GOUVERNEUR, N.Y., Aug. 3, 2015 /PRNewswire/ -- Gouverneur Bancorp, Inc. (OTC Pink: GOVB) (the "Company") and its subsidiary, Gouverneur Savings and Loan Association (the "Bank"), today announced the results for the third quarter and nine months ended June 30, 2015.
For the three months ended June 30, 2015, the Company reported net income of $336,000, or $0.15 per diluted share, representing a decrease of $90,000, or 21.13% from last year's net income of $426,000, or $0.19 per diluted share. Net interest income decreased $76,000 for the quarter relative to 2014, ending June 30, 2015 at $1.41 million compared to $1.48 million for the quarter ended June 30, 2014. Net interest margin remained strong at 4.42%, compared to 4.49% for the same period last year.
The annualized return on average assets and average equity for the three months ended June 30, 2015 was 0.96% and 4.76% respectively, compared to 1.19% and 6.37% for the three months ended June 30, 2014.
For the nine months ended June 30, 2015, the Company reported net income of $1,070,000, or $0.48 per diluted share, representing a decrease of $162,000, or 13.15% less than last year's net income of $1,232,000, or $0.55 per diluted share. The annualized return on average assets and average equity for the nine months ended June 30, 2015 was 1.01% and 5.09% respectively, compared to 1.15% and 6.27% for the same period last year.
Since September 30, 2014, total assets decreased $4.21 million, or 2.9%, from $145.17 million to $140.96 million at June 30, 2015, mainly as a result of a decrease in net loans of $4.23 million, or 3.83%, from $110.31 million to $106.08 million over the same period. Average equity to average total assets increased since September 30, 2014, from 18.33% to the current 19.92% at June 30, 2015.
Deposits decreased $941,000 or 1.11%, from $85.10 million at September 30, 2014 to $84.16 million at June 30, 2015. Advances from the Federal Home Loan Bank of New York decreased from $27.30 million to $22.50 million over the same period.
The cost of deposits and borrowed funds decreased as balances decreased and rates remained low. Net interest income decreased $203,000 for the first nine months of 2015 relative to the same period of 2014, ending June 30, 2015 at $4.24 million compared to $4.44 million in 2014. Net interest margin remained strong at 4.35%, compared to 4.49% for the nine month period last year. Net interest income after the provision for loan losses decreased $202,000, or 4.61%, during the first nine months of the 2015 fiscal year as compared to the first nine months of the 2014.
Non-performing assets to total assets increased from 2.65% at September 30, 2014 to 3.37% at June 30, 2015. Accordingly, the provision for loan loss increased $20,000 over the current period.
Shareholders' equity was $28.38 million at June 30, 2015, an increase of 2.85% over the September 30, 2014 balance of $27.59 million. The book value of Gouverneur Bancorp, Inc. was $12.76 per common share based on 2,223,931 shares outstanding at June 30, 2015. The company paid a semi-annual cash dividend of $0.17 per share to public shareholders on March 31, 2015.
Commenting on the year's results, Mr. Charles C. Van Vleet, the Company's President and Chief Executive Officer, stated, "The anticipated decline in net interest margin from the third quarter of 2014 was held to just seven basis points, with margins remaining strong at 4.42% as compared to our peers. The Bank continues to perform in the top five percent of its peer group. Lending remained slow as the Bank held the line on reducing rates and underwriting standards. Foreclosures have increased as we deal with a continuing economic slowdown and increased regulation and laws pertaining to the foreclosure process. The investment portfolio is performing very well with an average tax equivalent yield of 5.02%."
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.
SOURCE Gouverneur Bancorp, Inc.