GOUVERNEUR, N.Y., Dec. 3, 2010 /PRNewswire-FirstCall/ --
Charles C. Van Vleet Jr., President
and Chief Executive Officer of Gouverneur Bancorp, Inc. (OTC
Bulletin Board: GOVB) (the "Company") holding company for
Gouverneur Savings and Loan Association (the "Bank"), announced
today results for its fiscal year ended September 30, 2010.
Net income for the fiscal year ended September 30, 2010 increased 28.8% to
$1,663,000, or $0.74 per diluted share, compared to $1,291,000, or $0.56 per diluted share, in fiscal 2009.
The return on average assets and average equity increased to
1.14% and 7.46%, respectively, for the year ended September 30, 2010 from 0.93% and 6.04%,
respectively, for the year ended September
30, 2009. Total assets grew by $3.2 million, or 2.2%, from $143.7 million at September 30, 2009 to $146.9 million at September 30, 2010, while net loans increased
$0.3 million, or 0.26%, from
$114.1 million to $114.4 million over
the same period.
Commenting on the results for the year, Mr. Van Vleet said, "We are pleased with our results
for the 2010 fiscal year. The Bank continues to be
profitable, has sound credit quality, and has not experienced any
shrinkage in the loan portfolio. We continue to operate as a
community bank by serving the needs of our local customers.
Being a community bank and working with the people of the
surrounding communities in this economic downturn has been a
benefit for all. The community bank model continues to show
its strength in this declining economic environment, unlike the
'too big to fail' models. However, as we look towards a
future with an uncertain economic outlook and new regulatory
environment, we expect to see additional strain being placed on the
Bank's profitability."
Gouverneur Savings and Loan remains well-capitalized with a core
capital ratio of 15.6%, an increase of 0.60% from 2009. Strong
asset composition with non-performing assets represented only 1.13%
of total assets, slightly higher than last year's 0.99%.
In fiscal 2010, interest income increased $223,000, or 2.9%, from $7,811,000 to $8,034,000, while interest expense
decreased $789,000, or 27.2%, from
$2,902,000 to $2,113,000.
Interest spread, the difference between the rate earned on
interest-earning assets and the rate paid on interest-bearing
liabilities, was 4.11% in fiscal 2010 and 3.38% in fiscal 2009.
Non-interest income increased $59,000 from $865,000 in fiscal year 2009 to $924,000 in fiscal 2010. Increases in the
value of the underlying investments in the deferred directors fees
plan resulted in the gain.
Although non-performing loans increased in fiscal 2010, the
quality of our loan portfolio has remained strong. Net loans
grew $0.3 million in fiscal 2010 as
compared to growth of $3.6 million in
fiscal 2009. We made a $205,000
provision for loan losses in fiscal 2010 and a $60,000 provision in the 2009 fiscal year.
Non-performing loans were $1,140,000
at September 30, 2010, compared to
$750,000 at September 30, 2009. Net charge-offs were
$153,000 for the year ended
September 30, 2010. The
allowance for loan losses was $849,000, or 0.74% of total loans outstanding at
September 30, 2010 as compared to
$797,000, or 0.70% at September 30, 2009.
The components of non-interest expense are presented in the
following table:
|
For the year
ended
|
|
|
September
30,
|
|
|
2010
|
|
2009
|
|
|
(In
thousands)
|
|
|
|
|
Salaries and employee
benefits
|
$ 2,213
|
|
$ 1,969
|
|
Directors' fees
|
166
|
|
168
|
|
Building, occupancy and
equipment
|
510
|
|
515
|
|
Advertising
|
69
|
|
68
|
|
Other operating
expense
|
1,190
|
|
1, 046
|
|
Non interest
expense
|
$ 4,148
|
|
$ 3,766
|
|
|
|
|
|
|
|
Salaries and employee benefits expense increased by $244,000 in fiscal 2010 mainly due to performance
increases to employees, increased pension and retirement benefit
expense and an increase in other employee benefit costs of
$150,000, $75,000 and $60,000, respectively. The increase in
other operating expense resulted mostly from an increase in the
values of the underlying investments in the deferred directors fees
plan and increased loss on real estate owned of $54,000 and $46,000
respectively.
Deposits increased $0.5 million,
or 0.47%, to $91.9 million at
September 30, 2010 from $91.4 million at September
30, 2009 including a decrease of $0.3
million in brokered deposits from $1.3 million last year to $1.0 million this year. Securities sold
under agreements to repurchase with the Federal Home Loan Bank of
New York ("FHLB") were
$3.0 million and $5.0 million at September
30, 2010 and 2009, respectively. Advances from the FHLB
increased $3.0 million from
$22.0 million to $25.0 million over
the same period as the Company implemented its 2010 Business Plan
to purchase $5.0 million in
investments funded by low-cost FHLB borrowings.
Shareholders' equity was $23.0
million at September 30, 2010,
representing an increase of 5.1% over the September 30, 2009 balance of $21.9 million. The Company's book value was
$10.22 per common share based on
2,246,946 shares issued and outstanding at September 30, 2010 versus $9.60 on 2,277,199 shares issued and outstanding
on September 30, 2009. The
Company paid cash dividends totaling $0.34 per share to all public holders of our
stock, while Cambray Mutual Holding Company, our majority
shareholder, waived its right to receive dividends during the
fiscal year ending September 30,
2010.
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.
SOURCE Gouverneur Bancorp, Inc.