Business
Hanover Bancorp, Inc. Reports Earnings for the Fourth Calendar Quarter highlighted by Increased Net Income and Net Interest Income and Strong Non-interest Income
Fourth Calendar Quarter Performance Highlights Net Income: Net income for the quarter ended December 31, 2023 totaled $3.8 million or $0.51 per diluted share
About this update from Hanover Bancorp, Inc.
[{"type":"text","content":"Fourth Calendar Quarter Performance Highlights Net Income: Net income for the quarter ended December 31, 2023 totaled $3.8 million or $0.51 per diluted share (including Series A preferred shares), versus $3.5 million or $0.48 per diluted share (including Series A preferred shares) in the prior linked quarter. The Company recorded adjusted (non-GAAP) net income (excluding severance expense) of $4.0 million or $0.54 per diluted share for the quarter ended December 31, 2023, versus adjusted (non-GAAP) net income (excluding litigation settlement payment) of $2.8 million or $0.38 per diluted share for the quarter ended September 30, 2023. Net Interest Income: Net interest income was $12.7 million for the quarter ended December 31, 2023, an increase of $0.9 million, or 7.3% from the prior linked quarter as new loan growth at current, higher market rates began to mitigate increased funding costs.Net Interest Margin: The Company’s net interest margin during the quarter ended December 31, 2023 increased to 2.40% from 2.29% in the quarter ended September 30, 2023.Strong Non-interest Income: The Company’s non-interest income increased $0.5 million or 19.1% from the September 30, 2023 quarter (excluding litigation settlement payment) to a record high $3.3 million for the quarter ended December 31, 2023.Strong Liquidity Position: At December 31, 2023, undrawn liquidity sources, which include cash and unencumbered securities and secured and unsecured funding capacity, totaled $684.3 million or approximately 262% of uninsured deposit balances.Deposit Activity: Total deposits increased $169.5 million or 9.8% from September 30, 2023. Insured and collateralized deposits, which include municipal deposits, accounted for approximately 86% of total deposits at December 31, 2023.Loan Growth: Loans totaled $1.96 billion, a net increase of $82.6 million, or 17.6% annualized, from September 30, 2023, primarily driven by growth in niche-residential, conventional C&I and SBA loans.Asset Quality: At December 31, 2023, the Bank’s asset quality remained strong with non-performing loans representing 0.74% of the total loan portfolio and the allowance for credit losses to total loans increasing to 1% overall. Loans secured by office space accounted for approximately 2.4% of the total loan portfolio with a total balance of $46.5 million, of which less than 1% is...