Harleysville Financial Corporation Announces Record Quarterly Earnings and a 3.5% Increase of the Regular Cash Dividend for the First Fiscal Quarter 2023

Rhea-AI Summary

Harleysville Financial Corporation (OTCQX:HARL) has declared a quarterly cash dividend of $.30 per share, marking a 3.5% increase from the previous dividend. The dividend is payable on February 22, 2023, to stockholders of record on February 8, 2023. For the quarter ending December 31, 2022, net income reached $3,331,000 or $.89 per diluted share, a significant rise compared to $1,856,000 or $.49 from the same quarter last year. The company emphasizes strong loan growth, solid asset quality, and a robust balance sheet.

Positive

• Quarterly dividend increased by 3.5% to $.30 per share.
• Record net income of $3,331,000 for Q4 2022, up from $1,856,000 year-over-year.
• Improvement in efficiency ratio and interest rate spread.

Negative

• Total assets declined to $877.5 million from $908.9 million year-over-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 $.30 per share on the Company’s common stock. This represents an increase of 3.5% or $.01 per share from the previous dividend. The cash dividend will be payable on February 22, 2023 to stockholders of record on February 8, 2023.

Net income for the quarter ended December 31, 2022 was $3,331,000 or $.89 per diluted share compared to $1,856,000 or $.49 per diluted share for the same quarter last year.

President and Chief Executive Officer Brendan J. McGill stated, “We are pleased to report strong financial results of the first quarter. Net Income of $3,331,000 is a record quarter for the Bank. We benefited by being asset sensitive in a rising interest rate environment. We believe our balance sheet is strong and we are well capitalized. Our positive financial results include loan growth, solid asset quality, and improvement in our efficiency ratio and interest rate spread. We know how important our dividend is to our stockholders and we are pleased to create additional value by increasing the cash dividend to $.30 per share.”

The Company’s assets totaled $877.5 million compared to $908.9 million a year ago, and stockholders’ tangible book value increased to $22.27 per share from $21.90 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, 2022
(Dollars in thousands except per share data)
(Unaudited)		Three Months Ended:
Selected Consolidated Earnings Data		Dec 31, 2022				Sept 30, 2022				Jun 30, 2022				Mar 31, 2022				Dec 31, 2021
Total interest income		$	8,636			$	7,991			$	6,677			$	6,181			$	6,466
Total interest expense			637				667				699				834				957
Net Interest Income			7,999				7,324				5,978				5,347				5,509
Provision for loan losses			229				150				70				-				60
Net Interest Income after Provision for Loan Losses			7,770				7,174				5,908				5,347				5,449
Gain on sales of loans			-				-				-				4				17
Bank owned life insurance			100				98				96				97				98
Other income			544				649				669				609				656
Total other expenses			3,933				4,094				3,877				3,727				3,676
Income before income taxes			4,481				3,827				2,796				2,330				2,544
Income tax expense			1,150				935				580				503				689
Net Income		$	3,331			$	2,892			$	2,216			$	1,827			$	1,855
Per Common Share Data
Basic earnings		$	0.90			$	0.78			$	0.60			$	0.49			$	0.50
Diluted earnings		$	0.89			$	0.77			$	0.59			$	0.49			$	0.49
Dividends		$	0.29			$	0.29			$	0.29			$	0.29			$	0.28
Special Dividend		$	1.16			$	-			$	-			$	-			$	-
Tangible book value		$	22.27			$	22.81			$	22.33			$	22.04			$	21.90
Shares outstanding			3,721,269				3,719,141				3,721,332				3,721,936				3,710,135
Average shares outstanding - basic			3,715,838				3,720,147				3,721,352				3,714,270				3,717,096
Average shares outstanding - diluted			3,743,724				3,751,155				3,758,018				3,757,258				3,759,512
		Three Months Ended:
Other Selected Consolidated Data		Dec 31, 2022				Sept 30, 2022				Jun 30, 2022				Mar 31, 2022				Dec 31, 2021
Return on average assets			1.49	%			1.25	%			0.96	%			0.80	%			0.82	%
Return on average equity			15.97	%			13.82	%			10.77	%			8.98	%			9.19	%
Net interest rate spread			3.57	%			3.16	%			2.56	%			2.28	%			2.37	%
Net yield on interest earning assets			3.65	%			3.24	%			2.64	%			2.38	%			2.49	%
Operating expenses to average assets			1.76	%			1.78	%			1.68	%			1.63	%			1.63	%
Efficiency ratio			45.51	%			50.72	%			57.49	%			61.58	%			58.69	%
Ratio of non-performing loans to total
assets at end of period			0.28	%			0.26	%			0.47	%			0.78	%			0.79	%
Loan loss reserve to total loans, net			0.88	%			0.89	%			0.84	%			0.91	%			0.97	%
Stockholders' equity to assets			9.45	%			9.30	%			8.95	%			8.94	%			8.94	%
Selected Consolidated Financial Data		Dec 31, 2022				Sept 30, 2022				Jun 30, 2022				Mar 31, 2022				Dec 31, 2021
Total assets		$	877,525			$	912,127			$	928,738			$	917,612			$	908,922
Cash & investment securities			94,330				149,231				197,572				224,157				248,696
Mortgage-backed securities			163,968				165,008				143,506				119,837				93,985
Total Investments			258,298				314,239				341,078				343,994				342,681
Consumer Loans receivable			288,912				275,594				274,541				275,158				279,807
Commercial Loans receivable			300,109				291,537				282,216				267,248				254,490
SBA Paycheck Protection Program (PPP)			-				-				-				-				694
Loan loss reserve			(5,203	)			(5,021	)			(4,681	)			(4,930	)			(5,199	)
Total Loans receivable net			583,818				562,110				552,076				537,476				529,792
Total Loans held for sale			-				-				-				-				464
FHLB stock			2,601				3,049				3,071				3,363				3,477
Checking accounts			299,974				305,340				315,027				299,873				292,631
Savings accounts			318,718				328,311				326,863				320,604				308,028
Certificate of deposit accounts			114,913				122,235				129,738				136,311				151,085
Total Deposits			733,605				755,886				771,628				756,788				751,744
Advances			49,624				61,858				62,101				67,745				66,682
Total stockholders' equity			82,884				84,839				83,112				82,031				81,254

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230125005639/en/

M. Shane Michalak

Senior Vice President/CFO

215-256-8828

Source: Harleysville Financial Corporation

FAQ

What is the recent dividend declaration by Harleysville Financial Corporation?

Harleysville Financial Corporation declared a quarterly cash dividend of $.30 per share, a 3.5% increase from the previous dividend.

What were the earnings for Harleysville Financial Corporation for the quarter ended December 31, 2022?

The company reported a net income of $3,331,000 or $.89 per diluted share for the quarter ended December 31, 2022.

When is the dividend payable and who qualifies?

The dividend is payable on February 22, 2023, to stockholders of record on February 8, 2023.

How did Harleysville Financial's assets change year-over-year?

Total assets decreased to $877.5 million from $908.9 million year-over-year.