Harleysville Financial Corporation Announces Regular Cash Dividend and Second Quarter Earnings for Fiscal Year 2020

HARLEYSVILLE, Pa.--()--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. The cash dividend will be payable on May 13, 2020 to stockholders of record on April 29, 2020.

Net income for the second quarter was $1,800,000 or $.47 per diluted share compared to $2,103,000 or $.55 per diluted share for the same quarter last year. Net income for the quarter ended March 31, 2019 included two non-recurring gains totaling $211,000 or a combined $.06 per diluted share for the quarter ended.

Net income for the six months ended March 31, 2020 amounted to $3,706,000 or $.97 per diluted share compared to $4,266,000 or $1.12 per diluted share for the same six-month period a year ago. Net income for the six months ended March 31, 2019 included non-recurring gains on sale of $611,000 or a combined $.16 per diluted share for the six months ended.

Brendan J. McGill, President and Chief Executive Officer of the Company, stated, “We are pleased with our solid second quarter results. With the current quarter repurchase of 52,950 shares for $1,200,000, the Company’s capital management reflects our confidence in our true community bank business model. Our balance sheet is strong and we are well capitalized. We know how important our dividend is to our stockholders; so we will continue to adhere to our operational efficiencies and our strong foundation for continuing to serve our community in these unprecedented times.”

The Company’s assets totaled $790.5 million compared to $793.3 million a year ago. Stockholders’ tangible book value increased 4.4% to $20.57 per share from $19.71 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, 2020
(Dollars in thousands except per share data) Year-To-Date
( Unaudited) Six Months Ended: Three Months Ended:
 
Selected Consolidated Earnings Data

Mar 31,

2020

 

Mar 31,

2019

 

Mar 31,

2020

 

Dec 31,

2019

 

Sept 30,

2019

 

Jun 30,

2019

 

Mar 31,

2019

Total interest income

$

15,248

 

$

15,728

 

$

7,536

 

$

7,712

 

$

7,914

 

$

7,982

 

$

7,875

 

Total interest expense

 

3,613

 

 

3,381

 

 

1,749

 

 

1,864

 

 

1,846

 

 

1,826

 

 

1,712

 

 
Net Interest Income

 

11,635

 

 

12,347

 

 

5,787

 

 

5,848

 

 

6,068

 

 

6,156

 

 

6,163

 

Provision for loan losses

 

304

 

 

552

 

 

114

 

 

190

 

 

215

 

 

215

 

 

192

 

Net Interest Income after Provision for Loan Losses

 

11,331

 

 

11,795

 

 

5,673

 

 

5,658

 

 

5,853

 

 

5,941

 

 

5,971

 

 
Gain on sale of investments

 

-

 

 

144

 

 

-

 

 

-

 

 

-

 

 

-

 

 

144

 

Gain on sale of real estate owned

 

-

 

 

467

 

 

-

 

 

-

 

 

-

 

 

-

 

 

67

 

Bank owned life insurance

 

200

 

 

199

 

 

99

 

 

101

 

 

102

 

 

97

 

 

99

 

Other income

 

1,112

 

 

1,025

 

 

534

 

 

578

 

 

516

 

 

533

 

 

491

 

Total other expenses

 

7,741

 

 

7,683

 

 

3,910

 

 

3,831

 

 

3,846

 

 

3,930

 

 

3,903

 

 
Income before income taxes

 

4,902

 

 

5,947

 

 

2,396

 

 

2,506

 

 

2,625

 

 

2,641

 

 

2,869

 

Income tax expense

 

1,196

 

 

1,681

 

 

596

 

 

600

 

 

706

 

 

677

 

 

766

 

 
Net Income

$

3,706

 

$

4,266

 

$

1,800

 

$

1,906

 

$

1,919

 

$

1,964

 

$

2,103

 

 
 
Per Common Share Data
Basic earnings

$

0.98

 

$

1.14

 

$

0.48

 

$

0.51

 

$

0.51

 

$

0.52

 

$

0.56

 

Diluted earnings

$

0.97

 

$

1.12

 

$

0.47

 

$

0.50

 

$

0.50

 

$

0.51

 

$

0.55

 

Dividends

$

0.52

 

$

0.48

 

$

0.27

 

$

0.25

 

$

0.25

 

$

0.25

 

$

0.25

 

Tangible book value

$

20.57

 

$

19.71

 

$

20.57

 

$

20.51

 

$

20.26

 

$

19.98

 

$

19.71

 

Shares outstanding

 

3,742,933

 

 

3,770,651

 

 

3,742,933

 

 

3,769,479

 

 

3,764,057

 

 

3,759,019

 

 

3,770,651

 

Average shares outstanding - basic

 

3,772,526

 

 

3,750,691

 

 

3,778,093

 

 

3,767,081

 

 

3,761,840

 

 

3,766,383

 

 

3,754,634

 

Average shares outstanding - diluted

 

3,824,553

 

 

3,823,721

 

 

3,827,541

 

 

3,822,069

 

 

3,815,843

 

 

3,824,885

 

 

3,826,397

 

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

Mar 31,

2020

 

Mar 31,

2019

 

Mar 31,

2020

 

Dec 31,

2019

 

Sept 30,

2019

 

Jun 30,

2019

 

Mar 31,

2019

Return on average assets

 

0.94

%

 

1.10

%

 

0.91

%

 

0.97

%

 

0.98

%

 

0.99

%

 

1.08

%

Return on average equity

 

9.64

%

 

11.71

%

 

9.33

%

 

9.96

%

 

10.18

%

 

10.55

%

 

11.45

%

Net interest rate spread

 

2.84

%

 

3.08

%

 

2.82

%

 

2.85

%

 

2.96

%

 

2.99

%

 

3.06

%

Net yield on interest earning assets

 

3.03

%

 

3.26

%

 

3.01

%

 

3.05

%

 

3.15

%

 

3.17

%

 

3.24

%

Operating expenses to average assets

 

1.97

%

 

1.98

%

 

1.98

%

 

1.95

%

 

1.96

%

 

1.98

%

 

2.01

%

Efficiency ratio

 

59.79

%

 

54.73

%

 

60.91

%

 

58.69

%

 

57.52

%

 

57.91

%

 

57.24

%

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

 

0.89

%

 

1.16

%

 

0.89

%

 

0.96

%

 

1.08

%

 

1.07

%

 

1.16

%

Loan loss reserve to total loans, net

 

0.81

%

 

0.70

%

 

0.81

%

 

0.79

%

 

0.78

%

 

0.73

%

 

0.70

%

Stockholders' equity to assets

 

9.74

%

 

9.37

%

 

9.74

%

 

9.86

%

 

9.78

%

 

9.45

%

 

9.37

%

 
 
Selected Consolidated Financial Data

Mar 31,

2020

 

Dec 31,

2019

 

Sept 30,

2019

 

Jun 30,

2019

 

Mar 31,

2019

Total assets

$

790,447

 

$

784,497

 

$

779,256

 

$

795,031

 

$

793,265

 

Cash & investment securities

 

56,088

 

 

41,590

 

 

42,337

 

 

53,891

 

 

49,086

 

Mortgage-backed securities

 

105,016

 

 

109,591

 

 

96,600

 

 

90,690

 

 

90,019

 

Total Investments

 

161,104

 

 

151,181

 

 

138,937

 

 

144,581

 

 

139,105

 

Consumer Loans receivable

 

391,542

 

 

396,270

 

 

401,950

 

 

407,271

 

 

413,553

 

Commercial Loans receivable

 

204,489

 

 

203,433

 

 

207,591

 

 

211,967

 

 

209,323

 

Loan loss reserve

 

(4,820

)

 

(4,711

)

 

(4,757

)

 

(4,547

)

 

(4,343

)

Total Loans receivable net

 

591,211

 

 

594,992

 

 

604,784

 

 

614,691

 

 

618,533

 

FHLB stock

 

4,699

 

 

4,840

 

 

5,058

 

 

5,074

 

 

5,094

 

Checking accounts

 

193,383

 

 

187,490

 

 

181,054

 

 

186,012

 

 

183,566

 

Savings accounts

 

220,734

 

 

212,986

 

 

208,633

 

 

216,687

 

 

218,788

 

Certificate of deposit accounts

 

183,674

 

 

188,636

 

 

196,655

 

 

192,456

 

 

196,532

 

Total Deposits

 

597,791

 

 

589,112

 

 

586,342

 

 

595,155

 

 

598,886

 

Advances

 

104,804

 

 

106,191

 

 

111,125

 

 

114,743

 

 

111,469

 

Total stockholders' equity

 

77,007

 

 

77,329

 

 

76,247

 

 

75,109

 

 

74,317

 

 

 

Contacts

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

Contacts

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