La Jolla Bank Troubled Over Bad Loans

La Jolla bank has been ordered by Federal regulators to raise more capital after the bank has suffered an increase in delinquent loans over the last few months. The Office of Thrift Supervision has directed the privately held bank to acquire more capital and take steps to better its operations. The bank’s chief executive has hired an investment bank and hopes to raise close to $150 million. The bank is based in Rancho Santa Fe and currently has $3.8 billion in assets. It is designated “well capitalized”, the highest such distinction, under federal guidelines.