Hanover Bancorp(US:HNVR)2021-08-18 21:06Revenue and Income - The Company reported revenue of $11.1 million for the three months ended June 30, 2021, representing a 68.1% increase compared to $6.6 million in the same period of 2020[130]. - The Company recorded a net income of $221 thousand, or $0.05 per diluted common share, for the three months ended June 30, 2021, a decrease of 84.3% from $1.4 million, or $0.33 per diluted common share, in the same period of 2020[130]. - Net income for the three months ended June 30, 2021, was $221 thousand, down from $1.4 million in the same period last year, mainly due to increased non-interest expenses[160]. - The company recorded net income of $3.8 million for the nine months ended June 30, 2021, compared to $3.4 million for the same period in 2020, reflecting a $367 thousand increase[175]. Expenses - Non-interest expense increased by 129.9% to $10.7 million for the three months ended June 30, 2021, primarily due to acquisition costs related to the Savoy transaction[130]. - Total non-interest expense increased by $6.6 million, primarily due to $4.2 million in acquisition costs related to the merger with Savoy[175][171]. - Total non-interest expense increased by $6.6 million for the nine months ended June 30, 2021, with acquisition costs related to Savoy rising to $4.2 million from $236 thousand in 2020[183]. Assets and Deposits - Total assets as of June 30, 2021, were $1.5 billion, with total deposits of $1.2 billion and total stockholders' equity of $115.2 million[132]. - Total assets increased to $1.5 billion at June 30, 2021, up from $851.6 million at September 30, 2020[141]. - Total deposits reached $1.2 billion, an increase of $494.7 million, with core deposits representing 60.3% of total deposits[143]. Loans and Credit Quality - Total loans grew to $1.3 billion, a rise of $568.2 million, primarily due to the acquisition of Savoy[142]. - Total non-accrual loans increased to $7.0 million, or 0.54% of total loans, as of June 30, 2021, compared to $953 thousand, or 0.13% of total loans, at September 30, 2020[135]. - The allowance for loan losses as a percentage of total non-accrual loans was 111% as of June 30, 2021, indicating that the Company believes its non-accrual loans are well collateralized[135]. - The provision for loan losses was reduced by $850 thousand, with the allowance for loan losses at $7.9 million as of June 30, 2021[166][175]. - Total loans with credit risk ratings of Special Mention or Substandard increased to $52.7 million at June 30, 2021, from $8.2 million at September 30, 2020[187]. Interest Income and Margin - Net interest income improved by $3.9 million, driven by a 34.1% growth in average interest-earning assets and a 61 basis point increase in net interest margin to 3.74%[161]. - The average cost of interest-bearing liabilities decreased by 109 basis points to 0.70% in the 2021 period, contributing to improved net interest income[162]. - Net interest income increased by $5.8 million or 29.5% for the nine months ended June 30, 2021, driven by a widening net interest margin to 3.69% from 3.15%[175][176]. Capital and Ratios - Total stockholders' equity rose to $115.2 million at June 30, 2021, from $78.0 million at September 30, 2020, primarily due to the Savoy acquisition and net income[151]. - The Bank's tier 1 leverage and total risk-based capital ratios were 11.20% and 15.00%, respectively, exceeding regulatory guidelines for well-capitalized institutions[152]. Economic Value and Sensitivity - The Company's economic value of equity and net interest income sensitivities were within policy limits as of June 30, 2021[197]. - The data indicates that the company is highly sensitive to interest rate changes, with varying impacts on both EVE and NII across different scenarios[198]. - Overall, the financial metrics suggest a cautious outlook on interest rate changes and their potential effects on the company's financial performance[198].