Harleysville Savings Financial Corporation Announces Regular Cash Dividend and Third Quarter Earning

Harleysville Savings Financial Corporation Announces Regular Cash Dividend and Third 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. The cash dividend will be payable on August 21, 2013 to stockholders of record on August 7, 2013.

Net income for the third quarter was $1,163,000 or $.30 per diluted share compared to $1,311,000 or $.34 per diluted share for the same quarter last year.


Net income for the nine months ended June 30, 2013 amounted to $3,666,000 or $.95 per diluted share compared to $3,896,000 or $1.03 per diluted share for the same nine-month period a year ago.

Ron Geib, President and Chief Executive Officer of the Company, stated, "We continue to experience positive results by adhering to our fundamental operating principles of maintaining prudent underwriting standards, investing in high credit quality assets, controlling our operating expenses, and practicing sound capital management.

"We are very pleased with our growth in transaction relationships, commercial relationships and our tangible book value. Our team works hard providing financial products and services as we help to strengthen the communities we serve.

"In addition, we believe that the recent increase in longer term interest rates will be beneficial to the bank over the coming quarters."

The Company's assets totaled $796.6 million compared to $822.7 million a year ago. Stockholders' tangible book value increased 2.8% to $16.17 per share from $15.73 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 June 30, 2013

(Dollars in thousands except per share data)

Year-To-Date

(Unaudited)

Nine Months Ended:

Three Months Ended:

Selected Consolidated Earnings Data

Jun 30, 2013

Jun 30, 2012

Jun 30, 2013

Mar 31, 2013

Dec 31, 2012

Sept 30, 2012

Jun 30, 2012

Total interest income

$

23,116

$

26,340

$

7,440

$

7,669

$

8,007

$

8,194

$

8,599

Total interest expense

9,560

11,613

3,013

3,170

3,377

3,483

3,691

Net Interest Income

13,556

14,727

4,427

4,499

4,630

4,711

4,908

Provision for loan losses

650

760

210

185

255

170

255

Net Interest Income after Provision for Loan Losses

12,906

13,967

4,217

4,314

4,375

4,541

4,653

Gain on sale of investments

68

34

68

-

-

-

34

Gain on sales of loans

592

-

77

261

254

34

-

Bank owned life insurance

328

364

104

118

106

122

121

Other income

1,369

1,233

445

475

449

382

443

Total other expenses

9,709

10,096

3,186

3,267

3,256

3,392

3,385

Income before income taxes

5,554

5,502

1,725

1,901

1,928

1,687

1,866

Income tax expense

1,888

1,606

562

699

627

531

555

Net Income

$

3,666

$

3,896

$

1,163

$

1,202

$

1,301

$

1,156

$

1,311

Per Common Share Data

Basic earnings

$

0.97

$

1.04

$

0.31

$

0.32

$

0.35

$

0.31

$

0.35

Diluted earnings

$

0.95

$

1.03

$

0.30

$

0.31

$

0.34

$

0.30

$

0.34

Dividends

$

0.62

$

0.58

$

0.21

$

0.21

$

0.20

$

0.20

$

0.20

Tangible book value

$

16.17

$

15.73

$

16.17

$

16.12

$

15.99

$

15.85

$

15.73

Shares outstanding

3,781,917

3,747,031

3,781,917

3,774,147

3,779,969

3,768,931

3,747,031

Average shares outstanding - basic

3,771,464

3,746,038

3,778,626

3,768,825

3,766,963

3,752,764

3,736,462

Average shares outstanding - diluted

3,855,565

3,801,159

3,894,556

3,842,381

3,836,023

3,834,826

3,823,689

Year-To-Date

Nine Months Ended:

Three Months Ended:

Other Selected Consolidated Data

Jun 30, 2013

Jun 30, 2012

Jun 30, 2013

Mar 31, 2013

Dec 31, 2012

Sept 30, 2012

Jun 30, 2012

Return on average assets

0.61

%

0.61

%

0.58

%

0.60

%

0.65

%

0.57

%

0.63

%

Return on average equity

8.11

%

8.72

%

7.66

%

7.97

%

8.71

%

7.83

%

9.00

%

Net interest rate spread

2.15

%

2.26

%

2.10

%

2.14

%

2.20

%

2.23

%

2.27

%

Net yield on interest earning assets

2.32

%

2.43

%

2.28

%

2.31

%

2.37

%

2.40

%

2.44

%

Operating expenses to average assets

1.62

%

1.64

%

1.60

%

1.64

%

1.62

%

1.68

%

1.63

%

Efficiency ratio

64.07

%

63.47

%

64.04

%

64.17

%

62.80

%

65.04

%

61.85

%

Ratio of non-performing loans to total assets at end of period

1.68

%

1.44

%

1.68

%

1.96

%

1.95

%

1.85

%

1.44

%

Loan loss reserve to total loans, net

0.78

%

0.71

%

0.78

%

0.90

%

0.85

%

0.81

%

0.71

%

Stockholders' equity to assets

7.68

%

7.16

%

7.68

%

7.56

%

7.53

%

7.44

%

7.16

%