Hanover Bancorp Q4 net income drops on higher credit loss provisions

Overview

• Community commercial bank's Q4 net income fell due to higher credit loss provisions

• Net interest income rose 14.64% yr/yr, driven by improved net interest margin

• Company removed $9.6 mln of non-performing loans, improving asset quality

Outlook

• Hanover Bancorp plans to open a new branch in Riverhead, NY later this year

• Company expects growth in C&I lending and deposit activity in 2026

• Hanover Bancorp focuses on managing CRE concentration ratio and NPL resolution

Result Drivers

• CREDIT LOSS PROVISION - Higher credit loss provisions impacted net income, with a $6.1 mln provision in Q4 2025 compared to $400,000 in Q4 2024

• NET INTEREST INCOME - Net interest income increased 14.64% yr/yr due to improved net interest margin

• ASSET QUALITY ENHANCEMENT - Co removed $9.6 mln of non-performing loans, improving asset quality

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Hanover Bancorp Inc is $23.50, about 1% below its January 28 closing price of $23.73

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNXc5klXT

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