Gouverneur Bancorp, Inc. Announces Receipt of Regulatory Approvals for Acquisition of Citizens Bank of Cape Vincent and Expected Correction of Fiscal 2021 Financial Statements to Increase Net Income

Rhea-AI Summary

Gouverneur Bancorp, Inc. (OTC Pink: GOVB) announced the acquisition of Citizens Bank of Cape Vincent, expected to close on September 16, 2022, following regulatory approvals. This merger aims to enhance Gouverneur Savings and Loan Association's market presence. Additionally, the company identified an understatement of approximately $200,000 in net income for the fiscal year ending September 30, 2021, due to unrealized deferred tax benefits, which will be corrected in the forthcoming audited financial statements.

Positive

• Acquisition of Citizens Bank of Cape Vincent expected to enhance market presence.
• Regulatory approvals received, facilitating the merger.

Negative

• Understatement of net income by approximately $200,000 for FY 2021 due to tax benefits.

GOUVERNEUR, N.Y., Sept. 06, 2022 (GLOBE NEWSWIRE) -- Cambray Mutual Holding Company, Gouverneur Bancorp, Inc. (the “Company”) and Gouverneur Savings and Loan Association (collectively, “Gouverneur”) today announced that Gouverneur and Citizens Bank of Cape Vincent (“CBCV”) have received the requisite regulatory approvals necessary to complete Gouverneur’s acquisition of CBCV and merger of CBCV with and into Gouverneur Savings and Loan Association. The transaction is expected to close on September 16, 2022 and is subject to customary closing conditions.

In addition, unrelated to its pending acquisition of CBCV, the Company also announced today that, in anticipation of the preparation of its financial statements for the fiscal year ending September 30, 2022, it has determined that its financial statements for the fiscal year ended September 30, 2021 understated net income by approximately $200,000 for the fiscal year ended September 30, 2021 as a result of unrealized deferred tax benefits. The Company expects to correct the error in connection with the preparation and issuance of the Company’s audited financial statements for the fiscal year ending September 30, 2022.

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 neither Gouverneur nor CBCV undertakes 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 meet closing conditions to the on the expected terms and schedule; delay in closing the merger; 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 is the acquisition involving GOVB about?

Gouverneur Bancorp is acquiring Citizens Bank of Cape Vincent, with a merger into Gouverneur Savings and Loan Association.

When is the acquisition of Citizens Bank of Cape Vincent expected to close?

The acquisition is expected to close on September 16, 2022.

What financial correction did Gouverneur Bancorp announce?

The company announced a correction for approximately $200,000 in understated net income for FY 2021, attributed to unrealized deferred tax benefits.

What impact will the acquisition have on Gouverneur Bancorp's market position?

The acquisition is expected to enhance Gouverneur's market presence and financial services capabilities.