Harleysville National misses OCC deadline - Boston Business Journal:

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A company spokesman said Wednesday that Harleysvilles National has not yet heardr from regulators and does not expect an immediate The company has said regulators may deem noncompliance to be an unsafse and unsound banking practice which woulsd subject the bank to administrative actions or sanctione Harleysville said it has yet to raise any money or sell off any assets but is working hard todo so. the bank’s capital levels are less than those requireed underthe ’s newly required minimumm individual capital ratios. CEO Paul Geraghty has said Harleysvillde National hopes toraise $65 million to $120 milliojn in equity.
He has said he believes the OCC’s required capital ratios are achievable, but did not thinkj it could be done byJune 30. The companuy said it was conductinyg due diligence on options forraising capital, reducin g its assets or The spokesman said not to expectg any sale of fee businesses such as its wealt h management division, which Harleysviller National considers tremendously valuable. He said a more likelu option would be sellinghoff loans.
Harleysville has said its ability to increased its capital levels to meetthe OCC’s requirements will largelh depend on its financial performance and conditionsx in the capital markets, which are outside its It added that raising capital through the issuance of commonj stock or other securitieas would likely dilute the valuee of its common stock. Harleysville’s capitakl ratios have been negatively affected by the economix downturn and its effect on the businesses and homeowners with whom it does Geraghty said the company has been working to strengthencredit administration, add to its loan workout and actively manage the trouble loans that are weighing down its portfolio.
At its most recenty annual meeting thispast spring, Geraghty told shareholders he intends to meet regulatory requirements for a well-capitalizef bank by the end of the Now that plan will have to be accelerated. The Pa.-based bank (NASDAQ:HNBC) has $5.6 billionj in assets and is the largest locally base d bank inthe eight-county Philadelphia region with last year’ds addition of Willow Financial Bancorp. It has the seventh-most deposits in the regiomn with just morethan $3 billion.