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CU BANCORP REPORTS FIRST QUARTER PROFIT

 ENCINO, Calif., April 7 /PRNewswire/ -- CU Bancorp (NASDAQ: CUBN), the holding company of California United Bank N.A., today reported net income of $384,000, or $0.085 per fully diluted share, for the first quarter ended March 31, 1993. This compares to a loss of $5 million, or $1.896 per fully diluted share, in the prior quarter, and net income of $595,000, or $0.136 per fully diluted share, for the first quarter 1992.
 "Our first quarter profitability marks the next step in the bank's rebuilding process," said Stephen G. Carpenter, president and chief executive officer. "This important achievement is the result of a number of decisive steps taken in 1992 to strengthen credit quality, reduce our cost structure and improve our deposit mix. We are pleased that our commercial banking business has operated profitably, complementing our residential mortgage banking group, which continues to produce strong results for CUB."
 At March 31, 1993, non-performing assets were down $16.5 million to $11.0 million, 60 percent below the prior year, and $2.5 million, or 19 percent below year-end 1992. Non-performing assets are defined as non-accrual loans (including all loans 90 days or more delinquent) and foreclosed or in substance foreclosed real estate. The company's reserve for loan losses at the end of first quarter 1993 was 5.13 percent of loans, compared to 4.96 percent for the same period a year earlier, and 6.43 percent at the close of 1992. Reserves at the end of the first quarter of 1993 were 164 percent of non-performing loans and 98 percent of non-performing assets, a substantial increase over first quarter 1992 levels, and year-end 1992 levels of 145 percent and 96 percent, respectively.
 At March 31, 1993, the bank had a Total Risk-Based Capital Ratio of 12.6 percent; Tier 1 Risk-Based Capital Ratio of 11.3 percent; and Tier 1 Leverage Ratio of 8.0 percent, all increased from year-end 1992 levels, and all well above mandated minimums.
 "It has taken a great deal of resolve and dedication on the part of our entire team to effect the kind of turnaround CU has underway," said Carpenter. "Our ability to build our reserve provision, significantly reduce our non-performing credits, and strengthen our balance sheet in such a short period of time attests to the overall long-term potential of our organization.
 "Our performance enables us to pursue a wide variety of new business relationships as we move ahead in 1993," Carpenter said. "We are enthusiastic about the success of CUB's commercial banking team in expanding our middle-market business, and we're confident in our ability to continue to take advantage of the opportunities for growth that exist in this important market.
 "With a strengthened balance sheet, disciplined approach to risk management and cost conscious culture, California United Bank is well-positioned for continued profitability and expansion, and we intend to continue to build on this strong position."
 Total assets at March 31, 1993, were $337 million, compared with $539 million at March 31, 1992. Shareholders' equity totaled $25 million, or $5.73 per share at March 31, 1993, compared to $33 million, or $7.75 per share for the same period last year.
 CU Bancorp's subsidiary, California United Bank N.A., offers a full range of commercial and personal banking products and services to middle-market businesses, the entertainment industry and high-net- worth individuals from locations in Encino and Beverly Hills, Calif. The bank's residential mortgage banking operation services customers throughout California from offices in Calabasas, Orange County, Sacramento and San Jose.
 CU BANCORP
 Selected Financial Data
 (Amounts in thousands of dollars)
 March 31, Dec. 31, March 31,
 1993 1992 1992
 Capital Ratios
 (Bank level)
 Total risk-based
 capital 12.6 pct. 12.9 pct. 12.7 pct.
 Tier 1 risk-based
 capital 11.3 pct. 11.6 pct. 11.4 pct.
 Tier 1 leverage
 capital 8.0 pct. 6.1 pct. 7.3 pct.
 Asset Quality
 Allowance for loan
 losses 10,823 12,986 13,257
 Non-performing loans 6,602 8,978 20,851
 Non-performing assets 11,034 13,547 27,555
 Allowance for loan
 losses to:
 Total loans 5.13 pct. 6.43 pct. 4.96 pct.
 Non-performing loans 164 pct. 145 pct. 64 pct.
 Non-performing assets 98 pct. 96 pct. 48 pct.
 Performance Ratios
 Return on average
 shareholders' equity 6.30 pct. (26.06 pct.) 7.23 pct.
 Return on average
 assets 0.50 pct. (1.89 pct.) 0.51 pct.
 Common Stock Data
 Earnings per fully
 diluted share $0.085 ($1.896) $0.136
 Book value per share $5.73 $5.64 $7.75
 Market price (bid) $6.13 $3.25 $5.75
 Common shares
 outstanding (thousands) 4,367 4,367 4,382
 CU BANCORP
 Consolidated Statements of Income
 (Amounts in thousands of dollars)
 For the three months
 ended March 31,
 1993 1992
 Revenue from earning assets 4,866 7,474
 Cost of funds 1,061 1,708
 Net revenue from earning assets
 before provision for loan losses 3,805 5,766
 Provision for loan losses 150 1,007
 Net revenue from earning assets 3,655 4,759
 Gain on securities sales 77 0
 Commercial banking other income 207 265
 Mortgage banking other income 4,065 3,945
 Total non-interest income 4,349 4,210
 Salaries and related benefits 2,439 2,733
 Occupancy expense 225 317
 Commercial banking other expense 1,167 1,666
 Mortgage banking other expense 3,531 3,261
 Total non-interest expense 7,362 7,977
 Income before taxes 642 992
 Taxes on income 258 397
 Net income 384 595
 Earnings per fully diluted share $0.085 $0.136
 Fully diluted shares O/S 4,505 4,382
 CU BANCORP
 Consolidated Statements of Financial Condition
 (Amounts in thousands of dollars)
 March 31, Dec. 31, March 31,
 1993 1992 1992
 Assets
 Cash and due from banks 61,905 55,989 151,943
 Federal funds sold 15,000 0 35,000
 Cash and cash equivalents 76,905 55,989 186,943
 Time deposits with other banks 3,356 3,356 5,400
 Investment securities 38,012 84,723 73,363
 Net loans 200,110 188,991 254,284
 Other real estate owned 4,432 4,652 6,704
 Premises and equipment, net 1,958 2,035 1,840
 Accrued interest receivable
 and other assets 12,600 14,176 10,782
 Total assets 337,373 353,922 539,316
 Liabilities and shareholders'
 equity
 Deposits:
 Demand 169,254 198,878 354,104
 Savings 69,065 74,849 92,030
 Time -- under $100 26,867 16,031 10,959
 Time -- over $100 36,982 28,816 38,724
 Total deposits 302,168 318,574 495,817
 Accrued interest payable
 and other liabilities 10,190 10,717 10,302
 Total liabilities 312,358 329,291 506,119
 Shareholders' equity:
 Common stock 25,989 25,989 25,770
 Retained earnings (deficit) (974) (1,358) 7,427
 Total shareholders' equity 25,015 24,631 33,197
 Total liabilities and
 shareholders' equity 337,373 353,922 539,316
 -0- 4/7/93
 /CONTACT: Patrick Hartman, CFO of CU Bancorp, 818-907-9122/
 (CUBN)


CO: CU Bancorp; California United Bank, N.A. ST: California IN: FIN SU: ERN

LS-JL -- LA018 -- 3829 04/07/93 14:23 EDT
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Date:Apr 7, 1993
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