Hanover Bancorp(US:HNVR) Newsfilter·2025-04-23 12:00Core Insights - Hanover Bancorp, Inc. reported a net income of $1.5 million or $0.20 per diluted share for the quarter ended March 31, 2025, a decrease from $4.1 million or $0.55 per diluted share in the same quarter of 2024 [3][4][36] - The company declared a cash dividend of $0.10 per share on both common and Series A preferred shares, payable on May 14, 2025 [2][4] - Adjusted net income, excluding core system conversion expenses, was $4.1 million or $0.55 per diluted share for the quarter ended March 31, 2025, unchanged from the prior year [3][41] Financial Performance - Net interest income increased to $14.6 million for the quarter, up $1.7 million or 13.10% from the comparable quarter in 2024 [4][6] - The net interest margin expanded to 2.68% from 2.41% in the same quarter of 2024 [4][27] - The company's effective tax rate decreased to 13.8% in the first quarter of 2025 from 24.9% in the same quarter of 2024 [5] Asset Quality and Loan Portfolio - Non-performing loans decreased by 28.5% to $11.7 million, representing 0.60% of the total loan portfolio [4][25] - The allowance for credit losses increased to 1.17% of total loans as of March 31, 2025 [26] - The loan portfolio decreased by $24.9 million to $1.96 billion from December 31, 2024, primarily due to the management of commercial real estate and multifamily loan concentrations [14] Balance Sheet Highlights - Total assets were $2.29 billion as of March 31, 2025, compared to $2.31 billion at December 31, 2024 [8] - Total deposits decreased by $17.8 million or 0.91% from December 31, 2024, but increased by $19.2 million or 1.00% from March 31, 2024 [9] - Demand deposits increased by $12.6 million or 6.23% from March 31, 2024 [4][9] Strategic Initiatives - The company completed its core processing system conversion to FIS Horizon in February 2025, aimed at enhancing operational efficiencies and customer benefits [4][7] - Hanover continues to focus on niche residential, SBA, and C&I lending, with a loan pipeline of approximately $255 million as of March 31, 2025 [14][15] - The company is exploring opportunities for commercial real estate lending with an emphasis on relationship-based lending [4][7]