Harleysville Financial Corporation Announces Earnings for the Fiscal Year Ended September 30, 2021 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 $.28 per share on the Company’s common stock. The cash dividend will be payable on November 17, 2021 to stockholders of record on November 3, 2021.

Net income for the twelve months ended September 30, 2021 amounted to $7,284,000 or $1.93 per diluted share compared to $7,111,000 or $1.87 per diluted share for the twelve months ended September 30, 2020. Net income for the twelve months ended September 30, 2021 included SBA Paycheck Protection Program (PPP) fee income totaling $1,231,000, which was partially offset by prepayment expenses on Federal Home Loan Bank Advances of $522,000 or a net benefit of $.19 per diluted share for the twelve months ended.

Net income for the fourth quarter of fiscal year 2021 amounted to $1,546,000 or $.41 per diluted share compared to $1,794,000 or $.48 per diluted share for the fourth quarter of fiscal year 2020. Net income for the three months ended September 30, 2021 included SBA Paycheck Protection Program (PPP) fee income totaling $222,000, which was offset by prepayment expenses on Federal Home Loan Bank Advances of $434,000 or net impact of $.06 per diluted share for the three months ended.

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 Bank continues to prove its strength and resiliency through strong earnings, solid credit quality and managing expenses.

We are optimistic that most of the burdens of the COVID-19 pandemic are now behind us and we will continue to focus on the needs of our customers, safety of our team members and supporting our communities.”

The Company’s assets totaled $892.6 million compared to $854.9 million a year ago. Stockholders’ book value increased 3.48% to $21.69 per share from $20.96 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, 2021
(Dollars in thousands except per share data) Year-To-Date
(Unaudited) Twelve Months Ended: Three Months Ended:
 
Selected Consolidated Earnings Data Sept 30, 2021 Sept 30, 2020 Sept 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sept 30, 2020
Total interest income

$

27,323

 

$

29,620

 

$

6,555

 

$

6,628

 

$

6,980

 

$

7,160

 

$

7,156

 

Total interest expense

 

4,833

 

 

6,684

 

 

1,067

 

 

1,187

 

 

1,239

 

 

1,340

 

 

1,510

 

 
Net Interest Income

 

22,490

 

 

22,936

 

 

5,488

 

 

5,441

 

 

5,741

 

 

5,820

 

 

5,646

 

Provision for loan losses

 

385

 

 

811

 

 

90

 

 

105

 

 

95

 

 

95

 

 

154

 

Net Interest Income after Provision for Loan Losses

 

22,105

 

 

22,125

 

 

5,398

 

 

5,336

 

 

5,646

 

 

5,725

 

 

5,492

 

 
Gain on sales of loans

 

252

 

 

-

 

 

61

 

 

29

 

 

96

 

 

66

 

 

-

 

Bank owned life insurance

 

393

 

 

398

 

 

99

 

 

95

 

 

99

 

 

100

 

 

100

 

Other income

 

2,531

 

 

2,134

 

 

679

 

 

603

 

 

612

 

 

637

 

 

567

 

Total other expenses

 

15,431

 

 

15,288

 

 

4,203

 

 

3,928

 

 

3,706

 

 

3,594

 

 

3,847

 

 
Income before income taxes

 

9,850

 

 

9,369

 

 

2,034

 

 

2,135

 

 

2,747

 

 

2,934

 

 

2,312

 

Income tax expense

 

2,566

 

 

2,258

 

 

488

 

 

553

 

 

693

 

 

832

 

 

518

 

 
Net Income

$

7,284

 

$

7,111

 

$

1,546

 

$

1,582

 

$

2,054

 

$

2,102

 

$

1,794

 

 
 
Per Common Share Data
Basic earnings

$

1.95

 

$

1.89

 

$

0.41

 

$

0.42

 

$

0.55

 

$

0.56

 

$

0.48

 

Diluted earnings

$

1.93

 

$

1.87

 

$

0.41

 

$

0.42

 

$

0.54

 

$

0.56

 

$

0.48

 

Dividends

$

1.11

 

$

1.06

 

$

0.28

 

$

0.28

 

$

0.28

 

$

0.27

 

$

0.27

 

Tangible book value

$

21.69

 

$

20.96

 

$

21.69

 

$

21.61

 

$

21.50

 

$

21.23

 

$

20.96

 

Shares outstanding

 

3,721,038

 

 

3,752,221

 

 

3,721,038

 

 

3,741,307

 

 

3,743,203

 

 

3,745,058

 

 

3,752,221

 

Average shares outstanding - basic

 

3,744,566

 

 

3,759,909

 

 

3,732,812

 

 

3,744,305

 

 

3,748,385

 

 

3,752,787

 

 

3,749,350

 

Average shares outstanding - diluted

 

3,780,450

 

 

3,800,492

 

 

3,776,160

 

 

3,788,028

 

 

3,780,590

 

 

3,776,067

 

 

3,775,775

 

 
 
Harleysville Financial Corporation
Selected Consolidated Financial Data as of September 30, 2021
(Dollars in thousands except per share data) Year-To-Date
(Unaudited) Twelve Months Ended: Three Months Ended:
Other Selected Consolidated Data Sept 30, 2021 Sept 30, 2020 Sept 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sept 30, 2020
Return on average assets

 

0.82

%

 

0.87

%

 

0.68

%

 

0.69

%

 

0.93

%

 

0.98

%

 

0.83

%

Return on average equity

 

9.12

%

 

9.21

%

 

7.66

%

 

7.87

%

 

10.29

%

 

10.65

%

 

9.21

%

Net interest rate spread

 

2.43

%

 

2.71

%

 

2.34

%

 

2.29

%

 

2.49

%

 

2.61

%

 

2.52

%

Net yield on interest earning assets

 

2.58

%

 

2.89

%

 

2.48

%

 

2.44

%

 

2.64

%

 

2.76

%

 

2.69

%

Operating expenses to average assets

 

1.76

%

 

1.87

%

 

1.86

%

 

1.72

%

 

1.67

%

 

1.67

%

 

1.79

%

Efficiency ratio

 

60.72

%

 

60.03

%

 

67.08

%

 

63.98

%

 

57.44

%

 

54.82

%

 

60.94

%

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

 

0.84

%

 

0.88

%

 

0.84

%

 

0.84

%

 

0.82

%

 

0.89

%

 

0.88

%

Loan loss reserve to total loans, net

 

1.00

%

 

0.87

%

 

1.00

%

 

0.95

%

 

0.92

%

 

0.87

%

 

0.87

%

Stockholders' equity to assets

 

9.04

%

 

9.20

%

 

9.04

%

 

8.94

%

 

8.90

%

 

9.11

%

 

9.20

%

 
 
Selected Consolidated Financial Data Sept 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sept 30, 2020
Total assets

$

892,639

 

$

904,670

 

$

904,515

 

$

873,410

 

$

854,876

 

Cash & investment securities

 

227,857

 

 

225,490

 

 

220,822

 

 

170,640

 

 

127,951

 

Mortgage-backed securities

 

83,412

 

 

76,177

 

 

71,683

 

 

70,895

 

 

81,851

 

Total Investments

 

311,269

 

 

301,667

 

 

292,505

 

 

241,535

 

 

209,802

 

Consumer Loans receivable

 

291,817

 

 

303,367

 

 

316,840

 

 

339,951

 

 

358,472

 

Commercial Loans receivable

 

250,627

 

 

254,856

 

 

244,148

 

 

237,908

 

 

226,239

 

SBA Paycheck Protection Program (PPP)

 

7,782

 

 

13,069

 

 

18,029

 

 

20,990

 

 

27,459

 

Loan loss reserve

 

(5,520

)

 

(5,422

)

 

(5,320

)

 

(5,235

)

 

(5,308

)

Total Loans receivable net

 

544,706

 

 

565,870

 

 

573,697

 

 

593,614

 

 

606,862

 

Total Loans held for sale

 

466

 

 

192

 

 

939

 

 

720

 

 

-

 

FHLB stock

 

3,583

 

 

3,955

 

 

4,281

 

 

4,310

 

 

4,463

 

Checking accounts

 

273,274

 

 

269,246

 

 

270,878

 

 

257,227

 

 

231,068

 

Savings accounts

 

299,306

 

 

293,948

 

 

281,350

 

 

256,721

 

 

252,117

 

Certificate of deposit accounts

 

153,356

 

 

159,271

 

 

165,310

 

 

168,577

 

 

174,545

 

Total Deposits

 

725,936

 

 

722,465

 

 

717,538

 

 

682,525

 

 

657,730

 

Advances

 

77,558

 

 

89,357

 

 

95,043

 

 

100,173

 

 

109,684

 

Total stockholders' equity

 

80,702

 

 

80,845

 

 

80,467

 

 

79,524

 

 

78,631

 

 

Contacts

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

Contacts

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