Hanover Bancorp (HNVR) Q4 2024 earnings summary

Executive summary

• Fourth quarter net income reached $3.9 million ($0.52 per diluted share), up from $3.8 million ($0.51) year-over-year.

• Record non-interest income of $4.2 million, up 28.67% year-over-year and 5.89% sequentially.

• Net interest income for Q4 was $13.8 million, up 9.08% year-over-year and 5.39% sequentially.

• Full-year 2024 net income was $12.3 million ($1.66 per diluted share), down from $13.6 million ($1.84) in 2023.

• Tangible book value per share rose to $23.86, up 6% year-over-year.

Financial highlights

• Net interest margin improved to 2.53% in Q4 2024 from 2.40% a year ago and 2.37% in Q3 2024.

• Return on average assets for Q4 was 0.70% (0.69% prior year); return on average equity was 7.98% (8.10%).

• Allowance for credit losses at 1.15% of total loans, up from 1.00% a year ago.

• Non-performing loans totaled $16.4 million (0.82% of loans), up from $14.5 million (0.74%) a year ago.

• Efficiency ratio for Q4 was 69.01%, up from 67.05% a year ago.

Outlook and guidance

• Management expects increased loan sale activity in 2025, especially in residential and SBA/USDA segments.

• Pending core system conversion in Q1 2025 is anticipated to deliver operational efficiencies and improved customer experience.

• Loan and deposit pipelines remain strong across C&I, SBA, and residential banking verticals.