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

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 August 16, 2023 to stockholders of record on August 2, 2023.

Net income for the third quarter was $2,801,000 or $.76 per diluted share compared to $2,216,000 or $.59 per diluted share for the same quarter last year.

Net income for the nine months ended June 30, 2023 amounted to $9,205,000 or $2.47 per diluted share compared to $5,898,000 or $1.57 per diluted share for the same nine-month period a year ago.

“We were able to benefit from the rising rate environment and are pleased with our financial results for the quarter and nine months ended,” stated Brendan J. McGill, President, and Chief Executive Officer of the Company. McGill continued, “Asset quality and capital levels remain strong as we continue to navigate the changing economic and rate environment with discipline, ensuring we remain a competitive and an attractive option to our existing and prospective customers.”

The Company’s assets totaled $829.9 million compared to $928.7 million a year ago. Stockholders’ tangible book value increased 4.2% to $23.26 per share from $22.33 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 June 30, 2023
(Dollars in thousands except per share data)		Year-To-Date
(Unaudited)		Nine Months Ended:								Three Months Ended:
Selected Consolidated Earnings Data		Jun 30, 2023				Jun 30, 2022				June 31, 2023				Mar 31, 2023				Dec 31, 2022				Sept 30, 2022				Jun 30, 2022
Total interest income		$	25,504			$	19,324			$	8,395			$	8,473			$	8,636			$	7,991			$	6,677
Total interest expense			2,212				2,490				874				701				637				667				699
Net Interest Income			23,292				16,834				7,521				7,772				7,999				7,324				5,978
Provision for loan losses			595				130				146				220				229				150				70
Net Interest Income after Provision for Loan Losses			22,697				16,704				7,375				7,552				7,770				7,174				5,908
Gain on sales of loans			-				21				-				-				-				-				-
Bank owned life insurance			295				291				97				98				100				98				96
Other income			1,692				1,934				593				555				544				649				669
Total other expenses			12,372				11,280				4,325				4,114				3,933				4,094				3,877
Income before income taxes			12,312				7,670				3,740				4,091				4,481				3,827				2,796
Income tax expense			3,107				1,772				939				1,018				1,150				935				580
Net Income		$	9,205			$	5,898			$	2,801			$	3,073			$	3,331			$	2,892			$	2,216
Per Common Share Data
Basic earnings		$	2.48			$	1.59			$	0.76			$	0.83			$	0.90			$	0.78			$	0.60
Diluted earnings		$	2.47			$	1.57			$	0.76			$	0.82			$	0.89			$	0.77			$	0.59
Dividends		$	0.89			$	0.86			$	0.30			$	0.30			$	0.29			$	0.29			$	0.29
Special Dividend		$	1.16			$	-			$	-			$	-			$	1.16			$	-			$	-
Tangible book value		$	23.26			$	22.33			$	23.26			$	22.79			$	22.27			$	22.81			$	22.33
Shares outstanding			3,663,905				3,721,332				3,663,905				3,708,367				3,721,269				3,719,141				3,721,332
Average shares outstanding - basic			3,706,846				3,717,555				3,688,845				3,715,772				3,715,838				3,720,147				3,721,352
Average shares outstanding - diluted			3,729,231				3,757,711				3,706,597				3,740,421				3,743,724				3,751,155				3,758,018
		Year-To-Date
		Nine Months Ended:								Three Months Ended:
Other Selected Consolidated Data		Jun 30, 2023				Jun 30, 2022				June 31, 2023				Mar 31, 2023				Dec 31, 2022				Sept 30, 2022				Jun 30, 2022
Return on average assets			1.43	%			0.86	%			1.35	%			1.44	%			1.49	%			1.25	%			0.96	%
Return on average equity			14.65	%			9.65	%			13.24	%			14.73	%			15.97	%			13.82	%			10.77	%
Net interest rate spread			3.59	%			2.40	%			3.58	%			3.62	%			3.57	%			3.16	%			2.56	%
Net yield on interest earning assets			3.69	%			2.50	%			3.71	%			3.72	%			3.65	%			3.24	%			2.64	%
Operating expenses to average assets			1.93	%			1.65	%			2.09	%			1.93	%			1.76	%			1.78	%			1.68	%
Efficiency ratio			48.94	%			59.19	%			52.67	%			48.83	%			45.51	%			50.72	%			57.49	%
Ratio of non-performing loans to total assets at end of period			0.28	%			0.47	%			0.28	%			0.24	%			0.28	%			0.26	%			0.47	%
Loan loss reserve to total loans, net			0.89	%			0.84	%			0.89	%			0.91	%			0.88	%			0.89	%			0.84	%
Stockholders' equity to assets			10.27	%			8.95	%			10.27	%			10.03	%			9.45	%			9.30	%			8.95	%
Selected Consolidated Financial Data		Jun 30, 2023				Mar 31, 2023				Dec 31, 2022				Sept 30, 2022				Jun 30, 2022
Total assets		$	829,933			$	842,882			$	877,525			$	912,127			$	928,738
Cash & investment securities			25,623				57,163				94,330				149,231				197,572
Mortgage-backed securities			153,205				158,731				163,968				165,008				143,506
Total Investments			178,828				215,894				258,298				314,239				341,078
Consumer Loans receivable			305,780				290,509				288,912				275,594				274,541
Commercial Loans receivable			314,756				306,636				300,109				291,537				282,216
Loan loss reserve			(5,525	)			(5,408	)			(5,203	)			(5,021	)			(4,681	)
Total Loans receivable net			615,011				591,737				583,818				562,110				552,076
FHLB stock			3,024				2,234				2,601				3,049				3,071
Checking accounts			286,725				294,421				299,974				305,340				315,027
Savings accounts			282,425				306,226				318,718				328,311				326,863
Certificate of deposit accounts			110,898				109,453				114,913				122,235				129,738
Total Deposits			680,048				710,100				733,605				755,886				771,628
Advances			53,245				38,363				49,624				61,858				62,101
Total stockholders' equity			85,212				84,531				82,884				84,839				83,112

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230719739313/en/

M. Shane Michalak

Senior Vice President/CFO

215-256-8828

Source: Harleysville Financial Corporation