Hanover Bancorp, Inc. /MD

Hanover Bancorp, Inc. is the Maryland-incorporated holding company for Hanover Community Bank, a New York-chartered community commercial bank focused on personalized banking for local businesses and households. The bank serves the New York metro area and nearby New Jersey through branch-based deposit gathering, commercial lending, residential mortgage lending, and niche products tailored to local communities and municipal customers.

— Hanover Bancorp, Inc. /MD
%
Commercial lending45% Loans to businesses, including commercial real estate, commercial lines and secured lending.
Residential mortgage lending20% One- to four-family non-qualified mortgages and related consumer real estate lending.
Consumer and specialty lending10% Personal loans, home equity loans, bridge loans and niche lending products.
Deposit services20% Demand, savings, NOW, money market, time and municipal deposit accounts.
Treasury and digital banking services5% Internet banking, mobile banking, bill pay, debit cards and ACH services.

Hanover serves small and mid-sized businesses, local commercial real estate borrowers, and households in the New York...

  • Small and mid-sized businessesprimary

    They buy commercial loans, lines of credit and operating deposit accounts to fund working capital and expansion.

  • Commercial real estate borrowersprimary

    They use owner-occupied and investor real estate loans for acquisition, refinancing and development needs.

  • Households and mortgage borrowerssecondary

    They buy one- to four-family mortgage and consumer lending products for home financing and liquidity.

  • Municipal customersprimary

    They place deposits with the bank for treasury and cash management needs, supporting low-cost funding.

  • Specialty community segmentssecondary

    Includes Asian American borrowers and licensed cannabis businesses served through niche offerings.

Hanover’s business is concentrated in the New York metro area, with offices in Nassau, Suffolk, Queens, Kings...

  • •Core market is the New York metro area and nearby New Jersey
  • •Branch footprint spans Nassau, Suffolk, Queens, Kings and Manhattan
  • •Freehold, Monmouth County extends reach into central New Jersey
  • •Suffolk County expansion supports business banking and deposit growth
  • •Local concentration increases sensitivity to regional real estate cycles

Hanover is building a digitally enabled community bank while preserving its relationship-based local model...

01
Digital and core processing modernizationshort-term

Improves efficiency, customer convenience and competitive positioning versus larger banks and fintechs.

02
Diversified local lending growthmedium-term

Reduces concentration risk while supporting earnings through commercial, mortgage and consumer lending.

03
Deposit franchise expansionmedium-term

Stable, low-cost deposits are critical to funding loans and limiting reliance on wholesale funding.

04
Capital and balance sheet disciplineshort-term

Supports regulatory compliance, growth capacity and resilience through economic cycles.

Hanover’s earnings are tied to the New York metro economy and to real estate collateral values, so a regional downturn...

high

Regional economic concentration

A substantial portion of business is in the New York metro area, so local recession or property weakness can hurt loan performance and deposit growth.

Scope
New York metro area
Materiality
high
high

Real estate credit risk

A large share of loans are secured by real estate, making the portfolio sensitive to collateral declines and foreclosure costs.

Scope
Commercial real estate and multifamily loans
Materiality
high
high

Interest rate and liquidity risk

Deposit pricing, wholesale funding and swap usage can compress margins or create funding stress when rates move sharply.

Scope
Brokered CDs, listing service CDs, ICS deposits
Materiality
high
high

Regulatory and compliance burden

Banking, BSA/AML and cannabis-related services require strict controls and can lead to enforcement actions if mismanaged.

Scope
State and federal banking regulation
Materiality
high
medium

Cybersecurity and technology implementation

Digital banking and core conversion increase operational complexity and create breach or outage risk.

Scope
FIS Horizon conversion and online/mobile banking
Materiality
medium
Allowance for credit losses
Provision expense and reserve balance
Goodwill impairment
Non-cash charge to earnings and equity
Derivative accounting
Equity volatility and funding cost management
Investment portfolio fair value
Reported equity and capital ratios

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: 28/04/2026