Hanover Bancorp, Inc. /MD Debt Disclosure
Note 7. Borrowings
Federal Home Loan Bank (“FHLB”) Advances
At December 31, 2025 and 2024, FHLB term borrowings outstanding were $100.7 million and $107.8 million, respectively, all of which were fixed rate.
There were no FHLB overnight borrowings outstanding at December 31, 2025 and 2024.
The following tables set forth the contractual maturities in the next five years and weighted average interest rates of the Company’s fixed rate FHLB advances (dollars in thousands):
Balance at December 31, | ||||||
2025 | ||||||
Weighted | ||||||
Contractual Maturity | | Amount | | Average Rate | ||
Overnight | $ | — | — | % | ||
2026, rates from 4.29% to 4.98% | 40,475 | 4.50 | % | |||
2027, rates from 4.13% to 4.74% | 40,250 | 4.32 | % | |||
2028, rates from 3.99% to 4.58% |
| 20,000 |
| 4.18 | % | |
Total term advances | 100,725 | 4.36 | % | |||
Total FHLB advances | $ | 100,725 |
| 4.36 | % | |
Balance at December 31, | ||||||
2024 | ||||||
Weighted | ||||||
Contractual Maturity | | Amount | | Average Rate | ||
Overnight | $ | — | — | % | ||
2025, rates from 0.56% to 0.59% | 7,080 | 0.58 | % | |||
2026, rates from 4.29% to 4.98% | 40,475 | 4.50 | % | |||
2027, rates from 4.13% to 4.74% | 40,250 | 4.32 | % | |||
2028, rates from 3.99% to 4.58% |
| 20,000 |
| 4.18 | % | |
Total term advances |
| 107,805 |
| 4.11 | % | |
Total FHLB advances | $ | 107,805 |
| 4.11 | % | |
Each advance is payable at its maturity date, with a prepayment penalty for fixed rate advances. The advances were collateralized by residential and commercial mortgage loans under a blanket lien arrangement at December 31, 2025 and 2024. Based on this collateral and the Company’s holdings of FHLB stock, the Company was eligible to borrow up to an additional total of $8.9 million and $97.9 million at December 31, 2025 and 2024, respectively.
Federal Reserve Borrowings
The Company pledges residential and commercial loans and investments to the Federal Reserve Bank of New York’s Discount Window. Based on this collateral, the Company was eligible to borrow up to $97.3 million and $247.2 million as of December 31, 2025 and 2024, respectively. The Company did not have any outstanding borrowings against this line as of December 31, 2025 and 2024.
Correspondent Bank Borrowings
At December 31, 2025, approximately $92 million in unsecured lines of credit extended by correspondent banks were available to be utilized for short-term funding purposes. No borrowings were outstanding under lines of credit with correspondent banks at December 31, 2025 and 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
| 2023 | Dec 21, 2023 | |
| 2022 | Dec 23, 2022 | |
| 2021 | Dec 23, 2021 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.