HVBC 2016 Annual Report

55 HV Bancorp, Inc. and Subsidiary Consolidated Statements of Cash Flows (Dollars in thousands) Year ended June 30, 2017 2016 Cash Flows from Operating Activities Net income $ 569 $ 1,026 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation 198 190 Impairment of real estate owned, net — 256 Amortization of deferred loan costs (fees) 17 (9) Net amortization of securities premiums and discounts 191 496 Loss on sale of real estate owned 12 20 Gain on sale of available-for-sale securities (18) (21) Provision for loan losses 201 9 Deferred income taxes (benefit) expense (158) 413 Amortization of deferred gain on sale-leaseback transaction (16) (16) Earnings on bank owned life insurance (110) (112) ESOP Compensation expense 44 — Loans held for sale: Originations, net of prepayments (167,954) (161,693) Proceeds from sales 184,783 157,778 Gain on sales (5,515) (4,116) Change in fair value of loans held for sale 578 (384) (Increase) decrease in: Accrued interest receivable (93) (2) Prepaid income taxes (24) 4 Mortgage banking derivatives 309 (530) Prepaid and other assets (30) 76 Other liabilities (240) 428 Net cash provided by (used in) operating activities 12,744 (6,187) Cash Flows from Investing Activities Net Increase in loans receivable (18,644) (10,444) Activity in available-for-sale securities: Proceeds from sales 4,436 11,653 Maturities and repayments 3,992 5,415 Purchases (18,316) (11,905) Activity in held-to-maturity securities: Maturities and repayments 534 899 Purchases (6,518) (1,980) Redemption (purchase) of restricted investment in bank stock 465 (481) Proceeds from sale of real estate owned 168 496 Purchases of premises and equipment (381) (203) Net cash used in investing activities (34,264) (6,550) Cash Flows from Financing Activities Net increase (decrease) in deposits 28,710 (1,106) Net increase in advances from borrowers for taxes and insurance 45 247 Net (decrease) increase in securities sold under agreements to repurchase (1,046) 427 Proceeds from borrowings from Federal Home Loan Bank 1,000 16,000 Repayment of borrowings from Federal Home Loan Bank (12,000) (3,000) Purchase of ESOP shares (2,430) — Proceeds from issuance of common stock, net 20,391 — Net cash provided by financing activities 34,670 12,568 Increase (decrease) in Cash and Cash Equivalents 13,150 (169) Cash and Cash Equivalents, beginning of year 15,427 15,596 Cash and Cash Equivalents, end of year $ 28,577 $ 15,427 Supplementary Disclosure of Cash Flow Information Cash paid during the year of interest $ 890 $ 753 Cash paid during the year for income taxes $ 330 $ 80 Supplementary Schedule of Noncash Investing Activities Transfer of loans to real estate owned $ 65 $ 313 See the accompanying notes to the consolidated financial statements.