Attractive Sub-TBV Entry Point w/ ROA Inflection Underway; Assume at Overweight

Research evidence excerpt

Attractive Sub-TBV Entry Point w/ ROA Inflection Underway; Assume at Overweight

C O M PA N Y N O T E

J u l y 1 0 , 2 0 2 6

Hanover Bancorp, Inc. (HNVR) Overweight

CONCLUSION PRICE: US$22.82

We assume coverage of Hanover Bancorp (HNVR) at Overweight with a $26.50 price TARGET: US$26.50

target, based on 1.0x our one-year forward TBV and a discount to peers given its sub- 1.00x our one-year out projected TBV

optimal profitability outlook. Headquartered in Mineola, NY with $2.4B assets and 10

branches across the NYC metro and NJ, HNVR operates a branch-lite and high-touch Adam Kroll, CFA

Research Analyst, Piper Sandler & Co.model that possesses an expertise within non-QM lending and is focused on diversifying 312 267-5071, adam.kroll@psc.com

the portfolio through C&I / Investor CRE growth. We view shares' current sub-TBV valuation

(at 0.93x vs. peers at 1.36x) as highly attractive with HNVR well-positioned to generate Changes Previous Current

steady profitability improvement closer to peers (PSCe ROA = 0.8% / 0.9% in 2026 / 27 vs. Rating — Overweight

0.4% in 2025) via continued NIM expansion, MSD B/S growth, and well-managed operating Price Tgt — US$26.50

FY26E EPS — US$2.41expenses. We believe HNVR's improving profitability coupled with more consistent credit

FY27E EPS — US$2.90

performance can act as a positive catalyst to narrow shares' discount to peers over time. FY26E TBV ($) — US$26.05

FY27E TBV ($) — US$28.41

• Anticipate Further NIM Expansion to Drive Profitability Improvement. We believe Market Cap. (mil) US$165.1

HNVR is well-positioned for continued NIM expansion through this year and next (PSCe Book Value/Share US$27.11

NIM = 3.15% / 3.33% in 4Q26 / 4Q27 vs. 2.96% in 1Q). This trajectory is supported by Tang. Book/Share $24.50