Hanover Bancorp(HNVR) - 2025 Q4 - Annual Results

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].