Core Viewpoint - Hanover Bancorp, Inc. has successfully completed a private placement of $35 million in fixed-to-floating rate subordinated notes, enhancing its financial flexibility and supporting its strategic goals [1][4]. Financial Details - The subordinated notes will initially carry an interest rate of 7.25% per annum, payable semi-annually until March 15, 2031, after which the rate will reset quarterly to the three-month secured overnight financing rate (SOFR) plus 386 basis points [2]. - The notes received a BBB+ rating from Egan-Jones Ratings Company and are intended to qualify as Tier 2 capital for regulatory purposes [2]. Use of Proceeds - The net proceeds from the notes will be used to redeem $25 million of the Company's existing subordinated notes and for general corporate purposes, including contributing equity capital to Hanover Community Bank [3]. Management Commentary - The Chairman and CEO of Hanover expressed satisfaction with the transaction, stating it enhances financial flexibility, allows for the retirement of existing subordinated notes at a lower interest rate, and supports balance sheet growth [4]. Company Overview - Hanover Bancorp, Inc. is the parent company of Hanover Community Bank, focusing on personalized banking services in the metro-New York area, offering a full range of financial services including consumer, commercial, and municipal banking products [5].

Financial Performance - Hanover Bancorp, Inc. (HNVR) reported break-even quarterly earnings per share, missing the Zacks Consensus Estimate of $0.51, and compared to earnings of $0.52 per share a year ago, representing an earnings surprise of -100.00% [1] - The company posted revenues of $18.6 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 3.15%, and this compares to year-ago revenues of $18 million [2] - Over the last four quarters, Hanover Bancorp has surpassed consensus EPS estimates just once and topped consensus revenue estimates only once [2] Stock Performance - Hanover Bancorp shares have added about 2.7% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] - The current status translates into a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.66 on $20.6 million in revenues, and for the current fiscal year, it is $2.76 on $84.8 million in revenues [7] - The estimate revisions trend for Hanover Bancorp was mixed ahead of the earnings release, and the magnitude and direction of these revisions could change following the recent earnings report [6] Industry Context - The Zacks Industry Rank for Banks - Northeast is currently in the top 23% of over 250 Zacks industries, indicating that the industry outlook can materially impact stock performance [8]

Core Viewpoint - Hanover Bancorp, Inc. has appointed Mr. William J. Newham, III as Executive Vice President and Chief Commercial Real Estate Lending Officer, aiming to enhance its commercial real estate lending capabilities in response to industry consolidation [1][2]. Company Overview - Hanover Bancorp, Inc. is the bank holding company for Hanover Community Bank, focusing on personalized banking services and products tailored to client needs [5]. - The bank operates in the metro-New York area, with a commitment to understanding local financial needs and opportunities [5]. Appointment of Mr. Newham - Mr. Newham brings over 20 years of commercial real estate banking experience, particularly in the Long Island and New York metro area, which positions Hanover Bank to better address the CRE lending gap [2][4]. - His relationship-focused approach is seen as a key differentiator in a consolidating banking industry, enhancing Hanover's client-focused banking model [2][3]. Strategic Goals - The appointment reflects Hanover's commitment to disciplined growth and relationship-based banking, aiming to strengthen its commercial real estate lending platform [3]. - The bank's strategy includes managing concentration levels while pursuing attractive opportunities in Suffolk County and Long Island [3]. Mr. Newham's Background - Prior to joining Hanover Bank, Mr. Newham held senior leadership roles at Dime Community Bank and other Long Island financial institutions, where he expanded CRE platforms and gained insights into the Suffolk County market [4]. - His experience is expected to support Hanover's strategy of growing CRE loans and core deposits [3][4]. Client Commitment - Mr. Newham expressed enthusiasm for joining Hanover Bank, emphasizing the organization's values of relationships, local expertise, and thoughtful growth [5]. - The bank aims to provide consistent access to commercial lending and relationship-focused banking solutions for clients in Suffolk County and across Long Island [5].

Financial Performance - Net income for Q4 2025 was $33 thousand, down from $3.9 million in Q4 2024, primarily due to a $6.1 million provision for credit losses[1][3][4] - For the year ended December 31, 2025, adjusted net income was $10.1 million or $1.35 per diluted share, down from $12.5 million or $1.68 per diluted share in 2024[1][8][9] - Net income for the year ended December 31, 2025, was $7,488 thousand, a decrease from $12,346 thousand in 2024, indicating a decline of 39.5%[39] - Net income for Q4 2025 was $33,000, a substantial drop from $3,902,000 in Q4 2024, representing a decrease of 99.15%[44] - Adjusted net income for the year ended 2025 was $10,060,000, down from $12,510,000 in 2024, a decline of 19.6%[44] Revenue and Income Sources - Pre-provision net revenue for Q4 2025 was $6.2 million, representing 1.08% of average assets, the highest since Q4 2022[1] - Net interest income increased to $15.8 million in Q4 2025, up $2.0 million or 14.64% from Q4 2024, driven by an improved net interest margin of 2.84%[1][5][10] - Non-interest income for the year ended December 31, 2025, was $12,843 thousand, down from $15,339 thousand in 2024, a decrease of 16.3%[39] - Interest income for Q4 2025 was $32,599,000, a decrease of 1.4% from $33,057,000 in Q4 2024[42] Asset and Deposit Growth - Total deposits reached $2.03 billion at December 31, 2025, an increase of $74.1 million or 3.79% from December 31, 2024[1][13] - Total assets increased to $2.38 billion at December 31, 2025, compared to $2.31 billion a year earlier[1][12] - Total deposits increased to $2,028,387 thousand as of December 31, 2025, up from $1,974,823 thousand at September 30, 2025, marking a growth of 2.7%[38] - Demand deposits rose by $36.1 million or 17.07% from December 31, 2024, contributing to a loan to deposit ratio of 99%[1][13] Credit Quality and Losses - The Bank reported $21.6 million in non-performing loans as of December 31, 2025, representing 1.08% of total loans outstanding, up from 0.82% a year earlier[28] - The allowance for credit losses was $18.7 million as of December 31, 2025, or 0.93% of total loans, down from 1.15% a year earlier[30] - Provision for credit losses rose significantly to $6,100 thousand for the three months ended December 31, 2025, compared to only $400 thousand in the same period last year[39] - The ratio of non-performing loans to total loans increased to 1.08% in Q4 2025 from 0.86% in Q3 2025, indicating a higher proportion of troubled loans[48] Strategic Initiatives - The company initiated a strategic credit cleanup, removing $9.6 million of non-performing loans from the balance sheet[1][7] - The company plans to expand its geographic footprint with a new full-service branch in downtown Riverhead, New York, subject to regulatory approvals[1][7] Shareholder Information - The company repurchased 56,711 shares of common stock in Q4 2025, representing approximately 0.8% of shares outstanding[1][7] - Stockholders' equity rose to $200,676 in 2025, compared to $191,323 in 2024[54] Efficiency and Ratios - The operating efficiency ratio improved to 66.46% in Q4 2025 from 68.91% in Q4 2024[44] - Return on average assets for Q4 2025 was 0.01%, significantly lower than 0.70% in Q4 2024[45] - Return on average equity for Q4 2025 was 0.06%, down from 7.98% in Q4 2024[45] - The Tier 1 capital leverage ratio was reported at 9.05% in Q4 2025, slightly down from 9.15% in Q3 2025[48] - Tangible common equity (TCE) ratio stood at 7.65% in Q4 2025, compared to 7.89% in Q3 2025, indicating a decline in capital efficiency[52] Loan Performance - C&I loan originations were approximately $26.1 million in Q4 2025 and $95.3 million for the year, with expectations for growth in 2026[19] - Total loans reached $2,000,749 thousand in Q4 2025, showing a sequential growth rate of 0.61% compared to Q3 2025[51] - The company sold loans totaling $39,114 thousand during Q4 2025, down from $44,532 thousand in Q3 2025[51]

Core Insights - Hanover Bancorp, Inc. reported a net income of $33 thousand for Q4 2025, a significant decrease from $3.9 million in Q4 2024, primarily due to increased provisions for credit losses and decreased non-interest income [2][4][5] - The company declared a cash dividend of $0.10 per share, payable on February 26, 2026 [3] - The bank's net interest income for Q4 2025 was $15.8 million, up 14.64% from the same quarter in 2024, driven by an improved net interest margin of 2.84% [6][34] Financial Performance - Pre-provision net revenue for Q4 2025 was $6.2 million, the highest since Q4 2022, reflecting strong operational efficiency [2] - Total deposits increased by $53.6 million or 2.71% from the previous quarter and by $74.1 million or 3.79% year-over-year, with demand deposits rising significantly [2][13] - The company's operating efficiency ratio improved to 66.46%, the lowest since Q1 2024, indicating effective expense management [2] Asset Quality and Credit Losses - The bank initiated a strategic credit cleanup, resulting in the removal of $9.6 million in non-performing loans from the balance sheet [2][32] - The allowance for credit losses decreased to $18.7 million, representing 0.93% of total loans, down from 1.15% a year earlier [33][31] Loan Portfolio and Growth Strategy - The loan portfolio increased to $2.00 billion, with a focus on diversifying into multifamily and commercial real estate [16] - The company plans to expand its geographic footprint with a new branch in Riverhead, New York, enhancing its business development efforts [2] Shareholder Returns and Equity - The company repurchased 56,711 shares in Q4 2025, representing approximately 0.8% of shares outstanding at the beginning of the period [2][15] - Stockholders' equity increased to $200.3 million, with book value per share rising to $27.02 [15]

Company Overview - Hanover Bancorp, Inc. (HNVR) shares increased by 5.3% to close at $24.12, supported by higher trading volume compared to normal sessions [1] - The stock had previously experienced a 2.6% decline over the past four weeks [1] Earnings Expectations - Hanover Bancorp is projected to report quarterly earnings of $0.51 per share, reflecting a year-over-year decrease of 1.9% [2] - Expected revenues for the upcoming quarter are $19.2 million, which is an increase of 6.7% from the same quarter last year [2] Stock Performance Insights - The consensus EPS estimate for Hanover Bancorp has remained unchanged over the last 30 days, indicating a lack of upward momentum in earnings estimate revisions [3] - The stock's price typically does not continue to rise without trends in earnings estimate revisions, suggesting the need for monitoring HNVR's performance moving forward [3] Industry Context - Hanover Bancorp is categorized under the Zacks Banks - Northeast industry, which includes other stocks such as MVB Financial (MVBF) [4] - MVB Financial's stock closed 5.2% higher at $28.35, with a 3.6% return over the past month [4] - MVB Financial's consensus EPS estimate has remained unchanged at $0.31, representing a significant year-over-year decline of 56.9% [5]

Financial Performance - For the three months ended September 30, 2025, the Company reported revenue of $18.0 million, an increase from $17.1 million in the same period of 2024, representing a growth of 5.6%[141] - Net income for the three months ended September 30, 2025, was $3.5 million, or $0.47 per diluted share, compared to $3.5 million, or $0.48 per diluted share for the same period in 2024, indicating a slight decrease in earnings per share[143] - The Company recorded net income of $7.5 million for the nine months ended September 30, 2025, a decrease of $0.9 million compared to $8.4 million in the same period of 2024[191] - Non-interest income decreased by $1.1 million for the nine months ended September 30, 2025, primarily due to a $1.8 million decrease in net gain on sale of loans held for sale[198] - Non-interest income for the three months ended September 30, 2025, totaled $2.785 million, down from $3.954 million in the same quarter of 2024[187] Operational Efficiency - The Company's efficiency ratio improved to 66.71% for the three months ended September 30, 2025, down from 71.75% in the same quarter of 2024, reflecting better operational efficiency[147] - The net interest margin improved to 2.74% for the three months ended September 30, 2025, compared to 2.37% in the same quarter of 2024, driven by a decrease in the cost of interest-bearing liabilities to 3.89%[179] - Total non-interest expense increased by $5.9 million for the nine months ended September 30, 2025, driven by a $2.1 million increase in salaries and employee benefits and one-time core system conversion expenses of $3.2 million[199] Asset and Loan Management - Total assets remained stable at $2.3 billion as of September 30, 2025, consistent with the total assets reported at December 31, 2024[149] - The Company sold $21.4 million in residential loans under its flow origination program during the quarter ended September 30, 2025, compared to $16.5 million in the same quarter of 2024, marking a 29.5% increase[138] - As of September 30, 2025, the residential loan portfolio was $751.5 million, representing 37.8% of total loans[150] - Total loans with credit risk ratings of Special Mention and Substandard rose to $66.4 million at September 30, 2025, up from $40.8 million at December 31, 2024[202] Credit Quality and Losses - Total non-accrual loans increased to $17.2 million, or 0.86% of total loans, as of September 30, 2025, up from $15.4 million, or 0.77% of total loans, in the same period of 2024[146] - The allowance for credit losses as a percentage of total non-accrual loans was 130% as of September 30, 2025, down from 152% a year earlier, indicating a tightening of credit standards[146] - The provision for credit losses on loans was $1.4 million for the three months ended September 30, 2025, compared to $0.2 million in the same quarter of 2024, with net charge-offs of $0.6 million during the quarter[183] - The allowance for credit losses amounted to $22.4 million or 1.12% of total loans outstanding at September 30, 2025, compared to 1.15% at December 31, 2024[203] Capital and Liquidity - As of September 30, 2025, the Bank had total stockholders' equity of $201.8 million, up from $196.6 million at December 31, 2024, with retained earnings increasing by $5.2 million due to net income of $7.5 million for the nine months ended September 30, 2025[167] - The Bank's tier 1 leverage ratio was 9.15%, and the common equity tier 1 risk-based capital ratio was 13.13% as of September 30, 2025, exceeding all regulatory guidelines for a well-capitalized institution[169] - Total borrowings were $100.7 million as of September 30, 2025, down from $107.8 million at December 31, 2024[152] - The company had undrawn liquidity sources totaling $712.2 million, approximately 253% of uninsured deposit balances[162] Market Presence and Strategic Initiatives - The Company opened a new full-service branch in Port Jefferson, New York, in June 2025, expanding its market presence in the Suffolk County area[134] - The Company completed its core processing system conversion to FIS Horizon in February 2025, enhancing its technological capabilities[132] - The Company was added to the Russell 2000 Index in late June 2025, which may enhance its visibility and attractiveness to investors[133] Deposits and Funding - Total deposits remained stable at $2.0 billion as of September 30, 2025, with a loan to deposit ratio of 101%[151] - Core deposit balances accounted for 71.5% of total deposits at September 30, 2025, down from 74.5% at December 31, 2024[151] - The municipal deposit program totaled $513.6 million, or 26.0% of total deposits, as of September 30, 2025[151] - At September 30, 2025, the aggregate amount of outstanding uninsured deposits was $281.9 million, or 14.3% of total deposits[151] Shareholder Returns - The Company declared a cash dividend of $0.10 per share on both common and Series A preferred shares, payable on November 20, 2025[174] - The Company repurchased 25,264 shares of its common stock at an aggregate cost of $546 thousand during the nine months ended September 30, 2025, with remaining buyback authority of 340,786 shares[170]

Core Insights - Hanover Bancorp, Inc. reported quarterly earnings of $0.47 per share, missing the Zacks Consensus Estimate of $0.49 per share, and down from $0.5 per share a year ago, representing an earnings surprise of -4.08% [1] - The company posted revenues of $18.01 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 5.72%, compared to year-ago revenues of $17.06 million [2] - Hanover Bancorp shares have declined approximately 12.5% year-to-date, contrasting with the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.55 on revenues of $19.7 million, and for the current fiscal year, it is $1.92 on revenues of $75.5 million [7] - The estimate revisions trend for Hanover Bancorp was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Zacks Industry Rank for Banks - Northeast places it in the top 14% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8]

Financial Performance - Net income for Q3 2025 was $3.5 million, or $0.47 per diluted share, compared to $2.4 million, or $0.33 per diluted share in the prior quarter[1]. - Pre-provision net revenue reached $6.0 million, resulting in a return on average assets of 1.05%, the highest since Q1 2023[1]. - Net interest income increased to $15.2 million, up $2.1 million, or 16.19%, from Q3 2024[6]. - Net income for the three months ended September 30, 2025, was $3,491,000, slightly down from $3,539,000 in the same period of 2024[39]. - Basic earnings per share (EPS) for the three months ended September 30, 2025, was $0.47, compared to $0.48 for the same period in 2024[39]. - Net interest income for the three months ended September 30, 2025, was $15,223,000, up from $13,102,000 for the same period in 2024, representing a 16.2% increase[39]. - Net income for the quarter was $3,491,000, up 42.9% from $2,443,000 in the previous quarter, resulting in a basic earnings per share of $0.47[41][43]. - The adjusted net income for the three months ended September 30, 2025, was $3,491,000, compared to $3,703,000 for the same period in 2024[43]. Asset and Deposit Growth - Total assets were $2.33 billion at September 30, 2025, compared to $2.31 billion at December 31, 2024[11]. - Total deposits rose by $20.5 million, or 1.05%, from December 31, 2024, with demand deposits increasing by $21.3 million, or 10.08%[12]. - Total deposits increased to $1,974,823,000 as of September 30, 2025, from $1,951,281,000 as of June 30, 2025, reflecting a growth of 1.2%[38]. - Total assets amounted to $2,331,580,000, a slight increase from $2,311,976,000 as of June 30, 2025[38]. - Stockholders' equity increased to $199,391,000 in 2025 from $190,251,000 in 2024, reflecting a stronger capital position[56]. - Total assets increased to $2,250,546,000 in 2025 from $2,234,502,000 in 2024, indicating growth in the company's balance sheet[56]. Loan Performance - Loans totaled $1.99 billion, a net increase of $22.2 million, or 4.52% annualized from the previous quarter[1]. - The loan-to-deposit ratio improved to 101% at September 30, 2025, from 102% at December 31, 2024[12]. - The Bank's C&I loan originations for Q3 2025 were approximately $24.1 million, with expectations for growth in lending and deposit activity as the year progresses[18]. - Total loans increased to $1,988,683 thousand, reflecting a sequential growth rate of 1.13% from the previous quarter[53]. - The average yield on loans was 6.01% for Q3 2025, compared to 6.18% in Q3 2024[55]. Credit Quality and Provisions - The Bank reported $17.2 million in non-performing loans as of September 30, 2025, an increase from $12.7 million at June 30, 2025[28]. - The allowance for credit losses was $22.4 million at September 30, 2025, representing 1.12% of total loans[29]. - The provision for credit losses for the three months ended September 30, 2025, was $1,325,000, compared to $200,000 for the same period in 2024, indicating a significant increase in credit loss provisions[39]. - The provision for credit losses was $1,325,000, a decrease from $2,357,000 in the prior quarter, indicating improved asset quality[41]. - The allowance for credit losses to total loans ratio was 1.12%, up from 1.10% in the previous quarter, indicating a cautious approach to credit risk[51]. Interest Income and Margins - The Bank's net interest margin increased to 2.74% for the quarter ended September 30, 2025, compared to 2.37% in the same quarter of 2024[31]. - Net interest income for Q3 2025 was $15,223 thousand, representing a margin of 2.74%, up from $13,102 thousand and 2.37% in Q3 2024[55]. - The net interest rate spread improved to 2.03% in 2025 from 1.69% in 2024, indicating better profitability on interest-earning assets[56]. Non-Interest Income - Non-interest income for the three months ended September 30, 2025, was $2,785,000, down from $3,954,000 in the same period of 2024, a decrease of 29.6%[39]. - Non-interest income for the quarter was $2,785,000, a decrease from $3,561,000 in the previous quarter[41]. Strategic Outlook - The company plans to continue expanding its core verticals and developing hi-tech branches in key markets[10]. - The company anticipates potential impacts from competitive pressures and changes in the interest rate environment, which could affect future performance[36].

Core Insights - Hanover Bancorp, Inc. reported a net income of $3.5 million or $0.47 per diluted share for the quarter ended September 30, 2025, which is consistent with the previous year but shows a slight decrease in earnings per share from $0.48 in Q3 2024 [3][5][44] - The company declared a cash dividend of $0.10 per share on both common and Series A preferred shares, payable on November 20, 2025 [2][5] Financial Performance - Net interest income increased to $15.2 million for Q3 2025, a rise of $2.1 million or 16.19% from Q3 2024, driven by an improved net interest margin of 2.74% compared to 2.37% in the prior year [5][7][35] - Pre-provision net revenue reached $6.0 million, marking the highest level since Q1 2023, with a return on average assets of 1.05% [5][11] - Non-interest income decreased, particularly in gains on the sale of loans held-for-sale, which impacted overall profitability [4][5] Balance Sheet Highlights - Total assets were $2.33 billion as of September 30, 2025, up from $2.31 billion at the end of 2024 [13] - Total deposits increased by $20.5 million or 1.05% from December 31, 2024, with demand deposits rising by $21.3 million or 10.08% [14] - The loan portfolio totaled $1.99 billion, reflecting a net increase of $22.2 million or 4.52% annualized from the previous quarter [18] Loan and Deposit Growth - The company continues to focus on diversifying its loan portfolio, with a reduction in the commercial real estate concentration ratio to 362% of capital as of September 30, 2025 [18] - The loan-to-deposit ratio improved to 101% at the end of Q3 2025, indicating a healthy balance between loans and deposits [14] - The company reported strong growth in its municipal deposit program, which provides a stable funding source for lending products [15] Cost Management - Non-interest expenses decreased by $0.6 million or 4.78% from the previous quarter, primarily due to lower incentive compensation and data processing costs [6] - The effective tax rate for Q3 2025 was 25.2%, up from 23.4% in Q3 2024, with expectations of a normalized rate of 25.0% for the remainder of the year [4][9] Market Position and Strategy - The company is expanding its market share through the development of high-tech branches in key markets, supported by local business development officers [11] - Management anticipates that further Federal Open Market Committee rate decreases will positively influence performance and lending opportunities [11]