Harleysville Financial Corporation Announces Regular Cash Dividend and Third Quarter Earnings for Fiscal Year 2019

HARLEYSVILLE, Pa.--()--Harleysville Financial Corporation (OTCQX:HARL) reported today that the Company’s board of directors declared a regular quarterly cash dividend of $.25 per share on the Company’s common stock. The cash dividend will be payable on August 14, 2019 to stockholders of record on July 31st, 2019.

Net income for the third quarter was $1,964,000 or $.51 per diluted share compared to $1,975,000 or $.51 per diluted share for the same quarter last year.

Net income for the nine months ended June 30, 2019 amounted to $6,230,000 or $1.63 per diluted share compared to $5,007,000 or $1.30 per diluted share for the same nine-month period a year ago.

“We are pleased with our third quarter results as they reflect our discipline to our fundamental operating principles of maintaining prudent underwriting standards, investing in high credit quality assets and practicing sound capital management.

In addition we are pleased with how the balance sheet is positioned in the current environment. Our Team has been able to increase the number of relationships with small businesses and customers wanting to work with a locally owned and managed community bank,” said Brendan J. McGill, Chief Executive Officer.

The Company’s assets totaled $795.0 million compared to $781.9 million a year ago. Stockholders’ tangible book value increased 6.1% to $19.98 per share from $18.84 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, 2019
(Dollars in thousands except per share data) Year-To-Date
(Unaudited) Nine Months Ended: Three Months Ended:
 
Selected Consolidated Earnings Data

Jun 30,
2019

Jun 30,
2018

Jun 30,
2019

Mar 31,
2019

Dec 31,
2018

Sept 30,
2018

Jun 30,
2018

Total interest income

$

23,710

$

22,562

$

7,982

$

7,875

$

7,853

$

7,767

$

7,716

Total interest expense

 

5,207

 

5,138

 

1,826

 

1,712

 

1,669

 

1,629

 

1,625

 
Net Interest Income

 

18,503

 

17,424

 

6,156

 

6,163

 

6,184

 

6,138

 

6,091

Provision for loan losses

 

767

 

835

 

215

 

192

 

360

 

205

 

360

Net Interest Income after Provision for Loan Losses

 

17,736

 

16,589

 

5,941

 

5,971

 

5,824

 

5,933

 

5,731

 
Gain on sale of investments

 

144

 

-

 

-

 

144

 

-

 

-

 

-

Gain on sale of real estate owned

 

467

 

304

 

-

 

67

 

400

 

-

 

-

Bank owned life insurance

 

296

 

294

 

97

 

99

 

100

 

99

 

97

Other income

 

1,558

 

1,615

 

533

 

491

 

534

 

554

 

608

Total other expenses

 

11,613

 

11,544

 

3,930

 

3,903

 

3,780

 

3,855

 

3,865

 
Income before income taxes

 

8,588

 

7,258

 

2,641

 

2,869

 

3,078

 

2,731

 

2,571

Income tax expense

 

2,358

 

2,251

 

677

 

766

 

915

 

628

 

596

 
Net Income

$

6,230

$

5,007

$

1,964

$

2,103

$

2,163

$

2,103

$

1,975

 
 
Per Common Share Data
Basic earnings

$

1.66

$

1.33

$

0.52

$

0.56

$

0.58

$

0.56

$

0.52

Diluted earnings

$

1.63

$

1.30

$

0.51

$

0.55

$

0.57

$

0.55

$

0.51

Dividends

$

0.73

$

0.68

$

0.25

$

0.25

$

0.23

$

0.23

$

0.23

Tangible book value

$

19.98

$

18.84

$

19.98

$

19.71

$

19.50

$

19.19

$

18.84

Shares outstanding

 

3,759,019

 

3,748,600

 

3,759,019

 

3,770,651

 

3,746,202

 

3,744,046

 

3,748,600

Average shares outstanding - basic

 

3,755,921

 

3,763,539

 

3,766,383

 

3,754,634

 

3,746,832

 

3,748,773

 

3,752,604

Average shares outstanding - diluted

 

3,823,846

 

3,847,673

 

3,824,885

 

3,826,397

 

3,821,791

 

3,832,713

 

3,834,170

 
 
 
Year-To-Date
Nine Months Ended: Three Months Ended:
Other Selected Consolidated Data

Jun 30,
2019

Jun 30,
2018

Jun 30,
2019

Mar 31,
2019

Dec 31,
2018

Sept 30,
2018

Jun 30,
2018

Return on average assets

 

1.06%

 

0.87%

 

0.99%

 

1.08%

 

1.12%

 

1.08%

 

1.01%

Return on average equity

 

11.33%

 

9.58%

 

10.55%

 

11.45%

 

11.98%

 

11.84%

 

11.27%

Net interest rate spread

 

3.05%

 

2.91%

 

2.99%

 

3.06%

 

3.09%

 

3.05%

 

3.03%

Net yield on interest earning assets

 

3.23%

 

3.09%

 

3.17%

 

3.24%

 

3.28%

 

3.23%

 

3.20%

Operating expenses to average assets

 

1.98%

 

2.00%

 

1.98%

 

2.01%

 

1.96%

 

1.98%

 

1.99%

Efficiency ratio

 

55.84%

 

58.84%

 

57.91%

 

57.24%

 

52.36%

 

56.77%

 

56.88%

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

 

1.07%

 

1.40%

 

1.07%

 

1.16%

 

1.19%

 

1.34%

 

1.40%

Loan loss reserve to total loans, net

 

0.73%

 

0.73%

 

0.73%

 

0.70%

 

0.67%

 

0.63%

 

0.73%

Stockholders' equity to assets

 

9.45%

 

9.03%

 

9.45%

 

9.37%

 

9.47%

 

9.34%

 

9.03%

 
 
Selected Consolidated Financial Data

Jun 30,
2019

Mar 31,
2019

Dec 31,
2018

Sept 30,
2018

Jun 30,
2018

Total assets

$

795,031

$

793,265

$

771,816

$

768,865

$

781,893

Cash & investment securities

 

53,891

 

49,086

 

31,796

 

27,296

 

33,117

Mortgage-backed securities

 

90,690

 

90,019

 

83,786

 

88,698

 

94,486

Total Investments

 

144,581

 

139,105

 

115,582

 

115,994

 

127,603

Consumer Loans receivable

 

407,271

 

413,553

 

417,259

 

417,093

 

416,714

Commercial Loans receivable

 

211,967

 

209,323

 

207,675

 

202,728

 

206,064

Loan loss reserve

 

(4,547)

 

(4,343)

 

(4,155)

 

(3,922)

 

(4,547)

Total Loans receivable net

 

614,691

 

618,533

 

620,779

 

615,899

 

618,231

FHLB stock

 

5,074

 

5,094

 

4,838

 

5,286

 

5,176

Checking accounts

 

186,012

 

183,566

 

181,491

 

172,431

 

179,481

Savings accounts

 

216,687

 

218,788

 

216,940

 

220,159

 

231,534

Certificate of deposit accounts

 

192,456

 

196,532

 

189,629

 

189,488

 

178,782

Total Deposits

 

595,155

 

598,886

 

588,060

 

582,078

 

589,797

Advances

 

114,743

 

111,469

 

103,195

 

108,516

 

110,231

Total stockholders' equity

 

75,109

 

74,317

 

73,058

 

71,838

 

70,615

 

Contacts

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

Contacts

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