Gouverneur Bancorp Announces Fiscal 2009 Results
November 18 2009 - 8:26AM
PR Newswire (US)
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,
2009. Net income for the fiscal year ended September 30, 2009
increased 24.0% to $1,291,000, or $0.56 per diluted share, compared
to $1,041,000, or $0.45 per diluted share, in fiscal 2008. The
return on average assets and average equity increased to 0.93% and
6.04%, respectively, for the year ended September 30, 2009 from
0.78% and 5.03%, respectively, for the year ended September 30,
2008. Total assets grew by $7.0 million, or 5.1%, from $136.7
million at September 30, 2008 to $143.7 million at September 30,
2009, while net loans increased $3.6 million, or 3.3%, from $110.5
million to $114.1 million over the same period. Commenting on the
results for the year, Mr. Bennett said, "We are pleased with our
results for the 2009 fiscal year in light of the meltdown of the
financial system caused by the banks deemed "Too Big to Fail". We
did not make the risky loans that burst the housing bubble nor have
we purchased the investment products containing those risky loans.
We have continued to operate as a community bank by serving the
needs of our local customers. The local economy has been affected
by the general downturn in the national economy, but not to the
extent of other geographic areas. Gouverneur Savings and Loan
remains well-capitalized with a core capital ratio of 15.0%, the
same as last year, and strong asset composition with non-performing
assets representing only 0.99% of total assets, slightly higher
than last years 0.86%. The Federal government has worked to reduce
mortgage rates in hopes of spurring the housing market. However,
mortgage rates are currently below 5% and that has not had the
desired effect. We are unable to hold mortgages to term at those
levels, so we have not moved our rates down to match. Thus far, we
haven't seen any shrinkage in our loan portfolio, but that may
happen if competing rates continue to stay so low." In fiscal 2009,
interest income decreased $38,000, or 0.5%, from $7,849,000 to
$7,811,000, while interest expense decreased $688,000, or 19.2%,
from $3,590,000 to $2,902,000. Interest spread, the difference
between the rate earned on interest-earning assets and the rate
paid on interest-bearing liabilities, was 3.38% in fiscal 2009 and
2.96% in fiscal 2008. Non-interest income increased $186,000 from
$679,000 in fiscal year 2008 to $865,000 in fiscal 2009. Increases
in the values of the underlying investments in the deferred
directors fees plan, service charges and ATM fees by $125,000,
$57,000 and $12,000, respectively, resulted in the gain. Net loans
grew $3.6 million in fiscal 2009 as compared to growth of $4.4
million in fiscal 2008. The quality of our loan portfolio has
remained strong. We made a $60,000 provision for loan losses in
fiscal 2009 after making no provision in the 2008 fiscal year.
Non-performing loans were $750,000 at September 30, 2009, compared
to $1,108,000 at September 30, 2008. Net charge-offs were $124,000
for the year ended September 30, 2009. The allowance for loan
losses was $797,000, or 0.70% of total loans outstanding at
September 30, 2009 as compared to $861,000, or 0.78% at September
30, 2008. The components of non-interest expense are presented in
the following table: For the year ended September 30, 2009 2008
---- ---- (In thousands) Salaries and employee benefits $1,969
$1,845 Directors' fees 168 168 Building, occupancy and equipment
515 482 Advertising 68 62 Other operating expense 1,046 894 -----
--- Non interest expense $3,766 $3,451 ====== ====== Salaries and
employee benefits expense increased by $124,000 in fiscal 2009
mainly due to performance increases to employees, increased pension
and retirement benefit expense and an increase in other employee
benefit costs of $60,000, $34,000 and $23,000, respectively. The
increase in other operating expense resulted mostly from an
increase of $125,000 in the values of the underlying investments in
the deferred directors fees plan. Deposits increased $6.1 million,
or 7.2%, to $91.4 million at September 30, 2009 from $85.3 million
at September 30, 2008 including a decrease of $1.7 million in
brokered deposits from $3.0 million last year to $1.3 million this
year. Securities sold under agreements to repurchase with the
Federal Home Loan Bank of New York ("FHLB") were $5.0 million at
September 30, 2009 and 2008, while advances from the FHLB decreased
$0.8 million from $22.8 million to $22.0 million over the same
period Shareholders' equity was $21.9 million at September 30,
2009, representing an increase of 5.8% over the September 30, 2008
balance of $20.7 million. The Company's book value was $9.60 per
common share based on 2,277,199 shares issued and outstanding at
September 30, 2009 versus $9.02 on 2,299,384 shares issued and
outstanding on September 30, 2008. 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, 2009. 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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