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 ENCINO, Calif., Nov. 4 /PRNewswire/ -- The board of directors of CU Bancorp (NASDAQ: CUBN), holding company of California United Bank, National Association, announced today that the Office of the Comptroller of the Currency ("OCC"), the primary regulator of its bank subsidiary, has released the bank from the formal agreement under which it has operated since June 1992. The agreement was terminated following improvements in important performance categories and three consecutive quarters of profit during 1993.
 "We are extremely pleased with this OCC action, coming less than 18 months from commencement of the formal agreement," said Stephen G. Carpenter, chief executive officer. "We view the termination of this order as a vote of confidence for the board and new management, and a mandate to continue to conservatively and carefully manage the commercial banking organization and to build a strong balance sheet.
 "We have been successful in our efforts to build our reserve position, substantially reduce our non-performing assets and strengthen our balance sheet. It has taken a great of resolve and dedication on the part of every member of our employee team and the board of directors to effect the pace and depth of this turnaround of our organization. We are very proud of our team.
 "During the year, by focusing on credit quality and its core business lines, the bank has dramatically decreased its level of non- performing loans to $1 million at the end of third quarter, managed down from nearly $21 million at June 30, 1992, at inception of the formal agreement," continued Carpenter.
 The formal agreement required the bank to maintain certain capital levels, and adopt a written program to reduce criticized assets, maintain an adequate loan loss reserve and improve bank administration, real estate appraisal, asset review management and liquidity policies. It also required the bank to implement certain policies and procedures and restricted the payment of dividends.
 For the quarter ended Sept. 30, 1993, CU Bancorp had net income of $566,000. The Total Risk-Based Capital Ratio was 13.4 percent; the Tier 1 Risk-Based Capital Ratio was 12.2 percent; and the Tier 1 Leverage Ratio was 8.8 percent, all of which exceeded the requirements of the formal agreement.
 California United Bank offers a full range of commercial and personal banking products and services to middle market businesses, the entertainment industry and private banking individuals from its locations in Encino and Westwood, Calif.
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 /CONTACT: Patrick Hartman, CFO, of CU Bancorp, 818-379-1214/

CO: CU Bancorp ST: California IN: FIN SU:

JL-LM -- LA009 -- 0508 11/04/93 08:34 EST
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Publication:PR Newswire
Date:Nov 4, 1993

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