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CU BANCORP REPORTS 1991 FOURTH QUARTER AND YEAR END RESULTS

 CU BANCORP REPORTS 1991 FOURTH QUARTER AND YEAR END RESULTS
 ENCINO, Calif., Jan. 28 /PRNewswire/ -- CU Bancorp (NASDAQ: CUBN), the holding company for California United Bank, N.A., today reported net income of $1.3 million or $.28 per share for the fourth quarter of 1991 ended Dec. 31, 1991. The results were equal to the $1.3 million and $.28 per share reported for the year ago quarter.
 As previously announced the company reported a loss for the year ended Dec. 31, 1991 of $3.6 million, or $.83 per share compared with net income of $5.9 million, or $1.28 per share, earned for all of 1990. Earnings per share were adjusted to reflect a 6 for 5 split that occurred on May 5, 1990.
 John J. Keating, president and chief executive officer, noted that, "the 1991 fourth quarter performance indicates a return to the bank's normal operating profitability that has been historically driven by our relationship banking strategy and boosted by mortgage banking operations." CU Bancorp's 1991 performance was impacted by the board's decision to increase the 1991 total provision for possible loan losses and real estate owned to $14.3 million during the third quarter. At 1990 year end the company had $3.7 million in total provisions.
 Keating also mentioned that the loss provision, which reflected CU Bancorp's conservative management approach, was made possible by the bank's solid capital position and strong balance sheet which, besides loans is comprised primarily of U.S. Government securities, agencies, cash and fed funds sold. At Dec. 31, 1991 CU Bancorp had a Tier 1 regulatory capital ratio of 6.55 percent, a Tier 1 risk based capital ratio in excess of 10 percent and a total risk based capital ratio of between 11 percent and 12 percent.
 Total non-performing loans were $14.9 million, or 5.38 percent of total loans at Dec. 31, 1991 and were comprised of $2.2 million of loans that were 90 days past due and $12.7 million of non-accrual loans. At the end of the 1991 third quarter total non-performing loans were $11.9 million.
 Net loan losses for the 1991 fourth quarter were $233 thousand, compared with $4.5 million for the third quarter, and $6.0 million for all of 1991.
 Net interest income before the provision for loan losses was $8.1 million for the 1991 fourth quarter, up slightly from the $7.9 million for the year ago quarter. For all of 1991, net interest income, before loan loss provisions, was $32.0 million, versus $31.8 million for 1990. "We were able to show positive results from our core operations despite a declining interest rate structure that compressed our margins throughout the year," added Keating. The bank reported a net interest margin of 9.24 percent inclusive of loan fees for 1991, compared with 8.67 percent for 1990.
 Other operating revenue, driven principally by the bank's mortgage banking operations and exclusive of securities gains, was $1.1 million for the fourth quarter and $4.2 million for the year ended Dec. 31, 1991, compared with $1 million and $4.1 million for the comparable 1990 periods.
 "We are confident that CU Bancorp is solidly positioned to maintain a strong capitalization in 1992 and look forward to consistent results from both our mortgage banking and commercial operations," said Keating.
 Total assets were $497.9 million at Dec. 31, 1991, compared with $476.2 million at Dec. 31, 1990 and $473.9 million at the end of the 1991 third quarter.
 Shareholders' equity totalled $32.6 million, or $7.61 per share at Dec. 31, 1991, versus $36.6 million, or $8.60 per share at 1990 year end.
 CU Bancorp and its subsidiary, California United Bank, N.A., were formerly known as Lincoln Bancorp and Lincoln National Bank, respectively. With branches in Encino and Beverly Hills and a loan production office in Costa Mesa, the company offers a full range of commercial banking services primarily to middle market businesses and entertainment business managers based in southern California.
 CU BANCORP
 Three months ended Dec. 31 1991 1990
 Revenue from earning assets 9,973 10,609
 Cost of funds 1,917 2,674
 Net revenue from earning assets
 before provision for loan losses 8,056 7,935
 Provision for loan losses 0 1,450
 Net revenue from earning assets 8,056 6,485
 Gain (loss) on securities sales 0 115
 Other operating revenue 1,109 1,027
 Total non-interest income 1,109 1,142
 Salaries and related benefits 2,189 1,831
 Occupancy expense 307 317
 Other operating expanse 4,173 3,349
 Total non-interest expense 6,669 5,497
 Income/(loss) before provision
 for income taxes 2,496 2,130
 Provision for income taxes 1,206 849
 Net income/(loss) 1,290 1,281
 Net income/(loss) per share(A) $0.28 $0.28
 Weighted average share O/S(A) 4,361 4,597
 CU BANCORP
 Financial Ratios (In percent)
 Three months ended Dec. 31 1991 1990
 ROA (annualized) 1.13 1.16
 ROE (annualized) 15.96 13.60
 Net interest margin 9.24 8.67
 Nat loan losses to average loans 0.09 0.74
 Allowance to gross loans 4.67 1.42
 Tier 1 Capital Ratio (Period End) 6.55 7.69
 Tier 1 Capital Ratio (Average) 7.08 8.51
 CU BANCORP
 Year ended Dec. 31 1991 1990
 Revenue from earning assets 41,125 42,920
 Cost of funds 9,112 11,147
 Net revenue from earning assets
 before loan provision for loan losses 32,013 31,773
 Provision for loan losses 14,267 3,650
 Net revenue from earning assets 17,746 28,123
 Gain (loss) on securities sales 22 204
 Other operating revenue 4,165 4,097
 Total non-interest income 4,187 4,301
 Salaries and related benefits 8,697 8,032
 Occupancy expense 1,231 1,181
 Other operating expanse 17,897 13,339
 Total non-interest expense 27,825 22,552
 Income/(loss) before provision
 for income taxes (5,892) 9,872
 Provision for income taxes (2,255) 4,009
 Net income/(loss) (3,637) 5,863
 Net income/(loss) per share(A) ($0.83) $1.27
 Weighted average share O/S(A) 4,361 4,597
 CU BANCORP
 Financial Ratios (In percent)
 Year ended Dec. 31 1990 1991
 ROA (annualized) -0.79 1.31
 ROE (annualized) -9.94 16.85
 Net interest margin 8.79 8.58
 Nat loan losses to average loans 2.13 0.96
 Allowance to gross loans 4.67 1.42
 Tier 1 Capital Ratio (Period End) 6.55 7.69
 Tier 1 Capital Ratio (Average) 7.93 7.76
 CU BANCORP
 Selected Balance Sheet Data
 At Dec. 31 1991 1990
 Total assets 498,024 476,229
 Interest-earning assets 422,258 406,821
 Interest-bearing liabilities 150,087 169,159
 Commercial loans 217,219 257,760
 Term federal funds sold 12,000 15,000
 Mortgage loans held for sale 47,489 32,157
 Allowance for loan losses 12,367 4,128
 Deposits 462,766 437,063
 Shareholders' equity 32,598 36,600
 Book value per share $7.61 $8.60
 -0- 1/28/92
 /CONTACT: John Keating of CU Bancorp, 818-907-9122, or Edmund R. Belak Jr., of Georgeson & Co., 212-440-9801, for CU Bancorp/
 (CUBN) CO: CU Bancorp ST: California IN: FIN SU: ERN


KD-SO -- NY088 -- 4433 01/28/92 17:05 EST
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