Harleysville Financial Corporation Announces Regular Cash Dividend and Second Quarter Earnings for Fiscal Year 2019

Harleysville Financial Corporation (OTCQX:HARL) reported today that the Companys board of directors declared a regular quarterly cash dividend of $.25 per share on the Companys common stock. The cash dividend will be payable on May 15, 2019 to stockholders of record on May 1, 2019.

Net income for the second quarter was $2,103,000 or $.55 per diluted share compared to $1,579,000 or $.41 per diluted share for the same quarter last year.

Net income for the six months ended March 31, 2019 amounted to $4,266,000 or $1.12 per diluted share compared to $3,032,000 or $.79 per diluted share for the same six-month period a year ago.

Brendan J. McGill, President and Chief Executive Officer of the Company, stated, We are pleased with our solid second quarter results. We continue to build relationships with small businesses and customers wanting to establish loans and their checking and savings accounts with a locally owned and managed community bank.

Between the overall strength of our balance sheet and the work ethic of our highly engaged team members, we are looking forward to continuing to create value for our stakeholders.

The Companys assets totaled $793.3 million compared to $774.0 million a year ago. Stockholders tangible book value increased 5.9% to $19.71 per share from $18.62 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 March 31, 2019
(Dollars in thousands except per share data)   Year-To-Date                            

(Unaudited)

Six Months Ended:   Three Months Ended:
 

Selected Consolidated Earnings Data

Mar 31, 2019

Mar 31, 2018

Mar 31, 2019

Dec 31, 2018

Sept 30, 2018

 

Jun 30, 2018

Mar 31, 2018

Total interest income $ 15,728 $ 14,846 $ 7,875 $ 7,853 $ 7,767 $ 7,716 $ 7,428
Total interest expense   3,381  

 

  3,513     1,712     1,669     1,629     1,625     1,685  
 
Net Interest Income 12,347 11,333 6,163 6,184 6,138 6,091 5,743
Provision for loan losses   552     475     192     360     205     360     300  
Net Interest Income after Provision for Loan Losses   11,795     10,858     5,971     5,824     5,933     5,731     5,443  
 
Gain on sale of investments 144 144
Gain on sale of real estate owned 467 304 67 400
Bank owned life insurance 199 197 99 100 99 97 98
Other income 1,025 1,007 491 534 554 608 507
Total other expenses   7,683     7,679     3,903     3,780     3,855     3,865     3,959  
 
Income before income taxes 5,947 4,687 2,869 3,078 2,731 2,571 2,089
Income tax expense   1,681     1,655     766     915     628     596     510  
 
Net Income $ 4,266   $ 3,032   $ 2,103   $ 2,163   $ 2,103   $ 1,975   $ 1,579  
 
 
Per Common Share Data
Basic earnings $ 1.14 $ 0.81 $ 0.56 $ 0.58 $ 0.56 $ 0.52 $ 0.42
Diluted earnings $ 1.12 $ 0.79 $ 0.55 $ 0.57 $ 0.55 $ 0.51 $ 0.41
Dividends $ 0.48 $ 0.45 $ 0.25 $ 0.23 $ 0.23 $ 0.23 $ 0.23
Tangible book value $ 19.71 $ 18.62 $ 19.71 $ 19.50 $ 19.19 $ 18.84 $ 18.62
Shares outstanding 3,770,651 3,778,235 3,770,651 3,746,202 3,744,046 3,748,600 3,778,235
Average shares outstanding – basic 3,750,691 3,769,006 3,754,634 3,746,832 3,748,773 3,752,604 3,774,263
Average shares outstanding – diluted 3,823,721 3,854,928 3,826,397 3,821,791 3,832,713 3,834,170 3,862,190
 
 
 
Year-To-Date                            
Six Months Ended:   Three Months Ended:
Other Selected Consolidated Data

Mar 31, 2019

Mar 31, 2018

Mar 31, 2019

Dec 31, 2018

Sept 30, 2018

 

Jun 30, 2018

Mar 31, 2018

Return on average assets 1.10 % 0.79 % 1.08 % 1.12 % 1.08 % 1.01 % 0.82 %
Return on average equity 11.71 % 8.73 % 11.45 % 11.98 % 11.84 % 11.27 % 9.05 %
Net interest rate spread 3.08 % 2.86 % 3.06 % 3.09 % 3.05 % 3.03 % 2.90 %
Net yield on interest earning assets 3.26 % 3.03 % 3.24 % 3.28 % 3.23 % 3.20 % 3.07 %
Operating expenses to average assets 1.98 % 2.00 % 2.01 % 1.96 % 1.98 % 1.99 % 2.07 %
Efficiency ratio 54.73 % 59.83 % 57.24 % 52.36 % 56.77 % 56.88 % 62.37 %
Ratio of non-performing loans to total
assets at end of period 1.16 % 1.54 % 1.16 % 1.19 % 1.34 % 1.40 % 1.54 %
Loan loss reserve to total loans, net 0.70 % 0.71 % 0.70 % 0.67 % 0.63 % 0.73 % 0.71 %
Stockholders’ equity to assets 9.37 % 9.09 % 9.37 % 9.47 % 9.34 % 9.03 % 9.09 %
 
                         
Selected Consolidated Financial Data

Mar 31, 2019

Dec 31, 2018

Sept 30, 2018

Jun 30, 2018

Mar 31, 2018

Total assets $ 793,265 $ 771,816 $ 768,865 $ 781,893 $ 773,975
Cash & investment securities 49,086 31,796 27,296 33,117 39,964
Mortgage-backed securities 90,019 83,786 88,698 94,486 100,408
Total Investments 139,105 115,582

 

115,994 127,603 140,372
Consumer Loans receivable 413,553 417,259 417,093 416,714 407,881
Commercial Loans receivable 209,323 207,675 202,728 206,064 194,018
Loan loss reserve (4,343 ) (4,155 ) (3,922 ) (4,547 ) (4,262 )
Total Loans receivable net 618,533 620,779 615,899 618,231 597,637
FHLB stock 5,094 4,838 5,286 5,176 5,150
Checking accounts 183,566 181,491 172,431 179,481 178,863
Savings accounts 218,788 216,940 220,159 231,534 229,764
Certificate of deposit accounts 196,532 189,629 189,488 178,782 175,052
Total Deposits 598,886 588,060 582,078 589,797 583,679
Advances 111,469 103,195 108,516 110,231 112,325
Total stockholders’ equity 74,317 73,058 71,838 70,615 70,339

M. Shane Michalak
Senior Vice President/CFO
215-256-8828