Hanover Bancorp Reports $12.3 Million Net Income for Year Ending December 31, 2024

Hanover Bancorp, Inc. reported a net income of $12.3 million, or $1.66 per diluted share, for the year ending December 31, 2024, a decrease from the $15.2 million, or $2.05 per diluted share, recorded in the previous fiscal year. The decline in profitability was attributed to a reduction in net interest income, which fell to $53.1 million from $54.5 million, alongside an increase in the provision for credit losses and non-interest expenses. The provision for credit losses rose to $4.0 million, primarily due to an allowance for an individually evaluated loan and enhancements to the current expected credit loss (CECL) model.

The company's total assets increased to $2.31 billion as of December 31, 2024, up from $2.27 billion a year earlier. Total loans also saw a modest rise, reaching $1.99 billion compared to $1.96 billion in 2023, with growth concentrated in residential, Small Business Administration (SBA), and commercial and industrial (C&I) loans. Total deposits increased to $1.95 billion, reflecting a $49.7 million rise from the previous year, with municipal deposits accounting for approximately 26.1% of total deposits.

Strategically, Hanover has been expanding its operations, having opened a new business banking center in Hauppauge, New York, in May 2023, and received regulatory approval to open a branch in Port Jefferson, expected to commence operations in early 2025. The bank's focus on niche lending products, particularly in the residential mortgage segment, has been beneficial, especially among Asian American borrowers in New York City. The bank also began offering business banking services to the legal cannabis industry in late 2023, which may further diversify its customer base.

As of December 31, 2024, Hanover employed 185 full-time employees, maintaining a stable workforce. The bank's capital levels remain strong, classified as "well-capitalized" under regulatory standards, with total stockholders' equity increasing to $196.6 million from $184.8 million a year prior. Looking ahead, the bank anticipates continued growth in its lending activities, particularly in the SBA and C&I sectors, while managing liquidity and capital effectively to support its expansion plans.