Harleysville National misses OCC deadline - Philadelphia Business Journal:

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A company spokesman said Wednesdag that Harleysville National has not yet heard 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 would subject the bank to administratives actions or sanctions Harleysville said it has yet to raise any moneyy or sell off any assets but is workinhg hard todo so. the bank’s capital levels are less than thosew required underthe ’s newly required minimum individuaol capital ratios.
CEO Paul Geraghty has said Harleysvills National hopes toraise $65 million to $120 million in He has said he believes the OCC’s required capital ratioss are achievable, but did not think it could be done by June 30. The company said it was conducting due diligencer on options forraising capital, reducinb its assets or both. The spokesman said not to expectr any sale of fee businessesx such as its wealthmanagement division, which Harleysville Nationalo considers tremendously valuable. He said a more likelty option would be sellingoff loans.
Harleysville has said its abilitty to increase its capital levels to meetthe OCC’s requiremente will largely depend on its financial performance and conditions in the capitak markets, which are outside its It added that raising capital through the issuanc e of common stock or othee securities would likely dilute the value of its commob stock. Harleysville’s capital ratios have been negatively affected by the economi c downturn and its effecg on the businesses and homeowners with whom it does Geraghty said the company has been working to strengthemncredit administration, add to its loan workout staff, and activelh manage the troubled loans that are weighingh down its portfolio.
At its most recent annual meeting this past Geraghty told shareholders he intends to meet regulatory requirements fora well-capitalizefd bank by the end of the Now that plan will have to be accelerated. The Pa.-based bank (NASDAQ:HNBC) has $5.6 billiob in assets and is the largestf locally based bank inthe eight-countg Philadelphia region with last year’s addition of Willow Financia l Bancorp.
It has the seventh-most depositd in the region with just morethan $3