Stock-Based Compensation

12 Months Ended

Jun. 30, 2014

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Note 10.  Stock-Based Compensation

Stock Option Plan

On July 29, 2008, shareholders approved the Greene County Bancorp, Inc. 2008 stock-based compensation plan (the “2008 Option Plan”) which allows the Company to issue up to 180,000 options and stock appreciation rights.  On August 19, 2008, the Board of Directors granted 164,500 options and stock appreciation rights (in tandem) to buy stock under the 2008 Option Plan at an exercise price of $12.50, the fair value of the stock on that date.  These options have a 10-year term and vested over a three year period upon meeting specific earnings performance goals.

A summary of the Company’s stock option activity and related information for its option plans for the years ended June 30, 2014 and 2013 is as follows:

	2014					2013
				Weighted Average					Weighted Average
				Exercise					Exercise
				Price					Price
	Options			Per Share		Options			Per Share
Outstanding at beginning of year		87,400		$	12.50		103,700		$	12.50
Exercised		(27,965	)	$	12.50		(16,300	)	$	12.50
Outstanding at period end		59,435		$	12.50		87,400		$	12.50
Exercisable at period end		59,435		$	12.50		87,400		$	12.50

The following table presents stock options outstanding and exercisable at June 30, 2014:

Options Outstanding and Exercisable
Range of Exercise Prices		Number Outstanding		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price
$	12.50		59,435		4.25	$	12.50

The Company recognized $19,000 in compensation costs and related income tax benefit of $6,000 related to the 2008 Option Plan for the year ended June 30, 2013.  At June 30, 2014 and 2013, all outstanding shares were fully vested, with no remaining compensation cost to be recognized. There were no stock options granted during the years ended June 30, 2014 or 2013.  The total intrinsic value of the options exercised during the year ended June 30, 2014 was approximately $378,000.  The total intrinsic value of the options exercised during the year ended June 30, 2013 was approximately $126,000

Phantom Stock Option Plan and Long-term Incentive Plan

Greene County Bancorp, Inc. (the “Company”) entered into the Greene County Bancorp, Inc. 2011 Phantom Stock Option and Long-Term Incentive Plan (the “Plan”), 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 (“Committee”).   A total of 900,000 phantom stock options are available for awards under the Plan.  A phantom stock option represents the right to receive a cash payment on the date the award vests in the participant equal to the positive difference between the strike price on the grant date and the book value of a share of the Company stock on the determination date, which is the last day of the plan year that is the end of the third plan year after the grant date of the award, unless otherwise specified by the Committee.  The strike price will be the price established by the Committee, which will not be less than 100% of the book value of a share on a specified date, as determined under generally accepted accounting principles (GAAP) as of the last day of the quarter ending on or immediately preceding the valuation date with adjustments made, in the sole discretion of the Committee, to exclude accumulated other comprehensive income (loss).  During the years ended June 30, 2014 and 2013, phantom stock options totaling 236,308 and 243,473, respectively, were awarded under the Plan.  During the year ended June 30, 2014, 6,840 options were forfeited, and 26,506 options vested early and were paid in cash due to the death of the grantee.  At June 30, 2014, 216,540 options, with a value of $714,500 fully vested and will be paid in cash during the first quarter of the year ended June 30, 2015.  The Company recognized $786,800 and $147,300 in compensation costs related to the Plan during the years ended June 30, 2014 and 2013, respectively.  The total liability for the long-term incentive plan was $1.2 million and $396,000 at June 30, 2014 and 2013, respectively.