Executive Summary

Fiscal Q2 2025 EPS was $0.11 and net income was $118k, up from $0.10 and $102k in Q2 2024; sequentially EPS fell vs Q1 2025 ($0.15) as deposit funding costs remained elevated .
Net interest margin held steady at 4.06% while net interest spread compressed slightly to 3.87%; revenue (NII + non‑interest income) was ~$1.96M vs ~$2.00M in Q2 2024, reflecting lower securities income and higher deposit interest expense .
Operating discipline: non‑interest expense declined $66k YoY in the quarter (staff retirements, lower data processing/occupancy), partially offset by public company costs; equity fell on AOCI from securities marks and buybacks; book value per share was $29.63 .
Dividends remain a shareholder return lever; the board declared a semi‑annual $0.08 dividend payable May 19, 2025, marking a second consecutive semi‑annual dividend post conversion .

What Went Well and What Went Wrong

What Went Well

Net interest margin resilience: “Net interest margin…was 4.06% for the quarters ended March 31, 2025 and 2024…remained steady due to a slight decrease in average interest‑earning assets” .
Deposit growth and funding mix: Deposits increased $1.9M to $161.8M; the Bank held no FHLB advances or brokered deposits, de‑risking wholesale funding exposure .
Non‑interest income tailwinds: Other non‑interest income rose with a tax‑related refund; unrealized swap losses were minimal YTD ($9k vs $181k prior‑year YTD), easing volatility from hedges .

What Went Wrong

Funding cost pressure: Total interest expense rose 15.7% YoY; deposit interest expense increased $98k YoY in the quarter as deposit rates repriced higher .
Lower securities income: Total interest income fell $8k YoY on reduced taxable/non‑taxable securities income, partly offset by loan interest growth .
Equity and AOCI drag: Shareholders’ equity decreased 4.3% from Sept. 30, 2024, primarily due to a ~$1.0M AOCI decline on the securities portfolio and share repurchases .

Financial Results

Quarterly trend (Q4 2024 → Q1 2025 → Q2 2025)

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue (NII + Non-interest; $USD)	$2,023k	$2,009k	$1,955k
Net Interest Income ($USD)	$1,778k	$1,765k	$1,747k
Interest Income ($USD)	$2,148k	$2,166k	$2,137k
Interest Expense ($USD)	$370k	$401k	$390k
Non-interest Income ($USD)	$245k	$244k	$208k
Non-interest Expense ($USD)	$1,910k	$1,835k	$1,853k
EPS ($USD)	$0.13	$0.15	$0.11
Net Interest Spread (%)	3.84%	3.78%	3.87%

Year-over-year comparison (Q2 2024 → Q2 2025)

Metric	Q2 2024	Q2 2025
Revenue (NII + Non-interest; $USD)	$2,004k	$1,955k
Net Interest Income ($USD)	$1,808k	$1,747k
Interest Income ($USD)	$2,145k	$2,137k
Interest Expense ($USD)	$337k	$390k
Non-interest Income ($USD)	$196k	$208k
Non-interest Expense ($USD)	$1,919k	$1,853k
EPS ($USD)	$0.10	$0.11
Net Interest Margin (%)	4.06%	4.06%

KPIs and balance sheet

KPI	Q4 2024	Q1 2025	Q2 2025
ROAA (Annualized, %)	0.27%	0.32%	0.24%
ROAE (Annualized, %)	1.68%	1.97%	1.52%
Deposits ($USD)	$159.9M	$159.7M	$161.8M
Total Assets ($USD)	$197.3M	$196.8M	$197.4M
Net Loans ($USD)	$124.3M	$124.9M	$125.4M
Securities AFS ($USD)	$45.3M	$43.5M	$42.8M
Book Value/Share ($USD)	$29.59	$28.68	$29.63

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Formal financial guidance (Revenue, margins, OpEx, OI&E, tax rate)	FY2025	None disclosed	None disclosed	Maintained (no guidance)
Dividend per share ($USD)	Semi-annual (May 2025 payment)	$0.08 (Dec 2024 semi-annual)	$0.08 declared Apr 21, 2025	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Interest rate environment & funding costs	Spread compressed as deposit rates rose faster than loans; deposit interest expense up; swaps unrealized losses sizeable in FY2024	Spread at 3.87%; deposit interest expense +15.7% YoY but swaps loss minimal YTD	Stabilizing spread; funding cost pressure persists but hedging volatility reduced
Liquidity & wholesale funding	No FHLB advances at Q4 and Q1	No FHLB advances or brokered deposits	Conservative funding profile maintained
Regulatory/legal/macro references	Forward-looking statements cite tariffs/macro, regulatory changes, cybersecurity	Similar risk factors reiterated (tariffs, sanctions, macro, IT security)	Steady emphasis on macro/regulatory vigilance
Technology/hedging (swaps)	FY2024 unrealized loss $240k; non-GAAP reconciliation provided	YTD unrealized loss $9k vs $181k prior-year YTD	Mark-to-market headwind materially lower YTD
Operational efficiency	Non-interest expense elevated but stable YoY; Q1 non-interest expense $1,835k	Non-interest expense down $66k YoY in Q2; staff retirements contributed	Incremental efficiency improvements

Note: No Q2 2025 earnings call transcript was available in the document set; thus themes reflect disclosures across press releases and 8‑K filings.

Management Commentary

“Net interest margin…was 4.06% for the quarters ended March 31, 2025 and 2024…[and] remained steady due to a slight decrease in average interest‑earning assets.”
“Deposits increased $1.9 million…The Bank currently holds no Federal Home Loan Bank (FHLB) advances or brokered deposits.”
“Other non‑interest income increased…primarily due to the recognition of additional income from a tax‑related refund.”
“Interest expense on deposits increased…resulting from higher deposit rates from the respective prior year periods.”
“Shareholders’ equity…decrease[d]…primarily a result of a $1.0 million decrease to the market value of the securities portfolio…and the repurchase of common stock.”

Q&A Highlights

No Q2 2025 earnings call transcript was available; no Q&A themes or clarifications could be reviewed from a call in this period. Disclosures relied on the 8‑K and press releases .

Estimates Context

S&P Global consensus coverage appears limited for GOVB; no EPS or revenue consensus estimates were available for Q2 2025. Actual revenue recorded by S&P for Q2 2025 was ~$1.955M; EPS consensus data was unavailable.*

Metric	Period	Consensus Mean	# of Estimates	Actual
Primary EPS	Q2 2025	N/A	N/A	$0.11 (company-reported)
Revenue	Q2 2025	N/A	N/A	$1.955M*

*Values retrieved from S&P Global.

Implications: In absence of published consensus, analysts will anchor on company-reported trends (spread/NIM stability, funding costs) and sequential changes to update internal forecasts.

Key Takeaways for Investors

Spread/NIM stability with elevated deposit costs: NIM at 4.06% and spread at 3.87% indicate resilient core earning power despite higher deposit rates; watch for pace of deposit repricing and loan yields .
Revenue softness and sequential EPS decline: Revenue drifted from ~$2.02M (Q4) to ~$1.96M (Q2) and EPS fell from $0.15 (Q1) to $0.11 (Q2), driven by lower securities income and higher funding costs; monitor securities reinvestment and deposit beta .
Cleaner non‑interest income profile: Swap mark‑to‑market volatility materially lower YTD, reducing non‑GAAP adjustments vs prior year; this enhances earnings quality .
Balance sheet conservatism: No FHLB advances or brokered deposits and steady deposit growth provide funding stability but may limit NIM upside if deposit rates remain elevated .
Equity/AOCI sensitivity: AOCI from the securities portfolio and buybacks reduced equity; book value per share rebounded to $29.63; watch rate path and securities marks .
Dividend continuity: Semi‑annual $0.08 dividend supports return profile post conversion; sustainability hinges on earnings trajectory and capital .
Near-term: Trading likely focuses on NIM resilience vs deposit beta and any evidence of improving securities yields; Medium-term: Thesis depends on disciplined cost control, stable credit (no Q2 provision), and measured loan growth amid rate normalization .

Gouverneur Bancorp, Inc./MD/ (GOVB)·Q2 2025 Earnings Summary