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. This is an increase of 10.6% from the prior year’s dividend. The cash dividend will be payable on February 20, 2013 to stockholders of record on February 6, 2013.

Net income for the quarter ended December 31, 2012 was $1,301,000 or $.34 per diluted share compared to $1,364,000 or $.36 per diluted share for the same quarter last year.

Ron Geib, President and Chief Executive Officer of the Company, stated, “We are pleased to begin a new fiscal year with solid financial results. During the quarter, a milestone was reached by deregistering from the SEC and consequently, having our stock listed on the OTCQB. This opportunity was a result of the Jumpstart Our Business Startups Act (or the JOBS Act) that was passed by Congress in April, 2012. This event will reduce regulatory operating expenses for the Company by approximately $250,000 annually. As a result of the financial strength of the Company and the benefits of the JOBS Act, the decision was made to pass along additional value to our stockholders by increasing the cash dividend to $.21 per share.”

The Company’s assets totaled $802.9 million compared to $832.6 million a year ago, and stockholders’ tangible book value increased to $15.99 per share from $15.39 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 December 31, 2012 (Dollars in thousands except per share data)  

( Unaudited)

Three Months Ended:         Selected Consolidated Earnings Data

Dec 31,2012

Sept 30,2012

Jun 30,2012

Mar 31,2012

Dec 31,2011

Total interest income $ 8,007 $ 8,194 $ 8,599 $ 8,736 $ 9,005 Total interest expense   3,377     3,483     3,691     3,955     3,967     Net Interest Income 4,630 4,711 4,908 4,781 5,038 Provision for loan losses   255     170     255     255     250   Net Interest Income after Provision for Loan Losses   4,375     4,541     4,653     4,526     4,788     Gain on sale of investments - - 34 - - Gain on sales of loans 254 34 - - - Bank owned life insurance 106 122 121 121 122 Other income 449 382 443 341 449 Total other expenses   3,256     3,392     3,385     3,413     3,298     Income before income taxes 1,928 1,687 1,866 1,575 2,061 Income tax expense   627     531     555     354     697     Net Income $ 1,301   $ 1,156   $ 1,311   $ 1,221   $ 1,364       Per Common Share Data Basic earnings $ 0.35 $ 0.31 $ 0.35 $ 0.33 $ 0.36 Diluted earnings $ 0.34 $ 0.30 $ 0.34 $ 0.32 $ 0.36 Dividends $ 0.20 $ 0.20 $ 0.20 $ 0.19 $ 0.19 Tangible book value $ 15.99 $ 15.85 $ 15.73 $ 15.56 $ 15.39 Shares outstanding 3,779,969 3,768,931 3,747,031 3,728,089 3,772,028 Average shares outstanding - basic 3,766,963 3,752,764 3,736,462 3,738,430 3,763,147 Average shares outstanding - diluted 3,836,023 3,834,826 3,823,689 3,794,487 3,790,457                         Three Months Ended: Other Selected Consolidated Data

Dec 31,2012

Sept 30,2012

Jun 30,2012

Mar 31,2012

Dec 31,2011

Return on average assets 0.65 % 0.57 % 0.63 % 0.59 % 0.66 % Return on average equity 8.71 % 7.83 % 9.00 % 8.44 % 9.40 % Net interest rate spread 2.20 % 2.23 % 2.27 % 2.19 % 2.33 % Net yield on interest earning assets 2.37 % 2.40 % 2.44 % 2.36 % 2.49 % Operating expenses to average assets 1.62 % 1.68 % 1.63 % 1.64 % 1.57 % Efficiency ratio 62.80 % 65.04 % 61.85 % 65.10 % 58.80 % Ratio of non-performing loans to total assets at end of period 1.95 % 1.85 % 1.44 % 1.00 % 0.64 % Loan loss reserve to total loans, net 0.85 % 0.81 % 0.71 % 0.73 % 0.68 % Stockholders' equity to assets 7.53 % 7.44 % 7.16 % 6.89 % 6.97 %                     Selected Consolidated Financial Data

Dec 31,2012

Sept 30,2012

Jun 30,2012

Mar 31,2012

Dec 31,2011

Total assets $ 802,890 $ 802,626 $ 822,726 $ 842,266 $ 832,630 Consumer Loans receivable 378,865 394,634 400,463 409,244 416,900 Commercial Loans receivable 106,029 103,765 103,997 102,655 99,593 Loan loss reserve (4,135 ) (4,032 ) (3,867 ) (3,809 ) (3,559 ) Total Loans receivable net 480,759 494,367 500,593 508,090 512,934 Total Loans held for sale 5,620 3,515 - - - Cash & investment securities 114,789 99,582 117,380 145,569 119,448 Mortgage-backed securities 161,906 162,710 152,025 145,405 156,411 Total Investments 276,695 262,292 269,405 290,974 275,859 FHLB stock 8,834 10,165 11,240 11,832 12,455 Checking accounts 108,408 101,033 106,661 112,165 96,671 Savings accounts 162,887 162,719 160,136 153,684 147,156 Certificate of deposit accounts 272,292 279,171 282,868 284,572 286,544 Total Deposits 543,587 542,923 549,665 550,421 530,371 Advances 191,287 192,483 203,765 227,228 238,676 Total stockholders' equity 60,435 59,736 58,924 58,026 58,033