Hanover Bancorp Q4 net income drops on higher credit loss provisions

Hanover Bancorp

29/01/2026 21:08

Overview

Community commercial bank's Q4 net income fell due to higher credit loss provisions

Net interest income rose 14.64% yr/yr, driven by improved net interest margin

Company removed $9.6 mln of non-performing loans, improving asset quality

Outlook

Hanover Bancorp plans to open a new branch in Riverhead, NY later this year

Company expects growth in C&I lending and deposit activity in 2026

Hanover Bancorp focuses on managing CRE concentration ratio and NPL resolution

Result Drivers

CREDIT LOSS PROVISION - Higher credit loss provisions impacted net income, with a $6.1 mln provision in Q4 2025 compared to $400,000 in Q4 2024

NET INTEREST INCOME - Net interest income increased 14.64% yr/yr due to improved net interest margin

ASSET QUALITY ENHANCEMENT - Co removed $9.6 mln of non-performing loans, improving asset quality

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Net Income
$33,000
Q4 Net Interest Income
$15.83 mln
Q4 Loan Loss Provision
$6.10 mln
Q4 Pretax Profit
$136,000


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "buy."

Wall Street's median 12-month price target for Hanover Bancorp Inc is $23.50, about 1% below its January 28 closing price of $23.73

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNXc5klXT

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)