HNVR earnings analysis
What we found in HNVR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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%.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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%.
- 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.
- 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%.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.55
- Segment
- Community Banking: $19.567 million of revenue for Q2 2026; the Company reports one operating segment.
What they said about what is next.
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.
The filing reads better than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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