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 December 31, 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, 2,287,301 as of February 9, 2001


<PAGE>

                                      Index

<TABLE>
<CAPTION>
                                                                                                            PAGE(S)
                                                                                                            -------
Part I    FINANCIAL INFORMATION
<S>                                                                                                           <C>
              Item 1.   Financial Statements

                        Consolidated Statements of Financial Condition as of
                        December 31, 2000 (unaudited) and September 30, 2000                                   1

                        Consolidated Statements of Income for the Three
                        Months Ended December 31, 2000 and 1999 (unaudited)                                    2

                        Consolidated Statements of Stockholders' Equity for the Three
                        Months Ended December 31, 2000 (unaudited)                                             3

                        Consolidated Statements of Cash Flows for the Three Months
                        Ended December 31, 2000 and 1999 (unaudited)                                           4

                        Notes to (unaudited) 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

</TABLE>

<PAGE>

                   Harleysville Savings Financial Corporation
                 Consolidated Statements of Financial Condition

<TABLE>
<CAPTION>
                                                                                         December 31,            September 30,
                                                                                             2000                    2000
                                                                                     ---------------------   ----------------------
                                                                                         (unaudited)

Assets
<S>                                                                                           <C>                      <C>
Cash and amounts due from depository institutions                                             $ 1,126,808              $ 1,224,634
Interest bearing deposits in other banks                                                        5,110,530                2,855,568
                                                                                     ---------------------   ----------------------
     Total cash and cash equivalents                                                            6,237,338                4,080,202
Investment securities held to maturity (fair value -
        December 31, $73,751,000; September 30, $69,463,000)                                   73,591,200               71,280,841
Investment securities available-for-sale at fair value                                          3,723,991                3,309,736
Mortgage-backed securities held to maturity (fair value -
        December 31, $132,641,000; September 30, $114,182,000)                                133,038,061              116,303,730
Mortgage-backed securities available-for-sale at fair value                                     7,488,573                7,440,453
Loans receivable (net of allowance for loan losses -
        December 31, $2,038,131; September 30, $2,038,131)                                    264,502,419              262,774,378
Accrued interest receivable                                                                     3,371,793                3,246,714
Federal Home Loan Bank stock - at cost                                                          8,268,400                7,365,200
Office properties and equipment                                                                 4,463,390                4,449,921
Deferred income taxes                                                                             264,444                  306,761
Prepaid expenses and other assets                                                               7,596,838                7,995,955
                                                                                     ---------------------   ----------------------
TOTAL ASSETS                                                                                $ 512,546,447            $ 488,553,891
                                                                                     =====================   ======================

Liabilities and Stockholders' Equity
Liabilities:

     Deposits                                                                               $ 312,835,076            $ 309,835,810
     Advances from Federal Home Loan Bank                                                     163,797,717              145,134,283
     Accrued interest payable                                                                   1,130,205                  824,672
     Advances from borrowers for taxes and insurance                                            2,253,169                  719,591
     Accounts payable and accrued expenses                                                        568,911                  641,148
                                                                                     ---------------------   ----------------------
Total liabilities                                                                             480,585,078              457,155,504
                                                                                     ---------------------   ----------------------

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,
       December 31, 2000, 2,285,801; September 30, 2000, 2,285,051                                 22,858                   22,851
     Paid-in capital in excess of par                                                           7,126,636                7,119,387
     Treasury stock, at cost (66,659 shares and 49,900 respectively)                             (945,460)                (714,163)
     Retained earnings - partially restricted                                                  25,708,902               25,076,313
     Accumulated other comprehensive gain (loss)                                                   48,433                 (106,001)
                                                                                     ---------------------   ----------------------
Total stockholders' equity                                                                     31,961,369               31,398,387
                                                                                     ---------------------   ----------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                  $ 512,546,447            $ 488,553,891
                                                                                     =====================   ======================
</TABLE>

See notes to unaudited consolidated financial statements.

                                     Page 1
<PAGE>

    Harleysville Savings Financial Corporation
        Consolidated Statements of Income

<TABLE>
<CAPTION>
                                                          For the Three Months Ended
                                                                 December 31,
                                                       ----------------------------------
                                                           2000                  1999
                                                           ----                  ----
                                                                 (unaudited)

INTEREST INCOME:
<S>                                                    <C>                   <C>
  Interest on mortgage loans                           $ 4,038,391           $ 3,645,346
  Interest on mortgage-backed securities                 2,353,786             2,062,594
  Interest on consumer and other loans                   1,087,018             1,104,063
  Interest and dividends on investments                  1,419,582             1,256,799
                                                        ----------           -----------
Total interest income                                    8,898,777             8,068,802
                                                        ----------           -----------

Interest Expense:
  Interest on deposits                                   4,112,080             3,610,825
  Interest on borrowings                                 2,428,705             1,885,437
                                                        ----------           -----------
Total interest expense                                   6,540,785             5,496,262
                                                        ----------           -----------
Net Interest Income                                      2,357,992             2,572,540
Provision for loan losses                                       -                     -
                                                        ----------           -----------

Net Interest Income after Provision
  for Loan Losses                                        2,357,992             2,572,540
                                                        ----------           -----------

Other Income:

  Other income                                             224,108               102,470
                                                        ----------           -----------
Total other income                                         224,108               102,470
                                                        ----------           -----------

Other Expenses:
  Salaries and employee benefits                           707,287               648,245
  Occupancy and equipment                                  262,604               250,231
  Deposit insurance premiums                                15,772                44,705
  Other                                                    376,213               352,789
                                                        ----------           -----------
 Total other expenses                                    1,361,876             1,295,970
                                                        ----------           -----------

Income before Income Taxes                               1,220,224             1,379,040

Income tax expense                                         319,800               431,000
                                                        ----------           -----------

Net Income                                              $  900,424           $   948,040
                                                        ==========           ===========


Basic Earnings Per Share                                    $ 0.40                $ 0.42
                                                        ==========           ===========

Diluted Earnings Per Share                                  $ 0.40                $ 0.42
                                                        ==========           ===========

Dividends Per Share                                         $ 0.12                $ 0.11
                                                        ==========           ===========
</TABLE>

See notes to unaudited consolidated financial statements.

                                     Page 2
<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)/Gain        Equity
------------------------------------------------------------------------------------------------------------------  ---------------
<S>                                            <C>         <C>           <C>           <C>             <C>            <C>
Balance at October 1, 2000                     $ 22,851    $ 7,119,387   $ (714,163)   $ 25,076,313    $ (106,001)    $ 31,398,387
                                            ============ ============== ============  ============== =============  ===============

 Net Income (unaudited)                                                                     900,424                        900,424
 Issuance of Common Stock: (unaudited)                7          7,249                                                       7,256
 Dividends - $.12 per share (unaudited)                                                    (267,835)                      (267,835)
 Treasury stock purchased
  (66,659 shares) (unaudited)                                              (231,297)                                      (231,297)
 Unrealized holding gain on available-for-
   sale securities net of tax (unaudited)                                                                 154,434          154,434
                                            ------------ -------------- ------------  -------------- -------------  ---------------
Balance at December 31, 2000 (unaudited)       $ 22,858    $ 7,126,636   $ (945,460)   $ 25,708,902      $ 48,433     $ 31,961,369
                                            ============ ============== ============  ============== =============  ===============
</TABLE>

See notes to unaudited consolidated financial statements.


                                     Page 3
<PAGE>

                   Harleysville Savings Financial Corporation
                      Consolidated Statements of Cash Flows

<TABLE>
<CAPTION>
                                                                                    Three Months Ended December 31,
                                                                                      2000                  1999
                                                                                      ----                  ----
Operating Activities:                                                                          (unaudited)
<S>                                                                                 <C>                  <C>
Net Income                                                                          $ 900,424            $ 948,040
Adjustments to reconcile net income to net cash provided by
    (used by) operating activities:
    Depreciation                                                                      116,559              107,089
    Decrease (increase) in deferred income taxes                                       49,369              (83,038)
    Amortization of deferred loan fees                                                (47,182)             (37,990)
Changes in assets and liabilities which provided (used) cash:
    (Decrease) increase in accounts payable and accrued
      expenses and income taxes payable                                               (72,237)             291,362
    Decrease in prepaid expenses and other assets                                     399,117              134,143
    (Increase) decrease in accrued interest receivable                               (125,079)               7,339
    Increase in accrued interest payable                                              305,533              149,109
                                                                                  -----------          -----------
Net cash provided by operating activities                                           1,526,504            1,516,054
                                                                                  -----------          -----------

Investing Activities:
Purchase of investment securities held to maturity                                 (2,310,359)          (3,435,032)
Proceeds from maturities of investment securities held to maturity                                         995,829
Purchase of investment securities available for sale                                 (404,230)          (1,879,410)
Purchase of FHLB stock                                                               (903,200)            (407,500)
Long-term loans originated or acquired                                            (16,692,876)          (9,475,757)
Purchase of mortgage-backed securities held to maturity                           (20,206,247)          (3,589,499)
Principal collected on long-term loans & mortgage-backed securities                18,573,210           13,076,125
Purchases of premises and equipment                                                  (130,068)             (20,150)
                                                                                  ------------         ------------
Net cash used in investing activities                                             (22,073,770)          (4,735,394)
                                                                                  ------------         ------------

Financing Activities:
Net increase (decrease) increase in demand deposits, NOW accounts
    and savings accounts                                                            3,473,707           (4,417,877)
Net (decrease) increase in certificates of deposit                                   (474,441)           4,749,482
Cash dividends                                                                       (267,835)            (248,683)
Net increase in FHLB advances                                                      18,663,434            7,955,541
Purchase of treasury stock                                                           (231,297)                   -
Net proceeds from issuance of stock                                                     7,256               53,935
Net increase in advances from borrowers for taxes & insurance                       1,533,578            1,241,581
                                                                                  ------------         ------------
Net cash provided by financing activities                                          22,704,402            9,333,979
                                                                                  ------------         ------------
INCREASE IN CASH AND CASH EQUIVALENTS                                               2,157,136            6,114,639

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                                      4,080,202            3,955,818
                                                                                  ------------         ------------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                                        $ 6,237,338          $10,070,457
                                                                                  ============         ===========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
  Cash paid during the period for:
    Income taxes                                                                  $     3,028          $     6,500
    Interest expense                                                                6,235,252            5,347,153
</TABLE>

See notes to unaudited consolidated financial statements.

                                     Page 4
<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 three months ended December 31, 2000 are not  necessarily  indicative of
the results which may be expected for the entire fiscal year.

Comprehensive  Income -  Comprehensive  income for the three month periods ended
December  31,  2000  and  1999,  was  approximately   $1,054,858  and  $867,000,
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>
                                                                                December 31, 2000
-----------------------------------------------------------------------------------------------------------------------------------
                                                                           Gross                 Gross
                                                  Amortized             Unrealized            Unrealized           Approximate
                                                    Cost                   Gain                 Losses              Fair Value
-----------------------------------------------------------------------------------------------------------------------------------
U.S. Government agencies
<S>                                                <C>                       <C>                 <C>                  <C>
      Due after 2 years through 5 years             $ 16,500,000                                  $ (107,000)         $ 16,393,000
      Due after 5 years through 10 years              21,981,696             $ 108,020              (348,716)           21,741,000
      Due after 10 years through 15 years             17,426,118                67,044              (211,162)           17,282,000
Tax Exempt Obligations
      Due after 5 years through 10 years                 828,750                10,250                                     839,000
      Due after 10 years through 15 years             15,340,267               532,565                (4,832)           15,868,000
      Due after 15 years                               1,514,369                     -               113,631             1,628,000
                                             --------------------    ------------------    ------------------   -------------------
Total Investment Securities                         $ 73,591,200             $ 717,879            $ (558,079)         $ 73,751,000
                                             ====================    ==================    ==================   ===================
<CAPTION>
                                                                                September 30, 2000
-----------------------------------------------------------------------------------------------------------------------------------
                                                                           Gross                 Gross
                                                  Amortized             Unrealized            Unrealized           Approximate
                                                    Cost                   Gain                 Losses              Fair Value
-----------------------------------------------------------------------------------------------------------------------------------
U.S. Government agencies
<S>                                                <C>                       <C>                 <C>                  <C>
      Due after 3 years through 5 years             $ 16,500,000                                  $ (386,000)         $ 16,114,000
      Due after 5 years through 10 years              21,980,911              $ 38,090              (971,001)           21,048,000
      Due after 10 years through 15 years             17,418,624                43,263              (703,887)           16,758,000
Tax Exempt Obligations
      Due after 15 years                              15,381,306               232,610               (70,916)           15,543,000
                                             --------------------    ------------------    ------------------   -------------------
Total Investment Securities                         $ 71,280,841             $ 313,963          $ (2,131,804)         $ 69,463,000
                                             ====================    ==================    ==================   ===================
</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 December 31, 2000 and September 30, 2000.

The Bank has the  positive  intent and the ability to hold these  securities  to
maturity.  At December 31, 2000,  neither a disposal,  nor conditions that could
lead to a decision  not to hold these  securities  to maturity  were  reasonably
foreseen.

                                     Page 5
<PAGE>

3.  INVESTMENT SECURITIES AVAILABLE-FOR-SALE

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

<TABLE>
<CAPTION>

                                                                          December 31, 2000
----------------------------------------------------------------------------------------------------------------------------
                                                                     Gross                Gross
                                             Amortized            Unrealized            Unrealized           Approximate
                                               Cost                  Gain                 Losses             Fair Value
----------------------------------------------------------------------------------------------------------------------------
<S>                                        <C>                       <C>                <C>                  <C>
Mutual Funds                               $ 3,758,383               $ -                $ (34,392)           $ 3,723,991
                                         ------------------    ------------------    -----------------    ------------------
Total Investment Securities                $ 3,758,383               $ -                $ (34,392)           $ 3,723,991
                                         ==================    ==================    =================    ==================
<CAPTION>
                                                                         September 30, 2000
----------------------------------------------------------------------------------------------------------------------------
                                                                     Gross                Gross
                                             Amortized            Unrealized            Unrealized           Approximate
                                               Cost                  Gain                 Losses             Fair Value
----------------------------------------------------------------------------------------------------------------------------
<S>                                        <C>                       <C>                <C>                  <C>
ARM Mutual Funds                           $ 3,354,154               $ -                $ (44,418)           $ 3,309,736
                                         ------------------    ------------------    -----------------    ------------------
Total Investment Securities                $ 3,354,154               $ -                $ (44,418)           $ 3,309,736
                                         ==================    ==================    =================    ==================
</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>
                                                                        December 31, 2000
----------------------------------------------------------------------------------------------------------------------------
                                                                     Gross                Gross
                                             Amortized            Unrealized            Unrealized           Approximate
                                               Cost                  Gain                 Losses             Fair Value
----------------------------------------------------------------------------------------------------------------------------
<S>                                            <C>                     <C>                 <C>                  <C>
Collateralized mortgage obligations            $47,388,860             $ 141,866           $ (510,726)          $47,020,000
FHLMC pass-through certificates                 11,298,100               104,457              (15,557)           11,387,000
FNMA pass-through certificates                  23,224,121                65,770             (203,891)           23,086,000
GNMA pass-through certificates                  51,126,980               231,995             (210,975)           51,148,000
                                         ------------------    ------------------    -----------------    ------------------
Total Mortgage-backed Securities              $133,038,061             $ 544,088           $ (941,149)         $132,641,000
                                         ==================    ==================    =================    ==================
<CAPTION>
                                                                         September 30, 2000
----------------------------------------------------------------------------------------------------------------------------
                                                                     Gross                Gross
                                             Amortized            Unrealized            Unrealized           Approximate
                                               Cost                  Gain                 Losses             Fair Value
----------------------------------------------------------------------------------------------------------------------------
<S>                                            <C>                     <C>                 <C>                  <C>
Collateralized mortgage obligations            $52,482,502             $ 138,918           $ (996,420)          $51,625,000
FHLMC pass-through certificates                  9,935,756                26,355             (110,111)            9,852,000
FNMA pass-through certificates                  21,402,545                33,968             (565,513)           20,871,000
GNMA pass-through certificates                  32,482,927                 1,654             (650,581)           31,834,000
                                         ------------------    ------------------    -----------------    ------------------
Total Mortgage-backed Securities              $116,303,730             $ 200,895          $(2,322,625)         $114,182,000
                                         ==================    ==================    =================    ==================
</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>
                                                                         December 31, 2000
----------------------------------------------------------------------------------------------------------------------------
                                                                     Gross                Gross
                                             Amortized            Unrealized            Unrealized           Approximate
                                               Cost                  Gain                 Losses             Fair Value
----------------------------------------------------------------------------------------------------------------------------
<S>                                         <C>                     <C>                   <C>                <C>
FHLMC pass-through certificates             $ 2,774,113             $  18,296             $  -               $ 2,755,817
GNMA  pass-through certificates               4,643,923                88,833                                  4,732,756
                                         ------------------    ------------------    -----------------    ------------------
Total Mortgage-backed Securities            $ 7,418,036             $  88,833             $  -               $ 7,488,573
                                         ==================    ==================    =================    ==================
<CAPTION>
                                                                        September 30, 2000
----------------------------------------------------------------------------------------------------------------------------
                                                                     Gross                Gross
                                             Amortized            Unrealized            Unrealized           Approximate
                                               Cost                  Gain                 Losses             Fair Value
----------------------------------------------------------------------------------------------------------------------------
<S>                                            <C>                   <C>                <C>                  <C>
FHLMC pass-through certificates                $ 2,835,053           $  -               $  (93,580)          $ 2,741,473
GNMA  pass-through certificates                  4,721,589                                 (22,609)            4,698,980
                                         ------------------    ------------------    ---------------------------------------
Total Mortgage-backed Securities               $ 7,556,642           $  -               $ (116,189)          $ 7,440,453
                                         ==================    ==================    =================    ==================
</TABLE>


                                     Page 6
<PAGE>

6.  LOANS RECEIVABLE

Loans receivable consist of the following:

<TABLE>
<CAPTION>
                                             December 31, 2000          September 30, 2000
                                             -----------------          ------------------
<S>                                            <C>                        <C>
Residential Mortgages                          $ 209,606,386              $ 207,928,146
Commercial Mortgages                                 801,743                    807,156
Construction                                       8,564,104                  6,579,523
Education                                          1,667,201                  1,414,011
Savings Account                                      590,430                    618,884
Home Equity                                       43,902,042                 44,727,366
Automobile and other                                 565,003                    639,693
Line of Credit                                    8,293,288                   7,888,612
                                               --------------             --------------
Total                                            273,990,197                270,603,391
  Undisbursed portion of loans in process         (5,459,238)                (3,844,612)
  Deferred loan fees                              (1,990,409)                (1,946,270)
  Allowance for loan losses                       (2,038,131)                (2,038,131)
                                               --------------             --------------
Loans receivable - net                         $ 264,502,419              $ 262,774,378
                                               ==============             ==============
</TABLE>

The  total  amount  of loans  being  serviced  for the  benefit  of  others  was
approximately  $6.3 million and $6.6 million at December 31, 2000 and  September
30, 2000, respectively.

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

<TABLE>
<CAPTION>
                                   Three Months Ended December 31,
                                   -------------------------------
                                        2000              1999
                                        ----              ----
<S>                                 <C>               <C>
Balance, beginning of period        $ 2,038,131       $ 2,040,000
  Provision for loan losses                  -                 -
  Amounts charged off, net                   -                 -
                                             -                 -
Balance, end of period              $ 2,038,131       $ 2,040,000
                                    ============      ===========
</TABLE>


7.  OFFICE PROPERTIES AND EQUIPMENT

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

<TABLE>
<CAPTION>
                                        December 31, 2000   September 30, 2000
                                        -----------------   ------------------
<S>                                       <C>                 <C>
Land and buildings                        $ 4,152,207         $ 4,176,671
Construction in progress                      109,192                  -
Furniture, fixtures and equipment           2,943,401           2,898,061
Automobiles                                    56,164              56,164
                                          -----------         -----------
Total                                       7,260,964           7,130,896
  Less accumulated depreciation            (2,797,574)         (2,680,975)
                                          ------------        -----------
Net                                       $ 4,463,390         $ 4,449,921
                                          ============        ===========
</TABLE>

8.  DEPOSITS

Deposits are summarized as follows:

<TABLE>
<CAPTION>
                                         December 31, 2000    September 30, 2000
                                         -----------------    ------------------
<S>                                        <C>                   <C>
NOW accounts                               $ 11,417,301          $ 10,748,610
Checking accounts                             6,689,743             5,780,503
Money Market Demand accounts                 52,081,574            49,928,562
Passbook and Club accounts                    2,138,641             2,395,877
Certificate accounts                        240,507,817           240,982,258
                                           ------------          ------------
Total deposits                             $312,835,076          $309,835,810
                                           ============          ============
</TABLE>

The  aggregate  amount of  certificate  accounts in  denominations  of more than
$100,000 at December 31, 2000 amounted to approximately $14.7 million.

                                     Page 7
<PAGE>

9.  COMMITMENTS

At December 31, 2000, the following commitments were outstanding:

Origination of fixed-rate mortgage loans           $ 1,076,936
Origination of adjustable-rate mortgage loans        1,535,740
Unused line of credit loans                          3,469,168
Loans in process                                     5,459,238
                                                   -----------
Total                                              $11,541,082
                                                   ===========

10.  DIVIDEND

On January 24, 2001, the Board of Directors declared a cash dividend of $.12 per
share payable on February 21, 2001 to the  stockholders'  of record at the close
of business on February 7, 2001.

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 months ended December 31,
2000 and 1999.

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

               For the Three Months Ended
                      December 31,
               --------------------------
                  2000           1999
                  ----           ----
Basic           2,252,308      2,260,080
Diluted         2,275,764      2,284,072


                                     Page 8
<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 Three Month Period Ended December 31, 2000

Total  assets at December  31, 2000 were  $512.5  million,  an increase of $24.0
million or 4.9% for the three

month  period.  This  increase  was  primarily  the  result  of an  increase  in
mortgage-backed  and  investment  securities  of  approximately  $16.7  and $2.3
million respectively.  The remainder was due to an increase in loans and Federal
Home Loan Bank stock of approximately $1.7 and $1.0 million respectively.

During the three month period ended December 31, 2000, total deposits  increased
by $3.0  million  to  $312.8  million.  Advances  from  borrowers  for taxes and
insurance  also  increased by $1.5 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 $18.7
million,  which was used to fund the purchase of investment  securities and fund
loans.

Comparisons  of Results of Operations  for the Three Month Period Ended December
31, 2000 with the Three Month Period Ended December 31, 1999.

Net Interest Income

The  decrease  in the net  interest  income  for the three  month  period  ended
December 31, 2000 when  compared to the same period in 1999 can be attributed to
the decrease in the interest  rate spread.  The interest  rate spread  decreased
from 1.95% for the three month period  ended  December 31, 1999 to 1.67% for the
comparable period ended December 31, 2000.

Total interest income was $8.9 million for the three month period ended December
31,  2000  compared  to $8.1  million  for the  comparable  period in 1999.  The
increase in the average  balance of  interest-earning  assets was enhanced by an
increase in the average yield for the  interest-earning  assets to 7.33% for the
three month period ended December 31, 2000 from 7.07% for the comparable  period
in 1999.

Total  interest  expense  increased  to $6.5  million for the three month period
ended  December  31, 2000 from $5.5 million for the  comparable  period in 1999.
This   increase   occurred   as  a  result  of  an   increase   in  the  average
interest-bearing  liabilities  from $428.5  million  for the three month  period
ended  December  31, 1999 to $462.4  million  for the  comparable  period  ended
December 31, 2000 while the average cost for the  respective  periods  increased
from 5.13% for the three month period  ended  December 31, 1999 to 5.66% for the
comparable period ended December 31, 2000.

                                    page 9

<PAGE>

Other Income

Other income increased to $224,000 for the three month period ended December 31,
2000 from  $102,000 for the  comparable  period in 1999.  The increase is due to
additional income from Bank Owned Life Insurance.

Other Expenses

During the quarter ended December 31, 2000, other expenses  increased by $66,000
or 5.1% to $1.4 million.  Management  believes these are normal increases in the
cost of operations after  considering the effects of inflation and the impact of
the 8.9% growth in the assets of the Company when compared to the same period in
1999.  The  annualized  ratio of expenses to average  assets for the three month
period ended December 31, 2000 was 1.11%.

Income Taxes

The Company  made  provisions  for income  taxes of $320,000 for the three month
period ended December 31, 2000 compared to $431,000 for the comparable period in
1999. These provisions are based on the lower level of taxable income due to the
purchase of tax-free investments.

Liquidity and Capital Resources

The  Company's  net income for the quarter  ended  December 31, 2000 of $900,000
increased  stockholder's  equity to $32.0 million or 6.2% 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                  $31,985   6.2%       $34,023  15.3%
Minimum required regulatory capital         20,501   4.0%        17,793   8.0%
                                           -------   ----       -------  -----
Excess capital                             $11,389   2.2%       $16,230   7.3%

The liquidity of the Company's operations, measured by the ratio of the cash and
securities balances to total assets, equaled 43.7% at December 31, 2000 compared
to 41.4% at September 30, 2000.

As of December 31, 2000,  the Company had $11.5 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  December 31, 2001, is $150.7  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 10

<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 December 31,  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                                       $  43,152      $   35,701     $   25,797     $  104,892       $   209,542
Mortgage-backed securities                              47,082          22,944         13,769         56,732           140,527
Consumer and other loans                                25,338          16,052          9,122          6,039            56,551
Investment securities and other investments             20,371           6,500         10,000         62,074            98,945
                                                    ------------  -------------  -------------  ---------------  --------------
Total interest-earning assets                          135,943          81,197         58,688        229,737           505,565
                                                    ------------  -------------  -------------  ---------------  --------------

Interest-bearing liabilities
   Passbook and Club accounts                               -             -              -             2,139             2,139
   NOW accounts                                             -             -              -            18,107            18,107
   Money Market Deposit accounts                            -             -              -            24,804            24,804
   Choice Savings                                        6,820            -              -            20,459            27,279
   Certificate accounts                                150,509          83,418          6,580             -            240,507
   Borrowed money                                       57,952          61,629         21,916         22,301           163,798
                                                    ------------  -------------  -------------  ---------------  --------------
Total interest-bearing liabilities                     215,281         145,047         28,496         87,810           476,634
                                                    ------------  -------------  -------------  ---------------  --------------
Repricing GAP during the period                      $ (79,338)     $  (63,850)    $   30,192     $  141,927       $    28,931
                                                    ============  =============  =============  ===============  ==============
Cumulative GAP                                       $ (79,338)     $ (143,188)    $ (112,996)    $   28,931
                                                    ============  =============  =============  ===============
Ratio of GAP during the period to total assets          -15.69%         -12.63%          5.97%         28.07%
                                                    ============  =============  =============  ===============
Ratio of cumulative GAP to total assets                 -15.69%         -28.32%        -22.35%          5.72%
                                                    ============  =============  =============  ===============
</TABLE>

                                     page 11

<PAGE>

Part II  OTHER INFORMATION

            Item 1-5.  Not applicable.

            Item 6.    Exhibits and Reports on Form 8-K

                       None




                                    page 12
<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:  February 12, 2001        By:   /s/ Edward J. Molnar
                                      -----------------------------------------
                                      Edward J. Molnar

                                      President and Chief Executive Officer

Date:  February 12, 2001        By:   /s/ Brendan J. McGill
                                      -----------------------------------------
                                      Brendan J. McGill
                                      Senior Vice President
                                      Treasurer and Chief Financial Officer