Harleysville Financial Corporation Announces Earnings for the Fiscal Year Ended September 30, 2024, and the Declaration of 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 $.31 per share on the Company’s common stock. The cash dividend will be payable on November 13, 2024 to stockholders of record on October 30, 2024.

Net income for the twelve months ended September 30, 2024 amounted to $8,860,000 or $2.43 per diluted share compared to $12,223,000 or $3.29 per diluted share for the twelve months ended September 30, 2023.

Net income for the fourth quarter of fiscal year 2024 amounted to $2,051,000 or $.56 per diluted share compared to $3,018,000 or $.82 per diluted share for the fourth quarter of fiscal year 2023.

Commenting on the year-end operating results, President and Chief Executive Officer Brendan J. McGill said, “We are pleased to report solid earnings for the fiscal year 2024 of $8,860,000; despite the margin compression the banking industry experienced over the year. We feel our balance sheet is strong, as a result of positive financial results in loan growth, increase in deposit accounts, a strong efficiency ratio, and improvement to our asset quality.

As we enter the early stages of a declining interest rate environment, we will be 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. I am proud of the work ethic of our team members and the way they serve our customers. These results reflect our discipline 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 $863.0 million compared to $842.3 million a year ago. Stockholders’ book value increased 0.3% to $23.83 per share from $23.76 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, 2024
(Dollars in thousands except per share data)	Year-To-Date
( Unaudited)	Twelve Months Ended:						Three Months Ended:
Selected Consolidated Earnings Data	Sep 30, 2024			Sep 30, 2023			Sep 30, 2024			June 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023
Total interest income	$	37,796		$	34,232		$	9,797		$	9,555		$	9,268		$	9,176		$	8,728
Total interest expense		12,478			3,876			3,681			3,261			2,984			2,552			1,664
Net Interest Income		25,318			30,356			6,116			6,294			6,284			6,624			7,064
Provision for loan losses		71			-			46			13			4			8			(595	)
Net Interest Income after Provision for Loan Losses		25,247			30,356			6,070			6,281			6,280			6,616			7,659
Bank owned life insurance		403			396			102			99			100			102			101
Other income		2,188			2,309			572			550			486			580			617
Total other expenses		16,469			16,689			4,161			4,228			4,110			3,971			4,317
Income before income taxes		11,369			16,372			2,583			2,702			2,756			3,327			4,060
Income tax expense		2,509			4,149			532			516			644			817			1,042
Net Income	$	8,860		$	12,223		$	2,051		$	2,186		$	2,112		$	2,510		$	3,018
Per Common Share Data
Basic earnings	$	2.43		$	3.31		$	0.56		$	0.60		$	0.58		$	0.69		$	0.82
Diluted earnings	$	2.43		$	3.29		$	0.56		$	0.60		$	0.58		$	0.69		$	0.82
Dividends	$	1.23		$	1.19		$	0.31		$	0.31		$	0.31		$	0.30		$	0.30
Special Dividend	$	1.20		$	1.16		$	-		$	-		$	-		$	1.20		$	-
Tangible book value	$	23.83		$	23.76		$	23.83		$	23.65		$	23.34		$	23.05		$	23.76
Shares outstanding		3,637,748			3,670,488			3,637,748			3,626,559			3,635,367			3,646,269			3,670,488
Average shares outstanding - basic		3,639,171			3,695,353			3,636,212			3,632,261			3,644,446			3,643,746			3,661,248
Average shares outstanding - diluted		3,647,636			3,715,653			3,643,915			3,640,387			3,653,117			3,652,493			3,674,442
	Year-To-Date
	Twelve Months Ended:						Three Months Ended:
Other Selected Consolidated Data	Sep 30, 2024			Sep 30, 2023			Sep 30, 2024			June 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023
Return on average assets		1.04	%		1.43	%		0.95	%		1.02	%		0.99	%		1.18	%		1.44	%
Return on average equity		10.40	%		14.49	%		9.53	%		10.28	%		10.04	%		11.79	%		14.07	%
Net interest rate spread		2.61	%		3.49	%		2.42	%		2.58	%		2.62	%		2.83	%		3.20	%
Net yield on interest earning assets		3.03	%		3.63	%		2.90	%		3.01	%		3.02	%		3.19	%		3.45	%
Operating expenses to average assets		1.93	%		1.96	%		1.93	%		1.98	%		1.93	%		1.87	%		2.06	%
Efficiency ratio		59.01	%		50.48	%		61.28	%		60.89	%		59.82	%		54.35	%		55.47	%
Ratio of non-performing loans to total assets at end of period		0.17	%		0.31	%		0.17	%		0.20	%		0.21	%		0.28	%		0.31	%
Loan loss reserve to total loans, net		0.69	%		0.77	%		0.69	%		0.69	%		0.71	%		0.71	%		0.77	%
Stockholders' equity to assets		10.04	%		10.35	%		10.04	%		9.93	%		10.01	%		9.85	%		10.35	%
Selected Consolidated Financial Data	Sep 30, 2024			June 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023
Total assets	$	862,988		$	863,899		$	847,416		$	853,315		$	842,274
Cash & investment securities		16,525			22,892			20,853			23,626			22,168
Mortgage-backed securities		127,523			132,621			138,072			142,677			147,821
Total Investments		144,048			155,513			158,925			166,303			169,989
Consumer Loans receivable		340,618			335,802			325,483			325,654			318,349
Commercial Loans receivable		343,346			337,872			329,235			327,093			320,384
Loan loss reserve		(4,714	)		(4,668	)		(4,662	)		(4,663	)		(4,919	)
Total Loans receivable net		679,250			669,006			650,056			648,084			633,814
FHLB stock		5,501			5,366			4,813			5,550			5,144
Checking accounts		255,472			255,110			264,294			266,353			272,835
Savings accounts		208,491			223,101			229,208			239,496			257,246
Certificate of deposit accounts		201,424			180,007			166,664			140,194			117,687
Total Deposits		665,387			658,218			660,166			646,043			647,768
Advances		102,273			108,078			92,757			113,430			98,045
Total stockholders' equity		86,686			85,765			84,837			84,039			87,213