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CU BANCORP SIGNS LETTER OF INTENT TO SELL CERTAIN MORTGAGE BANKING ASSETS

 ENCINO, Calif., Oct. 1 /PRNewswire/ -- CU Bancorp (NASDAQ: CUBN), the parent of California United Bank, announced today that the Bank has entered into a letter of intent to sell certain assets of the Bank's mortgage banking division to Republic Bancorp of Ann Arbor, Mich. The assets include the Bank's mortgage origination network, its mortgage loan production offices, and certain other assets. The Bank will retain its mortgage servicing portfolio. The completion of the transaction is subject to preparation and execution of a definitive agreement and the fulfillment of several conditions, including certain licensing requirements. CU Bancorp expects the transaction to close in the fourth quarter of 1993.
 Stephen G. Carpenter, chief executive officer of California United Bank, said that the exact price has yet to be determined but that it was expected to combine both immediate payments and longer term payments based on profitability of the mortgage banking division on an ongoing, stand-alone basis. The purchase price will not include the value of the Bank's servicing portfolio which will be retained by the Bank following the transaction. The managers of the mortgage banking division, Douglas E. Jones and Daniel M. LuVisi, are expected to be employed by Republic after the close of the transaction to manage Republic's California mortgage business.
 The Bank's mortgage division has six loan production offices in California and for the nine months ended Sept. 30, 1993, funded approximately $738,000,000 in single family mortgages.
 California United Bank 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, Calif. The Bank's residential mortgage banking operation services customers throughout California from offices in Calabasas, Irvine, Tustin, Sacramento, San Jose, and Pasadena.
 -0- 10/1/93
 /CONTACT: Patrick Hartman, CFO, CU Bancorp, 818-379-1214/
 (CUBN)


CO: CU Bancorp; Republic Bancorp ST: California, Michigan IN: FIN SU: TNM

JB-LS -- LA007 -- 7634 10/01/93 08:27 EDT
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Publication:PR Newswire
Date:Oct 1, 1993
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