Hanover Bancorp, Inc. · NASDAQ:HNVR
Hanover Bancorp — Investor Presentation (June 2023)
19 slides from Hanover Bancorp's investor presentation, Jun 21, 2023
Slide 1: Confidential Investor Presentation, June 2023
Confidential Investor Presentation Investor Presentation June 2023
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: Company Background & Financial Snapshot
3 $ in m illions Balance Sheet at 3/31/2023 Total assets $2,072 Gross loans 1,787 Deposits 1,707 Tangible common equity 161 TCE / TA 7.8% NPAs / Assets 0.53% Quarter Ended: 6 Mo. Ended $ in m illions 3/31/2023 3/31/2023 Net Income $3.2 $8.5 Net interest m argin 3.04% 3.26% Efficiency ratio 67% 58% R
Slide 4: Corporate Timeline and Growth in Total Assets
4 $362 $501 $650 $849 $852 $1,485 $1,840 $2,072 Corporate Timeline ✓ In October 2020, we issued $25.0 million in subordinated notes to support the Savoy acquisition. The offering was rated investment grade ✓ In late 2020, we established a municipal banking business led by Michael Locorriere, who has
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 64 30 + 2012 McClelland Wilcox President 51 20 + 2021 Lance P. Burke Exec. VP & Chief Financial Officer 44 20 + 2021 Kevin Corbett Exec. VP & Chief Credit Officer 63 35 + 2020 Alice
Slide 6: Business Strategy: Creating a Differentiated Community Bank
6 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 penetra
Slide 7: Robust TBV Per Share & Balance Sheet Growth
7 $559 $720 $708 $1,107 $1,614 $1,782 $17 $140 $10 $5 $559 $720 $725 $1,247 $1,624 $1,787 $0 $400 $800 $1,200 $1,600 $2,000 $2,400 $650 $849 $835 $1,345 $1,830 $2,067 $17 $140 $10 $5 $650 $849 $852 $1,485 $1,840 $2,072 $0 $400 $800 $1,200 $1,600 $2,000 $2,400 $468 $650 $665 $1,165 $1,528 $1,707 $0 $
Slide 8: Strong and Efficient Profitability
8 $9.1 $11.3 $7.5 $15.1 $34.9 $27.1 Sep-18 Sep-19 Sep-20 Sep-21 Sep-22 2023 YTD Strong and Efficient Profitability 3.30% 3.30% 3.29% 3.97% 4.18% 3.26% 3.77% 3.68% 3.39% 3.34% 3.44% 3.43% Sep-18 Sep-19 Sep-20 Sep-21 Sep-22 2023 YTD HNVR Peers Success Maintaining Strong Profitability Metrics Across a
Slide 9: High Level of Insured Deposits
9 High Level of Insured Deposits Insured deposits, including municipal deposits that are fully collateralized, accounted for approximately 84% of total deposits at March 31, 2023 $153 $270 $374 $432 $435 $484 $480 $443 $562 $0 $100 $200 $300 $400 $500 $600 Commitment To Growing Municipal Deposit Bal
Slide 10: Investment Highlights
10 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 30th. Data as of 3/31/2023. • Recent market consolidation has resulted in a lack of sub-$5 billion asset sized banks in the Lon
Slide 11: Niche Lending & Branch-Lite Model Drives Outsized Margins
11 $221.6 $76.8 HNVR Peers $259.0 $108.9 HNVR Peers Niche Lending & Branch-Lite Model Drives Outsized Margins Niche Lending & Funding Expertise Drives Pricing Power Efficient, Profitable and Scalable Business Model 3.3% 3.3% 3.3% 4.0% 4.2% 3.3% 3.8% 3.7% 3.4% 3.3% 3.4% 3.4% HNVR Peers 5.1% 5.3% 5.4%
Slide 12: Niche Lending Segments and Loan Growth
12 $559 $720 $708 $1,107 $1,614 $1,782 $17 $140 $10 $5 $559 $720 $725 $1,247 $1,624 $1,787 $0 $400 $800 $1,200 $1,600 $2,000 $2,400 Gross Loans (Ex. PPP) PPP Loans • Lending Activity: Loans totaled $1.79 billion, a net increase of $40.6M (+9.3% annualized) – Company’s current loan pipeline ~$191M, ~
Slide 13: Growing Core Deposit Franchise
13 $82 $192 $219 $179 $0 $50 $100 $150 $200 $250 $665 $1,165 $1,528 $1,707 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 Noninterest-bearing Deposits 1% IB Demand, Savings & MMDA 26% Time Deposits 73% Growing Core Deposit Franchise • Hired a Chief Municipal Officer and supporting personn
Slide 14: Asset Quality Managed Through Disciplined Policies and Procedures
14 Asset Quality Managed Through Disciplined Policies and Procedures Note: Annual data represents 9/30 fiscal year end data. 2023 YTD = Annualized data for the 6 month period ended 3/31/2023. Credit Philosophy Credit Underwriting and Administration • Management utilized strong local community ties a
Slide 15: Appendix
PINRENE inc. | Appendix HNVR_ NasdaqListeg “| Hbancerp, inc
Slide 16: Significant Consolidation of NYC Metro Community Banks
16 2016 Rank Institution Deposits ($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: Non-GAAP Reconciliation: Tangible Book Value per Common Share
Note: All figures presented on a fiscal year basis; Hanover has a fiscal year ending September 30th .. 18 Non-GAAP Reconciliation Tangible Book Value per Common Share As of As of September 30, Non-GAAP Reconciliation Table 3/31/2023 2022 2021 2020 2019 2018 Book value per Common Share $24.62 $23.69
Slide 19: Non-GAAP Reconciliation: ROATCE / PPNR to Average Assets
19 Non-GAAP Reconciliation ROATCE / Pre-Provision Net Revenue/Average Assets As of or For the As of or For the Non-GAAP Reconciliation Table Three Months Ended Six Months Ended As of or For the Years Ended September 30, ROATCE / Pre-Provision Net Revenue/Average Assets March 31, 2023 March 31, 2023