Officials at Hawthorne Financial Corp., hoping to turn things around after a two-year decline, said federal regulators will give them until yearend to raise up to $20 million.

Hawthorne, once one of the best-capitalized midsize thrifts in Southern California, is operating under a June 30 deadline to raise capital. But Scott Braly, chief executive, said the Office of Thrift Supervision has told management of the $725 million-asset thrift that it will approve their plan to raise capital by Jan. 1.

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