- Hanover Bancorp (HNVR, Financial) reports Q1 2025 net income of $1.5 million, with an adjusted figure of $4.1 million excluding one-time expenses.
- Net interest margin rose to 2.68%, while non-performing loans decreased by 28.5%.
- The company's core system conversion was completed, and a $0.10 per share dividend was declared.
Hanover Bancorp, Inc. (HNVR) announced its financial results for the first quarter of 2025, revealing a net income of $1.5 million, or $0.20 per diluted share. However, adjusted net income, excluding a $2.6 million expense related to the core banking system conversion, amounted to $4.1 million ($0.55 per diluted share), indicating stable underlying performance compared to the previous year.
The net interest income increased by 13.10% year-over-year to $14.6 million. This growth was driven by an expansion in the net interest margin, which improved to 2.68% from 2.41% the previous year. The reduction in funding costs contributed significantly to this margin expansion.
Non-performing loans decreased by 28.5%, totaling $11.7 million, which represents 0.60% of the total loan portfolio, reflecting improved credit quality metrics. Furthermore, Hanover Bancorp successfully reduced its commercial real estate concentration ratio to 369% of capital, compared to 416% in the same quarter last year.
The liquidity position remains robust, with $679.0 million in undrawn sources covering approximately 322% of uninsured deposit balances. The bank also declared a dividend of $0.10 per share, reflecting confidence in its financial position. This dividend will be payable on May 14, 2025, to shareholders of record as of May 7, 2025.
A major technological milestone for Hanover was the completion of its core processing system conversion to FIS Horizon in February 2025. This strategic step is expected to enhance operational efficiencies and customer service, reinforcing the bank's commitment to digital advancement and modernization in a competitive banking landscape.
