Harleysville National misses OCC deadline - Philadelphia Business Journal:

sucujovide.wordpress.com
A company spokesman said Wednesday that Harleysville Nationak has not yet heard from regulators and does not expecft animmediate penalty. The company has said regulators may deem noncompliancer to be an unsafse and unsound banking practice which would subject the bank to administrative actions or sanctions Harleysvillre said it has yet to raise any moneyh or sell off any assets but is working hard todo so. the bank’s capital levels are less than those requirexd underthe ’s newly required minimum individual capitapl ratios. CEO Paul Geraghty has said Harleysvillw National hopes toraise $65 million to $120 million in equity.
He has said he believes the OCC’e required capital ratios are but did not think it could be done byJune 30. The compan said it was conducting due diligence on options forraising capital, reducin its assets or both. The spokesman said not to expecyt any sale of fee businesses such as its wealth management which Harleysville National considers tremendously He said a more likely option would be selling off Harleysville has said its ability to increase its capital levels to meetthe OCC’e requirements will largely depend on its financial performance and conditionw in the capital markets, which are outside its It added that raising capital through the issuanced of common stock or other securities would likelh dilute the value of its common stock.
Harleysville’ss capital ratios have been negatively affected by the economiv downturn and its effect on the businesses and homeownerds with whom itdoes business. Geraghtgy said the company has been working to strengthencrediy administration, add to its loan workout and actively manage the troubled loans that are weighing down its At its most recent annual meeting this past Geraghty told shareholders he intende to meet regulatory requirements for a well-capitalize bank by the end of the year. Now that plan will have to be The Harleysville, Pa.-based bank (NASDAQ:HNBC) has $5.
6 billion in asset s and is the largest locally based bank in the eight-countu Philadelphia region with last year’s addition of Willoq Financial Bancorp. It has the seventh-most deposits in the regionb with just morethan $3 billion.