GOUVERNEUR, N.Y., July 28, 2016 /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, 2016.
For the three months ended June 30, 2016, the Company reported net income of $313,000, or $0.14 per diluted share, representing a decrease of $23,000, or 6.85% from last year's net income of $336,000, or $0.15 per diluted share. Net interest income decreased $39,000 for the quarter relative to 2015, ending June 30, 2016 at $1.37 million compared to $1.41 million for the quarter ended June 30, 2015. Net interest margin remained strong at 4.38%, compared to 4.42% for the same period last year.
The annualized return on average assets and average equity for the three months ended June 30, 2016 was 0.91% and 4.26% respectively, compared to 0.96% and 4.76% for the three months ended June 30, 2015.
For the nine months ended June 30, 2016, the Company reported net income of $819,000, or $0.37 per diluted share, representing a decrease of $251,000, or 23.46% less than last year's net income of $1,070,000, or $0.48 per diluted share. The annualized return on average assets and average equity for the nine months ended June 30, 2016 was 0.79% and 3.75% respectively, compared to 1.01% and 5.09% for the same period last year.
Since September 30, 2015, total assets increased $1.78 million, or 1.27%, from $139.66 million to $141.43 million at June 30, 2016, mainly as a result of an increase in bank owned life insurance of $1.10 million, or 22.58%, from $4.86 million to $5.96 million over the same period. Average equity to average total assets increased since September 30, 2015, from 20.10% to the current 21.00% at June 30, 2016.
Deposits decreased $1,839,000 or 2.20%, from $83.72 million at September 30, 2015 to $81.88 million at June 30, 2016. Advances from the Federal Home Loan Bank of New York increased from $22.00 million to $23.25 million over the same period.
Net interest income decreased $145,000 for the first nine months of 2016 relative to the same period of 2015, ending June 30, 2016 at $4.10 million compared to $4.24 million in 2015. Net interest margin remained strong at 4.32%, compared to 4.35% for the nine month period last year. Net interest income after the provision for loan losses decreased $305,000, or 7.34%, during the first nine months of the 2016 fiscal year as compared to the first nine months of the 2015.
Non-performing assets to total assets decreased from 3.05% at September 30, 2015 to 2.51% at June 30, 2016. Accordingly, the allowance for loan loss decreased $27,000 over the current period.
Shareholders' equity was $29.89 million at June 30, 2016, an increase of 4.32% over the September 30, 2015 balance of $28.65 million. The book value of Gouverneur Bancorp, Inc. was $13.45 per common share based on 2,222,749 shares outstanding at June 30, 2016. The company paid a semi-annual cash dividend of $0.17 per share to public shareholders on March 31, 2016.
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 2015 was held to just six basis points, with margins remaining strong at 4.38% as compared to our peers. Lending remained slow as the Bank held the line on reducing rates and underwriting standards. The Bank has put into place a secondary mortgage product that will allow it to compete with the lower interest rates offered in the market place. This will allow for a larger lending area for residential mortgages for Gouverneur Savings & Loan. We have seen some increase in expenses as we upgrade our IT products and services. The investment portfolio is performing very well with an average yield of 5.22%; the Bank continues to perform at the top of the range of its peer group."
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 state 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.