GOUVERNEUR, N.Y., April 18, 2012 /PRNewswire/ -- Gouverneur Bancorp, Inc. (OTC Bulletin Board: GOVB) (the "Company") and its subsidiary, Gouverneur Savings and Loan Association (the "Bank"), which operate on a fiscal year ending on September 30, today announced results for the second quarter and six month period ended March 31, 2012. For the three months ended March 31, 2012, the Company reported net income of $456,000, or $0.20 per diluted share, representing a decrease of $42,000, or 8.4% over last year's net income of $498,000, or $0.22 per diluted share. The annualized return on average assets and average equity for the three months ended March 31, 2012 were 1.23% and 7.29%, respectively, compared to 1.33% and 8.50%, respectively, for the three months ended March 31, 2011. For the six months ended March 31, 2012, the Company reported net income of $951,000, or $0.42 per diluted share, representing a decrease of $72,000, or 7.0% from last year's net income of $1,023,000, or $0.46 per diluted share. The annualized return on average assets and average equity for the six months ended March 31, 2012 were 1.29% and 7.75%, respectively, compared to 1.40% and 8.86%, respectively, during the six months ended March 31, 2011. Since September 30, 2011, total assets declined $2.4 million, or 1.6%, from $149.8 million to $147.4 million at March 31, 2012, and net loans decreased $2.5 million, or 2.1%, from $116.3 million to $113.8 million over the same period. Deposits decreased $2.4 million, or 2.6%, from $91.6 million at September 30, 2011 to $89.2 million at March 31, 2012. Advances from the Federal Home Loan Bank of New York decreased $1.0 million, or 3.4%, from $29.7 million at September 30, 2011 to $28.7 million at March 31, 2012. Shareholders' equity was $24.9 million at March 31, 2012, an increase of 2.5% over the September 30, 2011 balance of $24.3 million. The book value of Gouverneur Bancorp, Inc. was $11.08 per common share based on 2,240,464 shares outstanding at March 31, 2012. On March 31, 2012 the Company paid a semi-annual cash dividend of $0.17 per share to all shareholders of record on March 15, 2012. Interest rate spread, the difference between the average rate earned on interest-bearing assets and the cost of interest-bearing liabilities, remains strong as interest costs continue at record low levels. For the six months ended March 31, 2012 after a $155,000 provision for loan losses, net interest income increased by $50,000, interest income decreased $117,000 and interest expense decreased $227,000 from the same period last year. Commenting on the period's results, Mr. Charles C. Van Vleet, the Company's President and Chief Executive Officer, said, "Results for the three months ending March 31, 2012 show that the interest expense declined to $306,000, from $424,000 in the same period in 2011. Currently it is believed that the lower rates will continue at least through the end of the fiscal year." 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.