Slide 1: Hanover Bancorp, Inc. Investor Presentation May 2022
Confidential Investor Presentation Hanover Bancorp, Inc. Investor Presentation May 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: Offering Summary
3 Offering Summary Issuer • Hanover Bancorp, Inc. Exchange / Ticker • Nasdaq / HNVR Base Shares Offered • 1,363,636 Shares (100% Primary) Base Offering Size • $30 million (at the Midpoint) Filing Range • $21.00 - $23.00 Per Share Overallotment Option • 15% (100% Primary) Use of Proceeds • Enhance re
Slide 4: Introduction – Hanover Executive Management Team
4 Introduction – Hanover Executive Management Team Source: SEC Filings; Company Documents . Note : Throughout the presentation, unless otherwise specified, references to “Hanover” may be to either the holding company or the bank. Name Position with Hanover Age Years of Banking Experience Year Starte
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: Robust TBV Per Share & Balance Sheet Growth
6 $423 $559 $720 $708 $1,107 $1,204 $17 $140 $73 $423 $559 $720 $725 $1,247 $1,277 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 Gross Loans (ex. PPP) PPP Loans $13.41 $15.14 $16.92 $18.23 $18.49 $19.73 $5.00 $10.00 $15.00 $20.00 $373 $468 $650 $665 $1,165 $1,177 $0 $200 $400 $600 $800 $1,000 $1,200 $
Slide 7: Business Strategy
7 • 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 purse prudent and
Slide 8: Investment Highlights
8 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 12/31/2021. • Recent market consolidation has resulted in a lack of sub - $5 billion asset siz
Slide 9: Significant Consolidation of NYC Metro Community Banks Provides Growth Opportunities
9 2016 Rank Institution Deposits ($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: Dollars
Slide 10: New York MSA – A Leading U.S. Banking Market
10 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 11: Loan Portfolio Composition and Gross Loan Growth
11 $423 $559 $720 $708 $1,107 $1,204 $17 $140 $73 $423 $559 $720 $725 $1,247 $1,277 $0 $300 $600 $900 $1,200 $1,500 $1,800 Gross Loans (ex. PPP) PPP Loans C&I (ex. PPP) 3% Construction & Land 1% Resi Mortgages 36% OO CRE 13% NOO CRE 17% Multifamily 30% Niche Lending Segments Source : S&P Global Mark
Slide 12: Niche Lending & Branch-Lite Model Drives Outsized Margins
12 $105.3 $208.3 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% 3.6% 3.7% 3.6% 3.4% 3.3% 2.8% 3.0% 3.2% 3.4% 3.6% 3.8% 4.0% Hanover Peer
Slide 13: Asset Quality Managed Through Disciplined Policies and Procedures
13 Asset Quality Managed Through Disciplined Policies and Procedures Source : SEC Filings; S&P Global Market Intelligence; Company Documents. Note: All figures presented on a fiscal basis; Hanover has a fiscal year ending September 30 th . (1) Annualized figure ; 2022Q1 data for the quarter ended 12
Slide 14: Growing Core Deposit Franchise
14 $82 $192 $191 $0 $50 $100 $150 $200 $250 $300 Sep-20 Sep-21 Dec-21 $665 $1,165 $1,177 $0 $400 $800 $1,200 $1,600 Sep-20 Sep-21 Dec-21 Growing Core Deposit Franchise • Hired a Chief Municipal Officer and supporting personnel to initiate our municipal banking business, which has grown our muni cip
Slide 15: Asset Liability Management and Net Interest Margin Trends
15 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 . Asset Liability Management and Net Interest Margin Trends Yield/Cost Analysis Net Interest Margin 5.07% 4.87% 4.63% 4.77% 2.07%
Slide 16: Non-GAAP Reconciliation: Tangible Book Value per Common Share
16 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 December 31, As of September 30, Non-GAAP Reconciliation T
Slide 17: Non-GAAP Reconciliation: Adjusted Net Income / Diluted EPS
17 Non - GAAP Reconciliation Adjusted Net Income / Diluted Earnings per Share As of or For the Three Months Ended December 31, As of or For the Years Ended September 30, Non-GAAP Reconciliation Table 2021 2020 2021 2020 2019 2018 2017 (dollars in thousands, except share data) Net income $6,537 $1,51
Slide 18: Non-GAAP Reconciliation: Adjusted ROAA / Adjusted ROATCE
18 Non - GAAP Reconciliation Adjusted ROAA / Adjusted ROATCE As of or For the Three Months Ended December 31, As of or For the Years Ended September 30, Non-GAAP Reconciliation Table 2021 2020 2021 2020 2019 2018 2017 (dollars in thousands, except share data) Return on average total assets 1.80% 0.7
Slide 19: Non-GAAP Reconciliation: Adjusted Operating Efficiency Ratio
19 Non - GAAP Reconciliation Adjusted Operating Efficiency Ratio / Adjusted Non - interest Expense on Avg. Total Assets As of or For the Three Months Ended December 31, As of or For the Years Ended September 30, Non-GAAP Reconciliation Table 2021 2020 2021 2020 2019 2018 2017 (dollars in thousands,
Slide 20: Investment Highlights
20 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 12/31/2021. • Recent market consolidation has resulted in a lack of sub - $5 billion asset si