Gouverneur Bancorp, Inc.

Gouverneur Bancorp, Inc. is a savings and loan holding company organized in March 1999. Its primary business involves owning Gouverneur Savings and Loan Association, its wholly-owned subsidiary, referred to as the Bank. As of September 30, 2001, the Company's assets primarily consisted of all the outstanding capital stock of the Bank and $550,000 in cash, which came from its stock offering completed on March 23, 1999. The Company's business operations focus on collecting deposits from the general public within its market area. These deposits are then invested primarily in loans, debt obligations issued by the U.S. Government and its agencies, and mortgage-backed securities. The loan portfolio mainly comprises mortgage loans secured by one-to-four family residences. Gouverneur Bancorp, Inc. has also diversified its lending activities by increasing its volume of automobile loans and both real estate and non-real estate commercial loans. While the emphasis on non-real estate lending had accelerated in previous years, it decreased slightly in the most recent year. Real estate loans grew by $1.4 million in the 2001 fiscal year, and their percentage of total loans increased by 0.42%, from 77.60% to 78.02% at September 30, 2001. The Company generates its revenues principally from interest earned on loans and securities. As of September 30, 2001, Cambray Mutual Holding Company, the Company's parent mutual holding company, held 1,311,222 shares, representing 57.6% of the Company's common stock. Other shareholders held 965,537 shares, or 42.4% of the issued and outstanding common stock. The Company is registered with the Office of Thrift Supervision and operates under federal banking laws and regulations.