But now Geraghty says regulators won't give Harleysville that long: "The OCC has established individual minimum capital ratios requiring Harleysville to have a Tier 1 leverage ratio of at least eight percent (8%) of adjusted total assets, a Tier 1 risk-based capital ratio of at least ten percent (10%) and a total risk-based capital ratio of at least twelve percent (12%) which must be achieved by June 30, 2009."
Those are higher standards than other banks face: "Each of the above described ratios exceeds the well-capitalized ratios generally applicable to all banks under current regulation," implying regulators think Harleysville's in a hole.
"While the Bank believes these ratios are achievable, in the Bank’s view they probably cannot be achieved by June 30, 2009."
What's next? "It is uncertain what actions, if any, the OCC will take with respect to noncompliance with these capital ratios by June 30, 2009. If the Bank does not meet the OCC’s requirements by the applicable date, the OCC may deem noncompliance to be an unsafe and unsound banking practice which would subject the Bank to such administrative actions or sanctions as the OCC considers necessary."
Best wishes to Paul Geraghty and his team. Otherwise the biggest bank still based in suburban Philadelphia is set to be absorbed by PNC or some other large corporation.