Hanover Bancorp (HNVR) opened Q1 2026 with total revenue of US$18.6 million and basic EPS of US$0.25, alongside trailing 12 month revenue of US$63.8 million and basic EPS of US$1.05. Over recent quarters, revenue has moved between US$17.6 million in Q4 2024, US$17.8 million in Q1 2025 and US$16.0 million to US$18.6 million through 2025 and into Q1 2026. Quarterly EPS has ranged from US$0.51 in Q4 2024 to US$0.20, US$0.33, US$0.47 and US$0.01 across 2025 before landing at US$0.25 this quarter. With a net interest margin of 2.96% and a cost to income ratio of 81.68% in Q1 2026, investors may now focus on how these margins affect the risk reward trade off behind the latest print.

See our full analysis for Hanover Bancorp.

With the headline figures set, the next step is to see how these results line up with the prevailing stories around Hanover Bancorp's growth, risk and profitability, and where the numbers start to challenge those narratives.

2.96% net interest margin with high cost base

• Net interest margin was 2.96% in Q1 2026 while the cost to income ratio sat at 81.68%, compared with 66.71% in Q3 2025 and 68.73% in Q2 2025.
• What stands out for a bullish read is that margin has moved from 2.44% on a trailing 12 month basis in Q4 2024 to 2.75% in Q4 2025 and 2.96% in Q1 2026. However, operating efficiency is still stretched, which challenges a simple bullish view that higher spreads alone will quickly translate into stronger profitability.
  • Revenue over the last 12 months was US$63.8 million with net income of US$7.6 million, giving a 12% net margin versus 14.6% a year earlier even with the higher margin.
  • Bulls who focus on forecast earnings growth of about 47.7% per year need to factor in that the elevated cost to income ratio leaves less room for earnings to benefit from improved spreads unless costs are kept in check.

Credit quality and US$24.6m in non performing loans

• Non performing loans were US$24.6 million in Q1 2026 compared with US$21.6 million in Q4 2025 and US$11.7 million in Q1 2025, and the allowance for bad loans is reported at 78%, below full coverage.
• Critics focusing on a bearish angle around credit risk see the rise in non performing loans and the 78% allowance level as key data points, and these align with the cautious view that credit cost pressure could eat into the 12% trailing net margin and the US$1.05 trailing EPS if problem loans stay elevated.
  • Over the last 12 months, net income of US$7.6 million includes a one off loss of US$5.5 million, which bearish investors may link to risk management concerns alongside higher non performing loans.
  • With total loans near US$2.0 billion through the period, even modest changes in non performing loans or provisioning can move earnings meaningfully, which bears use to argue that richer valuation multiples leave less room for negative surprises.

Stay on top of how management handles credit quality and provisioning as conditions change by comparing these figures across future filings and updates 🐻 Hanover Bancorp Bear Case.

Rich valuation versus 21.9x P/E and DCF fair value

• The shares trade at a P/E of 21.9x compared with a peer average of 12.8x and a US Banks industry average of 11.5x, and the current price of US$23.30 sits above a DCF fair value estimate of about US$19.78 and an analyst price target of US$23.50.
• What is interesting for a bullish narrative is that forecasts call for revenue growth of about 18.9% per year and earnings growth of roughly 47.7% per year even though trailing 12 month earnings declined about 7.7% annually over the past five years and net margin moved from 14.6% to 12%. This means the strong growth story is being weighed against both a rich multiple and softer recent profitability.
  • Trailing 12 month EPS is US$1.05 versus a Q1 2026 quarterly EPS of US$0.25, and that period includes the US$5.5 million one off loss that affects how investors read the current P/E against underlying earning power.
  • With total trailing 12 month revenue at US$63.8 million and net income at US$7.6 million, the tension between optimistic growth forecasts and the higher P/E relative to peers is central to how investors judge whether the current US$23.30 price already reflects that outlook.

If you want to see how others connect these growth expectations, margins and valuation multiples into a single story, check out the community views on Hanover Bancorp 📊 Read the what the Community is saying about Hanover Bancorp..

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Hanover Bancorp's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

With bulls and bears both finding support in the numbers, now is a good time to review the figures yourself, pressure test the narratives on both sides, and see how the 1 key reward and 2 important warning signs fit into your view 1 key reward and 2 important warning signs.

See What Else Is Out There

Hanover Bancorp carries a high 21.9x P/E, elevated costs and rising non performing loans, which together raise questions around efficiency and risk.

If you want ideas where earnings quality and balance sheet strength sit closer to your comfort zone, start comparing options using the 72 resilient stocks with low risk scores.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.