HNVR

Second Quarter Performance Highlights Net Income: Net income for the quarter ended June 30, 2026 totaled $4.1 million or $0.55 per diluted share (including Series A preferred shares), versus $1.9 million or $0.25 per diluted share (including Series A preferred shares) in the quarter ended March 31, 2026 and $2.4 million or $0.33 per diluted share (including Series A preferred shares) in the quarter ended June 30, 2025. Adjusted (non-GAAP) net income (excluding debt extinguishment charges and severance expenses) was $4.3 million or $0.58 per diluted share for the quarter ended June 30, 2026, versus adjusted (non-GAAP) net income (excluding severance expenses) of $4.0 million or $0.54 per diluted share in the prior linked quarter and net income of $2.4 million or $0.33 per diluted share in the comparable 2025 quarter (which included no adjustments). Net Interest Income: Net interest income was $16.8 million for the quarter ended June 30, 2026, an increase of $0.4 million, or 2.50% from the quarter ended March 31, 2026 and $2.0 million, or 13.36%, from the quarter ended June 30, 2025, representing a record level. Net Interest Margin Expansion: The Company’s net interest margin for the quarter ended June 30, 2026 increased to 3.10% from 2.96% for the quarter ended March 31, 2026 and 2.76% in the quarter ended June 30, 2025. Improved Profitability Metrics: Returns on average assets and average tangible equity increased to 0.73% and 8.85%, respectively, for the quarter ended June 30, 2026 from 0.33% and 4.14%, respectively, for the quarter ended March 31, 2026 and 0.44% and 5.46%, respectively, for the quarter ended June 30, 2025. Adjusted (non-GAAP) returns on average assets and average tangible equity increased to 0.77% and 9.30%, respectively, for the quarter ended June 30, 2026 from 0.70% and 8.83%, respectively, for the quarter ended March 31, 2026 and 0.44% and 5.46%, respectively, for the quarter ended June 30, 2025. Pre-provision net revenue return on average assets increased to 1.06% for the quarter ended June 30, 2026 from 0.62% for the quarter ended March 31, 2026 and 1.04% for the quarter ended June 30, 2025. Adjusted pre-provision net revenue return on average assets increased to 1.11% for the quarter ended June 30, 2026 from 1.02% for the quarter ended March 31, 2026 and 1.04% for the quarter ended June 30, 2025. Demand Deposits: Demand deposits increased $16.9 million or 7.13% to a record $254.3 million at June 30, 2026 from March 31, 2026 and increased $6.5 million or 2.62% from December 31, 2025, driven by the success of our C&I banking relationships and an increase in municipal operating accounts. Share Repurchases: For the quarter ended June 30, 2026, the Company repurchased 112,346 shares of its common stock, which represented approximately 1.6% of shares outstanding at the beginning of the period, at a weighted average price of $23.54 per share. Of the 366,050 shares authorized under the Company’s share repurchase program, 171,729 shares remain available for repurchase as of June 30, 2026. Appointment of New President: As previously announced on July 20, 2026, Kevin O’Connor has been named to the position of President of the Company and the Bank effective July 27, 2026. Mr. O’Connor brings more than 35 years of banking experience to Hanover Bank, having most recently served as Long Island Market President at Valley Bank. Quarterly Cash Dividend: The Company’s Board of Directors approved a $0.10 per share cash dividend on both common shares and Series A preferred shares payable on August 13, 2026 to stockholders of record on August 6, 2026. Riverhead Branch: Our new full-service branch in downtown Riverhead, New York is currently on schedule and is expected to open its doors in the third quarter of 2026. This expansion will allow us to better serve the East End of Long Island with our complete suite of financial and banking services. MINEOLA, N.Y., July 23, 2026 (GLOBE NEWSWIRE) -- Hanover Bancorp, Inc. (“Hanover” or “the Company” – NASDAQ: HNVR), the holding company for Hanover Community Bank (“the Bank”), today reported results for the quarter ended June 30, 2026 and the declaration of a $0.10 per share cash dividend on both common shares and Series A preferred shares payable on August 13, 2026 to stockholders of record on August 6, 2026. Earnings Summary for the Quarter Ended June 30, 2026 The Company reported net income for the quarter ended June 30, 2026 of $4.1 million or $0.55 per diluted share (including Series A preferred shares) versus $2.4 million or $0.33 per diluted share (including Series A preferred shares) for the quarter ended June 30, 2025. The Company recorded adjusted (non-GAAP) net income (excluding debt extinguishment charges and severance expenses of $0.2 million, net of tax) of $4.3 million or $0.58 per diluted share in the quarter ended June 30, 2026, versus net income of $2.4 million or $0.33 per diluted share in the comparable 2025 quarter (which included no adjustments). Returns on average assets, average stockholders’ equity and average tangible equity were 0.73%, 8.01% and 8.85%, respectively, for the quarter ended June 30, 2026, versus 0.44%, 4.93% and 5.46%, respectively, for the comparable quarter of 2025. Adjusted (non-GAAP) returns, exclusive of debt extinguishment charges and severance expenses, on average assets, average stockholders’ equity and average tangible equity were 0.77%, 8.42% and 9.30%, respectively, in the quarter ended June 30, 2026, versus 0.44%, 4.93% and 5.46%, respectively, in the comparable 2025 quarter, which included no adjustments for the 2025 quarter. The increase in net income recorded in the second quarter of 2026 from the comparable 2025 quarter resulted from an increase in net interest income and a decrease in provision for credit losses. This was partially offset by a decrease in non-interest income, consisting primarily of a decrease in gain on sale of loans held-for-sale, an increase in non-interest expense, which includes $240 thousand debt extinguishment charges in the 2026 quarter, and an increase in income tax expense. Net interest income was $16.8 million for the quarter ended June 30, 2026, an increase of $2.0 million, or 13.36% from the comparable 2025 quarter. This increase was due to improvement in the Company’s net interest margin to 3.10% in the 2026 quarter from 2.76% in the comparable 2025 quarter. The cost of interest-bearing liabilities decreased to 3.46% in the 2026 quarter from 3.94% in the comparable 2025 quarter, a decrease of 48 basis points. This decrease was partially offset by a 5 basis point decrease in the yield on interest earning assets to 5.93% in the 2026 quarter from 5.98% in the second quarter of 2025. Net interest income on a linked quarter basis increased $0.4 million or 2.50%, resulting from a 9 basis point increase in the yield on interest earning assets and a 5 basis point decrease in cost of interest-bearing liabilities. Earnings Summary for the Six Months Ended June 30, 2026 For the six months ended June 30, 2026, the Company reported net income of $5.9 million or $0.80 per diluted share (including Series A preferred shares), versus $4.0 million or $0.53 per diluted share (including Series A preferred shares) in the comparable 2025 six-month period. The Company recorded adjusted (non-GAAP) net income (excluding debt extinguishment charges and severance expenses of $2.3 million, net of tax) of $8.3 million or $1.11 per diluted share in the six months ended June 30, 2026, versus adjusted (non-GAAP) net income (excluding core system conversion expenses of $2.6 million, net of tax) of $6.5 million or $0.87 per diluted share in the comparable 2025 six-month period. Returns on average assets, average stockholders’ equity and average tangible equity were 0.53%, 5.89% and 6.51%, respectively, for the six months ended June 30, 2026, versus 0.36%, 4.02% and 4.46%, respectively, for the comparable 2025 period. Adjusted (non-GAAP) returns, exclusive of debt extinguishment charges and severance expenses, on average assets, average stockholders’ equity and average tangible equity were 0.73%, 8.20% and 9.07%, respectively, in the six months ended June 30, 2026, versus 0.59%, 6.63% and 7.35%, respectively, in the comparable 2025 period, exclusive of core system conversion expenses. The increase in net income recorded for the six months ended June 30, 2026 from the comparable 2025 period is due to an increase in net interest income and a decrease in the provision for credit losses. These were partially offset by a decrease in non-interest income, consisting primarily of a decrease in gain on sale of loans held-for-sale, an increase in income tax expense and an increase in non-interest expenses, particularly compensation and benefits, severance expenses, occupancy and equipment and other operating expenses which included $240 thousand debt extinguishment charges. Severance expenses for the six months ended June 30, 2026 were primarily related to a severance benefit of approximately $2.2 million to the former President of the Company and the Bank whose last day of employment was March 31, 2026. Net interest income was $33.1 million for the six months ended June 30, 2026, an increase of $3.7 million, or 12.61% from the comparable 2025 period, due to the improvement of the Company’s net interest margin to 3.03% in the 2026 period from 2.72% in the comparable 2025 period. The cost of interest-bearing liabilities decreased to 3.48% in the six months ended June 30, 2026 from 3.98% in the comparable 2025 period, a decrease of 50 basis points. This decrease was partially offset by an 11 basis point decrease in the yield on interest earning assets to 5.88% in the 2026 period from 5.99% in the comparable 2025 period. Michael P. Puorro, Chairman, President and Chief Executive Officer, commented on the Company’s quarterly results: “We are pleased to deliver solid second quarter results, highlighted by record net interest income and record demand deposits. By capitalizing on market opportunities and maintaining strict operating discipline, we achieved meaningful margin expansion and improved our core profitability metrics. Our ongoing commitment to share buybacks and dividends reflects our confidence in the Company’s financial strength and our dedication to delivering long-term shareholder returns. Further, we are excited to welcome Kevin O’Connor to the team. As we expand our Long Island footprint, his reputation in the community banking sector complements our growth strategies. We look forward to working together to increase market share in this underserved region.” Balance Sheet Highlights Total assets were $2.34 billion at June 30, 2026 versus $2.38 billion at December 31, 2025. Total securities available for sale (“AFS”) at June 30, 2026 were $135.0 million, an increase of $35.5 million from December 31, 2025, primarily driven by growth in U.S. GSE residential mortgage-backed securities, collateralized loan obligations and corporate bonds, offset by decreases in U.S. Treasury securities and collateralized mortgage obligations. Total deposits were $2.01 billion at June 30, 2026 versus $2.03 billion at December 31, 2025. Our loan to deposit ratio was 99% both at June 30, 2026 and December 31, 2025. Borrowings at June 30, 2026 were $59.8 million, with a weighted average rate and term of 3.49% and 51 months, respectively. At June 30, 2026 and December 31, 2025, the Company had $59.8 million (net of $440 thousand deferred prepayment penalty) and $100.7 million, respectively, of term FHLB advances outstanding. The Company had no FHLB overnight borrowings outstanding at June 30, 2026 and December 31, 2025. The Company had no borrowings outstanding under lines of credit with correspondent banks at June 30, 2026 and December 31, 2025. Stockholders’ equity was $202.7 million at June 30, 2026 as compared to $200.3 million at December 31, 2025. Retained earnings increased by $4.4 million due primarily to net income of $5.9 million for the six months ended June 30, 2026, which was offset by $1.5 million of dividends declared. The accumulated other comprehensive loss at June 30, 2026 was 0.28% of total equity and was comprised of a $0.5 million after tax net unrealized loss on the investment portfolio and a $0.1 million after tax net unrealized loss on derivatives.   During the six months ended June 30, 2026, the Company repurchased 112,346 shares of its common stock at an aggregate cost of $2.6 million. As of June 30, 2026, 171,729 shares remained available for repurchase under the Company’s stock repurchase program.   Book value per share (including Series A preferred shares) increased to $27.66 at June 30, 2026 from $27.02 at December 31, 2025. Tangible book value per share (including Series A preferred shares) increased to $25.02 at June 30, 2026 from $24.41 at December 31, 2025. Loan Portfolio The Bank’s loan portfolio was $2.00 billion at June 30, 2026 and December 31, 2025. At June 30, 2026, the Company’s residential loan portfolio (including home equity) amounted to $764.2 million, with an average loan balance of $487 thousand and a weighted average loan-to-value ratio of 56%.   Commercial real estate (including construction) and multifamily loans totaled $1.08 billion at June 30, 2026, with an average loan balance of $1.5 million and a weighted average loan-to-value ratio of 58%. As discussed below, approximately 37% of the multifamily portfolio is subject to rent regulation. The Company’s commercial real estate concentration ratio continues to improve, decreasing to 346% of capital at June 30, 2026 from 362% at December 31, 2025, with loans secured by office space accounting for 2% of the total loan portfolio and totaling $40.2 million at June 30, 2026. The Company’s loan pipeline at June 30, 2026 is approximately $223.0 million, with approximately 50% being niche-residential, SBA and USDA lending opportunities. The Bank originates loans for its portfolio and for sale in the secondary market under a residential flow origination program. During the quarters ended June 30, 2026 and 2025, the Company sold $27.2 million and $23.7 million, respectively, of residential loans under its flow origination program and recorded gains on sale of loans held-for-sale of $0.7 million and $0.5 million, respectively. Residential loan originations were $57 million for the quarter ended June 30, 2026. During the quarters ended June 30, 2026 and 2025, the Company sold approximately $8.3 million and $22.3 million, respectively, of government guaranteed SBA loans and recorded gains on sale of loans held-for-sale of $0.7 million and $1.8 million, respectively. SBA loan originations and gains on sale continue to be lower due to a less favorable economic outlook for many business owners along with the Bank’s ongoing prudent decision to tighten credit. Together, these factors contributed to lower SBA loan volume, approval levels, and related gain-on-sale income. Commercial Real Estate Statistics A significant portion of the Bank’s commercial real estate portfolio consists of loans secured by Multifamily and CRE-Investor owned real estate that are predominantly subject to fixed interest rates for an initial period of 5 years. The Bank’s exposure to Land/Construction loans as of June 30, 2026 is not significant at $10.3 million, all at floating interest rates. As shown below, as of June 30, 2026, 16% of the loan balances in these combined portfolios will either have a rate reset or mature in 2026, with another 54% with rate resets or maturing in 2027. Stabilized Multifamily Pro Forma Stress Results The table below reflects a pro forma stressed evaluation of the Bank’s Multifamily stabilized loan portfolio as of June 30, 2026, using the primary assumption for a revised Debt Service Coverage Ratio (“DSCR”) calculation, for all loans where the current interest rate is below 6.00%. The current balance for these loans is recast at 6.00% with a 30-year amortization. The chart below reflects the impact of these adjustments on the portfolio. The projected loan to value (“LTV”) assumption resets all loans using a 6.25% cap rate and the last reported property net operating income (“NOI”) to determine an implied property valuation and based on the current loan balance, the resultant LTV. As reflected above, only 5 loans totaling $16 million in the multifamily rent stabilized portfolio would have a pro forma DSCR less than 1x, this represents 3% of the total multifamily portfolio. The remainder of this portfolio, totaling $194 million, representing 34% of the entire multifamily portfolio, would possess DSCR’s greater than 1x while maintaining a projected weighted average LTV well within our policy guidelines. Additionally, 73% of the rent stabilized loans and 74% of the entire multifamily portfolio are further secured with personal guarantees from the borrowers. Based on the maturities and rate resets in the previous 12 months, we believe the overall demand for multifamily housing in our market will allow our borrowers to address any adverse impact proactively. The Bank continues to successfully manage multifamily loans with scheduled rate repricing or maturities. Matured loans that qualified for renewal have been retained while others have paid off in full through refinances. The majority of the rate resetting loans remain as performing loans at the new higher interest rate. Rental breakdown of Multifamily portfolio The table below segments our portfolio of loans secured by Multifamily properties based on rental terms and location as of June 30, 2026. As shown below, 63% of the combined portfolio is secured by properties subject to free market rental terms, which is the dominant tenant type. Both the Market Rent and Stabilized Rent segments of our portfolio present very similar average borrower profiles. The portfolio is primarily located in the New York City boroughs of Brooklyn, the Bronx and Queens. Office Property Exposure The Bank’s exposure to the Office market is not significant.   Loans secured by office space accounted for 2% of the total loan portfolio at June 30, 2026, with a total balance of $40.2 million, of which less than 1% is located in Manhattan. The pool has a 2.44x weighted average DSCR and a 54% weighted average LTV. Asset Quality and Allowance for Credit Losses At June 30, 2026, the Bank reported $28.3 million in non-performing loans compared to $24.6 million at March 31, 2026 and $21.6 million at December 31, 2025. Excluding the portion that is government guaranteed by the SBA, non-performing loans were $21.3 million at June 30, 2026 compared to $17.7 million at March 31, 2026 and $17.9 million at December 31, 2025. The increase in non-performing loans over the linked quarter is primarily attributable to a $3.6 million loan relationship, originated in 2018 by Savoy Bank, which is comprised of one commercial real estate loan in the amount of $2.8 million and an SBA loan in the amount of $0.8 million (non-guaranteed portion). While the loans are currently non-performing, they are well collateralized and the Bank expects to fully recover the principal amount. At June 30, 2026 non-performing loans were 1.42% of total loans outstanding versus 1.08% at December 31, 2025. Excluding the guaranteed portion, non-performing loans were 1.07% of total loans outstanding at June 30, 2026 versus 0.90% at December 31, 2025. During the second quarter of 2026, the Bank recorded a provision for credit losses of $500 thousand. The allowance for credit losses was $19.1 million at June 30, 2026 versus $18.7 million at December 31, 2025. The allowance for credit losses as a percentage of total loans was 0.96% at June 30, 2026 and 0.93% at December 31, 2025. Net Interest Margin The Bank’s net interest margin increased to 3.10% for the quarter ended June 30, 2026 compared to 2.96% in the quarter ended March 31, 2026 and 2.76% in the quarter ended June 30, 2025. Reversal of accrued interest income on a non-accrual loan reduced the net interest margin by 2 basis points for the quarter ended June 30, 2026. About Hanover Community Bank and Hanover Bancorp, Inc. Hanover Bancorp, Inc. (NASDAQ: HNVR), is the bank holding company for Hanover Community Bank, a community commercial bank focusing on highly personalized and efficient services and products responsive to client needs. Management and the Board of Directors are comprised of a select group of successful local businesspeople who are committed to the success of the Bank by knowing and understanding the metro-New York area’s financial needs and opportunities. Backed by state-of-the-art technology, Hanover offers a full range of financial services. Hanover offers a complete suite of consumer, commercial, and municipal banking products and services, including multifamily and commercial mortgages, residential loans, business loans and lines of credit. Hanover also offers its customers access to 24-hour ATM service with no fees attached, free checking with interest, telephone banking, advanced technologies in mobile and internet banking for our consumer and business customers, safe deposit boxes and much more. The Company’s corporate administrative office is located in Mineola, New York where it also operates a full-service branch office along with additional branch locations in Garden City Park, Hauppauge, Port Jefferson, Forest Hills, Flushing, Sunset Park, Rockefeller Center and Bowery, New York, and Freehold, New Jersey. Hanover Community Bank is a member of the Federal Deposit Insurance Corporation and is an Equal Housing/Equal Opportunity Lender. For further information, call (516) 548-8500 or visit the Bank’s website at www.hanoverbank.com. Non-GAAP Disclosure This discussion, including the financial statements attached thereto, includes non-GAAP financial measures which include the Company’s adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average equity, pre-provision net revenue (“PPNR”), PPNR return on average assets, adjusted PPNR, adjusted PPNR return on average assets, return on average tangible equity, adjusted return on average tangible equity, adjusted non-interest expense to average assets, efficiency ratio, adjusted efficiency ratio, tangible common equity (“TCE”) ratio, TCE, tangible assets and tangible book value per share. A non-GAAP financial measure is a numerical measure of historical or future performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes that the presentation of non-GAAP financial measures provides both management and investors with a greater understanding of the Company’s operating results and trends in addition to the results measured in accordance with GAAP and provides greater comparability across time periods. While management uses non-GAAP financial measures in its analysis of the Company’s performance, this information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP. The Company’s non-GAAP financial measures may not be comparable to similarly titled measures used by other financial institutions. With respect to the calculations of and reconciliations of the aforementioned non-GAAP financial measures, reconciliations to the most comparable U.S. GAAP measures are provided in the tables that follow. Forward-Looking Statements This release may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and may be identified by the use of such words as "may," "believe," "expect," "anticipate," "should," "plan," "estimate," "predict," "continue," and "potential" or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of Hanover Bancorp, Inc. Any or all of the forward-looking statements in this release and in any other public statements made by Hanover Bancorp, Inc. may turn out to be incorrect as a result of inaccurate assumptions that Hanover Bancorp, Inc. might make or by known or unknown risks and uncertainties. There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) the impact of a pandemic or other health crises and the government’s response to such pandemic or crises on our operations as well as those of our customers and on the economy generally and in our market area specifically; (2) competitive pressures among depository institutions may increase significantly; (3) changes in the interest rate environment may reduce interest margins; (4) loan origination and sale volumes, charge-offs and credit loss provisions may vary substantially from period to period; (5) general economic conditions may be less favorable than expected; (6) political developments, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (7) legislative or regulatory changes or actions may adversely affect the businesses in which Hanover Bancorp, Inc. is engaged; (8) the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts; (9) changing political conditions and the outcome of federal, state, and local elections and the resulting economic and other impact on the areas in which we conduct business; (10) changes relating to rent regulation and housing, including recent legislative action in New York City to freeze rents on certain rent-regulated properties; (11) changes and trends in the securities markets may adversely impact Hanover Bancorp, Inc.; (12) a delayed or incomplete resolution of regulatory issues could adversely impact our planning; (13) difficulties in integrating any businesses that we may acquire, which may increase our expenses and delay the achievement of any benefits that we may expect from such acquisitions; (14) the impact of the strategic credit cleanup that we implemented during the fourth quarter of 2025 and the wholesale funding restructuring we implemented during the first quarter of 2026; (15) the impact of reputation risk created by the developments discussed above on such matters as business generation and retention, funding and liquidity could be significant; (16) our ability to hire and retain key personnel; and (17) the outcome of any future regulatory and legal investigations and proceedings may not be anticipated. Further information on other factors that could affect the financial results of Hanover Bancorp, Inc. are included in our Annual Report on Form 10-K under Item 1A - Risk Factors, as updated by our subsequent filings with the Securities and Exchange Commission. Consequently, no forward-looking statement can be guaranteed. Hanover Bancorp, Inc. does not intend to update any of the forward-looking statements after the date of this release or to conform these statements to actual events. Investor and Press Contact:Lance P. BurkeChief Financial Officer(516) 548-8500

First Quarter Performance Highlights Net Income: Net income for the quarter ended March 31, 2026 totaled $1.9 million or $0.25 per diluted share (including Series A preferred shares). Adjusted (non-GAAP) net income (excluding severance expenses) was $4.0 million or $0.54 per diluted share for the quarter ended March 31, 2026. Net Interest Income: Net interest income was $16.4 million for the quarter ended March 31, 2026, an increase of $0.5 million, or 3.36% from the quarter ended December 31, 2025 and $1.7 million, or 11.85%, from the quarter ended March 31, 2025, representing the highest level since the third quarter of 2022. Net Interest Margin Expansion: The Company’s net interest margin for the quarter ended March 31, 2026 increased to 2.96% from 2.84% for the quarter ended December 31, 2025 and 2.68% in the quarter ended March 31, 2025. Subordinated Debt: On March 12, 2026, the Company completed the private placement of $35 million of 7.25% fixed-to-floating subordinated notes due in 2036. Proceeds were used to redeem the Company’s previously outstanding 8.54% floating rate subordinated notes on April 15, 2026 and to enhance the Bank’s capital base. Executed Wholesale Funding Optimization: In February 2026, the Bank proactively restructured $60.3 million of FHLB advances into new, flexible, put-feature advances. The restructuring reduced the weighted average borrowing cost from 4.27% to 3.47%, saving approximately $40 thousand in monthly interest expense, while maintaining term funding and call protection. Quarterly Cash Dividend: The Company’s Board of Directors approved a $0.10 per share cash dividend on both common shares and Series A preferred shares payable on May 18, 2026 to stockholders of record on May 11, 2026. Long Island Expansion: Regulatory authorization has been received for the opening of a full-service branch in a state-of-the-art facility in downtown Riverhead, New York. In anticipation of the branch opening later this year, a temporary loan production office in Riverhead with business development staff became operational in March 2026. MINEOLA, N.Y., April 27, 2026 (GLOBE NEWSWIRE) -- Hanover Bancorp, Inc. (“Hanover” or “the Company” – NASDAQ: HNVR), the holding company for Hanover Community Bank (“the Bank”), today reported results for the quarter ended March 31, 2026 and the declaration of a $0.10 per share cash dividend on both common shares and Series A preferred shares payable on May 18, 2026 to stockholders of record on May 11, 2026. Earnings Summary for the Quarter Ended March 31, 2026 The Company reported net income for the quarter ended March 31, 2026 of $1.9 million or $0.25 per diluted share (including Series A preferred shares) versus $1.5 million or $0.20 per diluted share (including Series A preferred shares) for the quarter ended March 31, 2025. The Company recorded adjusted (non-GAAP) net income (excluding severance expenses of $2.1 million, net of tax) of $4.0 million or $0.54 per diluted share in the quarter ended March 31, 2026, versus adjusted (non-GAAP) net income (excluding core system conversion expenses of $2.6 million, net of tax) of $4.1 million or $0.55 per diluted share in the comparable 2025 quarter. Returns on average assets, average stockholders’ equity and average tangible equity were 0.33%, 3.74% and 4.14%, respectively, for the quarter ended March 31, 2026, versus 0.27%, 3.11% and 3.45%, respectively, for the comparable quarter of 2025. Adjusted (non-GAAP) returns, exclusive of severance expenses, on average assets, average stockholders’ equity and average tangible equity were 0.70%, 7.98% and 8.83%, respectively, in the quarter ended March 31, 2026, versus 0.73%, 8.36% and 9.27%, respectively, in the comparable 2025 quarter, exclusive of core system conversion expenses for the 2025 quarter. The increase in net income recorded in the first quarter of 2026 from the comparable 2025 quarter resulted from an increase in net interest income. This was partially offset by a decrease in non-interest income, consisting primarily of gain on sale of loans held-for-sale and an increase in income tax expense. Non-interest expense for the three months ended March 31, 2026 includes a severance payment related to a Board approved Transition Agreement dated February 12, 2026 between the Company and the former President of the Company and the Bank, McClelland Wilcox. In connection with a management restructuring initiative, Mr. Wilcox’s last day of employment was March 31, 2026 and, pursuant to the terms of his Employment Agreement, he was entitled to a severance benefit of approximately $2.15 million. Net interest income was $16.4 million for the quarter ended March 31, 2026, an increase of $1.7 million, or 11.85% from the comparable 2025 quarter. This increase was due to improvement in the Company’s net interest margin to 2.96% in the 2026 quarter from 2.68% in the comparable 2025 quarter. The cost of interest-bearing liabilities decreased to 3.51% in the 2026 quarter from 4.01% in the comparable 2025 quarter, a decrease of 50 basis points. This decrease was partially offset by a 17 basis point decrease in the yield on interest earning assets to 5.84% in the 2026 quarter from 6.01% in the first quarter of 2025. Net interest income on a linked quarter basis increased $0.5 million or 3.36%, resulting from a 16 basis point decrease in cost of interest-bearing liabilities. Excluding interest expense of $100 thousand resulting from the temporary carrying of multiple subordinated debt issuances, as discussed below, the Bank’s net interest margin was 2.98% for the quarter ended March 31, 2026. On March 12, 2026, the Company issued $35 million of 10-year fixed-to-floating rate subordinated notes with a fixed coupon rate of 7.25% for the first five years. The Company used the net proceeds to provide capital to support growth of the consolidated entity and to redeem in full, its previously outstanding $25 million of 8.54% floating rate subordinated notes on April 15, 2026, thereby reducing the Company’s cost of funds. Michael P. Puorro, Chairman, President and Chief Executive Officer, commented on the Company’s quarterly results: “We are pleased with first quarter 2026 results which reflect strengthening core performance and disciplined balance sheet management, highlighted by $4.0 million in adjusted net income, increasing return on average assets, credit stabilization, and continued margin expansion to 2.96%. We also enhanced our capital position through a $35 million subordinated debt issuance, reduced funding costs through proactive balance sheet optimization, maintained our commitment to shareholder returns with a quarterly dividend, and advanced our strategic expansion into Long Island.” Balance Sheet Highlights Total assets were $2.37 billion at March 31, 2026 versus $2.38 billion at December 31, 2025. Total securities available for sale (“AFS”) at March 31, 2026 were $105.8 million, an increase of $6.2 million from December 31, 2025, primarily driven by growth in U.S. GSE residential mortgage-backed securities and corporate bonds, offset by decreases in U.S. Treasury securities and collateralized loan obligations. Total deposits were $2.02 billion at March 31, 2026 versus $2.03 billion at December 31, 2025. Our loan to deposit ratio was 99% both at March 31, 2026 and December 31, 2025. In February 2026, the Bank executed a proactive wholesale funding optimization strategy, restructuring five FHLB advances maturing in 2027 and 2028 and totaling $60.3 million in two new advances of equal principal with embedded put features to enhance balance sheet flexibility. The transaction reduced the weighted average all-in borrowing cost from 4.27% to 3.47%, generating approximately $40 thousand in monthly interest expense savings while preserving appropriate term funding and call protection. Borrowings at March 31, 2026 were $59.8 million, with a weighted average rate and term of 3.49% and 54 months, respectively. At March 31, 2026 and December 31, 2025, the Company had $59.8 million (net of $470 thousand deferred prepayment penalty) and $100.7 million, respectively, of term FHLB advances outstanding. The Company had no FHLB overnight borrowings outstanding at March 31, 2026 and December 31, 2025. The Company had no borrowings outstanding under lines of credit with correspondent banks at March 31, 2026 and December 31, 2025. Stockholders’ equity was $201.4 million at March 31, 2026 as compared to $200.3 million at December 31, 2025. Retained earnings increased by $1.1 million due primarily to net income of $1.9 million for the quarter ended March 31, 2026, which was offset by $0.7 million of dividends declared. The accumulated other comprehensive loss at March 31, 2026 was 0.33% of total equity and was comprised of a $0.4 million after tax net unrealized loss on the investment portfolio and a $0.2 million after tax net unrealized loss on derivatives. Book value per share (including Series A preferred shares) increased to $27.11 at March 31, 2026 from $27.02 at December 31, 2025. Tangible book value per share (including Series A preferred shares) increased to $24.50 at March 31, 2026 from $24.41 at December 31, 2025. Loan Portfolio The Bank’s loan portfolio was $1.99 billion at March 31, 2026 and $2.00 billion at December 31, 2025. At March 31, 2026, the Company’s residential loan portfolio (including home equity) amounted to $764.1 million, with an average loan balance of $491 thousand and a weighted average loan-to-value ratio of 56%. Commercial real estate (including construction) and multifamily loans totaled $1.08 billion at March 31, 2026, with an average loan balance of $1.5 million and a weighted average loan-to-value ratio of 59%. As discussed below, approximately 35% of the multifamily portfolio is subject to rent regulation. The Company’s commercial real estate concentration ratio continues to improve, decreasing to 354% of capital at March 31, 2026 from 362% at December 31, 2025, with loans secured by office space accounting for 2% of the total loan portfolio and totaling $41.5 million at March 31, 2026. The Company’s loan pipeline at March 31, 2026 is approximately $114.7 million, with approximately 58% being niche-residential, SBA and USDA lending opportunities. The Bank originates loans for its portfolio and for sale in the secondary market under a residential flow origination program. During the quarters ended March 31, 2026 and 2025, the Company sold $35.2 million and $18.3 million, respectively, of residential loans under its flow origination program and recorded gains on sale of loans held-for-sale of $0.9 million and $0.4 million, respectively. Residential loan originations were $32 million for the quarter ended March 31, 2026. During the quarters ended March 31, 2026 and 2025, the Company sold approximately $6.3 million and $23.4 million, respectively, in government guaranteed SBA loans and recorded gains on sale of loans held-for-sale of $0.5 million and $1.9 million, respectively. SBA loan originations and gains on sale continue to be lower due to a less favorable economic outlook for many business owners along with the Bank’s ongoing prudent decision to tighten credit. Together, these factors contributed to lower SBA loan volume, approval levels, and related gain-on-sale income. Commercial Real Estate Statistics A significant portion of the Bank’s commercial real estate portfolio consists of loans secured by Multifamily and CRE-Investor owned real estate that are predominantly subject to fixed interest rates for an initial period of 5 years. The Bank’s exposure to Land/Construction loans as of March 31, 2026 is not significant at $11.5 million, all at floating interest rates. As shown below, as of March 31, 2026, 21% of the loan balances in these combined portfolios will either have a rate reset or mature in 2026, with another 55% with rate resets or maturing in 2027. Stabilized Multifamily Pro Forma Stress Results The table below reflects a pro forma stressed evaluation of the Bank’s Multifamily stabilized loan portfolio as of March 31, 2026, using the primary assumption for a revised Debt Service Coverage Ratio (“DSCR”) calculation, for all loans where the current interest rate is below 5.75%. The current balance for these loans is recast at 5.75% with a 30-year amortization. The chart below reflects the impact of these adjustments on the portfolio. The projected loan to value (“LTV”) assumption resets all loans using a 6% cap rate (despite lower current cap rates) and the last reported property net operating income (“NOI”) to determine an implied property valuation and based on the current loan balance, the resultant LTV. As reflected above, only 6 loans totaling $11 million in the multifamily rent stabilized portfolio would have a pro forma DSCR less than 1x while maintaining projected weighted average LTV’s under 100%. This represents 2% of the total multifamily portfolio. The remainder of this portfolio, totaling $180 million, representing 33% of the entire multifamily portfolio, would possess DSCR’s greater than 1x while maintaining a projected weighted average LTV well within our policy guidelines. Additionally, 73% of the stabilized loans and 73% of the entire multifamily portfolio are further secured with personal guarantees from the borrowers. Based on the maturities and rate resets in the previous 12 months, we believe the overall demand for multifamily housing in our market will allow our borrowers to address any adverse impact proactively. The Bank continues to successfully manage multifamily loans with scheduled rate repricing or maturities. Matured loans that qualified for renewal have been retained while others have paid off in full through refinances. The majority of the rate resetting loans remain as performing loans at the new higher interest rate. Rental breakdown of Multifamily portfolio The table below segments our portfolio of loans secured by Multifamily properties based on rental terms and location as of March 31, 2026. As shown below, 65% of the combined portfolio is secured by properties subject to free market rental terms, which is the dominant tenant type. Both the Market Rent and Stabilized Rent segments of our portfolio present very similar average borrower profiles. The portfolio is primarily located in the New York City boroughs of Brooklyn, the Bronx and Queens. Office Property Exposure The Bank’s exposure to the Office market is not significant. Loans secured by office space accounted for 2% of the total loan portfolio at March 31, 2026, with a total balance of $41.5 million, of which less than 1% is located in Manhattan. The pool has a 2.41x weighted average DSCR and a 54% weighted average LTV. Asset Quality and Allowance for Credit Losses At March 31, 2026, the Bank reported $24.5 million in non-performing loans, or $17.7 million net of $6.8 million that is government guaranteed by the SBA, compared to non-performing loans of $21.6 million, or $17.9 million net of $3.7 million that is government guaranteed by the SBA at December 31, 2025. At March 31, 2026 non-performing loans were 1.23% of total loans outstanding versus 1.08% at December 31, 2025. Excluding the guaranteed portion, non-performing loans were 0.89% of total loans outstanding at March 31, 2026 versus 0.90% at December 31, 2025. During the first quarter of 2026, the Bank recorded a provision for credit losses of $530 thousand (including a $30 thousand provision for credit losses on unfunded commitments). The allowance for credit losses was $19.1 million at March 31, 2026 versus $18.7 million at December 31, 2025. The allowance for credit losses as a percentage of total loans was 0.96% at March 31, 2026 and 0.93% at December 31, 2025. Net Interest Margin The Bank’s net interest margin increased to 2.96% for the quarter ended March 31, 2026 compared to 2.68% in the quarter ended March 31, 2025. Excluding interest expense of $100 thousand resulting from the temporary carrying of multiple subordinated debt issuances, as discussed above, the Bank’s net interest margin was 2.98% for the quarter ended March 31, 2026. About Hanover Community Bank and Hanover Bancorp, Inc. Hanover Bancorp, Inc. (NASDAQ: HNVR), is the bank holding company for Hanover Community Bank, a community commercial bank focusing on highly personalized and efficient services and products responsive to client needs. Management and the Board of Directors are comprised of a select group of successful local businesspeople who are committed to the success of the Bank by knowing and understanding the metro-New York area’s financial needs and opportunities. Backed by state-of-the-art technology, Hanover offers a full range of financial services. Hanover offers a complete suite of consumer, commercial, and municipal banking products and services, including multifamily and commercial mortgages, residential loans, business loans and lines of credit. Hanover also offers its customers access to 24-hour ATM service with no fees attached, free checking with interest, telephone banking, advanced technologies in mobile and internet banking for our consumer and business customers, safe deposit boxes and much more. The Company’s corporate administrative office is located in Mineola, New York where it also operates a full-service branch office along with additional branch locations in Garden City Park, Hauppauge, Port Jefferson, Forest Hills, Flushing, Sunset Park, Rockefeller Center and Bowery, New York, and Freehold, New Jersey. Hanover Community Bank is a member of the Federal Deposit Insurance Corporation and is an Equal Housing/Equal Opportunity Lender. For further information, call (516) 548-8500 or visit the Bank’s website at www.hanoverbank.com. Non-GAAP Disclosure This discussion, including the financial statements attached thereto, includes non-GAAP financial measures which include the Company’s adjusted net income, adjusted basic and diluted earnings per share, adjusted return on average assets, adjusted return on average equity, pre-provision net revenue (“PPNR”), PPNR return on average assets, tangible common equity (“TCE”) ratio, TCE, tangible assets, tangible book value per share, return on average tangible equity and efficiency ratio. A non-GAAP financial measure is a numerical measure of historical or future performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes that the presentation of non-GAAP financial measures provides both management and investors with a greater understanding of the Company’s operating results and trends in addition to the results measured in accordance with GAAP and provides greater comparability across time periods. While management uses non-GAAP financial measures in its analysis of the Company’s performance, this information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP. The Company’s non-GAAP financial measures may not be comparable to similarly titled measures used by other financial institutions. With respect to the calculations of and reconciliations of adjusted net income, PPNR, TCE, tangible assets, TCE ratio and tangible book value per share, reconciliations to the most comparable U.S. GAAP measures are provided in the tables that follow. Forward-Looking Statements This release may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and may be identified by the use of such words as "may," "believe," "expect," "anticipate," "should," "plan," "estimate," "predict," "continue," and "potential" or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of Hanover Bancorp, Inc. Any or all of the forward-looking statements in this release and in any other public statements made by Hanover Bancorp, Inc. may turn out to be incorrect as a result of inaccurate assumptions that Hanover Bancorp, Inc. might make or by known or unknown risks and uncertainties. There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) the impact of a pandemic or other health crises and the government’s response to such pandemic or crises on our operations as well as those of our customers and on the economy generally and in our market area specifically, (2) competitive pressures among depository institutions may increase significantly; (3) changes in the interest rate environment may reduce interest margins; (4) loan origination and sale volumes, charge-offs and credit loss provisions may vary substantially from period to period; (5) general economic conditions may be less favorable than expected; (6) political developments, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (7) legislative or regulatory changes or actions may adversely affect the businesses in which Hanover Bancorp, Inc. is engaged; (8) the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts; (9) changing political conditions and the outcome of federal, state, and local elections and the resulting economic and other impact on the areas in which we conduct business; (10) changes and trends in the securities markets may adversely impact Hanover Bancorp, Inc.; (11) a delayed or incomplete resolution of regulatory issues could adversely impact our planning; (12) difficulties in integrating any businesses that we may acquire, which may increase our expenses and delay the achievement of any benefits that we may expect from such acquisitions; (13) the impact of the strategic credit cleanup that we implemented during the fourth quarter of 2025 and the wholesale funding restructuring we implemented during the first quarter of 2026; (14) the impact of reputation risk created by the developments discussed above on such matters as business generation and retention, funding and liquidity could be significant; and (15) the outcome of any future regulatory and legal investigations and proceedings may not be anticipated. Further information on other factors that could affect the financial results of Hanover Bancorp, Inc. are included in our Annual Report on Form 10-K under Item 1A - Risk Factors, as updated by our subsequent filings with the Securities and Exchange Commission. Consequently, no forward-looking statement can be guaranteed. Hanover Bancorp, Inc. does not intend to update any of the forward-looking statements after the date of this release or to conform these statements to actual events. Investor and Press Contact: Lance P. Burke Chief Financial Officer (516) 548-8500

Fourth Quarter Performance Highlights Net Income: Net income for the quarter ended December 31, 2025 totaled $33 thousand (after giving effect to a $6.1 million provision for credit losses), versus $3.5 million (after giving effect to a $1.3 million provision for credit losses) for the prior linked quarter and $3.9 million (after giving effect to a $400 thousand provision for credit losses) for the quarter ended December 31, 2024. Pre-Provision Net Revenue: Pre-provision net revenue (non-GAAP) was $6.2 million or 1.08% of average assets for the quarter ended December 31, 2025, which was the highest level since the fourth quarter of 2022, versus $6.0 million or 1.05% of average assets in the prior linked quarter and $5.6 million or 1.00% of average assets in the fourth quarter of 2024. Net Interest Income: Net interest income was $15.8 million (inclusive of a $400 thousand accrued interest reversal related to a C&I loan placed on nonaccrual) for the quarter ended December 31, 2025, an increase of $0.6 million, or 3.99% from the quarter ended September 30, 2025 and $2.0 million, or 14.64%, from the quarter ended December 31, 2024. Net Interest Margin Expansion: The Company’s net interest margin for the quarter ended December 31, 2025 increased to 2.84% from 2.74% for the quarter ended September 30, 2025 (inclusive of a 7 basis point reduction related to the aforementioned C&I loan) and 2.53% in the quarter ended December 31, 2024. Continued Expense Management: The Company continues to focus on expense management and as a result, the operating efficiency ratio improved to 66.46% in the quarter ended December 31, 2025, which was the lowest level since the first quarter of 2024, versus 66.71% in the prior linked quarter and 68.91% in the fourth quarter of 2024. Deposit Growth: Total deposits increased $53.6 million or 2.71% from September 30, 2025 and $74.1 million or 3.79% from December 31, 2024. Demand deposits increased $14.8 million, or 6.35% from September 30, 2025 and $36.1 million, or 17.07%, from December 31, 2024, driven by the success of our C&I business banking relationships, which improved the loan to deposit ratio to 99% at December 31, 2025. Loan Diversification Strategy: The Company continues to actively manage its Multifamily and Commercial Real Estate portfolios which resulted in a reduction in the commercial real estate concentration ratio to 360% of capital at December 31, 2025 from 385% at December 31, 2024. The Company will selectively explore Commercial Real Estate opportunities with an emphasis on relationship based Commercial Real Estate lending. Asset Quality Enhancement: During the quarter ended December 31, 2025, the Company initiated a strategic credit cleanup and removed $9.6 million of non-performing loans (“NPLs”) from the balance sheet. Through proactive and focused NPL resolution, we have improved our credit risk profile with a combination of charge-offs and loan sales. Strong Liquidity Position: At December 31, 2025, undrawn liquidity sources, which include cash and unencumbered securities and secured and unsecured funding capacity, totaled $776.9 million, or approximately 255% of uninsured deposit balances. Insured and collateralized deposits, which include municipal deposits, accounted for approximately 85% of total deposits at December 31, 2025. Share Repurchases: For the quarter ended December 31, 2025, the Company repurchased 56,711 shares of its common stock, which represented approximately 0.8% of shares outstanding at the beginning of the period, at a weighted average price of $22.60 per share. The Company may repurchase up to 366,050 shares of its common stock through the share repurchase program. As of December 31, 2025, there were 284,075 shares remaining to be purchased. Quarterly Cash Dividend: The Company’s Board of Directors approved a $0.10 per share cash dividend on both common and Series A preferred shares payable on February 26, 2026 to stockholders of record on February 12, 2026. Further Long Island Expansion: It is expected that the Company will once again expand its geographic footprint with the opening of a full-service branch in a state-of-the-art facility in downtown Riverhead, New York. Business development staff have already joined the Company in anticipation of the opening of this location. Subject to regulatory approvals, the Bank expects to open the branch later this year. A temporary office location in Riverhead will be operational by the end of the first quarter of 2026. MINEOLA, N.Y., Jan. 29, 2026 (GLOBE NEWSWIRE) -- Hanover Bancorp, Inc. (“Hanover” or “the Company” – NASDAQ: HNVR), the holding company for Hanover Community Bank (“the Bank”), today reported results for the quarter and year ended December 31, 2025 and the declaration of a $0.10 per share cash dividend on both common and Series A preferred shares payable on February 26, 2026 to stockholders of record on February 12, 2026. Earnings Summary for the Quarter Ended December 31, 2025 The Company reported net income for the quarter ended December 31, 2025 of $33 thousand (after giving effect to a $6.1 million provision for credit losses) versus $3.9 million (after giving effect to a $400 thousand provision for credit losses) for the quarter ended December 31, 2024. The decrease in net income recorded in the fourth quarter of 2025 from the comparable 2024 quarter resulted from an increase in provision for credit losses and a decrease in non-interest income, consisting primarily of gain on sale of loans held-for-sale. These were partially offset by an increase in net interest income. Net interest income was $15.8 million for the quarter ended December 31, 2025 (inclusive of a $400 thousand accrued interest reversal related to a C&I nonaccrual loan), an increase of $2.0 million, or 14.64% from the comparable 2024 quarter. This increase was due to improvement of the Company’s net interest margin to 2.84% in the 2025 quarter from 2.53% in the comparable 2024 quarter. The cost of interest-bearing liabilities decreased to 3.67% in the 2025 quarter from 4.24% in the comparable 2024 quarter, a decrease of 57 basis points. This decrease was partially offset by a 22 basis point decrease in the yield on interest earning assets to 5.84% in the 2025 quarter from 6.06% in the fourth quarter of 2024. Net interest income on a linked quarter basis increased $0.6 million or 3.99%, resulting from a 22 basis point decrease in cost of interest-bearing liabilities, partially offset by a 10 basis point decrease in the yield on interest earning assets. In October 2020, the Company issued $25 million of 10-year fixed-to-floating rate subordinated notes with a coupon rate of 5.00% fixed for the first five years. The Notes may now be redeemed by the Company and have a stated maturity of October 15, 2030, and bear interest until the maturity date or early redemption date at a variable rate equal to the then benchmark rate, which is a Three-Month Term Secured Overnight Financing Rate (SOFR) plus 487.4 basis points. As of December 31, 2025, the variable interest rate was 8.76%. Earnings Summary for the Year Ended December 31, 2025 For the year ended December 31, 2025, the Company reported net income of $7.5 million or $1.00 per diluted share (including Series A preferred shares), versus $12.3 million or $1.66 per diluted share (including Series A preferred shares) a year ago. The Company recorded adjusted (non-GAAP) net income (excluding core system conversion expenses of $2.6 million, net of tax) of $10.1 million or $1.35 per diluted share in the year ended December 31, 2025, versus adjusted (non-GAAP) net income (excluding severance and retirement expenses of $0.2 million, net of tax) of $12.5 million or $1.68 per diluted share a year ago. Returns on average assets, average stockholders’ equity and average tangible equity were 0.33%, 3.73% and 4.13%, respectively, for the year ended December 31, 2025, versus 0.55%, 6.45% and 7.18%, respectively, a year ago. Adjusted (non-GAAP) returns, exclusive of core system conversion expenses on average assets, average stockholders’ equity and average tangible equity were 0.45%, 5.01% and 5.55%, respectively, in the year ended December 31, 2025, versus 0.56%, 6.54% and 7.28%, respectively, in the year ended December 31, 2024, exclusive of severance and retirement expenses for the 2024 period. The decrease in net income recorded for the year ended December 31, 2025 from the comparable 2024 period is due to an increase in provision for credit losses, a decrease in non-interest income, consisting primarily of gain on sale of loans held-for-sale and an increase in non-interest expenses, particularly compensation and benefits expense and the one-time core system conversion expenses. These were partially offset by an increase in net interest income. The increase in compensation and benefits expense for the year ended December 31, 2025 versus the comparable 2024 period was primarily related to additional headcount to staff the new Port Jefferson branch and expansion of the C&I lending vertical and lower deferred loan origination costs partially offset by lower incentive compensation expense resulting from reduced lending activity. The Company’s effective tax rate increased to 24.8% for the year ended December 31, 2025 from 24.6% in the comparable 2024 period. Net interest income was $60.5 million for the year ended December 31, 2025, an increase of $7.4 million, or 13.91% from the comparable 2024 period, due to the improvement of the Company’s net interest margin to 2.75% in 2025 from 2.44% in 2024. The cost of interest-bearing liabilities decreased to 3.88% in 2025 from 4.40% in 2024, a decrease of 52 basis points. This decrease was partially offset by an 18 basis points decrease in the yield on interest earning assets to 5.94% in 2025 from 6.12% in 2024. Michael P. Puorro, Chairman and Chief Executive Officer, commented on the Company’s quarterly results: “Our fourth quarter core performance, as evidenced by our steadily increasing NIM, expanding commercial deposit base, diversifying verticals and strong Pre-Provision Net Revenue of $6.2 million, underscored the strength of our growing opportunity. With the decision in the fourth quarter to address the impact of certain challenging credits through proactive and focused NPL resolution, we have positioned the Bank for what we believe will be sustained performance in 2026.” Mr. Puorro stated “strong loan pipelines, opportunistic relationship-based CRE lending in and around Long Island, while continuing to pro-actively manage our concentration ratio and expanding our commercial branch footprint all point to Hanover Bank as the bank of choice for business owners across Long Island and the broader New York Metro area. We are excited about capitalizing on growth opportunities in our local marketplace, which has become widely underserved due to significant consolidation of locally based commercial financial institutions. We look forward to the positive impacts of continuing our execution on increasing local market share and the potential benefits of a liability sensitive balance sheet and an improved yield curve.” Balance Sheet Highlights Total assets were $2.38 billion at December 31, 2025 versus $2.31 billion at December 31, 2024. Total securities available for sale (“AFS”) at December 31, 2025 were $99.6 million, an increase of $15.8 million from December 31, 2024, primarily driven by growth in collateralized mortgage obligations and corporate bonds. During the three months ended December 31, 2025, a total of $13.5 million AFS securities were purchased and $7.6 million were sold at a gain of $215 thousand. Total deposits were $2.03 billion at December 31, 2025 versus $1.95 billion at December 31, 2024. Total deposits increased $74.1 million, or 3.79%, from December 31, 2024. Demand deposits increased $36.1 million, or 17.07%, from December 31, 2024. Our loan to deposit ratio improved to 99% at December 31, 2025 from 102% at December 31, 2024. On a linked quarter basis, total deposits increased $53.6 million or 2.71%, from September 30, 2025. Borrowings at December 31, 2025 were $100.7 million, with a weighted average rate and term of 4.36% and 12 months, respectively. At December 31, 2025 and 2024, the Company had $100.7 million and $107.8 million, respectively, of term FHLB advances outstanding. The Company had no FHLB overnight borrowings outstanding at December 31, 2025 and 2024. The Company had no borrowings outstanding under lines of credit with correspondent banks at December 31, 2025 and 2024. Stockholders’ equity was $200.3 million at December 31, 2025 as compared to $196.6 million at December 31, 2024. Retained earnings increased by $4.5 million due primarily to net income of $7.5 million for the year ended December 31, 2025, which was offset by $3.0 million of dividends declared. The accumulated other comprehensive loss at December 31, 2025 was 0.34% of total equity and was comprised of a $0.2 million after tax net unrealized loss on the investment portfolio and a $0.5 million after tax net unrealized loss on derivatives. During the year ended December 31, 2025, the Company repurchased 81,975 shares of its common stock at an aggregate cost of $1.8 million. As of December 31, 2025, 284,075 shares remained available for repurchase under the Company’s stock repurchase program. Book value per share (including Series A preferred shares) increased to $27.02 at December 31, 2025 from $26.48 at December 31, 2024. Tangible book value per share (including Series A preferred shares) increased to $24.41 at December 31, 2025 from $23.86 at December 31, 2024. Loan Portfolio For the year ended December 31, 2025, the Bank’s loan portfolio increased $15.2 million to $2.00 billion from December 31, 2024. On a linked quarter basis, loans increased $12.1 million. At December 31, 2025, the Company’s residential loan portfolio (including home equity) amounted to $777.0 million, with an average loan balance of $491 thousand and a weighted average loan-to-value ratio of 56%. Commercial real estate (including construction) and multifamily loans totaled $1.08 billion at December 31, 2025, with an average loan balance of $1.5 million and a weighted average loan-to-value ratio of 59%. As discussed below, approximately 36% of the multifamily portfolio is subject to rent regulation. The Company’s commercial real estate concentration ratio continues to improve, decreasing to 360% of capital at December 31, 2025 from 385% at December 31, 2024, with loans secured by office space accounting for 2.48% of the total loan portfolio and totaling $49.6 million at December 31, 2025. The Company’s loan pipeline at December 31, 2025 is approximately $151.6 million, with approximately 68% being niche-residential, SBA and USDA lending opportunities. The Bank originates loans for its portfolio and for sale in the secondary market under a residential flow origination program. During the quarters ended December 31, 2025 and 2024, the Company sold $28.9 million and $19.1 million, respectively, of residential loans under its flow origination program and recorded gains on sale of loans held-for-sale of $0.6 million and $0.5 million, respectively. Residential loan originations were $81 million and $246 million for the quarter and year ended December 31, 2025, respectively, representing the highest origination levels since 2019. During the quarters ended December 31, 2025 and 2024, the Company sold approximately $6.0 million and $30.9 million, respectively, in government guaranteed SBA loans and recorded gains on sale of loans held-for-sale of $0.6 million and $2.5 million, respectively. SBA loan originations and gains on sale continue to be lower due to a multitude of factors. High interest rates, changes to SBA standard operating procedures, a less favorable economic outlook for many business owners, the Bank’s prudent decision to tighten credit in 2025 and the government shutdown in the fourth quarter all adversely impacted the volume and approval of SBA loans and, therefore, gain on sale income. The Bank concluded 2025 with C&I loan originations of approximately $26.1 million in the fourth quarter and $95.3 million for the year. Based on its existing pipeline, the Bank expects C&I lending and deposit activity to grow in 2026. Commercial Real Estate Statistics A significant portion of the Bank’s commercial real estate portfolio consists of loans secured by Multifamily and CRE-Investor owned real estate that are predominantly subject to fixed interest rates for an initial period of 5 years. The Bank’s exposure to Land/Construction loans as of December 31, 2025 is not significant at $11.1 million, all at floating interest rates. As shown below, as of December 31, 2025, 25% of the loan balances in these combined portfolios will either have a rate reset or mature in 2026, with another 56% with rate resets or maturing in 2027. Stabilized Multifamily Pro Forma Stress Results The table below reflects a proforma stressed evaluation of the Bank’s Multifamily stabilized loan portfolio as of December 31, 2025, using the primary assumption for a revised Debt Service Coverage Ratio (“DSCR”) calculation, for all loans where the current interest rate is below 6%. The current balance for these loans is recast at 5.75% (despite lower current market rates) with a 30-year amortization. The chart below reflects the impact of these adjustments on the portfolio. The projected loan to value (“LTV”) assumption resets all loans using a 6% cap rate (despite lower current cap rates) and the last reported property net operating income (“NOI”) to determine an implied property valuation and based on the current loan balance the resultant LTV. As reflected above, the results show approximately 3%, or 9 loans totaling $14 million of the total multifamily portfolio would have proforma DSCR’s less than 1x while maintaining projected weighted average LTV’s under 100%. Approximately 97% or 89 loans totaling $179 million would possess DSCR’s greater than 1x while maintaining a projected weighted average LTV well within our policy guidelines. Additionally, 74% of the stabilized loans and 73% of the entire multifamily portfolio are further secured with personal guarantees from the borrowers. Based on the maturities and rate resets in the previous 12 months, we believe the overall demand for multifamily housing in our market will allow our borrowers to address any adverse impact proactively. Of the previous 12 months maturities and rate resets, 22% of the loan pool successfully refinanced with other institutions and the balance remained with the Bank. Rental breakdown of Multifamily portfolio The table below segments our portfolio of loans secured by Multifamily properties based on rental terms and location as of December 31, 2025. As shown below, 64% of the combined portfolio is secured by properties subject to free market rental terms, which is the dominant tenant type. Both the Market Rent and Stabilized Rent segments of our portfolio present very similar average borrower profiles. The portfolio is primarily located in the New York City boroughs of Brooklyn, the Bronx and Queens. Office Property Exposure The Bank’s exposure to the Office market is not significant. Loans secured by office space accounted for 2.48% of the total loan portfolio at December 31, 2025, with a total balance of $49.6 million, of which less than 1% is located in Manhattan. The pool has a 2.30x weighted average DSCR, a 52% weighted average LTV and less than $350,000 of exposure in Manhattan. Asset Quality and Allowance for Credit Losses At December 31, 2025, the Bank reported $21.6 million in non-performing loans, or $17.9 million net of $3.7 million that is government guaranteed by the SBA, compared to gross non-performing loans of $17.2 million at September 30, 2025, and $16.4 million at December 31, 2024. At December 31, 2025 non-performing loans were 1.08% of total loans outstanding versus 0.82% at December 31, 2024. Excluding the guaranteed portion, non-performing loans were 0.90% of total loans outstanding at December 31, 2025 versus 0.82% at December 31, 2024. During the quarter ended December 31, 2025, the Company initiated a strategic credit cleanup and recorded net charge-offs of $9.6 million. The $9.6 million consisted of a $4.0 million partial charge-off on a C&I loan that had deteriorated to non-performing status during the quarter. This loan is to a borrower whose business has been negatively impacted by tariffs and other economic challenges. In conjunction with the charge-off, a $1.0 million specific reserve has been established for this loan. The remaining $5.6 million was comprised of full and partial charge-offs on non-performing loans which had previously established specific reserves of $3.6 million. Of the $5.6 million charge-off, $709 thousand related to the sale of $5.0 million of one- to four-family residential non-performing loans. During the fourth quarter of 2025, the Bank recorded a provision for credit losses of $6.1 million (including a $175 thousand provision for credit losses on unfunded commitments). The current quarter’s provision was largely impacted by the aforementioned $9.6 million in net charge-offs and $1.0 million specific reserve. The December 31, 2025 allowance for credit losses was $18.7 million versus $22.4 million at September 30, 2025 and $22.8 million at December 31, 2024. The allowance for credit losses as a percentage of total loans was 0.93% at December 31, 2025, 1.12% at September 30, 2025 and 1.15% at December 31, 2024. Net Interest Margin The Bank’s net interest margin increased to 2.84% for the quarter ended December 31, 2025 compared to 2.53% in the quarter ended December 31, 2024. Reversal of accrued interest income on a C&I nonaccrual loan reduced the net interest margin by 7 basis points for the quarter ended December 31, 2025. About Hanover Community Bank and Hanover Bancorp, Inc. Hanover Bancorp, Inc. (NASDAQ: HNVR), is the bank holding company for Hanover Community Bank, a community commercial bank focusing on highly personalized and efficient services and products responsive to client needs. Management and the Board of Directors are comprised of a select group of successful local businesspeople who are committed to the success of the Bank by knowing and understanding the metro-New York area’s financial needs and opportunities. Backed by state-of-the-art technology, Hanover offers a full range of financial services. Hanover offers a complete suite of consumer, commercial, and municipal banking products and services, including multifamily and commercial mortgages, residential loans, business loans and lines of credit. Hanover also offers its customers access to 24-hour ATM service with no fees attached, free checking with interest, telephone banking, advanced technologies in mobile and internet banking for our consumer and business customers, safe deposit boxes and much more. The Company’s corporate administrative office is located in Mineola, New York where it also operates a full-service branch office along with additional branch locations in Garden City Park, Hauppauge, Port Jefferson, Forest Hills, Flushing, Sunset Park, Rockefeller Center and Bowery, New York, and Freehold, New Jersey. Hanover Community Bank is a member of the Federal Deposit Insurance Corporation and is an Equal Housing/Equal Opportunity Lender. For further information, call (516) 548-8500 or visit the Bank’s website at www.hanoverbank.com. Non-GAAP Disclosure This discussion, including the financial statements attached thereto, includes non-GAAP financial measures which include the Company’s adjusted net income, adjusted basic and diluted earnings per share, adjusted return on average assets, adjusted return on average equity, pre-provision net revenue (“PPNR”), PPNR return on average assets, tangible common equity (“TCE”) ratio, TCE, tangible assets, tangible book value per share, return on average tangible equity and efficiency ratio. A non-GAAP financial measure is a numerical measure of historical or future performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes that the presentation of non-GAAP financial measures provides both management and investors with a greater understanding of the Company’s operating results and trends in addition to the results measured in accordance with GAAP and provides greater comparability across time periods. While management uses non-GAAP financial measures in its analysis of the Company’s performance, this information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP. The Company’s non-GAAP financial measures may not be comparable to similarly titled measures used by other financial institutions. With respect to the calculations of and reconciliations of adjusted net income, PPNR, TCE, tangible assets, TCE ratio and tangible book value per share, reconciliations to the most comparable U.S. GAAP measures are provided in the tables that follow. Forward-Looking Statements This release may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and may be identified by the use of such words as "may," "believe," "expect," "anticipate," "should," "plan," "estimate," "predict," "continue," and "potential" or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of Hanover Bancorp, Inc. Any or all of the forward-looking statements in this release and in any other public statements made by Hanover Bancorp, Inc. may turn out to be incorrect as a result of inaccurate assumptions that Hanover Bancorp, Inc. might make or by known or unknown risks and uncertainties. There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) the impact of a pandemic or other health crises and the government’s response to such pandemic or crises on our operations as well as those of our customers and on the economy generally and in our market area specifically, (2) competitive pressures among depository institutions may increase significantly; (3) changes in the interest rate environment may reduce interest margins; (4) loan origination and sale volumes, charge-offs and credit loss provisions may vary substantially from period to period; (5) general economic conditions may be less favorable than expected; (6) political developments, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (7) legislative or regulatory changes or actions may adversely affect the businesses in which Hanover Bancorp, Inc. is engaged; (8) the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts; (9) changing political conditions and the outcome of federal, state, and local elections and the resulting economic and other impact on the areas in which we conduct business; (10) changes and trends in the securities markets may adversely impact Hanover Bancorp, Inc.; (11) a delayed or incomplete resolution of regulatory issues could adversely impact our planning; (12) difficulties in integrating any businesses that we may acquire, which may increase our expenses and delay the achievement of any benefits that we may expect from such acquisitions; (13) the impact of the strategic credit cleanup that we implemented during the fourth quarter of 2025; (14) the impact of reputation risk created by the developments discussed above on such matters as business generation and retention, funding and liquidity could be significant; and (15) the outcome of any future regulatory and legal investigations and proceedings may not be anticipated. Further information on other factors that could affect the financial results of Hanover Bancorp, Inc. are included in our Annual Report on Form 10-K under Item 1A - Risk Factors, as updated by our subsequent filings with the Securities and Exchange Commission. Consequently, no forward-looking statement can be guaranteed. Hanover Bancorp, Inc. does not intend to update any of the forward-looking statements after the date of this release or to conform these statements to actual events. Investor and Press Contact: Lance P. Burke Chief Financial Officer (516) 548-8500

First Mid Bancshares (FMBH) came out with quarterly earnings of $1.06 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.87 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +0.24%. A quarter ago, it was expected that this bank holding company would post earnings of $0.96 per share when it actually produced earnings of $0.97, delivering a surprise of +1.04%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. First Mid Bancshares, which belongs to the Zacks Banks - Northeast industry, posted revenues of $88.22 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 3.54%. This compares to year-ago revenues of $85.31 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. First Mid Bancshares shares have added about 7.9% since the beginning of the year versus the S&P 500's gain of 1.9%. While First Mid Bancshares has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for First Mid Bancshares was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.10 on $92.5 million in revenues for the coming quarter and $4.45 on $414.25 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Hanover Bancorp, Inc. (HNVR), has yet to report results for the quarter ended December 2025. This company is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of -1.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Hanover Bancorp, Inc.'s revenues are expected to be $19.2 million, up 6.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Mid Bancshares, Inc. (FMBH) : Free Stock Analysis Report Hanover Bancorp, Inc. (HNVR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Hanover Bancorp, Inc. (HNVR) came out with quarterly earnings of $0.47 per share, missing the Zacks Consensus Estimate of $0.49 per share. This compares to earnings of $0.5 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -4.08%. A quarter ago, it was expected that this company would post earnings of $0.57 per share when it actually produced earnings of $0.33, delivering a surprise of -42.11%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Hanover Bancorp, which belongs to the Zacks Banks - Northeast industry, posted revenues of $18.01 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 5.72%. This compares to year-ago revenues of $17.06 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Hanover Bancorp shares have lost about 12.5% since the beginning of the year versus the S&P 500's gain of 17.2%. While Hanover Bancorp has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Hanover Bancorp was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.55 on $19.7 million in revenues for the coming quarter and $1.92 on $75.5 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Finance sector, BTCS Inc. (BTCS), is yet to report results for the quarter ended September 2025. This company is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents a year-over-year change of +80%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. BTCS Inc.'s revenues are expected to be $3 million, up 305.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hanover Bancorp, Inc. (HNVR) : Free Stock Analysis Report BTCS Inc. (BTCS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Third Quarter Performance Highlights Net Income: Net income for the quarter ended September 30, 2025 totaled $3.5 million or $0.47 per diluted share (including Series A preferred shares), versus $2.4 million or $0.33 per diluted share (including Series A preferred shares) in the prior linked quarter. Pre-Provision Net Revenue: Pre-provision net revenue was $6.0 million resulting in a return on average assets of 1.05% for the quarter ended September 30, 2025 which was the highest level since the first quarter of 2023, versus $5.7 million and 1.04% in the prior linked quarter and $4.8 million and 0.85% in the third quarter of 2024. Net Interest Income: Net interest income was $15.2 million for the quarter ended September 30, 2025, an increase of $0.4 million, or 2.89% from the quarter ended June 30, 2025 and $2.1 million, or 16.19%, from the quarter ended September 30, 2024. Net Interest Margin Expansion: The Company’s net interest margin during the quarter ended September 30, 2025 increased to 2.74% from 2.37% in the quarter ended September 30, 2024. The net interest margin for the month ended September 30, 2025 was 2.83%. Deposit Growth: Total deposits increased $20.5 million or 1.05% from December 31, 2024 and $23.5 million or 1.21% from June 30, 2025. Demand deposits increased $21.3 million, or 10.08%, from December 31, 2024, underscoring the success of our C&I and Municipal banking verticals. Strong Liquidity Position: At September 30, 2025, undrawn liquidity sources, which include cash and unencumbered securities and secured and unsecured funding capacity, totaled $712.2 million, or approximately 253% of uninsured deposit balances. Insured and collateralized deposits, which include municipal deposits, accounted for approximately 86% of total deposits at September 30, 2025. Loan Growth: Loans totaled $1.99 billion, a net increase of $22.2 million or 4.52% annualized from June 30, 2025, primarily driven by growth in niche-residential and conventional C&I. Loan Diversification Strategy: The Company continues to actively manage its Multi-Family and Commercial Real Estate portfolios which resulted in a reduction in the commercial real estate concentration ratio to 362% of capital at September 30, 2025 from 385% at December 31, 2024 and 397% at September 30, 2024. The Company will selectively explore Commercial Real Estate opportunities with an emphasis on relationship based Commercial Real Estate lending. Book Value Per Share: Book value per share (including Series A preferred shares) increased to $27.03 at September 30, 2025 from $26.52 at June 30, 2025 and $26.48 at December 31, 2024. Tangible book value per share (including Series A preferred shares) increased to $24.43 at September 30, 2025 from $23.94 at June 30, 2025 and $23.86 at December 31, 2024. Quarterly Cash Dividend: The Company’s Board of Directors approved a $0.10 per share cash dividend on both common and Series A preferred shares payable on November 20, 2025 to stockholders of record on November 13, 2025. MINEOLA, N.Y., Oct. 30, 2025 (GLOBE NEWSWIRE) -- Hanover Bancorp, Inc. (“Hanover” or “the Company” – NASDAQ: HNVR), the holding company for Hanover Community Bank (“the Bank”), today reported results for the quarter ended September 30, 2025 and the declaration of a $0.10 per share cash dividend on both common and Series A preferred shares payable on November 20, 2025 to stockholders of record on November 13, 2025. Earnings Summary for the Quarter Ended September 30, 2025 The Company reported net income for the quarter ended September 30, 2025 of $3.5 million or $0.47 per diluted share (including Series A preferred shares), versus $3.5 million or $0.48 per diluted share (including Series A preferred shares) in the quarter ended September 30, 2024. Returns on average assets, average stockholders’ equity and average tangible equity were 0.61%, 6.90% and 7.63%, respectively, for the quarter ended September 30, 2025, versus 0.62%, 7.35% and 8.19%, respectively, for the comparable quarter of 2024. While net interest income increased during the quarter ended September 30, 2025 compared to the quarter ended September 30, 2024, this was partially offset by the decrease in non-interest income, particularly gain on sale of loans held-for-sale, and an increase in the provision for credit losses. The Company’s effective tax rate was 25.2% in the third quarter of 2025 and 23.4% in the comparable 2024 quarter. We expect a normalized effective tax rate of 25.0% for the remainder of the year. Non-interest expenses for the three months ended September 30, 2025 decreased $0.6 million, or 4.78% from the June 30, 2025 quarter primarily due to decreased incentive compensation expense, lower data processing costs from a recently converted core system and lower professional fees. Net interest income was $15.2 million for the quarter ended September 30, 2025, an increase of $2.1 million, or 16.19% from the comparable 2024 quarter. This increase was due to improvement of the Company’s net interest margin to 2.74% in the 2025 quarter from 2.37% in the comparable 2024 quarter. The cost of interest-bearing liabilities decreased to 3.89% in the 2025 quarter from 4.53% in the comparable 2024 quarter, a decrease of 64 basis points. This decrease was partially offset by a 23 basis point decrease in the yield on interest earning assets to 5.94% in the 2025 quarter from 6.17% in the third quarter of 2024. Net interest income on a linked quarter basis increased $0.4 million or 2.89%, resulting from a 5 basis point decrease in cost of interest-bearing liabilities, partially offset by a 4 basis point decrease on yield on interest earning assets. Earnings Summary for the Nine Months Ended September 30, 2025 For the nine months ended September 30, 2025, the Company reported net income of $7.5 million or $1.00 per diluted share (including Series A preferred shares), versus $8.4 million or $1.14 per diluted share (including Series A preferred shares) in the comparable 2024 nine-month period. The Company recorded adjusted (non-GAAP) net income (excluding core system conversion expenses of $2.6 million, net of tax) of $10.0 million or $1.34 per diluted share in the nine months ended September 30, 2025, versus adjusted (non-GAAP) net income (excluding severance and retirement expenses) of $8.6 million or $1.16 per diluted share in the comparable 2024 nine-month period. Returns on average assets, average stockholders’ equity and average tangible equity were 0.44%, 5.00% and 5.54%, respectively, for the nine months ended September 30, 2025, versus 0.50%, 5.93% and 6.60%, respectively, for the comparable 2024 period. Adjusted (non-GAAP) returns, exclusive of core system conversion expenses on average assets, average stockholders’ equity and average tangible equity were 0.60%, 6.72% and 7.45%, respectively, in the nine months ended September 30, 2025, versus 0.51%, 6.04% and 6.73%, respectively, in the comparable 2024 period, exclusive of severance and retirement expenses for the 2024 period. The decrease in net income recorded for the nine months ended September 30, 2025 from the comparable 2024 period is due to an increase in non-interest expenses, particularly compensation and benefits expense and the one-time core system conversion expenses. These were partially offset by an increase in net interest income and a decrease in provision for credit losses. The increase in compensation and benefits expense for the nine months ended September 30, 2025 versus the comparable 2024 period was primarily related to additional headcount to staff the new Port Jefferson branch and expansion of the C&I lending vertical and lower deferred loan origination costs partially offset by lower incentive compensation expense resulting from reduced lending activity. The Company’s effective tax rate decreased to 24.1% for the nine months ended September 30, 2025 from 24.5% in the comparable 2024 period. Net interest income was $44.6 million for the nine months ended September 30, 2025, an increase of $5.4 million, or 13.65% from the comparable 2024 period, due to the improvement of the Company’s net interest margin to 2.73% in the 2025 period from 2.41% in the comparable 2024 period. The cost of interest-bearing liabilities decreased to 3.95% in the 2025 nine months period from 4.45% in the comparable 2024 period, a decrease of 50 basis points. This decrease was partially offset by a 16 basis point decrease in the yield on interest earning assets to 5.98% in the 2025 period from 6.14% in the comparable 2024 period. The increase in the net interest margin was a result of the late 2024 and recent reductions in the Fed Funds effective rate and the liability sensitive nature of the Bank’s balance sheet. Michael P. Puorro, Chairman and Chief Executive Officer, commented on the Company’s quarterly results: “Our third quarter performance reflects positive notes, including increased Pre-Provision Net Revenue of $6.0 million driven by an increase in net interest income and lower operating expenses. Continuing performance should be positively influenced by further Federal Open Market Committee (“FOMC”) rate decreases and an improved yield curve, positively impacting our liability sensitive balance sheet and potentially increasing lending opportunities. With our continued development of hi-tech branches in key markets, such as Hauppauge, Port Jefferson and others coming soon, supported by local, relationship-based Business Development Officers, we are growing market share in an effort to drive increased shareholder value.” Balance Sheet Highlights Total assets were $2.33 billion at September 30, 2025 versus $2.31 billion at December 31, 2024. Total securities available for sale at September 30, 2025 were $100.0 million, an increase of $16.3 million from December 31, 2024, primarily driven by growth in collateralized mortgage obligations and corporate bonds. Total deposits were $1.97 billion at September 30, 2025 versus $1.95 billion at December 31, 2024. Total deposits increased $20.5 million, or 1.05%, from December 31, 2024. Demand deposits increased $21.3 million, or 10.08%, from December 31, 2024 underscoring the success of our C&I and Municipal banking verticals. Our loan to deposit ratio improved to 101% at September 30, 2025 from 102% at December 31, 2024. The Company had $513.6 million in total municipal deposits at September 30, 2025, at a weighted average rate of 3.47% versus $509.3 million at a weighted average rate of 3.72% at December 31, 2024. The Company’s municipal deposit program is built on long-standing relationships developed in the local marketplace. This core deposit business will continue to provide a stable source of funding for the Company’s lending products at costs lower than those of consumer deposits and market-based borrowings. The Company continues to broaden its municipal deposit base and currently services 42 customer relationships. Total borrowings at September 30, 2025 were $100.7 million, with a weighted average rate and term of 4.36% and 15 months, respectively. At September 30, 2025 and December 31, 2024, the Company had $100.7 million and $107.8 million, respectively, of term FHLB advances outstanding. The Company had no FHLB overnight borrowings outstanding at September 30, 2025 and December 31, 2024. The Company had no borrowings outstanding under lines of credit with correspondent banks at September 30, 2025 and December 31, 2024. Stockholders’ equity was $201.8 million at September 30, 2025 as compared to $196.6 million at December 31, 2024. Retained earnings increased by $5.2 million due primarily to net income of $7.5 million for the nine months ended September 30, 2025, which was offset by $2.3 million of dividends declared. The accumulated other comprehensive loss at September 30, 2025 was 0.39% of total equity and was comprised of a $0.3 million after tax net unrealized loss on the investment portfolio and a $0.5 million after tax net unrealized loss on derivatives. Book value per share (including Series A preferred shares) increased to $27.03 at September 30, 2025 from $26.52 at June 30, 2025 and $26.48 at December 31, 2024. Tangible book value per share (including Series A preferred shares) increased to $24.43 at September 30, 2025 from $23.94 at June 30, 2025 and $23.86 at December 31, 2024. Loan Portfolio For the nine months ended September 30, 2025, the Bank’s loan portfolio increased $3.2 million to $1.99 billion from December 31, 2024. On a linked quarter basis, net loans increased $22.2 million. At September 30, 2025, the Company’s residential loan portfolio (including home equity) amounted to $751.5 million, with an average loan balance of $491 thousand and a weighted average loan-to-value ratio of 57%. Commercial real estate (including construction) and multifamily loans totaled $1.08 billion at September 30, 2025, with an average loan balance of $1.5 million and a weighted average loan-to-value ratio of 59%. As discussed below, approximately 36% of the multifamily portfolio is subject to rent regulation. The Company’s commercial real estate concentration ratio continues to improve, decreasing to 362% of capital at September 30, 2025 from 385% at December 31, 2024 and 397% at September 30, 2024, with loans secured by office space accounting for 2.67% of the total loan portfolio and totaling $53.1 million at September 30, 2025. The Company’s loan pipeline at September 30, 2025 is approximately $178.8 million, with approximately 72% being niche-residential, SBA and USDA lending opportunities. The Bank remains focused on expanding its core verticals and continues to originate loans for its portfolio and for sale in the secondary market under its residential flow origination program. During the quarters ended September 30, 2025 and 2024, the Company sold $21.4 million and $16.5 million, respectively, of residential loans under its flow origination program and recorded gains on sale of loans held-for-sale of $0.5 million and $0.4 million, respectively. During the quarters ended September 30, 2025 and 2024, the Company sold approximately $11.4 million and $27.1 million, respectively, in government guaranteed SBA loans and recorded gains on sale of loans held-for-sale of $0.9 million and $2.4 million, respectively. SBA loan originations and gains on sale were lower than expected due to a confluence of factors. One factor is the impact of the “higher-for-longer” interest rate environment that we believe has both worsened the financial condition of and reduced demand among small business borrowers, resulting in a lower volume of creditworthy customers. Another factor is the negative impact of and uncertainty created by tariffs, which we believe have also dampened loan demand among borrowers in certain industries. A third factor is the Bank’s decision to tighten credit over the course of the last year. Although management continues to believe this to be a prudent measure, it has nonetheless resulted in a lower volume of loan approvals. Taken together these and other factors have adversely impacted SBA loan originations and closings. The Bank concluded the third quarter of 2025 with C&I loan originations of approximately $24.1 million. Based on its existing pipeline, the Bank expects C&I lending and deposit activity to grow as the year progresses. Commercial Real Estate Statistics A significant portion of the Bank’s commercial real estate portfolio consists of loans secured by Multi-Family and CRE-Investor owned real estate that are predominantly subject to fixed interest rates for an initial period of 5 years. The Bank’s exposure to Land/Construction loans as of September 30, 2025 is minor at $5.9 million, all at floating interest rates. As shown below, as of September 30, 2025, 28% of the loan balances in these combined portfolios will either have a rate reset or mature in 2025 and 2026, with another 56% with rate resets or maturing in 2027. Stabilized Multi-Family Pro Forma Stress Results The table below reflects a proforma stressed evaluation of the Bank’s Multifamily stabilized loan portfolio as of September 30, 2025, using the primary assumption for a revised Debt Service Coverage Ratio (“DSCR”) calculation, for all loans where the current interest rate is below 6%. The current balance for these loans is recast at 6% (despite lower current market rates) with a 30-year amortization. The chart below reflects the impact of these adjustments on the portfolio. The projected loan to value (“LTV”) assumption resets all loans using a 6% cap rate (despite lower current cap rates) and the last reported property net operating income (“NOI”) to determine an implied property valuation and based on the current loan balance the resultant LTV. As reflected above, the results show approximately 2.60%, or 9 loans totaling $14 million of the total multi-family portfolio would have proforma DSCR’s less than 1x while maintaining projected weighted average LTV’s under 100%. Approximately 93% or 89 loans totaling $180 million would possess DSCR’s greater than 1x while maintaining a projected weighted average LTV well within our policy guidelines. Additionally, 73% of the stabilized loans and 72% of the entire multi-family are further secured with personal guarantees from the borrowers. Based on the maturities and rate resets in the previous 12 months, we believe the overall demand for multifamily housing in our market will allow our borrowers to address any adverse impact proactively. Of the previous 12 months maturities and rate resets, 27% of the loan pool successfully refinanced with other institutions at market rates similar to those used in the above analysis and the balance remained with the Bank. Rental breakdown of Multi-Family portfolio The table below segments our portfolio of loans secured by Multi-Family properties based on rental terms and location as of September 30, 2025. As shown below, 64% of the combined portfolio is secured by properties subject to free market rental terms, which is the dominant tenant type. Both the Market Rent and Stabilized Rent segments of our portfolio present very similar average borrower profiles. The portfolio is primarily located in the New York City boroughs of Brooklyn, the Bronx and Queens. Office Property Exposure The Bank’s exposure to the Office market is minor. Loans secured by office space accounted for 2.67% of the total loan portfolio at September 30, 2025,with a total balance of $53.1 million, of which less than 1% is located in Manhattan. The pool has a 2.31x weighted average DSCR, a 52% weighted average LTV and less than $350,000 of exposure in Manhattan. Asset Quality and Allowance for Credit Losses At September 30, 2025, the Bank reported $17.2 million in non-performing loans compared to $12.7 million at June 30, 2025, an increase of $4.5 million, and $16.4 million at December 31, 2024, an increase of $0.8 million. Of the $4.5 million increase in nonperforming loans over the linked quarter, $3.1 million is related to residential mortgage loans which are well secured with LTV’s averaging 58%. At September 30, 2025 non-performing loans were 0.86% of total loans outstanding versus 0.82% at December 31, 2024. During the third quarter of 2025, the Bank recorded a provision for credit losses expense of $1.3 million (net of a $50 thousand reduction of provision for credit losses on unfunded commitments). Net charge-offs of $0.6 million were incurred during the quarter. The September 30, 2025 allowance for credit losses was $22.4 million versus $21.6 million at June 30, 2025 and $22.8 million at December 31, 2024. The allowance for credit losses as a percentage of total loans was 1.12% at September 30, 2025, 1.10% at June 30, 2025 and 1.15% at December 31, 2024. Net Interest Margin The Bank’s net interest margin increased to 2.74% for the quarter ended September 30, 2025 compared to 2.37% in the quarter ended September 30, 2024 due to the continuing effects of the late 2024 and recent reductions in the Federal Funds effective rate and the liability sensitive nature of the Bank’s balance sheet. The net interest margin for the month ended September 30, 2025 was 2.83%. About Hanover Community Bank and Hanover Bancorp, Inc. Hanover Bancorp, Inc. (NASDAQ: HNVR), is the bank holding company for Hanover Community Bank, a community commercial bank focusing on highly personalized and efficient services and products responsive to client needs. Management and the Board of Directors are comprised of a select group of successful local businesspeople who are committed to the success of the Bank by knowing and understanding the metro-New York area’s financial needs and opportunities. Backed by state-of-the-art technology, Hanover offers a full range of financial services. Hanover offers a complete suite of consumer, commercial, and municipal banking products and services, including multi-family and commercial mortgages, residential loans, business loans and lines of credit. Hanover also offers its customers access to 24-hour ATM service with no fees attached, free checking with interest, telephone banking, advanced technologies in mobile and internet banking for our consumer and business customers, safe deposit boxes and much more. The Company’s corporate administrative office is located in Mineola, New York where it also operates a full-service branch office along with additional branch locations in Garden City Park, Hauppauge, Port Jefferson, Forest Hills, Flushing, Sunset Park, Rockefeller Center and Chinatown, New York, and Freehold, New Jersey. Hanover Community Bank is a member of the Federal Deposit Insurance Corporation and is an Equal Housing/Equal Opportunity Lender. For further information, call (516) 548-8500 or visit the Bank’s website at www.hanoverbank.com. Non-GAAP Disclosure This discussion, including the financial statements attached thereto, includes non-GAAP financial measures which include the Company’s adjusted net income, adjusted basic and diluted earnings per share, adjusted return on average assets, adjusted return on average equity, tangible common equity (“TCE”) ratio, TCE, tangible assets, tangible book value per share, return on average tangible equity and efficiency ratio. A non-GAAP financial measure is a numerical measure of historical or future performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes that the presentation of non-GAAP financial measures provides both management and investors with a greater understanding of the Company’s operating results and trends in addition to the results measured in accordance with GAAP, and provides greater comparability across time periods. While management uses non-GAAP financial measures in its analysis of the Company’s performance, this information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP. The Company’s non-GAAP financial measures may not be comparable to similarly titled measures used by other financial institutions. With respect to the calculations of and reconciliations of adjusted net income, TCE, tangible assets, TCE ratio and tangible book value per share, reconciliations to the most comparable U.S. GAAP measures are provided in the tables that follow. Forward-Looking Statements This release may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and may be identified by the use of such words as "may," "believe," "expect," "anticipate," "should," "plan," "estimate," "predict," "continue," and "potential" or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of Hanover Bancorp, Inc. Any or all of the forward-looking statements in this release and in any other public statements made by Hanover Bancorp, Inc. may turn out to be incorrect as a result of inaccurate assumptions that Hanover Bancorp, Inc. might make or by known or unknown risks and uncertainties. There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) the impact of a pandemic or other health crises and the government’s response to such pandemic or crises on our operations as well as those of our customers and on the economy generally and in our market area specifically, (2) competitive pressures among depository institutions may increase significantly; (3) changes in the interest rate environment may reduce interest margins; (4) loan origination and sale volumes, charge-offs and credit loss provisions may vary substantially from period to period; (5) general economic conditions may be less favorable than expected; (6) political developments, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (7) legislative or regulatory changes or actions may adversely affect the businesses in which Hanover Bancorp, Inc. is engaged; (8) changes and trends in the securities markets may adversely impact Hanover Bancorp, Inc.; (9) a delayed or incomplete resolution of regulatory issues could adversely impact our planning; (10) difficulties in integrating any businesses that we may acquire, which may increase our expenses and delay the achievement of any benefits that we may expect from such acquisitions; (11) the impact of reputation risk created by the developments discussed above on such matters as business generation and retention, funding and liquidity could be significant; and (12) the outcome of any future regulatory and legal investigations and proceedings may not be anticipated. Further information on other factors that could affect the financial results of Hanover Bancorp, Inc. are included in our Annual Report on Form 10-K under Item 1A - Risk Factors, as updated by our subsequent filings with the Securities and Exchange Commission. Consequently, no forward-looking statement can be guaranteed. Hanover Bancorp, Inc. does not intend to update any of the forward-looking statements after the date of this release or to conform these statements to actual events. Investor and Press Contact: Lance P. Burke Chief Financial Officer (516) 548-8500

Hanover Bancorp, Inc. (HNVR) came out with quarterly earnings of $0.33 per share, missing the Zacks Consensus Estimate of $0.57 per share. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -42.11%. A quarter ago, it was expected that this company would post earnings of $0.51 per share when it actually produced earnings of $0.55, delivering a surprise of +7.84%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Hanover Bancorp, which belongs to the Zacks Banks - Northeast industry, posted revenues of $18.36 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 3.9%. This compares to year-ago revenues of $16.87 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Hanover Bancorp shares have lost about 3.1% since the beginning of the year versus the S&P 500's gain of 7.3%. While Hanover Bancorp has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Hanover Bancorp was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.60 on $19.6 million in revenues for the coming quarter and $2.37 on $77.3 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, CF Bankshares Inc. (CFBK), has yet to report results for the quarter ended June 2025. The results are expected to be released on August 4. This company is expected to post quarterly earnings of $0.72 per share in its upcoming report, which represents a year-over-year change of +176.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. CF Bankshares Inc.'s revenues are expected to be $14.73 million, up 17% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hanover Bancorp, Inc. (HNVR) : Free Stock Analysis Report CF Bankshares Inc. (CFBK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Second Quarter Performance Highlights Net Income: Net income for the quarter ended June 30, 2025 totaled $2.4 million or $0.33 per diluted share (including Series A preferred shares). Pre-Provision Net Revenue: Pre-provision net revenue was $5.7 million resulting in a return on average assets of 1.04% for the quarter ended June 30, 2025 which was the highest level since the first quarter of 2023. Net Interest Income: Net interest income was $14.8 million for the quarter ended June 30, 2025, an increase of $0.2 million, or 1.13% from the quarter ended March 31, 2025 and $1.5 million, or 11.69%, from the quarter ended June 30, 2024. Net Interest Margin Expansion: The Company’s net interest margin during the quarter ended June 30, 2025 increased to 2.76% from 2.68% in the quarter ended March 31, 2025 and 2.46% in the quarter ended June 30, 2024. Demand Deposit Growth: Demand deposits increased $28.1 million, or 13.03%, from March 31, 2025 and $32.0 million, or 15.12%, from December 31, 2024, underscoring the success of our C&I and Municipal banking verticals. Strong Liquidity Position: At June 30, 2025, undrawn liquidity sources, which include cash and unencumbered securities and secured and unsecured funding capacity, totaled $686.5 million, or approximately 274% of uninsured deposit balances. Insured and collateralized deposits, which include municipal deposits, accounted for approximately 87% of total deposits at June 30, 2025. Loan Diversification Strategy: The Company continues to actively manage its Multi-Family and Commercial Real Estate portfolios which resulted in a reduction in the commercial real estate concentration ratio to 368% of capital at June 30, 2025 from 385% at December 31, 2024 and 403% at June 30, 2024. The Company continues to focus loan growth primarily in residential loan products originated for sale to specific buyers in the secondary market, C&I and SBA loans. The Company will selectively explore Commercial Real Estate opportunities with an emphasis on relationship based Commercial Real Estate lending. Asset Quality: At June 30, 2025, the Bank’s asset quality metrics remained solid with non-performing loans totaling $12.7 million, representing 0.64% of the total loan portfolio, and the allowance for credit losses equaling 1.10% of total loans, a decrease from non-performing loans totaling $16.4 million, representing 0.82% of the total loan portfolio, as of December 31, 2024. Port Jefferson Branch: In June 2025, the Company continued its strategic expansion in Suffolk County Long Island with the opening of its tenth branch in Port Jefferson, New York. The Company will continue to be opportunistic in furthering its expansion into the underserved markets of Eastern Long Island. Inclusion in Russell 2000: The Company was added to the Russell 2000 Index in late June 2025. The Russell 2000 Index encompasses the 2,000 largest U.S.-traded stocks by objective, market-capitalization rankings, and style attributes. The Russell Indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. Quarterly Cash Dividend: The Company’s Board of Directors approved a $0.10 per share cash dividend on both common and Series A preferred shares payable on August 13, 2025 to stockholders of record on August 6, 2025. MINEOLA, N.Y., July 23, 2025 (GLOBE NEWSWIRE) -- Hanover Bancorp, Inc. (“Hanover” or “the Company” – NASDAQ: HNVR), the holding company for Hanover Community Bank (“the Bank”), today reported results for the quarter ended June 30, 2025 and the declaration of a $0.10 per share cash dividend on both common and Series A preferred shares payable on August 13, 2025 to stockholders of record on August 6, 2025. Earnings Summary for the Quarter Ended June 30, 2025 The Company reported net income for the quarter ended June 30, 2025 of $2.4 million or $0.33 per diluted share (including Series A preferred shares), versus $0.8 million (after giving effect to an allowance for credit loss (“ACL”) on an individually evaluated loan of $2.5 million and a $1.1 million provision resulting from ongoing enhancements to the current expected credit loss (“CECL”) model) or $0.11 per diluted share (including Series A preferred shares) in the quarter ended June 30, 2024. Returns on average assets, average stockholders’ equity and average tangible equity were 0.44%, 4.93% and 5.46%, respectively, for the quarter ended June 30, 2025, versus 0.15%, 1.77% and 1.97%, respectively, for the comparable quarter of 2024. The increase in net income recorded in the second quarter of 2025 from the comparable 2024 quarter resulted from an increase in net interest income and a decrease in provision for credit losses. These were partially offset by the increase in non-interest expenses, particularly compensation and benefits, and an increase in income tax expense. The increase in compensation and benefits expense in the second quarter of 2025 versus the comparable 2024 quarter was primarily related to the staffing of the newly opened Port Jefferson branch and additions to the C&I Banking teams, partially offset by lower incentive compensation expense resulting from reduced lending activity and other expense reduction initiatives. The Company’s effective tax rate was 27.8% in the second quarter of 2025 and 27.2% in the comparable 2024 quarter. We expect a normalized run rate of 25.0% for the remainder of the year. Net interest income was $14.8 million for the quarter ended June 30, 2025, an increase of $1.5 million, or 11.69% from the comparable 2024 quarter. This increase was due to improvement of the Company’s net interest margin to 2.76% in the 2025 quarter from 2.46% in the comparable 2024 quarter. The cost of interest-bearing liabilities decreased to 3.94% in the 2025 quarter from 4.48% in the comparable 2024 quarter, a decrease of 54 basis points. This decrease was partially offset by a 24 basis point decrease in the yield on interest earning assets to 5.98% in the 2025 quarter from 6.22% in the second quarter of 2024. Net interest income on a linked quarter basis increased $0.2 million or 1.13%, due to an 8 basis point increase in net interest margin resulting from a 7 basis point decrease in cost of interest-bearing liabilities, partially offset by a 3 basis point decrease on yield on interest earning assets. Earnings Summary for the Six Months Ended June 30, 2025 For the six months ended June 30, 2025, the Company reported net income of $4.0 million or $0.53 per diluted share (including Series A preferred shares), versus $4.9 million or $0.66 per diluted share (including Series A preferred shares) in the comparable 2024 six-month period. The Company recorded adjusted (non-GAAP) net income (excluding core system conversion expenses of $2.6 million, net of tax) of $6.5 million or $0.87 per diluted share in the six months ended June 30, 2025, versus net income of $4.9 million or $0.66 per diluted share in the comparable 2024 six-month period (which included no adjustments). Returns on average assets, average stockholders’ equity and average tangible equity were 0.36%, 4.02% and 4.46%, respectively, for the six months ended June 30, 2025, versus 0.44%, 5.20% and 5.80%, respectively, for the comparable 2024 period. Adjusted (non-GAAP) returns, exclusive of core system conversion expenses on average assets, average stockholders’ equity and average tangible equity were 0.59%, 6.63% and 7.35%, respectively, in the six months ended June 30, 2025, versus 0.44%, 5.20% and 5.80%, respectively, in the comparable of 2024 period. The decrease in net income recorded for the six months ended June 30, 2025 from the comparable 2024 period is due to an increase in non-interest expenses, particularly compensation and benefits and the one-time core system conversion expenses. These were partially offset by an increase in net interest income and a decrease in provision for credit losses. The increase in compensation and benefits expense for the six months ended June 30, 2025 versus the comparable 2024 period was primarily related to additional headcount to staff the new Port Jefferson branch and expansion of the C&I lending vertical and lower deferred loan origination costs partially offset by lower incentive compensation expense resulting from reduced lending activity. The Company’s effective tax rate decreased to 23.0% for the six months ended June 30, 2025 from 25.3% in the comparable 2024 period. Net interest income was $29.4 million for the six months ended June 30, 2025, an increase of $3.2 million, or 12.38% from the comparable 2024 period, due to the improvement of the Company’s net interest margin to 2.72% in the 2025 period from 2.43% in the comparable 2024 period. The cost of interest-bearing liabilities decreased to 3.98% in the 2025 six months period from 4.41% in the comparable 2024 period, a decrease of 43 basis points. This decrease was partially offset by a 13 basis point decrease in the yield on interest earning assets to 5.99% in the 2025 period from 6.12% in the comparable 2024 period. The increase in the net interest margin was a result of the late 2024 reductions in the Fed Funds effective rate and the liability sensitive nature of the Bank’s balance sheet. Michael P. Puorro, Chairman and Chief Executive Officer, commented on the Company’s quarterly results: “Our second quarter performance, reflects a number of high notes, including increased Pre-Provision Net Revenue of $5.7 million, strong non-interest bearing deposit growth of $28.1 million, underscoring the success of our C&I and Municipal banking verticals, and continued improvement in our Net Interest Margin. We are extremely pleased with the recent opening of our Port Jefferson branch and will continue to be opportunistic in furthering our expansion into the underserved markets of Eastern Long Island. With our inclusion in the Russell 2000, the continued development of our diversified revenue verticals and liability sensitive balance sheet, we look forward to delivering continued shareholder value and the eventual benefits of a more favorable interest rate environment.” Balance Sheet Highlights Total assets were $2.31 billion at June 30, 2025 and December 31, 2024. Total securities available for sale at June 30, 2025 were $102.6 million, an increase of $18.9 million from December 31, 2024, primarily driven by growth in collateralized mortgage obligations, collateralized loan obligations and corporate bonds. Total deposits were $1.95 billion at June 30, 2025 and December 31, 2024. Total deposits increased $9.4 million or 0.48% from June 30, 2024. Demand deposits increased $43.8 million or 21.93% from June 30, 2024 and $32.0 million, or 15.12%, from December 31, 2024 underscoring the success of our C&I and Municipal banking verticals. Our loan to deposit ratio improved to 101% at June 30, 2025 from 102% at December 31, 2024. The Company had $517.4 million in total municipal deposits at June 30, 2025, at a weighted average rate of 3.67% versus $509.3 million at a weighted average rate of 3.72% at December 31, 2024 and $452.6 million at a weighted average rate of 4.61% at June 30, 2024. The Company’s municipal deposit program is built on long-standing relationships developed in the local marketplace. This core deposit business will continue to provide a stable source of funding for the Company’s lending products at costs lower than those of consumer deposits and market-based borrowings. The Company continues to broaden its municipal deposit base and currently services 40 customer relationships. Total borrowings at June 30, 2025 were $107.8 million, with a weighted average rate and term of 4.11% and 17 months, respectively. At June 30, 2025 and December 31, 2024, the Company had $107.8 million of term FHLB advances outstanding. The Company had no FHLB overnight borrowings outstanding at June 30, 2025 and December 31, 2024. The Company had no borrowings outstanding under lines of credit with correspondent banks at June 30, 2025 and December 31, 2024. Stockholders’ equity was $198.9 million at June 30, 2025 and compared to $196.6 million at December 31, 2024. Retained earnings increased by $2.5 million due primarily to net income of $4.0 million for the six months ended June 30, 2025, which was offset by $1.5 million of dividends declared. The accumulated other comprehensive loss at June 30, 2025 was 0.62% of total equity and was comprised of a $0.7 million after tax net unrealized loss on the investment portfolio and a $0.5 million after tax net unrealized loss on derivatives. Tangible book value per share (including Series A preferred shares) was $23.94 at June 30, 2025 compared to $23.86 at December 31, 2024. Loan Portfolio For the six months ended June 30, 2025, the Bank’s loan portfolio decreased $19.1 million to $1.97 billion from December 31, 2024. The decrease resulted primarily from the ongoing management of our commercial real estate and multifamily loan concentrations. On a linked quarter basis, net loans increased $5.8 million. At June 30, 2025, the Company’s residential loan portfolio (including home equity) amounted to $738.8 million, with an average loan balance of $489 thousand and a weighted average loan-to-value ratio of 57%. Commercial real estate (including construction) and multifamily loans totaled $1.08 billion at June 30, 2025, with an average loan balance of $1.5 million and a weighted average loan-to-value ratio of 59%. As will be discussed below, approximately 36% of the multifamily portfolio is subject to rent regulation. The Company’s commercial real estate concentration ratio continues to improve, decreasing to 368% of capital at June 30, 2025 from 385% at December 31, 2024 and 403% at June 30, 2024, with loans secured by office space accounting for 2.48% of the total loan portfolio and totaling $48.9 million at June 30, 2025. The Company’s loan pipeline with executed term sheets at June 30, 2025 is approximately $190.2 million, with approximately 81% being niche-residential, conventional C&I, SBA and USDA lending opportunities. The Bank remains focused on expanding its core verticals and continues to originate loans for its portfolio and for sale in the secondary market under its residential flow origination program. The Bank originated $62.2 million in residential loans in the quarter ended June 30, 2025. During the quarters ended June 30, 2025 and 2024, the Company sold $23.7 million and $2.9 million, respectively, of residential loans under its flow origination program and recorded gains on sale of loans held-for-sale of $0.5 million and $0.1 million, respectively. During the quarters ended June 30, 2025 and 2024, the Company sold approximately $22.3 million and $28.0 million, respectively, in government guaranteed SBA loans and recorded gains on sale of loans held-for-sale of $1.8 million and $2.5 million, respectively. SBA loan originations and gains on sale were lower than expected due to a confluence of factors. One factor is the impact of the “higher-for-longer” interest rate environment that we believe has both worsened the financial condition of and reduced demand among small business borrowers, resulting in a lower volume of creditworthy customers. Another factor is the negative impact of and uncertainty created by tariffs, which we believe have also dampened loan demand among borrowers in certain industries. A third factor is the Bank’s decision to tighten credit over the course of the last year. Although management continues to believe this to be a prudent measure, it has nonetheless resulted in a lower volume of loan approvals, causing the Bank to re-evaluate the number and caliber of its business development officers. Taken together these and other factors have adversely impacted SBA loan originations and closings. With the addition of additional business development officers in the second half of 2025, we anticipate higher volumes of eligible loans as we transition into 2026. The Bank concluded the second quarter of 2025 with C&I loan originations of approximately $29.3 million. Based on its existing pipeline, the Bank expects C&I lending and deposit activity to grow as the year progresses. Commercial Real Estate Statistics A significant portion of the Bank’s commercial real estate portfolio consists of loans secured by Multi-Family and CRE-Investor owned real estate that are predominantly subject to fixed interest rates for an initial period of 5 years. The Bank’s exposure to Land/Construction loans is minor at $8.2 million, all at floating interest rates. As shown below, 31% of the loan balances in these combined portfolios will either have a rate reset or mature in 2025 and 2026, with another 57% with rate resets or maturing in 2027. Stabilized Multi-Family Pro Forma Stress Results The table below reflects a proforma stressed evaluation of the Bank’s Multifamily stabilized loan portfolio, using the primary assumption for a revised Debt Service Coverage Ratio (“DSCR”) calculation, for all loans where the current interest rate is below 6%. The current balance for these loans is recast at 6% with a 30-year amortization. The chart below reflects the impact of these adjustments on the portfolio. The projected loan to value (“LTV”) assumption resets all loans using a 6% cap rate and the last reported property net operating income (“NOI”) to determine an implied property valuation and based on the current loan balance the resultant LTV. As reflected above, the results show approximately 3%, or 10 loans totaling $18 million of the total multi-family portfolio would have proforma DSCR’s less than 1x while maintaining projected weighted average LTV’s under 100%. Additionally, approximately 97% or 89 loans totaling $178 million would possess DSCR’s greater than 1x while maintaining a projected weighted average LTV well within our policy guidelines. We believe the overall demand for multifamily housing in our market will allow our borrowers to address any adverse impact proactively, as evidenced by the maturities and rate resets in the previous 12 months which have been successfully refinanced with other institutions at market rates similar to those used in the above analysis. Rental breakdown of Multi-Family portfolio The table below segments our portfolio of loans secured by Multi-Family properties based on rental terms and location. As shown below, 64% of the combined portfolio is secured by properties subject to free market rental terms, which is the dominant tenant type. Both the Market Rent and Stabilized Rent segments of our portfolio present very similar average borrower profiles. The portfolio is primarily located in the New York City boroughs of Brooklyn, the Bronx and Queens. Office Property Exposure The Bank’s exposure to the Office market is minor. Loans secured by office space accounted for 2.48% of the total loan portfolio with a total balance of $48.9 million, of which less than 1% is located in Manhattan. The pool has a 2.48x weighted average DSCR, a 53% weighted average LTV and less than $350,000 of exposure in Manhattan. Asset Quality and Allowance for Credit Losses The Bank’s asset quality metrics remain solid. At June 30, 2025, the Bank reported $12.7 million in non-performing loans compared to $16.4 million at December 31, 2024, a decrease of $3.7 million. This decrease resulted primarily from the proactive sale of non-performing loans, satisfactions and the charge-off of a specific reserve established in June 2024 on an individually evaluated commercial loan. At June 30, 2025 non-performing loans were 0.64% of total loans outstanding versus 0.82% at December 31, 2024. During the second quarter of 2025, the Bank recorded a provision for credit losses expense of $2.4 million (including $187 thousand provision for credit losses on unfunded commitments). Net charge-offs of $3.5 million were incurred during the quarter, of which $2.5 million is attributable to the aforementioned charge-off of a specific reserve on an individually evaluated commercial loan. The June 30, 2025 allowance for credit losses was $21.6 million versus $22.8 million at December 31, 2024. The allowance for credit losses as a percentage of total loans was 1.10% at June 30, 2025 and 1.15% at December 31, 2024. Net Interest Margin The Bank’s net interest margin increased to 2.76% for the quarter ended June 30, 2025 compared to 2.68% in the quarter ended March 31, 2025 and 2.46% in the quarter ended June 30, 2024 due to the continuing effects of the late 2024 reductions in the Federal Funds effective rate and the liability sensitive nature of the Bank’s balance sheet. About Hanover Community Bank and Hanover Bancorp, Inc. Hanover Bancorp, Inc. (NASDAQ: HNVR), is the bank holding company for Hanover Community Bank, a community commercial bank focusing on highly personalized and efficient services and products responsive to client needs. Management and the Board of Directors are comprised of a select group of successful local businesspeople who are committed to the success of the Bank by knowing and understanding the metro-New York area’s financial needs and opportunities. Backed by state-of-the-art technology, Hanover offers a full range of financial services. Hanover offers a complete suite of consumer, commercial, and municipal banking products and services, including multi-family and commercial mortgages, residential loans, business loans and lines of credit. Hanover also offers its customers access to 24-hour ATM service with no fees attached, free checking with interest, telephone banking, advanced technologies in mobile and internet banking for our consumer and business customers, safe deposit boxes and much more. The Company’s corporate administrative office is located in Mineola, New York where it also operates a full-service branch office along with additional branch locations in Garden City Park, Hauppauge, Port Jefferson, Forest Hills, Flushing, Sunset Park, Rockefeller Center and Chinatown, New York, and Freehold, New Jersey. Hanover Community Bank is a member of the Federal Deposit Insurance Corporation and is an Equal Housing/Equal Opportunity Lender. For further information, call (516) 548-8500 or visit the Bank’s website at www.hanoverbank.com. Non-GAAP Disclosure This discussion, including the financial statements attached thereto, includes non-GAAP financial measures which include the Company’s adjusted net income, adjusted basic and diluted earnings per share, adjusted return on average assets, adjusted return on average equity, tangible common equity (“TCE”) ratio, TCE, tangible assets, tangible book value per share, return on average tangible equity and efficiency ratio. A non-GAAP financial measure is a numerical measure of historical or future performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes that the presentation of non-GAAP financial measures provides both management and investors with a greater understanding of the Company’s operating results and trends in addition to the results measured in accordance with GAAP, and provides greater comparability across time periods. While management uses non-GAAP financial measures in its analysis of the Company’s performance, this information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP. The Company’s non-GAAP financial measures may not be comparable to similarly titled measures used by other financial institutions. With respect to the calculations of and reconciliations of adjusted net income, TCE, tangible assets, TCE ratio and tangible book value per share, reconciliations to the most comparable U.S. GAAP measures are provided in the tables that follow. Forward-Looking Statements This release may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and may be identified by the use of such words as "may," "believe," "expect," "anticipate," "should," "plan," "estimate," "predict," "continue," and "potential" or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of Hanover Bancorp, Inc. Any or all of the forward-looking statements in this release and in any other public statements made by Hanover Bancorp, Inc. may turn out to be incorrect. They can be affected by inaccurate assumptions that Hanover Bancorp, Inc. might make or by known or unknown risks and uncertainties, including those discussed in our Annual Report on Form 10-K under Item 1A - Risk Factors, as updated by our subsequent filings with the Securities and Exchange Commission. Further, the adverse effect of health emergencies or natural disasters on the Company, its customers, and the communities where it operates may adversely affect the Company’s business, results of operations and financial condition for an indefinite period of time. Consequently, no forward-looking statement can be guaranteed. Hanover Bancorp, Inc. does not intend to update any of the forward-looking statements after the date of this release or to conform these statements to actual events. Investor and Press Contact: Lance P. Burke Chief Financial Officer (516) 548-8500

Hanover Bancorp, Inc. (HNVR) came out with quarterly earnings of $0.55 per share, beating the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.55 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 7.84%. A quarter ago, it was expected that this company would post earnings of $0.49 per share when it actually produced earnings of $0.52, delivering a surprise of 6.12%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Hanover Bancorp , which belongs to the Zacks Banks - Northeast industry, posted revenues of $18.36 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.58%. This compares to year-ago revenues of $16.51 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Hanover Bancorp shares have lost about 7.6% since the beginning of the year versus the S&P 500's decline of -10.1%. While Hanover Bancorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Hanover Bancorp: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.54 on $18.4 million in revenues for the coming quarter and $2.33 on $75.3 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Shore Bancshares (SHBI), is yet to report results for the quarter ended March 2025. This bank holding company is expected to post quarterly earnings of $0.35 per share in its upcoming report, which represents a year-over-year change of -14.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Shore Bancshares' revenues are expected to be $50.63 million, up 6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hanover Bancorp, Inc. (HNVR) : Free Stock Analysis Report Shore Bancshares Inc (SHBI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

First Quarter Performance Highlights Net Income: Net income for the quarter ended March 31, 2025 totaled $1.5 million or $0.20 per diluted share (including Series A preferred shares). Adjusted (non-GAAP) net income (excluding core system conversion expenses of $2.6 million, net of tax) increased to $4.1 million or $0.55 per diluted share for the quarter ended March 31, 2025. Net Income: Net income for the quarter ended March 31, 2025 totaled $1.5 million or $0.20 per diluted share (including Series A preferred shares). Adjusted (non-GAAP) net income (excluding core system conversion expenses of $2.6 million, net of tax) increased to $4.1 million or $0.55 per diluted share for the quarter ended March 31, 2025. Net Interest Income: Net interest income was $14.6 million for the quarter ended March 31, 2025, an increase of $0.8 million or 5.95% from the quarter ended December 31, 2024 and $1.7 million, or 13.10% from the quarter ended March 31, 2024. Net Interest Income: Net interest income was $14.6 million for the quarter ended March 31, 2025, an increase of $0.8 million or 5.95% from the quarter ended December 31, 2024 and $1.7 million, or 13.10% from the quarter ended March 31, 2024. Net Interest Margin Expansion: The Company’s net interest margin during the quarter ended March 31, 2025 increased to 2.68% from 2.53% in the quarter ended December 31, 2024 and 2.41% in the quarter ended March 31, 2024. Net Interest Margin Expansion: The Company’s net interest margin during the quarter ended March 31, 2025 increased to 2.68% from 2.53% in the quarter ended December 31, 2024 and 2.41% in the quarter ended March 31, 2024. Strong Liquidity Position: At March 31, 2025, undrawn liquidity sources, which include cash and unencumbered securities and secured and unsecured funding capacity, totaled $679.0 million, or approximately 322% of uninsured deposit balances. Insured and collateralized deposits, which include municipal deposits, accounted for approximately 89% of total deposits at March 31, 2025. Strong Liquidity Position: At March 31, 2025, undrawn liquidity sources, which include cash and unencumbered securities and secured and unsecured funding capacity, totaled $679.0 million, or approximately 322% of uninsured deposit balances. Insured and collateralized deposits, which include municipal deposits, accounted for approximately 89% of total deposits at March 31, 2025. Demand Deposits: Demand deposits increased $12.6 million or 6.23% from March 31, 2024 and $3.9 million or 1.85% from December 31, 2024. Demand Deposits: Demand deposits increased $12.6 million or 6.23% from March 31, 2024 and $3.9 million or 1.85% from December 31, 2024. Loan Diversification Strategy: The Company continues to actively manage its Multi-Family and Commercial Real Estate portfolios which resulted in a reduction in the commercial real estate concentration ratio to 369% of capital at March 31, 2025 from 385% at December 31, 2024 and 416% at March 31, 2024. The Company continues to focus loan growth primarily in residential loan products originated for sale to specific buyers in the secondary market, C&I and SBA loans. The Company will selectively explore Commercial Real Estate opportunities with an emphasis on relationship based Commercial Real Estate lending. Loan Diversification Strategy: The Company continues to actively manage its Multi-Family and Commercial Real Estate portfolios which resulted in a reduction in the commercial real estate concentration ratio to 369% of capital at March 31, 2025 from 385% at December 31, 2024 and 416% at March 31, 2024. The Company continues to focus loan growth primarily in residential loan products originated for sale to specific buyers in the secondary market, C&I and SBA loans. The Company will selectively explore Commercial Real Estate opportunities with an emphasis on relationship based Commercial Real Estate lending. Asset Quality: At March 31, 2025, the Bank’s asset quality improved with non-performing loans decreasing 28.5% to $11.7 million, representing 0.60% of the total loan portfolio, while the allowance for credit losses increased to 1.17% of total loans. Asset Quality: At March 31, 2025, the Bank’s asset quality improved with non-performing loans decreasing 28.5% to $11.7 million, representing 0.60% of the total loan portfolio, while the allowance for credit losses increased to 1.17% of total loans. Tangible Book Value Per Share: Tangible book value per share (including Series A preferred shares) was $23.62 at March 31, 2025 (inclusive of one-time core system conversion expenses of $2.6 million, net of tax, or $0.34 per share) compared to $23.86 at December 31, 2024. Tangible Book Value Per Share: Tangible book value per share (including Series A preferred shares) was $23.62 at March 31, 2025 (inclusive of one-time core system conversion expenses of $2.6 million, net of tax, or $0.34 per share) compared to $23.86 at December 31, 2024. Technology & Rebranding: The Company completed its core processing system conversion to FIS Horizon in February 2025. This conversion, coupled with our recently revealed refreshed corporate logo, exemplifies our momentum towards a more technologically advanced, modern and digitally forward-thinking bank. Technology & Rebranding: The Company completed its core processing system conversion to FIS Horizon in February 2025. This conversion, coupled with our recently revealed refreshed corporate logo, exemplifies our momentum towards a more technologically advanced, modern and digitally forward-thinking bank. Quarterly Cash Dividend: The Company’s Board of Directors approved a $0.10 per share cash dividend on both common and Series A preferred shares payable on May 14, 2025 to stockholders of record on May 7, 2025. Quarterly Cash Dividend: The Company’s Board of Directors approved a $0.10 per share cash dividend on both common and Series A preferred shares payable on May 14, 2025 to stockholders of record on May 7, 2025. MINEOLA, N.Y., April 23, 2025 (GLOBE NEWSWIRE) -- Hanover Bancorp, Inc. (“Hanover” or “the Company” – NASDAQ: HNVR), the holding company for Hanover Community Bank (“the Bank”), today reported results for the quarter ended March 31, 2025 and the declaration of a $0.10 per share cash dividend on both common and Series A preferred shares payable on May 14, 2025 to stockholders of record on May 7, 2025. Earnings Summary for the Quarter Ended March 31, 2025 The Company reported net income for the quarter ended March 31, 2025 of $1.5 million or $0.20 per diluted share (including Series A preferred shares), versus $4.1 million or $0.55 per diluted share (including Series A preferred shares) in the quarter ended March 31, 2024. The Company recorded adjusted (non-GAAP) net income (excluding core system conversion expenses of $2.6 million, net of tax) of $4.1 million or $0.55 per diluted share in the quarter ended March 31, 2025, versus net income of $4.1 million or $0.55 per diluted share in the comparable 2024 quarter (which included no adjustments). Returns on average assets, average stockholders’ equity and average tangible equity were 0.27%, 3.11% and 3.45%, respectively, for the quarter ended March 31, 2025, versus 0.74%, 8.70% and 9.71%, respectively, for the comparable quarter of 2024. Adjusted (non-GAAP) returns, exclusive of core system conversion expenses on average assets, average stockholders’ equity and average tangible equity were 0.73%, 8.36% and 9.27%, respectively, in the quarter ended March 31, 2025, versus 0.74%, 8.70% and 9.71%, respectively, in the comparable quarter of 2024. While net interest income and non-interest income increased during the quarter ended March 31, 2025 compared to the quarter ended March 31, 2024, these were partially offset by increases in provision for credit losses and non-interest expenses, particularly compensation and benefits and the one-time core system conversion expenses. The increase in compensation and benefits expense in the first quarter of 2025 versus the comparable 2024 quarter was primarily related to lower deferred loan origination costs partially offset by lower incentive compensation expense resulting from reduced lending activity. The Company’s effective tax rate decreased to 13.8% in the first quarter of 2025 from 24.9% both in the linked quarter and the comparable 2024 quarter due to the tax impact of the windfall benefit from expiring stock options that were exercised and vested restricted stock. We expect a normalized run rate of 25.0% for the remainder of the year. Net interest income was $14.6 million for the quarter ended March 31, 2025, an increase of $1.7 million, or 13.10% from the comparable 2024 quarter due to improvement of the Company’s net interest margin to 2.68% in the 2025 quarter from 2.41% in the comparable 2024 quarter. The yield on interest earning assets decreased to 6.01% in the 2025 quarter from 6.03% in the comparable 2024 quarter, a decrease of 2 basis points that was partially offset by a 32 basis point decrease in the cost of interest-bearing liabilities to 4.01% in 2025 from 4.33% in the first quarter of 2024. Net interest income on a linked quarter basis increased $0.8 million or 5.95%, due to a 15 basis point increase in net interest margin resulting from a 23 basis point decrease in cost of interest-bearing liabilities, partially offset by a 5 basis point decrease on yield on interest earning assets. The increase in the net interest margin was a result of the late 2024 reductions in the Fed Funds effective rate and the liability sensitive nature of the Bank’s balance sheet. Michael P. Puorro, Chairman and Chief Executive Officer, commented on the Company’s quarterly results: “We are pleased with our first quarter performance which reflected sizable improvements in Net Interest Income and Net Interest Margin that drove stronger adjusted ROTE and ROA for the period. Specifically, NII increased from $13.8 million to $14.6 million and NIM from 2.53% to 2.68%, resulting in adjusted ROTE of 9.27% and ROA of 0.73%, confirming a trend away from the restrictive environment of the last couple of years. Building on this positive momentum were improved credit metrics and the completion of our core banking system conversion, a significant achievement that is expected to deliver tangible operational efficiencies and customer benefits while enhancing our commitment to digital banking. In addition to the core banking system conversion, we recently announced our new logo which is representative of our focus on innovation and a digital forward strategy. Moving forward, we remain committed to disciplined development of our core business verticals which include niche residential, SBA and C&I lending. Further, we look forward to a more favorable banking environment and the upcoming potential qualification for the Russell 2000, which should increase institutional ownership and enhance the liquidity of our stock.” Balance Sheet Highlights Total assets at March 31, 2025 were $2.29 billion versus $2.31 billion at December 31, 2024. Total securities available for sale at March 31, 2025 were $93.2 million, an increase of $9.4 million from December 31, 2024, primarily driven by growth in collateralized mortgage obligations, collateralized loan obligations and corporate bonds. Total deposits at March 31, 2025 were $1.94 billion, a decrease of $17.8 million or 0.91%, compared to $1.95 billion at December 31, 2024. Total deposits increased $19.2 million or 1.00% from March 31, 2024. Demand deposits increased $12.6 million or 6.23% from March 31, 2024. Our loan to deposit ratio improved to 101% at March 31, 2025 from 102% at December 31, 2024. The Company had $517.1 million in total municipal deposits at March 31, 2025, at a weighted average rate of 3.71% versus $509.3 million at a weighted average rate of 3.72% at December 31, 2024 and $576.3 million at a weighted average rate of 4.65% at March 31, 2024. The Company’s municipal deposit program is built on long-standing relationships developed in the local marketplace. This core deposit business will continue to provide a stable source of funding for the Company’s lending products at costs lower than those of consumer deposits and market-based borrowings. The Company continues to broaden its municipal deposit base and currently services 40 customer relationships. Total borrowings at March 31, 2025 were $107.8 million, with a weighted average rate and term of 4.11% and 20 months, respectively. At March 31, 2025 and December 31, 2024, the Company had $107.8 million of term FHLB advances outstanding. The Company had no FHLB overnight borrowings outstanding at March 31, 2025 and December 31, 2024. The Company had no borrowings outstanding under lines of credit with correspondent banks at March 31, 2025 and December 31, 2024. Stockholders’ equity was $196.6 million at both March 31, 2025 and December 31, 2024. Retained earnings increased by $0.8 million due primarily to net income of $1.5 million for the quarter ended March 31, 2025, which was offset by $0.7 million of dividends declared. The accumulated other comprehensive loss at March 31, 2025 was 0.71% of total equity and was comprised of a $0.9 million after tax net unrealized loss on the investment portfolio and a $0.5 million after tax net unrealized loss on derivatives. Tangible book value per share (including Series A preferred shares) was $23.62 at March 31, 2025 (inclusive of one-time core system conversion expenses of $2.6 million, net of tax, or $0.34 per share) compared to $23.86 at December 31, 2024. Loan Portfolio For the three months ended March 31, 2025, the Bank’s loan portfolio decreased $24.9 million to $1.96 billion from December 31, 2024. The decrease resulted primarily from the ongoing management of our commercial real estate and multifamily loan concentrations. At March 31, 2025, the Company’s residential loan portfolio (including home equity) amounted to $733.6 million, with an average loan balance of $486 thousand and a weighted average loan-to-value ratio of 57%. Commercial real estate (including construction) and multifamily loans totaled $1.06 billion at March 31, 2025, with an average loan balance of $1.5 million and a weighted average loan-to-value ratio of 59%. As will be discussed below, approximately 37% of the multifamily portfolio is subject to rent regulation. The Company’s commercial real estate concentration ratio continues to improve, decreasing to 369% of capital at March 31, 2025 from 385% at December 31, 2024 and 416% at March 31, 2024, with loans secured by office space accounting for 2.23% of the total loan portfolio and totaling $43.8 million at March 31, 2025. The Company’s loan pipeline with executed term sheets at March 31, 2025 is approximately $255.0 million, with approximately 92% being niche-residential, conventional C&I and SBA lending opportunities. The Bank remains focused on expanding its core verticals and continues to originate loans for its portfolio and for sale in the secondary market under its residential flow origination program. Of the $48.8 million in closed residential loans originated in the quarter ended March 31, 2025, $27.6 million were originated for the Bank’s portfolio and reflected a weighted average yield of 6.64% before origination and other fees, which average 50-100 bps per loan, and a weighted average LTV of 58%. The remaining $21.2 million of closed loans were originated for sale in the secondary market. During the quarter ended March 31, 2025, the Company sold $18.3 million of residential loans under its flow origination program and recorded gains on sale of loans held-for-sale of $0.4 million with a premium of 2.38%. During the quarters ended March 31, 2025 and 2024, the Company sold approximately $23.4 million and $26.7 million, respectively, in government guaranteed SBA loans and recorded gains on sale of loans held-for-sale of $1.9 million and $2.5 million, respectively. SBA loan originations and gains on sale were lower due to a combination of factors, including: lower than expected loan sale premiums due, we believe, to first quarter market turmoil; delays in loan closings resulting from the impact of administrative changes to SBA Standard Operating Procedures; and the inability of certain loans to close because of delays by state regulatory agencies in issuing permit approvals to certain borrowers. As we enter the second quarter of 2025, we expect to navigate these factors and to increase the volume of origination and loan sale activity throughout the year. The Bank concluded the first quarter of 2025 with C&I loan originations of approximately $16.8 million. Based on its existing pipeline, the Bank expects C&I lending and deposit activity to grow as the year progresses. Commercial Real Estate Statistics A significant portion of the Bank’s commercial real estate portfolio consists of loans secured by Multi-Family and CRE-Investor owned real estate that are predominantly subject to fixed interest rates for an initial period of 5 years. The Bank’s exposure to Land/Construction loans is minor at $8.0 million, all at floating interest rates. As shown below, 31% of the loan balances in these combined portfolios will either have a rate reset or mature in 2025 and 2026, with another 56% with rate resets or maturing in 2027. Multi-Family Market Rent Portfolio Fixed Rate Reset/Maturity Schedule Multi-Family Stabilized Rent Portfolio Fixed Rate Reset/Maturity Schedule Calendar Period # Loans Total O/S ($000's omitted) Avg O/S ($000's omitted) Avg Interest Rate Calendar Period # Loans Total O/S ($000's omitted) Avg O/S ($000's omitted) Avg Interest Rate 2025 10 $ 16,321 $ 1,632 4.45 % 2025 10 $ 17,025 $ 1,703 5.03 % 2026 36 117,886 3,275 3.66 % 2026 20 42,549 2,127 3.67 % 2027 70 174,601 2,494 4.29 % 2027 53 123,668 2,333 4.22 % 2028 16 21,382 1,336 6.20 % 2028 13 10,914 839 7.17 % 2029 6 4,929 821 7.70 % 2029 4 4,328 1,082 6.38 % 2030+ 2 171 85 6.00 % 2030+ 4 1,129 282 6.02 % Fixed Rate 140 335,290 2,395 4.61 % Fixed Rate 104 199,613 1,919 4.39 % Floating Rate 2 749 375 9.50 % Floating Rate — — — — % Total 142 $ 336,039 $ 2,366 4.26 % Total 104 $ 199,613 $ 1,919 4.39 % CRE Investor Portfolio Fixed Rate Reset/Maturity Schedule Calendar Period # Loans Total O/S ($000's omitted) Avg O/S ($000's omitted) Avg Interest Rate 2025 29 $ 23,092 $ 796 6.13 % 2026 33 41,668 1,263 4.84 % 2027 90 162,557 1,806 5.03 % 2028 30 31,763 1,059 6.64 % 2029 4 2,353 588 7.03 % 2030+ 13 7,967 613 6.49 % Fixed Rate 199 269,400 1,354 5.35 % Floating Rate 5 19,074 3,815 8.73 % Total CRE-Inv. 204 $ 288,474 $ 1,414 5.57 % Rental breakdown of Multi-Family portfolio The table below segments our portfolio of loans secured by Multi-Family properties based on rental terms and location. As shown below, 63% of the combined portfolio is secured by properties subject to free market rental terms, which is the dominant tenant type. Both the Market Rent and Stabilized Rent segments of our portfolio present very similar average borrower profiles. The portfolio is primarily located in the New York City boroughs of Brooklyn, the Bronx and Queens. Multi-Family Loan Portfolio - Loans by Rent Type Rent Type # of Notes Outstanding Loan Balance % of Total Multi-Family Avg Loan Size LTV Current DSCR Avg # of Units ($000's omitted) ($000's omitted) Market 142 $ 336,039 63 % $ 2,366 61.5 % 1.41 11 Location Manhattan 7 $ 10,299 2 % $ 1,471 49.6 % 1.88 14 Other NYC 93 $ 244,552 46 % $ 2,630 61.2 % 1.40 9 Outside NYC 42 $ 81,188 15 % $ 1,933 64.2 % 1.36 13 Stabilized 104 $ 199,613 37 % $ 1,919 62.1 % 1.42 12 Location Manhattan 6 $ 8,843 2 % $ 1,474 44.2 % 1.58 17 Other NYC 86 $ 171,852 32 % $ 1,998 62.8 % 1.41 11 Outside NYC 12 $ 18,918 3 % $ 1,576 64.1 % 1.49 16 Office Property Exposure The Bank’s exposure to the Office market is minor. Loans secured by office space accounted for 2.23% of the total loan portfolio with a total balance of $43.8 million, of which less than 1% is located in Manhattan. The pool has a 2.32x weighted average DSCR, a 53% weighted average LTV and less than $353,000 of exposure in Manhattan. Asset Quality and Allowance for Credit Losses At March 31, 2025, the Bank’s asset quality metrics improved with non-performing loans totaling $11.7 million compared to non-performing loans of $16.4 million at December 31, 2024, a decrease of $4.7 million. This decrease resulted primarily from the contracted sale of non-performing loans totaling $5.0 million, net of a $0.3 million charge-off, during the quarter. At March 31, 2025 non-performing loans were 0.60% of total loans outstanding versus 0.82% at December 31, 2024. During the first quarter of 2025, the Bank recorded a provision for credit losses expense of $0.6 million. The March 31, 2025 allowance for credit losses was $22.9 million versus $22.8 million at December 31, 2024. The allowance for credit losses as a percentage of total loans was 1.17% at March 31, 2025 and 1.15% at December 31, 2024. Net Interest Margin The Bank’s net interest margin increased to 2.68% for the quarter ended March 31, 2025 compared to 2.53% in the quarter ended December 31, 2024 and 2.41% in the quarter ended March 31, 2024 due to the recent reductions in the Fed Funds effective rate and the liability sensitive nature of the Bank’s balance sheet. About Hanover Community Bank and Hanover Bancorp, Inc. Hanover Bancorp, Inc. (NASDAQ: HNVR), is the bank holding company for Hanover Community Bank, a community commercial bank focusing on highly personalized and efficient services and products responsive to client needs. Management and the Board of Directors are comprised of a select group of successful local businesspeople who are committed to the success of the Bank by knowing and understanding the metro-New York area’s financial needs and opportunities. Backed by state-of-the-art technology, Hanover offers a full range of financial services. Hanover offers a complete suite of consumer, commercial, and municipal banking products and services, including multi-family and commercial mortgages, residential loans, business loans and lines of credit. Hanover also offers its customers access to 24-hour ATM service with no fees attached, free checking with interest, telephone banking, advanced technologies in mobile and internet banking for our consumer and business customers, safe deposit boxes and much more. The Company’s corporate administrative office is located in Mineola, New York where it also operates a full-service branch office along with additional branch locations in Garden City Park, Hauppauge, Forest Hills, Flushing, Sunset Park, Rockefeller Center and Chinatown, New York, and Freehold, New Jersey, with a new branch opening in Port Jefferson, New York in mid 2025. Hanover Community Bank is a member of the Federal Deposit Insurance Corporation and is an Equal Housing/Equal Opportunity Lender. For further information, call (516) 548-8500 or visit the Bank’s website at www.hanoverbank.com. Non-GAAP Disclosure This discussion, including the financial statements attached thereto, includes non-GAAP financial measures which include the Company’s adjusted net income, adjusted basic and diluted earnings per share, adjusted return on average assets, adjusted return on average equity, tangible common equity (“TCE”) ratio, TCE, tangible assets, tangible book value per share, return on average tangible equity and efficiency ratio. A non-GAAP financial measure is a numerical measure of historical or future performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes that the presentation of non-GAAP financial measures provides both management and investors with a greater understanding of the Company’s operating results and trends in addition to the results measured in accordance with GAAP, and provides greater comparability across time periods. While management uses non-GAAP financial measures in its analysis of the Company’s performance, this information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP. The Company’s non-GAAP financial measures may not be comparable to similarly titled measures used by other financial institutions. With respect to the calculations of and reconciliations of adjusted net income, TCE, tangible assets, TCE ratio and tangible book value per share, reconciliations to the most comparable U.S. GAAP measures are provided in the tables that follow. Forward-Looking Statements This release may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and may be identified by the use of such words as "may," "believe," "expect," "anticipate," "should," "plan," "estimate," "predict," "continue," and "potential" or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of Hanover Bancorp, Inc. Any or all of the forward-looking statements in this release and in any other public statements made by Hanover Bancorp, Inc. may turn out to be incorrect. They can be affected by inaccurate assumptions that Hanover Bancorp, Inc. might make or by known or unknown risks and uncertainties, including those discussed in our Annual Report on Form 10-K under Item 1A - Risk Factors, as updated by our subsequent filings with the Securities and Exchange Commission. Further, the adverse effect of health emergencies or natural disasters on the Company, its customers, and the communities where it operates may adversely affect the Company’s business, results of operations and financial condition for an indefinite period of time. Consequently, no forward-looking statement can be guaranteed. Hanover Bancorp, Inc. does not intend to update any of the forward-looking statements after the date of this release or to conform these statements to actual events. Investor and Press Contact: Lance P. Burke Chief Financial Officer (516) 548-8500 HANOVER BANCORP, INC. STATEMENTS OF CONDITION (unaudited) (dollars in thousands) March 31, December 31, March 31, 2025 2024 2024 Assets Cash and cash equivalents $ 160,234 $ 162,857 $ 136,481 Securities-available for sale, at fair value 93,197 83,755 92,709 Investments-held to maturity 3,671 3,758 3,973 Loans held for sale 16,306 12,404 7,641 Loans, net of deferred loan fees and costs 1,960,674 1,985,524 2,005,515 Less: allowance for credit losses (22,925 ) (22,779 ) (19,873 ) Loans, net 1,937,749 1,962,745 1,985,642 Goodwill 19,168 19,168 19,168 Premises & fixed assets 14,511 15,337 15,648 Operating lease assets 8,484 8,337 9,336 Other assets 38,207 43,749 36,910 Assets $ 2,291,527 $ 2,312,110 $ 2,307,508 Liabilities and stockholders' equity Core deposits $ 1,418,209 $ 1,456,513 $ 1,453,035 Time deposits 518,229 497,770 464,227 Total deposits 1,936,438 1,954,283 1,917,262 Borrowings 107,805 107,805 148,953 Subordinated debentures 24,702 24,689 24,648 Operating lease liabilities 9,144 9,025 10,039 Other liabilities 16,795 19,670 17,063 Liabilities 2,094,884 2,115,472 2,117,965 Stockholders' equity 196,643 196,638 189,543 Liabilities and stockholders' equity $ 2,291,527 $ 2,312,110 $ 2,307,508 HANOVER BANCORP, INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited) (dollars in thousands, except per share data) Three Months Ended 3/31/2025 3/31/2024 Interest income $ 32,837 $ 32,432 Interest expense 18,208 19,497 Net interest income 14,629 12,935 Provision for credit losses 600 300 Net interest income after provision for credit losses 14,029 12,635 Loan servicing and fee income 1,081 913 Service charges on deposit accounts 117 96 Gain on sale of loans held-for-sale 2,352 2,506 Other operating income 182 61 Non-interest income 3,732 3,576 Compensation and benefits 7,232 5,562 Conversion expenses 3,180 - Occupancy and equipment 1,836 1,770 Data processing 593 518 Professional fees 787 818 Federal deposit insurance premiums 337 318 Other operating expenses 2,031 1,818 Non-interest expense 15,996 10,804 Income before income taxes 1,765 5,407 Income tax expense 244 1,346 Net income $ 1,521 $ 4,061 Earnings per share ("EPS"):(1) Basic $ 0.20 $ 0.55 Diluted $ 0.20 $ 0.55 Average shares outstanding for basic EPS (1)(2) 7,463,537 7,376,227 Average shares outstanding for diluted EPS (1)(2) 7,469,489 7,420,926 (1) Calculation includes common stock and Series A preferred stock. (2) Average shares outstanding before subtracting participating securities. HANOVER BANCORP, INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited) QUARTERLY TREND (dollars in thousands, except per share data) Three Months Ended 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Interest income $ 32,837 $ 33,057 $ 34,113 $ 33,420 $ 32,432 Interest expense 18,208 19,249 21,011 20,173 19,497 Net interest income 14,629 13,808 13,102 13,247 12,935 Provision for credit losses 600 400 200 4,040 300 Net interest income after provision for credit losses 14,029 13,408 12,902 9,207 12,635 Loan servicing and fee income 1,081 981 960 836 913 Service charges on deposit accounts 117 136 123 114 96 Gain on sale of loans held-for-sale 2,352 3,014 2,834 2,586 2,506 Gain on sale of investments - 27 - 4 - Other operating income 182 29 37 82 61 Non-interest income 3,732 4,187 3,954 3,622 3,576 Compensation and benefits 7,232 6,699 6,840 6,499 5,562 Conversion expenses 3,180 - - - - Occupancy and equipment 1,836 1,810 1,799 1,843 1,770 Data processing 593 536 547 495 518 Professional fees 787 782 762 717 818 Federal deposit insurance premiums 337 375 360 365 318 Other operating expenses 2,031 2,198 1,930 1,751 1,818 Non-interest expense 15,996 12,400 12,238 11,670 10,804 Income before income taxes 1,765 5,195 4,618 1,159 5,407 Income tax expense 244 1,293 1,079 315 1,346 Net income $ 1,521 $ 3,902 $ 3,539 $ 844 $ 4,061 Earnings per share ("EPS"):(1) Basic $ 0.20 $ 0.53 $ 0.48 $ 0.11 $ 0.55 Diluted $ 0.20 $ 0.52 $ 0.48 $ 0.11 $ 0.55 Average shares outstanding for basic EPS (1)(2) 7,463,537 7,427,583 7,411,064 7,399,816 7,376,227 Average shares outstanding for diluted EPS (1)(2) 7,469,489 7,456,471 7,436,068 7,449,110 7,420,926 (1) Calculation includes common stock and Series A preferred stock. (2) Average shares outstanding before subtracting participating securities. HANOVER BANCORP, INC. CONSOLIDATED NON-GAAP FINANCIAL INFORMATION (1) (unaudited) (dollars in thousands, except per share data) Three Months Ended 3/31/2025 3/31/2024 ADJUSTED NET INCOME: Net income, as reported $ 1,521 $ 4,061 Adjustments: Conversion expenses 3,180 - Total adjustments, before income taxes 3,180 - Adjustment for reported effective income tax rate 608 - Total adjustments, after income taxes 2,572 - Adjusted net income $ 4,093 $ 4,061 Basic earnings per share - adjusted $ 0.55 $ 0.55 Diluted earnings per share - adjusted $ 0.55 $ 0.55 ADJUSTED OPERATING EFFICIENCY RATIO: Operating efficiency ratio, as reported 87.12 % 65.44 % Adjustments: Conversion expenses -17.32 % 0.00 % Adjusted operating efficiency ratio 69.80 % 65.44 % ADJUSTED RETURN ON AVERAGE ASSETS 0.73 % 0.74 % ADJUSTED RETURN ON AVERAGE EQUITY 8.36 % 8.70 % ADJUSTED RETURN ON AVERAGE TANGIBLE EQUITY 9.27 % 9.71 % (1) A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with U.S. GAAP. While management uses non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP. HANOVER BANCORP, INC. SELECTED FINANCIAL DATA (unaudited) (dollars in thousands) Three Months Ended 3/31/2025 3/31/2024 Profitability: Return on average assets 0.27 % 0.74 % Return on average equity (1) 3.11 % 8.70 % Return on average tangible equity (1) 3.45 % 9.71 % Pre-provision net revenue to average assets 0.42 % 1.03 % Yield on average interest-earning assets 6.01 % 6.03 % Cost of average interest-bearing liabilities 4.01 % 4.33 % Net interest rate spread (2) 2.00 % 1.70 % Net interest margin (3) 2.68 % 2.41 % Non-interest expense to average assets 2.85 % 1.96 % Operating efficiency ratio (4) 87.12 % 65.44 % Average balances: Interest-earning assets $ 2,217,107 $ 2,162,835 Interest-bearing liabilities 1,842,073 1,810,397 Loans 1,989,796 1,984,075 Deposits 1,919,436 1,842,642 Borrowings 133,665 162,427 (1) Includes common stock and Series A preferred stock. (2) Represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. (3) Represents net interest income divided by average interest-earning assets. (4) Represents non-interest expense divided by the sum of net interest income and non-interest income. HANOVER BANCORP, INC. SELECTED FINANCIAL DATA (unaudited) (dollars in thousands, except share and per share data) At or For the Three Months Ended 3/31/2025 12/31/2024 9/30/2024 6/30/2024 Asset quality: Provision for credit losses - loans (1) $ 600 $ 400 $ 200 $ 3,850 Net (charge-offs)/recoveries (454 ) (1,027 ) (438 ) (79 ) Allowance for credit losses 22,925 22,779 23,406 23,644 Allowance for credit losses to total loans (2) 1.17 % 1.15 % 1.17 % 1.17 % Non-performing loans $ 11,697 $ 16,368 $ 15,365 $ 15,828 Non-performing loans/total loans 0.60 % 0.82 % 0.77 % 0.79 % Non-performing loans/total assets 0.51 % 0.71 % 0.66 % 0.68 % Allowance for credit losses/non-performing loans 195.99 % 139.17 % 152.33 % 149.38 % Capital (Bank only): Tier 1 Capital $ 201,925 $ 201,744 $ 198,196 $ 195,703 Tier 1 leverage ratio 8.95 % 9.13 % 8.85 % 8.89 % Common equity tier 1 capital ratio 13.37 % 13.32 % 12.99 % 12.78 % Tier 1 risk based capital ratio 13.37 % 13.32 % 12.99 % 12.78 % Total risk based capital ratio 14.62 % 14.58 % 14.24 % 14.21 % Equity data: Shares outstanding (3) 7,503,731 7,427,127 7,428,366 7,402,163 Stockholders' equity $ 196,643 $ 196,638 $ 192,339 $ 190,072 Book value per share (3) 26.21 26.48 25.89 25.68 Tangible common equity (3) 177,239 177,220 172,906 170,625 Tangible book value per share (3) 23.62 23.86 23.28 23.05 Tangible common equity ("TCE") ratio (3) 7.80 % 7.73 % 7.49 % 7.38 % (1) Excludes $0, $0, $0 and $190 thousand provision for credit losses on unfunded commitments for the quarters ended 3/31/25, 12/31/24, 9/30/24 and 6/30/24, respectively. (2) Calculation excludes loans held for sale. (3) Includes common stock and Series A preferred stock. HANOVER BANCORP, INC. STATISTICAL SUMMARY QUARTERLY TREND (unaudited, dollars in thousands, except share data) 3/31/2025 12/31/2024 9/30/2024 6/30/2024 Loan distribution (1): Residential mortgages $ 708,649 $ 702,832 $ 719,037 $ 733,040 Multifamily 535,429 550,570 557,634 562,503 Commercial real estate 520,808 536,288 529,948 549,725 Commercial & industrial 170,442 168,909 171,899 139,209 Home equity 24,914 26,422 26,825 27,992 Consumer 432 503 470 485 Total loans $ 1,960,674 $ 1,985,524 $ 2,005,813 $ 2,012,954 Sequential quarter growth rate -1.25 % -1.01 % -0.35 % 0.37 % CRE concentration ratio 369 % 385 % 397 % 403 % Loans sold during the quarter $ 46,649 $ 53,499 $ 43,537 $ 35,302 Funding distribution: Demand $ 215,569 $ 211,656 $ 206,327 $ 199,835 N.O.W. 698,297 692,890 621,880 661,998 Savings 46,275 48,885 53,024 44,821 Money market 458,068 503,082 572,213 571,170 Total core deposits 1,418,209 1,456,513 1,453,444 1,477,824 Time 518,229 497,770 504,100 464,105 Total deposits 1,936,438 1,954,283 1,957,544 1,941,929 Borrowings 107,805 107,805 125,805 148,953 Subordinated debentures 24,702 24,689 24,675 24,662 Total funding sources $ 2,068,945 $ 2,086,777 $ 2,108,024 $ 2,115,544 Sequential quarter growth rate - total deposits -0.91 % -0.17 % 0.80 % 1.29 % Period-end core deposits/total deposits ratio 73.24 % 74.53 % 74.25 % 76.10 % Period-end demand deposits/total deposits ratio 11.13 % 10.83 % 10.54 % 10.29 % (1) Excluding loans held for sale HANOVER BANCORP, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (1) (unaudited) (dollars in thousands, except share and per share amounts) 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Tangible common equity Total equity (2) $ 196,643 $ 196,638 $ 192,339 $ 190,072 $ 189,543 Less: goodwill (19,168 ) (19,168 ) (19,168 ) (19,168 ) (19,168 ) Less: core deposit intangible (236 ) (250 ) (265 ) (279 ) (295 ) Tangible common equity (2) $ 177,239 $ 177,220 $ 172,906 $ 170,625 $ 170,080 Tangible common equity ("TCE") ratio Tangible common equity (2) $ 177,239 $ 177,220 $ 172,906 $ 170,625 $ 170,080 Total assets 2,291,527 2,312,110 2,327,814 2,331,098 2,307,508 Less: goodwill (19,168 ) (19,168 ) (19,168 ) (19,168 ) (19,168 ) Less: core deposit intangible (236 ) (250 ) (265 ) (279 ) (295 ) Tangible assets $ 2,272,123 $ 2,292,692 $ 2,308,381 $ 2,311,651 $ 2,288,045 TCE ratio (2) 7.80 % 7.73 % 7.49 % 7.38 % 7.43 % Tangible book value per share Tangible equity (2) $ 177,239 $ 177,220 $ 172,906 $ 170,625 $ 170,080 Shares outstanding (2) 7,503,731 7,427,127 7,428,366 7,402,163 7,392,412 Tangible book value per share (2) $ 23.62 $ 23.86 $ 23.28 $ 23.05 $ 23.01 (1) A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with U.S. GAAP. While management uses non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP. (2) Includes common stock and Series A preferred stock. HANOVER BANCORP, INC. NET INTEREST INCOME ANALYSIS For the Three Months Ended March 31, 2025 and 2024 (unaudited, dollars in thousands) 2025 2024 Average Average Average Average Balance Interest Yield/Cost Balance Interest Yield/Cost Assets: Interest-earning assets: Loans $ 1,989,796 $ 29,984 6.11 % $ 1,984,075 $ 29,737 6.03 % Investment securities 85,839 1,186 5.60 % 94,845 1,457 6.18 % Interest-earning cash 133,458 1,482 4.50 % 74,672 1,014 5.46 % FHLB stock and other investments 8,014 185 9.36 % 9,243 224 9.75 % Total interest-earning assets 2,217,107 32,837 6.01 % 2,162,835 32,432 6.03 % Non interest-earning assets: Cash and due from banks 9,504 7,945 Other assets 49,695 49,941 Total assets $ 2,276,306 $ 2,220,721 Liabilities and stockholders' equity: Interest-bearing liabilities: Savings, N.O.W. and money market deposits $ 1,217,429 $ 11,455 3.82 % $ 1,161,191 $ 12,933 4.48 % Time deposits 490,979 5,320 4.39 % 486,779 4,962 4.10 % Total savings and time deposits 1,708,408 16,775 3.98 % 1,647,970 17,895 4.37 % Borrowings 108,972 1,107 4.12 % 137,788 1,276 3.72 % Subordinated debentures 24,693 326 5.35 % 24,639 326 5.32 % Total interest-bearing liabilities 1,842,073 18,208 4.01 % 1,810,397 19,497 4.33 % Demand deposits 211,028 194,672 Other liabilities 24,726 27,959 Total liabilities 2,077,827 2,033,028 Stockholders' equity 198,479 187,693 Total liabilities & stockholders' equity $ 2,276,306 $ 2,220,721 Net interest rate spread 2.00 % 1.70 % Net interest income/margin $ 14,629 2.68 % $ 12,935 2.41 %