Hanover Bancorp (HNVR) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $1.9 million ($0.25 per diluted share), with adjusted net income excluding severance at $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.

• Non-interest income declined by $1.0 million, mainly due to lower gains on loan sales and SBA loan activity.

• The company executed a $35 million subordinated note issuance at 7.25% and redeemed $25 million of higher-cost notes, reducing funding costs and supporting growth.

• Management restructuring led to the departure of the former President, with a severance expense of $2.2 million.

Financial highlights

• 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.

• Efficiency ratio improved to 81.68% from 87.12% year-over-year.

Outlook and guidance

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

• Anticipates stable liquidity and capital positions, with ongoing expansion in the New York metro and Long Island areas.