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Hanover Bancorp Q3 net income rises on loan growth

By Reuters News


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


Reuters Recommended Reads

  • Oct 27 - NBT Bancorp Q3 profit rises on loan growth, higher net interest income

  • Oct 27 - First Community Bankshares Q3 net income rises 26%

  • Oct 27 - Seacoast Banking Q3 revenue up 37% but slightly misses estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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