Gouverneur Bancorp Announces Fiscal 2009 First Quarter Results
January 30 2009 - 8:06AM
PR Newswire (US)
GOUVERNEUR, N.Y., Jan. 30 /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 2009 ended December 31, 2008. For the three months
ended December 31, 2008 the Company reported net income of
$351,000, or $0.15 per diluted share, representing an increase of
$112,000, or 46.9%, over last year's net income of $239,000, or
$0.10 per diluted share. The annualized return on average assets
and the return on average equity increased to 1.00% and 6.72% for
the three months ended December 31, 2008 from 0.72% and 4.64%,
respectively, for the three months ended December 31, 2007. Total
assets increased by $2.6 million, or 1.9% from $136.7 million to
$139.3 million during the first three months of fiscal 2009, with
net loans increasing $3.0 million, or 2.7%, to reach $113.5 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
trying to force mortgage rates lower in order to stimulate the
housing market, it is unclear what impact this will have on banks,
such as ours, which hold mortgages to term. We will probably not be
able to offer rates at the levels being discussed which are lower
than any long range funding options available to us. For that
reason, the results of the first quarter are probably not typical
of what we can expect for the entire year. Although interest rate
spread has improved, it will continue to be pressured by falling
loan rates and a possible decline in loan balances if we are unable
to compete with market rates." Net interest income increased by
$129,000, or 12.4%, from $1,040,000 for the quarter ended December
31, 2007 to $1,169,000 for the quarter ended December 31, 2008.
Interest income decreased $49,000, or 2.4%, while interest expense
decreased $178,000, or 18.3% over the same period. Non-interest
income decreased $19,000, or 11.9% to $140,000 for the quarter
ended December 31, 2008 compared to $159,000 for the quarter ended
December 31, 2007. A decrease in the market value of the underlying
plan assets in the deferred directors' fees plan in this year's
quarter reduced non-interest income by $64,000, but was partially
offset by a $26,000 increase in service charges and a $19,000
increase in other non-interest income. Non-interest expense
decreased by $61,000 from the first quarter of fiscal 2008 to the
first quarter of fiscal 2009 as a decrease in the market value of
the underlying plan assets in the deferred directors' fees plan in
this year's quarter reduced non-interest expense by $64,000.
Non-accrual loans were $753,000 at December 31, 2008, compared to
$1,108,000 at September 30, 2008. There was no loan loss provision
and net charge-offs were $12,000 for the quarter ended December 31,
2008. The allowance for loan losses was $849,000, or 0.75% of total
gross loans outstanding at December 31, 2008 as compared to
$861,000, or 0.78% at September 30, 2008. Deposits decreased $0.1
million, or 0.1%, to $85.2 million at December 31, 2008 from $85.3
million at September 30, 2008. Advances from the Federal Home Loan
Bank of New York ("FHLB") increased from $27.8 million at September
30, 2008 to $29.5 million at December 31, 2008. Shareholders'
equity was $21.2 million at December 31, 2008, an increase of 2.4%
over the September 30, 2007 balance of $20.7 million. The book
value of Gouverneur Bancorp, Inc. was $9.26 per common share based
on 2,288,994 shares outstanding at December 31, 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. For more information,
contact Robert J. Twyman, Vice President and Chief Financial
Officer at (315) 287-2600. DATASOURCE: Gouverneur Bancorp, Inc.
CONTACT: Robert J. Twyman, Vice President and Chief Financial
Officer, +1-315-287-2600 Web Site: http://www.gouverneurbank.com/
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