Core Performance Highlights - The company reported a net income of $3.9 million or $0.52 per diluted share for the quarter ended December 31, 2024, compared to $3.8 million or $0.51 per diluted share in the same quarter of 2023, reflecting a slight year-over-year increase [2][4] - Non-interest income reached a record $4.2 million for the quarter, up by $0.2 million or 5.89% from the previous quarter and $0.9 million or 28.67% from the same quarter last year [2] - Net interest income was $13.8 million for the quarter, an increase of $0.7 million or 5.39% from the previous quarter and $1.1 million or 9.08% from the same quarter last year [2][6] Financial Metrics - The net interest margin improved to 2.53% for the quarter, up from 2.37% in the previous quarter and 2.40% in the same quarter last year [2][31] - The company maintained a strong liquidity position with undrawn liquidity sources totaling $713.1 million, approximately 283% of uninsured deposit balances [2] - Core deposits increased by $3.1 million or 0.84% annualized from the previous quarter and $74.1 million or 5.36% from the same quarter last year [2] Loan and Deposit Activity - The company successfully diversified its loan portfolio, with commercial and industrial (C&I) loans increasing by $61.0 million or 56.52% year-over-year, now representing 8.51% of total loans [2] - Total deposits rose to $1.95 billion, an increase of $49.7 million or 2.61% compared to the previous year [15] - The loan-to-deposit ratio was 102% at December 31, 2024, compared to 103% at the same time last year [15] Asset Quality - Non-performing loans totaled $16.4 million, representing 0.82% of the total loan portfolio, indicating solid asset quality [29] - The allowance for credit losses was 1.15% of total loans, reflecting a cautious approach to credit risk management [30] Strategic Initiatives - The company is set to complete a core processing system conversion to FIS Horizon by February 15, 2025, which is expected to enhance operational efficiency and customer service [9][12] - The company declared a cash dividend of $0.10 per share on both common and Series A preferred shares, payable on February 19, 2025 [3][9] Year-End Summary - For the year ended December 31, 2024, net income was $12.3 million or $1.66 per diluted share, down from $13.6 million or $1.84 per diluted share in 2023 [7][8] - The decrease in annual net income was attributed to an increase in the provision for credit losses and non-interest expenses, partially offset by higher non-interest income [8]

Financial Performance - For the three months ended September 30, 2024, revenue increased to $17.056 million from $15.506 million for the same period in 2023, representing a growth of 10%[164] - Net income for the three months ended September 30, 2024, was $3.539 million, slightly up from $3.523 million in the same period of 2023[164] - The Bank's net income for the nine months ended September 30, 2024, was $8.4 million, offset by $2.2 million in declared dividends[193] - The company recorded net income of $8.4 million for the nine months ended September 30, 2024, down from $9.8 million in the comparable period[216] Asset and Deposit Information - Total assets as of September 30, 2024, were $2.3 billion, with total deposits of $2.0 billion and total stockholders' equity of $192.3 million[166] - Total assets of the Company were $2.3 billion as of September 30, 2024, unchanged from December 31, 2023[174] - Total deposits increased to $2.0 billion at September 30, 2024, reflecting a growth of $52.9 million or 2.8% from $1.9 billion at December 31, 2023[178] - Core deposit balances grew to $1.5 billion as of September 30, 2024, up from $1.4 billion as of December 31, 2023[178] - The Company's outstanding uninsured deposits were $622.1 million or 31.8% of total deposits as of September 30, 2024, down from $771.0 million or 40.5% at December 31, 2023[178] Credit Losses and Loan Information - The provision for credit losses decreased to $200,000 for the three months ended September 30, 2024, compared to $500,000 for the same period in 2023[164] - The allowance for credit losses increased by $3.7 million, or 19.1%, to $23.4 million, representing 1.17% of total loans as of September 30, 2024[209] - The company recorded a provision for credit losses on loans of $4.5 million for the nine months ended September 30, 2024, compared to $1.9 million for the same period in 2023, indicating an increase in credit loss provisions[222] - Total non-accrual loans at September 30, 2024, were $15.4 million, or 0.77% of total loans, compared to 0.80% at September 30, 2023[169] - The company recorded net loan charge-offs of $0.4 million during the three months ended September 30, 2024, compared to $1.2 million for the same period in 2023[227] Interest Income and Margin - The net interest income for the three months ended September 30, 2024, increased by $1.3 million compared to the same period in 2023, with a net interest margin improvement to 2.37% from 2.29%[204][205] - The yield on interest-earning assets rose to 6.17% in the 2024 quarter, an increase of 56 basis points from 5.61% in the comparable 2023 quarter[205] - The company's net interest margin decreased to 2.41% in the 2024 nine-month period from 2.65% in the comparable 2023 period[217] - The yield on interest-earning assets increased to 6.14% in the 2024 nine-month period from 5.58% in the comparable 2023 period, an increase of 56 basis points[217] Non-Interest Income and Expenses - Non-interest income increased by $0.2 million for the three months ended September 30, 2024, driven by a $1.4 million increase in net gain on sale of loans[211] - Non-interest income increased by $3.7 million for the nine months ended September 30, 2024, driven by a $4.4 million increase in net gain on sale of loans, with approximately $81.8 million sold in the government guaranteed portion of SBA loans[222] - Total non-interest expense increased by $1.9 million for the three months ended September 30, 2024, primarily due to higher salaries and employee benefits[213] - Total non-interest expense rose by $3.3 million for the nine months ended September 30, 2024, primarily due to increased salaries and employee benefits for additional staff[223] Capital and Regulatory Ratios - The Bank's tier 1 leverage ratio was 8.85%, and the common equity tier 1 risk-based capital ratio was 12.99% as of September 30, 2024, exceeding regulatory guidelines for a well-capitalized institution[194] - As of September 30, 2024, the Bank had total stockholders' equity of $192.3 million, an increase of $7.5 million from $184.8 million at December 31, 2023, primarily due to a $6.2 million increase in retained earnings[193] Strategic Initiatives - The Company opened a new business banking center in Hauppauge, New York, in May 2023, and plans to open a full-service branch in Port Jefferson by Q1 2025[159] - The Bank initiated a flow origination program for residential loans in late 2023 to resume sales and generate fee income[161] - The Company announced a stock repurchase program allowing the repurchase of up to 366,050 shares, approximately 5% of its outstanding shares, with no repurchases made as of September 30, 2024[195] Interest Rate Risk Management - The Company employs strategies to manage interest rate risk, including diversifying interest-earning assets and liabilities, and utilizing interest rate swap agreements[232] - The Company’s asset/liability management program aims to maximize net interest income while managing overall risk from interest rate fluctuations[231] - The Company’s interest rate risk exposure is assessed based on a 12-month time horizon[233] Other Information - The evaluation of the effectiveness of the Company's disclosure controls concluded they are effective in timely alerting to material information[236] - The Company is not subject to any legal proceedings that could materially impact its financial condition[237] - The EVE and NII measurements are subject to model limitations and may not precisely forecast the effects of interest rate changes[234]

Group 1 - The importance of confirming the sustainability of a trend for successful short-term investing is emphasized, as trends can reverse unexpectedly, leading to potential losses [1][2] - A unique short-term trading strategy called "Recent Price Strength" helps identify stocks with strong fundamentals that can maintain their upward momentum [3] - Hanover Bancorp, Inc. (HNVR) has shown a solid price increase of 16.6% over the past 12 weeks, indicating investor confidence in its potential upside [4] Group 2 - HNVR has also experienced a price increase of 7.2% over the last four weeks, suggesting that the upward trend is still intact [5] - The stock is currently trading at 85% of its 52-week high-low range, indicating a potential breakout opportunity [5] - HNVR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6] Group 3 - The Zacks Rank system has a strong track record, with Zacks Rank 1 stocks averaging a +25% annual return since 1988, highlighting the effectiveness of this ranking system [7] - HNVR has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7] - The price trend for HNVR is expected to remain positive, and there are other stocks that also meet the criteria of the "Recent Price Strength" screen [8]

Core Insights - Hanover Bancorp, Inc. (HNVR) reported quarterly earnings of $0.50 per share, exceeding the Zacks Consensus Estimate of $0.41 per share, and showing an increase from $0.38 per share a year ago, representing an earnings surprise of 21.95% [1] - The company generated revenues of $17.06 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.13% and increasing from $15.51 million year-over-year [1] - Hanover Bancorp has outperformed consensus EPS estimates three times in the last four quarters and has topped consensus revenue estimates four times in the same period [1] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $17.2 million, while the estimate for the current fiscal year is $1.56 on revenues of $67.3 million [4] - The estimate revisions trend for Hanover Bancorp is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [4] Industry Context - The Banks - Northeast industry, to which Hanover Bancorp belongs, is currently in the top 20% of over 250 Zacks industries, suggesting a favorable industry outlook [5] - Another company in the same industry, Eastern Bankshares, Inc. (EBC), is expected to report quarterly earnings of $0.33 per share, reflecting a year-over-year increase of 3.1%, with revenues projected at $215.92 million, up 38.1% from the previous year [5]

Financial Performance - Net income for Q3 2024 totaled $3.5 million or $0.48 per diluted share, with adjusted net income of $3.7 million or $0.50 per diluted share[1]. - Net income for the three months ended September 30, 2024, was $3,539, slightly up from $3,523 in the same period last year[37]. - Adjusted net income for Q3 2024 was $3,703,000, compared to $2,791,000 in Q3 2023, representing a significant increase of 32.7%[42]. - Basic earnings per share (EPS) for the three months ended September 30, 2024, remained at $0.48, consistent with the prior year[37]. - Basic earnings per share (EPS) for Q3 2024 was $0.48, unchanged from Q3 2023[40]. Income and Revenue - Record non-interest income reached $4.0 million, a 9.17% increase from Q2 2024 and a 6.66% increase from Q3 2023[1]. - Non-interest income for the nine months ended September 30, 2024, was $11,152, up from $7,437 for the same period in 2023, showing a significant increase of 49.0%[37]. - Interest income for Q3 2024 was $34,113,000, an increase of 17.6% compared to $28,952,000 in Q3 2023[40]. - Net interest income for the three months ended September 30, 2024, was $13,102, an increase from $11,799 for the same period in 2023, representing a growth of 11.0%[37]. - Net interest income after provision for credit losses rose to $12,902,000 in Q3 2024, up from $11,299,000 in Q3 2023, reflecting a year-over-year increase of 14.2%[40]. Loans and Deposits - Total loans amounted to $2.01 billion, a net increase of $48.6 million or 3.31% annualized from December 31, 2023[1]. - Total deposits increased to $1,957,544 as of September 30, 2024, compared to $1,941,929 on June 30, 2024, reflecting a growth of 0.6%[36]. - The Bank's loan portfolio grew to $2.01 billion, an increase of $48.6 million or 3.31% annualized for the nine months ended September 30, 2024[18]. - The residential loan portfolio amounted to $745.9 million with an average loan balance of $483 thousand and a weighted average loan-to-value ratio of 57%[18]. - Total loans amounted to $2,005,813,000, showing a sequential quarter decline of 0.35%[51]. Asset Quality - Non-performing loans totaled $15.5 million, representing 0.77% of the total loan portfolio, with an allowance for credit losses of 1.17%[2]. - Non-performing loans were reported at $15.5 million, representing 0.77% of total loans outstanding as of September 30, 2024[27]. - The allowance for credit losses was $23.4 million as of September 30, 2024, compared to $19.7 million at December 31, 2023[27]. - The allowance for credit losses was $23,406 as of September 30, 2024, compared to $19,658 on December 31, 2023, indicating a rise in provisions[35]. - The allowance for credit losses to total loans ratio remained stable at 1.17%[48]. Operational Efficiency - The operating efficiency ratio for Q3 2024 was reported at 71.75%, an increase from 66.53% in Q3 2023, indicating a decline in operational efficiency[42]. - Non-interest expense increased to $12,238,000 in Q3 2024, up from $10,317,000 in Q3 2023, reflecting a rise of 18.6%[40]. - Compensation and benefits expenses increased to $6,840 for the three months ended September 30, 2024, from $5,351 in the same period last year, marking a rise of 27.8%[37]. Capital and Equity - Total equity increased to $192,339 thousand as of September 30, 2024, up from $190,072 thousand on June 30, 2024, representing a growth of 1.33%[52]. - Tangible common equity (TCE) rose to $172,906 thousand, compared to $170,625 thousand in the previous quarter, reflecting an increase of 1.34%[52]. - Tier 1 capital stood at $198,196,000, with a Tier 1 leverage ratio of 8.85%[48]. - The tangible book value per share increased to $23.28 as of September 30, 2024, compared to $22.73 a year earlier, representing a growth of 2.42%[52]. Branch Expansion - The Company received regulatory approval for a new full-service branch in Port Jefferson, expected to be operational in Q1 2025[2]. - A new branch is set to open in Port Jefferson, New York in the first quarter of 2025, expanding the Bank's presence in the metro-New York area[28].

Core Points - Hanover Bancorp, Inc. hosted a cocktail party to express gratitude to the community and businesses that supported its expansion into Suffolk County [1][2] - The bank emphasizes a philosophy of success through collaboration and community support, recognizing the contributions of local leaders and businesses [2][3] - The new business center in Hauppauge is designed as a state-of-the-art facility, enhancing the local economy and providing various banking services [3][6] Company Overview - Hanover Bancorp, Inc. operates Hanover Community Bank, focusing on personalized banking services tailored to client needs [8] - The bank offers a comprehensive range of financial products, including commercial and consumer banking services, and operates multiple branch locations [9] - The management team consists of local business leaders who understand the financial landscape of the metro-New York area [8]

Financial Performance - For the three months ended June 30, 2024, the Company reported revenue of $16.9 million, an increase of 9.0% from $15.5 million in the same period of 2023[138]. - Net income for the three months ended June 30, 2024, was $0.8 million, a decrease of 72.7% compared to $3.1 million for the same period in 2023[139]. - The company recorded net income of $0.8 million for the three months ended June 30, 2024, down from $3.1 million in the same period in 2023, reflecting a decrease of approximately 74.2%[168]. - For the six months ended June 30, 2024, net income was $4.9 million, down from $6.3 million in the comparable period in 2023, a decrease of approximately 22.2%[178]. Credit Losses and Provisions - The provision for credit losses increased to $4.0 million for the three months ended June 30, 2024, compared to $0.5 million in the same period of 2023[138]. - Provision for credit losses expense increased to $3.9 million for the three months ended June 30, 2024, compared to $0.5 million in the same period in 2023, marking a significant increase of 680%[173]. - The allowance for credit losses increased by $4.0 million, or 20.3%, to $23.6 million, representing 1.17% of total loans as of June 30, 2024[173]. - The provision for credit losses on loans increased to $4.1 million for the six months ended June 30, 2024, compared to $1.4 million for the same period in 2023[184]. Assets and Liabilities - Total assets as of June 30, 2024, were $2.3 billion, with total deposits of $1.9 billion and total stockholders' equity of $190.1 million[139]. - Total assets of the Company were $2.3 billion as of June 30, 2024, unchanged from December 31, 2023[145]. - Total loans increased by $55.8 million to $2.0 billion as of June 30, 2024[146]. - The aggregate amount of outstanding uninsured deposits was $675.7 million, or 34.8% of total deposits as of June 30, 2024[148]. Non-Interest Income and Expenses - Non-interest income rose by $1.6 million for the three months ended June 30, 2024, driven primarily by a $1.5 million increase in net gain on sale of loans, totaling $2.5 million for the quarter[174]. - Total non-interest expense increased by $1.1 million for the three months ended June 30, 2024, primarily due to higher salaries and employee benefits[176]. - Non-interest income rose by $3.5 million to $XX million for the six months ended June 30, 2024, driven by a $3.0 million increase in net gain on sale of loans, with approximately $54.7 million in SBA loans sold[184]. - Total non-interest expense increased by $1.3 million for the six months ended June 30, 2024, primarily due to higher salaries and employee benefits[185]. Capital and Equity - Total stockholders' equity increased to $190.1 million at June 30, 2024, up from $184.8 million at December 31, 2023[157]. - The Company's tier 1 leverage ratio was 8.89% and total risk-based capital ratio was 14.21% as of June 30, 2024, exceeding regulatory guidelines[158]. Interest Rates and Risk Management - The company's net interest margin compressed to 2.46% in the second quarter of 2024 from 2.68% in the same quarter of 2023, reflecting the impact of rising interest rates[169]. - The yield on interest-earning assets increased to 6.22% in the second quarter of 2024 from 5.65% in the same quarter of 2023, an increase of 57 basis points[169]. - The company has implemented strategies to manage interest rate risk, including diversifying interest-earning assets and liabilities, emphasizing core deposits, and utilizing interest rate swap agreements[191]. - The estimated net interest income (NII) at June 30, 2024, is $56,171 thousand, with a projected decrease of $13,005 thousand (23.2%) if interest rates rise by 400 basis points[193]. Regulatory and Compliance - The company adopted ASU 2016-13 effective October 1, 2023, which involves new controls over financial reporting related to credit losses[195]. - The company’s internal controls over financial reporting have not materially changed during the three months ended June 30, 2024, except for those related to the adoption of ASU 2016-13[195]. - The company is not subject to any legal proceedings that could materially affect its financial condition[196]. Business Development - The Company opened a new business banking center in Hauppauge, New York, in May 2023, to enhance commercial lending and deposit activities[134]. - The Company initiated a flow origination program in late 2023 to resume residential loan sales and generate fee income[136].

MINEOLA, N.Y., Aug. 02, 2024 (GLOBE NEWSWIRE) -- Michael P. Puorro, Chairman and Chief Executive Officer of Hanover Bancorp, Inc. the bank holding company for Hanover Community Bank, today announced grants to seventeen local not-for-profit organizations as a part of the Federal Home Loan Bank of New York's (FHLBNY) Small Business Recovery Grant Program. Mr. Puorro stated "These organizations are the very heartbeat of the communities we serve, and we are thrilled that this money will help them in fulfilling ...

Exhibit 99.1 ● Net Income: Net income for the quarter ended June 30, 2024 totaled $0.8 million (after giving effect to an allowance for credit loss ("ACL") on an individually evaluated loan of $2.5 million and a $1.1 million provision resulting from ongoing enhancements to the current expected credit loss ("CECL") model) or $0.11 per diluted share (including Series A preferred shares), versus $4.1 million or $0.55 per diluted share (including Series A preferred shares) in the prior linked quarter and $3.1 m ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File No. 001-41384 HANOVER BANCORP, INC. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdictio ...