of New York State. The Bank is primarily engaged in the business of attracting deposits from the general public in the Bank’s market area, and investing such deposits, together with other sources of funds, in loans and investment securities. The Commercial Bank’s primary business is to attract deposits from and provide banking services to local municipalities. Greene Property Holdings, Ltd. was formed as a New York corporation that has elected under the Internal Revenue Code to be a real estate investment trust. Currently, certain mortgages and loan notes held by the Bank are transferred and beneficially owned by Greene Property Holdings, Ltd. The Bank continues to service these loans.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses (“ACL”) on loans and on unfunded commitments.

(2)

Recent Accounting Pronouncements

Accounting Standards Issued Not Yet Adopted

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures, which will require public entities to disclose annually a tabular rate reconciliation, including specific items such as state and local income tax, tax credits, nontaxable or nondeductible items, among others, and a separate disclosure requiring disaggregation of reconciling items as described above which equal or exceed 5% of the product of multiplying income from continuing operations by the applicable statutory income tax rate. The ASU is effective for annual periods beginning after December 15, 2024. The Company’s adoption of this standard is not expected to have a material impact on the consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosure (Subtopic 220-40), which will require enhanced disaggregation of certain expense categories in the notes to the financial statements. The disclosure will require disaggregation of certain income statement expenses including employee compensation, depreciation and intangible asset amortization. The ASU is effective for annual reporting periods beginning after December 15, 2026, and early adoption is permitted. The Company’s adoption of this standard is not expected to have a material impact on the consolidated financial statements.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270), Narrow-Scope Improvements, which clarifies the interim reporting requirements by improving navigability and more clearly specifying what disclosures are required in an interim reporting period applicable to Topic 270. The ASU is effective for annual reporting periods beginning after December 15, 2027, and early adoption is permitted. The Company’s adoption of this standard is not expected to have a material impact on the consolidated financial statements.

(3)

Securities

The following tables summarize the amortized cost and fair value of securities available-for-sale by major type:


	At December 31, 2025
(In thousands)		Amortized cost (1)		Unrealized gains		Unrealized losses		Fair value
U.S. Treasury securities	$	47,792	$	1	$	288	$	47,505
U.S. government sponsored enterprises		7,105		-		705		6,400
State and political subdivisions		225,989		1,461		-		227,450
Mortgage-backed securities-residential		38,505		270		2,631		36,144
Mortgage-backed securities-multi-family		88,674		-		12,763		75,911
Corporate debt securities		18,445		77		342		18,180
Total securities available-for-sale	$	426,510	$	1,809	$	16,729	$	411,590



	At June 30, 2025
(In thousands)		Amortized cost (1)		Unrealized gains		Unrealized losses		Fair value
U.S. Treasury securities	$	10,815	$	-	$	362	$	10,453
U.S. government sponsored enterprises		13,029		-		1,385		11,644
State and political subdivisions		208,450		1,394		-		209,844
Mortgage-backed securities-residential		34,382		212		3,007		31,587
Mortgage-backed securities-multi-family		88,874		-		14,277		74,597
Corporate debt securities		18,416		81		560		17,937
Total securities available-for-sale	$	373,966	$	1,687	$	19,591	$	356,062

⁽¹⁾

Amortized cost excludes accrued interest receivable of $4.1 million and $4.5 million at December 31, 2025 and June 30, 2025, respectively, which is included in accrued interest receivable in the consolidated statements of financial condition.

There was no allowance for credit losses on securities available-for-sale as of quarter ended December 31, 2025 and June 30, 2025, as each of the securities in the portfolio are investment grade, current as to principal and interest, and their price changes are consistent with interest and credit spreads when adjusting for convexity, rating, and industry differences.

The following tables summarize the amortized cost, fair value, and allowance for credit loss on securities held-to-maturity by major type:



	At December 31, 2025
(In thousands)		Amortized cost (1)		Unrealized gains		Unrealized losses		Fair value		Allowance		Net carrying value
U.S. Treasury securities	$	15,877	$	-	$	632	$	15,245	$	-	$	15,877
State and political subdivisions		479,442		12,550		23,315		468,677		52		479,390
Mortgage-backed securities-residential		159,926		2,328		2,023		160,231		-		159,926
Mortgage-backed securities-multi-family		123,656		-		9,933		113,723		-		123,656
Corporate debt securities		31,982		132		1,128		30,986		563		31,419
Other securities		27		-		-		27		1		26
Total securities held-to-maturity	$	810,910	$	15,010	$	37,031	$	788,889	$	616	$	810,294




	At June 30, 2025
(In thousands)		Amortized cost (1)		Unrealized gains		Unrealized losses		Fair value		Allowance		Net carrying value
U.S. Treasury securities	$	15,850	$	-	$	868	$	14,982	$	-	$	15,850
State and political subdivisions		460,959		8,938		32,028		437,869		40		460,919
Mortgage-backed securities-residential		138,468		1,388		2,327		137,529		-		138,468
Mortgage-backed securities-multi-family		130,119		-		11,963		118,156		-		130,119
Corporate debt securities		31,270		55		1,756		29,569		507		30,763
Other securities		29		-		-		29		1		28
Total securities held-to-maturity	$	776,695	$	10,381	$	48,942	$	738,134	$	548	$	776,147

⁽¹⁾

Amortized cost excludes accrued interest receivable of $6.1 million and $4.9 million at December 31, 2025 and June 30, 2025, respectively, which is included in accrued interest receivable in the consolidated statements of financial condition.

U.S. Treasury and mortgage-backed securities are issued by U.S. government entities and agencies. These securities are either explicitly and/or implicitly guaranteed by the U.S. government as to timely repayment of principal and interest, are highly rated by major rating agencies, and have a long history of zero credit losses. Therefore, the Company determined a zero credit loss assumption and did not calculate or record an allowance for credit loss for these securities. An allowance for credit losses on investment securities held-to-maturity has been recorded for certain municipal securities issued by state and political subdivisions and corporate debt securities, to account for expected lifetime credit loss using the Current Expected Credited Losses (“CECL”) methodology.

The Company’s current policies generally limit securities investments to U.S. government and securities of government sponsored enterprises, federal funds sold, municipal bonds, corporate debt obligations, subordinated debt of banks and certain mutual funds. In addition, the Company’s policies permit investments in mortgage-backed securities, including securities issued and guaranteed by Fannie Mae, Freddie Mac, and GNMA, and collateralized mortgage obligations issued by these entities. As of December 31, 2025, all mortgage-backed securities including collateralized mortgage obligations were securities of government sponsored enterprises, no private-label mortgage-backed securities or collateralized mortgage obligations were held in the securities portfolio. The Company’s investments in state and political subdivisions securities generally are municipal obligations that are general obligations supported by the general taxing authority of the issuer, and in some cases are insured. The obligations issued by school districts are supported by state aid. Primarily, these investments are issued by municipalities within New York State.

The Company’s current securities investment strategy utilizes a risk management approach of diversified investing among three categories: short-, intermediate- and long-term. The emphasis of this approach is to increase overall investment securities yields while managing interest rate risk. The Company will only invest in high quality securities, as determined by management’s analysis at the time of purchase. The Company generally does not engage in any balance sheet derivative or hedging investment transactions, such as balance sheet interest rate swaps or caps.

The following table summarizes the activity in the allowance for credit losses on securities held-to-maturity:


	For the three months ended December 31,
(In thousands)		2025		2024
Balance at beginning of period	$	599	$	466
Provision (benefit) for credit losses		17		(27	)
Balance at end of period	$	616	$	439


	For the six months ended December 31,
(In thousands)		2025		2024
Balance at beginning of period	$	548	$	483
Provision (benefit) for credit losses		68		(44	)
Balance at end of period	$	616	$	439

The following table shows fair value and gross unrealized losses, aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2025.




	Less than 12 Months					More than 12 Months					Total
(In thousands, except number of securities)		Fair value		Unrealized losses	Number of securities		Fair value		Unrealized losses	Number of securities		Fair value		Unrealized losses	Number of securities
Securities available-for-sale:
U.S. Treasury securities	$	39,744	$	201	2	$	7,516	$	87	4	$	47,260	$	288	6
U.S. government sponsored enterprises		-		-	-		6,400		705	2		6,400		705	2
State and political subdivisions		-		-	-		43		-	1		43		-	1
Mortgage-backed securities-residential		6,753		79	2		20,024		2,552	17		26,777		2,631	19
Mortgage-backed securities-multi-family		-		-	-		75,911		12,763	30		75,911		12,763	30
Corporate debt securities		452		48	1		15,703		294	10		16,155		342	11
Total securities available-for-sale		46,949		328	5		125,597		16,401	64		172,546		16,729	69
Securities held-to-maturity:
U.S. Treasury securities		-		-	-		15,245		632	5		15,245		632	5
State and political subdivisions		11,961		314	111		225,903		23,001	1,378		237,864		23,315	1,489
Mortgage-backed securities-residential		28,893		168	7		29,652		1,855	25		58,545		2,023	32
Mortgage-backed securities-multi-family		-		-	-		113,723		9,933	43		113,723		9,933	43
Corporate debt securities		5,423		77	2		17,681		1,051	14		23,104		1,128	16
Total securities held-to-maturity		46,277		559	120		402,204		36,472	1,465		448,481		37,031	1,585
Total securities	$	93,226	$	887	125	$	527,801	$	52,873	1,529	$	621,027	$	53,760	1,654




	Less than 12 months					More than 12 months					Total
(In thousands, except number of securities)		Fair value		Unrealized losses	Number of securities		Fair value		Unrealized losses	Number of securities		Fair value		Unrealized losses	Number of securities
Securities available-for-sale:
U.S. Treasury securities	$	241	$	1	1	$	10,212	$	361	5	$	10,453	$	362	6
U.S. government sponsored enterprises		-		-	-		11,644		1,385	5		11,644		1,385	5
State and political subdivisions		-		-	-		43		-	1		43		-	1
Mortgage-backed securities-residential		-		-	-		20,872		3,007	21		20,872		3,007	21
Mortgage-backed securities-multi-family		-		-	-		74,597		14,277	30		74,597		14,277	30
Corporate debt securities		-		-	-		15,919		560	11		15,919		560	11
Total securities available-for-sale		241		1	1		133,287		19,590	73		133,528		19,591	74
Securities held-to-maturity:
U.S. Treasury securities		-		-	-		14,982		868	5		14,982		868	5
State and political subdivisions		23,577		339	154		231,645		31,689	1,511		255,222		32,028	1,665
Mortgage-backed securities-residential		9,470		151	4		26,541		2,176	26		36,011		2,327	30
Mortgage-backed securities-multi-family		-		-	-		118,156		11,963	45		118,156		11,963	45
Corporate debt securities		3,705		45	3		22,209		1,711	17		25,914		1,756	20
Total securities held-to-maturity		36,752		535	161		413,533		48,407	1,604		450,285		48,942	1,765
Total securities	$	36,993	$	536	162	$	546,820	$	67,997	1,677	$	583,813	$	68,533	1,839

There were no transfers of securities available-for-sale to held-to-maturity during the three and six months ended December 31, 2025 and 2024. During the three and six months ended December 31, 2025, a loss of $576,000 was recognized from a sale of four securities available-for-sale with a total par value of $8.3 million. The proceeds were used to fund higher yielding investments. During the three and six months ended December 31, 2024, there were no sales of securities and no gains or losses were recognized.

The estimated fair values of debt securities at December 31, 2025, by contractual maturity are shown below. Expected maturities may differ from contractual maturities, because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

(In thousands)


Securities available-for-sale	Amortized cost		Fair value
Within one year	$	271,664	$	272,844
After one year through five years		26,167		25,354
After five years through ten years		1,500		1,337
After ten years		-		-
Total securities available-for-sale		299,331		299,535
Mortgage-backed securities		127,179		112,055
Total securities available-for-sale		426,510		411,590

Securities held-to-maturity
Within one year		58,986		59,271
After one year through five years		169,946		171,572
After five years through ten years		220,514		208,486
After ten years		77,882		75,606
Total securities held-to-maturity		527,328		514,935
Mortgage-backed securities		283,582		273,954
Total securities held-to-maturity		810,910		788,889
Total securities	$	1,237,420	$	1,200,479

At December 31, 2025 and June 30, 2025, securities with an aggregate fair value of $1.1 billion and $1.0 billion, respectively, were pledged as collateral for deposits in excess of FDIC insurance limits for various municipalities placing deposits with the Commercial Bank. At December 31, 2025 and June 30, 2025, securities with an aggregate fair value of $18.4 million and $18.2 million, respectively, were pledged as collateral for potential borrowings at the Federal Reserve Bank discount window. The Company did not participate in any securities lending programs during the three and six months ended December 31, 2025 or 2024.

Federal Home Loan Bank Stock

Federal law requires a member institution of the Federal Home Loan Bank (“FHLB”) system to hold stock of its district FHLB according to a predetermined formula. This stock is restricted in that it can only be sold to the FHLB or to another member institution, and all sales of FHLB stock must be at par. As a result of these restrictions, FHLB stock is carried at cost. FHLB stock is held as a long-term investment and its value is determined based on the ultimate recoverability of the par value. Estimated credit loss of this investment is evaluated quarterly and is a matter of judgment that reflects management’s view of the FHLB’s long-term performance, which includes factors such as the following: its operating performance; the severity and duration of declines in the fair value of its net assets related to its capital stock amount; its commitment to make payments required by law or regulation and the level of such payments in relation to its operating performance; the impact of legislative and regulatory changes on the FHLB, and accordingly, on the members of the FHLB; and its liquidity and funding position. After evaluating these considerations, the Company concluded that the par value of its investment in FHLB stock will be recovered and, therefore, no credit loss was recorded during the three and six months ended December 31, 2025 or 2024.

(4)

Loans and Allowance for Credit Losses on Loans

Loan segments are summarized below as of the dates indicated:


(In thousands)	December 31, 2025			June 30, 2025
Residential real estate	$	414,829		$	417,719
Commercial real estate		1,097,997			1,054,504
Home equity		40,574			34,103
Consumer		4,106			4,311
Commercial		129,678			116,769
Total gross loans (1)(2)		1,687,184			1,627,406
Allowance for credit losses on loans		(21,334	)		(20,146	)
Loans receivable, net	$	1,665,850		$	1,607,260


(1)	Loan balances include net deferred fees/(costs) of ($483,000) and ($567,000) at December 31, 2025 and June 30, 2025, respectively.
(2)	Loan balances exclude accrued interest receivable of $7.7 million and $7.0 million at December 31, 2025 and June 30, 2025, respectively, which is included in accrued interest receivable in the consolidated statement of financial condition.

Non-accrual Loans

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-accrual. Loans on non-accrual status totaled $3.3 million at December 31, 2025, of which there were four residential real estate loans totaling $668,000 and one commercial real estate loan totaling $142,000 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 December 31, 2025, 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. The activity in non-performing loans during the six months ended December 31, 2025, included $586,000 in loan repayments, $73,000 in charge-offs or transfers to foreclosure, and $860,000 of loans placed into nonperforming status.

The following table sets forth information regarding delinquent and/or non-accrual loans as of December 31, 2025:





(In thousands)	30-59 days past due		60-89 days past due		90 days or more past due		Total past due		Current		Total loans		Loans on non- accrual
Residential real estate	$	3,228	$	1,093	$	903	$	5,224	$	409,605	$	414,829	$	2,294
Commercial real estate		322		188		173		683		1,097,314		1,097,997		605
Home equity		115		-		29		144		40,430		40,574		216
Consumer		57		3		17		77		4,029		4,106		17
Commercial		4		-		129		133		129,545		129,678		129
Total gross loans	$	3,726	$	1,284	$	1,251	$	6,261	$	1,680,923	$	1,687,184	$	3,261

The following table sets forth information regarding delinquent and/or non-accrual loans as of June 30, 2025:


(In thousands)	30-59 days past due		60-89 days past due			90 days or more past due		Total past due		Current		Total loans		Loans on non- accrual
Residential real estate	$	-		$	775	$	1,362	$	2,137	$	415,582	$	417,719	$	2,265
Commercial real estate		-			209		367		576		1,053,928		1,054,504		628
Home equity		85			13		30		128		33,975		34,103		30
Consumer		20			3		2		25		4,286		4,311		2
Commercial		-			-		106		106		116,663		116,769		135
Total gross loans	$	105		$	1,000	$	1,867	$	2,972	$	1,624,434	$	1,627,406	$	3,060

The Company had no accruing loans delinquent 90 days or more at December 31, 2025 and June 30, 2025.

Allowance for Credit Losses on Loans

The allowance for credit losses (“ACL”) for the loan portfolio is established through a provision for credit losses based on the results of life of loan quantitative models, reserves associated with collateral-dependent loans individually evaluated and adjustments for the impact of current economic conditions not accounted for in the quantitative models. The discounted cash flow methodology is used to calculate the ACL on loans for the residential real estate, commercial real estate, home equity and commercial loan segments. The Company uses a four-quarter reasonable and supportable forecast period based on the one-year percent change in national GDP and the national unemployment rate, as economic variables. The forecast will revert to long-term economic conditions over a four-quarter reversion period on a straight-line basis. The remaining life method will be utilized to determine the ACL for the consumer loan segment. A qualitative factor framework has been developed to adjust the quantitative loss rates for asset-specific risk characteristics or current conditions at the reporting date. The Company elected to use the practical expedient to evaluate loans individually, if they are collateral dependent loans that are on non-accrual status with a balance of $250,000 or greater, which is consistent with regulatory requirements. The fair value of the collateral dependent loan less selling expenses will be compared to the loan balance to determine if an ACL on loans is required. While management uses available information to recognize losses on loans, additions or reductions to the allowance may fluctuate from one reporting period to another. These fluctuations are reflective of changes in the reasonable and supportable forecast, analysis of loans individually evaluated, and/or changes in management’s assessment of the qualitative factors.

In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for credit losses. Such agencies may require the Company to recognize additions to the allowance based on their judgment about information available to them at the time of their examination. The Company charges loans off against the allowance for credit losses when it becomes evident that a loan cannot be collected within a reasonable amount of time, or that it will cost the Company more than it will receive and all possible avenues of repayment have been analyzed, including the potential of future cash flow, the value of the underlying collateral, and strength of any guarantors or co-borrowers. Generally, consumer loans and smaller business loans (not secured by real estate) in excess of 90 days are charged-off against the allowance for credit losses, unless equitable arrangements are made. Included within consumer loan charge-offs and recoveries are deposit accounts that have been overdrawn in excess of 60 days. For loans secured by real estate, a charge-off is recorded when it is determined that the collection of all or a portion of a loan may not be collected and the amount of that loss can be reasonably estimated. The allowance for credit losses is increased by a provision for credit losses (which results in a charge to expense) and recoveries of loans previously charged off and is reduced by charge-offs.

The following tables set forth the activity and allocation of the allowance for credit losses on loans by segment:


	Activity for the three months ended December 31, 2025
(In thousands)		Residential real estate			Commercial real estate			Home equity		Consumer			Commercial			Total
Balance at September 30, 2025	$	4,700		$	13,470		$	311	$	359		$	2,452		$	21,292
Charge-offs		(43	)		-			-		(91	)		(45	)		(179	)
Recoveries		2			1			-		22			14			39
Provision (benefit)		(34	)		(52	)		29		28			211			182
Balance at December 31, 2025	$	4,625		$	13,419		$	340	$	318		$	2,632		$	21,334


	Activity for the three months ended December 31, 2024
(In thousands)		Residential real estate		Commercial real estate		Home equity		Consumer			Commercial			Total
Balance at September 30, 2024	$	4,475	$	12,648	$	232	$	454		$	1,972		$	19,781
Charge-offs		-		-		-		(123	)		(7	)		(130	)
Recoveries		-		1		-		25			9			35
Provision		56		284		2		58			105			505
Balance at December 31, 2024	$	4,531	$	12,933	$	234	$	414		$	2,079		$	20,191


	Activity for the six months ended December 31, 2025
(In thousands)		Residential real estate			Commercial real estate		Home equity		Consumer			Commercial			Total
Balance at June 30, 2025	$	4,613		$	12,614	$	260	$	381		$	2,278		$	20,146
Charge-offs		(43	)		-		-		(185	)		(45	)		(273	)
Recoveries		2			2		-		55			14			73
Provision		53			803		80		67			385			1,388
Balance at December 31, 2025	$	4,625		$	13,419	$	340	$	318		$	2,632		$	21,334


	Activity for the six months ended December 31, 2024
(In thousands)		Residential real estate			Commercial real estate			Home equity			Consumer			Commercial			Total
Balance at June 30, 2024	$	4,237		$	12,218		$	212		$	500		$	2,077		$	19,244
Charge-offs		(44	)		(5	)		(13	)		(200	)		(13	)		(275	)
Recoveries		2			2			-			44			18			66
Provision (benefit)		336			718			35			70			(3	)		1,156
Balance at December 31, 2024	$	4,531		$	12,933		$	234		$	414		$	2,079		$	20,191

Credit monitoring process

Management closely monitors the quality of the loan portfolio and has established a loan review process designed to help monitor any change in borrower risk during the life cycle of their loan. The Company utilizes a credit quality grading system that is used at loan inception and updated as appropriate based on an annual review process. The credit quality grade helps management make a consistent assessment of each loan relationship’s credit risk and identify any portfolio trends that could impact profitability. Consistent with regulatory guidelines, the Company provides for the classification of loans, such as “Pass,” “Special Mention,” “Substandard,” “Doubtful” and “Loss” classifications.

Commercial grading system

Loss

Loss ratings are loans that are considered uncollectible and of such little value that their continuance as active assets of the Company is not warranted. Loss rating does not necessarily mean that the loan has no recovery or salvage value, however, it is not practical or desirable to defer charging off the loan.

Doubtful

Doubtful ratings are loans that have all the weakness inherent in loans classified as substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable. Doubtful ratings generally are non-performing and considered to have a high risk of default.

Substandard

Substandard ratings are loans that possess well-defined weaknesses that jeopardize the orderly liquidation of debt and are characterized by the distinct possibility that the Company will sustain some loss, if the deficiencies are not corrected. Substandard ratings are inadequately protected by the current sound worth and paying capacity of the borrower or the collateral pledged, if any.

Special mention

Special mention ratings are loans that have potential weaknesses or emerging problems, which require close attention. These weaknesses, if left uncorrected, could lead to deterioration in the repayment prospects for the loan or the Company’s collateral position in the future. Special mention loans are less risky than substandard assets as no loss of principal or interest is anticipated unless, the potential problems continue for a prolonged basis.

Pass

Pass ratings are loans that do not encompass loans graded as Loss, Doubtful, Substandard, or Special mention. Pass loans range from Pass/Watch, Acceptable, Average, Satisfactory, Good and Excellent. Pass loans demonstrate sufficient cash flow to ensure full repayment of the loan with Pass ratings being determined by the quality of the collateral and equity position, stability of operations or management, and the guarantors.

Residential and consumer grading system

Residential real estate, home equity and consumer loans are graded as either non-performing or performing.

Non-performing

Non-performing loans are loans in which the borrower has not made the scheduled payments of principal or interest and are generally loans over 90 days past due, and loans on non-accrual status.

Performing

Performing loans are those loans in which the borrower is making timely payments of both principal and interest as upon the agreed loan terms.

The following tables present the amortized cost basis of the Company’s loans by class and vintage and includes gross charge-offs by loan class and vintage as of the three and six months ended December 31, 2025:




	At December 31, 2025
	Term loans amortized cost basis by origination year													Revolving loans amortized cost basis		Revolving loans converted to term		Total
(In thousands)		2026		2025		2024		2023		2022		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Residential real estate
By payment activity status:
Performing	$	18,581	$	44,875	$	52,771	$	53,420	$	81,330	$	161,558	$	-	$	-	$	412,535
Non-performing		-		-		-		-		53		2,241		-		-		2,294
Total residential real estate		18,581		44,875		52,771		53,420		81,383		163,799		-		-		414,829
Current period gross charge-offs		-		-		-		-		-		43		-		-		43

Commercial real estate
By internally assigned grade:
Pass		61,852		215,052		121,688		171,037		224,266		270,935		2,970		438		1,068,238
Special mention		-		-		479		1,152		645		3,239		-		-		5,515
Substandard		-		-		-		8,937		157		15,078		-		72		24,244
Total commercial real estate		61,852		215,052		122,167		181,126		225,068		289,252		2,970		510		1,097,997
Current period gross charge-offs		-		-		-		-		-		-		-		-		-

Home equity
By payment activity status:
Performing		1,766		2,635		4,072		2,118		205		1,024		28,038		500		40,358
Non-performing		-		-		-		-		-		12		204		-		216
Total home equity		1,766		2,635		4,072		2,118		205		1,036		28,242		500		40,574
Current period gross charge-offs		-		-		-		-		-		-		-		-		-

Consumer
By payment activity status:
Performing		1,045		1,040		1,061		499		209		159		76		-		4,089
Non-performing		-		-		17		-		-		-		-		-		17
Total Consumer		1,045		1,040		1,078		499		209		159		76		-		4,106
Current period gross charge-offs		176		7		-		-		-		1		1		-		185

Commercial
By internally assigned grade:
Pass		22,439		10,027		9,826		7,309		4,135		24,527		44,291		70		122,624
Special mention		-		-		-		-		33		281		98		-		412
Substandard		-		-		-		10		6,028		527		54		23		6,642
Total Commercial	$	22,439	$	10,027	$	9,826	$	7,319	$	10,196	$	25,335	$	44,443	$	93	$	129,678
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	1	$	44	$	-	$	45

The following tables present the amortized cost basis of the Company’s loans by class and vintage and includes gross charge-offs by loan class and vintage as of the twelve months ended June 30, 2025:




	At June 30, 2025
	Term loans amortized cost basis by origination year													Revolving loans amortized cost basis		Revolving loans converted to term		Total
(In thousands)		2025		2024		2023		2022		2021		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Residential real estate
By payment activity status:
Performing	$	42,672	$	55,665	$	58,277	$	85,153	$	71,560	$	102,127	$	-	$	-	$	415,454
Non-performing		-		-		-		56		-		2,209		-		-		2,265
Total residential real estate		42,672		55,665		58,277		85,209		71,560		104,336		-		-		417,719
Current period gross charge-offs		-		-		-		-		44		-		-		-		44

Commercial real estate
By internally assigned grade:
Pass		192,619		120,883		177,469		228,960		116,680		177,025		3,913		5,032		1,022,581
Special mention		-		479		1,339		656		263		4,747		-		-		7,484
Substandard		-		-		9,078		-		209		14,942		-		210		24,439
Total commercial real estate		192,619		121,362		187,886		229,616		117,152		196,714		3,913		5,242		1,054,504
Current period gross charge-offs		-		-		-		-		-		5		-		-		5

Home equity
By payment activity status:
Performing		2,753		4,761		2,437		229		315		791		22,637		150		34,073
Non-performing		-		-		-		-		-		-		30		-		30
Total home equity		2,753		4,761		2,437		229		315		791		22,667		150		34,103
Current period gross charge-offs		-		-		-		-		-		-		13		-		13

Consumer
By payment activity status:
Performing		1,631		1,371		689		346		149		51		72		-		4,309
Non-performing		2		-		-		-		-		-		-		-		2
Total Consumer		1,633		1,371		689		346		149		51		72		-		4,311
Current period gross charge-offs		335		40		-		10		1		-		-		-		386

Commercial
By internally assigned grade:
Pass		11,917		11,031		8,157		4,584		12,482		15,106		45,905		68		109,250
Special mention		-		-		-		50		-		93		238		183		564
Substandard		-		-		-		6,279		30		568		78		-		6,955
Total Commercial	$	11,917	$	11,031	$	8,157	$	10,913	$	12,512	$	15,767	$	46,221	$	251	$	116,769
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	38	$	28	$	-	$	66

The Company had no loans classified doubtful or loss at December 31, 2025 or June 30, 2025. Management continues to monitor classified loan relationships closely.

Allowance for Credit Losses on Unfunded Commitments

The Company estimates expected credit losses over the contractual period in which the Company has exposure to a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on unfunded commitments exposure is recognized in other liabilities and is adjusted through a provision expense in other noninterest expense. At December 31, 2025, the allowance for credit losses on unfunded commitments totaled $1.5 million as compared to $1.8 million at June 30, 2025.

Individually Evaluated Loans

Loans individually evaluated had an amortized cost basis of $947,000 and $751,000, with an allowance for credit losses on loans of $495,000 and $549,000 at December 31, 2025 and June 30, 2025, respectively. At December 31, 2025, the amortized cost basis of collateral dependent loans was $947,000 for residential real estate loans. At June 30, 2025, the amortized cost basis of collateral dependent loans was $751,000 for residential real estate loans. The allowance for credit loss for collateral dependent loans is individually assessed based on the fair value of the collateral less costs to sell at the reporting date.

Loan Modifications to Borrowers Experiencing Financial Difficulties

When the Company modifies a loan for borrowers experiencing financial difficulty, such modifications generally include one or a combination of the following: an extension of the maturity date; a stated rate of interest not at the market rate for new debt with similar risk; a change in the scheduled payment amount; or principal forgiveness. The Company works with loan customers experiencing financial difficulty and may enter into loan modifications to achieve the best mutual outcome given the financial circumstances of the borrower.

The following tables present the amortized cost basis of the loans modified to borrowers experiencing financial difficulty by type of concession granted:


	For the three months ended December 31, 2025
	Interest rate reduction
(Dollars in thousands)		Amortized cost	Percentage of total class
Commercial real estate	$	2,476	0.23	%
Total	$	2,476

	For the three months ended December 31, 2024
	Interest rate reduction
(Dollars in thousands)		Amortized cost	Percentage of total class
Commercial real estate	$	2,569	0.26	%
Total	$	2,569

	For the six months ended December 31, 2025
	Term extension				Interest rate reduction
(Dollars in thousands)		Amortized cost	Percentage of total class			Amortized cost	Percentage of total class
Commercial real estate	$	72	0.01	%	$	2,476	0.23	%
Total	$	72			$	2,476

	For the six months ended December 31, 2024
	Interest rate reduction
(Dollars in thousands)		Amortized cost	Percentage of total class
Commercial real estate	$	2,569	0.26	%
Total	$	2,569

The following tables presents the financial effect of the modifications made to borrowers experiencing financial difficulty:


		For the three months ended December 31, 2025
Loan type		Interest rate reduction
Commercial real estate		Interest rates were reduced by an average of 1.00%


		For the three months ended December 31, 2024
Loan type		Interest rate reduction
Commercial real estate		Interest rates were reduced by an average of 1.45%


	For the six months ended December 31, 2025
Loan type	Term extension	Interest rate reduction
Commercial real estate	39-month term extension	Interest rates were reduced by an average of 1.00%


		For the six months ended December 31, 2024
Loan type		Interest rate reduction
Commercial real estate		Interest rates were reduced by an average of 1.45%

There were no loans that had been modified with borrowers experiencing financial difficulty in the prior twelve months ended December 31, 2025, that had a payment default during the three and six months ended December 31, 2025.

There was one consumer loan that had been modified in the form of a term extension with a borrower experiencing financial difficulty in the prior twelve months ended December 31, 2024, that had a payment default during the three and six months ended December 31, 2024.

The Company closely monitors the performance of loans that have been modified. The following table depicts the performance of loans that have been modified to borrowers experiencing financial difficulty that were modified in the prior twelve months at amortized cost basis:


	At December 31, 2025
(In thousands)		Current		30-59 days past due		60-89 days past due		90 days or more past due		Total
Commercial real estate	$	2,847	$	-	$	-	$	-	$	2,847
Total	$	2,847	$	-	$	-	$	-	$	2,847


		At December 31, 2024
(In thousands)		Current		30-59 days past due		60-89 days past due		90 days or more past due		Total
Commercial real estate	$	6,645	$	-	$	-	$	-	$	6,645
Consumer		-		-		18		-		18
Total	$	6,645	$	-	$	18	$	-	$	6,663

Foreclosed real estate

Foreclosed real estate (“FRE”) consists of properties acquired through mortgage loan foreclosure proceedings, deed in lieu of foreclosure or in full or partial satisfaction of loans. At December 31, 2025 and June 30, 2025, the Company had no foreclosed real estate.

(5)

Fair Value Measurements and Fair Value of Financial Instruments

Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in a sale transaction on the dates indicated. The estimated fair value amounts have been measured as of December 31, 2025 and June 30, 2025, and have not been re-evaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different from the amounts reported at each period-end.

The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful.

The FASB ASC Topic 820 on “Fair Value Measurement” established a fair value hierarchy that prioritized the inputs to valuation techniques used to measure fair value. The fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value measurements are not adjusted for transaction costs. A fair value hierarchy exists within GAAP that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2: Quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability.

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity).

An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

For assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used are as follows:



				Fair Value Measurements Using
				Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
(In thousands)		December 31, 2025		(Level 1)		(Level 2)		(Level 3)
Assets:
U.S. Treasury securities	$	47,505	$	-	$	47,505	$	-
U.S. government sponsored enterprises		6,400		-		6,400		-
State and political subdivisions		227,450		-		227,450		-
Mortgage-backed securities-residential		36,144		-		36,144		-
Mortgage-backed securities-multi-family		75,911		-		75,911		-
Corporate debt securities		18,180		-		18,180		-
Securities available-for-sale		411,590		-		411,590		-
Equity securities		398		398		-		-
Interest rate swaps		4,861		-		4,861		-
Total	$	416,849	$	398	$	416,451	$	-

Liabilities:
Interest rate swaps	$	4,861	$	-	$	4,861	$	-
Total	$	4,861	$	-	$	4,861	$	-



		Fair Value Measurements Using
				Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
(In thousands)		June 30, 2025		(Level 1)		(Level 2)		(Level 3)
Assets:
U.S. Treasury securities	$	10,453	$	-	$	10,453	$	-
U.S. government sponsored enterprises		11,644		-		11,644		-
State and political subdivisions		209,844		-		209,844		-
Mortgage-backed securities-residential		31,587		-		31,587		-
Mortgage-backed securities-multi-family		74,597		-		74,597		-
Corporate debt securities		17,937		-		17,937		-
Securities available-for-sale		356,062		-		356,062		-
Equity securities		402		402		-		-
Interest rate swaps		4,733		-		4,733		-
Total	$	361,197	$	402	$	360,795	$	-

Liabilities:
Interest rate swaps	$	4,733	$	-	$	4,733	$	-
Total	$	4,733	$	-	$	4,733	$	-

Certain investments that are actively traded and have quoted market prices have been classified as Level 1 valuations. Other investment securities available-for-sale have been valued by reference to prices for similar securities or through model-based techniques in which all significant inputs are observable and, therefore, such valuations have been classified as Level 2.

In addition to disclosures of the fair value of assets on a recurring basis, FASB ASC Topic 820 on “Fair Value Measurement” requires disclosures for assets and liabilities measured at fair value on a nonrecurring basis, such as loans individually evaluated for expected credit losses in the period in which a re-measurement at fair value is performed. The Company uses the fair value of underlying collateral, less costs to sell, to estimate the allowance for credit losses for individually evaluated loans. Management may modify the appraised values, for qualitative factors such as economic conditions and estimated liquidation expenses ranging from 21.3% to 89.6%. Such modifications to the appraised values could result in lower valuations of such collateral. Based on the valuation techniques used, the fair value measurements for loans evaluated individually are classified as Level 3.

Fair values for foreclosed real estate are initially recorded at the estimated fair value of the property less estimated costs to dispose at the time of acquisition to establish a new carrying value. Values are derived from appraisals, similar to loans individually evaluated for expected credit loss, of underlying collateral. Any write-downs from the carrying value of the loan to estimated fair value, which are required at the time of foreclosure, are charged to the allowance for credit losses. Subsequent adjustments to the carrying value of such properties resulting from declines in fair value result in the establishment of a valuation allowance and are charged to operations in the period in which the declines occur. In the determination of fair value subsequent to foreclosure, management may modify the appraised values, for qualitative factors such as economic conditions and estimated liquidation expenses. Such modifications to the appraised values could result in lower valuations of such collateral. Based on the valuation techniques used, the fair value measurements for foreclosed real estate are classified as Level 3.


		December 31, 2025			June 30, 2025
(In thousands)	Fair value hierarchy		Carrying amount	Estimated fair value		Carrying amount		Estimated fair value
Loans evaluated individually	3	$	947	452	$	751	$	202

No other financial assets or liabilities were re-measured during the three and six month period on a nonrecurring basis.

The carrying amounts reported in the statements of financial condition for total cash and cash equivalents, long-term certificates of deposit, accrued interest receivable and accrued interest payable approximate their fair values. Fair values of securities are based on quoted market prices (Level 1), where available, or matrix pricing (Level 2), which is a mathematical technique, used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices. The carrying amount of Federal Home Loan Bank stock approximates fair value due to its restricted nature. The fair values for loans are measured using the "exit price" notion, which is a reasonable estimate of what another party might pay in an orderly transaction. Fair values for variable rate loans that reprice frequently, with no significant credit risk, are based on carrying value. Fair values for fixed rate loans are estimated using discounted cash flows and interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Fair values disclosed for demand and savings deposits are equal to carrying amounts at the reporting date. The carrying amounts for variable rate money market deposits approximate fair values at the reporting date. Fair values for long- term certificates of deposit are estimated using discounted cash flows and interest rates currently being offered in the market on similar certificates. Fair value for Federal Home Loan Bank long-term borrowings are estimated using discounted cash flows and interest rates currently being offered on similar borrowings. The carrying value of short-term Federal Home Loan Bank borrowings approximates its fair value. Fair value for subordinated notes payable is estimated based on a discounted cash flow methodology or observations of recent highly-similar transactions. Fair value for interest rate swaps include any accrued interest and are valued using the present value of cash flows discounted using observable forward rate assumptions. The Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy.

The carrying amounts and estimated fair value of financial instruments are as follows:


	December 31, 2025				Fair value measurements using
(In thousands)		Carrying amount		Fair value			(Level 1)		(Level 2)		(Level 3)
Cash and cash equivalents	$	124,088	$	124,088		$	124,088	$	-	$	-
Long-term certificate of deposit		1,225		1,230			-		1,230		-
Securities available-for-sale		411,590		411,590			-		411,590		-
Securities held-to-maturity		810,294		788,889			-		788,889		-
Equity securities		398		398			398		-		-
Federal Home Loan Bank stock		10,224		10,224			-		10,224		-
Net loans receivable		1,665,850		1,610,875			-		-		1,610,875
Accrued interest receivable		17,985		17,985			-		17,985		-
Interest rate swap asset		4,861		4,861			-		4,861		-

Deposits		2,641,040		2,640,950			-		2,640,950		-
Borrowings		184,189		184,532			-		184,532		-
Subordinated notes payable, net		29,929		28,670			-		28,670		-
Accrued interest payable		1,167		1,167			-		1,167		-
Interest rate swap liability		4,861		4,861			-		4,861		-



		June 30, 2025			Fair value measurements using
(In thousands)		Carrying amount		Fair value			(Level 1)		(Level 2)		(Level 3)
Cash and cash equivalents	$	183,078	$	183,078		$	183,078	$	-	$	-
Long-term certificate of deposit		1,425		1,421			-		1,421		-
Securities available-for-sale		356,062		356,062			-		356,062		-
Securities held-to-maturity		776,147		738,134			-		738,134		-
Equity securities		402		402			402		-		-
Federal Home Loan Bank stock		5,504		5,504			-		5,504		-
Net loans receivable		1,607,260		1,536,150			-		-		1,536,150
Accrued interest receivable		16,381		16,381			-		16,381		-
Interest rate swap asset		4,733		4,733			-		4,733		-

Deposits		2,639,835		2,639,246			-		2,639,246		-
Borrowings		78,189		78,346			-		78,346		-
Subordinated notes payable, net		49,867		48,485			-		48,485		-
Accrued interest payable		1,271		1,271			-		1,271		-
Interest rate swap liability		4,733		4,733			-		4,733		-

(6)

Derivative Instruments

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, primarily by managing the amount, sources and duration of its assets and liabilities. The Company has interest rate derivatives that result from a service provided to certain qualifying customers and, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. The Company manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions.

Derivatives Not Designated as Hedging Instruments

The Company enters into interest rate swap agreements with its commercial customers to provide them with a long-term fixed rate, while simultaneously entering into offsetting interest rate swap agreements with a counterparty to swap the fixed rate to a variable rate to manage interest rate exposure. These interest rate swap agreements are not designated as hedges for accounting purposes. As the interest rate swap agreements have substantially equivalent and offsetting terms, they do not present any material exposure to the Company’s consolidated statements of income. The Company records its interest rate swap agreements at fair value and are presented within other assets and other liabilities on the consolidated statements of financial condition. Changes in the fair value of assets and liabilities arising from these derivatives are included, net, in other operating income in the consolidated statements of income. Under terms of the agreements with the third-party counterparties, the Company provides cash collateral to the counterparty, when required, for the initial trade. Subsequent to the trade, the margin is exchanged in either direction, based upon the estimated fair value of the underlying contracts. Cash collateral represents the amount that is exchanged under master netting agreements that allows the Company to offset the derivative position with the related collateral. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements.

The following tables present the notional amount and fair values of interest rate derivative positions:


	At December 31, 2025
	Asset derivatives					Liability derivatives
(In thousands)	Statement of financial condition location		Notional amount		Fair value	Statement of financial condition location		Notional amount		Fair value
Interest rate derivatives	Other assets	$	170,065	$	4,861	Other liabilities	$	170,065	$	4,861
Less cash collateral					-	Other liabilities				(4,820	)
Total after netting				$	4,861				$	41



	At June 30, 2025
	Asset derivatives					Liability derivatives
(In thousands)	Statement of financial condition location		Notional amount		Fair value	Statement of financial condition location		Notional amount		Fair value
Interest rate derivatives	Other assets	$	140,777	$	4,733	Other liabilities	$	140,777	$	4,733
Less cash collateral					-	Other liabilities				(4,280	)
Total after netting				$	4,733				$	453

Risk Participation Agreements

Risk participation agreements (“RPAs”) are guarantees issued by the Company to other parties for a fee, whereby the Company agrees to participate in the credit risk of a derivative customer of the other party. Under the terms of these agreements, the “participating bank” receives a fee from the “lead bank” in exchange for the guarantee of reimbursement if the customer defaults on an interest rate swap. The interest rate swap is transacted such that any and all exchanges of interest payments (favorable and unfavorable) are made between the lead bank and the customer. In the event that an early termination of the swap occurs and the customer is unable to make a required close out payment, the participating bank assumes that obligation and is required to make this payment.

RPAs in which the Company acts as the lead bank are referred to as “participations-out,” in reference to the credit risk associated with the customer derivatives being transferred out of the Company. Participations-out generally occur concurrently with the sale of new customer derivatives. The RPAs participations-out are spread out over three financial institution counterparties and terms range between three to seven years. The Company’s credit exposure transferred out was $413,000 and $506,000 as of December 31, 2025 and June 30, 2025, respectively. The Company transferred out RPAs with a notional amount of $22.5 million and $18.9 million as of December 31, 2025 and June 30, 2025, respectively.

RPAs where the Company acts as the participating bank are referred to as “participations-in,” in reference to the credit risk associated with the counterparty’s derivatives being assumed by the Company. The Company’s maximum credit exposure is based on its proportionate share of the settlement amount of the referenced interest rate swap. Settlement amounts are generally calculated based on the fair value of the swap plus outstanding accrued interest receivables from the customer. The RPAs participations-ins are spread out over five financial institution counterparties and terms range between one to eleven years. The credit exposure associated with risk participations-ins was $893,000 and $1.0 million as of December 31, 2025 and June 30, 2025, respectively. The Company held RPAs with a notional amount of $143.7 million and $130.9 million as of December 31, 2025 and June 30, 2025, respectively.

(7)

Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is computed in a manner similar to that of basic EPS except that the weighted-average number of common shares outstanding is increased to include the number of incremental common shares that would have been outstanding under the treasury stock method if all potentially dilutive common shares (such as stock options) issued became vested during the period. Unallocated common shares held by the ESOP are not included in the weighted-average number of common shares outstanding for either the basic or diluted EPS calculations. There were no dilutive or anti-dilutive securities or contracts outstanding during the three and six months ended December 31, 2025 and 2024.


		For the three months ended December 31,				For the six months ended December 31,
		2025		2024		2025		2024

Net Income	$	10,292,000	$	7,490,000	$	19,162,000	$	13,751,000
Weighted average shares - basic		17,026,828		17,026,828		17,026,828		17,026,828
Weighted average shares - diluted		17,026,828		17,026,828		17,026,828		17,026,828

Earnings per share - basic	$	0.60	$	0.44	$	1.13	$	0.81
Earnings per share - diluted	$	0.60	$	0.44	$	1.13	$	0.81

(8)

Dividends

On October 22, 2025, the Company announced that its Board of Directors has approved a quarterly cash dividend of $0.10 per share on the Company’s common stock. The dividend reflects an annual cash dividend rate of $0.40 per share, which is the same rate as the dividend declared during the previous quarter. The dividend was payable to stockholders of record as of November 14, 2025, and was paid on November 28, 2025. Greene County Bancorp, MHC waived its right to receive this dividend.

(9)

Employee Benefit Plans

Defined Benefit Plan

The Bank maintains a single-employer defined benefit pension plan (the “Pension Plan”). Effective January 1, 2006, the Board of Directors of the Bank resolved to exclude from membership in the Pension Plan employees hired on or after January 1, 2006 and elected to cease additional benefit accruals to existing Pension Plan participants effective July 1, 2006. Substantially all Bank employees who were hired before January 1, 2006, and attained the age of 21 are covered by the Pension Plan. Under the Pension Plan, retirement benefits are primarily a function of both years of service and level of compensation, at July 1, 2006. The Pension Plan is frozen.

On September 16, 2025, the Board of Directors approved the termination of the Pension Plan effective as of September 30, 2025. Pension Plan assets are sufficient to cover the estimated Pension Plan obligation as of period end. During the quarter ended December 31, 2025, the Company initiated the Pension Plan termination process and partially settled benefit obligations, recognizing a settlement charge of $199,000. The charge is included in other expenses in the accompanying consolidated statements of income.

Information regarding the Pension Plan at period end are as follows:


(In thousands)
Change in projected benefit obligation:		December 31, 2025			June 30, 2025
Benefit obligation at beginning of period	$	4,075		$	4,119
Interest cost		107			213
Actuarial loss		700			(1	)
Benefits paid		(888	)		(256	)
Benefit obligation at end of period		3,994			4,075

Change in fair value of plan assets:
Fair value of plan assets at beginning of period		4,746			4,654
Actual return on plan assets		132			348
Employer contributions		-			-
Benefits paid		(888	)		(256	)
Fair value of plan assets at end of period		3,990			4,746
Under (Over) funded status at end of period included in other liabilities	$	4		$	(671	)

The components of net periodic pension cost related to the Pension Plan during the three and six months ended December 31, 2025 and 2024 were as follows:


		For the three months ended December 31,
(In thousands)		2025			2024
Interest cost	$	53		$	53
Expected return on plan assets		(58	)		(57	)
Amortization of net loss		1			8
Effect of settlement		199			-
Net periodic pension expense	$	195		$	4


		For the six months ended December 31,
(In thousands)		2025			2024
Interest cost	$	107		$	106
Expected return on plan assets		(116	)		(114	)
Amortization of net loss		5			16
Effect of settlement		199			-
Net periodic pension expense	$	195		$	8

The accumulated benefit obligation for the pension plan was $4.0 million and $4.1 million at December 31, 2025 and June 30, 2025, respectively.

Changes in plan assets and benefit obligations recognized in other comprehensive income during the three and six months ended December 31, 2025 consisted of the following:

(In thousands)		Three months ended December 31, 2025			Six months ended December 31, 2025
Actuarial loss on plan assets and benefit obligations	$	(479	)	$	(479	)
Deferred tax expense		128			128
Net change in plan assets and benefit obligations recognized in other comprehensive income	$	(351	)	$	(351	)

For the three and six months ended December 31, 2024, there were no changes in plan assets and benefit obligations recognized in other comprehensive income.

Amounts recognized in the consolidated statements of financial condition related to our pension plan for the period ended December 31, 2025 and June 30, 2025 are as follows:


(In thousands)
Other liabilities:		December 31, 2025			June 30, 2025
Projected benefit obligation in deficit (surplus) of fair value of pension plan	$	4		$	(671	)
Accumulated other comprehensive loss, net of taxes:
Net losses and past service liability	$	(768	)	$	(417	)

The principal actuarial assumptions used at December 31, 2025 and June 30, 2025 was as follows were as follows:


Projected benefit obligation:	December 31, 2025		June 30, 2025
Discount rate	4.10	%	5.37	%
Net periodic pension expense:
Amortization period, in years	11		11
Discount rate	5.37	%	5.30	%
Expected long-term rate of return on plan assets	5.00	%	5.00	%

The discount rate used in the measurement of the Bank’s pension obligation is based on the FTSE Pension Discount Curve and Liability index based on expected benefit payments of the pension plan. The discount rates are evaluated at each measurement date to give effect to changes in the general interest rates. The expected long-term rate of return on plan assets reflects the average rate of earnings expected on the funds invested or to be invested to provide for the benefits included in the projected benefit obligation. The selected rate considers the historical and expected future investment trends of the present and expected assets in the plan. Since this is a frozen plan, the compensation rate is zero percent.

The weighted average asset allocation and fair value of our pension plan assets at December 31, 2025 and June 30, 2025 was as follows:


		December 31, 2025				June 30, 2025
(Dollars in thousands)		Fair Value				Fair Value
Money market	$	414	10.5	%	$	1,382	29.1	%
Mutual funds – fixed income		3,576	89.5			3,364	70.9
Total plan assets	$	3,990	100.0	%	$	4,746	100.0	%

The fair value of assets within the pension plan was determined utilizing a quoted price in active markets at the measurement date. As such, these assets are classified as Level 1 within the “Fair Value Measurement” hierarchy.

The target allocation for investment in mutual funds is 100.0%, consisting of short-term and intermediate-term fixed income bond funds. This allocation is consistent with the Company’s goal of preserving capital while achieving investment results that will contribute to the proper funding of pension obligations and cash flow requirements.

SERP

The Board of Directors of the Bank of Greene County adopted The Bank of Greene County Supplemental Executive Retirement Plan (the “SERP”), effective as of July 1, 2010. The SERP benefits certain key senior executives of the Bank who have been selected by the Board to participate. The SERP is intended to provide a benefit from the Bank upon vested retirement, death or disability or voluntary or involuntary termination of service (other than “for cause”). The SERP is more fully described in Note 9, Employee Benefits Plans of the consolidated financial statements presented in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025.

The net periodic pension costs related to the SERP for the three and six months ended December 31, 2025 was $571,000, and $1.1 million, respectively, consisting primarily of service and interest costs, included within salaries and benefits expense on the consolidated statements of income. The total liability for the SERP was $19.1 million at December 31, 2025, and $17.6 million at June 30, 2025, and is included in accrued expenses and other liabilities on the consolidated statements of financial condition. The total liability for the SERP includes both accumulated net periodic pension costs and participant contributions.

(10)

Stock-Based Compensation

Phantom Stock Option Plan and Long-term Incentive Plan

The Greene County Bancorp, Inc. 2011 Phantom Stock Option and Long-term Incentive Plan (the “Plan”) was adopted effective July 1, 2011, to promote the long-term financial success of the Company and its subsidiaries by providing a means to attract, retain and reward individuals who contribute to such success and to further align their interests with those of the Company’s shareholders. The Plan is intended to provide benefits to employees and directors of the Company or any subsidiary as designated by the Compensation Committee of the Board of Directors of the Company. A phantom stock option represents the right to receive a cash payment on the date the award vests. The Plan is more fully described in Note 10, Stock-Based Compensation of the consolidated financial statements presented in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025.

A summary of the Company’s phantom stock option activity and related information for the Plan for the three and six months ended December 31, 2025 and 2024 were as follows:


	Three months ended December 31,				Six months ended December 31,
	2025		2024		2025		2024
Number of options outstanding, beginning of period	2,481,995		2,656,630		1,871,590		2,253,535
Options granted	-		-		634,405		651,595
Options forfeited	-		(12,000	)	-		(12,000	)
Options paid in cash upon vesting	(613,000	)	(771,040	)	(637,000	)	(1,019,540	)
Number of options outstanding, end of period	1,868,995		1,873,590		1,868,995		1,873,590


		Three months ended December 31,				Six months ended December 31,
(In thousands)		2025		2024		2025		2024
Cash paid out on options vested	$	2,840	$	3,312	$	2,917	$	4,249
Compensation expense recognized	$	862	$	633	$	1,470	$	1,244

The total liability for the long-term incentive plan was $2.9 million and $4.4 million at December 31, 2025 and June 30, 2025, respectively, and is included in accrued expenses and other liabilities on the consolidated statements of financial condition.

(11)

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss are presented as follows:

Activity for the three months ended December 31, 2025 and 2024


(In thousands)		Unrealized losses on securities available-for-sale			Pension benefits			Total
Balance – September 30, 2025	$	(11,869	)	$	(417	)	$	(12,286	)
Other comprehensive income (loss) before reclassification		514			(501	)		13
Reclassification adjustment for loss on sale of securities available-for-sale realized in net income, net		422			-			422
Amortization of pension actuarial losses recognized in other expense, net		-			150			150
Other comprehensive income (loss) for the three months ended December 31, 2025		936			(351	)		585
Balance – December 31, 2025	$	(10,933	)	$	(768	)	$	(11,701	)

Balance – September 30, 2024	$	(13,612	)	$	(528	)	$	(14,140	)
Other comprehensive loss before reclassification		(3,802	)		-			(3,802	)
Other comprehensive loss for the three months ended December 31, 2024		(3,802	)		-			(3,802	)
Balance – December 31, 2024	$	(17,414	)	$	(528	)	$	(17,942	)

Activity for the six months ended December 31, 2025 and 2024


(In thousands)		Unrealized losses on securities available-for-sale			Pension benefits			Total
Balance – June 30, 2025	$	(13,119	)	$	(417	)	$	(13,536	)
Other comprehensive income (loss) before reclassification		1,764			(501	)		1,263
Reclassification adjustment for loss on sale of securities available-for-sale realized in net income, net		422			-			422
Amortization of pension actuarial losses recognized in other expense, net		-			150			150
Other comprehensive income (loss) for the six months ended December 31, 2025		2,186			(351	)		1,835
Balance – December 31, 2025	$	(10,933	)	$	(768	)	$	(11,701	)

Balance – June 30, 2024	$	(19,182	)	$	(528	)	$	(19,710	)
Other comprehensive income before reclassification		1,768			-			1,768
Other comprehensive income for the six months ended December 31, 2024		1,768			-			1,768
Balance – December 31, 2024	$	(17,414	)	$	(528	)	$	(17,942	)

(12)

Operating leases

The Company leases certain branch properties under long-term operating lease agreements. The Company’s operating lease agreements contain non-lease components, which are generally accounted for separately. The Company’s lease agreements do not contain any residual value guarantee.

The following includes quantitative data related to the Company’s operating leases at December 31, 2025 and June 30, 2025, and for the three and six months ended December 31, 2025 and 2024:


(In thousands)
Operating lease amounts:		December 31, 2025		June 30, 2025
Right-of-use assets	$	2,044	$	2,284
Lease liabilities	$	2,139	$	2,366


		For the three months ended December 31,
(In thousands)		2025		2024
Other information:
Operating outgoing cash flows from operating leases	$	141	$	125

Lease costs:
Operating lease cost	$	130	$	114
Variable lease cost	$	11	$	11


		For the six months ended December 31,
(In thousands)		2025		2024
Other information:
Operating outgoing cash flows from operating leases	$	269	$	250
Right-of-use assets obtained in exchange for new operating lease liabilities		-		117

Lease costs:
Operating lease cost	$	270	$	227
Variable lease cost	$	22	$	22

The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding common area maintenance charges and real estate taxes as of December 31, 2025:


(In thousands, except weighted-average information)
Within the twelve months ended December 31,
2026	$	290
2027		534
2028		463
2029		319
2030		298
Thereafter		487
Total undiscounted cash flow		2,391
Less net present value adjustment		(252	)
Lease liability	$	2,139

Weighted-average remaining lease term (years)		5.52
Weighted-average discount rate		3.67	%

Right-of-use assets are included in prepaid expenses and other assets, and lease liabilities are included in accrued expenses and other liabilities within the Company’s consolidated statements of financial condition.

(13)

Commitments and Contingent Liabilities

Credit-Related Financial Instruments

In the normal course of business, the Company offers financial instruments with off-balance sheet risk to meet the financing needs of its customers. These transactions include commitments to extend credit, standby letters of credit, and lines of credit, which involve, to varying degrees, elements of credit risk, which are not reflected in the accompanying consolidated financial statements.

The Company’s unfunded loan commitments and unused lines of credit are as follows at December 31, 2025 and June 30, 2025:


(In thousands)		December 31, 2025		June 30, 2025
Unfunded loan commitments	$	129,318	$	164,348
Unused lines of credit		128,903		110,943
Standby letters of credit		543		793
Total credit-related financial instruments with off-balance sheet risk	$	258,764	$	276,084

The Company enters into contractual commitments to extend credit to its customers in the form of loan commitments and lines of credit, generally with fixed expiration dates and other termination clauses, and may require payment of a fee. Substantially all of the Company's commitments to extend credit are contingent upon its customers maintaining specific credit standards at the time of loan funding and are often secured by real estate collateral. Since the majority of the Company's commitments typically expire without being funded, the total contractual amount does not necessarily represent the Company's future payment requirements.

The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral, if any, required upon an extension of credit is based on management’s evaluation of customer credit. Commitments to extend mortgage credit are primarily collateralized by first liens on real estate. Collateral on extensions of commercial lines of credit vary but may include accounts receivable, inventory, property, plant and equipment, and income producing commercial property.

Allowance for Credit Losses on Unfunded Commitments

(14)

Variable Interest Entities

Solar Tax Credit Investments

The Company makes non-marketable equity investments in entities that sponsor solar development projects that qualify for the Solar Tax Credit Program. The purpose of these investments is to assist the Company in meeting its responsibilities under the Community Reinvestment Act (“CRA”), and to provide a return, primarily through the realization of tax benefits. The Company does not have controlling interest and is not the primary beneficiary for the solar tax credit investments, therefore the entity is not consolidated. The Company has determined that it is not the primary beneficiary due to its inability to direct activities that most significantly impact economic performance. The Company applies the proportional amortization method to subsequently measure its investment in solar tax credit projects.

The following table summarizes the Company’s solar tax credit investments and related unfunded commitments:


(In thousands)		December 31, 2025			June 30, 2025
Gross investment in solar tax credit investments	$	7,609		$	2,586
Accumulated amortization		(6,671	)		(2,586	)
Net investment in solar tax credit investments	$	938		$	-

Unfunded commitments for solar tax credit investments	$	1,372		$	6,381

The aggregate carrying value of the Company’s solar tax credit investments is included in accrued interest receivable, and prepaid expenses and other assets within the Company’s consolidated statements of financial condition and represents the Company’s maximum exposure to loss.

(15)

Subsequent events

On January 21, 2026, the Board of Directors announced a cash dividend for the quarter ended December 31, 2025, of $0.10 per share on the Company’s common stock. The dividend reflects an annual cash dividend rate of $0.40 per share, which was the same rate as the dividend declared during the previous quarter. The dividend will be payable to stockholders of record as of February 13, 2026, and is expected to be paid on February 27, 2026. Greene County Bancorp, MHC has historically waived its right to receive dividends from the Company however, for purposes of cash flow, Greene County Bancorp, MHC does not intend to waive its receipt of these dividends to be paid by the Company for the quarter ended December 31, 2025.

Management has reviewed events from the date of the unaudited consolidated financial statements, and accompanying notes thereto, through the date of issuance, and determined that no subsequent events occurred requiring adjustment to or disclosure in these unaudited consolidated financial statements.

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operation

Overview of the Company’s Activities and Risks

The Company’s results of operations depend primarily on its net interest income, which is the difference between the income earned on the Company’s loan and securities portfolios and its cost of funds, consisting of the interest paid on deposits and borrowings. Results of operations are also affected by the Company’s provision for credit losses, noninterest income and noninterest expense. Noninterest income consists primarily of fees and service charges. The Company’s noninterest expense consists principally of compensation and employee benefits, occupancy, equipment and data processing, and other operating expenses. Results of operations are also significantly affected by general economic and competitive conditions, changes in interest rates, as well as government policies and actions of regulatory authorities. Additionally, future changes in applicable law, regulations or government policies may materially affect the Company.

To operate successfully, the Company must manage various types of risk, including but not limited to, market or interest rate risk, credit risk, transaction risk, liquidity risk, security risk, strategic risk, reputation risk and compliance risk.

Market risk is the risk of loss from adverse changes in market prices and/or interest rates. Net interest income (the difference between interest earned on loans and investments and interest paid on deposits and borrowings) is the Company’s primary source of revenue and is affected by changes in interest rates as well as fluctuations in the level and duration of the Company’s assets and liabilities.

Interest rate risk is the most significant market risk affecting the Company since the majority of the Company’s assets and liabilities are sensitive to changes in interest rates. The Company’s primary sources of funds are deposits and proceeds from principal and interest payments on loans, mortgage-backed securities and debt securities. While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit outflows, mortgage prepayments, and lending activities are greatly influenced by general interest rates, economic conditions and competition.

Credit risk is the risk to the Company’s earnings and shareholders’ equity that results from customers to whom loans have been made and to the issuers of debt securities in which the Company has invested, failing to repay their obligations. The magnitude of risk depends on the capacity and willingness of borrowers and debt issuers to repay and the sufficiency of the value of collateral obtained to secure the loans made or investments purchased.

Liquidity risk is the risk the Company may not be able to satisfy current or future financial commitments or may become unduly reliant on alternate funding sources. The Company’s objective is to fund balance sheet growth while meeting the cash flow requirements of depositors. Management is responsible for liquidity monitoring and has available different sources of liquidity as requirements and demands change. These demands include loan growth and repayments, security purchases and maturities, deposit inflows and outflows, and payments on borrowings. Management continually monitors trends to identify patterns that might improve the predictability and timing of the Company’s liquidity position.

Operational risk is the risk to current or anticipated earnings or capital arising from inadequate or failed internal processes or systems, the misconduct or errors of people, and adverse external events. Operational losses result from internal fraud; external fraud including cybersecurity risks; employment practices and workplace safety, clients, products, and business practices; damage to physical assets; business disruption and system failures; and execution, delivery, and process management.

Special Note Regarding Forward-Looking Statements

This quarterly report contains forward-looking statements. Greene County Bancorp, Inc. desires to take advantage of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and is including this statement for the express purpose of availing itself of the protections of the safe harbor with respect to all such forward-looking statements. These forward-looking statements, which are included in this Management’s Discussion and Analysis and elsewhere in this quarterly report, describe future plans or strategies and include Greene County Bancorp, Inc.’s expectations of future financial results. The words “believe,” “may,” “will,” “intend,” “expect,” “anticipate,” “project,” and similar expressions identify forward-looking statements. Greene County Bancorp, Inc.’s ability to predict results or the effect of future plans or strategies or qualitative or quantitative changes based on market risk exposure is inherently uncertain. Factors that could affect actual results include but are not limited to:

(a)

changes in general market interest rates,

(b)

changes in general economic conditions,

(c)

credit risk,

(d)

continued period of high inflation could adversely impact customers,

(e)

cybersecurity risks,

(f)

bank failures,

(g)

changes in general business and economic trends,

(h)

legislative and regulatory changes,

(i)

monetary and fiscal policies of the U.S. Treasury and the Federal Reserve,

(j)

changes in the quality or composition of Greene County Bancorp, Inc.’s loan and investment portfolios,

(k)

deposit flows,

(l)

competition, and

(m)

demand for financial services in Greene County Bancorp, Inc.’s market area.

These factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements, since results in future periods may differ materially from those currently expected because of various risks and uncertainties.

Non-GAAP Financial Measures

Regulation G, a rule adopted by the Securities and Exchange Commission (“SEC”), applies to certain SEC filings, including earnings releases, made by registered companies that contain “non-GAAP financial measures.” “GAAP” is generally accepted accounting principles in the United States of America. Under Regulation G, companies making public disclosures containing non-GAAP financial measures must also disclose, along with each non-GAAP financial measure, certain additional information, including a reconciliation of the non-GAAP financial measure to the closest comparable GAAP financial measure (if a comparable GAAP measure exists) and a statement of the Company’s reasons for utilizing the non-GAAP financial measure as part of its financial disclosures. The SEC has exempted from the definition of “non-GAAP financial measures” certain commonly used financial measures that are not based on GAAP. When these exempted measures are included in public disclosures, supplemental information is not required. Financial institutions like the Company and its subsidiary banks are subject to an array of bank regulatory capital measures that are financial in nature but are not based on GAAP and are not easily reconcilable to the closest comparable GAAP financial measures, even in those cases where a comparable measure exists. The Company follows industry practice in disclosing its financial condition under these various regulatory capital measures, including period-end regulatory capital ratios for itself and its subsidiary banks, in its periodic reports filed with the SEC, and it does so without compliance with Regulation G, on the widely-shared assumption that the SEC regards such non-GAAP measures to be exempt from Regulation G. The Company uses in this Report additional non-GAAP financial measures that are commonly utilized by financial institutions and have not been specifically exempted by the SEC from Regulation G. The Company provides, as supplemental information, such non-GAAP measures included in this Report as described immediately below.

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.

Critical Accounting Policies

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.

The allowance for credit losses consists of the allowance for credit losses for loans and unfunded commitments. The measurement of Current Expected Credit Losses (“CECL”) on financial instruments requires an estimate of the credit losses expected over the life of an exposure (or pool of exposures). The estimate of expected credit losses under the CECL approach is based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. Historical loss experience is generally the starting point for estimating expected credit losses. The Company then considers whether the historical loss experience should be adjusted for asset-specific risk characteristics or current conditions at the reporting date that did not exist over the period from which historical experience was used. Finally, the Company considers forecasts about future economic conditions that are reasonable and supportable. The allowance for credit losses for loans, as reported in our consolidated statements of financial condition, is adjusted by a provision (expense) for credit losses, which is recognized in earnings, and reduced by the charge-off of loans, net of recoveries. The allowance for credit losses on unfunded commitments represents the expected credit losses on off-balance sheet commitments such as unfunded commitments to extend credit and standby letters of credit. However, a liability is not recognized for commitments unconditionally cancellable by the Company. The allowance for credit losses on unfunded commitments is determined by estimating future draws and applying the expected loss rates on those draws and is included in accrued expenses and other liabilities on the Company’s consolidated statements of financial condition.

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.

The Company’s policies on the CECL method for allowance for credit losses are disclosed in Note 1, Summary of significant accounting policies with the audited consolidated financial statements and notes presented in the Annual Report on Form 10-K for the fiscal year ended June 30, 2025.

Comparison of Financial Condition at December 31, 2025 and June 30, 2025

ASSETS

Total assets of the Company were $3.1 billion at December 31, 2025 and $3.0 billion at June 30, 2025, an increase of $106.4 million, or 3.5%. Securities available-for-sale and held-to-maturity increased $89.7 million, or 7.9%, to $1.2 billion at December 31, 2025 as compared to $1.1 billion at June 30, 2025. Net loans receivable increased $58.6 million, or 3.6%, to $1.7 billion at December 31, 2025 as compared to $1.6 billion at June 30, 2025.

CASH AND CASH EQUIVALENTS

Total cash and cash equivalents for the Company were $124.1 million at December 31, 2025 and $183.1 million at June 30, 2025, a decrease of $59.0 million, or 32.2%. 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 December 31, 2025 and June 30, 2025.

SECURITIES

Securities available-for-sale and held-to-maturity increased $89.7 million, or 7.9%, to $1.2 billion at December 31, 2025 as compared to $1.1 billion at June 30, 2025. Securities purchases totaled $459.6 million during the six months ended December 31, 2025, and consisted primarily of $219.3 million of U.S. Treasuries, $189.5 million of state and political subdivision securities, $37.9 million of mortgage-backed securities, $9.0 million of corporate debt securities, and $3.9 million of collateralized mortgage obligations. Principal pay-downs and maturities during the six months ended December 31, 2025 amounted to $364.9 million, primarily consisting of $180.0 million of U.S. Treasuries, $153.4 million of state and political subdivision securities, $21.3 million of mortgage-backed securities, $8.3 million of corporate debt securities, and $1.9 million of collateralized mortgage obligations. Sales during

GREENE COUNTY BANCORP INC 10-Q