Hanover Bancorp Q3 net income rises on loan growth
Overview
U.S. community bank's Q3 net income rose yr/yr, driven by strong loan growth
Net interest income for Q3 increased 12% from a year ago to a record level
Company declared a $0.10 per share quarterly cash dividend and opened a new Riverhead branch
Outlook
Company expects higher deposit costs to be mitigated by higher yielding loan production and rate resets
Hanover Bancorp anticipates continued, disciplined growth following the opening of its Riverhead branch
Result Drivers
LOAN GROWTH - Co said Q3 results were driven by strong loan growth in niche-residential and commercial real estate and C&I lending
NET INTEREST MARGIN - Higher net interest income was attributed to improved net interest margin and lower cost of interest-bearing liabilities
EXPENSE CONTROL - Lower non-interest expense, mainly from reduced compensation, legal, and SBA broker fees, supported improved efficiency ratio
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Net Income | $4.35 mln | ||
Q3 Net Interest Income | $17.03 mln | ||
Q3 Loan Loss Provision | $1.10 mln | ||
Q3 Pretax Profit | $5.79 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "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 $25.00, about 6.7% above its October 27 closing price of $23.42
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago
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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.)