HARL Harleysville Financial Corporation (QX)

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 21, 2014 to stockholders of record on May 7, 2014.

Net income for the second quarter was $1,212,000 or $.31 per diluted share compared to $1,202,000 or $.31 per diluted share for the same quarter last year.

Net income for the six months ended March 31, 2014 amounted to $2,514,000 or $.65 per diluted share compared to $2,502,000 or $.65 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. Despite this environment, our Team was able to increase our total loans, checking and savings accounts, and the interest rate spread over the prior quarter and prior year amounts. In addition, the 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 $796.9 million compared to $804.4 million a year ago. Stockholders’ tangible book value increased 2.5% to $16.53 per share from $16.12 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, 2014   (Dollars in thousands except per share data) Year-To-Date                  

(Unaudited)

Six Months Ended: Three Months Ended:   Selected Consolidated Earnings Data Mar 31, 2014 Mar 31, 2013 Mar 31, 2014 Dec 31, 2013 Sept 30, 2013 Jun 30, 2013 Mar 31, 2013 Total interest income $ 14,612 $ 15,676 $ 7,269 $ 7,343 $ 7,471 $ 7,440 $ 7,669 Total interest expense 5,423 6,547 2,535 2,888 2,967 3,013 3,170   Net Interest Income 9,189 9,129 4,734 4,455 4,504 4,427 4,499 Provision for loan losses 460 440 210 250 240 210 185 Net Interest Income after Provision for Loan Losses 8,729 8,689 4,524 4,205 4,264 4,217 4,314   Gain on sale of investments 595 - 291 304 - 68 - Gain on sales of loans - 515 - - 32 77 261 Bank owned life insurance 213 224 103 110 109 104 118 Other income 842 924 355 487 486 445 475 Total other expenses 6,637 6,524   3,380   3,257   3,273   3,186   3,267   Income before income taxes 3,742 3,828 1,893 1,849 1,618 1,725 1,901 Income tax expense 1,228 1,326 681 547 471 562 699   Net Income $ 2,514 $ 2,502 $ 1,212 $ 1,302 $ 1,147 $ 1,163 $ 1,202     Per Common Share Data Basic earnings $ 0.66 $ 0.66 $ 0.32 $ 0.34 $ 0.30 $ 0.31 $ 0.32 Diluted earnings $ 0.65 $ 0.65 $ 0.31 $ 0.34 $ 0.30 $ 0.30 $ 0.31 Dividends $ 0.42 $ 0.41 $ 0.21 $ 0.21 $ 0.21 $ 0.21 $ 0.21 Tangible book value $ 16.53 $ 16.12 $ 16.53 $ 16.41 $ 16.27 $ 16.17 $ 16.12 Shares outstanding 3,798,956 3,774,147 3,798,956 3,797,231 3,786,627 3,781,917 3,774,147 Average shares outstanding - basic 3,793,789 3,767,884 3,797,191 3,790,460 3,783,441 3,778,626 3,768,825 Average shares outstanding - diluted 3,870,259 3,839,140 3,868,522 3,872,464 3,884,851 3,894,556 3,842,381       Year-To-Date                   Six Months Ended: Three Months Ended: Other Selected Consolidated Data

 

Mar 31, 2014 Mar 31, 2013 Mar 31, 2014 Dec 31, 2013 Sept 30, 2013 Jun 30, 2013 Mar 31, 2013 Return on average assets 0.63% 0.63% 0.61% 0.65% 0.57% 0.58% 0.60% Return on average equity 8.10% 8.34% 7.77% 8.43% 7.50% 7.66% 7.97% Net interest rate spread 2.19% 2.17% 2.28% 2.10% 2.12% 2.10% 2.14% Net yield on interest earning assets 2.35% 2.34% 2.43% 2.27% 2.30% 2.28% 2.31% Operating expenses to average assets 1.65% 1.63% 1.69% 1.61% 1.62% 1.60% 1.64% Efficiency ratio 64.78% 63.48% 65.10% 64.47% 64.17% 64.04% 64.17%

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

1.53% 1.96% 1.53% 1.64% 1.58% 1.68% 1.96% Loan loss reserve to total loans, net 0.66% 0.90% 0.66% 0.74%

0.70%

0.78% 0.90% Stockholders' equity to assets 7.88% 7.56% 7.88% 7.70% 7.60% 7.68% 7.56%                     Selected Consolidated Financial Data Mar 31, 2014   Dec 31, 2013   Sept 30, 2013   Jun 30, 2013   Mar 31, 2013 Total assets $ 796,887 $ 809,273 $ 810,363 $ 796,628 $ 804,421 Cash & investment securities 79,243 81,996 81,394 74,237 92,132 Mortgage-backed securities 194,351 206,365 213,625 207,984 192,824 Total Investments 273,594 288,361 295,019 282,221 284,956 Consumer Loans receivable 363,929 362,604 359,573 362,581 372,956 Commercial Loans receivable 122,484 122,756 120,091 115,945 110,525 Loan loss reserve (3,226) (3,567) (3,345) (3,732) (4,318) Total Loans receivable net 483,187 481,793 476,319 474,794 479,163 Total Loans held for sale - 371 373 629 356 FHLB stock 9,386 9,040 9,070 8,514 8,802 Checking accounts 117,672 112,329 110,583 114,804 111,115 Savings accounts 180,718 176,842 175,910 173,004 171,433 Certificate of deposit accounts 225,427 237,844 248,225 256,899 263,849 Total Deposits 523,817 527,015 534,718 544,707 546,397 Advances 200,291 212,160 208,058 180,785 187,997 Total stockholders' equity 62,804 62,302 61,617 61,156 60,830  

Harleysville Savings Financial CorporationBrendan J. McGillExecutive Vice President, COO/CFO215-256-8828