HV Bancorp, Inc. Closes on a $10 Million Fixed to Floating Rate Subordinated Note
June 01 2021 - 4:58PM
HV Bancorp, Inc. (the “Company”) (Nasdaq Capital Market: HVBC), the
holding company of Huntingdon Valley Bank (the “Bank”), announced
today the completion of its private placement of $10
million of a 4.50% Fixed to Floating Rate Subordinated Note
(the “Note”).
The Note will have a maturity date of May 28,
2031, and initially bear interest, payable semi-annually in
arrears at a fixed annual rate of 4.50% per annum until May
28, 2026. Commencing on that date, the interest rate applicable to
the outstanding principal amount due will reset quarterly to an
interest rate per annum equal to the then current three-month
average secured overnight financing rate (SOFR) plus 325 basis
points, payable quarterly in arrears until maturity. The Company
may redeem and pay the Note at par, in whole or in part, at its
option, anytime beginning on or after May 28, 2026. The Note
is intended to qualify as Tier 2 capital for regulatory capital
purposes for the Company.
Travis J. Thompson, Esq., Chairman, President & CEO,
commented, “The growth of HVB in recent years is the culmination of
a vision shared across the organization, that a community bank can
outperform given the proper strategic initiatives and superior
execution. This private placement of $10 million will
enable HVB to continue its historic growth in each of our business
lines, expanding relationships throughout the Greater Philadelphia
Market. It was a pleasure working with Fulton Bank on their
purchase of the entire subordinated debt offering.”
The Company intends to use the net proceeds from the private
placement for general corporate purposes and to support the Bank’s
organic growth initiatives. This press release is for
informational purposes only and shall not constitute an offer to
sell, or the solicitation of an offer to buy, any security, nor
shall there be any sale in any jurisdiction in which such an offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such jurisdiction. The
Note has not been registered under the Securities Act and may not
be offered or sold in the United States absent
registration or an applicable exemption from registration
requirements. The indebtedness evidenced by the Note is not a
deposit and is not insured by the Federal Deposit Insurance
Corporation or any other government agency or fund.
About HV Bancorp, Inc.
HV Bancorp, Inc. (Nasdaq Capital Market: HVBC)
is a bank holding company headquartered in Doylestown, PA. Through
its wholly owned subsidiary Huntingdon Valley Bank, we primarily
serve communities located in Montgomery, Bucks and Philadelphia
Counties in Pennsylvania, New Castle County in Delaware, and
Burlington County in New Jersey from our executive office, seven
full service bank offices and one limited service bank
office. We also operate five loan production and sales offices
in our geographical footprint.
Forward-Looking StatementsCertain statements
contained herein are "forward looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Such forward-looking
statements may be identified by reference to a future period or
periods, or by the use of forward looking terminology, such as
"may," "will," "believe," "expect," "estimate," "anticipate,"
"continue," or similar terms or variations on those terms, or the
negative of those terms. Such forward-looking statements are
subject to risk and uncertainties described in our SEC filings,
which could cause actual results to differ materially from those
currently anticipated due to a number of factors, which include,
but are not limited to, the negative impact of severe wide-ranging
and continuing disruptions caused by the spread of coronavirus
COVID-19 on current operations, customers and the economy in
general, changes in interest rate environment, increases in
nonperforming loans, legislative and regulatory changes that
adversely affect the business of the Company and the Bank, and
changes in the securities markets. Except as required by law, the
Company does not undertake any obligation to update any
forward-looking statements to reflect changes in belief,
expectations or event.
Contact: Joseph C. O’Neill, Jr.,EVP/ Chief Financial
Officer(267) 280-4000
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