Harleysville Financial Corporation Announces Earnings for the Fiscal Year Ended September 30, 2020 and the Declaration of Regular Cash Dividend

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 $.27 per share on the Company’s common stock. The cash dividend will be payable on November 18, 2020 to stockholders of record on November 4, 2020.

Net income for the twelve months ended September 30, 2020 amounted to $7,111,000 or $1.87 per diluted share compared to $8,149,000 or $2.13 per diluted share for the twelve months ended September 30, 2019. Net income for the twelve months ended September 30, 2019 included non-recurring gains on sale of $611,000 or a combined $.16 per diluted share for the twelve months ended.

Net income for the fourth quarter of fiscal year 2020 amounted to $1,794,000 or $.48 per diluted share compared to $1,919,000 or $.50 per diluted share for the fourth quarter of fiscal year 2019.

Commenting on the year-end operating results, President and Chief Executive Officer Brendan J. McGill said, “We are pleased with our fiscal year end results despite the challenges of a lower interest rate environment and the prolonged COVID-19 pandemic.

“The well-being of our customers, team members, stockholders and communities we serve will remain our top priority as we continue to navigate through the COVID-19 pandemic and the resulting economic impact. We believe our balance sheet is strong and we will continue to stick 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 $854.9 million compared to $779.3 million a year ago. Stockholders’ book value increased 3.46% to $20.96 per share from $20.26 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, 2020
(Dollars in thousands except per share data)	Year-To-Date
( Unaudited)	Twelve Months Ended:						Three Months Ended:
Selected Consolidated Earnings Data	Sept 30, 2020			Sept 30, 2019			Sept 30, 2020			Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sept 30, 2019
Total interest income	$	29,620		$	31,624		$	7,156		$	7,216		$	7,536		$	7,712		$	7,914
Total interest expense		6,684			7,053			1,510			1,561			1,749			1,864			1,846
Net Interest Income		22,936			24,571			5,646			5,655			5,787			5,848			6,068
Provision for loan losses		811			982			154			353			114			190			215
Net Interest Income after Provision for Loan Losses		22,125			23,589			5,492			5,302			5,673			5,658			5,853
Gain on sale of investments		-			144			-			-			-			-			-
Gain on sale of real estate owned		-			467			-			-			-			-			-
Bank owned life insurance		398			398			100			98			99			101			102
Other income		2,134			2,074			567			455			534			578			516
Total other expenses		15,288			15,459			3,847			3,700			3,910			3,831			3,846
Income before income taxes		9,369			11,213			2,312			2,155			2,396			2,506			2,625
Income tax expense		2,258			3,064			518			544			596			600			706
Net Income	$	7,111		$	8,149		$	1,794		$	1,611		$	1,800		$	1,906		$	1,919
Per Common Share Data
Basic earnings	$	1.89		$	2.17		$	0.48		$	0.43		$	0.48		$	0.51		$	0.51
Diluted earnings	$	1.87		$	2.13		$	0.48		$	0.43		$	0.47		$	0.50		$	0.50
Dividends	$	1.06		$	0.98		$	0.27		$	0.27		$	0.27		$	0.25		$	0.25
Tangible book value	$	20.96		$	20.26		$	20.96		$	20.76		$	20.57		$	20.51		$	20.26
Shares outstanding		3,752,221			3,764,057			3,752,221			3,747,052			3,742,933			3,769,479			3,764,057
Average shares outstanding - basic		3,759,909			3,757,413			3,749,350			3,744,957			3,778,093			3,767,081			3,761,840
Average shares outstanding - diluted		3,800,492			3,821,965			3,775,775			3,775,593			3,827,541			3,822,069			3,815,843
	Year-To-Date
	Twelve Months Ended:						Three Months Ended:
Other Selected Consolidated Data	Sept 30, 2020			Sept 30, 2019			Sept 30, 2020			Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sept 30, 2019
Return on average assets		0.87	%		1.04	%		0.83	%		0.78	%		0.91	%		0.97	%		0.98	%
Return on average equity		9.21	%		11.04	%		9.21	%		8.35	%		9.33	%		9.96	%		10.18	%
Net interest rate spread		2.71	%		3.03	%		2.52	%		2.63	%		2.82	%		2.85	%		2.96	%
Net yield on interest earning assets		2.89	%		3.21	%		2.69	%		2.80	%		3.01	%		3.05	%		3.15	%
Operating expenses to average assets		1.87	%		1.98	%		1.79	%		1.79	%		1.98	%		1.95	%		1.96	%
Efficiency ratio		60.03	%		56.19	%		60.94	%		59.60	%		60.91	%		58.69	%		57.52	%
Ratio of non-performing loans to total assets at end of period		0.88	%		1.08	%		0.88	%		0.85	%		0.89	%		0.96	%		1.08	%
Loan loss reserve to total loans, net		0.87	%		0.78	%		0.87	%		0.83	%		0.81	%		0.79	%		0.78	%
Stockholders' equity to assets		9.20	%		9.78	%		9.20	%		9.13	%		9.74	%		9.86	%		9.78	%
Selected Consolidated Financial Data	Sept 30, 2020			Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sept 30, 2019
Total assets	$	854,876		$	851,821		$	790,447		$	784,497		$	779,256
Cash & investment securities		127,951			104,934			56,088			41,590			42,337
Mortgage-backed securities		81,851			93,970			105,016			109,591			96,600
Total Investments		209,802			198,904			161,104			151,181			138,937
Consumer Loans receivable		358,472			379,205			391,542			396,270			401,950
Commercial Loans receivable		253,698			240,485			204,489			203,433			207,591
Loan loss reserve		(5,308	)		(5,167	)		(4,820	)		(4,711	)		(4,757	)
Total Loans receivable net		606,862			614,523			591,211			594,992			604,784
FHLB stock		4,463			4,692			4,699			4,840			5,058
Checking accounts		231,068			226,921			193,383			187,490			181,054
Savings accounts		252,117			242,820			220,734			212,986			208,633
Certificate of deposit accounts		174,545			181,489			183,674			188,636			196,655
Total Deposits		657,730			651,230			597,791			589,112			586,342
Advances		109,684			109,781			104,804			106,191			111,125
Total stockholders' equity		78,631			77,780			77,007			77,329			76,247