Hanover Bancorp (HNVR) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $3.5 million ($0.48 per diluted share), flat year-over-year; adjusted net income was $3.7 million ($0.50 per share), up from $2.8 million ($0.38 per share) in Q3 2023, excluding non-recurring items.

• Total assets stood at $2.33 billion, deposits at $1.96 billion, and stockholders' equity at $192.3 million as of September 30, 2024.

• Record non-interest income of $4.0 million, up 9.17% sequentially and 6.66% year-over-year.

• The company remains well capitalized, exceeding all regulatory capital requirements.

• A new branch in Port Jefferson, NY is expected in Q1 2025.

Financial highlights

• Revenue for Q3 2024 was $17.1 million, with net interest income of $13.1 million, up 11.04% year-over-year; net interest margin improved to 2.37% from 2.29%.

• Non-interest income increased by $0.2 million, driven by higher gains on SBA loan sales, partially offset by lower other income.

• Non-interest expense rose by $1.9 million, mainly due to higher salaries and severance costs.

• Provision for credit losses decreased to $0.2 million from $0.5 million in Q3 2023.

• Core deposits grew 5.14% to $1.45 billion since year-end.

Outlook and guidance

• Management expects continued net interest margin expansion if interest rates decline as forecasted, with positive earnings impact anticipated.

• Strategic focus remains on efficiency, talent recruitment, and expanding in Long Island and NYC markets.

• Business development is focused on flow originations and government-guaranteed lending to drive future non-interest income.