Gouverneur Bancorp Announces 2013 Fiscal Year Second Quarter and Six Months Results

 Gouverneur Bancorp Announces 2013 Fiscal Year Second Quarter and Six Months
                                   Results

PR Newswire

GOUVERNEUR, N.Y., April 25, 2013

GOUVERNEUR, N.Y., April 25, 2013 /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, 2013.

For the three months ended March 31, 2013, the Company reported net income of
$496,000, or $0.22 per diluted share, representing an increase of $40,000, or
8.8% over last year's net income of $456,000, or $0.20 per diluted share.
The annualized return on average assets and average equity for the three
months ended March 31, 2013 were 1.37% and 7.81%, respectively, compared to
1.23% and 7.29%, respectively, for the three months ended March 31, 2012.

For the six months ended March 31, 2013, the Company reported net income of
$996,000, or $0.45 per diluted share, representing an increase of $45,000, or
4.7% from last year's net income of $951,000, or $0.42 per diluted share.
The annualized return on average assets for the six months ended March 31,
2013 was 1.37% compared to 1.29% during the six months ended March 31, 2012.
Average equity remained constant at 7.75% for both periods.

Since September 30, 2012, total assets declined $0.2 million, or 0.15%, from
$146.4 million to $146.2 million at March 31, 2013, and net loans remained
stable at $113.3 million over the same period.

Deposits increased $0.3 million, or 0.29%, from $90.6 million at September 30,
2012 to $90.9 million at March 31, 2013. Advances from the Federal Home Loan
Bank of New York decreased $0.2 million, or 0.79%, from $25.4 million at
September 30, 2012 to $25.2 million at March 31, 2013.

Shareholders' equity was $25.6 million at March 31, 2013 and September 30,
2012. The book value of Gouverneur Bancorp, Inc. was $11.48 per common share
based on 2,229,505 shares outstanding at March 31, 2013. On March 31, 2013
the Company paid a semi-annual cash dividend of $0.17 per share to all
shareholders of record on March 15, 2013.

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, 2013 after a $60,000 provision for loan losses, net interest
income increased by $18,000, interest income decreased $235,000 and interest
expense decreased $158,000 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, 2013 show that interest expense declined $75,000 from the
same period in 2012, while interest income declined $121,000 during that
time. It is believed that the rates will remain low at least through the end
of the fiscal year, further compressing the Bank's net interest margin."

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 Bancorp, Inc.

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