Hanover Bancorp (HNVR) investor relations material

Executive summary

• Net income for Q2 2026 was $4.1 million ($0.55 per diluted share), up from $2.4 million in Q2 2025 and $1.9 million in Q1 2026, driven by higher net interest income and lower provision for credit losses, partially offset by lower non-interest income and higher non-interest expense.

• Adjusted net income was $4.3 million ($0.58 per diluted share) for Q2 2026.

• Total assets were $2.34 billion and total deposits were $2.01 billion as of June 30, 2026.

• The company’s return on average assets improved to 0.73% (adjusted: 0.77%) and return on average equity to 8.01% (tangible: 8.85%, adjusted: 9.30%) for Q2 2026.

• The company remains well-capitalized and continues to focus on expanding its core verticals, optimizing funding costs, and disciplined operations.

Financial highlights

• Net interest income for Q2 2026 reached a record $16.8 million, up 2.5% sequentially and 13.36% year-over-year, with net interest margin rising to 3.10% from 2.76%.

• Provision for credit losses decreased to $0.5 million from $2.4 million in Q2 2025.

• Non-interest income fell by $0.8 million, mainly due to a $0.9 million drop in gain on sale of loans and subdued SBA loan activity.

• Non-interest expense rose by $1.0 million, including $240,000 in debt extinguishment charges.

• Earnings per diluted share were $0.55 for Q2 2026, up from $0.33 in Q2 2025.

Outlook and guidance

• Management expects continued margin expansion, profitability improvements, and focus on core deposit growth, prudent credit standards, and balance sheet diversification.

• The company plans to open a new branch in Riverhead, NY in Q3 2026 and continue expanding its residential flow origination program.