Gouverneur Bancorp Reports Asset Growth and Increased Net Income for June 30, 2026

Gouverneur Bancorp, Inc. reported a slight increase in total assets, rising to $198.7 million as of June 30, 2026, compared to $198.5 million at the end of the previous fiscal year. This growth was primarily driven by a $1.7 million increase in cash and cash equivalents and a $3.8 million rise in net loans receivable, which reached $135.3 million. However, this was partially offset by a $5.7 million decrease in securities available for sale, which totaled $35.2 million. The company’s total deposits also saw a modest increase of $0.9 million, or 0.58%, to $155.7 million, attributed mainly to a rise in time deposits.

In terms of profitability, net income for the three months ended June 30, 2026, was $239,000, up from $217,000 in the same period last year. This increase was largely due to a $61,000 rise in net interest income, which totaled $1.9 million, and a $30,000 gain from the sale of a foreclosed property. For the nine-month period, net income reached $743,000, compared to $495,000 in the prior year, bolstered by a $103,000 gain from a bank-owned life insurance death benefit and a $226,000 increase in net interest income.

The company’s strategic developments included the ongoing integration of GS&L Municipal Bank, which was established to manage municipal deposits following the acquisition of Citizens Bank of Cape Vincent in September 2022. Additionally, Gouverneur Bancorp is in the process of optimizing its balance sheet by selling lower-yielding loans and reinvesting in higher-yielding securities, which is expected to enhance net interest margins and earnings per share in the future.

Operationally, the company reported a total of $1.4 million in non-performing loans as of June 30, 2026, an increase from $695,000 at the end of the previous fiscal year. This included $1.3 million in non-performing residential mortgage loans. The allowance for credit losses was maintained at $1.1 million, reflecting management's assessment of inherent credit losses in the loan portfolio. The company continues to monitor its loan portfolio closely, with no loans modified for borrowers experiencing financial difficulties during the nine months ended June 30, 2026.

Looking ahead, Gouverneur Bancorp anticipates that its strategic balance sheet optimization will lead to improved financial performance, with management projecting an increase in net interest margin by approximately 51 basis points and an annual earnings per share increase of about $0.58 once fully implemented. The company remains well-capitalized, exceeding all regulatory capital requirements, and is positioned to continue evaluating opportunities for share repurchases and dividend payments as market conditions allow.