Dear Customers, Neighbors and Friends,
As we celebrate our 106th anniversary as a community bank, we are thankful for our Board of Directors and Team Members whose dedication to our culture and stakeholders has allowed us to continue growing our company. At Harleysville Bank our success is measured by focusing on our customers’ needs, creating a safe workplace for our team, supporting our communities and creating a strong return on investment.
Our performance this past year, in light of the prolonged pandemic and challenging interest rate environment, produced another year of strong financial results. Net income for the year amounted to $1.93 per share on a diluted basis compared to $1.87 per diluted share for the past fiscal year. Return on average equity was 9.12% and return on average assets was 0.82% for the year. Stockholders’ equity increased to $21.69 per share compared to $20.96 per share a year ago.
We continue to have measured commercial loan growth with the help of our experienced team of lenders. Our lenders are not just loan generators, they are true community bankers. They are a resource to many of our business customers, offering help and advice beyond the settlement table. Our team worked tirelessly to provide Payroll Protection Program (PPP) loans to local businesses in our community. We processed over 479 loans which equated to over $37,224,634 reinvested into our communities and over 3,700 jobs saved.
While our solid financial results tell a great story – I recognize that my fellow team members and their efforts are responsbile for our success. It is important we provide a work environment where we can focus on growing our team; over this past year we had 8 internal promotions. Our team has continued to show such strength and resilience this past year all while serving our customers each day and staying committed to our values and culture.
While giving back continued to look different than previous years, our team still stepped up and supported our communities. During this past fiscal year our team volunteered over 4,000 hours to over 70 organizations. We continued our annual giving campaign, where our team donated $42,944 which was then matched 100% by the Bank for a total donation of $85,888. Through our campaign, the team made a direct impact to 57 local nonprofit organizations. Giving back is simply a way of life for the team at Harleysville Bank; and we are proud that despite the challenging environment we can continue to support our local economy and communities.
We are grateful for our rich heritage and community banking values which have set us apart from many in the marketplace. We are extremely thankful for our dedicated team members, shareholders and customers who have placed their trust in us. As we look ahead to the coming year, our position as a community bank continues to be strong. We will continue to honor the safe and conservative principles that have served us well over the years. Thank you for your continued support and, as always, we welcome your comments and questions.
Brendan J. McGill
President/Chief Executive Officer