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

Rhea-AI Summary

Harleysville Financial Corporation (OTCQX:HARL) declared a quarterly cash dividend of $.29 per share, payable on May 18, 2022. For Q2, net income was $1,827,000 ($.49 per diluted share), a decrease from $2,054,000 ($.54 per diluted share) in the same quarter last year. For the six months ending March 31, 2022, net income decreased to $3,682,000 ($0.98 per diluted share) from $4,156,000 ($1.10 per diluted share) the previous year. The Company’s assets rose to $917.6 million, while tangible book value increased 2.5% to $22.04 per share, reflecting solid earnings and balance sheet growth despite challenges from margin compression and COVID-19 impacts.

Positive

• Quarterly dividend of $.29 per share announced.
• Net income for Q2 showed solid earnings at $1,827,000.
• Total assets increased to $917.6 million from $904.5 million year-over-year.
• Tangible book value increased 2.5% to $22.04 per share.

Negative

• Net income for Q2 decreased from $2,054,000 to $1,827,000 year-over-year.
• Earnings per share (EPS) fell from $.54 to $.49 for the same period.
• Net income for six months dropped from $4,156,000 to $3,682,000 year-over-year.
• Increased margin compression due to low interest rates.

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 May 18, 2022 to stockholders of record on May 4, 2022.

Net income for the second quarter was $1,827,000 or $.49 per diluted share compared to $2,054,000 or $.54 per diluted share for the same quarter last year. Net income for the quarters ended March 31, 2022 and 2021 included SBA Paycheck Protection Program (PPP) fee income totaling $23,000 and $452,000 or $.01 and $.12 per diluted share for the quarters ended, respectively.

Net income for the six months ended March 31, 2022 amounted to $3,682,000 or $0.98 per diluted share compared to $4,156,000 or $1.10 per diluted share for the same six-month period a year ago. Net income for the six months ended March 31, 2022 and 2021 included SBA Paycheck Protection Program (PPP) fee income totaling $313,000 and $770,000 or $.08 and $.20 per diluted share for the six months ended, respectively.

Brendan J. McGill, President and Chief Executive Officer of the Company, stated, “The Company has achieved solid earnings, balance sheet growth and strong credit quality, while navigating industry wide staffing challenges and margin compression, due to the low interest rate environment and the continued impact of COVID-19. We benefitted from the SBA Paycheck Protection Programs (PPP) through which we provided a total of $37.2 million loans to local small businesses, which have all been repaid or forgiven as of March 31, 2022.

Despite the on-going challenges because of the COVID-19 pandemic and the volatility in the market, we feel our balance sheet is strong and we are well capitalized as we enter a rising interest rate environment. This will allow us to continue to support the borrowing needs of individuals and businesses in our communities.”

The Company’s assets totaled $917.6 million compared to $904.5 million a year ago. Stockholders’ tangible book value increased 2.5% to $22.04 per share from $21.50 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, 2022
(Dollars in thousands except per share data)		Year-To-Date
( Unaudited)		Six Months Ended:								Three Months Ended:
Selected Consolidated Earnings Data		Mar 31, 2022				Mar 31, 2021				Mar 31, 2022				Dec 31, 2021				Sept 30, 2021				Jun 30, 2021				Mar 31, 2021
Total interest income		$	12,647			$	14,140			$	6,181			$	6,466			$	6,555			$	6,628			$	6,980
Total interest expense			1,791				2,579				834				957				1,067				1,187				1,239
Net Interest Income			10,856				11,561				5,347				5,509				5,488				5,441				5,741
Provision for loan losses			60				190				-				60				90				105				95
Net Interest Income after Provision for Loan Losses			10,796				11,371				5,347				5,449				5,398				5,336				5,646
Gain on sales of loans			21				162				4				17				61				29				96
Bank owned life insurance			195				199				97				98				99				95				99
Other income			1,265				1,249				609				656				679				603				612
Total other expenses			7,403				7,300				3,727				3,676				4,203				3,928				3,706
Income before income taxes			4,874				5,681				2,330				2,544				2,034				2,135				2,747
Income tax expense			1,192				1,525				503				689				488				553				693
Net Income		$	3,682			$	4,156			$	1,827			$	1,855			$	1,546			$	1,582			$	2,054
Per Common Share Data
Basic earnings		$	0.99			$	1.11			$	0.49			$	0.50			$	0.41			$	0.42			$	0.55
Diluted earnings		$	0.98			$	1.10			$	0.49			$	0.49			$	0.41			$	0.42			$	0.54
Dividends		$	0.57			$	0.55			$	0.29			$	0.28			$	0.28			$	0.28			$	0.28
Tangible book value		$	22.04			$	21.50			$	22.04			$	21.90			$	21.69			$	21.61			$	21.50
Shares outstanding			3,721,936				3,743,203				3,721,936				3,710,135				3,721,038				3,741,307				3,743,203
Average shares outstanding - basic			3,715,656				3,750,638				3,714,270				3,717,096				3,732,812				3,744,305				3,748,385
Average shares outstanding - diluted			3,757,980				3,777,646				3,757,258				3,759,512				3,776,160				3,788,028				3,780,590
		Year-To-Date
		Six Months Ended:								Three Months Ended:
Other Selected Consolidated Data		Mar 31, 2022				Mar 31, 2021				Mar 31, 2022				Dec 31, 2021				Sept 30, 2021				Jun 30, 2021				Mar 31, 2021
Return on average assets			0.81	%			0.95	%			0.80	%			0.82	%			0.68	%			0.69	%			0.93	%
Return on average equity			9.09	%			10.47	%			8.98	%			9.19	%			7.66	%			7.87	%			10.29	%
Net interest rate spread			2.33	%			2.55	%			2.28	%			2.37	%			2.34	%			2.29	%			2.49	%
Net yield on interest earning assets			2.44	%			2.70	%			2.38	%			2.49	%			2.48	%			2.44	%			2.64	%
Operating expenses to average assets			1.63	%			1.67	%			1.63	%			1.63	%			1.86	%			1.72	%			1.67	%
Efficiency ratio			60.11	%			56.12	%			61.58	%			58.69	%			67.08	%			63.98	%			57.44	%
Ratio of non-performing loans to total assets at end of period			0.78	%			0.82	%			0.78	%			0.79	%			0.84	%			0.84	%			0.82	%
Loan loss reserve to total loans, net			0.91	%			0.92	%			0.91	%			0.97	%			1.00	%			0.95	%			0.92	%
Stockholders' equity to assets			8.94	%			8.90	%			8.94	%			8.94	%			9.04	%			8.94	%			8.90	%
Selected Consolidated Financial Data		Mar 31, 2022				Dec 31, 2021				Sept 30, 2021				Jun 30, 2021				Mar 31, 2021
Total assets		$	917,612			$	908,922			$	892,639			$	904,670			$	904,515
Cash & investment securities			224,157				248,696				227,857				225,490				220,822
Mortgage-backed securities			119,837				93,985				83,412				76,177				71,683
Total Investments			343,994				342,681				311,269				301,667				292,505
Consumer Loans receivable			275,158				279,807				291,817				303,367				316,840
Commercial Loans receivable			267,248				254,490				250,627				254,856				244,148
SBA Paycheck Protection Program (PPP)			-				694				7,782				13,069				18,029
Loan loss reserve			(4,930	)			(5,199	)			(5,520	)			(5,422	)			(5,320	)
Total Loans receivable net			537,476				529,792				544,706				565,870				573,697
Total Loans held for sale			-				464				466				192				939
FHLB stock			3,363				3,477				3,583				3,955				4,281
Checking accounts			299,873				292,631				273,274				269,246				270,878
Savings accounts			320,604				308,028				299,306				293,948				281,350
Certificate of deposit accounts			136,311				151,085				153,356				159,271				165,310
Total Deposits			756,788				751,744				725,936				722,465				717,538
Advances			67,745				66,682				77,558				89,357				95,043
Total stockholders' equity			82,031				81,254				80,702				80,845				80,467

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220420005855/en/

M. Shane Michalak

Senior Vice President/CFO

215-256-8828

Source: Harleysville Financial Corporation

FAQ

What is the latest dividend declared by Harleysville Financial Corporation (HARL)?

Harleysville Financial Corporation declared a quarterly cash dividend of $.29 per share.

What were the Q2 earnings for Harleysville Financial Corporation (HARL)?

Net income for Q2 was $1,827,000, or $.49 per diluted share.

How did Harleysville Financial Corporation's (HARL) earnings compare year-over-year?

Earnings decreased from $2,054,000 ($.54 per diluted share) last year to $1,827,000 ($.49 per diluted share) this year.

What was the tangible book value of Harleysville Financial Corporation (HARL) per share?

The tangible book value increased 2.5% to $22.04 per share.

How have the assets of Harleysville Financial Corporation (HARL) changed over the year?

Total assets increased to $917.6 million compared to $904.5 million a year ago.