Hanover Bancorp(HNVR) - 2024 Q4 - Annual Results

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].