Hanover Bancorp Sees Net Interest Income Rise 11.85% to $16.4M, Declares $0.10 Dividend
Hanover Bancorp reported Q1 2026 net interest income of $16.4 million, up 11.85% year-over-year and margin expansion to 2.96%, the highest since Q3 2022. It completed a $35 million subordinated note placement at 7.25%, restructured $60.3 million of FHLB advances cutting borrowing costs to 3.47%, and declared a $0.10 dividend.
1. Q1 Financial and Margin Results
Hanover Bancorp reported net interest income of $16.4 million for the quarter ended March 31, 2026, up 11.85% year-over-year and 3.36% quarter-over-quarter, driving net interest margin to 2.96%, the highest since Q3 2022. The company posted net income of $1.9 million ($0.25 per diluted share) and adjusted net income of $4.0 million ($0.54 per diluted share) excluding severance costs.
2. Debt Placement and Funding Optimization
On March 12, 2026, Hanover completed a private placement of $35 million of 7.25% fixed-to-floating subordinated notes due 2036, using proceeds to redeem its 8.54% floating-rate subordinated notes on April 15, 2026. In February, the bank restructured $60.3 million of FHLB advances into flexible, put-feature advances, lowering its weighted average borrowing cost from 4.27% to 3.47% and saving approximately $40,000 in monthly interest expense.
3. Dividend Declaration
The board 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 as of May 11, 2026, marking continued shareholder returns.
4. Long Island Branch Expansion
Regulatory authorization has been received to open a full-service branch in downtown Riverhead, New York, later this year. A temporary loan production office with business development staff became operational in March 2026 to support local market growth.