HARLEYSVILLE, PA — Harleysville Financial Corporation (OTCQX: HARL) reported a 30.6% increase in annual net income to $12.45 million for the fiscal year ended September 30, 2026, supported by stronger interest income and a one-time insurance benefit, while its board maintained a quarterly cash dividend of 35 cents per share.
The parent company of Harleysville Bank reported diluted earnings of $3.45 per share, compared with $2.61 a year earlier, according to financial results released October 21.
Annual earnings included $1.14 million in nonrecurring net benefits from bank-owned life insurance, equivalent to 32 cents per diluted share. Excluding those benefits, net income totaled $11.31 million, an increase of approximately 19% from fiscal 2025.
Net interest income, a principal measure of profitability for banks, increased 16.3% to $31.42 million from $27.01 million a year earlier.
Total interest income rose 13.6% to $46.50 million, while interest expense increased 8.4% to $15.08 million.
The bank’s net interest margin, measured as the yield on interest-earning assets after funding costs, improved to 3.36% from 3.13% in the previous fiscal year.
Harleysville Financial also reported improved operating efficiency. Its efficiency ratio declined to 53.65% from 57.72%, indicating that operating expenses consumed a smaller share of revenue.
Total assets increased 5.3% to $977.2 million at September 30, compared with approximately $928 million a year earlier.
Net loans receivable totaled $717.7 million, up from approximately $708.5 million at the end of fiscal 2025. Commercial loans reached $382.7 million, compared with approximately $364.8 million a year earlier.
Deposits increased to $697.6 million from approximately $672 million over the same period, although they declined from $711 million at the end of June.
The company’s advances increased to $171.8 million from approximately $155.4 million a year earlier.
Credit quality remained relatively stable, with nonperforming loans representing 0.13% of total assets at September 30, compared with 0.09% a year earlier. The allowance for loan losses represented 0.69% of net loans, compared with 0.68% in fiscal 2025.
President and Chief Executive Officer Brendan J. McGill attributed the results in part to loan growth, deposit retention and improved interest margins.
“While our results for the year benefited from BOLI income, we are encouraged by the bank’s growing financial resilience,” McGill said.
For the fiscal fourth quarter, Harleysville Financial earned $3.02 million, or 83 cents per diluted share, compared with $2.87 million, or 77 cents per diluted share, in the corresponding period of fiscal 2025.
Annual return on average assets improved to 1.31% from 1.08%, while return on average equity increased to 13.31% from 10.81%.
Stockholders’ equity reached $96.8 million, up from approximately $90.5 million a year earlier. Book value per share increased 7.6% to $27.17 from $25.25.
The company’s board declared a regular quarterly cash dividend of 35 cents per common share, payable November 18 to shareholders of record November 4.
Harleysville Financial is the holding company for Harleysville Bank, a Pennsylvania-chartered, federally insured institution established in 1915. The bank operates six full-service offices in Montgomery County, one in Bucks County and a loan production office in Chester County.
Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.