Harleysville Financial Corporation Announces Earnings for the Fiscal Year Ended September 30, 2021 and the Declaration of Regular Cash Dividend

Rhea-AI Summary

Harleysville Financial Corporation (OTCQX:HARL) announced a quarterly cash dividend of $0.28 per share, payable on November 17, 2021. For the year ending September 30, 2021, net income reached $7.28 million, or $1.93 per diluted share, up from $7.11 million, or $1.87 per diluted share in the prior year. The fourth quarter net income was $1.55 million, down from $1.79 million year-over-year. The company reported total assets of $892.6 million, a 4.2% year-over-year increase, with a book value of $21.69 per share. CEO Brendan J. McGill expressed optimism for the future despite challenges from low interest rates and COVID-19.

Positive

• Net income increased to $7.28 million from $7.11 million YoY.
• Book value increased 3.48% to $21.69 per share.
• Total assets grew to $892.6 million, up from $854.9 million.

Negative

• Fourth quarter net income declined to $1.55 million from $1.79 million YoY.
• Impact of prepayment expenses on earnings.

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 $.28 per share on the Company’s common stock. The cash dividend will be payable on November 17, 2021 to stockholders of record on November 3, 2021.

Net income for the twelve months ended September 30, 2021 amounted to $7,284,000 or $1.93 per diluted share compared to $7,111,000 or $1.87 per diluted share for the twelve months ended September 30, 2020. Net income for the twelve months ended September 30, 2021 included SBA Paycheck Protection Program (PPP) fee income totaling $1,231,000, which was partially offset by prepayment expenses on Federal Home Loan Bank Advances of $522,000 or a net benefit of $.19 per diluted share for the twelve months ended.

Net income for the fourth quarter of fiscal year 2021 amounted to $1,546,000 or $.41 per diluted share compared to $1,794,000 or $.48 per diluted share for the fourth quarter of fiscal year 2020. Net income for the three months ended September 30, 2021 included SBA Paycheck Protection Program (PPP) fee income totaling $222,000, which was offset by prepayment expenses on Federal Home Loan Bank Advances of $434,000 or net impact of $.06 per diluted share for the three months ended.

Commenting on the year-end operating results, President and Chief Executive Officer Brendan J. McGill said, “We are pleased with our fiscal year end results despite the challenges of a lower interest rate environment and the prolonged COVID-19 pandemic. The Bank continues to prove its strength and resiliency through strong earnings, solid credit quality and managing expenses.

We are optimistic that most of the burdens of the COVID-19 pandemic are now behind us and we will continue to focus on the needs of our customers, safety of our team members and supporting our communities.”

The Company’s assets totaled $892.6 million compared to $854.9 million a year ago. Stockholders’ book value increased 3.48% to $21.69 per share from $20.96 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 full-service 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 September 30, 2021
(Dollars in thousands except per share data)		Year-To-Date
(Unaudited)		Twelve Months Ended:								Three Months Ended:
Selected Consolidated Earnings Data		Sept 30, 2021				Sept 30, 2020				Sept 30, 2021				Jun 30, 2021				Mar 31, 2021				Dec 31, 2020				Sept 30, 2020
Total interest income		$	27,323			$	29,620			$	6,555			$	6,628			$	6,980			$	7,160			$	7,156
Total interest expense			4,833				6,684				1,067				1,187				1,239				1,340				1,510
Net Interest Income			22,490				22,936				5,488				5,441				5,741				5,820				5,646
Provision for loan losses			385				811				90				105				95				95				154
Net Interest Income after Provision for Loan Losses			22,105				22,125				5,398				5,336				5,646				5,725				5,492
Gain on sales of loans			252				-				61				29				96				66				-
Bank owned life insurance			393				398				99				95				99				100				100
Other income			2,531				2,134				679				603				612				637				567
Total other expenses			15,431				15,288				4,203				3,928				3,706				3,594				3,847
Income before income taxes			9,850				9,369				2,034				2,135				2,747				2,934				2,312
Income tax expense			2,566				2,258				488				553				693				832				518
Net Income		$	7,284			$	7,111			$	1,546			$	1,582			$	2,054			$	2,102			$	1,794
Per Common Share Data
Basic earnings		$	1.95			$	1.89			$	0.41			$	0.42			$	0.55			$	0.56			$	0.48
Diluted earnings		$	1.93			$	1.87			$	0.41			$	0.42			$	0.54			$	0.56			$	0.48
Dividends		$	1.11			$	1.06			$	0.28			$	0.28			$	0.28			$	0.27			$	0.27
Tangible book value		$	21.69			$	20.96			$	21.69			$	21.61			$	21.50			$	21.23			$	20.96
Shares outstanding			3,721,038				3,752,221				3,721,038				3,741,307				3,743,203				3,745,058				3,752,221
Average shares outstanding - basic			3,744,566				3,759,909				3,732,812				3,744,305				3,748,385				3,752,787				3,749,350
Average shares outstanding - diluted			3,780,450				3,800,492				3,776,160				3,788,028				3,780,590				3,776,067				3,775,775
Harleysville Financial Corporation
Selected Consolidated Financial Data as of September 30, 2021
(Dollars in thousands except per share data)		Year-To-Date
(Unaudited)		Twelve Months Ended:								Three Months Ended:
Other Selected Consolidated Data		Sept 30, 2021				Sept 30, 2020				Sept 30, 2021				Jun 30, 2021				Mar 31, 2021				Dec 31, 2020				Sept 30, 2020
Return on average assets			0.82	%			0.87	%			0.68	%			0.69	%			0.93	%			0.98	%			0.83	%
Return on average equity			9.12	%			9.21	%			7.66	%			7.87	%			10.29	%			10.65	%			9.21	%
Net interest rate spread			2.43	%			2.71	%			2.34	%			2.29	%			2.49	%			2.61	%			2.52	%
Net yield on interest earning assets			2.58	%			2.89	%			2.48	%			2.44	%			2.64	%			2.76	%			2.69	%
Operating expenses to average assets			1.76	%			1.87	%			1.86	%			1.72	%			1.67	%			1.67	%			1.79	%
Efficiency ratio			60.72	%			60.03	%			67.08	%			63.98	%			57.44	%			54.82	%			60.94	%
Ratio of non-performing loans to total assets at end of period			0.84	%			0.88	%			0.84	%			0.84	%			0.82	%			0.89	%			0.88	%
Loan loss reserve to total loans, net			1.00	%			0.87	%			1.00	%			0.95	%			0.92	%			0.87	%			0.87	%
Stockholders' equity to assets			9.04	%			9.20	%			9.04	%			8.94	%			8.90	%			9.11	%			9.20	%
Selected Consolidated Financial Data		Sept 30, 2021				Jun 30, 2021				Mar 31, 2021				Dec 31, 2020				Sept 30, 2020
Total assets		$	892,639			$	904,670			$	904,515			$	873,410			$	854,876
Cash & investment securities			227,857				225,490				220,822				170,640				127,951
Mortgage-backed securities			83,412				76,177				71,683				70,895				81,851
Total Investments			311,269				301,667				292,505				241,535				209,802
Consumer Loans receivable			291,817				303,367				316,840				339,951				358,472
Commercial Loans receivable			250,627				254,856				244,148				237,908				226,239
SBA Paycheck Protection Program (PPP)			7,782				13,069				18,029				20,990				27,459
Loan loss reserve			(5,520	)			(5,422	)			(5,320	)			(5,235	)			(5,308	)
Total Loans receivable net			544,706				565,870				573,697				593,614				606,862
Total Loans held for sale			466				192				939				720				-
FHLB stock			3,583				3,955				4,281				4,310				4,463
Checking accounts			273,274				269,246				270,878				257,227				231,068
Savings accounts			299,306				293,948				281,350				256,721				252,117
Certificate of deposit accounts			153,356				159,271				165,310				168,577				174,545
Total Deposits			725,936				722,465				717,538				682,525				657,730
Advances			77,558				89,357				95,043				100,173				109,684
Total stockholders' equity			80,702				80,845				80,467				79,524				78,631

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211020005991/en/

M. Shane Michalak

Senior Vice President /CFO

(215-256-8828)

Source: Harleysville Financial Corporation

FAQ

What was Harleysville Financial Corporation's net income for 2021?

For the fiscal year ending September 30, 2021, Harleysville Financial Corporation reported a net income of $7.28 million.

What is the dividend declared by Harleysville Financial Corporation?

Harleysville Financial Corporation declared a quarterly cash dividend of $0.28 per share.

When will the dividend be paid by Harleysville Financial Corporation?

The dividend will be payable on November 17, 2021, to stockholders of record on November 3, 2021.

What are the total assets reported by Harleysville Financial Corporation?

The total assets of Harleysville Financial Corporation were reported at $892.6 million.

What is the book value per share for Harleysville Financial Corporation?

The book value per share for Harleysville Financial Corporation increased to $21.69.