Hanover Bancorp Reports $7.5 Million Net Income for Fiscal Year 2025

Hanover Bancorp, Inc. reported a net income of $7.5 million, or $1.00 per diluted share, for the fiscal year ending December 31, 2025, a decrease from the previous year's net income of $12.3 million, or $1.66 per diluted share. The decline in profitability was attributed to a significant increase in the provision for credit losses, which rose to $10.4 million from $4.9 million in 2024, alongside a decrease in non-interest income and an increase in non-interest expenses. The company experienced net charge-offs of $14.2 million during 2025, which heavily influenced the higher provision for credit losses.

Total assets for Hanover Bancorp increased to $2.38 billion as of December 31, 2025, up from $2.31 billion the previous year. The bank's total loans reached $2.00 billion, a slight increase from $1.99 billion in 2024, while total deposits rose to $2.03 billion, reflecting a growth of $74.1 million. The bank's capital position remained strong, with total stockholders' equity at $200.3 million, marking an increase from $196.6 million in the prior year. The bank's capital ratios indicate it is classified as "well-capitalized" under regulatory standards.

Strategically, Hanover Bancorp has focused on expanding its geographic footprint and enhancing its service offerings. In 2025, the company opened a new full-service branch in Port Jefferson, New York, and plans to open another branch in Riverhead, New York, by late 2026. The bank has also initiated a flow origination program for residential loans, which has contributed to a record level of residential loan originations since 2019. Additionally, the bank began offering business banking services to the legal cannabis industry in New York, diversifying its customer base.

Operationally, Hanover Bancorp employed 194 full-time employees as of December 31, 2025, with no employees covered by collective bargaining agreements. The bank's focus on community-oriented banking has allowed it to maintain strong relationships with local municipalities, which accounted for 34.5% of total deposits. The bank's management continues to monitor credit quality closely, particularly in light of the economic conditions affecting its primary market in the New York metro area.

Looking ahead, Hanover Bancorp anticipates growth in its commercial and industrial lending segments, supported by a strong pipeline of potential loans. However, the company remains cautious about the economic environment, particularly regarding inflationary pressures and interest rate fluctuations, which could impact its financial performance. The bank's management is committed to maintaining a robust capital position and effective risk management practices to navigate these challenges.