Liquidity management remains tactical, evidenced by high-volume securities portfolio turnover often exceeding $150 million per quarter, while dividend payouts of $762,000 in 2025Q4 appear increasingly disconnected from net income.
| Cash from Operations | 13.05M | 5.9M | 16.4M | 25.05M | 13.19M | 566K | 7.96M | 0 | 0 | 0 |
| Operating CF Growth % | 121.24% | -64.03% | -34.52% | 89.88% | 2230.74% | -92.89% | - | - | - | - |
| Net Income | 7.49M | 12.35M | 15.16M | 23.56M | 10.85M | 4.97M | 8.09M | 4.6M | 2.15M | 1.97M |
| Depreciation & Amortization | 0 | 3.81M | 3.49M | 1.74M | 1.48M | 1.35M | 700K | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 1.2M | 1.32M | 365K | 202K | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 8.42M | -5.24M | -589K | -3.82M | -3.83M | 166K | -3.43M | -4.6M | -2.15M | -1.97M |
| Working Capital Changes | -2.86M | -6.6M | -4.73M | 565K | 3.43M | -6.89M | 2.19M | 0 | 0 | 0 |
| Cash from Investing | -27.95M | -45.82M | -256.36M | -374.15M | 89.85M | -7.29M | -45.82M | 0 | 0 | 0 |
| Purchase of Investments | 0 | -622.63M | 0 | -8M | -4.7M | -5M | -1.89M | 0 | 0 | 0 |
| Sale/Maturity of Investments | 0 | 601.25M | 352K | 6.63M | 5.68M | 1.32M | 2.05M | 0 | 0 | 0 |
| Net Investment Activity | 0 | -21.38M | 352K | -1.37M | 978K | -3.68M | 158K | 0 | 0 | 0 |
| Acquisitions | 0 | 0 | 0 | 0 | 26.16M | -3.88M | 14.53M | 0 | 0 | 0 |
| Other Investing | -27.95M | -23.14M | -253.31M | -371.65M | 64.79M | 1.36M | -56.73M | 0 | 0 | 0 |
| Cash from Financing | 60.94M | 25.57M | 282.64M | 332.5M | -16.71M | -898K | 68.59M | 0 | 0 | 0 |
| Dividends Paid | -3.01M | -2.96M | -2.93M | -2.04M | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -1.83M | 0 | -170K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock Issued | -468K | -68K | 0 | 27.73M | 113K | 112K | 5.11M | 0 | 0 | 0 |
| Net Stock Activity | -2.3M | -68K | -170K | 27.73M | 113K | 112K | 5.11M | 0 | 0 | 0 |
| Debt Issuance (Net) | -1000K | -1000K | 1000K | -1000K | -1000K | -1000K | -1000K | 0 | 0 | 0 |
| Other Financing | 73.33M | 49.87M | 207.41M | 364.52M | 157.72M | 14.58M | 77.36M | 0 | 0 | 0 |
| Net Change in Cash | 46.05M | -14.35M | 42.68M | -16.6M | 86.33M | -7.62M | 87.83M | 0 | 0 | 0 |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 57.1M | 0 | 0 | 0 |
| Cash at Beginning | 162.86M | 177.21M | 149.95M | 166.54M | 80.21M | 87.83M | 0 | 0 | 0 | 0 |
| Cash at End | 208.9M | 162.86M | 192.62M | 149.95M | 166.54M | 80.21M | 87.83M | 0 | 0 | 0 |
| Interest Paid | 69.79M | 80.12M | 60.86M | 7.55M | 7.1M | 13.17M | 0 | 0 | 0 | 0 |
| Income Taxes Paid | 2.58M | 4.03M | 4.4M | 6.47M | 1.38M | 1.24M | 0 | 0 | 0 | 0 |
| Free Cash Flow | 13.05M | 4.61M | 12.99M | 23.93M | 11.11M | -527K | 6.44M | 0 | 0 | 0 |
| FCF Growth % | 183.29% | -64.55% | -45.69% | 115.31% | 2208.73% | -108.18% | - | - | - | - |
NYC CRE concentration risk
Based on reported financial statements, Hanover Bancorp's net income volatility, highlighted by the $33,000 figure in 2025Q4, suggests that organic capital generation remains under significant pressure, limiting the bank's capacity to fund future loan growth without potentially diluting existing shareholders or relying on external capital injections.
The erratic nature of quarterly net income indicates that the bank's core earnings power is currently insufficient to build a robust regulatory capital buffer. Investors should monitor whether this trend of low earnings retention persists, as it may force management to curtail lending activities to maintain required capital adequacy ratios.
As reported in recent SEC filings, Hanover Bancorp has engaged in frequent, high-volume turnover of its investment securities portfolio, with quarterly purchase and sale activity often exceeding $150 million, suggesting a tactical approach to managing liquidity rather than a long-term hold strategy for yield enhancement.
The high velocity of securities trading appears to be a mechanism for managing short-term cash flow gaps rather than a strategic investment play. This constant churn warrants further investigation, as it may indicate that the bank is using its securities portfolio as a primary liquidity buffer to offset deposit outflows.
According to historical cash flow data, Hanover Bancorp has maintained a consistent dividend payout of approximately $740,000 per quarter, even as net income fluctuated significantly, which may indicate that current capital return levels are becoming increasingly disconnected from the bank's underlying operational cash generation capacity.
While the dividend appears stable, the simultaneous use of cash for share buybacks during periods of earnings volatility suggests a management preference for supporting the stock price over retaining capital. This strategy may prove unsustainable if the bank's net interest margin continues to face the compression observed in recent quarters.
Based on reported figures, the $6.1 million provision for credit losses in 2025Q4 represents a sharp departure from previous quarters, suggesting that management is proactively adjusting for potential deterioration in the bank's concentrated NYC commercial real estate loan portfolio as market conditions evolve.
This significant increase in provisioning appears to be a direct response to the heightened risk profile of the bank's multi-family and CRE assets. Analysts should monitor whether this trend continues, as it may imply that the bank is bracing for a cycle of higher charge-offs that could further erode profitability.
Quick answers to the most common questions about buying HNVR stock.
Hanover Bancorp, Inc. (HNVR) generated $13.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Hanover Bancorp, Inc. (HNVR) generated $13.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Hanover Bancorp, Inc. (HNVR) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Hanover Bancorp, Inc. (HNVR) returned $3.0M to shareholders via cash dividends and spent $1.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.