Regulatory Matters

12 Months Ended

Jun. 30, 2025

Note 19. Regulatory Matters

The Bank of Greene County and its wholly-owned subsidiary, Greene County Commercial Bank, are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material impact on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank and the Commercial Bank must meet specific guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Bank of Greene County and Greene County Commercial Bank to maintain minimum amounts and ratios (set forth in the table below) of Total and Tier 1 Capital to risk-weighted assets and a Leverage Ratio of Tier 1 capital to average assets. The rules also require unrealized gains and losses on certain security holdings “available-for-sale” to be included for purposes of calculating regulatory capital unless a one-time opt-out is exercised. In addition to maintaining minimum capital ratios, the Bank and Commercial Bank are subject to a capital conservation buffer (“Buffer”) of 2.50% above the minimum to avoid restriction on capital distributions and certain discretionary bonus payments. Management believes that, as of June 30, 2025, the Bank of Greene County and Greene County Commercial Bank met all capital adequacy requirements to which they are subject.

Under their prompt corrective action regulations, regulatory authorities are required to take certain supervisory actions (and may take additional discretionary actions) with respect to an undercapitalized institution. Such actions could have a direct material effect on an institution’s financial statements. The regulations establish a framework for the classification of banks into five categories: well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized. As of June 30, 2025, the most recent notification from regulators categorized the Bank and Commercial Bank as “well capitalized” under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed either Bank’s category.





(Dollars in thousands)	Actual				For capital adequacy purposes				To be well capitalized under prompt corrective action provisions				Capital conservation buffer
The Bank of Greene County		Amount	Ratio			Amount	Ratio			Amount	Ratio			Actual		Required
As of June 30, 2025:
Total risk-based capital	$	293,952	16.6	%	$	141,305	8.0	%	$	176,632	10.0	%		8.64	%	2.50	%
Tier 1 risk-based capital		271,869	15.4			105,979	6.0			141,305	8.0			9.39		2.50
Common equity tier 1 capital		271,869	15.4			79,484	4.5			114,811	6.5			10.89		2.50
Tier 1 leverage ratio		271,869	9.2			117,646	4.0			147,057	5.0			5.24		2.50

As of June 30, 2024:
Total risk-based capital	$	273,460	17.1	%	$	127,873	8.0	%	$	159,841	10.0	%		9.11	%	2.50	%
Tier 1 risk-based capital		253,468	15.9			95,905	6.0			127,873	8.0			9.86		2.50
Common equity tier 1 capital		253,468	15.9			71,929	4.5			103,897	6.5			11.36		2.50
Tier 1 leverage ratio		253,468	9.3			109,102	4.0			136,378	5.0			5.29		2.50

Greene County Commercial Bank
As of June 30, 2025:
Total risk-based capital	$	122,243	46.9	%	$	20,871	8.0	%	$	26,089	10.0	%		38.86	%	2.50	%
Tier 1 risk-based capital		122,243	46.9			15,654	6.0			20,871	8.0			40.86		2.50
Common equity tier 1 capital		122,243	46.9			11,740	4.5			16,958	6.5			42.36		2.50
Tier 1 leverage ratio		122,243	9.1			53,543	4.0			66,929	5.0			5.13		2.50

As of June 30, 2024:
Total risk-based capital	$	110,319	49.5	%	$	17,830	8.0	%	$	22,288	10.0	%		41.50	%	2.50	%
Tier 1 risk-based capital		110,319	49.5			13,373	6.0			17,830	8.0			43.50		2.50
Common equity tier 1 capital		110,319	49.5			10,029	4.5			14,487	6.5			45.00		2.50
Tier 1 leverage ratio		110,319	9.1			48,385	4.0			60,481	5.0			5.12		2.50

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details