Harleysville Financial Corporation Reports First Fiscal Quarter 2026 Results, Highlights 33% Net Income Increase Year-Over-Year and a 6.1% Increase of the Regular Cash Dividend

Company Release - 1/28/2026 12:41 PM ET

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. This represents an increase of 6.1% or $.02 per share from the previous dividend. The cash dividend will be payable on February 25, 2026 to stockholders of record on February 11, 2026.

Net income for the quarter ended December 31, 2025 was $2,667,000 or $.74 per diluted share compared to $2,006,000 or $.55 per diluted share for the same quarter last year.

President and Chief Executive Officer, Brendan J. McGill stated, “We are very pleased with our growth this quarter, which saw our net income increase by 33% compared to the same period last year. This performance was driven by steady loan growth, expansion in our investment portfolio and our unwavering commitment to asset quality.

I am proud of the performance of our team, whose focus on delivering products and services has been instrumental in helping our customers achieve their goals. Furthermore, recognizing the importance of our dividend to stockholders, we are pleased to create additional value by increasing the cash dividend to $.35 per share.”

The Company’s assets totaled $940.1 million compared to $861.3 million a year ago, and stockholders’ tangible book value increased to $25.67 per share from $24.13 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, 2025
(Dollars in thousands except per share data)
( Unaudited)Three Months Ended:
Selected Consolidated Earnings Data

Dec 31,

2025

Sep 30,

2025

June 30,

2025

Mar 31,

2025

Dec 31,

2024

Total interest income

$

11,339

$

11,038

$

10,325

$

9,745

$

9,812

Total interest expense

3,799

3,698

3,324

3,274

3,613

Net Interest Income

7,540

7,340

7,001

6,471

6,199

Provision for loan losses

41

(84

)

118

(28

)

148

Net Interest Income after Provision for Loan Losses

7,499

7,424

6,883

6,499

6,051

Bank owned life insurance

106

105

101

103

105

Other income

576

592

557

572

554

Total other expenses

4,558

4,370

4,297

4,434

4,044

Income before income taxes

3,623

3,751

3,244

2,740

2,666

Income tax expense

956

884

713

610

660

Net Income

$

2,667

$

2,867

$

2,531

$

2,130

$

2,006

Per Common Share Data
Basic earnings

$

0.74

$

0.80

$

0.70

$

0.59

$

0.55

Diluted earnings

$

0.74

$

0.77

$

0.70

$

0.59

$

0.55

Dividends

$

0.33

$

0.33

$

0.33

$

0.33

$

0.31

Tangible book value

$

25.67

$

25.25

$

24.80

$

24.40

$

24.13

Shares outstanding

3,587,996

3,587,377

3,589,883

3,605,824

3,628,170

Average shares outstanding - basic

3,587,579

3,589,417

3,591,861

3,624,490

3,634,394

Average shares outstanding - diluted

3,604,675

3,719,559

3,597,353

3,631,337

3,641,435

Three Months Ended:
Other Selected Consolidated Data

Dec 31,

2025

Sep 30,

2025

June 30,

2025

Mar 31,

2025

Dec 31,

2024

Return on average assets

1.14

%

1.25

%

1.14

%

0.99

%

0.93

%

Return on average equity

11.72

%

12.82

%

11.49

%

9.66

%

9.24

%

Net interest rate spread

2.87

%

2.83

%

2.80

%

2.63

%

2.47

%

Net yield on interest earning assets

3.29

%

3.26

%

3.22

%

3.07

%

2.95

%

Operating expenses to average assets

1.95

%

1.90

%

1.94

%

2.06

%

1.88

%

Efficiency ratio

55.43

%

54.37

%

56.10

%

62.05

%

58.97

%

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

0.15

%

0.09

%

0.11

%

0.14

%

0.18

%

Loan loss reserve to total loans, net

0.69

%

0.68

%

0.70

%

0.69

%

0.70

%

Stockholders' equity to assets

9.80

%

9.76

%

9.87

%

10.10

%

10.16

%

Selected Consolidated Financial Data

Dec 31,

2025

Sep 30,

2025

June 30,

2025

Mar 31,

2025

Dec 31,

2024

Total assets

$

940,059

$

928,042

$

901,837

$

871,430

$

861,327

Cash & investment securities

12,469

12,030

14,901

13,577

14,198

Mortgage-backed securities

183,283

164,769

142,550

125,115

124,774

Total Investments

195,752

176,799

157,451

138,692

138,972

Consumer Loans receivable

343,646

348,499

344,494

341,850

341,175

Commercial Loans receivable

364,179

364,896

364,488

357,076

348,424

Loan loss reserve

(4,869

)

(4,841

)

(4,949

)

(4,828

)

(4,854

)

Total Loans receivable net

702,956

708,554

704,033

694,098

684,745

FHLB stock

7,054

7,507

5,435

3,874

3,909

Checking accounts

263,948

254,881

264,641

266,215

259,589

Savings accounts

201,898

205,057

207,953

214,159

206,369

Certificate of deposit accounts

215,601

212,064

217,567

216,918

224,273

Total Deposits

681,447

672,002

690,161

697,292

690,231

Advances

156,666

155,408

110,853

74,016

74,585

Total stockholders' equity

92,110

90,577

89,035

87,986

87,552

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

Source: Harleysville Financial Corporation