GOUVERNEUR, N.Y., Aug. 02, 2018 (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, 2018.
For the three months ended June 30, 2018, the Company reported net income of $404,000, or $0.18 per diluted share, representing an increase of $137,000, or 51.31% from last year’s net income of $267,000, or $0.12 per diluted share. Net interest income decreased $20,000 for the quarter relative to 2017, ending June 30, 2018 at $1.31 million compared to $1.33 million for the quarter ended June 30, 2017. Net interest margin remained strong at 4.49%, compared to 4.41% for the same period last year.
The annualized return on average assets and average equity for the three months ended June 30, 2018 was 1.25% and 5.44% respectively, compared to 0.79% and 3.62% for the three months ended June 30, 2017.
For the nine months ended June 30, 2018, the Company reported net income of $844,000, or $0.38 per diluted share, representing a decrease of $122,000, or 12.63% less than last year’s net income of $966,000, or $0.44 per diluted share. The annualized return on average assets and average equity for the nine months ended June 30, 2018 was 0.86% and 3.78% respectively, compared to 0.95% and 4.35% for the same period last year. Average equity to average total assets increased since September 30, 2017, from 21.90% to the current 22.69% at June 30, 2018.
Since September 30, 2017, total assets decreased $4.16 million, or 3.05%, from $136.26 million to $132.10 million at June 30, 2018, mainly as a result of a decrease in loans net of deferred fees of $3.34 million, or 3.35%, from $99.66 million to $96.32 million over the same period.
Deposits increased $193,000, or 0.23%, from $83.67 million at September 30, 2017 to $83.87 million at June 30, 2018. Advances from the Federal Home Loan Bank of New York decreased from $16.75 million to $12.50 million over the same period.
Net interest income decreased $173,000 for the first nine months of 2018 relative to the same period of 2017, ending June 30, 2018 at $3.91 million compared to $4.08 million in 2017. Net interest margin remained strong at 4.43%, compared to 4.45% for the nine month period last year. Net interest income after the provision for loan losses decreased $148,000, or 3.71%, during the first nine months of the 2018 fiscal year as compared to the first nine months of 2017.
Non-performing assets to total assets decreased from 1.80% at September 30, 2017 to 1.69% at June 30, 2018 while the allowance for loan loss decreased $77,000 over the same period.
Shareholders’ equity was $29.99 million at June 30, 2018, an increase of 0.49% from the September 30, 2017 balance of $29.84 million. The book value of Gouverneur Bancorp, Inc. was $13.77 per common share based on 2,176,908 shares outstanding at June 30, 2018. The company paid a semi-annual cash dividend of $0.17 per share to public shareholders on March 30, 2018.
Commenting on the quarter’s results, Mr. Charles C. Van Vleet, the Company’s President and Chief Executive Officer, stated, “The net interest margin increased 8 basis points from the same quarter last year, remaining strong at 4.49%. Gouverneur has seen growth locally due to the reopening of the zinc mine, and as a result of an improved overall business outlook, the Bank anticipates economic improvement in the entire tri-county area that we serve. Gouverneur Savings & Loan 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.
For more information, contact Charles Van Vleet, President and Chief Executive Officer at (315) 287-2600.
