Greene County Bancorp, Inc. Announces Earnings Increase

Business Wire, July 28, 2008

The provision for income taxes reflected the expected tax associated with the revenue generated for the given period and certain regulatory requirements. The effective tax rate was 30.0% for the fiscal year ended June 30, 2008, compared to 28.7% for the fiscal year ended June 30, 2007. The increase in effective rates for the period ended June 30, 2008 was the result of increased pre-tax income and the resultant decreased percentage of tax exempt interest earned in total taxable income. The effective tax rate was 31.3% for the quarter ended June 30, 2008, compared to 31.8% for the quarter ended June 30, 2007.

Total assets of the Company increased to $379.6 million at June 30, 2008 from $325.8 million at June 30, 2007, an increase of $53.8 million or 16.5%. Loans continued to grow from $207.3 million at June 30, 2007 to $238.4 million at June 30, 2008. Securities, including both available for sale and held to maturity, also increased during the fiscal year ended June 30, 2008, and represented $113.1 million or 29.8% of total assets at June 30, 2008 as compared to $87.2 million or 26.8% of total assets at June 30, 2007. Funding the growth in loans and securities was a $37.3 million increase in deposits to $321.4 million and a $15.0 million increase in borrowed funds to $20.0 million at June 30, 2008. The Company's investments in mortgage-backed securities are all U.S. government-sponsored enterprise obligations. The Company has no exposure to sub-prime loans in its securities portfolio.

Shareholders' equity increased to $36.3 million at June 30, 2008 from $35.4 million at June 30, 2007, as net income of $2.7 million and other comprehensive income of $391,000 were partially offset by dividends declared and paid of $1.3 million. In addition, the Company recorded an adjustment, effective July 1, 2007, reducing retained earnings by $218,000 as a result of implementing FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109." On August 22, 2007, the Board of Directors authorized a stock repurchase program pursuant to which the Company intends to repurchase up to 5% of its outstanding shares (excluding shares held by Greene County Bancorp, MHC, the Company's mutual holding company), or up to 92,346 shares. During the fiscal year ended June 30, 2008, the Company repurchased 62,478 shares at a cost of approximately $799,000. As a result of this stock repurchase during the period, treasury shares were increased to 210,142. Other changes in equity, totaling a net increase of $39,000, were the result of activities associated with the various stock-based compensation plans of the Company, including the 2000 Stock Option Plan and ESOP Plan.

Headquartered in Catskill, New York, the Company provides full-service community-based banking in its ten branch offices located in Greene, Columbia and Albany Counties.

Customers are offered 24-hour services through ATM network systems, an automated telephone banking system and Internet Banking through its web site at http://www.tbogc.com.