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

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

 

 

Contacts

M. Shane Michalak

Senior Vice President/CFO

215-256-8828

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