Harleysville Financial Corporation Announces Record Earnings for the Fiscal Year Ended September 30, 2022, and the Declaration of Regular Cash Dividend.

Rhea-AI Summary

Harleysville Financial Corporation (OTCQX:HARL) declared a quarterly cash dividend of $0.29 per share, payable on November 16, 2022. For the year ending September 30, 2022, net income rose 21% to $8.79 million, or $2.34 per diluted share, compared to $7.28 million, or $1.93 per diluted share, in the previous year. The fourth quarter net income was $2.89 million, up from $1.55 million, showing significant growth. Total assets increased to $912.1 million from $892.6 million, with book value per share rising to $22.81, reflecting strong financial health and operational performance.

Positive

• Net income increased by 21% to $8.79 million for the fiscal year 2022.
• Fourth quarter net income rose to $2.89 million, compared to $1.55 million in the previous year.
• Total assets grew to $912.1 million, indicating strong balance sheet growth.
• Stockholders' book value increased by 5.16% to $22.81 per share.

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 $.29 per share on the Company’s common stock. The cash dividend will be payable on November 16, 2022 to stockholders of record on November 2, 2022.

Net income for the twelve months ended September 30, 2022 amounted to $8,790,000 or $2.34 per diluted share compared to $7,284,000 or $1.93 per diluted share for the twelve months ended September 30, 2021. 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 2022 amounted to $2,892,000 or $.77 per diluted share compared to $1,546,000 or $.41 per diluted share for the fourth quarter of fiscal year 2021. 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 to report record earnings for the fiscal year 2022 of $8,790,000, which represents a 21% increase over prior year. Our balance sheet is strong, and our positive financial results include loan growth, increase in transaction accounts, and improvement in our efficiency ratio, interest rate spread and asset quality. I am very proud of the work ethic of our team members and the way they serve our customers. These results reflect our discipline 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. These conditions combined create a strong community bank that is well positioned to continue creating value for our stakeholders.”

The Company’s assets totaled $912.1 million compared to $892.6 million a year ago. Stockholders’ book value increased 5.16% to $22.81 per share from $21.69 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, 2022
(Dollars in thousands except per share data)		Year-To-Date
( Unaudited)		Twelve Months Ended:								Three Months Ended:
Selected Consolidated Earnings Data		Sep 30, 2022				Sep 30, 2021				Sep 30, 2022				Jun 30, 2022				Mar 31, 2022				Dec 31, 2021				Sept 30, 2021
Total interest income		$	27,315			$	27,323			$	7,991			$	6,677			$	6,181			$	6,466			$	6,555
Total interest expense			3,157				4,833				667				699				834				957				1,067
Net Interest Income			24,158				22,490				7,324				5,978				5,347				5,509				5,488
Provision for loan losses			280				385				150				70				-				60				90
Net Interest Income after Provision for Loan Losses			23,878				22,105				7,174				5,908				5,347				5,449				5,398
Gain on sales of loans			21				252				-				-				4				17				61
Bank owned life insurance			389				393				98				96				97				98				99
Other income			2,583				2,531				649				669				609				656				679
Total other expenses			15,374				15,431				4,094				3,877				3,727				3,676				4,203
Income before income taxes			11,497				9,850				3,827				2,796				2,330				2,544				2,034
Income tax expense			2,707				2,566				935				580				503				689				488
Net Income		$	8,790			$	7,284			$	2,892			$	2,216			$	1,827			$	1,855			$	1,546
Per Common Share Data
Basic earnings		$	2.36			$	1.95			$	0.78			$	0.60			$	0.49			$	0.50			$	0.41
Diluted earnings		$	2.34			$	1.93			$	0.77			$	0.59			$	0.49			$	0.49			$	0.41
Dividends		$	1.15			$	1.11			$	0.29			$	0.29			$	0.29			$	0.28			$	0.28
Tangible book value		$	22.81			$	21.69			$	22.81			$	22.33			$	22.04			$	21.90			$	21.69
Shares outstanding			3,719,141				3,721,038				3,719,141				3,721,332				3,721,936				3,710,135				3,721,038
Average shares outstanding - basic			3,718,208				3,744,566				3,720,147				3,721,352				3,714,270				3,717,096				3,732,812
Average shares outstanding - diluted			3,756,246				3,780,450				3,751,155				3,758,018				3,757,258				3,759,512				3,776,160
		Year-To-Date
		Twelve Months Ended:								Three Months Ended:
Other Selected Consolidated Data		Sep 30, 2022				Sep 30, 2021				Sep 30, 2022				Jun 30, 2022				Mar 31, 2022				Dec 31, 2021				Sept 30, 2021
Return on average assets			0.96	%			0.82	%			1.25	%			0.96	%			0.80	%			0.82	%			0.68	%
Return on average equity			10.72	%			9.12	%			13.82	%			10.77	%			8.98	%			9.19	%			7.66	%
Net interest rate spread			2.59	%			2.43	%			3.16	%			2.56	%			2.28	%			2.37	%			2.34	%
Net yield on interest earning assets			2.69	%			2.58	%			3.24	%			2.64	%			2.38	%			2.49	%			2.48	%
Operating expenses to average assets			1.68	%			1.76	%			1.78	%			1.68	%			1.63	%			1.63	%			1.86	%
Efficiency ratio			56.67	%			60.72	%			50.72	%			57.49	%			61.58	%			58.69	%			67.08	%
Ratio of non-performing loans to total
assets at end of period			0.26	%			0.84	%			0.26	%			0.47	%			0.78	%			0.79	%			0.84	%
Loan loss reserve to total loans, net			0.89	%			1.00	%			0.89	%			0.84	%			0.91	%			0.97	%			1.00	%
Stockholders' equity to assets			9.30	%			9.04	%			9.30	%			8.95	%			8.94	%			8.94	%			9.04	%
Selected Consolidated Financial Data		Sep 30, 2022				Jun 30, 2022				Mar 31, 2022				Dec 31, 2021				Sept 30, 2021
Total assets		$	912,127			$	928,738			$	917,612			$	908,922			$	892,639
Cash & investment securities			149,231				197,572				224,157				248,696				227,857
Mortgage-backed securities			165,008				143,506				119,837				93,985				83,412
Total Investments			314,239				341,078				343,994				342,681				311,269
Consumer Loans receivable			275,594				274,541				275,158				279,807				291,817
Commercial Loans receivable			291,537				282,216				267,248				254,490				250,627
SBA Paycheck Protection Program (PPP)			-				-				-				694				7,782
Loan loss reserve			(5,021	)			(4,681	)			(4,930	)			(5,199	)			(5,520	)
Total Loans receivable net			562,110				552,076				537,476				529,792				544,706
Total Loans held for sale			-				-				-				464				466
FHLB stock			3,049				3,071				3,363				3,477				3,583
Checking accounts			305,340				315,027				299,873				292,631				273,274
Savings accounts			328,311				326,863				320,604				308,028				299,306
Certificate of deposit accounts			122,235				129,738				136,311				151,085				153,356
Total Deposits			755,886				771,628				756,788				751,744				725,936
Advances			61,858				62,101				67,745				66,682				77,558
Total stockholders' equity			84,839				83,112				82,031				81,254				80,702

 

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M. Shane Michalak

Senior Vice President /CFO

(215-256-8828)

Source: Harleysville Financial Corporation

FAQ

What is the dividend declared by Harleysville Financial Corporation for 2022?

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

What was the net income for Harleysville Financial Corporation for the fiscal year 2022?

The net income for the fiscal year 2022 was $8.79 million.

What is the EPS for Harleysville Financial Corporation for the fourth quarter of 2022?

The earnings per share (EPS) for the fourth quarter of 2022 was $0.77.

How did the total assets of Harleysville Financial Corporation change year-over-year?

Total assets increased to $912.1 million from $892.6 million year-over-year.

When will the declared dividend be payable to shareholders?

The declared dividend will be payable on November 16, 2022.