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Harleysville Financial Corporation Announces an 8.0% Increase of the Regular Cash Dividend and Earnings for the First Fiscal Quarter 2020

January 22, 2020 GMT

HARLEYSVILLE, Pa.--(BUSINESS WIRE)--Jan 22, 2020--

Harleysville Financial Corporation (OTCQX:HARL) reported today that the Company’s Board of Directors declared a regular quarterly cash dividend of $.27 per share on the Company’s common stock. This represents an increase of 8.0% or $.02 per share from the previous dividend. The cash dividend will be payable on February 19, 2020 to stockholders of record on February 5, 2020.

Net income for the quarter ended December 31, 2019 was $1,906,000 or $.50 per diluted share compared to $2,163,000 or $.57 per diluted share for the same quarter last year. Net income for the quarter ended December 31, 2018 included a one-time non-recurring gain on sale of real estate owned of $400,000 or $.11 per diluted share.

President and Chief Executive Officer Brendan J. McGill stated, “Based on the solid financial results of the quarter and our belief that we are positioned for the future, we are pleased that we are able to create additional value for our stockholders by increasing the cash dividend to $.27 per share. We will continue to remain focused on long term results by increasing core deposit relationships and maintaining a portfolio of quality loans and investments.”

The Company’s assets totaled $784.5 million compared to $771.8 million a year ago, and stockholders’ tangible book value increased to $20.51 per share from $19.50 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, 2019
(Dollars in thousands except per share data)
( Unaudited)Three Months Ended:
 
Selected Consolidated Earnings Data

Dec 31,
2019

Sept 30,
2019

Jun 30,
2019

Mar 31,
2019

Dec 31,
2018

Total interest income

$

7,712

 

$

7,914

 

$

7,982

 

$

7,875

 

$

7,853

 

Total interest expense

 

1,864

 

 

1,846

 

 

1,826

 

 

1,712

 

 

1,669

 

 
Net Interest Income

 

5,848

 

 

6,068

 

 

6,156

 

 

6,163

 

 

6,184

 

Provision for loan losses

 

190

 

 

215

 

 

215

 

 

192

 

 

360

 

Net Interest Income after Provision for Loan Losses

 

5,658

 

 

5,853

 

 

5,941

 

 

5,971

 

 

5,824

 

 
Gain on sale of investments

 

-

 

 

-

 

 

-

 

 

144

 

 

-

 

Gain on sale of real estate owned

 

-

 

 

-

 

 

-

 

 

67

 

 

400

 

Bank owned life insurance

 

101

 

 

102

 

 

97

 

 

99

 

 

100

 

Other income

 

578

 

 

516

 

 

533

 

 

491

 

 

534

 

Total other expenses

 

3,831

 

 

3,846

 

 

3,930

 

 

3,903

 

 

3,780

 

 
Income before income taxes

 

2,506

 

 

2,625

 

 

2,641

 

 

2,869

 

 

3,078

 

Income tax expense

 

600

 

 

706

 

 

677

 

 

766

 

 

915

 

 
Net Income

$

1,906

 

$

1,919

 

$

1,964

 

$

2,103

 

$

2,163

 

 
 
Per Common Share Data
Basic earnings

$

0.51

 

$

0.51

 

$

0.52

 

$

0.56

 

$

0.58

 

Diluted earnings

$

0.50

 

$

0.50

 

$

0.51

 

$

0.55

 

$

0.57

 

Dividends

$

0.25

 

$

0.25

 

$

0.25

 

$

0.25

 

$

0.23

 

Tangible book value

$

20.51

 

$

20.26

 

$

19.98

 

$

19.71

 

$

19.50

 

Shares outstanding

 

3,769,479

 

 

3,764,057

 

 

3,759,019

 

 

3,770,651

 

 

3,746,202

 

Average shares outstanding - basic

 

3,767,081

 

 

3,761,840

 

 

3,766,383

 

 

3,754,634

 

 

3,746,832

 

Average shares outstanding - diluted

 

3,822,069

 

 

3,815,843

 

 

3,824,885

 

 

3,826,397

 

 

3,821,791

 

 
 
 
 
Three Months Ended:
Other Selected Consolidated Data

Dec 31,
2019

Sept 30,
2019

Jun 30,
2019

Mar 31,
2019

Dec 31,
2018

Return on average assets

 

0.97

%

 

0.98

%

 

0.99

%

 

1.08

%

 

1.12

%

Return on average equity

 

9.96

%

 

10.18

%

 

10.55

%

 

11.45

%

 

11.98

%

Net interest rate spread

 

2.85

%

 

2.96

%

 

2.99

%

 

3.06

%

 

3.09

%

Net yield on interest earning assets

 

3.05

%

 

3.15

%

 

3.17

%

 

3.24

%

 

3.28

%

Operating expenses to average assets

 

1.95

%

 

1.96

%

 

1.98

%

 

2.01

%

 

1.96

%

Efficiency ratio

 

58.69

%

 

57.52

%

 

57.91

%

 

57.24

%

 

52.36

%

Ratio of non-performing loans to total assets at end of period

 

0.96

%

 

1.08

%

 

1.07

%

 

1.16

%

 

1.19

%

Loan loss reserve to total loans, net

 

0.79

%

 

0.78

%

 

0.73

%

 

0.70

%

 

0.67

%

Stockholders' equity to assets

 

9.86

%

 

9.78

%

 

9.45

%

 

9.37

%

 

9.47

%

 
 
Selected Consolidated Financial Data

Dec 31,
2019

Sept 30,
2019

Jun 30,
2019

Mar 31,
2019

Dec 31,
2018

Total assets

$

784,497

 

$

779,256

 

$

795,031

 

$

793,265

 

$

771,816

 

Cash & investment securities

 

41,590

 

 

42,337

 

 

53,891

 

 

49,086

 

 

31,796

 

Mortgage-backed securities

 

109,591

 

 

96,600

 

 

90,690

 

 

90,019

 

 

83,786

 

Total Investments

 

151,181

 

 

138,937

 

 

144,581

 

 

139,105

 

 

115,582

 

Consumer Loans receivable

 

396,270

 

 

401,950

 

 

407,271

 

 

413,553

 

 

417,259

 

Commercial Loans receivable

 

203,433

 

 

207,591

 

 

211,967

 

 

209,323

 

 

207,675

 

Loan loss reserve

 

(4,711

)

 

(4,757

)

 

(4,547

)

 

(4,343

)

 

(4,155

)

Total Loans receivable net

 

594,992

 

 

604,784

 

 

614,691

 

 

618,533

 

 

620,779

 

FHLB stock

 

4,840

 

 

5,058

 

 

5,074

 

 

5,094

 

 

4,838

 

Checking accounts

 

187,490

 

 

181,054

 

 

186,012

 

 

183,566

 

 

181,491

 

Savings accounts

 

212,986

 

 

208,633

 

 

216,687

 

 

218,788

 

 

216,940

 

Certificate of deposit accounts

 

188,636

 

 

196,655

 

 

192,456

 

 

196,532

 

 

189,629

 

Total Deposits

 

589,112

 

 

586,342

 

 

595,155

 

 

598,886

 

 

588,060

 

Advances

 

106,191

 

 

111,125

 

 

114,743

 

 

111,469

 

 

103,195

 

Total stockholders' equity

 

77,329

 

 

76,247

 

 

75,109

 

 

74,317

 

 

73,058

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20200122005615/en/

CONTACT: M. Shane Michalak

Senior Vice President/CFO

215-256-8828

KEYWORD: PENNSYLVANIA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES FINANCE

SOURCE: Harleysville Financial Corporation

Copyright Business Wire 2020.

PUB: 01/22/2020 11:49 AM/DISC: 01/22/2020 11:49 AM

http://www.businesswire.com/news/home/20200122005615/en