HARLEYSVILLE NATIONAL CORPORATION
FOR IMMEDIATE RELEASE
CONTACT: Walter E. Daller Jr., Chairman and CEO
PHONE: 215-256-8851 ext. 1201
EARNINGS UP AT
HARLEYSVILLE NATIONAL CORPORATION
HARLEYSVILLE, PA (JULY 13, 2000)-Harleysville National Corporation (HNC)
(NASDAQ:HNBC), announced record second quarter 2000 earnings of $6,307,000, a
3.4% increase over second quarter 1999 earnings of $6,098,000. Second quarter
2000 earnings included costs associated with the successful completion of the
acquisition of Citizens Bank & Trust Co., a $130 million asset community bank,
formerly headquartered in Palmerton. Net income for the first six months of
2000 was $12,352,000, a 6.0% increase over the $11,648,000 for the comparable
period in 1999. The company's consolidated total assets were $1,853,030,000 at
June 30, 2000, 13.0% above the June 30, 1999, level of $1,640,430,000.
For the quarter ending June 30, 2000, basic and diluted earnings per
share at $.71 were up 2.9% from $.69 in the second quarter of 1999. For the
first six months of 2000, basic and diluted earnings per share of $1.40 were up
6.1% from the $1.32 in the comparable period last year.
Return on equity, a key profitability ratio, was 16.9% compared to the
second quarter of 1999 ratio of 16.4%. The year-to-date June 30, 2000, return
on equity ratio was 16.6% compared to 15.6% in 1999.
Walter E. Daller Jr., Chairman and CEO of HNC noted that, "We are
especially pleased to report record earnings during a quarter that included the
completion of an acquisition. For 24-consecutive years, HNC has reported
increases in both earnings and dividends. We continue to focus on great customer
service and innovations in our product line, such as the mutual funds and
annuity products scheduled for introduction later this year."
Total loans at June 30, 2000, of $1,175,347,000 was 13.8% higher than the
June 30, 1999, balance of $1,032,961,000. Nonperforming assets, including
nonaccrual loans, restructured loans and other real estate owned was 0.3% of
total assets at both June 30, 2000, and June 30, 1999. Loans 90 days past due
was .1% of total loans at June 30, 2000, and June 30, 1999.
Providing real life financial solutions, Harleysville National Corporation
(HNC) operates 39 banking offices in 10 counties throughout Eastern Pennsylvania
through its three subsidiary banks-Harleysville National Bank and Trust Company,
Citizens National Bank and Security National Bank. Investment Management and
Trust Services are provided throughout the company by Harleysville National Bank
and Trust Company. HNC has assets in excess of $1.8 billion and is one of the
top 100 banks in the US (of more than 7,000) based on its 1999 Return on Equity
of 17.10%
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HARLEYSVILLE NATIONAL CORPORATION
SIX MONTHS ENDED
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(Dollars in thousands,
except per share data) JUNE 30
----------------------------
2000 1999
----------- -----------
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INCOME:
---------------------------------------
Net interest income . . . . . . . . . . $ 33,059 $ 31,059
Net interest income after
provision for loan losses . . . . . . 32,004 30,079
Other operating income. . . . . . . . . 5,511 5,105
Other operating expenses. . . . . . . . 22,576 19,815
Net income. . . . . . . . . . . . . . . 12,352 11,648
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES:
---------------------------------------
Basic . . . . . . . . . . . . . . . . 8,835,873 8,831,877
Diluted . . . . . . . . . . . . . . . 8,846,046 8,843,721
PER SHARE:
---------------------------------------
Net income:
Basic . . . . . . . . . . . . . . . . 1.40 1.32
Diluted . . . . . . . . . . . . . . . 1.40 1.32
Cash dividends paid . . . . . . . . . . 0.56 0.49
Book value. . . . . . . . . . . . . . . 17.20 17.38
PERIOD-END BALANCES:
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Total assets. . . . . . . . . . . . . . $1,853,030 $1,640,430
Loans . . . . . . . . . . . . . . . . . 1,175,347 1,032,961
Allowance for loan losses . . . . . . . 15,248 14,882
Deposits. . . . . . . . . . . . . . . . 1,443,134 1,283,818
Shareholders' equity. . . . . . . . . . 152,045 147,032
SELECTED RATIOS:
---------------------------------------
Return on average assets. . . . . . . . 1.37% 1.49%
Return on average shareholders' equity. 16.65% 15.60%
Primary capital ratio . . . . . . . . . 8.87% 9.66%
HARLEYSVILLE NATIONAL CORPORATION
THREE MONTHS ENDED
-------------------------
(Dollars in thousands,. . . . . . . . . JUNE 30
-----------
except per share data). . . . . . . . . 2000 1999
----------- -----------
INCOME:
---------------------------------------
Net interest income . . . . . . . . . . $ 16,716 $ 15,961
Net interest income after
provision for loan losses . . . . . . 16,167 15,471
Other operating income. . . . . . . . . 2,857 2,653
Other operating expenses. . . . . . . . 11,647 10,002
Net income. . . . . . . . . . . . . . . 6,307 6,098
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES:
---------------------------------------
Basic . . . . . . . . . . . . . . . . 8,836,268 8,832,237
Diluted . . . . . . . . . . . . . . . 8,846,441 8,844,081
PER SHARE:
---------------------------------------
Net income:
Basic . . . . . . . . . . . . . . . . 0.71 0.69
Diluted . . . . . . . . . . . . . . . 0.71 0.69
Cash dividends paid . . . . . . . . . . 0.28 0.25
SELECTED RATIOS:
---------------------------------------
Return on average assets. . . . . . . . 1.39% 1.53%
Return on average shareholders' equity. 16.93% 16.35%
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