HNC slides used for FBW Banking Conference

Ferris, Baker Watts, Inc. Mid-Atlantic Community Bank Conference

Hotel Hershey, Hershey, PA l July 27, 2006

Gregg J. Wagner

President and Chief Executive Officer

Forward-Looking Information

During the course of this presentation, management may makeprojections

and forward-looking statements regarding events or the future financial

performance of Harleysville National Corporation. We wish to caution you

that these forward-looking statements involve certain risks and

uncertainties, including a variety of factors that may cause Harleysville

National Corporation’s actual results to differ materially from the anticipated

results expressed in these forward-looking statements. Investors are

cautioned not to place undue reliance on these forward-looking statements

and are advised to review the risk factors that may affect Harleysville

National Corporation’s operating results in documents filed by Harleysville

National Corporation with the Securities and Exchange Commission,

including the Quarterly Report on Form 10-Q, the Annual report on form 10-

K and other required filings. Harleysville National Corporation assumes

no duty to update the forward-looking statements made in this presentation.

Corporate Overview

Founded 1909

Second Largest Independent Community

Bank Within our Footprint

45 Branches Throughout Eastern

Pennsylvania

Total Assets of $3.2 Billion

Millennium Wealth Management Division

Assets Under Management Exceed $2.4
Billion

Unique Strengths

Seasoned New Management Team

Demonstrated Track Record of

Consistent Earnings

Attractive Market Demographics

Future Growth Focused in High-Growth

Markets

HNBC Management Team

Michael B. High

Executive Vice President and Chief Operating Officer

George S. Rapp

Executive Vice President and Chief Financial Officer

Deb M. Takes

President and Chief Executive Officer, Harleysville

National Bank

John W. Eisele

President, Millennium Wealth Management

Lewis C. Cyr

Executive Vice President, Commercial Banking,

Chief Lending Officer

America’s Finest Companies

History of Strong Performance, Steady Returns

30 years of record earnings

31 years of increased dividends

Recognized in America’s Finest Companies

Earnings All Star

Dividend All Star

“Super 50” Team

NASDAQ Dividend Achievers

New Dividend Achievers List

Broad Dividend Achievers Index

Dividend Achievers 50 Index

Global Select Market

Hig

listed companies

hest ranking tier forNASDAQ-

HNBC Headquarters

Current Footprint

Total Deposits (HNBC)	$1,730,591
HNBC Branches	28
Market Rank (HNBC) – Montgomery	3
Market Rank (HNBC) – Bucks	14
Projected Population Growth (2005-2010)	3.37%
Average Income	$97,342
Projected Income Increase (2005-2010)	28.36%

Source: SNL Securities, data current as of 6/30/05

Montgomery and Bucks Counties, PA

Core Market Demographics

Ongoing Challenges

Net Interest Margin

Fee-based Income

New Strategic Initiatives

Add Depth to Complete Suite of

Commercial Offerings

Use Millennium Wealth Management to

Best Advantage

Build and Manage Infrastructure to Drive

New Strategic Direction

Execute Market Rationalization to Focus

Growth and Profitability

Commercial Banking

Leverage Market Capacity

Focus on Commercial & Industrial Loans

Focus on Real Estate Construction

Lending

Build Cash Management Capabilities

Commercial Accomplishments

Key Hires

Products and Services

Make Millennium Wealth Management a

"core solution” customersfor retail and commercial

customers

Develop our wealth management products

and services

Position Millennium as premier wealth

management provider in markets we serve

Millennium Wealth Management

Wealth Management Accomplishments

Acquired and Integrated Cornerstone

Companies

Marketing Campaigns

Leading registered investment advisor for high

net worth, privately held business owners,
wealthy families and institutional clients

Asset management, business succession and

estate planning services

Combined assets under management for

Millennium and Cornerstone exceed $2.4 billion

Build and Manage Infrastructure

Streamline Processes

Invest in Key Personnel

Disciplined Strategy to Support

Planned Growth

Infrastructure Accomplishments

Key Operational Hires

Initiating Process Improvement

Corporate Campus Expansion

New

Operations
Building

Consolidate

Operations
Staff

Construction

in progress,
set for early
2007
completion

HNC Operations Building

Market Rationalization

Optimize Footprint

Build Infrastructure to Accommodate

Growth

Open 10 Offices in Next 36-48 Months

Market Rationalization Accomplishments

Relocations

Branch Prototype

New Locations

Branch Divestiture

HNBC Headquarters

HNB Branch Relocation

Market Rationalization - Relocations

New Branch Prototype

HNBC Headquarters

Future HNB Location

New HNB Location

Market Rationalization – New Branches

Ferris, Baker Watts, Inc. Mid-Atlantic Community Bank Conference

Hotel Hershey, Hershey, PA l July 27, 2006

George S. Rapp

Executive Vice President and Chief Financial Officer

	6/30/06	6/30/05
Total Assets	$3,217	$3,032
Total Loans	2,032	1,091
Total Investments	925	894
Total Deposits	2,480	2,223
Total Borrowings	418	487

Balance Sheet (dollars in millions)

Key Financial Highlights

	6/30/06			6/30/05
Nonperforming Assets		$11.5		$4.7
Nonperforming Assets / Total Assets		.36%		.15%
Allowance for Loan and Lease Losses / Loans		1.02%		1.00%
Charge-offs / Avg. Loans		.14%	.10%

Asset Quality (dollars in millions)

Key Financial Highlights

* 2006 numbers are YTD 6/30/06

Net Charge Offs to Loans Outstanding*

	6/30/06		6/30/05
Diluted EPS		$.65	$.67
Return on Assets		1.15%	1.27%
Return on Equity		13.25%	14.00%
Net Interest Margin		3.09%	3.36%
Noninterest Income / Total Revenue		29.03%	22.10%
Efficiency Ratio		54.02%	53.59%