Hanover Bancorp, Inc. /MD (NASDAQ: HNVR)

Hanover Bancorp, Inc. /MD operates as a holding company for Hanover Community Bank, a New York chartered community commercial bank. The bank focuses on providing highly personalized and efficient services and products tailored to local needs, primarily serving the New York metro area and parts of New Jersey. The company completed its reincorporation from New York to Maryland in June 2025, reflecting its strategic evolution and growth. As of December 31, 2025, Hanover Bancorp reported total assets of $2.38 billion, total loans of $2.00 billion, total deposits of $2.03 billion, and total stockholders' equity of $200.3 million, underscoring its significant presence in the regional banking sector.

Hanover Bancorp generates revenue through a diversified portfolio of banking services, including personal and business loans, deposit accounts, and various financial products. The bank's primary products include residential and commercial real estate loans, commercial and industrial loans, and Small Business Administration (SBA) loans. Its customer base comprises individuals, small and medium-sized businesses, and municipalities, catering to a broad spectrum of financial needs. The bank's revenue streams are further bolstered by non-interest income from fees such as insufficient funds fees, stop payment fees, safe deposit rental fees, ATM fees, and debit card interchange fees.

• Residential Real Estate: This segment focuses on originating non-qualified, alternative documentation, single-family residential mortgage loans through broker referrals or the branch network. Key products include the Residential Investor Program (RIP), designed for two- to four-family units, as well as home equity loans and first-time home buyer loans. The segment caters to diverse communities in the New York City Metropolitan Statistical Area (MSA), with a particular appeal to Asian American borrowers.

• Commercial Real Estate: The bank offers real estate loans secured by multifamily properties and owner-occupied and non-owner-occupied commercial properties. The portfolio includes loans secured by market rent properties and rent-controlled/stabilized properties in New York City, as well as mixed-use and commercial properties. The weighted average loan-to-value (LTV) ratio for this portfolio was 54% as of December 31, 2025, indicating a focus on high-quality credits with acceptable LTV ratios and strong cash flow.

• Commercial and Industrial (C&I) Loans: This segment provides a mix of variable and fixed-rate loans to small and medium-sized businesses for working capital needs, business expansions, and trade financing. Loans are extended on both secured and unsecured bases, with maturities ranging from twelve to twenty-four months for lines of credit and five to ten years for term loans. C&I lending is expected to be a key component of the bank's growth strategy.

• Small Business Administration (SBA) Loans: The bank offers SBA 7(a) variable-rate loans, primarily to small-sized manufacturing, wholesale, retail, hotel/motel, and service businesses. These loans are used for working capital needs or to finance the purchase of real estate, equipment, or business expansions. SBA loans are secured by commercial real estate and/or business assets, with maturities up to 25 years for real estate-secured loans and generally 10 years for non-real estate-secured loans.

• Municipal Banking: Hanover Bancorp has expanded its deposit products to include a full line of municipal banking accounts, capturing additional customers in its operating footprint. This business provides banking services to public municipalities, including counties, cities, towns, and school districts, throughout the Long Island area. The municipal deposits as of December 31, 2025, amounted to $700.7 million at a weighted average rate of 3.01%.

Hanover Bancorp operates in a highly competitive financial services industry, competing with other banks, nonbank institutions, internet-based banks, and financial technology companies. Key competitors include other community banks and larger financial institutions that advertise in or serve the same markets. The bank's competitive advantages include strong local community ties, extensive knowledge of the markets it operates in, and a focus on high-quality credits with acceptable loan-to-value ratios. The bank's management team leverages its experience with federal and New York bank regulatory agencies to create a bank that emphasizes strong credit quality, a solid balance sheet, and a robust capital base.

The bank's customer base is diverse, encompassing individuals, small and medium-sized businesses, and municipalities. Specific customers are not named in the filing, but the general customer base includes a wide range of clients from the New York metro area and parts of New Jersey, reflecting the bank's broad market reach and service offerings. The bank's focus on personalized and efficient services tailored to local needs positions it well to meet the financial requirements of its diverse customer base.