false FY 0001594555 --12-31 P30D P21Y PT1000H P6Y P7Y P15Y P5Y P3Y P40Y P40Y P15Y P7Y P27Y4M24D P27Y 8.0 10.0 21876000 6.0 29168000 8.0 22045000 4.0 27557000 5.0 16407000 0.045 23699000 0.065 8.0 10.0 16932000 6.0 22576000 8.0 19449000 4.0 24311000 5.0 12699000 0.045 18343000 0.065 P7Y7M6D P6Y7M6D P6Y7M6D P8Y7M6D P7Y7M6D P7Y7M6D 0.8161 1.0000 1.0100 1.0250 0.6370 0.9979 0.9237 1.0163 1.0660 1.0363 0001594555 2021-01-01 2021-12-31 xbrli:shares 0001594555 2022-03-10 iso4217:USD 0001594555 2021-06-30 0001594555 2021-12-31 0001594555 2020-12-31 iso4217:USD xbrli:shares 0001594555 2020-01-01 2020-12-31 0001594555 us-gaap:CommonStockMember 2019-12-31 0001594555 us-gaap:TreasuryStockMember 2019-12-31 0001594555 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001594555 us-gaap:RetainedEarningsMember 2019-12-31 0001594555 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001594555 hvbc:UnearnedEmployeeStockOwnershipPlanSharesMember 2019-12-31 0001594555 2019-12-31 0001594555 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-12-31 0001594555 hvbc:UnearnedEmployeeStockOwnershipPlanSharesMember 2020-01-01 2020-12-31 0001594555 us-gaap:CommonStockMember 2020-01-01 2020-12-31 0001594555 us-gaap:TreasuryStockMember 2020-01-01 2020-12-31 0001594555 us-gaap:RetainedEarningsMember 2020-01-01 2020-12-31 0001594555 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-12-31 0001594555 us-gaap:CommonStockMember 2020-12-31 0001594555 us-gaap:TreasuryStockMember 2020-12-31 0001594555 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001594555 us-gaap:RetainedEarningsMember 2020-12-31 0001594555 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0001594555 hvbc:UnearnedEmployeeStockOwnershipPlanSharesMember 2020-12-31 0001594555 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-12-31 0001594555 hvbc:UnearnedEmployeeStockOwnershipPlanSharesMember 2021-01-01 2021-12-31 0001594555 us-gaap:CommonStockMember 2021-01-01 2021-12-31 0001594555 us-gaap:TreasuryStockMember 2021-01-01 2021-12-31 0001594555 us-gaap:RetainedEarningsMember 2021-01-01 2021-12-31 0001594555 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-12-31 0001594555 us-gaap:CommonStockMember 2021-12-31 0001594555 us-gaap:TreasuryStockMember 2021-12-31 0001594555 us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0001594555 us-gaap:RetainedEarningsMember 2021-12-31 0001594555 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-12-31 0001594555 hvbc:UnearnedEmployeeStockOwnershipPlanSharesMember 2021-12-31 0001594555 2020-03-27 2020-03-27 hvbc:Loan 0001594555 hvbc:CoronavirusAidReliefAndEconomicSecurityActMember 2021-01-01 2021-12-31 0001594555 hvbc:CoronavirusAidReliefAndEconomicSecurityActMember hvbc:SmallBusinessAdministrationSBAPaycheckProtectionProgramMember 2021-12-31 0001594555 hvbc:CoronavirusAidReliefAndEconomicSecurityActMember hvbc:SmallBusinessAdministrationSBAPaycheckProtectionProgramMember srt:ScenarioForecastMember 2020-04-01 2022-03-31 0001594555 srt:MinimumMember 2021-01-01 2021-12-31 0001594555 srt:MaximumMember 2021-01-01 2021-12-31 xbrli:pure 0001594555 us-gaap:LandImprovementsMember 2021-01-01 2021-12-31 0001594555 us-gaap:BuildingAndBuildingImprovementsMember srt:MinimumMember 2021-01-01 2021-12-31 0001594555 us-gaap:BuildingAndBuildingImprovementsMember srt:MaximumMember 2021-01-01 2021-12-31 0001594555 us-gaap:LeaseholdImprovementsMember srt:MinimumMember 2021-01-01 2021-12-31 0001594555 us-gaap:LeaseholdImprovementsMember srt:MaximumMember 2021-01-01 2021-12-31 0001594555 us-gaap:FurnitureAndFixturesMember srt:MinimumMember 2021-01-01 2021-12-31 0001594555 us-gaap:FurnitureAndFixturesMember srt:MaximumMember 2021-01-01 2021-12-31 0001594555 us-gaap:ResidentialPortfolioSegmentMember hvbc:OneToFourFamilyMember 2021-12-31 0001594555 us-gaap:ResidentialPortfolioSegmentMember hvbc:OneToFourFamilyMember 2020-12-31 0001594555 us-gaap:CommercialPortfolioSegmentMember us-gaap:RealEstateLoanMember 2021-12-31 0001594555 us-gaap:CommercialPortfolioSegmentMember us-gaap:RealEstateLoanMember 2020-12-31 0001594555 us-gaap:DomesticCountryMember us-gaap:EarliestTaxYearMember 2021-01-01 2021-12-31 0001594555 us-gaap:DomesticCountryMember us-gaap:LatestTaxYearMember 2021-01-01 2021-12-31 0001594555 us-gaap:StateAndLocalJurisdictionMember us-gaap:EarliestTaxYearMember 2021-01-01 2021-12-31 0001594555 us-gaap:StateAndLocalJurisdictionMember us-gaap:LatestTaxYearMember 2021-01-01 2021-12-31 0001594555 us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2021-12-31 0001594555 us-gaap:CorporateDebtSecuritiesMember 2021-12-31 0001594555 us-gaap:CollateralizedMortgageObligationsMember 2021-12-31 0001594555 us-gaap:ResidentialMortgageBackedSecuritiesMember 2021-12-31 0001594555 us-gaap:USStatesAndPoliticalSubdivisionsMember 2021-12-31 0001594555 us-gaap:CertificatesOfDepositMember 2021-12-31 0001594555 us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2020-12-31 0001594555 us-gaap:CorporateDebtSecuritiesMember 2020-12-31 0001594555 us-gaap:CollateralizedMortgageObligationsMember 2020-12-31 0001594555 us-gaap:ResidentialMortgageBackedSecuritiesMember 2020-12-31 0001594555 us-gaap:USStatesAndPoliticalSubdivisionsMember 2020-12-31 0001594555 us-gaap:CertificatesOfDepositMember 2020-12-31 hvbc:Security 0001594555 hvbc:YearToDateMember 2021-12-31 0001594555 hvbc:LifeToDateMember 2021-12-31 0001594555 hvbc:YearToDateMember 2020-12-31 0001594555 hvbc:LifeToDateMember 2020-12-31 0001594555 hvbc:HomeEquityAndHomeEquityLinesOfCreditMember us-gaap:ResidentialPortfolioSegmentMember 2021-12-31 0001594555 hvbc:HomeEquityAndHomeEquityLinesOfCreditMember us-gaap:ResidentialPortfolioSegmentMember 2020-12-31 0001594555 hvbc:CommercialBusinessMember us-gaap:CommercialPortfolioSegmentMember 2021-12-31 0001594555 hvbc:CommercialBusinessMember us-gaap:CommercialPortfolioSegmentMember 2020-12-31 0001594555 us-gaap:CommercialPortfolioSegmentMember hvbc:SmallBusinessAdministrationSBACARESActPaycheckProtectionProgramMember 2021-12-31 0001594555 us-gaap:CommercialPortfolioSegmentMember hvbc:SmallBusinessAdministrationSBACARESActPaycheckProtectionProgramMember 2020-12-31 0001594555 hvbc:MainStreetLendingProgramMember us-gaap:CommercialPortfolioSegmentMember 2021-12-31 0001594555 hvbc:MainStreetLendingProgramMember us-gaap:CommercialPortfolioSegmentMember 2020-12-31 0001594555 hvbc:ConstructionPortfolioSegmentMember 2021-12-31 0001594555 hvbc:ConstructionPortfolioSegmentMember 2020-12-31 0001594555 us-gaap:StudentLoanMember us-gaap:ConsumerPortfolioSegmentMember 2021-12-31 0001594555 us-gaap:StudentLoanMember us-gaap:ConsumerPortfolioSegmentMember 2020-12-31 0001594555 hvbc:OtherLoansMember us-gaap:ConsumerPortfolioSegmentMember 2021-12-31 0001594555 hvbc:OtherLoansMember us-gaap:ConsumerPortfolioSegmentMember 2020-12-31 0001594555 us-gaap:StudentLoanMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2021-12-31 0001594555 us-gaap:StudentLoanMember us-gaap:ConsumerPortfolioSegmentMember 2021-01-01 2021-12-31 0001594555 us-gaap:UnallocatedFinancingReceivablesMember 2020-12-31 0001594555 us-gaap:ResidentialPortfolioSegmentMember hvbc:OneToFourFamilyMember 2021-01-01 2021-12-31 0001594555 us-gaap:ResidentialPortfolioSegmentMember hvbc:HomeEquityAndHomeEquityLinesOfCreditMember 2021-01-01 2021-12-31 0001594555 us-gaap:CommercialPortfolioSegmentMember us-gaap:RealEstateLoanMember 2021-01-01 2021-12-31 0001594555 us-gaap:CommercialPortfolioSegmentMember hvbc:CommercialBusinessMember 2021-01-01 2021-12-31 0001594555 hvbc:ConstructionPortfolioSegmentMember 2021-01-01 2021-12-31 0001594555 us-gaap:UnallocatedFinancingReceivablesMember 2021-01-01 2021-12-31 0001594555 us-gaap:ResidentialPortfolioSegmentMember hvbc:OneToFourFamilyMember 2019-12-31 0001594555 us-gaap:ResidentialPortfolioSegmentMember hvbc:HomeEquityAndHomeEquityLinesOfCreditMember 2019-12-31 0001594555 us-gaap:CommercialPortfolioSegmentMember us-gaap:RealEstateLoanMember 2019-12-31 0001594555 us-gaap:CommercialPortfolioSegmentMember hvbc:CommercialBusinessMember 2019-12-31 0001594555 hvbc:ConstructionPortfolioSegmentMember 2019-12-31 0001594555 us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2019-12-31 0001594555 us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2020-01-01 2020-12-31 0001594555 us-gaap:ResidentialPortfolioSegmentMember hvbc:OneToFourFamilyMember 2020-01-01 2020-12-31 0001594555 us-gaap:ResidentialPortfolioSegmentMember hvbc:HomeEquityAndHomeEquityLinesOfCreditMember 2020-01-01 2020-12-31 0001594555 us-gaap:CommercialPortfolioSegmentMember us-gaap:RealEstateLoanMember 2020-01-01 2020-12-31 0001594555 us-gaap:CommercialPortfolioSegmentMember hvbc:CommercialBusinessMember 2020-01-01 2020-12-31 0001594555 us-gaap:CommercialPortfolioSegmentMember hvbc:MainStreetLendingProgramMember 2020-01-01 2020-12-31 0001594555 hvbc:ConstructionPortfolioSegmentMember 2020-01-01 2020-12-31 0001594555 us-gaap:UnallocatedFinancingReceivablesMember 2020-01-01 2020-12-31 0001594555 hvbc:SmallBusinessAdministrationSBACARESActPaycheckProtectionProgramMember 2021-12-31 0001594555 hvbc:OneToFourFamilyMember us-gaap:ResidentialPortfolioSegmentMember us-gaap:PassMember 2021-12-31 0001594555 hvbc:OneToFourFamilyMember us-gaap:ResidentialPortfolioSegmentMember us-gaap:SubstandardMember 2021-12-31 0001594555 hvbc:HomeEquityAndHomeEquityLinesOfCreditMember us-gaap:ResidentialPortfolioSegmentMember us-gaap:PassMember 2021-12-31 0001594555 hvbc:HomeEquityAndHomeEquityLinesOfCreditMember us-gaap:ResidentialPortfolioSegmentMember us-gaap:SubstandardMember 2021-12-31 0001594555 us-gaap:RealEstateLoanMember us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember 2021-12-31 0001594555 us-gaap:RealEstateLoanMember us-gaap:CommercialPortfolioSegmentMember us-gaap:SpecialMentionMember 2021-12-31 0001594555 us-gaap:RealEstateLoanMember us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember 2021-12-31 0001594555 hvbc:CommercialBusinessMember us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember 2021-12-31 0001594555 hvbc:CommercialBusinessMember us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember 2021-12-31 0001594555 us-gaap:CommercialPortfolioSegmentMember hvbc:SmallBusinessAdministrationSBACARESActPaycheckProtectionProgramMember us-gaap:PassMember 2021-12-31 0001594555 hvbc:MainStreetLendingProgramMember us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember 2021-12-31 0001594555 hvbc:ConstructionPortfolioSegmentMember us-gaap:PassMember 2021-12-31 0001594555 hvbc:ConstructionPortfolioSegmentMember us-gaap:SubstandardMember 2021-12-31 0001594555 us-gaap:StudentLoanMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:PassMember 2021-12-31 0001594555 us-gaap:StudentLoanMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:SubstandardMember 2021-12-31 0001594555 hvbc:OtherLoansMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:PassMember 2021-12-31 0001594555 us-gaap:PassMember 2021-12-31 0001594555 us-gaap:SpecialMentionMember 2021-12-31 0001594555 us-gaap:SubstandardMember 2021-12-31 0001594555 hvbc:OneToFourFamilyMember us-gaap:ResidentialPortfolioSegmentMember us-gaap:PassMember 2020-12-31 0001594555 hvbc:OneToFourFamilyMember us-gaap:ResidentialPortfolioSegmentMember us-gaap:SubstandardMember 2020-12-31 0001594555 hvbc:HomeEquityAndHomeEquityLinesOfCreditMember us-gaap:ResidentialPortfolioSegmentMember us-gaap:PassMember 2020-12-31 0001594555 us-gaap:RealEstateLoanMember us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember 2020-12-31 0001594555 us-gaap:RealEstateLoanMember us-gaap:CommercialPortfolioSegmentMember us-gaap:SpecialMentionMember 2020-12-31 0001594555 us-gaap:RealEstateLoanMember us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember 2020-12-31 0001594555 hvbc:CommercialBusinessMember us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember 2020-12-31 0001594555 hvbc:CommercialBusinessMember us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember 2020-12-31 0001594555 us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember hvbc:SmallBusinessAdministrationSBACARESActPaycheckProtectionProgramMember 2020-12-31 0001594555 hvbc:MainStreetLendingProgramMember us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember 2020-12-31 0001594555 hvbc:ConstructionPortfolioSegmentMember us-gaap:PassMember 2020-12-31 0001594555 us-gaap:StudentLoanMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:PassMember 2020-12-31 0001594555 us-gaap:StudentLoanMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:SubstandardMember 2020-12-31 0001594555 hvbc:OtherLoansMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:PassMember 2020-12-31 0001594555 us-gaap:PassMember 2020-12-31 0001594555 us-gaap:SpecialMentionMember 2020-12-31 0001594555 us-gaap:SubstandardMember 2020-12-31 0001594555 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:ResidentialPortfolioSegmentMember hvbc:OneToFourFamilyMember 2021-12-31 0001594555 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:CommercialPortfolioSegmentMember hvbc:CommercialBusinessMember 2021-12-31 0001594555 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2021-12-31 0001594555 us-gaap:FinancingReceivables30To59DaysPastDueMember 2021-12-31 0001594555 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:ResidentialPortfolioSegmentMember hvbc:OneToFourFamilyMember 2021-12-31 0001594555 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2021-12-31 0001594555 us-gaap:FinancingReceivables60To89DaysPastDueMember 2021-12-31 0001594555 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember us-gaap:ResidentialPortfolioSegmentMember hvbc:OneToFourFamilyMember 2021-12-31 0001594555 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember us-gaap:ResidentialPortfolioSegmentMember hvbc:HomeEquityAndHomeEquityLinesOfCreditMember 2021-12-31 0001594555 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember hvbc:ConstructionPortfolioSegmentMember 2021-12-31 0001594555 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2021-12-31 0001594555 us-gaap:FinancialAssetPastDueMember us-gaap:ResidentialPortfolioSegmentMember hvbc:OneToFourFamilyMember 2021-12-31 0001594555 us-gaap:FinancialAssetPastDueMember us-gaap:ResidentialPortfolioSegmentMember hvbc:HomeEquityAndHomeEquityLinesOfCreditMember 2021-12-31 0001594555 us-gaap:FinancialAssetPastDueMember us-gaap:CommercialPortfolioSegmentMember hvbc:CommercialBusinessMember 2021-12-31 0001594555 us-gaap:FinancialAssetPastDueMember hvbc:ConstructionPortfolioSegmentMember 2021-12-31 0001594555 us-gaap:FinancialAssetPastDueMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2021-12-31 0001594555 us-gaap:FinancialAssetPastDueMember 2021-12-31 0001594555 us-gaap:FinancialAssetNotPastDueMember us-gaap:ResidentialPortfolioSegmentMember hvbc:OneToFourFamilyMember 2021-12-31 0001594555 us-gaap:FinancialAssetNotPastDueMember us-gaap:ResidentialPortfolioSegmentMember hvbc:HomeEquityAndHomeEquityLinesOfCreditMember 2021-12-31 0001594555 us-gaap:FinancialAssetNotPastDueMember us-gaap:CommercialPortfolioSegmentMember us-gaap:RealEstateLoanMember 2021-12-31 0001594555 us-gaap:FinancialAssetNotPastDueMember us-gaap:CommercialPortfolioSegmentMember hvbc:CommercialBusinessMember 2021-12-31 0001594555 us-gaap:FinancialAssetNotPastDueMember us-gaap:CommercialPortfolioSegmentMember hvbc:SmallBusinessAdministrationSBACARESActPaycheckProtectionProgramMember 2021-12-31 0001594555 us-gaap:FinancialAssetNotPastDueMember us-gaap:CommercialPortfolioSegmentMember hvbc:MainStreetLendingProgramMember 2021-12-31 0001594555 us-gaap:FinancialAssetNotPastDueMember hvbc:ConstructionPortfolioSegmentMember 2021-12-31 0001594555 us-gaap:FinancialAssetNotPastDueMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2021-12-31 0001594555 us-gaap:FinancialAssetNotPastDueMember us-gaap:ConsumerPortfolioSegmentMember hvbc:OtherLoansMember 2021-12-31 0001594555 us-gaap:FinancialAssetNotPastDueMember 2021-12-31 0001594555 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:ResidentialPortfolioSegmentMember hvbc:OneToFourFamilyMember 2020-12-31 0001594555 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:ResidentialPortfolioSegmentMember hvbc:HomeEquityAndHomeEquityLinesOfCreditMember 2020-12-31 0001594555 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2020-12-31 0001594555 us-gaap:FinancingReceivables30To59DaysPastDueMember 2020-12-31 0001594555 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:ResidentialPortfolioSegmentMember hvbc:OneToFourFamilyMember 2020-12-31 0001594555 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2020-12-31 0001594555 us-gaap:FinancingReceivables60To89DaysPastDueMember 2020-12-31 0001594555 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember us-gaap:ResidentialPortfolioSegmentMember hvbc:OneToFourFamilyMember 2020-12-31 0001594555 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2020-12-31 0001594555 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2020-12-31 0001594555 us-gaap:FinancialAssetPastDueMember us-gaap:ResidentialPortfolioSegmentMember hvbc:OneToFourFamilyMember 2020-12-31 0001594555 us-gaap:FinancialAssetPastDueMember us-gaap:ResidentialPortfolioSegmentMember hvbc:HomeEquityAndHomeEquityLinesOfCreditMember 2020-12-31 0001594555 us-gaap:FinancialAssetPastDueMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2020-12-31 0001594555 us-gaap:FinancialAssetPastDueMember 2020-12-31 0001594555 us-gaap:FinancialAssetNotPastDueMember us-gaap:ResidentialPortfolioSegmentMember hvbc:OneToFourFamilyMember 2020-12-31 0001594555 us-gaap:FinancialAssetNotPastDueMember us-gaap:ResidentialPortfolioSegmentMember hvbc:HomeEquityAndHomeEquityLinesOfCreditMember 2020-12-31 0001594555 us-gaap:FinancialAssetNotPastDueMember us-gaap:CommercialPortfolioSegmentMember us-gaap:RealEstateLoanMember 2020-12-31 0001594555 us-gaap:FinancialAssetNotPastDueMember us-gaap:CommercialPortfolioSegmentMember hvbc:CommercialBusinessMember 2020-12-31 0001594555 us-gaap:FinancialAssetNotPastDueMember us-gaap:CommercialPortfolioSegmentMember hvbc:SmallBusinessAdministrationSBACARESActPaycheckProtectionProgramMember 2020-12-31 0001594555 us-gaap:FinancialAssetNotPastDueMember us-gaap:CommercialPortfolioSegmentMember hvbc:MainStreetLendingProgramMember 2020-12-31 0001594555 us-gaap:FinancialAssetNotPastDueMember hvbc:ConstructionPortfolioSegmentMember 2020-12-31 0001594555 us-gaap:FinancialAssetNotPastDueMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2020-12-31 0001594555 us-gaap:FinancialAssetNotPastDueMember us-gaap:ConsumerPortfolioSegmentMember hvbc:OtherLoansMember 2020-12-31 0001594555 us-gaap:FinancialAssetNotPastDueMember 2020-12-31 0001594555 us-gaap:RealEstateLoanMember 2021-01-01 2021-12-31 0001594555 hvbc:CommercialBusinessMember 2021-01-01 2021-12-31 0001594555 hvbc:LoansInAccrualStatusMember us-gaap:RealEstateLoanMember 2021-12-31 0001594555 hvbc:LoansInAccrualStatusMember hvbc:CommercialBusinessMember 2021-12-31 0001594555 hvbc:LoansInAccrualStatusMember 2021-12-31 0001594555 us-gaap:RealEstateLoanMember 2021-12-31 0001594555 hvbc:CommercialBusinessMember 2021-12-31 0001594555 us-gaap:RealEstateLoanMember 2020-01-01 2020-12-31 0001594555 hvbc:CommercialBusinessMember 2020-01-01 2020-12-31 0001594555 hvbc:LoansInAccrualStatusMember us-gaap:RealEstateLoanMember 2020-12-31 0001594555 hvbc:LoansInAccrualStatusMember hvbc:CommercialBusinessMember 2020-12-31 0001594555 hvbc:LoansInAccrualStatusMember 2020-12-31 0001594555 us-gaap:RealEstateLoanMember 2020-12-31 0001594555 hvbc:CommercialBusinessMember 2020-12-31 0001594555 hvbc:AutomobileMember 2021-12-31 0001594555 us-gaap:LandMember 2021-12-31 0001594555 us-gaap:LandMember 2020-12-31 0001594555 us-gaap:LandImprovementsMember 2021-12-31 0001594555 us-gaap:LandImprovementsMember 2020-12-31 0001594555 us-gaap:BuildingAndBuildingImprovementsMember 2021-12-31 0001594555 us-gaap:BuildingAndBuildingImprovementsMember 2020-12-31 0001594555 us-gaap:LeaseholdImprovementsMember 2021-12-31 0001594555 us-gaap:LeaseholdImprovementsMember 2020-12-31 0001594555 us-gaap:FurnitureAndFixturesMember 2021-12-31 0001594555 us-gaap:FurnitureAndFixturesMember 2020-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilThirteenTwoThousandTwentyTwoMember 2021-01-01 2021-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilEightTwoThousandTwentyTwoMember 2021-01-01 2021-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilFifteenTwoThousandTwentyTwoMember 2021-01-01 2021-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilFourteenTwoThousandTwentyMember 2021-01-01 2021-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentIssuedInMayTwentyOneTwoThousandTwentyMember 2021-01-01 2021-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilEighteenTwoThousandTwentyTwoMember 2021-01-01 2021-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilNineteenTwoThousandTwentyTwoMember 2021-01-01 2021-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilTwentyTwoThousandTwentyTwoMember 2021-01-01 2021-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilTwentyOneTwoThousandTwentyTwoMember 2021-01-01 2021-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilTwentyTwoTwoThousandTwentyTwoMember 2021-01-01 2021-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilTwentyNineTwoThousandTwentyTwoMember 2021-01-01 2021-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInMayFourTwoThousandTwentyTwoMember 2021-01-01 2021-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilThirteenTwoThousandTwentyTwoMember 2021-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilEightTwoThousandTwentyTwoMember 2021-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilFifteenTwoThousandTwentyTwoMember 2021-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilFourteenTwoThousandTwentyMember 2021-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentIssuedInMayTwentyOneTwoThousandTwentyMember 2021-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilEighteenTwoThousandTwentyTwoMember 2021-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilNineteenTwoThousandTwentyTwoMember 2021-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilTwentyTwoThousandTwentyTwoMember 2021-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilTwentyOneTwoThousandTwentyTwoMember 2021-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilTwentyTwoTwoThousandTwentyTwoMember 2021-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilTwentyNineTwoThousandTwentyTwoMember 2021-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInMayFourTwoThousandTwentyTwoMember 2021-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilThirteenTwoThousandTwentyTwoMember 2020-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilEightTwoThousandTwentyTwoMember 2020-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilFifteenTwoThousandTwentyTwoMember 2020-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilFourteenTwoThousandTwentyMember 2020-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentIssuedInMayTwentyOneTwoThousandTwentyMember 2020-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilEighteenTwoThousandTwentyTwoMember 2020-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilNineteenTwoThousandTwentyTwoMember 2020-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilTwentyTwoThousandTwentyTwoMember 2020-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilTwentyOneTwoThousandTwentyTwoMember 2020-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilTwentyTwoTwoThousandTwentyTwoMember 2020-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInAprilTwentyNineTwoThousandTwentyTwoMember 2020-12-31 0001594555 hvbc:FederalReservePPPLFFixedRateAdvancesZeroPointThreeFiveZeroPercentDueInMayFourTwoThousandTwentyTwoMember 2020-12-31 0001594555 hvbc:FHLBFixedRateAdvancesOnePointEightEightZeroPercentDueInSeptemberTwentyEightTwoThousandTwentyMember 2021-01-01 2021-12-31 0001594555 hvbc:FHLBFixedRateAdvancesOnePointEightEightZeroPercentDueInSeptemberTwentyEightTwoThousandTwentyMember 2021-12-31 0001594555 hvbc:FHLBFixedRateAdvancesTwoPointTwoTwoZeroPercentDueInNovemberTwentyTwoTwoThousandTwentyOneMember 2021-12-31 0001594555 hvbc:FHLBFixedRateAdvancesOnePointEightEightZeroPercentDueInSeptemberTwentyEightTwoThousandTwentyMember 2020-12-31 0001594555 hvbc:FHLBFixedRateAdvancesTwoPointTwoTwoZeroPercentDueInNovemberTwentyTwoTwoThousandTwentyOneMember 2020-12-31 0001594555 2020-04-01 2020-06-30 0001594555 2020-07-01 2020-09-30 0001594555 hvbc:OpenRepoPlusLineMember 2021-01-01 2021-12-31 0001594555 hvbc:OpenRepoPlusLineMember 2021-12-31 0001594555 hvbc:OpenRepoPlusLineMember 2020-12-31 0001594555 2020-07-31 0001594555 2020-07-01 2020-07-31 0001594555 hvbc:AtlanticCommunityBancsharesIncMember 2021-12-31 0001594555 hvbc:FederalReserveBankMember 2021-01-01 2021-12-31 0001594555 hvbc:FederalReserveBankMember 2020-12-31 0001594555 hvbc:FederalReserveBankMember 2021-12-31 0001594555 hvbc:FourPointFivePercentSubordinatedNoteMember 2021-05-28 2021-05-28 0001594555 hvbc:FourPointFivePercentSubordinatedNoteMember 2021-05-28 0001594555 hvbc:FourPointFivePercentSubordinatedNoteMember 2021-12-31 0001594555 2019-06-30 0001594555 srt:MinimumMember 2021-12-31 0001594555 srt:MinimumMember 2020-12-31 0001594555 hvbc:YearThreeAndThereafterMember 2019-06-30 0001594555 us-gaap:NondesignatedMember us-gaap:InterestRateLockCommitmentsMember hvbc:DerivativeAssetsMember 2021-12-31 0001594555 us-gaap:NondesignatedMember hvbc:ForwardLoanSalesCommitmentsMember hvbc:DerivativeAssetsMember 2021-12-31 0001594555 us-gaap:NondesignatedMember hvbc:ToBeAnnouncedSecuritiesMember hvbc:DerivativeAssetsMember 2021-12-31 0001594555 us-gaap:NondesignatedMember us-gaap:InterestRateLockCommitmentsMember us-gaap:OtherLiabilitiesMember 2021-12-31 0001594555 us-gaap:NondesignatedMember hvbc:ForwardLoanSalesCommitmentsMember us-gaap:OtherLiabilitiesMember 2021-12-31 0001594555 us-gaap:NondesignatedMember hvbc:ToBeAnnouncedSecuritiesMember us-gaap:OtherLiabilitiesMember 2021-12-31 0001594555 us-gaap:NondesignatedMember us-gaap:InterestRateLockCommitmentsMember hvbc:DerivativeAssetsMember 2020-12-31 0001594555 us-gaap:NondesignatedMember hvbc:ForwardLoanSalesCommitmentsMember hvbc:DerivativeAssetsMember 2020-12-31 0001594555 us-gaap:NondesignatedMember us-gaap:InterestRateLockCommitmentsMember us-gaap:OtherLiabilitiesMember 2020-12-31 0001594555 us-gaap:NondesignatedMember hvbc:ForwardLoanSalesCommitmentsMember us-gaap:OtherLiabilitiesMember 2020-12-31 0001594555 us-gaap:NondesignatedMember hvbc:ToBeAnnouncedSecuritiesMember us-gaap:OtherLiabilitiesMember 2020-12-31 0001594555 us-gaap:InterestRateLockCommitmentsMember 2021-01-01 2021-12-31 0001594555 us-gaap:InterestRateLockCommitmentsMember 2020-01-01 2020-12-31 0001594555 hvbc:ForwardLoanSalesCommitmentsMember 2021-01-01 2021-12-31 0001594555 hvbc:ForwardLoanSalesCommitmentsMember 2020-01-01 2020-12-31 0001594555 hvbc:ToBeAnnouncedSecuritiesMember 2021-01-01 2021-12-31 0001594555 hvbc:ToBeAnnouncedSecuritiesMember 2020-01-01 2020-12-31 0001594555 us-gaap:RestrictedStockMember 2021-12-31 0001594555 us-gaap:RestrictedStockMember 2020-12-31 0001594555 us-gaap:EmployeeStockOptionMember 2021-01-01 2021-12-31 0001594555 us-gaap:EmployeeStockOptionMember 2020-01-01 2020-12-31 0001594555 us-gaap:RestrictedStockMember 2021-01-01 2021-12-31 0001594555 us-gaap:RestrictedStockMember 2020-01-01 2020-12-31 0001594555 hvbc:EmployeeStockOwnershipPlanMember 2016-07-01 2017-06-30 0001594555 hvbc:EmployeeStockOwnershipPlanMember srt:MinimumMember 2016-07-01 2017-06-30 0001594555 hvbc:EmployeeStockOwnershipPlanMember srt:MaximumMember 2016-07-01 2017-06-30 0001594555 hvbc:EmployeeStockOwnershipPlanMember 2017-06-30 0001594555 hvbc:TwoThousandEighteenEquityIncentivePlanMember 2018-06-13 0001594555 hvbc:TwoThousandEighteenEquityIncentivePlanMember us-gaap:EmployeeStockOptionMember 2018-06-13 0001594555 hvbc:TwoThousandEighteenEquityIncentivePlanMember hvbc:RestrictedStockAwardsOrRestrictedStockUnitsMember 2018-06-13 0001594555 hvbc:TwoThousandEighteenEquityIncentivePlanMember 2021-12-31 0001594555 hvbc:IncentiveAndNonQualifiedStockOptionsMember hvbc:TwoThousandEighteenEquityIncentivePlanMember 2021-12-31 0001594555 hvbc:RestrictedStockAwardsMember hvbc:TwoThousandEighteenEquityIncentivePlanMember 2021-12-31 0001594555 hvbc:RestrictedSharesAndStockOptionsMember hvbc:TwoThousandEighteenEquityIncentivePlanMember 2021-01-01 2021-12-31 0001594555 hvbc:TwoThousandTwentyOneEquityIncentivePlanMember 2021-05-19 0001594555 hvbc:TwoThousandTwentyOneEquityIncentivePlanMember 2021-01-01 2021-12-31 0001594555 hvbc:TwoThousandEighteenEquityIncentivePlanMember 2021-01-01 2021-12-31 0001594555 hvbc:TwoThousandEighteenEquityIncentivePlanMember 2020-01-01 2020-12-31 0001594555 us-gaap:EmployeeStockOptionMember hvbc:TwoThousandEighteenEquityIncentivePlanMember 2021-12-31 0001594555 2019-01-01 2019-12-31 0001594555 hvbc:TwoThousandEighteenEquityIncentivePlanMember hvbc:NonVestedRestrictedStockOutstandingMember 2021-12-31 0001594555 us-gaap:RestrictedStockMember 2019-12-31 0001594555 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001594555 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001594555 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001594555 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001594555 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001594555 us-gaap:CollateralizedMortgageObligationsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001594555 us-gaap:CollateralizedMortgageObligationsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001594555 us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001594555 us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001594555 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001594555 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001594555 us-gaap:CertificatesOfDepositMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001594555 us-gaap:CertificatesOfDepositMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001594555 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001594555 us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001594555 us-gaap:InterestRateLockCommitmentsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001594555 us-gaap:InterestRateLockCommitmentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001594555 hvbc:ForwardLoanSalesCommitmentsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001594555 hvbc:ForwardLoanSalesCommitmentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001594555 hvbc:ToBeAnnouncedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001594555 hvbc:ToBeAnnouncedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001594555 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001594555 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001594555 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001594555 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001594555 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001594555 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001594555 us-gaap:CollateralizedMortgageObligationsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001594555 us-gaap:CollateralizedMortgageObligationsMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001594555 us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001594555 us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001594555 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001594555 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001594555 us-gaap:CertificatesOfDepositMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001594555 us-gaap:CertificatesOfDepositMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001594555 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001594555 us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001594555 us-gaap:InterestRateLockCommitmentsMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001594555 us-gaap:InterestRateLockCommitmentsMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001594555 hvbc:ForwardLoanSalesCommitmentsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001594555 hvbc:ForwardLoanSalesCommitmentsMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001594555 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001594555 hvbc:ToBeAnnouncedSecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001594555 hvbc:ToBeAnnouncedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001594555 us-gaap:FairValueMeasurementsNonrecurringMember 2021-12-31 0001594555 us-gaap:FairValueMeasurementsNonrecurringMember 2020-12-31 0001594555 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2021-12-31 0001594555 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2021-12-31 0001594555 us-gaap:FairValueInputsLevel1Member 2021-12-31 0001594555 us-gaap:FairValueInputsLevel3Member 2021-12-31 0001594555 us-gaap:FairValueInputsLevel2Member 2021-12-31 0001594555 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-12-31 0001594555 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-12-31 0001594555 us-gaap:FairValueInputsLevel1Member 2020-12-31 0001594555 us-gaap:FairValueInputsLevel3Member 2020-12-31 0001594555 us-gaap:FairValueInputsLevel2Member 2020-12-31 0001594555 us-gaap:FairValueInputsLevel2Member 2021-01-01 2021-12-31 0001594555 us-gaap:CorporateDebtSecuritiesMember 2020-01-01 2020-12-31 0001594555 us-gaap:FairValueInputsLevel3Member us-gaap:CorporateDebtSecuritiesMember 2020-12-31 0001594555 us-gaap:FairValueInputsLevel3Member hvbc:InterestRateLockCommitmentAssetsMember 2020-12-31 0001594555 us-gaap:FairValueInputsLevel3Member hvbc:InterestRateLockCommitmentLiabilitiesMember 2020-12-31 0001594555 us-gaap:FairValueInputsLevel3Member us-gaap:CorporateDebtSecuritiesMember 2021-01-01 2021-12-31 0001594555 us-gaap:FairValueInputsLevel3Member hvbc:InterestRateLockCommitmentAssetsMember 2021-01-01 2021-12-31 0001594555 us-gaap:FairValueInputsLevel3Member hvbc:InterestRateLockCommitmentLiabilitiesMember 2021-01-01 2021-12-31 0001594555 us-gaap:FairValueInputsLevel3Member us-gaap:CorporateDebtSecuritiesMember 2021-12-31 0001594555 us-gaap:FairValueInputsLevel3Member hvbc:InterestRateLockCommitmentAssetsMember 2021-12-31 0001594555 us-gaap:FairValueInputsLevel3Member hvbc:InterestRateLockCommitmentLiabilitiesMember 2021-12-31 0001594555 us-gaap:FairValueInputsLevel3Member us-gaap:CorporateDebtSecuritiesMember 2019-12-31 0001594555 us-gaap:FairValueInputsLevel3Member hvbc:InterestRateLockCommitmentAssetsMember 2019-12-31 0001594555 us-gaap:FairValueInputsLevel3Member hvbc:InterestRateLockCommitmentLiabilitiesMember 2019-12-31 0001594555 us-gaap:FairValueInputsLevel3Member us-gaap:CorporateDebtSecuritiesMember 2020-01-01 2020-12-31 0001594555 us-gaap:FairValueInputsLevel3Member hvbc:InterestRateLockCommitmentAssetsMember 2020-01-01 2020-12-31 0001594555 us-gaap:FairValueInputsLevel3Member hvbc:InterestRateLockCommitmentLiabilitiesMember 2020-01-01 2020-12-31 0001594555 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueConsensusPricingModelMember 2020-12-31 0001594555 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueConsensusPricingModelMember srt:MinimumMember 2020-12-31 0001594555 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueConsensusPricingModelMember srt:MaximumMember 2020-12-31 0001594555 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member hvbc:ValuationTechniqueMarketComparableSecuritiesMember 2020-12-31 0001594555 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member hvbc:ValuationTechniqueMarketComparableSecuritiesMember 2021-12-31 0001594555 us-gaap:InterestRateLockCommitmentsMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001594555 us-gaap:InterestRateLockCommitmentsMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0001594555 us-gaap:InterestRateLockCommitmentsMember us-gaap:FairValueInputsLevel3Member hvbc:MeasurementInputPullThroughRatesMember srt:MinimumMember 2021-12-31 0001594555 us-gaap:InterestRateLockCommitmentsMember us-gaap:FairValueInputsLevel3Member hvbc:MeasurementInputPullThroughRatesMember srt:MaximumMember 2021-12-31 0001594555 us-gaap:CorporateDebtSecuritiesMember hvbc:ValuationTechniqueMarketComparableSecuritiesMember us-gaap:MeasurementInputQuotedPriceMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001594555 srt:MinimumMember us-gaap:CorporateDebtSecuritiesMember hvbc:ValuationTechniqueMarketComparableSecuritiesMember us-gaap:MeasurementInputQuotedPriceMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001594555 srt:MaximumMember us-gaap:CorporateDebtSecuritiesMember hvbc:ValuationTechniqueMarketComparableSecuritiesMember us-gaap:MeasurementInputQuotedPriceMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001594555 us-gaap:InterestRateLockCommitmentsMember hvbc:MeasurementInputPullThroughRatesMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2021-12-31 0001594555 srt:MinimumMember us-gaap:InterestRateLockCommitmentsMember hvbc:MeasurementInputPullThroughRatesMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2021-12-31 0001594555 srt:MaximumMember us-gaap:InterestRateLockCommitmentsMember hvbc:MeasurementInputPullThroughRatesMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2021-12-31 0001594555 us-gaap:CorporateDebtSecuritiesMember us-gaap:ValuationTechniqueConsensusPricingModelMember us-gaap:MeasurementInputQuotedPriceMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0001594555 us-gaap:CorporateDebtSecuritiesMember hvbc:ValuationTechniqueMarketComparableSecuritiesMember us-gaap:MeasurementInputQuotedPriceMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0001594555 srt:MinimumMember us-gaap:CorporateDebtSecuritiesMember us-gaap:ValuationTechniqueConsensusPricingModelMember us-gaap:MeasurementInputQuotedPriceMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0001594555 srt:MinimumMember us-gaap:CorporateDebtSecuritiesMember hvbc:ValuationTechniqueMarketComparableSecuritiesMember us-gaap:MeasurementInputQuotedPriceMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0001594555 srt:MaximumMember us-gaap:CorporateDebtSecuritiesMember us-gaap:ValuationTechniqueConsensusPricingModelMember us-gaap:MeasurementInputQuotedPriceMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0001594555 srt:MaximumMember us-gaap:CorporateDebtSecuritiesMember hvbc:ValuationTechniqueMarketComparableSecuritiesMember us-gaap:MeasurementInputQuotedPriceMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0001594555 us-gaap:InterestRateLockCommitmentsMember hvbc:MeasurementInputPullThroughRatesMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-12-31 0001594555 srt:MinimumMember us-gaap:InterestRateLockCommitmentsMember hvbc:MeasurementInputPullThroughRatesMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-12-31 0001594555 srt:MaximumMember us-gaap:InterestRateLockCommitmentsMember hvbc:MeasurementInputPullThroughRatesMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-12-31 0001594555 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2020-12-31 0001594555 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-12-31 0001594555 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2021-01-01 2021-12-31 0001594555 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2020-01-01 2020-12-31 0001594555 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2021-12-31 0001594555 us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-12-31 0001594555 us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-12-31 0001594555 hvbc:MortgageLoanCommitmentsMember 2021-12-31 0001594555 hvbc:MortgageLoanCommitmentsMember 2020-12-31 0001594555 us-gaap:CommercialLoanMember 2021-12-31 0001594555 us-gaap:CommercialLoanMember 2020-12-31 0001594555 hvbc:ToBeAnnouncedSecuritiesMember 2021-12-31 0001594555 hvbc:ToBeAnnouncedSecuritiesMember 2020-12-31 0001594555 hvbc:HomeEquityLinesOfCreditMember 2021-12-31 0001594555 hvbc:HomeEquityLinesOfCreditMember 2020-12-31 0001594555 hvbc:CommercialAndCommericalRealEstateAndLinesOfCreditMember 2021-12-31 0001594555 hvbc:CommercialAndCommericalRealEstateAndLinesOfCreditMember 2020-12-31 0001594555 us-gaap:StandbyLettersOfCreditMember 2021-12-31 0001594555 us-gaap:StandbyLettersOfCreditMember 2020-12-31 hvbc:Investor 0001594555 us-gaap:LenderConcentrationRiskMember hvbc:MortgageLoanMember hvbc:SignificantInvestorsMember 2021-01-01 2021-12-31 0001594555 us-gaap:LenderConcentrationRiskMember hvbc:MortgageLoanMember hvbc:SignificantInvestorsMember 2020-01-01 2020-12-31 0001594555 hvbc:CompetitiveRateOfReturnAndFDICInsuranceMember 2021-12-31 0001594555 hvbc:CompetitiveRateOfReturnAndFDICInsuranceMember 2020-12-31 0001594555 hvbc:CompetitiveRateOfReturnAndFDICInsuranceMember 2021-01-01 2021-12-31 0001594555 hvbc:CompetitiveRateOfReturnAndFDICInsuranceMember 2020-01-01 2020-12-31 0001594555 srt:MaximumMember 2021-12-31 0001594555 hvbc:FeesForCustomerServiceMember 2021-01-01 2021-12-31 0001594555 hvbc:FeesForCustomerServiceMember 2020-01-01 2020-12-31 0001594555 hvbc:InsufficientFundsFeesMember 2021-01-01 2021-12-31 0001594555 hvbc:InsufficientFundsFeesMember 2020-01-01 2020-12-31 0001594555 us-gaap:BankServicingMember 2021-01-01 2021-12-31 0001594555 us-gaap:BankServicingMember 2020-01-01 2020-12-31 0001594555 hvbc:ATMInterchangeFeeIncomeMember 2021-01-01 2021-12-31 0001594555 hvbc:ATMInterchangeFeeIncomeMember 2020-01-01 2020-12-31 0001594555 hvbc:OtherMember 2021-01-01 2021-12-31 0001594555 hvbc:OtherMember 2020-01-01 2020-12-31 hvbc:Segment 0001594555 us-gaap:OperatingSegmentsMember hvbc:RetailBankingSegmentMember 2021-01-01 2021-12-31 0001594555 us-gaap:OperatingSegmentsMember hvbc:MortgageBankingSegmentMember 2021-01-01 2021-12-31 0001594555 us-gaap:OperatingSegmentsMember hvbc:BusinessBankingSegmentMember 2021-01-01 2021-12-31 0001594555 us-gaap:OperatingSegmentsMember hvbc:FinancialHoldingCompanyMember 2021-01-01 2021-12-31 0001594555 us-gaap:IntersegmentEliminationMember 2021-01-01 2021-12-31 0001594555 us-gaap:OperatingSegmentsMember hvbc:RetailBankingSegmentMember 2021-12-31 0001594555 us-gaap:OperatingSegmentsMember hvbc:MortgageBankingSegmentMember 2021-12-31 0001594555 us-gaap:OperatingSegmentsMember hvbc:BusinessBankingSegmentMember 2021-12-31 0001594555 us-gaap:OperatingSegmentsMember hvbc:FinancialHoldingCompanyMember 2021-12-31 0001594555 us-gaap:IntersegmentEliminationMember 2021-12-31 0001594555 us-gaap:OperatingSegmentsMember hvbc:RetailBankingSegmentMember 2020-01-01 2020-12-31 0001594555 us-gaap:OperatingSegmentsMember hvbc:MortgageBankingSegmentMember 2020-01-01 2020-12-31 0001594555 us-gaap:OperatingSegmentsMember hvbc:BusinessBankingSegmentMember 2020-01-01 2020-12-31 0001594555 us-gaap:OperatingSegmentsMember hvbc:FinancialHoldingCompanyMember 2020-01-01 2020-12-31 0001594555 us-gaap:IntersegmentEliminationMember 2020-01-01 2020-12-31 0001594555 us-gaap:OperatingSegmentsMember hvbc:RetailBankingSegmentMember 2020-12-31 0001594555 us-gaap:OperatingSegmentsMember hvbc:MortgageBankingSegmentMember 2020-12-31 0001594555 us-gaap:OperatingSegmentsMember hvbc:BusinessBankingSegmentMember 2020-12-31 0001594555 us-gaap:OperatingSegmentsMember hvbc:FinancialHoldingCompanyMember 2020-12-31 0001594555 us-gaap:IntersegmentEliminationMember 2020-12-31 0001594555 srt:ParentCompanyMember 2021-12-31 0001594555 srt:ParentCompanyMember 2020-12-31 0001594555 srt:ParentCompanyMember 2021-01-01 2021-12-31 0001594555 srt:ParentCompanyMember 2020-01-01 2020-12-31 0001594555 srt:ParentCompanyMember 2019-12-31 0001594555 2021-01-01 2021-03-31 0001594555 2021-04-01 2021-06-30 0001594555 2021-07-01 2021-09-30 0001594555 2021-10-01 2021-12-31 0001594555 2020-01-01 2020-03-31 0001594555 2020-10-01 2020-12-31

United States

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Fiscal Year Ended December 31, 2021

or

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from            to           

Commission File No. 001-37981

HV Bancorp, Inc.

(Exact name of registrant as specified in its charter)

 

Pennsylvania

 

46-4351868

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification Number)

 

2005 South Easton Road, Suite 304, Doylestown, Pennsylvania

 

18901

(Address of Principal Executive Offices)

 

(Zip Code)

 

(267) 280-4000

(Registrant’s telephone number)

Securities Registered Pursuant to Section 12(b) of the Act:

                                   Title of each class                             Trading Symbol (s)                        Name of each exchange on which registered

Common Stock, $0.01 par value

 

HVBC

 

The NASDAQ Stock Market, LLC

 

 

 

 

 

Securities Registered Pursuant to Section 12(g) of the Act:  None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐   No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐   No ☒

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such requirements for the past 90 days.  Yes ☒   No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes ☒   No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

Non-accelerated filer

 

  

  

Smaller reporting company

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Act.

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes    No 

As of June 30, 2021, the aggregate market value of the voting and non-voting common equity held by non-affiliates of the Registrant was $36,553,994.

As of March 10, 2022, there were 2,272,625 shared issued and 2,164,294 shares outstanding of the Registrant’s Common Stock.

DOCUMENTS INCORPORATED BY REFERENCE

Proxy Statement for the Registrant’s Annual Meeting of Stockholders (Part III).

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

TABLE OF CONTENTS

 

PART I

1

 

 

 

 

 

Item 1.

Business

1

 

Item 1A.

Risk Factors

31

 

Item 1B.

Unresolved Staff Comments

32

 

Item 2.

Properties

32

 

Item 3.

Legal Proceedings

32

 

Item 4.

Mine Safety Disclosures

32

 

 

 

 

PART II

33

 

 

 

 

 

Item 5.

Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities

33

 

Item 6.

[Reserved]

34

 

Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

34

 

Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

46

 

Item 8.

Financial Statements and Supplementary Data

47

 

Item 9.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

103

 

Item 9A.

Controls and Procedures

103

 

Item 9B.

Other Information

104

 

Item 9C.

Disclosures Regarding Foreign Jurisdictions that Prevent Inspections

104

 

 

 

 

PART III

105

 

 

 

 

 

Item 10.

Directors, Executive Officers and Corporate Governance

105

 

Item 11.

Executive Compensation

105

 

Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

105

 

Item 13.

Certain Relationships and Related Transactions, and Director Independence

105

 

Item 14.

Principal Accountant Fees and Services

106

 

 

 

 

PART IV

107

 

 

 

 

 

Item 15.

Exhibits and Financial Statement Schedules

107

 

Item 16.

Form 10-K Summary

109

 

 

 

 

SIGNATURES

110

 

 

 

 

 

 

 


 

PART I

Item 1.

Business

Forward Looking Statements

This annual report contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements concerning plans, objectives, future events or performance and assumptions and other statements that are other than statements of historical fact.  Forward-looking statements may be identified by reference to a future period or periods or by use of forward-looking terminology such as “anticipates,” “believes,” “expects,” “intends,” “may,” “plans,” “pursue,” “views” and similar terms or expressions.  Various statements contained in Item 7- “Management's Discussion and Analysis of Financial Condition and Results of Operations,” including, but not limited to, statements related to management's views on the banking environment and the economy, competition and market expansion opportunities, the interest rate environment, credit risk and the level of future non-performing assets and charge-offs, potential asset and deposit growth, future non-interest expenditures and non-interest income growth, and borrowing capacity are forward-looking statements.  HV Bancorp, Inc. (the "Company" or "HV Bancorp") wishes to caution readers that such forward-looking statements reflect numerous assumptions and involve a number of risks and uncertainties that may adversely affect the Company's future results.  The following important factors, among others, could cause the Company's results for subsequent periods to differ materially from those expressed in any forward-looking statement made herein: (i) changes in interest rates and changes in the duration of interest-earning assets and interest-bearing liabilities could negatively impact net interest income;  (ii) adverse changes in the economy, either nationally or in our markets, including, without limitation, the adverse and ongoing effects inflation and of the COVID-19 pandemic on the global, national, and local economy, which may affect the Company’s credit quality, revenue, and business operations; and government and business responses there to, specifically the effect on loan customers to repay loans (iii) acts of war or terrorism, (iv) potential impacts to the Company from continually evolving cybersecurity and other technological risks and attacks, including additional costs, reputational damage, regulatory penalties, and financial losses, (iv) changes in the business cycle and downturns in the local, regional or national economies, including deterioration in the local real estate market, could negatively impact credit and/or asset quality and result in credit losses and increases in the Company's allowance for loan losses and/or reduce valuations of foreclosed properties and real estate held for sale; (v) changes in consumer spending could negatively impact the Company's credit quality and financial results; (vi) increasing competition from larger regional and out-of-state banking organizations as well as non-bank providers of various financial services could adversely affect the Company's competitive position within its market area and reduce demand for the Company's products and services; (vii) deterioration of securities markets could adversely affect the value or credit quality of the Company's assets and the availability of funding sources necessary to meet the Company's liquidity needs; (viii) changes in technology could adversely impact the Company's operations and increase technology-related expenditures; (ix) increases in employee compensation and benefit expenses could adversely affect the Company's financial results; (x) changes in laws and regulations that apply to the Company's business and operations, including without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"), the Jumpstart Our Business Startups Act (the "JOBS Act") and the additional regulations that will be forthcoming as a result thereof, could adversely affect the Company's business environment, operations and financial results; (xi) changes in accounting standards, policies and practices, as may be adopted or established by the regulatory agencies, the Financial Accounting Standards Board (the “FASB”) or the Public Company Accounting Oversight Board (“PCAOB”) could negatively impact the Company's financial results; (xii) our ability to enter new markets successfully and capitalize on growth opportunities; and (xiii) future regulatory compliance costs, including any increase caused by new regulations imposed by the Consumer Finance Protection Bureau. Therefore, the Company cautions readers not to place undue reliance on any such forward-looking information and statements.

HV Bancorp, Inc.

HV Bancorp, Inc. is a Pennsylvania corporation and owns 100% of the common stock of Huntingdon Valley Bank (the "Bank"). On January 11, 2017, the Company completed its initial public offering of common stock in connection with the mutual-to-stock conversion of the Bank selling 2,182,125 shares of common stock at $10.00 per share and raising $21.8 million of gross proceeds. Since the completion of the initial public offering, the Company has not engaged in any significant business activity other than issuing a subordinated note, investment in securities and owning the common stock of the Bank and having deposits in the Bank. The Company’s shareholders approved

 

 

1

 

 


the HV Bancorp, Inc. 2018 Equity Incentive Plan (the “2018 Equity Incentive Plan”) at a Special Meeting of Shareholders on June 13, 2018. An aggregate of 305,497 shares of authorized but unissued common stock of the Company was reserved for future grants of incentive and non-qualified stock options, restricted stock awards and restricted stock units under the Plan. In addition, the Company’s shareholders approved the HV Bancorp, Inc. 2021 Equity Incentive Plan (the “2021 Equity Incentive Plan”) at the Annual Meeting of shareholders on May 19, 2021. The 2021 Equity Incentive Plan authorizes the issuance or delivery to participants of up to 175,000 shares of Company common stock pursuant to grants of incentive and non-qualified stock options, restricted stock awards and restricted stock units (see Note 13 of the Audited Consolidated Financial Statements for further discussion). At December 31, 2021, HV Bancorp, Inc. had total consolidated assets of $560.1 million, total consolidated deposits of $464.0 million, and total consolidated shareholders’ equity of $42.6 million. Our executive offices are located at 2005 South Easton Road, Suite 304, Doylestown, Pennsylvania.  Our telephone number at this address is (267) 280-4000.

Huntingdon Valley Bank

Huntingdon Valley Bank is a stock savings bank organized under the laws of the Commonwealth of Pennsylvania and is subject to comprehensive regulation and examination by the Federal Deposit Insurance Corporation (the "FDIC") and the Pennsylvania Department of Banking and Securities (the "Pennsylvania Department of Banking"). We have offices in Montgomery, Bucks and Philadelphia Counties, Pennsylvania and Mount Laurel, New Jersey and Wilmington, Delaware. We are a community-oriented bank offering a variety of financial products and services to meet the needs of our customers. We believe that our community orientation and personalized service distinguishes us from larger banks that operate in our market area.

Huntingdon Valley Bank was founded in 1871 as a building and loan association.  In 1951, the association converted to a federal thrift charter, changed its name to “Huntingdon Valley Federal Savings & Loan Association” and became federally insured. In January 2000, we changed our corporate name to “Huntingdon Valley Bank.” On July 1, 2003, Huntingdon Valley Bank converted from a federally chartered mutual savings bank to a Pennsylvania chartered mutual savings bank.

Our principal business consists of attracting retail deposits from the general public in our market area and investing those deposits, together with funds generated from operations and borrowings, primarily in one- to four-family residential mortgage loans, commercial real estate loans (including multi-family loans) and other commercial business, construction  loans and, to a lesser extent, home equity loans and home equity lines of credit (“HELOCs”) and consumer loans. Additionally, we originated loans as participants in the Paycheck Protection Program (“PPP”) as well as the Main Street Lending Program in 2020.

We retain our loans in portfolio depending on market conditions, but we primarily sell our fixed-rate one- to four-family residential mortgage loans in the secondary market. We also invest in various investment securities. Our revenue is derived principally from interest on loans and investments and loan sales. Our primary sources of funds are deposits, Federal Home Loan Bank advances, and principal and interest payments on loans and securities. Additionally, in 2020, we participated in the Federal Reserve Bank’s Paycheck Protection Program Liquidity Facility (“PPPLF”), which provided funding for the origination of Round 1 PPP loans.

Our website address is www.myhvb.com.  Information on this website should not be considered a part of this annual report.

The Company maintains a website on the Internet at www.hvbancorp.com. The Company makes available free of charge, on or through its website, its proxy statements, annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports as soon as reasonably practicable after such material is electronically filed with the Securities and Exchange Commission (SEC). This reference to the Corporation's Internet address shall not, under any circumstances, be deemed to incorporate the information available at such Internet address into this Form 10-K or other SEC filings. The information available at the Company's Internet address is not part of this Form 10-K or any other report filed by the Company with the SEC. The Company's SEC filings can also be obtained on the SEC's website on the Internet at http://www.sec.gov.

 

 

 

 

2

 

 


 

COVID-19

 

The COVID-19 pandemic has adversely affected economic activity globally, nationally and locally. It has caused substantial disruption in international and U.S. economies, markets, disruptions in the global supply chains and increased unemployment levels. In 2021, some of these issues continued in particular impacts to the global supply chains and the workforce was impacted through more employee resignations resulting in higher wages across many industries. For discussion regarding the impact of the COVID-19 pandemic on our financial results, see Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

Market Area

We are headquartered in Doylestown, Pennsylvania, which is located in the northeast suburban area of metropolitan Philadelphia. We primarily serve communities located in Montgomery, Bucks and Philadelphia Counties in Pennsylvania, Burlington County in New Jersey and New Castle County in Delaware.

Our markets are demographically attractive, close to the business and financial district of Center City Philadelphia, and within commuting distance of Northern New Jersey and New York City. Philadelphia, Montgomery, and Bucks Counties comprise the 1st, 3rd and 4th largest counties in Pennsylvania, respectively, Burlington County is the 11th largest county in New Jersey and New Castle County is the largest county in Delaware. The following table shows key demographics for our markets.  

 

 

 

Delaware

 

 

Pennsylvania

 

 

New Jersey

 

 

 

New Castle County

 

 

Philadelphia County

 

 

Montgomery County

 

 

Bucks County

 

 

Burlington County

 

Unemployment (December 2021)

 

 

4.1

%

 

 

6.4

%

 

 

3.3

%

 

 

3.6

%

 

 

4.0

%

Median Household Income (2016-2020 United States Census)

 

$

75,275

 

 

$

49,127

 

 

$

93,518

 

 

$

93,181

 

 

$

90,329

 

Estimated Population (United State Census April 2020)

 

 

570,719

 

 

 

1,603,797

 

 

 

856,553

 

 

 

646,538

 

 

 

461,860

 

As of 2020, the Philadelphia metropolitan area is the eighth largest total gross metropolitan product in the United States and is home to many universities and colleges.  The economy of our market area is heavily based on education, life sciences and social services. The city of Philadelphia is home to many Fortune 500 companies, including cable television and internet provider Comcast; insurance company Lincoln Financial Group; and food services company Aramark.

Competition

We face significant competition within our market both in making loans and attracting deposits. Our market area has a high concentration of financial institutions, including large money centers and regional banks, community banks and credit unions. Banks owned by large bank holding companies such as PNC Financial Services Group, Inc., Wells Fargo & Company, TD Bank, Santander and Citizens Financial Group, Inc. also operate in our market area. Some of our competitors offer products and services that we currently do not offer, such as trust services and private banking. Our competition for loans and deposits comes principally from commercial banks, savings institutions, and mortgage banking firms, consumer finance companies and credit unions. We face additional competition for deposits from short-term money market funds, brokerage firms, mutual funds and insurance companies.

Lending Activities

General.  Our principal lending activity is the origination of one- to four-family residential real estate loans, commercial real estate loans, commercial business loans, construction loans and, to a lesser extent, home equity loans and home equity lines of credit and consumer loans. Our primary business has been the origination of one- to four-family residential real estate loans, of which 56.2% were adjustable-rate loans and 43.8% were fixed-rate loans

 

 

3

 

 


as of December 31, 2021 and the sale of one- to four-family residential real estate loans. We currently sell in the secondary market most of the fixed-rate conforming one- to four-family residential real estate loans that we originate, generally on a servicing-released, limited or no recourse basis, while retaining adjustable-rate one- to four-family residential real estate loans, primarily jumbo loans, in order to manage the duration and time to repricing of our loan portfolio.

 

Loan Portfolio Composition.  The following tables sets forth the composition of our loan portfolio, by type of loan at the dates indicated, excluding loans held for sale.

 

 

 

At December 31,

 

 

 

2021

 

2020

 

 

 

Amount

 

 

Percent

 

Amount

 

 

Percent

 

 

 

(Dollars in thousands)

 

Residential:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

One- to four-family

 

$

106,335

 

 

 

32.38

%

$

141,891

 

 

 

44.74

%

Home equity & HELOCs

 

 

3,172

 

 

 

0.97

 

 

3,993

 

 

 

1.26

 

Commercial real estate

 

 

116,882

 

 

 

35.60

 

 

68,705

 

 

 

21.67

 

Commercial business

 

 

30,164

 

 

 

9.19

 

 

24,152

 

 

 

7.62

 

SBA PPP loans

 

 

22,912

 

 

 

6.98

 

 

64,380

 

 

 

20.30

 

Main Street Lending Program

 

 

1,605

 

 

 

0.49

 

 

1,556

 

 

 

0.49

 

Construction

 

 

42,866

 

 

 

13.05

 

 

7,299

 

 

 

2.30

 

Consumer and other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Medical education

 

 

4,409

 

 

 

1.34

 

 

5,105

 

 

 

1.61

 

Consumer

 

 

17

 

 

 

 

 

33

 

 

 

0.01

 

Total loans receivable

 

 

328,362

 

 

 

100.00

%

 

317,114

 

 

 

100.00

%

Deferred loan origination costs

 

 

(791

)

 

 

 

 

 

(1,286

)

 

 

 

 

Allowance for loan losses

 

 

(2,368

)

 

 

 

 

 

(2,017

)

 

 

 

 

Total loans receivable, net

 

$

325,203

 

 

 

 

 

$

313,811

 

 

 

 

 

 

Loan Portfolio Maturities and Yields.  The following table summarizes the scheduled repayments of our loan portfolio at December 31, 2021.  Demand loans, loans having no stated repayment schedule or maturity, and overdraft loans are reported as being due in the one year or less.  Maturities are based on the final contractual payment date and do not reflect the impact of prepayments and scheduled principal amortization.

 

 

 

One Year or Less

 

 

After One to Five Years

 

 

After Five years through 15 Years

 

 

After 15 years

 

 

Total

 

 

 

(In thousands)

 

Residential:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

One- to four-family

 

$

 

 

$

125

 

 

$

7,095

 

 

$

99,115

 

 

$

106,335

 

Home equity & HELOCs

 

 

85

 

 

 

71

 

 

 

910

 

 

 

2,106

 

 

 

3,172

 

Commercial real estate

 

 

27,083

 

 

 

59,689

 

 

 

29,492

 

 

 

618

 

 

 

116,882

 

Commercial business

 

 

25,709

 

 

 

1,219

 

 

 

3,236

 

 

 

 

 

 

30,164

 

SBA PPP loans

 

 

1

 

 

 

22,911

 

 

 

 

 

 

 

 

 

22,912

 

Main Street Lending Program

 

 

 

 

 

1,605

 

 

 

 

 

 

 

 

 

1,605

 

Construction

 

 

22,270

 

 

 

16,356

 

 

 

1,414

 

 

 

2,826

 

 

 

42,866

 

Consumer and other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Medical education

 

 

1

 

 

 

100

 

 

 

4,308

 

 

 

 

 

 

4,409

 

Consumer

 

 

17

 

 

 

 

 

 

 

 

 

 

 

 

17

 

Total loans receivable

 

$

75,166

 

 

$

102,076

 

 

$

46,455

 

 

$

104,665

 

 

$

328,362

 

 

 

 

4

 

 


 

The following table sets forth our fixed and adjustable-rate loans at December 31, 2021:

 

 

 

Fixed

 

 

Adjustable

 

(In thousands)

 

One Year or Less

 

 

After One to Five Years

 

 

After Five years through 15 Years

 

 

After 15 Years

 

 

Total

 

 

One Year or Less

 

 

After One to Five Years

 

 

After Five years through 15 Years

 

 

After 15 Years

 

 

Total

 

Residential:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

One- to four-family

 

$

 

 

$

43

 

 

$

6,553

 

 

$

53,158

 

 

$

59,754

 

 

$

 

 

$

82

 

 

$

542

 

 

$

45,957

 

 

$

46,581

 

Home equity & HELOCs

 

 

 

 

 

71

 

 

 

62

 

 

 

36

 

 

 

169

 

 

 

85

 

 

 

 

 

 

848

 

 

 

2,070

 

 

 

3,003

 

Commercial real estate

 

 

5,045

 

 

 

51,513

 

 

 

3,761

 

 

 

618

 

 

 

60,937

 

 

 

22,038

 

 

 

8,177

 

 

 

25,730

 

 

 

 

 

 

55,945

 

Commercial business

 

 

3,990

 

 

 

1,139

 

 

 

1,600

 

 

 

 

 

 

6,729

 

 

 

21,718

 

 

 

80

 

 

 

1,637

 

 

 

 

 

 

23,435

 

SBA PPP loans

 

 

1

 

 

 

22,911

 

 

 

 

 

 

 

 

 

22,912

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Main Street Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,605

 

 

 

 

 

 

 

 

 

1,605

 

Construction

 

 

7,916

 

 

 

3,913

 

 

 

 

 

 

1,612

 

 

 

13,441

 

 

 

14,354

 

 

 

12,442

 

 

 

1,414

 

 

 

1,215

 

 

 

29,425

 

Consumer and Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Medical education

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

100

 

 

 

4,308

 

 

 

 

 

 

4,409

 

Consumer

 

 

17

 

 

 

 

 

 

 

 

 

 

 

 

17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

16,969

 

 

$

79,590

 

 

$

11,976

 

 

$

55,424

 

 

$

163,959

 

 

$

58,196

 

 

$

22,486

 

 

$

34,479

 

 

$

49,242

 

 

$

164,403

 

 

One- to Four-Family Residential Real Estate Lending.  At December 31, 2021, we had $106.3 million of loans secured by one- to four-family residential real estate, representing 32.4% of our total loan portfolio.  In addition, at December 31, 2021, we had $40.5 million of residential mortgages held for sale.  We originate fixed-rate one- to four-family residential real estate loans as well as adjustable-rate loans depending on market conditions and borrower preferences.  At December 31, 2021, 56.2% of our one- to four-family residential real estate loans were fixed-rate loans, and 43.8% of such loans were adjustable-rate loans.  

Our fixed-rate one- to four-family residential real estate loans typically have terms of 10 to 30 years and are generally underwritten according to Fannie Mae or Freddie Mac guidelines when the loan balance meets such guidelines, and we refer to loans that conform to such guidelines as “conforming loans.”  We generally originate both fixed- and adjustable-rate mortgage loans in amounts up to the maximum conforming loan limits, which as of December 31, 2021 was generally $548,250 for single-family homes in our market area. We typically sell most of our fixed-rate conforming loans on a servicing-released basis. We also originate loans above the lending limit for conforming loans, which are referred to as “jumbo loans,” that we retain in our portfolio. Jumbo loans that we originate typically have 15 to 30 year terms and maximum loan-to-value ratios of 80%.  At December 31, 2021, we had $50.7 million in jumbo loans, which represented 47.7% of our one- to four-family residential real estate loans. Of the $50.7 million in jumbo loans, 64.5% or $32.7 million were variable jumbo loans and 35.5% or $18.0 million were fixed jumbo loans. Our average loan size for jumbo loans was $781,000 at December 31, 2021.  We also offer FHA, USDA and VA loans, all of which we originate for sale on a servicing-released, non-recourse basis in accordance with FHA, USDA and VA guidelines. Most of our one- to four-family residential real estate loans are secured by properties located in our market area.  

We generally limit the loan-to-value ratios of our mortgage loans without private mortgage insurance to 80% of the sales price or appraised value, whichever is lower.  Loans where the borrower obtains private mortgage insurance may be made with loan-to-value ratios up to 95%.  

Our adjustable-rate one- to four-family residential real estate loans carry terms to maturity ranging from 10 to 30 years and generally have fixed rates for initial terms of five or seven years, and adjust annually thereafter at a

 

 

5

 

 


margin, which in recent years has been tied to a margin above the LIBOR and Treasury rate. The maximum amount by which the interest rate may be increased or decreased is generally 5% for the first adjustment period and 2% per adjustment period thereafter, with a lifetime interest rate cap of generally 5% over the initial interest rate of the loan. We typically hold in portfolio our adjustable-rate one- to four-family residential real estate loans.

Although adjustable-rate mortgage loans may reduce to an extent our vulnerability to changes in market interest rates because they periodically re-price, as interest rates increase the required payments due from the borrower also increase (subject to rate caps), increasing the potential for default by the borrower.  At the same time, the ability of the borrower to repay the loan and the marketability of the underlying collateral may be adversely affected by higher interest rates.  Upward adjustments of the contractual interest rate are also limited by our maximum periodic and lifetime rate adjustments.  Moreover, the interest rates on most of our adjustable-rate loans do not adjust for up to seven years after origination. As a result, the effectiveness of adjustable-rate mortgage loans in compensating for changes in market interest rates generally may be limited.

We offer on a limited basis one- to four-family residential real estate loans secured by non-owner occupied properties. We require personal guarantees from the borrowers on these properties, and we will not make loans in excess of 85% loan-to-value on non-owner-occupied properties.  

We  may offer “interest only” mortgage loans on construction to permanent one- to four-family residential real estate loans (where the borrower pays interest for an initial period, after which the loan converts to a fully amortizing loan).  We also have not offered and will not offer loans that provide for negative amortization of principal, such as “Option ARM” loans, where the borrower can pay less than the interest owed on the loan, resulting in an increased principal balance during the life of the loan. We have not had a “subprime lending” program for one- to four-family residential real estate loans (i.e., loans that generally target borrowers with weakened credit histories typically characterized by payment delinquencies, previous charge-offs, judgments, bankruptcies, or borrowers with questionable repayment capacity as evidenced by low credit scores or high debt-burden ratios), or “Alt-A” loans (i.e., loans that generally target borrowers with better credit scores who borrow with alternative documentation such as little or no verification of income).

We require title insurance on all of our one- to four-family residential real estate mortgage loans, and we also require that borrowers maintain fire and extended coverage casualty insurance (and, if appropriate, flood insurance) in an amount at least equal to the lesser of the loan balance or the replacement cost of the improvements. Substantially all of our residential real estate mortgage loans have a mortgage escrow account from which disbursements are made for real estate taxes and flood insurance. We do not conduct environmental testing on residential real estate mortgage loans unless specific concerns for hazards are identified by the appraiser used in connection with the origination of the loan. If we identify an environmental problem on land that will secure a loan, the environmental hazard must be remediated before the closing of the loan.  

When underwriting residential real estate loans, we review and verify each loan applicant’s employment, income and credit history and, if applicable, our experience with the borrower. Our policy is to obtain credit reports and financial statements on all borrowers and guarantors, and to verify references. Properties securing real estate loans are appraised by board-approved independent appraisers. Appraisals are subsequently reviewed by our loan underwriting department.

Home Equity Loans and Lines of Credit. We also offer home equity loans and home equity lines of credit, both of which are secured by either first mortgages or second mortgages on owner occupied one- to four-family residences.  At December 31, 2021, outstanding home equity loans and equity lines of credit totaled $3.2 million, or 1.0% of total loans outstanding.  At December 31, 2021, the unadvanced portion of home equity lines of credit totaled $8.9 million.  At December 31, 2021, $2.2 million of our home equity loans and lines of credit were in a junior lien position.

The underwriting standards utilized for home equity loans and home equity lines of credit include a title review, the recordation of a lien, a determination of the applicant’s ability to satisfy existing debt obligations and payments on the proposed loan, and the value of the collateral securing the loan.  The loan-to-value ratio for our home equity loans and our lines of credit is generally limited to 80% when combined with the first security lien, if applicable.  Home equity loans are offered with fixed rates of interest and with terms up to 20 years.  Our home

 

 

6

 

 


equity lines of credit generally have 30-year terms and adjustable-rates of interest, subject to a contractual floor, which are indexed to the prime rate.  

Commercial Real Estate Lending.  We also offer commercial real estate loans, including a limited amount of multi-family loans.  At December 31, 2021, we had $116.9 million in commercial real estate loans, representing 35.6% of our total loan portfolio.  Our commercial real estate loans generally have initial terms of five years and amortization terms of  20 to 25 years, with a balloon payment due at the end of the initial term. The maximum loan-to-value ratio of our commercial real estate loans is generally 75-80%.  Our commercial real estate loans are typically secured by medical, retail, industrial, warehouse, service, or other commercial properties. We originate  multi-family loans generally secured by multi-family buildings. At December 31 2021, the average loan balance of our outstanding commercial real estate loans was $676,000, and the largest of such loans was a $6.1 million loan secured by commercial real estate and the business assets of two restaurants. This loan was performing in accordance with its terms at December 31, 2021.

We consider a number of factors in originating commercial real estate loans.  We evaluate the qualifications and financial condition of the borrower, including project-level and global cash flows, credit history, and management expertise, as well as the value and condition of the property securing the loan.  When evaluating the qualifications of the borrower, we consider the financial resources of the borrower, the borrower’s experience in owning or managing similar property and the borrower’s payment history with us and other financial institutions.  In evaluating the property securing the loan, the factors we consider include the net operating income of the mortgaged property before debt service, amortization, and depreciation, the ratio of the loan amount to the appraised value of the mortgaged property and the debt service coverage ratio (the ratio of net operating income to debt service).  We generally require a debt service ratio of at least 1.20x.  All commercial real estate loans are appraised by outside independent appraisers and reviewed by an outside appraisal management firm, all of whom are reviewed by the board of directors.  

Personal guarantees are generally obtained from the principals of commercial real estate loan borrowers, although this requirement may be waived in limited circumstances depending upon the creditworthiness of the tenant, loan-to-value ratio and the debt service ratio associated with the loan. We require property, casualty and title insurance and flood insurance if the property is in a flood zone area.  

Commercial real estate loans entail greater credit risks compared to one- to four-family residential real estate loans because they typically involve larger loan balances concentrated with single borrowers or groups of related borrowers.  In addition, the payment of loans secured by income-producing properties typically depends on the successful operation of the property, as repayment of the loan generally is dependent, in large part, on sufficient income from the property to cover operating expenses and debt service.  Changes in economic conditions that are not in the control of the borrower or lender could affect the value of the collateral for the loan or the future cash flow of the property.  Additionally, any decline in real estate values may be more pronounced for commercial and multi-family real estate than residential properties.

 

 

7

 

 


Commercial Business Lending.  At December 31, 2021, we had $30.2 million of commercial business loans, representing 9.2% of our total loan portfolio.  We offer regular lines of credit and revolving lines of credit with terms of up to 12 months to small businesses in our market area to finance short-term working capital needs such as accounts receivable and inventory. Our commercial lines of credit are typically adjustable-rate generally based on the prime rate, as published in The Wall Street Journal, plus a margin. We generally obtain personal guarantees with respect to all commercial business lines of credit.

We typically originate commercial business loans on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business, the experience and stability of the borrower’s management team, earnings projections and the underlying assumptions, and the value and marketability of any collateral securing the loan. Commercial business loans are generally secured by a variety of collateral, primarily accounts receivable, inventory and equipment.  As a result, the availability of funds for the repayment of commercial business loans may be substantially dependent on the success of the business itself and the general economic environment in our market area.  Therefore, commercial business loans that we originate have greater credit risk than one- to four-family residential real estate loans or, generally, consumer loans.  In addition, commercial business loans often result in larger outstanding balances to single borrowers, or related groups of borrowers, and also generally require substantially greater evaluation and oversight efforts.

Construction Lending.  We originate construction loans for the purchase of raw land and for the associated construction of commercial properties along with multi and single-family residences.  Construction loans provide for the payment of interest only during the construction phase, which is usually twelve months with optional six-month extensions. In many cases the project will include a cash interest reserve set aside in a bank-controlled deposit account to fund these payments through project completion.  At the end of the construction phase, many of the loans convert to a permanent mortgage loan. Prior to making a commitment to fund a construction loan, we require an appraisal of the property by an independent appraiser and review by our third-party appraisal review firm. On construction loans greater than $1 million, we generally require a plan and cost review by a qualified company to verify construction costs are within market costs and to limit project estimation errors.  We also review and engage third-party inspectors to verify the completed work on projects prior to disbursement of funds during the term of the construction loan. At December 31, 2021, we had $42.9 million of construction loans, representing 13.1% of our total loan portfolio.  At December 31, 2021, our largest construction loan was a $5.0 million commercial loan secured by commercial property as well as assignment of rents and leases that was performing in accordance with its original terms at December 31, 2021.

The maximum loan-to-value of these loans generally is the lesser of 80% of cost or appraised value for owner-occupied properties, and the lesser of 75% of cost or appraised value for investment properties.  Personal guarantees are generally required on all such projects.

Construction financing generally involves greater credit risk than long-term financing on improved, owner-occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the value of the property at completion of construction compared to the estimated cost (including interest) of construction and other assumptions. If the estimate of construction cost proves to be inaccurate, we may be required to advance additional funds beyond the amount originally committed in order to protect the value of the property. Moreover, if the estimated value of the completed project proves to be inaccurate, the borrower may hold a property with a value that is insufficient to assure full repayment. Construction loans also expose us to the risks that improvements will not be completed on time in accordance with specifications and projected costs and that repayment will depend on the successful operation or sale of the properties. In addition, some of these borrowers have more than one outstanding loan, so an adverse development with respect to one loan or credit relationship can expose us to significantly greater risk of non-payment and loss.

Small Business Association (“SBA”) PPP. In April 2020, we began accepting and processing applications for loans under the PPP implemented by the SBA with support from the Department of Treasury under the recently enacted Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). As of December 31, 2021, the Company had a total outstanding balance of approximately $22.9 million for round 1 and 2 of PPP. The PPP loans have a two-year to four-year term and earn interest at 1%. The SBA fully guarantees the principal and interest, unless the lender violated an obligation under the agreement. See Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations for further discussion.”

 

 

8

 

 


Main Street Lending Program. In December 2020, the Company participated in the Main Street Lending Program established by the Federal Reserve to support lending to small and medium-sized for-profit businesses and nonprofit organizations that were in sound financial condition before the onset of the COVID-19 pandemic. The program ended on January 8, 2021. At December 31, 2020, the Company funded approximately $31.1 million in loans. The Company retained approximately 5% or $1.6 million outstanding at December 31, 2021 as 95% of the originated loans were sold to the Federal Reserve of Boston as part of the program.

Medical Education Lending. In November 2017, the Bank entered into a loan purchase agreement with a broker to purchase a portfolio of private education loans made to American citizens attending American Medical Association (“AMA”) approved medical schools in Caribbean nations. The broker serves as a lender, holder, program designer and developer, administrator, and secondary market for the loan portfolios they generate. At December 31, 2021, the balance of the private education loans was $4.4 million. The private student loans were made following a proven credit criteria and were underwritten in accordance with the Bank’s policies. At December 31, 2021, there was one loan with a balance of approximately $39,000 that was past due 90 days or more. There are certain medical education loans for which a forbearance status has been granted and, while not past due, are classified as non-performing in the amount of $986,000. Generally, the loan may be restored to accrual status when the obligation is in accordance with the contractual terms for a reasonable period of time, generally six months.

Consumer Lending. At December 31, 2021, our consumer loan portfolio totaled $17,000 consisting of consumer overdraft accounts.

Loan Originations, Participations, Purchases and Sales

Most of our loan originations are generated by our loan personnel and from referrals from existing customers and real estate brokers. All loans we originate are underwritten pursuant to our policies and procedures.  While we originate both fixed-rate and adjustable-rate loans, our ability to generate each type of loan depends upon relative borrower demand and pricing levels established by competing banks, thrifts, credit unions, and mortgage banking companies. Our volume of loan originations is influenced significantly by market interest rates, and, accordingly, the volume of our loan originations can vary from period to period.  

Consistent with our interest rate risk strategy, in the low interest rate environment that has existed in recent years, we have sold on a servicing-released basis most of the fixed-rate conforming one- to four-family residential mortgage loans that we have originated. We consider our Statement of Financial Condition as well as market conditions on an ongoing basis in making decisions as to whether to hold loans we originate for investment or to sell such loans to investors, choosing the strategy that is most advantageous to us from a profitability and risk management standpoint. For the year ended December 31, 2021, we sold $670.6 million of residential one- to four-family real estate loans.

From time to time, we may purchase loan participations secured by properties within and outside of our primary lending market area in which we are not the lead lender. In these circumstances, we follow our customary loan underwriting and approval policies. At December 31, 2021, we had five participation loans for $2.9 million in which we were not the lead lender, of which one loan was not performing in accordance with the loans’ original terms at December 31, 2021. We also have participated out portions of loans from time to time that exceeded our loans-to-one borrower legal lending limit and for risk diversification.  

In November 2017, we purchased a $7.8 million portfolio of private education loans made to American citizens attending AMA approved medical schools in Caribbean nations. The private student loans were made following a proven credit criteria and were underwritten in accordance with the Bank’s policies. At December 31, 2021, the balance of the private education loans was $4.4 million.

 

 

9

 

 


The following table shows our loan originations, sales and repayment activities for the year ended December 31, 2021 and 2020 including loans held for sale.

 

 

 

For the Year Ended December 31,

 

 

For the Year Ended December 31,

 

 

 

2021

 

 

2020

 

Total loans at beginning of year (1)

 

$

400,663

 

 

$

293,002

 

Loan originations:

 

 

 

 

 

 

 

 

Residential:

 

 

 

 

 

 

 

 

One- to four-family (1)

 

 

627,074

 

 

 

647,913

 

Home equity & HELOCs

 

 

3,000

 

 

 

 

Commercial real estate

 

 

69,699

 

 

 

51,167

 

Commercial business

 

 

12,731

 

 

 

1,257

 

SBA PPP loans

 

 

50,801

 

 

 

76,080

 

Main Street Lending Program

 

 

 

 

 

31,112

 

Construction

 

 

70,507

 

 

 

2,098

 

Consumer loans

 

 

17

 

 

 

33

 

Total loans originated

 

 

833,829

 

 

 

809,660

 

Loans Purchased

 

 

 

 

 

 

Sales and loan principal repayments:

 

 

 

 

 

 

 

 

Principal repayments

 

 

209,855

 

 

 

114,509

 

Loan sales