Harleysville Financial Corporation Announces Regular Cash Dividend and Second Quarter Earnings for Fiscal Year 2024

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Harleysville Financial (HARL) declares a regular cash dividend of $.31 per share and reports second-quarter earnings for fiscal year 2024. Despite a decrease in net income compared to the previous year, the company remains well-capitalized with strong credit quality and consistent loan growth.

Positive

• The board of directors declared a regular quarterly cash dividend of $.31 per share on the common stock.
• Net income for the second quarter was $2,112,000 or $.58 per diluted share, a decrease from the same quarter last year.
• Net income for the six months ended March 31, 2024, was $4,622,000 or $1.27 per diluted share, down from the previous year.
• The company's assets totaled $847.4 million, slightly higher than the previous year.
• Stockholders' tangible book value increased by 2.4% to $23.34 per share.
• Harleysville Financial is traded on the OTCQX market under the symbol HARL and is the holding company for Harleysville Bank.
• The company continues to maintain prudent underwriting standards, invest in high credit quality assets, control operating expenses, and practice sound capital management.

Negative

• Net income decreased compared to the same periods last year.
• Continued interest margin compression is anticipated due to Federal Reserve actions to control inflation.
• Despite a slight increase in assets, there was a decrease in net income.
• The company faces challenges in navigating the current interest rate environment.

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 $.31 per share on the Company’s common stock. The cash dividend will be payable on May 15, 2024 to stockholders of record on May 1, 2024.

Net income for the second quarter was $2,112,000 or $.58 per diluted share compared to $3,073,000 or $.82 per diluted share for the same quarter last year.

Net income for the six months ended March 31, 2024 amounted to $4,622,000 or $1.27 per diluted share compared to $6,404,000 or $1.71 per diluted share for the same six-month period a year ago.

Brendan J. McGill, President, and Chief Executive Officer of the Company, stated, “Despite the net interest margin compression experienced across the industry this past year, The Company has achieved solid second quarter results. We continue to benefit from a strong balance sheet and being well capitalized, as well as consistent loan growth and strong credit quality.

We anticipate continued interest margin compression through this 2024 fiscal year as the Federal Reserve continues to work to control inflation. I am extremely proud of our experienced team, as we continue to navigate this challenging interest rate environment. We will continue to maintain our prudent underwriting standards, investing in high credit quality assets, controlling our operating expenses, and practicing sound capital management.”

The Company’s assets totaled $847.4 million compared to $842.9 million a year ago. Stockholders’ tangible book value increased 2.4% to $23.34 per share from $22.79 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, 2024
(Dollars in thousands except per share data)		Year-To-Date
( Unaudited)		Six Months Ended:								Three Months Ended:
Selected Consolidated Earnings Data		Mar 31, 2024				Mar 31, 2023				Mar 31, 2024				Dec 31, 2023				Sep 30, 2023				June 30, 2023				Mar 31, 2023
Total interest income		$	18,444			$	17,109			$	9,268			$	9,176			$	8,728			$	8,395			$	8,473
Total interest expense			5,536				1,338				2,984				2,552				1,664				874				701
Net Interest Income			12,908				15,771				6,284				6,624				7,064				7,521				7,772
Provision for loan losses			12				449				4				8				(595	)			146				220
Net Interest Income after Provision for Loan Losses			12,896				15,322				6,280				6,616				7,659				7,375				7,552
Bank owned life insurance			202				198				100				102				101				97				98
Other income			1,066				1,099				486				580				617				593				555
Total other expenses			8,081				8,047				4,110				3,971				4,317				4,325				4,114
Income before income taxes			6,083				8,572				2,756				3,327				4,060				3,740				4,091
Income tax expense			1,461				2,168				644				817				1,042				939				1,018
Net Income		$	4,622			$	6,404			$	2,112			$	2,510			$	3,018			$	2,801			$	3,073
Per Common Share Data
Basic earnings		$	1.27			$	1.72			$	0.58			$	0.69			$	0.82			$	0.76			$	0.83
Diluted earnings		$	1.27			$	1.71			$	0.58			$	0.69			$	0.82			$	0.76			$	0.82
Dividends		$	0.61			$	0.59			$	0.31			$	0.30			$	0.30			$	0.30			$	0.30
Special Dividend		$	-			$	-			$	-			$	1.20			$	-			$	-			$	-
Tangible book value		$	23.34			$	22.79			$	23.34			$	23.05			$	23.76			$	23.26			$	22.79
Shares outstanding			3,635,367				3,708,367				3,635,367				3,646,269				3,670,488				3,663,905				3,708,367
Average shares outstanding - basic			3,644,094				3,715,846				3,644,446				3,643,746				3,661,248				3,688,845				3,715,772
Average shares outstanding - diluted			3,652,806				3,742,109				3,653,117				3,652,493				3,674,442				3,706,597				3,740,421
		Year-To-Date
		Six Months Ended:								Three Months Ended:
Other Selected Consolidated Data		Mar 31, 2024				Mar 31, 2023				Mar 31, 2024				Dec 31, 2023				Sep 30, 2023				June 30, 2023				Mar 31, 2023
Return on average assets			1.09	%			1.47	%			0.99	%			1.18	%			1.44	%			1.35	%			1.44	%
Return on average equity			10.91	%			15.34	%			10.04	%			11.79	%			14.07	%			13.24	%			14.73	%
Net interest rate spread			2.73	%			3.60	%			2.62	%			2.83	%			3.20	%			3.58	%			3.62	%
Net yield on interest earning assets			3.11	%			3.69	%			3.02	%			3.19	%			3.45	%			3.71	%			3.72	%
Operating expenses to average assets			1.90	%			1.84	%			1.93	%			1.87	%			2.06	%			2.09	%			1.93	%
Efficiency ratio			57.00	%			47.15	%			59.82	%			54.35	%			55.47	%			52.67	%			48.83	%
Ratio of non-performing loans to total assets at end of period			0.21	%			0.24	%			0.21	%			0.28	%			0.31	%			0.28	%			0.24	%
Loan loss reserve to total loans, net			0.71	%			0.91	%			0.71	%			0.71	%			0.77	%			0.89	%			0.91	%
Stockholders' equity to assets			10.01	%			10.03	%			10.01	%			9.85	%			10.35	%			10.27	%			10.03	%
Selected Consolidated Financial Data		Mar 31, 2024				Dec 31, 2023				Sep 30, 2023				June 30, 2023				Mar 31, 2023
Total assets		$	847,416			$	853,315			$	842,274			$	829,933			$	842,882
Cash & investment securities			20,853				23,626				22,168				25,623				57,163
Mortgage-backed securities			138,072				142,677				147,821				153,205				158,731
Total Investments			158,925				166,303				169,989				178,828				215,894
Consumer Loans receivable			325,483				325,654				318,349				305,780				290,509
Commercial Loans receivable			329,235				327,093				320,384				314,756				306,636
Loan loss reserve			(4,662	)			(4,663	)			(4,919	)			(5,525	)			(5,408	)
Total Loans receivable net			650,056				648,084				633,814				615,011				591,737
FHLB stock			4,813				5,550				5,144				3,024				2,234
Checking accounts			264,294				266,353				272,835				286,725				294,421
Savings accounts			229,208				239,496				257,246				282,425				306,226
Certificate of deposit accounts			166,664				140,194				117,687				110,898				109,453
Total Deposits			660,166				646,043				647,768				680,048				710,100
Advances			92,757				113,430				98,045				53,245				38,363
Total stockholders' equity			84,837				84,039				87,213				85,212				84,531

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240417957566/en/

M. Shane Michalak

Senior Vice President/CFO

215-256-8828

Source: Harleysville Financial Corporation

FAQ

What is the cash dividend declared by Harleysville Financial for the second quarter of fiscal year 2024?

The regular quarterly cash dividend declared is $.31 per share on the common stock.

What was the net income for the second quarter of fiscal year 2024 for Harleysville Financial ?

The net income for the second quarter was $2,112,000 or $.58 per diluted share.

Where is Harleysville Financial traded and under what symbol?

Harleysville Financial is traded on the OTCQX market under the symbol HARL.

What is the total assets value of Harleysville Financial for the current fiscal year?

The company's assets totaled $847.4 million.

What is the stockholders' tangible book value per share for Harleysville Financial ?

Stockholders' tangible book value increased by 2.4% to $23.34 per share.

What are some challenges mentioned by the President and CEO of Harleysville Financial ?

The company anticipates continued interest margin compression due to Federal Reserve actions to control inflation and faces challenges in the current interest rate environment.