Hanover Bancorp (HNVR) investor relations material

Executive summary

• Net income for Q4 2025 was $33 thousand, down sharply from $3.9 million in Q4 2024, primarily due to a $6.1 million provision for credit losses and lower non-interest income, partially offset by higher net interest income.

• Full-year 2025 net income was $7.5 million ($1.00 per diluted share), compared to $12.3 million ($1.66 per diluted share) in 2024; adjusted net income (excluding core system conversion expenses) was $10.1 million.

• The company declared a $0.10 per share quarterly cash dividend and repurchased 81,975 shares during 2025.

Financial highlights

• Net interest income for Q4 2025 was $15.8 million, up 14.64% year-over-year; full-year net interest income was $60.5 million, up 13.91%.

• Pre-provision net revenue for Q4 2025 reached $6.2 million, the highest since Q4 2022.

• Operating efficiency ratio improved to 66.46% in Q4 2025, the lowest since Q1 2024.

• Total assets at year-end were $2.38 billion, with total deposits of $2.03 billion, up 3.79% year-over-year.

• Book value per share increased to $27.02; tangible book value per share rose to $24.41.

Outlook and guidance

• Management expects continued growth in C&I lending and deposit activity in 2026, supported by a strong loan pipeline and further branch expansion.

• The company plans to open a new full-service branch in Riverhead, NY, with a temporary office operational by Q1 2026.