By a News Reporter-Staff News Editor at Real Estate Weekly News -- Gouverneur Bancorp, Inc. (OTC Bulletin Board: GOVB) (the "Company") holding company for Gouverneur Savings and Loan Association (the "Bank"), announced the results for the first quarter of fiscal year 2014 ended December 31, 2013.
For the three months ended December 31, 2013 the Company reported net income of $416,000, or $0.19 per diluted share, representing a decrease of $84,000, or 16.80%, below last year's net income of $500,000, or $0.22 per diluted share. The annualized return on average assets decreased from 1.36% to 1.16% and the return on average equity decreased from 7.68% to 6.40% for the three months ended December 31, 2013 and 2012, respectively.
Total assets increased by $1.33 million, or 0.92% from $144.00 million at September 30, 2013 to $145.34 million at December 31, 2013. Net loans increased $1.81 million, or 1.64%, to $112.08 million over the same period.
Commenting on the quarter's results, Mr. Charles C. Van Vleet, the Company's President and Chief Executive Officer, said, "The Bank continues to perform well as we have been able to maintain margins higher than our peers. The Federal Reserve indicates that short term rates are expected to remain low throughout 2014. Bank margins will continue to compress as interest rates remain low and the loan portfolio shifts to lower yields."
Net interest income decreased by $93,000, or 5.93%, from $1,568,000 for the quarter ended December 31, 2012 to $1,475,000 for the quarter ended December 31, 2013. Interest income decreased $156,000, or 8.48%, while interest expense decreased $63,000, or 23.25% over the same period. Non-interest income decreased $101,000, or 28.37% to $255,000 for the quarter ended December 31, 2013 compared to $356,000 for the quarter ended December 31, 2012. A 100% decrease in the net gain on the sale of securities was the primary factor in the fiscal 2014 quarter net decrease.
Non-interest expense decreased $23,000 from the first quarter of fiscal 2013 to the first quarter of fiscal 2014. Earnings expense on the deferred director's plan and other operating expenses increased $30,000 and $18,000 respectively, while salaries and employee benefits increased $22,000 and expenses associated with owned real estate decreased $101,000 for the period.
Non-performing loans were $3,535,000 at December 31, 2013 compared to $2,746,000 at September 30, 2013. There was a $15,000 loan loss provision and net charge-offs were $1,200 for the quarter ended December 31, 2013. The allowance for loan losses was $1,038,000 or 0.93% of total gross loans outstanding at December 31, 2013 as compared to $1,024,000 or 0.93% at September 30, 2013. Foreclosed real estate was $221,000 at September 30, 2013 and December 31, 2013.
Deposits decreased $4.69 million or 4.92%, to $90.7 million at December 31, 2013 from $95.4 million at September 30, 2013. Advances from the Federal Home Loan Bank of New York ("FHLB") increased 27.17%, from $18.4 million at September 30, 2013 to $23.4 million at December 31, 2013.
Shareholders' equity was $25.9 million at December 31, 2013, an increase of 1.57% over the September 30, 2013 balance of $25.5 million. The book value of Gouverneur Bancorp, Inc. was $11.63 per common share based on 2,229,330 shares outstanding at December 31, 2013.
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.
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