Parent Company Only Condensed Financial Information

12 Months Ended

Sep. 30, 2022

Parent Company Only Condensed Financial Information [Abstract]

Parent Company Only Condensed Financial Information

Note 16. Parent Company Only Condensed Financial Information

Condensed parent company only financial statements of Hanover Bancorp, Inc. are as follows:

Condensed Balance Sheets

	September 30,
(in thousands)	2022		2021
ASSETS
Cash and due from banks	$	304	$	571
Investment in Bank		197,290		146,232
Other assets		141		1,050
Total Assets	$	197,735	$	147,853
LIABILITIES AND STOCKHOLDERS' EQUITY
Subordinated debentures	$	24,568	$	24,513
Accrued interest payable		573		576
Accrued expenses and other liabilities		10		235
Total Liabilities		25,151		25,324
Total Stockholders' Equity		172,584		122,529
Total Liabilities and Stockholders' Equity	$	197,735	$	147,853

Condensed Statements of Income

	Year Ended September 30,
(in thousands)	2022		2021
Dividends received from Bank	$	400	$	—
Interest expense		(1,331)		(1,361)
Non-interest expense		(18)		—
Loss before income taxes and equity in undistributed earnings of the Bank		(949)		(1,361)
Income tax benefit		253		296
Equity in undistributed earnings of the Bank		24,252		11,916
Net income	$	23,556	$	10,851

Condensed Statements of Cash Flows

	Year Ended September 30,
(in thousands)	2022		2021
Cash flows from operating activities:
Net income	$	23,556	$	10,851
Adjustments to reconcile net income to net cash used in operating activities:
Equity in undistributed earnings of the Bank		(24,252)		(11,916)
Amortization of debt issuance costs		55		72
Decrease (increase) in other assets		909		(295)
(Decrease) increase in accrued interest payable		(3)		542
(Decrease) increase in other liabilities		(223)		235
Net cash provided by (used in) operating activities		42		(511)
Cash flows from investing activities:
Investment in Bank		(26,000)		(9,000)
Net cash used in investing activities		(26,000)		(9,000)
Cash flows from financing activities:
Proceeds from issuance of subordinated debentures, net of issuance costs		—		24,455
Repayment of note payable		—		(15,000)
Net proceeds from issuance of common stock		27,771		113
Payments related to tax withholding for equity awards		(28)		—
Cash dividends paid to common stockholders		(2,052)		—
Net cash provided by financing activities		25,691		9,568
Net (decrease) increase in cash and due from banks		(267)		57
Cash and due from banks, beginning of period		571		514
Cash and due from banks, end of period	$	304	$	571
Supplemental non-cash disclosures:
Common stock issued in acquisition	$	—	$	31,252
Stock options rolled over in acquisition		—		1,269