Note 18.

Condensed Financial Statements of Greene County Bancorp, Inc.

The following condensed financial statements summarize the financial position and the results of operations and cash flows of Greene County Bancorp, Inc. for the periods indicated.

Greene County Bancorp, Inc.

Condensed Statements of Financial Condition

At June 30, 2018 and 2017

(In thousands)

ASSETS	2018		2017
Cash and cash equivalents	$	1,476	$	2,015
Investment in subsidiaries		94,681		81,540
Prepaid expenses and other assets		116		53
Total assets	$	96,273	$	83,608

LIABILITIES AND SHAREHOLDERS’ EQUITY
Total liabilities	$	82	$	87
Total shareholders’ equity		96,191		83,521
Total liabilities and shareholders’ equity	$	96,273	$	83,608

Greene County Bancorp, Inc.

Condensed Statements of Income

For the Years Ended June 30, 2018 and 2017

(In thousands)

	2018		2017
INCOME:
Equity in undistributed net income of subsidiaries	$	12,812	$	9,484
Dividend distributed by subsidiary		1,914		1,904
Interest-earning deposits		2		6
Total Income		14,728		11,394

OPERATING EXPENSES:
Legal fees		56		46
Other		264		161
Total operating expenses		320		207
Net income	$	14,408	$	11,187

Greene County Bancorp, Inc.

Condensed Statements of Comprehensive Income

For the Years Ended June 30, 2018 and 2017

(In thousands)

	2018			2017
Net income	$	14,408		$	11,187
Other comprehensive loss:
Unrealized holding losses on available-for-sale securities,
net of income tax benefit of ($319) and ($392), respectively		(659	)		(612	)

Accretion of unrealized loss on securities transferred to held-to-maturity, net of income tax expense of $- and $1, respectively		-			2

Pension actuarial gain, net of income tax expense of $58 and $158, respectively		163			221

Amortization of pension actuarial losses recognized in salaries and benefits, net of income taxes of $44 and $75, respectively		124			122

Total other comprehensive loss net of taxes		(372	)		(267	)

Comprehensive income	$	14,036		$	10,920

Greene County Bancorp, Inc.

Condensed Statements of Cash Flows

For the Years Ended June 30, 2018 and 2017

(In thousands)

Cash flow from operating activities:	2018			2017
Net Income	$	14,408		$	11,187

Adjustments to reconcile net income to cash provided by operating activities:
Undistributed earnings of subsidiaries		(12,812	)		(9,484	)
Tax benefit of stock based compensation		-			(51	)
Net increase in prepaid expenses and other assets		(63	)		(5	)
Net (decrease) increase in total liabilities		(6	)		27
Net cash provided by operating activities		1,527			1,674

Cash flows from Investing Activities:
Investment in subsidiary		(700	)		(600	)
Net cash used by investing activities		(700	)		(600	)

Cash flows from financing activities:
Payment of cash dividends		(1,526	)		(1,920	)
Proceeds from exercise of stock options		160			169
Excess tax benefit from share-based payment arrangements		-			51
Net cash used in financing activities		(1,366	)		(1,700	)
Net decrease in cash and cash equivalents		(539	)		(626	)
Cash and cash equivalents at beginning of year		2,015			2,641
Cash and cash equivalents at end of year	$	1,476		$	2,015