Gouverneur Bancorp has reported that net income for the fiscal year ended September 30, 2007, decreased 27.5% to $942,000, or $0.41 per diluted share, compared to $1.3 million, or $0.57 per diluted share, in fiscal 2006.
Total assets grew by $2.5 million, or 1.9%, from $130.1 million at September 30, 2006 to $132.6 million in this year, while net loans increased $0.5 million, or 0.5%, from $105.6 million to $106.1 million over the same period.
Richard Bennett, president and CEO of Gouverneur Bancorp, commented: Last year’s net income was aided by a non-taxable life insurance death benefit of $275,000 following the passing of one of our directors. For the first nine months of the 2007 fiscal year, net interest income was $71,000 less than last year because interest expense on deposits and borrowings increased more than interest income on loans and investments.
Margins are still narrowing, but it appears that we may be near the bottom. Recent moves by the Federal Reserve to lower short-term rates should improve margins going forward. However, there is no guarantee that rates will be reduced further as concerns over inflation still exist.