AG真人官方

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

Second Quarter Performance Highlights

• Net Income: Net income for the quarter听ended June听30, 2025 totaled $2.4听尘颈濒濒颈辞苍 or $0.33 per diluted share (including Series听A preferred shares).
• Pre-Provision Net Revenue: Pre-provision net revenue was $5.7听尘颈濒濒颈辞苍 resulting in a return on average assets of 1.04% for the quarter听ended June听30, 2025 which was the highest level since the first quarter of 2023.
• Net Interest Income: Net interest income was $14.8听尘颈濒濒颈辞苍 for the quarter听ended June听30, 2025, an increase of $0.2听尘颈濒濒颈辞苍, or 1.13% from the quarter听ended March听31, 2025 and $1.5听尘颈濒濒颈辞苍, or 11.69%, from the quarter听ended June听30, 2024.
• Net Interest Margin Expansion: The Company鈥檚 net interest margin during the quarter听ended June听30, 2025 increased to 2.76% from 2.68% in the quarter听ended March听31, 2025 and 2.46% in the quarter听ended June听30, 2024.
• Demand Deposit Growth: Demand deposits increased $28.1听尘颈濒濒颈辞苍, or 13.03%, from March听31, 2025 and $32.0听尘颈濒濒颈辞苍, or 15.12%, from December听31, 2024, underscoring the success of our C&I听and Municipal banking verticals.听听
• Strong Liquidity Position: At June听30, 2025, undrawn liquidity sources, which include cash and unencumbered securities and secured and unsecured funding capacity, totaled $686.5听尘颈濒濒颈辞苍, or approximately 274% of uninsured deposit balances.听听 Insured and collateralized deposits, which include municipal deposits, accounted for approximately 87% of total deposits at June听30, 2025.
• Loan Diversification Strategy: The Company continues to actively manage its Multi-Family and Commercial AG真人官方 Estate portfolios which resulted in a reduction in the commercial real estate concentration ratio to 368% of capital at June听30, 2025 from 385% at December听31, 2024 and 403% at June听30, 2024. The Company continues to focus loan growth primarily in residential loan products originated for sale to specific buyers in the secondary market, C&I and SBA loans. The Company will selectively explore Commercial AG真人官方 Estate opportunities with an emphasis on relationship based Commercial AG真人官方 Estate lending.
• Asset Quality: At June听30, 2025, the Bank鈥檚 asset quality metrics remained solid with non-performing loans totaling $12.7听尘颈濒濒颈辞苍, representing 0.64% of the total loan portfolio, and the allowance for credit losses equaling 1.10% of total loans, a decrease from non-performing loans totaling $16.4听尘颈濒濒颈辞苍, representing 0.82% of the total loan portfolio, as of December听31, 2024.
• Port Jefferson Branch: In June 2025, the Company continued its strategic expansion in Suffolk County Long Island with the opening of its tenth branch in Port听Jefferson, New York. The Company will continue to be opportunistic in furthering its expansion into the underserved markets of Eastern Long Island.
• Inclusion in Russell 2000: The Company was added to the Russell 2000 Index in late June 2025. The Russell 2000听Index encompasses the 2,000 largest U.S.-traded stocks by objective, market-capitalization rankings, and style attributes. The Russell Indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies.
• Quarterly Cash Dividend: The Company鈥檚 Board of Directors approved a $0.10 per share cash dividend on both common and Series听A preferred shares payable on August听13, 2025 to stockholders of record on August听6, 2025.
  

MINEOLA, N.Y., July 23, 2025 (GLOBE NEWSWIRE) -- Hanover Bancorp, Inc.听(鈥淗anover鈥� or 鈥渢he Company鈥� 鈥撎齆ASDAQ:听HNVR), the holding company for Hanover Community Bank听(鈥渢he听Bank鈥�), today reported results for the quarter听ended June听30, 2025 and the declaration of a $0.10 per share cash dividend on both common and Series听A preferred shares payable on August听13, 2025 to stockholders of record on August听6, 2025.

Earnings Summary for the Quarter听Ended June 30, 2025

The Company reported net income for the quarter听ended June听30, 2025 of $2.4听尘颈濒濒颈辞苍 or $0.33 per diluted share (including Series听A preferred shares), versus $0.8听尘颈濒濒颈辞苍 (after giving effect to an allowance for credit loss听(鈥淎CL鈥�) on an individually evaluated loan of $2.5听尘颈濒濒颈辞苍 and a $1.1听尘颈濒濒颈辞苍 provision resulting from ongoing enhancements to the current expected credit loss (鈥淐ECL鈥�)听model) or $0.11 per diluted share (including Series听A preferred shares) in the quarter听ended June听30, 2024. Returns on average assets, average stockholders鈥� equity and average tangible equity were 0.44%, 4.93% and 5.46%, respectively, for the quarter听ended June听30, 2025, versus 0.15%, 1.77% and 1.97%, respectively, for the comparable quarter of 2024.

The increase in net income recorded in the second quarter of 2025 from the comparable 2024 quarter resulted from an increase in net interest income and a decrease in provision for credit losses. These were partially offset by the increase in non-interest expenses, particularly compensation and benefits, and an increase in income tax expense.听听 The increase in compensation and benefits expense in the second听quarter of 2025 versus the comparable 2024 quarter was primarily related to the staffing of the newly opened Port听Jefferson branch and additions to the C&I听Banking teams, partially offset by lower incentive compensation expense resulting from reduced lending activity and other expense reduction initiatives. The Company鈥檚 effective tax rate was 27.8% in the second听quarter of 2025 and 27.2% in the comparable 2024听quarter. We expect a normalized run rate of 25.0% for the remainder of the year.

Net interest income was $14.8听尘颈濒濒颈辞苍 for the quarter听ended June听30, 2025, an increase of $1.5听尘颈濒濒颈辞苍, or 11.69% from the comparable 2024听quarter. This increase was due to improvement of the Company鈥檚 net interest margin to 2.76% in the 2025听quarter from 2.46% in the comparable 2024 quarter. The cost of interest-bearing liabilities decreased to 3.94% in the 2025听quarter from 4.48% in the comparable 2024听quarter, a decrease of 54听basis points. This decrease was partially offset by a 24听basis point decrease in the yield on interest earning assets to 5.98% in the 2025听quarter from 6.22% in the second听quarter of 2024. Net interest income on a linked听quarter basis increased $0.2听尘颈濒濒颈辞苍 or 1.13%, due to an 8听basis point increase in net interest margin resulting from a 7听basis point decrease in cost of interest-bearing liabilities, partially offset by a 3听basis point decrease on yield on interest earning assets.

Earnings Summary for the Six听Months听Ended June听30,听2025

For the six听months ended June听30, 2025, the Company reported net income of $4.0听尘颈濒濒颈辞苍 or $0.53 per diluted share (including Series听A preferred shares), versus $4.9听尘颈濒濒颈辞苍 or $0.66 per diluted share (including Series听A preferred shares) in the comparable 2024 six-month period. The Company recorded adjusted听(non-GAAP) net income (excluding core听system conversion expenses of $2.6听尘颈濒濒颈辞苍, net of tax) of $6.5听尘颈濒濒颈辞苍 or $0.87 per diluted share in the six听months听ended June听30, 2025, versus net income of $4.9听尘颈濒濒颈辞苍 or $0.66 per diluted share in the comparable 2024 six-month period (which included no adjustments). Returns on average assets, average stockholders鈥� equity and average tangible equity were 0.36%, 4.02% and 4.46%, respectively, for the six听months ended June听30, 2025, versus 0.44%, 5.20% and 5.80%, respectively, for the comparable 2024 period. Adjusted听(non-GAAP) returns, exclusive of core听system conversion expenses on average assets, average stockholders鈥� equity and average tangible equity were 0.59%, 6.63% and 7.35%, respectively, in the six听months ended June听30, 2025, versus 0.44%, 5.20% and 5.80%, respectively, in the comparable of 2024 period.

The decrease in net income recorded for the six听months ended June听30, 2025 from the comparable 2024听period is due to an increase in non-interest expenses, particularly compensation and benefits and the one-time core system conversion expenses. These were partially offset by an increase in net interest income and a decrease in provision for credit losses. The increase in compensation and benefits expense for the six听months ended June听30, 2025 versus the comparable 2024 period was primarily related to additional headcount to staff the new Port听Jefferson branch and expansion of the C&I听lending vertical and lower deferred loan origination costs partially offset by lower incentive compensation expense resulting from reduced lending activity. The Company鈥檚 effective tax rate decreased to 23.0% for the six听months ended June听30, 2025 from 25.3% in the comparable 2024听period.

Net interest income was $29.4听尘颈濒濒颈辞苍 for the six听months ended June听30, 2025, an increase of $3.2听尘颈濒濒颈辞苍, or 12.38% from the comparable 2024 period, due to the improvement of the Company鈥檚 net interest margin to 2.72% in the 2025 period from 2.43% in the comparable 2024 period. The cost of interest-bearing liabilities decreased to 3.98% in the 2025 six听months period from 4.41% in the comparable 2024听period, a decrease of 43听basis points. This decrease was partially offset by a 13听basis point decrease in the yield on interest earning assets to 5.99% in the 2025听period from 6.12% in the comparable 2024听period. The increase in the net interest margin was a result of the late 2024 reductions in the Fed Funds effective rate and the liability sensitive nature of the Bank鈥檚 balance sheet.

Michael P. Puorro, Chairman and Chief Executive Officer, commented on the Company鈥檚 quarterly results: 鈥淥ur second quarter performance, reflects a number of high notes, including increased Pre-Provision Net听Revenue of $5.7听尘颈濒濒颈辞苍, strong non-interest听bearing deposit growth of $28.1听尘颈濒濒颈辞苍, underscoring the success of our C&I听and Municipal banking verticals, and continued improvement in our Net Interest Margin. We are extremely pleased with the recent opening of our Port听Jefferson branch and will continue to be opportunistic in furthering our expansion into the underserved markets of Eastern Long Island. With our inclusion in the Russell听2000, the continued development of our diversified revenue verticals and liability sensitive balance sheet, we look forward to delivering continued shareholder value and the eventual benefits of a more favorable interest rate environment.鈥�

Balance Sheet Highlights

Total assets were $2.31听产颈濒濒颈辞苍 at June听30, 2025 and December听31, 2024. Total securities available for sale at June听30, 2025 were $102.6听尘颈濒濒颈辞苍, an increase of $18.9听尘颈濒濒颈辞苍 from December听31, 2024, primarily driven by growth in collateralized mortgage obligations, collateralized loan obligations and corporate bonds.

Total deposits were $1.95听产颈濒濒颈辞苍 at June听30, 2025 and December听31, 2024. Total deposits increased $9.4听尘颈濒濒颈辞苍 or 0.48% from June听30, 2024. Demand deposits increased $43.8听尘颈濒濒颈辞苍 or 21.93% from June听30, 2024 and $32.0听尘颈濒濒颈辞苍, or 15.12%, from December听31, 2024 underscoring the success of our C&I and Municipal banking verticals.听听 Our loan to deposit ratio improved to 101% at June听30, 2025 from 102% at December听31, 2024.

The Company had $517.4听尘颈濒濒颈辞苍 in total municipal deposits at June听30, 2025, at a weighted average rate of 3.67% versus $509.3听尘颈濒濒颈辞苍 at a weighted average rate of 3.72% at December听31, 2024 and $452.6听尘颈濒濒颈辞苍 at a weighted average rate of 4.61% at June听30, 2024. The Company鈥檚 municipal deposit program is built on long-standing relationships developed in the local marketplace. This core deposit business will continue to provide a stable source of funding for the Company鈥檚 lending products at costs lower than those of consumer deposits and market-based borrowings.听听 The Company continues to broaden its municipal deposit base and currently services 40听customer relationships.

Total borrowings at June听30, 2025 were $107.8听尘颈濒濒颈辞苍, with a weighted average rate and term of 4.11% and 17听months, respectively. At June听30, 2025 and December听31, 2024, the Company had $107.8听尘颈濒濒颈辞苍 of term FHLB advances outstanding. The Company had no FHLB overnight borrowings outstanding at June听30, 2025 and December听31, 2024. The Company had no borrowings outstanding under lines of credit with correspondent banks at June听30, 2025 and December听31, 2024.

Stockholders鈥� equity was $198.9听尘颈濒濒颈辞苍 at June听30, 2025 and compared to $196.6听尘颈濒濒颈辞苍 at December听31, 2024. Retained earnings increased by $2.5听尘颈濒濒颈辞苍 due primarily to net income of $4.0听尘颈濒濒颈辞苍 for the six听months ended June听30, 2025, which was offset by $1.5听尘颈濒濒颈辞苍 of dividends declared. The accumulated other comprehensive loss at June听30, 2025 was 0.62% of total equity and was comprised of a $0.7听尘颈濒濒颈辞苍 after tax net unrealized loss on the investment portfolio and a $0.5听尘颈濒濒颈辞苍 after tax net unrealized loss on derivatives.听听 Tangible book value per share (including Series听A preferred shares) was $23.94 at June听30, 2025 compared to $23.86 at December听31, 2024.

Loan Portfolio

For the six months听ended June听30, 2025, the Bank鈥檚 loan portfolio decreased $19.1听尘颈濒濒颈辞苍 to $1.97听产颈濒濒颈辞苍 from December听31, 2024. The decrease resulted primarily from the ongoing management of our commercial real estate and multifamily听loan concentrations. On a linked quarter basis, net loans increased $5.8听尘颈濒濒颈辞苍. At June听30, 2025, the Company鈥檚 residential loan portfolio (including home听equity) amounted to $738.8听尘颈濒濒颈辞苍, with an average loan balance of $489听迟丑辞耻蝉补苍诲 and a weighted average loan-to-value ratio of 57%.听听 Commercial real estate (including construction) and multifamily loans totaled $1.08听产颈濒濒颈辞苍 at June听30, 2025, with an average loan balance of $1.5听尘颈濒濒颈辞苍 and a weighted average loan-to-value ratio of 59%. As will be discussed below, approximately 36% of the multifamily portfolio is subject to rent regulation. The Company鈥檚 commercial real estate concentration ratio continues to improve, decreasing to 368% of capital at June听30, 2025 from 385% at December听31, 2024 and 403% at June听30, 2024, with loans secured by office space accounting for 2.48% of the total loan portfolio and totaling $48.9听尘颈濒濒颈辞苍 at June听30, 2025. The Company鈥檚 loan pipeline with executed term听sheets at June听30, 2025 is approximately $190.2听尘颈濒濒颈辞苍, with approximately 81% being niche-residential, conventional C&I, SBA and USDA lending opportunities.

The Bank remains focused on expanding its core verticals and continues to originate loans for its portfolio and for sale in the secondary market under its residential flow origination program. The Bank originated $62.2听尘颈濒濒颈辞苍 in residential loans in the quarter听ended June听30, 2025. During the quarters听ended June听30, 2025 and 2024, the Company sold $23.7听尘颈濒濒颈辞苍 and $2.9听尘颈濒濒颈辞苍, respectively, of residential loans under its flow origination program and recorded gains on sale of loans held-for-sale of $0.5听尘颈濒濒颈辞苍 and $0.1听尘颈濒濒颈辞苍, respectively.

During the quarters听ended June听30, 2025 and 2024, the Company sold approximately $22.3听尘颈濒濒颈辞苍 and $28.0听尘颈濒濒颈辞苍, respectively, in government听guaranteed SBA听loans and recorded gains on sale of loans held-for-sale of $1.8听尘颈濒濒颈辞苍 and $2.5听尘颈濒濒颈辞苍, respectively. SBA loan originations and gains on sale were lower than expected due to a confluence of factors. One factor is the impact of the 鈥渉igher-for-longer鈥� interest rate environment that we believe has both worsened the financial condition of and reduced demand among small business borrowers, resulting in a lower volume of creditworthy customers. Another factor is the negative impact of and uncertainty created by tariffs, which we believe have also dampened loan demand among borrowers in certain industries. A third factor is the Bank鈥檚 decision to tighten credit over the course of the last year. Although management continues to believe this to be a prudent measure, it has nonetheless resulted in a lower volume of loan approvals, causing the Bank to re-evaluate the number and caliber of its business development officers. Taken together these and other factors have adversely impacted SBA loan originations and closings. With the addition of additional business development officers in the second听half of 2025, we anticipate higher volumes of eligible loans as we transition into 2026. The Bank concluded the second quarter of 2025 with C&I loan originations of approximately $29.3听尘颈濒濒颈辞苍. Based on its existing pipeline, the Bank expects C&I lending and deposit activity to grow as the year progresses.

Commercial AG真人官方 Estate Statistics

A significant portion of the Bank鈥檚 commercial real estate portfolio consists of loans secured by Multi-Family and CRE-Investor owned real estate that are predominantly subject to fixed interest rates for an initial period of 5听years. The Bank鈥檚 exposure to Land/Construction loans is minor at $8.2听尘颈濒濒颈辞苍, all at floating interest rates. As shown below, 31% of the loan balances in these combined portfolios will either have a rate reset or mature in 2025 and 2026, with another 57% with rate resets or maturing in 2027.

Stabilized Multi-Family Pro Forma Stress Results

The table below reflects a proforma stressed evaluation of the Bank鈥檚 Multifamily stabilized loan portfolio, using the primary assumption for a revised Debt Service Coverage Ratio听(鈥淒SCR鈥�) calculation, for all loans where the current interest rate is below 6%. The current balance for these loans is recast at 6% with a 30-year amortization. The chart below reflects the impact of these adjustments on the portfolio. The projected loan to value听(鈥淟TV鈥�) assumption resets all loans using a 6% cap rate and the last reported property net operating income听(鈥淣OI鈥�) to determine an implied property valuation and based on the current loan balance the resultant LTV.

As reflected above, the results show approximately 3%, or 10听loans totaling $18听million of the total multi-family portfolio would have proforma DSCR鈥檚 less than 1x while maintaining projected weighted average LTV鈥檚 under 100%. Additionally, approximately 97% or 89听loans totaling $178听million would possess DSCR鈥檚 greater than 1x while maintaining a projected weighted average LTV well within our policy guidelines. We believe the overall demand for multifamily housing in our market will allow our borrowers to address any adverse impact proactively, as evidenced by the maturities and rate resets in the previous 12听months which have been successfully refinanced with other institutions at market rates similar to those used in the above analysis.

Rental breakdown of Multi-Family portfolio

The table below segments our portfolio of loans secured by Multi-Family properties based on rental terms and location. As shown below, 64% of the combined portfolio is secured by properties subject to free market rental terms, which is the dominant tenant type. Both the Market Rent and Stabilized Rent segments of our portfolio present very similar average borrower profiles. The portfolio is primarily located in the New听York听City boroughs of Brooklyn, the听Bronx and Queens.

Office Property Exposure

The Bank鈥檚 exposure to the Office market is minor.听听 Loans secured by office space accounted for 2.48% of the total loan portfolio with a total balance of $48.9听尘颈濒濒颈辞苍, of which less than听1% is located in Manhattan. The pool has a 2.48x听weighted average DSCR, a 53%听weighted average听LTV and less than $350,000 of exposure in Manhattan.

Asset Quality and Allowance for Credit Losses

The Bank鈥檚 asset quality metrics remain solid. At June听30, 2025, the Bank reported $12.7听尘颈濒濒颈辞苍 in non-performing loans compared to $16.4听尘颈濒濒颈辞苍 at December听31, 2024, a decrease of $3.7听million. This decrease resulted primarily from the proactive sale of non-performing loans, satisfactions and the charge-off of a specific reserve established in June听2024 on an individually evaluated commercial loan. At June听30, 2025 non-performing loans were 0.64% of total loans outstanding versus 0.82% at December听31, 2024.

During the second quarter of 2025, the Bank recorded a provision for credit losses expense of $2.4听尘颈濒濒颈辞苍 (including $187听thousand provision for credit losses on unfunded commitments). Net charge-offs of $3.5听million were incurred during the quarter, of which $2.5听尘颈濒濒颈辞苍 is attributable to the aforementioned charge-off of a specific reserve on an individually evaluated commercial loan. The June听30, 2025 allowance for credit losses was $21.6听million versus $22.8听million at December听31, 2024. The allowance for credit losses as a percentage of total loans was 1.10% at June听30, 2025 and 1.15% at December听31, 2024.

Net Interest Margin

The Bank鈥檚 net interest margin increased to 2.76% for the quarter听ended June听30, 2025 compared to 2.68% in the quarter听ended March听31, 2025 and 2.46% in the quarter听ended June听30, 2024 due to the continuing effects of the late 2024 reductions in the Federal Funds effective rate and the liability sensitive nature of the Bank鈥檚 balance sheet.

About Hanover Community Bank and Hanover Bancorp, Inc.

Hanover Bancorp, Inc. (NASDAQ: HNVR), is the bank holding company for Hanover Community Bank, a community commercial bank focusing on highly personalized and efficient services and products responsive to client needs. Management and the Board of Directors are comprised of a select group of successful local businesspeople who are committed to the success of the Bank by knowing and understanding the metro-New York area鈥檚 financial needs and opportunities. Backed by state-of-the-art technology, Hanover offers a full range of financial services. Hanover offers a complete suite of consumer, commercial, and municipal banking products and services, including multi-family and commercial mortgages, residential loans, business loans and lines of credit. Hanover also offers its customers access to 24-hour ATM service with no fees attached, free checking with interest, telephone banking, advanced technologies in mobile and internet banking for our consumer and business customers, safe deposit boxes and much more. The Company鈥檚 corporate administrative office is located in Mineola, New听York where it also operates a full-service branch office along with additional branch locations in Garden听City Park, Hauppauge, Port听Jefferson, Forest听Hills, Flushing, Sunset听Park, Rockefeller听Center and Chinatown, New听York, and Freehold, New听Jersey.

Hanover Community Bank is a member of the Federal Deposit Insurance Corporation and is an Equal Housing/Equal Opportunity Lender. For further information, call (516)听548-8500 or visit the Bank鈥檚 website at .

Non-GAAP Disclosure

This discussion, including the financial statements attached thereto, includes non-GAAP financial measures which include the Company鈥檚 adjusted net income, adjusted basic and diluted earnings per share, adjusted return on average assets, adjusted return on average equity, tangible common equity听(鈥淭CE鈥�)听ratio, TCE, tangible assets, tangible book听value per share, return on average tangible equity and efficiency听ratio. A non-GAAP financial measure is a numerical measure of historical or future performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (鈥淯.S.听GAAP鈥�). The Company鈥檚 management believes that the presentation of non-GAAP financial measures provides both management and investors with a greater understanding of the Company鈥檚 operating results and trends in addition to the results measured in accordance with GAAP, and provides greater comparability across time periods. While management uses non-GAAP financial measures in its analysis of the Company鈥檚 performance, this information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP. The Company鈥檚 non-GAAP financial measures may not be comparable to similarly titled measures used by other financial institutions.

With respect to the calculations of and reconciliations of adjusted net income, TCE, tangible assets, TCE听ratio and tangible book value per share, reconciliations to the most comparable U.S.听GAAP measures are provided in the tables that follow.

Forward-Looking Statements

This release may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform听Act of 1995 and may be identified by the use of such words as "may," "believe," "expect," "anticipate," "should," "plan," "estimate," "predict," "continue," and "potential" or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of Hanover Bancorp,听Inc. Any or all of the forward-looking statements in this release and in any other public statements made by Hanover Bancorp, Inc. may turn out to be incorrect. They can be affected by inaccurate assumptions that Hanover Bancorp, Inc. might make or by known or unknown risks and uncertainties, including those discussed in our Annual Report on Form听10-K under Item听1A听-听Risk Factors, as updated by our subsequent filings with the Securities and Exchange Commission. Further, the adverse effect of health emergencies or natural disasters on the Company, its customers, and the communities where it operates may adversely affect the Company鈥檚 business, results of operations and financial condition for an indefinite period of time. Consequently, no forward-looking statement can be guaranteed. Hanover Bancorp,听Inc. does not intend to update any of the forward-looking statements after the date of this release or to conform these statements to actual events.

Investor and Press Contact:
Lance P. Burke
Chief Financial Officer
(516) 548-8500