Hanover Bancorp, Inc. Reports Second Quarter 2025 Results Highlighted by Strong Demand Deposit Growth, Continued Margin Expansion and Its Inclusion in the Russell 2000 Index

Core Insights - Hanover Bancorp, Inc. reported a net income of $2.4 million or $0.33 per diluted share for the quarter ended June 30, 2025, a significant increase from $0.8 million or $0.11 per diluted share in the same quarter of 2024 [3][5][39] - The company declared a cash dividend of $0.10 per share on both common and Series A preferred shares, payable on August 13, 2025 [2][4] Financial Performance - Pre-provision net revenue for the quarter was $5.7 million, marking the highest level since Q1 2023 [4][10] - Net interest income increased to $14.8 million, up $1.5 million or 11.69% from the same quarter in 2024, driven by an improved net interest margin of 2.76% [4][6][31] - Demand deposits grew by $28.1 million or 13.03% from the previous quarter, indicating strong performance in C&I and Municipal banking verticals [4][10] Asset Quality and Loan Portfolio - Non-performing loans decreased to $12.7 million, representing 0.64% of the total loan portfolio, down from 0.82% at the end of 2024 [29][30] - The company actively managed its loan diversification strategy, reducing the commercial real estate concentration ratio to 368% of capital [4][16] - The residential loan portfolio amounted to $738.8 million, with a weighted average loan-to-value ratio of 57% [16] Strategic Developments - The company opened its tenth branch in Port Jefferson, New York, as part of its strategic expansion into underserved markets [4][10] - Hanover Bancorp was added to the Russell 2000 Index in late June 2025, enhancing its visibility among institutional investors [4][11] Balance Sheet Highlights - Total assets were reported at $2.31 billion, with total deposits at $1.95 billion as of June 30, 2025 [11][12] - The company maintained a strong liquidity position with undrawn liquidity sources totaling $686.5 million, approximately 274% of uninsured deposit balances [4][11] Non-Interest Expenses - Non-interest expenses increased, particularly in compensation and benefits, due to staffing for the new branch and expansion of the C&I banking teams [5][8] - The effective tax rate for the quarter was 27.8%, slightly up from 27.2% in the comparable quarter of 2024 [5][8]