Gouverneur Bancorp earnings swung to a loss in the fourth quarter and full fiscal year ended September 30, 2026, after the bank holding company sold securities and loan interests as part of a balance-sheet restructuring.
Key Takeaways
- The company reported a $3.1 million quarterly net loss, compared with a $238,000 profit a year earlier.
- The securities and loan participation sales each generated a pretax loss of approximately $2.0 million.
- Adjusted net income, a non-GAAP measure, was $241,000 for the quarter and $984,000 for the fiscal year.
Gouverneur Bancorp earnings and adjustments
The fourth-quarter loss was $2.97 per basic and diluted share, compared with earnings of $0.24 per share a year earlier. For the full fiscal year, Gouverneur reported a $2.3 million loss, or $2.25 per share, versus net income of $733,000, or $0.72 per share, in fiscal 2025.
The adjusted figures exclude the effects of the asset-sale losses, accelerated recognition of certain loan fees and charges associated with previously identified overdraft balances, along with related tax effects. Adjusted net income was $0.23 per share for the quarter and $0.95 per share for the year; it supplements rather than replaces the reported results.
The company said its financial metrics were preliminary and unaudited.
| Item | Details |
|---|---|
| Total assets | $191.7 million at September 30, 2026, versus $198.5 million a year earlier |
| Deposits | $155.6 million at September 30, 2026, versus $154.8 million a year earlier |
| Federal Home Loan Bank of New York advances | None outstanding at September 30, 2026, versus $7.0 million a year earlier |
Asset sales reshape the balance sheet
Gouverneur sold approximately $24.0 million of available-for-sale securities and a 95% participation interest in a portfolio of lower-yielding loans. The participation sale covered approximately $18.7 million in principal and generated about $16.4 million in net proceeds. The company retained the remaining 5% interest and continues to service the loans.
In its July restructuring announcement, the company said the loan sale was still in progress. The completed sales formed part of a strategy intended to reduce funding costs and improve asset yields.
Proceeds were used to repay higher-cost borrowings and reinvest approximately $11.6 million in higher-yielding, shorter-duration securities. The company also invested about $9.0 million in short-term US Treasuries.
Interest margin and funding
The fourth-quarter net interest margin widened to 4.66% from 4.12% a year earlier. Gouverneur attributed the increase primarily to higher yields on earning assets, loan production and repricing, and lower funding costs.
Management expects the restructuring’s financial benefits to emerge progressively as remaining proceeds are redeployed. That expectation is not a reported result.
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