Harleysville Financial Corporation Announces Quarterly Earnings and a 3.3% Increase of the Regular Cash Dividend for the First Fiscal Quarter 2024

Rhea-AI Summary

Harleysville Financial Corporation (HARL) announced a 3.3% increase in its regular quarterly cash dividend to $.31 per share. Despite net income decline, the company remains committed to maintaining prudent underwriting standards and sound capital management.

Positive

• None.

Negative

• Net income for the quarter ended December 31, 2023, declined to $2,510,000 or $.69 per diluted share compared to $3,331,000 or $.89 per diluted share for the same quarter last 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 $.31 per share on the Company’s common stock. This represents an increase of 3.3% or $.01 per share from the previous dividend. The cash dividend will be payable on February 21, 2024 to stockholders of record on February 7, 2024.

Net income for the quarter ended December 31, 2023 was $2,510,000 or $.69 per diluted share compared to $3,331,000 or $.89 per diluted share for the same quarter last year.

President and Chief Executive Officer, Brendan J. McGill stated, “The banking industry continues to adjust to the challenges from the current economic conditions and the elevated interest rate environment. The rapid repricing of deposits and borrowings, and slower repricing of loans has resulted in net interest margin compression. Despite these challenges we are pleased to report solid financial results for the first quarter. In addition, we know how important our dividend is to our stockholders and we are pleased to create additional value by increasing the cash dividend to $.31 per share. We will continue to navigate this environment adhering to our fundamental operating principles of maintaining prudent underwriting standards, investing in high credit quality assets, controlling our operating expenses, and practicing sound capital management.”

The Company’s assets totaled $853.3 million compared to $877.5 million a year ago, and stockholders’ tangible book value increased to $23.05 per share from $22.27 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, 2023
(Dollars in thousands except per share data)
(Unaudited)		Three Months Ended:
Selected Consolidated Earnings Data		Dec 31, 2023				Sep 30, 2023				June 30, 2023				Mar 31, 2023				Dec 31, 2022
Total interest income		$	9,176			$	8,728			$	8,395			$	8,473			$	8,636
Total interest expense			2,552				1,664				874				701				637
Net Interest Income			6,624				7,064				7,521				7,772				7,999
Provision for loan losses			8				(595	)			146				220				229
Net Interest Income after Provision for Loan Losses			6,616				7,659				7,375				7,552				7,770
Bank owned life insurance			102				101				97				98				100
Other income			580				617				593				555				544
Total other expenses			3,971				4,317				4,325				4,114				3,933
Income before income taxes			3,327				4,060				3,740				4,091				4,481
Income tax expense			817				1,042				939				1,018				1,150
Net Income		$	2,510			$	3,018			$	2,801			$	3,073			$	3,331
Per Common Share Data
Basic earnings		$	0.69			$	0.82			$	0.76			$	0.83			$	0.90
Diluted earnings		$	0.69			$	0.82			$	0.76			$	0.82			$	0.89
Dividends		$	0.30			$	0.30			$	0.30			$	0.30			$	0.29
Special Dividend		$	1.20			$	-			$	-			$	-			$	1.16
Tangible book value		$	23.05			$	23.76			$	23.26			$	22.79			$	22.27
Shares outstanding			3,646,269				3,670,488				3,663,905				3,708,367				3,721,269
Average shares outstanding - basic			3,643,746				3,661,248				3,688,845				3,715,772				3,715,838
Average shares outstanding - diluted			3,652,493				3,674,442				3,706,597				3,740,421				3,743,724

		Three Months Ended:
Other Selected Consolidated Data		Dec 31, 2023				Sep 30, 2023				June 30, 2023				Mar 31, 2023				Dec 31, 2022
Return on average assets			1.18	%			1.44	%			1.35	%			1.44	%			1.49	%
Return on average equity			11.79	%			14.07	%			13.24	%			14.73	%			15.97	%
Net interest rate spread			2.83	%			3.20	%			3.58	%			3.62	%			3.57	%
Net yield on interest earning assets			3.19	%			3.45	%			3.71	%			3.72	%			3.65	%
Operating expenses to average assets			1.87	%			2.06	%			2.09	%			1.93	%			1.76	%
Efficiency ratio			54.35	%			55.47	%			52.67	%			48.83	%			45.51	%
Ratio of non-performing loans to total assets at end of period			0.28	%			0.31	%			0.28	%			0.24	%			0.28	%
Loan loss reserve to total loans, net			0.71	%			0.77	%			0.89	%			0.91	%			0.88	%
Stockholders' equity to assets			9.85	%			10.35	%			10.27	%			10.03	%			9.45	%
Selected Consolidated Financial Data		Dec 31, 2023				Sep 30, 2023				June 30, 2023				Mar 31, 2023				Dec 31, 2022
Total assets		$	853,315			$	842,274			$	829,933			$	842,882			$	877,525
Cash & investment securities			23,626				22,168				25,623				57,163				94,330
Mortgage-backed securities			142,677				147,821				153,205				158,731				163,968
Total Investments			166,303				169,989				178,828				215,894				258,298
Consumer Loans receivable			325,654				318,349				305,780				290,509				288,912
Commercial Loans receivable			327,093				320,384				314,756				306,636				300,109
Loan loss reserve			(4,663	)			(4,919	)			(5,525	)			(5,408	)			(5,203	)
Total Loans receivable net			648,084				633,814				615,011				591,737				583,818
FHLB stock			5,550				5,144				3,024				2,234				2,601
Checking accounts			266,353				272,835				286,725				294,421				299,974
Savings accounts			239,496				257,246				282,425				306,226				318,718
Certificate of deposit accounts			140,194				117,687				110,898				109,453				114,913
Total Deposits			646,043				647,768				680,048				710,100				733,605
Advances			113,430				98,045				53,245				38,363				49,624
Total stockholders' equity			84,039				87,213				85,212				84,531				82,884

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240124386443/en/

M. Shane Michalak

Senior Vice President/CFO

215-256-8828

Source: Harleysville Financial Corporation

FAQ

What is the ticker symbol for Harleysville Financial Corporation?

The ticker symbol for Harleysville Financial Corporation is HARL.

What is the quarterly cash dividend declared by Harleysville Financial Corporation?

Harleysville Financial Corporation declared a regular quarterly cash dividend of $.31 per share on its common stock.

When will the cash dividend be payable to stockholders?

The cash dividend will be payable on February 21, 2024, to stockholders of record on February 7, 2024.

What was the net income for the quarter ended December 31, 2023?

The net income for the quarter ended December 31, 2023, was $2,510,000 or $.69 per diluted share.

Where is Harleysville Financial Corporation headquartered?

Harleysville Financial Corporation is headquartered in Harleysville, PA.

How many full-service offices does Harleysville Bank operate?

Harleysville Bank operates from six full-service offices located in Montgomery County and one office located in Bucks County, Pennsylvania.