Executive Summary

Q3 FY2025 delivered improved profitability: net income rose to $0.217M and EPS to $0.22, up 84% QoQ (vs $0.11) and 29% YoY (vs $0.17), driven by higher net interest income, a lower interest expense base, and stronger non-interest income .
Net interest margin expanded to 4.15% (from 4.06% in Q2 and 4.03% YoY) as loan yields and asset mix offset deposit rate pressure; interest expense fell YoY on the elimination of FHLB advances .
Balance sheet stable: deposits ended at $159.4M (down vs March seasonality), loans grew modestly to $125.9M, and total assets were $196.7M; equity declined vs FY start on AOCI marks .
No earnings call or consensus estimates were available; the narrative centers on NIM expansion, non-interest income tailwinds (including tax-related refunds), and clean funding (no FHLB/brokered) as key stock drivers; a subsequent dividend increase (Oct 20) and CEO appointment (Aug 12) add catalysts to watch .

What Went Well and What Went Wrong

What Went Well
- Margin expansion: NIM rose to 4.15% (vs 4.06% in Q2; 4.03% YoY) as interest income improved and interest-earning assets fell slightly, supporting EPS growth .
- Funding discipline: No FHLB advances or brokered deposits, helping reduce interest expense YoY despite higher deposit rates, and lowering earnings volatility .
- Non-interest income strength: Up to $256K in Q3 (from $191K YoY), supported by bank-owned life insurance, service charges, and tax-related refund including an MRT credit (nine-month detail) .
What Went Wrong
- AOCI-driven equity pressure: Shareholders’ equity fell to $31.4M (from $32.8M at FY start) primarily due to market value declines in AFS securities .
- Expense headwinds in the background: Nine-month “other” non-interest expense rose on public company costs; Q3 also saw a $39K increase in foreclosed asset expenses due to legal fees .
- Seasonal deposit softness: Deposits ended Q3 at $159.4M, down 1.5% from Q2 ($161.8M), though still broadly stable YTD .

Financial Results

P&L summary (USD, in millions except per-share and %)

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Interest Income ($)	$2.144	$2.166	$2.137	$2.170
Interest Expense ($)	$0.387	$0.401	$0.390	$0.360
Net Interest Income ($)	$1.757	$1.765	$1.747	$1.810
Provision for Credit Loss ($)	$0.000	$0.015	$0.000	$0.012
Non-interest Income ($)	$0.191	$0.244	$0.208	$0.256
Non-interest Expenses ($)	$1.770	$1.835	$1.853	$1.786
Net Income ($)	$0.183	$0.160	$0.118	$0.217
Diluted EPS ($)	$0.17	$0.15	$0.11	$0.22
Net Interest Margin (%)	4.03%	4.06%	4.06%	4.15%
Net Interest Spread (%)	3.83%	3.78%	3.87%	3.98%

Balance sheet and returns (USD, in millions unless noted)

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Total Assets ($)	$197.260	$196.776	$197.371	$196.719
Net Loans ($)	$124.257	$124.927	$125.385	$125.933
Deposits ($)	$159.902	$159.672	$161.821	$159.414
Shareholders’ Equity ($)	$32.765	$31.743	$31.357	$31.397
Book Value/Share ($)	$29.59	$28.68	$29.63	$29.74
ROAA (Annualized, %)	0.37%	0.32%	0.24%	0.44%
ROAE (Annualized, %)	2.33%	1.97%	1.52%	2.79%

Notes: The company reports interest income and non-interest income rather than a consolidated “revenue” line; there were no non-GAAP adjustments disclosed in Q3 materials .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Company guidance	FY/Q4	None issued	None issued	Maintained (no guidance)

Earnings Call Themes & Trends

No Q3 earnings call transcript was available; MarketBeat shows no conference call for the 7/21/2025 report .

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2025)	Trend
Net interest margin & pricing	NIM steady at 4.06%; deposit rates pressured NII but asset base slightly smaller	NIM up to 4.15% on higher interest income and slightly lower interest-earning assets	Improving
Funding mix (FHLB, brokered)	No FHLB advances; deposits seasonally up in Q2	No FHLB advances or brokered deposits; deposits down seasonally vs Q2	Favorable mix; seasonal dip
Non-interest income drivers	Tax-related refund aided non-interest income; lower swap losses YoY	Continued support; MRT credit noted in nine-month results	Supportive; partly nonrecurring
Credit costs	Provision $0 in Q2, $15K in Q1	Provision $12K (loans + unfunded)	Low/stable
Operating expenses	Public company costs lifted “other” expense in H1; salaries/benefits down	Q3 non-interest expense flat YoY; foreclosed asset expenses +$39K	Mixed but manageable
Capital return	$0.08 dividend in Q1	Nine-month dividends $0.16; post-quarter: raised semi-annual to $0.09 (Nov)	Increasing
Leadership	—	Post-quarter: Stephen M. Jefferies appointed CEO, effective Sept 2	Transition underway

Management Commentary

There were no direct management quotes in the Q3 earnings press release/8-K .
Leadership transition (subsequent to Q3): “Steve brings nearly 40 years of experience in the banking industry… we are excited to welcome him as our next President and Chief Executive Officer,” said Chair Clara P. Cummings . “I am honored to assume the role of President and Chief Executive Officer…” added Stephen M. Jefferies .

Q&A Highlights

No earnings call/Q&A held or transcript posted for Q3 2025 based on company disclosures and third-party event listings .

Estimates Context

Coverage appears limited; S&P Global consensus was not available for EPS or revenue in Q3 2025. Values retrieved from S&P Global.

Metric	Period	Consensus	Actual	Surprise
EPS	Q3 2025	N/A*	$0.22	N/A*
Revenue (company reports Interest Income)	Q3 2025	N/A*	$2.170M	N/A*

*Values retrieved from S&P Global.

Key Takeaways for Investors

EPS and ROAA/ROAE improved meaningfully QoQ and YoY; the operational story is margin-led with expense control and low credit costs, supporting better earnings power into FYQ4 .
NIM expansion to 4.15% is the key driver; watch deposit betas and the duration of asset repricing as the primary lever for continued margin resilience .
Clean funding profile (no FHLB or brokered) lowers cost and risk, but seasonal deposit flows can still move quarterly NII; monitor deposit trends into Q4 .
AOCI remains a swing factor for tangible equity and book value; a $1.1M decline in securities fair value weighed on equity YTD—sensitive to rate path .
Non-interest income benefited from tax-related refunds (MRT credit), which may not repeat; normalize expectations for fee/BOLI versus one-time items .
Capital return trend is positive: nine-month dividends of $0.16, followed by a post-quarter dividend increase to $0.09 semi-annual, signaling confidence in earnings durability .
Leadership transition to a new CEO in September could introduce strategic tweaks (lending, funding, cost initiatives) in coming quarters; monitor initial commentary and 2026 targets .

Appendix: Source Documents

Q3 FY2025 8-K and press release (full tables and narrative) .
Q2 FY2025 8-K and press release .
Q1 FY2025 8-K and press release .
Dividend increase (Oct 20, 2025) .
CEO appointment (Aug 12, 2025) .

Gouverneur Bancorp, Inc./MD/ (GOVB)·Q3 2025 Earnings Summary