Profile: Harleysville Savings Financial Corp (HARL.PK)
6 Dec 2013
Harleysville Savings Financial Corporation is the bank holding company for Harleysville Savings Bank (the Bank). The Bank operates from six full-service offices located in Montgomery County, Pennsylvania. The Bank’s primary market area includes Montgomery County and Bucks County. As of September 30, 2010, the Bank had $528.1 million of deposits. The Bank’s primary business consists of attracting deposits from the general public and business customers through a variety of deposit programs and investing such deposits principally in first mortgage loans secured by residential properties in the Bank’s primary market area. It also originates a variety of consumer loans, predominately home equity loans and lines of credit also secured by residential properties in its primary lending area. It is also engaged in the general commercial banking business, and provides a range of commercial loans and commercial real estate loans to customers in the Bank’s primary market area. It serves its customers through its full-service branch network, as well as through remote automated teller machine (ATM) locations, the Internet and telephone banking.
The Company's loan portfolio consists of loans secured by first mortgages on single-family residential properties. During the fiscal year ended September 30, 2010 (fiscal 2010), first mortgage loans on residential properties, including loans on single-family and multi-family residential properties, and construction loans on such properties, amounted to $344.6 million or 66.6% of the Company’s total loan portfolio. Loans on the Company’s residential properties are primarily long-term and are conventional. As of September 30, 2010, loans secured by commercial real estate and commercial business loans comprised $75.5 and $4.3 million or 14.6% and 0.8% of the total loan portfolio, respectively. Home equity lines, including installment home equity loans and home equity lines of credit consisted of $90.6 million or 17.5% of the total loan portfolio. Consumer loans, including automobile loans, loans on savings accounts and education loans, constituted $2.0 million or 0.5% of the total loan portfolio as of September 30, 2010.
During fiscal 2010, the Company originated $417,000 of ARM mortgages. ARMs represented 0.3% of the Company’s total mortgage loan portfolio originations in fiscal 2010. The Company originates mortgage loans secured by multifamily dwelling units. As of September 30, 2010, $1.8 million, or 0.3% of its total loan portfolio consisted of loans secured by multifamily residential real estate. The majority of its multifamily residential real estate loans are secured by apartment buildings located in the Bank’s local market area. The Company offers fixed-rate and adjustable-rate construction loans on residential properties. Residential construction loans are originated for individuals who are building their primary residence, as well as to selected local builders for construction of single-family dwellings. As of September 30, 2010, $4.8 million or 0.9% of the total loans consisted of construction loans. Home equity loans and lines of credit represented $90.6 million or 17.5% of the loan portfolio as of September 30, 2010.
The Company originates mortgage loans for the acquisition and refinancing of commercial real estate properties. As of September 30, 2010, $75.5 million, or 14.6% of the Bank’s total loan portfolio consisted of loans secured by commercial real estate properties, owner occupied commercial real estate loans and non-owner occupied commercial real estate loans. The majority of its commercial real estate loans are secured by office buildings, manufacturing facilities, distribution/warehouse facilities, and retail centers, which are generally located in its local market area. Its commercial business loans amounted to $4.3 million or 0.8% of the total loan portfolio as of September 30, 2010. The Company originates business loans typically for small to mid-sized businesses in its market area. The Company’s consumer loan department offers a variety of loans, vehicle loans, personal loans and personal lines of credit.
The Company's investment portfolio consists of the United States government agency mortgage-backed securities and debt obligations of United States government agencies. The other investments include tax-exempt municipal obligations, money market mutual funds, and stock of the Federal Home Loan Bank (FHLB) of Pittsburgh. As of September 30, 2010, the Company had $131.6 million of mortgage-backed securities, invested in Federal Home Loan Mortgage Corporation (FHLMC), Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA) backed securities or collaterized mortgage obligations (CMOs).
Sources of Funds
Deposits are the source of the Company's funds for use in lending and for other general business purposes. In addition to deposits, the Company obtains funds from loan payments and prepayments, FHLB advances and other borrowings, and, to a lesser extent, sales of loans. The Company's deposits are obtained from residents of Montgomery and Bucks Counties.
Harleysville Savings Financial Corp
271 Main Street
HARLEYSVILLE PA 19438