The Hermit at the beginning was a member of the Cult of Thorn.
It would explain why he didn't seem all that shocked or disturbed at encountering Michael, and why he took care of him for a year with no apparent reason.- If he was a part of the cult, why wouldn't he try to contact any other member (i.e. Wynn, Mrs. Blankenship)? Wouldn't it have been better for them if they had him contained?