Constructed in an innovative fashion that made extensive use of aluminum, the XPTBH proved successful in flight testing, but failed to win favor with the U.S. Navy.

[3][N 1] The Hall Aluminum Aircraft Company submitted the only seaplane design;[3] a single prototype was ordered by the Navy for evaluation on June 30, 1934.

[9] As ordered, the XPTBH-1 was intended to be fitted with Wright R-1820 "Cyclone" radial engines;[5] delays in design caused by Hall relocating their production facility, difficulties with the contract, and doubts about the aircraft's performance potential led to a redesign, the aircraft becoming slightly smaller and the engines being changed to a pair of Pratt & Whitney R-1830 "Twin Wasp" radials.

[9] The aircraft was well-armed defensively by 1930s standards, with a powered turret, designed by Hall, mounted in the nose and carrying a single .30-caliber machine gun.

[5] Delivered to the Navy on January 30, 1937,[5][11][N 2] the aircraft was officially presented to the public at Hall's Bristol, Pennsylvania, factory in April of that year.