DOYLESTOWN, Pa., Aug. 19, 2022 (GLOBE NEWSWIRE) -- HV Bancorp, Inc. (hereinafter the �Company� ) (Nasdaq Capital Market: HVBC), the holding company of Huntingdon Valley Bank a/k/a HVB the better experience Bank (hereinafter �HVB�), announced the following:

HVB and The MakerDAO PROTOCOL (�MakerDAO�) pioneer the first commercial loan participation between a U.S. Regulated Financial Institution and a decentralized digital currency (the �DAI� a stable coin). Effectively converting a digital currency to a real world asset that generates a stable yield for MakerDAO�s DAI stable coin and simultaneously provides commercial loan funding to HVB for lending into the Philadelphia Market Service Area.

Through this transaction DAI stable coins were converted to US Dollars by a U.S. regulated broker-dealer and those funds were deposited into a Delaware Trust Account (�DTA�) for the benefit of MakerDAO. The DTA Trustee uses these dollars to buy loan participations from HVB through a Master Loan Participation Agreement (�MLPA�) approved by a successful vote of MakerDAO token holders. MakerDAO will prefund the DTA with $100 million US Dollars converted from DAI stable coins and is making the balance of these funds available to HVB Lenders for future commercial loan funding in accordance with the MLPA. The goal of the transaction was to allow the DAI to be supported by yield generating commercial assets originated through a U.S. regulated financial institution. With the MakerDAO program, HVB benefits by having a stable and consistent partner to sell loan participations. This transaction enables HVB to expand its lending activities in the Greater Philadelphia area because it can now consistently syndicate portions of new loan originations to DTA.

Travis J. Thompson, Esq. Chairman and CEO of HVB commented, �This is the kind of financial innovation that helps bring stable assets to the Cryptocurrency space and provides real benefits to the U.S, economy by bringing a new funding source to the table that will enable economic growth to continue in the greater Philadelphia market area through expanded commercial lending activities. I commend Daniel Krewson SVP & Market President and Hugh Connelly, EVP & Chief Lending Officer along with the HVB team and the folks at MakerDAO for meticulously following through on this innovative idea.�

Hugh W. Connelly, EVP & Chief Lending Officer commented that, �Rather than attempting to evade regulation, the MakerDAO community has joined with a US regulated institution to transform some of their digital currency into an interest yielding asset that embraces U.S. underwriting standards, is backed by U.S. real estate and the proceeds generated therefrom can be converted back into DAI through their U.S. broker dealer. This creates a win-win between a US bank and a US stable coin that has worldwide adoption.�

CRYPTOCURRENCIES AND DIGITAL CURRENCIES ARE NOT FDIC INSURED. HVB does not offer or hold crypto assets of any kind and cryptocurrencies, including by not limited to MakerDAO and DAI, ARE NOT FDIC INSURED. HVB does not offer deposit products which are, in any way, related to crypto assets and this participation program is not deposit related in any fashion and only relates to loans originated by HVB which are not activities with crypto assets, smart contracts or the block chain.

About HV Bancorp, Inc.

HV Bancorp, Inc. (Nasdaq Capital Market: HVBC) is a bank holding company headquartered in Doylestown, PA. Through its wholly owned subsidiary Huntingdon Valley Bank, we primarily serve communities located in Montgomery, Bucks and Philadelphia Counties in Pennsylvania, New Castle County in Delaware, and Burlington County in New Jersey from our executive office, seven full service bank offices and one limited service bank office. We also operate six loan production and sales offices in our geographical footprint.

Forward-Looking Statements
Certain statements contained herein are �forward-looking statements� within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as �may,� �will,� �believe,� �expect,� �estimate,� �anticipate,� �continue,� or similar terms or variations on those terms, or the negative of those terms. Such forward-looking statements are subject to risk and uncertainties described in our SEC filings, which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, the negative impact of severe wide-ranging and continuing disruptions caused by the spread of coronavirus COVID-19 and any other pandemic, epidemic or health-related crisis on current operations, customers and the economy in general, inflation and monetary fluctuations and volatility, changes in interest rate environment, increases in nonperforming loans, legislative and regulatory changes that adversely affect the business of the Company and the Bank, and changes in the securities markets. Except as required by law, the Company does not undertake any obligation to update any forward-looking statements to reflect changes in belief, expectations or event.

Contact: Joseph C. O�Neill, Jr.,
EVP/ Chief Financial Officer
(267) 280-4000