Hanover Bancorp, Inc. Reports Earnings for the Third Fiscal Quarter and Declares $0.10 Quarterly Cash Dividend
- Net income for Q3 is $3.1 million, a decrease from $5.3 million in the same period last year. Loans increase by 8.1% to $1.82 billion. Tangible book value per share increases to $22.26. Quarterly cash dividend of $0.10 per share approved. Assets total $2.12 billion.
- Net interest income decreases by $0.4 million. The Company's net interest margin decreases to 2.68% from 3.04% in the previous quarter.
Third Fiscal Quarter Performance Highlights
- Net Income: Net income for the quarter ended June 30, 2023 totaled
$3.1 million or$0.42 per diluted share (including Series A preferred shares), inclusive of a$0.3 million tax related adjustment and temporary increase in the effective tax rate for the quarter, resulting from increased business in other states, coupled with lower projected pre-tax income. Net income for the quarter ended March 31, 2023 totaled$3.2 million or$0.43 per diluted share (including Series A preferred shares). Pre-tax income for the quarter ended June 30, 2023 totaled$4.4 million , an increase of$0.2 million or6% versus net income of$4.1 million reported for the quarter ended March 31, 2023. - Strong Liquidity Position: At June 30, 2023, liquidity sources, which includes cash and unencumbered securities and secured and unsecured funding capacity, totaled
$485.8 million or approximately165% of uninsured deposit balances. - Insured/Collateralized Deposits: Insured and collateralized deposits, which include municipal deposits, accounted for approximately
81% of total deposits at June 30, 2023. - Lending Activity: Loans totaled
$1.82 billion , a net increase of$36.1 million , or8.1% annualized, from March 31, 2023, primarily driven by growth in niche-residential, conventional C&I and SBA loans. - Hauppauge Banking Center: In May 2023, the Company opened the Bank’s Hauppauge Business Banking Center, the nexus of our expanded commercial lending and deposit activities, that are integral to the ongoing diversification of our balance sheet as we fill the void left by the diminishing number of commercial banks in the NYC Metro area. We are off to a robust start with deposits currently in excess of
$17 million and C&I loans closed to date of approximately$34 million . - Accumulated Other Comprehensive Loss, Net of Tax, was
$1.4 million , reflecting the relatively small size of the Company’s investment portfolio and representing approximately0.77% of total capital at June 30, 2023. - Capital Strength: The Bank’s Tier 1 leverage ratio was
9.16% and its Total Risk-Based capital ratio was14.24% at June 30, 2023, each significantly above the regulatory minimums for a well-capitalized institution. The Company’s Tangible Common Equity ratio was7.77% at June 30, 2023,7.84% at March 31, 2023, and8.41% at September 30, 2022. - Tangible Book Value Per Share: Tangible book value per share (including Series A preferred shares) increased to
$22.26 at June 30, 2023 from$21.96 at March 31, 2023 and$21.00 at September 30, 2022. - Quarterly Cash Dividend: The Company’s Board of Directors approved a
$0.10 per share cash dividend on both common and Series A preferred shares payable on August 16, 2023 to stockholders of record on August 9, 2023. - Net Interest Income: Net interest income was
$13.5 million for the quarter ended June 30, 2023, a slight decrease of$0.4 million , or3.0% from the prior linked quarter of 2023 as new loan growth begins to mitigate increased funding costs. - Net Interest Margin: The Company’s net interest margin during the quarter ended June 30, 2023 was
2.68% versus3.04% in the quarter ended March 31, 2023, reflective of the continued rise in funding costs and to a lesser extent, the Company’s decision to increase liquidity as a result of recent industry events. - Balance Sheet: Assets totaled
$2.12 billion at June 30, 2023 versus$2.07 billion at March 31, 2023 and$1.84 billion at September 30, 2022.
MINEOLA, N.Y., July 27, 2023 (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, 2023 and the payment of a
Earnings Summary for the Quarter Ended June 30, 2023
The Company reported net income for the quarter ended June 30, 2023 of
The decline in net income recorded in the third fiscal quarter of 2023 from the comparable 2022 quarter resulted from two primary factors. The first was a decrease in net interest income. The second was an increase in non-interest expense largely due to increases in compensation and benefits, professional fees and regulatory assessments (included in other operating expenses), which were partially offset by a decrease in the provision for loan losses and an increase in non-interest income. Included in compensation and benefits expense in the second quarter of 2023 was expense related to the staffing of the SBA and C&I Banking teams, and lower deferred loan origination costs that were offset by lower incentive compensation expense resulting from reduced lending activity. The increase in non-interest income is reflective of the strengthening of secondary market premiums in connection with sales of SBA loans. In addition, the Company’s effective tax rate increased to
Net interest income was
Earnings Summary for the Nine Months Ended June 30, 2023
For the nine months ended June 30, 2023, the Company reported net income of
The decline in net income recorded for the nine months ended June 30, 2023 from the comparable 2022 period resulted primarily from a decrease in net interest income, an increase in the provision for loan losses expense due to growth in the loan portfolio, a decrease in gain on sale of loans due to a lower volume of SBA loan sales and depressed secondary market premiums early in the year, a decrease in purchase accounting accretion and an increase in non-interest expense. The increase in non-interest expense was primarily due to increases in occupancy and equipment, data processing, professional fees and regulatory assessments (included in other operating expenses).
Net interest income was
Michael P. Puorro, Chairman and Chief Executive Officer, commented on the Company’s quarterly results: “We are pleased to show consistent results in the second quarter of 2023 as we navigate this unprecedented banking environment while investing in our continued diversification and growth. With sound earnings, liquidity and capital, we have a strong foundation on which to expand our existing verticals and develop new opportunities. Deposit and loan growth at our recently launched Hauppauge Business Banking Center, the nexus of our C&I banking strategy, are off to a strong start with core deposits currently in excess of
Balance Sheet Highlights
Total assets at June 30, 2023 were
The Company had
Total borrowings at June 30, 2023 were
Stockholders’ equity increased to
Loan Portfolio Growth and Allowance for Loan Losses
On a linked quarter basis, the Company exhibited net loan growth of
Historically, the Bank has generated additional income by strategically originating and selling residential and government guaranteed loans to other financial institutions at premiums, while also retaining servicing rights in some sales. However, due to the pace of interest rate increases over the last year, the residential loan sale market remains inactive, and the Bank continues originating residential loans for its own portfolio. During the quarter ended June 30, 2023, the Company sold
In the first half of 2023 we largely completed expansions of our SBA & USDA and C&I Banking Teams and anticipate the pace and volume of SBA and USDA guaranteed loan originations and C&I loan originations and deposit production will grow during the second half of 2023.
During the third fiscal quarter of 2023, the Bank recorded a provision for loan losses expense of
Net Interest Margin
The Bank’s net interest margin was
About Hanover Community Bank and Hanover Bancorp, Inc.
Hanover Bancorp, Inc. (NASDAQ: HNVR), is a 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 employs a complete suite of consumer, commercial, and municipal banking products and services, including multi-family and commercial mortgages, residential loans, business loans and lines of credit. Hanover also offers its customers access to 24-hour ATM service with no fees attached, free checking with interest, telephone banking, advanced technologies in mobile and internet banking for our consumer and business customers, safe deposit boxes and much more. The Company’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, Forest Hills, Flushing, Sunset Park, Rockefeller Center and Chinatown, 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 includes non-GAAP financial measures, including the Company’s adjusted operating earnings, adjusted returns on average assets and shareholders’ equity, and adjusted operating 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 adjusted operating net income and adjusted operating efficiency ratio for the periods presented in this discussion, 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. They can be affected by inaccurate assumptions that Hanover Bancorp, Inc. might make or by known or unknown risks and uncertainties, including those discussed in our Annual Report on Form 10-K under Item 1A - Risk Factors, as updated by our subsequent filings with the Securities and Exchange Commission. Further, the adverse effect of the COVID-19 pandemic on the Company, its customers, and the communities where it operates may adversely affect the Company’s business, results of operations and financial condition for an indefinite period of time. 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, | September 30, | ||||||||||
| 2023 | 2023 | 2022 | ||||||||||
| Assets | ||||||||||||
| Cash and cash equivalents | $ | 211,533 | $ | 204,355 | $ | 149,947 | ||||||
| Securities-available for sale, at fair value | 11,094 | 11,849 | 12,285 | |||||||||
| Investments-held to maturity | 4,180 | 4,263 | 4,414 | |||||||||
| Loans, net of deferred loan fees and costs | 1,823,503 | 1,787,365 | 1,623,531 | |||||||||
| Less: allowance for loan losses | (15,369 | ) | (14,879 | ) | (12,844 | ) | ||||||
| Loans, net | 1,808,134 | 1,772,486 | 1,610,687 | |||||||||
| Goodwill | 19,168 | 19,168 | 19,168 | |||||||||
| Premises & fixed assets | 16,256 | 15,692 | 14,462 | |||||||||
| Operating lease assets | 10,602 | 11,008 | - | |||||||||
| Other assets | 40,816 | 32,899 | 29,095 | |||||||||
| Assets | $ | 2,121,783 | $ | 2,071,720 | $ | 1,840,058 | ||||||
| Liabilities and stockholders' equity | ||||||||||||
| Core deposits | $ | 1,137,134 | $ | 1,276,422 | $ | 1,189,033 | ||||||
| Time deposits | 456,505 | 430,852 | 339,073 | |||||||||
| Total deposits | 1,593,639 | 1,707,274 | 1,528,106 | |||||||||
| Borrowings | 293,849 | 136,962 | 101,752 | |||||||||
| Subordinated debentures | 24,608 | 24,594 | 24,568 | |||||||||
| Operating lease liabilities | 11,309 | 11,711 | - | |||||||||
| Other liabilities | 15,572 | 10,657 | 13,048 | |||||||||
| Liabilities | 1,938,977 | 1,891,198 | 1,667,474 | |||||||||
| Stockholders' equity | 182,806 | 180,522 | 172,584 | |||||||||
| Liabilities and stockholders' equity | $ | 2,121,783 | $ | 2,071,720 | $ | 1,840,058 | ||||||
| HANOVER BANCORP, INC. | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (unaudited) | ||||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| 6/30/2023 | 6/30/2022 | 6/30/2023 | 6/30/2022 | |||||||||||||
| Interest income | $ | 28,459 | $ | 16,259 | $ | 76,091 | $ | 48,816 | ||||||||
| Interest expense | 14,954 | 1,439 | 33,398 | 3,983 | ||||||||||||
| Net interest income | 13,505 | 14,820 | 42,693 | 44,833 | ||||||||||||
| Provision for loan losses | 500 | 1,000 | 2,932 | 2,400 | ||||||||||||
| Net interest income after provision for loan losses | 13,005 | 13,820 | 39,761 | 42,433 | ||||||||||||
| Loan servicing and fee income | 811 | 779 | 2,028 | 2,203 | ||||||||||||
| Service charges on deposit accounts | 70 | 60 | 200 | 169 | ||||||||||||
| Gain on sale of loans held-for-sale | 1,052 | 849 | 2,625 | 3,916 | ||||||||||||
| Gain on sale of investments | - | - | - | 105 | ||||||||||||
| Other operating income | 41 | 140 | 288 | 483 | ||||||||||||
| Non-interest income | 1,974 | 1,828 | 5,141 | 6,876 | ||||||||||||
| Compensation and benefits | 5,405 | 4,843 | 15,301 | 15,400 | ||||||||||||
| Occupancy and equipment | 1,587 | 1,394 | 4,601 | 4,177 | ||||||||||||
| Data processing | 576 | 374 | 1,435 | 1,133 | ||||||||||||
| Marketing and advertising | 200 | 112 | 533 | 298 | ||||||||||||
| Acquisition costs | - | 250 | - | 250 | ||||||||||||
| Professional fees | 781 | 579 | 2,345 | 1,718 | ||||||||||||
| Other operating expenses | 2,017 | 1,178 | 5,189 | 3,376 | ||||||||||||
| Non-interest expense | 10,566 | 8,730 | 29,404 | 26,352 | ||||||||||||
| Income before income taxes | 4,413 | 6,918 | 15,498 | 22,957 | ||||||||||||
| Income tax expense | 1,319 | 1,585 | 3,857 | 5,227 | ||||||||||||
| Net income | $ | 3,094 | $ | 5,333 | $ | 11,641 | $ | 17,730 | ||||||||
| Earnings per share ("EPS"): (1) | ||||||||||||||||
| Basic | $ | 0.42 | $ | 0.81 | $ | 1.59 | $ | 2.97 | ||||||||
| Diluted | $ | 0.42 | $ | 0.80 | $ | 1.57 | $ | 2.92 | ||||||||
| Average shares outstanding for basic EPS (1)(2) | 7,332,090 | 6,596,505 | 7,316,241 | 5,970,288 | ||||||||||||
| Average shares outstanding for diluted EPS (1)(2) | 7,407,613 | 6,695,567 | 7,393,976 | 6,069,494 | ||||||||||||
| (1) Calculation includes common stock and Series A preferred stock for the three and nine months ended 6/30/23. | ||||||||||||||||
| (2) Average shares outstanding before subtracting participating securities. | ||||||||||||||||
| Note: Prior period information has been adjusted to conform to current period presentation. | ||||||||||||||||
| HANOVER BANCORP, INC. | ||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (unaudited) | ||||||||||||||||||||
| QUARTERLY TREND | ||||||||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| 6/30/2023 | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | ||||||||||||||||
| Interest income | $ | 28,459 | $ | 25,060 | $ | 22,572 | $ | 19,613 | $ | 16,259 | ||||||||||
| Interest expense | 14,954 | 11,136 | 7,308 | 3,191 | 1,439 | |||||||||||||||
| Net interest income | 13,505 | 13,924 | 15,264 | 16,422 | 14,820 | |||||||||||||||
| Provision for loan losses | 500 | 932 | 1,500 | 2,050 | 1,000 | |||||||||||||||
| Net interest income after provision for loan losses | 13,005 | 12,992 | 13,764 | 14,372 | 13,820 | |||||||||||||||
| Loan servicing and fee income | 811 | 539 | 678 | 681 | 779 | |||||||||||||||
| Service charges on deposit accounts | 70 | 67 | 63 | 63 | 60 | |||||||||||||||
| Gain on sale of loans held-for-sale | 1,052 | 995 | 578 | 1,227 | 849 | |||||||||||||||
| Other operating income | 41 | 155 | 92 | 24 | 140 | |||||||||||||||
| Non-interest income | 1,974 | 1,756 | 1,411 | 1,995 | 1,828 | |||||||||||||||
| Compensation and benefits | 5,405 | 5,564 | 4,332 | 4,265 | 4,843 | |||||||||||||||
| Occupancy and equipment | 1,587 | 1,537 | 1,477 | 1,457 | 1,394 | |||||||||||||||
| Data processing | 576 | 441 | 418 | 496 | 374 | |||||||||||||||
| Marketing and advertising | 200 | 183 | 150 | 50 | 112 | |||||||||||||||
| Acquisition costs | - | - | - | - | 250 | |||||||||||||||
| Professional fees | 781 | 881 | 683 | 850 | 579 | |||||||||||||||
| Other operating expenses | 2,017 | 1,961 | 1,211 | 1,713 | 1,178 | |||||||||||||||
| Non-interest expense | 10,566 | 10,567 | 8,271 | 8,831 | 8,730 | |||||||||||||||
| Income before income taxes | 4,413 | 4,181 | 6,904 | 7,536 | 6,918 | |||||||||||||||
| Income tax expense | 1,319 | 972 | 1,566 | 1,712 | 1,585 | |||||||||||||||
| Net income | $ | 3,094 | $ | 3,209 | $ | 5,338 | $ | 5,824 | $ | 5,333 | ||||||||||
| Earnings per share ("EPS"): (1) | ||||||||||||||||||||
| Basic | $ | 0.42 | $ | 0.44 | $ | 0.73 | $ | 0.80 | $ | 0.81 | ||||||||||
| Diluted | $ | 0.42 | $ | 0.43 | $ | 0.72 | $ | 0.79 | $ | 0.80 | ||||||||||
| Average shares outstanding for basic EPS (1)(2) | 7,332,090 | 7,324,036 | 7,292,940 | 7,287,622 | 6,596,505 | |||||||||||||||
| Average shares outstanding for diluted EPS (1)(2) | 7,407,613 | 7,406,933 | 7,387,938 | 7,380,638 | 6,695,567 | |||||||||||||||
| (1) Calculation includes common stock and Series A preferred stock for the quarters ended 6/30/23, 3/31/23 and 12/31/22. | ||||||||||||||||||||
| (2) Average shares outstanding before subtracting participating securities. | ||||||||||||||||||||
| Note: Prior period information has been adjusted to conform to current period presentation. | ||||||||||||||||||||
| HANOVER BANCORP, INC. | ||||||||||||||||
| CONSOLIDATED NON-GAAP FINANCIAL INFORMATION (1) (unaudited) | ||||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| 6/30/2023 | 6/30/2022 | 6/30/2023 | 6/30/2022 | |||||||||||||
| ADJUSTED NET INCOME: | ||||||||||||||||
| Net income, as reported | $ | 3,094 | $ | 5,333 | $ | 11,641 | $ | 17,730 | ||||||||
| Adjustments: | ||||||||||||||||
| Merger-related expenses | - | 250 | - | 250 | ||||||||||||
| Severance and retirement expenses | - | - | 456 | - | ||||||||||||
| Total adjustments, before income taxes | - | 250 | 456 | 250 | ||||||||||||
| Adjustment for reported effective income tax rate | - | 53 | 105 | 53 | ||||||||||||
| Total adjustments, after income taxes | - | 197 | 351 | 197 | ||||||||||||
| Adjusted net income | $ | 3,094 | $ | 5,530 | $ | 11,992 | $ | 17,927 | ||||||||
| Basic earnings per share - adjusted | $ | 0.42 | $ | 0.84 | $ | 1.64 | $ | 3.00 | ||||||||
| Diluted earnings per share - adjusted | $ | 0.42 | $ | 0.83 | $ | 1.62 | $ | 2.95 | ||||||||
| ADJUSTED OPERATING EFFICIENCY RATIO(2): | ||||||||||||||||
| Operating efficiency ratio, as reported | 68.26 | % | 52.43 | % | 61.47 | % | 51.07 | % | ||||||||
| Adjustments: | ||||||||||||||||
| Merger-related expenses | 0.00 | % | -1.50 | % | 0.00 | % | -0.48 | % | ||||||||
| Severance and retirement expenses | 0.00 | % | 0.00 | % | -0.95 | % | 0.00 | % | ||||||||
| Adjusted operating efficiency ratio | 68.26 | % | 50.93 | % | 60.52 | % | 50.59 | % | ||||||||
| ADJUSTED RETURN ON AVERAGE ASSETS | 0.60 | % | 1.46 | % | 0.83 | % | 1.63 | % | ||||||||
| ADJUSTED RETURN ON AVERAGE EQUITY | 6.82 | % | 14.57 | % | 8.95 | % | 17.46 | % | ||||||||
| (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) Excludes gain on sale of securities available for sale. | ||||||||||||||||
| HANOVER BANCORP, INC. | ||||||||||||||||
| SELECTED FINANCIAL DATA (unaudited) | ||||||||||||||||
| (dollars in thousands) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| 6/30/2023 | 6/30/2022 | 6/30/2023 | 6/30/2022 | |||||||||||||
| Profitability: | ||||||||||||||||
| Return on average assets | 0.60 | % | 1.41 | % | 0.81 | % | 1.61 | % | ||||||||
| Return on average equity(1) | 6.82 | % | 14.05 | % | 8.68 | % | 17.27 | % | ||||||||
| Return on average tangible equity(1) | 7.64 | % | 16.12 | % | 9.75 | % | 20.15 | % | ||||||||
| Pre-provision net revenue to average assets | 0.95 | % | 2.09 | % | 1.27 | % | 2.30 | % | ||||||||
| Yield on average interest-earning assets | 5.65 | % | 4.45 | % | 5.44 | % | 4.60 | % | ||||||||
| Cost of average interest-bearing liabilities | 3.52 | % | 0.50 | % | 2.90 | % | 0.47 | % | ||||||||
| Net interest rate spread (2) | 2.13 | % | 3.95 | % | 2.54 | % | 4.13 | % | ||||||||
| Net interest margin (3) | 2.68 | % | 4.05 | % | 3.05 | % | 4.23 | % | ||||||||
| Non-interest expense to average assets | 2.04 | % | 2.30 | % | 2.03 | % | 2.39 | % | ||||||||
| Operating efficiency ratio (4) | 68.26 | % | 52.43 | % | 61.47 | % | 51.07 | % | ||||||||
| Average balances: | ||||||||||||||||
| Interest-earning assets | $ | 2,020,393 | $ | 1,467,131 | $ | 1,870,184 | $ | 1,417,742 | ||||||||
| Interest-bearing liabilities | 1,702,208 | 1,149,705 | 1,542,242 | 1,123,649 | ||||||||||||
| Loans | 1,798,651 | 1,323,482 | 1,748,618 | 1,283,856 | ||||||||||||
| Deposits | 1,692,045 | 1,269,123 | 1,589,092 | 1,206,207 | ||||||||||||
| Borrowings | 184,678 | 89,758 | 140,221 | 117,737 | ||||||||||||
| (1) Includes common stock and Series A preferred stock for the three and nine months ended 6/30/23. | ||||||||||||||||
| (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) Excludes gain on sale of securities available for sale. | ||||||||||||||||
| HANOVER BANCORP, INC. | ||||||||||||||||
| SELECTED FINANCIAL DATA (unaudited) | ||||||||||||||||
| (dollars in thousands, except share and per share data) | ||||||||||||||||
| At or For the Three Months Ended | ||||||||||||||||
| 6/30/2023 | 3/31/2023 | 12/31/2022 | 9/30/2022 | |||||||||||||
| Asset quality: | ||||||||||||||||
| Provision for loan losses | $ | 500 | $ | 932 | $ | 1,500 | $ | 2,050 | ||||||||
| Net (charge-offs)/recoveries | (10 | ) | (457 | ) | 60 | (92 | ) | |||||||||
| Allowance for loan losses | 15,369 | 14,879 | 14,404 | 12,844 | ||||||||||||
| Allowance for loan losses to total loans (1) | 0.84 | % | 0.83 | % | 0.82 | % | 0.79 | % | ||||||||
| Allowance for loan losses to originated loans (1)(5) | 0.95 | % | 0.95 | % | 0.95 | % | 0.94 | % | ||||||||
| Non-performing loans (2)(3)(4) | $ | 10,785 | $ | 11,031 | $ | 11,798 | $ | 13,512 | ||||||||
| Non-performing loans/total loans | 0.59 | % | 0.62 | % | 0.68 | % | 0.83 | % | ||||||||
| Non-performing loans/total assets | 0.51 | % | 0.53 | % | 0.59 | % | 0.73 | % | ||||||||
| Allowance for loan losses/non-performing loans | 142.50 | % | 134.88 | % | 122.09 | % | 95.06 | % | ||||||||
| Capital (Bank only): | ||||||||||||||||
| Tier 1 Capital | $ | 188,568 | $ | 185,449 | $ | 182,934 | $ | 178,340 | ||||||||
| Tier 1 leverage ratio | 9.16 | % | 9.79 | % | 10.34 | % | 10.90 | % | ||||||||
| Common equity tier 1 capital ratio | 13.16 | % | 12.88 | % | 14.17 | % | 15.21 | % | ||||||||
| Tier 1 risk based capital ratio | 13.16 | % | 12.88 | % | 14.17 | % | 15.21 | % | ||||||||
| Total risk based capital ratio | 14.24 | % | 13.93 | % | 15.30 | % | 16.32 | % | ||||||||
| Equity data: | ||||||||||||||||
| Shares outstanding (6) | 7,334,120 | 7,331,092 | 7,299,000 | 7,285,648 | ||||||||||||
| Stockholders' equity | $ | 182,806 | $ | 180,522 | $ | 177,628 | $ | 172,584 | ||||||||
| Book value per share (6) | 24.93 | 24.62 | 24.34 | 23.69 | ||||||||||||
| Tangible common equity (6) | 163,294 | 160,992 | 158,079 | 153,017 | ||||||||||||
| Tangible book value per share (6) | 22.26 | 21.96 | 21.66 | 21.00 | ||||||||||||
| Tangible common equity ("TCE") ratio (6) | 7.77 | % | 7.84 | % | 8.05 | % | 8.41 | % | ||||||||
| (1) Calculation excludes loans held for sale. | ||||||||||||||||
| (2) Includes | ||||||||||||||||
| (3) Includes | ||||||||||||||||
| (4) Includes | ||||||||||||||||
| (5) Calculation excludes acquired loans. | ||||||||||||||||
| (6) Includes common stock and Series A preferred stock at 6/30/23, 3/31/23 and 12/31/22. | ||||||||||||||||
| Note: Prior period information has been adjusted to conform to current period presentation. | ||||||||||||||||
| HANOVER BANCORP, INC. | ||||||||||||||||
| STATISTICAL SUMMARY | ||||||||||||||||
| QUARTERLY TREND | ||||||||||||||||
| (unaudited, dollars in thousands, except share data) | ||||||||||||||||
| 6/30/2023 | 3/31/2023 | 12/31/2022 | 9/30/2022 | |||||||||||||
| Loan distribution (1): | ||||||||||||||||
| Residential mortgages | $ | 598,747 | $ | 567,106 | $ | 550,161 | $ | 488,692 | ||||||||
| Multifamily | 583,837 | 588,244 | 590,530 | 575,061 | ||||||||||||
| Commercial real estate | 546,120 | 541,924 | 533,442 | 485,891 | ||||||||||||
| Commercial & industrial | 67,918 | 59,184 | 46,162 | 46,285 | ||||||||||||
| Home equity | 26,517 | 30,664 | 26,358 | 27,566 | ||||||||||||
| Consumer | 364 | 243 | 157 | 36 | ||||||||||||
| Total loans | $ | 1,823,503 | $ | 1,787,365 | $ | 1,746,810 | $ | 1,623,531 | ||||||||
| Sequential quarter growth rate | 2.02 | % | 2.32 | % | 7.59 | % | 14.67 | % | ||||||||
| Loans sold during the quarter | $ | 12,610 | $ | 12,756 | $ | 8,047 | $ | 19,342 | ||||||||
| Funding distribution: | ||||||||||||||||
| Demand | $ | 180,303 | $ | 178,592 | $ | 199,556 | $ | 219,225 | ||||||||
| N.O.W. | 480,108 | 627,102 | 536,092 | 582,457 | ||||||||||||
| Savings | 67,626 | 79,414 | 107,275 | 128,927 | ||||||||||||
| Money market | 409,097 | 391,314 | 285,471 | 258,424 | ||||||||||||
| Total core deposits | 1,137,134 | 1,276,422 | 1,128,394 | 1,189,033 | ||||||||||||
| Time | 456,505 | 430,852 | 389,256 | 339,073 | ||||||||||||
| Total deposits | 1,593,639 | 1,707,274 | 1,517,650 | 1,528,106 | ||||||||||||
| Borrowings | 293,849 | 136,962 | 238,273 | 101,752 | ||||||||||||
| Subordinated debentures | 24,608 | 24,594 | 24,581 | 24,568 | ||||||||||||
| Total funding sources | $ | 1,912,096 | $ | 1,868,830 | $ | 1,780,504 | $ | 1,654,426 | ||||||||
| Sequential quarter growth rate - total deposits | -6.66 | % | 12.49 | % | -0.68 | % | 13.23 | % | ||||||||
| Period-end core deposits/total deposits ratio | 71.35 | % | 74.76 | % | 74.35 | % | 77.81 | % | ||||||||
| Period-end demand deposits/total deposits ratio | 11.31 | % | 10.46 | % | 13.15 | % | 14.35 | % | ||||||||
| (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) | ||||||||||||||||||||
| 6/30/2023 | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | ||||||||||||||||
| Tangible common equity | ||||||||||||||||||||
| Total equity (2) | $ | 182,806 | $ | 180,522 | $ | 177,628 | $ | 172,584 | $ | 167,391 | ||||||||||
| Less: goodwill | (19,168 | ) | (19,168 | ) | (19,168 | ) | (19,168 | ) | (19,168 | ) | ||||||||||
| Less: core deposit intangible | (344 | ) | (362 | ) | (381 | ) | (399 | ) | (418 | ) | ||||||||||
| Tangible common equity (2) | $ | 163,294 | $ | 160,992 | $ | 158,079 | $ | 153,017 | $ | 147,805 | ||||||||||
| Tangible common equity ("TCE") ratio | ||||||||||||||||||||
| Tangible common equity (2) | $ | 163,294 | $ | 160,992 | $ | 158,079 | $ | 153,017 | $ | 147,805 | ||||||||||
| Total assets | 2,121,783 | 2,071,720 | 1,983,692 | 1,840,058 | 1,609,757 | |||||||||||||||
| Less: goodwill | (19,168 | ) | (19,168 | ) | (19,168 | ) | (19,168 | ) | (19,168 | ) | ||||||||||
| Less: core deposit intangible | (344 | ) | (362 | ) | (381 | ) | (399 | ) | (418 | ) | ||||||||||
| Tangible assets | $ | 2,102,271 | $ | 2,052,190 | $ | 1,964,143 | $ | 1,820,491 | $ | 1,590,171 | ||||||||||
| TCE ratio (2) | 7.77 | % | 7.84 | % | 8.05 | % | 8.41 | % | 9.29 | % | ||||||||||
| Tangible book value per share | ||||||||||||||||||||
| Tangible equity (2) | $ | 163,294 | $ | 160,992 | $ | 158,079 | $ | 153,017 | $ | 147,805 | ||||||||||
| Shares outstanding (2) | 7,334,120 | 7,331,092 | 7,299,000 | 7,285,648 | 7,296,624 | |||||||||||||||
| Tangible book value per share (2) | $ | 22.26 | $ | 21.96 | $ | 21.66 | $ | 21.00 | $ | 20.26 | ||||||||||
| (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 at 6/30/23, 3/31/23 and 12/31/22. | ||||||||||||||||||||
| HANOVER BANCORP, INC. | ||||||||||||||||||||||
| NET INTEREST INCOME ANALYSIS | ||||||||||||||||||||||
| For the Three Months Ended June 30, 2023 and 2022 | ||||||||||||||||||||||
| (unaudited, dollars in thousands) | ||||||||||||||||||||||
| 2023 | 2022 | |||||||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||
| Assets: | ||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||
| Loans | $ | 1,798,651 | $ | 25,581 | 5.70 | % | $ | 1,323,482 | $ | 15,842 | 4.80 | % | ||||||||||
| Investment securities | 15,885 | 198 | 5.00 | % | 10,752 | 98 | 3.66 | % | ||||||||||||||
| Interest-earning cash | 195,883 | 2,494 | 5.11 | % | 128,669 | 272 | 0.85 | % | ||||||||||||||
| FHLB stock and other investments | 9,974 | 186 | 7.48 | % | 4,228 | 47 | 4.46 | % | ||||||||||||||
| Total interest-earning assets | 2,020,393 | 28,459 | 5.65 | % | 1,467,131 | 16,259 | 4.45 | % | ||||||||||||||
| Non interest-earning assets: | ||||||||||||||||||||||
| Cash and due from banks | 8,240 | 10,035 | ||||||||||||||||||||
| Other assets | 53,511 | 44,858 | ||||||||||||||||||||
| Total assets | $ | 2,082,144 | $ | 1,522,024 | ||||||||||||||||||
| Liabilities and stockholders' equity: | ||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||
| Savings, N.O.W. and money market deposits | $ | 1,080,328 | $ | 9,905 | 3.68 | % | $ | 778,751 | $ | 579 | 0.30 | % | ||||||||||
| Time deposits | 437,202 | 3,214 | 2.95 | % | 281,196 | 427 | 0.61 | % | ||||||||||||||
| Total savings and time deposits | 1,517,530 | 13,119 | 3.47 | % | 1,059,947 | 1,006 | 0.38 | % | ||||||||||||||
| Borrowings | 160,079 | 1,501 | 3.76 | % | 65,213 | 100 | 0.62 | % | ||||||||||||||
| Subordinated debentures | 24,599 | 334 | 5.45 | % | 24,545 | 333 | 5.44 | % | ||||||||||||||
| Total interest-bearing liabilities | 1,702,208 | 14,954 | 3.52 | % | 1,149,705 | 1,439 | 0.50 | % | ||||||||||||||
| Demand deposits | 174,515 | 209,176 | ||||||||||||||||||||
| Other liabilities | 23,490 | 10,863 | ||||||||||||||||||||
| Total liabilities | 1,900,213 | 1,369,744 | ||||||||||||||||||||
| Stockholders' equity | 181,931 | 152,280 | ||||||||||||||||||||
| Total liabilities & stockholders' equity | $ | 2,082,144 | $ | 1,522,024 | ||||||||||||||||||
| Net interest rate spread | 2.13 | % | 3.95 | % | ||||||||||||||||||
| Net interest income/margin | $ | 13,505 | 2.68 | % | $ | 14,820 | 4.05 | % | ||||||||||||||
| HANOVER BANCORP, INC. | ||||||||||||||||||||||
| NET INTEREST INCOME ANALYSIS | ||||||||||||||||||||||
| For the Nine Months Ended June 30, 2023 and 2022 | ||||||||||||||||||||||
| (unaudited, dollars in thousands) | ||||||||||||||||||||||
| 2023 | 2022 | |||||||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||
| Assets: | ||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||
| Loans | $ | 1,748,618 | $ | 71,501 | 5.47 | % | $ | 1,283,856 | $ | 47,972 | 5.00 | % | ||||||||||
| Investment securities | 16,268 | 608 | 5.00 | % | 12,659 | 358 | 3.78 | % | ||||||||||||||
| Interest-earning cash | 97,681 | 3,558 | 4.87 | % | 116,709 | 356 | 0.41 | % | ||||||||||||||
| FHLB stock and other investments | 7,617 | 424 | 7.44 | % | 4,518 | 130 | 3.85 | % | ||||||||||||||
| Total interest-earning assets | 1,870,184 | 76,091 | 5.44 | % | 1,417,742 | 48,816 | 4.60 | % | ||||||||||||||
| Non interest-earning assets: | ||||||||||||||||||||||
| Cash and due from banks | 9,557 | 8,901 | ||||||||||||||||||||
| Other assets | 53,334 | 47,044 | ||||||||||||||||||||
| Total assets | $ | 1,933,075 | $ | 1,473,687 | ||||||||||||||||||
| Liabilities and stockholders' equity: | ||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||
| Savings, N.O.W. and money market deposits | $ | 1,000,926 | $ | 22,461 | 3.00 | % | $ | 694,429 | $ | 1,290 | 0.25 | % | ||||||||||
| Time deposits | 401,095 | 7,144 | 2.38 | % | 311,483 | 1,319 | 0.57 | % | ||||||||||||||
| Total savings and time deposits | 1,402,021 | 29,605 | 2.82 | % | 1,005,912 | 2,609 | 0.35 | % | ||||||||||||||
| Borrowings | 115,635 | 2,792 | 3.23 | % | 93,213 | 376 | 0.54 | % | ||||||||||||||
| Subordinated debentures | 24,586 | 1,001 | 5.44 | % | 24,524 | 998 | 5.44 | % | ||||||||||||||
| Total interest-bearing liabilities | 1,542,242 | 33,398 | 2.90 | % | 1,123,649 | 3,983 | 0.47 | % | ||||||||||||||
| Demand deposits | 187,071 | 200,295 | ||||||||||||||||||||
| Other liabilities | 24,522 | 12,456 | ||||||||||||||||||||
| Total liabilities | 1,753,835 | 1,336,400 | ||||||||||||||||||||
| Stockholders' equity | 179,240 | 137,287 | ||||||||||||||||||||
| Total liabilities & stockholders' equity | $ | 1,933,075 | $ | 1,473,687 | ||||||||||||||||||
| Net interest rate spread | 2.54 | % | 4.13 | % | ||||||||||||||||||
| Net interest income/margin | $ | 42,693 | 3.05 | % | $ | 44,833 | 4.23 | % | ||||||||||||||
FAQ
What is Hanover Bancorp's net income for Q3?
What is the increase in loans for the quarter?
What is the tangible book value per share?
What is the approved cash dividend per share?
What is the total assets of Hanover Bancorp?
