Hanover Bancorp (HNVR) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $1.9 million ($0.25 per diluted share); adjusted net income excluding severance was $4.0 million ($0.54 per diluted share), reflecting margin expansion and disciplined balance sheet management.

• Net interest income rose to $16.4 million, up 11.85% year-over-year and 3.36% sequentially, with net interest margin expanding to 2.96% from 2.68% a year ago.

• Board declared a $0.10 per share quarterly cash dividend on both common and Series A preferred shares.

• Completed $35 million subordinated debt issuance at 7.25% and redeemed higher-cost notes, enhancing capital and reducing funding costs.

• Regulatory approval received for a new Long Island branch; temporary loan production office operational in Riverhead.

Financial highlights

• Adjusted return on average assets was 0.70% and adjusted return on average equity was 7.98% for Q1 2026.

• Total assets were $2.37 billion at March 31, 2026, with total deposits at $2.02 billion and a loan-to-deposit ratio of 99%.

• Book value per share increased to $27.11 and tangible book value per share to $24.50.

• Allowance for credit losses was $19.1 million (0.96% of total loans); non-performing loans were 1.23% of total loans.

• Provision for credit losses was $530 thousand for the quarter.

Outlook and guidance

• Management expects continued margin expansion, credit stabilization, and proactive management of multifamily loan repricing.

• Strategic expansion into Long Island is advancing, with new branch and business development initiatives.