Harleysville Financial Corporation Announces Regular Cash Dividend and Second Quarter Earnings for Fiscal Year 2018

HARLEYSVILLE, Pa.--()--Harleysville Financial Corporation (OTCQX:HARL) reported today that the Company’s board of directors declared a regular quarterly cash dividend of $.23 per share on the Company’s common stock. The cash dividend will be payable on May 16, 2018 to stockholders of record on May 2, 2018.

“We are pleased with our solid second quarter results. We continue to increase the number of relationships with small businesses and customers wanting to establish loans and their checking and savings accounts with a locally owned and managed community bank.”

Net income for the second quarter was $1,579,000 or $.41 per diluted share compared to $1,384,000 or $.36 per diluted share for the same quarter last year.

Net income for the six months ended March 31, 2018 amounted to $3,032,000 or $.79 per diluted share compared to $2,758,000 or $.73 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 increase the number of relationships with small businesses and customers wanting to establish loans and their checking and savings accounts with a locally owned and managed community bank.

“We are pleased with the overall strength of our balance sheet, with the growth that we have seen in our deposit accounts, total loans, tangible book value, earnings per share, and interest rate spread over the prior quarter and prior year amounts.”

The Company’s assets totaled $774.0 million compared to $761.9 million a year ago. Stockholders’ tangible book value increased 3.6% to $18.62 per share from $17.98 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, 2018
(Dollars in thousands except per share data) Year-To-Date  

(Unaudited)

Six Months Ended: Three Months Ended:
 
Selected Consolidated Earnings Data

Mar 31,

2018

Mar 31,

2017

Mar 31,

2018

Dec 31,

2017

Sept 30,

2017

Jun 30,

2017

Mar 31,

2017

Total interest income $ 14,846 $ 14,077 $ 7,428 $ 7,418 $ 7,326 $ 7,157 $ 7,038
Total interest expense   3,513     3,857     1,685     1,828     1,832     1,807     1,921  
 
Net Interest Income 11,333 10,220 5,743 5,590 5,494 5,350 5,117
Provision for loan losses   475     350     300     175     175     139     170  
Net Interest Income after Provision for Loan Losses   10,858     9,870     5,443     5,415     5,319     5,211     4,947  
 
Gain on sale of investments - 173 - - - - 173
Gain on sale of real estate owned 304 55 - 304 - - -
Bank owned life insurance 197 195 98 99 99 97 97
Other income 1,007 977 507 500 494 511 496
Total other expenses   7,679     7,054     3,959     3,720     3,687     3,870     3,656  
 
Income before income taxes 4,687 4,216 2,089 2,598 2,225 1,949 2,057
Income tax expense   1,655     1,458     510     1,145     721     561     673  
 
Net Income $ 3,032   $ 2,758   $ 1,579   $ 1,453   $ 1,504   $ 1,388   $ 1,384  
 
 
Per Common Share Data
Basic earnings $ 0.81 $ 0.74 $ 0.42 $ 0.39 $ 0.40 $ 0.37 $ 0.37
Diluted earnings $ 0.79 $ 0.73 $ 0.41 $ 0.38 $ 0.39 $ 0.36 $ 0.36
Dividends $ 0.45 $ 0.43 $ 0.23 $ 0.22 $ 0.22 $ 0.22 $ 0.22
Tangible book value $ 18.62 $ 17.98 $ 18.62 $ 18.48 $ 18.33 $ 18.14 $ 17.98
Shares outstanding 3,778,235 3,749,078 3,778,235 3,769,277 3,759,637 3,756,177 3,749,078
Average shares outstanding - basic 3,769,006 3,705,712 3,774,263 3,763,863 3,757,691 3,750,666 3,718,269
Average shares outstanding - diluted 3,854,928 3,793,177 3,862,190 3,846,687 3,848,906 3,838,571 3,814,420
 
 
 
Year-To-Date  
Six Months Ended: Three Months Ended:
Other Selected Consolidated Data

Mar 31,

2018

Mar 31,

2017

Mar 31,

2018

Dec 31,

2017

Sept 30,

2017

Jun 30,

2017

Mar 31,

2017

Return on average assets 0.79 % 0.73 % 0.82 % 0.76 % 0.78 % 0.72 % 0.73 %
Return on average equity 8.73 % 8.33 % 9.05 % 8.42 % 8.81 % 8.22 % 8.30 %
Net interest rate spread 2.86 % 2.61 % 2.90 % 2.81 % 2.70 % 2.68 % 2.59 %
Net yield on interest earning assets 3.03 % 2.78 % 3.07 % 2.99 % 2.90 % 2.87 % 2.76 %
Operating expenses to average assets 2.00 % 1.86 % 2.07 % 1.94 % 1.90 % 2.01 % 1.92 %
Efficiency ratio 59.83 % 61.63 % 62.37 % 57.29 % 60.57 % 64.96 % 64.03 %

Ratio of non-performing loans to total assets at end of period

1.54 % 1.58 % 1.54 % 1.35 % 1.53 % 1.57 % 1.58 %
Loan loss reserve to total loans, net 0.71 % 0.75 % 0.71 % 0.67 % 0.69 % 0.73 % 0.75 %
Stockholders' equity to assets 9.09 % 8.85 % 9.09 % 9.00 % 9.03 % 8.71 % 8.85 %
 
 
                                             
Selected Consolidated Financial Data

Mar 31,

2018

   

Dec 31,

2017

   

Sept 30,

2017

   

Jun 30,

2017

   

Mar 31,

2017

Total assets $ 773,975 $ 773,555 $ 762,894 $ 781,807 $ 761,925
Cash & investment securities 39,964 43,856 28,917 54,439 43,010
Mortgage-backed securities 100,408 106,258 112,699 119,461 126,291
Total Investments 140,372 150,114 141,616 173,900 169,301
Consumer Loans receivable 407,881 405,411 407,461 405,196 394,278
Commercial Loans receivable 194,018 186,189 181,045 170,300 166,672
Loan loss reserve (4,262 ) (3,966 ) (4,063 ) (4,193 ) (4,226 )
Total Loans receivable net 597,637 587,634 584,443 571,303 556,724
FHLB stock 5,150 4,954 5,384 5,624 5,229
Checking accounts 178,863 173,623 167,100 171,607 169,165
Savings accounts 229,764 225,830 235,147 239,856 241,183
Certificate of deposit accounts 175,052 164,670 146,508 144,030 139,444
Total Deposits 583,679 564,123 548,755 555,493 549,792
Advances 112,325 131,403 136,958 148,082 135,371
Total stockholders' equity 70,339 69,644 68,900 68,121 67,415
 

Contacts

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

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