GOUVERNEUR, N.Y., Aug. 1, 2011 /PRNewswire/ -- Gouverneur Bancorp, Inc. (OTC Bulletin Board: 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, 2011.
For the three months ended June 30, 2011, the Company reported net income of $481,000, or $0.21 per diluted share, representing an increase of $65,000, or 15.63% from last year's net income of $416,000, or $0.18 per diluted share. The annualized return on average assets and average equity for the three months ended June 30, 2011 was 1.36% and 8.58% respectively, compared to 1.13% and 7.35% for the three months ended June 30, 2010.
For the nine months ended June 30, 2011, the Company reported net income of $1,504,000, or $0.67 per diluted share, representing an increase of $282,000, or 23.08% over last year's net income of $1,222,000, or $0.54 per diluted share. The annualized return on average assets and average equity for the nine months ended June 30, 2011 was 2.05% and 12.90% respectively, compared to 1.69% and 11.08% for the same period last year.
Since September 30, 2010, total assets grew $2.07 million, or 1.41%, from $146.96 million to $149.03 million at June 30, 2011, mainly as a result of an increase in loans receivable of $2.02 million, or 1.77%, from $114.40 million to $116.42 million over the same period.Deposits decreased $2.29 million, or 2.49%, from $91.87 million at September 30, 2010 to $89.58 million at June 30, 2011. Advances from the Federal Home Loan Bank of New York increased from $28.40 million to $31.10 million over the same period. The cost of deposits and borrowed funds remains flat as maturities renewed at lower rates. Net interest income after the provision for loan losses increased $286,000, or 6.74%, during the first nine months of the 2011 fiscal year as compared to the first nine months of the 2010 fiscal year. Non-performing assets have increased from 1.13% at September 30, 2010 to 1.35% at June 30, 2011. Shareholders' equity was $24.04 million at June 30, 2011, an increase of 4.72% over the September 30, 2010 balance of $22.96 million. The book value of Gouverneur Bancorp, Inc. was $10.73 per common share based on 2,240,464 shares outstanding at June 30, 2011. The company paid a semi-annual cash dividend of $0.17 per share to public shareholders on March 31, 2011. Cambray Mutual Holding Company, Gouverneur Bancorp Inc.'s parent mutual holding company and holder of 58.52% of the Company's issued and outstanding stock, waived its right to receive 68.60% of that dividend. Commenting on the year's results, Mr. Charles C. Van Vleet, the Company's President and Chief Executive Officer, stated, "Earnings have been strong through the third quarter ended June 30, 2011, and due to the current economic state, we expect the Federal Reserve will keep interest rates at or near the current level through the end of the year. The Bank will continue to take advantage of the current short term rates for as long at it is prudent." 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.