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

Jan 25, 2023 11:56 am
HARLEYSVILLE, Pa. -- 

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

 

 

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