GOUVERNEUR, N.Y., Nov. 29, 2011 /PRNewswire/ -- 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, 2011.
Net income for the fiscal year ended September 30, 2011 increased 12.45% to
$1,870,000, or $0.83 per diluted share, compared to $1,663,000, or $0.74 per diluted share, in fiscal 2010.
The return on average assets and average equity increased to 1.26%
and 7.92%, respectively, for the year ended September 30, 2011 from 1.14% and 7.46%,
respectively, for the year ended September
30, 2010. Total assets grew by $2.9 million, or 1.97%, from $146.9 million at September 30, 2010 to $149.8 million at September 30, 2011, while net loans increased
$1.9 million, or 1.66%, from
$114.4 million to $116.3 million over the same period.
Commenting on the results for the year, Mr. Van Vleet said, "We are pleased with our results
for the 2011 fiscal year. The Bank continues to be
profitable, has sound credit quality, and has shown modest growth
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. Unfortunately, the decision made by General Motors in
mid- 2009 to reduce dealer franchises by 42% resulted in a
substantial 2011 Bank loan write-off of a former GM
dealership. However, the Bank was able to anticipate this
event and increase its allowance for loan losses throughout the
fiscal year to minimize the impact of the write-off. We
continue to evaluate the Bank's position closely as the uncertain
economic outlook continues and the regulatory environment continues
to evolve."
Gouverneur Savings and Loan remains well-capitalized with a core
capital ratio of 16.20%, an increase of 0.60% from 2010. Strong
asset composition with non-performing assets represented 1.65% of
total assets, slightly higher than last year's 1.13%.
In fiscal 2011, interest income decreased $96,000, or 1.19%, from $8,034,000 to $7,938,000, while interest expense
decreased $436,000, or 20.63%, from
$2,113,000 to $1,677,000.
Interest spread, the difference between the rate earned on
interest-earning assets and the rate paid on interest-bearing
liabilities, was 4.36% in fiscal 2011 and 4.11% in fiscal 2010.
Non-interest income decreased $31,000 from $924,000 in fiscal year 2010 to $893,000 in fiscal 2011. Decreases in
service charge income and the value of the underlying investments
in the deferred directors fees plan contributed to the
reduction.
Although non-performing loans increased in fiscal 2011, the
quality of our loan portfolio has remained strong. Net loans
grew $1.7 million in fiscal 2011 as
compared to growth of $0.3 million in
fiscal 2010. We made a $410,000
provision for loan losses in fiscal 2011 and a $205,000 provision in the 2010 fiscal year.
Non-performing loans were $1,939,000
at September 30, 2011, compared to
$1,140,000 at September 30, 2010. Net charge-offs were
$550,000 for the year ended
September 30, 2011. The
allowance for loan losses was $709,000, or 0.61% of total loans outstanding at
September 30, 2011 as compared to
$849,000, or 0.74% at September 30, 2010.
The components of non-interest expense are presented in the
following table:
|
For the
year ended
|
|
September 30,
|
|
2011
|
|
2010
|
|
(In
thousands)
|
Salaries and employee
benefits
|
$ 2,144
|
|
$ 2,213
|
Directors' fees
|
169
|
|
166
|
Building, occupancy and
equipment
|
537
|
|
510
|
Advertising
|
69
|
|
69
|
Other operating expense
|
1,027
|
|
1,190
|
Non interest expense
|
$ 3,946
|
|
$ 4,148
|
Salaries and employee benefits expense fell below the 2010 level
primarily due to the retirement and final salary and benefit
distribution to several key employees in 2010. Equipment
costs increased with the replacement of two ATM machines, one each
in the Gouverneur and Alex Bay
branches, totaling $44,000. The
decrease in other operating expense resulted primarily from a
decrease in the values of the underlying investments in the
deferred directors fees plan and decreased loss on real estate
owned of $65,000 and $23,000 respectively.
Deposits decreased $0.3 million,
or 0.33%, to $91.6 million at
September 30, 2011 from $91.9 million at September
30, 2010. Brokered deposits and securities sold under
agreements to repurchase with the Federal Home Loan Bank of
New York ("FHLB") remain at
$1.0 million and $3.0 million, respectively. Advances from the
FHLB increased $1.7 million from
$25.0 million to $26.7 million over the same period as the Company
utilized low-cost FHLB borrowings to fund the increase in its loan
portfolio.
Shareholders' equity was $24.2
million at September 30, 2011,
representing an increase of 5.6% over the September 30, 2010 balance of $22.9 million. The Company's book value was
$10.82 per common share based on
2,240,464 shares issued and outstanding at September 30, 2011 versus $10.22 on 2,246,946 shares issued and outstanding
on September 30, 2010. 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 partial dividends totaling
$221,000 during the fiscal year
ending September 30, 2011.
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.