Hanover Bancorp, Inc. · NASDAQ:HNVR
Hanover Bancorp — Investor Presentation (June 2024)
21 slides from Hanover Bancorp's investor presentation, June 2024
Slide 1: Welcome To Better Banking
Confidential Investor Presentation Investor Presentation June 2024 Welcome To Better Banking
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by us solely for informational purposes based on our own information, as well as information from public and industry sources. This presentation does not constitute an offer to sell, nor a solicitation of an offer to buy, any securities by any person in
Slide 3: Overview of Hanover Bancorp, Inc.
Overview of Hanover Bancorp, Inc. Company Background & Financial Snapshot Key Metrics & Banking Footprint 3/31/24 3/31/24 3/31/24 3/31/24 • 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 Puo
Slide 4: Corporate Timeline
Corporate Timeline Growth in Total Assets ($mm) $2,308 $2,150 $1,840 $1,485 $849 $852 $650 $501 2017 2018 2019 2020 2021 2022 2023 2024 ✓ In March and June 2017, we ✓ In February 2019 the Bank further ✓ Savoy acquisition announced in ✓ We changed our fiscal year end established offices in Forest Hil
Slide 5: Hanover Executive Management Team
Hanover Executive Management Team Years of Banking Year Started at Name Position with Hanover Age Experience Hanover Michael P. Puorro CEO & Chairman 65 35 + 2012 McClelland Wilcox President 52 20 + 2021 Lance P. Burke Exec. VP & Chief Financial Officer 45 25 + 2021 Kevin Corbett Exec. VP & Chief Cr
Slide 6: Business Strategy
Business Strategy Creating a Differentiated Community Bank • Build the premier community bank franchise serving customers and small to mid-size business in the New York City metro area and Long Island Organic Growth • Continue to penetrate the potential customer bases in multiple niche areas • Conti
Slide 7: Robust TBV Per Share & Balance Sheet Growth
Robust TBV Per Share & Balance Sheet Growth Tangible Book Value per Share Total Assets ($mm) $28.00 $2,400 $2,308 $2,150 $24.00 $22.73 $23.01 $2,000 $1,840 $21.00 $20.00 $18.23 $18.49 $1,600 $1,485 $16.92 $16.00 CECL adoption $1,200 Savoy acquisition $849 $852 $12.00 completed $800 $8.00 $400 $4.00
Slide 8: Strong and Efficient Profitability
Legend September = Fiscal Year Ended Strong and Efficient Profitability 2024 YTD = 3/31/24 Annualized Success Maintaining Strong Profitability Metrics Across a Branch-lite Operating Model Net Income and Non-Interest Income ($M) Recent Yield on Loans Expansion Non-Interest Income Net Income Yield on
Slide 9: Balance Sheet Liquidity
Balance Sheet Liquidity As of March 31, 2024, we are well-capitalized, highly liquid High Level of Insured Deposits and looking forward to realizing strong returns on the Insured and collateralized deposits, which include municipal deposits, accounted for approximately 87% of total deposits at forwa
Slide 10: Investment Highlights
Investment Highlights • Recent market consolidation has resulted in a lack of sub-$5 billion asset sized banks in the Long Island and High Degree of Greater New York City Metro Area. Franchise Scarcity Value • Since June 2020, there have been 16 bank transactions in the tri-state area, 11 of which i
Slide 11: Niche Lending & Branch-Lite Model Drives Profitability
Niche Lending & Branch-Lite Model Drives Profitability Niche Lending & Funding Expertise Drives Pricing Power Efficient, Profitable and Scalable Business Model ✓ A number of our business segments are focused on providing Total Assets per Office specialized lending and deposit products to specific cu
Slide 12: Niche Lending Segments: Residential and C&I
Niche Lending Segments: Residential and C&I • Lending Activity: Loans totaled $2.01 billion, a net increase of $48.3M (+9.9% annualized) 1 Residential Real Estate ✓ Initiated our residential lending platform in 2013 with a focus on the boroughs of New York City. – Company’s 3/31/24 loan pipeline ~$2
Slide 13: Niche Lending Segments: SBA Lending
Legend Niche Lending Segments: SBA Lending 3/31/24 Annualized 12 Months Ended 12 Months Ended 3 Months Ended 3 SBA Lending Dec. 2022 Dec. 2023 March 2024 • Continue to Realize Strategic $207.2 Opportunities: SBA Originations $140.8 – SBA & USDA Banking Team $72.1 ($M) Expansion. $51.5 • Efficient an
Slide 14: Niche Lending Segments: Commercial Real Estate
Niche Lending Segments: Commercial Real Estate 4 Commercial Real Estate (including Multi-family) Fixed Rate Reset / Maturity Schedule ($000s) ✓ The Bank’s exposure to Land/Construction loans is minor at $10 CRE Investor Portfolio million, all at floating interest rates, and CRE-owner occupied Calend
Slide 15: Growing Core Deposit Franchise
Growing Core Deposit Franchise Diversifying our Deposit Composition As of September 30, 2012 As of March 31, 2024 Noninterest-bearing Noninterest-bearing Deposits Deposits 1% 11% IB Demand, Savings & MMDA 26% Time Deposits 24% $54 $1.9 million billion Time Deposits IB Demand, 73% Savings & MMDA 65%
Slide 16: Asset Quality Managed Through Disciplined Policies and Procedures
Asset Quality Managed Through Disciplined Policies and Procedures • Management utilized strong local community ties along with their experience with both federal and New York bank regulatory agencies to create a bank that emphasizes strong credit quality. • Total loans having credit risk ratings of
Slide 17: Appendix
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Slide 18: Significant Consolidation of NYC Metro Community Banks Provides Growth Opportunities
Significant Consolidation of NYC Metro Community Banks Provides Growth Opportunities % of Banks Acquired in NYC(1) Top 20 NYC MSA Banks in 2016(2) Acquired Institutions ranked by asset size Approximately 64% of banks(1) in NYC MSA were consolidated in the last 5 years 2016 2016 Deposits Deposits Ran
Slide 19: New York MSA – A Leading U.S. Banking Market
New York MSA – A Leading U.S. Banking Market Most Populated MSA 4th Largest Deposits per Branch Population (mm) Deposits per Branch ($mm) New York City 19.6 Sioux Falls, SD $5,587 Los Angeles 12.9 Salt Lake City, UT $4,407 Chicago 9.4 Seaford, DE $1,726 Dallas 8.1 New York City $823 Houston 7.5 Char
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Tangible Book Value per Share As of As of September 30, Non-GAAP Reconciliation Table 3/31/2024 2023 2022 2021 2020 2019 (1) Book value per Share $25.64 $25.40 $23.69 $22.02 $18.69 $17.28 Less: Goodwill and Other Intangible Assets ($2.63) ($2.67) ($2.69) ($3.53) ($0.46) ($0.3
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation ROATCE / Pre-Provision Net Revenue/Average Assets As of or For the Non-GAAP Reconciliation Table Three Months Ended As of or For the Years Ended September 30, ROATCE / Pre-Provision Net Revenue/Average Assets March 31, 2024 2023 2022 2021 2020 2019 (dollars in thousands) Net