Harleysville Financial Corporation Announces Regular Cash Dividend and Third Quarter Earnings for Fiscal Year 2023

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 $.30 per share on the Company’s common stock. The cash dividend will be payable on August 16, 2023 to stockholders of record on August 2, 2023.

Net income for the third quarter was $2,801,000 or $.76 per diluted share compared to $2,216,000 or $.59 per diluted share for the same quarter last year.

Net income for the nine months ended June 30, 2023 amounted to $9,205,000 or $2.47 per diluted share compared to $5,898,000 or $1.57 per diluted share for the same nine-month period a year ago.

“We were able to benefit from the rising rate environment and are pleased with our financial results for the quarter and nine months ended,” stated Brendan J. McGill, President, and Chief Executive Officer of the Company. McGill continued, “Asset quality and capital levels remain strong as we continue to navigate the changing economic and rate environment with discipline, ensuring we remain a competitive and an attractive option to our existing and prospective customers.”

The Company’s assets totaled $829.9 million compared to $928.7 million a year ago. Stockholders’ tangible book value increased 4.2% to $23.26 per share from $22.33 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, 2023
(Dollars in thousands except per share data)	Year-To-Date
(Unaudited)	Nine Months Ended:						Three Months Ended:
Selected Consolidated Earnings Data	Jun 30, 2023			Jun 30, 2022			June 31, 2023			Mar 31, 2023			Dec 31, 2022			Sept 30, 2022			Jun 30, 2022
Total interest income	$	25,504		$	19,324		$	8,395		$	8,473		$	8,636		$	7,991		$	6,677
Total interest expense		2,212			2,490			874			701			637			667			699
Net Interest Income		23,292			16,834			7,521			7,772			7,999			7,324			5,978
Provision for loan losses		595			130			146			220			229			150			70
Net Interest Income after Provision for Loan Losses		22,697			16,704			7,375			7,552			7,770			7,174			5,908
Gain on sales of loans		-			21			-			-			-			-			-
Bank owned life insurance		295			291			97			98			100			98			96
Other income		1,692			1,934			593			555			544			649			669
Total other expenses		12,372			11,280			4,325			4,114			3,933			4,094			3,877
Income before income taxes		12,312			7,670			3,740			4,091			4,481			3,827			2,796
Income tax expense		3,107			1,772			939			1,018			1,150			935			580
Net Income	$	9,205		$	5,898		$	2,801		$	3,073		$	3,331		$	2,892		$	2,216
Per Common Share Data
Basic earnings	$	2.48		$	1.59		$	0.76		$	0.83		$	0.90		$	0.78		$	0.60
Diluted earnings	$	2.47		$	1.57		$	0.76		$	0.82		$	0.89		$	0.77		$	0.59
Dividends	$	0.89		$	0.86		$	0.30		$	0.30		$	0.29		$	0.29		$	0.29
Special Dividend	$	1.16		$	-		$	-		$	-		$	1.16		$	-		$	-
Tangible book value	$	23.26		$	22.33		$	23.26		$	22.79		$	22.27		$	22.81		$	22.33
Shares outstanding		3,663,905			3,721,332			3,663,905			3,708,367			3,721,269			3,719,141			3,721,332
Average shares outstanding - basic		3,706,846			3,717,555			3,688,845			3,715,772			3,715,838			3,720,147			3,721,352
Average shares outstanding - diluted		3,729,231			3,757,711			3,706,597			3,740,421			3,743,724			3,751,155			3,758,018
	Year-To-Date
	Nine Months Ended:						Three Months Ended:
Other Selected Consolidated Data	Jun 30, 2023			Jun 30, 2022			June 31, 2023			Mar 31, 2023			Dec 31, 2022			Sept 30, 2022			Jun 30, 2022
Return on average assets		1.43	%		0.86	%		1.35	%		1.44	%		1.49	%		1.25	%		0.96	%
Return on average equity		14.65	%		9.65	%		13.24	%		14.73	%		15.97	%		13.82	%		10.77	%
Net interest rate spread		3.59	%		2.40	%		3.58	%		3.62	%		3.57	%		3.16	%		2.56	%
Net yield on interest earning assets		3.69	%		2.50	%		3.71	%		3.72	%		3.65	%		3.24	%		2.64	%
Operating expenses to average assets		1.93	%		1.65	%		2.09	%		1.93	%		1.76	%		1.78	%		1.68	%
Efficiency ratio		48.94	%		59.19	%		52.67	%		48.83	%		45.51	%		50.72	%		57.49	%
Ratio of non-performing loans to total assets at end of period		0.28	%		0.47	%		0.28	%		0.24	%		0.28	%		0.26	%		0.47	%
Loan loss reserve to total loans, net		0.89	%		0.84	%		0.89	%		0.91	%		0.88	%		0.89	%		0.84	%
Stockholders' equity to assets		10.27	%		8.95	%		10.27	%		10.03	%		9.45	%		9.30	%		8.95	%
Selected Consolidated Financial Data	Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sept 30, 2022			Jun 30, 2022
Total assets	$	829,933		$	842,882		$	877,525		$	912,127		$	928,738
Cash & investment securities		25,623			57,163			94,330			149,231			197,572
Mortgage-backed securities		153,205			158,731			163,968			165,008			143,506
Total Investments		178,828			215,894			258,298			314,239			341,078
Consumer Loans receivable		305,780			290,509			288,912			275,594			274,541
Commercial Loans receivable		314,756			306,636			300,109			291,537			282,216
Loan loss reserve		(5,525	)		(5,408	)		(5,203	)		(5,021	)		(4,681	)
Total Loans receivable net		615,011			591,737			583,818			562,110			552,076
FHLB stock		3,024			2,234			2,601			3,049			3,071
Checking accounts		286,725			294,421			299,974			305,340			315,027
Savings accounts		282,425			306,226			318,718			328,311			326,863
Certificate of deposit accounts		110,898			109,453			114,913			122,235			129,738
Total Deposits		680,048			710,100			733,605			755,886			771,628
Advances		53,245			38,363			49,624			61,858			62,101
Total stockholders' equity		85,212			84,531			82,884			84,839			83,112