Hanover Bancorp, Inc. · NASDAQ:HNVR
Hanover Bancorp — Q4 2024 Earnings Presentation
23 slides from Hanover Bancorp's earnings presentation, February 2025
Slide 1: Welcome To Better Banking
Confidential Investor Presentation Investor Presentation February 2025 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 12/31/24 12/31/24 12/31/24 • 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 Puorro a
Slide 4: Corporate Timeline
Corporate Timeline Growth in Total Assets ($mm) $2,270 $2,312 $1,984 $1,458 $862 $877 $652 $541 2017 2018 2019 2020 2021 2022 2023 2024 In March and June 2017, we In February 2019 the Bank further Savoy acquisition announced in We changed our fiscal year end established offices in Forest Hil
Slide 5: Hanover Executive Management Team
Hanover Executive Management Team 5 Note: Throughout the presentation, unless otherwise specified, references to “Hanover” may be to either the holding company or the bank.
Slide 6: Business Strategy
Business Strategy Creating a Differentiated Community Bank • Build the premier community bank franchise serving customers and small to mid-size business in the New York City metro area and Long Island • Continue to penetrate the potential customer bases in multiple niche areas Organic Growth • Conti
Slide 7: Robust TBV Per Share & Balance Sheet Growth
Robust TBV Per Share & Balance Sheet Growth Tangible Book Value per Share(1) Total Assets ($mm) $2,270 $2,312 $28.00 $2,400 $23.86 $1,984 $24.00 $22.51 $2,000 $21.66 $19.73 $20.00 $18.66 $1,600 $1,458 $16.00 $1,200 CECL adoption $877 $12.00 $800 Savoy acquisition $8.00 completed $400 $4.00 $0 Total
Slide 8: Superior Price Performance Since IPO
Superior Price Performance Since IPO HNVR Volume HNVR Price Nasdaq US Small Cap Banks Index KRX - Nasdaq Regional Bank Index 40.0% 30.0% 21.6% 20.0% 14.9% 13.7% 10.0% 0.0% (10.0%) (20.0%) (30.0%) (40.0%) 8 Source: S&P Global Market Intelligence; FactSet. Market Data as of February 19th, 2025. Note:
Slide 9: Strong and Efficient Profitability
Strong and Efficient Profitability Success Maintaining Strong Profitability Metrics Across a Branch-lite Operating Model Net Income and Non-Interest Income ($M) Recent Margin Expansion Noninterest Income Net Income Yield on Loans Cost of Deposits NIM Full Year 2024 Per Branch ($M) Non-Int. $22.4 6.2
Slide 10: Balance Sheet Liquidity
Balance Sheet Liquidity As of December 31, 2024, the Company maintained a High Level of Insured and Collateralized Deposits strong liquidity position with $713.1 million in undrawn Insured and collateralized deposits, which include municipal deposits, accounted for approximately 87% of total deposit
Slide 11: 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 17 bank transactions in the tri-state area, 11 of which i
Slide 12: 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 13: Niche Lending Segments: Niche-Residential and C&I
Niche Lending Segments: Niche-Residential and C&I • For the year ended December 31, 2024, Hanover’s HFI loan portfolio grew to $1.99 billion, an increase of $28.3 million or 1 Residential Real Estate 1.45% Initiated our residential lending platform in 2013 with a focus on the boroughs of New York
Slide 14: Niche Lending Segments: SBA Lending
Niche Lending Segments: SBA Lending 12 Months Ended 12 Months Ended 12 Months Ended 3 SBA Lending Dec. 2022 Dec. 2023 Dec. 2024 • Continue to Realize Strategic $161.0 Opportunities: $140.8 SBA Originations $72.1 – SBA & USDA Banking Team ($M) Expansion. • Efficient and Consistent Results: $1.6 – Inv
Slide 15: 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 CRE Investor Portfolio minor at $13.5 million, all at floating interest rates, and CRE-owner occupied loan
Slide 16: Niche Lending Segments: Multi-Family Deep Dive
Niche Lending Segments: Multi-Family Deep Dive Multi-Family Loan Portfolio - Loans by Rent Type Outstanding % of Total Current Avg. Rent Type # of Notes Loan Balance Multi-Family Avg. Loan Size LTV DSCR # of Units Location Manhattan 7 17,840 3% 2,549 51.9% 1.62x 15 Other NYC 93 244,408 44% 2,628 61.
Slide 17: Growing Core Deposit Franchise
Growing Core Deposit Franchise Diversifying our Deposit Composition As of September 30, 2012 As of December 31, 2024 Noninterest-bearing Deposits Noninterest-bearing Deposits 11% 1% IB Demand, Savings & MMDA 26% Time Deposits $54 25% $2.0 million billion Time Deposits IB Demand, Savings & 73% MMDA 6
Slide 18: Asset Quality Managed Through Disciplined Policies and Procedures
Asset Quality Managed Through Disciplined Policies and Procedures • Management utilized strong local community ties along with their experience with both federal and New York bank regulatory agencies to create a bank that emphasizes strong credit quality. Credit Philosophy • Total loans having credi
Slide 19: Appendix
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Slide 20: Significant Consolidation of NYC Metro Community Banks Provides Growth Opportunities
Significant Consolidation of NYC Metro Community Banks Provides Growth Opportunities % of Banks Acquired in NYC(1) Top 20 NYC MSA Banks in 2016(2) Acquired Institutions ranked by asset size Approximately 35% of banks(1) in NYC MSA were consolidated in the last 5 years 2019 4.3% 2020 14.5% 2021 7.5%
Slide 21: New York MSA – A Leading U.S. Banking Market
New York MSA – A Leading U.S. Banking Market Most Populated MSA 5th Largest Deposits per Branch Population (mm) Deposits per Branch ($mm) New York City 19.4 Sioux Falls, SD $6,192 Los Angeles 12.8 Salt Lake City, UT $4,666 Chicago 9.2 Seaford, DE $1,874 Dallas 8.4 Charlotte, NC $894 Houston 7.7 New
Slide 22: Non-GAAP Reconciliation Tangible Book Value per Share
Non-GAAP Reconciliation Tangible Book Value per Share As of Sept. 30, As of December 31, Non-GAAP Reconciliation Table 2024 2024 2023 2022 2021 2020 (1) Book value per Share $25.89 $26.48 $25.16 $24.34 $23.26 $19.12 Less: Goodwill and Other Intangible Assets ($2.61) ($2.62) ($2.65) ($2.68) ($3.53) (
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation ROATCE / Pre-Provision Net Revenue/Average Assets Non-GAAP Reconciliation Table As of or For the Three Months Ended As of or For the Years Ended December 31, ROATCE / Pre-Provision Net Revenue/Average Assets December 31, 2024 September 30, 2024 December 31, 2023 2024 2023 202