California United Bank Reports Continued Growth for First Quarter 2006.ENCINO, Calif. -- California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). United Bank (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CUNB) today announced continued growth in assets, loans and deposits as well as positive trends in core earnings for the first quarter of 2006. Total Assets of $116,740,000 at March 31, 2006, were up over 14 percent or $14,850,000 over December December: see month. 31, 2005. Loans increased 22 percent from $34,574,000 at December 31, 2005 to $42,183,000 at March 31, 2006, an increase of more than $7.6 million. Deposits increased 25.8 percent to $74,772,000 at March 31, 2006 as compared to $59,458,000 at year end 2005. "After only ten months of operation, the Bank's core earnings continue to narrow the gap to break-even," noted Chief Executive Officer and President David I David I, king of Scotland David I, 1084–1153, king of Scotland (1124–53), youngest son of Malcolm III and St. Margaret of Scotland. During the reign of his brother Alexander I, whom he succeeded, David was earl of Cumbria, ruling S of the Clyde . Rainer The name Rainer comes from the Germanic name Reginar, composed of the two elements ragin ("advice") and heri ("army"). The name was brought to Britain by the Normans. . "The loss before provision for loan losses, stock option expense and depreciation was $156,000, as opposed op·pose v. op·posed, op·pos·ing, op·pos·es v.tr. 1. To be in contention or conflict with: oppose the enemy force. 2. to $485,000 in the prior quarter, a 68 percent improvement. The provision for loan losses for the first quarter of 2006 was $103,000, which is reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of growth in the loan portfolio." During the first quarter of 2006, all public companies were required for the first time to record stock option expense pursuant to the requirements of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123(r) "Share-Based Payments." Previously the Bank followed the intrinsic intrinsic /in·trin·sic/ (in-trin´sik) situated entirely within or pertaining exclusively to a part. in·trin·sic adj. 1. Of or relating to the essential nature of a thing. 2. loan value method, which did not require the recording of stock option expense. This non cash expense which does not reduce capital was $338,000 during first quarter 2006. The Bank reported a net loss for the first quarter of 2006 of $666,000, this compares to a net loss of $800,000 for the fourth quarter of 2005, an improvement of $134,000 or 17 percent in reported earnings. "We continue to augment aug·ment v. aug·ment·ed, aug·ment·ing, aug·ments v.tr. 1. To make (something already developed or well under way) greater, as in size, extent, or quantity: our ability to grow the Bank's assets, through our additional branch office in West Los Angeles
The Bank opened on May 23, 2005, after completing a $35 million initial stock offering. California United Bank provides a full range of financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , including credit and deposit products, cash management, and internet banking for business and high net worth individuals from its headquarters office at 15821 Ventura Boulevard Ventura Boulevard is one of the primary east-west thouroughfares in the San Fernando Valley; as it was originally a part of the El Camino Real (the trail between Spanish missions), Ventura Boulevard is the oldest route in the San Fernando Valley. It was also U.S. , Suite 100, Encino, CA 91436. Information on products and services may be obtained by calling (818) 257-7700 or visiting the Bank's website at www.californiaunitedbank.com. {NOTE}: This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. about the Bank for which the Bank claims the protection of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions contained in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements are based on management's knowledge and belief as of today and include information concerning the Bank's possible or assumed future financial condition, and its results of operations, business and earnings outlook. These forward-looking statements are subject to risks and uncertainties. A number of factors, some of which are beyond the Bank's ability to control or predict, could cause future results to differ materially from those contemplated by such forward-looking statements. These factors include (1) the unknown economic impact of state budget issues, (2) changes in interest rates, (3) significant changes in banking laws or regulations, (4) increased competition in the Bank's markets, (5) other-than-expected credit losses due to real estate cycles or other economic events, (6) earthquake earthquake, trembling or shaking movement of the earth's surface. Most earthquakes are minor tremors. Larger earthquakes usually begin with slight tremors but rapidly take the form of one or more violent shocks, and end in vibrations of gradually diminishing force or other natural disasters affecting the condition of real estate collateral collateral (kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although or the business environment, and (7) the impact of changes in regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. , judicial, or legislative tax treatment of business transactions. Management cannot predict at this time the extent of the economic recovery, and a slowing or reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its could adversely affect our performance in a number of ways including decreased demand for our products and services and increased credit losses. Likewise, changes in deposit interest rates, among other things, could slow the rate of growth or put pressure on current deposit levels. Forward-looking statements speak only as of the date they are made, and the Bank does not undertake to update forward-looking statements to reflect circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or or events that occur after the date the statements are made.
CALIFORNIA UNITED BANK
BALANCE SHEETS
For the Period Ended
(Dollars in thousands)
December September
March 31, 31, 30, June 30,
Assets: 2006 2005 2005 2005
--------- --------- --------- --------
Cash and Due From Banks $5,111 $1,950 $1,574 $765
Federal Funds Sold 44,385 47,610 44,790 34,900
Interest-Earning Deposits In
Other Financial Institutions 6,000 4,135 - -
--------- --------- --------- --------
Total Cash and Cash
Equivalents 55,496 53,695 46,364 35,665
--------- --------- --------- --------
U.S. Treasury Securities 5,985 1,999 496 -
U.S. GNMA Agency Mortgage-
Backed Securities 5,774 6,081 6,479 6,787
U.S. FNMA Agency Issued
Securities 3,304 3,873 3,954 3,975
SBA Issued Securities 2,174 - - -
--------- --------- --------- --------
Total Long Term
Investment Securities 17,237 11,953 10,929 10,762
Total Investment
Securities 72,733 65,648 57,293 46,427
--------- --------- --------- --------
Loans Net of Deferred Loan
Fees 42,183 34,574 17,126 3,288
Allowance for Loan Losses (570) (467) (257) (65)
--------- --------- --------- --------
Loans Net of Allowance
for Loan Losses 41,613 34,107 16,869 3,223
Total Other Assets 2,394 2,135 1,560 1,594
--------- --------- --------- --------
Total Assets $116,740 $101,890 $75,722 $51,244
--------- --------- --------- --------
Liabilities:
Non-Interest-Bearing Demand
Deposits $22,233 $15,684 $6,773 $3,165
Interest-Bearing Demand
Deposits (NOW Deposits) 3,713 2,836 1,958 808
Money Market Deposits 40,297 38,259 25,211 12,933
Savings Deposits 111 139 100 155
Certificates of Deposit 8,418 2,540 1,864 555
--------- --------- --------- --------
Total Interest Bearing
Deposits 52,539 43,774 29,133 14,451
Total Deposits 74,772 59,458 35,906 17,616
--------- --------- --------- --------
Securities Sold Under
Agreements to Repurchase 9,951 10,087 7,005 -
Total Interest Bearing
Liabilities 84,723 69,545 42,911 17,616
--------- --------- --------- --------
Accrued Interest Payable and
Other Liabilities 673 580 158 168
--------- --------- --------- --------
Total Liabilities 85,396 70,125 43,069 17,784
--------- --------- --------- --------
Shareholders' Equity:
Common Stock 34,705 34,705 34,702 34,702
Additional Paid in Capital 602 264 - -
Prior Year Retained Earnings-
2005 (3,067) (489) (489) (489)
Current Year-to-Date (Loss) (666) (2,578) (1,480) (729)
Accumulated Other
Comprehensive Loss (229) (137) (80) (24)
--------- --------- --------- --------
Total Shareholders'
Equity 31,345 31,765 32,653 33,460
--------- --------- --------- --------
Total Liabilities and
Shareholders' Equity $116,741 $101,890 $75,722 $51,244
--------- --------- --------- --------
CALIFORNIA UNITED BANK
STATEMENT OF OPERATIONS
For the Quarters Ended March 31, 2006; December 31, 2005 and
September 30, 2005
(Dollars in thousands except per share data)
1st 4th 3rd
Quarter Quarter Quarter
2006 2005 2005
-------- -------- --------
Interest Income:
Interest and Fees on Loans $707 $397 $110
Interest on Federal Funds Sold 433 422 399
Interest on Deposits in Other Financial
Institutions 52 33 -
Interest on Investment Securities 156 113 107
-------- -------- --------
Total Interest Income 1,348 965 616
-------- -------- --------
Interest Expense:
Interest on Interest-Bearing Demand
Deposit Accounts 2 1 2
Interest on Money Market Accounts 181 105 61
Interest on Certificates of Deposits 41 17 9
Interest on Securities Sold Under
Agreements to Repurchase 90 66 37
-------- -------- --------
Total Interest Expense 314 189 109
-------- -------- --------
Net Interest Income 1,034 776 507
-------- -------- --------
Provision for Loan Losses 103 210 191
Net Interest Income After Provision
for Loan Losses 931 566 316
Non-Interest Income:
Non-interest Income 13 10 5
Non-Interest Expense:
Salaries and Employee Benefits 785 792 666
Stock Option Expense 338 - -
Net Occupancy Expense 182 227 166
Other Operating Expense 305 357 244
-------- -------- --------
Total Non-Interest Expense 1,610 1,376 1,076
Pre-Tax Net Loss (666) (800) (755)
Provision/(Benefit) for Income Taxes - - -
Net Loss $(666) $(800) $(755)
======== ======== ========
Loss per share - basic and diluted loss
per share $(0.19) $(0.23) $(0.22)
CALIFORNIA UNITED BANK
For the Quarters Ended March 31, 2006; December 31, 2005 and
September 30, 2005
Cash Flow from Operating Activities
1st 4th 3rd
Quarter Quarter Quarter
2006 2005 2005
-------- -------- --------
Adjustments to reconcile net loss to net
cash used by operating activities:
Net Operating Loss $(666) $(800) $(755)
Adjustments to reconcile net loss to net
cash used by operating activities:
Less Non Cash Expenses that do not reduce
Bank Capital:
Stock Option Expense 338 - -
-------- -------- --------
Net Operating Loss excluding stock
option expense (328) (800) (755)
-------- -------- --------
Less Non Cash Expenses that reduce Bank
Capital:
Provision for Loan Losses 103 210 191
Depreciation Expense 69 105 72
-------- -------- --------
Total Other Non Cash Operating
Expense 172 315 263
Net Operating Loss excluding stock option
expense, provision for loan losses and
depreciation (156) (485) (492)
======== ======== ========
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