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Harleysville Financial Corporation Announces a 8.7% Increase of the Regular Cash Dividend and Earnings for the First Fiscal Quarter 2019

Company Release - 1/23/2019 11:42 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 $.25 per share on the Company’s common stock. This represents an increase of 8.70% or $.02 per share from the previous dividend. The cash dividend will be payable on February 20, 2019 to stockholders of record on February 6, 2019.

Net income for the quarter ended December 31, 2018 was $2,163,000 or $.57 per diluted share compared to $1,453,000 or $.38 per diluted share for the same quarter last year.

President and Chief Executive Officer Brendan J. McGill stated, “Based on the solid financial results of the quarter and our belief that we are positioned for the future, we are pleased that we are able to create additional value for our stockholders by increasing the cash dividend to $.25 per share. We continue to remain focused on increasing core deposit relationships and maintaining a portfolio of quality loans and investments. This should allow us to deliver consistent, ongoing returns for our stockholders.”

The Company’s assets totaled $771.8 million compared to $773.6 million a year ago, and stockholders’ tangible book value increased to $19.50 per share from $18.48 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 December 31, 2018
(Dollars in thousands except per share data)              
(Unaudited) Three Months Ended:
 
Selected Consolidated Earnings Data

Dec 31,
2018

Sept 30,
2018

Jun 30,
2018

Mar 31,
2018

Dec 31,
2017

Total interest income $ 7,853 $ 7,767 $ 7,716 $ 7,428 $ 7,418
Total interest expense   1,669     1,629     1,625     1,685     1,828  
 
Net Interest Income 6,184 6,138 6,091 5,743 5,590
Provision for loan losses   360     205     360     300     175  
Net Interest Income after Provision for Loan Losses   5,824     5,933     5,731     5,443     5,415  
 
Gain on sale of real estate owned 400 - - - 304
Bank owned life insurance 100 99 97 98 99
Other income 534 554 608 507 500
Total other expenses   3,780     3,855     3,865     3,959     3,720  
 
Income before income taxes 3,078 2,731 2,571 2,089 2,598
Income tax expense   915     628     596     510     1,145  
 
Net Income $ 2,163   $ 2,103   $ 1,975   $ 1,579   $ 1,453  
 
 
Per Common Share Data
Basic earnings $ 0.58 $ 0.56 $ 0.52 $ 0.42 $ 0.39
Diluted earnings $ 0.57 $ 0.55 $ 0.51 $ 0.41 $ 0.38
Dividends $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.22
Tangible book value $ 19.50 $ 19.19 $ 18.84 $ 18.62 $ 18.48
Shares outstanding 3,746,202 3,744,046 3,748,600 3,778,235 3,769,277
Average shares outstanding - basic 3,746,832 3,748,773 3,752,604 3,774,263 3,763,863
Average shares outstanding - diluted 3,821,791 3,832,713 3,834,170 3,862,190 3,846,687
 
 
                 
Three Months Ended:
Other Selected Consolidated Data

Dec 31,
2018

Sept 30,
2018

Jun 30,
2018

Mar 31,
2018

Dec 31,
2017

Return on average assets 1.12 % 1.08 % 1.01 % 0.82 % 0.76 %
Return on average equity 11.98 % 11.84 % 11.27 % 9.05 % 8.42 %
Net interest rate spread 3.09 % 3.05 % 3.03 % 2.90 % 2.81 %
Net yield on interest earning assets 3.28 % 3.23 % 3.20 % 3.07 % 2.99 %
Operating expenses to average assets 1.96 % 1.98 % 1.99 % 2.07 % 1.94 %
Efficiency ratio 52.36 % 56.77 % 56.88 % 62.37 % 57.29 %

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

1.19 % 1.34 % 1.40 % 1.54 % 1.35 %
Loan loss reserve to total loans, net 0.67 % 0.63 % 0.73 % 0.71 % 0.67 %
Stockholders' equity to assets 9.47 % 9.34 % 9.03 % 9.09 % 9.00 %
 
                 

Selected Consolidated Financial Data

Dec 31,
2018

 

Sept 30,
2018

 

Jun 30,
2018

 

Mar 31,
2018

 

Dec 31,
2017

Total assets $ 771,816 $ 768,865 $ 781,893 $ 773,975 $ 773,555
Cash & investment securities 31,796 27,296 33,117 39,964 43,856
Mortgage-backed securities 83,786 88,698 94,486 100,408 106,258
Total Investments 115,582 115,994 127,603 140,372 150,114
Consumer Loans receivable 417,259 417,093 416,714 407,881 405,411
Commercial Loans receivable 207,675 202,728 206,064 194,018 186,189
Loan loss reserve (4,155 ) (3,922 ) (4,547 ) (4,262 ) (3,966 )
Total Loans receivable net 620,779 615,899 618,231 597,637 587,634
FHLB stock 4,838 5,286 5,176 5,150 4,954
Checking accounts 181,491 172,431 179,481 178,863 173,623
Savings accounts 216,940 220,159 231,534 229,764 225,830
Certificate of deposit accounts 189,629 189,488 178,782 175,052 164,670
Total Deposits 588,060 582,078 589,797 583,679 564,123
Advances 103,195 108,516 110,231 112,325 131,403
Total stockholders' equity 73,058 71,838 70,615 70,339 69,644
 

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

Source: Harleysville Financial Corporation

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