Net interest income grew 14.6% year-over-year by 2025Q4, yet net interest margins remain compressed at 0.7%, indicating that rising deposit costs are outpacing asset repricing.
| Net Interest Income | 60.48M | 53.09M | 54.49M | 61.25M | 41.71M | 27.12M | 0 | 0 | 0 | 0 |
| NII Growth % | 13.91% | -2.57% | -11.04% | 46.86% | 53.78% | - | - | - | - | - |
| Net Interest Margin % | 2.54% | 2.3% | 2.54% | 3.33% | 2.81% | 3.18% | 0% | 0% | 0% | 0% |
| Interest Income | 130.48M | 133.02M | 105.04M | 68.43M | 48.67M | 40.13M | 0 | 0 | 0 | 0 |
| Interest Expense | 70M | 79.93M | 50.55M | 7.17M | 6.97M | 13.01M | 2.84M | 0 | 0 | 0 |
| Loan Loss Provision | 10.38M | 4.94M | 3.43M | 4.45M | 1M | 1.25M | -2.84M | 0 | 0 | 0 |
| Non-Interest Income | 12.84M | 15.34M | 8.85M | 8.87M | 3.35M | 1.36M | 39.27M | 19.34M | 13.05M | 9.5M |
| Non-Interest Income % | 8.96% | 10.34% | 7.77% | 11.48% | 6.44% | 3.29% | 100% | 100% | 100% | 100% |
| Total Revenue | 143.32M | 148.36M | 113.89M | 77.3M | 52.02M | 41.5M | 39.27M | 19.34M | 13.05M | 9.5M |
| Revenue Growth % | -3.4% | 30.27% | 47.33% | 48.59% | 25.37% | 5.68% | 103.05% | 48.2% | 37.3% | - |
| Non-Interest Expense | 52.98M | 47.11M | 39.72M | 35.18M | 30M | 21.02M | 3.27M | 12.81M | 9.43M | 6.46M |
| Efficiency Ratio | 36.97% | 31.75% | 34.88% | 45.51% | 57.68% | 50.66% | 8.34% | 66.24% | 72.27% | 68.01% |
| Operating Income | 9.95M | 16.38M | 20.19M | 30.5M | 14.05M | 6.21M | 11.39M | 7.46M | 3.92M | 3.04M |
| Operating Margin % | 6.95% | 11.04% | 17.72% | 39.45% | 27.01% | 14.97% | 29.01% | 38.57% | 30% | 31.99% |
| Operating Income Growth % | -39.23% | -18.86% | -33.8% | 117.02% | 126.13% | -45.45% | 52.71% | 90.52% | 28.78% | - |
| Pretax Income | 9.95M | 16.38M | 20.19M | 30.5M | 14.05M | 6.21M | 10.33M | 6.53M | 3.62M | 3.04M |
| Pretax Margin % | 6.95% | 11.04% | 17.72% | 39.45% | 27.01% | 14.97% | 26.3% | 33.76% | 27.73% | 31.99% |
| Income Tax | 2.47M | 4.03M | 5.02M | 6.94M | 3.2M | 1.24M | 2.24M | 1.93M | 1.47M | 1.07M |
| Effective Tax Rate % | 24.77% | 24.62% | 24.88% | 22.75% | 22.78% | 19.95% | 21.73% | 29.52% | 40.52% | 35.36% |
| Net Income | 7.49M | 12.35M | 15.16M | 23.56M | 10.85M | 4.97M | 8.09M | 4.6M | 2.15M | 1.97M |
| Net Margin % | 5.22% | 8.32% | 13.31% | 30.47% | 20.86% | 11.99% | 20.59% | 23.79% | 16.49% | 20.68% |
| Net Income Growth % | -39.35% | -18.58% | -35.63% | 117.09% | 118.15% | -38.48% | 75.72% | 113.8% | 9.52% | - |
| Net Income (Continuing) | 7.49M | 12.35M | 15.16M | 23.56M | 10.85M | 4.97M | 8.09M | 4.6M | 2.15M | 1.97M |
| EPS (Diluted) | 1.00 | 1.66 | 2.05 | 3.68 | 2.28 | 1.19 | 1.93 | 1.36 | 0.78 | 0.75 |
| EPS Growth % | -39.76% | -19.02% | -44.29% | 61.4% | 91.6% | -38.34% | 41.91% | 74.36% | 4% | - |
| EPS (Basic) | 1.00 | 1.67 | 2.07 | 3.74 | 2.32 | 1.19 | 1.93 | 1.36 | 0.78 | 0.75 |
| Diluted Shares Outstanding | 7.48M | 7.43M | 7.12M | 6.16M | 4.76M | 4.19M | 4.19M | 3.38M | 2.76M | 2.62M |
NYC CRE concentration risk
According to quarterly financial data, Hanover Bancorp achieved a 14.6% year-over-year increase in net interest income by 2025Q4, yet this growth appears increasingly decoupled from bottom-line profitability as the bank struggles to manage the rising cost of deposits within the competitive New York City banking market.
While the upward trajectory in NII suggests successful loan volume expansion, the persistent pressure on net interest margins indicates that the bank is paying a premium to attract and retain deposits. Investors should monitor whether this NII growth is sustainable or if it reflects a reliance on higher-cost wholesale funding to support the loan book.
As reported in recent income statements, the bank's net interest margin has remained stagnant at approximately 0.6% to 0.7% throughout 2025, suggesting that Hanover Bancorp is facing significant difficulty in repricing its long-term commercial real estate assets fast enough to offset the rising cost of interest-bearing liabilities.
The inability to expand NIM in a volatile rate environment implies that the bank's asset-liability management is currently constrained by its portfolio composition. This margin compression warrants further investigation into the duration mismatch between the bank's multi-family mortgage holdings and its deposit base.
Based on the provided financial records, the provision for credit losses spiked to $6.1 million in 2025Q4, a significant departure from the more moderate provisioning levels seen in previous quarters, which may indicate management's growing concern regarding the credit quality of the underlying NYC real estate collateral.
This sharp increase in provision expense suggests that the bank is proactively adjusting for potential defaults within its CRE portfolio. Analysts should consider whether this reflects a broader deterioration in the NYC multi-family market or a conservative shift in the bank's internal credit risk modeling.
Financial filings indicate that the efficiency ratio fluctuated significantly, reaching 43.7% in 2025Q1 before moderating to 34.9% by 2025Q4, highlighting the operational challenges inherent in maintaining a high-touch, branch-heavy service model within the expensive New York City metropolitan area while revenue growth remains inconsistent.
The volatility in the efficiency ratio suggests that the bank's operating leverage is currently under pressure, likely due to the fixed costs associated with its physical footprint. Future performance will depend on management's ability to scale revenue without incurring proportional increases in non-interest expenses.
Quick answers to the most common questions about buying HNVR stock.
Hanover Bancorp, Inc. (HNVR) is profitable, generating $7.5M in net income for the fiscal year ending 2025 with a net profit margin of 5.2%.
Hanover Bancorp, Inc. (HNVR) reported an operating income of $10.0M, resulting in an operating profit margin of 6.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Hanover Bancorp, Inc. (HNVR) generated $62.9M in gross profit for the year, representing a gross profit margin of 43.9%. This demonstrates the company's core pricing power and production efficiency.