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CU BANCORP REPORTS SECOND QUARTER PROFIT

 ENCINO, Calif., July 14 /PRNewswire/ -- CU Bancorp (NASDAQ: CUBN), holding company of California United Bank, N.A., today reported net income of $556,000, or $0.12 per share, for the second quarter ended June 30, 1993. This compares to net income of $384,000, or $0.09 per share for the first quarter, and a net loss of $3,489,000, or $0.80 per share, for the second quarter of 1992.
 "Our strong performance in the second quarter continues to reflect the decisive steps taken last year to improve our credit quality, reduce our cost structure and improve our deposit mix," said Stephen G. Carpenter, president and chief executive officer. "We have been very successful in our efforts to streamline our organization, refocusing important resources on the core, profitable business lines that distinguish California United Bank in the business marketplace."
 At June 30, 1993, non-performing assets were down $15.9 million to less than $10.0 million, over 61 percent below the same period in the prior year, and $1.0 million, or 9.5 percent from first quarter 1993. 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 second quarter 1993 was 4.06 percent of loans, compared to 8.44 percent for the same period a year earlier, and 5.33 percent at the end of first quarter. Reserves at the end of the second quarter of 1993 were 118 percent of non-performing loans and 77 percent of non- performing assets, compared to year-end 1992 reserve levels of 145 percent of non-performing loans and 96 percent of non-performing assets.
 At June 30, 1993, the bank had a Total Risk-Based Capital Ratio of 13.4 percent; Tier 1 Risk-Based Capital Ratio of 12.1 percent; and Tier 1 Leverage Ratio of 8.1 percent, all increased from the first- quarter 1993 and year-end 1992 levels, and all well above mandated minimums.
 "We are extremely satisfied with the continued progress of our organization," said Carpenter. "The reduction of non-performing assets is moving ahead and on track, and CUB's balance sheet is strong, reflecting our solid capital position, healthy reserves and continued growth in our well-defined, profitable business units. Our Mortgage Banking Group remains a strong contributor in an economic environment which continues to be sluggish. We have complemented that business with a strong Southern California Commercial Banking team, and have earned recognition and respect as a premier middle market relationship bank.
 "We're adding significant and important new business banking relationships at an accelerated pace that exceeds our expectations," said Carpenter, "which is further evidence that California United is profitably and successfully making the transition to a commercial banking organization.
 "Building on this foundation," said Carpenter, "California United Bank is well positioned to aggressively cultivate the markets we understand best and that offer substantial opportunity for growth and profitability. We are optimistic about the future, as we continue to build our business on behalf of our shareholders."
 Total assets at June 30, 1993, were $331 million, compared with $435 million at June 30, 1992. Shareholders' equity totaled $25.8 million, or $5.84 per share, at June 30, 1993, compared to $29.7 million, or $6.78 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. 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)
 6/30/93 12/31/92 6/30/92
 Capital Ratios (Bank Level)
 Total risk-based capital 13.4 pct. 12.9 pct. 13.4 pct.
 Tier 1 risk-based capital 12.1 pct. 11.6 pct. 12.2 pct.
 Tier 1 leverage capital 8.1 pct. 6.1 pct. 6.8 pct.
 Asset Quality
 Allowance for loan losses 7,734 12,986 18,147
 Non-performing loans 6,530 8,978 21,115
 Non-performing assets 9,988 13,547 25,888
 Allowance for loan losses to:
 Total loans 4.06 pct. 6.43 pct. 8.44 pct.
 Non-performing loans 118 pct. 145 pct. 86 pct.
 Non-performing assets 77 pct. 96 pct. 70 pct.
 Performance Ratios
 Return on average
 shareholders' equity 7.50 pct. (26.06 pct.) (17.50 pct.)
 Return on average assets 0.60 pct. (1.89 pct.) (1.31 pct.)
 Common Stock Data
 Earnings per share $0.21 ($1.90) $0.66
 Book value per share $5.84 $5.64 $6.78
 Market price (bid) $5.31 $3.25 $4.25
 Common shares outstanding 4,412 4,367 4,382
 CU BANCORP
 Consolidated Statements of Income
 (Amounts in thousands of dollars)
 For the three months For the six months
 ended June 30, ended June 30,
 1993 1992 1993 1992
 Revenue from earning assets 4,938 6,810 9,804 14,121
 Cost of funds 1,118 1,268 2,179 2,779
 Net revenue from earning
 assets before provision
 for loan losses 3,820 5,542 7,625 11,342
 Provision for loan losses 150 7,538 300 8,545
 Net revenue from
 earning assets 3,670 (1,996) 7,325 2,797
 Gain on securities sales 0 755 77 755
 Other income 5,742 4,859 10,014 9,043
 Total non-interest income 5,742 5,614 10,091 9,798
 Salaries and
 related benefits 2,823 2,974 5,262 5,726
 Other expense 5,654 6,039 10,576 11,272
 Total non-interest expense 8,477 9,013 15,838 16,998
 Income before taxes 936 (5,395) 1,578 (4,403)
 Taxes on income 380 (1,906) 638 (1,509)
 Net income 556 (3,489) 940 (2,894)
 Earnings per share $0.12 ($0.80) $0.21 ($0.66)
 Average shares, outstanding 4,432 4,382 4,414 4,382
 CU BANCORP
 Consolidated Statements of Financial Condition
 (Amounts in thousands of dollars)
 6/30/93 12/31/92 6/30/92
 Assets
 Cash and due from banks 44,370 55,989 91,845
 Federal funds sold 45,000 0 43,000
 Cash and cash equivalents 89,370 55,989 134,845
 Investment securities 32,794 88,079 82,642
 Net loans 189,185 188,991 196,852
 Other real estate owned 3,458 4,652 4,773
 Premises and equipment, net 1,875 2,035 1,861
 Accrued interest receivable
 and other assets 14,318 14,176 14,099
 Total assets 331,000 353,922 435,072
 Liabilities and Shareholders' Equity
 Deposits:
 Demand 168,419 198,878 344,751
 Savings 72,608 74,849 16,899
 Certificates of deposit 55,934 44,847 40,695
 Total deposits 296,961 318,574 402,345
 Accrued interest payable
 and other liabilities 8,277 10,717 3,019
 Total liabilities 305,238 329,291 405,364
 Shareholders' equity:
 Common stock 26,180 25,989 25,771
 Retained earnings (deficit) (418) (1,358) 3,937
 Total shareholders' equity 25,762 24,631 29,708
 Total liabilities
 and shareholders' equity 331,000 353,922 435,072
 -0- 7/14/93
 /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

JB-BP -- LA005 -- 1352 07/14/93 11:35 EDT
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