In This Article:
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Net Income: Reported $3.8 million for Q4 2023, down from $5.3 million in Q4 2022.
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Earnings Per Share: Diluted EPS at $0.51, compared to $0.72 in the same quarter last year.
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Net Interest Income: Decreased by 17.1% year-over-year to $12.7 million.
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Non-Interest Income: Increased, contributing positively to the earnings.
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Balance Sheet: Total assets grew to $2.27 billion, up from $2.15 billion in the previous quarter.
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Dividend: Declared a $0.10 per share cash dividend payable in February 2024.
On January 24, 2024, Hanover Bancorp Inc (NASDAQ:HNVR) released its 8-K filing, detailing the financial results for the fourth quarter ended December 31, 2023. The United States-based banking company, which offers a full range of financial services including consumer and commercial banking products, faced a challenging quarter as net income and net interest income decreased, while non-interest income showed strength.
Financial Performance and Challenges
Hanover Bancorp Inc (NASDAQ:HNVR) reported a decrease in net income to $3.8 million for the fourth quarter of 2023, down from $5.3 million in the same period a year ago. This decline was primarily due to a decrease in net interest income, which fell by 17.1% to $12.7 million, as the net interest margin compressed to 2.40% from 3.49% in the previous year. The rapid rise in interest rates, driven by Federal Reserve policy, was a significant factor, causing the cost of interest-bearing deposits to rise faster than the yield on interest-earning assets.
The bank also experienced an increase in non-interest expense, largely due to growth-related increases in compensation and benefits, occupancy and equipment, federal deposit insurance premiums, and other operating expenses. These challenges were partially offset by a decrease in the provision for credit losses and an increase in non-interest income.
Financial Achievements
Despite the headwinds, Hanover Bancorp Inc (NASDAQ:HNVR) achieved notable financial successes. Non-interest income increased, contributing positively to the overall earnings. The bank also declared a $0.10 per share cash dividend, underscoring its commitment to returning value to shareholders. Total assets grew to $2.27 billion, up from $2.15 billion in the previous quarter, indicating a solid balance sheet position.
Key Financial Metrics
Important financial metrics from the earnings report include:
"The yield on interest earning assets increased to 5.91% in the 2023 quarter from 5.17% in the comparable 2022 quarter, an increase of 74 basis points, offset by a 211 basis point increase in the cost of interest-bearing liabilities to 4.19% in 2023 from 2.08% in the fourth calendar quarter of 2022."