Hanover Bancorp(US:HNVR)2025-04-23 12:10Financial Performance - Net income for Q1 2025 was $1.5 million or $0.20 per diluted share, while adjusted net income increased to $4.1 million or $0.55 per diluted share[1][3] - Net income for Q1 2025 was $1,521,000, a decrease of 62.5% from $4,061,000 in Q1 2024[34] - Basic earnings per share (EPS) for Q1 2025 was $0.20, down from $0.55 in Q1 2024, representing a decline of 63.6%[34] - Adjusted net income for Q1 2025, after accounting for conversion expenses, was $4,093,000, unchanged from Q1 2024[39] - The return on average assets decreased to 0.27% in Q1 2025 from 0.74% in Q1 2024[40] Income and Revenue - Interest income for Q1 2025 was $32,837,000, a slight increase from $32,432,000 in Q1 2024[34] - Net interest income after provision for credit losses rose to $14,029,000 in Q1 2025, compared to $12,635,000 in Q1 2024, reflecting a growth of 11.0%[34] - Non-interest income increased to $3,732,000 in Q1 2025, up from $3,576,000 in Q1 2024, marking a growth of 4.4%[34] - Net interest income for Q1 2025 was $14,629,000, an increase from $12,935,000 in Q1 2024, representing a growth of 13.1%[49] Asset Quality - Non-performing loans decreased by 28.5% to $11.7 million, representing 0.60% of the total loan portfolio[1][1] - The Bank's non-performing loans decreased to $11.7 million, down from $16.4 million at December 31, 2024, representing a reduction of $4.7 million[23] - Non-performing loans decreased to $11,697,000 in Q1 2025, down from $16,368,000 in Q4 2024, indicating improved asset quality[45] Loans and Deposits - Demand deposits increased by $12.6 million or 6.23% from March 31, 2024, and $3.9 million or 1.85% from December 31, 2024[1][9] - The loan portfolio decreased by $24.9 million to $1.96 billion, primarily due to the management of commercial real estate and multifamily loan concentrations[1][14] - Total deposits were $1.94 billion, a decrease of $17.8 million or 0.91% from December 31, 2024[1][9] - Total deposits decreased to $1.936 billion at March 31, 2025, from $1.954 billion at December 31, 2024[33] - Total loans decreased to $1,960,674,000 in Q1 2025, a sequential decline of 1.25% from $1,985,524,000 in Q4 2024[47] Capital and Equity - The company's tangible book value per share was $23.62 at March 31, 2025, down from $23.86 at December 31, 2024[1][12] - Stockholders' equity increased to $198,479,000 in Q1 2025, up from $187,693,000 in Q1 2024, reflecting a growth of 5.5%[49] - Tangible common equity ratio improved to 7.80% in Q1 2025 from 7.73% in Q4 2024, indicating stronger capital efficiency[48] - Book value per share decreased to $26.21 in Q1 2025 from $26.48 in Q4 2024, reflecting changes in equity value[45] Operational Efficiency - The operating efficiency ratio for Q1 2025 was reported at 87.12%, significantly higher than 65.44% in Q1 2024[39] - Total adjustments after income taxes for Q1 2025 amounted to $2,572,000, contributing to the adjusted operating efficiency ratio of 69.80%[39] Credit Losses - The allowance for credit losses increased to $22.9 million at March 31, 2025, compared to $22.8 million at December 31, 2024, with the allowance as a percentage of total loans at 1.17%[24] - Provision for credit losses on loans increased to $600,000 in Q1 2025 from $400,000 in Q4 2024, reflecting a significant rise in credit loss provisions[45] Future Plans - The core banking system conversion was completed in February 2025, expected to enhance operational efficiencies and customer benefits[1][6] - The Bank plans to open a new branch in Port Jefferson, New York, in mid-2025, expanding its market presence[26]