Bank of San Francisco said last week that it lost more money in the first quarter than a year earlier and is operating outside of several regulatory orders.
Officials of the private bank expressed confidence, however, that its troubles are nearly over.
"A new management team is in place which is focused on completing the turnaround now under way and implementing a recovery strategy," said chief executive Kent D. Price.
The bank lost $9.8 million in 1993 and more than $25 million during the last three years. It is trying to raise at least $16.9 million by selling new stock.
In the first quarter, the hank lost $3.2 million, up from $2.6 million a year ago earlier. Management cited aggressive writeoffs of problem assets.
A new loan classification system added $4.5 million to the problem asset portfolio.
"The more rigorous standards are appropriate for the type of strong, resilient company we intend to be," said Mr. Price, the former Bank of New England chief financial officer who became chief executive of Bank of San Francisco last year.
The bank does not comply with agreements it signed last year with the Federal Deposit Insurance Corp. and state regulators, including the agreements on leverage capital, nonperforming assets, and reliance on volatile liabilities.
