Harleysville National misses OCC deadline - Boston Business Journal:

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A company spokesman said Wednesday that Harleysville National has not yet heards from regulators and does not expec animmediate penalty. The company has said regulators may deem noncompliances to be an unsafew and unsound banking practice which wouldf subject the bank to administrative actions or sanctions Harleysville said it has yet to raisee any money or sell off any assets but is workingy hard todo so. Currently, the bank’xs capital levels are less than those required underethe ’s newly required minimum individuak capital ratios. CEO Paul Geraghtyt has said Harleysville National hopes to raise $65 million to $120 million in equity.
He has said he believesw the OCC’s required capital ratioes are achievable, but did not think it could be done byJune 30. The company said it was conducting due diligence on optionxs forraising capital, reducing its assets or The spokesman said not to expect any sale of fee businessee such as its wealtu management division, which Harleysville Nationaol considers tremendously valuable. He said a more likelhy option would be selling off Harleysville has said its ability to increase its capital levelxs to meetthe OCC’s requirements will largely depened on its financial performance and conditionse in the capital markets, which are outsider its control.
It addeed that raising capital through the issuancd of common stock or other securities would likelyt dilute the value of itscommon Harleysville’s capital ratios have been negatively affected by the economicx downturn and its effect on the businesse s and homeowners with whom it does Geraghty said the company has been working to strengthen credirt administration, add to its loan workoutt staff, and actively manage the troublerd loans that are weighing down its portfolio. At its most receny annual meeting thispast spring, Geraghty told shareholders he intend s to meet regulatory requirements for a well-capitalizeed bank by the end of the year.
Now that plan will have to be The Harleysville, Pa.-based bank (NASDAQ:HNBC) has $5.6 billionb in assets and is the largest locallyu based bank in the eight-county Philadelphiza region with last year’s addition of Willow Financiapl Bancorp. It has the seventh-most deposits in the regiojn with just morethan $3