Harleysville Financial : Announces Regular Cash Dividend and Second Quarter Earnings for Fiscal Year 2022

FOR IMMEDIATE RELEASE April 20, 2022

FOR FURTHER INFORMATION M. Shane Michalak

Senior Vice President/CFO 215-256-8828

Harleysville Financial Corporation Announces Regular Cash Dividend and Second

Quarter Earnings for Fiscal Year 2022

Harleysville, PA., April 20, 2022 - Harleysville Financial Corporation

(OTCQX:HARL) reported today that the Company's board of directors declared a

regular quarterly cash dividend of $.29 per share on the Company's common stock. The cash dividend will be payable on May 18,2022 to stockholders of record on May 4, 2022.

Net income for the second quarter was $1,827,000 or $.49 per diluted share compared to $2,054,000 or $.54 per diluted share for the same quarter last year. Net income for the quarters ended March 31,2022 and 2021 included SBA Paycheck

Protection Program (PPP) fee income totaling $23,000 and $452,000 or $.01 and $.12 per diluted share for the quarters ended, respectively.

Net income for the six months ended March 31,2022 amounted to $3,682,000 or $0.98 per diluted share compared to $4,156,000 or $1.10 per diluted share for the same six-month period a year ago. Net income for the six months ended March 31,2022 and 2021 included SBA Paycheck Protection Program (PPP) fee income totaling $313,000 and $770,000 or $.08 and $.20 per diluted share for the six months ended, respectively.

Brendan J. McGill, President and Chief Executive Officer of the Company, stated,

"The Company has achieved solid earnings, balance sheet growth and strong creditquality, while navigating industry wide staffing challenges and margin compression, due to the low interest rate environment and the continued impact of COVID-19. We benefitted from the SBA Paycheck Protection Programs (PPP) through which we provided a total of $37.2 million loans to local small businesses, which have all been repaid or forgiven as of March 31, 2022.

Despite the on-going challenges because of the COVID-19 pandemic and the volatility in the market, we feel our balance sheet is strong and we are well capitalized as we enter a rising interest rate environment. This will allow us to continue to support the borrowing needs of individuals and businesses in our communities."

The Company's assets totaled $917.6 million compared to $904.5 million a year ago. Stockholders' tangible book value increased 2.5% to $22.04 per share from $21.50 a year ago.

Harleysville Financial Corporation is traded on the OTCQX market under the symbol HARL (http://www.otcmarkets.com) and is the holding company for

Harleysville Bank. Established in 1915, Harleysville Bank is a Pennsylvania chartered and federally insured 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 inlegislation or regulation; and other economic; competitive, governmental, regulatory, and technological factors affecting the Company's operations, pricing, products and services.