Hanover Bancorp Reports $2.4 Million Net Income for Q2 2025, Driven by Revenue Growth

Hanover Bancorp, Inc. reported a net income of $2.4 million, or $0.33 per diluted share, for the three months ended June 30, 2025, a significant increase from the $844,000, or $0.11 per diluted share, recorded in the same period of 2024. The company's total revenue for the quarter was $18.4 million, up from $16.9 million year-over-year. This growth was primarily driven by a $1.5 million increase in net interest income, which rose to $14.8 million, and a $1.7 million reduction in the provision for credit losses, which fell to $2.4 million. The return on average assets and return on average stockholders' equity improved to 0.44% and 4.93%, respectively, compared to 0.15% and 1.77% in the prior year.

In terms of operational metrics, Hanover Bancorp's total assets remained stable at approximately $2.3 billion as of June 30, 2025, with total deposits also holding steady at $2.0 billion. The company’s loan portfolio decreased slightly to $1.97 billion from $1.99 billion at the end of 2024. Notably, the allowance for credit losses was $21.6 million, representing 1.10% of total loans, a decrease from 1.15% at the end of the previous fiscal year. The company reported a decline in non-accrual loans to $12.7 million, or 0.64% of total loans, down from $16.4 million, or 0.82%, at the end of 2024.

Strategically, Hanover Bancorp completed a core processing system conversion to FIS Horizon in February 2025, incurring one-time expenses of approximately $3.2 million. The company also expanded its geographic footprint by opening a new full-service branch in Port Jefferson, New York, in June 2025, and a business banking center in Hauppauge, New York, in May 2023. These expansions are part of the bank's strategy to enhance its commercial lending and deposit activities, particularly in underserved areas.

The company’s non-interest income for the quarter was $3.6 million, slightly lower than the $3.6 million reported in the same quarter of 2024. This decrease was attributed to a reduction in net gains on the sale of loans held for sale, which was partially offset by increases in loan servicing and fee income. Total non-interest expenses increased to $12.6 million, up from $11.7 million in the prior year, primarily due to higher salaries and employee benefits associated with staffing the new branch and expanding the commercial lending team.

Looking ahead, Hanover Bancorp remains focused on expanding its core lending verticals and enhancing its market presence. The company anticipates that the addition of new business development officers in the second half of 2025 will lead to increased loan origination volumes. The bank's management is optimistic about its ability to navigate the current economic landscape, characterized by rising interest rates and evolving market conditions, while continuing to provide personalized service to its customers.