Foothill Ranch-based American Sterling Bank has received a cash infusion to meet the demands of regulators, according to a report in the Kansas City Star newspaper.

Larry Dodge, chief owner of the bank’s Foothill Ranch-based parent company American Sterling Corp., tapped an insurance subsidiary to provide $7.5 million to the bank, according to the report.

In the past two months, Dodge has provided $20.5 million in funding for American Sterling Bank, which has its operational headquarters near Kansas City.

In August, regulators ordered American Sterling Bank to raise its capital level to 7.5% of assets, which stood at $258 million at the end of June, or face a sale.

"We're moving closer to that target," Dodge told the Kansas City Star.

Loan problems and accounting issues put American Sterling’s capital at 1.6% of assets at the end of June.

Dodge, who lives in Dana Point’s Monarch Beach, acquired the bank in 1971. He’s a prominent philanthropist and businessman in Orange County.

The Federal Deposit Insurance Corp. had asked banks to bid on American Sterling in case of a regulatory takeover, according to the Kansas City Star.

That process has been shut down, Dodge told the paper.

Banks made offers for American Sterling that were rebuffed, Dodge said.

"We haven't felt the need to (sell),” Dodge told the paper. “At this juncture, we're trying to get it done with my own personal resources and have succeeded in doing so."

Dodge provided the bank money from American Sterling Insurance Co., a sister company. California insurance regulators approved the loan.

He told the paper he plans to sell assets to further provide capital.