Gouverneur Bancorp Announces 2012 Third Quarter and Nine Months Results -- Correction

  Gouverneur Bancorp Announces 2012 Third Quarter and Nine Months Results --
                                  Correction

PR Newswire

GOUVERNEUR, N.Y., July 26, 2012

GOUVERNEUR, N.Y., July 26, 2012 /PRNewswire/ -- Gouverneur Bancorp, Inc. (OTC
Bulletin Board: GOVB) (the "Company") and its subsidiary, Gouverneur Savings
and Loan Association (the "Bank"), previously announced on July 25, 2012 the
results for the third quarter and nine months ended June 30, 2012, and made a
statement that Cambray Mutual Holding Company would not waive receipt of the
semi-annual dividend declared that day.  However, the Company did not declare
such a dividend.  The full and corrected release is as follows:

For the three months ended June 30, 2012, the Company reported net income of
$495,000, or $0.22 per diluted share, representing an increase of $14,000, or
2.91% from last year's net income of $481,000, or $0.21 per diluted share. 
The annualized return on average assets and average equity for the three
months ended June 30, 2012 was 1.37% and 7.94% respectively, compared to 1.29%
and 8.01% for the three months ended June 30, 2011. 

For the nine months ended June 30, 2012, the Company reported net income of
$1,446,000, or $0.65 per diluted share, representing a decrease of $58,000, or
3.86% less than last year's net income of $1,504,000, or $0.67 per diluted
share.   The annualized return on average assets and average equity for the
nine months ended June 30, 2012 was 1.31% and 7.80% respectively, compared to
1.36% and 8.57% for the same period last year.

Since September 30, 2011, total assets decreased $3.07 million, or 2.05%, from
$149.78 million to $146.71 million at June 30, 2012, mainly as a result of a
decrease in loans receivable of $3.27 million, or 2.81%, from $116.30 million
to $113.04 million over the same period.

Deposits decreased $295,000, or 0.32%, from $91.60 million at September 30,
2011 to $91.30 million at June 30, 2012.  Advances from the Federal Home Loan
Bank of New York decreased from $29.70 million to $25.20 million over the same
period.

The cost of deposits and borrowed funds remained flat as maturities continued
to renew at historically low rates. Net interest income after the provision
for loan losses increased $83,000, or 1.83%, during the first nine months of
the 2012 fiscal year as compared to the first nine months of the 2011 fiscal
year.  Non-performing assets decreased from 1.65% at September 30, 2011 to
0.89% at June 30, 2012.   

Shareholders' equity was $25.26 million at June 30, 2012, an increase of 4.20%
over the September 30, 2011 balance of $24.24 million.  The book value of
Gouverneur Bancorp, Inc. was $11.30 per common share based on 2,234,148 shares
outstanding at June 30, 2012.  The company paid a semi-annual cash dividend of
$0.17 per share to public shareholders on March 31, 2012. 

Commenting on the year's results, Mr. Charles C. Van Vleet, the Company's
President and Chief Executive Officer, stated, "Due to the new onerous
requirements imposed by the Federal Reserve Board on dividend waivers, Cambray
Mutual Holding Company, Gouverneur Bancorp's mutual holding company parent,
did not waive the semi-annual dividend declared in January 2012.  Further, the
new dividend waiver restrictions will require the Board of Directors to
re-evaluate Gouverneur Bancorp's dividend policy and, as a result of such
regulatory considerations, Gouverneur Bancorp can make no assurances that it
will continue to declare regular semi-annual cash dividends or that its
dividend policy will not change in the future."

Mr. Van Vleet further commented, "However, earnings remain strong through the
third quarter ended June 30, 2012. Our tax equivalent margin is improving with
increased tax equivalent income realized through the restructuring of our
investment portfolio, and new investments in this low rate environment have
been minimal." 

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.

   

SOURCE Gouverneur Savings & Loan Association

Contact: Kimberly A. Adams, Vice President and Chief Financial Officer,
+1-315-287-2600