HV Bancorp, Inc. (the “Company” or “HVB”) (Nasdaq Capital Market:
HVBC), the holding company of Huntingdon Valley Bank (the “Bank”),
reported operating results for the Company for the quarter and six
months ended June 30, 2021. Net income for the quarter ended June
30, 2021 was $1.3 million or ($0.65 per basic share and $0.63 per
diluted share) versus net income of $1.5 million or ($0.73 per
basic and diluted shares), for the quarter ended June 30, 2020. Net
income for the six months ended June 30, 2021 was $2.6 million
($1.30 per basic share and $1.27 per diluted share) versus net
income of $1.6 million ($0.80 per basic and diluted shares) for the
six months ended June 30, 2020.
At June 30, 2021, the Company had total assets
of $548.6 million (29.2% increase over second quarter 2020), total
deposits of $437.4 million (45.5% increase over second quarter
2020) and total shareholders’ equity of $41.4 million (17.3%
increase over second quarter 2020). For the six months ended
June 30, 2021, return on assets (“ROA”) and return on equity
(“ROE”) was 0.82% and 13.25%, respectively. This continued high
performance resulted in a 21% year over year increase in Book Value
for the Company from $15.75 per share to $19.04 per share.
Travis J. Thompson, Esq., Chairman, President
& CEO, commented, “HVB’s outstanding year to date performance
is the direct result of the dedication demonstrated by the HVB team
as we continue to navigate the challenges of the COVID-19 pandemic.
Residential Mortgage originations continued its robust pace closing
1,302 new loans totaling $340 million, while the Business Banking
team successfully facilitated $64.7 million in forgiveness for the
first round of the Payment Protection Program in addition to new
commercial loan originations totaling $73 million year to date. We
closely monitor all modified loans and any other loans to customers
potentially at risk due to the COVID-19 induced economic slowdown
and we have adjusted our loan loss provisions accordingly.”
Finally, Mr. Thompson noted, “The recent
completion of our $10 million subordinated debt offering will
enable HVB to continue its high performing growth in each of our
business lines. We have already begun to put this capital to work
by opening our newest branch location in South Philadelphia, a
commercial lending office in Delaware, and a residential lending
office in Tampa, Florida.”
Highlights for the quarter and six months ended June 30,
2021 include:
- For the six month period, net
income was $2.6 million compared to $1.6 million in the same period
in 2020.
- Book value per share increased from
$15.75 at June 30, 2020, to $19.04 at June 30, 2021.
- Closed on a $10 million
subordinated debt note in May which will be used to further the
Company’s growth strategy.
- Net interest income increased $1.0
million and $2.1 million to $3.5 million and $6.8 million,
respectively, for the three and six months ended June 30, 2021 from
$2.6 million and $4.7 million, respectively, for the three and six
months ended June 30, 2020, respectively.
- For the six months ended June 30,
2021, total interest and non-interest income was $15.8 million, an
increase of $3.4 million or 27.3% higher from the same period in
2020.
COVID-19 Update:
- Through participation in the United
States Small Business Administration’s (“SBA”) Paycheck Protection
Program (“PPP”), the Company processed over 450 applications from
new and existing customers with an aggregate outstanding balance of
$25.3 million as of June 30, 2021, in the first round of PPP loans.
The forgiveness process of the first round of PPP loans began in
the fourth quarter of 2020 with approximately $64.7 million in PPP
forgiveness received through July 31, 2021. In the first quarter of
2021, the Company processed over 340 applications with an aggregate
outstanding balance of $46.2 million in the second round of PPP
loans.
- As of June 30, 2021, there were
four borrowers with an aggregate outstanding balance of $1.9
million in payment deferral.
- The Company continues to monitor
its liquidity and capital. As of June 30, 2021, the Bank’s capital
ratios exceeded “well-capitalized” requirements (see selected
consolidated financial data and other data). As of June 30, 2021,
the Company maintained $79.5 million, or 14.5% of total assets, of
cash and cash equivalents and $166.6 million, or 30.4% of total
assets, of available borrowing capacity. The $166.6 million of
available borrowing capacity consisted of unused borrowing capacity
of $109.0 million at the Federal Home Loan Bank of Pittsburgh,
$53.9 million of borrowing capacity with the Federal Reserve’s
Paycheck Protection Program Liquidity Facility (“PPPLF”), $3.0
million of borrowing capacity from the Atlantic Community Bankers
Bank and a $657,000 line of credit at the Federal Reserve Bank of
Philadelphia.
Balance Sheet: June 30, 2021, compared to December 31,
2020
Total assets decreased $313.0 million to $548.6
million at June 30, 2021 from $861.6 million at December 31, 2020.
The decrease was primarily the result of decreases of $335.1
million in cash and cash equivalents and $14.1 million in loans
held for sale, offset by increases of $21.7 million in net loans
receivable, $10.2 million in investment securities, $1.4 million in
right-of-use asset, and $1.1 million in mortgage servicing rights
and $602,000 in other assets. Cash and cash equivalents decreased
$335.1 million to $79.5 million at June 30, 2021 from $414.6
million at December 31, 2020 as a result of anticipated outflows of
retail deposits in our core deposit from certain accounts.
Total liabilities decreased $315.6 million, or
38.4%, to $507.1 million at June 30, 2021, from $822.7 million at
December 31, 2020. The decrease in total liabilities was primarily
from a $293.4 million decrease in deposits, $31.1 million decrease
in advances from the PPPLF, $1.7 million decrease in other
liabilities offset by the issuance of a $10.0 million subordinated
note and $1.5 million increase in operating lease liabilities.
Deposits decreased $293.4 million, or 40.1%, to $437.4 million at
June 30, 2021 from $730.8 million at December 31, 2020. Our core
deposits (consisting of demand deposits, money market, passbook and
statement and checking accounts) decreased $278.2 million, or
41.6%, to $390.5 million at June 30, 2021 from $668.7 million at
December 31, 2020 as there was an anticipated decrease in certain
retail accounts in our core deposits during the first quarter of
2021. Certificates of deposit decreased $15.2 million, or 24.5%, to
$46.9 million at June 30, 2021 from $62.1 million at December 31,
2020. The decrease in certificates of deposit was the result of a
$10.0 million decrease of certificates of deposit issued through
brokers and a $5.2 million decrease in retail growth of
certificates of deposit.
Total shareholders’ equity increased $2.5
million to $41.4 million at June 30, 2021 compared to
$38.9 million at December 31, 2020 primarily as a result of
net income of $2.6 million for the six months ended June 30, 2021,
share based compensation expense of $121,000, ESOP shares committed
to be released of $77,000 and a stock option exercises of $28,000.
Offsetting these increases was other comprehensive loss of $33,000
due to the fair value adjustments, net of deferred tax, on the
investment securities available-for-sale portfolio and $267,000 in
treasury stock repurchases primarily as part of the stock
repurchase plan approved in April 2019.
Income Statement: For the quarter and
six months ended June 30, 2021, compared to June 30,
2020
Net Interest Income:
Net interest income increased $1.0 million to
$3.5 million for the quarter ended June 30, 2021, from $2.6 million
for the quarter ended June 30, 2020. The increase reflected a $22.1
million increase in our net interest-earning assets, which
increased to $92.7 million for the quarter ended June 30, 2021 from
$70.6 million for the quarter ended June 30, 2020. Net interest
income increased $2.1 million to $6.8 million for the six months
ended June 30, 2021 from $4.7 million for six months ended June 30,
2020. Our net interest-earning assets increased $25.7 million to
$88.5 million for the six months ended June 30, 2021 from $62.8
million for the six months ended June 30, 2020.
Provision for loan losses:
Provision for loan losses decreased by $183,000
to $267,000 for the quarter ended June 30, 2021 from $450,000
during the quarter ended June 30, 2020. During the quarter ended
June 30, 2021, no net charge-offs were recorded. Provision for loan
losses decreased by $146,000 to $415,000 for the six months ended
June 30, 2021 from $561,000 during the six months ended June 30,
2020. During the six months ended June 30, 2021 and 2020, net
charge-offs of $172,000 and $153,000 were recorded. Due to
continued uncertainty of the economic conditions resulting from the
COVID-19 pandemic, the Company increased the qualitative factors in
the calculation of the allowance for loan losses. The Company will
continue to monitor and make additional adjustments to the
allowance for loan losses as necessary.
Non-Interest Income:
Non-interest income was $3.9 million and $8.0
million for the quarter and six months ended June 30, 2021,
respectively, compared to $3.9 million and $6.1 million for the
same periods in 2020. The increase in non-interest income of $1.9
million to $8.0 million for the six months ended June 30, 2021 from
$6.1 million for the six months ended June 30, 2021 was primarily
due to a $4.1 million increase in the gain on sale of loans, net
offset by a decrease of $1.4 million in change in fair value of
loans held for sale, and a $1.0 million decrease on gain on
derivative instruments and a $141,000 decrease in gains on sale of
available-for-sale securities, net.
Non-Interest Expense:
Total non-interest expense increased $1.3
million, or 32.5%, to $5.3 million for the quarter ended June 30,
2021 from $4.0 million for the quarter ended June 30, 2020 and
increased $2.8 million, or 35.4%, to $10.7 million for the six
months ended June 30, 2021 from $7.9 million for the six months
ended June 30, 2020. The increase for the three months ended June
30, 2021 compared to the three months of June 30, 2020 was
primarily a result of an increase of $822,000 in salaries and
employee benefits, $256,000 in professional fees and other expenses
and $104,000 in occupancy expenses. Salaries increased as full time
equivalent (FTE) employees increased to one-hundred forty-six as of
June 30, 2021, from one-hundred as of June 30, 2020 primarily as a
result of the expansion of the Company’s lending and business
banking operations. For the six months ended June 30, 2021, the
increase was primarily a result of additional salaries and employee
benefits of $1.9 million, $244,000 in data processing related
operations costs, $236,000 in Federal deposit insurance premiums
and $232,000 in professional fees and other expenses.
Income Taxes:
Income tax expense was $544,000 and $1.0 million
for the quarter and six months ended June 30, 2021, respectively,
compared to $590,000 and $638,000 during the same periods in fiscal
year 2020. The decrease in income tax expense for the quarter ended
June 30, 2021 compared to the same period a year ago reflected a
decrease in income before taxes. The increase in income tax expense
for the six months ended compared to the same period a year ago
reflected an increase in income before taxes. The effective
tax rates were 29.8% and 28.5% for the quarter and six months ended
June 30, 2021, respectively, compared to 28.3% and 27.9% during the
same periods in fiscal year 2020.
Net Income & Book
Value:
Net income was $1.3 million, approximately $0.65
cents per basic share and $0.63 per diluted share for the three
months ended June 30, 2021, as compared to $1.5 million, or
approximately $0.73 cents per basic and diluted share for the three
months ended June 30, 2020. Net income increased $1.0 million to
$2.6 million, or approximately $1.30 cents per basic share and
$1.27 per diluted share for the six months ended June 30, 2021, as
compared to $1.6 million, or approximately $0.80 cents per basic
and diluted share for the six months ended June 30, 2020. Book
value per share increased from $15.75 at June 30, 2020 to $19.04 at
June 30, 2021.
Asset quality:
At June 30, 2021, the Company’s non-performing
assets totaled $2.8 million, or 0.51% of total assets compared
to $2.3 million, or 0.26% at December 31, 2020. Non-performing
loans increased $563,000 primarily because of a $577,000 increase
in one-to four-family residential real estate loans offset by a
$14,000 decrease in medical education loans compared to December
31, 2020. There were no non-accruing troubled debt restructurings
at June 30, 2021 and December 31, 2020.
The allowance for loan losses totaled $2.3
million, or 0.67% of total loans and 80.23% of total non-performing
loans at June 30, 2021 as compared to $2.0 million, or 0.64% of
total loans and 89.49% of total non-performing loans at December
31, 2020.
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, eight
full service bank offices and one limited service bank office. We
also operate four loan production offices in our geographical
footprint.
Forward-Looking Statements
Certain 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.
Selected Consolidated Financial and Other
Data (Unaudited)
|
At June 30,2021 |
|
|
At December 31,2020 |
|
|
At June 30,2020 |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
Financial Condition
Data: |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
548,561 |
|
|
$ |
861,607 |
|
|
$ |
424,738 |
|
Cash and cash equivalents |
|
79,518 |
|
|
|
414,590 |
|
|
|
28,651 |
|
Investment securities
available-for-sale, at fair value |
|
33,734 |
|
|
|
23,518 |
|
|
|
18,639 |
|
Equity securities |
|
500 |
|
|
|
500 |
|
|
|
500 |
|
Loans held for sale, at fair
value |
|
69,389 |
|
|
|
83,549 |
|
|
|
43,485 |
|
Loans receivable, net |
|
335,527 |
|
|
|
313,811 |
|
|
|
309,563 |
|
Deposits |
|
437,430 |
|
|
|
730,826 |
|
|
|
300,571 |
|
Federal Home Loan Bank
advances |
|
26,349 |
|
|
|
26,269 |
|
|
|
27,000 |
|
Federal Reserve PPPLF
advances |
|
17,568 |
|
|
|
48,682 |
|
|
|
47,834 |
|
Subordinated debt |
|
9,996 |
|
|
|
— |
|
|
|
— |
|
Total liabilities |
|
507,124 |
|
|
|
822,680 |
|
|
|
389,481 |
|
Total shareholders’
equity |
|
41,437 |
|
|
|
38,927 |
|
|
|
35,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
2021 |
|
|
2020 |
|
2021 |
|
|
2020 |
|
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
4,078 |
|
|
$ |
3,328 |
|
$ |
7,881 |
|
|
$ |
6,354 |
|
Interest expense |
|
|
546 |
|
|
|
758 |
|
|
1,082 |
|
|
|
1,691 |
|
Net interest income |
|
|
3,532 |
|
|
|
2,570 |
|
|
6,799 |
|
|
|
4,663 |
|
Provision for loan losses |
|
|
267 |
|
|
|
450 |
|
|
415 |
|
|
|
561 |
|
Net interest income after
provision for loan losses |
|
|
3,265 |
|
|
|
2,120 |
|
|
6,384 |
|
|
|
4,102 |
|
Gain on sale of loans,
net |
|
|
3,243 |
|
|
|
2,327 |
|
|
8,135 |
|
|
|
3,956 |
|
Other non-interest income
(loss) |
|
|
619 |
|
|
|
1,618 |
|
|
(170 |
) |
|
|
2,133 |
|
Non-interest income |
|
|
3,862 |
|
|
|
3,945 |
|
|
7,965 |
|
|
|
6,089 |
|
Non-interest expense |
|
|
5,301 |
|
|
|
3,979 |
|
|
10,733 |
|
|
|
7,908 |
|
Income before income
taxes |
|
|
1,826 |
|
|
|
2,086 |
|
|
3,616 |
|
|
|
2,283 |
|
Income tax expense |
|
|
544 |
|
|
|
590 |
|
|
1,032 |
|
|
|
638 |
|
Net income |
|
$ |
1,282 |
|
|
$ |
1,496 |
|
$ |
2,584 |
|
|
$ |
1,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share-Basic |
|
$ |
0.65 |
|
|
$ |
0.73 |
|
$ |
1.30 |
|
|
$ |
0.80 |
|
Earnings per share
-Diluted |
|
$ |
0.63 |
|
|
$ |
0.73 |
|
$ |
1.27 |
|
|
$ |
0.80 |
|
Average common shares
outstanding- Basic |
|
|
1,987,800 |
|
|
|
2,035,553 |
|
|
1,986,805 |
|
|
|
2,044,620 |
|
Average common shares
outstanding- Diluted |
|
|
2,042,240 |
|
|
|
2,035,553 |
|
|
2,027,581 |
|
|
|
2,044,620 |
|
Shares outstanding end of
period |
|
|
2,175,874 |
|
|
|
2,239,253 |
|
|
2,175,874 |
|
|
|
2,239,253 |
|
Book value per share |
|
$ |
19.04 |
|
|
$ |
15.75 |
|
$ |
19.04 |
|
|
$ |
15.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months EndedJune 30, |
|
|
For the Six Months EndedJune 30, |
|
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
(1) |
|
|
0.89 |
|
% |
|
1.53 |
|
% |
|
0.82 |
|
% |
|
0.88 |
|
% |
Return on average equity
(1) |
|
|
12.77 |
|
|
|
17.48 |
|
|
|
13.25 |
|
|
|
9.72 |
|
|
Interest rate spread (2) |
|
|
2.48 |
|
|
|
2.57 |
|
|
|
2.19 |
|
|
|
2.41 |
|
|
Net interest margin (3) |
|
|
2.56 |
|
|
2.75 |
|
|
2.26 |
|
|
2.62 |
|
|
Efficiency ratio (4) |
|
|
71.69 |
|
|
61.07 |
|
|
|
72.70 |
|
|
73.55 |
|
|
Average interest-earning
assets to average interest-bearing liabilities |
|
120.15 |
|
|
123.33 |
|
|
|
117.20 |
|
|
121.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios
(5): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets as a
percent of total assets |
|
|
0.51 |
|
% |
|
0.65 |
|
% |
|
0.51 |
|
% |
|
0.65 |
|
% |
Non-performing loans as a
percent of total loans |
|
0.83 |
|
|
|
0.89 |
|
|
0.83 |
|
|
|
0.89 |
|
|
Allowance for loan losses as a
percent of non-performing loans |
|
|
80.23 |
|
|
|
66.49 |
|
|
|
80.23 |
|
|
|
66.49 |
|
|
Allowance for loan losses as a
percent of total loans |
|
0.67 |
|
|
0.59 |
|
|
0.67 |
|
|
0.59 |
|
|
Net charge-offs (recoveries)
to average outstanding loans during the period |
|
|
0.00 |
|
|
|
0.05 |
|
|
|
0.05 |
|
|
|
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios:
(6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital
(to risk weighted assets) |
|
|
13.41 |
|
% |
|
13.87 |
|
% |
|
13.41 |
|
% |
|
13.87 |
|
% |
Tier 1 leverage (core) capital
(to adjusted tangible assets) |
|
|
8.10 |
|
|
8.24 |
|
|
|
8.10 |
|
|
8.24 |
|
|
Tier 1 risk-based capital (to
risk weighted assets) |
|
|
13.41 |
|
|
13.87 |
|
|
|
13.41 |
|
|
13.87 |
|
|
Total risk-based capital (to
risk weighted assets) |
|
|
14.10 |
|
|
|
14.68 |
|
|
|
14.10 |
|
|
|
14.68 |
|
|
Average equity to average
total assets (7) |
|
6.95 |
|
|
8.76 |
|
|
6.22 |
|
|
9.06 |
|
|
__________________ |
(1) |
Annualized for the three months ended June 30, 2021 and 2020. |
(2) |
Represents the difference between the weighted-average yield on
interest-earning assets and the weighted-average cost of
interest-bearing liabilities for the period. |
(3) |
The net interest margin represents net interest income as a percent
of average interest-earning assets for the period. |
(4) |
The efficiency ratio represents non-interest expense dividend by
the sum of the net interest income and non-interest income. |
(5) |
Asset quality ratios are period end ratios. |
(6) |
Capital ratios are for Huntingdon Valley Bank. |
(7) |
Represents consolidated average equity to average consolidated
total assets. |
Contact: Joseph C. O’Neill, Jr.,EVP/ Chief Financial
Officer(267) 280-4000
HV Bancorp (NASDAQ:HVBC)
Historical Stock Chart
From Jun 2024 to Jul 2024
HV Bancorp (NASDAQ:HVBC)
Historical Stock Chart
From Jul 2023 to Jul 2024