GOUVERNEUR, N.Y., Aug. 08, 2017 (GLOBE NEWSWIRE) -- 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, 2017.
For the three months ended June 30, 2017, the Company reported net income of $267,000, or $0.12 per diluted share, representing a decrease of $46,000, or 14.70% from last year’s net income of $313,000, or $0.14 per diluted share. Net interest income decreased $34,000 for the quarter relative to 2016, ending June 30, 2017 at $1.33 million compared to $1.37 million for the quarter ended June 30, 2016. Net interest margin remained strong at 4.41%, compared to 4.38% for the same period last year.
The annualized return on average assets and average equity for the three months ended June 30, 2017 was 0.79% and 3.62% respectively, compared to 0.91% and 4.26% for the three months ended June 30, 2016.
For the nine months ended June 30, 2017, the Company reported net income of $966,000, or $0.44 per diluted share, representing an increase of $147,000, or 17.95% over last year’s net income of $819,000, or $0.37 per diluted share. The annualized return on average assets and average equity for the nine months ended June 30, 2017 was 0.95% and 4.35% respectively, compared to 0.79% and 3.75% for the same period last year. Average equity to average total assets increased since September 30, 2016, from 21.14% to the current 21.83% at June 30, 2017.
Since September 30, 2016, total assets decreased $3.16 million, or 2.24%, from $141.40 million to $138.24 million at June 30, 2017, mainly as a result of a decrease in loans net of deferred fees of $3.50 million, or 3.32%, from $104.04 million to $100.58 million over the same period. 25% of that decrease is attributable to portfolio loans refinanced during this period into the new secondary mortgage product introduced by the Bank in 2016.
Deposits decreased $1,19 million, or 1.42%, from $83.85 million at September 30, 2016 to $82.66 million at June 30, 2017. Advances from the Federal Home Loan Bank of New York decreased from $21.50 million to $20.00 million over the same period.
Net interest income decreased $14,000 for the first nine months of 2017 relative to the same period of 2016, ending June 30, 2017 at $4.082 million compared to $4.096 million in 2016. Net interest margin remained strong at 4.45%, compared to 4.32% for the nine month period last year. Net interest income after the provision for loan losses increased $141,000, or 3.66%, during the first nine months of the 2017 fiscal year as compared to the first nine months of the 2016.
While non-performing assets to total assets decreased from 2.39% at September 30, 2016 to 2.01% at June 30, 2017, the allowance for loan loss increased $36,000 over the same period.
Shareholders’ equity was $29.62 million at June 30, 2017, a decrease of 0.86% from the September 30, 2016 balance of $29.87 million as treasury stock increased $825,000 through the repurchase of 45,841 Employee Stock Option Program (ESOP) shares. The book value of Gouverneur Bancorp, Inc. was $13.60 per common share based on 2,176,908 shares outstanding at June 30, 2017. The company paid a semi-annual cash dividend of $0.17 per share to public shareholders on March 31, 2017.
Commenting on the year’s results, Mr. Charles C. Van Vleet, the Company’s President and Chief Executive Officer, stated, “The net interest margin increased 13 basis points from the previous year, remaining strong at 4.45%. Lending remained slow as the Bank held the line on underwriting standards and rate reductions. Our website has been updated, allowing the Bank’s customers more direct online access to its products and services. This will allow for a larger lending area for residential mortgages for Gouverneur Savings & Loan. We have seen some increase in expenses as we continue to upgrade our products and services. The investment portfolio is performing very well with an average tax equivalent yield of 5.20%; 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 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 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.