Harleysville Financial Corporation Announces Record Earnings for the Fiscal Year Ended September 30, 2019 and the Declaration of Regular Cash Dividend - Harleysville Finl (OTC:HARL)

Harleysville Financial Corporation 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. The cash dividend will be payable on November 13, 2019 to stockholders of record on October 30, 2019.

Net income for the twelve months ended September 30, 2019 amounted to $8,149,000 or $2.13 per diluted share compared to $7,110,000 or $1.85 per diluted share for the twelve months ended September 30, 2018.

Net income for the fourth quarter of fiscal year 2019 amounted to $1,919,000 or $.50 per diluted share compared to $2,103,000 or $.55 per diluted share for the fourth quarter of fiscal year 2018.

Commenting on the year-end operating results, President and Chief Executive Officer Brendan J. McGill said, "We are pleased to report record earnings for the fiscal year ended 2019 of $8,149,000. 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 $779.3 million compared to $768.9 million a year ago. Stockholders' book value increased 5.58% to $20.26 per share from $19.19 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, 2019
(Dollars in thousands except per share data)	Year-To-Date
( Unaudited)	Twelve Months Ended:						Three Months Ended:

Selected Consolidated Earnings Data	Sept 30, 2019			Sept 30, 2018			Sept 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sept 30, 2018
Total interest income	$	31,624		$	30,329		$	7,914		$	7,982		$	7,875		$	7,853		$	7,767
Total interest expense		7,053			6,767			1,846			1,826			1,712			1,669			1,629

Net Interest Income		24,571			23,562			6,068			6,156			6,163			6,184			6,138
Provision for loan losses		982			1,040			215			215			192			360			205
Net Interest Income after Provision for Loan Losses		23,589			22,522			5,853			5,941			5,971			5,824			5,933

Gain on sale of investments		144			-			-			-			144			-			-
Gain on sale of real estate owned		467			304			-			-			67			400			-
Bank owned life insurance		398			393			102			97			99			100			99
Other income		2,074			2,169			516			533			491			534			554
Total other expenses		15,459			15,399			3,846			3,930			3,903			3,780			3,855

Income before income taxes		11,213			9,989			2,625			2,641			2,869			3,078			2,731
Income tax expense		3,064			2,879			706			677			766			915			628

Net Income	$	8,149		$	7,110		$	1,919		$	1,964		$	2,103		$	2,163		$	2,103


Per Common Share Data
Basic earnings	$	2.17		$	1.89		$	0.51		$	0.52		$	0.56		$	0.58		$	0.56
Diluted earnings	$	2.13		$	1.85		$	0.50		$	0.51		$	0.55		$	0.57		$	0.55
Dividends	$	0.98		$	0.91		$	0.25		$	0.25		$	0.25		$	0.23		$	0.23
Tangible book value	$	20.26		$	19.19		$	20.26		$	19.98		$	19.71		$	19.50		$	19.19
Shares outstanding		3,764,057			3,744,046			3,764,057			3,759,019			3,770,651			3,746,202			3,744,046
Average shares outstanding - basic		3,757,413			3,759,817			3,761,840			3,766,383			3,754,634			3,746,832			3,748,773
Average shares outstanding - diluted		3,821,965			3,844,533			3,815,843			3,824,885			3,826,397			3,821,791			3,832,713



	Year-To-Date
	Twelve Months Ended:						Three Months Ended:
Other Selected Consolidated Data	Sept 30, 2019			Sept 30, 2018			Sept 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sept 30, 2018
Return on average assets		1.04	%		0.92	%		0.98	%		0.99	%		1.08	%		1.12	%		1.08	%
Return on average equity		11.04	%		10.16	%		10.18	%		10.55	%		11.45	%		11.98	%		11.84	%
Net interest rate spread		3.03	%		2.95	%		2.96	%		2.99	%		3.06	%		3.09	%		3.05	%
Net yield on interest earning assets		3.21	%		3.12	%		3.15	%		3.17	%		3.24	%		3.28	%		3.23	%
Operating expenses to average assets		1.98	%		2.00	%		1.96	%		1.98	%		2.01	%		1.96	%		1.98	%
Efficiency ratio		56.19	%		58.33	%		57.52	%		57.91	%		57.24	%		52.36	%		56.77	%
Ratio of non-performing loans to total
assets at end of period		1.08	%		1.34	%		1.08	%		1.07	%		1.16	%		1.19	%		1.34	%
Loan loss reserve to total loans, net		0.78	%		0.63	%		0.78	%		0.73	%		0.70	%		0.67	%		0.63	%
Stockholders' equity to assets		9.78	%		9.34	%		9.78	%		9.45	%		9.37	%		9.47	%		9.34	%


Selected Consolidated Financial Data	Sept 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sept 30, 2018
Total assets	$	779,256		$	795,031		$	793,265		$	771,816		$	768,865
Cash & investment securities		42,337			53,891			49,086			31,796			27,296
Mortgage-backed securities		96,600			90,690			90,019			83,786			88,698
Total Investments		138,937			144,581			139,105			115,582			115,994
Consumer Loans receivable		401,950			407,271			413,553			417,259			417,093
Commercial Loans receivable		207,591			211,967			209,323			207,675			202,728
Loan loss reserve		(4,757	)		(4,547	)		(4,343	)		(4,155	)		(3,922	)
Total Loans receivable net		604,784			614,691			618,533			620,779			615,899
FHLB stock		5,058			5,074			5,094			4,838			5,286
Checking accounts		181,054			186,012			183,566			181,491			172,431
Savings accounts		208,633			216,687			218,788			216,940			220,159
Certificate of deposit accounts		196,655			192,456			196,532			189,629			189,488
Total Deposits		586,342			595,155			598,886			588,060			582,078
Advances		111,125			114,743			111,469			103,195			108,516
Total stockholders' equity		76,247			75,109			74,317			73,058			71,838

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