HARLEYSVILLE, PA — Harleysville Financial Corporation (OTCQX: HARL) recently declared a regular quarterly cash dividend of $.31 per share, payable on May 15, 2024, to shareholders of record as of May 1, 2024. This announcement comes alongside the company’s latest financial results, which show a decrease in net income for both the second quarter and the first six months of the fiscal year 2024.
For the quarter ending March 31, 2024, Harleysville Financial reported net income of $2,112,000, or $.58 per diluted share, a decline from $3,073,000, or $.82 per diluted share, in the same period last year. The six-month figures also saw a reduction, with net income dropping to $4,622,000, or $1.27 per diluted share, from $6,404,000, or $1.71 per diluted share, compared to the previous year.
Brendan J. McGill, President and CEO, attributed the performance to net interest margin compression—a common challenge across the industry—while highlighting the company’s solid second-quarter results amidst these conditions. He emphasized the company’s strong balance sheet, consistent loan growth, and high credit quality as key factors supporting its financial health.
McGill also noted the expectation of continued interest margin pressure through the fiscal year due to the Federal Reserve’s efforts to control inflation. Despite these challenges, he expressed confidence in the company’s team and strategy, including maintaining high underwriting standards, investing in quality assets, controlling operating expenses, and sound capital management.
The company’s total assets slightly increased to $847.4 million from $842.9 million a year ago, with stockholders’ tangible book value rising 2.4% to $23.34 per share from $22.79.
Harleysville Financial’s results reflect the broader economic influences at play, notably Federal Reserve policies aimed at inflation control, which have implications for the banking sector’s net interest margins. The company’s resilience and strategic adjustments in this environment underscore its commitment to shareholder value and financial stability.
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