Harleysville Savings Bank (HARL, Financial) filed Quarterly Report for the period ended 2010-03-31.
Harleysville Savings Bank has a market cap of $53.5 million; its shares were traded at around $14.65 with a P/E ratio of 11.9 and P/S ratio of 1.2. The dividend yield of Harleysville Savings Bank stocks is 5.2%. Harleysville Savings Bank had an annual average earning growth of 4.4% over the past 10 years. GuruFocus rated Harleysville Savings Bank the business predictability rank of 2-star.
Asset growth was primarily funded by growth in deposits during the six-month period ended March 31, 2010. Total deposits increased by $25.0 million to $492.6 million. Advances from borrowers for taxes and insurance also increased by $3.0 million due to the timing of property tax payments. The increase was partially offset by a decrease in borrowings of $18.6 million due to normal repayments for the period.
Net interest income was $4.5 million for the three-month period ended March 31, 2010 compared to $4.4 million for the comparable period in 2009. The increase in the net interest income for the three-month period ended March 31, 2010 when compared to the same period in 2009 can be attributed to the increase in interest rate spread from 1.97% in 2009 to 2.05% in 2010, and the difference between the average interest earning assets in relation to the average interest earning liabilities in comparable periods. The increase in the net interest income for the six-month period ended March 31, 2010 when compared to the same period in 2009 can attributed to the increase in interest rate spread from 2.02% in 2009 to 2.23% in 2010. Net interest income was $8.9 million for the six-month period ended March 31, 2010 compared to $8.5 million for the comparable period in 2009.
Non-interest income increased to $458,000 for the three-month period ended March 31, 2010 from $23,000 for the comparable period in 2009. Non-interest income increased to $960,000 for the six-month period ended March 31, 2010 from $494,000 for the comparable period in 2009. The increase is primarily due to an impairment write-down of four equity securities resulting in a loss of $449,000 in 2009.
For the three-month period ended March 31, 2010, non-interest expenses increased by $411,000 or 14.6% to $3.2 million compared to $2.8 million for the same period in 2009. For the six month period ended March 31, 2010, non-interest expenses increased by $728,000 or 13.1% to $6.3 million compared to $5.6 million for the same period in 2009. These increased costs are primarily due to the increase in FDIC insurance, normal salary and health care costs increases and expenses related to the opening of the new branch in February, 2010. Management believes that these are reasonable increases in the cost of operations after considering the impact of additional expenses related to the Companys commercial loan department, business banking, opening a new branch and additional FDIC premiums. FDIC insurance expense decreased to $226,000 for the three-month period ended March 31, 2010 from $239,000 for the comparable period in 2009. FDIC insurance expense increased to $453,000 for the six-month period ended March 31, 2010 from $257,000 for the comparable period in 2009. The FDIC premium increases began in January 2009. The annualized ratio of non-interest expenses to average assets for the three and six month periods ended March 31, 2010 and 2009 were 1.54%, 1.48% and 1.37%, 1.35%, respectively.
The Company made provisions for income taxes of $437,000 and $892,000 for the three-month and six-month period ended March 31, 2010 respectively, compared to $258,000 and $685,000 for the comparable periods in 2009. These provisions are based on the levels of pre-tax income, adjusted primarily for tax-exempt interest income on investments.
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Harleysville Savings Bank has a market cap of $53.5 million; its shares were traded at around $14.65 with a P/E ratio of 11.9 and P/S ratio of 1.2. The dividend yield of Harleysville Savings Bank stocks is 5.2%. Harleysville Savings Bank had an annual average earning growth of 4.4% over the past 10 years. GuruFocus rated Harleysville Savings Bank the business predictability rank of 2-star.
Highlight of Business Operations:
Total assets at March 31, 2010 were $843.1 million, an increase of $13.1 million for the six-month period then ended. The increase was primarily due to an increase in loans receivable of approximately $13.1 million, an increase in cash and investments of approximately $13.5 million and an increase of prepaid and other assets of approximately $3.5 million. Also, there has been an increase in office property for the six-month period ended March 31, 2010 of $1.6 million due to the opening of a new branch. These increases were offset by a decrease in mortgage-backed securities totaling $17.9 million, due to pay downs. The increase in prepaids and other assets was due to a $2.8 million prepayment of FDIC premiums at March 31, 2010.Asset growth was primarily funded by growth in deposits during the six-month period ended March 31, 2010. Total deposits increased by $25.0 million to $492.6 million. Advances from borrowers for taxes and insurance also increased by $3.0 million due to the timing of property tax payments. The increase was partially offset by a decrease in borrowings of $18.6 million due to normal repayments for the period.
Net interest income was $4.5 million for the three-month period ended March 31, 2010 compared to $4.4 million for the comparable period in 2009. The increase in the net interest income for the three-month period ended March 31, 2010 when compared to the same period in 2009 can be attributed to the increase in interest rate spread from 1.97% in 2009 to 2.05% in 2010, and the difference between the average interest earning assets in relation to the average interest earning liabilities in comparable periods. The increase in the net interest income for the six-month period ended March 31, 2010 when compared to the same period in 2009 can attributed to the increase in interest rate spread from 2.02% in 2009 to 2.23% in 2010. Net interest income was $8.9 million for the six-month period ended March 31, 2010 compared to $8.5 million for the comparable period in 2009.
Non-interest income increased to $458,000 for the three-month period ended March 31, 2010 from $23,000 for the comparable period in 2009. Non-interest income increased to $960,000 for the six-month period ended March 31, 2010 from $494,000 for the comparable period in 2009. The increase is primarily due to an impairment write-down of four equity securities resulting in a loss of $449,000 in 2009.
For the three-month period ended March 31, 2010, non-interest expenses increased by $411,000 or 14.6% to $3.2 million compared to $2.8 million for the same period in 2009. For the six month period ended March 31, 2010, non-interest expenses increased by $728,000 or 13.1% to $6.3 million compared to $5.6 million for the same period in 2009. These increased costs are primarily due to the increase in FDIC insurance, normal salary and health care costs increases and expenses related to the opening of the new branch in February, 2010. Management believes that these are reasonable increases in the cost of operations after considering the impact of additional expenses related to the Companys commercial loan department, business banking, opening a new branch and additional FDIC premiums. FDIC insurance expense decreased to $226,000 for the three-month period ended March 31, 2010 from $239,000 for the comparable period in 2009. FDIC insurance expense increased to $453,000 for the six-month period ended March 31, 2010 from $257,000 for the comparable period in 2009. The FDIC premium increases began in January 2009. The annualized ratio of non-interest expenses to average assets for the three and six month periods ended March 31, 2010 and 2009 were 1.54%, 1.48% and 1.37%, 1.35%, respectively.
The Company made provisions for income taxes of $437,000 and $892,000 for the three-month and six-month period ended March 31, 2010 respectively, compared to $258,000 and $685,000 for the comparable periods in 2009. These provisions are based on the levels of pre-tax income, adjusted primarily for tax-exempt interest income on investments.
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