Gouverneur Bancorp, Inc. reported a net loss of $2.3 million, or $2.25 per share, for the fiscal year ended September 30, 2026. This compares to net income of $733,000, or $0.72 per share, for the prior fiscal year. For the fourth quarter ended September 30, 2026, the company reported a net loss of $3.1 million, or $2.97 per share, compared to net income of $238,000, or $0.24 per share, in the same quarter of the previous year.
The company noted that the decline in earnings was driven by a strategic balance sheet restructuring executed during the fourth quarter. This initiative included the sale of approximately $24.0 million of available-for-sale investment securities, resulting in a pretax loss of about $2.0 million. Additionally, the company sold a 95% participation interest in a portfolio of lower-yielding loans with a principal balance of approximately $18.7 million, which also resulted in a pretax loss of about $2.0 million. Proceeds from these transactions were used to repay higher-cost borrowings and reinvest approximately $11.6 million in higher-yielding securities.
Despite the restructuring, the company reported an adjusted net income of $984,000, or $0.95 per share, for the fiscal year ended September 30, 2026. Adjusted net income for the fourth quarter was $241,000, or $0.23 per share. The company attributed the adjusted results to the exclusion of losses recognized on the sales of securities and loan participations, as well as certain charges related to overdraft balances.
On the balance sheet, total assets decreased by $6.8 million to $191.7 million as of September 30, 2026. Cash and cash equivalents increased to $11.9 million, while securities available-for-sale decreased by $8.3 million to $32.6 million. Net loans decreased by $6.4 million to $125.1 million. Shareholders’ equity decreased by 6.50% to $30.0 million. The company declared cumulative dividends of $0.18 per share totaling $191,000 during fiscal year 2026.
Non-interest income for the year ended September 30, 2026, decreased to a loss of $3.0 million from income of $1.1 million in fiscal 2025, primarily due to the pretax losses associated with the restructuring. Total interest income increased by 5.02% to $9.1 million for the fiscal year, while total interest expense remained relatively unchanged at $1.5 million. The company’s net interest margin was 4.29% for the fiscal year ended September 30, 2026.
