Hanover Bancorp, Inc. /MD Revenue Disclosure
Note 21. Revenue from Contracts with Customers
All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within Non-Interest Income. The following table presents the Company’s sources of non-interest income. Items outside the scope of ASC 606 are noted as such.
Year Ended December 31, | ||||||
(in thousands) | | 2025 | 2024 | |||
Loan servicing and fee income(1) | $ | 4,270 | $ | 3,690 | ||
Service charges on deposit accounts |
| 750 |
| 469 | ||
Net gain on sale of loans held-for-sale(1) |
| 7,345 |
| 10,940 | ||
Net gain on sale of investments available-for-sale(1) |
| 215 |
| 31 | ||
Other income(2) |
| 263 |
| 209 | ||
Total non-interest income | $ | 12,843 | $ | 15,339 | ||
| (1) | Not included within the scope of ASC 606 |
| (2) | Other income includes merchant card processing fees of $38 and $48 for the year ended December 31, 2025 and 2024, respectively, which are included in the scope of ASC 606 and gain on sale of fixed assets, loan related fee income and miscellaneous income totaling $225 and $161 for the year ended December 31, 2025 and 2024, respectively, which are not included in the scope of ASC 606. |
A description of the Company’s revenue streams included in the scope of ASC 606 is as follows:
Service Charges on Deposit Accounts: The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Service-based fees, which include services such as ATM use fees, stop payment charges, wire transfers, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Company fulfills its performance obligation to the customer. Account maintenance fees, which primarily relate to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies its performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on customer accounts are withdrawn from the customer’s account balance.
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 Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.