Printer Friendly

CU BANCORP REPORTS THIRD QUARTER AND NINE MONTHS RESULTS

 CU BANCORP REPORTS THIRD QUARTER AND NINE MONTHS RESULTS
 ENCINO, Calif., Oct. 13 /PRNewswire/ -- CU Bancorp (NASDAQ: CUBN), the parent of California United Bank N.A., reported net income of $135.8 thousand, or $0.03 per share, for its third quarter ended Sept. 30, 1992, compared with a net loss of $7 million, or $1.56 per share, for the comparable period of 1991.
 For the first nine months of 1992, CU Bancorp lost $2.76 million, or $0.63 per share, versus a net loss of $4.9 million or $1.10 per share for the corresponding nine month period of 1991. Per share amounts for both years are on a fully diluted basis, using average common shares and common share equivalents outstanding.
 Stephen G. Carpenter, president and chief executive officer, stated that performance for the third quarter and first nine months of 1992 resulted from a strategic move in previous quarters to build a strong balance sheet to provide a basis for the resumption of profitable operations.
 Loss provisions for the third quarter amounted to $370,000 as opposed to $12.2 million for the same period a year earlier and $7.5 million in 1992's second quarter. For the first nine months of the year, loan loss provisions totaled $8.9 million, versus $14.3 million in 1991. Mr. Carpenter stated, "previous decisions to augment loss reserves have allowed the company to post a marginally profitable third quarter. California United's revenue generating ability and strong capital position enabled the company to make the previous aggressive loss provisions, while continuing to maintain capital ratios above mandated minimums."
 The reserve for possible loan losses equalled to $11.1 million or 5.33 percent of gross loans and 7.13 percent of commercial loans outstanding at Sept. 30, 1992. This compares to $12.6 million and $18.1 million at Sept. 30, 1991 and June 30, 1992, respectively. In addition, virtually all of non-performing loans are covered by loss reserves. Net loan losses for the quarter and nine months were $8.3 million and $11.1 million, respectively. This compares to $4.5 million and $5.8 million for the comparable third quarter and nine months of 1991, respectively.
 Non accrual loans were $10.4 million at Sept. 30, 1992 versus $8.9 million a year ago and $20.2 million at the end of the second quarter of 1992. Loans ninety days past due and still accruing totaled $435,000 at the end of the current quarter. This represents a decrease from the $708,000 at the end of the previous 1992 quarter, a $2.5 million decline from a year ago and a $1.9 million drop from year-end 1991 levels. Other real estate owned totaled $3.3 million, declining from $4.8 million at the end of the second quarter, $6.1 million at year-end 1991 and $6.3 million at Sept. 30, 1991.
 Net interest income grew to $8.9 million for the 1991 third quarter and $26.4 million for the nine months, representing increases of $0.5 million and $2.5 million, respectively over the comparable periods of 1991. According to Mr. Carpenter, "the company's mortgage banking operations made up for more than all of the margin erosion experienced by the commercial banking division." As a beneficiary of the record low interest rate environment experienced during the first nine months of 1992, mortgage banking activity reached an all time high. On an operating basis, the division's contribution to pretax profits amounted to $2.9 million for the first three quarters of 1992, reflecting a 141.6 percent increase over the corresponding period of 1991. The growth of interest and loan fee income stemming from high mortgage demand, provided a natural counter cyclical hedge to the margin compression experienced by commercial banking in the current low rate environment. Additional margin enhancement of $1.4 million was driven by benefits of interest rate hedging transactions, which were entered into in 1991 in anticipation of yield erosion.
 Other operating revenues (exclusive of securities and trading gains) were $1.6 million and $4.4 million for the 1992 third quarter and first nine months, respectively. These amounts represent increases of 84.1 percent and 44.2 percent, respectively. As in the case of net interest income, the growth was also driven by increases in loan servicing, servicing gains, documentation and processing fees in mortgage banking.
 Total assets and deposits amounted to $454.1 million and $420.0 million, respectively at the end of the current quarter, declining slightly from the $473.9 million and $440.7 million a year ago. This shrinkage is in direct response to management's decision to reduce the company's risk exposure to problem assets, as well as a strategic redeployment of earning assets from high to low risk exposures. Shareholders' equity totaled $30.1 million, or $6.88 per outstanding share. Tier 1 leverage capital at the end of June was 7.72 percent of adjusted average assets and 12.4 percent on a risk adjusted basis. The latter represents an improvement of 20 basis points from 1992's second quarter and 160 basis points from year end 1991. The improvements in the risk based ratio stems from active balance sheet management and the desire to continually lower the company's risk exposure. Both ratios were well above mandated minimums at Sept. 30, 1992.
 California United Bank N.A. operates full service branches in Encino and Beverly Hills and a loan production office in Costa Mesa. Mortgage banking offices are located in San Jose, Sacramento and Orange County as well as in the Encino and Beverly Hills branch offices. The bank offers a full range of commercial banking services primarily to the middle market and entertainment business managers located in Southern California.
 CU BANCORP THIRD QUARTER EARNINGS
 Period ended Three months Nine months
 Sept. 30 1992 1991 1992 1991
 Revenue from
 earning assets $10,013,597 $10,704,924 $30,335,396 $31,151,536
 Cost of funds 1,123,516 2,308,161 3,902,419 7,207,572
 Net revenue from
 earning assets
 before provision
 for loan losses 8,890,081 8,396,763 26,432,977 23,943,964
 Provision for
 loan losses 370,000 12,230,828 8,914,966 14,266,830
 Net revenue from
 earning assets 8,520,081 (3,834,065) 17,518,011 9,677,134
 Gain (loss) on
 securities sales 0 0 616,821 22,053
 Gain (loss) on
 trading securities 246,648 0 384,554 0
 Other operating
 revenue 1,565,048 850,240 4,407,016 3,056,328
 Total non-interest
 income 1,811,696 850,240 5,408,391 3,078,381
 Salaries and related
 benefits 3,278,061 2,113,225 9,004,058 6,507,753
 Occupancy expense 374,813 318,612 1,059,134 923,829
 Other operating
 expense 6,496,594 6,483,979 17,084,387 13,711,796
 Total non-interest
 expense 10,149,468 8,915,816 27,147,579 21,143,378
 Income (loss) before
 provision for
 income taxes 182,309 (11,899,641) (4,221,177) (8,387,863)
 Provision for
 income taxes 46,500 (4,909,700) (1,462,400) (3,460,529)
 Net income (loss) 135,809 (6,989,941) (2,758,777) (4,927,334)
 Net income (loss)
 per share(A) 0.03 (1.56) (0.63) (1.10)
 Weighted average
 shares outstanding
 (A) 4,373,181 4,480,760 4,395,000 4,479,000
 Financial Ratios:
 ROA (annualized) 0.14 -5.90 -0.86 -1.42
 ROE (annualized) 1.81 -76.20 -11.48 -17.69
 Net interest margin 11.41 9.30 10.51 8.63
 Net loan losses
 to average loans 3.90 1.67 4.52 2.06
 Allowance to gross
 loans 5.33 5.03 5.33 5.03
 Teir 1 capital
 leverage ratio 7.72 6.66 7.72 6.66
 Selected Balance Sheet Data
 Total assets 454,079,345 473,895,990 454,079,345 473,895,990
 Interest-earning
 assets 358,709,296 365,329,280 358,709,296 365,329,280
 Interest-bearing
 liabilities 138,672,324 172,262,526 138,672,324 172,262,526
 Commercial
 loans 154,955,605 224,131,339 154,955,605 224,131,339
 Term federal
 funds sold 4,000,000 6,000,000 4,000,000 6,000,000
 Mortgage loans 52,903,261 26,303,233 52,903,261 26,303,233
 Allowance for
 loan losses 11,080,009 12,601,216 11,089,009 12,601,216
 Deposits 420,026,064 440,650,079 420,026,064 440,650,079
 Shareholders'
 equity 30,062,665 31,307,519 30,062,665 31,307,519
 Book value
 per share $6.88 $7.31 $6.88 $7.31
 (A) Fully diluted, using average common shares and equivalents outstanding.
 -0- 10/13/92
 /CONTACT: Robert Vecci of CU Bancorp, 818-907-9122, or Edmund R. Belak of Georgeson & Co., 212-440-9801, for CU Bancorp/
 (CUBN) CO: CU Bancorp ST: California IN: FIN SU: ERN


LD-OS -- NY071 -- 9507 10/13/92 16:40 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 13, 1992
Words:1522
Previous Article:HANNAFORD BROTHERS DECLARES REGULAR QUARTERLY DIVIDEND
Next Article:AGP AND COMPANY LISTED ON NASDAQ
Topics:


Related Articles
CU BANCORP RELEASED FROM FORMAL AGREEMENT WITH REGULATORS
CU BANCORP RELEASED FROM FORMAL AGREEMENT WITH REGULATORS
First Midwest Bancorp Reports Record Results: Third Quarter Up 12.5 Percent; Nine Months Up 15 Percent
Iroquois Bancorp Reports Third Quarter Earnings
CU Bancorp Reports Third Quarter Results, Announces 36 Percent Increase in Dividend
S&T Bancorp Announces Record Earnings
Capital Bancorp Reports Higher Third Quarter Net Income
First West Virginia Bancorp, Inc. Announces Third Quarter 1996 Earnings
Greater Bay Bancorp Reports Record Operating Results With a 37% Increase in Net Income and 35% Increase in Total Assets.
Peoples Bancorp Inc. Reports Increased Third Quarter Earnings.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters