Hanover Bancorp(US:HNVR)2025-01-29 12:35Financial Performance - Net income for Q4 2024 totaled $3.9 million, or $0.52 per diluted share, compared to $3.8 million, or $0.51 per diluted share in Q4 2023[4]. - Net income for the year ended December 31, 2024, was $12,346 thousand, a decrease of 9.14% from $13,589 thousand in 2023[35]. - Basic earnings per share (EPS) for the three months ended December 31, 2024, was $0.53, compared to $0.51 in the same period of 2023, reflecting a growth of 3.92%[35]. Income and Revenue - Record non-interest income of $4.2 million in Q4 2024, an increase of 5.89% from Q3 2024 and 28.67% from Q4 2023[1]. - Non-interest income for the year ended December 31, 2024, was $15,339 thousand, an increase of 43.36% from $10,691 thousand in 2023[35]. - Net interest income was $13.8 million in Q4 2024, up $1.1 million or 9.08% from Q4 2023, with a net interest margin of 2.53%[6]. - For Q4 2024, Hanover Bancorp reported net interest income of $13,808,000, an increase from $12,659,000 in Q4 2023, reflecting a margin of 2.53% compared to 2.40%[51]. - For the full year 2024, net interest income was $53,092,000, compared to $51,887,000 in 2023, with a margin of 2.44% versus 2.59%[52]. Assets and Deposits - Total assets increased to $2.31 billion at December 31, 2024, compared to $2.27 billion at December 31, 2023[12]. - Total deposits increased by $49.7 million or 2.61% year-over-year, reaching $1.95 billion at December 31, 2024[13]. - Total deposits reached $1,954,283 thousand as of December 31, 2024, compared to $1,904,595 thousand a year earlier, marking an increase of 2.62%[34]. - Total deposits slightly decreased to $1,954,283,000 in Q4 2024, with a sequential quarter growth rate of (0.17)%[48]. Loans and Credit Quality - The Bank's loan portfolio grew to $1.99 billion, an increase of $28.3 million or 1.45% for the year ended December 31, 2024[17]. - Total loans decreased to $1,985,524,000 in Q4 2024, reflecting a sequential quarter growth rate of (1.01)%[48]. - Non-performing loans totaled $16.4 million, representing 0.82% of total loans outstanding as of December 31, 2024[26]. - The allowance for credit losses was 1.15% of total loans, with non-performing loans totaling $16.4 million, representing 0.82% of the total loan portfolio[3]. - Provision for credit losses on loans increased to $400,000 in Q4 2024 from $200,000 in Q3 2024, while net charge-offs were $(1,027,000) in Q4 2024[44]. Equity and Book Value - Stockholders' equity rose to $196.6 million at December 31, 2024, an increase of $11.8 million from the previous year[16]. - The Company reported a tangible book value per share of $23.86 at December 31, 2024, a 9.97% annualized increase from $23.28 at September 30, 2024[3]. - Book value per share increased to $26.48 in Q4 2024, compared to $25.89 in Q3 2024[44]. - Tangible common equity (TCE) ratio improved to 7.73% in Q4 2024, up from 7.49% in Q3 2024[50]. Operational Efficiency and Future Outlook - The Company expects to complete a core processing system conversion by February 15, 2025, aimed at improving operational efficiency and customer experience[10]. - The Company expects the volume of SBA loan activity to increase in 2025, focusing on originations for sale over portfolio growth[19]. - The Company's loan pipeline with executed term sheets at December 31, 2024, is approximately $237 million, with 89% being niche-residential, conventional C&I, and SBA & USDA lending opportunities[17].