Gouverneur Bancorp Announces Fiscal 2015 Results

Nov 20, 2015, 10:15 ET from Gouverneur Bancorp, Inc.

GOUVERNEUR, N.Y., Nov. 20, 2015 /PRNewswire/ -- Charles C. Van Vleet Jr., President and Chief Executive Officer of Gouverneur Bancorp, Inc. (OTC Pink: GOVB) (the "Company") holding company for Gouverneur Savings and Loan Association (the "Bank"), announced today results for its fiscal year ended September 30, 2015.

Net income for the fiscal year ended September 30, 2015 decreased 21.89% to $1.35 million, or $0.61 per diluted share, compared to $1.73 million, or $0.78 per diluted share, in fiscal 2014.  The return on average assets decreased to 0.96% from 1.21% in fiscal 2014 while the return on average equity decreased to 4.78% for the year ended September 30, 2015, from 6.48% for the year ended September 30, 2014.  Total assets decreased by $5.51 million, or 3.80%, from $145.17 million at September 30, 2014 to $139.66 million at September 30, 2015. 

Commenting on the results for the year, Mr. Van Vleet said, "We are pleased with our results for the 2015 fiscal year. Margins remain strong as compared to peer averages although, as expected, margins declined over the past year. We anticipate margins will continue to shrink for the next twelve month period due to the anticipated rise in interest rates, putting pressure on deposit and borrowing costs.  Additional regulatory rules continue to increase costs and reduce fee income.

The Bank remains well-capitalized with a core capital ratio of 20.37%, an increase of 1.92% from 2014. Asset composition includes non-performing assets of 3.05% of total assets, a slight increase from the 2014 figure of 2.65%. 

In fiscal 2015, interest income decreased $339,000, or 5.08%, from $6,667,000 to $6,328,000, while interest expense decreased $53,000, or 6.89%, from $769,000 to $716,000.  Interest spread, the difference between the rate earned on interest-earning assets and the rate paid on interest-bearing liabilities, was 4.21% in fiscal 2015 and 4.30% in fiscal 2014.

Non-interest income decreased $124,000, from $949,000 in fiscal year 2014 to $825,000 in fiscal 2015.  Decreases in the earnings on the deferred fees plan and service charge income contributed to the decrease.

Net loans decreased $5.42 million, or 4.91%, from $110.31 million to $104.89 million over the same period.  The Bank made a $140,000 provision for loan losses in fiscal 2015 and an $80,000 provision in the 2014 fiscal year. Non-performing assets were $4.26 million at September 30, 2015, compared to $3.85 million at September 30, 2014.  Net charge-offs, currently $286,000 increased for the fiscal year ended September 30, 2015 due to current economic market conditions.  The allowance for loan losses was $876,000 or 0.83% of total loans outstanding at September 30, 2015 as compared to $1,020,000 or 0.92% at September 30, 2014.

The components of non-interest expense are presented in the following table:

For the year ended

September 30,



(In thousands)

Salaries and employee benefits

$ 2,570

$ 2,501

Directors' fees



Data processing



Building, occupancy and equipment



Other operating expense



     Non interest expense

$ 4,472

$ 4,365


Salary and employee benefits expense increased from the 2014 level due to annual salary adjustments and health insurance cost increases.  The increase in director's fees was due to the addition of a new board member, and the increase in other operating expense included a rise in foreclosed asset expense.

Deposits decreased $1.4 million, or 1.6%, to $83.7 million at September 30, 2015 from $85.1 million at September 30, 2014. The Bank currently holds no brokered deposits. Advances from the FHLB decreased $5.3 million from $27.3 million to $22.0 million over the same period as the need for the Company to utilize low-cost FHLB borrowings to fund its loan portfolio decreased while the Bank strategically limited loan portfolio growth.

Shareholders' equity was $28.65 million at September 30, 2015, representing an increase of 3.84% over the September 30, 2014 balance of $27.59 million.  The Company's book value was $12.88 per common share based on 2,223,931 shares issued and outstanding at September 30, 2015 versus $12.41 on comparable shares issued and outstanding on September 30, 2014.  The Company paid cash dividends totaling $0.34 per share to all public holders of our stock, during the fiscal year ending September 30, 2015.   Cambray Mutual Holding Company, our majority shareholder, waived its right to payment of dividends through a November 2014 vote by its shareholders." 

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 New York 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. 


SOURCE Gouverneur Bancorp, Inc.