Harleysville Savings Financial Corporation Announces Regular Cash Dividend and Second Quarter Earnin

Harleysville Savings Financial Corporation Announces Regular Cash Dividend and Second Quarter Earnings for Fiscal Year 2013

HARLEYSVILLE, Pa.--(BUSINESS WIRE)-- Harleysville Savings Financial Corporation (OTCQB:HARL) reported today that the Company's board of directors declared a regular quarterly cash dividend of $.21 per share on the Company's common stock. The cash dividend will be payable on May 22, 2013 to stockholders of record on May 8, 2013.

Net income for the second quarter was $1,202,000 or $.31 per diluted share compared to $1,221,000 or $.32 per diluted share for the same quarter last year.


Net income for the six months ended March 31, 2013 amounted to $2,502,000 or $.65 per diluted share compared to $2,585,000 or $.68 per diluted share for the same six-month period a year ago.

Commenting on the quarter-end operating results, President and Chief Executive Officer Ron Geib stated, "The low level of interest rates continues to provide a unique challenge for the financial industry. This environment, along with a continued lack in demand for loans, is putting pressure on the interest margins and constraining the growth in the balance sheet. Given these conditions, we are very pleased to report another quarter of solid financial results. Our net interest income, level of non-performing loans and other expenses, are closely monitored and are the key to allowing us to deliver consistent, ongoing returns for our shareholders."

The Company's assets totaled $804.4 million compared to $842.3 million a year ago. Stockholders' tangible book value increased 3.6% to $16.12 per share from $15.56 a year ago.

Harleysville Savings Financial Corporation is traded on the OTCQB market under the symbol HARL ( http://www.otcmarkets.com ) and is the holding company for Harleysville Savings Bank. Established in 1915, Harleysville Savings Bank is a Pennsylvania chartered and federally insured savings bank, headquartered in Harleysville, PA. The Bank operates from six full-service offices located in Montgomery County and one office located in Bucks County, Pennsylvania.

This presentation may contain forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995). Actual results may differ materially from the results discussed in these forward-looking statements. Factors that might cause such a difference include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, loan demand, real estate values and competition; changes in accounting principles, policies, or guidelines; changes in legislation or regulation; and other economic; competitive, governmental, regulatory, and technological factors affecting the Company's operations, pricing, products and services.

Harleysville Savings Financial Corporation

Selected Consolidated Financial Data as of March 31, 2013

(Dollars in thousands except per share data)

Year-To-Date

( Unaudited)

Six Months Ended:

Three Months Ended:

Selected Consolidated Earnings Data

Mar 31,
2013

Mar 31,
2012

Mar 31,
2013

Dec 31, 2012

Sept 30,
2012

Jun 30, 2012

Mar 31,
2012

Total interest income

$

15,676

$

17,741

$

7,669

$

8,007

$

8,194

$

8,599

$

8,736

Total interest expense

6,547

7,922

3,170

3,377

3,483

3,691

3,955

Net Interest Income

9,129

9,819

4,499

4,630

4,711

4,908

4,781

Provision for loan losses

440

505

185

255

170

255

255

Net Interest Income after Provision for Loan Losses

8,689

9,314

4,314

4,375

4,541

4,653

4,526

Gain on sale of investments

-

-

-

-

-

34

-

Gain on sales of loans

515

-

261

254

34

-

-

Bank owned life insurance

224

243

118

106

122

121

121

Other income

924

790

475

449

382

443

341

Total other expenses

6,524

6,711

3,267

3,256

3,392

3,385

3,413

Income before income taxes

3,828

3,636

1,901

1,928

1,687

1,866

1,575

Income tax expense

1,326

1,051

699

627

531

555

354

Net Income

$

2,502

$

2,585

$

1,202

$

1,301

$

1,156

$

1,311

$

1,221

Per Common Share Data

Basic earnings

$

0.66

$

0.69

$

0.32

$

0.35

$

0.31

$

0.35

$

0.33

Diluted earnings

$

0.65

$

0.68

$

0.31

$

0.34

$

0.30

$

0.34

$

0.32

Dividends

$

0.41

$

0.38

$

0.21

$

0.20

$

0.20

$

0.20

$

0.19

Tangible book value

$

16.12

$

15.56

$

16.12

$

15.99

$

15.85

$

15.73

$

15.56

Shares outstanding

3,774,147

3,728,089

3,774,147

3,779,969

3,768,931

3,747,031

3,728,089

Average shares outstanding - basic

3,767,884

3,750,800

3,768,825

3,766,963

3,752,764

3,736,462

3,738,430

Average shares outstanding - diluted

3,839,140

3,790,592

3,842,381

3,836,023

3,834,826

3,823,689

3,794,487

Year-To-Date

Six Months Ended:

Three Months Ended:

Other Selected Consolidated Data

Mar 31,
2013

Mar 31,
2012

Mar 31,
2013

Dec 31, 2012

Sept 30,
2012

Jun 30, 2012

Mar 31,
2012

Return on average assets

0.63

%

0.62

%

0.60

%

0.65

%

0.57

%

0.63

%

0.59

%

Return on average equity

8.34

%

8.97

%

7.97

%

8.71

%

7.83

%

9.00

%

8.44

%

Net interest rate spread

2.17

%

2.26

%

2.14

%

2.20

%

2.23

%

2.27

%

2.19

%

Net yield on interest earning assets

2.34

%

2.43

%

2.31

%

2.37

%

2.40

%

2.44

%

2.36

%

Operating expenses to average assets

1.63

%

1.62

%

1.64

%

1.62

%

1.68

%

1.63

%

1.64

%

Efficiency ratio

63.48

%

61.95

%

64.17

%

62.80

%

65.04

%

61.85

%

65.10

%

Ratio of non-performing loans to total

assets at end of period

1.96

%

1.00

%

1.96

%

1.95

%

1.85

%

1.44

%

1.00

%

Loan loss reserve to total loans, net

0.90

%

0.73

%

0.90

%

0.85

%

0.81

%

0.71

%

0.73

%

Stockholders' equity to assets

7.56

%

6.89

%

7.56

%

7.53

%

7.44

%

7.16

%

6.89

%

Selected Consolidated Financial Data

Mar 31,
2013

Dec 31,
2012

Sept 30,
2012

Jun 30, 2012

Mar 31,
2012

Total assets

$

804,421

$

802,890

$

802,626

$

822,726

$

842,266

Consumer Loans receivable

372,956

378,865

394,634

400,463

409,244

Commercial Loans receivable

110,525

106,029

103,765

103,997

102,655