GOVB · Gouverneur Bancorp, Inc.

Gouverneur Bancorp's Q2 FY2026 results showed improved profitability with net income doubling year-over-year to $217,000, driven by higher net interest income of $1.8 million (up 5.8%) from increased loan interest income amid higher loan volumes and repricing, despite lower securities income. Interest expense declined 3.6% to $376,000, benefiting from lower retail deposit rates following federal funds rate cuts, though partially offset by new FHLBNY borrowing costs. Net interest margin expanded to 4.22% from 4.06%, reflecting stronger earning asset yields. Non-interest income rose 8.7% to $226,000 on higher service charges and securities gains, while expenses dipped slightly to $1.8 million due to lower salaries from staffing changes. For the six-month period, net income more than doubled, boosted by a $103,000 bank-owned life insurance death benefit. Balance sheet remained stable with total assets at $198.3 million; deposits grew seasonally to $160.0 million while FHLB advances fell to $1.0 million from $7.0 million. Equity rose to $32.7 million, supporting a book value of $30.86 per share after dividends and share repurchases. Provision for credit losses was minimal at $5,000 quarterly. No forward guidance provided.