Harleysville Financial Corporation Announces Record Earnings for the Fiscal Year Ended September 30, 2023, and the Declaration of Regular Cash Dividend

Rhea-AI Summary

Harleysville Financial Corporation declares regular quarterly cash dividend and reports record earnings for fiscal year 2023

Positive

• Harleysville Financial Corporation declared a regular quarterly cash dividend of $.30 per share on the Company’s common stock.
• Net income for the twelve months ended September 30, 2023 amounted to $12,223,000 or $3.29 per diluted share, representing a 39% increase over the prior year.
• President and CEO Brendan J. McGill commented that despite margin compression, the company generated strong earnings in the fourth quarter of fiscal year 2023.
• The company's assets totaled $842.3 million, and stockholders' book value increased 4.16% to $23.76 per share.
• Harleysville Financial Corporation is traded on the OTCQX market under the symbol HARL and is the holding company for Harleysville Bank.

Negative

• None.

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 $.30 per share on the Company’s common stock. The cash dividend will be payable on November 15, 2023 to stockholders of record on November 1, 2023.

Net income for the twelve months ended September 30, 2023 amounted to $12,223,000 or $3.29 per diluted share compared to $8,790,000 or $2.34 per diluted share for the twelve months ended September 30, 2022.

Net income for the fourth quarter of fiscal year 2023 amounted to $3,018,000 or $.82 per diluted share compared to $2,892,000 or $.77 per diluted share for the fourth quarter of fiscal year 2022. Due to a decrease in qualitative factors in the Allowance for Credit Losses calculation, there was a reduction in our provision for loan losses of $595,000 included in our twelve months and three months ended September 30, 2023.

Commenting on the year-end operating results, President and Chief Executive Officer Brendan J. McGill said, “We are pleased to report record earnings for the fiscal year 2023 of $12,223,000, which represents a 39% increase over prior year.

We continued to generate strong earnings in the fourth quarter of fiscal 2023, despite seeing margin compression due to cost of funding increasing on deposits as well as borrowings. We anticipate additional margin compression in the coming fiscal year. We feel our balance sheet is strong. We are being intentional when it comes to pricing our loan and deposit products while still providing our customers with competitive rates, they have come to expect from us. We will continue to navigate the uncertain economic 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 $842.3 million compared to $912.1 million a year ago. Stockholders’ book value increased 4.16% to $23.76 per share from $22.81 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, 2023
(Dollars in thousands except per share data)		Year-To-Date
(Unaudited)		Twelve Months Ended:								Three Months Ended:
Selected Consolidated Earnings Data		Sep 30, 2023				Sep 30, 2022				Sep 30, 2023				June 30, 2023				Mar 31, 2023				Dec 31, 2022				Sept 30, 2022
Total interest income		$	34,232			$	27,315			$	8,728			$	8,395			$	8,473			$	8,636			$	7,991
Total interest expense			3,876				3,157				1,664				874				701				637				667
Net Interest Income			30,356				24,158				7,064				7,521				7,772				7,999				7,324
Provision for loan losses			-				280				(595	)			146				220				229				150
Net Interest Income after Provision for Loan Losses			30,356				23,878				7,659				7,375				7,552				7,770				7,174
Gain on sales of loans			-				21				-				-				-				-				-
Bank owned life insurance			396				389				101				97				98				100				98
Other income			2,309				2,583				617				593				555				544				649
Total other expenses			16,689				15,374				4,317				4,325				4,114				3,933				4,094
Income before income taxes			16,372				11,497				4,060				3,740				4,091				4,481				3,827
Income tax expense			4,149				2,707				1,042				939				1,018				1,150				935
Net Income		$	12,223			$	8,790			$	3,018			$	2,801			$	3,073			$	3,331			$	2,892
Per Common Share Data
Basic earnings		$	3.31			$	2.36			$	0.82			$	0.76			$	0.83			$	0.90			$	0.78
Diluted earnings		$	3.29			$	2.34			$	0.82			$	0.76			$	0.82			$	0.89			$	0.77
Dividends		$	1.19			$	1.15			$	0.30			$	0.30			$	0.30			$	0.29			$	0.29
Special Dividend		$	1.16			$	-			$	-			$	-			$	-			$	1.16			$	-
Tangible book value		$	23.76			$	22.81			$	23.76			$	23.26			$	22.79			$	22.27			$	22.81
Shares outstanding			3,670,488				3,719,141				3,670,488				3,663,905				3,708,367				3,721,269				3,719,141
Average shares outstanding - basic			3,695,353				3,718,208				3,661,248				3,688,845				3,715,772				3,715,838				3,720,147
Average shares outstanding - diluted			3,715,653				3,756,246				3,674,442				3,706,597				3,740,421				3,743,724				3,751,155
		Year-To-Date
		Twelve Months Ended:								Three Months Ended:
Other Selected Consolidated Data		Sep 30, 2023				Sep 30, 2022				Sep 30, 2023				June 30, 2023				Mar 31, 2023				Dec 31, 2022				Sept 30, 2022
Return on average assets			1.43	%			0.96	%			1.44	%			1.35	%			1.44	%			1.49	%			1.25	%
Return on average equity			14.49	%			10.72	%			14.07	%			13.24	%			14.73	%			15.97	%			13.82	%
Net interest rate spread			3.49	%			2.59	%			3.20	%			3.58	%			3.62	%			3.57	%			3.16	%
Net yield on interest earning assets			3.63	%			2.69	%			3.45	%			3.71	%			3.72	%			3.65	%			3.24	%
Operating expenses to average assets			1.96	%			1.68	%			2.06	%			2.09	%			1.93	%			1.76	%			1.78	%
Efficiency ratio			50.48	%			56.67	%			55.47	%			52.67	%			48.83	%			45.51	%			50.72	%
Ratio of non-performing loans to total
assets at end of period			0.31	%			0.26	%			0.31	%			0.28	%			0.24	%			0.28	%			0.26	%
Loan loss reserve to total loans, net			0.77	%			0.89	%			0.77	%			0.89	%			0.91	%			0.88	%			0.89	%
Stockholders' equity to assets			10.35	%			9.30	%			10.35	%			10.27	%			10.03	%			9.45	%			9.30	%
Selected Consolidated Financial Data		Sep 30, 2023				June 30, 2023				Mar 31, 2023				Dec 31, 2022				Sept 30, 2022
Total assets		$	842,274			$	829,933			$	842,882			$	877,525			$	912,127
Cash & investment securities			22,168				25,623				57,163				94,330				149,231
Mortgage-backed securities			147,821				153,205				158,731				163,968				165,008
Total Investments			169,989				178,828				215,894				258,298				314,239
Consumer Loans receivable			318,349				305,780				290,509				288,912				275,594
Commercial Loans receivable			320,384				314,756				306,636				300,109				291,537
Loan loss reserve			(4,919	)			(5,525	)			(5,408	)			(5,203	)			(5,021	)
Total Loans receivable net			633,814				615,011				591,737				583,818				562,110
FHLB stock			5,144				3,024				2,234				2,601				3,049
Checking accounts			272,835				286,725				294,421				299,974				305,340
Savings accounts			257,246				282,425				306,226				318,718				328,311
Certificate of deposit accounts			117,687				110,898				109,453				114,913				122,235
Total Deposits			647,768				680,048				710,100				733,605				755,886
Advances			98,045				53,245				38,363				49,624				61,858
Total stockholders' equity			87,213				85,212				84,531				82,884				84,839

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231018123687/en/

FOR FURTHER INFORMATION

M. Shane Michalak

Senior Vice President/CFO

(215-256-8828)

Source: Harleysville Financial Corporation

FAQ

What is the dividend declared by Harleysville Financial Corporation?

Harleysville Financial Corporation declared a regular quarterly cash dividend of $.30 per share on the Company’s common stock.

What is the net income for the twelve months ended September 30, 2023?

The net income for the twelve months ended September 30, 2023, amounted to $12,223,000 or $3.29 per diluted share.

Who is the President and CEO of Harleysville Financial Corporation?

Brendan J. McGill is the President and CEO of Harleysville Financial Corporation.

What is the total assets and stockholders' book value of Harleysville Financial Corporation?

The total assets of Harleysville Financial Corporation are $842.3 million, and the stockholders' book value increased 4.16% to $23.76 per share.

Where is Harleysville Financial Corporation traded?

Harleysville Financial Corporation is traded on the OTCQX market under the symbol HARL.