Gouverneur Bancorp, Inc.
Climate Impact & Sustainability Data (2022, 2023, 2024)
Reporting Period: 2022
Environmental Metrics
Climate Goals & Targets
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2023
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Rising interest rates impacting profitability and borrower repayment ability.
- Transition to new executive management.
- Risks associated with the acquisition of Citizens Bank of Cape Vincent.
- Potential deposit outflows due to events in the banking industry.
- Insufficient liquidity.
- Emphasis on residential mortgage loans exposing the company to lending risks.
- Environmental liability risk.
- Reduced municipal deposits.
- Inflation impacting business and customers.
- Worsening economic conditions.
- Depreciation in real estate values.
- High concentration of loans secured by real estate in the market area.
- Potential reliance on more expensive wholesale funding.
- Asset size and competition limiting growth and profitability.
- Operational risks due to reliance on technology.
- Threats to reputation.
- Changes in management's estimates and assumptions.
- Changes in accounting standards.
- Changes in laws and regulations and the cost of regulatory compliance.
Mitigation Strategies
- Managing interest-rate-sensitive assets and liabilities.
- Working with a third-party executive search firm to find a permanent replacement for the CEO.
- Integrating Citizens Bank of Cape Vincent's operations.
- Maintaining sufficient liquidity ($51.2 million in available liquidity with the Federal Home Loan Bank of New York and $10.4 million in cash and cash equivalents).
- Conservative exposure limits and underwriting, extensive documentation and collection standards.
- Performing an environmental review before initiating any foreclosure action on non-residential real property.
- Continuing to solicit municipal deposits.
- Diversifying loan portfolio.
- Investing in information technology infrastructure.
- Establishing policies and procedures to prevent or limit the impact of system failures, interruptions and security breaches.
- Outsourcing data processing requirements to third-party providers.
- Maintaining a strong liquidity position.
- Improving technology platform.