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Harleysville Financial Corporation Announces Record Earnings for the Fiscal Year Ended September 30, 2018 and the Declaration of Regular Cash Dividend

Company Release - 10/17/2018 11:16 AM ET

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 $.23 per share on the Company’s common stock. The cash dividend will be payable on November 14, 2018 to stockholders of record on October 31, 2018.

Net income for the twelve months ended September 30, 2018 amounted to $7,110,000 or $1.85 per diluted share compared to $5,650,000 or $1.48 per diluted share for the twelve months ended September 30, 2017.

Net income for the fourth quarter of fiscal year 2018 amounted to $2,103,000 or $.55 per diluted share compared to $1,504,000 or $.39 per diluted share for the fourth quarter of fiscal year 2017.

Commenting on the year-end operating results, President and Chief Executive Officer Brendan J. McGill said, “We are extremely pleased with the financial results which include loan growth, increase in transaction accounts, improvement in the efficiency ratio and improvement in the interest rate spread. I am very proud of the work ethic of our team members and the manner in which they serve our customers. All these conditions combined create a strong community bank that is well positioned to continue to create value for our stakeholders. We are pleased to report record earnings for the fiscal year ended 2018 of $7,110,000. 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 $768.9 million compared to $762.9 million a year ago. Stockholders’ book value increased 4.69% to $19.19 per share from $18.33 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 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, 2018
 
(Dollars in thousands except per share data) Year-To-Date                  
( Unaudited) Twelve Months Ended: Three Months Ended:
 
Selected Consolidated Earnings Data

Sept 30,
2018

Sept 30,
2017

Sept 30,
2018

Jun 30,
2018

Mar 31,
2018

Dec 31,
2017

Sept 30,
2017

Total interest income $ 30,329 $ 28,560 $ 7,767 $ 7,716 $ 7,428 $ 7,418 $ 7,326
Total interest expense   6,767     7,496     1,629     1,625     1,685     1,828     1,832  
 
Net Interest Income 23,562 21,064 6,138 6,091 5,743 5,590 5,494
Provision for loan losses   1,040     664     205     360     300     175     175  
Net Interest Income after Provision for Loan Losses   22,522     20,400     5,933     5,731     5,443     5,415     5,319  
 
Gain on sale of investments - 173 - - - - -
Gain on sale of real estate owned 304 55 - - - 304 -
Bank owned life insurance 393 391 99 97 98 99 99
Other income 2,169 1,982 554 608 507 500 494
Total other expenses   15,399     14,611     3,855     3,865     3,959     3,720     3,687  
 
Income before income taxes 9,989 8,390 2,731 2,571 2,089 2,598 2,225
Income tax expense   2,879     2,740     628     596     510     1,145     721  
 
Net Income $ 7,110   $ 5,650   $ 2,103   $ 1,975   $ 1,579   $ 1,453   $ 1,504  
 
 
Per Common Share Data
Basic earnings $ 1.89 $ 1.51 $ 0.56 $ 0.52 $ 0.42 $ 0.39 $ 0.40
Diluted earnings $ 1.85 $ 1.48 $ 0.55 $ 0.51 $ 0.41 $ 0.38 $ 0.39
Dividends $ 0.91 $ 0.87 $ 0.23 $ 0.23 $ 0.23 $ 0.22 $ 0.22
Tangible book value $ 19.19 $ 18.33 $ 19.19 $ 18.84 $ 18.62 $ 18.48 $ 18.33
Shares outstanding 3,744,046 3,759,637 3,744,046 3,748,600 3,778,235 3,769,277 3,759,637
Average shares outstanding - basic 3,759,817 3,730,021 3,748,773 3,752,604 3,774,263 3,763,863 3,757,691
Average shares outstanding - diluted 3,844,533 3,818,833 3,832,713 3,834,170 3,862,190 3,846,687 3,848,906
 
 
 
Year-To-Date                  
Twelve Months Ended: Three Months Ended:
Other Selected Consolidated Data

Sept 30,
2018

Sept 30,
2017

Sept 30,
2018

Jun 30,
2018

Mar 31,
2018

Dec 31,
2017

Sept 30,
2017

Return on average assets 0.92 % 0.74 % 1.08 % 1.01 % 0.82 % 0.76 % 0.78 %
Return on average equity 10.16 % 8.43 % 11.84 % 11.27 % 9.05 % 8.42 % 8.81 %
Net interest rate spread 2.95 % 2.65 % 3.05 % 3.03 % 2.90 % 2.81 % 2.70 %
Net yield on interest earning assets 3.12 % 2.83 % 3.23 % 3.20 % 3.07 % 2.99 % 2.90 %
Operating expenses to average assets 2.00 % 1.91 % 1.98 % 1.99 % 2.07 % 1.94 % 1.90 %
Efficiency ratio 58.33 % 62.20 % 56.77 % 56.88 % 62.37 % 57.29 % 60.57 %

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

1.34 % 1.53 % 1.34 % 1.40 % 1.54 % 1.35 % 1.53 %
Loan loss reserve to total loans, net 0.63 % 0.69 % 0.63 % 0.73 % 0.71 % 0.67 % 0.69 %
Stockholders' equity to assets 9.34 % 9.03 % 9.34 % 9.03 % 9.09 % 9.00 % 9.03 %
 
                 
Selected Consolidated Financial Data

Sept 30,
2018

 

Jun 30,
2018

 

Mar 31,
2018

 

Dec 31,
2017

 

Sept 30,
2017

Total assets $ 768,865 $ 781,893 $ 773,975 $ 773,555 $ 762,894
Cash & investment securities 27,296 33,117 39,964 43,856 28,917
Mortgage-backed securities 88,698 94,486 100,408 106,258 112,699
Total Investments 115,994 127,603

 

140,372 150,114 141,616
Consumer Loans receivable 417,093 416,714 407,881 405,411 407,461
Commercial Loans receivable 202,728 206,064 194,018 186,189 181,045
Loan loss reserve (3,922 ) (4,547 ) (4,262 ) (3,966 ) (4,063 )
Total Loans receivable net 615,899 618,231 597,637 587,634 584,443
FHLB stock 5,286 5,176 5,150 4,954 5,384
Checking accounts 172,431 179,481 178,863 173,623 167,100
Savings accounts 220,159 231,534 229,764 225,830 235,147
Certificate of deposit accounts 189,488 178,782 175,052 164,670 146,508
Total Deposits 582,078 589,797 583,679 564,123 548,755
Advances 108,516 110,231 112,325 131,403 136,958
Total stockholders' equity 71,838 70,615 70,339 69,644 68,900
 

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

Source: Harleysville Financial Corporation

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