Dear Customers, Neighbors and Friends,
At Harleysville Bank, we are excited to be celebrating our 105th year as a community bank. I appreciate our Board of Directors and team members whose dedication to our culture and stakeholders has allowed us to help our customers succeed and grow our company. Our performance this past year, in light of the ongoing pandemic and lower interest rate environment, produced another year of strong financial results. Net income for the year amounted to $1.87 per share on a diluted basis compared to $2.13 per diluted share for the past fiscal year. Return on average equity was 9.21% and return on average assets was 0.87% for the year. Stockholders’ equity increased to $20.96 per share compared to $20.26 per share a year ago.
As we continue to navigate through the COVID-19 pandemic and the resulting economic impact, the well-being of our customers, team members, stockholders and communities we serve remains our top priority. To our customers, it’s continuing to provide them with the services they need in a safe and convenient way. To our team members, it means providing a safe and healthy workplace with flexibility and the opportunity for advancement. To the communities we serve, it's helping businesses thrive and continuing to help improve overall quality of life. To you our stockholders, it’s a strong return on your investment.
Solid financial results are only part of the story – in fact, without our customers there wouldn’t be much of a story to tell. As an independent community bank, we have the power to make local decisions that allow us to remain strong and to react to customer needs in a timely fashion. Through the recent Payroll Protection Program (PPP), we were able to provide 324 loans to local businesses in our communities. We continue to be focused on building relationships and earning our customer loyalty as they choose Harleysville Bank as their trusted financial partner.
As a community bank, we take pride in reinvesting in the communities that we serve. One of the greatest qualities of our team is the willingness to give back and to take care of our customers and communities in anyway we can. While giving back looked different this year, we were still able to support our communities. Many events went virtual which limited the Bank’s in person contributions, however during this past fiscal year our team still volunteered over 4,000 hours to over 70 organizations. The Bank team also held a food drive where enough items were collected to distribute among 6 local nonprofit organizations in our area that were seeing increases of 2-3x ‘pre-pandemic’ volume. We continued our annual giving campaign, where our team donated $42,886 which was then matched 100% by the Bank for a total donation of $85,772. Through our campaign, the team made a direct impact to 57 local nonprofit organizations. We are proud that despite the challenging environment we can continue to support our local economy and communities.
The success that Harleysville Bank has enjoyed is a tribute to our greatest assets, our talented team members who serve our customers. This year’s theme was “Leading with Integrity”. I am fortunate to have a team of highly-talented community bankers dedicated to exceeding the expectations of Harleysville Bank customers. Our integrity determines who we really are and our team has stepped up during this pandemic. Our team continued to serve our customers in very unique circumstances, coming up with new and creative ways to get business done; all while staying committed to our culture and values.
We remain clearly aligned with the mission of the Company – to build value for our customers, team members, stockholders and the community by consistently providing an exceptional community banking experience. As we look ahead to the coming year, our position as a community bank continues to be strong, and we are confident that we are headed towards another strong and successful year. We will continue to honor the safe and conservative principles that have served us well over the years. On behalf of our Directors and our Team, we thank you for your continued trust, confidence and investment in our Company.
Brendan J. McGill
President/Chief Executive Officer