HVBC 2016 Annual Report

HV Bancorp, Inc. and Subsidiary Notes to the Consolidated Financial Statements Years Ended June 30, 2017 and 2016 72 2016 Loans Receivable 30-59 60-89 Greater >90 Days Days Days than 90 Total Total Loans and (Dollars in thousands) Past Due Past Due Days Past Due Current Receivable Accruing Residential: One-to-four family $ 470 $ 317 $ 659 $ 1,446 $ 70,534 $ 71,980 $ — Home equity and HELOCs 94 79 227 400 6,048 6,448 — Commercial: Commercial real estate — — 100 100 11,520 11,620 — Commercial business — — — — 558 558 — Construction — — — — 3,179 3,179 — Consumer — — — — 10 10 — $ 564 $ 396 $ 986 $ 1,946 $ 91,849 $ 93,795 $ — The Bank may grant a concession or modification for economic or legal reasons related to a borrower's financial condition that it would not otherwise consider resulting in a modified loan that is then identified as a troubled debt restructuring (“TDR”). The Company may modify loans through rate reductions, extensions of maturity, interest only payments, or payment modifications to better match the timing of cash flows due under the modified terms with the cash flows from the borrowers' operations. Loan modifications are intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. TDRs are disclosed as and considered impaired loans for purposes of calculating the Company's allowance for loan losses. The Bank may identify loans for potential restructure primarily through direct communication with the borrower and evaluation of the borrower's financial statements, revenue projections, tax returns, and credit reports. Even if the borrower is not presently in default, management will consider the likelihood that cash flow shortages, adverse economic conditions and negative trends may result in a payment default in the near future. As of June 30, 2017 and June 30, 2016, the Bank had two loans identified as TDRs totaling $331,000 and $357,000, respectively. At June 30, 2017 and 2016, all of the TDRs were performing in compliance with their restructured terms and on an accrual status. There were no modifications to loans classified as TDRs in 2017. The following table details the Bank’s TDRs at June 30, 2017: Number Accrual Non-Accrual (Dollars in thousands) Of Loans Status Status Total TDRs Commercial real estate 2 $ 331 $ — $ 331 Total 2 $ 331 $ — $ 331 The following table details the Bank’s TDRs at June 30, 2016: Number Accrual Non-Accrual (Dollars in thousands) Of Loans Status Status Total TDRs Commercial real estate 2 $ 357 $ — $ 357 Total 2 $ 357 $ — $ 357