GOUVERNEUR, N.Y., Nov. 18 /PRNewswire-FirstCall/ -- Richard F.
Bennett, President and Chief Executive Officer of Gouverneur
Bancorp, Inc. (OTC Bulletin Board: GOVB) (the "Company") and its
subsidiary, Gouverneur Savings and Loan Association (the "Bank"),
announced today results for its fiscal year ended September 30,
2008. Net income for the fiscal year ended September 30, 2008
increased 10.5% to $1,041,000, or $0.45 per diluted share, compared
to $942,000, or $0.41 per diluted share, in fiscal 2007. The return
on average assets and average equity increased to 0.78% and 5.03%,
respectively, for the year ended September 30, 2008 from 0.71% and
4.65%, respectively, for the year ended September 30, 2007. Total
assets grew by $4.1 million, or 3.1%, from $132.6 million at
September 30, 2007 to $136.7 million at September 30, 2008, while
net loans increased $4.4 million, or 4.1%, from $106.1 million to
$110.5 million over the same period. Commenting on the results for
the year, Mr. Bennett said, "We are pleased with the results of the
2008 fiscal year for a couple of reasons; first, for the first time
in six years, we didn't recognize any gains on sale of investment,
but still saw improved results over 2007 when we did recognize
$96,000 in gains on sale of investments; and second, with all the
negative news regarding banks, bad loans and the housing crisis,
Gouverneur Savings and Loan remains well-capitalized with a core
capital ratio of 15.0% and strong asset composition with
non-performing assets representing only 0.86% of total assets. The
latter ratio compares favorably to the June 30, 2008 thrift
industry average and the average for all savings institutions of
2.31% and 1.22% respectively. Net interest income was $51,000 more
than last year because the decrease in interest expense on deposits
and borrowings was more than the decrease in interest income on
loans and investments. Margins are still narrowing, but it appears
that we may be near the bottom. Recent moves by the Federal Reserve
to lower short-term rates should improve margins going forward." In
fiscal 2008, interest income decreased $231,000, or 2.9%, from
$8,080,000 to $7,849,000, while interest expense decreased
$282,000, or 7.3%, from $3,872,000 to $3,590,000. Interest spread,
the difference between the rate earned on interest-earning assets
and the rate paid on interest-bearing liabilities, was 2.96% in
fiscal 2008 and 2.97% in fiscal 2007. Non-interest income decreased
$67,000 from $746,000 in fiscal year 2007 to $679,000 in fiscal
2008. Increases in service charges, ATM fees and income on
investment in life insurance by $183,000, $17,000 and $11,000
respectively helped to reduce the effect of a decrease of $175,000
in the values of the underlying investments in the deferred
directors fees plan and a decrease of $97,000 in gain on sale of
securities held for sale. Net loans grew $4.4 million in fiscal
2008 as compared to growth of $0.5 million in fiscal 2007. However,
since we sold $2.1 million in loans held for sale at September 30,
2007, loans, including loans held for sale, increased $2.3 million
since we currently have no loans held for sale. The quality of our
loan portfolio has remained strong and we made no provision for
loan losses in fiscal 2008 after a $15,000 provision in the 2007
fiscal year. Non-performing loans were $1,108,000 at September 30,
2008, compared to $674,000 at September 30, 2007. Net charge-offs
were $71,000 for the year ended September 30, 2008. The allowance
for loan losses was $861,000, or 0.78% of total loans outstanding
at September 30, 2008 as compared to $911,000, or 0.86% at
September 30, 2007. The components of non-interest expense are
presented in the following table: For the year ended September 30,
2008 2007 (In thousands) Salaries and employee benefits $1,845
$1,795 Directors' fees 46 205 Building, occupancy and equipment 482
499 Advertising 62 66 Other operating expense 1,016 913 ----- ---
Non interest expense $3,451 $3,478 Salaries and employee benefits
expense increased by $50,000 in fiscal 2008 mainly due to
performance increases to employees. The decrease in directors' fees
resulted from a decrease of $175,000 in the values of the
underlying investments in the deferred directors fees plan.
Deposits increased $9.1 million, or 11.9%, to $85.3 million at
September 30, 2008 from $76.2 million at September 30, 2007
including a decrease of $0.3 million in brokered deposits from $4.0
million last year to $3.7 million this year. Securities sold under
agreements to repurchase with the Federal Home Loan Bank of New
York ("FHLB") were $5.0 million and $6.0 million, respectively, at
September 30, 2008 and 2007, while advances from the FHLB decreased
from $27.2 million to $22.8 million, an overall decrease of $5.4
million in FHLB borrowings, or 16.3%, over the same period
Shareholders' equity was $20.7 million at September 30, 2008,
representing an increase of 1.5% over the September 30, 2007
balance of $20.4 million. The Company's book value was $9.02 per
common share based on 2,299,384 shares issued and outstanding at
September 30, 2008 versus $8.88 on 2,300,059 shares issued and
outstanding on September 30, 2007. The Company paid cash dividends
totaling $0.32 per share to all public holders of our stock, while
Cambray Mutual Holding Company, our majority shareholder, waived
its right to receive one dividend, but did receive a $0.16 per
share dividend during the fiscal year ending September 30, 2008.
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: Robert J. Twyman, Vice President and Chief
Financial Officer, +1-315-287-2600
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