-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, S0J6lAcR6b0cwiruYu/fhUU6Lj0p48msOgc1hX9aeUOKlRFOUMAA+7vYkLMpIUOZ S/rYuQq2buX1zfuEakk0mA== 0000702902-05-000099.txt : 20050418 0000702902-05-000099.hdr.sgml : 20050418 20050418105125 ACCESSION NUMBER: 0000702902-05-000099 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050418 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050418 DATE AS OF CHANGE: 20050418 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARLEYSVILLE NATIONAL CORP CENTRAL INDEX KEY: 0000702902 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 232210237 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-15237 FILM NUMBER: 05755630 BUSINESS ADDRESS: STREET 1: 483 MAIN ST STREET 2: P O BOX 195 CITY: HARLEYSVILLE STATE: PA ZIP: 19438 BUSINESS PHONE: 2152568851 MAIL ADDRESS: STREET 1: 483 MAIN STREET CITY: HARLEYSVILLE STATE: PA ZIP: 19438 8-K 1 form8k1stquarterearnings.htm FORM 8K - 1ST QUARTER EARNINGS Form 8K - 1st Quarter Earnings



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report -April 18, 2005

HARLEYSVILLE NATIONAL CORPORATION
(Exact name of registrant as specified in its charter)

___________________

 
Pennsylvania
0-15237
23-2210237
(State or other jurisdiction
of incorporation or organization)
Commission File Number
(IRS Employer
Identification No.)

483 Main Street
Harleysville, Pennsylvania 19438
(Address of principal executive office and zip code)

(215) 256-8851
(Registrant’s telephone number, including area code)





Check the appropriate box below if the Form 8K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.133-4(c))

-1-





Item 2.02 Results of Operations and Financial Condition

 
Harleysville National Corporation announced the unaudited, consolidated financial results for Harleysville National Corporation and subsidiaries for the three-month period ended March 31, 2005. On April 18, 2005 Harleysville National Bank issued a press release titled “First Quarter Earnings up 2.9% at Harleysville National Corporation,” a copy of which is filed as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits

(a)  
Not applicable.
(b)  
Not applicable.
(c)  
Exhibits.

Exhibit 99.1: Press Release issued by Harleysville National Corporation dated April 18, 2005 titled “First Quarter Earnings Up 2.9% at Harleysville National Corporation.



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SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



   HARLEYSVILLE NATIONAL CORPORATION




Dated: April 18, 2005             /s/ Michael B. High 
  Michael B. High, EVP and Chief Financial Officer


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EXHIBIT INDEX

 
Page
   
Exhibit 99.1 Press Release dated April January 18, 2005, of Harleysville National Corporation (filed pursuant to Item 2.02 hereof).
5
 
 
   
   
   


-4-

EX-99.1 PRESSRELEASE 2 earningsreleast1stqtr.htm FIRST QUARTER EARNINGS RELEASE First Quarter Earnings Release

FOR IMMEDIATE RELEASE
CONTACT:  Gregg J. Wagner, President and CEO
PHONE: 215-513-2391

FIRST QUARTER EARNINGS UP 2.9%
AT HARLEYSVILLE NATIONAL CORPORATION


HARLEYSVILLE, PA (April 18, 2005) - Harleysville National Corporation (NASDAQ: HNBC), today announced first quarter 2005 earnings of $9.2 million, a 2.9% increase over first quarter 2004 earnings of $8.9 million.
The corporation’s consolidated total assets were $3.0 billion at March 31, 2005, an increase of 18.1% or $460.2 million above the March 31, 2004, level of $2.54 billion. Of this increase, 11.0% or $279.8 was due to loan growth and 9.1% or $231.3 million, was attributable to the acquisition of Millennium Bank partially offset by a net decrease in cash and investments of 2.5% or $63.0 million.
For the quarter ending March 31, 2005, diluted earnings per share of $.34 and basic earnings per share of $.35 remained level with the earnings during the first quarter of 2004. The financial results for 2005 include the impact of operations from the acquisition of Millennium Bank effective April 30, 2004, and the related issuance of 946,000 (993,000 restated for stock dividend) common shares, as well as the issuance of 1,295,000 common shares for a 5% stock dividend paid on September 15, 2004. All share and per share information has been restated to reflect this stock dividend.
Gregg J. Wagner, President and Chief Executive Officer, said, “We are pleased to announce another successful quarter. I am proud of our employees’ efforts which are reflected in these first quarter results. Our entire team remains committed to superior financial performance, enhancing shareholder value and providing our customers with the best banking experience possible. We continue our emphasis on building Millennium Wealth Management & Private Banking’s full line of trust, wealth management and private banking products and services and hope to build upon the success they achieved this quarter, which is represented in the increase in noninterest income generated.”
 
-5-

 
Net interest income on a fully tax-equivalent basis in the first quarter of 2005 increased $1.2 million or 5.3% over the same period in 2004. This increase was primarily the result of loan growth partially offset by a higher level of borrowings and higher deposit rates. The net interest margin for the first quarter of 2005 was 3.37%, compared to 3.73% for the first quarter of 2004, the decline being primarily due to higher funding costs, particularly increased volumes in higher-rate money market accounts and lower loan yields. The net interest margin increased 3 basis points over the fourth quarter of 2004 after declines during the previous four quarters. Average earning assets increased $436.3 million or 18.4% during the first quarter of 2005 versus the comparable period in 2004, while average loans increased $430.6 million or 30.4% during the same period. Loans totaling $157.1 million were acquired in the acquisition of Millennium Bank which contributed to the increase in average loans.
Nonperforming assets, including nonaccrual loans, net assets in foreclosure and loans 90 days or more past due was .19% of total assets at March 31, 2005, compared to .20% at December 31, 2004 and .21% at March 31, 2004. The ratio of the allowance for loan losses to nonperforming loans (nonaccruing loans and loans 90 days or more past due) was 362.1% at March 31, 2005, compared to 324.6% at December 31, 2004 and 341.3% at March 31, 2004.  The increase in the provision for the first quarter of 2005 compared to the first quarter of 2004 was primarily due to inherent risk related to loan growth and an increase in nonperforming loans of $348,000.
Core deposits increased 19.1% or $254.3 million, to $1.59 billion at March 31, 2005, from $1.33 billion at March 31, 2004. Of this increase, 4.5% or $59.8 million was due to the acquisition of Millennium Bank. Total deposits increased $269.0 million for the same period, which was primarily due to the growth in core deposits. Average borrowings increased $202.6 million primarily to support loan growth and the Millennium Bank acquisition.
Total noninterest income of $6.9 million for the first quarter of 2005 reflects an increase of $1.2 million from the comparable period in 2004, primarily due to increases of $808,000 in trust and investment advisory fees, $225,000 in income from reinsurance activities and $226,000 in gains related to the auto leasing portfolio, partially offset by $223,000 in losses related to the equipment leasing portfolio.
-6-

 
Noninterest expense of $15.5 million for the first quarter of 2005 increased $1.7 million or 12.2% from $13.8 million in the first quarter of 2004. The increase in noninterest expense was mainly due to a $1.2 million increase in salaries and benefits, primarily related to the acquisition of Millennium Bank and higher healthcare costs. In addition, occupancy expense increased $307,000 during the first quarter of 2005 over the comparable period in 2004 mostly due to the Millennium acquisition and a new branch opening, deferred compensation expense for directors and employees increased $168,000 and advertising expense increased $223,000. Partially offsetting these variances was higher loan origination expense deferrals amounting to $457,000 related to higher loan origination volume.
Harleysville National Corporation, with assets of $3 billion, is the holding company for Harleysville National Bank (HNB). Investment Management and Trust Services are provided through Millennium Wealth Management & Private Banking, a division of HNB, with assets under management exceeding $1.6 billion. Cumberland Advisors, Inc., a SEC registered investment advisor specializing in fixed-income money management and equities, using exchange-traded funds, is also a part of Millennium Wealth Management & Private Banking. Harleysville National Corporation stock is traded under the symbol "HNBC" and is commonly quoted under Nasdaq National Market Issues. For more information, visit the HNC Web site at www.hncbank.com.
 
This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. Such factors include the possibility that increased demand or prices for the Corporation’s financial services and products may not occur, changing economic and competitive conditions, technological developments, and other risks and uncertainties, including those detailed in the Corporation’s filings with the Securities and Exchange Commission.
 
-7-



Harleysville National Corporation
                               
Consolidated Selected Financial Data
                               
(Dollars in thousands, except per share data)
                               
March 31, 2005
                               
(unaudited)
                               
                                 
For the period:
         
            Three Months Ended
     
 
   
        Mar. 31, 
   
Dec. 31,
   
Sept. 30,
   
June 30,
   
Mar. 31,
 
 
   
2005
   
2004
   
2004
   
2004
   
2004
 
Interest Income
 
$
35,272
 
$
34,196
 
$
33,366
 
$
30,994
 
$
29,173
 
Interest Expense
   
13,602
   
12,735
   
11,286
   
9,674
   
8,943
 
Net Interest Income
   
21,670
   
21,461
   
22,080
   
21,320
   
20,230
 
Provision for Loan Losses
   
750
   
1,070
   
499
   
497
   
489
 
Net Interest Income after
                               
Provision for Loan Losses
   
20,920
   
20,391
   
21,581
   
20,823
   
19,741
 
                                 
Service Charges
   
1,957
   
1,953
   
2,000
   
1,929
   
1,925
 
Gains on Sales of Investment Securities, Net
   
923
   
2,036
   
112
   
641
   
900
 
Trust, Investment Services and Advisory Income
   
1,929
   
1,999
   
1,878
   
1,588
   
1,121
 
Bank-Owned Life Insurance Income
   
493
   
627
   
647
   
521
   
611
 
Income on Life Insurance
   
-
   
586
   
-
   
-
   
-
 
Other Income
   
1,641
   
2,194
   
2,056
   
1,608
   
1,226
 
Total Noninterest Income
   
6,943
   
9,395
   
6,693
   
6,287
   
5,783
 
                                 
Salaries, Wages and Employee Benefits
   
9,500
   
10,215
   
9,754
   
8,834
   
8,277
 
Occupancy
   
1,391
   
1,218
   
1,135
   
1,120
   
1,084
 
Furniture and Equipment
   
1,373
   
1,454
   
1,414
   
1,510
   
1,258
 
Other Expenses
   
3,239
   
3,787
   
2,174
   
3,129
   
3,198
 
Total Noninterest Expense
   
15,503
   
16,674
   
14,477
   
14,593
   
13,817
 
                                 
Income Before Income Taxes
   
12,360
   
13,112
   
13,797
   
12,517
   
11,707
 
Income Tax Expense
   
3,195
   
2,999
   
3,632
   
3,135
   
2,800
 
Net Income
 
$
9,165
 
$
10,113
 
$
10,165
 
$
9,382
 
$
8,907
 
                                 
Per Common Share Data:
                               
Weighted Average Common Shares - Basic
   
26,247,137
   
26,182,888
   
26,240,616
   
25,861,549
   
25,128,032
 
Weighted Average Common Shares - Diluted
   
26,967,759
   
27,057,756
   
27,055,603
   
26,722,932
   
26,033,205
 
Net Income Per Share - Basic
 
$
0.35
 
$
0.38
 
$
0.39
 
$
0.37
 
$
0.35
 
Net Income Per Share - Diluted
 
$
0.34
 
$
0.37
 
$
0.38
 
$
0.35
 
$
0.34
 
Cash Dividend Per Share
 
$
0.18
 
$
0.22
 
$
0.18
 
$
0.16
 
$
0.16
 
Book Value
 
$
10.24
 
$
10.30
 
$
10.19
 
$
9.58
 
$
9.45
 
Market Value
 
$
21.25
 
$
26.60
 
$
24.51
 
$
24.38
 
$
26.50
 
                                 
                                 
     
2005
   
2004
   
2004
   
2004
   
2004
 
Asset Quality Data:
   
1Q
   
4Q
   
3Q
   
2Q
   
1Q
 
Nonaccrual Loans
 
$
4,572
 
$
4,705
 
$
3,350
 
$
3,245
 
$
3,645
 
90 + Days Past Due Loans
   
1,748
   
981
   
948
   
919
   
1,178
 
Nonperforming Loans
   
6,320
   
5,686
   
4,298
   
4,164
   
4,823
 
Net Assets in Foreclosure
   
411
   
370
   
347
   
389
   
423
 
Nonperforming Assets
 
$
6,731
 
$
6,056
 
$
4,645
 
$
4,553
 
$
5,246
 
Loan Loss Reserve
 
$
18,724
 
$
18,455
 
$
17,795
 
$
17,940
 
$
16,464
 
Loan Loss Reserve / Loans
   
1.00
%
 
1.00
%
 
1.00
%
 
1.07
%
 
1.15
%
Loan Loss Reserve / Nonperforming Loans
   
296.3
%
 
324.6
%
 
414.0
%
 
430.8
%
 
341.3
%
Nonperforming Assets / Total Assets
   
0.22
%
 
0.20
%
 
0.16
%
 
0.16
%
 
0.21
%
Net Loan Charge-offs
 
$
481
 
$
410
 
$
644
 
$
698
 
$
778
 
Net Loan Charge-offs (annualized)
                               
/ Average Loans
   
0.11
%
 
0.09
%
 
0.15
%
 
0.18
%
 
0.22
%
                                 
                                 
     
2005
   
2004
   
2004
   
2004
   
2004
 
Selected Ratios (annualized):
   
1Q
   
4Q
   
3Q
   
2Q
   
1Q
 
Return on Average Assets
   
1.25
%
 
1.36
%
 
1.40
%
 
1.37
%
 
1.43
%
Return on Average Shareholders' Equity
   
13.69
%
 
15.00
%
 
15.61
%
 
15.06
%
 
15.33
%
Yield on Earning Assets (FTE)
   
5.34
%
 
5.16
%
 
5.18
%
 
5.12
%
 
5.25
%
Cost of Interest Bearing Funds
   
2.37
%
 
2.19
%
 
2.01
%
 
1.82
%
 
1.86
%
Net Interest Margin (FTE)
   
3.37
%
 
3.34
%
 
3.51
%
 
3.62
%
 
3.73
%
Leverage Ratio
   
8.99
%
 
8.91
%
 
8.99
%
 
9.28
%
 
10.04
%
                                 
 
 
-8-

 
                                 
Balance Sheet (Period End):
   
2005
   
2004
   
2004
   
2004
   
2004
 
 
   
                  1Q 
   
4Q
   
3Q
   
2Q
   
1Q
 
Assets
 
$
3,002,572
 
$
3,024,515
 
$
2,976,173
 
$
2,865,949
 
$
2,542,328
 
Earning Assets
   
2,817,956
   
2,845,656
   
2,791,891
   
2,678,772
   
2,406,068
 
Investment Securities
   
907,379
   
943,563
   
975,750
   
957,398
   
948,749
 
Loans, Net of Unearned Fees
   
1,865,641
   
1,845,802
   
1,774,189
   
1,683,528
   
1,428,145
 
Other Earning Assets
   
44,936
   
56,291
   
41,952
   
37,846
   
29,174
 
Interest-Bearing Liabilities
   
2,343,177
   
2,367,229
   
2,332,102
   
2,218,687
   
1,930,052
 
Total Deposits
   
2,237,567
   
2,212,563
   
2,209,753
   
2,093,101
   
1,968,521
 
Noninterest-Bearing Deposits
   
332,525
   
333,516
   
325,132
   
345,191
   
317,566
 
Interest-Bearing Checking
   
352,132
   
305,584
   
320,276
   
258,739
   
268,110
 
Money Market
   
679,872
   
713,039
   
661,480
   
561,823
   
521,085
 
Savings
   
222,553
   
223,039
   
229,992
   
245,768
   
225,981
 
Time, under $100,000
   
523,782
   
508,010
   
527,971
   
523,587
   
481,400
 
Time, $100,000 or greater
   
126,703
   
129,375
   
144,902
   
157,993
   
154,379
 
Total Borrowed Funds
   
438,135
   
488,182
   
447,481
   
470,777
   
279,097
 
Federal Home Loan Bank
   
272,750
   
317,750
   
257,750
   
241,750
   
172,750
 
Other Borrowings
   
165,385
   
170,432
   
189,731
   
229,027
   
106,347
 
Shareholders' Equity
   
268,624
   
270,532
   
266,966
   
251,877
   
237,964
 
                                 
                                 
                                 
Balance Sheet (Average):
   
2005
   
2004
   
2004
   
2004
   
2004
 
   
     1Q
   
4Q
   
3Q
   
2Q
   
1Q
 
Assets
 
$
2,976,361
 
$
2,957,559
 
$
2,878,769
 
$
2,759,563
 
$
2,497,085
 
Earning Assets
   
2,801,817
   
2,776,599
   
2,695,579
   
2,593,105
   
2,365,497
 
Investment Securities
   
910,981
   
941,704
   
932,330
   
983,420
   
910,314
 
Loans, Net of Unearned Fees
   
1,845,408
   
1,793,935
   
1,717,245
   
1,572,830
   
1,414,802
 
Other Earning Assets
   
45,428
   
40,960
   
46,004
   
36,855
   
40,381
 
Interest-Bearing Liabilities
   
2,328,569
   
2,308,446
   
2,237,681
   
2,136,010
   
1,931,950
 
Total Deposits
   
2,196,584
   
2,213,829
   
2,154,443
   
2,048,279
   
1,961,481
 
Noninterest-Bearing Deposits
   
321,912
   
324,466
   
329,559
   
316,715
   
280,809
 
Interest-Bearing Checking
   
325,081
   
317,328
   
285,735
   
274,978
   
280,142
 
Money Market
   
688,602
   
692,703
   
620,420
   
537,614
   
517,846
 
Savings
   
222,853
   
226,251
   
237,463
   
239,971
   
222,807
 
Time, under $100,000
   
513,986
   
517,167
   
525,701
   
508,275
   
487,379
 
Time, $100,000 or greater
   
124,150
   
135,914
   
155,565
   
170,726
   
172,498
 
Total Borrowed Funds
   
453,897
   
419,083
   
412,797
   
404,446
   
251,278
 
Federal Home Loan Bank
   
292,917
   
263,566
   
255,837
   
187,608
   
172,750
 
Other Borrowings
   
160,980
   
155,517
   
156,960
   
216,838
   
78,528
 
Shareholders' Equity
   
271,531
   
268,211
   
259,035
   
250,504
   
232,386
 


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