Charles C. Van Vleet Jr. - President Gouverneur Federal Savings

Welcome to Gouverneur Savings

On behalf of the Board of Directors, Officers and employees of Gouverneur Bancorp, Inc. and its subsidiary, Gouverneur Savings & Loan Association, I am pleased to welcome you to our online web site.

Charles C. Van Vleet Jr. President & CEO

GOUVERNEUR, N.Y., Dec. 3, 2010: Charles C. Van Vleet Jr., President and Chief Executive Officer of Gouverneur Bancorp, Inc. (OTC Bulletin Board:GOVB.ob - News) (the "Company") holding company for Gouverneur Savings and Loan Association (the "Bank"), announced today results for its fiscal year ended September 30, 2010.

Net income for the fiscal year ended September 30, 2010 increased 28.8% to $1,663,000, or $0.74 per diluted share, compared to $1,291,000, or $0.56 per diluted share, in fiscal 2009. The return on average assets and average equity increased to 1.14% and 7.46%, respectively, for the year ended September 30, 2010 from 0.93% and 6.04%, respectively, for the year ended September 30, 2009. Total assets grew by $3.2 million, or 2.2%, from $143.7 million at September 30, 2009 to $146.9 million at September 30, 2010, while net loans increased $0.3 million, or 0.26%, from $114.1 million to $114.4 million over the same period.

Commenting on the results for the year, Mr. Van Vleet said, "We are pleased with our results for the 2010 fiscal year. The Bank continues to be profitable, has sound credit quality, and has not experienced any shrinkage in the loan portfolio. We continue to operate as a community bank by serving the needs of our local customers. Being a community bank and working with the people of the surrounding communities in this economic downturn has been a benefit for all. The community bank model continues to show its strength in this declining economic environment, unlike the 'too big to fail' models. However, as we look towards a future with an uncertain economic outlook and new regulatory environment, we expect to see additional strain being placed on the Bank's profitability."

Gouverneur Savings and Loan remains well-capitalized with a core capital ratio of 15.6%, an increase of 0.60% from 2009. Strong asset composition with non-performing assets represented only 1.13% of total assets, slightly higher than last year's 0.99%.

In fiscal 2010, interest income increased $223,000, or 2.9%, from $7,811,000 to $8,034,000, while interest expense decreased $789,000, or 27.2%, from $2,902,000 to $2,113,000. Interest spread, the difference between the rate earned on interest-earning assets and the rate paid on interest-bearing liabilities, was 4.11% in fiscal 2010 and 3.38% in fiscal 2009.

Non-interest income increased $59,000 from $865,000 in fiscal year 2009 to $924,000 in fiscal 2010. Increases in the value of the underlying investments in the deferred directors fees plan resulted in the gain.

Although non-performing loans increased in fiscal 2010, the quality of our loan portfolio has remained strong. Net loans grew $0.3 million in fiscal 2010 as compared to growth of $3.6 million in fiscal 2009. We made a $205,000 provision for loan losses in fiscal 2010 and a $60,000 provision in the 2009 fiscal year. Non-performing loans were $1,140,000 at September 30, 2010, compared to $750,000 at September 30, 2009. Net charge-offs were $153,000 for the year ended September 30, 2010. The allowance for loan losses was $849,000, or 0.74% of total loans outstanding at September 30, 2010 as compared to $797,000, or 0.70% at September 30, 2009.