Hanover Bancorp (HNVR) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $3.5 million ($0.47 per diluted share), flat year-over-year and up from $2.4 million in the prior quarter, with EPS of $0.47 versus $0.48 year-over-year.

• Net interest income rose by $2.1 million year-over-year, while non-interest expense decreased by $0.2 million, offset by a $1.1 million increase in provision for credit losses and a $1.2 million drop in non-interest income.

• Pre-provision net revenue reached $6.0 million, the highest since Q1 2023, with a return on average assets of 1.05%.

• The company completed a core system conversion in early 2025, incurring $3.2 million in one-time expenses.

• Added to the Russell 2000 Index in June 2025, reflecting increased market visibility.

Financial highlights

• Total assets at September 30, 2025 were $2.3 billion; total deposits were $2.0 billion; total stockholders' equity was $201.8 million.

• Net interest income for Q3 2025 was $15.2 million, up 2.89% sequentially and 16.19% year-over-year.

• Net interest margin improved to 2.74% in Q3 2025 from 2.37% in Q3 2024; monthly margin for September 2025 was 2.83%.

• Efficiency ratio improved to 66.71% from 71.75% year-over-year.

• Return on average assets was 0.61% and return on average equity was 6.90% for Q3 2025.

Outlook and guidance

• Management expects C&I lending and deposit activity to grow based on the existing pipeline.

• Normalized effective tax rate expected to be 25.0% for the remainder of the year.

• Anticipates continued positive impact from further FOMC rate decreases and improved yield curve, supporting lending opportunities.