Gouverneur Bancorp Announces Fiscal 2010 First Quarter Results
February 12 2010 - 9:12AM
PR Newswire (US)
GOUVERNEUR, N.Y., Feb. 12 /PRNewswire-FirstCall/ -- Gouverneur
Bancorp, Inc. (OTC:GOVB) (BULLETIN BOARD: GOVB) (the "Company") the
parent holding company for Gouverneur Savings and Loan Association
(the "Bank"), today announced the results for the first quarter of
fiscal year 2010 ended December 31, 2009. For the three months
ended December 31, 2009 the Company reported net income of
$392,000, or $0.17 per diluted share, representing an increase of
$41,000, or 11.7%, over last year's net income of $351,000, or
$0.15 per diluted share. The annualized return on average assets
and the return on average equity increased to 1.08% and 7.15% for
the three months ended December 31, 2009 from 1.01% and 6.67%,
respectively, for the three months ended December 31, 2008. Total
assets increased by $5.6 million, or 4.0% from $139.3 million to
$144.9 million during the first three months of fiscal 2010, with
net loans increasing $1.0 million, or .8%, to reach $115.3 million
over the same period. Commenting on the quarter's results, Mr.
Richard F. Bennett, the Company's President and Chief Executive
Officer, said, "Short-term interest rates have been cut to historic
lows by the Federal Reserve. This has lowered our cost of funds as
borrowing rates and CD rates have adjusted downward more quickly
than have our loan rates. However, with the Federal government
imposing higher assessments and fees in order to offset the losses
incurred from other bank closings it is unclear what impact this
will have on banks such as ours. For that reason, the results of
the first quarter are probably not typical of what we can expect
for the entire year." Net interest income increased by $236,000, or
20.2%, from $1,169,000 for the quarter ended December 31, 2008 to
$1,405,000 for the quarter ended December 31, 2009. Interest income
increased $28,000, or 1.4%, while interest expense decreased
$208,000, or 26.2% over the same period. Non-interest income
increased $107,000, or 76.4% to $247,000 for the quarter ended
December 31, 2009 compared to $140,000 for the quarter ended
December 31, 2008. A 119.6% increase in the market value of the
underlying plan assets in the deferred directors' fees plan was the
primary factor in the fiscal 2010 quarter increase. Non-interest
expense increased by $260,000 from the first quarter of fiscal 2009
to the first quarter of fiscal 2010 as a $110,000 increase in the
market value of the underlying plan assets in the deferred
directors' fees plan and a $50,000 FDIC assessment fee led the
increases in this quarter's expense increase. Non-accrual loans
were $947,000 at December 31, 2009, compared to $750,000 at
September 30, 2009. There was a $30,000 loan loss provision and net
charge-offs were $17,000 for the quarter ended December 31, 2009.
The allowance for loan losses was $810,000, or 0.71% of total gross
loans outstanding at December 31, 2009 as compared to $797,000, or
0.70% at September 30, 2009. Deposits increased $0.6 million, or
0.8%, to $92.0 million at December 31, 2009 from $91.4 million at
September 30, 2009. Foreclosed real estate decreased from $641,000
at September 30, 2009 to $592,000 at December 31, 2009.
Shareholders' equity was $21.9 million at December 31, 2009, an
increase of 0.3% over the September 30, 2009 balance of $21.8
million. The book value of Gouverneur Bancorp, Inc. was $9.71 per
common share based on 2,257,898 shares outstanding at December 31,
2009. The Company, which is headquartered in Gouverneur, New York,
is the holding company for Gouverneur Savings and Loan Association.
Founded in 1892, the Bank is a federally chartered savings and loan
association offering a variety of banking products and services to
individuals and businesses in its primary market area in southern
St. Lawrence and northern Lewis and Jefferson Counties in New York
State. Statements in this news release contain forward-looking
statements as that term is defined in the Private Securities
Litigation Reform Act of 1995. These statements are based on the
beliefs of management as well as assumptions made using information
currently available to management. Since these statements reflect
the views of management concerning future events, these statements
involve risks, uncertainties and assumptions. These risks and
uncertainties include among others, the impact of changes in market
interest rates and general economic conditions, changes in
government regulations, changes in accounting principles and the
quality or composition of the loan and investment portfolios.
Therefore, actual future results may differ significantly from
results discussed in the forward-looking statements due to a number
of factors, which include, but are not limited to, factors
discussed in the documents filed by the Company with the Securities
and Exchange Commission from time to time. DATASOURCE: Gouverneur
Bancorp, Inc. CONTACT: Kimberly A. Adams, Vice President and Chief
Financial Officer, +1-315-287-2600
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