Harleysville Savings Bank (HARL, Financial) filed Quarterly Report for the period ended 2009-12-31.
Harleysville Savings Bank has a market cap of $49.6 million; its shares were traded at around $13.65 with a P/E ratio of 9.9 and P/S ratio of 1.2. The dividend yield of Harleysville Savings Bank stocks is 5.5%. Harleysville Savings Bank had an annual average earning growth of 15.2% over the past 5 years. GuruFocus rated Harleysville Savings Bank the business predictability rank of 2-star.
Asset growth was primarily funded by growth in deposits during the three-month period ended December 31, 2009, total deposits increased by $19.7 million to $486 million. Advances from borrowers for taxes and insurance also increased by $2.0 million due to the timing of property tax payments. The increase was offset by a decrease in borrowings of $12.0 million.
Net interest income was $4.4 million for the three-month period ended December 31, 2009 compared to $4.2 million for the comparable period in 2008. The increase in the net interest income for the three-month period ended December 31, 2009 when compared to the same period in 2008 can be attributed to the increase in interest rate spread from 2.08% in 2008 to 2.09% in 2009, and the difference between the average interest earning assets in relation to the average interest earning liabilities in comparable periods. Net income was $1.2 million for the three-month period ended December 31, 2009 compared to $1.4 million for the comparable period in 2008.
For the three-month period ended December 31, 2009, non-interest expenses increased by $316,000 or 11.5% to $3.1 million compared to $2.8 million for the same period in 2008. These increased costs are primarily due to the increase in FDIC insurance, normal salary increases and increases in healthcare costs. Management believes that these are reasonable increases in the cost of operations after considering the impact of additional expenses related to the Companys new commercial loan department business banking and additional FDIC premiums. The annualized ratio of non-interest expenses to average assets for the three month periods ended December 31, 2009 and 2008 were 1.47% and 1.33%, respectively.
On October 16, 2008, the Federal Deposit Insurance Corporation published a restoration plan designed to replenish the Deposit Insurance Fund over a period of five years and to increase the deposit insurance reserve ratio to the statutory minimum of 1.15% of insured deposits by December 31, 2013. In order to implement the restoration plan, the Federal Deposit Insurance Corporation proposes to change both its risk-based assessment system and its base assessment rates. Assessment rates would increase by seven basis points across the range of risk weightings of depository institutions. Changes to the risk-based assessment system would include increasing premiums for institutions that rely on excessive amounts of brokered deposits, including CDARS, increasing premiums for excessive use of secured liabilities, including Federal Home Loan Bank advances, lowering premiums for smaller institutions with very high capital levels, and adding financial ratios and debt issuer ratings to the premium calculations for banks with over $10 billion in assets, while providing a reduction for their unsecured debt. FDIC insurance expense increased to $227,000 for the three-month period ended December 31, 2009 from $18,000 for the comparable period in 2008. The $209,000 increase was due to an increase in assessment rates, which was effective January 1, 2009.
The Banks net income for the three months ended December 31, 2009 is $1.2 million compared to $1.4 million for the comparable period in 2008. This increased the Banks stockholders equity to $51.0 million or 6.06% of total assets. This amount is well in excess of the Banks minimum regulatory capital requirement.
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Harleysville Savings Bank has a market cap of $49.6 million; its shares were traded at around $13.65 with a P/E ratio of 9.9 and P/S ratio of 1.2. The dividend yield of Harleysville Savings Bank stocks is 5.5%. Harleysville Savings Bank had an annual average earning growth of 15.2% over the past 5 years. GuruFocus rated Harleysville Savings Bank the business predictability rank of 2-star.
Highlight of Business Operations:
Total assets at December 31, 2009 were $839.9 million, an increase of $9.9 million for the three-month period then ended. The increase was primarily due to an increase in loans receivable of approximately $5.3 million, an increase in cash and investments of approximately $10.8 million and an increase of prepaid and other assets of approximately $2.5 million. This increase was offset by a decrease in mortgage-backed securities pay-downs totaling $8.9 million. The increase in prepaids and other assets was due to a $3.0 million prepayment of FDIC premiums in December 2009.Asset growth was primarily funded by growth in deposits during the three-month period ended December 31, 2009, total deposits increased by $19.7 million to $486 million. Advances from borrowers for taxes and insurance also increased by $2.0 million due to the timing of property tax payments. The increase was offset by a decrease in borrowings of $12.0 million.
Net interest income was $4.4 million for the three-month period ended December 31, 2009 compared to $4.2 million for the comparable period in 2008. The increase in the net interest income for the three-month period ended December 31, 2009 when compared to the same period in 2008 can be attributed to the increase in interest rate spread from 2.08% in 2008 to 2.09% in 2009, and the difference between the average interest earning assets in relation to the average interest earning liabilities in comparable periods. Net income was $1.2 million for the three-month period ended December 31, 2009 compared to $1.4 million for the comparable period in 2008.
For the three-month period ended December 31, 2009, non-interest expenses increased by $316,000 or 11.5% to $3.1 million compared to $2.8 million for the same period in 2008. These increased costs are primarily due to the increase in FDIC insurance, normal salary increases and increases in healthcare costs. Management believes that these are reasonable increases in the cost of operations after considering the impact of additional expenses related to the Companys new commercial loan department business banking and additional FDIC premiums. The annualized ratio of non-interest expenses to average assets for the three month periods ended December 31, 2009 and 2008 were 1.47% and 1.33%, respectively.
On October 16, 2008, the Federal Deposit Insurance Corporation published a restoration plan designed to replenish the Deposit Insurance Fund over a period of five years and to increase the deposit insurance reserve ratio to the statutory minimum of 1.15% of insured deposits by December 31, 2013. In order to implement the restoration plan, the Federal Deposit Insurance Corporation proposes to change both its risk-based assessment system and its base assessment rates. Assessment rates would increase by seven basis points across the range of risk weightings of depository institutions. Changes to the risk-based assessment system would include increasing premiums for institutions that rely on excessive amounts of brokered deposits, including CDARS, increasing premiums for excessive use of secured liabilities, including Federal Home Loan Bank advances, lowering premiums for smaller institutions with very high capital levels, and adding financial ratios and debt issuer ratings to the premium calculations for banks with over $10 billion in assets, while providing a reduction for their unsecured debt. FDIC insurance expense increased to $227,000 for the three-month period ended December 31, 2009 from $18,000 for the comparable period in 2008. The $209,000 increase was due to an increase in assessment rates, which was effective January 1, 2009.
The Banks net income for the three months ended December 31, 2009 is $1.2 million compared to $1.4 million for the comparable period in 2008. This increased the Banks stockholders equity to $51.0 million or 6.06% of total assets. This amount is well in excess of the Banks minimum regulatory capital requirement.
Read the The complete Report
