EXHIBIT 99.1
Gouverneur Bancorp Announces Fiscal 2005 Results
Gouverneur, NY, December 2, 2005- Richard F. Bennett, President and Chief
Executive Officer of Gouverneur Bancorp, Inc. (AMEX: GOV) (the "Company") and
its subsidiary, Gouverneur Savings and Loan Association (the "Bank"), announced
today results for its fiscal year ended September 30, 2005.
Net income for the fiscal year ended September 30, 2005 increased 20.0 % to
$1,032,000, or $0.46 per diluted share, compared to $860,000, or $0.38 per
diluted share, in the prior year. The return on average assets and average
equity increased to 0.91% and 5.62% for the year ended September 30, 2005 from
0.89% and 4.82% respectively for the year ended September 30, 2004. In fiscal
2005 total assets grew from $104.2 million by $18.0 million, or 17.3%, to $122.2
million, while net loans increased $16.5 million, or 20.6%, from $80.2 million
to $96.7 million.
Commenting on the results for the year, Mr. Bennett said, "The mortgage market,
particularly in the Thousand Islands region along the St. Lawrence River,
provided strong growth for 2005. Net income grew by 20.0% from $860,000 last
fiscal year to $1,032,000 this fiscal year. The loan growth was steady
throughout fiscal 2005."
Net interest income for the year ended September 30, 2005 increased by $489,000,
or 13.0% from $3,755,000 to $4,244,000. In fiscal 2005, interest income
increased $1,038,000, or 19.2%, from $5,403,000 to $6,441,000, while interest
expense increased $549,000, or 33.3%, from $1,648,000 to $2,197,000.
Non-interest income increased $95,000 from $463,000 in fiscal year 2004 to
$558,000 in fiscal 2005. Service charge income increased $23,000 from $182,000
last year to $205,000 this year and other non-interest income items increased by
$103,000 (including increases of $53,000 from earnings on bank owned life
insurance ("BOLI") and $16,000 in gains on the sales on securities. A loss of
$31,000 on the sales of loans reduced other income.
The provision for loan losses increased $5,000 for the 2005 fiscal year to
$140,000 from $135,000 for the 2004 fiscal year. The increase was the result of
the growth of the loan portfolio.
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The components of non-interest expense are presented in the following table:
For the year ended
September 30,
---------------------------
2005 2004
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(in thousands)
Salaries and employee benefits $ 1,686 $ 1,415
Directors fees 141 92
Building, occupancy and equipment 402 347
Advertising 53 54
Other operating expense 843 759
------------ ------------
Non interest expense $ 3,125 $ 2,667
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Salaries and employee benefits expense increased by $271,000 in fiscal 2005
partially due to performance increases to employees and having a commercial loan
officer and an assistant treasurer on the payroll for a full year. Costs for
health insurance, the Employee Stock Ownership Plan ("ESOP") and the directors
and officers supplemental retirement programs were also higher in fiscal 2005.
Non-performing loans were $393,000 at September 30, 2005, compared to $380,000
at September 30, 2004. Non-accrual loans were $393,000 at the end of fiscal
2005, compared to $252,000 one year earlier. The loan loss provision was
$140,000 and net charge-offs were $79,000 for the year ended September 30, 2005.
The allowance for loan losses was $869,000, or 0.87% of total loans outstanding
at September 30, 2005 as compared to $755,000, or 0.94% at September 30, 2004.
Deposits increased $2.6 million, or 4.2%, to $64.0 million at September 30, 2005
from $61.6 million at September 30, 2004. Securities sold under agreement to
repurchase with the Federal Home Loan Bank ("FHLB") were $6.0 million at
September 30, 2005 and 2004, while advances from FHLB increased from $17.0
million to $30.8 million, an increase of $13.8 million or 81.2%, over the same
period.
Shareholders' equity was $18.7 million at September 30, 2005, representing an
increase of 3.89% over the September 30, 2004 balance of $18.0 million. The book
value of Gouverneur Bancorp, Inc. was $8.17 per common share based on 2,285,434
shares outstanding at September 30, 2005. The company paid cash dividends
totaling $0.28 per share to all public holders of our stock as Cambray Mutual
Holding Company waived its right to receive dividends during the fiscal year
ending September 30, 2005.
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.
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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 Robert J. Twyman, Vice President and Chief
Financial Officer at (315) 287-2600.
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