Harleysville Financial Corporation Announces Regular Cash Dividend and Third Quarter Earnings for Fiscal Year 2024

Rhea-AI Summary

Harleysville Financial (OTCQX:HARL) has declared a regular quarterly cash dividend of $0.31 per share, payable on August 14, 2024. The company reported net income of $2,186,000 or $0.60 per diluted share for the third quarter of fiscal year 2024, compared to $2,801,000 or $0.76 per diluted share for the same quarter last year. For the nine months ended June 30, 2024, net income was $6,809,000 or $1.87 per diluted share, down from $9,205,000 or $2.47 per diluted share in the previous year.

Despite facing net interest margin compression, the company noted positive commercial and consumer loan growth. Total assets increased to $863.9 million from $829.9 million a year ago, while stockholders' tangible book value rose 1.7% to $23.65 per share. Harleysville Financial maintains strong asset quality and capital levels as it navigates the current economic environment.

Positive

• Declared regular quarterly cash dividend of $0.31 per share
• Commercial and consumer loan growth reported
• Total assets increased to $863.9 million from $829.9 million year-over-year
• Stockholders' tangible book value increased 1.7% to $23.65 per share
• Strong asset quality and capital levels maintained

Negative

• Net income decreased to $2,186,000 from $2,801,000 year-over-year for the third quarter
• Diluted EPS declined to $0.60 from $0.76 year-over-year for the third quarter
• Nine-month net income dropped to $6,809,000 from $9,205,000 year-over-year
• Nine-month diluted EPS decreased to $1.87 from $2.47 year-over-year
• Net interest margin compression impacting financial performance

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 $.31 per share on the Company’s common stock. The cash dividend will be payable on August 14, 2024 to stockholders of record on July 31, 2024.

Net income for the third quarter was $2,186,000 or $.60 per diluted share compared to $2,801,000 or $.76 per diluted share for the same quarter last year.

Net income for the nine months ended June 30, 2024 amounted to $6,809,000 or $1.87 per diluted share compared to $9,205,000 or $2.47 per diluted share for the same nine-month period a year ago.

“We continue to be impacted by the compression of net interest margin, as indicated by the increase in interest expense, however we are pleased with commercial and consumer loan growth,” 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 economic environment with discipline, ensuring we remain a competitive and an attractive option to our existing and prospective customers.”

The Company’s assets totaled $863.9 million compared to $829.9 million a year ago. Stockholders’ tangible book value increased 1.7% to $23.65 per share from $23.26 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, 2024
(Dollars in thousands except per share data)		Year-To-Date
(Unaudited)		Nine Months Ended:								Three Months Ended:
Selected Consolidated Earnings Data		Jun 30, 2024				Jun 30, 2023				June 30, 2024				Mar 31, 2024				Dec 31, 2023				Sep 30, 2023				June 30, 2023
Total interest income		$	27,999			$	25,504			$	9,555			$	9,268			$	9,176			$	8,728			$	8,395
Total interest expense			8,797				2,212				3,261				2,984				2,552				1,664				874
Net Interest Income			19,202				23,292				6,294				6,284				6,624				7,064				7,521
Provision for loan losses			24				595				13				4				8				(595	)			146
Net Interest Income after Provision for Loan Losses			19,178				22,697				6,281				6,280				6,616				7,659				7,375
Bank owned life insurance			301				295				99				100				102				101				97
Other income			1,616				1,692				550				486				580				617				593
Total other expenses			12,309				12,372				4,228				4,110				3,971				4,317				4,325
Income before income taxes			8,786				12,312				2,702				2,756				3,327				4,060				3,740
Income tax expense			1,977				3,107				516				644				817				1,042				939
Net Income		$	6,809			$	9,205			$	2,186			$	2,112			$	2,510			$	3,018			$	2,801
Per Common Share Data
Basic earnings		$	1.87			$	2.48			$	0.60			$	0.58			$	0.69			$	0.82			$	0.76
Diluted earnings		$	1.87			$	2.47			$	0.60			$	0.58			$	0.69			$	0.82			$	0.76
Dividends		$	0.92			$	0.89			$	0.31			$	0.31			$	0.30			$	0.30			$	0.30
Special Dividend		$	1.20			$	1.16			$	-			$	-			$	1.20			$	-			$	-
Tangible book value		$	23.65			$	23.26			$	23.65			$	23.34			$	23.05			$	23.76			$	23.26
Shares outstanding			3,626,559				3,663,905				3,626,559				3,635,367				3,646,269				3,670,488				3,663,905
Average shares outstanding - basic			3,640,164				3,706,846				3,632,261				3,644,446				3,643,746				3,661,248				3,688,845
Average shares outstanding - diluted			3,648,620				3,729,231				3,640,387				3,653,117				3,652,493				3,674,442				3,706,597
		Year-To-Date
		Nine Months Ended:								Three Months Ended:
Other Selected Consolidated Data		Jun 30, 2024				Jun 30, 2023				June 30, 2024				Mar 31, 2024				Dec 31, 2023				Sep 30, 2023				June 30, 2023
Return on average assets			1.07	%			1.43	%			1.02	%			0.99	%			1.18	%			1.44	%			1.35	%
Return on average equity			10.70	%			14.65	%			10.28	%			10.04	%			11.79	%			14.07	%			13.24	%
Net interest rate spread			2.68	%			3.59	%			2.58	%			2.62	%			2.83	%			3.20	%			3.58	%
Net yield on interest earning assets			3.07	%			3.69	%			3.01	%			3.02	%			3.19	%			3.45	%			3.71	%
Operating expenses to average assets			1.93	%			1.93	%			1.98	%			1.93	%			1.87	%			2.06	%			2.09	%
Efficiency ratio			58.28	%			48.94	%			60.89	%			59.82	%			54.35	%			55.47	%			52.67	%
Ratio of non-performing loans to total
assets at end of period			0.20	%			0.28	%			0.20	%			0.21	%			0.28	%			0.31	%			0.28	%
Loan loss reserve to total loans, net			0.69	%			0.89	%			0.69	%			0.71	%			0.71	%			0.77	%			0.89	%
Stockholders' equity to assets			9.93	%			10.27	%			9.93	%			10.01	%			9.85	%			10.35	%			10.27	%
Selected Consolidated Financial Data		Jun 30, 2024				Mar 31, 2024				Dec 31, 2023				Sep 30, 2023				June 30, 2023
Total assets		$	863,899			$	847,416			$	853,315			$	842,274			$	829,933
Cash & investment securities			22,892				20,853				23,626				22,168				25,623
Mortgage-backed securities			132,621				138,072				142,677				147,821				153,205
Total Investments			155,513				158,925				166,303				169,989				178,828
Consumer Loans receivable			335,802				325,483				325,654				318,349				305,780
Commercial Loans receivable			337,872				329,235				327,093				320,384				314,756
Loan loss reserve			(4,668	)			(4,662	)			(4,663	)			(4,919	)			(5,525	)
Total Loans receivable net			669,006				650,056				648,084				633,814				615,011
FHLB stock			5,366				4,813				5,550				5,144				3,024
Checking accounts			255,110				264,294				266,353				272,835				286,725
Savings accounts			223,101				229,208				239,496				257,246				282,425
Certificate of deposit accounts			180,007				166,664				140,194				117,687				110,898
Total Deposits			658,218				660,166				646,043				647,768				680,048
Advances			108,078				92,757				113,430				98,045				53,245
Total stockholders' equity			85,765				84,837				84,039				87,213				85,212

 

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FOR FURTHER INFORMATION

M. Shane Michalak

Senior Vice President/CFO

215-256-8828

Source: Harleysville Financial Corporation

FAQ

What is Harleysville Financial 's (HARL) dividend for Q3 2024?

Harleysville Financial (HARL) declared a regular quarterly cash dividend of $0.31 per share, payable on August 14, 2024, to stockholders of record on July 31, 2024.

How did Harleysville Financial 's (HARL) Q3 2024 earnings compare to the previous year?

Harleysville Financial 's (HARL) net income for Q3 2024 was $2,186,000 or $0.60 per diluted share, compared to $2,801,000 or $0.76 per diluted share for the same quarter last year, showing a decrease in both net income and earnings per share.

What was Harleysville Financial 's (HARL) total asset value as of Q3 2024?

Harleysville Financial 's (HARL) total assets were $863.9 million as of Q3 2024, compared to $829.9 million a year ago, showing an increase in total assets.

How did Harleysville Financial 's (HARL) tangible book value change in Q3 2024?

Harleysville Financial 's (HARL) stockholders' tangible book value increased 1.7% to $23.65 per share in Q3 2024, up from $23.26 a year ago.