Hanover Bancorp (HNVR) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $1.9M ($0.25 per diluted share), with adjusted net income of $4.0M ($0.54 per diluted share) after excluding severance, reflecting margin expansion and disciplined balance sheet management.

• Total assets reached $2.4B, loans $2.0B, and deposits $2.0B as of March 31, 2026, with a branch-lite, niche-focused model and strong profitability metrics.

• Net interest income rose by $1.7M year-over-year to $16.4M, with net interest margin expanding to 2.96% from 2.68%.

• Completed $35M subordinated note issuance at 7.25% and redeemed $25M of higher-cost notes, reducing funding costs.

• Management restructuring led to a $2.2M severance expense for the former President.

Financial highlights

• Q1 2026 net income: $1.9M; adjusted net income: $4.0M; diluted EPS: $0.25; adjusted diluted EPS: $0.54.

• Total assets: $2.4B; total deposits: $2.02B; loan-to-deposit ratio: 99%.

• Net interest margin: 2.96% (up from 2.68% year-over-year).

• Book value per share: $27.11; tangible book value per share: $24.50.

• Allowance for credit losses: $19.1M (0.96% of total loans); non-accrual loans: $24.6M (1.23% of loans).

Outlook and guidance

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

• Loan pipeline at March 31, 2026, was $114.7M, with 58% in niche-residential and SBA/USDA lending.

• Back-to-back customer loan swap program launched in late 2025, expected to drive noninterest income by mid-2026.

• Focus on organic growth, prudent acquisitions, and expansion in key commercial markets and the New York metro area.