Mineola, NY-based Hanover Bancorp, Inc., a state commercial bank, announced Monday that it has entered into a new employment agreement with its Executive Vice President and Chief Financial Officer, Lance P. Burke. The agreement, effective July 18, 2024, outlines the terms of Burke’s compensation, benefits, and the conditions of his employment.
Under the terms of the new contract, Burke will receive an annual base salary of $350,000, which is subject to review by the company’s Board of Directors. In addition to his salary, Burke is eligible to participate in the company’s standard employee benefit and retirement plans. He will also receive an automobile allowance of up to $800 per month and reimbursement for reasonable business expenses.
The employment agreement has a three-year term, with an automatic renewal for one additional year unless either party provides notice within a specified timeframe before the anniversary of the effective date.
Should the company terminate Burke without "cause" or if Burke resigns under certain conditions defined in the agreement, he is entitled to a severance payment. This payment includes his current annual salary, the highest bonus from the past three years, and the total annual automobile allowance. Additionally, Burke would continue to receive health and life insurance benefits for a year post-termination or until he secures new employment that provides those benefits.
In the event of a change in control at Hanover Bancorp, Burke is set to receive a payment equal to twice the sum of his base salary, the highest bonus of the last three years, and his annual automobile allowance. This is subject to certain conditions to avoid excess parachute payments under the Internal Revenue Code.
Burke’s agreement includes standard confidentiality and non-solicitation clauses.
The information regarding this new employment agreement is based on a recent SEC filing by Hanover Bancorp, Inc. The company’s common stock is traded on the NASDAQ under the ticker symbol HNVR.
InvestingPro Insights
Amidst the new employment agreement with Lance P. Burke, Hanover Bancorp, Inc. (HNVR) presents a mix of financial metrics that could be of interest to investors. With a market capitalization of $125.42 million, the company's stock is trading at a P/E ratio of 8.3, which suggests a valuation that might appeal to value-oriented investors. The adjusted P/E ratio for the last twelve months as of Q2 2024 stands at 8.89, indicating a slight increase over the current P/E ratio.
InvestingPro Tips suggest that although Hanover Bancorp has been grappling with weak gross profit margins, analysts remain optimistic about the company's profitability prospects for the year. Moreover, the company has been profitable over the last twelve months, which could be a reassuring sign for stakeholders concerned about financial stability.
On the operational front, Hanover Bancorp has demonstrated a robust operating income margin of 34.48% for the last twelve months as of Q2 2024. This efficiency in operations may provide some confidence in the company's ability to manage expenses relative to its income. Additionally, the company's stock price is noted to often move in the opposite direction of the market, which could offer a degree of diversification for investors with a portfolio that tracks the broader market trends.
For those interested in further insights and analysis, there are additional InvestingPro Tips available, which can be accessed through the dedicated section for Hanover Bancorp on InvestingPro. Investors can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking a wealth of data and expert analysis to inform their investment decisions.
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