Gouverneur Bancorp Announces Fiscal 2017 Results

GOUVERNEUR, N.Y., Nov. 17, 2017 (GLOBE NEWSWIRE) -- Charles C. Van Vleet Jr., President and Chief Executive Officer of Gouverneur Bancorp, Inc. GOVB (the "Company") holding company for Gouverneur Savings and Loan Association (the "Bank"), announced today results for its fiscal year ended September 30, 2017.

Net income for the fiscal year ended September 30, 2017 increased 18.71% to $1.33 million, or $0.60 per diluted share, compared to $1.12 million, or $0.50 per diluted share, in fiscal 2016.  The return on average assets increased to 0.98% from 0.80% in fiscal 2016, while the return on average equity increased to 4.46% for the year ended September 30, 2017, from 3.80% for the year ended September 30, 2016.  Total assets decreased by $5.14 million, or 3.64%, from $141.40 million at September 30, 2016 to $136.26 million at September 30, 2017. 

Commenting on the results for the year, Mr. Van Vleet said, "We are pleased with our results for the 2017 fiscal year as Gouverneur Savings & Loan continued to perform well among its peer group.   The Bank has maintained its record of strong earnings while expenses continued to be well managed.

"We continue to invest in the Bank's future with improvements in the IT area and employee training," added Mr. Van Vleet.  "The opening of the loan production office and introduction of a secondary market mortgage product has moved forward as planned.  We have improved the Bank's website and banking platforms for enhanced customer convenience.  Additional new customer products are also being explored."  

The Bank remains well-capitalized with a core capital ratio of 21.22%, an increase of 0.86% from 2016. Asset composition includes non-performing assets of 1.80% of total assets, a decrease from the 2016 figure of 2.39%. 

In fiscal 2017, interest income decreased $142,000, or 2.31%, from $6,152,000 to $6,010,000, while interest expense decreased $92,000, or 13.71%, from $671,000 to $579,000.  Interest spread, the difference between the rate earned on interest-earning assets and the rate paid on interest-bearing liabilities, was 4.30% in fiscal 2017 and 4.19% in fiscal 2016.

Non-interest income increased $132,000, from $1,002,000 in fiscal year 2016 to $1,134,000 in fiscal 2017. An increase in unrealized gains on swap agreements contributed to the increase.

Net loans decreased $3.51 million, or 3.40%, from $103.16 million to $99.65 million over the same period. The Bank made a $120,000 provision for loan losses in fiscal 2017 a decrease from the $275,000 provision made in the 2016 fiscal year. Non-performing assets were $2.42 million at September 30, 2017, compared to $3.33 million at September 30, 2016.  Net charge-offs, currently $112,000 decreased for the fiscal year ended September 30, 2017. The allowance for loan losses was $886,000 or 0.89% of total loans outstanding at September 30, 2017 as compared to $878,000 or 0.85% at September 30, 2016.

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

Salary and employee benefits expense increased modestly from the 2016 level due to staffing transitions, salary adjustments and health insurance cost increases.  The increase in building, occupancy and equipment was due in part to the addition of the lending office in Lowville.

Deposits decreased $177,000, or 0.21%, to $83.68 million at September 30, 2017 from $83.85 million at September 30, 2016. The Bank currently holds no brokered deposits. Advances from the FHLB decreased $4.75 million, from $21.50 million to $16.75 million over the same period as the need for the Company to fund its loan portfolio with low-cost FHLB borrowings decreased.

Shareholders' equity was $29.84 million at September 30, 2017, representing a decrease of 0.10% from the September 30, 2016 balance of $29.87 million.  The Company's book value was $13.71 per common share based on 2,176,908 shares issued and outstanding at September 30, 2017 versus $13.44 on 2,222,749 shares issued and outstanding on September 30, 2016.  The Company paid cash dividends totaling $0.34 per share to all public holders of our stock, during the fiscal year ending September 30, 2017. Cambray Mutual Holding Company, our majority shareholder, waived its right to payment of dividends through a November 2016 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 St. Lawrence, 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.   

For more information, contact Charles C. Van Vleet Jr., President and Chief Executive Officer at (315) 287-2600.