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 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 Loan loss reserve (4,318 ) (4,135 ) (4,032 ) (3,867 ) (3,809 ) Total Loans receivable net 479,163 480,759 494,367 500,593 508,090 Total Loans held for sale 356 5,620 3,515 - - Cash & investment securities 92,132 114,789 99,582 117,380 145,569 Mortgage-backed securities 192,824 161,906 162,710 152,025 145,405 Total Investments 284,956 276,695 262,292 269,405 290,974 FHLB stock 8,802 8,834 10,165 11,240 11,832 Checking accounts 113,795 108,408 101,033 106,661 112,165 Savings accounts 171,433 162,887 162,719 160,136 153,684 Certificate of deposit accounts 263,849 272,292 279,171 282,868 284,572 Total Deposits 549,077 543,587 542,923 549,665 550,421 Advances 185,317 191,287 192,483 203,765 227,228 Total stockholders' equity 60,830 60,435 59,736 58,924 58,026