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Gouverneur Bancorp, Inc./MD/ (GOVB)·Q4 2024 Earnings Summary

Executive Summary

  • Fiscal Q4 2024 EPS of $0.13 and net income of $0.136M; EPS rose sharply year-over-year (vs $0.04) but declined sequentially from Q3’s $0.17 as deposit costs stayed elevated and non-interest expenses ticked up .
  • Net interest income was $1.778M; net interest spread of 3.84% remained compressed versus historical levels amid higher deposit rates and slower asset repricing .
  • Balance sheet: assets $197.3M (-4.2% y/y), deposits $159.9M (+0.7% y/y), equity $32.8M (+30.5% y/y) driven by the second‑step conversion and offering proceeds; book value per share rose to $29.59 .
  • Corporate actions: first cash dividend ($0.08) in October and a 5% stock repurchase authorization in December; shareholder return framework developing post-conversion .
  • Street estimates from S&P Global were unavailable for GOVB; no beat/miss assessment relative to consensus. Values retrieved from S&P Global.*

What Went Well and What Went Wrong

What Went Well

  • Strong y/y earnings improvement: Q4 net income increased to $136K from $86K; adjusted net income to $161K from $100K, reflecting lower swap-related losses and controlled credit costs .
  • Capital and book value strengthened post second-step conversion: equity up 30.5% y/y to $32.8M; book value per share up to $29.59 on 1,107,134 shares outstanding .
  • Management reaffirmed interest rate risk mitigation: “the Company continues to mitigate its interest rate risk through the [swap] agreements” despite market value volatility .

What Went Wrong

  • Sequential EPS decline: $0.13 in Q4 vs $0.17 in Q3 as deposit interest expense remained elevated and non-interest expenses increased .
  • Net interest spread remained compressed: 3.84% in Q4 (vs 3.88% prior-year quarter), reflecting faster increases in deposit rates than loan yields .
  • Unrealized losses on swaps persisted in FY 2024 ($240K) albeit much lower than FY 2023 ($802K), highlighting continued sensitivity to longer-term rate moves .

Financial Results

Income Statement and EPS – Quarterly comparison (oldest → newest)

Metric (USD Thousands unless noted)Q4 2023Q2 2024Q3 2024Q4 2024
Interest Income$2,097 $2,145 $2,144 $2,148
Interest Expense$283 $337 $387 $370
Net Interest Income$1,814 $1,808 $1,757 $1,778
Provision for Credit Losses$30 $0 $0 $0
Non-interest Income (GAAP)$166 $196 $185 $245
Non-interest Expenses$1,853 $1,919 $1,764 $1,910
Income Before Income Tax$97 $85 $178 $113
Income Tax (Benefit)$11 $(17) $(5) $(23)
Net Income$86 $102 $183 $136
Diluted EPS$0.04 $0.10 $0.17 $0.13
Net Interest Spread (%)3.88% 3.92% 3.83% 3.84%

Notes:

  • Bold sequential change: EPS down Q3→Q4 (from $0.17 to $0.13) due to sustained deposit cost pressure and higher operating expenses .

Margins

MetricQ4 2023Q2 2024Q3 2024Q4 2024
Net Interest Spread (%)3.88% 3.92% 3.83% 3.84%
Net Interest Margin (%)—4.06% 4.03% —

KPIs and Balance Sheet

KPIQ4 2023Q2 2024Q3 2024Q4 2024
Total Assets ($M)$205.9 $203.7 $195.1 $197.3
Total Deposits ($M)$158.8 $162.8 $153.4 $159.9
Shareholders’ Equity ($M)$25.1 $31.735 $31.703 $32.8
Book Value / Share ($)$12.36 ——$29.59
Non-performing Loans ($K)$700 1,155 529 —

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
DividendNovember 2024None disclosed$0.08 per share; payable ~Nov 18, 2024Initiated
Share RepurchaseThrough Dec 10, 2025None disclosedUp to 55,356 shares (5% of outstanding)Initiated
Revenue/EPS/OpExFY2025Not providedNot providedMaintained (No formal guidance)

Earnings Call Themes & Trends

No earnings call transcript was available for Q4 2024; themes reflect press releases and 10‑Q commentary.

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Interest rate risk & swapsUnrealized swap loss reduced; hedging of borrowing/deposits; SOFR transition Unrealized swap loss continued but lower; swap derivative FV $41K asset; sensitivity tables disclosed Continued use of swaps; unrealized loss $240K FY 2024 vs $802K FY 2023; management reiterates risk mitigation Improving impact vs FY2023; ongoing hedge use
Deposit costs and marginDeposit interest expense up sharply; NIM down to 4.03–4.06% Deposit costs elevated; spread 3.83%; NIM 4.03% Spread 3.84%; commentary: deposit rates rose faster than loan yields Margin pressure moderating but persistent
Liquidity & capitalFHLB capacity $57.1M; well-capitalized; post-conversion equity up FHLB capacity $56.7M; well-capitalized Equity $32.8M; book value $29.59; no FHLB advances at 9/30? “Bank currently holds no advances from FHLB” Strong capital; improved equity metrics
Charter conversionOCC application to convert to national bank; pending approvals Application reiterated; risk factor updated Forward-looking statements reiterate regulatory risks; no timeline set Awaiting approvals
Shareholder returns——First dividend; 5% repurchase authorization Initiation of capital return program

Management Commentary

  • “Our results of operations depend primarily on our net interest income... and are affected by our provisions for credit losses, non-interest income and non-interest expense... [and] changes in market interest rates.” (Press release)
  • “While the swaps market value will fluctuate with long term bond rates and projected short-term rates, the Company continues to mitigate its interest rate risk through the agreements.” (Press release)
  • “Net interest spread... was 3.86% at September 30, 2024 and 4.14% at September 30, 2023 as interest rates on interest bearing deposits increased faster than the interest rates on loans.” (Press release)

Q&A Highlights

No Q&A transcript available for Q4 2024; the company did not furnish an earnings call transcript in the period [ListDocuments result].

Estimates Context

  • Consensus EPS and revenue for GOVB were unavailable via S&P Global for Q4 2024 and FY 2024. Values retrieved from S&P Global.*
  • Given limited microcap coverage, we cannot assess beat/miss versus Street; investors should anchor on trend analysis across reported quarters .

Key Takeaways for Investors

  • Earnings improved y/y on both GAAP and adjusted bases; however, sequential EPS declined as deposit costs remain a headwind, keeping spreads compressed .
  • Capital position strengthened materially post-conversion, driving higher book value per share and enabling initiation of dividends and a 5% buyback—supportive for total shareholder return .
  • Interest rate risk hedging via swaps continues to stabilize earnings variability versus FY 2023; unrealized losses narrowed substantially in FY 2024 .
  • Loan growth is modest and net loans decreased y/y; credit quality remains manageable with modest provisions and NPLs trending lower by Q3 .
  • Macro sensitivity persists: higher-for-longer deposit rates pressure margins; management disclosures emphasize liquidity buffers and well-capitalized status .
  • Strategic catalyst: pending OCC/Fed approvals for charter conversion could broaden operating flexibility; timeline remains uncertain .
  • Near term: expect stable but margin-constrained earnings; medium term: capital returns and charter conversion could improve valuation and investor appeal.

Additional Data Sources Read In Full

  • 8-K Item 2.02 with Q4 2024 earnings press release (Nov 15, 2024) –.
  • 10-Qs for Q2 2024 and Q3 2024 including full MD&A, risk, and market risk disclosures – –.
  • Dividend and stock repurchase press releases – –.