Press Release: Hanover Bancorp, Inc. Reports Second Quarter 2026 Results Highlighted by Increased Net Interest Income and Margin Expansion Declares $0.10 Quarterly Cash Dividend

Dow Jones
Jul 24

Second Quarter Performance Highlights

   -- Net Income: Net income for the quarter ended June 30, 2026 totaled 
      $4.1 million or $0.55 per diluted share (including Series A preferred 
      shares), versus $1.9 million or $0.25 per diluted share (including 
      Series A preferred shares) in the quarter ended March 31, 2026 and 
      $2.4 million or $0.33 per diluted share (including Series A preferred 
      shares) in the quarter ended June 30, 2025. Adjusted (non-GAAP) net 
      income (excluding debt extinguishment charges and severance expenses) was 
      $4.3 million or $0.58 per diluted share for the quarter ended June 30, 
      2026, versus adjusted (non-GAAP) net income (excluding severance 
      expenses) of $4.0 million or $0.54 per diluted share in the prior 
      linked quarter and net income of $2.4 million or $0.33 per diluted share 
      in the comparable 2025 quarter (which included no adjustments). 
 
   -- Net Interest Income: Net interest income was $16.8 million for the 
      quarter ended June 30, 2026, an increase of $0.4 million, or 2.50% from 
      the quarter ended March 31, 2026 and $2.0 million, or 13.36%, from the 
      quarter ended June 30, 2025, representing a record level. 
 
   -- Net Interest Margin Expansion: The Company's net interest margin for the 
      quarter ended June 30, 2026 increased to 3.10% from 2.96% for the 
      quarter ended March 31, 2026 and 2.76% in the quarter ended June 30, 
      2025. 
 
   -- Improved Profitability Metrics: Returns on average assets and average 
      tangible equity increased to 0.73% and 8.85%, respectively, for the 
      quarter ended June 30, 2026 from 0.33% and 4.14%, respectively, for the 
      quarter ended March 31, 2026 and 0.44% and 5.46%, respectively, for the 
      quarter ended June 30, 2025. Adjusted (non-GAAP) returns on average 
      assets and average tangible equity increased to 0.77% and 9.30%, 
      respectively, for the quarter ended June 30, 2026 from 0.70% and 8.83%, 
      respectively, for the quarter ended March 31, 2026 and 0.44% and 5.46%, 
      respectively, for the quarter ended June 30, 2025. Pre-provision net 
      revenue return on average assets increased to 1.06% for the quarter ended 
      June 30, 2026 from 0.62% for the quarter ended March 31, 2026 and 1.04% 
      for the quarter ended June 30, 2025. Adjusted pre-provision net revenue 
      return on average assets increased to 1.11% for the quarter ended 
      June 30, 2026 from 1.02% for the quarter ended March 31, 2026 and 1.04% 
      for the quarter ended June 30, 2025. 
 
   -- Demand Deposits: Demand deposits increased $16.9 million or 7.13% to a 
      record $254.3 million at June 30, 2026 from March 31, 2026 and increased 
      $6.5 million or 2.62% from December 31, 2025, driven by the success of 
      our C&I banking relationships and an increase in municipal operating 
      accounts. 
 
   -- Share Repurchases: For the quarter ended June 30, 2026, the Company 
      repurchased 112,346 shares of its common stock, which represented 
      approximately 1.6% of shares outstanding at the beginning of the period, 
      at a weighted average price of $23.54 per share. Of the 366,050 shares 
      authorized under the Company's share repurchase program, 171,729 shares 
      remain available for repurchase as of June 30, 2026. 
 
   -- Appointment of New President: As previously announced on July 20, 2026, 
      Kevin O'Connor has been named to the position of President of the Company 
      and the Bank effective July 27, 2026. Mr. O'Connor brings more than 
      35 years of banking experience to Hanover Bank, having most recently 
      served as Long Island Market President at Valley Bank. 
 
   -- 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 August 13, 2026 to stockholders of record on 
      August 6, 2026. 
 
   -- Riverhead Branch: Our new full-service branch in downtown Riverhead, New 
      York is currently on schedule and is expected to open its doors in the 
      third quarter of 2026. This expansion will allow us to better serve the 
      East End of Long Island with our complete suite of financial and banking 
      services. 

MINEOLA, N.Y., July 23, 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 June 30, 2026 and the declaration of a $0.10 per share cash dividend on both common shares and Series A preferred shares payable on August 13, 2026 to stockholders of record on August 6, 2026.

Earnings Summary for the Quarter Ended June 30, 2026

The Company reported net income for the quarter ended June 30, 2026 of $4.1 million or $0.55 per diluted share (including Series A preferred shares) versus $2.4 million or $0.33 per diluted share (including Series A preferred shares) for the quarter ended June 30, 2025. The Company recorded adjusted (non-GAAP) net income (excluding debt extinguishment charges and severance expenses of $0.2 million, net of tax) of $4.3 million or $0.58 per diluted share in the quarter ended June 30, 2026, versus net income of $2.4 million or $0.33 per diluted share in the comparable 2025 quarter (which included no adjustments). Returns on average assets, average stockholders' equity and average tangible equity were 0.73%, 8.01% and 8.85%, respectively, for the quarter ended June 30, 2026, versus 0.44%, 4.93% and 5.46%, respectively, for the comparable quarter of 2025. Adjusted (non-GAAP) returns, exclusive of debt extinguishment charges and severance expenses, on average assets, average stockholders' equity and average tangible equity were 0.77%, 8.42% and 9.30%, respectively, in the quarter ended June 30, 2026, versus 0.44%, 4.93% and 5.46%, respectively, in the comparable 2025 quarter, which included no adjustments for the 2025 quarter.

The increase in net income recorded in the second quarter of 2026 from the comparable 2025 quarter resulted from an increase in net interest income and a decrease in provision for credit losses. This was partially offset by a decrease in non-interest income, consisting primarily of a decrease in gain on sale of loans held-for-sale, an increase in non-interest expense, which includes $240 thousand debt extinguishment charges in the 2026 quarter, and an increase in income tax expense.

Net interest income was $16.8 million for the quarter ended June 30, 2026, an increase of $2.0 million, or 13.36% from the comparable 2025 quarter. This increase was due to improvement in the Company's net interest margin to 3.10% in the 2026 quarter from 2.76% in the comparable 2025 quarter. The cost of interest-bearing liabilities decreased to 3.46% in the 2026 quarter from 3.94% in the comparable 2025 quarter, a decrease of 48 basis points. This decrease was partially offset by a 5 basis point decrease in the yield on interest earning assets to 5.93% in the 2026 quarter from 5.98% in the second quarter of 2025. Net interest income on a linked quarter basis increased $0.4 million or 2.50%, resulting from a 9 basis point increase in the yield on interest earning assets and a 5 basis point decrease in cost of interest-bearing liabilities.

Earnings Summary for the Six Months Ended June 30, 2026

For the six months ended June 30, 2026, the Company reported net income of $5.9 million or $0.80 per diluted share (including Series A preferred shares), versus $4.0 million or $0.53 per diluted share (including Series A preferred shares) in the comparable 2025 six-month period. The Company recorded adjusted (non-GAAP) net income (excluding debt extinguishment charges and severance expenses of $2.3 million, net of tax) of $8.3 million or $1.11 per diluted share in the six months ended June 30, 2026, versus adjusted (non-GAAP) net income (excluding core system conversion expenses of $2.6 million, net of tax) of $6.5 million or $0.87 per diluted share in the comparable 2025 six-month period. Returns on average assets, average stockholders' equity and average tangible equity were 0.53%, 5.89% and 6.51%, respectively, for the six months ended June 30, 2026, versus 0.36%, 4.02% and 4.46%, respectively, for the comparable 2025 period. Adjusted (non-GAAP) returns, exclusive of debt extinguishment charges and severance expenses, on average assets, average stockholders' equity and average tangible equity were 0.73%, 8.20% and 9.07%, respectively, in the six months ended June 30, 2026, versus 0.59%, 6.63% and 7.35%, respectively, in the comparable 2025 period, exclusive of core system conversion expenses.

The increase in net income recorded for the six months ended June 30, 2026 from the comparable 2025 period is due to an increase in net interest income and a decrease in the provision for credit losses. These were partially offset by a decrease in non-interest income, consisting primarily of a decrease in gain on sale of loans held-for-sale, an increase in income tax expense and an increase in non-interest expenses, particularly compensation and benefits, severance expenses, occupancy and equipment and other operating expenses which included $240 thousand debt extinguishment charges. Severance expenses for the six months ended June 30, 2026 were primarily related to a severance benefit of approximately $2.2 million to the former President of the Company and the Bank whose last day of employment was March 31, 2026.

Net interest income was $33.1 million for the six months ended June 30, 2026, an increase of $3.7 million, or 12.61% from the comparable 2025 period, due to the improvement of the Company's net interest margin to 3.03% in the 2026 period from 2.72% in the comparable 2025 period. The cost of interest-bearing liabilities decreased to 3.48% in the six months ended June 30, 2026 from 3.98% in the comparable 2025 period, a decrease of 50 basis points. This decrease was partially offset by an 11 basis point decrease in the yield on interest earning assets to 5.88% in the 2026 period from 5.99% in the comparable 2025 period.

Michael P. Puorro, Chairman, President and Chief Executive Officer, commented on the Company's quarterly results: "We are pleased to deliver solid second quarter results, highlighted by record net interest income and record demand deposits. By capitalizing on market opportunities and maintaining strict operating discipline, we achieved meaningful margin expansion and improved our core profitability metrics. Our ongoing commitment to share buybacks and dividends reflects our confidence in the Company's financial strength and our dedication to delivering long-term shareholder returns. Further, we are excited to welcome Kevin O'Connor to the team. As we expand our Long Island footprint, his reputation in the community banking sector complements our growth strategies. We look forward to working together to increase market share in this underserved region."

Balance Sheet Highlights

Total assets were $2.34 billion at June 30, 2026 versus $2.38 billion at December 31, 2025. Total securities available for sale ("AFS") at June 30, 2026 were $135.0 million, an increase of $35.5 million from December 31, 2025, primarily driven by growth in U.S. GSE residential mortgage-backed securities, collateralized loan obligations and corporate bonds, offset by decreases in U.S. Treasury securities and collateralized mortgage obligations.

Total deposits were $2.01 billion at June 30, 2026 versus $2.03 billion at December 31, 2025. Our loan to deposit ratio was 99% both at June 30, 2026 and December 31, 2025.

Borrowings at June 30, 2026 were $59.8 million, with a weighted average rate and term of 3.49% and 51 months, respectively. At June 30, 2026 and December 31, 2025, the Company had $59.8 million (net of $440 thousand deferred prepayment penalty) and $100.7 million, respectively, of term FHLB advances outstanding. The Company had no FHLB overnight borrowings outstanding at June 30, 2026 and December 31, 2025. The Company had no borrowings outstanding under lines of credit with correspondent banks at June 30, 2026 and December 31, 2025.

Stockholders' equity was $202.7 million at June 30, 2026 as compared to $200.3 million at December 31, 2025. Retained earnings increased by $4.4 million due primarily to net income of $5.9 million for the six months ended June 30, 2026, which was offset by $1.5 million of dividends declared. The accumulated other comprehensive loss at June 30, 2026 was 0.28% of total equity and was comprised of a $0.5 million after tax net unrealized loss on the investment portfolio and a $0.1 million after tax net unrealized loss on derivatives. During the six months ended June 30, 2026, the Company repurchased 112,346 shares of its common stock at an aggregate cost of $2.6 million. As of June 30, 2026, 171,729 shares remained available for repurchase under the Company's stock repurchase program. Book value per share (including Series A preferred shares) increased to $27.66 at June 30, 2026 from $27.02 at December 31, 2025. Tangible book value per share (including Series A preferred shares) increased to $25.02 at June 30, 2026 from $24.41 at December 31, 2025.

Loan Portfolio

The Bank's loan portfolio was $2.00 billion at June 30, 2026 and December 31, 2025. At June 30, 2026, the Company's residential loan portfolio (including home equity) amounted to $764.2 million, with an average loan balance of $487 thousand and a weighted average loan-to-value ratio of 56%. Commercial real estate (including construction) and multifamily loans totaled $1.08 billion at June 30, 2026, with an average loan balance of $1.5 million and a weighted average loan-to-value ratio of 58%. As discussed below, approximately 37% of the multifamily portfolio is subject to rent regulation. The Company's commercial real estate concentration ratio continues to improve, decreasing to 346% of capital at June 30, 2026 from 362% at December 31, 2025, with loans secured by office space accounting for 2% of the total loan portfolio and totaling $40.2 million at June 30, 2026. The Company's loan pipeline at June 30, 2026 is approximately $223.0 million, with approximately 50% 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 June 30, 2026 and 2025, the Company sold $27.2 million and $23.7 million, respectively, of residential loans under its flow origination program and recorded gains on sale of loans held-for-sale of $0.7 million and $0.5 million, respectively. Residential loan originations were $57 million for the quarter ended June 30, 2026.

During the quarters ended June 30, 2026 and 2025, the Company sold approximately $8.3 million and $22.3 million, respectively, of government guaranteed SBA loans and recorded gains on sale of loans held-for-sale of $0.7 million and $1.8 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 June 30, 2026 is not significant at $10.3 million, all at floating interest rates. As shown below, as of June 30, 2026, 16% of the loan balances in these combined portfolios will either have a rate reset or mature in 2026, with another 54% with rate resets or maturing in 2027.

 
 
          Multifamily Market Rent Portfolio                    Multifamily Stabilized Rent Portfolio 
          Fixed Rate Reset/Maturity Schedule                     Fixed Rate Reset/Maturity Schedule 
------------------------------------------------------  ---------------------------------------------------- 
   Calendar              Total                            Calendar             Total 
 Period (Loan             O/S     Avg O/S      Avg      Period (Loan            O/S     Avg O/S      Avg 
  Data as of       #    ($000's   ($000's    Interest    Data as of      #    ($000's   ($000's    Interest 
  6/30/2026)     Loans  omitted)  omitted)     Rate       6/30/2026    Loans  omitted)  omitted)     Rate 
--------------   -----  --------  --------  ----------  -------------  -----  --------  --------  ---------- 
 
           2026     22  $ 70,753  $  3,216   3.62%               2026     11  $ 25,609  $  2,328   3.96% 
           2027     70   184,958     2,642   4.39%               2027     52   126,943     2,441   4.29% 
           2028     15    20,517     1,368   6.14%               2028     10     8,318       832   6.84% 
           2029      7    11,120     1,589   6.58%               2029      5    19,750     3,950   6.40% 
           2030      8    20,099     2,512   6.19%               2030      7    13,471     1,924   6.32% 
          2031+     19    48,314     2,543   5.83%              2031+     10    15,473     1,547   6.16% 
                 -----   -------   -------  -----                      -----   -------   -------  ----- 
  Fixed Rate       141   355,761     2,523   4.70%         Fixed Rate     95   209,564     2,206   4.82% 
                                                             Floating 
  Floating Rate      1       101       101   9.50%               Rate      1       453       453   7.92% 
                 -----   -------   -------  -----                      -----   -------   -------  ----- 
  Total            142  $355,862  $  2,506   4.71%              Total     96  $210,017  $  2,188   5.66% 
---------------  -----   -------   -------  -----       -------------  -----   -------   -------  ----- 
 
 
       CRE Investor Portfolio Fixed Rate Reset/Maturity Schedule 
------------------------------------------------------------------------ 
   Calendar 
 Period (Loan              Total O/S                             Avg 
  Data as of       #        ($000's            Avg O/S         Interest 
  6/30/2026)     Loans      omitted)       ($000's omitted)      Rate 
--------------   -----  ----------------  ------------------  ---------- 
 
           2026     17  $         31,740   $           1,867   6.02% 
           2027     81           126,645               1,564   4.74% 
           2028     28            30,106               1,075   6.65% 
           2029      6             8,160               1,360   6.78% 
           2030     14            13,353                 954   6.99% 
          2031+     24            30,891               1,287   6.63% 
                 -----   ---------------      --------------  ----- 
  Fixed Rate       170           240,895               1,417   5.58% 
  Floating Rate     10             7,677                 768   7.92% 
                 -----   ---------------      --------------  ----- 
  Total 
   CRE-Inv.        180  $        248,572   $           1,381   5.66% 
---------------  -----   ---------------      --------------  ----- 
 
 

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 June 30, 2026, using the primary assumption for a revised Debt Service Coverage Ratio ("DSCR") calculation, for all loans where the current interest rate is below 6.00%. The current balance for these loans is recast at 6.00% 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 6.25% cap rate 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 6/30/2026) 
-------------------------------------------------------------------------- 
                                                    Current     Projected 
                                      % of Total    Weighted     Weighted 
  DSCR       #        Total O/S            MF        Average     Average 
 Range     Loans   ($000's omitted)    Portfolio       LTV         LTV 
--------   -----  ------------------  -----------  ----------  ----------- 
 
  < 1.0        5    $         16,207     3%          62%        102% 
1.0 < x < 
   1.2        14              33,833     6%          62%         75% 
1.2 < x < 
   1.3        12              48,544     8%          64%         74% 
1.3 < x < 
   1.5        30              70,004    12%          62%         63% 
1.5 < x < 
   2.0        21              32,745     6%          58%         55% 
 x > 2.0      14               8,684     2%          45%         37% 
           -----  ---  -------------  ----         ----        ---- 
  Total       96    $        210,017    37%          61%         68% 
---------  -----  ---  -------------  ----   ----  ----   ---  ---- ---- 
 
 

As reflected above, only 5 loans totaling $16 million in the multifamily rent stabilized portfolio would have a pro forma DSCR less than 1x, this represents 3% of the total multifamily portfolio. The remainder of this portfolio, totaling $194 million, representing 34% 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 rent stabilized loans and 74% 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 June 30, 2026. As shown below, 63% 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 6/30/2026) 
-------------------------------------------------------------------------------------------------------- 
              # 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    $        355,862   63%              $         2,506  60.8   %     1.43         10 
 Location 
 Manhattan        6    $         10,300    2         %     $         1,717  49.3   %     1.44          9 
 Other NYC       94    $        263,153   46%              $         2,800  60.7   %     1.40          9 
Outside NYC      42    $         82,409   15%              $         1,962  62.4   %     1.52         14 
 
 Stabilized      96    $        210,017   37%              $         2,188  61.1   %     1.42         12 
 Location 
 Manhattan        7    $         10,090    2%              $         1,441  49.8   %     1.76         19 
 Other NYC       78    $        183,077   32%              $         2,347  61.6   %     1.39         11 
Outside NYC      11    $         16,850    3         %     $         1,532  61.9   %     1.58         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 June 30, 2026, with a total balance of $40.2 million, of which less than 1% is located in Manhattan. The pool has a 2.44x weighted average DSCR and a 54% weighted average LTV.

Asset Quality and Allowance for Credit Losses

At June 30, 2026, the Bank reported $28.3 million in non-performing loans compared to $24.6 million at March 31, 2026 and $21.6 million at December 31, 2025. Excluding the portion that is government guaranteed by the SBA, non-performing loans were $21.3 million at June 30, 2026 compared to $17.7 million at March 31, 2026 and $17.9 million at December 31, 2025. The increase in non-performing loans over the linked quarter is primarily attributable to a $3.6 million loan relationship, originated in 2018 by Savoy Bank, which is comprised of one commercial real estate loan in the amount of $2.8 million and an SBA loan in the amount of $0.8 million (non-guaranteed portion). While the loans are currently non-performing, they are well collateralized and the Bank expects to fully recover the principal amount. At June 30, 2026 non-performing loans were 1.42% of total loans outstanding versus 1.08% at December 31, 2025. Excluding the guaranteed portion, non-performing loans were 1.07% of total loans outstanding at June 30, 2026 versus 0.90% at December 31, 2025.

During the second quarter of 2026, the Bank recorded a provision for credit losses of $500 thousand. The allowance for credit losses was $19.1 million at June 30, 2026 versus $18.7 million at December 31, 2025. The allowance for credit losses as a percentage of total loans was 0.96% at June 30, 2026 and 0.93% at December 31, 2025.

Net Interest Margin

The Bank's net interest margin increased to 3.10% for the quarter ended June 30, 2026 compared to 2.96% in the quarter ended March 31, 2026 and 2.76% in the quarter ended June 30, 2025. Reversal of accrued interest income on a non-accrual loan reduced the net interest margin by 2 basis points for the quarter ended June 30, 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 diluted earnings per share, adjusted return on average assets, adjusted return on average equity, pre-provision net revenue ("PPNR"), PPNR return on average assets, adjusted PPNR, adjusted PPNR return on average assets, return on average tangible equity, adjusted return on average tangible equity, adjusted non-interest expense to average assets, efficiency ratio, adjusted efficiency ratio, tangible common equity ("TCE") ratio, TCE, tangible assets and tangible book value per share. 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 the aforementioned non-GAAP financial measures, 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 relating to rent regulation and housing, including recent legislative action in New York City to freeze rents on certain rent-regulated properties; (11) changes and trends in the securities markets may adversely impact Hanover Bancorp, Inc.; (12) a delayed or incomplete resolution of regulatory issues could adversely impact our planning; (13) 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; (14) 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; (15) 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; (16) our ability to hire and retain key personnel; and (17) 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) 
 
 
                         June 30,     March 31,     December 31, 
                           2026         2026            2025 
                        -----------  -----------  ---------------- 
Assets 
Cash and cash 
 equivalents            $  141,243   $  194,448    $    208,904 
Securities-available 
 for sale, at fair 
 value                     135,043      105,799          99,552 
Investments-held to 
 maturity                      912          963           1,017 
Loans held for sale          2,928       16,296           6,407 
 
Loans, net of deferred 
 loan fees and costs     1,997,893    1,992,694       2,000,749 
Less: allowance for 
 credit losses             (19,139)     (19,149)        (18,694) 
                         ---------    ---------       --------- 
Loans, net               1,978,754    1,973,545       1,982,055 
 
Goodwill                    19,168       19,168          19,168 
Premises & fixed 
 assets                     14,052       14,049          14,313 
Operating lease assets       7,006        8,072           9,855 
Other assets                37,524       38,609          41,825 
        Assets          $2,336,630   $2,370,949    $  2,383,096 
                         =========    =========       ========= 
 
Liabilities and 
stockholders' equity 
Core deposits           $1,506,501   $1,504,925    $  1,518,491 
Time deposits              506,338      517,421         509,896 
                         ---------    ---------       --------- 
Total deposits           2,012,839    2,022,346       2,028,387 
 
Borrowings                  59,810       59,780         100,725 
Subordinated 
 debentures                 34,229       59,021          24,743 
Operating lease 
 liabilities                 7,628        8,797          10,567 
Other liabilities           19,377       19,564          18,408 
                         ---------    ---------       --------- 
     Liabilities         2,133,883    2,169,508       2,182,830 
 
Stockholders' equity       202,747      201,441         200,266 
                         ---------    ---------       --------- 
   Liabilities and 
 stockholders' equity   $2,336,630   $2,370,949    $  2,383,096 
                         =========    =========       ========= 
 
 
 
HANOVER BANCORP, INC. 
CONSOLIDATED STATEMENTS OF INCOME (unaudited) 
(dollars in thousands, except per share data) 
 
                    Three Months Ended       Six Months Ended 
                  ----------------------  ---------------------- 
                  6/30/2026   6/30/2025   6/30/2026   6/30/2025 
                  ----------  ----------  ----------  ---------- 
 
Interest income   $   32,066  $   32,049  $   64,358  $   64,886 
Interest expense      15,295      17,254      31,225      35,462 
                   ---------   ---------   ---------   --------- 
   Net interest 
    income            16,771      14,795      33,133      29,424 
Provision for 
 credit losses           500       2,357       1,030       2,957 
                   ---------   ---------   ---------   --------- 
   Net interest 
    income after 
    provision 
    for credit 
    losses            16,271      12,438      32,103      26,467 
 
Loan servicing 
 and fee income        1,164       1,083       2,206       2,164 
Service charges 
 on deposit 
 accounts                119         162         369         279 
Gain on sale of 
 loans 
 held-for-sale         1,377       2,298       2,820       4,650 
Other operating 
 income                  136          18         145         200 
                   ---------               --------- 
   Non-interest 
    income             2,796       3,561       5,540       7,293 
 
Compensation and 
 benefits              7,333       7,003      15,155      14,235 
Severance 
 expenses                 35           -       2,340           - 
Conversion 
 expenses                  -           -           -       3,180 
Occupancy and 
 equipment             2,012       1,910       4,080       3,746 
Data processing          431         508         853       1,101 
Professional 
 fees                    897         878       1,803       1,665 
Federal deposit 
 insurance 
 premiums                364         365         726         702 
Other operating 
 expenses              2,576       1,952       4,297       3,983 
                   ---------   ---------   ---------   --------- 
   Non-interest 
    expense           13,648      12,616      29,254      28,612 
 
   Income before 
    income 
    taxes              5,419       3,383       8,389       5,148 
Income tax 
 expense               1,355         940       2,451       1,184 
                   ---------   ---------   ---------   --------- 
 
   Net income     $    4,064  $    2,443  $    5,938  $    3,964 
                   =========   =========   =========   ========= 
 
Earnings per 
share 
("EPS"):(1) 
   Basic          $     0.55  $     0.33  $     0.80  $     0.53 
   Diluted        $     0.55  $     0.33  $     0.80  $     0.53 
 
Average shares 
 outstanding for 
 basic 
 EPS(1)(2)         7,396,444   7,500,871   7,415,171   7,482,307 
Average shares 
 outstanding for 
 diluted 
 EPS(1)(2)         7,396,444   7,506,584   7,415,171   7,488,226 
 
(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 
                  ---------------------------------------------------------- 
                  6/30/2026   3/31/2026   12/31/2025  9/30/2025   6/30/2025 
                  ----------  ----------  ----------  ----------  ---------- 
 
Interest income   $   32,066  $   32,292  $   32,599  $   32,994  $   32,049 
Interest expense      15,295      15,930      16,769      17,771      17,254 
                   ---------   ---------   ---------   ---------   --------- 
   Net interest 
    income            16,771      16,362      15,830      15,223      14,795 
Provision for 
 credit losses           500         530       6,100       1,325       2,357 
                   ---------   ---------   ---------   ---------   --------- 
   Net interest 
    income after 
    provision 
    for credit 
    losses            16,271      15,832       9,730      13,898      12,438 
 
Loan servicing 
 and fee income        1,164       1,042       1,049       1,057       1,083 
Service charges 
 on deposit 
 accounts                119         250         234         237         162 
Gain on sale of 
 loans 
 held-for-sale         1,377       1,443       1,244       1,451       2,298 
Gain on sale of 
 investments               -           -         215           -           - 
Other operating 
 income                  136           9          23          40          18 
                   ---------   ---------   ---------   ---------   --------- 
   Non-interest 
    income             2,796       2,744       2,765       2,785       3,561 
 
Compensation and 
 benefits              7,333       7,822       6,877       6,774       7,003 
Severance 
 expenses                 35       2,305           -           -           - 
Occupancy and 
 equipment             2,012       2,068       2,036       1,960       1,910 
Data processing          431         422         339         313         508 
Professional 
 fees                    897         906         752         732         878 
Federal deposit 
 insurance 
 premiums                364         362         352         334         365 
Other operating 
 expenses              2,576       1,721       2,003       1,900       1,952 
                   ---------   ---------   ---------   ---------   --------- 
   Non-interest 
    expense           13,648      15,606      12,359      12,013      12,616 
 
   Income before 
    income 
    taxes              5,419       2,970         136       4,670       3,383 
Income tax 
 expense               1,355       1,096         103       1,179         940 
                   ---------   ---------   ---------   ---------   --------- 
 
   Net income     $    4,064  $    1,874  $       33  $    3,491  $    2,443 
                   =========   =========   =========   =========   ========= 
 
Earnings per 
share 
("EPS"):(1) 
   Basic          $     0.55  $     0.25  $        -  $     0.47  $     0.33 
   Diluted        $     0.55  $     0.25  $        -  $     0.47  $     0.33 
 
Average shares 
 outstanding for 
 basic 
 EPS(1)(2)         7,396,444   7,434,107   7,443,861   7,477,647   7,500,871 
Average shares 
 outstanding for 
 diluted 
 EPS(1)(2)         7,396,444   7,439,004   7,447,556   7,483,319   7,506,584 
 
(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 (2)         Six Months Ended 
                  ----------------------------  ------------------------ 
                    6/30/2026      6/30/2025     6/30/2026    6/30/2025 
                  -------------  -------------  -----------  ----------- 
 
Net income, as 
 reported          $  4,064       $  2,443      $ 5,938      $ 3,964 
Adjustments: 
Debt 
 extinguishment 
 charges                240              -          240            - 
Conversion 
 expenses                 -              -            -        3,180 
Severance 
 expenses                35              -        2,340            - 
                      -----          -----       ------       ------ 
   Total 
    adjustments, 
    before 
    income 
    taxes               275              -        2,580        3,180 
Income tax 
 effect of 
 adjustments             69              -          251          608 
                      -----          -----       ------       ------ 
   Total 
    adjustments, 
    after income 
    taxes               206              -        2,329        2,572 
                      -----          -----       ------       ------ 
Adjusted net 
 income 
 (non-GAAP)        $  4,270       $  2,443      $ 8,267      $ 6,536 
                      =====          =====       ======       ====== 
 
Diluted earnings 
 per share (3)     $   0.55       $   0.33      $  0.80      $  0.53 
Adjustments for 
 non-recurring 
 charges, net of 
 tax                   0.03              -         0.31         0.34 
Adjusted diluted 
 earnings per 
 share 
 (non-GAAP) (3)    $   0.58       $   0.33      $  1.11      $  0.87 
                      =====          =====       ======       ====== 
 
Efficiency ratio 
 (non-GAAP) (4)       69.75%         68.73%       75.64%       77.93% 
Adjustments: 
Debt 
 extinguishment 
 charges              -1.23%          0.00%       -0.62%        0.00% 
Conversion 
 expenses              0.00%          0.00%        0.00%       -8.66% 
Severance 
 expenses             -0.18%          0.00%       -6.05%        0.00% 
Adjusted 
 efficiency 
 ratio 
 (non-GAAP)           68.34%         68.73%       68.97%       69.27% 
                      =====          =====       ======       ====== 
 
Return on 
 average assets        0.73%          0.44%        0.53%        0.36% 
Adjustments for 
 non-recurring 
 charges, net of 
 tax                   0.04%          0.00%        0.20%        0.23% 
Adjusted return 
 on average 
 assets 
 (non-GAAP)            0.77%          0.44%        0.73%        0.59% 
                      =====          =====       ======       ====== 
 
Return on 
 average equity 
 (3)                   8.01%          4.93%        5.89%        4.02% 
Adjustments for 
 non-recurring 
 charges, net of 
 tax                   0.41%          0.00%        2.31%        2.61% 
Adjusted return 
 on average 
 equity 
 (non-GAAP) (3)        8.42%          4.93%        8.20%        6.63% 
                      =====          =====       ======       ====== 
 
Return on 
 average 
 tangible equity 
 (non-GAAP) 
 (3)(5)                8.85%          5.46%        6.51%        4.46% 
Adjustments for 
 non-recurring 
 charges, net of 
 tax                   0.45%          0.00%        2.56%        2.89% 
Adjusted return 
 on average 
 tangible equity 
 (non-GAAP) (3)        9.30%          5.46%        9.07%        7.35% 
                      =====          =====       ======       ====== 
 
Non-interest 
 expense to 
 average assets        2.45%          2.29%        2.60%        2.57% 
Adjustments for 
 non-recurring 
 charges              -0.05%          0.00%       -0.23%       -0.28% 
Adjusted 
 non-interest 
 expense to 
 average assets 
 (Non-GAAP)            2.40%          2.29%        2.37%        2.29% 
                      =====          =====       ======       ====== 
 
Net income, as 
 reported          $  4,064       $  2,443      $ 5,938      $ 3,964 
Add: Provision 
 for credit 
 losses                 500          2,357        1,030        2,957 
Add: Provision 
 for income 
 taxes                1,355            940        2,451        1,184 
Pre-provision 
 net revenue 
 (non-GAAP)        $  5,919       $  5,740      $ 9,419      $ 8,105 
                      =====          =====       ======       ====== 
 
Pre-provision 
 net revenue 
 return on 
 average assets 
 (non-GAAP)            1.06%          1.04%        0.84%        0.73% 
 
Pre-provision 
 net revenue 
 (non-GAAP)        $  5,919       $  5,740      $ 9,419      $ 8,105 
Adjustments: 
Debt 
 extinguishment 
 charges                240              -          240            - 
Conversion 
 expenses                 -              -            -        3,180 
Severance 
 expenses                35              -        2,340            - 
                      -----          -----       ------       ------ 
Adjusted 
 pre-provision 
 net revenue 
 (non-GAAP)        $  6,194       $  5,740      $11,999      $11,285 
                      =====          =====       ======       ====== 
 
Adjusted 
 pre-provision 
 net revenue 
 return on 
 average assets 
 (non-GAAP)            1.11%          1.04%        1.07%        1.02% 
 
(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 
 provides 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) Ratios for the three months ended June 30, 2026 
 and 2025 are annualized. 
(3) Includes common stock and Series A preferred stock. 
(4) Represents non-interest expense divided by the 
 sum of net interest income and non-interest income. 
(5) Represents net income divided by average total 
 equity after deducting average goodwill and average 
 core deposit intangible. 
 
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               Six Months Ended 
                      ------------------------------  ------------------------------ 
                        6/30/2026       6/30/2025       6/30/2026       6/30/2025 
                      --------------  --------------  --------------  -------------- 
Profitability: 
   Return on average 
    assets                  0.73%           0.44%           0.53%           0.36% 
Return on average 
 equity (1)                 8.01%           4.93%           5.89%           4.02% 
Return on average 
 tangible equity 
 (non-GAAP) (1)(5)          8.85%           5.46%           6.51%           4.46% 
Pre-provision net 
 revenue return on 
 average assets 
 (non-GAAP) (6)             1.06%           1.04%           0.84%           0.73% 
   Yield on average 
    interest-earning 
    assets                  5.93%           5.98%           5.88%           5.99% 
   Cost of average 
    interest-bearing 
    liabilities             3.46%           3.94%           3.48%           3.98% 
Net interest rate 
 spread (2)                 2.47%           2.04%           2.40%           2.01% 
Net interest margin 
 (3)                        3.10%           2.76%           3.03%           2.72% 
   Non-interest 
    expense to 
    average assets          2.45%           2.29%           2.60%           2.57% 
Efficiency ratio 
 (non-GAAP) (4)            69.75%          68.73%          75.64%          77.93% 
 
Average balances: 
   Interest-earning 
    assets            $2,170,133      $2,148,782      $2,205,763      $2,182,757 
   Interest-bearing 
    liabilities        1,774,800       1,756,316       1,807,989       1,798,958 
   Loans               1,990,722       1,978,535       1,998,461       1,984,135 
   Deposits            1,867,859       1,838,947       1,908,797       1,878,969 
   Borrowings            132,088         142,733         129,111         138,224 
 
 
(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. 
(5) Represents net income divided by average total 
 equity after deducting average goodwill and average 
 core deposit intangible. 
(6) Refer to Consolidated Non-GAAP Financial Information 
 for calculation. 
 
 
 
HANOVER BANCORP, INC. 
SELECTED FINANCIAL DATA (unaudited) 
(dollars in thousands, except share and per share 
 data) 
 
                                             At or For the Three Months Ended 
                                6/30/2026       3/31/2026       12/31/2025      9/30/2025 
Asset quality: 
Provision for credit losses 
 - loans (1)                  $      500      $      500      $    5,925      $    1,375 
   Net 
    (charge-offs)/recoveries        (510)            (45)         (9,585)           (592) 
   Allowance for credit 
    losses                        19,139          19,149          18,694          22,354 
Allowance for credit losses 
 to total loans (2)                 0.96%           0.96%           0.93%           1.12% 
 
Non-performing loans 
   Non-guaranteed portion     $   21,283      $   17,749      $   17,934      $   16,993 
Guaranteed portion (4)             7,057           6,837           3,670             176 
   Total                      $   28,340      $   24,586      $   21,604      $   17,169 
 
   Non-performing 
    loans/total loans               1.42%           1.23%           1.08%           0.86% 
   Non-performing loans, 
    excluding 
    guaranteed/total loans          1.07%           0.89%           0.90%           0.85% 
   Non-performing 
    loans/total assets              1.21%           1.04%           0.91%           0.74% 
   Non-performing loans, 
    excluding 
    guaranteed/total assets         0.91%           0.75%           0.75%           0.73% 
   Allowance for credit 
    losses/non-performing 
    loans                          67.53%          77.89%          86.53%         130.20% 
   Allowance for credit 
    losses/non-performing 
    loans, excluding 
    guaranteed                     89.93%         107.89%         104.24%         131.55% 
 
Capital (Bank only): 
   Tier 1 Capital             $  215,650      $  210,222      $  204,431      $  205,434 
   Tier 1 leverage ratio            9.76%           9.20%           9.05%           9.15% 
   Common equity tier 1 
    capital ratio                  13.59%          13.32%          12.90%          13.13% 
   Tier 1 risk based capital 
    ratio                          13.59%          13.32%          12.90%          13.13% 
   Total risk based capital 
    ratio                          14.84%          14.57%          14.06%          14.38% 
 
Equity data: 
Shares outstanding (3)         7,330,424       7,431,661       7,410,403       7,467,390 
   Stockholders' equity       $  202,747      $  201,441      $  200,266      $  201,833 
Book value per share (3)           27.66           27.11           27.02           27.03 
Tangible common equity (3)       183,408         182,089         180,902         182,456 
Tangible book value per 
 share (3)                         25.02           24.50           24.41           24.43 
Tangible common equity 
 ("TCE") ratio (3)                  7.91%           7.74%           7.65%           7.89% 
 
(1) Excludes $0, $30 thousand, $175 thousand and ($50) 
 thousand provision for credit losses on unfunded commitments 
 for the quarters ended 6/30/26, 3/31/26, 12/31/25 
 and 9/30/25, 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) 
 
                   6/30/2026       3/31/2026       12/31/2025      9/30/2025 
                 --------------  --------------  --------------  -------------- 
 
Loan 
distribution 
(1) : 
--------------- 
Residential 
 mortgages       $  737,226      $  737,692      $  751,536      $  725,873 
Multifamily         565,879         550,739         541,083         537,333 
Commercial real 
 estate - OO        272,413         271,692         275,747         267,050 
Commercial real 
 estate - NOO       244,574         257,787         260,903         271,201 
Commercial & 
 industrial         150,403         147,929         145,591         161,240 
Home equity          26,949          26,439          25,459          25,582 
Consumer                449             416             430             404 
 
   Total loans   $1,997,893      $1,992,694      $2,000,749      $1,988,683 
                  =========       =========       =========       ========= 
 
Sequential 
 quarter growth 
 rate                  0.26%          -0.40%           0.61%           1.13% 
                  =========       =========       =========       ========= 
 
CRE 
 concentration 
 ratio                  346%            354%            362%            362% 
                  =========       =========       =========       ========= 
 
Loans sold 
 during the 
 quarter         $   35,527      $   41,523      $   39,114      $   44,532 
                  =========       =========       =========       ========= 
 
Funding 
distribution: 
--------------- 
Demand           $  254,270      $  237,346      $  247,786      $  232,984 
N.O.W.              708,329         772,318         781,681         701,199 
Savings              42,382          44,307          58,475          43,363 
Money market        501,520         450,954         430,549         434,973 
   Total core 
    deposits      1,506,501       1,504,925       1,518,491       1,412,519 
Time                506,338         517,421         509,896         562,304 
                  ---------       ---------       ---------       --------- 
   Total 
    deposits      2,012,839       2,022,346       2,028,387       1,974,823 
Borrowings           59,810          59,780         100,725         100,725 
Subordinated 
 debentures          34,229          59,021          24,743          24,729 
                  ---------       ---------       ---------       --------- 
 
   Total 
    funding 
    sources      $2,106,878      $2,141,147      $2,153,855      $2,100,277 
                  =========       =========       =========       ========= 
 
Sequential 
 quarter growth 
 rate - total 
 deposits             -0.47%          -0.30%           2.71%           1.21% 
                  =========       =========       =========       ========= 
 
Period-end core 
 deposits/total 
 deposits 
 ratio                74.84%          74.41%          74.86%          71.53% 
                  =========       =========       =========       ========= 
 
Period-end 
 demand 
 deposits/total 
 deposits 
 ratio                12.63%          11.74%          12.22%          11.80% 
                  =========       =========       =========       ========= 
 
(1) Excluding 
 loans held for 
 sale 
 
 
 
HANOVER BANCORP, INC. 
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (1) 
 (unaudited) 
(dollars in thousands, except share and per share 
 amounts) 
 
 
                     6/30/2026       3/31/2026       12/31/2025      9/30/2025       6/30/2025 
                   --------------  --------------  --------------  --------------  -------------- 
Tangible common 
equity 
----------------- 
Total equity (2)   $  202,747      $  201,441      $  200,266      $  201,833      $  198,885 
Less: goodwill        (19,168)        (19,168)        (19,168)        (19,168)        (19,168) 
Less: core 
 deposit 
 intangible              (171)           (184)           (196)           (209)           (222) 
                    ---------       ---------       ---------       ---------       --------- 
   Tangible 
    common equity 
    (non-GAAP) 
    (2)            $  183,408      $  182,089      $  180,902      $  182,456      $  179,495 
 
Tangible common 
equity ("TCE") 
ratio 
----------------- 
Tangible common 
 equity (2)        $  183,408      $  182,089      $  180,902      $  182,456      $  179,495 
Total assets        2,336,630       2,370,949       2,383,096       2,331,580       2,311,976 
Less: goodwill        (19,168)        (19,168)        (19,168)        (19,168)        (19,168) 
Less: core 
 deposit 
 intangible              (171)           (184)           (196)           (209)           (222) 
                    ---------       ---------       ---------       ---------       --------- 
   Tangible 
    assets 
    (non-GAAP)     $2,317,291      $2,351,597      $2,363,732      $2,312,203      $2,292,586 
      TCE ratio 
       (non-GAAP) 
       (2) (3)           7.91%           7.74%           7.65%           7.89%           7.83% 
 
Tangible book 
value per share 
----------------- 
Tangible common 
 equity (2)        $  183,408      $  182,089      $  180,902      $  182,456      $  179,495 
Shares 
 outstanding (2)    7,330,424       7,431,661       7,410,403       7,467,390       7,499,243 
   Tangible book 
    value per 
    share 
    (non-GAAP) 
    (2)            $    25.02      $    24.50      $    24.41      $    24.43      $    23.94 
 
(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 
 provides 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. 
(3) TCE ratio is calculated by dividing tangible common 
 equity by tangible assets. 
 
 
 
HANOVER BANCORP, INC. 
NET INTEREST INCOME ANALYSIS 
For the Three Months Ended June 30, 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              $1,990,722   $  29,788     6.00%      $1,978,535   $  29,785   6.04% 
Investment 
 securities           119,512       1,650     5.54%          99,448       1,433   5.78% 
Interest-earning 
 cash                  53,225         494     3.72%          62,760         695   4.44% 
FHLB stock and 
 other 
 investments            6,674         134     8.05%           8,039         136   6.79% 
Total 
 interest-earning 
 assets             2,170,133      32,066     5.93%       2,148,782      32,049   5.98% 
                    ---------      ------  -------        ---------      ------  ----- ---- 
Non 
interest-earning 
assets: 
Cash and due from 
 banks                 10,220                                 9,218 
Other assets           51,589                                50,164 
Total assets       $2,231,942                            $2,208,164 
                    =========                             ========= 
 
Liabilities and 
stockholders' 
equity: 
----------------- 
Interest-bearing 
liabilities: 
Savings, N.O.W. 
 and money market 
 deposits          $1,163,445   $   9,129     3.15%      $1,126,495   $  10,649   3.79% 
Time deposits         479,267       4,575     3.83%         487,088       5,058   4.17% 
Total savings and 
 time deposits      1,642,712      13,704     3.35%       1,613,583      15,707   3.90% 
Borrowings             94,054         853     3.64%         118,026       1,221   4.15% 
Subordinated 
 debentures            38,034         738     7.78%          24,707         326   5.29% 
Total 
 interest-bearing 
 liabilities        1,774,800      15,295     3.46%       1,756,316      17,254   3.94% 
                    ---------      ------  -------        ---------      ------  ----- ---- 
Demand deposits       225,147                               225,364 
Other liabilities      28,533                                27,615 
Total liabilities   2,028,480                             2,009,295 
Stockholders' 
 equity               203,462                               198,869 
Total liabilities 
 & stockholders' 
 equity            $2,231,942                            $2,208,164 
                    =========                             ========= 
Net interest rate 
 spread                                       2.47%                               2.04% 
                                           =======                               ===== ==== 
Net interest 
 income/margin                  $  16,771     3.10%                   $  14,795   2.76% 
                                   ======  =======                       ======  ===== ==== 
 
 
 
HANOVER BANCORP, INC. 
NET INTEREST INCOME ANALYSIS 
For the Six Months Ended June 30, 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              $1,998,461   $  59,406     5.99%      $1,984,135   $  59,769   6.07% 
Investment 
 securities           110,321       3,021     5.52%          92,681       2,619   5.70% 
Interest-earning 
 cash                  89,901       1,658     3.72%          97,914       2,177   4.48% 
FHLB stock and 
 other 
 investments            7,080         273     7.78%           8,027         321   8.06% 
Total 
 interest-earning 
 assets             2,205,763      64,358     5.88%       2,182,757      64,886   5.99% 
                    ---------      ------  -------        ---------      ------  ----- ---- 
Non 
interest-earning 
assets: 
Cash and due from 
 banks                 11,081                                 9,360 
Other assets           52,838                                49,930 
Total assets       $2,269,682                            $2,242,047 
                    =========                             ========= 
 
Liabilities and 
stockholders' 
equity: 
----------------- 
Interest-bearing 
liabilities: 
Savings, N.O.W. 
 and money market 
 deposits          $1,198,556   $  18,681     3.14%      $1,171,711   $  22,104   3.80% 
Time deposits         480,322       9,305     3.91%         489,023      10,378   4.28% 
Total savings and 
 time deposits      1,678,878      27,986     3.36%       1,660,734      32,482   3.94% 
Borrowings             93,820       1,808     3.89%         113,524       2,328   4.14% 
Subordinated 
 debentures            35,291       1,431     8.18%          24,700         652   5.32% 
Total 
 interest-bearing 
 liabilities        1,807,989      31,225     3.48%       1,798,958      35,462   3.98% 
                    ---------      ------  -------        ---------      ------  ----- ---- 
Demand deposits       229,919                               218,235 
Other liabilities      28,534                                26,179 
Total liabilities   2,066,442                             2,043,372 
Stockholders' 
 equity               203,240                               198,675 
Total liabilities 
 & stockholders' 
 equity            $2,269,682                            $2,242,047 
                    =========                             ========= 
Net interest rate 
 spread                                       2.40%                               2.01% 
                                           =======                               ===== ==== 
Net interest 
 income/margin                  $  33,133     3.03%                   $  29,424   2.72% 
                                   ======  =======                       ======  ===== ==== 
 
 

(END) Dow Jones Newswires

July 23, 2026 16:00 ET

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