Shares of Hanover Bancorp Inc (NASDAQ: HNVR) moved higher in after-hours trading on Wednesday, rising approximately 2% after the company disclosed a new share repurchase authorization.
The board of directors approved a program to buy back up to 370,000 shares of the company’s common stock, which the company estimates is roughly 5% of its outstanding common shares. The repurchase authorization will remain effective through August 17, 2027 and will commence only after the completion of an earlier buyback program that was approved on October 5, 2023.
Under the terms announced, management may repurchase shares in the open market or through privately negotiated transactions as market conditions permit. The company said that some or all purchases could be executed pursuant to a Rule 10b5-1 trading plan, which allows prearranged repurchases under predetermined terms during times when insiders might otherwise be limited in trading activity.
The company emphasized that the timing, amount, and price at which repurchases occur will be left to management’s discretion. Execution will depend on multiple factors including the company’s stock price, prevailing market conditions, applicable securities laws, and the firm’s capital requirements. The board retains authority to alter, suspend, or terminate the program at any time.
Hanover Bancorp conducts its banking operations through its subsidiary, Hanover Community Bank, which serves customers on Long Island. The parent company is headquartered in Mineola, New York.
Separately, Raymond James analyst Tim DeLacey initiated coverage on Hanover Bancorp with a Market Perform rating. DeLacey noted the company appears positioned to realize improved profitability through loan repricing and growth of the balance sheet. However, he also flagged near-term credit uncertainty tied to the bank’s exposure to rent-stabilized multifamily properties, and said that consideration of those risks supports a cautious, balanced view on the shares.
Market reaction to the repurchase announcement was limited but positive in after-hours trading, reflecting investor attention to the company’s capital allocation move. The buyback authorization and the analyst initiation provide investors with updated signals about capital policy and the outlook for earnings drivers, while the noted credit uncertainties underscore areas of potential near-term pressure.
Company profile
Hanover Bancorp operates via Hanover Community Bank and is based in Mineola, New York, serving a Long Island customer base.