Gouverneur Bancorp, Inc. Announces Completion of Citizens Bank of Cape Vincent Acquisition

Rhea-AI Summary

On September 16, 2022, Gouverneur Bancorp, Inc. announced the completion of its acquisition of Citizens Bank of Cape Vincent (CBCV). As a result of the merger, each CBCV stockholder is entitled to receive $1,056.11 in cash per share. This strategic move expands Gouverneur's footprint in Jefferson County, adding branches in Cape Vincent, Chaumont, and LaFargeville. With total assets of $130.2 million and total deposits of $100.7 million as of June 30, 2022, Gouverneur aims to enhance its service offerings and community presence.

Positive

• Acquisition expands Gouverneur's presence in Jefferson County and Lake Ontario communities.
• Integration of resources expected to enhance customer service and operational efficiency.
• Total assets of $130.2 million and deposits of $100.7 million indicate strong financial position.

Negative

• Integration challenges could impact operational efficiency post-merger.
• Market uncertainties and competition may affect the success of the acquisition.

GOUVERNEUR, N.Y., Sept. 19, 2022 (GLOBE NEWSWIRE) -- Cambray Mutual Holding Company, Gouverneur Bancorp, Inc. (the “Company”) and Gouverneur Savings and Loan Association (collectively, “Gouverneur”) today announced that, effective as of September 16, 2022, Gouverneur has completed its acquisition of Citizens Bank of Cape Vincent (“CBCV”). At the effective time of the merger, CBCV was merged with and into Gouverneur Savings and Loan Association and each CBCV stockholder became entitled to receive $1,056.11 in cash for each share of CBCV common stock that they held at the effective time of the merger.

“We are excited to expand our presence in Jefferson County and the Lake Ontario, St. Lawrence River communities with the addition of branches in Cape Vincent, Chaumont and LaFargeville. Gouverneur Savings & Loan Association has grown to five offices covering two counties to better serve our communities, and we welcome the customers and employees of Citizens Bank of Cape Vincent to the Gouverneur family. We look forward to bringing together the resources of both banks for the benefit of our customers, employees and communities going forward,” said Faye C. Waterman, President and Chief Executive Officer of Gouverneur.

Kilpatrick Townsend & Stockton LLP served as legal counsel to Gouverneur in connection with the transaction. Piper Sandler & Co. served as financial advisor to CBCV and Luse Gorman, PC served as legal counsel to CBCV in connection with the transaction.

About Gouverneur Bancorp, Inc.

Gouverneur Bancorp, Inc. (OTC Pink: GOVB) 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, 2022, the Company had total assets of $130.2 million, total deposits of $100.7 million and total stockholders’ equity of $25.5 million.

Special Note Concerning Forward-Looking Statements

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. All statements in this document, including forward-looking statements, speak only as of the date they are made, and Gouverneur does not undertake any obligation to update any statement in light of new information or future events.

A number of factors, many of which are beyond our ability to control or predict, could cause actual results to differ materially from forward-looking statements. These factors include, among others, the following: the ability to successfully integrate acquired entities and realize expected cost savings associated with completed mergers and acquisitions; 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 size, quality and composition of the loan or investment portfolios; demand for loan products; deposit flows; competition; demand for financial services in our market area; changes in real estate market values in our market area; and changes in relevant accounting principles and guidelines. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.

Contact:
Faye C. Waterman
President and Chief Executive Officer
Gouverneur Bancorp, Inc.
315.287.2600

FAQ

What did Gouverneur Bancorp acquire?

Gouverneur Bancorp acquired Citizens Bank of Cape Vincent (CBCV) effective September 16, 2022.

What compensation do CBCV shareholders receive?

CBCV shareholders are entitled to receive $1,056.11 in cash for each share of CBCV common stock.

Why did Gouverneur Bancorp pursue this acquisition?

The acquisition aims to expand Gouverneur's presence and enhance service offerings in the Lake Ontario and St. Lawrence River communities.

What is Gouverneur Bancorp's financial position?

As of June 30, 2022, Gouverneur Bancorp reported total assets of $130.2 million and total deposits of $100.7 million.

What could be potential risks after the acquisition?

Potential risks include integration challenges and market uncertainties that might impact operational efficiency and competitive positioning.