Harleysville National misses OCC deadline - Philadelphia Business Journal:

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A company spokesman said Wednesday that Harleysville National has not yet heards from regulators and does not expect animmediate penalty. The company has said regulatorsw may deem noncompliance to be an unsafe and unsoun banking practice which would subject the bank to administrativd actions or sanctions 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 requiredx underthe ’s newly required minimum individual capital ratios.
CEO Paul Geraghtg has said Harleysville National hopes toraise $65 millionm to $120 million in He has said he believexs the OCC’s required capital ratios are but did not think it couldc be done by June 30. The company said it was conductingb due diligence on options for raising reducing its assets or The spokesman said not to expect any sale of fee businesses such as its wealth management division, which Harleysville National considers tremendousl valuable. He said a more likely option would be sellingoff loans.
Harleysville has said its ability to increase its capital levels to meetthe OCC’s requirementsd will largely depend on its financial performance and conditions in the capitalk markets, which are outside its It added that raising capital through the issuance of commonh stock or other securities would likelyy dilute the value of its common Harleysville’s capital ratios have been negatively affectedr by the economic downturn and its effect on the businesses and homeowners with whom it does Geraghty said the company has been working to strengthen credi administration, add to its loan workoutt staff, and actively manage the troubledf loans that are weighing down its portfolio.
At its most recent annuao meeting thispast spring, Geraghty told shareholdersd he intends to meet regulatory requirements for a well-capitalizexd bank by the end of the Now that plan will have to be The Harleysville, Pa.-based bank (NASDAQ:HNBC) has $5.6 billion in assets and is the largesr locally based bank in the eight-county Philadelphias region with last year’s additiob of Willow Financial It has the seventh-most deposits in the region with just more than $3