Harleysville Financial Corporation Announces Record Earnings for the Fiscal Year Ended September 30, 2023, 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 $.30 per share on the Company’s common stock. The cash dividend will be payable on November 15, 2023 to stockholders of record on November 1, 2023.

Net income for the twelve months ended September 30, 2023 amounted to $12,223,000 or $3.29 per diluted share compared to $8,790,000 or $2.34 per diluted share for the twelve months ended September 30, 2022.

Net income for the fourth quarter of fiscal year 2023 amounted to $3,018,000 or $.82 per diluted share compared to $2,892,000 or $.77 per diluted share for the fourth quarter of fiscal year 2022. Due to a decrease in qualitative factors in the Allowance for Credit Losses calculation, there was a reduction in our provision for loan losses of $595,000 included in our twelve months and three months ended September 30, 2023.

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 2023 of $12,223,000, which represents a 39% increase over prior year.

We continued to generate strong earnings in the fourth quarter of fiscal 2023, despite seeing margin compression due to cost of funding increasing on deposits as well as borrowings. We anticipate additional margin compression in the coming fiscal year. We feel our balance sheet is strong. We are being intentional when it comes to pricing our loan and deposit products while still providing our customers with competitive rates, they have come to expect from us. We will continue to navigate the uncertain economic environment adhering 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 $842.3 million compared to $912.1 million a year ago. Stockholders’ book value increased 4.16% to $23.76 per share from $22.81 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, 2023
 
(Dollars in thousands except per share data) Year-To-Date
(Unaudited) Twelve Months Ended: Three Months Ended:
 
Selected Consolidated Earnings Data

Sep 30,

2023

Sep 30,

2022

Sep 30,

2023

June 30,

2023

Mar 31,

2023

Dec 31,

2022

Sept 30,

2022

Total interest income

$

34,232

 

$

27,315

 

$

8,728

 

$

8,395

 

$

8,473

 

$

8,636

 

$

7,991

 

Total interest expense

 

3,876

 

 

3,157

 

 

1,664

 

 

874

 

 

701

 

 

637

 

 

667

 

 
Net Interest Income

 

30,356

 

 

24,158

 

 

7,064

 

 

7,521

 

 

7,772

 

 

7,999

 

 

7,324

 

Provision for loan losses

 

-

 

 

280

 

 

(595

)

 

146

 

 

220

 

 

229

 

 

150

 

Net Interest Income after Provision for Loan Losses

 

30,356

 

 

23,878

 

 

7,659

 

 

7,375

 

 

7,552

 

 

7,770

 

 

7,174

 

 
Gain on sales of loans

 

-

 

 

21

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Bank owned life insurance

 

396

 

 

389

 

 

101

 

 

97

 

 

98

 

 

100

 

 

98

 

Other income

 

2,309

 

 

2,583

 

 

617

 

 

593

 

 

555

 

 

544

 

 

649

 

Total other expenses

 

16,689

 

 

15,374

 

 

4,317

 

 

4,325

 

 

4,114

 

 

3,933

 

 

4,094

 

 
Income before income taxes

 

16,372

 

 

11,497

 

 

4,060

 

 

3,740

 

 

4,091

 

 

4,481

 

 

3,827

 

Income tax expense

 

4,149

 

 

2,707

 

 

1,042

 

 

939

 

 

1,018

 

 

1,150

 

 

935

 

 
Net Income

$

12,223

 

$

8,790

 

$

3,018

 

$

2,801

 

$

3,073

 

$

3,331

 

$

2,892

 

 
 
Per Common Share Data
Basic earnings

$

3.31

 

$

2.36

 

$

0.82

 

$

0.76

 

$

0.83

 

$

0.90

 

$

0.78

 

Diluted earnings

$

3.29

 

$

2.34

 

$

0.82

 

$

0.76

 

$

0.82

 

$

0.89

 

$

0.77

 

Dividends

$

1.19

 

$

1.15

 

$

0.30

 

$

0.30

 

$

0.30

 

$

0.29

 

$

0.29

 

Special Dividend

$

1.16

 

$

-

 

$

-

 

$

-

 

$

-

 

$

1.16

 

$

-

 

Tangible book value

$

23.76

 

$

22.81

 

$

23.76

 

$

23.26

 

$

22.79

 

$

22.27

 

$

22.81

 

Shares outstanding

 

3,670,488

 

 

3,719,141

 

 

3,670,488

 

 

3,663,905

 

 

3,708,367

 

 

3,721,269

 

 

3,719,141

 

Average shares outstanding - basic

 

3,695,353

 

 

3,718,208

 

 

3,661,248

 

 

3,688,845

 

 

3,715,772

 

 

3,715,838

 

 

3,720,147

 

Average shares outstanding - diluted

 

3,715,653

 

 

3,756,246

 

 

3,674,442

 

 

3,706,597

 

 

3,740,421

 

 

3,743,724

 

 

3,751,155

 

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

Sep 30,

2023

Sep 30,

2022

Sep 30,

2023

June 30,

2023

Mar 31,

2023

Dec 31,

2022

Sept 30,

2022

Return on average assets

 

1.43

%

 

0.96

%

 

1.44

%

 

1.35

%

 

1.44

%

 

1.49

%

 

1.25

%

Return on average equity

 

14.49

%

 

10.72

%

 

14.07

%

 

13.24

%

 

14.73

%

 

15.97

%

 

13.82

%

Net interest rate spread

 

3.49

%

 

2.59

%

 

3.20

%

 

3.58

%

 

3.62

%

 

3.57

%

 

3.16

%

Net yield on interest earning assets

 

3.63

%

 

2.69

%

 

3.45

%

 

3.71

%

 

3.72

%

 

3.65

%

 

3.24

%

Operating expenses to average assets

 

1.96

%

 

1.68

%

 

2.06

%

 

2.09

%

 

1.93

%

 

1.76

%

 

1.78

%

Efficiency ratio

 

50.48

%

 

56.67

%

 

55.47

%

 

52.67

%

 

48.83

%

 

45.51

%

 

50.72

%

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

 

0.31

%

 

0.26

%

 

0.31

%

 

0.28

%

 

0.24

%

 

0.28

%

 

0.26

%

Loan loss reserve to total loans, net

 

0.77

%

 

0.89

%

 

0.77

%

 

0.89

%

 

0.91

%

 

0.88

%

 

0.89

%

Stockholders' equity to assets

 

10.35

%

 

9.30

%

 

10.35

%

 

10.27

%

 

10.03

%

 

9.45

%

 

9.30

%

 
 
Selected Consolidated Financial Data

Sep 30,

2023

June 30,

2023

Mar 31,

2023

Dec 31,

2022

Sept 30,

2022

Total assets

$

842,274

 

$

829,933

 

$

842,882

 

$

877,525

 

$

912,127

 

Cash & investment securities

 

22,168

 

 

25,623

 

 

57,163

 

 

94,330

 

 

149,231

 

Mortgage-backed securities

 

147,821

 

 

153,205

 

 

158,731

 

 

163,968

 

 

165,008

 

Total Investments

 

169,989

 

 

178,828

 

 

215,894

 

 

258,298

 

 

314,239

 

Consumer Loans receivable

 

318,349

 

 

305,780

 

 

290,509

 

 

288,912

 

 

275,594

 

Commercial Loans receivable

 

320,384

 

 

314,756

 

 

306,636

 

 

300,109

 

 

291,537

 

Loan loss reserve

 

(4,919

)

 

(5,525

)

 

(5,408

)

 

(5,203

)

 

(5,021

)

Total Loans receivable net

 

633,814

 

 

615,011

 

 

591,737

 

 

583,818

 

 

562,110

 

FHLB stock

 

5,144

 

 

3,024

 

 

2,234

 

 

2,601

 

 

3,049

 

Checking accounts

 

272,835

 

 

286,725

 

 

294,421

 

 

299,974

 

 

305,340

 

Savings accounts

 

257,246

 

 

282,425

 

 

306,226

 

 

318,718

 

 

328,311

 

Certificate of deposit accounts

 

117,687

 

 

110,898

 

 

109,453

 

 

114,913

 

 

122,235

 

Total Deposits

 

647,768

 

 

680,048

 

 

710,100

 

 

733,605

 

 

755,886

 

Advances

 

98,045

 

 

53,245

 

 

38,363

 

 

49,624

 

 

61,858

 

Total stockholders' equity

 

87,213

 

 

85,212

 

 

84,531

 

 

82,884

 

 

84,839

 

 

Contacts

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

Contacts

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