**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**Form      10-Q**

**Quarterly      Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of      1934**

**for      the quarterly period ended September 30, 2005**

**Or      **

**Transition      Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of      1934**

**HARLEYSVILLE      NATIONAL CORPORATION**

| **Pennsylvania**                                                                                    |   | **23-2210237**                                                         |
|-----------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|
| **(State                or other jurisdiction****of                incorporation or organization)** |   | **(IRS                Employer****Identification                No.)** |

**483      Main Street**

**Harleysville,      Pennsylvania 19438**

**(Address      of principal executive office and zip code)**

**(215)      256-8851**

**(Registrant’s      telephone number, including area code)**

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| **HARLEYSVILLE                NATIONAL CORPORATION**                                                                                                       |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                       |   |
|                                                                                                                                                       |   |
| **INDEX                TO FORM 10-Q REPORT**                                                                                                               |   |
|                                                                                                                                                       |   |
|                                                                                                                                                       | PAGE   |
|                                                                                                                                                       |   |
| Part                I. Financial Information                                                                                                               |   |
|                                                                                                                                                       |   |
| Item                1. Financial Statements:                                                                                                               |   |
|                                                                                                                                                       |   |
| Consolidated                Balance Sheets at September 30, 2005 (unaudited) and December 31,                2004                                          | 3      |
|                                                                                                                                                       |   |
| Consolidated                Statements of Income for the Three and Nine Months Ended September                30,                2005 and 2004 (unaudited) | 4      |
|                                                                                                                                                       |   |
| Consolidated                Statements of Shareholders’ Equity for the Nine Months Ended September 30,                2005 and 2004 (unaudited)      | 5      |
|                                                                                                                                                       |   |
| Consolidated                Statements of Cash Flows for the Nine Months Ended September 30,                2005 and                2004 (unaudited)       | 6      |
|                                                                                                                                                       |   |
| Notes                to Consolidated Financial Statements                                                                                                  | 7      |
|                                                                                                                                                       |   |
| Item                2. Management's Discussion and Analysis of Financial Condition and                Results                of Operations                 | 14     |
|                                                                                                                                                       |   |
| Item                3. Quantitative and Qualitative Disclosures about Market                Risk                                                           | 26     |
|                                                                                                                                                       |   |
| Item                4. Controls and Procedures                                                                                                             | 26     |
|                                                                                                                                                       |   |
| Part                II. Other Information                                                                                                                  | 27     |
|                                                                                                                                                       |   |
| Item                1. Legal Proceedings                                                                                                                   | 27     |
|                                                                                                                                                       |   |
| Item                2. Unregistered Sales of Equity Securities and Use of Proceeds                                                                         | 27     |
|                                                                                                                                                       |   |
| Item                3. Defaults Upon Senior Securities                                                                                                     | 27     |
|                                                                                                                                                       |   |
| Item                4. Submission of Matters to a Vote of Security Holders                                                                                 | 27     |
|                                                                                                                                                       |   |
| Item                5. Other Information                                                                                                                   | 27     |
|                                                                                                                                                       |   |
| Item                6. Exhibits                                                                                                                            | 28     |
|                                                                                                                                                       |   |
| Signatures                                                                                                                                                 | 30     |
|                                                                                                                                                       |   |
| Certifications                                                                                                                                             | 33-36  |

----

| PART                1. FINANCIAL INFORMATION                                                                                                         |
|------------------------------------------------------------------------------------------------------------------------------------------------------|
| HARLEYSVILLE                NATIONAL CORPORATION AND SUBSIDIARIES                                                                                    |
| CONSOLIDATED                BALANCE SHEETS                                                                                                           |
|                                                                                                                                                 |
| (Dollars                in thousands)                                                                                                                |   |   | September                30, 2005 |   |   | December                31, 2004 |   |
|                                                                                                                                                      |   |   | (Unaudited)  |   |   |   |   |
| **Assets**                                                                                                                                           |   |   |   |   |   |   |   |
| Cash                and due from banks                                                                                                               |   | $ | 62,133 |   | $ | 50,699 |   |
| Federal                funds sold and securities purchased under agreements to                resell                                                 |   |   | 71,000 |   |   | 52,000 |   |
| Interest-bearing                deposits in banks                                                                                                    |   |   | 6,915 |   |   | 4,291 |   |
| Total                cash and cash equivalents                                                                                                       |   |   | 140,048 |   |   | 106,990 |   |
| Residential                mortgage loans held for sale                                                                                              |   |   | 4,063 |   |   | 1,236 |   |
| Investment                securities available for sale                                                                                              |   |   | 837,405 |   |   | 874,732 |   |
| Investment                securities held to maturity (market                value $63,560 and $69,704, respectively)                                |   |   | 62,940 |   |   | 68,831 |   |
| Total                loans and leases                                                                                                                |   |   | 1,937,803 |   |   | 1,844,566 |   |
| Less:                Allowance for loan losses                                                                                                       |   |   | (19,205 | ) |   | (18,455 | ) |
| Net                loans                                                                                                                             |   |   | 1,918,598 |   |   | 1,826,111 |   |
| Premises                and equipment, net                                                                                                           |   |   | 26,806 |   |   | 26,963 |   |
| Accrued                interest receivable                                                                                                           |   |   | 12,719 |   |   | 12,089 |   |
| Net                assets in foreclosure                                                                                                             |   |   | 469 |   |   | 370 |   |
| Goodwill                                                                                                                                             |   |   | 31,552 |   |   | 32,548 |   |
| Intangible                assets, net                                                                                                                |   |   | 4,067 |   |   | 4,168 |   |
| Bank-owned                life insurance                                                                                                             |   |   | 58,735 |   |   | 52,109 |   |
| Other                assets                                                                                                                          |   |   | 22,736 |   |   | 18,368 |   |
| Total                assets                                                                                                                          |   | $ | 3,120,138 |   | $ | 3,024,515 |   |
| **Liabilities                and Shareholders' Equity**                                                                                              |   |   |   |   |   |   |   |
| Deposits:                                                                                                                                            |   |   |   |   |   |   |   |
| Noninterest-bearing                                                                                                                                  |   | $ | 335,614 |   | $ | 333,516 |   |
| Interest-bearing:                                                                                                                                    |   |   |   |   |   |   |   |
| Checking                accounts                                                                                                                     |   |   | 399,482 |   |   | 305,584 |   |
| Money                market accounts                                                                                                                 |   |   | 677,507 |   |   | 713,039 |   |
| Savings                                                                                                                                              |   |   | 196,242 |   |   | 223,039 |   |
| Time,                under $100,000                                                                                                                  |   |   | 529,302 |   |   | 508,010 |   |
| Time,                $100,000 or greater                                                                                                             |   |   | 211,412 |   |   | 129,375 |   |
| Total                deposits                                                                                                                        |   |   | 2,349,559 |   |   | 2,212,563 |   |
| Federal                funds purchased and securities sold under agreements to                repurchase                                             |   |   | 104,491 |   |   | 142,445 |   |
| Other                short-term borrowings                                                                                                           |   |   | 1,706 |   |   | 47,213 |   |
| Long-term                borrowings                                                                                                                  |   |   | 292,750 |   |   | 272,750 |   |
| Accrued                interest payable                                                                                                              |   |   | 24,343 |   |   | 26,613 |   |
| Subordinated                debt                                                                                                                     |   |   | 51,548 |   |   | 25,774 |   |
| Other                liabilities                                                                                                                     |   |   | 20,114 |   |   | 26,625 |   |
| Total                liabilities                                                                                                                     |   |   | 2,844,511 |   |   | 2,753,983 |   |
| Shareholders'                Equity:                                                                                                                 |   |   |   |   |   |   |   |
| Series                preferred stock, par value $1 per share; Authorized                8,000,000 shares, none issued                               |   |   | - |   |   | - |   |
| Common                stock, par value $1 per share; authorized 75,000,000 Shares;                issued 27,500,407 shares at September 30, 2005 and |   |   |  |   |   |  |   |
|                     27,319,988 shares at December 31, 2004                                                                       |   |   | 27,500 |   |   | 27,320 |   |
| Additional                paid in capital                                                                                                            |   |   | 168,315 |   |   | 160,039 |   |
| Retained                earnings                                                                                                                     |   |   | 84,783 |   |   | 99,730 |   |
| Accumulated                other comprehensive income (loss)                                                                                         |   |   | (4,102 | ) |   | 1,243 |   |
| Treasury                stock, at cost: 41,324 shares at September 30, 2005 and                                                                      |   |   |   |   |   |   |   |
| 1,042,734                shares at December 31, 2004                                                                                                 |   |   | (869 | ) |   | (17,800 | ) |
| Total                shareholders' equity                                                                                                            |   |   | 275,627 |   |   | 270,532 |   |
| Total                liabilities and shareholders' equity                                                                                            |   | $ | 3,120,138 |   | $ | 3,024,515 |   |

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| HARLEYSVILLE                NATIONAL CORPORATION AND SUBSIDIARIESCONSOLIDATED                STATEMENTS OF INCOME(Unaudited) |
|------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                         |   |   |   |
|                                                                                                                         |   | Three                Months Ended  | Nine                Months Ended |
|                                                                                                                              |   | September                30,  | September                30, |
| (Dollars                in thousands, except per share information)                                                          |   |   | 2005 |   |   | 2004 |   |   | 2005 |   |   | 2004 |   |
|                                                                                                                         |   |   |   |   |   |   |   |   |
| **Interest                Income:**                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans,                including fees                                                                                         |   | $ | 29,194 |   | $ | 23,226 |   | $ | 82,188 |   | $ | 63,798 |   |
| Lease                financing                                                                                               |   |   | 483 |   |   | 1,072 |   |   | 1,711 |   |   | 3,570 |   |
| Investment                securities:                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                                                      |   |   | 5,678 |   |   | 6,448 |   |   | 17,362 |   |   | 17,690 |   |
| Exempt                from federal taxes                                                                                     |   |   | 2,797 |   |   | 2,458 |   |   | 8,476 |   |   | 8,144 |   |
| Federal                funds sold and securities purchased under agreements to                resell                         |   |   | 353 |   |   | 155 |   |   | 888 |   |   | 305 |   |
| Deposits                in banks                                                                                             |   |   | 65 |   |   | 7 |   |   | 106 |   |   | 26 |   |
| Total                interest income                                                                                         |   |   | 38,570 |   |   | 33,366 |   |   | 110,731 |   |   | 93,533 |   |
|                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Interest                Expense:**                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                and money market deposits                                                                             |   |   | 5,916 |   |   | 2,647 |   |   | 15,235 |   |   | 6,143 |   |
| Time,                under $100,000                                                                                          |   |   | 4,604 |   |   | 4,490 |   |   | 13,542 |   |   | 13,142 |   |
| Time,                $100,000 or greater                                                                                     |   |   | 1,559 |   |   | 837 |   |   | 3,588 |   |   | 2,428 |   |
| Short-term                borrowings                                                                                         |   |   | 1,299 |   |   | 329 |   |   | 3,153 |   |   | 888 |   |
| Long-term                borrowings                                                                                          |   |   | 3,448 |   |   | 2,983 |   |   | 9,952 |   |   | 7,302 |   |
| Total                interest expense                                                                                        |   |   | 16,826 |   |   | 11,286 |   |   | 45,470 |   |   | 29,903 |   |
|                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income                                                                                           |   |   | 21,744 |   |   | 22,080 |   |   | 65,261 |   |   | 63,630 |   |
| Provision                for loan losses                                                                                     |   |   | 650 |   |   | 499 |   |   | 2,050 |   |   | 1,485 |   |
| Net                interest income after provision for loan losses                                                           |   |   | 21,094 |   |   | 21,581 |   |   | 63,211 |   |   | 62,145 |   |
|                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Noninterest                Income:**                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service                charges                                                                                               |   |   | 2,112 |   |   | 2,000 |   |   | 6,113 |   |   | 5,854 |   |
| Gain                on sales in investment securities, net                                                                   |   |   | 1,898 |   |   | 112 |   |   | 3,047 |   |   | 1,653 |   |
| Gain                on sale of branch                                                                                        |   |   | - |   |   | - |   |   | 690 |   |   | - |   |
| Trust,                investment services and advisory income                                                                |   |   | 1,261 |   |   | 1,878 |   |   | 5,241 |   |   | 4,587 |   |
| Bank-owned                life insurance income                                                                              |   |   | 497 |   |   | 647 |   |   | 1,635 |   |   | 1,779 |   |
| Income                on life insurance                                                                                      |   |   | - |   |   | - |   |   | 177 |   |   | - |   |
| Other                income                                                                                                  |   |   | 1,962 |   |   | 2,056 |   |   | 5,522 |   |   | 4,890 |   |
| Total                noninterest income                                                                                      |   |   | 7,730 |   |   | 6,693 |   |   | 22,425 |   |   | 18,763 |   |
| Net                interest income after provision for loan losses and noninterest                income                     |   |   | 28,824  |   |   | 28,274  |   |   | 85,636  |   |   | 80,908  |   |
|                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Noninterest                Expense:**                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries,                wages and employee benefits                                                                         |   |   | 9,189 |   |   | 9,754 |   |   | 28,869 |   |   | 26,865 |   |
| Occupancy                                                                                                                    |   |   | 1,277 |   |   | 1,135 |   |   | 3,911 |   |   | 3,339 |   |
| Furniture                and equipment                                                                                       |   |   | 963 |   |   | 1,217 |   |   | 3,284 |   |   | 3,607 |   |
| Other                expense                                                                                                 |   |   | 3,884 |   |   | 2,371 |   |   | 11,645 |   |   | 9,076 |   |
| Total                noninterest expense                                                                                     |   |   | 15,313 |   |   | 14,477 |   |   | 47,709 |   |   | 42,887 |   |
|                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                before income tax expense                                                                              |   |   | 13,511 |   |   | 13,797 |   |   | 37,927 |   |   | 38,021 |   |
| Income                tax expense                                                                                            |   |   | 3,349 |   |   | 3,632 |   |   | 8,910 |   |   | 9,567 |   |
| Net                income                                                                                                    |   | $ | 10,162 |   | $ | 10,165 |   | $ | 29,017 |   | $ | 28,454 |   |
|                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income per share information:                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                        |   | $ | 0.37 |   | $ | 0.37 |   | $ | 1.05 |   | $ | 1.05 |   |
| Diluted                                                                                                                      |   | $ | 0.36 |   | $ | 0.36 |   | $ | 1.03 |   | $ | 1.02 |   |
| Cash                dividends per share                                                                                      |   | $ | 0.18 |   | $ | 0.16 |   | $ | 0.52 |   | $ | 0.47 |   |
| Weighted                average number of common shares:                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                        |   |   | 27,521,780 |   |   | 27,552,647 |   |   | 27,544,393 |   |   | 27,032,475 |   |
| Diluted                                                                                                                      |   |   | 28,075,455 |   |   | 28,408,383 |   |   | 28,134,749 |   |   | 27,945,621 |   |
|                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| Nine                Months Ended September 30, 2005                                    |
|----------------------------------------------------------------------------------------|
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  |   |   |   |   |   |   |   |   |   |   |
|                                                                                   |   |   | Common                Stock  |   |   | Treasury                Stock |   |   |   |   |   | Additional |   |   |   |   |   | Accumulated                Other |   |   |   |   |   |   |   |   |   |   |
|                                                                                        |   |   | Number                of  |   |   | Number                of |   |   | Par |   |   | Paid |   |   | Retained |   |   | Comprehensive |   |   | Treasury |   |   |   |   |   | Comprehensive |   |
|                                                                                   |   |   | Shares  |   |   | Shares |   |   | Value |   |   | In                Capital |   |   | Earnings |   |   | Income                (Loss) |   |   | Stock |   |   | Total |   |   | Income                (Loss) |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                January 1, 2005                                                |   |   | 27,320 |   |   | (1,043 | ) | $ | 27,320 |   | $ | 160,039 |   | $ | 99,730 |   | $ | 1,243 |   | $ | (17,800 | ) | $ | 270,532 |   |   |   |   |
| Issuance                of stock for stock options, net of                tax benefits |   |   | 142 |   |   | 68 |   |   | 142 |   |   | 2,181 |   |   | - |   |   | - |   |   | 1,282 |   |   | 3,605 |   |   |   |   |
| Issuance                of stock for stock awards                                      |   |   | - |   |   | - |   |   | - |   |   | 5 |   |   | - |   |   | - |   |   | - |   |   | 5 |   |   |   |   |
| Stock                dividend                                                          |   |   | 38 |   |   | 1,272 |   |   | 38 |   |   | 6,090 |   |   | (29,535 | ) |   | - |   |   | 23,392 |   |   | (15 | ) |   |   |   |
| Net                income                                                              |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 29,017 |   |   | - |   |   | - |   |   | 29,017 |   | $ | 29,017 |   |
| Other                comprehensive loss, net of reclassifications and tax              |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | (5,345 | ) |   | - |   |   | (5,345 | ) |   | (5,345 | ) |
| Purchases                of treasury stock                                             |   |   | - |   |   | (338 | ) |   | - |   |   | - |   |   | - |   |   | - |   |   | (7,743 | ) |   | (7,743 | ) |   |   |   |
| Cash                dividends                                                          |   |   | - |   |   | - |   |   | - |   |   | - |   |   | (14,429 | ) |   | - |   |   | - |   |   | (14,429 | ) |   |   |   |
| Comprehensive                income                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 23,672 |   |
| Balance,                September 30, 2005                                             |   |   | 27,500 |   |   | (41 | ) | $ | 27,500 |   | $ | 168,315 |   | $ | 84,783 |   | $ | (4,102 | ) | $ | (869 | ) | $ | 275,627 |   |   |   |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Nine                Months Ended September 30, 2004                                        |
|--------------------------------------------------------------------------------------------|
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   | Common                Stock  |   |   | Treasury                Stock |   |   |   |   |   | Additional |   |   |   |   |   | Accumulated                Other |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   | Number                of  |   |   | Number                of |   |   | Par |   |   | Paid |   |   | Retained |   |   | Comprehensive |   |   | Treasury |   |   |   |   |   | Comprehensive |   |
|                                                                                            |   |   | Shares  |   |   | Shares |   |   | Value |   |   | In                Capital |   |   | Earnings |   |   | Income                (Loss) |   |   | Stock |   |   | Total |   |   | Income                (Loss) |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                January 1, 2004                                                    |   |   | 24,668 |   |   | (823 | ) | $ | 24,668 |   | $ | 98,646 |   | $ | 109,502 |   | $ | 8,098 |   | $ | (13,861 | ) | $ | 227,053 |   |   |   |   |
| Issuance                of stock for stock options, net of                tax benefits     |   |   | 303 |   |   | - |   |   | 303 |   |   | 3,911 |   |   | - |   |   | - |   |   | - |   |   | 4,214 |   |   |   |   |
| Issuance                of stock for stock awards                                          |   |   | - |   |   | - |   |   | - |   |   | 7 |   |   | - |   |   | - |   |   | - |   |   | 7 |   |   |   |   |
| Stock                dividend                                                              |   |   | 1,295 |   |   | (46 | ) |   | 1,295 |   |   | 28,456 |   |   | (29,764 | ) |   | - |   |   | - |   |   | (13 | ) |   |   |   |
| Net                income                                                                  |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 28,454 |   |   | - |   |   | - |   |   | 28,454 |   | $ | 28,454 |   |
| Other                comprehensive loss, net of reclassifications and tax                  |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | (5,662 | ) |   | - |   |   | (5,662 | ) |   | (5,662 | ) |
| Issuance                of common stock forAcquisition                of Millennium Bank   |   |   | 946 |   |   | - |   |   | 946 |   |   | 27,974 |   |   | - |   |   | - |   |   | - |   |   | 28,920 |   |   |   |   |
| Purchases                of treasury stock                                                 |   |   | - |   |   | (167 | ) |   | - |   |   | 399 |   |   | - |   |   | - |   |   | (3,596 | ) |   | (3,197 | ) |   |   |   |
| Sale                of treasury stock                                                      |   |   | - |   |   | 16 |   |   | - |   |   | (275 | ) |   | - |   |   | - |   |   | 275 |   |   | - |   |   |   |   |
| Cash                dividends                                                              |   |   | - |   |   | - |   |   | - |   |   | - |   |   | (12,810 | ) |   | - |   |   | - |   |   | (12,810 | ) |   |   |   |
| Comprehensive                income                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 22,792 |   |
| Balance,                September 30, 2004                                                 |   |   | 27,212 |   |   | (1,020 | ) | $ | 27,212 |   | $ | 159,118 |   | $ | 95,382 |   | $ | 2,436 |   | $ | (17,182 | ) | $ | 266,966 |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to consolidated financial                statements. |

----

| HARLEYSVILLE                NATIONAL CORPORATION AND SUBSIDIARIES                                                               |
|---------------------------------------------------------------------------------------------------------------------------------|
| CONSOLIDATED                STATEMENTS OF CASH FLOWS                                                                            |
| (Unaudited)                                                                                                                     |
|                                                                                                                            |   | Nine                Months Ended   |
| (Dollars                in thousands)                                                                                           |   | September                30, |
|                                                                                                                            |   |   | 2005 |   |   | 2004 |   |
| **Operating                Activities:**                                                                                        |   |   |   |   |   |   |   |
| Net                income                                                                                                       |   | $ | 29,017 |   | $ | 28,454 |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities:                 |   |   |  |   |   |   |   |
| Provision                for loan losses                                                                                        |   |   | 2,050 |   |   | 1,485 |   |
| Depreciation                and amortization                                                                                    |   |   | 2,352 |   |   | 3,061 |   |
| Net                amortization of investment securities discounts/premiums                                                     |   |   | 2,126 |   |   | 4,452 |   |
| Deferred                income tax benefit                                                                                      |   |   | (2,892 | ) |   | (569 | ) |
| Gains                on sales of investment securities, net                                                                     |   |   | (3,047 | ) |   | (1,653 | ) |
| Gain                on sale of branch                                                                                           |   |   | (690 | ) |   | - |   |
| Gain                on sale of bank subsidiary                                                                                  |   |   | (287 | ) |   | - |   |
| Net                increase in accrued interest receivable                                                                      |   |   | (642 | ) |   | (678 | ) |
| Net                increase (decrease) in accrued interest payable                                                              |   |   | (1,894 | ) |   | 2,533 |   |
| Net                increase in other assets                                                                                     |   |   | (2,389 | ) |   | (1,612 | ) |
| Net                increase (decrease) in other liabilities                                                                     |   |   | (2,598 | ) |   | 2,324 |   |
| Other,                net                                                                                                       |   |   | 5 |   |   | 7 |   |
| Net                cash provided by operating activities                                                                        |   |   | 21,111 |   |   | 37,804 |   |
| **Investing                Activities:**                                                                                        |   |   |   |   |   |   |   |
|  Proceeds                from sales of investment securities available for sale                                            |   |   | 247,040 |   |   | 1,148,686 |   |
|  Proceeds,                maturity or calls of investment securities held to                maturity                       |   |   | 5,870 |   |   | 1,099 |   |
|  Proceeds,                maturity or calls of investment securities available for                sale                     |   |   | 144,473 |   |   | 214,010 |   |
|  Purchases                of investment held to maturity                                                                   |   |   | - |   |   | (3,826 | ) |
|  Purchases                of investment securities available for sale                                                      |   |   | (362,435 | ) |   | (1,387,509 | ) |
|  Net                increase in loans                                                                                      |   |   | (102,787 | ) |   | (211,249 | ) |
|  Net                cash paid in sale of branch                                                                            |   |   | (7,431 | ) |   | — |   |
|  Net                cash received from sale of bank subsidiary                                                             |   |   | 1,931 |   |   | — |   |
|  Net                cash paid due to acquisition, net of cash acquired                                                     |   |   | — |   |   | (18,439 | ) |
|  Net                increase in premises and equipment                                                                     |   |   | (2,535 | ) |   | (4,159 | ) |
|  Purchase                of bank-owned life insurance                                                                      |   |   | (5,000 | ) |   | — |   |
|  Other                net increase in bank-owned life insurance                                                            |   |   | (1,626 | ) |   | (1,780 | ) |
|  Proceeds                from sales of other real estate                                                                   |   |   | 142 |   |   | 1,043 |   |
|  Net                cash used in investing activities                                                                      |   |   | (82,358 | ) |   | (262,124 | ) |
| **Financing                Activities:**                                                                                        |   |   |   |   |   |   |   |
| Net                increase in deposits                                                                                         |   |   | 150,574 |   |   | 79,424 |   |
| Increase                (decrease) in federal funds purchased and securities sold under agreements                to repurchase |   |   | (37,954 | ) |   | 75,130 |   |
| Decrease                in short-term borrowings                                                                                |   |   | (45,507 | ) |   | (3,000 | ) |
| Advances                of long-term borrowings                                                                                 |   |   | 20,000 |   |   | 68,000 |   |
| Advances                of subordinated debt                                                                                    |   |   | 25,774 |   |   | 20,619 |   |
| Cash                dividends                                                                                                   |   |   | (14,429 | ) |   | (12,810 | ) |
| Repurchase                of common stock                                                                                       |   |   | (7,743 | ) |   | (3,197 | ) |
| Proceeds                from the exercise of stock options                                                                      |   |   | 3,605 |   |   | 4,214 |   |
| Other,                net                                                                                                       |   |   | (15 | ) |   | (13 | ) |
| Net                cash provided by financing activities                                                                        |   |   | 94,305 |   |   | 228,367 |   |
| Net                increase in cash and cash equivalents                                                                        |   |   | 33,058 |   |   | 4,047 |   |
| Cash                and cash equivalents at beginning of period                                                                 |   |   | 106,990 |   |   | 94,857 |   |
| Cash                and cash equivalents at end of the period                                                                   |   | $ | 140,048 |   | $ | 98,904 |   |
|                                                                                                                            |   |   |   |   |   |   |   |
| Cash                paid during the period for:                                                                                 |   |   |   |   |   |   |   |
| Interest                                                                                                                        |   | $ | 47,611 |   | $ | 27,753 |   |
| Income                taxes                                                                                                     |   | $ | 12,850 |   | $ | 7,400 |   |
| Supplemental                disclosure of noncash investing and financing activities:                                           |   |   |   |   |   |   |   |
| Transfer                of assets from loans to other real estate owned                                                         |   | $ | 279 |   | $ | 517 |   |
| Acquisition                of Millennium Bank, common stock issued                                                              |   | $ | — |   | $ | 28,920 |   |
|                                                                                                                            |
| See                accompanying notes to consolidated financial statements.                                                     |   |   |   |   |   |   |   |

----

**HARLEYSVILLE      NATIONAL CORPORATION AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**Note      1**
**-      Summary of Significant Accounting Policies**

*Principles      of Consolidation and Basis of Presentation*

*Goodwill      and Intangible Assets*

*Stock      Based Compensation*

*pro      forma*

** **

----

**Note      1**
**-      Summary of Significant Accounting Policies (Continued)**

|                                                            |   | Three                Months Ended  | Nine                Months Ended |
|-----------------------------------------------------------------|--------|-----------------------------------------|----------------------------------|
| (Dollars                in thousands, except per share amounts) |   | September                30,            | September                30,     |
|                                                            |   |                                    | 2005                             |   |   | 2004 |   |   | 2005 |   |   | 2004 |   |
| Net                Income                                       |   |                                    |                             |   |   |   |   |   |   |   |   |   |   |
| As                reported                                      |   | $                                       | 10,162                           |   | $ | 10,165 |   | $ | 29,017 |   | $ | 28,454 |   |
| Less:                Stock-based compensation cost determined   |   |                                    |                             |   |   |   |   |   |   |   |   |   |   |
| Under                fair value method for all awards           |   |                                    | 106                              |   |   | 172 |   |   | 503 |   |   | 1,049 |   |
|  *Proforma*                                                |   | $                                       | 10,056                           |   | $ | 9,993 |   | $ | 28,514 |   | $ | 27,405 |   |
|                                                            |   |                                    |                             |   |   |   |   |   |   |   |   |   |   |
| Earnings                per share (Basic)                       |   |                                    |                             |   |   |   |   |   |   |   |   |   |   |
| As                reported                                      |   | $                                       | .37                              |   | $ | .37 |   | $ | 1.05 |   | $ | 1.05 |   |
|  *Proforma*                                                |   | $                                       | .37                              |   | $ | .36 |   | $ | 1.04 |   | $ | 1.01 |   |
|                                                            |   |                                    |                             |   |   |   |   |   |   |   |   |   |   |
| Earnings                per share (Diluted)                     |   |                                    |                             |   |   |   |   |   |   |   |   |   |   |
| As                reported                                      |   | $                                       | .36                              |   | $ | .36 |   | $ | 1.03 |   | $ | 1.02 |   |
|  *Proforma*                                                |   | $                                       | .36                              |   | $ | .35 |   | $ | 1.01 |   | $ | .98 |   |
|                                                            |   |                                    |                             |   |   |   |   |   |   |   |   |   |   |

----

**Note      2 - Dispositions / Acquisition **

**Note      3 - Trust Preferred Securities**

----

**Note      3 - Trust Preferred Securities (Continued)**
** **

**Note      4 -**
**      Pension Plan**

|                                                                |   | Nine                Months Ended  |
|----------------------------------------------------------------|--------|----------------------------------------|
|                                                                |   | September                30,      |
| (Dollars                in thousands)                          |   |                                   | 2005 |   |   | 2004 |   |
|                                                           |   |                                   |   |   |   |   |   |
| Service                cost                                    |   | $                                      | 789 |   | $ | 655 |   |
| Interest                cost                                   |   |                                   | 481 |   |   | 424 |   |
| Expected                return on plan assets                  |   |                                   | (393 | ) |   | (358 | ) |
| Amortization                of prior service cost              |   |                                   | — |   |   | (79 | ) |
| Amortization                of unrecognized net actuarial loss |   |                                   | 70 |   |   | 60 |   |
| Net                periodic benefit expense                    |   | $                                      | 947 |   | $ | 702 |   |

**Note      5 - Stock Dividend/Split**

----

**Note      6 **
**Earnings      Per Share**

|                                                                                                   |   | Three                Months Ended  | Nine                Months Ended |
|---------------------------------------------------------------------------------------------------|--------|-----------------------------------------|----------------------------------|
|                                                                                                   |   | September                30,       | September                30      |
| (Dollars                in thousands, except per share data)                                      |   |                                    | 2005                             |   |   | 2004 |   |   | 2005 |   |   | 2004 |   |
|                                                                                              |   |                                    |                             |   |   |   |   |   |   |   |   |   |   |
| **Basic                earnings per share**                                                       |   |                                    |                             |   |   |   |   |   |   |   |   |   |   |
| Net                income available to common shareholders                                        |   | $                                       | 10,162                           |   | $ | 10,165 |   | $ | 29,017 |   | $ | 28,454 |   |
| Weighted                average common shares outstanding                                         |   |                                    | 27,521,780                       |   |   | 27,552,647 |   |   | 27,544,393 |   |   | 27,032,475 |   |
| Basic                earnings per share                                                           |   | $                                       | .37                              |   | $ | .37 |   | $ | 1.05 |   | $ | 1.05 |   |
|                                                                                              |   |                                    |                             |   |   |   |   |   |   |   |   |   |   |
| **Diluted                earnings per share**                                                     |   |                                    |                             |   |   |   |   |   |   |   |   |   |   |
| Net                income available to common shareholders and                assumed conversions |   | $                                       | 10,162                           |   | $ | 10,165 |   | $ | 29,017 |   | $ | 28,454 |   |
| Weighted                average common shares outstanding                                         |   |                                    | 27,521,780                       |   |   | 27,552,647 |   |   | 27,544,393 |   |   | 27,032,475 |   |
| Dilutive                potential common shares (1),                (2)                           |   |                                    | 553,675                          |   |   | 855,736 |   |   | 590,356 |   |   | 913,146 |   |
| Total                diluted weighted average common shares outstanding                           |   |                                    | 28,075,455                       |   |   | 28,408,383 |   |   | 28,134,749 |   |   | 27,945,621 |   |
| Diluted                earnings per share                                                         |   | $                                       | .36                              |   | $ | .36 |   | $ | 1.03 |   | $ | 1.02 |   |
|                                                                                              |   |                                    |                             |   |   |   |   |   |   |   |   |   |   |

| (1)   | Includes                incremental shares from assumed conversions of stock                options. |
|-----------------|------------------------------------------------------------------------------------------------------|

| (2)   | Antidilutive                options have been excluded in the computation of diluted earnings                per                share because the options’ exercise prices were greater than the average                market price of the common stock. For the three and nine months ended                September 30, 2005, there were 352,581 antidilutive options at an                average                price of $26.95 and 354,681 antidilutive options at an average price                of                $26.92, respectively. For the three and nine months ended September                30,                2004, there were 244,650 antidilutive options at an average price                of                $27.66 and 239,400 antidilutive options at an average price of $27.77,                respectively. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Note      7**
**Comprehensive      Income**

| Comprehensive                  Income                                                                   |
|---------------------------------------------------------------------------------------------------------|
|                                                                                                    |   |   |   |   |   |   |   |   |   |   |
| (Dollars                  in thousands)                                                                 |   |   | Before                  tax |   |   | Tax                  Benefit |   |   | Net                  of tax |   |
| Nine                  months ended September 30, 2005                                                   |   |   | Amount |   |   | (Expense) |   |   | Amount |   |
| Net                  unrealized losses on available for sale securities:                                |   |   |   |
| Net                  unrealized holding losses arising during period                                    |   | $ | (5,533 | ) | $ | 1,937 |   | $ | (3,596 | ) |
| Less                  reclassification adjustment for net gains realized in net                  income |   |   | 3,047 |   |   | (1,066 | ) |   | 1,981 |   |
| Net                  unrealized losses                                                                  |   |   | (8,580 | ) |   | 3,003 |   |   | (5,577 | ) |
| Change                  in fair value of derivatives used for cash flow hedges                          |   |   | 552 |   |   | (193 | ) |   | 359 |   |
| Unrealized                  loss on termination of cash flow hedge                                      |   |   | (195 | ) |   | 68 |   |   | (127 | ) |
| Other                  comprehensive loss, net                                                          |   | $ | (8,223 | ) | $ | 2,878 |   | $ | (5,345 | ) |
|                                                                                                    |   |   |   |   |   |   |   |   |   |   |
| (Dollars                  in thousands)                                                                 |   |   | Before                  tax |   |   | Tax                  Benefit |   |   | Net                  of tax |   |
| Nine                  months ended September 30, 2004                                                   |   |   | Amount |   |   | (Expense | ) |   | amount |   |
| Net                  unrealized losses on available for sale securities:                                |   |   |   |
| Net                  unrealized holding losses arising during period                                    |   | $ | (7,558 | ) | $ | 2,645 |   | $ | (4,913 | ) |
| Less                  reclassification adjustment for net gains realized in net                  income |   |   | 1,653 |   |   | (579 | ) |   | 1,074 |   |
| Net                  unrealized losses                                                                  |   |   | (9,211 | ) |   | 3,224 |   |   | (5,987 | ) |
| Change                  in minimum pension liability                                                    |   |   | 460 |   |   | — |   |   | 460 |   |
| Change                  in fair value of derivatives used for cash flow hedges                          |   |   | (207 | ) |   | 72 |   |   | (135 | ) |
| Other                  comprehensive loss, net                                                          |   | $ | (8,958 | ) | $ | 3,296 |   | $ | (5,662 | ) |

----

**Note      8 - Financial Instruments with Off-Balance Sheet Risk**

|                                                                                                                                         |          | *Total                Amount Committed at* |
|-----------------------------------------------------------------------------------------------------------------------------------------|----------|--------------------------------------------|
|                                                                                                                                    |
| **Commitments**                                                                                                                         |     | September                30, 2005          | December                31, 2004 |
| (Dollars                in thousands)                                                                                                   |
|                                                                                                                                    |     |                                       |
| Financial                instruments whose contract amounts represent credit risk:                                                      |     |                                       |
| Commitments                to extend credit                                                                                             | $737,556 | $660,238                                   |
| Standby                letters of credit and financial guarantees written                                                               | 15,911   | 17,217                                     |
| Financial                instruments whose notional or contract amounts exceed the amount                of credit                risk: |     |                                       |
| Interest                rate swap agreements                                                                                            | 20,000   | 45,000                                     |

----

**Note      9 - Recent Accounting Pronouncements **

*“*
* *
*“*

----

**Item      2.**
**MANAGEMENT'S      DISCUSSION AND ANALYSIS OF**

**                  RESULTS OF OPERATIONS AND FINANCIAL CONDITION**

**Critical      Accounting Estimates **

----

**Financial      Overview**

----

**Results      of Operations**

**Net      Interest Income **

**Table      1—Analysis of Changes in Net Interest Income—Fully Taxable-Equivalent Basis**

|                                                         |   | Three                Months Ended              | Nine                Months Ended              |
|--------------------------------------------------------------|--------|-----------------------------------------------------|-----------------------------------------------|
|                                                         |   | September                30, 2005 compared to  | September                30, 2005 compared to |
| (Dollars                in thousands)                        |   | September                30, 2004                   | September                30, 2004             |
|                                                         |   |                                                |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                              |   |                                                | Total                                    |   | Due                to change in: |   | Total |   | Due                to change in: |
|                                                         |   |                                                | Change                                   |   |   | Volume |   |   | Rate |   |   | Change |   |   | Volume |   |   | Rate |   |
|                                                         |   |                                                |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase                (decrease) in interest income:       |   |                                                |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                securities *                       |   | $                                                   | (453                                          | ) | $ | (298 | ) | $ | (155 | ) | $ | (488 | ) | $ | (1,242 | ) | $ | 754 |   |
| Federal                funds sold and deposits in banks      |   |                                                | 256                                           |   |   | 18 |   |   | 238 |   |   | 663 |   |   | 52 |   |   | 611 |   |
| Loans                *                                       |   |                                                | 5,288                                         |   |   | 2,986 |   |   | 2,302 |   |   | 16,341 |   |   | 13,838 |   |   | 2,503 |   |
| Total                                                        |   |                                                | 5,091                                         |   |   | 2,706 |   |   | 2,385 |   |   | 16,516 |   |   | 12,648 |   |   | 3,868 |   |
|                                                         |   |                                                |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase                (decrease) in interest expense:      |   |                                                |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                and money market deposits             |   |                                                | 3,269                                         |   |   | 221 |   |   | 3,048 |   |   | 9,092 |   |   | 1,047 |   |   | 8,045 |   |
| Time                deposits                                 |   |                                                | 836                                           |   |   | 32 |   |   | 804 |   |   | 1,560 |   |   | (332 | ) |   | 1,892 |   |
| Borrowed                funds                                |   |                                                | 1,435                                         |   |   | 520 |   |   | 915 |   |   | 4,915 |   |   | 2,714 |   |   | 2,201 |   |
| Total                                                        |   |                                                | 5,540                                         |   |   | 773 |   |   | 4,767 |   |   | 15,567 |   |   | 3,429 |   |   | 12,138 |   |
|                                                         |   |                                                |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                increase (decrease) in interest income    |   | $                                                   | (449                                          | ) | $ | 1,933 |   | $ | (2,382 | ) | $ | 949 |   | $ | 9,219 |   | $ | (8,270 | ) |
| *Tax                equivalent basis using a tax rate of 35% |   |                                                |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

**Table      2—**
**Average      Balance Sheets and Interest Rates**
**¾**
**Fully      Taxable-Equivalent Basis**

| (Dollars                in thousands)                       |   | Three                Months Ended September 30, | Three                Months Ended September 30, |
|-------------------------------------------------------------|--------|-------------------------------------------------|-------------------------------------------------|
|                                                        |   | 2005                                            | 2004                                            |
|                                                        |   |                                            |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                             |   |                                            | Average                                    |   |   |   |   |   | Average |   |   | Average |   |   |   |   |   | Average |   |
| **Assets**                                                  |   |                                            | Balance                                         |   |   | Interest |   |   | Rate |   |   | Balance |   |   | Interest |   |   | Rate |   |
| Earning                assets:                              |   |                                            |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                securities:                       |   |                                            |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                investments                          |   | $                                               | 642,405                                         |   | $ | 5,678 |   |   | 3.51 | % | $ | 709,890 |   | $ | 6,448 |   |   | 3.61 | % |
| Nontaxable                investments (1)                   |   |                                            | 261,519                                         |   |   | 4,190 |   |   | 6.36 |   |   | 222,420 |   |   | 3,873 |   |   | 6.93 |   |
| Total                investment securities                  |   |                                            | 903,924                                         |   |   | 9,868 |   |   | 4.33 |   |   | 932,310 |   |   | 10,321 |   |   | 4.40 |   |
| Federal                funds sold and deposits in banks     |   |                                            | 50,489                                          |   |   | 418 |   |   | 3.28 |   |   | 46,004 |   |   | 162 |   |   | 1.40 |   |
| Loans                (1)                (2)                 |   |                                            | 1,912,551                                       |   |   | 29,886 |   |   | 6.20 |   |   | 1,717,245 |   |   | 24,598 |   |   | 5.70 |   |
| Total                earning assets                         |   |                                            | 2,866,964                                       |   |   | 40,172 |   |   | 5.56 |   |   | 2,695,559 |   |   | 35,081 |   |   | 5.18 |   |
| Noninterest-earning                assets                   |   |                                            | 187,931                                         |   |   |  |   |   |   |   |   | 183,210 |   |   |   |   |   |   |   |
| Total                assets                                 |   | $                                               | 3,054,895                                       |   |   |   |   |   |   |   | $ | 2,878,769 |   |   |   |   |   |   |   |
|                                                        |   |                                            |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Liabilities                and Shareholders' Equity**     |   |                                            |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                liabilities:                |   |                                            |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                deposits:                   |   |                                            |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                and money market                     |   | $                                               | 1,232,136                                       |   |   | 5,916 |   |   | 1.90 |   | $ | 1,143,618 |   |   | 2,647 |   |   | 0.92 |   |
| Time                                                        |   |                                            | 685,168                                         |   |   | 6,163 |   |   | 3.57 |   |   | 681,266 |   |   | 5,327 |   |   | 3.11 |   |
| Total                interest-bearing deposits              |   |                                            | 1,917,304                                       |   |   | 12,079 |   |   | 2.50 |   |   | 1,824,884 |   |   | 7,974 |   |   | 1.74 |   |
| Borrowed                funds                               |   |                                            | 471,579                                         |   |   | 4,747 |   |   | 3.99 |   |   | 412,797 |   |   | 3,312 |   |   | 3.19 |   |
| Total                interest bearing liabilities           |   |                                            | 2,388,883                                       |   |   | 16,826 |   |   | 2.79 |   |   | 2,237,681 |   |   | 11,286 |   |   | 2.01 |   |
| Noninterest-bearing                liabilities:             |   |                                            |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand                deposits                              |   |                                            | 343,658                                         |   |   |   |   |   |   |   |   | 329,559 |   |   |   |   |   |   |   |
| Other                liabilities                            |   |                                            | 46,904                                          |   |   |   |   |   |   |   |   | 52,494 |   |   |   |   |   |   |   |
| Total                noninterest-bearing liabilities        |   |                                            | 390,562                                         |   |   |   |   |   |   |   |   | 382,053 |   |   |   |   |   |   |   |
| Total                liabilities                            |   |                                            | 2,779,445                                       |   |   |   |   |   |   |   |   | 2,619,734 |   |   |   |   |   |   |   |
| Shareholders'                equity                         |   |                                            | 275,450                                         |   |   |   |   |   |   |   |   | 259,035 |   |   |   |   |   |   |   |
| Total                liabilities and shareholders' equity   |   | $                                               | 3,054,895                                       |   |   |   |   |   |   |   | $ | 2,878,769 |   |   |   |   |   |   |   |
| Net                interest spread                          |   |                                            |                                            |   |   |   |   |   | 2.77 |   |   |   |   |   |   |   |   | 3.17 |   |
| Effect                of noninterest-bearing sources        |   |                                            |                                            |   |   |   |   |   | 0.46 |   |   |   |   |   |   |   |   | .34 |   |
| Net                interest income/margin on earning assets |   |                                            |                                            |   | $ | 23,346 |   |   | 3.23 | % |   |   |   | $ | 23,795 |   |   | 3.51 | % |
|                                                        |   |                                            |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less                tax equivalent adjustment               |   |                                            |                                            |   |   | 1,602 |   |   |   |   |   |   |   |   | 1,715 |   |   |   |   |
| Net                interest income                          |   |                                            |                                            |   | $ | 21,744 |   |   |   |   |   |   |   | $ | 22,080 |   |   |   |   |

----

| (Dollars                in thousands)                       |   | Nine                Months Ended September 30, | Nine                Months Ended September 30, |
|-------------------------------------------------------------|--------|------------------------------------------------|------------------------------------------------|
|                                                        |   | 2005                                           | 2004                                           |
|                                                        |   |                                           |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                             |   |                                           | Average                                   |   |   |   |   |   | Average |   |   | Average |   |   |   |   |   | Average |   |
| **Assets**                                                  |   |                                           | Balance                                        |   |   | Interest |   |   | Rate |   |   | Balance |   |   | Interest |   |   | Rate |   |
| Earning                assets:                              |   |                                           |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                securities:                       |   |                                           |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                investments                          |   | $                                              | 641,102                                        |   | $ | 17,362 |   |   | 3.62 | % | $ | 703,978 |   | $ | 17,690 |   |   | 3.36 | % |
| Nontaxable                investments (1)                   |   |                                           | 263,993                                        |   |   | 12,675 |   |   | 6.42 |   |   | 238,001 |   |   | 12,835 |   |   | 7.20 |   |
| Total                investment securities                  |   |                                           | 905,095                                        |   |   | 30,037 |   |   | 4.44 |   |   | 941,979 |   |   | 30,525 |   |   | 4.33 |   |
| Federal                funds sold and deposits in banks     |   |                                           | 46,773                                         |   |   | 994 |   |   | 2.84 |   |   | 41,098 |   |   | 331 |   |   | 1.08 |   |
| Loans                (1)                (2)                 |   |                                           | 1,879,230                                      |   |   | 84,602 |   |   | 6.02 |   |   | 1,568,837 |   |   | 68,261 |   |   | 5.81 |   |
| Total                earning assets                         |   |                                           | 2,831,098                                      |   |   | 115,633 |   |   | 5.46 |   |   | 2,551,914 |   |   | 99,117 |   |   | 5.19 |   |
| Noninterest-earning                assets                   |   |                                           | 181,633                                        |   |   |  |   |   |   |   |   | 159,653 |   |   |   |   |   |   |   |
| Total                assets                                 |   | $                                              | 3,012,731                                      |   |   |   |   |   |   |   | $ | 2,711,567 |   |   |   |   |   |   |   |
|                                                        |   |                                           |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Liabilities                and Shareholders' Equity**     |   |                                           |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                liabilities:                |   |                                           |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                deposits:                   |   |                                           |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                and money market                     |   | $                                              | 1,234,032                                      |   |   | 15,235 |   |   | 1.65 |   | $ | 1,072,585 |   |   | 6,143 |   |   | 0.77 |   |
| Time                                                        |   |                                           | 659,241                                        |   |   | 17,130 |   |   | 3.47 |   |   | 673,411 |   |   | 15,570 |   |   | 3.09 |   |
| Total                interest-bearing deposits              |   |                                           | 1,893,273                                      |   |   | 32,365 |   |   | 2.29 |   |   | 1,745,996 |   |   | 21,713 |   |   | 1.66 |   |
| Borrowed                funds                               |   |                                           | 460,933                                        |   |   | 13,105 |   |   | 3.80 |   |   | 356,380 |   |   | 8,190 |   |   | 3.07 |   |
| Total                interest bearing liabilities           |   |                                           | 2,354,206                                      |   |   | 45,470 |   |   | 2.58 |   |   | 2,102,376 |   |   | 29,903 |   |   | 1.90 |   |
| Noninterest-bearing                liabilities:             |   |                                           |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand                deposits                              |   |                                           | 335,015                                        |   |   |   |   |   |   |   |   | 309,102 |   |   |   |   |   |   |   |
| Other                liabilities                            |   |                                           | 50,590                                         |   |   |   |   |   |   |   |   | 53,585 |   |   |   |   |   |   |   |
| Total                noninterest-bearing liabilities        |   |                                           | 385,605                                        |   |   |   |   |   |   |   |   | 362,687 |   |   |   |   |   |   |   |
| Total                liabilities                            |   |                                           | 2,739,811                                      |   |   |   |   |   |   |   |   | 2,465,063 |   |   |   |   |   |   |   |
| Shareholders'                equity                         |   |                                           | 272,920                                        |   |   |   |   |   |   |   |   | 246,504 |   |   |   |   |   |   |   |
| Total                liabilities and shareholders' equity   |   | $                                              | 3,012,731                                      |   |   |   |   |   |   |   | $ | 2,711,567 |   |   |   |   |   |   |   |
| Net                interest spread                          |   |                                           |                                           |   |   |   |   |   | 2.88 |   |   |   |   |   |   |   |   | 3.29 |   |
| Effect                of noninterest-bearing sources        |   |                                           |                                           |   |   |   |   |   | 0.43 |   |   |   |   |   |   |   |   | .33 |   |
| Net                interest income/margin on earning assets |   |                                           |                                           |   | $ | 70,163 |   |   | 3.31 | % |   |   |   | $ | 69,214 |   |   | 3.62 | % |
|                                                        |   |                                           |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less                tax equivalent adjustment               |   |                                           |                                           |   |   | 4,902 |   |   |   |   |   |   |   |   | 5,584 |   |   |   |   |
| Net                interest income                          |   |                                           |                                           |   | $ | 65,261 |   |   |   |   |   |   |   | $ | 63,630 |   |   |   |   |

| (1)   | The                interest earned on nontaxable investment securities and loans is                shown on                a tax equivalent basis (tax rate of                35%). |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Nonaccrual                loans have been included in the appropriate average loan balance                category,                but interest on nonaccrual loans has not been included for purposes                of                determining interest income. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Net      Interest Margin**

**Interest      Rate Sensitivity Analysis **

**Table      3—Market Value of Equity**

|                                       |   |   |                              |   |   | Change                in   |   |   |       |   |   | Asset/Liability               |   |
|---------------------------------------|--------|--------|-----------------------------------|--------|--------|--------------------------------------|--------|--------|------------|--------|--------|-------------------------------|--------|
|                                       |   |   | Market                Value  |   |   | Market                Value          |   |   | Percentage |   |   | Approved                      |   |
| (Dollars                in thousands) |   |   | of                Equity          |   |   | of                Equity             |   |   | Change     |   |   | Percent                Change |   |
|                                  |   |   |                              |   |   |                                 |   |   |       |   |   |                          |   |
| +300                Basis Points      |   | $      | 331,997                           |   | $      | (75,525                              | )      |   | -18.53     | %      |   | +/-                35         | %      |
| +200                Basis Points      |   |   | 358,104                           |   |   | (49,418                              | )      |   | -12.13     |   |   | +/-                25         |   |
| +100                Basis Points      |   |   | 386,902                           |   |   | (20,620                              | )      |   | -5.06      |   |   | +/-                15         |   |
| Flat                Rate              |   |   | 407,522                           |   |   | -                                    |   |   | 0.00       |   |   |                          |   |
| -100                Basis Points      |   |   | 408,237                           |   |   | 715                                  |   |   | .18        |   |   | +/-                15         |   |
| -200                Basis Points      |   |   | 397,036                           |   |   | (10,486                              | )      |   | -2.57      |   |   | +/-                25         |   |
| -300                Basis Points      |   |   | 379,432                           |   |   | (28,090                              | )      |   | -6.89      |   |   | +/-                35         |   |

----

**Provision      for Loan Losses **

----

**Table      4—Allowance for Loans Losses**

|                                                         |   | Nine                Months Ended  |
|---------------------------------------------------------|--------|----------------------------------------|
|                                                         |   | September                30,      |
| (Dollars                in thousands)                   |   |                                   | 2005 |   |   | 2004 |   |
|                                                    |   |                                   |   |   |   |   |   |
| Average                loans                            |   | $                                      | 1,879,230 |   | $ | 1,568,837 |   |
|                                                    |   |                                   |   |   |   |   |   |
| Allowance,                beginning of period           |   |                                   | 18,455 |   |   | 16,753 |   |
| Loans                charged off:                       |   |                                   |   |   |   |   |   |
| Commercial                and industrial                |   |                                   | 282 |   |   | 255 |   |
| Consumer                                                |   |                                   | 1,467 |   |   | 1,567 |   |
| Real                estate                              |   |                                   | 144 |   |   | 189 |   |
| Lease                financing                          |   |                                   | 31 |   |   | 646 |   |
| Total                loans charged off                  |   |                                   | 1,924 |   |   | 2,657 |   |
| Recoveries:                                             |   |                                   |   |   |   |   |   |
| Commercial                and industrial                |   |                                   | 65 |   |   | 4 |   |
| Consumer                                                |   |                                   | 301 |   |   | 371 |   |
| Real                estate                              |   |                                   | 197 |   |   | 107 |   |
| Lease                financing                          |   |                                   | 61 |   |   | 55 |   |
| Total                recoveries                         |   |                                   | 624 |   |   | 537 |   |
| Net                loans charged off                    |   |                                   | 1,300 |   |   | 2,120 |   |
| Reserve                from Millennium Bank acquisition |   |                                   | — |   |   | 1,677 |   |
| Provision                for loan losses                |   |                                   | 2,050 |   |   | 1,485 |   |
| Allowance,                end of period                 |   | $                                      | 19,205 |   | $ | 17,795 |   |
| Ratio                of net charge offs to average      |   |                                   |   |   |   |   |   |
| loans                outstanding (annualized)           |   |                                   | 0.14 | % |   | 0.18 | % |
|                                                    |   |                                   |   |   |   |   |   |

**Table      5—Allocation of the Allowance for Loan Losses by Loan Type**

|                                          |   | September                30, 2005  | December                31, 2004 |
|------------------------------------------|--------|-----------------------------------------|----------------------------------|
|                                          |   |                                    |                             |   |   | Percent                of  |   |   |   |   |   | Percent                of |   |
| (Dollars                in thousands)    |   |                                    | Amount                           |   |   | Reserve |   |   | Amount |   |   | Reserve |   |
|                                     |   |                                    |                             |   |   |   |   |   |   |   |   |   |   |
| Real                estate               |   | $                                       | 5,348                            |   |   | 28 | % | $ | 4,923 |   |   | 27 | % |
| Commercial                and industrial |   |                                    | 8,422                            |   |   | 44 | % |   | 7,456 |   |   | 40 | % |
| Consumer                                 |   |                                    | 5,124                            |   |   | 26 | % |   | 5,515 |   |   | 30 | % |
| Lease                financing           |   |                                    | 311                              |   |   | 2 | % |   | 561 |   |   | 3 | % |
| Total                                    |   | $                                       | 19,205                           |   |   | 100 | % | $ | 18,455 |   |   | 100 | % |

----

**Table      6—**
**Nonperforming      Assets**

|  (Dollars                in thousands)                         |   |   | September                30,2005 |   |   | December                31,2004 |   |   | September                30,2004 |   |
|---------------------------------------------------------------------|--------|--------|----------------------------------|--------|--------|---------------------------------|--------|--------|----------------------------------|--------|
|                                                                |   |   |                             |   |   |                            |   |   |                             |   |
| Nonaccrual                loans                                     |   | $      | 6,388                            |   | $      | 4,705                           |   | $      | 3,350                            |   |
| Loans                90 days or more past due                       |   |   | 1,125                            |   |   | 981                             |   |   | 948                              |   |
| Total                nonperforming loans                            |   |   | 7,513                            |   |   | 5,686                           |   |   | 4,298                            |   |
| Net                assets in foreclosure                            |   |   | 469                              |   |   | 370                             |   |   | 347                              |   |
| Total                nonperforming assets                           |   | $      | 7,982                            |   | $      | 6,056                           |   | $      | 4,645                            |   |
|                                                                |   |   |                             |   |   |                            |   |   |                             |   |
|  Allowance              for loan losses to nonperforming loans |   |   | 255.6                       | %      |   | 324.6                      | %      |   | 414.0                       | %      |
| Nonperforming                loans to total net loans               |   |   | 0.39                             | %      |   | 0.31                            | %      |   | 0.24                             | %      |
| Allowance                for loan and lease losses to total loans   |   |   | 0.99                             | %      |   | 1.00                            | %      |   | 1.00                             | %      |
| Nonperforming                assets to total assets                 |   |   | 0.26                             | %      |   | 0.20                            | %      |   | 0.16                             | %      |
|                                                                |   |   |                             |   |   |                            |   |   |                             |   |

**Table      7—Impaired Loans**

| (Dollars                in thousands)                           |   |   | September                30, 2005 |   |   | Dec.                31, 2004 |   |   | September                30, 2004 |   |
|-----------------------------------------------------------------|--------|--------|-----------------------------------|--------|--------|------------------------------|--------|--------|-----------------------------------|--------|
|                                                            |   |   |                              |   |   |                         |   |   |                              |   |
| Impaired                Loans                                   |   | $      | 1,330                             |   | $      | 2,144                        |   | $      | 1,300                             |   |
|                                                            |   |   |                              |   |   |                         |   |   |                                   |   |
| Average                year-to-date impaired loans              |   | $      | 1,285                             |   | $      | 1,795                        |   | $      | 1,277                             |   |
|                                                            |   |   |                              |   |   |                         |   |   |                                   |   |
| Impaired                loans with specific loss allowances     |   | $      | 1,330                             |   | $      | 2,144                        |   | $      | 1,300                             |   |
|                                                            |   |   |                              |   |   |                         |   |   |                              |   |
| Loss                allowances reserved on impaired loans       |   | $      | 151                               |   | $      | 243                          |   | $      | 141                               |   |
|                                                            |   |   |                              |   |   |                         |   |   |                              |   |
| Year-to-date                income recognized on impaired loans |   | $      | 19                                |   | $      | 2                            |   | $      | —                           |   |

----

**Noninterest      Income**

**Noninterest      Expense**

**Federal      Income Taxes**

----

**Balance      Sheet Analysis**

**Capital**

**Table      8—Regulatory Capital**

|   (Dollars                in thousands)        |   |   |         |   |   |   |   |  For                CapitalAdequacy                Purposes | To                Be Well CapitalizedUnder                Prompt CorrectiveAction                Program |
|----------------------------------------------------------|--------|--------|--------------|--------|--------|--------|--------|------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|
|  As                of September 30, 2005            |   |   | ActualAmount |   |   | Ratio  |   |                                                             | Amount                                                                                                   |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                                                     |   |   |         |   |   |   |   |                                                             |                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Total                Capital (to risk weighted assets):  |   |   |         |   |   |   |   |                                                             |                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Corporation                                              |   | $      | 316,587      |   |   | 13.10  | %      | $                                                                | 193,318                                                                                                  |   |   | 8.00 | % | $ | 241,647 |   |   | - |   |
| Harleysville                National Bank                |   |   | 256,074      |   |   | 10.66  | %      |                                                             | 192,170                                                                                                  |   |   | 8.00 | % |   | 240,213 |   |   | 10 | % |
| Tier                1 Capital (to risk weighted assets): |   |   |         |   |   |   |   |                                                             |                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Corporation                                              |   |   | 297,200      |   |   | 12.30  | %      |                                                             | 96,659                                                                                                   |   |   | 4.00 | % |   | 144,988 |   |   | - |   |
| Harleysville                National Bank                |   |   | 236,769      |   |   | 9.86   | %      |                                                             | 96,085                                                                                                   |   |   | 4.00 | % |   | 144,128 |   |   | 6 | % |
| Tier                1 Capital (to average assets):       |   |   |         |   |   |   |   |                                                             |                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Corporation                                              |   |   | 297,200      |   |   | 9.83   | %      |                                                             | 120,895                                                                                                  |   |   | 4.00 | % |   | 151,118 |   |   | - |   |
| Harleysville                National Bank                |   |   | 236,769      |   |   | 7.92   | %      |                                                             | 119,574                                                                                                  |   |   | 4.00 | % |   | 149,468 |   |   | 5 | % |

|   (Dollars                in thousands)        |   |   |         |   |   |   |   |  For                CapitalAdequacy                Purposes | To                Be Well CapitalizedUnder                Prompt CorrectiveAction                Program |
|----------------------------------------------------------|--------|--------|--------------|--------|--------|--------|--------|------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|
|  As                of December 31, 2004             |   |   | ActualAmount |   |   | Ratio  |   |                                                             | Amount                                                                                                   |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                                                     |   |   |         |   |   |   |   |                                                             |                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Total                Capital (to risk weighted assets):  |   |   |         |   |   |   |   |                                                             |                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Corporation                                              |   | $      | 280,055      |   |   | 12.21  | %      | $                                                                | 183,436                                                                                                  |   |   | 8.00 | % | $ | 229,295 |   |   | — |   |
| Harleysville                National Bank                |   |   | 240,695      |   |   | 10.60  | %      |                                                             | 181,647                                                                                                  |   |   | 8.00 | % |   | 227,059 |   |   | 10 | % |
| Tier                1 Capital (to risk weighted assets): |   |   |         |   |   |   |   |                                                             |                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Corporation                                              |   |   | 260,480      |   |   | 11.36  | %      |                                                             | 91,718                                                                                                   |   |   | 4.00 | % |   | 137,577 |   |   | — |   |
| Harleysville                National Bank                |   |   | 222,140      |   |   | 9.78   | %      |                                                             | 90,823                                                                                                   |   |   | 4.00 | % |   | 136,235 |   |   | 6 | % |
| Tier                1 Capital (to average assets):       |   |   |         |   |   |   |   |                                                             |                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Corporation                                              |   |   | 260,480      |   |   | 8.91   | %      |                                                             | 116,950                                                                                                  |   |   | 4.00 | % |   | 146,187 |   |   | — |   |
| Harleysville                National Bank                |   |   | 222,140      |   |   | 7.70   | %      |                                                             | 115,439                                                                                                  |   |   | 4.00 | % |   | 144,299 |   |   | 5 | % |

----

**,**

**Liquidity**

**Other      Information**

----

**Item      3**
**Qualitative      and Quantitative Disclosures About Market Risk**

**Item      4**
**Controls      and Procedures**

**(i)      Management’s Report on Disclosure Controls**

**(ii)      Changes in Internal Controls**

----

**PART      II. OTHER INFORMATION**

**Item      1.**
**Legal      Proceedings**

**Item      2.**
**Unregistered      Sales of Equity Securities and Use of Proceeds **

|                 |   |   | Total                Number of Common Shares Purchased   |   |   | Weighted                Average Price Paid Per Share |   |   | Total                Number of Shares Purchased as Part of Publicly Announced                Plans |   |   | Maximum                Number of Shares that may yet be Purchased under the Plans(1 | )      |
|-------------------------------------|--------|--------|--------------------------------------------------------------------|--------|--------|------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------|--------|
|                                |   |   |                                                               |   |   |                                                 |   |   |                                                                                               |   |   |                                                                                |   |
| July                1-31, 2005      |   |   | 10,500                                                             |   | $      | 21.35                                                |   |   | 10,500                                                                                             |   |   | 1,317,750                                                                           |   |
| August                1-31, 2005    |   |   | 50,010                                                             |   |   | 21.71                                                |   |   | 50,010                                                                                             |   |   | 1,267,740                                                                           |   |
| September                1-30, 2005 |   |   | 72,073                                                             |   |   | 22.27                                                |   |   | 72,073                                                                                             |   |   | 1,195,667                                                                           |   |
| Total                               |   |   | 132,583                                                            |   | $      | 21.72                                                |   |   | 132,583                                                                                            |   |   |                                                                                |   |

| (1)   | On                December 14, 2000, the Board of Directors authorized a program to                purchase                up to 1,311,450 shares (restated for stock dividends and splits),                or 5%,                of its outstanding common stock.                This repurchase plan was completed during the second quarter of 2005.                On                May 12, 2005, the Board of Directors authorized a plan to purchase                up to                1,349,250 shares (restated for five percent stock dividend paid on                September 15, 2005) or 4.9%, of its outstanding common                stock. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Item      3.**
**Defaults      Upon Senior Securities**

**Item      4.**
**Submission      of Matters to a Vote of Security Holders**

**Item      5.**
**Other      Information**

| (a)   | None                to report. |
|-----------------|--------------------------------|

| (b)   | There                were no changes in the manner shareholders may recommend nominees                to the                Registrant’s Board of Directors. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Item      6.**
**Exhibits      **

**Exhibit      No**
**Description      of Exhibits**

| (3.1)    | Harleysville                  National Corporation Amended and Restated Articles of Incorporation.                  (Incorporated by reference to Exhibit 3.1 to the Corporation’s                  Registration Statement No. 333-111709 on Form S-4,                  as filed on                  January 5, 2004.)                                                                                                                                                                                                                                                                                                  |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3.2)    | Harleysville                  National Corporation Amended and Restated By-laws. (Incorporated                  by                  reference to Exhibit 3.1 to the Corporation’s Current Report on Form 8-K,                  filed with the Commission on February 14, 2005.)                                                                                                                                                                                                                                                                                                                                                   |
| (10.1)   | Amendment                  to Employment Agreement by and among David R. Kotok, Millennium                  Bank,                  Cumberland Advisors, Inc., Harleysville National Corporation                  and                  Harleysville National Bank and Trust Company dated October 15,                  2003                  (incorporated by reference to Appendix ”A” to the proxy                  statement/prospectus on the Corporation’s Registration Statement                  No. 333-111709 on Form S-4, as filed on January 5,                  2004.)  |
| (10.2)   | Harleysville                  National Corporation 1993 Stock Incentive Plan. (Incorporated by                  reference                  to Exhibit 4.3 of Registrant’s Registration Statement                  No. 33-69784 on Form S-8, filed with the Commission                  on                  October 1, 1993.)                                                                                                                                                                                                                                                                                  |
| (10.3)   | Harleysville                  National Corporation Stock Bonus Plan. (Incorporated by reference                  to                  Exhibit 99A of Registrant’s Registration Statement No. 333-17813                  on Form S-8, filed with the Commission on December 13,                  1996.)                                                                                                                                                                                                                                                                                                         |
| (10.4)   | Supplemental                  Executive Retirement Plan. (Incorporated by reference to Exhibit 10.3                  of Registrant’s                  Annual Report in Form 10-K for the year ended December 31,                  1997,                  filed with the Commission on March 27, 1998.)                                                                                                                                                                                                                                                                                                        |
| (10.5)   | Walter E.                  Daller, Jr., Chairman and former President and Chief Executive                  Officer’s Employment Agreement. (Incorporated by reference to Registrant’s                  Current Report on Form 8-K, filed with the Commission on                  March 25, 1999.)                                                                                                                                                                                                                                                                                                       |
| (10.6)   | Consulting                  Agreement and General Release dated November 12, 2004 between                  Walter E. Daller, Jr., Harleysville National Corporation                  and                  Harleysville National Bank and Trust Company. (Incorporated by                  reference                  to Registrant’s Current Report on Form 8-K, filed with the Commission                  on November 16, 2004.)                                                                                                                                                                       |
| (10.7)   | Amendment                  to Supplemental Executive Retirement Benefit Agreement dated March                  14,                  2005 by and among Harleysville Management Services, LLC and Walter                  E.                  Daller, Jr. (Incorporated by reference to Registrant’s Current Report on                  Form 8-K, filed with the Commission on March 14, 2005.)                                                                                                                                                                                                                                     |
| (10.8)   | Employment                  Agreement dated October 26, 1998 by and among Harleysville                  National                  Corporation, Harleysville National Bank and Trust Company and                  Demetra M. Takes, President and Chief Executive Officer                  of                  Harleysville National Bank and Trust Company. (Incorporated by                  reference                  to Registrant’s Current Report on Form 8-K, filed with the Commission                  on March 25, 1999.)                                                                           |
| (10.9)   | Amendment                  to Supplemental Executive Retirement Benefit Agreement dated March                  14,                  2005 by and among Harleysville Management Services, LLC and Demetra                  M.                  Takes, President and Chief Executive Officer of Harleysville National                  Bank                  and Trust Company. (Incorporated by reference to Registrant’s Current                  Report on Form 8-K, filed with the Commission on March 14,                  2005.)                                                                                               |
| (10.10)  | Harleysville                  National Corporation 1998 Stock Incentive Plan. (Incorporated by                  reference                  to Registrant’s Registration Statement No. 333-79971 on                  Form S-8, filed with the Commission on June 4,                  1999.)                                                                                                                                                                                                                                                                                                                         |
| (10.11)  | Harleysville                  National Corporation 1998 Independent Directors Stock Option Plan.                  (Incorporated by reference to Registrant’s Registration Statement                  No. 333-79973 on Form S-8, filed with the Commission                  on                  June 4, 1999.)                                                                                                                                                                                                                                                                                                      |
| (10.12)  | Supplemental                  Executive Retirement Benefit Agreement dated February 23,                  2004                  between Michael B. High, Executive Vice President and former                  Chief                  Financial Officer, and Harleysville Management Services, LLC.                  (Incorporated by reference to Registrant’s Quarterly Report on                  Form 10-Q, filed with the Commission on May 10,                  2004.)                                                                                                                               |
| (10.13)  | Employment                  Agreement effective April 1, 2005 between Michael B.                  High,                  Executive Vice President and Chief Operating Officer of the Corporation,                  and Harleysville Management Services, LLC. (Incorporated                  by reference                  to Registrant’s Current Report on Form 8-K, filed with the Commission                  on November 16, 2004.)                                                                                                                                                                 |
| (10.14)  | Amendment                  to Supplemental Executive Retirement Benefit Agreement dated March                  14,                  2005 by and among Harleysville Management Services, LLC and Michael                  B.                  High, Executive Vice President and Chief Operating Officer of the                  Corporation. (Incorporated by reference to Registrant’s Current Report on                  Form 8-K, filed with the Commission on March 14, 2005.)                                                                                                                                                |
| (10.15)  | Employment                  Agreement dated March 9, 2004 between Mikkalya Murray, Executive                  Vice                  President and Harleysville Management Services, LLC. (Incorporated                  by                  reference to Registrant’s Quarterly Report on Form 10-Q, filed with                  the Commission on May 10, 2004.)                                                                                                                                                                                                                                             |
| (10.16)  | Amendment                  to Supplemental Executive Retirement Benefit Agreement dated March                  14,                  2005 by and among Harleysville Management Services, LLC and Mikkalya                  Murray, Executive Vice President. (Incorporated by reference to                  Registrant’s Current Report on Form 8-K, filed with the Commission on                  March 14, 2005.)                                                                                                                                                                                                                |

| (10.17)  | Harleysville                    National Corporation 2004 Omnibus Stock Incentive Plan. (Incorporated                    by                    reference to Exhibit 4 of Registrant’s Registration Statement No.                    333-116183 on Form S-8, filed with the Commission on June 4,                    2004).  |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (10.18)  | Employment                      Agreement dated August 23, 2004 between James F.                      McGowan, Jr., Executive Vice President & Chief Credit Officer and                      Harleysville Management Services, LLC. (Incorporated                      by reference to                      Registrant’s Current Report on Form 8-K, filed with the Commission                      on                      August 25, 2004.)                                                                                                       |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (10.19)  | Supplemental                      Executive Retirement Benefit Agreement dated August 23,                      2004 between                      James F. McGowan, Jr., Executive Vice President& Chief                      Credit Officer, and Harleysville Management Services, LLC.                      (Incorporated by reference to Registrant’s Current Report on                      Form 8-K, filed with the Commission on August 25,                      2004.)                                                                        |
| (10.20)  | Amendment                      to Supplemental Executive Retirement Benefit Agreement dated                      March 14,                      2005 by and among Harleysville Management Services, LLC and                      James F.                      McGowan, Jr., Executive Vice President & Chief Credit Officer.                      (Incorporated by reference to Registrant’s Current Report on Form 8-K,                      filed with the Commission on March 14, 2005.)                                                                                      |
| (10.21)  | Employment                      Agreement dated September 27, 2004 between John Eisele,                      Executive                      Vice President & President of Millennium Wealth Management and Private                      Banking, and Harleysville Management Services, LLC.                      (Incorporated by                      reference to Registrant’s Current Report on Form 8-K, filed with the                      Commission on September 29, 2004.)                                                                           |
| (10.22)  | Supplemental                      Executive Retirement Benefit Agreement dated September 27,                      2004                      between John Eisele, Executive Vice President & President of                      Millennium Wealth Management and Private Banking, and Harleysville                      Management Services, LLC. (Incorporated by reference                      to Registrant’s                      Current Report on Form 8-K, filed with the Commission                      on                      September 29, 2004.)  |
| (10.23)  | Amendment                      to Supplemental Executive Retirement Benefit Agreement dated                      March 14,                      2005 by and among Harleysville Management Services, LLC and                      John Eisele,                      Executive Vice President & President of Millennium Wealth Management                      and Private Banking. (Incorporated by reference to Registrant’s Current                      Report on Form 8-K, filed with the Commission on March 14,                      2005.)                                  |
| (10.24)  | Employment                      Agreement effective January 1, 2005 between Gregg J.                      Wagner,                      President and Chief Executive Officer of the Corporation, and                      Harleysville                      Management Services, LLC. (Incorporated by reference                      to Registrant’s                      Current Report on Form 8-K, filed with the Commission                      on                      November 16, 2004.)                                                            |
| (10.25)  | Amendment                      to Supplemental Executive Retirement Benefit Agreement dated                      March 14,                      2005 by and among Harleysville Management Services, LLC and                      Gregg J.                      Wagner, the current President and Chief Executive Officer of                      the                      Corporation. (Incorporated by reference to Registrant’s Current Report on                      Form 8-K, filed with the Commission on March 14, 2005.)                                                      |
| (10.26)  | Employment                      Agreement dated May 18, 2005, between George S. Rapp, Senior                      Vice                      President and Chief Financial Officer, and Harleysville Management                      Services, LLC. (Incorporated by reference to Registrant’s Current Report                      on Form 8-K, filed with the Commission on May 20, 2005.)                                                                                                                                                                                            |
| (10.27)  | Stock                      Purchase Agreement dated June 30, 2005, between David R. Kotok&                      Associates, Inc., Harleysville National Corporation and Harleysville                      National Bank and Trust Company. (Incorporated by reference                      to                      Registrant’s Current Report on Form 8-K, filed with the Commission on                      July                      1, 2005.)                                                                                                                                 |
| (10.28)  | Amended                      and Restated Declaration of Trust for HNC Statutory Trust III                      by and among                      Wilmington Trust Company, as Institutional Trustee and Delaware                      Trustee,                      Harleysville National Corporation, as Sponsor, and the Administrators                      named therein, dated as of September 28, 2005.                                                                                                                                                                              |
| (10.29)  | Indenture                      between Harleysville National Corporation, as Issuer, and Wilmington                      Trust                      Company, as Trustee, for Fixed/Floating Rate Junior Subordinated                      Debt                      Securities, dated as of September 28, 2005.                                                                                                                                                                                                                                                                             |
| (10.30)  | Guarantee                      Agreement between Harleysville National Corporation and Wilmington                      Trust                      Company, dated as of September 28, 2005.                                                                                                                                                                                                                                                                                                                                                                                                  |
| (11)     | Computation                      of Earnings per Common Share, incorporated by reference to                      Note 6 of the                      Consolidated Financial Statements of this Report on Form                      10-Q.                                                                                                                                                                                                                                                                                                                                                     |
| (31.1)   | Certification                      of the Chief Executive Officer pursuant to Section 302                      of the                      Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                             |
| (31.2)   | Certification                      of the Chief Financial Officer pursuant to Section 302                      of the                      Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                             |
| (32.1)   | Certification                      of the Chief Executive Officer pursuant to 18 U.S.C.                      Section 1350, as adopted pursuant to Section 906                      of the                      Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                               |
| (32.2)   | Certification                      of the Chief Financial Officer pursuant to 18 U.S.C.                      Section 1350, as adopted pursuant to Section 906                      of the                      Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                               |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

----

**SIGNATURES**

**HARLEYSVILLE      NATIONAL CORPORATION**

----

**EXHIBIT      INDEX**

**Exhibit      No **
**Description      of Exhibits**

| (3.1)    | Harleysville                  National Corporation Amended and Restated Articles of Incorporation.                  (Incorporated by reference to Exhibit 3.1 to the Corporation’s                  Registration Statement No. 333-111709 on Form S-4,                  as filed on                  January 5, 2004.)                                                                                                                                                                                                                                                                                                  |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3.2)    | Harleysville                  National Corporation Amended and Restated By-laws. (Incorporated                  by                  reference to Exhibit 3.1 to the Corporation’s Current Report on Form 8-K,                  filed with the Commission on February 14, 2005.)                                                                                                                                                                                                                                                                                                                                                   |
| (10.1)   | Amendment                  to Employment Agreement by and among David R. Kotok, Millennium                  Bank,                  Cumberland Advisors, Inc., Harleysville National Corporation                  and                  Harleysville National Bank and Trust Company dated October 15,                  2003                  (incorporated by reference to Appendix ”A” to the proxy                  statement/prospectus on the Corporation’s Registration Statement                  No. 333-111709 on Form S-4, as filed on January 5,                  2004.)  |
| (10.2)   | Harleysville                  National Corporation 1993 Stock Incentive Plan. (Incorporated by                  reference                  to Exhibit 4.3 of Registrant’s Registration Statement                  No. 33-69784 on Form S-8, filed with the Commission                  on                  October 1, 1993.)                                                                                                                                                                                                                                                                                  |
| (10.3)   | Harleysville                  National Corporation Stock Bonus Plan. (Incorporated by reference                  to                  Exhibit 99A of Registrant’s Registration Statement No. 333-17813                  on Form S-8, filed with the Commission on December 13,                  1996.)                                                                                                                                                                                                                                                                                                         |
| (10.4)   | Supplemental                  Executive Retirement Plan. (Incorporated by reference to Exhibit 10.3                  of Registrant’s                  Annual Report in Form 10-K for the year ended December 31,                  1997,                  filed with the Commission on March 27, 1998.)                                                                                                                                                                                                                                                                                                        |
| (10.5)   | Walter E.                  Daller, Jr., Chairman and former President and Chief Executive                  Officer’s Employment Agreement. (Incorporated by reference to Registrant’s                  Current Report on Form 8-K, filed with the Commission on                  March 25, 1999.)                                                                                                                                                                                                                                                                                                       |
| (10.6)   | Consulting                  Agreement and General Release dated November 12, 2004 between                  Walter E. Daller, Jr., Harleysville National Corporation                  and                  Harleysville National Bank and Trust Company. (Incorporated by                  reference                  to Registrant’s Current Report on Form 8-K, filed with the Commission                  on November 16, 2004.)                                                                                                                                                                       |
| (10.7)   | Amendment                  to Supplemental Executive Retirement Benefit Agreement dated March                  14,                  2005 by and among Harleysville Management Services, LLC and Walter                  E.                  Daller, Jr. (Incorporated by reference to Registrant’s Current Report on                  Form 8-K, filed with the Commission on March 14, 2005.)                                                                                                                                                                                                                                     |
| (10.8)   | Employment                  Agreement dated October 26, 1998 by and among Harleysville                  National                  Corporation, Harleysville National Bank and Trust Company and                  Demetra M. Takes, President and Chief Executive Officer                  of                  Harleysville National Bank and Trust Company. (Incorporated by                  reference                  to Registrant’s Current Report on Form 8-K, filed with the Commission                  on March 25, 1999.)                                                                           |
| (10.9)   | Amendment                  to Supplemental Executive Retirement Benefit Agreement dated March                  14,                  2005 by and among Harleysville Management Services, LLC and Demetra                  M.                  Takes, President and Chief Executive Officer of Harleysville National                  Bank                  and Trust Company. (Incorporated by reference to Registrant’s Current                  Report on Form 8-K, filed with the Commission on March 14,                  2005.)                                                                                               |
| (10.10)  | Harleysville                  National Corporation 1998 Stock Incentive Plan. (Incorporated by                  reference                  to Registrant’s Registration Statement No. 333-79971 on                  Form S-8, filed with the Commission on June 4,                  1999.)                                                                                                                                                                                                                                                                                                                         |
| (10.11)  | Harleysville                  National Corporation 1998 Independent Directors Stock Option Plan.                  (Incorporated by reference to Registrant’s Registration Statement                  No. 333-79973 on Form S-8, filed with the Commission                  on                  June 4, 1999.)                                                                                                                                                                                                                                                                                                      |
| (10.12)  | Supplemental                  Executive Retirement Benefit Agreement dated February 23,                  2004                  between Michael B. High, Executive Vice President and former                  Chief                  Financial Officer, and Harleysville Management Services, LLC.                  (Incorporated by reference to Registrant’s Quarterly Report on                  Form 10-Q, filed with the Commission on May 10,                  2004.)                                                                                                                               |
| (10.13)  | Employment                  Agreement effective April 1, 2005 between Michael B.                  High,                  Executive Vice President and Chief Operating Officer of the Corporation,                  and Harleysville Management Services, LLC. (Incorporated                  by reference                  to Registrant’s Current Report on Form 8-K, filed with the Commission                  on November 16, 2004.)                                                                                                                                                                 |
| (10.14)  | Amendment                  to Supplemental Executive Retirement Benefit Agreement dated March                  14,                  2005 by and among Harleysville Management Services, LLC and Michael                  B.                  High, Executive Vice President and Chief Operating Officer of the                  Corporation. (Incorporated by reference to Registrant’s Current Report on                  Form 8-K, filed with the Commission on March 14, 2005.)                                                                                                                                                |
| (10.15)  | Employment                  Agreement dated March 9, 2004 between Mikkalya Murray, Executive                  Vice                  President and Harleysville Management Services, LLC. (Incorporated                  by                  reference to Registrant’s Quarterly Report on Form 10-Q, filed with                  the Commission on May 10, 2004.)                                                                                                                                                                                                                                             |
| (10.16)  | Amendment                  to Supplemental Executive Retirement Benefit Agreement dated March                  14,                  2005 by and among Harleysville Management Services, LLC and Mikkalya                  Murray, Executive Vice President. (Incorporated by reference to                  Registrant’s Current Report on Form 8-K, filed with the Commission on                  March 14, 2005.)                                                                                                                                                                                                                |
| (10.17)  | Harleysville                  National Corporation 2004 Omnibus Stock Incentive Plan. (Incorporated                  by                  reference to Exhibit 4 of Registrant’s Registration Statement No.                  333-116183 on Form S-8, filed with the Commission on June 4,                  2004).                                                                                                                                                                                                                                                                                                        |

----

| (10.18)  | Employment                  Agreement dated August 23, 2004 between James F.                  McGowan, Jr., Executive Vice President & Chief Credit Officer and                  Harleysville Management Services, LLC. (Incorporated by                  reference to                  Registrant’s Current Report on Form 8-K, filed with the Commission                  on                  August 25, 2004.)                                                                              |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (10.19)  | Supplemental                  Executive Retirement Benefit Agreement dated August 23,                  2004 between                  James F. McGowan, Jr., Executive Vice President & Chief                  Credit Officer, and Harleysville Management Services, LLC.                  (Incorporated by reference to Registrant’s Current Report on                  Form 8-K, filed with the Commission on August 25,                  2004.)                                              |
| (10.20)  | Amendment                  to Supplemental Executive Retirement Benefit Agreement dated March                  14,                  2005 by and among Harleysville Management Services, LLC and James                  F.                  McGowan, Jr., Executive Vice President & Chief Credit Officer.                  (Incorporated by reference to Registrant’s Current Report on Form 8-K,                  filed with the Commission on March 14, 2005.)                                                             |
| (10.21)  | Employment                  Agreement dated September 27, 2004 between John Eisele,                  Executive                  Vice President & President of Millennium Wealth Management and Private                  Banking, and Harleysville Management Services, LLC. (Incorporated                  by                  reference to Registrant’s Current Report on Form 8-K, filed with the                  Commission on September 29, 2004.)                                                  |
| (10.22)  | Supplemental                  Executive Retirement Benefit Agreement dated September 27,                  2004                  between John Eisele, Executive Vice President & President of                  Millennium Wealth Management and Private Banking, and Harleysville                  Management Services, LLC. (Incorporated by reference to                  Registrant’s                  Current Report on Form 8-K, filed with the Commission on                  September 29, 2004.)  |
| (10.23)  | Amendment                  to Supplemental Executive Retirement Benefit Agreement dated March                  14,                  2005 by and among Harleysville Management Services, LLC and John                  Eisele,                  Executive Vice President & President of Millennium Wealth Management                  and Private Banking. (Incorporated by reference to Registrant’s Current                  Report on Form 8-K, filed with the Commission on March 14,                  2005.)             |
| (10.24)  | Employment                  Agreement effective January 1, 2005 between Gregg J.                  Wagner,                  President and Chief Executive Officer of the Corporation, and Harleysville                  Management Services, LLC. (Incorporated by reference to                  Registrant’s                  Current Report on Form 8-K, filed with the Commission on                  November 16, 2004.)                                                                             |
| (10.25)  | Amendment                  to Supplemental Executive Retirement Benefit Agreement dated March                  14,                  2005 by and among Harleysville Management Services, LLC and Gregg                  J.                  Wagner, the current President and Chief Executive Officer of the                  Corporation. (Incorporated by reference to Registrant’s Current Report on                  Form 8-K, filed with the Commission on March 14, 2005.)                                                  |
| (10.26)  | Employment                  Agreement dated May 18, 2005, between George S. Rapp, Senior Vice                  President and Chief Financial Officer, and Harleysville Management                  Services, LLC. (Incorporated by reference to Registrant’s Current Report                  on Form 8-K, filed with the Commission on May 20, 2005.)                                                                                                                                                                            |
| (10.27)  | Stock                  Purchase Agreement dated June 30, 2005, between David R. Kotok&                  Associates, Inc., Harleysville National Corporation and Harleysville                  National Bank and Trust Company. (Incorporated by reference to                  Registrant’s Current Report on Form 8-K, filed with the Commission on July                  1, 2005.)                                                                                                                                          |
| (10.28)  | Amended                  and Restated Declaration of Trust for HNC Statutory Trust III by                  and among                  Wilmington Trust Company, as Institutional Trustee and Delaware                  Trustee,                  Harleysville National Corporation, as Sponsor, and the Administrators                  named therein, dated as of September 28, 2005.                                                                                                                                                 |
| (10.29)  | Indenture                  between Harleysville National Corporation, as Issuer, and Wilmington                  Trust                  Company, as Trustee, for Fixed/Floating Rate Junior Subordinated                  Debt                  Securities, dated as of September 28, 2005.                                                                                                                                                                                                                                            |
| (10.30)  | Guarantee                  Agreement between Harleysville National Corporation and Wilmington                  Trust                  Company, dated as of September 28, 2005.                                                                                                                                                                                                                                                                                                                                                         |
| (11)     | Computation                  of Earnings per Common Share, incorporated by reference to Note                  6 of the                  Consolidated Financial Statements of this Report on Form                  10-Q.                                                                                                                                                                                                                                                                                                                |
| (31.1)   | Certification                  of the Chief Executive Officer pursuant to Section 302 of                  the                  Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                    |
| (31.2)   | Certification                  of the Chief Financial Officer pursuant to Section 302 of                  the                  Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                    |
| (32.1)   | Certification                  of the Chief Executive Officer pursuant to 18 U.S.C.                  Section 1350, as adopted pursuant to Section 906                  of the                  Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                          |
| (32.2)   | Certification                  of the Chief Financial Officer pursuant to 18 U.S.C.                  Section 1350, as adopted pursuant to Section 906                  of the                  Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                          |

----

**Exhibit**
**      31.1**

**CERTIFICATION**

| 2. | Based                on my knowledge, the quarterly report does not contain any untrue                statement of a material fact or omit to state a material fact necessary                to                make the statements made, in light of the circumstances under which                such                statements were made, not misleading with respect to the period covered                by                this quarterly report; |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Based                on my knowledge, the financial statements, and other financial information                included in this quarterly report, fairly present in all material                respects                the financial condition, results of operations and cash flows of                the                registrant as of, and for, the periods presented in this quarterly                report; |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | The                registrant's other certifying officer and I are responsible for                establishing and maintaining disclosure controls and procedures (as                defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal                control over financial reporting (as defined in Exchange Act Rules                13a-15(f) and 15d-15(f)) for the registrant and                have: |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | Designed                such disclosure controls and procedures, or caused such disclosure                controls and procedures to be designed under our supervision, to                ensure                that material information relating to the registrant, including its                consolidated subsidiaries, is made known to us by others within those                entities, particularly during the period in which this report is                being                prepared; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Designed                such internal control over financial reporting, or caused such internal                control over financial reporting to be designed under our supervision,                to                provide reasonable assurance regarding the reliability of financial                reporting and the preparation of financial statements for external                purposes in accordance with generally accepted accounting                principles; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Evaluated                the effectiveness of the registrant's disclosure controls and procedures                and presented in this report our conclusions about the effectiveness                of                the disclosure controls and procedures, as of the end of the period                covered by this report based on such evaluation; and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Disclosed                in this report any change in the registrant’s internal control over                financial reporting that occurred during the registrant’s most recent                fiscal quarter (the registrant’s fourth fiscal quarter in the case of an                annual report) that has materially affected, or is reasonable likely                to                materially affect, the registrant’s internal control over financial                reporting; and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | The                registrant's other certifying officer and I have disclosed, based                on our                most recent evaluation of internal control over financial reporting,                to                the registrant's auditors and the audit committee of the registrant's                board of directors (or persons performing the equivalent                functions): |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | All                significant deficiencies and material weaknesses in the design or                operation of internal control over financial reporting which are                reasonably likely to adversely affect the registrant's ability to                record,                process, summarize and report financial information;                and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Any                fraud, whether or not material, that involves management or other                employees who have a significant role in the registrant's internal                control                over financial reporting. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Exhibit**
**      31.2**

**CERTIFICATION**

| 2. | Based                on my knowledge, the quarterly report does not contain any untrue                statement of a material fact or omit to state a material fact necessary                to                make the statements made, in light of the circumstances under which                such                statements were made, not misleading with respect to the period covered                by                this quarterly report; |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Based                on my knowledge, the financial statements, and other financial information                included in this quarterly report, fairly present in all material                respects                the financial condition, results of operations and cash flows of                the                registrant as of, and for, the periods presented in this quarterly                report; |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | The                registrant's other certifying officer and I are responsible for                establishing and maintaining disclosure controls and procedures (as                defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal                control over financial reporting (as defined in Exchange Act Rules                13a-15(f) and 15d-15(f)) for the registrant and                have: |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | Designed                such disclosure controls and procedures, or caused such disclosure                controls and procedures to be designed under our supervision, to                ensure                that material information relating to the registrant, including its                consolidated subsidiaries, is made known to us by others within those                entities, particularly during the period in which this report is                being                prepared; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Designed                such internal control over financial reporting, or caused such internal                control over financial reporting to be designed under our supervision,                to                provide reasonable assurance regarding the reliability of financial                reporting and the preparation of financial statements for external                purposes in accordance with generally accepted accounting                principles; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Evaluated                the effectiveness of the registrant's disclosure controls and procedures                and presented in this report our conclusions about the effectiveness                of                the disclosure controls and procedures, as of the end of the period                covered by this report based on such evaluation; and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Disclosed                in this report any change in the registrant’s internal control over                financial reporting that occurred during the registrant’s most recent                fiscal quarter (the registrant’s fourth fiscal quarter in the case of an                annual report) that has materially affected, or is reasonable likely                to                materially affect, the registrant’s internal control over financial                reporting; and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | The                registrant's other certifying officer and I have disclosed, based                on our                most recent evaluation of internal control over financial reporting,                to                the registrant's auditors and the audit committee of the registrant's                board of directors (or persons performing the equivalent                functions): |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | All                significant deficiencies and material weaknesses in the design or                operation of internal control over financial reporting which are                reasonably likely to adversely affect the registrant's ability to                record,                process, summarize and report financial information;                and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Any                fraud, whether or not material, that involves management or other                employees who have a significant role in the registrant's internal                control                over financial reporting. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Exhibit**
**      32.1**

**HARLEYSVILLE      NATIONAL CORPORATION**

**CERTIFICATION**

**PRINCIPAL      EXECUTIVE OFFICER**

**PURSUANT      TO 18 U.S.C. SECTION 1350**

----

**Exhibit**
**      32.2**

**HARLEYSVILLE      NATIONAL CORPORATION**

**CERTIFICATION**

**PRINCIPAL      FINANCIAL OFFICER **

**PURSUANT      TO 18 U.S.C. SECTION 1350 **

----