Harleysville Financial Corporation Announces Regular Cash Dividend and Second Quarter Earnings for Fiscal Year 2021

Harleysville Financial Corporation (OTCQX:HARL) reported today that the Company’s board of directors declared a regular quarterly cash dividend of $.28 per share on the Company’s common stock. The cash dividend will be payable on May 19, 2021 to stockholders of record on May 5, 2021.

Net income for the second quarter was $2,054,000 or $.54 per diluted share compared to $1,800,000 or $.47 per diluted share for the same quarter last year. Net income for the quarter ended March 31, 2021 included SBA Paycheck Protection Program (PPP) fee income totaling $452,000 or $.12 per diluted share for the quarter ended.

Net income for the six months ended March 31, 2021 amounted to $4,156,000 or $1.10 per diluted share compared to $3,706,000 or $.97 per diluted share for the same six-month period a year ago. Net income for the six months ended March 31, 2021 included SBA Paycheck Protection Program (PPP) fee income totaling $770,000 or $.20 per diluted share for the six months ended.

Brendan J. McGill, President and Chief Executive Officer of the Company, stated, “Despite a challenging operating environment brought on by the COVID-19 pandemic and a continued low interest rate environment, we were able to have a strong second quarter and six months. I am extremely proud of the Harleysville team. In addition to recording strong earnings, we were able to provide support to our communities through the SBA’s Paycheck Protection Programs (PPP), guiding our business customers through the application, funding and forgiveness process.

As we continue to navigate through the COVID-19 environment, the well-being of our customers, team members, stockholders and the communities we serve remains at the forefront. Our balance sheet is strong and we are well capitalized; this will allow us to continue to support the borrowing needs of individuals and businesses in our communities.”

The Company’s assets totaled $904.5 million compared to $790.4 million a year ago. Stockholders’ tangible book value increased 4.5% to $21.50 per share from $20.57 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, 2021
(Dollars in thousands except per share data)		Year-To-Date
(Unaudited)		Six Months Ended:								Three Months Ended:
Selected Consolidated Earnings Data		Mar 31, 2021				Mar 31, 2020				Mar 31, 2021				Dec 31, 2020				Sept 30, 2020				Jun 30, 2020				Mar 31, 2020
Total interest income		$	14,140			$	15,248			$	6,980			$	7,160			$	7,156			$	7,216			$	7,536
Total interest expense			2,579				3,613				1,239				1,340				1,510				1,561				1,749
Net Interest Income			11,561				11,635				5,741				5,820				5,646				5,655				5,787
Provision for loan losses			190				304				95				95				154				353				114
Net Interest Income after Provision for Loan Losses			11,371				11,331				5,646				5,725				5,492				5,302				5,673
Gain on sales of loans			162				-				96				66				-				-				-
Bank owned life insurance			199				200				99				100				100				98				99
Other income			1,249				1,112				612				637				567				455				534
Total other expenses			7,300				7,741				3,706				3,594				3,847				3,700				3,910
Income before income taxes			5,681				4,902				2,747				2,934				2,312				2,155				2,396
Income tax expense			1,525				1,196				693				832				518				544				596
Net Income		$	4,156			$	3,706			$	2,054			$	2,102			$	1,794			$	1,611			$	1,800
Per Common Share Data
Basic earnings		$	1.11			$	0.98			$	0.55			$	0.56			$	0.48			$	0.43			$	0.48
Diluted earnings		$	1.10			$	0.97			$	0.54			$	0.56			$	0.48			$	0.43			$	0.47
Dividends		$	0.55			$	0.52			$	0.28			$	0.27			$	0.27			$	0.27			$	0.27
Tangible book value		$	21.50			$	20.57			$	21.50			$	21.23			$	20.96			$	20.76			$	20.57
Shares outstanding			3,743,203				3,742,933				3,743,203				3,745,058				3,752,221				3,747,052				3,742,933
Average shares outstanding - basic			3,750,638				3,772,526				3,748,385				3,752,787				3,749,350				3,744,957				3,778,093
Average shares outstanding - diluted			3,777,646				3,824,553				3,780,590				3,776,067				3,775,775				3,775,593				3,827,541
		Year-To-Date
		Six Months Ended:								Three Months Ended:
Other Selected Consolidated Data		Mar 31, 2021				Mar 31, 2020				Mar 31, 2021				Dec 31, 2020				Sept 30, 2020				Jun 30, 2020				Mar 31, 2020
Return on average assets			0.95	%			0.94	%			0.93	%			0.98	%			0.83	%			0.78	%			0.91	%
Return on average equity			10.47	%			9.64	%			10.29	%			10.65	%			9.21	%			8.35	%			9.33	%
Net interest rate spread			2.55	%			2.84	%			2.49	%			2.61	%			2.52	%			2.63	%			2.82	%
Net yield on interest earning assets			2.70	%			3.03	%			2.64	%			2.76	%			2.69	%			2.80	%			3.01	%
Operating expenses to average assets			1.67	%			1.97	%			1.67	%			1.67	%			1.79	%			1.79	%			1.98	%
Efficiency ratio			56.12	%			59.79	%			57.44	%			54.82	%			60.94	%			59.60	%			60.91	%
Ratio of non-performing loans to total
assets at end of period			0.82	%			0.89	%			0.82	%			0.89	%			0.88	%			0.85	%			0.89	%
Loan loss reserve to total loans, net			0.92	%			0.81	%			0.92	%			0.87	%			0.87	%			0.83	%			0.81	%
Stockholders' equity to assets			8.90	%			9.74	%			8.90	%			9.11	%			9.20	%			9.13	%			9.74	%
Selected Consolidated Financial Data		Mar 31, 2021				Dec 31, 2020				Sept 30, 2020				Jun 30, 2020				Mar 31, 2020
Total assets		$	904,515			$	873,410			$	854,876			$	851,821			$	790,447
Cash & investment securities			220,822				170,640				127,951				104,934				56,088
Mortgage-backed securities			71,683				70,895				81,851				93,970				105,016
Total Investments			292,505				241,535				209,802				198,904				161,104
Consumer Loans receivable			316,840				339,951				358,472				379,205				391,542
Commercial Loans receivable			262,177				258,898				253,698				240,485				204,489
Loan loss reserve			(5,320	)			(5,235	)			(5,308	)			(5,167	)			(4,820	)
Total Loans receivable net			573,697				593,614				606,862				614,523				591,211
Total Loans held for sale			939				720				-				-				-
FHLB stock			4,281				4,310				4,463				4,692				4,699
Checking accounts			270,878				257,227				231,068				226,921				193,383
Savings accounts			281,350				256,721				252,117				242,820				220,734
Certificate of deposit accounts			165,310				168,577				174,545				181,489				183,674
Total Deposits			717,538				682,525				657,730				651,230				597,791
Advances			95,043				100,173				109,684				109,781				104,804
Total stockholders' equity			80,467				79,524				78,631				77,780				77,007

 

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