Harleysville Financial Corporation Announces Record Quarterly Earnings and a 3.5% Increase of the Regular Cash Dividend for the First Fiscal Quarter 2023

·5 min read

HARLEYSVILLE, Pa., January 25, 2023--(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. This represents an increase of 3.5% or $.01 per share from the previous dividend. The cash dividend will be payable on February 22, 2023 to stockholders of record on February 8, 2023.

Net income for the quarter ended December 31, 2022 was $3,331,000 or $.89 per diluted share compared to $1,856,000 or $.49 per diluted share for the same quarter last year.

President and Chief Executive Officer Brendan J. McGill stated, "We are pleased to report strong financial results of the first quarter. Net Income of $3,331,000 is a record quarter for the Bank. We benefited by being asset sensitive in a rising interest rate environment. We believe our balance sheet is strong and we are well capitalized. Our positive financial results include loan growth, solid asset quality, and improvement in our efficiency ratio and interest rate spread. We know how important our dividend is to our stockholders and we are pleased to create additional value by increasing the cash dividend to $.30 per share."

The Company’s assets totaled $877.5 million compared to $908.9 million a year ago, and stockholders’ tangible book value increased to $22.27 per share from $21.90 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, 2022

(Dollars in thousands except per share data)

(Unaudited)

Three Months Ended:

Selected Consolidated Earnings Data

Dec 31,
2022

Sept 30,
2022

Jun 30,
2022

Mar 31,
2022

Dec 31,
2021

Total interest income

$

8,636

$

7,991

$

6,677

$

6,181

$

6,466

Total interest expense

637

667

699

834

957

Net Interest Income

7,999

7,324

5,978

5,347

5,509

Provision for loan losses

229

150

70

-

60

Net Interest Income after Provision for Loan Losses

7,770

7,174

5,908

5,347

5,449

Gain on sales of loans

-

-

-

4

17

Bank owned life insurance

100

98

96

97

98

Other income

544

649

669

609

656

Total other expenses

3,933

4,094

3,877

3,727

3,676

Income before income taxes

4,481

3,827

2,796

2,330

2,544

Income tax expense

1,150

935

580

503

689

Net Income

$

3,331

$

2,892

$

2,216

$

1,827

$

1,855

Per Common Share Data

Basic earnings

$

0.90

$

0.78

$

0.60

$

0.49

$

0.50

Diluted earnings

$

0.89

$

0.77

$

0.59

$

0.49

$

0.49

Dividends

$

0.29

$

0.29

$

0.29

$

0.29

$

0.28

Special Dividend

$

1.16

$

-

$

-

$

-

$

-

Tangible book value

$

22.27

$

22.81

$

22.33

$

22.04

$

21.90

Shares outstanding

3,721,269

3,719,141

3,721,332

3,721,936

3,710,135

Average shares outstanding - basic

3,715,838

3,720,147

3,721,352

3,714,270

3,717,096

Average shares outstanding - diluted

3,743,724

3,751,155

3,758,018

3,757,258

3,759,512

Three Months Ended:

Other Selected Consolidated Data

Dec 31,
2022

Sept 30,
2022

Jun 30,
2022

Mar 31,
2022

Dec 31,
2021

Return on average assets

1.49

%

1.25

%

0.96

%

0.80

%

0.82

%

Return on average equity

15.97

%

13.82

%

10.77

%

8.98

%

9.19

%

Net interest rate spread

3.57

%

3.16

%

2.56

%

2.28

%

2.37

%

Net yield on interest earning assets

3.65

%

3.24

%

2.64

%

2.38

%

2.49

%

Operating expenses to average assets

1.76

%

1.78

%

1.68

%

1.63

%

1.63

%

Efficiency ratio

45.51

%

50.72

%

57.49

%

61.58

%

58.69

%

Ratio of non-performing loans to total

assets at end of period

0.28

%

0.26

%

0.47

%

0.78

%

0.79

%

Loan loss reserve to total loans, net

0.88

%

0.89

%

0.84

%

0.91

%

0.97

%

Stockholders' equity to assets

9.45

%

9.30

%

8.95

%

8.94

%

8.94

%

Selected Consolidated Financial Data

Dec 31,
2022

Sept 30,
2022

Jun 30,
2022

Mar 31,
2022

Dec 31,
2021

Total assets

$

877,525

$

912,127

$

928,738

$

917,612

$

908,922

Cash & investment securities

94,330

149,231

197,572

224,157

248,696

Mortgage-backed securities

163,968

165,008

143,506

119,837

93,985

Total Investments

258,298

314,239

341,078

343,994

342,681

Consumer Loans receivable

288,912

275,594

274,541

275,158

279,807

Commercial Loans receivable

300,109

291,537

282,216

267,248

254,490

SBA Paycheck Protection Program (PPP)

-

-

-

-

694

Loan loss reserve

(5,203

)

(5,021

)

(4,681

)

(4,930

)

(5,199

)

Total Loans receivable net

583,818

562,110

552,076

537,476

529,792

Total Loans held for sale

-

-

-

-

464

FHLB stock

2,601

3,049

3,071

3,363

3,477

Checking accounts

299,974

305,340

315,027

299,873

292,631

Savings accounts

318,718

328,311

326,863

320,604

308,028

Certificate of deposit accounts

114,913

122,235

129,738

136,311

151,085

Total Deposits

733,605

755,886

771,628

756,788

751,744

Advances

49,624

61,858

62,101

67,745

66,682

Total stockholders' equity

82,884

84,839

83,112

82,031

81,254

View source version on businesswire.com: https://www.businesswire.com/news/home/20230125005639/en/

Contacts

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