GOUVERNEUR, N.Y., Feb. 12 /PRNewswire-FirstCall/ -- Gouverneur Bancorp, Inc. (OTC Bulletin Board: GOVB) (the "Company") the parent holding company for Gouverneur Savings and Loan Association (the "Bank"), today announced the results for the first quarter of fiscal year 2010 ended December 31, 2009.
For the three months ended December 31, 2009 the Company reported net income of $392,000, or $0.17 per diluted share, representing an increase of $41,000, or 11.7%, over last year's net income of $351,000, or $0.15 per diluted share. The annualized return on average assets and the return on average equity increased to 1.08% and 7.15% for the three months ended December 31, 2009 from 1.01% and 6.67%, respectively, for the three months ended December 31, 2008.
Total assets increased by $5.6 million, or 4.0% from $139.3 million to $144.9 million during the first three months of fiscal 2010, with net loans increasing $1.0 million, or .8%, to reach $115.3 million over the same period.
Commenting on the quarter's results, Mr. Richard F. Bennett, the Company's President and Chief Executive Officer, said, "Short-term interest rates have been cut to historic lows by the Federal Reserve. This has lowered our cost of funds as borrowing rates and CD rates have adjusted downward more quickly than have our loan rates. However, with the Federal government imposing higher assessments and fees in order to offset the losses incurred from other bank closings it is unclear what impact this will have on banks such as ours. For that reason, the results of the first quarter are probably not typical of what we can expect for the entire year."
Net interest income increased by $236,000, or 20.2%, from $1,169,000 for the quarter ended December 31, 2008 to $1,405,000 for the quarter ended December 31, 2009. Interest income increased $28,000, or 1.4%, while interest expense decreased $208,000, or 26.2% over the same period. Non-interest income increased $107,000, or 76.4% to $247,000 for the quarter ended December 31, 2009 compared to $140,000 for the quarter ended December 31, 2008. A 119.6% increase in the market value of the underlying plan assets in the deferred directors' fees plan was the primary factor in the fiscal 2010 quarter increase.
Non-interest expense increased by $260,000 from the first quarter of fiscal 2009 to the first quarter of fiscal 2010 as a $110,000 increase in the market value of the underlying plan assets in the deferred directors' fees plan and a $50,000 FDIC assessment fee led the increases in this quarter's expense increase.
Non-accrual loans were $947,000 at December 31, 2009, compared to $750,000 at September 30, 2009. There was a $30,000 loan loss provision and net charge-offs were $17,000 for the quarter ended December 31, 2009. The allowance for loan losses was $810,000, or 0.71% of total gross loans outstanding at December 31, 2009 as compared to $797,000, or 0.70% at September 30, 2009.
Deposits increased $0.6 million, or 0.8%, to $92.0 million at December 31, 2009 from $91.4 million at September 30, 2009. Foreclosed real estate decreased from $641,000 at September 30, 2009 to $592,000 at December 31, 2009.
Shareholders' equity was $21.9 million at December 31, 2009, an increase of 0.3% over the September 30, 2009 balance of $21.8 million. The book value of Gouverneur Bancorp, Inc. was $9.71 per common share based on 2,257,898 shares outstanding at December 31, 2009.
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.