Harleysville Savings Financial Corporation Announces an Increase of the Regular Cash Dividend and Earnings for the First Fiscal

  Harleysville Savings Financial Corporation Announces an Increase of the
  Regular Cash Dividend and Earnings for the First Fiscal Quarter 2013

Business Wire

HARLEYSVILLE, Pa. -- January 23, 2013

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. This is an increase of 10.6%
from the prior year’s dividend. The cash dividend will be payable on February
20, 2013 to stockholders of record on February 6, 2013.

Net income for the quarter ended December 31, 2012 was $1,301,000 or $.34 per
diluted share compared to $1,364,000 or $.36 per diluted share for the same
quarter last year.

Ron Geib, President and Chief Executive Officer of the Company, stated, “We
are pleased to begin a new fiscal year with solid financial results. During
the quarter, a milestone was reached by deregistering from the SEC and
consequently, having our stock listed on the OTCQB. This opportunity was a
result of the Jumpstart Our Business Startups Act (or the JOBS Act) that was
passed by Congress in April, 2012. This event will reduce regulatory operating
expenses for the Company by approximately $250,000 annually. As a result of
the financial strength of the Company and the benefits of the JOBS Act, the
decision was made to pass along additional value to our stockholders by
increasing the cash dividend to $.21 per share.”

The Company’s assets totaled $802.9 million compared to $832.6 million a year
ago, and stockholders’ tangible book value increased to $15.99 per share from
$15.39 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 December 31, 2012
(Dollars in
thousands except 
per share data)
( Unaudited)     Three Months Ended:
                                                                            
Selected         Dec 31,         Sept 30,        Jun 30,         Mar 31,         Dec 31,
Consolidated     2012            2012            2012            2012            2011
Earnings Data
Total interest   $ 8,007         $ 8,194         $ 8,599         $ 8,736         $ 9,005
income
Total interest    3,377         3,483         3,691         3,955         3,967     
expense
                                                                                 
Net Interest       4,630           4,711           4,908           4,781           5,038
Income
Provision for     255           170           255           255           250       
loan losses
Net Interest
Income after      4,375         4,541         4,653         4,526         4,788     
Provision for
Loan Losses
                                                                                 
Gain on sale of    -               -               34              -               -
investments
Gain on sales      254             34              -               -               -
of loans
Bank owned life    106             122             121             121             122
insurance
Other income       449             382             443             341             449
Total other       3,256         3,392         3,385         3,413         3,298     
expenses
                                                                                 
Income before      1,928           1,687           1,866           1,575           2,061
income taxes
Income tax        627           531           555           354           697       
expense
                                                                                 
Net Income       $ 1,301        $ 1,156        $ 1,311        $ 1,221        $ 1,364     
                                                                                 
                                                                                 
Per Common
Share Data
Basic earnings   $ 0.35          $ 0.31          $ 0.35          $ 0.33          $ 0.36
Diluted          $ 0.34          $ 0.30          $ 0.34          $ 0.32          $ 0.36
earnings
Dividends        $ 0.20          $ 0.20          $ 0.20          $ 0.19          $ 0.19
Tangible book    $ 15.99         $ 15.85         $ 15.73         $ 15.56         $ 15.39
value
Shares             3,779,969       3,768,931       3,747,031       3,728,089       3,772,028
outstanding
Average shares
outstanding -      3,766,963       3,752,764       3,736,462       3,738,430       3,763,147
basic
Average shares
outstanding -      3,836,023       3,834,826       3,823,689       3,794,487       3,790,457
diluted
                                                                                 
                                                                                 
                                                                                 
                                                                         
                 Three Months Ended:
Other Selected   Dec 31,         Sept 30,        Jun 30,         Mar 31,         Dec 31,
Consolidated     2012            2012            2012            2012            2011
Data
Return on          0.65      %     0.57      %     0.63      %     0.59      %     0.66      %
average assets
Return on          8.71      %     7.83      %     9.00      %     8.44      %     9.40      %
average equity
Net interest       2.20      %     2.23      %     2.27      %     2.19      %     2.33      %
rate spread
Net yield on
interest           2.37      %     2.40      %     2.44      %     2.36      %     2.49      %
earning assets
Operating
expenses to        1.62      %     1.68      %     1.63      %     1.64      %     1.57      %
average assets
Efficiency         62.80     %     65.04     %     61.85     %     65.10     %     58.80     %
ratio
Ratio of
non-performing
loans to total
assets at end      1.95      %     1.85      %     1.44      %     1.00      %     0.64      %
of period
Loan loss
reserve to         0.85      %     0.81      %     0.71      %     0.73      %     0.68      %
total loans,
net
Stockholders'
equity to          7.53      %     7.44      %     7.16      %     6.89      %     6.97      %
assets
                                                                                 
                                                                         
Selected         Dec 31,         Sept 30,        Jun 30,         Mar 31,         Dec 31,
Consolidated     2012            2012            2012            2012            2011
Financial Data
Total assets     $ 802,890       $ 802,626       $ 822,726       $ 842,266       $ 832,630
Consumer Loans     378,865         394,634         400,463         409,244         416,900
receivable
Commercial
Loans              106,029         103,765         103,997         102,655         99,593
receivable
Loan loss          (4,135    )     (4,032    )     (3,867    )     (3,809    )     (3,559    )
reserve
Total Loans        480,759         494,367         500,593         508,090         512,934
receivable net
Total Loans        5,620           3,515           -               -               -
held for sale
Cash &
investment         114,789         99,582          117,380         145,569         119,448
securities
Mortgage-backed    161,906         162,710         152,025         145,405         156,411
securities
Total              276,695         262,292         269,405         290,974         275,859
Investments
FHLB stock         8,834           10,165          11,240          11,832          12,455
Checking           108,408         101,033         106,661         112,165         96,671
accounts
Savings            162,887         162,719         160,136         153,684         147,156
accounts
Certificate of
deposit            272,292         279,171         282,868         284,572         286,544
accounts
Total Deposits     543,587         542,923         549,665         550,421         530,371
Advances           191,287         192,483         203,765         227,228         238,676
Total
stockholders'      60,435          59,736          58,924          58,026          58,033
equity

Contact:

Harleysville Savings Financial Corporation
Brendan J. McGill
Executive Vice President, COO/CFO
215-256-8828
 
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