First Quarter Performance Highlights
-- Net Income: Net income for the quarter ended March 31, 2026 totaled
$1.9 million or $0.25 per diluted share (including Series A preferred
shares). Adjusted (non-GAAP) net income (excluding severance expenses)
was $4.0 million or $0.54 per diluted share for the quarter ended
March 31, 2026.
-- Net Interest Income: Net interest income was $16.4 million for the
quarter ended March 31, 2026, an increase of $0.5 million, or 3.36% from
the quarter ended December 31, 2025 and $1.7 million, or 11.85%, from the
quarter ended March 31, 2025, representing the highest level since the
third quarter of 2022.
-- Net Interest Margin Expansion: The Company's net interest margin for the
quarter ended March 31, 2026 increased to 2.96% from 2.84% for the
quarter ended December 31, 2025 and 2.68% in the quarter ended March 31,
2025.
-- Subordinated Debt: On March 12, 2026, the Company completed the private
placement of $35 million of 7.25% fixed-to-floating subordinated notes
due in 2036. Proceeds were used to redeem the Company's previously
outstanding 8.54% floating rate subordinated notes on April 15, 2026 and
to enhance the Bank's capital base.
-- Executed Wholesale Funding Optimization: In February 2026, the Bank
proactively restructured $60.3 million of FHLB advances into new,
flexible, put-feature advances. The restructuring reduced the weighted
average borrowing cost from 4.27% to 3.47%, saving approximately $40
thousand in monthly interest expense, while maintaining term funding and
call protection.
-- Quarterly Cash Dividend: The Company's Board of Directors approved a
$0.10 per share cash dividend on both common shares and Series A
preferred shares payable on May 18, 2026 to stockholders of record on
May 11, 2026.
-- Long Island Expansion: Regulatory authorization has been received for the
opening of a full-service branch in a state-of-the-art facility in
downtown Riverhead, New York. In anticipation of the branch opening later
this year, a temporary loan production office in Riverhead with business
development staff became operational in March 2026.
MINEOLA, N.Y., April 27, 2026 (GLOBE NEWSWIRE) -- Hanover Bancorp, Inc. ("Hanover" or "the Company" -- NASDAQ: HNVR), the holding company for Hanover Community Bank ("the Bank"), today reported results for the quarter ended March 31, 2026 and the declaration of a $0.10 per share cash dividend on both common shares and Series A preferred shares payable on May 18, 2026 to stockholders of record on May 11, 2026.
Earnings Summary for the Quarter Ended March 31, 2026
The Company reported net income for the quarter ended March 31, 2026 of $1.9 million or $0.25 per diluted share (including Series A preferred shares) versus $1.5 million or $0.20 per diluted share (including Series A preferred shares) for the quarter ended March 31, 2025. The Company recorded adjusted (non-GAAP) net income (excluding severance expenses of $2.1 million, net of tax) of $4.0 million or $0.54 per diluted share in the quarter ended March 31, 2026, versus adjusted (non-GAAP) net income (excluding core system conversion expenses of $2.6 million, net of tax) of $4.1 million or $0.55 per diluted share in the comparable 2025 quarter. Returns on average assets, average stockholders' equity and average tangible equity were 0.33%, 3.74% and 4.14%, respectively, for the quarter ended March 31, 2026, versus 0.27%, 3.11% and 3.45%, respectively, for the comparable quarter of 2025. Adjusted (non-GAAP) returns, exclusive of severance expenses, on average assets, average stockholders' equity and average tangible equity were 0.70%, 7.98% and 8.83%, respectively, in the quarter ended March 31, 2026, versus 0.73%, 8.36% and 9.27%, respectively, in the comparable 2025 quarter, exclusive of core system conversion expenses for the 2025 quarter.
The increase in net income recorded in the first quarter of 2026 from the comparable 2025 quarter resulted from an increase in net interest income. This was partially offset by a decrease in non-interest income, consisting primarily of gain on sale of loans held-for-sale and an increase in income tax expense.
Non-interest expense for the three months ended March 31, 2026 includes a severance payment related to a Board approved Transition Agreement dated February 12, 2026 between the Company and the former President of the Company and the Bank, McClelland Wilcox. In connection with a management restructuring initiative, Mr. Wilcox's last day of employment was March 31, 2026 and, pursuant to the terms of his Employment Agreement, he was entitled to a severance benefit of approximately $2.15 million.
Net interest income was $16.4 million for the quarter ended March 31, 2026, an increase of $1.7 million, or 11.85% from the comparable 2025 quarter. This increase was due to improvement in the Company's net interest margin to 2.96% in the 2026 quarter from 2.68% in the comparable 2025 quarter. The cost of interest-bearing liabilities decreased to 3.51% in the 2026 quarter from 4.01% in the comparable 2025 quarter, a decrease of 50 basis points. This decrease was partially offset by a 17 basis point decrease in the yield on interest earning assets to 5.84% in the 2026 quarter from 6.01% in the first quarter of 2025. Net interest income on a linked quarter basis increased $0.5 million or 3.36%, resulting from a 16 basis point decrease in cost of interest-bearing liabilities. Excluding interest expense of $100 thousand resulting from the temporary carrying of multiple subordinated debt issuances, as discussed below, the Bank's net interest margin was 2.98% for the quarter ended March 31, 2026.
On March 12, 2026, the Company issued $35 million of 10-year fixed-to-floating rate subordinated notes with a fixed coupon rate of 7.25% for the first five years. The Company used the net proceeds to provide capital to support growth of the consolidated entity and to redeem in full, its previously outstanding $25 million of 8.54% floating rate subordinated notes on April 15, 2026, thereby reducing the Company's cost of funds.
Michael P. Puorro, Chairman, President and Chief Executive Officer, commented on the Company's quarterly results: "We are pleased with first quarter 2026 results which reflect strengthening core performance and disciplined balance sheet management, highlighted by $4.0 million in adjusted net income, increasing return on average assets, credit stabilization, and continued margin expansion to 2.96%. We also enhanced our capital position through a $35 million subordinated debt issuance, reduced funding costs through proactive balance sheet optimization, maintained our commitment to shareholder returns with a quarterly dividend, and advanced our strategic expansion into Long Island."
Balance Sheet Highlights
Total assets were $2.37 billion at March 31, 2026 versus $2.38 billion at December 31, 2025. Total securities available for sale ("AFS") at March 31, 2026 were $105.8 million, an increase of $6.2 million from December 31, 2025, primarily driven by growth in U.S. GSE residential mortgage-backed securities and corporate bonds, offset by decreases in U.S. Treasury securities and collateralized loan obligations.
Total deposits were $2.02 billion at March 31, 2026 versus $2.03 billion at December 31, 2025. Our loan to deposit ratio was 99% both at March 31, 2026 and December 31, 2025.
In February 2026, the Bank executed a proactive wholesale funding optimization strategy, restructuring five FHLB advances maturing in 2027 and 2028 and totaling $60.3 million in two new advances of equal principal with embedded put features to enhance balance sheet flexibility. The transaction reduced the weighted average all-in borrowing cost from 4.27% to 3.47%, generating approximately $40 thousand in monthly interest expense savings while preserving appropriate term funding and call protection.
Borrowings at March 31, 2026 were $59.8 million, with a weighted average rate and term of 3.49% and 54 months, respectively. At March 31, 2026 and December 31, 2025, the Company had $59.8 million (net of $470 thousand deferred prepayment penalty) and $100.7 million, respectively, of term FHLB advances outstanding. The Company had no FHLB overnight borrowings outstanding at March 31, 2026 and December 31, 2025. The Company had no borrowings outstanding under lines of credit with correspondent banks at March 31, 2026 and December 31, 2025.
Stockholders' equity was $201.4 million at March 31, 2026 as compared to $200.3 million at December 31, 2025. Retained earnings increased by $1.1 million due primarily to net income of $1.9 million for the quarter ended March 31, 2026, which was offset by $0.7 million of dividends declared. The accumulated other comprehensive loss at March 31, 2026 was 0.33% of total equity and was comprised of a $0.4 million after tax net unrealized loss on the investment portfolio and a $0.2 million after tax net unrealized loss on derivatives. Book value per share (including Series A preferred shares) increased to $27.11 at March 31, 2026 from $27.02 at December 31, 2025. Tangible book value per share (including Series A preferred shares) increased to $24.50 at March 31, 2026 from $24.41 at December 31, 2025.
Loan Portfolio
The Bank's loan portfolio was $1.99 billion at March 31, 2026 and $2.00 billion at December 31, 2025. At March 31, 2026, the Company's residential loan portfolio (including home equity) amounted to $764.1 million, with an average loan balance of $491 thousand and a weighted average loan-to-value ratio of 56%. Commercial real estate (including construction) and multifamily loans totaled $1.08 billion at March 31, 2026, with an average loan balance of $1.5 million and a weighted average loan-to-value ratio of 59%. As discussed below, approximately 35% of the multifamily portfolio is subject to rent regulation. The Company's commercial real estate concentration ratio continues to improve, decreasing to 354% of capital at March 31, 2026 from 362% at December 31, 2025, with loans secured by office space accounting for 2% of the total loan portfolio and totaling $41.5 million at March 31, 2026. The Company's loan pipeline at March 31, 2026 is approximately $114.7 million, with approximately 58% being niche-residential, SBA and USDA lending opportunities.
The Bank originates loans for its portfolio and for sale in the secondary market under a residential flow origination program. During the quarters ended March 31, 2026 and 2025, the Company sold $35.2 million and $18.3 million, respectively, of residential loans under its flow origination program and recorded gains on sale of loans held-for-sale of $0.9 million and $0.4 million, respectively. Residential loan originations were $32 million for the quarter ended March 31, 2026.
During the quarters ended March 31, 2026 and 2025, the Company sold approximately $6.3 million and $23.4 million, respectively, in government guaranteed SBA loans and recorded gains on sale of loans held-for-sale of $0.5 million and $1.9 million, respectively. SBA loan originations and gains on sale continue to be lower due to a less favorable economic outlook for many business owners along with the Bank's ongoing prudent decision to tighten credit. Together, these factors contributed to lower SBA loan volume, approval levels, and related gain-on-sale income.
Commercial Real Estate Statistics
A significant portion of the Bank's commercial real estate portfolio consists of loans secured by Multifamily and CRE-Investor owned real estate that are predominantly subject to fixed interest rates for an initial period of 5 years. The Bank's exposure to Land/Construction loans as of March 31, 2026 is not significant at $11.5 million, all at floating interest rates. As shown below, as of March 31, 2026, 21% of the loan balances in these combined portfolios will either have a rate reset or mature in 2026, with another 55% with rate resets or maturing in 2027.
Multifamily Market Rent Portfolio Fixed Rate Multifamily Stabilized Rent Portfolio Fixed Rate
Reset/Maturity Schedule Reset/Maturity Schedule
------------------------------------------------------ -----------------------------------------------------
Calendar Total Calendar
Period (Loan O/S Avg O/S Avg Period (Loan Total O/S Avg O/S Avg
Data as of # ($000's ($000's Interest Data as of # ($000's ($000's Interest
3/31/2026) Loans omitted) omitted) Rate 3/31/2026) Loans omitted) omitted) Rate
-------------- ----- -------- -------- ---------- ------------- ----- --------- -------- ----------
2026 29 $ 86,070 $ 2,968 3.76% 2026 16 $ 35,838 $ 2,240 3.89%
2027 70 185,867 2,655 4.39% 2027 51 120,805 2,369 4.22%
2028 15 20,598 1,373 6.14% 2028 12 9,962 830 7.07%
2029 7 11,156 1,594 6.58% 2029 4 4,251 1,063 6.38%
2030 8 20,180 2,523 6.19% 2030 7 13,542 1,935 6.32%
2031+ 12 35,462 2,955 5.58% 2031+ 6 6,456 1,076 3.82%
----- ------- ------- ---- ----- -------- ------- -----
Fixed Rate 141 359,333 2,548 4.62% Fixed Rate 96 190,854 1,988 4.49%
Floating Rate 1 105 105 9.50% Floating Rate 1 447 447 9.00%
----- ------- ------- ---- ----- -------- ------- -----
Total 142 $359,438 $ 2,531 4.63% Total 97 $ 191,301 $ 1,972 4.50%
--------------- ----- ------- ------- ---- --- ------------- ----- -------- ------- -----
CRE Investor Portfolio Fixed Rate Reset/Maturity Schedule
--------------------------------------------------------------------------
Calendar
Period (Loan Avg
Data as of # Total O/S Avg O/S Interest
3/31/2026) Loans ($000's omitted) ($000's omitted) Rate
-------------- ----- ------------------ ------------------ ----------
2026 34 $ 50,188 $ 1,476 6.11%
2027 83 137,570 1,657 4.73%
2028 28 30,261 1,081 6.65%
2029 5 5,894 1,179 6.70%
2030 14 13,426 959 6.98%
2031+ 16 16,019 1,001 5.56%
----- -------------- -------------- -----
Fixed Rate 180 253,358 1,408 5.45%
Floating Rate 10 10,003 1,000 8.39%
----- -------------- -------------- -----
Total CRE-Inv. 190 $ 263,361 $ 1,386 5.56%
--------------- ----- -------------- -------------- -----
Stabilized Multifamily Pro Forma Stress Results
The table below reflects a pro forma stressed evaluation of the Bank's Multifamily stabilized loan portfolio as of March 31, 2026, using the primary assumption for a revised Debt Service Coverage Ratio ("DSCR") calculation, for all loans where the current interest rate is below 5.75%. The current balance for these loans is recast at 5.75% with a 30-year amortization. The chart below reflects the impact of these adjustments on the portfolio. The projected loan to value ("LTV") assumption resets all loans using a 6% cap rate (despite lower current cap rates) and the last reported property net operating income ("NOI") to determine an implied property valuation and based on the current loan balance, the resultant LTV.
Multifamily Stabilized Rent Portfolio (Loan Data as
of 3/31/2026)
------------------------------------------------------------------------
Current Projected
% of Total Weighted Weighted
DSCR # Total O/S MF Average Average
Range Loans ($000's omitted) Portfolio LTV LTV
------ ----- ------------------ ----------- ---------- -----------
< 1.0 6 $ 11,091 2% 64% 96%
1.0 < x
< 1.2 17 35,911 7% 63% 73%
1.2 < x
< 1.3 13 40,891 7% 63% 71%
1.3 < x
< 1.5 27 60,886 11% 63% 61%
1.5 < x
< 2.0 21 34,183 6% 58% 53%
x > 2.0 13 8,339 2% 44% 36%
----- -------------- --- ---
Total 97 $ 191,301 35% 61% 65%
------- ----- -------------- --- ----- ----- --- -----
As reflected above, only 6 loans totaling $11 million in the multifamily rent stabilized portfolio would have a pro forma DSCR less than 1x while maintaining projected weighted average LTV's under 100%. This represents 2% of the total multifamily portfolio. The remainder of this portfolio, totaling $180 million, representing 33% of the entire multifamily portfolio, would possess DSCR's greater than 1x while maintaining a projected weighted average LTV well within our policy guidelines. Additionally, 73% of the stabilized loans and 73% of the entire multifamily portfolio are further secured with personal guarantees from the borrowers. Based on the maturities and rate resets in the previous 12 months, we believe the overall demand for multifamily housing in our market will allow our borrowers to address any adverse impact proactively. The Bank continues to successfully manage multifamily loans with scheduled rate repricing or maturities. Matured loans that qualified for renewal have been retained while others have paid off in full through refinances. The majority of the rate resetting loans remain as performing loans at the new higher interest rate.
Rental breakdown of Multifamily portfolio
The table below segments our portfolio of loans secured by Multifamily properties based on rental terms and location as of March 31, 2026. As shown below, 65% 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 York City boroughs of Brooklyn, the Bronx and Queens.
Multifamily Loan Portfolio - Loans by Rent Type (Loan
Data as of 3/31/2026)
----------------------------------------------------------------------------------------------------------
# of Outstanding % of Total Avg Loan Current Avg #
Rent Type Notes Loan Balance Multifamily Size LTV DSCR of Units
----------- ----- ------------------ ----------- ------------------ ---- ------- ---------
($000's omitted) ($000's omitted)
Market 142 $ 359,438 65 % $ 2,531 61.0 % 1.45 11
Location
Manhattan 7 $ 16,079 3 % $ 2,297 54.5 % 1.82 13
Other NYC 93 $ 260,556 47 % $ 2,802 60.9 % 1.41 9
Outside NYC 42 $ 82,803 15 % $ 1,972 62.8 % 1.51 14
Stabilized 97 $ 191,301 35 % $ 1,972 61.3 % 1.46 12
Location
Manhattan 7 $ 10,147 2 % $ 1,450 50.1 % 1.76 19
Other NYC 79 $ 164,232 30 % $ 2,079 61.9 % 1.43 11
Outside NYC 11 $ 16,922 3 % $ 1,538 62.3 % 1.61 14
------------ ----- --- ------------- ----------- ---- ------------ ---- ------- ---------
Office Property Exposure
The Bank's exposure to the Office market is not significant. Loans secured by office space accounted for 2% of the total loan portfolio at March 31, 2026, with a total balance of $41.5 million, of which less than 1% is located in Manhattan. The pool has a 2.41x weighted average DSCR and a 54% weighted average LTV.
Asset Quality and Allowance for Credit Losses
At March 31, 2026, the Bank reported $24.5 million in non-performing loans, or $17.7 million net of $6.8 million that is government guaranteed by the SBA, compared to non-performing loans of $21.6 million, or $17.9 million net of $3.7 million that is government guaranteed by the SBA at December 31, 2025. At March 31, 2026 non-performing loans were 1.23% of total loans outstanding versus 1.08% at December 31, 2025. Excluding the guaranteed portion, non-performing loans were 0.89% of total loans outstanding at March 31, 2026 versus 0.90% at December 31, 2025.
During the first quarter of 2026, the Bank recorded a provision for credit losses of $530 thousand (including a $30 thousand provision for credit losses on unfunded commitments). The allowance for credit losses was $19.1 million at March 31, 2026 versus $18.7 million at December 31, 2025. The allowance for credit losses as a percentage of total loans was 0.96% at March 31, 2026 and 0.93% at December 31, 2025.
Net Interest Margin
The Bank's net interest margin increased to 2.96% for the quarter ended March 31, 2026 compared to 2.68% in the quarter ended March 31, 2025. Excluding interest expense of $100 thousand resulting from the temporary carrying of multiple subordinated debt issuances, as discussed above, the Bank's net interest margin was 2.98% for the quarter ended March 31, 2026.
About Hanover Community Bank and Hanover Bancorp, Inc.
Hanover Bancorp, Inc. $(HNVR)$, 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's 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 multifamily 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's corporate administrative office is located in Mineola, New York where it also operates a full-service branch office along with additional branch locations in Garden City Park, Hauppauge, Port Jefferson, Forest Hills, Flushing, Sunset Park, Rockefeller Center and Bowery, New York, and Freehold, New 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) 548-8500 or visit the Bank's website at www.hanoverbank.com.
Non-GAAP Disclosure
This discussion, including the financial statements attached thereto, includes non-GAAP financial measures which include the Company's adjusted net income, adjusted basic and diluted earnings per share, adjusted return on average assets, adjusted return on average equity, pre-provision net revenue ("PPNR"), PPNR return on average assets, tangible common equity ("TCE") ratio, TCE, tangible assets, tangible book value per share, return on average tangible equity and efficiency 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 ("U.S. GAAP"). The Company's management believes that the presentation of non-GAAP financial measures provides both management and investors with a greater understanding of the Company's 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's 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's 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, PPNR, TCE, tangible assets, TCE ratio and tangible book value per share, reconciliations to the most comparable U.S. 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 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, 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 as a result of inaccurate assumptions that Hanover Bancorp, Inc. might make or by known or unknown risks and uncertainties. There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) the impact of a pandemic or other health crises and the government's response to such pandemic or crises on our operations as well as those of our customers and on the economy generally and in our market area specifically, (2) competitive pressures among depository institutions may increase significantly; (3) changes in the interest rate environment may reduce interest margins; (4) loan origination and sale volumes, charge-offs and credit loss provisions may vary substantially from period to period; (5) general economic conditions may be less favorable than expected; (6) political developments, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (7) legislative or regulatory changes or actions may adversely affect the businesses in which Hanover Bancorp, Inc. is engaged; (8) the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts; (9) changing political conditions and the outcome of federal, state, and local elections and the resulting economic and other impact on the areas in which we conduct business; (10) changes and trends in the securities markets may adversely impact Hanover Bancorp, Inc.; (11) a delayed or incomplete resolution of regulatory issues could adversely impact our planning; (12) difficulties in integrating any businesses that we may acquire, which may increase our expenses and delay the achievement of any benefits that we may expect from such acquisitions; (13) the impact of the strategic credit cleanup that we implemented during the fourth
quarter of 2025 and the wholesale funding restructuring we implemented during the first quarter of 2026; (14) the impact of reputation risk created by the developments discussed above on such matters as business generation and retention, funding and liquidity could be significant; and (15) the outcome of any future regulatory and legal investigations and proceedings may not be anticipated. Further information on other factors that could affect the financial results of Hanover Bancorp, Inc. are included in our Annual Report on Form 10-K under Item 1A - Risk Factors, as updated by our subsequent filings with the Securities and Exchange Commission. Consequently, no forward-looking statement can be guaranteed. Hanover Bancorp, 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
HANOVER BANCORP, INC.
STATEMENTS OF CONDITION (unaudited)
(dollars in thousands)
March 31, December 31, March 31,
2026 2025 2025
Assets
Cash and cash
equivalents $ 194,448 $ 208,904 $ 160,234
Securities-available
for sale, at fair
value 105,799 99,552 93,197
Investments-held to
maturity 963 1,017 3,671
Loans held for sale 16,296 6,407 16,306
Loans, net of deferred
loan fees and costs 1,992,694 2,000,749 1,960,674
Less: allowance for
credit losses (19,149) (18,694) (22,925)
--------- --------- ---------
Loans, net 1,973,545 1,982,055 1,937,749
Goodwill 19,168 19,168 19,168
Premises & fixed
assets 14,049 14,313 14,511
Operating lease assets 8,072 9,855 8,484
Other assets 38,609 41,825 38,207
Assets $2,370,949 $ 2,383,096 $2,291,527
========= ========= =========
Liabilities and
stockholders' equity
Core deposits $1,504,925 $ 1,518,491 $1,418,209
Time deposits 517,421 509,896 518,229
--------- --------- ---------
Total deposits 2,022,346 2,028,387 1,936,438
Borrowings 59,780 100,725 107,805
Subordinated
debentures 59,021 24,743 24,702
Operating lease
liabilities 8,797 10,567 9,144
Other liabilities 19,564 18,408 16,795
--------- --------- ---------
Liabilities 2,169,508 2,182,830 2,094,884
Stockholders' equity 201,441 200,266 196,643
--------- --------- ---------
Liabilities and
stockholders'
equity $2,370,949 $ 2,383,096 $2,291,527
========= ========= =========
HANOVER BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(dollars in thousands, except per share data)
Three Months Ended
----------------------
3/31/2026 3/31/2025
---------- ----------
Interest income $ 32,292 $ 32,837
Interest expense 15,930 18,208
--------- ---------
Net interest income 16,362 14,629
Provision for credit losses 530 600
--------- ---------
Net interest income after provision for
credit losses 15,832 14,029
Loan servicing and fee income 1,042 1,081
Service charges on deposit accounts 250 117
Gain on sale of loans held-for-sale 1,443 2,352
Other operating income 9 182
---------
Non-interest income 2,744 3,732
Compensation and benefits 7,822 7,232
Severance expenses 2,305 -
Conversion expenses - 3,180
Occupancy and equipment 2,068 1,836
Data processing 422 593
Professional fees 906 787
Federal deposit insurance premiums 362 337
Other operating expenses 1,721 2,031
--------- ---------
Non-interest expense 15,606 15,996
Income before income taxes 2,970 1,765
Income tax expense 1,096 244
--------- ---------
Net income $ 1,874 $ 1,521
========= =========
Earnings per share ("EPS"): (1)
Basic $ 0.25 $ 0.20
Diluted $ 0.25 $ 0.20
Average shares outstanding for basic EPS (1)
(2) 7,434,107 7,463,537
Average shares outstanding for diluted EPS (1)
(2) 7,439,004 7,469,489
(1) Calculation includes common stock and Series A
preferred stock.
(2) Average shares outstanding before subtracting
participating securities.
HANOVER BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
QUARTERLY TREND
(dollars in thousands,
except per share data)
Three Months Ended
----------------------------------------------------------
3/31/2026 12/31/2025 9/30/2025 6/30/2025 3/31/2025
---------- ---------- ---------- ---------- ----------
Interest income $ 32,292 $ 32,599 $ 32,994 $ 32,049 $ 32,837
Interest expense 15,930 16,769 17,771 17,254 18,208
--------- --------- --------- --------- ---------
Net interest
income 16,362 15,830 15,223 14,795 14,629
Provision for credit
losses 530 6,100 1,325 2,357 600
--------- --------- --------- --------- ---------
Net interest
income after
provision for
credit losses 15,832 9,730 13,898 12,438 14,029
Loan servicing and fee
income 1,042 1,049 1,057 1,083 1,081
Service charges on
deposit accounts 250 234 237 162 117
Gain on sale of loans
held-for-sale 1,443 1,244 1,451 2,298 2,352
Gain on sale of
investments - 215 - - -
Other operating income 9 23 40 18 182
--------- --------- --------- --------- ---------
Non-interest
income 2,744 2,765 2,785 3,561 3,732
Compensation and
benefits 7,822 6,877 6,774 7,003 7,232
Severance expenses 2,305 - - - -
Conversion expenses - - - - 3,180
Occupancy and equipment 2,068 2,036 1,960 1,910 1,836
Data processing 422 339 313 508 593
Professional fees 906 752 732 878 787
Federal deposit
insurance premiums 362 352 334 365 337
Other operating
expenses 1,721 2,003 1,900 1,952 2,031
--------- --------- --------- --------- ---------
Non-interest
expense 15,606 12,359 12,013 12,616 15,996
Income before
income taxes 2,970 136 4,670 3,383 1,765
Income tax expense 1,096 103 1,179 940 244
--------- --------- --------- --------- ---------
Net income $ 1,874 $ 33 $ 3,491 $ 2,443 $ 1,521
========= ========= ========= ========= =========
Earnings per share
("EPS"): (1)
Basic $ 0.25 $ - $ 0.47 $ 0.33 $ 0.20
Diluted $ 0.25 $ - $ 0.47 $ 0.33 $ 0.20
Average shares
outstanding for basic
EPS (1) (2) 7,434,107 7,443,861 7,477,647 7,500,871 7,463,537
Average shares
outstanding for
diluted EPS (1) (2) 7,439,004 7,447,556 7,483,319 7,506,584 7,469,489
(1) Calculation includes common
stock and Series A preferred
stock.
(2) Average shares outstanding
before subtracting participating
securities.
HANOVER BANCORP, INC.
CONSOLIDATED NON-GAAP FINANCIAL INFORMATION (1)
(unaudited)
(dollars in thousands, except per share
data)
Three Months Ended
------------------------
3/31/2026 3/31/2025
----------- -----------
ADJUSTED NET INCOME:
Net income, as reported $ 1,874 $ 1,521
Adjustments:
Conversion expenses - 3,180
Severance expenses 2,305 -
------ ------
Total adjustments, before income taxes 2,305 3,180
Adjustment for reported effective income tax
rate 182 608
------ ------
Total adjustments, after income taxes 2,123 2,572
------ ------
Adjusted net income $ 3,997 $ 4,093
====== ======
Basic earnings per share - adjusted $ 0.54 $ 0.55
Diluted earnings per share - adjusted $ 0.54 $ 0.55
ADJUSTED OPERATING EFFICIENCY RATIO:
Operating efficiency ratio, as reported 81.68% 87.12%
Adjustments:
Conversion expenses 0.00% -17.32%
Severance expenses -12.06% 0.00%
Adjusted operating efficiency ratio 69.62% 69.80%
====== ======
Adjusted Return on Average Assets 0.70% 0.73%
Adjusted Return on Average Equity 7.98% 8.36%
Adjusted Return on Average Tangible Equity 8.83% 9.27%
Adjusted Non-interest Expense to Average
Assets 2.34% 2.28%
PRE-PROVISION NET REVENUE ("PPNR"):
Net income, as reported $ 1,874 $ 1,521
Add: Provision for credit losses 530 600
Add: Provision for income taxes 1,096 244
------ ------
Pre-provision net revenue 3,500 2,365
Adjustments: Conversion expenses - 3,180
Adjustments: Severance expenses 2,305 -
------
Adjusted pre-provision net revenue $ 5,805 $ 5,545
====== ======
PPNR Return on Average Assets 0.62% 0.42%
Adjusted PPNR Return on Average Assets 1.02% 0.99%
(1) A non-GAAP financial measure is a numerical measure
of historical or future financial 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 ("U.S. GAAP"). The Company's management
believes the presentation of non-GAAP financial measures
provide investors with a greater understanding of
the Company's operating results in addition to the
results measured in accordance with U.S. GAAP. While
management uses non-GAAP measures in its analysis
of the Company's performance, this information should
not be viewed as a substitute for financial results
determined in accordance with U.S. GAAP or considered
to be more important than financial results determined
in accordance with U.S. GAAP.
Note: Prior period information has been adjusted to
conform to current period presentation.
HANOVER BANCORP, INC.
SELECTED FINANCIAL DATA (unaudited)
(dollars in thousands)
Three Months Ended
------------------------------
3/31/2026 3/31/2025
-------------- --------------
Profitability:
Return on average assets 0.33% 0.27%
Return on average equity (1) 3.74% 3.11%
Return on average tangible equity
(1) 4.14% 3.45%
Pre-provision net revenue return on
average assets 0.62% 0.42%
Yield on average interest-earning
assets 5.84% 6.01%
Cost of average interest-bearing
liabilities 3.51% 4.01%
Net interest rate spread (2) 2.33% 2.00%
Net interest margin (3) 2.96% 2.68%
Non-interest expense to average
assets 2.74% 2.85%
Operating efficiency ratio (4) 81.68% 87.12%
Average balances:
Interest-earning assets $2,241,791 $2,217,107
Interest-bearing liabilities 1,841,547 1,842,073
Loans 2,006,288 1,989,796
Deposits 1,950,190 1,919,436
Borrowings 126,100 133,665
(1) Includes common stock and Series A
preferred stock.
(2) Represents the difference between the yield on
average interest-earning assets and the cost of average
interest-bearing liabilities.
(3) Represents net interest income divided by average
interest-earning assets.
(4) Represents non-interest expense divided by the
sum of net interest income and non-interest income.
Note: Prior period information has been adjusted to
conform to current period presentation.
HANOVER BANCORP, INC.
SELECTED FINANCIAL DATA
(unaudited)
(dollars in thousands, except share and per
share data)
At or For the Three Months Ended
--------------------------------------------------------------
3/31/2026 12/31/2025 9/30/2025 6/30/2025
-------------- -------------- -------------- --------------
Asset quality:
Provision for credit
losses - loans (1) $ 500 $ 5,925 $ 1,375 $ 2,170
Net
(charge-offs)/recoveries (45) (9,585) (592) (3,524)
Allowance for credit
losses 19,149 18,694 22,354 21,571
Allowance for credit
losses to total loans
(2) 0.96% 0.93% 1.12% 1.10%
Non-performing loans
Non-guaranteed portion $ 17,749 $ 17,934 $ 16,993 $ 12,475
Guaranteed portion (4) 6,837 3,670 176 176
--------- --------- --------- ---------
Total $ 24,586 $ 21,604 $ 17,169 $ 12,651
Non-performing
loans/total loans 1.23% 1.08% 0.86% 0.64%
Non-performing loans,
excluding
guaranteed/total loans 0.89% 0.90% 0.85% 0.63%
Non-performing
loans/total assets 1.04% 0.91% 0.74% 0.55%
Non-performing loans,
excluding
guaranteed/total assets 0.75% 0.75% 0.73% 0.54%
Allowance for credit
losses/non-performing
loans 77.89% 86.53% 130.20% 170.51%
Allowance for credit
losses/non-performing
loans, excluding
guaranteed 107.89% 104.24% 131.55% 172.91%
Capital (Bank only):
Tier 1 Capital $ 210,222 $ 204,431 $ 205,434 $ 203,282
Tier 1 leverage ratio 9.20% 9.05% 9.15% 9.29%
Common equity tier 1
capital ratio 13.32% 12.90% 13.13% 13.16%
Tier 1 risk based capital
ratio 13.32% 12.90% 13.13% 13.16%
Total risk based capital
ratio 14.57% 14.06% 14.38% 14.41%
Equity data:
Shares outstanding (3) 7,431,661 7,410,403 7,467,390 7,499,243
Stockholders' equity $ 201,441 $ 200,266 $ 201,833 $ 198,885
Book value per share (3) 27.11 27.02 27.03 26.52
Tangible common equity
(3) 182,089 180,902 182,456 179,495
Tangible book value per
share (3) 24.50 24.41 24.43 23.94
Tangible common equity
("TCE") ratio (3) 7.74% 7.65% 7.89% 7.83%
(1) Excludes $30 thousand, $175 thousand, ($50) thousand
and $187 thousand provision for credit losses on unfunded
commitments for the quarters ended 3/31/26, 12/31/25,
9/30/25 and 6/30/25, respectively.
(2) Calculation excludes loans held for sale.
(3) Includes common stock and Series A preferred stock.
(4) Guaranteed by the SBA.
HANOVER
BANCORP, INC.
STATISTICAL
SUMMARY
QUARTERLY TREND
(unaudited, dollars in
thousands, except share data)
3/31/2026 12/31/2025 9/30/2025 6/30/2025
-------------- -------------- -------------- --------------
Loan
distribution
(1) :
---------------
Residential
mortgages $ 737,692 $ 751,536 $ 725,873 $ 715,418
Multifamily 550,739 541,083 537,333 539,573
Commercial real
estate - OO 271,692 275,747 267,050 267,223
Commercial real
estate - NOO 257,787 260,903 271,201 271,552
Commercial &
industrial 147,929 145,591 161,240 148,907
Home equity 26,439 25,459 25,582 23,361
Consumer 416 430 404 418
Total loans $1,992,694 $2,000,749 $1,988,683 $1,966,452
========= ========= ========= =========
Sequential
quarter growth
rate -0.40% 0.61% 1.13% 0.29%
========= ========= ========= =========
CRE
concentration
ratio 354% 362% 362% 368%
========= ========= ========= =========
Loans sold
during the
quarter $ 41,523 $ 39,114 $ 44,532 $ 46,045
========= ========= ========= =========
Funding
distribution:
---------------
Demand $ 237,346 $ 247,786 $ 232,984 $ 243,664
N.O.W. 772,318 781,681 701,199 655,333
Savings 44,307 58,475 43,363 42,860
Money market 450,954 430,549 434,973 497,799
Total core
deposits 1,504,925 1,518,491 1,412,519 1,439,656
Time 517,421 509,896 562,304 511,625
--------- --------- --------- ---------
Total
deposits 2,022,346 2,028,387 1,974,823 1,951,281
Borrowings 59,780 100,725 100,725 107,805
Subordinated
debentures 59,021 24,743 24,729 24,716
--------- --------- --------- ---------
Total
funding
sources $2,141,147 $2,153,855 $2,100,277 $2,083,802
========= ========= ========= =========
Sequential
quarter growth
rate - total
deposits -0.30% 2.71% 1.21% 0.77%
========= ========= ========= =========
Period-end core
deposits/total
deposits
ratio 74.41% 74.86% 71.53% 73.78%
========= ========= ========= =========
Period-end
demand
deposits/total
deposits
ratio 11.74% 12.22% 11.80% 12.49%
========= ========= ========= =========
(1) Excluding
loans held for
sale
Note: Prior period information has been
adjusted to conform to current period
presentation.
HANOVER
BANCORP,
INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (1)
(unaudited)
(dollars in thousands, except share and per
share amounts)
3/31/2026 12/31/2025 9/30/2025 6/30/2025 3/31/2025
-------------- -------------- -------------- -------------- --------------
Tangible
common
equity
------------
Total equity
(2) $ 201,441 $ 200,266 $ 201,833 $ 198,885 $ 196,643
Less:
goodwill (19,168) (19,168) (19,168) (19,168) (19,168)
Less: core
deposit
intangible (184) (196) (209) (222) (236)
--------- --------- --------- --------- ---------
Tangible
common
equity
(2) $ 182,089 $ 180,902 $ 182,456 $ 179,495 $ 177,239
Tangible common equity
("TCE") ratio
----------------------------
Tangible
common
equity (2) $ 182,089 $ 180,902 $ 182,456 $ 179,495 $ 177,239
Total assets 2,370,949 2,383,096 2,331,580 2,311,976 2,291,527
Less:
goodwill (19,168) (19,168) (19,168) (19,168) (19,168)
Less: core
deposit
intangible (184) (196) (209) (222) (236)
--------- --------- --------- --------- ---------
Tangible
assets $2,351,597 $2,363,732 $2,312,203 $2,292,586 $2,272,123
TCE
ratio
(2) 7.74% 7.65% 7.89% 7.83% 7.80%
Tangible
book value
per share
------------
Tangible
common
equity (2) $ 182,089 $ 180,902 $ 182,456 $ 179,495 $ 177,239
Shares
outstanding
(2) 7,431,661 7,410,403 7,467,390 7,499,243 7,503,731
Tangible
book
value per
share
(2) $ 24.50 $ 24.41 $ 24.43 $ 23.94 $ 23.62
(1) A non-GAAP financial measure is a numerical measure
of historical or future financial 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 ("U.S. GAAP"). The Company's management
believes the presentation of non-GAAP financial measures
provide investors with a greater understanding of
the Company's operating results in addition to the
results measured in accordance with U.S. GAAP. While
management uses non-GAAP measures in its analysis
of the Company's performance, this information should
not be viewed as a substitute for financial results
determined in accordance with U.S. GAAP or considered
to be more important than financial results determined
in accordance with U.S. GAAP.
(2) Includes common stock and Series A preferred stock.
HANOVER BANCORP,
INC.
NET INTEREST
INCOME ANALYSIS
For the Three Months Ended
March 31, 2026 and 2025
(unaudited,
dollars in
thousands)
2026 2025
------------------------------------ ------------------------------------
Average Average Average Average
Balance Interest Yield/Cost Balance Interest Yield/Cost
---------- ---------- ------------ ---------- ---------- ------------
Assets:
-----------------
Interest-earning
assets:
Loans $2,006,288 $ 29,618 5.99% $1,989,796 $ 29,984 6.11%
Investment
securities 101,028 1,371 5.50% 85,839 1,186 5.60%
Interest-earning
cash 126,984 1,164 3.72% 133,458 1,482 4.50%
FHLB stock and
other
investments 7,491 139 7.53% 8,014 185 9.36%
Total
interest-earning
assets 2,241,791 32,292 5.84% 2,217,107 32,837 6.01%
--------- ------ ------- --------- ------ -------
Non
interest-earning
assets:
Cash and due from
banks 11,952 9,504
Other assets 54,098 49,695
Total assets $2,307,841 $2,276,306
========= =========
Liabilities and
stockholders'
equity:
-----------------
Interest-bearing
liabilities:
Savings, N.O.W.
and money market
deposits $1,234,058 $ 9,552 3.14% $1,217,429 $ 11,455 3.82%
Time deposits 481,389 4,730 3.98% 490,979 5,320 4.39%
Total savings and
time deposits 1,715,447 14,282 3.38% 1,708,408 16,775 3.98%
Borrowings 93,583 955 4.14% 108,972 1,107 4.12%
Subordinated
debentures 32,517 693 8.64% 24,693 326 5.35%
Total
interest-bearing
liabilities 1,841,547 15,930 3.51% 1,842,073 18,208 4.01%
--------- ------ ------- --------- ------ -------
Demand deposits 234,743 211,028
Other liabilities 28,536 24,726
Total liabilities 2,104,826 2,077,827
Stockholders'
equity 203,015 198,479
Total liabilities
& stockholders'
equity $2,307,841 $2,276,306
========= =========
Net interest rate
spread 2.33% 2.00%
======= =======
Net interest
income/margin $ 16,362 2.96% $ 14,629 2.68%
====== ======= ====== =======
(END) Dow Jones Newswires
April 27, 2026 16:00 ET (20:00 GMT)