Harleysville Financial Corporation Announces Regular Cash Dividend and Second Quarter Earnings for Fiscal Year 2026

Harleysville Financial Corporation (OTCQX:HARL) reported today that the Company’s board of directors declared a regular quarterly cash dividend of $.35 per share on the Company’s common stock. The cash dividend will be payable on May 13, 2026 to stockholders of record on April 29, 2026.

Net income for the second quarter was $3,811,000 or $1.06 per diluted share compared to $2,130,000 or $0.59 per diluted share, for the same quarter last year. Results for the current quarter include non-recurring Bank Owned Life Insurance (“BOLI”) net benefits of $1,139,000 or $0.32 per diluted share. Excluding these BOLI benefits, net income for the second quarter was $2,672,00, representing a 25% increase over the same period last year.

Net income for the current six months ended March 31, 2026 amounted to $6,478,000 or $1.80 per diluted share compared to $4,136,000 or $1.14 per diluted share for the same six-month period a year ago. Excluding these BOLI benefits, net income for the six months ended was $5,339,000, representing a 29% increase over the same period last year.

Brendan J. McGill, President, and Chief Executive Officer of the Company, stated, “While our results for the quarter benefited from the BOLI income, we are encouraged by the bank’s growing financial resilience. With credit quality remaining high, we are seeing a steady increase in households choosing the personalized service of a locally managed community bank. Furthermore, our interest rate spread continues to trend upward. By pairing disciplined underwriting and expense control with a robust balance sheet, we are building a solid foundation for long-term growth.”

The Company’s assets totaled $957.7 million compared to $871.4 million a year ago. Stockholders’ tangible book value increased 8.2% to $26.39 per share from $24.40 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, 2026
(Dollars in thousands except per share data)
(Unaudited)		Year-To-Date
		Six Months Ended:								Three Months Ended:
Selected Consolidated Earnings Data		Mar 31, 2026				Mar 31, 2025				Mar 31, 2026				Dec 31, 2025				Sep 30, 2025				June 30, 2025				Mar 31, 2025
Total interest income		$	22,684			$	19,557			$	11,345			$	11,339			$	11,038			$	10,325			$	9,745
Total interest expense			7,469				6,887				3,670				3,799				3,698				3,324				3,274
Net Interest Income			15,215				12,670				7,675				7,540				7,340				7,001				6,471
Provision for loan losses			215				120				174				41				(84	)			118				(28	)
Net Interest Income after Provision for Loan Losses			15,000				12,550				7,501				7,499				7,424				6,883				6,499
Bank owned life insurance			1,482				208				1,376				106				105				101				103
Other income			1,138				1,126				562				576				592				557				572
Total other expenses			9,168				8,478				4,610				4,558				4,370				4,297				4,434
Income before income taxes			8,452				5,406				4,829				3,623				3,751				3,244				2,740
Income tax expense			1,974				1,270				1,018				956				884				713				610
Net Income		$	6,478			$	4,136			$	3,811			$	2,667			$	2,867			$	2,531			$	2,130
Per Common Share Data
Basic earnings		$	1.81			$	1.14			$	1.06			$	0.74			$	0.80			$	0.70			$	0.59
Diluted earnings		$	1.80			$	1.14			$	1.06			$	0.74			$	0.77			$	0.70			$	0.59
Dividends		$	0.68			$	0.64			$	0.35			$	0.33			$	0.33			$	0.33			$	0.33
Tangible book value		$	26.39			$	24.40			$	26.39			$	25.67			$	25.25			$	24.80			$	24.40
Shares outstanding			3,584,924				3,605,824				3,584,924				3,587,996				3,587,377				3,589,883				3,605,824
Average shares outstanding – basic			3,585,698				3,628,464				3,583,788				3,587,579				3,589,417				3,591,861				3,624,490
Average shares outstanding – diluted			3,607,441				3,635,410				3,610,073				3,604,675				3,719,559				3,597,353				3,631,337
		Year-To-Date
		Six Months Ended:								Three Months Ended:
Other Selected Consolidated Data		Mar 31, 2026				Mar 31, 2025				Mar 31, 2026				Dec 31, 2025				Sep 30, 2025				June 30, 2025				Mar 31, 2025
Return on average assets			1.38	%			0.96	%			1.61	%			1.14	%			1.25	%			1.14	%			0.99	%
Return on average equity			14.11	%			9.45	%			16.45	%			11.72	%			12.82	%			11.49	%			9.66	%
Net interest rate spread			2.89	%			2.55	%			2.90	%			2.87	%			2.83	%			2.80	%			2.63	%
Net yield on interest earning assets			3.30	%			3.01	%			3.30	%			3.29	%			3.26	%			3.22	%			3.07	%
Operating expenses to average assets			1.95	%			1.97	%			1.95	%			1.95	%			1.90	%			1.94	%			2.06	%
Efficiency ratio			51.40	%			60.54	%			47.96	%			55.43	%			54.37	%			56.10	%			62.05	%
Ratio of non-performing loans to total assets at end of period			0.11	%			0.14	%			0.11	%			0.15	%			0.09	%			0.11	%			0.14	%
Loan loss reserve to total loans, net			0.70	%			0.69	%			0.70	%			0.69	%			0.68	%			0.70	%			0.69	%
Stockholders’ equity to assets			9.88	%			10.10	%			9.88	%			9.80	%			9.76	%			9.87	%			10.10	%
Selected Consolidated Financial Data		Mar 31, 2026				Dec 31, 2025				Sep 30, 2025				June 30, 2025				Mar 31, 2025
Total assets		$	957,738			$	940,059			$	928,042			$	901,837			$	871,430
Cash & investment securities			11,268				12,469				12,030				14,901				13,577
Mortgage-backed securities			202,145				183,283				164,769				142,550				125,115
Total Investments			213,413				195,752				176,799				157,451				138,692
Consumer Loans receivable			338,202				343,646				348,499				344,494				341,850
Commercial Loans receivable			367,775				364,179				364,896				364,488				357,076
Loan loss reserve			(4,964	)			(4,869	)			(4,841	)			(4,949	)			(4,828	)
Total Loans receivable net			701,013				702,956				708,554				704,033				694,098
FHLB stock			7,183				7,054				7,507				5,435				3,874
Checking accounts			269,691				263,948				254,881				264,641				266,215
Savings accounts			208,990				201,898				205,057				207,953				214,159
Certificate of deposit accounts			223,301				215,601				212,064				217,567				216,918
Total Deposits			701,982				681,447				672,002				690,161				697,292
Advances			149,960				156,666				155,408				110,853				74,016
Total stockholders’ equity			94,590				92,110				90,577				89,035				87,986

 

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