HNVR · Hanover Bancorp, Inc.

Hanover Bancorp's Q1 2026 results demonstrate core earnings strength despite a GAAP net income dip to $1.9 million driven by a $2.15 million severance payment to former President McClelland Wilcox amid a management restructuring. Adjusted net income of $4.0 million reflects robust performance, fueled by net interest income growth to $16.4 million—the highest since Q3 2022—supported by net interest margin expansion to 2.96% from 2.68% YoY and 2.84% QoQ. This improvement stemmed from a 50 basis point decline in interest-bearing liability costs to 3.51%, partially offset by a 17 basis point drop in asset yields to 5.84%, alongside linked-quarter liability cost relief. Strategic moves enhanced funding efficiency: a $35 million 7.25% subordinated notes issuance on March 12 funded redemption of costlier 8.54% notes and capital strengthening, while February's $60.3 million FHLB advance restructuring slashed borrowing costs from 4.27% to 3.47%, yielding $40 thousand monthly savings with preserved term funding. Balance sheet stability prevailed with total assets at $2.37 billion, deposits at $2.02 billion, and a steady 99% loan-to-deposit ratio; loan portfolio held at $1.99 billion, with CRE concentration easing to 354% of capital. CEO Michael P. Puorro highlighted strengthening core performance, credit stabilization, margin gains, capital enhancement, funding optimization, shareholder dividends, and Long Island expansion via a new Riverhead branch. The $0.10 per share dividend underscores capital return commitment. Loan sales contributed modestly, with residential gains at $0.9 million versus SBA declines due to tighter credit amid economic caution. Overall, these actions position Hanover for sustained profitability amid deposit and NIM pressures.