Harleysville Financial Corporation Announces Regular Cash Dividend and Third Quarter Earnings for Fiscal Year 2022

Rhea-AI Summary

Harleysville Financial Corporation (OTCQX:HARL) declared a quarterly cash dividend of $0.29 per share, payable on August 17, 2022. The company's Q3 net income reached $2,216,000 ($0.59 per diluted share), up from $1,582,000 ($0.42) year-over-year. Year-to-date net income for the nine months ending June 30, 2022, was $5,898,000 ($1.57 per diluted share), slightly higher than $5,738,000 ($1.52) in the same period last year. Total assets rose to $928.7 million, a 2.2% increase from $904.7 million a year ago. The company's tangible book value improved to $22.33 per share, reflecting a 3.3% increase.

Positive

• Quarterly net income increased 39.9% to $2,216,000.
• Year-to-date net income grew to $5,898,000, reflecting a year-over-year increase.
• Tangible book value increased 3.3% to $22.33 per share.
• Total assets rose to $928.7 million, indicating strong growth.

Negative

• Q3 included a significant decline in PPP fee income from $239,000 last year to a lower amount this 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 $.29 per share on the Company’s common stock. The cash dividend will be payable on August 17, 2022 to stockholders of record on August 3, 2022.

Net income for the third quarter was $2,216,000 or $.59 per diluted share compared to $1,582,000 or $.42 per diluted share for the same quarter last year. Net income for the quarter ended June 30, 2021 included SBA Paycheck Protection Program (PPP) fee income totaling $239,000 or $.06 per diluted share.

Net income for the nine months ended June 30, 2022 amounted to $5,898,000 or $1.57 per diluted share compared to $5,738,000 or $1.52 per diluted share for the same nine-month period a year ago. Net income for the nine months ended June 30, 2022 and 2021 included SBA Paycheck Protection Program (PPP) fee income totaling $313,000 and $1,009,000 or $.08 and $.27 per diluted share for the six months ended, respectively.

Brendan J. McGill, President, and Chief Executive Officer of the Company, stated, “We were able to benefit from the rising rate environment and are pleased with our financial results for the quarter and nine months ended. Asset quality, liquidity and capital levels remain strong, and we feel our balance sheet is positioned to continue to take advantage of the rising rate environment. The Bank continues to grow loan originations, which we believe will help expand the net interest margin as interest rates continue to increase, while maintaining our asset quality and expense management.”

The Company’s assets totaled $928.7 million compared to $904.7 million a year ago. Stockholders’ tangible book value increased 3.3% to $22.33 per share from $21.61 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, 2022
(Dollars in thousands except per share data)		Year-To-Date
(Unaudited)		Nine Months Ended:								Three Months Ended:
Selected Consolidated Earnings Data		Jun 30, 2022				Jun 30, 2021				Jun 30, 2022				Mar 31, 2022				Dec 31, 2021				Sept 30, 2021				Jun 30, 2021
Total interest income		$	19,324			$	20,768			$	6,677			$	6,181			$	6,466			$	6,555			$	6,628
Total interest expense			2,490				3,766				699				834				957				1,067				1,187
Net Interest Income			16,834				17,002				5,978				5,347				5,509				5,488				5,441
Provision for loan losses			130				295				70				-				60				90				105
Net Interest Income after Provision for Loan Losses			16,704				16,707				5,908				5,347				5,449				5,398				5,336
Gain on sales of loans			21				191				-				4				17				61				29
Bank owned life insurance			291				294				96				97				98				99				95
Other income			1,934				1,852				669				609				656				679				603
Total other expenses			11,280				11,228				3,877				3,727				3,676				4,203				3,928
Income before income taxes			7,670				7,816				2,796				2,330				2,544				2,034				2,135
Income tax expense			1,772				2,078				580				503				689				488				553
Net Income		$	5,898			$	5,738			$	2,216			$	1,827			$	1,855			$	1,546			$	1,582
Per Common Share Data
Basic earnings		$	1.59			$	1.53			$	0.60			$	0.49			$	0.50			$	0.41			$	0.42
Diluted earnings		$	1.57			$	1.52			$	0.59			$	0.49			$	0.49			$	0.41			$	0.42
Dividends		$	0.86			$	0.83			$	0.29			$	0.29			$	0.28			$	0.28			$	0.28
Tangible book value		$	22.33			$	21.61			$	22.33			$	22.04			$	21.90			$	21.69			$	21.61
Shares outstanding			3,721,332				3,741,307				3,721,332				3,721,936				3,710,135				3,721,038				3,741,307
Average shares outstanding - basic			3,717,555				3,748,527				3,721,352				3,714,270				3,717,096				3,732,812				3,744,305
Average shares outstanding - diluted			3,757,711				3,781,163				3,758,018				3,757,258				3,759,512				3,776,160				3,788,028
		Year-To-Date
		Nine Months Ended:								Three Months Ended:
Other Selected Consolidated Data		Jun 30, 2022				Jun 30, 2021				Jun 30, 2022				Mar 31, 2022				Dec 31, 2021				Sept 30, 2021				Jun 30, 2021
Return on average assets			0.86	%			0.87	%			0.96	%			0.80	%			0.82	%			0.68	%			0.69	%
Return on average equity			9.65	%			9.60	%			10.77	%			8.98	%			9.19	%			7.66	%			7.87	%
Net interest rate spread			2.40	%			2.46	%			2.56	%			2.28	%			2.37	%			2.34	%			2.29	%
Net yield on interest earning assets			2.50	%			2.61	%			2.64	%			2.38	%			2.49	%			2.48	%			2.44	%
Operating expenses to average assets			1.65	%			1.69	%			1.68	%			1.63	%			1.63	%			1.86	%			1.72	%
Efficiency ratio			59.19	%			58.64	%			57.49	%			61.58	%			58.69	%			67.08	%			63.98	%
Ratio of non-performing loans to total
assets at end of period			0.47	%			0.84	%			0.47	%			0.78	%			0.79	%			0.84	%			0.84	%
Loan loss reserve to total loans, net			0.84	%			0.95	%			0.84	%			0.91	%			0.97	%			1.00	%			0.95	%
Stockholders' equity to assets			8.95	%			8.94	%			8.95	%			8.94	%			8.94	%			9.04	%			8.94	%
Selected Consolidated Financial Data		Jun 30, 2022				Mar 31, 2022				Dec 31, 2021				Sept 30, 2021				Jun 30, 2021
Total assets		$	928,738			$	917,612			$	908,922			$	892,639			$	904,670
Cash & investment securities			197,572				224,157				248,696				227,857				225,490
Mortgage-backed securities			143,506				119,837				93,985				83,412				76,177
Total Investments			341,078				343,994				342,681				311,269				301,667
Consumer Loans receivable			274,541				275,158				279,807				291,817				303,367
Commercial Loans receivable			282,216				267,248				254,490				250,627				254,856
SBA Paycheck Protection Program (PPP)			-				-				694				7,782				13,069
Loan loss reserve			(4,681	)			(4,930	)			(5,199	)			(5,520	)			(5,422	)
Total Loans receivable net			552,076				537,476				529,792				544,706				565,870
Total Loans held for sale			-				-				464				466				192
FHLB stock			3,071				3,363				3,477				3,583				3,955
Checking accounts			315,027				299,873				292,631				273,274				269,246
Savings accounts			326,863				320,604				308,028				299,306				293,948
Certificate of deposit accounts			129,738				136,311				151,085				153,356				159,271
Total Deposits			771,628				756,788				751,744				725,936				722,465
Advances			62,101				67,745				66,682				77,558				89,357
Total stockholders' equity			83,112				82,031				81,254				80,702				80,845

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220720005726/en/

M. Shane Michalak

Senior Vice President/CFO

215-256-8828

Source: Harleysville Financial Corporation

FAQ

What was Harleysville Financial Corporation's Q3 net income for 2022?

The Q3 net income for 2022 was $2,216,000 or $0.59 per diluted share.

When will the cash dividend for HARL be payable?

The cash dividend of $0.29 per share will be payable on August 17, 2022.

How has the tangible book value changed for HARL?

The tangible book value increased by 3.3% to $22.33 per share.

What were the total assets of Harleysville Financial Corporation?

Total assets amounted to $928.7 million.

How does the net income for the nine months ending June 30, 2022 compare to the previous year?

Net income for the nine months ended June 30, 2022, was $5,898,000 compared to $5,738,000 for the same period last year.