Gouverneur Bancorp, Inc. Announces Fiscal 2025 Second Quarter and Six Months Results
GOUVERNEUR, N.Y., April 23, 2025 (GLOBE NEWSWIRE) -- Gouverneur Bancorp, Inc. (OTCQB: GOVB) (the “Company”), the holding company for Gouverneur Savings and Loan Association (the “Bank”), today announced the Company’s results for the second quarter and six months of fiscal year 2025, ended March 31, 2025.
The Company reported net income of $118,000, or $0.11 per basic and diluted share, for the quarter ended March 31, 2025, compared to net income of $102,000, or $0.10 per basic and diluted share, for the quarter ended March 31, 2024. The Company also reported net income of $278,000, or $0.27 per basic and diluted share, for the six months ended March 31, 2025, compared to net income of $220,000, or $0.21 per basic and diluted share, for the six months ended March 31, 2024.
Summary of Financial Results
Our results of operations depend primarily on our net interest income. Net interest income is the difference between the interest income we earn on our interest-earning assets, consisting primarily of loans and securities, and the interest we pay on our interest-bearing liabilities, consisting of savings and club accounts, NOW and money market accounts and time certificates. Our results of operations also are affected by our provisions for credit losses, non-interest income and non-interest expense. Non-interest income currently consists primarily of service charges, earnings on bank owned life insurance and loan servicing fees. Non-interest expense currently consists primarily of salaries and employee benefits, directors’ fees, occupancy and data processing expense and professional fees. Our results of operations also may be affected significantly by other factors including, but not limited to, general and local economic and competitive conditions, changes in market interest rates, governmental policies and actions of regulatory authorities.
Total assets increased by $0.1 million or 0.06%, from $197.3 million at September 30, 2024 to $197.4 million at March 31, 2025. Securities available for sale decreased $2.5 million, or 5.59%, from $45.3 million as of September 30, 2024 to $42.8 million as of March 31, 2025 as the Bank received principal paydowns and maturities along with a decrease in the market value as market rates fluctuate. Net loans increased by $1.1 million or 0.91%, from September 30, 2024 to March 31, 2025. The Bank recorded no credit loss provisions for the three months ended March 31, 2025 and 2024. The Bank made a $15,000 provision for credit loss during the first six months of fiscal 2025, a decrease from the $70,000 provision made in the same period of fiscal 2024.
Deposits increased $1.9 million or 1.20%, to $161.8 million at March 31, 2025 from $159.9 million at September 30, 2024 due to seasonal fluctuations. The Bank currently holds no Federal Home Loan Bank (FHLB) advances or brokered deposits.
Shareholders’ equity was $31.4 million at March 31, 2025, representing a decrease of 4.30% from the September 30, 2024 balance of $32.8 million. The decrease in shareholders’ equity was primarily a result of a $1.0 million decrease to the market value of the securities portfolio included in accumulated other comprehensive loss, and the repurchase of common stock by the Company. The Company declared dividends of $0.08 per share totaling $89,000 during the six months ended March 31, 2025. The Company’s book value was $29.63 per common share based on 1,107,134 shares issued and 1,058,399 shares outstanding at March 31, 2025. The Company’s book value was $29.59 per common share based on 1,107,134 shares issued and outstanding at September 30, 2024.
Total interest income decreased $8,000, or 0.37%, from $2.2 million for the quarter ended March 31, 2024 to $2.1 million for the quarter ended March 31, 2025 due to a decrease in interest on taxable and non-taxable securities, partially offset by an increase in loan income. For the six months ended March 31, 2025, total interest income increased $30,000, or 0.70%, from $4.2 million for the six months ended March 31, 2024 to $4.3 million. Interest income on loans increased $51,000, or 3.13%, from $1.6 million for the quarter ended March 31, 2024 to $1.7 million for the quarter ended March 31, 2025. For the six months ended March 31, 2025, interest income on loans increased $142,000, or 4.39%, from the same period in fiscal 2024 due to an increase in market rates resulting in higher interest rates on loan originations and repricing, along with a slight increase in loan volume.
Total interest expense increased $53,000, or 15.73%, from $337,000 for the quarter ended March 31, 2024 to $390,000 for the quarter ended March 31, 2025. For the six months ended March 31, 2025, total interest expense increased $130,000, or 19.67%, from $661,000 for the six months ended March 31, 2024 to $791,000. Interest expense on deposits increased $98,000, from $292,000 for the quarter ended March 31, 2024 to $390,000 for the quarter ended March 31, 2025. For the six months ended March 31, 2025, interest expense on deposits increased $256,000, from $535,000 for the six months ended March 31, 2024 to $791,000. Interest expense on FHLB borrowings decreased $75,000 and $206,000 for the three and six months ended March 31, 2025, respectively, compared to the same periods in fiscal 2024 as the Bank currently holds no FHLB advances. The increase in total interest expense for the three- and six-month periods ended March 31, 2025 was due to the increase in interest on deposits, resulting from higher deposit rates from the respective prior year periods, and a decrease in income earned on swap agreements hedged against certain borrowings partially offset by a decrease in borrowing interest expense.
Net interest margin, which represents net interest income as a percentage of average interest-earning assets, was 4.06% for the quarters ended March 31, 2025 and 2024, and 4.02% and 4.03% for the six months ended March 31, 2025 and 2024, respectively. While net interest income declined as a result of rising interest expense, net interest margin remained steady due to a slight decrease in average interest-earning assets.
Non-interest income increased $12,000, from $196,000 for the quarter ended March 31, 2024 to $208,000 for the quarter ended March 31, 2025. For the six months ended March 31, 2025, non-interest income increased $109,000 to $452,000, from $343,000 for the six months ended March 31, 2024. This includes the unrealized market value loss on swap agreements held with FHLBNY of $9,000 and $181,000 for the six months ended March 31, 2025 and 2024, respectively. Other non-interest income increased $42,000 during the six months ended March 31, 2025 compared to the same period last year, primarily due to the recognition of additional income from a tax-related refund.
Non-interest expense decreased $66,000, from $1.9 million for the quarter ended March 31, 2024 to $1.8 million for the quarter ended March 31, 2025. The decrease included a $41,000 decrease in salaries and employee benefits primarily due to staff retirements. For the six months ended March 31, 2025, non-interest expense decreased $11,000 compared to the same period in fiscal 2024. This included a decrease in salaries and employee benefits of $31,000 and a $43,000 decrease in earnings on the Bank’s deferred fees plan due to fluctuations in market rates. Data processing and occupancy expenses also decreased during the six months ended March 31, 2025. Other non-interest expense increased $156,000 during the six months ended March 31, 2025, primarily due to operational expenses related to the Company’s operations as a public company.
Financial and Operational Metrics (GAAP) –The following information is preliminary and based on the Company’s data available at the time of presentation.
| 03/31/2025 | 09/30/2024 | ||||||
| (In Thousands) | |||||||
| (unaudited) | |||||||
| Statement of Condition | |||||||
| Assets | |||||||
| Cash and Cash Equivalents | $ | 7,873 | $ | 6,370 | |||
| Securities Available-for-Sale | 42,812 | 45,348 | |||||
| Loans Receivable, Net of Allowance for Credit | |||||||
| Losses and Deferred Loan Fees | 125,385 | 124,257 | |||||
| Premises and Equipment, Net | 2,891 | 2,924 | |||||
| Goodwill and Intangible Assets | 5,716 | 5,901 | |||||
| Accrued Interest Receivable and Other Assets | 12,694 | 12,460 | |||||
| Total Assets | $ | 197,371 | $ | 197,260 | |||
| Liabilities and Shareholders’ Equity | |||||||
| Deposits | $ | 161,821 | $ | 159,902 | |||
| Accrued Interest Payable and Other Liabilities | 4,193 | 4,593 | |||||
| Total Liabilities | 166,014 | 164,495 | |||||
| Common Stock (and related surplus) | 6,507 | 6,498 | |||||
| Retained Earnings | 28,602 | 28,413 | |||||
| Accumulated Other Comprehensive Loss | (2,653 | ) | (1,606 | ) | |||
| Other Equity Capital Components | (1,099 | ) | (540 | ) | |||
| Total Shareholders’ Equity | 31,357 | 32,765 | |||||
| Total Liabilities and Shareholders’ Equity | $ | 197,371 | $ | 197,260 | |||
| For the Quarter Ended | For the Six Months Ended | ||||||||||||||
| 03/31/2025 | 03/31/2024 | 03/31/2025 | 03/31/2024 | ||||||||||||
| (In Thousands except per share data) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Statement of Earnings | |||||||||||||||
| Interest Income | $ | 2,137 | $ | 2,145 | $ | 4,303 | $ | 4,273 | |||||||
| Interest Expense | 390 | 337 | 791 | 661 | |||||||||||
| Net Interest Income | 1,747 | 1,808 | 3,512 | 3,612 | |||||||||||
| Provision for Credit Loss | - | - | 15 | 70 | |||||||||||
| Net Interest Income After Provision for Credit Loss | 1,747 | 1,808 | 3,497 | 3,542 | |||||||||||
| Non-interest Income | 208 | 196 | 452 | 343 | |||||||||||
| Non-interest Expenses | 1,853 | 1,919 | 3,688 | 3,699 | |||||||||||
| Income Before Income Tax Benefit | 102 | 85 | 261 | 186 | |||||||||||
| Income Tax Benefit | (16 | ) | (17 | ) | (17 | ) | (34 | ) | |||||||
| Net Income | $ | 118 | $ | 102 | $ | 278 | $ | 220 | |||||||
| Performance Ratios | |||||||||||||||
| Basic and Diluted Earnings per Share | $ | 0.11 | $ | 0.10 | $ | 0.27 | $ | 0.21 | |||||||
| Annualized Return on Average Assets | 0.24 | % | 0.20 | % | 0.28 | % | 0.21 | % | |||||||
| Annualized Return on Average Equity | 1.52 | % | 1.29 | % | 1.74 | % | 1.48 | % | |||||||
| Net Interest Spread | 3.87 | % | 3.92 | % | 3.83 | % | 3.88 | % | |||||||
| Net Interest Margin | 4.06 | % | 4.06 | % | 4.02 | % | 4.03 | % | |||||||
About Gouverneur Bancorp, Inc.
Gouverneur Bancorp, Inc. is the holding company for Gouverneur Savings and Loan Association, which is a New York chartered savings and loan association founded in 1892 that offers deposit and loan services for businesses, families and individuals. At March 31, 2025, Gouverneur Bancorp, Inc. had total assets of $197.4 million, total deposits of $161.8 million and total stockholders’ equity of $31.4 million.
Forward-Looking Statements
This press release may contain forward-looking statements, which can be identified by the use of words such as “believes,” “expects,” “anticipates,” “estimates” or similar expressions. Such forward-looking statements and all other statements that are not historic facts are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors. These factors include, among others, the following: changes in interest rates; national and regional economic conditions; legislative and regulatory changes; monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Federal Reserve Board; the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts; the size, quality and composition of the loan or investment portfolios; demand for loan products; deposit flows and our ability to effectively manage liquidity; competition; demand for financial services in our market area; changes in real estate market values in our market area; changes in relevant accounting principles and guidelines; our ability to attract and retain key employees; our ability to maintain the security of our data processing and information technology systems; and that the Company may not be successful in the implementation of its business strategy. Additionally, other risks and uncertainties are described in the Company’s Annual Report on Form 10-K for the year ended September 30, 2024 and other reports the Company files with the SEC, which are available through the SEC’s EDGAR website located at www.sec.gov. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Should one or more of these risks materialize, actual results may vary from those anticipated, estimated or projected.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as may be required by applicable law or regulation, the Company and the Bank assume no obligation to update any forward-looking statements.
For more information, contact Robert W. Barlow, President and Chief Executive Officer at (315) 287-2600.
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