Hanover Bancorp Q2 net income more than doubles on lower provision for credit losses

Overview

• U.S. community bank's Q2 net income and adjusted EPS rose sharply yr/yr

• Q2 net interest income and margin reached record levels, supporting profitability gains

• Company repurchased 1.6% of shares outstanding in Q2; Kevin O’Connor appointed as new president, effective on July 27

Outlook

• Company did not provide specific financial guidance for the current qtr or full yr

Result Drivers

• NET INTEREST INCOME - Q2 benefited from higher net interest income and margin expansion, as cost of interest-bearing liabilities declined

• CREDIT LOSS PROVISION - Lower provision for credit losses supported earnings growth

• DEMAND DEPOSITS - Record demand deposit growth driven by CI banking relationships and municipal accounts

• NON-INTEREST INCOME - Lower gains on sale of loans reduced non-interest income, partly offsetting other improvements

Company press release: ID:nGNX9zVrG1

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "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 $24.25, about 1.2% below its July 22 closing price of $24.54

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• July 23 - Bankwell Financial beats Q2 revenue estimates, raises 2026 net interest income guidance

• July 23 - United Bancorp Q2 net interest income rises, partly by deposit growth

• July 23 - Community Heritage Financial net interest income rises on higher asset yields

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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.)