Harleysville Savings Financial Corporation Announces Regular Cash Dividend And Third Quarter Earnings For Fiscal Year 2011

Harleysville Savings Financial Corporation (NASDAQ:HARL) reported today that the Company’s board of directors declared a regular quarterly cash dividend of $.19 per share. The cash dividend will be payable on August 24, 2011 to stockholders of record on August 10, 2011.

Net income for the third quarter was $1,988,000 or $.53 per diluted share compared to $1,314,000 or $.36 per diluted share for the same quarter last year. There was a onetime Bank Owned Life Insurance (“BOLI”) net benefit of $927,000 or $.24 per diluted share in the current quarter.

Net income for the nine months ended June 30, 2011 amounted to $4,298,000 or $1.16 per diluted share compared to $3,688,000 or $1.01 per diluted share for the same nine-month period a year ago.

Ron Geib, President and Chief Executive Officer of the Company, stated, “While our results for the quarter benefited from the BOLI income, we are pleased with the improvement in the financial strength of the bank. Our credit quality has remained 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 we are beginning to see the improvement in our interest rate spread. 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.

"We continue to experience positive results through the preservation of our fundamental operating principles of maintaining prudent underwriting standards, investing in high credit quality assets, controlling our operating expenses, and practicing sound capital management.”

The Company’s assets totaled $857.6 million compared to $867.1 million a year ago. Stockholders’ tangible book value increased 5.53% to $15.09 per share from $14.30 a year ago.

Harleysville Savings Financial Corporation 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, Harleysville is located in central Montgomery County, which has the third largest population base and the second highest per capita income in the state of 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, 2011
 
 
(Dollars in thousands except per share data)   Year-To-Date    

(Unaudited)
Nine Months Ended: Three Months Ended:
         
Selected Consolidated Earnings Data

June 30,

2011

June 30,

2010

June 30,

2011

Mar 31,

2011

Dec 31,

2010
 

Sept 30,

2010
 

June 30,

2010
Total interest income $ 28,215 $ 30,151 $ 9,494 $ 9,291 $ 9,430 $ 9,867 $ 9,951
Total interest expense   14,475     16,584     4,736     4,764     4,975     5,163     5,290  
 
Net Interest Income 13,740 13,567 4,758 4,527 4,455 4,704 4,661
Provision for loan losses   490     450     165     175     150     150     150  
Net Interest Income after Provision for Loan Losses   13,250     13,117     4,593     4,352     4,305     4,554     4,511  
 
Bank owned life insurance 1,407 365 1,163 121 123 147 122
Other income 1,045 1,103 356 311 378 372 386
Total other expenses   9,886     9,505     3,385     3,340     3,161     3,197     3,205  
 
Income before income taxes 5,816 5,080 2,727 1,444 1,645 1,876 1,814
Income tax expense   1,518     1,392     739     350     429     556     500  
 
Net Income $ 4,298   $ 3,688   $ 1,988   $ 1,094   $ 1,216   $ 1,320   $ 1,314  
 
 
Per Common Share Data
Basic earnings $ 1.16 $ 1.01 $ 0.53 $ 0.29 $ 0.33 $ 0.36 $ 0.36
Diluted earnings $ 1.15 $ 1.01 $ 0.53 $ 0.29 $ 0.33 $ 0.35 $ 0.36
Dividends $ 0.57 $ 0.57 $ 0.19 $ 0.19 $ 0.19 $ 0.19 $ 0.19
Tangible book value $ 15.09 $ 14.30 $ 15.09 $ 14.74 $ 14.63 $ 14.47 $ 14.30
Shares outstanding 3,747,920 3,670,083 3,747,920 3,731,574 3,704,940 3,687,409 3,670,083
Average shares outstanding - basic 3,717,906 3,651,495 3,737,439 3,723,236 3,693,373 3,678,492 3,667,319
Average shares outstanding - diluted 3,752,059 3,671,977 3,771,917 3,758,260 3,731,203 3,722,324 3,700,510
 
 
 
(Dollars in thousands except per share data) Year-To-Date  

(Unaudited)
Nine Months Ended: Three Months Ended:
Other Selected Consolidated Data

June 30,

2011

June 30,

2010

June 30,

2011

Mar 31,

2011

Dec 31,

2010
 

Sept 30,

2010
 

June 30,

2010
Return on average assets 0.67 % 0.58 % 0.93 % 0.51 % 0.57 % 0.61 % 0.61 %
Return on average equity 10.46 % 9.62 % 14.26 % 8.03 % 9.08 % 10.01 % 10.12 %
Net interest rate spread 2.03 % 2.03 % 2.11 % 2.01 % 1.98 % 2.07 % 2.07 %
Net yield on interest earning assets 2.20 % 2.20 % 2.28 % 2.17 % 2.14 % 2.24 % 2.24 %
Operating expenses to average assets 1.54 % 1.50 % 1.58 % 1.56 % 1.48 % 1.48 % 1.50 %
Efficiency ratio 61.69 % 63.23 % 53.93 % 67.36 % 63.78 % 61.22 % 62.00 %
Ratio of non-performing loans to total
assets at end of period 0.38 % 0.28 % 0.38 % 0.42 % 0.39 % 0.30 % 0.28 %
Loan loss reserve to total loans, net 0.51 % 0.47 % 0.51 % 0.55 % 0.51 % 0.48 % 0.47 %
Stockholders' equity to assets 6.59 % 6.05 % 6.59 % 6.42 % 6.33 % 6.22 % 6.05 %
 
                                     
Selected Consolidated Financial Data

June 30,

2011
 

Mar 31,

2011
 

Dec 31,

2010
 

Sept 30,

2010
 

June 30,

2010
Total assets $ 857,579 $ 856,478 $ 856,681 $ 857,140 $ 867,109
Consumer Loans receivable - net 418,551 415,534 418,736 429,462 439,419
Commercial Loans 90,916 85,646 86,051 80,631 76,389
Loan loss reserve 2,652 2,795 2,639 2,504 2,437
Cash & investment securities 150,978 161,878 176,274 166,063 157,904
Mortgage-backed securities 150,669 144,686 127,188 131,628 144,211
FHLB stock 13,800 14,526 15,291 16,096 16,096
Checking accounts 89,629 81,698 80,426 70,912 74,029
Savings accounts 137,474 138,228 134,671 139,818 136,114
Certificate of deposit accounts 303,999 311,346 316,550 317,370 312,627
Total Deposits 531,102 531,272 531,647 528,100 522,770
Advances 261,900 263,632 265,347 272,047 283,730
Total stockholders' equity 56,551 55,009 54,205 53,351 52,488
 

Copyright Business Wire 2010

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