Executive Summary

Q1 FY2025 net income was $0.16M and EPS was $0.15, up from $0.12M and $0.11 YoY; non-interest income rose meaningfully due to a tax-related refund while net interest spread compressed as deposit rates repriced faster than loans .
No formal guidance or Wall Street consensus estimates available; the bank did declare $0.08/share dividends in the quarter and entered Q1 with no FHLB advances or brokered deposits, supporting a conservative liquidity posture .
Sequentially vs Q4 FY2024, EPS improved to $0.15 from $0.13, with lower non-interest expense and higher non-interest income offsetting higher interest expense on deposits .
Capital return and structural actions continue: a 5% share repurchase authorization launched Dec 11, 2024 and dividends maintained; these are potential stock catalysts alongside improving non-interest income stability and steady NIM despite rate pressures .

What Went Well and What Went Wrong

What Went Well

Non-interest income rose $97K YoY to $244K, aided by a tax-related refund and much smaller unrealized losses on FHLBNY swap agreements (“$9K” vs “$143K” YoY) .
EPS increased to $0.15 from $0.11 YoY and ROAA/ROAE improved to 0.32%/1.97% from 0.23%/1.61%, showing better bottom-line leverage despite spread pressure .
Liquidity and funding: “The Bank currently holds no Federal Home Loan Bank (FHLB) advances or brokered deposits,” avoiding wholesale funding reliance in a volatile rate backdrop .

Management quote-equivalent: “Interest income on loans increased… due to an increase in market rates resulting in higher interest rates on loan originations and repricing,” highlighting asset yield tailwinds .

What Went Wrong

Net interest spread compressed to 3.78% from 3.84% YoY as deposit rates rose faster than loan yields during fiscal 2024, pressuring core NII .
Interest expense on deposits rose $158K YoY to $401K, reflecting higher rates paid to retain funding, which more than offset modest loan yield improvement .
Shareholders’ equity fell 3.12% sequentially to $31.7M, driven by a $1.1M AOCI decline from securities portfolio mark-to-market, partially offsetting earnings accretion .

Financial Results

Income Statement – YoY Comparison (Q1 FY2024 vs Q1 FY2025)

Metric	Q1 FY2024	Q1 FY2025
Interest Income ($USD Thousands)	$2,128	$2,166
Interest Expense ($USD Thousands)	$324	$401
Net Interest Income ($USD Thousands)	$1,804	$1,765
Provision for Credit Loss ($USD Thousands)	$70	$15
Non-interest Income ($USD Thousands)	$147	$244
Non-interest Expense ($USD Thousands)	$1,780	$1,835
Pre-tax Income ($USD Thousands)	$101	$159
Income Tax Benefit ($USD Thousands)	$(17)	$(1)
Net Income ($USD Thousands)	$118	$160
Basic & Diluted EPS ($USD)	$0.11	$0.15
ROAA (%)	0.23%	0.32%
ROAE (%)	1.61%	1.97%
Net Interest Spread (%)	3.84%	3.78%

Income Statement – Sequential Comparison (Q4 FY2024 vs Q1 FY2025)

Metric	Q4 FY2024	Q1 FY2025
Interest Income ($USD Thousands)	$2,148	$2,166
Interest Expense ($USD Thousands)	$370	$401
Net Interest Income ($USD Thousands)	$1,778	$1,765
Provision for Credit Loss ($USD Thousands)	$0	$15
Non-interest Income ($USD Thousands)	$245	$244
Non-interest Expense ($USD Thousands)	$1,910	$1,835
Net Income ($USD Thousands)	$136	$160
Basic & Diluted EPS ($USD)	$0.13	$0.15
Net Interest Spread (%)	3.84%	3.78%

Balance Sheet KPIs – Sequential (9/30/2024 vs 12/31/2024)

Metric	9/30/2024	12/31/2024
Total Assets ($USD Thousands)	$197,260	$196,776
Deposits ($USD Thousands)	$159,902	$159,672
Securities AFS ($USD Thousands)	$45,348	$43,534
Loans Receivable, Net ($USD Thousands)	$124,257	$124,927
Shareholders’ Equity ($USD Thousands)	$32,765	$31,743
Book Value per Share ($USD)	$29.59	$28.68

Additional Quarterly Context

Metric	Q2 FY2025	Q3 FY2025
Net Income ($USD Thousands)	$118	$217
EPS ($USD)	$0.11	$0.22
Net Interest Margin (%)	4.06%	4.15%
Net Interest Spread (%)	3.87%	3.98%
Non-interest Income ($USD Thousands)	$208	$256

Segment breakdown: Not applicable (no reportable segments disclosed) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per Share ($USD)	Q1 FY2025	N/A	Declared $0.08/share; total $89K in quarter	Maintained/paid
Share Repurchase Authorization	Effective Dec 11, 2024	N/A	Up to 55,356 shares (5% of outstanding) through Dec 10, 2025	New program
Revenue/Margins/OpEx/Tax Rate	FY2025	Not provided	Not provided	N/A

No formal quantitative guidance on revenue, margins, OpEx, OI&E, or tax rate was issued in Q1 FY2025 .

Earnings Call Themes & Trends

No earnings call transcript was available for Q1 FY2025 (none found in our document set) [ListDocuments search returned 0 earnings-call-transcript docs]. Trends below reflect press releases:

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q1 FY2025)	Trend
Interest rate environment & deposit costs	Q-2 (FY2024 Q3): Not available in our set; Q-1 (FY2024 Q4): Spread declined YoY to 3.84% as deposit rates rose faster than loans	Spread 3.78%; deposit interest expense +$158K YoY	Continued pressure from higher deposit rates
Loan yields and origination repricing	Q-1: Loan income improving amid rate repricing	Loan interest income +$91K YoY from repricing/higher rates	Improving asset yields
Non-interest income volatility (swaps)	Q-1: Meaningful unrealized swap losses in FY2024; non-GAAP reconciliation provided	Unrealized swap loss only $9K vs $143K YoY; plus tax-related refund	Reduced headwind; stabilizing
Operating expenses	Q-1: Expenses elevated; some data processing/occupancy trends noted later ; Q2 showed decreases in payroll/processing	Non-interest expense up modestly YoY to $1.835M	Mixed; down sequentially vs Q4, up YoY
Funding/liquidity posture	Q-1: No FHLB advances at FY2024 YE	No FHLB advances or brokered deposits	Conservative/liquidity discipline maintained
Capital return	Q-1: Post-second-step conversion, book value $29.59; dividend set; buyback authorized Dec 2024	Dividend $0.08/share declared; buyback in place	Ongoing capital return stance

Management Commentary

“Net interest spread… was 3.78%… as interest rates on interest-bearing deposits increased faster than the interest rates on loans during fiscal 2024,” framing spread compression dynamics .
“Interest income on loans increased $91,000… due to an increase in market rates resulting in higher interest rates on loan originations and repricing,” underscoring asset yield benefit .
Non-interest income drivers: “Other non-interest income increased $52,000… primarily due to the recognition of additional income from a tax-related refund,” and smaller swap losses vs prior year .
Capital and funding discipline: “The Bank currently holds no Federal Home Loan Bank (FHLB) advances or brokered deposits,” emphasizing a conservative funding profile .

Q&A Highlights

No Q1 FY2025 earnings call transcript was found; therefore no Q&A details, guidance clarifications, or tone observations are available in our document set [ListDocuments earnings-call-transcript returned 0].

Estimates Context

Wall Street consensus via S&P Global for GOVB Q1 FY2025 EPS and revenue was unavailable in our data pull; consensus coverage appears limited for this micro-cap name. Values retrieved from S&P Global would be shown here if available.*

Where estimates may need to adjust: With EPS improving YoY and non-interest income stabilizing, estimates (if any exist) would likely reflect upward revisions to near-term profitability and NIM resilience seen in subsequent quarters (Q2/Q3), but funding cost trajectory remains the swing factor .

Key Takeaways for Investors

Spread compression headwind persists, but EPS improved to $0.15 and ROAA/ROAE ticked up, supported by better non-interest income and modest loan yield expansion .
Funding discipline—no FHLB advances or brokered deposits—reduces wholesale rate risk; deposit costs remain the key variable to watch for NII trajectory .
AOCI sensitivity to securities marks reduced equity by ~$1.1M sequentially; portfolio duration and rate moves will continue to affect book value per share .
Capital return actions (5% buyback authorization; $0.08/share dividend in Q1) provide shareholder support and potential stock catalysts amid modest earnings growth .
Subsequent quarters showed steady/improving NIM (4.06% in Q2; 4.15% in Q3) and rising EPS ($0.11 in Q2; $0.22 in Q3), suggesting positive momentum beyond Q1 .
Watch for sustained non-interest income stability: lower swap losses and tax-related refunds boosted Q1; recurring fee income and BOLI remain supports .
Near-term trading: sensitivity to deposit repricing and rate expectations; medium-term thesis hinges on continued loan yield repricing, disciplined expenses, and stable/declining funding costs to protect spread/NIM .

Gouverneur Bancorp, Inc./MD/ (GOVB)·Q1 2025 Earnings Summary