Harleysville Financial Corporation Announces Regular Cash Dividend and Second Quarter Earnings for Fiscal Year 2024

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 May 15, 2024 to stockholders of record on May 1, 2024.

Net income for the second quarter was $2,112,000 or $.58 per diluted share compared to $3,073,000 or $.82 per diluted share for the same quarter last year.

Net income for the six months ended March 31, 2024 amounted to $4,622,000 or $1.27 per diluted share compared to $6,404,000 or $1.71 per diluted share for the same six-month period a year ago.

Brendan J. McGill, President, and Chief Executive Officer of the Company, stated, “Despite the net interest margin compression experienced across the industry this past year, The Company has achieved solid second quarter results. We continue to benefit from a strong balance sheet and being well capitalized, as well as consistent loan growth and strong credit quality.

We anticipate continued interest margin compression through this 2024 fiscal year as the Federal Reserve continues to work to control inflation. I am extremely proud of our experienced team, as we continue to navigate this challenging interest rate environment. We will continue to maintain our prudent underwriting standards, investing in high credit quality assets, controlling our operating expenses, and practicing sound capital management.”

The Company’s assets totaled $847.4 million compared to $842.9 million a year ago. Stockholders’ tangible book value increased 2.4% to $23.34 per share from $22.79 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, 2024
(Dollars in thousands except per share data)	Year-To-Date
( Unaudited)	Six Months Ended:						Three Months Ended:

Selected Consolidated Earnings Data	Mar 31, 2024			Mar 31, 2023			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			June 30, 2023			Mar 31, 2023
Total interest income	$	18,444		$	17,109		$	9,268		$	9,176		$	8,728		$	8,395		$	8,473
Total interest expense		5,536			1,338			2,984			2,552			1,664			874			701

Net Interest Income		12,908			15,771			6,284			6,624			7,064			7,521			7,772
Provision for loan losses		12			449			4			8			(595	)		146			220
Net Interest Income after Provision for Loan Losses		12,896			15,322			6,280			6,616			7,659			7,375			7,552

Bank owned life insurance		202			198			100			102			101			97			98
Other income		1,066			1,099			486			580			617			593			555
Total other expenses		8,081			8,047			4,110			3,971			4,317			4,325			4,114

Income before income taxes		6,083			8,572			2,756			3,327			4,060			3,740			4,091
Income tax expense		1,461			2,168			644			817			1,042			939			1,018

Net Income	$	4,622		$	6,404		$	2,112		$	2,510		$	3,018		$	2,801		$	3,073


Per Common Share Data
Basic earnings	$	1.27		$	1.72		$	0.58		$	0.69		$	0.82		$	0.76		$	0.83
Diluted earnings	$	1.27		$	1.71		$	0.58		$	0.69		$	0.82		$	0.76		$	0.82
Dividends	$	0.61		$	0.59		$	0.31		$	0.30		$	0.30		$	0.30		$	0.30
Special Dividend	$	-		$	-		$	-		$	1.20		$	-		$	-		$	-
Tangible book value	$	23.34		$	22.79		$	23.34		$	23.05		$	23.76		$	23.26		$	22.79
Shares outstanding		3,635,367			3,708,367			3,635,367			3,646,269			3,670,488			3,663,905			3,708,367
Average shares outstanding - basic		3,644,094			3,715,846			3,644,446			3,643,746			3,661,248			3,688,845			3,715,772
Average shares outstanding - diluted		3,652,806			3,742,109			3,653,117			3,652,493			3,674,442			3,706,597			3,740,421



	Year-To-Date
	Six Months Ended:						Three Months Ended:
Other Selected Consolidated Data	Mar 31, 2024			Mar 31, 2023			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			June 30, 2023			Mar 31, 2023
Return on average assets		1.09	%		1.47	%		0.99	%		1.18	%		1.44	%		1.35	%		1.44	%
Return on average equity		10.91	%		15.34	%		10.04	%		11.79	%		14.07	%		13.24	%		14.73	%
Net interest rate spread		2.73	%		3.60	%		2.62	%		2.83	%		3.20	%		3.58	%		3.62	%
Net yield on interest earning assets		3.11	%		3.69	%		3.02	%		3.19	%		3.45	%		3.71	%		3.72	%
Operating expenses to average assets		1.90	%		1.84	%		1.93	%		1.87	%		2.06	%		2.09	%		1.93	%
Efficiency ratio		57.00	%		47.15	%		59.82	%		54.35	%		55.47	%		52.67	%		48.83	%
Ratio of non-performing loans to total assets at end of period		0.21	%		0.24	%		0.21	%		0.28	%		0.31	%		0.28	%		0.24	%
Loan loss reserve to total loans, net		0.71	%		0.91	%		0.71	%		0.71	%		0.77	%		0.89	%		0.91	%
Stockholders' equity to assets		10.01	%		10.03	%		10.01	%		9.85	%		10.35	%		10.27	%		10.03	%


Selected Consolidated Financial Data	Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			June 30, 2023			Mar 31, 2023
Total assets	$	847,416		$	853,315		$	842,274		$	829,933		$	842,882
Cash & investment securities		20,853			23,626			22,168			25,623			57,163
Mortgage-backed securities		138,072			142,677			147,821			153,205			158,731
Total Investments		158,925			166,303			169,989			178,828			215,894
Consumer Loans receivable		325,483			325,654			318,349			305,780			290,509
Commercial Loans receivable		329,235			327,093			320,384			314,756			306,636
Loan loss reserve		(4,662	)		(4,663	)		(4,919	)		(5,525	)		(5,408	)
Total Loans receivable net		650,056			648,084			633,814			615,011			591,737
FHLB stock		4,813			5,550			5,144			3,024			2,234
Checking accounts		264,294			266,353			272,835			286,725			294,421
Savings accounts		229,208			239,496			257,246			282,425			306,226
Certificate of deposit accounts		166,664			140,194			117,687			110,898			109,453
Total Deposits		660,166			646,043			647,768			680,048			710,100
Advances		92,757			113,430			98,045			53,245			38,363
Total stockholders' equity		84,837			84,039			87,213			85,212			84,531