Hanover Q2 net income +66.4% to $4.1M on margin expansion; non-accruals double to 1.42%

Filed August 7, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 8, 2025 · ~2 min read

Key Changes

• high

  Non-accrual loans more than doubled to $28.3M (1.42% of loans) from $12.7M (0.64%) a year earlier; allowance coverage of non-accruals fell from 171% to 68%. Special Mention and Substandard loans rose 30% to $56.4M.

  MD&A: Asset Quality verify on EDGAR →
• high

  Net income rose 66.4% to $4.1M ($0.55 diluted EPS) from $2.4M ($0.33) in Q2 2025, driven by a 34-bp margin expansion to 3.10% and a $1.9M lower provision for credit losses, partially offset by lower SBA gain-on-sale.

  MD&A: Results of Operations verify on EDGAR →
• high

  SBA loan sales fell 63% to $8.3M from $22.3M in Q2 2025, with gain-on-sale dropping to $0.7M from $1.8M, attributed to a less favorable economic outlook and tighter credit standards.

  MD&A: SBA Loan Sales verify on EDGAR →