Gouverneur Bancorp, Inc.

Gouverneur Bancorp, Inc. is a savings and loan holding company organized in March 1999. The company's primary business is the ownership of its wholly-owned subsidiary, Gouverneur Savings and Loan Association (the "Bank"). As of September 30, 2001, Gouverneur Bancorp, Inc.'s assets primarily consisted of all the outstanding capital stock of the Bank and $550,000 in cash, which represented a portion of the net proceeds from its stock offering completed on March 23, 1999. The company's parent mutual holding company, Cambray Mutual Holding Company, held 1,311,222 shares, or 57.6%, of Gouverneur Bancorp, Inc.'s common stock at September 30, 2001. Other shareholders held 965,537 shares, or 42.4%, of the issued and outstanding common stock. Gouverneur Bancorp, Inc. is registered with the Office of Thrift Supervision and operates under federal banking laws and regulations. The company's business involves collecting deposits from the general public within its market area. These deposits are primarily invested in loans, debt obligations issued by the U.S. Government and its agencies, and mortgage-backed securities. The loan portfolio mainly consists of mortgage loans secured by one-to-four family residences. Gouverneur Bancorp, Inc. has also diversified its lending to include 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 2001 fiscal year. Real estate loans grew by $1.4 million in fiscal year 2001, increasing their percentage of total loans by 0.42% from 77.60% to 78.02% at September 30, 2001. The company's revenues are principally derived from interest on loans and securities.