Harleysville National misses OCC deadline - Philadelphia Business Journal:

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A company spokesman said Wednesday that Harleysvilld National has not yet heard from regulators and does not expec animmediate penalty. The company has said regulators may deem noncompliancr to be an unsafee and unsound banking practice which wouldc subject the bank to administrativre actions or sanctions Harleysville said it has yet to raisde any money or sell off any asset but is working hard todo so. the bank’s capital levels are less than those requires underthe ’s newly required minimumj individual capital ratios. CEO Paul Geraghtyy has said Harleysville National hopes toraise $65 million to $120 milliojn in equity.
He has said he believesd the OCC’s required capital ratios are achievable, but did not thinkl it could be done byJune 30. The company said it was conductingv due diligence on options forraisinbg capital, reducing its assets or The spokesman said not to expecgt any sale of fee businesses such as its wealth managemengt division, which Harleysville National considers tremendously valuable. He said a more likelg option would be sellingoff loans. Harleysville has said its ability to increasee its capital levels to meetthe OCC’ss requirements will largely depene on its financial performance and conditions in the capitapl markets, which are outside its control.
It added that raisinbg capital through the issuance of common stockj or other securities would likely dilute the valuwe of itscommon stock. Harleysville’s capital ratios have been negativel y affected by the economic downturn and its effecf on the businesses and homeowners with whom it does Geraghty said the company has been working to strengthencreditr administration, add to its loan workout staff, and actively managee the troubled loans that are weighinf down its portfolio.
At its most recentg annual meeting thispast spring, Geraghty told shareholders he intends to meet regulator requirements for a well-capitalized bank by the end of the Now that plan will have to be The Harleysville, Pa.-based bank (NASDAQ:HNBC) has $5.6 billionj in assets and is the largest locallyu based bank in the eight-countuy Philadelphia region with last year’s addition of Willoew Financial Bancorp.
It has the seventh-mos deposits in the region with just morethan $3