Harleysville Savings Financial Corporation Announces Regular Cash Dividend And Third Quarter Earnings For Fiscal Year 2012

Harleysville Savings Financial Corporation (NASDAQ:HARL) reported today that the Company’s board of directors declared a regular quarterly cash dividend of $.20 per share. The cash dividend will be payable on August 22, 2012 to stockholders of record on August 8, 2012.

Net income for the third quarter was $1,311,000 or $.34 per diluted share compared to $1,988,000 or $.53 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 2011 quarter.

Net income for the nine months ended June 30, 2012 amounted to $3,896,000 or $1.03 per diluted share compared to $4,298,000 or $1.15 per diluted share for the same nine-month period a year ago.

Ron Geib, President and Chief Executive Officer of the Company, 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 $822.7 million compared to $857.6 million a year ago. Stockholders’ tangible book value increased 4.24% to $15.73 per share from $15.09 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, 2012
(Dollars in thousands except per share data)   Year-To-Date    

( Unaudited)
Nine Months Ended: Three Months Ended:
         
Selected Consolidated Jun 30, Jun 30, Jun 30, Mar 31, Dec 31, Sept 30, June 30,
Earnings Data 2012 2011 2012 2012 2011 2011 2011
Total interest income $ 26,340 $ 28,215 $ 8,599 $ 8,736 $ 9,005 $ 9,358 $ 9,494
Total interest expense   11,613     14,475     3,691     3,955     3,967     4,559     4,736  
 
Net Interest Income 14,727 13,740 4,908 4,781 5,038 4,799 4,758
Provision for loan losses   760     490     255     255     250     660     165  
Net Interest Income after Provision for Loan Losses   13,967     13,250     4,653     4,526     4,788     4,139     4,593  
 
Gain on sale of investments 34 - 34 - - - -
Bank owned life insurance 364 1,407 121 121 122 141 1,163
Other income 1,233 1,045 443 341 449 393 356
Total other expenses   10,096     9,886     3,385     3,413     3,298     3,239     3,385  
 
Income before income taxes 5,502 5,816 1,866 1,575 2,061 1,434 2,727
Income tax expense   1,606     1,518     555     354     697     337     739  
 
Net Income $ 3,896   $ 4,298   $ 1,311   $ 1,221   $ 1,364   $ 1,097   $ 1,988  
 
 
Per Common Share Data
Basic earnings $ 1.04 $ 1.16 $ 0.35 $ 0.33 $ 0.36 $ 0.29 $ 0.53
Diluted earnings $ 1.03 $ 1.15 $ 0.34 $ 0.32 $ 0.36 $ 0.29 $ 0.53
Dividends $ 0.58 $ 0.57 $ 0.20 $ 0.19 $ 0.19 $ 0.19 $ 0.19
Tangible book value $ 15.73 $ 15.09 $ 15.73 $ 15.56 $ 15.39 $ 15.19 $ 15.09
Shares outstanding 3,747,031 3,747,920 3,747,031 3,728,089 3,772,028 3,758,751 3,747,920
Average shares outstanding - basic 3,746,038 3,717,906 3,736,462 3,738,430 3,763,147 3,752,394 3,737,439
Average shares outstanding - diluted 3,801,159 3,752,059 3,823,689 3,794,487 3,790,457 3,776,650 3,771,917
 
 
 
(Dollars in thousands except per share data) Year-To-Date  
( Unaudited) Nine Months Ended: Three Months Ended:
Other Selected Consolidated Jun 30, Jun 30, Jun 30, Mar 31, Dec 31, Sept 30, June 30,
Data 2012 2011 2012 2012 2011 2011 2011
Return on average assets 0.61 % 0.67 % 0.63 % 0.59 % 0.66 % 0.52 % 0.93 %
Return on average equity 8.72 % 10.46 % 9.00 % 8.44 % 9.40 % 7.74 % 14.26 %
Net interest rate spread 2.26 % 2.03 % 2.27 % 2.19 % 2.33 % 2.16 % 2.11 %
Net yield on interest earning assets 2.43 % 2.20 % 2.44 % 2.36 % 2.49 % 2.34 % 2.28 %
Operating expenses to average assets 1.64 % 1.54 % 1.63 % 1.64 % 1.57 % 1.53 % 1.58 %
Efficiency ratio 63.47 % 61.69 % 61.85 % 65.10 % 58.80 % 60.72 % 53.93 %
Ratio of non-performing loans to total
assets at end of period 1.44 % 0.38 % 1.44 % 1.00 % 0.64 % 0.40 % 0.38 %
Loan loss reserve to total loans, net 0.71 % 0.51 % 0.71 % 0.73 % 0.68 % 0.63 % 0.51 %
Stockholders' equity to assets 7.16 % 6.59 % 7.16 % 6.89 % 6.97 % 6.83 % 6.59 %
 
                 
Selected Consolidated Jun 30, Mar 31, Dec 31, Sept 30, Jun 30,
Financial Data 2012   2012   2011   2011   2011
Total assets $ 822,726 $ 842,266 $ 832,630 $ 835,713 $ 857,579
Consumer Loans receivable 400,463 409,244 416,900 424,424 421,203
Commercial Loans receivable 103,997 102,655 99,593 97,373 90,916
Loan loss reserve (3,867 ) (3,809 ) (3,559 ) (3,311 ) (2,652 )
Total Loans receivable net 500,593 508,090 512,934 518,486 509,467
Cash & investment securities 117,380 145,569 119,448 122,306 150,978
Mortgage-backed securities 152,025 145,405 156,411 150,547 150,669
Total Investments 269,405 290,974 275,859 272,853 301,647
FHLB stock 11,240 11,832 12,455 13,110 13,800
Checking accounts 106,661 112,165 96,671 90,146 89,629
Savings accounts 160,136 153,684 147,156 138,805 137,474
Certificate of deposit accounts 282,868 284,572 286,544 295,450 303,999
Total Deposits 549,665 550,421 530,371 524,401 531,102
Advances 203,765 227,228 238,676 250,194 261,900
Total stockholders' equity 58,924 58,026 58,033 57,082 56,551

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