Hanover Bancorp(US:HNVR) Globenewswire·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][37] - 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][7] - The net interest margin improved to 2.68% from 2.41% in the same quarter of 2024, driven by a decrease in the cost of interest-bearing liabilities [4][27] - The company recorded a provision for credit losses of $0.6 million, with the allowance for credit losses at 1.17% of total loans [26][37] Asset Quality - Non-performing loans decreased by 28.5% to $11.7 million, representing 0.60% of the total loan portfolio [25][4] - The allowance for credit losses increased to $22.9 million, compared to $22.8 million at the end of 2024 [26][4] Balance Sheet Highlights - Total assets were $2.29 billion, a slight decrease from $2.31 billion at the end of 2024 [9][34] - 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 [10][34] - The loan-to-deposit ratio improved to 101% at March 31, 2025, from 102% at December 31, 2024 [10][4] Loan Portfolio - 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 [15][4] - The residential loan portfolio amounted to $733.6 million, with an average loan balance of $486 thousand and a weighted average loan-to-value ratio of 57% [15][4] Strategic Initiatives - The company completed its core processing system conversion to FIS Horizon in February 2025, which is expected to enhance operational efficiencies and customer benefits [4][8] - Hanover Bancorp is focusing on disciplined development of its core business verticals, including niche residential, SBA, and C&I lending [8][4]