Harleysville Financial Corporation Announces Regular Cash Dividend and Second Quarter Earnings for Fiscal Year 2023

Rhea-AI Summary

Harleysville Financial Corporation (OTCQX:HARL) announced a quarterly cash dividend of $0.30 per share, payable on May 17, 2023, to stockholders of record on May 3, 2023. For Q2, net income reached $3,073,000 ($0.82 per diluted share), a significant increase from $1,827,000 ($0.49 per diluted share) in the previous year. For the six months ending March 31, 2023, net income totaled $6,404,000 ($1.71 per diluted share), compared to $3,682,000 ($0.98 per diluted share) in the same period last year. The Company reports a solid balance sheet and strong credit quality, while assets decreased to $842.9 million from $917.6 million a year ago. Tangible book value rose 3.4% to $22.79 per share. CEO Brendan J. McGill emphasized cautious optimism amid economic uncertainty due to inflation control efforts by the Federal Reserve.

Positive

• Net income for Q2 increased by 68% year-over-year.
• Tangible book value rose 3.4% to $22.79 per share.
• The company declared a quarterly cash dividend of $0.30 per share.

Negative

• Total assets decreased to $842.9 million from $917.6 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. The cash dividend will be payable on May 17, 2023 to stockholders of record on May 3, 2023.

Net income for the second quarter was $3,073,000 or $.82 per diluted share compared to $1,827,000 or $.49 per diluted share for the same quarter last year.

Net income for the six months ended March 31, 2023 amounted to $6,404,000 or $1.71 per diluted share compared to $3,682,000 or $0.98 per diluted share for the same six-month period a year ago.

Brendan J. McGill, President and Chief Executive Officer of the Company, stated, “The Company has achieved solid second quarter results. We continue to benefit from a strong balance sheet, being well capitalized and margin expansion, on top of consistent loan growth and strong credit quality.

We will remain watchful with respect to the overall economic climate as the Federal Reserve continues to work to control inflation. We have an experienced team, and we will continue to maintain our prudent underwriting standards, investing in high credit quality assets, controlling our operating expenses, and practicing sound capital management. With this experience, we are confident in our ability to navigate any macroeconomic headwinds we may face.”

The Company’s assets totaled $842.9 million compared to $917.6 million a year ago. Stockholders’ tangible book value increased 3.4% to $22.79 per share from $22.04 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 March 31, 2023
(Dollars in thousands except per share data)		Year-To-Date
(Unaudited)		Six Months Ended:						Three Months Ended:
Selected Consolidated Earnings Data		Mar 31, 2023			Mar 31, 2022			Mar 31, 2023			Dec 31, 2022			Sept 30, 2022			Jun 30, 2022			Mar 31, 2022
Total interest income		$	17,109		$	12,647		$	8,473		$	8,636		$	7,991		$	6,677		$	6,181
Total interest expense			1,338			1,791			701			637			667			699			834
Net Interest Income			15,771			10,856			7,772			7,999			7,324			5,978			5,347
Provision for loan losses			449			60			220			229			150			70			-
Net Interest Income after Provision for Loan Losses			15,322			10,796			7,552			7,770			7,174			5,908			5,347
Gain on sales of loans			-			21			-			-			-			-			4
Bank owned life insurance			198			195			98			100			98			96			97
Other income			1,099			1,265			555			544			649			669			609
Total other expenses			8,047			7,403			4,114			3,933			4,094			3,877			3,727
Income before income taxes			8,572			4,874			4,091			4,481			3,827			2,796			2,330
Income tax expense			2,168			1,192			1,018			1,150			935			580			503
Net Income		$	6,404		$	3,682		$	3,073		$	3,331		$	2,892		$	2,216		$	1,827
Per Common Share Data
Basic earnings		$	1.72		$	0.99		$	0.83		$	0.90		$	0.78		$	0.60		$	0.49
Diluted earnings		$	1.71		$	0.98		$	0.82		$	0.89		$	0.77		$	0.59		$	0.49
Dividends		$	0.59		$	0.57		$	0.30		$	0.29		$	0.29		$	0.29		$	0.29
Special Dividend		$	-		$	-		$	-		$	1.16		$	-		$	-		$	-
Tangible book value		$	22.79		$	22.04		$	22.79		$	22.27		$	22.81		$	22.33		$	22.04
Shares outstanding			3,708,367			3,721,936			3,708,367			3,721,269			3,719,141			3,721,332			3,721,936
Average shares outstanding - basic			3,715,846			3,715,656			3,715,772			3,715,838			3,720,147			3,721,352			3,714,270
Average shares outstanding - diluted			3,742,109			3,757,980			3,740,421			3,743,724			3,751,155			3,758,018			3,757,258

		Year-To-Date
		Six Months Ended:						Three Months Ended:
Other Selected Consolidated Data		Mar 31, 2023			Mar 31, 2022			Mar 31, 2023			Dec 31, 2022			Sept 30, 2022			Jun 30, 2022			Mar 31, 2022
Return on average assets		1.47	%		0.81	%		1.44	%		1.49	%		1.25	%		0.96	%		0.80	%
Return on average equity		15.34	%		9.09	%		14.73	%		15.97	%		13.82	%		10.77	%		8.98	%
Net interest rate spread		3.60	%		2.33	%		3.62	%		3.57	%		3.16	%		2.56	%		2.28	%
Net yield on interest earning assets		3.69	%		2.44	%		3.72	%		3.65	%		3.24	%		2.64	%		2.38	%
Operating expenses to average assets		1.84	%		1.63	%		1.93	%		1.76	%		1.78	%		1.68	%		1.63	%
Efficiency ratio		47.15	%		60.11	%		48.83	%		45.51	%		50.72	%		57.49	%		61.58	%
Ratio of non-performing loans to total assets at end of period		0.24	%		0.78	%		0.24	%		0.28	%		0.26	%		0.47	%		0.78	%
Loan loss reserve to total loans, net		0.91	%		0.91	%		0.91	%		0.88	%		0.89	%		0.84	%		0.91	%
Stockholders' equity to assets		10.03	%		8.94	%		10.03	%		9.45	%		9.30	%		8.95	%		8.94	%

Selected Consolidated Financial Data		Mar 31, 2023				Dec 31, 2022				Sept 30, 2022				Jun 30, 2022				Mar 31, 2022
Total assets		$	842,882			$	877,525			$	912,127			$	928,738			$	917,612
Cash & investment securities			57,163				94,330				149,231				197,572				224,157
Mortgage-backed securities			158,731				163,968				165,008				143,506				119,837
Total Investments			215,894				258,298				314,239				341,078				343,994
Consumer Loans receivable			290,509				288,912				275,594				274,541				275,158
Commercial Loans receivable			306,636				300,109				291,537				282,216				267,248
Loan loss reserve			(5,408	)			(5,203	)			(5,021	)			(4,681	)			(4,930	)
Total Loans receivable net			591,737				583,818				562,110				552,076				537,476
FHLB stock			2,234				2,601				3,049				3,071				3,363
Checking accounts			294,421				299,974				305,340				315,027				299,873
Savings accounts			306,226				318,718				328,311				326,863				320,604
Certificate of deposit accounts			109,453				114,913				122,235				129,738				136,311
Total Deposits			710,100				733,605				755,886				771,628				756,788
Advances			38,363				49,624				61,858				62,101				67,745
Total stockholders' equity			84,531				82,884				84,839				83,112				82,031

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230419005758/en/

M. Shane Michalak

Senior Vice President/CFO

215-256-8828

Source: Harleysville Financial Corporation

FAQ

What are the earnings results for Harleysville Financial Corporation in Q2 2023?

Harleysville Financial Corporation reported net income of $3,073,000, or $0.82 per diluted share, for Q2 2023.

What is the cash dividend declared by HARL?

Harleysville Financial Corporation declared a cash dividend of $0.30 per share, payable on May 17, 2023.

How has Harleysville Financial Corporation's net income changed compared to last year?

Net income for the six months ended March 31, 2023, was $6,404,000, up from $3,682,000 in the same period last year.

What was the company's tangible book value as of the last report?

The tangible book value increased to $22.79 per share, up 3.4% from $22.04 a year ago.