Harleysville Financial Corporation Announces Regular Cash Dividend and Third Quarter Earnings for Fiscal Year 2026

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. The cash dividend will be payable on August 12, 2026 to stockholders of record on July 29, 2026.

Net income for the third quarter was $2,950,000 or $.83 per diluted share compared to $2,531,000 or $.70 per diluted share for the same quarter last year.

Net income for the nine months ended June 30, 2026 amounted to $9,428,000 or $2.62 per diluted share compared to $6,667,000 or $1.84 per diluted share for the same nine-month period a year ago. Results for the current nine months include non-recurring Bank Owned Life Insurance (“BOLI”) net benefits of $1,139,000 or $0.32 per diluted share. Excluding these BOLI benefits, net income for the nine months was $8,289,000, representing a 24% increase over the same period last year.

Brendan J. McGill, President, and Chief Executive Officer of the Company, stated, “We sustained our robust early-year momentum through the third quarter of fiscal 2026, delivering both continued balance sheet expansion and net interest margin growth. These solid results reflect our disciplined pricing strategies, effective cost management, and the realization of higher yields from asset repricing and production.”

Mr. McGill concluded, “We remain focused on financial discipline, efficient operations, and steady earnings growth. Supported by a strong balance sheet and solid liquidity, we are well-positioned to increase profitability and deliver long-term value to our shareholders.”

The Company’s assets totaled $963.3 million compared to $901.8 million a year ago. Stockholders’ tangible book value increased 8.2% to $26.83 per share from $24.80 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 June 30, 2026
(Dollars in thousands except per share data)	Year-To-Date
(Unaudited)	Nine Months Ended:						Three Months Ended:
Selected Consolidated Earnings Data	Jun 30, 2026			Jun 30, 2025			June 30, 2026			Mar 31, 2026			Dec 31, 2025			Sep 30, 2025			June 30, 2025
Total interest income	$	34,416		$	29,882		$	11,732		$	11,345		$	11,339		$	11,038		$	10,325
Total interest expense		11,237			10,211			3,768			3,670			3,799			3,698			3,324
Net Interest Income		23,179			19,671			7,964			7,675			7,540			7,340			7,001
Provision for loan losses		215			238			-			174			41			(84	)		118
Net Interest Income after Provision for Loan Losses		22,964			19,433			7,964			7,501			7,499			7,424			6,883
Bank owned life insurance		1,670			309			188			1,376			106			105			101
Other income		1,707			1,683			569			562			576			592			557
Total other expenses		14,044			12,775			4,876			4,610			4,558			4,370			4,297
Income before income taxes		12,297			8,650			3,845			4,829			3,623			3,751			3,244
Income tax expense		2,869			1,983			895			1,018			956			884			713
Net Income	$	9,428		$	6,667		$	2,950		$	3,811		$	2,667		$	2,867		$	2,531
Per Common Share Data
Basic earnings	$	2.63		$	1.84		$	0.83		$	1.06		$	0.74		$	0.80		$	0.70
Diluted earnings	$	2.62		$	1.84		$	0.83		$	1.06		$	0.74		$	0.77		$	0.70
Dividends	$	1.03		$	0.97		$	0.35		$	0.35		$	0.33		$	0.33		$	0.33
Tangible book value	$	26.83		$	24.80		$	26.83		$	26.39		$	25.67		$	25.25		$	24.80
Shares outstanding		3,559,108			3,589,883			3,559,108			3,584,924			3,587,996			3,587,377			3,589,883
Average shares outstanding - basic		3,586,761			3,616,307			3,576,347			3,583,788			3,587,579			3,589,417			3,591,861
Average shares outstanding - diluted		3,595,488			3,622,763			3,574,626			3,610,073			3,604,675			3,719,559			3,597,353
	Year-To-Date
	Nine Months Ended:						Three Months Ended:
Other Selected Consolidated Data	Jun 30, 2026			Jun 30, 2025			June 30, 2026			Mar 31, 2026			Dec 31, 2025			Sep 30, 2025			June 30, 2025
Return on average assets		1.33	%		1.02	%		1.23	%		1.61	%		1.14	%		1.25	%		1.14	%
Return on average equity		13.54	%		10.13	%		12.44	%		16.45	%		11.72	%		12.82	%		11.49	%
Net interest rate spread		2.91	%		2.63	%		2.97	%		2.90	%		2.87	%		2.83	%		2.80	%
Net yield on interest earning assets		3.32	%		3.08	%		3.38	%		3.30	%		3.29	%		3.26	%		3.22	%
Operating expenses to average assets		1.97	%		1.96	%		2.03	%		1.95	%		1.95	%		1.90	%		1.94	%
Efficiency ratio		52.88	%		58.97	%		55.91	%		47.96	%		55.43	%		54.37	%		56.10	%
Ratio of non-performing loans to total
assets at end of period		0.11	%		0.11	%		0.11	%		0.11	%		0.15	%		0.09	%		0.11	%
Loan loss reserve to total loans, net		0.70	%		0.70	%		0.70	%		0.70	%		0.69	%		0.68	%		0.70	%
Stockholders' equity to assets		9.91	%		9.87	%		9.91	%		9.88	%		9.80	%		9.76	%		9.87	%
Selected Consolidated Financial Data	Jun 30, 2026			Mar 31, 2026			Dec 31, 2025			Sep 30, 2025			June 30, 2025
Total assets	$	963,272		$	957,738		$	940,059		$	928,042		$	901,837
Cash & investment securities		14,262			11,268			12,469			12,030			14,901
Mortgage-backed securities		202,238			202,145			183,283			164,769			142,550
Total Investments		216,500			213,413			195,752			176,799			157,451
Consumer Loans receivable		339,609			338,202			343,646			348,499			344,494
Commercial Loans receivable		372,891			367,775			364,179			364,896			364,488
Loan loss reserve		(4,976	)		(4,964	)		(4,869	)		(4,841	)		(4,949	)
Total Loans receivable net		707,524			701,013			702,956			708,554			704,033
FHLB stock		6,590			7,183			7,054			7,507			5,435
Checking accounts		264,932			269,691			263,948			254,881			264,641
Savings accounts		211,587			208,990			201,898			205,057			207,953
Certificate of deposit accounts		234,451			223,301			215,601			212,064			217,567
Total Deposits		710,970			701,982			681,447			672,002			690,161
Advances		143,023			149,960			156,666			155,408			110,853
Total stockholders' equity		95,487			94,590			92,110			90,577			89,035