HARLEYSVILLE, Pa. - Harleysville Financial Corporation (OTCQX:HARL) has declared a regular quarterly cash dividend of $0.31 per share, payable on May 15, 2024, to shareholders of record as of May 1, 2024. This announcement comes as the company reports a decrease in net income for the second quarter and the six months ended March 31, 2024, compared to the same periods in the previous year.
For the quarter ended March 31, 2024, Harleysville Financial posted a net income of $2,112,000 or $0.58 per diluted share, a decline from $3,073,000 or $0.82 per diluted share for the same quarter last year. The six-month figures also reflected a downward trend, with net income at $4,622,000 or $1.27 per diluted share, compared to $6,404,000 or $1.71 per diluted share for the same period a year prior.
Brendan J. McGill, the President and CEO, commented on the financial environment, acknowledging the industry-wide net interest margin compression. Despite this, he expressed confidence in the company's strong balance sheet and capitalization, consistent loan growth, and solid credit quality.
Looking ahead, McGill anticipates the margin compression to persist throughout the fiscal year due to the Federal Reserve's measures to control inflation.
The company's total assets slightly increased from $842.9 million a year ago to $847.4 million, and the stockholders' tangible book value per share rose 2.4% to $23.34 from $22.79 in the previous year.
Harleysville Financial Corporation, the holding company for Harleysville Bank, is traded on the OTCQX market and operates from seven full-service offices in Pennsylvania. The bank, established in 1915, has a history of serving the local community's banking needs.
The financial data is based on a press release statement and reflects the company's performance and strategic outlook amidst economic pressures and regulatory changes within the industry.
InvestingPro Insights
As Harleysville Financial Corporation navigates through a challenging financial environment, a closer look at real-time data from InvestingPro reveals several metrics that could be of interest to investors. The company's market capitalization stands at a modest $76.47 million, which, coupled with a Price/Earnings (P/E) ratio of 6.71 for the last twelve months as of Q1 2024, suggests that the stock is potentially undervalued relative to earnings.
InvestingPro data also highlights a PEG ratio of 0.52 for the same period, indicating that the company's earnings growth rate is robust when factored against its P/E ratio. Moreover, the Price/Book (P/B) ratio of 0.91 suggests that the stock is trading below its book value, which may appeal to value-oriented investors.
The revenue growth of 9.91% for the last twelve months as of Q1 2024 demonstrates a positive trajectory, despite a quarterly decline of -13.26% in revenue for Q1 2024.
InvestingPro Tips for investors considering Harleysville Financial include a look at the dividend yield, which is notably high at 11.56%, reflecting a substantial dividend growth of 110.34% for the same period. The fair value estimate provided by InvestingPro is $22.26, which is higher than the previous close price of $21.05, potentially indicating room for price appreciation.
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