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. The cash dividend will be payable on August 21, 2013 to stockholders of record on August 7, 2013.

Net income for the third quarter was $1,163,000 or $.30 per diluted share compared to $1,311,000 or $.34 per diluted share for the same quarter last year.

Net income for the nine months ended June 30, 2013 amounted to $3,666,000 or $.95 per diluted share compared to $3,896,000 or $1.03 per diluted share for the same nine-month period a year ago.

Ron Geib, President and Chief Executive Officer of the Company, stated, “We continue to experience positive results by adhering to our fundamental operating principles of maintaining prudent underwriting standards, investing in high credit quality assets, controlling our operating expenses, and practicing sound capital management.

“We are very pleased with our growth in transaction relationships, commercial relationships and our tangible book value. Our team works hard providing financial products and services as we help to strengthen the communities we serve.

“In addition, we believe that the recent increase in longer term interest rates will be beneficial to the bank over the coming quarters.”

The Company’s assets totaled $796.6 million compared to $822.7 million a year ago. Stockholders’ tangible book value increased 2.8% to $16.17 per share from $15.73 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 June 30, 2013           (Dollars in thousands except per share data) Year-To-Date  

(Unaudited)

Nine Months Ended: Three Months Ended:                     Selected Consolidated Earnings Data Jun 30, 2013 Jun 30, 2012 Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sept 30, 2012 Jun 30, 2012 Total interest income $ 23,116 $ 26,340 $ 7,440 $ 7,669 $ 8,007 $ 8,194 $ 8,599 Total interest expense   9,560     11,613     3,013     3,170     3,377     3,483     3,691     Net Interest Income 13,556 14,727 4,427 4,499 4,630 4,711 4,908 Provision for loan losses   650     760     210     185     255     170     255   Net Interest Income after Provision for Loan Losses   12,906     13,967     4,217     4,314     4,375     4,541     4,653     Gain on sale of investments 68 34 68 - - - 34 Gain on sales of loans 592 - 77 261 254 34 - Bank owned life insurance 328 364 104 118 106 122 121 Other income 1,369 1,233 445 475 449 382 443 Total other expenses   9,709     10,096     3,186     3,267     3,256     3,392     3,385     Income before income taxes 5,554 5,502 1,725 1,901 1,928 1,687 1,866 Income tax expense   1,888     1,606     562     699     627     531     555     Net Income $ 3,666   $ 3,896   $ 1,163   $ 1,202   $ 1,301   $ 1,156   $ 1,311       Per Common Share Data Basic earnings $ 0.97 $ 1.04 $ 0.31 $ 0.32 $ 0.35 $ 0.31 $ 0.35 Diluted earnings $ 0.95 $ 1.03 $ 0.30 $ 0.31 $ 0.34 $ 0.30 $ 0.34 Dividends $ 0.62 $ 0.58 $ 0.21 $ 0.21 $ 0.20 $ 0.20 $ 0.20 Tangible book value $ 16.17 $ 15.73 $ 16.17 $ 16.12 $ 15.99 $ 15.85 $ 15.73 Shares outstanding 3,781,917 3,747,031 3,781,917 3,774,147 3,779,969 3,768,931 3,747,031 Average shares outstanding - basic 3,771,464 3,746,038 3,778,626 3,768,825 3,766,963 3,752,764 3,736,462 Average shares outstanding - diluted 3,855,565 3,801,159 3,894,556 3,842,381 3,836,023 3,834,826 3,823,689       Year-To-Date   Nine Months Ended: Three Months Ended: Other Selected Consolidated Data Jun 30, 2013 Jun 30, 2012 Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sept 30, 2012 Jun 30, 2012 Return on average assets 0.61 % 0.61 % 0.58 % 0.60 % 0.65 % 0.57 % 0.63 % Return on average equity 8.11 % 8.72 % 7.66 % 7.97 % 8.71 % 7.83 % 9.00 % Net interest rate spread 2.15 % 2.26 % 2.10 % 2.14 % 2.20 % 2.23 % 2.27 % Net yield on interest earning assets 2.32 % 2.43 % 2.28 % 2.31 % 2.37 % 2.40 % 2.44 % Operating expenses to average assets 1.62 % 1.64 % 1.60 % 1.64 % 1.62 % 1.68 % 1.63 % Efficiency ratio 64.07 % 63.47 % 64.04 % 64.17 % 62.80 % 65.04 % 61.85 %

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

1.68 % 1.44 % 1.68 % 1.96 % 1.95 % 1.85 % 1.44 % Loan loss reserve to total loans, net 0.78 % 0.71 % 0.78 % 0.90 % 0.85 % 0.81 % 0.71 % Stockholders' equity to assets 7.68 % 7.16 % 7.68 % 7.56 % 7.53 % 7.44 % 7.16 %     Selected Consolidated Financial Data Jun 30, 2013     Mar 31, 2013     Dec 31, 2012     Sept 30, 2012     Jun 30, 2012 Total assets $ 796,628 $ 804,421 $ 802,890 $ 802,626 $ 822,726 Consumer Loans receivable 362,581 372,956 378,865 394,634 400,463 Commercial Loans receivable 115,945 110,525 106,029 103,765 103,997 Loan loss reserve (3,732 ) (4,318 ) (4,135 ) (4,032 ) (3,867 ) Total Loans receivable net 474,794 479,163 480,759 494,367 500,593 Total Loans held for sale 629 356 5,620 3,515 - Cash & investment securities 74,237 92,132 114,789 99,582 117,380 Mortgage-backed securities 207,984 192,824 161,906 162,710 152,025 Total Investments 282,221 284,956 276,695 262,292 269,405 FHLB stock 8,514 8,802 8,834 10,165 11,240 Checking accounts 120,386 113,795 108,408 101,033 106,661 Savings accounts 173,004 171,443 162,887 162,719 160,136 Certificate of deposit accounts 256,899 263,849 272,292 279,171 282,868 Total Deposits 550,289 549,077 543,587 542,923 549,665 Advances 175,203 185,317 191,287 192,483 203,765 Total stockholders' equity 61,156 60,830 60,435 59,736 58,924  

Harleysville Savings Financial CorporationBrendan J. McGillExecutive Vice President COO/CFO215-256-8828