Overview

* Hanover Q3 net income rises to $3.5 mln, up from $2.4 mln in prior quarter

* Net interest income grows 16.19% yr/yr to $15.2 mln

* Company's net interest margin improves to 2.74% from 2.37% yr/yr

Outlook

* Company expects normalized effective tax rate of 25.0% for remainder of the year

* Company sees continued influence from FOMC rate decreases on performance

* Company anticipates growth in C&I lending and deposit activity

Result Drivers

* NET INTEREST INCOME - Increase driven by improved net interest margin, rising to 2.74% from 2.37% yr/yr

* DEPOSIT GROWTH - Demand deposits increased $21.3 mln, or 10.08%, underscoring success of C&I and Municipal banking verticals

* LOAN DIVERSIFICATION - Focus on reducing commercial real estate concentration and expanding niche-residential and conventional C&I loans

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Net $3.49

Income mln

Q3 Net $15.22

Interest mln

Income

Q3 Loan $1.32

Loss mln

Provisio

n

Q3 $4.67

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the banks peer group is "buy."

* Wall Street's median 12-month price target for Hanover Bancorp Inc ( HNVR ) is $24.00, about 16% above its October 29 closing price of $20.17

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)