Hanover Bancorp, Inc. · NASDAQ:HNVR
Hanover Bancorp — Investor Presentation (November 2022)
23 slides from Hanover Bancorp's investor presentation, Nov 9, 2022
Slide 1: Investor Presentation November 2022
Confidential Investor Presentation Investor Presentation November 2022
Slide 2: Disclaimer
2 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 3: Overview of Hanover Bancorp, Inc.
3 Overview of Hanover Bancorp, Inc. • The bank was founded in 2009 and is headquartered in Mineola, 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 • Successfully completed IPO and NASDAQ listing in M
Slide 4: Corporate Timeline
4 $362 $501 $650 $849 $852 $1,485 $1,840 Corporate Timeline Note : Total assets for 2016 – 2022 as of September 30th as Hanover has a fiscal year end of September 30 th .. ✓ In 2020 we announced the acquisition of Savoy Bank and subsequently completed that transaction in 2021 ✓ In October 2020, we i
Slide 5: Hanover Executive Management Team
5 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 6: Robust TBV Per Share & Balance Sheet Growth
6 $501 $650 $849 $835 $1,344 $1,830 $17 $140 $10 $501 $650 $849 $852 $1,485 $1,840 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 Total Assets (ex. PPP) PPP Loans $423 $559 $720 $708 $1,107 $1,614 $17 $140 $10 $423 $559 $720 $725 $1,247 $1,624 $0 $300 $600 $900 $1,200 $1,500 $1,800
Slide 7: Strong and Efficient Profitability
7 $4.8 $9.1 $11.3 $7.5 $15.1 $34.9 Sep-17 Sep-18 Sep-19 Sep-20 Sep-21 Sep-22 Strong and Efficient Profitability 3.14% 3.30% 3.30% 3.29% 3.97% 4.18% 3.55% 3.57% 3.57% 3.36% 3.29% 3.38% Sep-17 Sep-18 Sep-19 Sep-20 Sep-21 Sep-22 HNVR Peers 0.51% 0.81% 1.16% 0.58% 0.99% 1.55% 6.1% 9.9% 12.7% 6.6% 11.5%
Slide 8: Well-Positioned to Overcome Current Market Headwinds
8 46% 15% HNVR Peers Well - Positioned to Overcome Current Market Headwinds 56% 7% HNVR Peers 0.9% 15.9% HNVR Peers 1 LTM Loan Growth (ex. PPP) 8.4% 7.3% 0.0% 1.7% 8.4% 9.0% HNVR Peers FYE 22 vs FYE 21 Revenue Growth Total Securities / Assets Strong Organic Loan Generation Demonstrated Revenue Growt
Slide 9: Investment Highlights
9 Investment Highlights Source : S&P Global Market Intelligence; SEC Filings. Note: All figures presented on a fiscal year basis; Hanover has a fiscal year ending September 30 th .. • Recent market consolidation has resulted in a lack of sub - $5 billion asset sized banks in the Long Island and Grea
Slide 10: Niche Lending & Branch-Lite Model Drives Outsized Margins
10 $76.4 $201.3 Peer Median Hanover $109.8 $230.0 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% 3.6% 3.6% 3.4% 3.3% 3.4% 2.8%
Slide 11: Niche Lending Segments
11 $423 $559 $720 $708 $1,107 $1,614 $17 $140 $10 $423 $559 $720 $725 $1,247 $1,624 $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, Residential RE 2017 2018 2019 2020 2021 2022 Loans originated $157,461 $268,283 $334,099 $96,03
Slide 12: Growing Core Deposit Franchise
12 Noninterest - bearing Deposits 1% IB Demand, Savings & MMDA 26% Time Deposits 73% $82 $192 $219 $0 $50 $100 $150 $200 $250 $300 Sep-20 Sep-21 Sep-22 $665 $1,165 $1,528 $0 $400 $800 $1,200 $1,600 Sep-20 Sep-21 Sep-22 Growing Core Deposit Franchise • Hired a Chief Municipal Officer and supporting p
Slide 13: Asset Quality Managed Through Disciplined Policies and Procedures
13 Asset Quality Managed Through Disciplined Policies and Procedures Note : Annual data represents 9/30 fiscal year end data .. Credit Philosophy Credit Underwriting and Administration • Management utilized strong local community ties along with their experience with both federal and New York bank r
Slide 14: Appendix
PINRENE inc. | Appendix HNVR_ NasdaqListeg “| Hbancerp, inc
Slide 15: Business Strategy
15 Business Strategy Creating a Differentiated Community Bank Organic Growth Strategic Acquisitions Focus on Delivering Shareholder Value • Build the premier community bank franchise serving customers and small to mid - size business in the New York City metro area and Long Island • Continue to pene
Slide 16: Significant Consolidation of NYC Metro Community Banks
16 2016 Rank Institution Deposits ($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 ; S&P Global Market Intelligence. Note: Dollars in millions. (1)
Slide 17: New York MSA – A Leading U.S. Banking Market
17 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 Boston New York City Atlanta Dallas Houston 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 Houston Dallas Chicago Los Angeles New York City 452 509
Slide 18: Gross Loan Portfolio Composition & Growth
18 Gross Loan Portfolio Composition & Growth $ in millions $301 $423 $560 $721 $725 $1,247 $1,621 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 Residential Real Estate Multi-family Real Estate Commercial Real Estate Commercial & Industrial Construction & Land Dev. Consumer $ in millions
Slide 19: Securities Portfolio
19 1% 72% 11% 16% 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 15% Due 5 - 10 Years 80% Due after 10 Years 5% • The Company strives to maintain an efficient level of capital, commensurate with its risk profile, on whic
Slide 20: Non-GAAP Reconciliation Table
20 As of September 30, Non-GAAP Reconciliation Table 2022 2021 2020 2019 2018 2017 (dollars in thousands, except share data) Book value per Common Share $23.69 $22.02 $18.69 $17.28 $15.14 $13.41 Less: goodwill and other intangible assets (2.69) (3.53) (0.46) (0.36) — — Tangible book value per common
Slide 21: Non-GAAP Reconciliation Adjusted Net Income / Diluted EPS
21 Non - GAAP Reconciliation Adjusted Net Income / Diluted Earnings per Share As of or For the Years Ended September 30, Non-GAAP Reconciliation Table 2022 2021 2020 2019 2018 2017 (dollars in thousands, except share data) Net income $23,556 $10,851 $4,974 $8,085 $4,601 $2,152 Adjustments: Acquistio
Slide 22: Non-GAAP Reconciliation Adjusted ROAA / Adjusted ROATCE
22 Non - GAAP Reconciliation Adjusted ROAA / Adjusted ROATCE As of or For the Years Ended September 30, Non-GAAP Reconciliation Table 2022 2021 2020 2019 2018 2017 (dollars in thousands, except share data) Return on average total assets 1.55% 0.99% 0.58% 1.16% 0.81% 0.51% Adjustments: Acquistion cos
Slide 23: Non-GAAP Reconciliation Table
23 As of or For the Years Ended September 30, Non-GAAP Reconciliation Table 2022 2021 2020 2019 2018 2017 (dollars in thousands, except share data) Operating efficiency ratio (non- GAAP) 50.25% 66.95% 73.79% 58.43% 56.75% 66.44% Non-interest expense $35,181 $30,005 $21,022 $15,887 $11,880 $9,584 Adj
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