Harleysville Financial Corporation Reports First Fiscal Quarter 2026 Results, Highlights 33% Net Income Increase Year-Over-Year and a 6.1% Increase of the 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 $.35 per share on the Company’s common stock. This represents an increase of 6.1% or $.02 per share from the previous dividend. The cash dividend will be payable on February 25, 2026 to stockholders of record on February 11, 2026.

Net income for the quarter ended December 31, 2025 was $2,667,000 or $.74 per diluted share compared to $2,006,000 or $.55 per diluted share for the same quarter last year.

President and Chief Executive Officer, Brendan J. McGill stated, “We are very pleased with our growth this quarter, which saw our net income increase by 33% compared to the same period last year. This performance was driven by steady loan growth, expansion in our investment portfolio and our unwavering commitment to asset quality.

I am proud of the performance of our team, whose focus on delivering products and services has been instrumental in helping our customers achieve their goals. Furthermore, recognizing the importance of our dividend to stockholders, we are pleased to create additional value by increasing the cash dividend to $.35 per share.”

The Company’s assets totaled $940.1 million compared to $861.3 million a year ago, and stockholders’ tangible book value increased to $25.67 per share from $24.13 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 December 31, 2025
(Dollars in thousands except per share data)
( Unaudited)	Three Months Ended:
Selected Consolidated Earnings Data	Dec 31, 2025			Sep 30, 2025			June 30, 2025			Mar 31, 2025			Dec 31, 2024
Total interest income	$	11,339		$	11,038		$	10,325		$	9,745		$	9,812
Total interest expense		3,799			3,698			3,324			3,274			3,613
Net Interest Income		7,540			7,340			7,001			6,471			6,199
Provision for loan losses		41			(84	)		118			(28	)		148
Net Interest Income after Provision for Loan Losses		7,499			7,424			6,883			6,499			6,051
Bank owned life insurance		106			105			101			103			105
Other income		576			592			557			572			554
Total other expenses		4,558			4,370			4,297			4,434			4,044
Income before income taxes		3,623			3,751			3,244			2,740			2,666
Income tax expense		956			884			713			610			660
Net Income	$	2,667		$	2,867		$	2,531		$	2,130		$	2,006
Per Common Share Data
Basic earnings	$	0.74		$	0.80		$	0.70		$	0.59		$	0.55
Diluted earnings	$	0.74		$	0.77		$	0.70		$	0.59		$	0.55
Dividends	$	0.33		$	0.33		$	0.33		$	0.33		$	0.31
Tangible book value	$	25.67		$	25.25		$	24.80		$	24.40		$	24.13
Shares outstanding		3,587,996			3,587,377			3,589,883			3,605,824			3,628,170
Average shares outstanding - basic		3,587,579			3,589,417			3,591,861			3,624,490			3,634,394
Average shares outstanding - diluted		3,604,675			3,719,559			3,597,353			3,631,337			3,641,435
	Three Months Ended:
Other Selected Consolidated Data	Dec 31, 2025			Sep 30, 2025			June 30, 2025			Mar 31, 2025			Dec 31, 2024
Return on average assets		1.14	%		1.25	%		1.14	%		0.99	%		0.93	%
Return on average equity		11.72	%		12.82	%		11.49	%		9.66	%		9.24	%
Net interest rate spread		2.87	%		2.83	%		2.80	%		2.63	%		2.47	%
Net yield on interest earning assets		3.29	%		3.26	%		3.22	%		3.07	%		2.95	%
Operating expenses to average assets		1.95	%		1.90	%		1.94	%		2.06	%		1.88	%
Efficiency ratio		55.43	%		54.37	%		56.10	%		62.05	%		58.97	%
Ratio of non-performing loans to total
assets at end of period		0.15	%		0.09	%		0.11	%		0.14	%		0.18	%
Loan loss reserve to total loans, net		0.69	%		0.68	%		0.70	%		0.69	%		0.70	%
Stockholders' equity to assets		9.80	%		9.76	%		9.87	%		10.10	%		10.16	%
Selected Consolidated Financial Data	Dec 31, 2025			Sep 30, 2025			June 30, 2025			Mar 31, 2025			Dec 31, 2024
Total assets	$	940,059		$	928,042		$	901,837		$	871,430		$	861,327
Cash & investment securities		12,469			12,030			14,901			13,577			14,198
Mortgage-backed securities		183,283			164,769			142,550			125,115			124,774
Total Investments		195,752			176,799			157,451			138,692			138,972
Consumer Loans receivable		343,646			348,499			344,494			341,850			341,175
Commercial Loans receivable		364,179			364,896			364,488			357,076			348,424
Loan loss reserve		(4,869	)		(4,841	)		(4,949	)		(4,828	)		(4,854	)
Total Loans receivable net		702,956			708,554			704,033			694,098			684,745
FHLB stock		7,054			7,507			5,435			3,874			3,909
Checking accounts		263,948			254,881			264,641			266,215			259,589
Savings accounts		201,898			205,057			207,953			214,159			206,369
Certificate of deposit accounts		215,601			212,064			217,567			216,918			224,273
Total Deposits		681,447			672,002			690,161			697,292			690,231
Advances		156,666			155,408			110,853			74,016			74,585
Total stockholders' equity		92,110			90,577			89,035			87,986			87,552