Gouverneur Bancorp, Inc. Announces Fiscal 2026 Third Quarter and Nine Months Results and Strategic Balance Sheet Optimization
Gouverneur Bancorp (OTCQB:GOVB) reported fiscal 2026 third‑quarter net income of $239,000 ($0.23/share), up from $217,000 ($0.22/share) a year earlier.
Rhea-AI Summary
Gouverneur Bancorp (OTCQB:GOVB) reported fiscal 2026 third‑quarter net income of $239,000 ($0.23/share), up from $217,000 ($0.22/share) a year earlier. Nine‑month net income rose to $743,000 ($0.72/share) from $495,000 ($0.48/share), as net interest income and net interest margin both improved.
Total assets were $198.7 million and deposits $155.7 million at June 30, 2026, with shareholders’ equity at $32.7 million, or book value of $30.93 per share. Subsequent to quarter‑end, the Company initiated a strategic balance sheet optimization, selling $23.8 million of securities at an estimated $2.0 million pre‑tax loss, reinvesting $11.6 million into higher‑yielding, shorter‑duration securities, repaying Federal Home Loan Bank advances, and planning the sale of about $20.0 million of lower‑yielding loans, also with an estimated $2.0 million pre‑tax loss.
Positive
- Net income growth: Q3 2026 net income $239,000 vs. $217,000; nine‑month $743,000 vs. $495,000
- EPS higher: Q3 EPS $0.23 vs. $0.22; nine‑month $0.72 vs. $0.48
- Net interest margin expansion: Q3 NIM 4.25% vs. 4.15%; nine‑month 4.17% vs. 4.07%
- Loan portfolio growth: Net loans $135.3 million, up $3.8 million or 2.88% since September 30, 2025
- Capital and book value up: Shareholders’ equity $32.7 million; book value $30.93 vs. $30.55 per share
- Planned margin and EPS uplift: Management currently expects optimization to add ~51 bps to NIM and ~$0.58 annual EPS once fully deployed
Negative
- Securities loss realized: Sale of $23.8 million AFS securities with estimated ~$2.0 million pre‑tax loss in July 2026
- Expected loan sale loss: Planned sale of ~$20.0 million lower‑yielding loans with estimated ~$2.0 million pre‑tax loss
- Higher non‑interest expenses: Q3 non‑interest expense $1.9 million vs. $1.8 million; nine‑month $5.6 million vs. $5.5 million
- New borrowing costs: Interest expense on FHLB advances $34,000 (Q3) and $134,000 (nine months) vs. none in prior year
Details
News Market Reaction – GOVB
In the Jul 30 session, GOVB gained 8.08%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
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GOUVERNEUR, N.Y., July 29, 2026 (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 third quarter and nine months of fiscal year 2026, ended June 30, 2026, and announced a strategic balance sheet optimization in an effort to improve future earnings, strengthen liquidity and enhance long-term shareholder value.
The Company reported net income of
Summary of Fiscal 2026 Third Quarter 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 primarily 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
Deposits increased by
Shareholders’ equity was
Total interest income increased
Total interest expense increased
Net interest margin, which represents net interest income as a percentage of average interest-earning assets, was
Non-interest income decreased
Non-interest expense increased
Financial and Operational Metrics (GAAP) – The following information is unaudited and preliminary and based on the Company’s current data available at the time of presentation and is subject to change.
| As of | As of | |||||||
| 6/30/2026 | 9/30/2025 | |||||||
| (In Thousands) | ||||||||
| (unaudited) | ||||||||
| Statement of Condition | ||||||||
| Assets | ||||||||
| Cash and Cash Equivalents | $ | 6,339 | $ | 4,659 | ||||
| Securities Available-for-Sale | 35,194 | 40,931 | ||||||
| Loans Receivable, Net of Allowance for Credit | ||||||||
| Losses and Deferred Loan Fees | 135,297 | 131,504 | ||||||
| Premises and Equipment, Net | 3,082 | 2,904 | ||||||
| Goodwill and Intangible Assets | 5,288 | 5,531 | ||||||
| Accrued Interest Receivable and Other Assets | 13,478 | 12,999 | ||||||
| Total Assets | $ | 198,678 | $ | 198,528 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Deposits | $ | 155,681 | $ | 154,780 | ||||
| FHLB Advances | 4,000 | 7,000 | ||||||
| Accrued Interest Payable and Other Liabilities | 6,246 | 4,640 | ||||||
| Total Liabilities | 165,927 | 166,420 | ||||||
| Common Stock | 11 | 11 | ||||||
| Additional Paid in Capital | 6,334 | 6,514 | ||||||
| Unearned Common Stock held by ESOP | (463 | ) | (501 | ) | ||||
| Retained Earnings | 29,524 | 28,972 | ||||||
| Accumulated Other Comprehensive Loss | (1,983 | ) | (2,187 | ) | ||||
| Authorized but Unissued Stock | (672 | ) | (701 | ) | ||||
| Total Shareholders’ Equity | 32,751 | 32,108 | ||||||
| Total Liabilities and Shareholders’ Equity | $ | 198,678 | $ | 198,528 | ||||
| For the Three Months Ended | For the Nine Months Ended | |||||||||||
| 6/30/2026 | 6/30/2025 | 6/30/2026 | 6/30/2025 | |||||||||
| (In Thousands except per share data) | ||||||||||||
| (unaudited) | ||||||||||||
| Statement of Earnings | ||||||||||||
| Interest Income | $ | 2,252 | $ | 2,170 | $ | 6,716 | $ | 6,473 | ||||
| Interest Expense | 381 | 360 | 1,168 | 1,151 | ||||||||
| Net Interest Income | 1,871 | 1,810 | 5,548 | 5,322 | ||||||||
| Less: Provision for Credit Loss | 12 | 12 | 30 | 27 | ||||||||
| Net Interest Income After Provision for Credit Loss | 1,859 | 1,798 | 5,518 | 5,295 | ||||||||
| Non-interest Income | 255 | 256 | 826 | 708 | ||||||||
| Non-interest Expenses | 1,861 | 1,786 | 5,563 | 5,474 | ||||||||
| Income Before Income Tax Expense | 253 | 268 | 781 | 529 | ||||||||
| Less: Income Tax Expense | 14 | 51 | 38 | 34 | ||||||||
| Net Income | $ | 239 | $ | 217 | $ | 743 | $ | 495 | ||||
| Performance Ratios | ||||||||||||
| Basic and Diluted Earnings per Share | $ | 0.23 | $ | 0.22 | $ | 0.72 | $ | 0.48 | ||||
| Annualized Return on Average Assets | 0.48 | % | 0.44 | % | 0.50 | % | 0.34 | % | ||||
| Annualized Return on Average Equity | 3.04 | % | 2.79 | % | 3.08 | % | 2.08 | % | ||||
| Net Interest Margin | 4.25 | % | 4.15 | % | 4.17 | % | 4.07 | % | ||||
Fiscal 2026 Fourth Quarter Strategic Balance Sheet Optimization
Subsequent to quarter-end, in July 2026, the Company sold approximately
To satisfy ongoing collateral and pledging requirements, the Company reinvested approximately
The Company is also in the process of selling approximately
Management currently estimates the balance sheet optimization transaction will have an earn-back period of approximately 5 years based on improvements in net interest income. Because a substantial portion of the securities loss had previously been reflected in AOCI, the accounting loss recognized upon sale does not represent the full economic impact of the transaction. As excess liquidity is redeployed into higher-yielding loans over time, the strategy is currently expected to increase net interest margin by approximately 51 basis points and increase annual earnings per share by approximately
Stephen Jefferies, President and Chief Executive Officer, commented, “This balance sheet optimization is an investment in our future earnings. By repositioning lower-yielding assets today, we believe that we will improve our net interest margin, strengthen liquidity and create greater capacity to support future loan growth, while maintaining strong capital levels.”
This strategic optimization is not expected to impact the Company’s ability to continue evaluating opportunities to effect future share repurchases and pay cash dividends, as market conditions permit and when management and the Board determine such actions are financially prudent.
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 June 30, 2026, Gouverneur Bancorp, Inc. had total assets of
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: our ability to recognize the anticipated benefits of the strategic balance sheet optimization transaction that we implemented in July 2026 in accordance with expected earn-back timelines or at all; our ability to successfully implement our current capital management strategies, including with respect to the adoption of future stock repurchase programs and the continued payment of cash dividends; 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 impact of changing political conditions or federal government shutdowns; the effect of acts of terrorism, war or pandemics, including on our credit quality and business operations, as well as on general economic and financial market conditions; 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, 2025 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 Stephen Jefferies, President and Chief Executive Officer at (315) 287-2600.
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