THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Harleysville National Corporation (HNBC)

3/23/2006 Proxy Information

Certain directors and officers of Harleysville National Corporation, and companies with which they are associated, are customers of the corporationÕs banking subsidiary, Harleysville National Bank. During 2005, these individuals and companies had banking transactions with Harleysville National Bank in the ordinary course of business. Similar transactions may be expected to occur in the future. All loans and loan commitments involved in such transactions were made under substantially the same terms, including interest rates, collateral, and repayment terms, as those prevailing at the time for comparable transactions with other persons. In the opinion of the corporationÕs management, these transactions do not involve more than the normal risk of collection, nor do they present other unfavorable features. Each of these transactions was made in compliance with applicable law, including Section 13(k) of the Securities and Exchange Act of 1934 and Federal Board Regulation O. As of December 31, 2005, loans to executive officers, directors, and their affiliates represented 8.1% of total shareholdersÕ equity in Harleysville National Corporation.

Mr. Bateman is the retired Chairman and Chief Executive Officer of Harleysville Group Inc. & Harleysville Mutual Insurance Company, subsidiaries of Harleysville National Corporation.

3/9/2005 Proxy Information

There have been no material transactions between any director or executive officer of the corporation or any of their associates and the corporation, nor are any such material transactions proposed. The corporation has had and intends to continue to have banking and financial transactions in the ordinary course of business with directors and executive officers of the corporation and its banking subsidiaries and their associates on comparable terms and with similar interest rates as those prevailing, from time to time, for other customers of its banking subsidiaries. Total loans outstanding from the corporation at December 31, 2004, to the corporation's executive officers and directors as a group and members of their immediate families and companies in which they had an ownership interest of 10% or more was $22,862,592 or approximately 8.45% of the total equity capital of the corporation. Loans to such persons were made in the ordinary course of business and were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons, and did not involve more than the normal risk of collectibility or present other unfavorable features.