10-Q · May 8, 2026
In Q1 2026, Hanover Bancorp reported a net income of $1.9 million or $0.25 per diluted share, an increase from $1.5 million or $0.20 per share year-over-year. The total revenue for the quarter was $19.1 million, up from…
Earnings analysis · 10-Q
HNVR earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
Hanover delivered a stronger Q2 2026, with revenue up 6.6% year over year to $19.567 million, net interest margin up 34 basis points to 3.10%, and diluted EPS increasing to $0.55 from $0.33. Operating cash flow improved…
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Hanover delivered a stronger Q2 2026, with revenue up 6.6% year over year to $19.567 million, net interest margin up 34 basis points to 3.10%, and diluted EPS increasing to $0.55 from $0.33. Operating cash flow improved substantially and funding costs declined following the FHLB restructuring, although non-interest income fell because of weaker SBA loan sales and expenses remained elevated. The main offset is worsening credit quality, with non-accrual loans increasing to $28.340 million and significant commercial real estate concentration and interest-rate sensitivity.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.55
- Segment
- Community Banking: $19.567 million of revenue for Q2 2026; the Company reports one operating segment.
What stood out
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Revenue and net interest margin improved
Q2 2026 revenue was $19.567 million, up $1.211 million, or 6.6%, from $18.356 million in Q2 2025. Net interest income increased $1.976 million to $16.771 million, with net interest margin expanding to 3.10% from 2.76%.
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Earnings and EPS increased materially
Net income increased to $4.064 million from $2.443 million, while diluted EPS rose to $0.55 from $0.33. Management attributed the improvement to a $2.0 million increase in net interest income and a $1.9 million reduction in provision for credit losses.
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Operating cash flow strengthened
Operating cash flow for the first six months was $15.930 million, versus $2.052 million in the prior-year period. Capital expenditures were $626 thousand, equivalent to approximately 3.9% of operating cash flow; free cash flow was not reported.
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Funding costs and leverage improved
The February 2026 FHLB restructuring reduced the weighted-average borrowing cost from 4.27% to 3.47%, which management estimates generates approximately $40 thousand of monthly interest expense savings. Total borrowings and subordinated debt declined to $94.0 million from $125.5 million at December 31, 2025.
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Capital position remained strong
The Bank remained well capitalized, with a 9.76% Tier 1 leverage ratio, 13.59% common equity Tier 1 risk-based capital ratio and 14.84% total risk-based capital ratio at June 30, 2026. Total stockholders’ equity increased to $202.747 million from $200.266 million at December 31, 2025.
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Residential sales offset weaker SBA volume
Residential flow-origination loan sales increased to $27.2 million from $23.7 million, but government-guaranteed SBA loan sales declined to $8.3 million from $22.3 million. Associated SBA gain-on-sale income declined to $0.7 million from $1.8 million.
What to watch
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Credit quality weakened
Non-accrual loans rose to $28.340 million, or 1.42% of total loans, from $21.604 million, or 1.08%, at December 31, 2025. Allowance coverage of non-accrual loans declined to 68% from 87%.
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CRE concentration and repricing risk
Commercial real estate concentration was 346% of capital at June 30, 2026. Management also reported that 16% of combined multifamily and CRE portfolios will reset or mature in 2026 and another 54% in 2027, increasing refinancing and repricing exposure.
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Material interest-rate sensitivity
The interest-rate sensitivity analysis estimates that a 200-basis-point increase would reduce 12-month net interest income by $4.488 million, or 6.0%, and reduce economic value of equity by $22.136 million, or 8.8%.
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Deposit mix and liquidity exposure
Municipal deposits declined to $577.4 million, or 28.7% of total deposits, from $700.7 million, or 34.5%, at December 31, 2025. Uninsured deposits were $258.2 million, or 12.8% of total deposits, at June 30, 2026.
Management's outlook
No quantitative revenue or EPS guidance was provided in the 10-Q. Management states that the Riverhead branch is scheduled to open in Q3 2026 and expects to replace a substantial portion of the $496.5 million of time deposits maturing within the next 12 months.
Earlier filings 4
10-K · March 13, 2026
Hanover Bancorp reports a community-bank model focused on niche one- to four-family residential mortgages, commercial real estate, C&I and municipal banking in the NY–NJ metro. As of December 31, 2025 the company…
10-Q · November 7, 2025
Hanover Bancorp reported Q3 2025 net income of $3,491,000 and diluted EPS of $0.47, essentially flat versus Q3 2024 net income of $3,539,000 and EPS $0.48. Net interest income improved to $15,223,000 (from $13,102,000),…
10-Q · August 8, 2025
Hanover Bancorp reported Q2 2025 net income of $2.443M (diluted EPS $0.33) on total revenue of $18.356M, up from $16.869M in Q2 2024. Operating profitability expanded materially (income before tax $3.383M vs $1.159M a…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.