GOUVERNEUR, N.Y., Jan. 30, 2015 /PRNewswire/ -- Gouverneur Bancorp, Inc. (OTCPink: GOVB) (the "Company") holding company for Gouverneur Savings and Loan Association (the "Bank"), today announced the results for the first quarter of fiscal year 2015 ended December 31, 2014.

For the three months ended December 31, 2014 the Company reported net income of $410,000, or $0.18 per diluted share, representing a decrease of $6,000, or 1.44%, below last year's net income of $416,000, or $0.19 per diluted share.  The annualized return on average assets decreased from 1.16% to 1.14% and the return on average equity decreased from 6.40% to 5.84% for the three months ended December 31, 2014 and 2013, respectively.

Total assets decreased by $2.98 million, or 2.05% from $145.17 million at September 30, 2014 to $142.19 million at December 31, 2014.  Net loans decreased $0.84 million, or 0.76%, to $109.47 million over the same period and sales of securities available for sale during that time decreased the total by $1.77 million, or 9.26%, to $17.30 million.

Commenting on the quarter's results, Mr. Charles C. Van Vleet, the Company's President and Chief Executive Officer, said, "Margins continue to compress as yields on earning assets continue to shift lower.  We anticipate that the Federal Reserve will start raising rates by the end of the second calendar quarter.  This will put additional pressure on margins and profits.  We continue to have a strong capital position, allowing the Bank to perform at the top of its peer group."

Net interest income decreased $52,000, or 3.53%, from $1,475,000 for the quarter ended December 31, 2013 to $1,423,000 for the quarter ended December 31, 2014.  Interest income decreased $86,000, or 5.11%, while interest expense decreased $34,000, or 16.35% over the same period.  Non-interest income increased $56,000, or 21.96% to $311,000 for the quarter ended December 31, 2014 compared to $255,000 for the quarter ended December 31, 2013.  A $94,000 gain on a sale of securities and a $36,000 decrease in earnings on the deferred fees plan were the primary factors in the fiscal 2015 first quarter net increase.

Non-interest expense increased $14,000 from the first quarter of fiscal 2014 to the first quarter of fiscal 2015. Earnings expense on the deferred fee's plan decreased $36,000 while expenses associated with owned real estate increased $46,000 for the period.

Non-performing loans were $4,084,000 at December 31, 2014 compared to $3,528,000 at September 30, 2014.  There was a $20,000 loan loss provision for the quarter ended December 31, 2014.  The allowance for loan losses was $852,000 or 0.78% of total gross loans outstanding at December 31, 2014 as compared to $1,020,000 or 0.92% at September 30, 2014.  Foreclosed real estate was $572,000 and $319,000 at December 31, 2014 and September 30, 2014, respectively.

Deposits decreased $2.6 million or 3.11%, to $82.5 million at December 31, 2014 from $85.1 million at September 30, 2014 Advances from the Federal Home Loan Bank of New York ("FHLB") decreased 6.4%, from $27.3 million at September 30, 2014 to $25.6 million at December 31, 2014. The Bank was able to reduce the borrowings through the December sale of $2 million in Treasury bonds.

Shareholders' equity was $28.2 million at December 31, 2014, an increase of 2.06% over the September 30, 2014 balance of $27.6 million.  The book value of Gouverneur Bancorp, Inc. was $12.66 per common share based on 2,223,931 shares outstanding at December 31, 2014.

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.

 

 

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SOURCE Gouverneur Bancorp, Inc.

Copyright 2015 PR Newswire

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