Gouverneur Bancorp Announces Fiscal 2013 First Quarter Results

GOUVERNEUR, N.Y., Jan. 18, 2013 /PRNewswire/ -- Gouverneur Bancorp, Inc. (OTC Bulletin Board: GOVB) (the "Company") holding company for Gouverneur Savings and Loan Association (the "Bank"), today announced the results for the first quarter of fiscal year 2013 ended December 31, 2012.

For the three months ended December 31, 2012 the Company reported net income of $500,000, or $0.22 per diluted share, representing an increase of $5,000, or 1.01%, over last year's net income of $495,000, or $0.22 per diluted share.  The annualized return on average assets increased from 1.32% to 1.36% and the return on average equity decreased from 8.02% to 7.68% for the three months ended December 31, 2012 and 2011, respectively.

Total assets increased by $2.15 million, or 1.47% from $146.45 million to $148.60 million during the first three months of fiscal 2013, with net loans increasing $2.31 million, or 2.04%, to $115.68 million over the same period.

Commenting on the quarter's results, Mr. Charles C. Van Vleet, the Company's President and Chief Executive Officer, said, "The Bank is performing well as we have been able to maintain, and expect to continue to maintain, margins higher than our peers. The Federal Reserve indicated that short term rates are expected to remain low through the year 2014.  Bank margins will continue to compress as rates remain low and the portfolio shifts to lower yielding assets.  The economic and regulatory environment affecting the Bank's earnings will continue to be monitored closely."

Net interest income decreased by $31,000, or 1.94%, from $1,599,000 for the quarter ended December 31, 2011 to $1,568,000 for the quarter ended December 31, 2012.  Interest income decreased $114,000, or 5.84%, while interest expense decreased $83,000, or 23.45% over the same period.  Non-interest income increased $98,000, or 37.98% to $356,000 for the quarter ended December 31, 2012 compared to $258,000 for the quarter ended December 31, 2011.  A 45.45% decrease in the income earned from the underlying plan assets in the deferred directors' fees plan and a 460.87% increase in the net gain on the sale of securities were the primary factors in the fiscal 2013 quarter net increase.

Non-interest expense increased $107,000 from the first quarter of fiscal 2012 to the first quarter of fiscal 2013.  Earnings expense on the deferred director's plan and other operating expenses decreased $15,000 and $14,000 respectively, while salaries and employee benefits and expenses associated with owned real estate increased $33,000 and $77,000 respectively.

Non-accrual loans were $1,880,000 at December 31, 2012 compared to $1,723,000 at September 30, 2012.  There was a $30,000 loan loss provision and net charge-offs were $4,000 for the quarter ended December 31, 2012.  The allowance for loan losses was $969,000 or 0.84% of total gross loans outstanding at December 31, 2012 as compared to $943,000 or 0.83% at September 30, 2012.

Deposits decreased $976,000, or 1.08%, to $89.6 million at December 31, 2012 from $90.6 million at September 30, 2012.  Foreclosed real estate decreased from $158,000 at September 30, 2012 to $95,000 at December 31, 2012.

Shareholders' equity was $25.9 million at December 31, 2012, an increase of 1.27% over the September 30, 2012 balance of $25.6 million.  The book value of Gouverneur Bancorp, Inc. was $11.61 per common share based on 2,234,148 shares outstanding at December 31, 2012.

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.

Copyright 2013 PR Newswire

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