Hanover Bancorp, Inc. · NASDAQ:HNVR
Hanover Bancorp — Investor Presentation (September 2022)
26 slides from Hanover Bancorp's investor presentation, Sep 15, 2022
Slide 1: Confidential Investor Presentation September 2022
Confidential Investor Presentation Investor Presentation September 2022
Slide 2: Table of Contents
2 I. Overview of Hanover Bancorp, Inc. II. Hanover’s Attractive Market III. Financial Overview Table of Contents
Slide 3: Disclaimer
3 Disclaimer (1) The acquisition is subject to applicable regulatory approvals, approval of the Minden shareholders and other customary closing conditions. The private placement is not conditional on the closing of the acquisition. This presentation has been prepared by us solely for informational p
Slide 4: I. Overview of Hanover Bancorp, Inc.
4 I. Overview of Hanover Bancorp, Inc.
Slide 5: Overview of Hanover Bancorp, Inc.
5 Overview of Hanover Bancorp, Inc. • Founded in 2009, with a focus on serving the South Asian community in Nassau County, NY • The Bank was recapitalized in 2012 by a group led by our current Chairman and CEO Michael Puorro and current members of our Board of Directors • Franchise expansion beginni
Slide 6: Corporate Timeline
6 $362 $501 $650 $849 $852 $1,485 $1,610 Corporate Timeline Source: S&P Global Market Intelligence; SEC Filings; Company Documents. Note: Total assets for 2016 – 2021 as of September 30th as Hanover has a fiscal year end of September 30th. 2022 is for the period ended 6/30/2022. ✓ In 2020 we announc
Slide 7: Introduction – Hanover Executive Management Team
7 Name Position with Hanover Age Years of Banking Experience Year Started at Hanover Michael P. Puorro CEO & Chairman 63 30 + 2012 Brian K. Finneran President 65 40 + 2017 Lance P. Burke Exec. VP & Chief Financial Officer 43 20 + 2021 McClelland Wilcox Senior Exec. VP & Chief Lending & Revenue Offic
Slide 8: Business Strategy
8 • Expanded commercial banking capabilities significantly, due to the Savoy acquisition, with a particular focus on small business clients and Small Business Administration (SBA) lending • Leverage the Savoy acquisition and expand presence in the New York City market • Continue to pursue prudent an
Slide 9: Investment Highlights
9 Investment Highlights Source : S&P Global Market Intelligence; SEC Filings; Company Documents. Note: All figures presented on a fiscal basis; Hanover has a fiscal year ending September 30 th .. Data as of 6/30/2022. • Recent market consolidation has resulted in a lack of sub - $5 billion asset siz
Slide 10: Loan Portfolio Composition and Niche Lending Segments
10 $423 $559 $720 $708 $1,107 $1,395 $17 $140 $21 $423 $559 $720 $725 $1,247 $1,416 $0 $300 $600 $900 $1,200 $1,500 $1,800 Gross Loans (ex. PPP) PPP Loans Dollars in 000s For the years ended September 30, 9 mo. End Residential RE 2017 2018 2019 2020 2021 6/30/2022 Loans originated $157,461 $268,283
Slide 11: Efficient, Profitable and Scalable Business Model
11 $106.9 $201.2 Peer Median Hanover Niche Lending & Branch - Lite Model Drives Outsized Margins Niche Lending & Funding Expertise Drives Pricing Power Efficient, Profitable and Scalable Business Model 3.1% 3.3% 3.3% 3.3% 4.0% 4.2% 3.6% 3.7% 3.6% 3.4% 3.3% 3.3% 2.8% 3.0% 3.2% 3.4% 3.6% 3.8% 4.0% 4.2
Slide 12: II. Hanover's Attractive Market
12 II. Hanover’s Attractive Market
Slide 13: Significant Consolidation of NYC Metro Community Banks Provides Growth Opportunities
13 2016 Rank Institution Deposits ($mm) 1 $2,695 2 $3,344 3 $2,926 4 $3,009 5 $3,412 6 $2,714 7 $2,260 8 $2,609 9 $1,838 10 $1,392 Significant Consolidation of NYC Metro Community Banks Provides Growth Opportunities Source: SEC Filings; Company Documents; S&P Global Market Intelligence. Note: Dollar
Slide 14: New York MSA – A Leading U.S. Banking Market
14 5.0 6.2 6.2 6.3 6.4 7.3 7.8 9.5 13.2 20.0 Boston Atlanta Miami Philadelphia Washington D.C. Houston Dallas Chicago Los Angeles New York City 1.03% 1.27% 3.53% 3.97% 4.05% 4.53% 5.20% 5.38% 5.94% 6.02% Los Angeles Chicago Philadelphia Miami Washington D.C. Boston New York City Atlanta Dallas Houst
Slide 15: Hanover Bancorp's Market demographics
15 Source: S&P Global Market Intelligence; US Census. Note: Small Business data as of 2018 .. • The New York City MSA is the nation’s top MSA as measured by deposits and total population and is one of the largest business markets in America ‒ The New York City MSA outpaces the U.S. in both median ho
Slide 16: III. Financial Overview
Ill. Financial Overview FABSRSSF inc. 1
Slide 17: Robust TBV Per Share & Balance Sheet Growth
17 $423 $559 $720 $708 $1,107 $1,395 $17 $140 $21 $423 $559 $720 $725 $1,247 $1,416 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Gross Loans (ex. PPP) PPP Loans QoQ CAGR TBV per Share 11% Total Assets (ex. PPP) 49% Total Loans (ex. PPP) 55% Total Deposits 45% $13.41 $15.14 $16.92 $18.23 $18.49
Slide 18: Gross Loan Portfolio Composition
18 Gross Loan Portfolio Composition Source: S&P Global Market Intelligence; SEC Filings; Company Documents. Note: Data as of June 30, 2022 .. Dollars in millions. $ in millions $301 $423 $560 $721 $725 $1,247 $1,414 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Residential Real Estate Multi-fam
Slide 19: Growing Core Deposit Franchise
19 Noninterest - bearing Deposits 1% IB Demand, Savings & MMDA 26% Time Deposits 73% $665 $1,165 $1,350 $0 $400 $800 $1,200 $1,600 Sep-20 Sep-21 Jun-22 $82 $192 $220 $0 $50 $100 $150 $200 $250 $300 Sep-20 Sep-21 Jun-22 Growing Core Deposit Franchise • Hired a Chief Municipal Officer and supporting p
Slide 20: Asset Quality Managed Through Disciplined Policies and Procedures
20 Asset Quality Managed Through Disciplined Policies and Procedures Source: SEC Filings; S&P Global Market Intelligence; Company Documents. Note: Annual data represents 9/30 fiscal year end dat a. (1) Jun - 22 data as of or for the 9 months ended 6/30/2022 .. (2) Annualized figure. Credit Philosoph
Slide 21: Securities Portfolio
21 3% 57% 17% 23% U.S GSE residential MBS - AFS Corporate Bonds - AFS U.S GSE residential MBS - HTM U.S GSE commercial MBS - HTM Due 1 - 5 Years 23% Due 5 - 10 Years 69% Due after 10 Years 8% • The Company strives to maintain an efficient level of capital, commensurate with its risk profile, on whic
Slide 22: Asset / Liability Management and Net Interest Margin Trends
22 Source: S&P Global Market Intelligence; SEC Filings; Company Documents. Note: Year end data as of September 30 for each year presented. (1) Jun - 22 data as of or for the 9 months ended 6/30/2022. Asset / Liability Management and Net Interest Margin Trends Yield/Cost Analysis Net Interest Margin
Slide 23: Non-GAAP Reconciliation: Tangible Book Value per Common Share
23 Source: S&P Global Market Intelligence; SEC Filings; Company Documents. Note: All figures presented on a fiscal basis; Hanover has a fiscal year ending September 30 th .. Non - GAAP Reconciliation Tangible Book Value per Common Share As of June 30, As of September 30, Non-GAAP Reconciliation Tabl
Slide 24: Non-GAAP Reconciliation: Adjusted Net Income / Diluted EPS
24 Non - GAAP Reconciliation Adjusted Net Income / Diluted Earnings per Share As of or For the Nine Months Ended June 30, As of or For the Years Ended September 30, Non-GAAP Reconciliation Table 2022 2021 2021 2020 2019 2018 2017 (dollars in thousands, except share data) Net income $17,730 $3,795 $1
Slide 25: Non-GAAP Reconciliation: Adjusted ROAA / Adjusted ROATCE
25 Non - GAAP Reconciliation Adjusted ROAA / Adjusted ROATCE As of or For the Nine Months Ended June 30, As of or For the Years Ended September 30, Non-GAAP Reconciliation Table 2022 2021 2021 2020 2019 2018 2017 (dollars in thousands, except share data) Return on average total assets 1.61% 0.53% 0.
Slide 26: Non-GAAP Reconciliation: Adjusted Operating Efficiency Ratio
26 Non - GAAP Reconciliation Adjusted Operating Efficiency Ratio / Adjusted Non - interest Expense on Avg. Total Assets As of or For the Nine Months Ended June 30, As of or For the Years Ended September 30, Non-GAAP Reconciliation Table 2022 2021 2021 2020 2019 2018 2017 (dollars in thousands, excep
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