Harleysville Financial Corporation Announces Record Earnings for the Fiscal Year Ended September 30, 2019 and the Declaration of Regular Cash Dividend

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 November 13, 2019 to stockholders of record on October 30, 2019.

Net income for the twelve months ended September 30, 2019 amounted to $8,149,000 or $2.13 per diluted share compared to $7,110,000 or $1.85 per diluted share for the twelve months ended September 30, 2018.

Net income for the fourth quarter of fiscal year 2019 amounted to $1,919,000 or $.50 per diluted share compared to $2,103,000 or $.55 per diluted share for the fourth quarter of fiscal year 2018.

Commenting on the year-end operating results, President and Chief Executive Officer Brendan J. McGill said, “We are pleased to report record earnings for the fiscal year ended 2019 of $8,149,000. These results reflect our discipline to our fundamental operating principles of maintaining prudent underwriting standards, investing in high credit quality assets, controlling our operating expenses, and practicing sound capital management.”

The Company’s assets totaled $779.3 million compared to $768.9 million a year ago. Stockholders’ book value increased 5.58% to $20.26 per share from $19.19 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 full-service 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 September 30, 2019
(Dollars in thousands except per share data) Year-To-Date
( Unaudited) Twelve Months Ended: Three Months Ended:
 
Selected Consolidated Earnings Data

Sept 30,
2019

Sept 30,
2018

Sept 30,
2019

Jun 30,
2019

Mar 31,
2019

Dec 31,
2018

Sept 30,
2018

Total interest income

$

31,624

 

$

30,329

 

$

7,914

 

$

7,982

 

$

7,875

 

$

7,853

 

$

7,767

 

Total interest expense

 

7,053

 

 

6,767

 

 

1,846

 

 

1,826

 

 

1,712

 

 

1,669

 

 

1,629

 

 
Net Interest Income

 

24,571

 

 

23,562

 

 

6,068

 

 

6,156

 

 

6,163

 

 

6,184

 

 

6,138

 

Provision for loan losses

 

982

 

 

1,040

 

 

215

 

 

215

 

 

192

 

 

360

 

 

205

 

Net Interest Income after Provision for Loan Losses

 

23,589

 

 

22,522

 

 

5,853

 

 

5,941

 

 

5,971

 

 

5,824

 

 

5,933

 

 
Gain on sale of investments

 

144

 

 

-

 

 

-

 

 

-

 

 

144

 

 

-

 

 

-

 

Gain on sale of real estate owned

 

467

 

 

304

 

 

-

 

 

-

 

 

67

 

 

400

 

 

-

 

Bank owned life insurance

 

398

 

 

393

 

 

102

 

 

97

 

 

99

 

 

100

 

 

99

 

Other income

 

2,074

 

 

2,169

 

 

516

 

 

533

 

 

491

 

 

534

 

 

554

 

Total other expenses

 

15,459

 

 

15,399

 

 

3,846

 

 

3,930

 

 

3,903

 

 

3,780

 

 

3,855

 

 
Income before income taxes

 

11,213

 

 

9,989

 

 

2,625

 

 

2,641

 

 

2,869

 

 

3,078

 

 

2,731

 

Income tax expense

 

3,064

 

 

2,879

 

 

706

 

 

677

 

 

766

 

 

915

 

 

628

 

 
Net Income

$

8,149

 

$

7,110

 

$

1,919

 

$

1,964

 

$

2,103

 

$

2,163

 

$

2,103

 

 
 
Per Common Share Data
Basic earnings

$

2.17

 

$

1.89

 

$

0.51

 

$

0.52

 

$

0.56

 

$

0.58

 

$

0.56

 

Diluted earnings

$

2.13

 

$

1.85

 

$

0.50

 

$

0.51

 

$

0.55

 

$

0.57

 

$

0.55

 

Dividends

$

0.98

 

$

0.91

 

$

0.25

 

$

0.25

 

$

0.25

 

$

0.23

 

$

0.23

 

Tangible book value

$

20.26

 

$

19.19

 

$

20.26

 

$

19.98

 

$

19.71

 

$

19.50

 

$

19.19

 

Shares outstanding

 

3,764,057

 

 

3,744,046

 

 

3,764,057

 

 

3,759,019

 

 

3,770,651

 

 

3,746,202

 

 

3,744,046

 

Average shares outstanding - basic

 

3,757,413

 

 

3,759,817

 

 

3,761,840

 

 

3,766,383

 

 

3,754,634

 

 

3,746,832

 

 

3,748,773

 

Average shares outstanding - diluted

 

3,821,965

 

 

3,844,533

 

 

3,815,843

 

 

3,824,885

 

 

3,826,397

 

 

3,821,791

 

 

3,832,713

 

 
 
 
Year-To-Date
Twelve Months Ended: Three Months Ended:
Other Selected Consolidated Data Sept 30,
2019
Sept 30,
2018
Sept 30,
2019
Jun 30,
2019
Mar 31,
2019
Dec 31,
2018
Sept 30,
2018
Return on average assets

 

1.04

%

 

0.92

%

 

0.98

%

 

0.99

%

 

1.08

%

 

1.12

%

 

1.08

%

Return on average equity

 

11.04

%

 

10.16

%

 

10.18

%

 

10.55

%

 

11.45

%

 

11.98

%

 

11.84

%

Net interest rate spread

 

3.03

%

 

2.95

%

 

2.96

%

 

2.99

%

 

3.06

%

 

3.09

%

 

3.05

%

Net yield on interest earning assets

 

3.21

%

 

3.12

%

 

3.15

%

 

3.17

%

 

3.24

%

 

3.28

%

 

3.23

%

Operating expenses to average assets

 

1.98

%

 

2.00

%

 

1.96

%

 

1.98

%

 

2.01

%

 

1.96

%

 

1.98

%

Efficiency ratio

 

56.19

%

 

58.33

%

 

57.52

%

 

57.91

%

 

57.24

%

 

52.36

%

 

56.77

%

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

 

1.08

%

 

1.34

%

 

1.08

%

 

1.07

%

 

1.16

%

 

1.19

%

 

1.34

%

Loan loss reserve to total loans, net

 

0.78

%

 

0.63

%

 

0.78

%

 

0.73

%

 

0.70

%

 

0.67

%

 

0.63

%

Stockholders' equity to assets

 

9.78

%

 

9.34

%

 

9.78

%

 

9.45

%

 

9.37

%

 

9.47

%

 

9.34

%

 
 
Selected Consolidated Financial Data Sept 30,
2019
Jun 30,
2019
Mar 31,
2019
Dec 31,
2018
Sept 30,
2018
Total assets

$

779,256

 

$

795,031

 

$

793,265

 

$

771,816

 

$

768,865

 

Cash & investment securities

 

42,337

 

 

53,891

 

 

49,086

 

 

31,796

 

 

27,296

 

Mortgage-backed securities

 

96,600

 

 

90,690

 

 

90,019

 

 

83,786

 

 

88,698

 

Total Investments

 

138,937

 

 

144,581

 

 

139,105

 

 

115,582

 

 

115,994

 

Consumer Loans receivable

 

401,950

 

 

407,271

 

 

413,553

 

 

417,259

 

 

417,093

 

Commercial Loans receivable

 

207,591

 

 

211,967

 

 

209,323

 

 

207,675

 

 

202,728

 

Loan loss reserve

 

(4,757

)

 

(4,547

)

 

(4,343

)

 

(4,155

)

 

(3,922

)

Total Loans receivable net

 

604,784

 

 

614,691

 

 

618,533

 

 

620,779

 

 

615,899

 

FHLB stock

 

5,058

 

 

5,074

 

 

5,094

 

 

4,838

 

 

5,286

 

Checking accounts

 

181,054

 

 

186,012

 

 

183,566

 

 

181,491

 

 

172,431

 

Savings accounts

 

208,633

 

 

216,687

 

 

218,788

 

 

216,940

 

 

220,159

 

Certificate of deposit accounts

 

196,655

 

 

192,456

 

 

196,532

 

 

189,629

 

 

189,488

 

Total Deposits

 

586,342

 

 

595,155

 

 

598,886

 

 

588,060

 

 

582,078

 

Advances

 

111,125

 

 

114,743

 

 

111,469

 

 

103,195

 

 

108,516

 

Total stockholders' equity

 

76,247

 

 

75,109

 

 

74,317

 

 

73,058

 

 

71,838

 

 

Contacts

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

Contacts

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