HARL Harleysville Financial Corporation (QX)

Harleysville Savings Financial Corporation (OTCQX: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 20, 2015 to stockholders of record on May 6, 2015.

Net income for the second quarter was $1,345,000 or $.36 per diluted share compared to $1,212,000 or $.31 per diluted share for the same quarter last year. There was a onetime FHLBank Pittsburgh special dividend of $152,000 (net) or $.04 per diluted share in the current quarter.

Net income for the six months ended March 31, 2015 amounted to $2,566,000 or $.68 per diluted share compared to $2,514,000 or $.65 per diluted share for the same six-month period a year ago.

Chief Executive Officer Ron Geib stated, “While our results for the quarter benefitted from the special FHLBank dividend income, we are pleased with the continued financial strength of the bank. Our credit quality remains strong, we continue to increase the number of relationships with customers wanting to establish their checking and savings accounts with a locally owned and managed community bank, and our interest rate spread is increasing. We anticipate our interest rate spread to continue improving as high cost liabilities reprice over the coming quarters and we continue to grow our small business lending relationships.

"Our team works hard providing financial products and services as we help to strengthen our communities we serve. We are pleased to offer Kasasa a unique new brand of rewards checking and savings products with the personal service of a community based financial institution. Do you Kasasa?”

The Company’s assets totaled $763.9 million compared to $796.9 million a year ago. Stockholders’ tangible book value increased 3.1% to $17.04 per share from $16.53 a year ago.

Harleysville Savings Financial Corporation is traded on the OTCQX 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, 2015 (Dollars in thousands except per share data) Year-To-Date  

(Unaudited)

Six Months Ended: Three Months Ended:   Selected Consolidated Earnings Data

Mar 31,

2015

Mar 31,

2014

Mar 31,

2015

Dec 31,

2014

Sept 30,

2014

Jun 30,

2014

Mar 31,

2014

Total interest income $ 14,622 $ 14,612 $ 7,338 $ 7,284 $ 7,275 $ 7,351 $ 7,269 Total interest expense   4,476     5,423     2,187     2,289     2,348     2,390     2,535     Net Interest Income 10,146 9,189 5,151 4,995 4,927 4,961 4,734 Provision for loan losses   525     460     260     265     210     210     210   Net Interest Income after Provision for Loan Losses   9,621     8,729     4,891     4,730     4,717     4,751     4,524     Gain on sale of investments 221 595 221 - 114 - 291 Bank owned life insurance 202 213 100 102 106 97 103 Other income 868 842 402 466 413 412 355 Total other expenses   7,051     6,637     3,555     3,496     3,401     3,594     3,380     Income before income taxes 3,861 3,742 2,059 1,802 1,949 1,666 1,893 Income tax expense   1,295     1,228     714     581     747     465     681     Net Income $ 2,566   $ 2,514   $ 1,345   $ 1,221   $ 1,202   $ 1,201   $ 1,212       Per Common Share Data Basic earnings $ 0.69 $ 0.66 $ 0.36 $ 0.33 $ 0.32 $ 0.32 $ 0.32 Diluted earnings $ 0.68 $ 0.65 $ 0.36 $ 0.32 $ 0.31 $ 0.31 $ 0.31 Dividends $ 0.42 $ 0.42 $ 0.21 $ 0.21 $ 0.21 $ 0.21 $ 0.21 Tangible book value $ 17.04 $ 16.53 $ 17.04 $ 16.88 $ 16.76 $ 16.65 $ 16.53 Shares outstanding 3,712,650 3,798,956 3,712,650 3,710,041 3,767,647 3,793,472 3,798,956 Average shares outstanding - basic 3,715,680 3,793,789 3,710,815 3,720,439 3,776,378 3,795,048 3,797,191 Average shares outstanding - diluted 3,786,491 3,870,259 3,792,254 3,782,564 3,838,189 3,858,964 3,868,522       Year-To-Date   Six Months Ended: Three Months Ended: Other Selected Consolidated Data

Mar 31,

2015

Mar 31,

2014

Mar 31,

2015

Dec 31,

2014

Sept 30,

2014

Jun 30,

2014

Mar 31,

2014

Return on average assets 0.66 % 0.63 % 0.70 % 0.62 % 0.61 % 0.60 % 0.61 % Return on average equity 8.20 % 8.10 % 8.57 % 7.82 % 7.65 % 7.65 % 7.77 % Net interest rate spread 2.54 % 2.19 % 2.60 % 2.48 % 2.40 % 2.40 % 2.28 % Net yield on interest earning assets 2.69 % 2.35 % 2.75 % 2.62 % 2.56 % 2.56 % 2.43 % Operating expenses to average assets 1.81 % 1.65 % 1.85 % 1.78 % 1.72 % 1.80 % 1.69 % Efficiency ratio 62.86 % 64.78 % 62.89 % 62.84 % 62.46 % 65.71 % 65.10 %

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

1.45 % 1.53 % 1.45 % 1.37 % 1.53 % 1.65 % 1.53 % Loan loss reserve to total loans, net 0.72 % 0.66 % 0.72 % 0.68 % 0.66 % 0.65 % 0.66 % Stockholders' equity to assets 8.28 % 7.88 % 8.28 % 8.10 % 7.98 % 7.94 % 7.88 %                                                 Selected Consolidated Financial Data

Mar 31,

2015

   

Dec 31,

2014

   

Sept 30,

2014

   

Jun 30,

2014

   

Mar 31,

2014

Total assets $ 763,940 $ 773,588 $ 791,353 $ 795,548 $ 796,887 Cash & investment securities 59,722 59,284 70,067 76,721 79,243 Mortgage-backed securities 159,277 168,915 176,590 186,361 194,351 Total Investments 218,999 228,199 246,657 263,082 273,594 Consumer Loans receivable 378,610 382,544 380,554 375,343 364,912 Commercial Loans receivable 132,237 128,210 127,473 120,971 122,484 Loan loss reserve (3,682 ) (3,491 ) (3,336 ) (3,246 ) (3,226 ) Total Loans receivable net 507,165 507,263 504,691 493,068 484,170 FHLB stock 7,319 8,075 9,858 9,514 9,386 Checking accounts 129,755 121,037 113,955 118,254 117,672 Savings accounts 195,772 183,512 187,014 187,879 180,718 Certificate of deposit accounts 183,451 191,023 201,282 213,204 225,427 Total Deposits 508,978 495,572 502,251 519,337 523,817 Advances 183,367 208,014 218,467 202,381 200,291 Total stockholders' equity 63,264 62,640 63,162 63,145 62,804  

Harleysville Savings Financial CorporationBrendan J. McGillPresident/COO215-256-8828