Gouverneur Bancorp, Inc. Announces Termination of Employee Stock Ownership Plan

GOUVERNEUR, N.Y., April 07, 2017 -- Gouverneur Bancorp, Inc. (OTC Pink:GOVB), the holding company for Gouverneur Savings & Loan Association (the “Bank”), announced today that the Bank has terminated its employee stock ownership plan (the “Plan”) effective December 31, 2016.  In connection with the termination of the Plan, the Company will incur an expense of $11,000 and the assets of the Plan will be distributed to participants in the Plan. The Company anticipates that the termination of the Plan will provide participants with greater control over their retirement funds, including the ability to diversify their account balances, and will result in an annual cost savings of approximately $19,000 for the Company as a result of eliminated administrative and valuation fees and semi-annual dividend payments.  The Company does not anticipate that the termination of the Plan and the repurchase of the shares of Company common stock will adversely impact the Bank’s capital ratios or liquidity position.

The Company, which is headquartered in Gouverneur, New York, is the holding company for Gouverneur Savings and Loan Association.  Founded in 1892, the Bank is a New York State chartered savings and loan association offering a variety of banking products and services to individuals and businesses in its primary market area in southern St. Lawrence, Lewis and Jefferson Counties in New York State.

Statements in this news release contain forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs of management as well as assumptions made using information currently available to management. Since these statements reflect the views of management concerning future events, these statements involve risks, uncertainties and assumptions. These risks and uncertainties include among others, the impact of changes in market interest rates and general economic conditions, changes in government regulations, changes in accounting principles and the quality or composition of the loan and investment portfolios. Therefore, actual future results may differ significantly from results discussed in the forward-looking statements.

Contact:
Charles C. Van Vleet, Jr.
President and Chief Executive Officer
(315) 287-2600