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CALIFORNIA UNITED BANK ENTERS INTO FORMAL AGREEMENT WITH THE OFFICE OF THE COMPTROLLER OF THE CURRENCY

 CALIFORNIA UNITED BANK ENTERS INTO FORMAL AGREEMENT WITH
 THE OFFICE OF THE COMPTROLLER OF THE CURRENCY
 ENCINO, Calif., June 30 /PRNewswire/ -- The board of directors of CU Bancorp (NASDAQ: CUBN) today announced that its wholly owned subsidiary California United Bank, N.A. entered into an agreement with the Office of the Comptroller of the Currency (OCC), the bank's primary federal regulator.
 Stephen G. Carpenter, recently appointed chief executive officer of the bank, stated, "The formal agreement stipulates certain policies and procedures for the operation of the bank that are designed to improve its lending operations and the management of its loan portfolio, many of which the bank has previously put into place or is in the process of so doing. It is the intent of current management that these policies and procedures be implemented as quickly as possible, hopefully in advance of the OCC timeframes."
 Carpenter noted that the formal agreement also requires the bank to maintain certain levels of capital, but that the bank's capital presently exceeds all mandated levels, and no new capital would be required to meet the OCC requirements at this time. The formal agreement requires the bank to maintain a Tier 1 risk weighted capital ratio of 10.5 percent and a 6 percent Tier 1 capital ratio based on adjusted total assets. At March 31, 1992, the bank had risk based and adjusted Tier 1 capital ratios of 11.43 percent and 7.28 percent, respectively.
 The formal agreement requires the adoption of a written program to essentially reduce criticized assets, maintain adequate loan loss reserves, and improve loan administration, real estate appraisal, asset review, management and liquidity policies. Carpenter said, "While the formal agreement requires the bank to take these steps, and to limit the further extension of credit to borrowers whose loans are criticized, all of these things are just good banking practices which we endorse wholeheartedly. As noted in our annual report, the company anticipated entering into an agreement with the OCC based on the results of its examination conducted in August 1991, and has proceeded to strengthen its practices in anticipation."
 CU Bancorp and its subsidiary California United Bank, N.A. operates branches in Encino and Beverly Hills and a loan production office in Costa Mesa to offer a full range of commercial banking services to middle market businesses, the entertainment industry and high net worth individuals in southern California. The bank also offers mortgage banking service throughout California, including loan production offices in Orange County and San Jose.
 -0- 6/30/92
 /CONTACT: Stephen Carpenter, CEO of CU Bancorp, 818-907-9122; or Edmund R. Belak Jr. of Georgeson & Company, 212-440-9801, for CU Bancorp/
 (CUBN) CO: California United Bank, N.A.; CU Bancorp ST: California IN: FIN SU:


GK-LR -- NY069 -- 5225 06/30/92 13:51 EDT
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Publication:PR Newswire
Date:Jun 30, 1992
Words:466
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