Mutual Holding Company for Gouverneur Bancorp, Inc. to Seek Member Approval for Dividend Waiver

GOUVERNEUR, N.Y., Oct. 17, 2016 (GLOBE NEWSWIRE) -- Gouverneur Bancorp, Inc. (the “Company”) (OTC Pink:GOVB) the holding company for Gouverneur Savings and Loan Association (the “Bank”), today announced that Cambray Mutual Holding Company (“Cambray MHC”), the mutual holding company that owns 58.99% of the Company’s outstanding common stock, will hold a special meeting of its members to vote on a proposal to waive Cambray MHC’s right to receive annual dividends of up to $0.34 per share that may be declared by the Company during the 12-month period following the member vote. All dividends on the Company’s common stock are declared at the discretion of the Company’s Board of Directors. The special meeting will be held on November 28, 2016.

Regulations of the Board of Governors of the Federal Reserve System prohibit the waiver of dividends by Cambray MHC unless the waiver has been approved by its members, consisting of depositors of the Bank. Under applicable regulations, each year that Cambray MHC proposes to waive the receipt of dividends it must solicit the vote of its members. Cambray MHC has solicited its members for approval of a dividend waiver once a year beginning in 2013. Holders of a deposit account as of the record date for one of those prior meetings of members, voted to obtain a 12 month waiver of the payment of dividends. As the 12-month period approved in November 2015 is expiring, Cambray MHC is soliciting members for obtaining approval of a waiver for an additional 12-month period.

There can be no assurance that the members will approve the dividend waiver or that the Federal Reserve Board will not object to the waiver even if it is approved by members at the special meeting. Over time, the failure to obtain this waiver could result in a reduction in the dividend paid to public shareholders.

Gouverneur Bancorp, Inc. is the holding company for Gouverneur Savings and Loan Association. Gouverneur Savings and Loan Association is a New York State-chartered savings and loan association that operates two full-service offices in New York.

This press release may contain statements that are forward-looking, as that term is defined by the Private Securities Litigation Act of 1995 or the Securities and Exchange Commission in its rules, regulations and releases. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. All forward-looking statements are based on current expectations regarding important risk factors including, but not limited to, real estate values, the impact of interest rates on financing, changes in general economic conditions, legislative and regulatory changes that adversely affect the business of the Company and the ability of Cambray MHC to waive dividends and changes in the securities markets. Accordingly, actual results may differ from those expressed in the forward-looking statements, and the making of such statements should not be regarded as a representation by the Company or any other person that results expressed therein will be achieved.

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

Source:Gouverneur Bancorp, Inc.