GOUVERNEUR, N.Y., April 29 /PRNewswire-FirstCall/ -- Gouverneur
Bancorp, Inc. (OTC Bulletin Board: GOVB) (the "Company") and its
subsidiary, Gouverneur Savings and Loan Association (the "Bank"),
which operate on a fiscal year ending on September 30, today announced results for the
second quarter and six month period ended March 31, 2010.
For the three months ended March 31,
2010, the Company reported net income of $414,000, or $0.18
per diluted share, representing an increase of $66,000, or 19.0% over last year's net income of
$348,000, or $0.15 per diluted share. The annualized
return on average assets and average equity for the three months
ended March 31, 2010 were 1.13% and
7.44%, respectively, compared to 1.03% and 6.61%, respectively, for
the three months ended March 31,
2009.
For the six months ended March 31,
2010, the Company reported net income of $806,000, or $0.36
per diluted share, representing an increase of $107,000, or
15.3% from last year's net income of $699,000, or $0.31
per diluted share. The annualized return on average assets
and average equity for the six months ended March 31, 2010 were 1.12% and 7.36%,
respectively, compared to 1.02% and 6.64%, respectively, during the
six months ended March 31, 2009.
Since September 30, 2009, total
assets rose $2.5 million, or 1.7%,
from $143.7 million to $146.2 million
at March 31, 2010, while net loans
increased $0.2 million, or 0.2%, from
$114.1 million to $114.3 million over
the same period.
Deposits decreased $2.3 million,
or 2.5%, from $91.4 million at
September 30, 2009 to $89.1 million at March 31,
2010. Advances from the Federal Home Loan Bank of
New York increased $4.2 million, or 15.6%, from $27.0 million at September
30, 2009 to $31.2 million at
March 31, 2010.
Shareholders' equity was $22.3
million at March 31, 2010, an
increase of 1.8% over the September 30,
2009 balance of $21.9 million.
The book value of Gouverneur Bancorp, Inc. was $9.86 per common share based on 2,257,898 shares
outstanding at March 31, 2010.
On March 31, 2010 the Company
paid a semi-annual cash dividend of $0.17 per share to public shareholders of record
on March 15, 2010. Cambray
Mutual Holding Company, the Company's parent mutual holding company
and majority shareholder, waived its right to receive that
dividend.
Interest rate spread, the difference between the average rate
earned on interest-bearing assets and the cost of interest-bearing
liabilities, is strong as decreases in interest costs have exceeded
decreases in interest income. For the six months ended
March 31, 2010 after a $70,000 provision for loan losses, net interest
income increased by $431,000 as
interest income increased $95,000 and
interest expense decreased $406,000.
Commenting on the period's results, Mr. Charles C. Van Vleet, the Company's President
and Chief Executive Officer, said, "Results for the three months
ending March 31, 2010 show that the
interest expense declined to $521,000, from $720,000 in the same period in 2009.
Currently it is believed that the lower rates will continue
until later this year."
Mr. Van Vleet adds, "In
December 2009, the Bank pre-paid a
three-year FDIC premium of $368,000.
Six months into the fiscal year, the company remains well
capitalized as we enter a period of rate and regulatory
challenges."
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.
SOURCE Gouverneur Bancorp, Inc.