GOUVERNEUR, N.Y., Jan. 27, 2011 /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 2011 ended December 31, 2010.
For the three months ended December 31, 2010 the Company reported net income of $525,000, or $0.23 per diluted share, representing an increase of $133,000, or 33.9%, over last year's net income of $392,000, or $0.17 per diluted share. The annualized return on average assets and the return on average equity increased to 1.41% and 9.05% for the three months ended December 31, 2010 from 1.08% and 7.13%, respectively, for the three months ended December 31, 2009.
Total assets increased by $0.4 million, or 0.3% from $147.0 million to $147.4 million during the first three months of fiscal 2011, with net loans increasing $1.1 million, or 0.9%, to reach $115.5 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, "Short-term interest rates remain at historic lows by the Federal Reserve. Rates on the loan portfolio have not adjusted downward as quickly as expected, allowing the overall margin to remain strong. Competitive interest rates on CDs and borrowings serve to reduce our cost of funds as the Bank continues to take advantage of the lower rates. We continue to monitor the rate environment and regulatory changes as they will have a direct effect on the banks earnings."
Net interest income increased by $136,000, or 9.7%, from $1,405,000 for the quarter ended December 31, 2009 to $1,541,000 for the quarter ended December 31, 2010. Interest income increased $12,000, or 0.6%, while interest expense decreased $124,000, or 21.1% over the same period. Non-interest income increased $66,000, or 26.7% to $313,000 for the quarter ended December 31, 2010 compared to $247,000 for the quarter ended December 31, 2009. A 136.0% increase in the market value of the underlying plan assets in the deferred directors' fees plan and a 5.9% gain on sale of investments were the primary factors in the fiscal 2011 quarter increase.
Non-interest expense decreased by $29,000 from the first quarter of fiscal 2010 to the first quarter of fiscal 2011. FDIC assessment fees and losses on the sale of owned real estate decreased $27,000 and $29,000 respectively, while professional fees and directors fees increased $16,000 and $26,000 respectively.
Non-accrual loans were $1,843,000 at December 31, 2010 compared to $1,140,000 at September 30, 2010. There was a $45,000 loan loss provision and net charge-offs were $18,000 for the quarter ended December 31, 2010. The allowance for loan losses was $876,000 or 0.76% of total gross loans outstanding at December 31, 2010 as compared to $849,000 or 0.74% at September 30, 2010.
Deposits decreased $1.7 million, or 1.8%, to $90.2 million at December 31, 2010 from $91.9 million at September 30, 2010. Foreclosed real estate decreased from $520,000 at September 30, 2010 to $384,000 at December 31, 2010.
Shareholders' equity was $23.01 million at December 31, 2010, an increase of 0.2% over the September 30, 2010 balance of $22.96 million. The book value of Gouverneur Bancorp, Inc. was $10.25 per common share based on 2,244,492 shares outstanding at December 31, 2010.
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.