Yes. Your temperatures are to be expected.
First off, bear in mind the consumer orientated overclocking software for CPU's are fairly limited in terms of parameters it will edit. Ideally you want to edit your CPU frequency via your BIOS, as it will be much much more stable.
In your instance, please bear in mind the fact that a 'branded' piece of software has to be as reliable as possible.
->Or else when it crashes due to pushing the card too high, it's "Damn that <brand name> peice of <swear word> software!!!" Which no company would let slide.
Now, in order to achieve this reliability they push up the voltage for a very inefficient but more stable OC.
To answer your question: That's fine and that's what you'd expect from the 'Auto' mode.
To lower your temps I'd advise BIOS level overclocking, and specifically tweak your voltage settings.
However, 3.1 to 3.9 is nothing to sniff at, and I am very confident that if you're happy with the performance you are not going to see any degradation in terms of life or performance over the life span of the CPU due to the high running temperature.
Edit: For the record, I am running a 960T. Stock 4x core 3GHZ CPU running at 6x core 4GHZ stable as a rock, even under full load with Prime95. I've been running this config for 2 years with no hassle whatsoever.