$HNVR

Hanover Bancorp, Inc. /MD

CIK:0001828588|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
INTEREST INCOME
Loans	$ 29,788	$ 29,785	$ 59,406	$ 59,769
Taxable securities	1,650	1,433	3,021	2,619
Other interest income	628	831	1,931	2,498
Total interest income	32,066	32,049	64,358	64,886
INTEREST EXPENSE
Savings, NOW and money market deposits	9,129	10,649	18,681	22,104
Time deposits	4,575	5,058	9,305	10,378
Borrowings	1,591	1,547	3,239	2,980
Total interest expense	15,295	17,254	31,225	35,462
Net interest income	16,771	14,795	33,133	29,424
Provision for credit losses	500	2,357	1,030	2,957
Net interest income after provision for credit losses	16,271	12,438	32,103	26,467
NON-INTEREST INCOME
Total non-interest income	2,796	3,561	5,540	7,293
NON-INTEREST EXPENSE
Salaries and employee benefits	7,368	7,003	17,495	14,235
Conversion expenses				3,180
Occupancy and equipment	2,012	1,910	4,080	3,746
Data processing	431	508	853	1,101
Professional fees	897	878	1,803	1,665
Federal deposit insurance premiums	364	365	726	702
Other expenses	2,576	1,952	4,297	3,983
Total non-interest expense	13,648	12,616	29,254	28,612
Income before income tax expense	5,419	3,383	8,389	5,148
Income tax expense	1,355	940	2,451	1,184
NET INCOME	$ 4,064	$ 2,443	$ 5,938	$ 3,964
Earnings per share:
BASIC (in dollars per share)	$ 0.55	$ 0.33	$ 0.8	$ 0.53
DILUTED (in dollars per share)	$ 0.55	$ 0.33	$ 0.8	$ 0.53
Loan servicing and fee income
NON-INTEREST INCOME
Revenue from contracts with customers, not included within the scope of ASC 606	$ 1,164	$ 1,083	$ 2,206	$ 2,164
Service charges on deposit accounts
NON-INTEREST INCOME
Revenue from contracts with customers, not included within the scope of ASC 606	119	162	369	279
Gain on sale of loans held-for-sale
NON-INTEREST INCOME
Revenue from contracts with customers, not included within the scope of ASC 606	1,377	2,298	2,820	4,650
Other income
NON-INTEREST INCOME
Revenue from contracts with customers, not included within the scope of ASC 606	$ 136	$ 18	$ 145	$ 200

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 5,938	$ 3,964
Adjustments to reconcile net income to net cash from operating activities:
Provision for credit losses	1,030	2,957
Depreciation and amortization	1,009	974
Amortization of right-of-use assets	2,849	1,053
Stock-based compensation	799	886
Net gain on sale of loans held-for-sale	(2,820)	(4,650)
Net amortization of premiums, discounts and loan fees and costs	1,085	913
Amortization of intangible assets	25	28
Amortization of debt issuance costs	37	27
Debt extinguishment charges	240
Loan servicing rights valuation adjustments	602	518
Payments on operating leases	(2,939)	(1,066)
Origination of loans held for sale	(59,351)	(45,816)
Proceeds from loans held for sale	64,403	42,597
Decrease in accrued interest receivable	134	184
Decrease in other assets	1,956	1,628
Increase (decrease) in accrued interest payable	34	(59)
Increase (decrease) in other liabilities	899	(2,086)
Net cash provided from operating activities	15,930	2,052
Cash flows from investing activities:
Purchases of securities available-for-sale	(51,006)	(98,156)
Redemptions of restricted securities, net	1,944	16
Principal repayments of securities held to maturity	104	163
Maturities, prepayments and calls of securities available-for-sale	15,051	79,926
Proceeds from loans held for sale previously classified as portfolio loans	15,834	60,344
Net increase in loans	(13,241)	(36,652)
Additions to premises and equipment	(626)	(318)
Net cash from investing activities	(31,940)	5,323
Cash flows from financing activities:
Net decrease in deposits	(15,545)	(2,999)
Proceeds from term FHLB advances, net of deferred prepayment penalty	59,769
Repayments of term FHLB advances	(100,725)
Proceeds from issuance of subordinated debentures, net of issuance costs	34,209
Repayments subordinated debentures	(25,000)
Payments related to tax withholding for equity awards	(338)	(731)
Cash dividends paid	(1,488)	(1,499)
Repurchase of common stock of Hanover Bancorp, Inc.	(2,648)
Proceeds from exercise of stock options, net	115	(468)
Net cash from financing activities	(51,651)	(5,697)
Net change in cash and cash equivalents	(67,661)	1,678
Cash and cash equivalents, beginning of period	208,904	162,857
Cash and cash equivalents, end of period	141,243	164,535
Supplemental cash flow information:
Interest paid	31,191	35,521
Income taxes paid	184	1,161
Supplemental non-cash disclosure:
Transfers from portfolio loans to loans held-for-sale	$ 14,587	50,664
Lease liabilities arising from obtaining right-of-use assets		$ 3,606

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Cash and non-interest-bearing deposits due from banks	$ 10,931	$ 95,791
Interest-bearing deposits due from banks	130,312	113,113
Total cash and cash equivalents	141,243	208,904
Securities:
Securities held to maturity, fair value of $866 at June 30, 2026 and $976 at December 31, 2025 (net of allowance for credit losses of $0 at June 30, 2026 and December 31, 2025)	912	1,017
Securities available for sale, at fair value (net of allowance for credit losses of $0 at June 30, 2026 and December 31, 2025)	135,043	99,552
Loans held for sale	2,928	6,407
Loans	1,997,893	2,000,749
Allowance for credit losses	(19,139)	(18,694)
Loans, net	1,978,754	1,982,055
Premises and equipment, net	14,052	14,313
Operating lease assets	7,006	9,855
Accrued interest receivable	11,646	11,780
Prepaid post retirement plan	3,214	3,247
Stock in Federal Home Loan Bank ("FHLB"), at cost	5,848	7,792
Goodwill	19,168	19,168
Loan servicing rights	6,020	6,320
Other assets	10,796	12,686
TOTAL ASSETS	2,336,630	2,383,096
Deposits:
Non-interest-bearing demand	254,270	247,786
Savings, NOW and money market	1,252,231	1,270,705
Time	506,338	509,896
Total deposits	2,012,839	2,028,387
Borrowings	59,810	100,725
Subordinated debentures, $35,000 and $25,000 face amount at June 30, 2026 and December 31, 2025, respectively (less unamortized debt issuance costs of $771 and $257 at June 30, 2026 and December 31, 2025)	34,229	24,743
Operating lease liabilities	7,628	10,567
Accrued interest payable	1,775	1,741
Other liabilities	17,602	16,667
TOTAL LIABILITIES	2,133,883	2,182,830
COMMITMENTS AND CONTINGENT LIABILITIES
STOCKHOLDERS' EQUITY
Preferred stock, Series A (par value $0.01; 15,000,000 shares authorized; issued and outstanding 275,000 at June 30, 2026 and December 31, 2025, respectively)	5,041	5,041
Common stock (par value $0.01; 17,000,000 shares authorized; issued and outstanding 7,055,424 and 7,135,403 at June 30, 2026 and December 31, 2025, respectively)	71	71
Surplus	121,361	123,433
Retained earnings	76,845	72,401
Accumulated other comprehensive loss, net of tax	(571)	(680)
TOTAL STOCKHOLDERS' EQUITY	202,747	200,266
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 2,336,630	$ 2,383,096