Harleysville Financial Corporation Announces Earnings and a 3.6% Increase of the Regular Cash Dividend for the First Fiscal Quarter 2022

Rhea-AI Summary

Harleysville Financial Corporation (OTCQX:HARL) announced a quarterly cash dividend of $0.29 per share, marking a 3.6% increase from the previous dividend. This payment will be made on February 23, 2022, to shareholders recorded by February 9, 2022. For Q1 2022, net income was reported at $1,856,000 ($0.49 per diluted share), down from $2,102,000 ($0.56 per diluted share) year-over-year. The company's assets grew to $908.9 million from $873.4 million, with tangible book value rising to $21.90 per share, up from $21.23.

Positive

• Increased dividend by 3.6% to $0.29 per share.
• Assets rose to $908.9 million from $873.4 million YOY.
• Tangible book value increased to $21.90 per share from $21.23.

Negative

• Net income declined to $1,856,000 from $2,102,000 YOY.
• EPS decreased from $0.56 to $0.49 compared to the previous year.

HARLEYSVILLE, Pa.--(BUSINESS WIRE)-- Harleysville Financial Corporation (OTCQX:HARL) reported today that the Company’s Board of Directors declared a regular quarterly cash dividend of $.29 per share on the Company’s common stock. This represents an increase of 3.6% or $.01 per share from the previous dividend. The cash dividend will be payable on February 23, 2022 to stockholders of record on February 9, 2022.

Net income for the quarter ended December 31, 2021 was $1,856,000 or $.49 per diluted share compared to $2,102,000 or $.56 per diluted share for the same quarter last year.

President and Chief Executive Officer Brendan J. McGill stated, “We are pleased with the solid financial results of the first quarter. The Bank has achieved solid earnings, balance sheet growth and strong credit quality while navigating through the ongoing pandemic and low interest rate environment. We believe our balance sheet is strong and we are well capitalized. We know how important our dividend is to our stockholders and we are pleased to create additional value by increasing the cash dividend to $.29 per share.”

The Company’s assets totaled $908.9 million compared to $873.4 million a year ago, and stockholders’ tangible book value increased to $21.90 per share from $21.23 a year ago.

Harleysville Financial Corporation is traded on the OTCQX market under the symbol HARL (http://www.otcmarkets.com) and is the holding company for Harleysville Bank. Established in 1915, Harleysville Bank is a Pennsylvania chartered and federally insured bank, headquartered in Harleysville, PA. The Bank operates from six full-service offices located in Montgomery County and one office located in Bucks County, Pennsylvania.

This presentation may contain forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995). Actual results may differ materially from the results discussed in these forward-looking statements. Factors that might cause such a difference include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, loan demand, real estate values and competition; changes in accounting principles, policies, or guidelines; changes in legislation or regulation; and other economic; competitive, governmental, regulatory, and technological factors affecting the Company's operations, pricing, products and services.

Harleysville Financial Corporation
Selected Consolidated Financial Data as of December 31, 2021
(Dollars in thousands except per share data)
( Unaudited)		Three Months Ended:
Selected Consolidated Earnings Data		Dec 31, 2021				Sept 30, 2021				Jun 30, 2021				Mar 31, 2021				Dec 31, 2020
Total interest income		$	6,466			$	6,555			$	6,628			$	6,980			$	7,160
Total interest expense			957				1,067				1,187				1,239				1,340
Net Interest Income			5,509				5,488				5,441				5,741				5,820
Provision for loan losses			60				90				105				95				95
Net Interest Income after Provision for Loan Losses			5,449				5,398				5,336				5,646				5,725
Gain on sales of loans			17				61				29				96				66
Bank owned life insurance			98				99				95				99				100
Other income			656				679				603				612				637
Total other expenses			3,676				4,203				3,928				3,706				3,594
Income before income taxes			2,544				2,034				2,135				2,747				2,934
Income tax expense			689				488				553				693				832
Net Income		$	1,855			$	1,546			$	1,582			$	2,054			$	2,102
Per Common Share Data
Basic earnings		$	0.50			$	0.41			$	0.42			$	0.55			$	0.56
Diluted earnings		$	0.49			$	0.41			$	0.42			$	0.54			$	0.56
Dividends		$	0.28			$	0.28			$	0.28			$	0.28			$	0.27
Tangible book value		$	21.90			$	21.69			$	21.61			$	21.50			$	21.23
Shares outstanding			3,710,135				3,721,038				3,741,307				3,743,203				3,745,058
Average shares outstanding - basic			3,717,096				3,732,812				3,744,305				3,748,385				3,752,787
Average shares outstanding - diluted			3,759,512				3,776,160				3,788,028				3,780,590				3,776,067
		Three Months Ended:
Other Selected Consolidated Data		Dec 31, 2021				Sept 30, 2021				Jun 30, 2021				Mar 31, 2021				Dec 31, 2020
Return on average assets			0.82	%			0.68	%			0.69	%			0.93	%			0.98	%
Return on average equity			9.19	%			7.66	%			7.87	%			10.29	%			10.65	%
Net interest rate spread			2.37	%			2.34	%			2.29	%			2.49	%			2.61	%
Net yield on interest earning assets			2.49	%			2.48	%			2.44	%			2.64	%			2.76	%
Operating expenses to average assets			1.63	%			1.86	%			1.72	%			1.67	%			1.67	%
Efficiency ratio			58.69	%			67.08	%			63.98	%			57.44	%			54.82	%
Ratio of non-performing loans to total assets at end of period			0.79	%			0.84	%			0.84	%			0.82	%			0.89	%
Loan loss reserve to total loans, net			0.97	%			1.00	%			0.95	%			0.92	%			0.87	%
Stockholders' equity to assets			8.94	%			9.04	%			8.94	%			8.90	%			9.11	%
Selected Consolidated Financial Data		Dec 31, 2021				Sept 30, 2021				Jun 30, 2021				Mar 31, 2021				Dec 31, 2020
Total assets		$	908,922			$	892,639			$	904,670			$	904,515			$	873,410
Cash & investment securities			248,696				227,857				225,490				220,822				170,640
Mortgage-backed securities			93,985				83,412				76,177				71,683				70,895
Total Investments			342,681				311,269				301,667				292,505				241,535
Consumer Loans receivable			279,807				291,817				303,367				316,840				339,951
Commercial Loans receivable			254,490				250,627				254,856				244,148				237,908
SBA Paycheck Protection Program (PPP)			694				7,782				13,069				18,029				20,990
Loan loss reserve			(5,199	)			(5,520	)			(5,422	)			(5,320	)			(5,235	)
Total Loans receivable net			529,792				544,706				565,870				573,697				593,614
Total Loans held for sale			464				466				192				939				720
FHLB stock			3,477				3,583				3,955				4,281				4,310
Checking accounts			292,631				273,274				269,246				270,878				257,227
Savings accounts			308,028				299,306				293,948				281,350				256,721
Certificate of deposit accounts			151,085				153,356				159,271				165,310				168,577
Total Deposits			751,744				725,936				722,465				717,538				682,525
Advances			66,682				77,558				89,357				95,043				100,173
Total stockholders' equity			81,254				80,702				80,845				80,467				79,524

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220126005910/en/

M. Shane Michalak

Senior Vice President/CFO

215-256-8828

Source: Harleysville Financial Corporation

FAQ

What is the latest dividend declared by Harleysville Financial Corporation (HARL)?

Harleysville Financial Corporation (HARL) declared a quarterly cash dividend of $0.29 per share.

When will the dividend be paid to shareholders for HARL?

The dividend will be payable on February 23, 2022, to shareholders recorded by February 9, 2022.

What were the net income results for HARL in Q1 2022?

Harleysville Financial Corporation reported a net income of $1,856,000 or $0.49 per diluted share for Q1 2022.

How did HARL's assets change compared to the previous year?

HARL's total assets increased to $908.9 million from $873.4 million year-over-year.

What was the tangible book value for HARL per share?

The tangible book value per share increased to $21.90 from $21.23 over the past year.