GOUVERNEUR, N. Y., Jan. 30, 2012 /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 2012 ended December 31, 2011.
For the three months ended December 31, 2011 the Company reported net income of $495,000, or $0.22 per diluted share, representing a decrease of $30,000, or 5.71%, over last year's net income of $595,000, or $0.23 per diluted share. The annualized return on average assets and the return on average equity decreased from 1.41% and 9.05% for the three months ended December 31, 2010 to 1.32% and 8.02%, respectively, for the three months ended December 31, 2011.
Total assets decreased by $1.1 million, or 0.73% from $149.8 million to $148.7 million during the first three months of fiscal 2012, with net loans decreasing $1.1 million, or 0.94%, to $115.2 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, "Recently the Federal Reserve indicated that short term rates are expected to remain low through the year 2014. Due to a sustained weak loan demand as consumers elect not to borrow or are unable to qualify to borrow, Bank margins will continue to compress. However, the Bank is performing well as we have been able to maintain, and expect to continue to maintain, margins higher than our peers. The economic and regulatory environment affecting the Bank's earnings will continue to be monitored closely."
Net interest income increased by $58,000, or 3.76%, from $1,541,000 for the quarter ended December 31, 2010 to $1,599,000 for the quarter ended December 31, 2011. Interest income decreased $51,000, or 2.55%, while interest expense decreased $109,000, or 23.55% over the same period. Non-interest income decreased $55,000, or 17.57% to $258,000 for the quarter ended December 31, 2011 compared to $313,000 for the quarter ended December 31, 2010. A 25.0% decrease in the income earned from the underlying plan assets in the deferred directors' fees plan and a 13.60% decrease in services charges were the primary factors in the fiscal 2012 quarter decrease.
Non-interest expense increased $30,000 from the first quarter of fiscal 2011 to the first quarter of fiscal 2012. Earnings expense on the deferred directors plan and NOW charges decreased $10,000 and $11,000 respectively, while salaries and employee benefits and expenses associated with owned real estate increased $38,000 and $25,000 respectively.
Non-accrual loans were $1,656,000 at December 31, 2011 compared to $1,939,000 at September 30, 2011. There was a $65,000 loan loss provision and net charge-offs were $1,000 for the quarter ended December 31, 2011. The allowance for loan losses was $775,000 or 0.67% of total gross loans outstanding at December 31, 2011 as compared to $709,000 or 0.61% at September 30, 2011.
Deposits decreased $1.2 million, or 1.32%, to $90.4 million at December 31, 2011 from $91.6 million at September 30, 2011. Foreclosed real estate increased from $531,000 at September 30, 2011 to $541,000 at December 31, 2011.
Shareholders' equity was $24.8 million at December 31, 2011, an increase of 2.48% over the September 30, 2011 balance of $24.2 million. The book value of Gouverneur Bancorp, Inc. was $11.08 per common share based on 2,240,464 shares outstanding at December 31, 2011.
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.