Hanover Bancorp (HNVR) investor relations material

Executive summary

• Net income for Q2 2026 was $4.1 million ($0.55 per diluted share), up from $1.9 million in Q1 2026 and $2.4 million in Q2 2025; adjusted net income was $4.3 million ($0.58 per diluted share), driven by higher net interest income and lower provision for credit losses.

• Total assets reached $2.34 billion and total deposits $2.01 billion as of June 30, 2026, reflecting strong organic and acquisition-driven growth since 2021.

• Return on average assets improved to 0.73% (adjusted: 0.77%) and return on average tangible equity to 8.85% (adjusted: 9.30%) for Q2 2026.

• Continued expansion with new branches in Hauppauge (2023), Port Jefferson (2025), and a planned Riverhead branch in Q3 2026.

• Maintained a branch-lite, efficient operating model with high assets, loans, and deposits per office compared to peers.

Financial highlights

• Net interest margin expanded to 3.10% in Q2 2026, up from 2.96% in Q1 2026 and 2.76% in Q2 2025, with net interest income reaching a record $16.8 million.

• Diluted EPS for Q2 2026 was $0.55, with adjusted diluted EPS at $0.58.

• Efficiency ratio averaged 66.1% over four years and was 69.75% for Q2 2026 (adjusted: 68.34%), outperforming peer median.

• Provision for credit losses decreased to $0.5 million from $2.4 million in Q2 2025.

• Total assets grew at an 11% CAGR since 2021; total loans and deposits both at 10–13% CAGR over the same period.

Outlook and guidance

• Management expects continued margin expansion, profitability improvements, and focus on core deposit growth, prudent credit standards, and balance sheet diversification.

• The new Riverhead branch is on track to open in Q3 2026, supporting regional growth.

• Back-to-back customer loan level swap program launched in late 2025, expected to diversify noninterest income by late 2026 into 2027.