SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20429

                                    FORM 10-Q

(Mark One)

  [ X ]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

         For the quarterly period ended            June 30, 2000
                                          ----------------------------------

                                       OR

  [   ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

         For the transition period from                   to
                                        -----------------    ---------------

                         Commission file number 0-29709

                   HARLEYSVILLE SAVINGS FINANCIAL CORPORATION
                   ------------------------------------------
             (Exact name of registrant as specified in its charter)

        Pennsylvania                                      23-3028464
-------------------------------                      --------------------
(State or other jurisdiction of                        (I.R.S. Employer
 incorporation or organization)                       Identification No.)

                271 Main Street, Harleysville, Pennsylvania 19438
--------------------------------------------------------------------------------
                    (Address of principal executive offices)
                                   (Zip Code)

                                 (215) 256-8828
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)


--------------------------------------------------------------------------------
        (Former name, former address and former fiscal year, if changed
                               since last report)

     Indicate  by check mark  whether the  Registrant  (1) has filed all reports
required to be filed by section 13 or 15 (d) of the  Securities  Exchange Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
Registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes   X    No
                                              -----     -----

APPLICABLE ONLY TO CORPORATE ISSUERS:  Indicate the number of shares outstanding
of each of the issuer's  classes of common stock,  as of the latest  practicable
date:

Common Stock, $.01 Par Value, 2,281,663 as of August 2, 2000


<PAGE>

                   HARLEYSVILLE SAVINGS FINANCIAL CORPORATION
                                 AND SUBSIDIARY

                                      Index
                                      -----


                                                                         PAGE(S)
                                                                         -------

Part I    FINANCIAL INFORMATION
   Item 1.   Financial Statements

             Consolidated Statements of Financial Condition as of
             June 30, 2000 (unaudited) and September 30, 1999                1

             Consolidated Statements of Income for the Three and Nine
             Months Ended June 30, 2000 and 1999 (unaudited)                 2

             Consolidated Statements of Stockholders' Equity for the Nine
             Months Ended June 30, 2000 (unaudited)                          3

             Consolidated Statements of Cash Flows for the Nine Months
             Ended June 30, 2000 and 1999 (unaudited)                        4

             Notes to Consolidated Financial Statements                     5-8

   Item 2.   Management's Discussion and Analysis of Financial
             Condition and Results of Operations                            9-10

   Item 3.   Quantitative and Qualitative Disclosures About Market Risk    10-11

Part II    OTHER INFORMATION

              Item 1. - 6.                                                   12

              Signatures                                                     13


<PAGE>

                   Harleysville Savings Financial Corporation
                 Consolidated Statements of Financial Condition

<TABLE>
<CAPTION>

                                                                         June 30,              September 30,
                                                                           2000                    1999
                                                                   ---------------------   ----------------------
                                                                       (unaudited)

Assets
<S>                                                                         <C>                      <C>
Cash and amounts due from depository institutions                           $ 1,006,640              $ 1,273,990
Interest bearing deposits in other banks                                      3,035,288                2,681,828
                                                                   ---------------------   ----------------------
     Total cash and cash equivalents                                          4,041,928                3,955,818
Investment securities held to maturity (fair value -
        June 30, $66,373,000; September 30, $59,201,000)                     69,003,313               61,014,582
Investment securities available-for-sale at fair value                        3,395,090                3,201,932
Mortgage-backed securities held to maturity (fair value -
        June 30, $111,211,000; September 30, $114,497,000)                  114,319,627              116,778,337
Mortgage-backed securities available-for-sale at fair value                   7,464,391                7,915,919
Loans receivable (net of allowance for loan losses -
        June 30, $2,038,000; September 30, $2,040,000)                      263,433,574              252,259,611
Accrued interest receivable:
  Investments and interest-bearing deposits                                   1,066,551                  863,305
  Mortgage-backed securities                                                    697,503                  685,581
  Loans receivable                                                            1,370,294                1,346,223
Federal Home Loan Bank stock - at cost                                        6,880,400                6,472,900
Office properties and equipment                                               4,511,318                4,677,886
Deferred income taxes                                                           351,550                  304,060
Prepaid expenses and other assets                                             1,207,149                  371,568
                                                                   ---------------------   ----------------------
TOTAL ASSETS                                                              $ 477,742,688            $ 459,847,722
                                                                   =====================   ======================

Liabilities and Stockholders' Equity
Liabilities:
     Deposits                                                             $ 312,469,857            $ 303,660,099
     Advances from Federal Home Loan Bank                                   129,158,065              125,179,928
     Accrued interest payable                                                 1,049,490                  601,813
     Advances from borrowers for taxes and insurance                          3,867,499                  874,167
     Accounts payable and accrued expenses                                      564,542                  569,068
                                                                   ---------------------   ----------------------
Total liabilities                                                           447,109,453              430,885,075
                                                                   ---------------------   ----------------------

Commitments
Stockholders' equity:
     Preferred Stock:  $.01 par value;
       7,500,000 shares authorized; none issued
     Common stock:  $.01 par value; 15,000,000
       shares authorized; issued and outstanding,
       June 30, 2000, 2,279,663; September 30, 1999, 2,256,750                   22,797                   22,568
     Paid-in capital in excess of par                                         7,061,986                6,829,794
     Treasury stock, at cost (44,200 shares)                                   (627,194)
     Retained earnings - partially restricted                                24,368,589               22,211,041
     Accumulated other comprehensive loss                                      (192,943)                (100,756)
                                                                   ---------------------   ----------------------
Total stockholders' equity                                                   30,633,235               28,962,647
                                                                   ---------------------   ----------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                  477,742,688            $ 459,847,722
                                                                   =====================   ======================
</TABLE>

See notes to unaudited consolidated financial statements.

<PAGE>

    Harleysville Savings Financial Corporation
        Consolidated Statements of Income

<TABLE>
<CAPTION>

                                           For the Three Months Ended  For the Nine Months Ended
                                                    June 30,                    June 30,
                                           --------------------------  -------------------------
                                              2000           1999          2000          1999
                                              ----           ----          ----          ----
                                                  (unaudited)                  (unaudited)

INTEREST INCOME:
<S>                                        <C>           <C>           <C>           <C>
  Interest on mortgage loans               $ 3,821,029   $ 3,708,879   $11,132,330   $11,178,290
  Interest on mortgage-backed securities     2,097,961     1,577,262     6,262,549     4,211,867
  Interest on consumer and other loans       1,135,378     1,127,426     3,348,385     3,363,515
  Interest and dividends on investments      1,319,212     1,054,954     3,847,098     3,326,436
                                           -----------   -----------   -----------   -----------
Total interest income                        8,373,580     7,468,521    24,590,362    22,080,108
                                           -----------   -----------   -----------   -----------
Interest Expense:
  Interest on deposits                       3,835,720     3,526,639    11,073,821    10,646,151
  Interest on borrowings                     1,873,866     1,480,498     5,659,723     4,422,647
                                           -----------   -----------   -----------   -----------
Total interest expense                       5,709,586     5,007,137    16,733,544    15,068,798
                                           -----------   -----------   -----------   -----------

Net Interest Income                          2,663,994     2,461,384     7,856,818     7,011,310
Provision for loan losses                         --           5,000          --          12,428
                                           -----------   -----------   -----------   -----------
Net Interest Income after Provision
  for Loan Losses                            2,663,994     2,456,384     7,856,818     6,998,882
                                           -----------   -----------   -----------   -----------
Other Income:
  Other income                                 126,284       107,007       350,089       336,517
                                           -----------   -----------   -----------   -----------
Total other income                             126,284       107,007       350,089       336,517
                                           -----------   -----------   -----------   -----------
Other Expenses:
  Salaries and employee benefits               691,330       602,649     2,023,886     1,772,874
  Occupancy and equipment                      254,132       296,774       750,901       900,434
  Deposit insurance premiums                    15,775        43,094        76,494       129,581
  Other                                        406,027       285,273     1,126,773       860,550
                                           -----------   -----------   -----------   -----------
Total other expenses                         1,367,264     1,227,790     3,978,054     3,663,439
                                           -----------   -----------   -----------   -----------

Income before Income Taxes                   1,423,014     1,335,601     4,228,853     3,671,960

Income tax expense                             455,400       423,000     1,325,800     1,155,000
                                           -----------   -----------   -----------   -----------
Net Income                                 $   967,614   $   912,601   $ 2,903,053   $ 2,516,960
                                           ===========   ===========   ===========   ===========

Basic Earnings Per Share                   $      0.43   $      0.40   $      1.29   $      1.12
                                           ===========   ===========   ===========   ===========
Diluted Earnings Per Share                 $      0.43   $      0.40   $      1.28   $      1.10
                                           ===========   ===========   ===========   ===========

Dividends Per Share                        $      0.11   $      0.09   $      0.33   $      0.27
                                           ===========   ===========   ===========   ===========
</TABLE>

See notes to unaudited consolidated financial statements.

<PAGE>

                   Harleysville Savings Financial Corporation
                       Statements of Stockholders' Equity

<TABLE>
<CAPTION>
                                                            Paid-in                     Retained      Accumulated
                                                            Capital                     Earnings-        Other            Total
                                           Common          in Excess      Treasury      Partially     Comprehensive   Stockholders'
                                           Stock            of Par         Stock        Restricted        Loss           Equity
====================================================================================================================================

<S>                                     <C>             <C>             <C>           <C>             <C>             <C>
Balance at September 30, 1999           $     22,568    $  6,829,794    $       --    $ 22,211,041    $   (100,756)   $ 28,962,647
                                        ------------    ------------    ------------  ------------    ------------    ------------

Net Income                                                                               2,903,053                       2,903,053
Issuance of Common Stock:                        229         232,192                                                       232,421
Dividends - $.11 per share                                                                (745,505)                       (745,505)
Treasury stock purchased                                                    (627,194)                                     (627,194)
Unrealized holding loss on available-
  for-sale securities net of tax                  --              --              --            --         (92,187)        (92,187)
                                        ------------    ------------    ------------  ------------    ------------    ------------

Balance at June 30, 2000                $     22,797       7,061,986    $   (627,194) $ 24,368,589    $   (192,943)   $ 30,633,235
                                        ============    ============    ============  ============    ============    ============
</TABLE>

See notes to unaudited consolidated financial statements.

<PAGE>

                   Harleysville Savings Financial Corporation
                      Consolidated Statements of Cash Flows

<TABLE>
<CAPTION>
                                                                       Nine Months Ended June 30,
                                                                      ----------------------------
                                                                         2000              1999
                                                                         ----              ----
                                                                               (unaudited)

Operating Activities:
<S>                                                                   <C>             <C>
Net Income                                                            $  2,903,053    $  2,516,960
Adjustments to reconcile net income to net cash provided by
    (used in) operating activities:
    Provision for loan losses                                               12,428
    Depreciation                                                           326,240         242,252
    Amortization of deferred loan fees                                    (114,024)       (276,921)
Changes in assets and liabilities which provided (used) cash:

    Increase in deferred income taxes                                      (35,587)        (62,119)
    (Increase) decrease in accounts payable and accrued
      expenses and income taxes payable                                     (4,526)        346,654
    Increase in prepaid expenses and other assets                         (715,966)       (324,965)
    Increase in accrued interest receivable                               (239,239)       (103,496)
    Increase (decrease) in accrued interest payable                        447,677         (10,371)
                                                                      ------------    ------------
Net cash provided by operating activities                                2,567,628       2,340,422
                                                                      ------------    ------------

Investing Activities:
Purchase of investment securities held to maturity                      (9,513,731)    (41,834,406)
Proceeds from maturities of investment securities held to maturity       1,525,000      35,475,406
Purchase of investment securities available for sale                      (201,001)     (2,644,623)
Purchase of FHLB stock                                                    (407,500)       (540,500)
Long-term loans originated or acquired                                 (44,788,531)    (47,676,219)
Purchase of mortgage-backed securities held to maturity                 (7,514,846)    (42,523,785)
Principal collected on long-term loans & mortgage-backed securities     43,937,814      67,672,520
Purchases of premises and equipment                                       (159,672)     (1,003,621)
                                                                      ------------    ------------
Net cash used in investing activities                                  (17,122,467)    (33,075,228)
                                                                      ------------    ------------

Financing Activities:
Net (decrease) increase in demand deposits, NOW accounts and
    savings accounts                                                    (5,463,115)     20,815,811
Net increase (decrease) in certificates of deposit                      14,272,873     (10,160,676)
Cash dividends                                                            (745,505)       (604,806)
Net increase (decrease) in FHLB advances                                 3,978,137         881,442
Purchase of treasury stock                                                (627,194)
Net proceeds from issuance of stock                                        232,421         176,944
Net increase in advances from borrowers for taxes & insurance            2,993,332       3,000,563
                                                                      ------------    ------------
Net cash provided by financing activities                               14,640,949      14,109,278
                                                                      ------------    ------------

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                            86,110     (16,625,528)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                           3,955,818      18,873,926
                                                                      ------------    ------------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                            $  4,041,928    $  2,248,398
                                                                      ============    ============

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
  Cash paid during the period for:
    Income taxes                                                      $  1,311,500    $  1,297,176
    Interest expense                                                    16,285,867      15,079,170
    Noncash transfer from loans to real estate owned                       119,615
</TABLE>

See notes to unaudited consolidated financial statements.

<PAGE>

              Notes to Unaudited Consolidated Financial Statements

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation - The  accompanying  unaudited  financial  statements have
been prepared in accordance with the instructions for Form 10-Q and therefore do
not include  information or footnotes  necessary for a complete  presentation of
financial  condition,  results of operations  and cash flows in conformity  with
generally accepted accounting principles.  However, all adjustments  (consisting
only of normal recurring  adjustments) which, in the opinion of management,  are
necessary for a fair presentation have been included.  The results of operations
for the nine months ended June 30, 2000 are not  necessarily  indicative  of the
results which may be expected for the entire fiscal year.

Comprehensive  Income - The  Bank  adopted  Statement  of  Financial  Accounting
Standards No. 130, Reporting  Comprehensive  Income,  effective October 1, 1998.
                   --------------------------------
The statement requires  disclosure of amounts from transactions and other events
which are  currently  excluded  from the  statement  of income and are  recorded
directly  to  stockholders'  equity.  Comprehensive  income for the three  month
periods ended June 30, 2000 and 1999, was  approximately  $875,000 and $837,000,
respectively.  For the nine  month  periods  ended June 30,  2000 and 1999,  was
approximately $2.81 million and $2.4 million, respectively.

2. INVESTMENT SECURITIES HELD TO MATURITY

A comparison of cost and  approximate  fair value of investment  securities,  by
maturities, is as follows:

<TABLE>
<CAPTION>
                                                                   June 30, 2000
==========================================================================================================
                                                               Gross           Gross
                                             Amortized      Unrealized       Unrealized     Approximate
                                               Cost            Gain            Losses       Fair Value
==========================================================================================================
<S>                                         <C>            <C>             <C>              <C>
U.S. Government agencies
      Due after 2 years through 5 years     $ 13,500,000                   $   (456,000)   $ 13,044,000
      Due after 5 years through 10 years      21,980,038                     (1,447,038)     20,533,000
      Due after 10 years through 15 years     19,411,073   $     54,688        (812,761)     18,653,000
Tax Exempt Obligations
      Due after 10 years through 15 years      1,828,633        (12,633)                      1,816,000
      Due after 15 years                      12,283,569         94,590         (51,159)     12,327,000
                                            ------------   ------------    ------------    ------------

Total Investment Securities                 $ 69,003,313   $    149,278    $ (2,779,591)   $ 66,373,000
                                            ============   ============    ============    ============

<CAPTION>
                                                               September 30, 1999
==========================================================================================================
                                                               Gross           Gross
                                             Amortized      Unrealized       Unrealized     Approximate
                                               Cost            Gain            Losses       Fair Value
==========================================================================================================
<S>                                         <C>            <C>             <C>              <C>
U.S. Government agencies
      Due after 3 years through 5 years     $ 11,500,000                   $   (246,000)   $ 11,254,000
      Due after 5 years through 10 years      25,002,578   $      1,281      (1,113,859)     23,890,000
      Due after 10 years through 15 years     16,389,395         53,218        (491,613)     15,951,000
Tax Exempt Obligations
      Due after 15 years                       8,122,609         84,835        (101,444)      8,106,000
                                            ------------   ------------    ------------    ------------

Total Investment Securities                 $ 61,014,582   $    139,334    $ (1,952,916)   $ 59,201,000
                                            ============   ============    ============    ============
</TABLE>

U.S.  Government  Agencies  include  structured  note  securities  with periodic
interest rate  adjustments  and are called  periodically  by the issuing agency.
These  structured  notes  were  comprised  of  step-up  bonds with par values of
$999,000 at June 30, 2000 and September 30, 1999.

The Bank has the  positive  intent and the ability to hold these  securities  to
maturity.  At June 30, 2000, neither a disposal,  nor conditions that could lead
to a decision not to hold these securities to maturity were reasonably foreseen.

<PAGE>

3.  INVESTMENT SECURITIES AVAILABLE-FOR-SALE

A comparison of cost and approximate  fair value of investment  securities is as
follows:

<TABLE>
<CAPTION>
                                                             June 30, 2000
====================================================================================================
                                                       Gross           Gross
                                     Amortized      Unrealized       Unrealized      Approximate
                                       Cost            Gain            Losses        Fair Value
====================================================================================================
<S>                                <C>            <C>             <C>              <C>

ARM Mutual Funds                    $ 3,443,086     $       -       $   (47,996)     $   3,395,090
                                   -------------   ------------    --------------   ---------------
Total Investment Securities         $ 3,443,086     $       -       $   (47,996)     $   3,395,090
                                   =============   ============    ==============   ===============

<CAPTION>
                                                          September 30, 1999
====================================================================================================
                                                       Gross           Gross
                                     Amortized      Unrealized       Unrealized     Approximate
                                       Cost            Gain            Losses       Fair Value
====================================================================================================
<S>                                <C>             <C>             <C>              <C>

ARM Mutual Funds                    $  3,242,085    $       -       $   (40,153)     $  3,201,932
                                   --------------  ------------    --------------   --------------
Total Investment Securities         $  3,242,085    $       -       $   (40,153)     $  3,201,932
                                   ==============  ============    ==============   ==============
</TABLE>

4.  MORTGAGE-BACKED SECURITIES HELD TO MATURITY

A comparison of cost and approximate fair value of mortgage-backed securities is
as follows:

<TABLE>
<CAPTION>
                                                              June 30, 2000
====================================================================================================
                                                          Gross         Gross
                                        Amortized      Unrealized     Unrealized     Approximate
                                          Cost            Gain          Losses       Fair Value
====================================================================================================
<S>                                   <C>            <C>            <C>             <C>
Collateralized mortgage obligations   $ 48,129,343   $    250,575   $ (1,174,918)   $ 47,205,000
FHLMC pass-through certificates         10,348,940          9,498       (213,438)     10,145,000
FNMA pass-through certificates          21,988,129         18,049       (902,178)     21,104,000
GNMA pass-through certificates          33,853,215           --       (1,096,215)     32,757,000
                                      ------------   ------------   ------------    ------------
Total Mortgage-backed Securities      $114,319,627   $    278,122   $ (3,386,749)   $111,211,000
                                      ============   ============   ============    ============

<CAPTION>
                                                           September 30, 1999
=====================================================================================================
                                                          Gross         Gross
                                        Amortized      Unrealized     Unrealized     Approximate
                                          Cost            Gain          Losses        Fair Value
=====================================================================================================
<S>                                   <C>            <C>            <C>             <C>
Collateralized mortgage obligations   $ 43,559,590   $     96,166   $   (908,756)   $ 42,747,000
FHLMC pass-through certificates          9,136,261         52,811        (94,072)      9,095,000
FNMA pass-through certificates          26,224,652         79,902       (710,554)     25,594,000
GNMA pass-through certificates          37,857,834         22,070       (818,904)     37,061,000
                                      ------------   ------------   ------------    ------------
Total Mortgage-backed Securities      $116,778,337   $    250,949   $ (2,532,286)   $114,497,000
                                      ============   ============   ============    ============
</TABLE>

5.  MORTGAGE-BACKED SECURITIES AVAILABLE-FOR-SALE

A comparison of cost and approximate fair value of mortgage-backed securities is
as follows:

<TABLE>
<CAPTION>
                                                                June 30, 2000
=====================================================================================================
                                                            Gross          Gross
                                          Amortized      Unrealized      Unrealized     Approximate
                                            Cost            Gain           Losses       Fair Value
=====================================================================================================
<S>                                      <C>            <C>             <C>             <C>
FHLMC pass-through certificates          $ 2,913,526    $         -     $  (153,827)    $ 2,759,699
GNMA  pass-through certificates            4,795,207              -         (90,515)      4,704,692
                                         -----------    ------------    ------------    -----------
Total Mortgage-backed Securities         $ 7,708,733    $         -     $  (244,342)    $ 7,464,391
                                         ===========    ============    ============    ===========

<CAPTION>
                                                             September 30, 1999
=====================================================================================================
                                                           Gross          Gross
                                          Amortized      Unrealized     Unrealized    Approximate
                                            Cost           Gain           Losses      Fair Value
=====================================================================================================
<S>                                      <C>            <C>            <C>            <C>
FHLMC pass-through certificates          $ 3,125,446    $         -    $ (101,662)    $ 3,023,784
GNMA  pass-through certificates            4,902,981              -       (10,846)      4,892,135
                                         ------------   ------------   -----------    -----------
Total Mortgage-backed Securities         $ 8,028,427    $         -    $ (112,508)    $ 7,915,919
                                         ============   ============   ===========    ============
</TABLE>

<PAGE>

6.  LOANS RECEIVABLE

Loans receivable consist of the following:

                                            June 30, 2000    September 30, 1999
                                            -------------    ------------------
Residential Mortgages                       $ 205,655,939      $ 195,126,790
Commercial Mortgages                              752,103            766,627
Construction                                    6,350,235          3,885,232
Education                                       3,325,466          1,347,591
Savings Account                                   492,249            535,036
Home Equity                                    46,280,605         49,240,261
Automobile and other                              660,637            660,504
Line of Credit                                  7,506,093          7,175,891
                                            -------------      -------------
Total                                         271,023,327        258,737,932
  Undisbursed portion of loans in process      (3,636,025)        (2,533,342)
  Deferred loan fees                           (1,915,660)        (1,904,979)
  Allowance for loan losses                    (2,038,068)        (2,040,000)
                                            -------------      -------------
Loans receivable - net                      $ 263,433,574      $ 252,259,611
                                            =============       =============

The  total  amount  of loans  being  serviced  for the  benefit  of  others  was
approximately  $6.8 million and $7.6 million at June 30, 2000 and  September 30,
1999, respectively.

The following schedule summarizes the changes in the allowance for loan losses:

                               Nine Months Ended June 30,
                               --------------------------
                                   2000           1999
                                   ----           ----

Balance, beginning of period   $ 2,040,000    $ 2,040,000
  Provision for loan losses           --           12,428
  Amounts charged off, net          (1,932)       (12,428)
                               -----------    -----------
Balance, end of period         $ 2,038,068    $ 2,040,000
                               ===========    ===========

7.  OFFICE PROPERTIES AND EQUIPMENT

Office  properties  and equipment  are  summarized  by major  classification  as
follows:

                                    June 30, 2000    September 30, 1999
                                    -------------    ------------------
Land and buildings                   $ 4,162,515        $ 4,139,005
Furniture, fixtures and equipment      2,873,083          2,740,822
Automobiles                               56,164             52,263
                                     -----------        -----------
Total                                  7,091,762          6,932,090
  Less accumulated depreciation       (2,580,444)        (2,254,204)
                                     -----------        -----------
Net                                  $ 4,511,318        $ 4,677,886
                                     ===========        ===========

8.  DEPOSITS

Deposits are summarized as follows:

                               June 30, 2000    September 30, 1999
                               -------------    ------------------
NOW accounts                   $ 11,737,798        $ 11,811,986
Checking accounts                 5,768,229           5,372,003
Money Market Demand accounts     48,814,740          54,490,438
Passbook and Club accounts        2,597,233           2,706,688
Certificate accounts            243,551,857         229,278,984
                               ------------        ------------
Total deposits                 $312,469,857        $303,660,099
                               ============        ============

The  aggregate  amount of  certificate  accounts in  denominations  of more than
$100,000 at June 30, 2000 amounted to approximately $12.9 million.

<PAGE>

9.  COMMITMENTS

At June 30, 2000, the following commitments were outstanding:

Origination of fixed-rate mortgage loans            $ 2,093,910
Origination of adjustable-rate mortgage loans         3,910,709
Unused line of credit loans                          10,088,358
Loans in process                                      3,636,025
                                                    -----------
Total                                               $19,729,002
                                                    ===========

10.  DIVIDEND

On July 26, 2000,  the Board of Directors  declared a cash  dividend of $.11 per
share payable on August 23, 2000 to the  stockholders' of record at the close of
business on August 9, 2000.

11.  EARNINGS PER SHARE

The  calculations of earnings per share were based on the number of common stock
and common  stock  equivalents  outstanding  for the three and nine months ended
June 30, 2000 and 1999.

The  following  average  shares were used for the  computation  of earnings  per
share:

            For the Three Months Ended      For the Nine Months Ended
                     June 30,                      June 30,
           ----------------------------   ----------------------------
             2000             1999           2000            1999
             ----             ----           ----            ----
Basic      2,243,354        2,246,945      2,257,240       2,241,234
Diluted    2,265,705        2,287,092      2,279,984       2,296,189

<PAGE>

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS

This report contains certain forward-looking statements and information relating
to the  Company  that  are  based  on the  beliefs  of  management  as  well  as
assumptions  made by and  information  currently  available  to  management.  In
addition, in those and other portions of this document,  the words "anticipate,"
"believe,"  "estimate,"  "intend,"  "should"  and  similar  expressions,  or the
negative thereof, as they relate to the Company or the Company's management, are
intended to identify  forward-looking  statements.  Such statements  reflect the
current  views of the  Company  with  respect to  future-looking  events and are
subject to certain risks,  uncertainties and assumptions.  Should one or more of
these risks or uncertainties  materialize or should underlying assumptions prove
incorrect,  actual results may vary materially  from those  described  herein as
anticipated,  believed,  estimated,  expected or intended.  The Company does not
intend to update these forward-looking statements.

Changes in Financial Position for the Nine-Month Period Ended June 30, 2000
---------------------------------------------------------------------------
Total assets at June 30, 2000 were $477.7 million,  an increase of $17.9 million
or 3.9% for the nine-month  period.  The increase was primarily the result of an
increase in loans  receivable  of $11.2  million  and an increase in  investment
securities held to maturity of $8.0 million.

During the nine-month  period ended June 30, 2000,  total deposits  increased by
$8.8 million to $312.5 million.  Advances from borrowers for taxes and insurance
also increased by $3.0 million.  This is a seasonal  increase as the majority of
taxes the Company  escrows for are  disbursed in the month of August.  There was
also an increase in advances from Federal Home Loan Bank of $4.0 million,  which
was used to fund the purchase of  investment  securities  and maintain  adequate
cash for the Company's loan growth. The increase in the accrued interest payable
was a direct result of the  increased  balance in the advances from Federal Home
Loan Bank.

Comparisons of Results of Operations for the Three-Month and Nine-Month  Periods
--------------------------------------------------------------------------------
Ended June 30, 2000 with the Three and Nine-Month Periods Ended June 30, 1999.
------------------------------------------------------------------------------

Net Interest Income
-------------------
The  increase in the net  interest  income for the three and nine month  periods
ended June 30, 2000 when  compared to the same periods in 1999 can be attributed
to the increase in the average  balance of  interest-earning  assets  increasing
from $426.3 and $419.0  million for the three and nine month  periods ended June
30, 1999, respectively,  to $464.5 and $462.2 million for the comparable periods
ended June 30, 2000.

Total interest income was $8.4 million for the three-month period ended June 30,
2000 compared to $7.5 million for the  comparable  period in 1999.  For the nine
month  period  ended June 30,  2000,  total  interest  income was $24.6  million
compared to $22.1 million for the comparable period in 1999. The increase is the
result of the increased average balance of interest-earning assets and increased
average yield for the  interest-earning  assets to 7.21% and 7.09% for the three
and nine-month period ended June 30, 2000, respectively from 7.01% and 7.03% for
the comparable periods in 1999.

Total  interest  expense  increased to $5.7 million for the  three-month  period
ended June 30, 2000 from $5.0 million for the comparable period in 1999. For the
nine-month period ended June 30, 2000, total interest expense increased to $16.7
million from $15.1 million for the comparable  period in 1999.  These  increases
occurred as a result of an increase in the average interest-bearing  liabilities
from $396.6  million and $391.1 for the three and nine month  periods ended June
30, 1999,  respectively,  to $433.5 and $432.1 million for the comparable period
ended June 30, 2000.

<PAGE>

Other Income
------------

Other income  increased to $126,000  for the  three-month  period ended June 30,
2000 from $107,000 for the comparable  period in 1999. For the nine-month period
ended June 30, 2000,  other income  increased to $350,000  from $337,000 for the
comparable  period in 1999. The three-month and nine month increase is due to an
increase in the fee generating services offered by the Company.

Other Expenses
--------------

During the quarter ended June 30, 2000, other expenses  increased by $140,000 or
11.4% to $1.4  million  when  compared to the same period in 1999.  For the nine
month period ended June 30, 2000,  other expenses  increased by $315,000 or 8.6%
compared to the comparable period in 1999.  Management believes these are normal
increases in the cost of operations  after  considering the effects of inflation
and the impact of the growth in the assets of the Company  when  compared to the
same periods in 1999. The annualized ratio of expenses to average assets for the
three and nine month periods ended June 30, 2000 was 1.13%.

Income Taxes
------------

The Company  made  provisions  for income taxes of $455,000 and $1.3 million for
the three and nine-month periods ended June 30, 2000, respectively,  compared to
$423,000 and $1.2 million for the comparable  periods in 1999.  These provisions
are based on the levels of taxable income.

Liquidity and Capital Resources
-------------------------------

The  Company's  net  income for the  quarter  ended  June 30,  2000 of  $968,000
increased  stockholder's  equity to $30.6 million or 6.4% of total assets.  This
amount  is  well  in  excess  of  the  Company's  minimum   regulatory   capital
requirements as illustrated below:

                                                    (in thousands)
                                            Leveraged             Risk-based
                                         ---------------      -----------------
   Actual regulatory capital             $ 30,794   6.4%      $ 32,832   15.5%
   Minimum required regulatory capital     19,110   4.0%        16,946    8.0%
                                         ---------  ----      --------   -----
   Excess capital                        $ 11,684   2.4%      $ 15,886    7.5%

The liquidity of the Company's operations, measured by the ratio of the cash and
securities balances to total assets,  equaled 41.5% at June 30, 2000 compared to
42.0% at September 30, 1999.

As of June 30, 2000,  the Company had $19.7 million in  commitments to fund loan
originations,  disburse loans in process and meet other obligations.  Management
anticipates  that the majority of these  commitments  will be funded  within the
next six months by means of normal cash flows and net new deposits. In addition,
the amount of  certificate  accounts which are scheduled to mature during the 12
months  ending  June  30,  2001  is  $170  million.  Management  expects  that a
substantial  portion of these  maturing  deposits will remain as accounts in the
Company.

Quantitative and Qualitative Disclosures About Market Risk
----------------------------------------------------------

The Company has instituted  programs designed to decrease the sensitivity of its
earnings to material and prolonged  increases in interest  rates.  The principal
determinant  of the exposure of the Company's  earnings to interest rate risk is
the timing  difference  between  the  repricing  or  maturity  of the  Company's
interest-earning  assets and the  repricing or maturity of its  interest-bearing
liabilities.  If the  maturities of such assets and  liabilities  were perfectly
matched,  and if the  interest  rates borne by its assets and  liabilities  were
equally  flexible  and moved  concurrently,  neither  of which is the case,  the
impact on net interest  income of rapid increases or decreases in interest rates
would be minimized.  The Company's asset and liability  management policies seek
to increase the interest rate sensitivity by shortening the repricing  intervals
and the maturities of the Company's interest-earning assets. Although management
of the Company believes that the steps taken have reduced the Company's  overall
vulnerability to increases in interest rates, the Company remains  vulnerable to
material and prolonged  increases in interest  rates during periods in which its
interest rate sensitive liabilities exceed its interest rate sensitive assets.

<PAGE>

The authority and  responsibility  for interest rate management is vested in the
Company's Board of Directors.  The Chief Executive Officer  implements the Board
of Directors'  policies  during the day-to-day  operations of the Company.  Each
month,  the Chief  Executive  Officer  presents  the Board of  Directors  with a
report,  which  outlines the  Company's  asset and liability  "gap"  position in
various  time  periods.  The "gap" is the  difference  between  interest-earning
assets and  interest-bearing  liabilities  which  mature or reprice over a given
time period.  He also meets weekly with the Company's  other senior  officers to
review and establish policies and strategies  designed to regulate the Company's
flow of funds and  coordinate the sources,  uses and pricing of such funds.  The
first priority in structuring  and pricing the Company's  assets and liabilities
is to maintain an acceptable  interest rate spread while reducing the effects of
changes in interest rates and maintaining the quality of the Company's assets.

The  following  table  summarizes  the  amount of  interest-earning  assets  and
interest-bearing liabilities outstanding as of June 30, 2000, which are expected
to mature, prepay or reprice in each of the future time periods shown. Except as
stated below, the amounts of assets or liabilities shown which mature or reprice
during a particular  period were  determined in accordance  with the contractual
terms  of the  asset or  liability.  Adjustable  and  floating-rate  assets  are
included  in the period in which  interest  rates are next  scheduled  to adjust
rather  than in the  period  in which  they are due,  and  fixed-rate  loans and
mortgage-backed  securities  are  included  in the  periods  in  which  they are
anticipated to be repaid.

The following table does not necessarily indicate the impact of general interest
rate  movements  on  Harleysville  Savings'  net  interest  income  because  the
repricing of certain  categories of assets and liabilities is discretionary  and
is subject to competitive and other pressures.  As a result,  certain assets and
liabilities indicated as repricing within a stated period may in fact reprice at
different rate levels.

<TABLE>
<CAPTION>
                                                  1 Year        1 to 3       3 to 5        Over 5
                                                  or less       Years        Years         Years        Total
                                                 ---------    ---------    ---------     ---------    ---------
Interest-earning assets
<S>                                              <C>          <C>          <C>           <C>          <C>
Mortgage loans                                   $  44,369    $  31,755    $  24,645     $ 105,448    $ 206,217
Mortgage-backed securities                          44,445       18,708       11,951        47,012      122,116
Consumer and other loans                            26,833       16,873        9,600         6,350       59,656
Investment securities and other investments         14,288        4,500        9,000        55,532       83,320
                                                 ---------    ---------    ---------     ---------    ---------

Total interest-earning assets                      129,935       71,836       55,196       214,342      471,309
                                                 ---------    ---------    ---------     ---------    ---------

Interest-bearing liabilities
   Passbook and Club accounts                         --           --           --           2,597        2,597
   NOW accounts                                       --           --           --          17,506       17,506
   Money Market Deposit accounts                      --           --           --          27,410       27,410
   Choice Savings                                    5,351         --           --          16,054       21,405
   Certificate accounts                            169,657       66,843        7,052          --        243,552
   Borrowed money                                   49,709       52,369       18,581         8,499      129,158
                                                 ---------    ---------    ---------     ---------    ---------

Total interest-bearing liabilities                 224,717      119,212       25,633        72,066      441,628
                                                 ---------    ---------    ---------     ---------    ---------

Repricing GAP during the period                  $ (94,782)   $ (47,376)   $  29,563     $ 142,276    $  29,681
                                                 =========    =========    =========     =========    =========

Cumulative GAP                                   $ (94,782)   $(142,158)   $(112,595)    $  29,681
                                                 =========    =========     =========    =========

Ratio of GAP during the period to total assets      -20.10%      -10.04%        6.27%        30.17%
                                                 =========    =========    =========     =========

Ratio of cumulative GAP to total assets             -20.10%      -30.14%      -23.87%         6.29%
                                                 =========    =========    =========     =========
</TABLE>

<PAGE>

Part II  OTHER INFORMATION

             Item 1-5.   Not applicable.
                         ---------------

             Item 6.     Exhibits and Reports on Form 8-K
                         --------------------------------

                         None

<PAGE>

                                   Signatures

Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the Bank
has duly  caused  this  report  to be signed  on its  behalf by the  undersigned
thereunto duly authorized.

                                HARLEYSVILLE SAVINGS FINANCIAL CORPORATION


Date:   August 3, 2000          By:  /s/ Edward J. Molnar
                                     -----------------------------------------
                                     Edward J. Molnar
                                     President and Chief Executive Officer

Date:   August 3, 2000          By:  /s/ Brendan J. McGill
                                     -----------------------------------------
                                     Brendan J. McGill
                                     Senior Vice President
                                     Treasurer and Chief Financial Officer