Hanover Bancorp Inc (HNVR) Reports Earnings for Q3 and Fiscal Year 2023
Hanover Bancorp Inc (NASDAQ:HNVR) reported net income of $3.5 million for Q3 2023, compared to $5.8 million in the same period last year.
The company declared a $0.10 per share cash dividend on both common and Series A preferred shares.
Net interest income decreased by 28.2% to $11.8 million for Q3 2023, compared to the same period in 2022.
For the fiscal year ended September 30, 2023, the company reported net income of $15.2 million.
On October 26, 2023, Hanover Bancorp Inc (NASDAQ:HNVR) released its earnings report for the third calendar quarter and fiscal year ended September 30, 2023. The company reported a net income of $3.5 million or $0.48 per diluted share for the quarter, compared to $5.8 million or $0.79 per diluted share in the same period a year ago. The company also declared a $0.10 per share cash dividend on both common and Series A preferred shares, payable on November 15, 2023, to stockholders of record on November 8, 2023.
Financial Performance
The decline in net income for Q3 2023 compared to the same period in 2022 was attributed to a decrease in net interest income and an increase in non-interest expense, largely due to growth-related increases in compensation and benefits, occupancy and equipment, and federal deposit insurance premiums. These were partially offset by a decrease in the provision for loan losses and an increase in non-interest income.
For the fiscal year ended September 30, 2023, Hanover Bancorp Inc (NASDAQ:HNVR) reported a net income of $15.2 million or $2.05 per diluted share. This is a decrease from $23.6 million or $3.68 per diluted share a year ago. The decline in net income for the fiscal year was primarily due to a decrease in net interest income, a decrease in gain on sale of loans, and an increase in non-interest expense.
Balance Sheet Highlights
As of September 30, 2023, the company's total assets were $2.15 billion, compared to $1.84 billion at the same time in 2022. Total deposits increased to $1.74 billion from $1.53 billion over the same period. The company's stockholders' equity increased to $185.9 million at the end of September 2023, up from $172.6 million a year earlier.
Loan Portfolio Growth and Allowance for Loan Losses
The company exhibited net loan growth of $51.1 million on a linked quarter basis, an 11.2% increase on an annualized basis. For the twelve months ended September 30, 2023, the bank's loan portfolio grew to $1.87 billion, an increase of 15.5%.
CEO Commentary
Michael P. Puorro, Chairman and Chief Executive Officer, commented on the company's quarterly results:
We are pleased with our consistent results in the third quarter of 2023 and excited to see increasing returns from our investments in SBA and USDA and C&I Banking. Coupled with our sustained focus on cost management, these new initiatives will enhance earnings and capital growth into the future."
Explore the complete 8-K earnings release (here) from Hanover Bancorp Inc for further details.
This article first appeared on GuruFocus.
