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CU BANCORP REPORTS THIRD QUARTER PROFIT

 ENCINO, Calif., Oct. 20 /PRNewswire/ -- Jon P. Goodman, chairman of the board of CU Bancorp (NASDAQ: CUBN), announced today net income of $566,000, or $0.13 per share, for the third quarter ended Sept. 30, 1993. This compares to net income of $556,000, or $0.12 per share, for the second quarter, and a loss of $297,000, or $0.07 per share, for the third quarter of 1992. CU Bancorp is the holding company of California United Bank, N.A.
 "Our third consecutive quarter of increased profits reflects improved credit quality requiring reduced loan loss reserve allocation and successful efforts to reduce expenses of the commercial banking operation. Expenses of the mortgage banking operation continued to grow as volume increased," said Stephen G. Carpenter, president and chief executive officer. "As a result of our continued focus on credit quality and on our core business lines, non-performing loans were managed down to $1 million at the end of the third quarter from nearly $21 million in June 1992 when the new management team came on board."
 At Sept. 30, 1993, non-performing assets were $4.0 million, down $6.0 million, or 60 percent, from the prior quarter, and nearly $11 million, or 73 percent, below third quarter 1992. Non-performing assets are defined as nonaccrual loans (including all loans 90 days or more delinquent) and foreclosed or in substance foreclosed real estate. The company's nearly $6.0 million reserve for loan losses at the end of third quarter 1993 was 536 percent of non-performing loans and 142 percent of non-performing assets, compared to second quarter 1993 reserve levels of 118 percent of non-performing loans and 77 percent of non-performing assets.
 The bank's capital ratios remained strong and well above mandated levels during the quarter. At Sept. 30, 1993, the bank had a Total Risk-Based Capital Ratio of 13.4 percent; Tier 1 Risk-Based Capital Ratio of 12.2 percent; and Tier 1 Leverage Ratio of 8.8 percent, all increased from the second quarter 1993 and year-end 1992 levels.
 "Our opportunities for growth are substantial," said Carpenter. "Our balance sheet is strong, and we are seeing expansion in our commercial banking operation, where our expertise in the middle market has generated significant new loan commitments year-to-date. We are finding many opportunities in the middle market and are experiencing strong response from that marketplace."
 CU Bancorp annc?ed earlier this month that it had signed a letter of intent to sell certain assets of the bank's mortgage banking division to Republic Bancorp of Ann Arbor, Mich. Finalization of the transaction is subject to execution of a definitive agreement. The residential mortgage banking operation services customers throughout California from offices in Calabasas, Irvine, Tustin, Sacramento, San Jose and Pasadena. The bank will retain its mortgage servicing portfolio. The transaction is expected to close in the fourth quarter of 1993.
 Total assets at Sept. 30, 1993, were $296.6 million, compared with $461.7 million at Sept. 30, 1992. Shareholders' equity totaled $26.3 million, or $5.97 per share, at Sept. 30, 1993, compared to $29.6 million, or $6.79 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.
 CU BANCORP
 Consolidated Statements of Income
 (Amounts in thousands of dollars)
 For the three months For the nine months
 ended Sept. 30, ended Sept. 30,
 1993 1992 1993 1992
 Revenue from earning assets 4,856 5,790 14,660 19,832
 Cost of funds 1,013 1,115 3,173 3,878
 Net revenue from earning
 assets before provision
 for loan losses 3,843 4,675 11,487 15,954
 Provision for loan losses 150 745 450 9,290
 Net revenue from
 earning assets 3,693 3,930 11,037 6,664
 Gain on securities sales 0 246 77 1,002
 Other income 8,241 5,791 18,498 14,910
 Total non-interest income 8,241 6,037 18,575 15,912
 Salaries and
 related benefits 2,868 3,263 8,129 8,953
 Other expense 8,119 7,177 18,957 18,499
 Total non-interest expense 10,987 10,440 27,086 27,452
 Income before taxes 947 (473) 2,526 (4,876)
 Taxes on income 381 (176) 1,019 (1,685)
 Net income 566 (297) 1,507 (3,191)
 Earnings per share $0.13 ($0.07) $0.34 ($0.73)
 Average shares, outstanding 4,523 4,373 4,450 4,395
 CU BANCORP
 Selected Financial Data
 (Amounts in thousands of dollars)
 9/30/93 12/31/92 9/30/92
 Capital Ratios (bank level)
 Total risk-based capital 13.4 pct. 12.9 pct. 13.6 pct.
 Tier 1 risk-based capital 12.2 pct. 11.6 pct. 12.4 pct.
 Tier 1 leverage capital 8.8 pct. 6.1 pct. 7.5 pct.
 Asset Quality
 Allowance for loan losses 5,709 12,986 10,341
 Non-performing loans 1,065 8,978 11,090
 Non-performing assets 4,034 13,630 14,383
 Allowance for loan losses to:
 Total loans 2.71 pct. 6.43 pct. 4.70 pct.
 Non-performing loans 536 pct. 144 pct. 93.3 pct.
 Non-performing assets 142 pct. 96 pct. 71.9 pct.
 Performance Ratios
 Return on average
 shareholders' equity 7.96 pct. (26.06 pct.) (13.86 pct.)
 Return on average assets 0.65 pct. (1.89 pct.) (0.89 pct.)
 Common Stock Data
 Earnings per share --
 Year to Date $0.34 ($1.90) ($0.73)
 Book value per share $5.97 $5.64 $6.79
 Market price (bid) $6.00 $3.25 $4.75
 Common shares outstanding 4,412 4,367 4,395
 CU BANCORP
 Consolidated Statements of Financial Condition
 (Amounts in thousands of dollars)
 9/30/93 12/31/92
 Assets
 Cash and due from banks 20,934 55,989
 Federal funds sold 10,000 0
 Cash and cash equivalents 30,934 55,989
 Investment securities 31,380 88,080
 Net loans 217,177 188,991
 Other real estate owned 2,968 4,652
 Premises and equipment, net 1,898 2,035
 Accrued interest receivable
 and other assets 12,223 14,176
 Total assets 296,580 353,923
 Liabilities and Shareholders' Equity
 Deposits:
 Demand 144,731 198,878
 Savings 68,641 74,849
 Certificates of deposit 47,851 44,847
 Total deposits 261,223 318,574
 Accrued interest payable
 and other liabilities 9,028 10,717
 Total liabilities 270,251 329,291
 Shareholders' equity:
 Common stock 26,180 25,990
 Retained earnings (deficit) 149 (1,358)
 Total shareholders' equity 26,329 24,632
 Total liabilities
 and shareholders' equity 296,580 353,923
 -0- 10/20/93
 /CONTACT: Patrick Hartman, CFO of CU Bancorp, 818-379-1214/
 (CUBN)


CO: CU Bancorp; California United Bank N.A. ST: California IN: FIN SU: ERN

JL-LM -- LA014 -- 4482 10/20/93 10:33 EDT
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Date:Oct 20, 1993
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