Harleysville Financial Corporation Announces Quarterly Earnings and a 3.3% Increase of the Regular Cash Dividend for the First Fiscal Quarter 2024

Business Wire
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HARLEYSVILLE, Pa., January 24, 2024--(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. This represents an increase of 3.3% or $.01 per share from the previous dividend. The cash dividend will be payable on February 21, 2024 to stockholders of record on February 7, 2024.

Net income for the quarter ended December 31, 2023 was $2,510,000 or $.69 per diluted share compared to $3,331,000 or $.89 per diluted share for the same quarter last year.

President and Chief Executive Officer, Brendan J. McGill stated, "The banking industry continues to adjust to the challenges from the current economic conditions and the elevated interest rate environment. The rapid repricing of deposits and borrowings, and slower repricing of loans has resulted in net interest margin compression. Despite these challenges we are pleased to report solid financial results for the first quarter. In addition, we know how important our dividend is to our stockholders and we are pleased to create additional value by increasing the cash dividend to $.31 per share. We will continue to navigate this environment adhering to our fundamental operating principles of maintaining prudent underwriting standards, investing in high credit quality assets, controlling our operating expenses, and practicing sound capital management."

The Company’s assets totaled $853.3 million compared to $877.5 million a year ago, and stockholders’ tangible book value increased to $23.05 per share from $22.27 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 December 31, 2023

(Dollars in thousands except per share data)

(Unaudited)

 

Three Months Ended:

 

 

Selected Consolidated Earnings Data

 

Dec 31,

2023

 

Sep 30,

2023

 

June 30,

2023

 

Mar 31,

2023

 

Dec 31,

2022

Total interest income

 

$

9,176

$

8,728

 

$

8,395

$

8,473

$

8,636

Total interest expense

 

 

2,552

 

 

1,664

 

 

874

 

 

701

 

 

637

 

 

 

Net Interest Income

 

 

6,624

 

 

7,064

 

 

7,521

 

 

7,772

 

 

7,999

 

Provision for loan losses

 

 

8

 

 

(595

)

 

146

 

 

220

 

 

229

 

Net Interest Income after Provision for Loan Losses

 

 

6,616

 

 

7,659

 

 

7,375

 

 

7,552

 

 

7,770

 

 

 

Bank owned life insurance

 

 

102

 

 

101

 

 

97

 

 

98

 

 

100

 

Other income

 

 

580

 

 

617

 

 

593

 

 

555

 

 

544

 

Total other expenses

 

 

3,971

 

 

4,317

 

 

4,325

 

 

4,114

 

 

3,933

 

 

 

Income before income taxes

 

 

3,327

 

 

4,060

 

 

3,740

 

 

4,091

 

 

4,481

 

Income tax expense

 

 

817

 

 

1,042

 

 

939

 

 

1,018

 

 

1,150

 

 

 

Net Income

 

$

2,510

 

$

3,018

 

$

2,801

 

$

3,073

 

$

3,331

 

 

 

 

 

Per Common Share Data

 

Basic earnings

 

$

0.69

 

$

0.82

 

$

0.76

 

$

0.83

 

$

0.90

 

Diluted earnings

 

$

0.69

 

$

0.82

 

$

0.76

 

$

0.82

 

$

0.89

 

Dividends

 

$

0.30

 

$

0.30

 

$

0.30

 

$

0.30

 

$

0.29

 

Special Dividend

 

$

1.20

 

$

-

 

$

-

 

$

-

 

$

1.16

 

Tangible book value

 

$

23.05

 

$

23.76

 

$

23.26

 

$

22.79

 

$

22.27

 

Shares outstanding

 

 

3,646,269

 

 

3,670,488

 

 

3,663,905

 

 

3,708,367

 

 

3,721,269

 

Average shares outstanding - basic

 

 

3,643,746

 

 

3,661,248

 

 

3,688,845

 

 

3,715,772

 

 

3,715,838

 

Average shares outstanding - diluted

 

 

3,652,493

 

 

3,674,442

 

 

3,706,597

 

 

3,740,421

 

 

3,743,724

 

Three Months Ended:

Other Selected Consolidated Data

Dec 31,

2023

 

Sep 30,

2023

 

June 30,

2023

 

Mar 31,

2023

 

Dec 31,

2022

Return on average assets

 

1.18

%

 

1.44

%

 

1.35

%

 

1.44

%

 

1.49

%

Return on average equity

 

11.79

%

 

14.07

%

 

13.24

%

 

14.73

%

 

15.97

%

Net interest rate spread

 

2.83

%

 

3.20

%

 

3.58

%

 

3.62

%

 

3.57

%

Net yield on interest earning assets

 

3.19

%

 

3.45

%

 

3.71

%

 

3.72

%

 

3.65

%

Operating expenses to average assets

 

1.87

%

 

2.06

%

 

2.09

%

 

1.93

%

 

1.76

%

Efficiency ratio

 

54.35

%

 

55.47

%

 

52.67

%

 

48.83

%

 

45.51

%

Ratio of non-performing loans to total assets at end of period

 

0.28

%

 

0.31

%

 

0.28

%

 

0.24

%

 

0.28

%

Loan loss reserve to total loans, net

 

0.71

%

 

0.77

%

 

0.89

%

 

0.91

%

 

0.88

%

Stockholders' equity to assets

 

9.85

%

 

10.35

%

 

10.27

%

 

10.03

%

 

9.45

%

 

 

Selected Consolidated Financial Data

Dec 31,

2023

 

Sep 30,

2023

 

June 30,

2023

 

Mar 31,

2023

 

Dec 31,

2022

Total assets

$

853,315

 

$

842,274

 

$

829,933

 

$

842,882

 

$

877,525

 

Cash & investment securities

 

23,626

 

 

22,168

 

 

25,623

 

 

57,163

 

 

94,330

 

Mortgage-backed securities

 

142,677

 

 

147,821

 

 

153,205

 

 

158,731

 

 

163,968

 

Total Investments

 

166,303

 

 

169,989

 

 

178,828

 

 

215,894

 

 

258,298

 

Consumer Loans receivable

 

325,654

 

 

318,349

 

 

305,780

 

 

290,509

 

 

288,912

 

Commercial Loans receivable

 

327,093

 

 

320,384

 

 

314,756

 

 

306,636

 

 

300,109

 

Loan loss reserve

 

(4,663

)

 

(4,919

)

 

(5,525

)

 

(5,408

)

 

(5,203

)

Total Loans receivable net

 

648,084

 

 

633,814

 

 

615,011

 

 

591,737

 

 

583,818

 

FHLB stock

 

5,550

 

 

5,144

 

 

3,024

 

 

2,234

 

 

2,601

 

Checking accounts

 

266,353

 

 

272,835

 

 

286,725

 

 

294,421

 

 

299,974

 

Savings accounts

 

239,496

 

 

257,246

 

 

282,425

 

 

306,226

 

 

318,718

 

Certificate of deposit accounts

 

140,194

 

 

117,687

 

 

110,898

 

 

109,453

 

 

114,913

 

Total Deposits

 

646,043

 

 

647,768

 

 

680,048

 

 

710,100

 

 

733,605

 

Advances

 

113,430

 

 

98,045

 

 

53,245

 

 

38,363

 

 

49,624

 

Total stockholders' equity

 

84,039

 

 

87,213

 

 

85,212

 

 

84,531

 

 

82,884

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240124386443/en/

Contacts

M. Shane Michalak
Senior Vice President/CFO
215-256-8828

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