Hanover Bancorp Reports Q3 2023 Net Income of $3.5 Million
Q3 Revenue at $28.9 Million Marks Growth for Hanover Bancorp
Hanover Bancorp, Inc.(HNVR) has released its unaudited financial statements for the third quarter of 2023, revealing a net income of $3.5 million and quarterly revenue of $28.9 million. The financial results indicate the bank's performance in a dynamic economic environment. This article provides an in-depth analysis of Hanover Bancorp's Statements of Condition, Consolidated Statements of Income, and Non-GAAP financial information for the third quarter.
Assets and Liabilities
Hanover Bancorp's total assets as of September 30, 2023, amounted to $2.15 billion, showing a positive trend from $2.12 billion in the previous quarter. The increase in cash and cash equivalents from $149.9 million in September 2022 to $192.6 million in September 2023 contributed to the growth. Loans, net of deferred loan fees and costs, also saw an increase from $1.62 billion in 2022 to $1.87 billion in 2023, demonstrating the bank's commitment to its lending activities. Stockholders' equity showed a positive trend, rising from $172.6 million in September 2022 to $185.9 million in September 2023.
On the liabilities side, total deposits increased to $1.74 billion in September 2023, compared to $1.59 billion in the prior quarter. However, borrowings decreased from $293.8 million in June 2023 to $179.8 million in September 2023.
Consolidated Statements of Income
Hanover Bancorp reported interest income of $28.9 million for the third quarter of 2023, significantly higher than the $19.6 million reported during the same period in 2022. Interest expenses also increased from $3.2 million to $17.2 million during the same period, resulting in a net interest income of $11.8 million for Q3 2023. The provision for loan losses decreased from $2.1 million in 2022 to $500,000 in 2023.
Non-interest income was $3.7 million for the third quarter of 2023, with various sources contributing, including loan servicing and fee income, service charges on deposit accounts, and gain on sale of loans held-for-sale. Non-interest expenses, including compensation and benefits, occupancy and equipment, data processing, and professional fees, amounted to $10.3 million in Q3 2023. The bank reported income before income taxes of $4.7 million.
Adjusted Financial Information
Hanover Bancorp reported an adjusted net income of $2.8 million for the third quarter of 2023. This adjusted figure accounts for items such as merger-related expenses, litigation settlement payments, and severance and retirement expenses. The adjusted basic earnings per share came in at $0.38, while the diluted earnings per share were also $0.38.
Additionally, the adjusted operating efficiency ratio for Q3 2023 was 71.00%, taking into account the adjustments for merger-related expenses and litigation settlement payments. This ratio shows the bank's commitment to maintaining operational efficiency.
Hanover Bancorp's financial results for the third quarter of 2023 demonstrate its solid performance in an evolving financial landscape. The increase in assets, net income, and revenue indicate growth and resilience in a dynamic market. The bank's proactive approach to managing expenses, as reflected in the adjusted financial information, highlights its commitment to delivering value to its shareholders and customers.
