Regulatory problems for Advanta, Harleysville bank

0 Comments | Philadelphia Inquirer, The, June, 2009 | by Harold Brubaker Inquirer Staff Writer

Two local financial institutions, Montgomery County bank Harleysville National Corp. and small-business credit-card issuer Advanta, disclosed unrelated regulatory problems yesterday.

Harleysville said federal bank regulators had ordered it to boost capital reserves, used to cover loan losses, above the generally accepted levels at its Harleysville National Bank & Trust Co. unit by the end of the month.

To meet the new requirements, the bank said it was trying to raise capital, sell assets, or both. However, the bank said in a regulatory filing that it doubted it would achieve compliance with the new capital ratios in time and did not know what the consequence would be.

The second-biggest bank based in the Philadelphia region behind Wilmington Trust Co.,...