For the quarter ending March 31, 2025, net interest income rose to $14.6 million, marking a 5.95% increase from the previous quarter, and a notable 13.10% increase from the same period last year. This growth stems from an increase in net interest margin, which advanced from 2.53% to 2.68% during the same timeframe.
The company's strong financial performance translated into an adjusted return on tangible equity (ROTE) of 9.27% and a return on assets (ROA) of 0.73%. These figures highlight a shift away from the challenging economic conditions faced in previous years.
Key to this success was not only improved credit metrics but also the completion of a core banking system conversion. This milestone is expected to yield operational efficiencies and improved customer experiences, reinforcing the firm's commitment to digital banking advancements. In alignment with this strategic direction, the company unveiled a new logo symbolizing its innovative and forward-thinking digital strategy.
Looking ahead, the company aims to cultivate its core business areas, including niche residential, SBA, and C&I lending. Additionally, the potential inclusion in the Russell 2000 index could enhance the stock's liquidity and attract more institutional investors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for Hanover Bancorp Inc (HNVR, Financial) is $25.75 with a high estimate of $27.00 and a low estimate of $24.50. The average target implies an upside of 20.89% from the current price of $21.30. More detailed estimate data can be found on the Hanover Bancorp Inc (HNVR) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, Hanover Bancorp Inc's (HNVR, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Hanover Bancorp Inc (HNVR, Financial) in one year is $16.74, suggesting a downside of 21.41% from the current price of $21.3. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Hanover Bancorp Inc (HNVR) Summary page.
