Featuring: publicly traded & venture capital companies on the U.S. (NYSE, NASDAQ, AMEX & OTC: BB) and Canadian (TSX & TSX-V) stock exchanges, Investment & Money Management Ideas. |
|
|
Press Release - California United Bank (CUNB-OTC: BB) |
|
|
Exceeding Their Growth Goals, California United Bank Is Right On Track With The Aggressive Business Plan Established When They Opened Their Doors Five Years Ago (Interview published March 5, 2010) |
The Most Powerful Name In Corporate News and Information. |
|
CURRENT ISSUE | COVER ARCHIVES | INDEX | CONTACT | FINANCIALS | MARKETING SERVICES | HOME PAGE |
|
California United Bank Announces 32.1% Increase in Total
Deposits, 17.3% Increase in Net Income for 1st Quarter 2010
ENCINO, Calif., Apr
23, 2010 (BUSINESS WIRE) --
California United Bank (OTCBB: CUNB) today announced financial results for the quarter ended March 31, 2010. First Quarter 2010 Highlights -- Record total assets of $487.0 million, an increase of 18.0% from March 31, 2009 -- Total deposits of $370.5 million, an increase of 32.1% from March 31, 2009 -- Non-interest-bearing deposits of $117.3 million, an increase of 28.9% from the first quarter of 2009 -- Net income of $237 thousand, an increase of 17.3% from the first quarter of 2009 -- Loans of $272.6 million, an increase of 16.5% from March 31, 2009 -- Net interest income of $4.5 million, an increase of 9.1% from first quarter of 2009 -- Capital Ratios continued to exceed all regulatory requirements to be "well-capitalized ": Minimum Capital to Be Considered CUB
"Well-Capitalized"
Total Risk-Based Capital Ratio 10 % 17.28 %
Tier 1 Risk-Based Capital Ratio 6 % 16.03 %
Tier 1 Leverage Capital Ratio 5 % 12.65 %
First Quarter 2010 Results For the first quarter of 2010, California United Bank reported net income of $237 thousand, compared to net income of $202 thousand for the first quarter of 2009. Diluted earnings per share for the first quarter of 2010 were $0.05, compared with diluted earnings per share of $0.04 in the same period of 2009. "We experienced solid growth in both non-interest-bearing deposits and total deposits during the first quarter of 2010, which fueled improved interest income and net profit," said David Rainer, Chairman, President and Chief Executive Officer. "At the same time, we generated a significant expansion of the CUB footprint through the addition of key senior relationship management personnel. "The first quarter was marked by many important strategic initiatives," Mr. Rainer continued. "We opened a new loan production office serving Glendale and the San Gabriel Valley led by Ted Vournas, Senior Vice President and Regional Manager, and announced plans to expand into the Santa Monica market with the addition of Paul Verdon as Senior Vice President and Regional Manager. We also enhanced our commercial banking services with the addition of Senior Vice President David Peskin, who will be based in our Los Angeles office. In order to support our continued growth, we added Jane Weblemoe as Senior Vice President, Credit Administrator, which will enable the Bank to help meet the increased demand for unique, relationship-driven services." Net interest income for the quarter ended March 31, 2010, increased 9.1% from the prior year, to $4.5 million, due to the increase in interest income of $0.4 million. The increase in interest income was the result of the increase in loans year-over-year. This was partially offset by a decrease in interest on investment securities stemming from a reduction in the Bank's total investment securities, compared with the first quarter of 2009. Interest and fees on loans was $3.5 million, an increase of 20.0% from $2.9 million a year ago. The increase resulted from a 16.5% increase in loans, net of fees, from March 31, 2009. Interest income on investment securities was $1.6 million, compared to $1.8 million in the first quarter of 2009, as a result of a decline in the average balance of investment securities from the prior year. The Bank increased cash and cash equivalents by $62.8 million from March 31, 2009, in order to prepare for an improving economy and an overall market interest rate increase. Total interest income for the quarter increased 8.1% to $5.1 million from $4.7 million a year ago. Interest expense for deposit accounts in the first quarter of 2010 was $0.4 million, an increase of 23.8% from $0.3 million in the prior-year period. Interest expense on borrowings declined 31.5% to $170 thousand from $248 thousand in the same quarter of 2009. For the same period, total borrowings, including repurchase agreements, declined $16.7 million, or 22.5%. Total interest expense was essentially unchanged from a year ago at $0.6 million, as the volume of funding sources increased but was offset by the positive effect of an increase in non-interest-bearing deposits. Net interest income was $4.5 million in the quarter ended March 31, 2010, an increase of 9.1% from $4.2 million in the year-ago period. The Bank's net interest margin was 4.13%, compared with net interest margin of 4.58% a year ago. The decline in net interest margin resulted from loan growth at a slower rate than the growth in core deposits. The Bank's loans, as a percentage of total deposits, declined to 73.6% of deposits on March 31, 2010, from 83.4% of deposits on March 31, 2009. Net interest income after the provision for loan losses increased 24.7% to $4.3 million from $3.5 million a year ago. The increase stemmed from an increase in interest-earning assets, when compared to the first quarter of 2009, and a reduction in the provision for loan losses. Total non-interest income increased to $0.2 million from $2 thousand a year ago. In the first quarter of 2009, total non-interest income included impairment losses on securities of $0.2 million. Total non-interest expense was $4.2 million, compared to $3.1 million in the same quarter of 2009. The increase was attributable in part to the Bank's investment in additional relationship management personnel and related expense of additional office space, as well as additional costs associated with the increased number of deposit accounts for data processing, FDIC insurance and customer services. Net income before provision for income tax expense was $420 thousand in the quarter ended March 31, 2010, an increase of 17.3% from $358 thousand a year ago. For the first quarter of 2010, income tax expense was $183 thousand, compared to $156 thousand a year ago. Credit Quality As of March 31, 2010, the allowance for loan losses was $5.0 million, compared to $4.8 million at December 31, 2009, and $3.5 million a year ago. The level of the allowance for loan losses reflects growth in the Bank's loan portfolio and continued economic uncertainty. There were no charge-offs for the first quarter of 2010. The Bank had no REOs and one loan in foreclosure at March 31, 2010. At March 31, 2010, the Bank had $5.3 million in non-performing loans, or 1.93% of outstanding loans. Private Issue CMO Securities were $5.8 million at March 31, 2010, a decline of 4.4% from $6.0 million at March 31, 2009. Pre-payments on these securities remained strong during the first quarter of 2010. Asset Growth At March 31, 2010, total assets were $487.0 million, an increase of 18.0% from March 31, 2009. The increase in total assets was funded from the increases in core deposits net of a decline in borrowings. Deposit Growth Total deposits were $370.5 million at March 31, 2010, an increase of 32.1% from March 31, 2009. The growth in deposits was the result of new core banking relationships and increased deposits from existing customers. Non-interest-bearing deposits increased 28.9% to $117.3 million, or 31.7% of total deposits, from $91.0 million a year ago. The Bank does not engage in any advertising of its certificate of deposit products. Borrowings were $8.0 million at March 31, 2010, unchanged from December 31, 2009, but reduced from $54.0 million on March 31, 2009. "Our relationship-driven model and focus on new customer acquisition yielded significant results during the quarter," Mr. Rainer said. "The increase in non-interest-bearing deposits has allowed us to grow the balance sheet with just a minimal increase in interest expense." Capital Position At March 31, 2010, capital ratios exceeded all regulatory requirements to be "well-capitalized" (the highest level determined by the regulatory agencies). About the Bank California United Bank provides a full range of financial services, including credit and deposit products, cash management, and Internet banking for business, professionals and high net worth individuals. The Bank operates from its headquarters office at 15821 Ventura Boulevard, Suite 100, Encino, CA 91436; Los Angeles Regional Office at 1640 South Sepulveda Boulevard, Suite 114, Los Angeles, CA 90025; Santa Clarita Valley Regional Office at 25350 Magic Mountain Parkway, Suite 100, Valencia CA 91355, Conejo Valley Loan Production Office at 4333 Park Terrace Drive, Suite 215, Westlake Village, CA 91361, South Bay Commercial Center at 1025 W. 190th Street, Gardena, CA 90248 and Glendale/San Gabriel Valley Loan Production Office at 801 N. Brand Blvd, Suite 610, Glendale, CA 91203. To view the Bank's most recent financial information, please visit the Investor Relations section of the Company's Web site. Information on products and services may be obtained by calling (818) 257-7700 or visiting the Bank's Web site at www.californiaunitedbank.com. SAFE-HARBOR LANGUAGE This news release contains forward-looking statements about the Bank, for which the Bank claims the protection of the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management's knowledge and belief as of today and include information concerning the Bank's possible or assumed future financial condition, and its results of operations, business and earnings outlook. These forward-looking statements are subject to risks and uncertainties. A number of factors, some of which are beyond the Bank's ability to control or predict, could cause future results to differ materially from those contemplated by such forward-looking statements. These factors include (1) difficult and adverse conditions in the global and domestic capital and credit markets, (2) continued volatility and further deterioration of the capital and credit markets, (3) significant changes in banking laws or regulations, (4) a more adverse than expected decline or continued weakness in general business and economic conditions, which may affect, among other things, the level of nonperforming assets, charge-offs and provision expense, (5) changes in market rates and prices which may adversely impact the value of financial products, (6) changes in the interest rate environment and market liquidity which may reduce interest margins and impact funding sources, (7) increased competition in the Bank's markets, (8) changes in the financial performance and/or condition of the Bank's borrowers, (9) increases in Federal Deposit Insurance Corporation premiums due to market developments and regulatory changes, (10) earthquake, fire, pandemic or other natural disasters, (11) changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies, and (12) the success of the Bank at managing the risks involved in the foregoing. Forward-looking statements speak only as of the date they are made, and the Bank does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the statements are made, or to update earnings guidance, including the factors that influence earnings. For a more complete discussion of these risks and uncertainties, see the Bank's Annual Report on Form 10-K for the year ended December 31, 2009, and particularly Part I, Item 1A, titled "Risk Factors." CALIFORNIA UNITED BANK
BALANCE SHEETS
(Dollars in thousands)
March 31, March 31, December 31,
2010 2009 2009
Unaudited Unaudited Audited
Assets:
Cash and Due From Banks $ 6,422 $ 23,560 $ 8,001
Federal Funds Sold - - 6,065
Interest Earning Deposits In Other Financial Institutions 91,621 11,698 54,565
Total Cash and Cash Equivalents 98,043 35,258 68,631
U.S. Govt & U.S. Sponsored Agency Guaranteed Mortgage-Backed 46,373 83,019 50,160
Securities
Private Issue CMO Securities 5,781 6,047 5,479
U.S. Govt Agency Securities 52,656 45,086 56,688
SBA Issued Securities 877 981 912
Total Investment Securities 105,687 135,133 113,239
Total Investment Securities, Cash & Cash Equivalents 203,730 170,391 181,870
Loans Net of Deferred Loan Fees 272,584 234,052 263,421
Allowance for Loan Losses (4,950 ) (3,540 ) (4,753 )
Loans Net of Allowance for Loan Losses 267,634 230,512 258,668
Total Other Assets 15,598 11,710 16,199
Total Assets $ 486,962 $ 412,613 $ 456,737
Liabilities:
Non-Interest-Bearing Demand Deposits $ 117,307 $ 91,041 $ 102,360
Interest-Bearing Demand Deposits (NOW Deposits) 57,449 34,726 57,502
Money Market Deposits 132,495 88,395 121,569
Savings Deposits 948 1,525 869
Certificates of Deposit 62,277 64,856 63,991
Total Interest Bearing Deposits 253,169 189,502 243,931
Total Deposits 370,476 280,543 346,291
Securities Sold Under Agreements to Repurchase 49,377 20,030 45,137
Borrowings 8,000 54,000 8,000
Total Deposits & Borrowings 427,853 354,573 399,428
Accrued Interest Payable and Other Liabilities 1,564 1,546 1,407
Total Liabilities 429,417 356,119 400,835
Shareholders' Equity
Common Stock 56,901 56,831 56,901
Additional Paid in Capital 3,959 3,446 3,853
Prior Year Accumulated Deficit (2,619 ) (3,364 ) (3,364 )
Current Year-to-Date Income 237 202 745
Accumulated Other Comprehensive (Loss) (933 ) (621 ) (2,233 )
Total Shareholders' Equity 57,545 56,494 55,902
Total Liabilities & Shareholders' Equity $ 486,962 $ 412,613 $ 456,737
CALIFORNIA UNITED BANK
STATEMENTS OF INCOME
For the Three Months Ended March31, 2010 and March31, 2009
(Dollars in thousands except per share data)
For the three months ended
March 31, March 31,
2010 2009
Unaudited Unaudited
Interest Income:
Interest and Fees on Loans $ 3,525 $ 2,938
Interest on Federal Funds Sold 1 4
Interest on Deposits in Other Financial Institutions 39 27
Interest on Investment Securities 1,566 1,779
Total Interest Income 5,131 4,748
Interest Expense:
Interest on Savings & Interest-Bearing Demand Deposit Accounts 74 47
Interest on Money Market Accounts 194 122
Interest on Certificates of Deposit 154 172
Interest on Securities Sold Under Agreements to Repurchase and 170 248
Borrowings
Total Interest Expense 592 589
Net Interest Income 4,539 4,159
Provision for Loan Losses 196 675
Net Interest Income After Provision for Loan Losses 4,343 3,484
Non-Interest Income:
Gain on sale of investment securities - 2
Non-interest Income 238 226
Impairment losses on securities - (226 )
Total Non-Interest Income 238 2
Non-Interest Expense:
Salaries and Employee Benefits 2,465 1,759
Stock Based Compensation Expense 107 182
Occupancy Expenses 601 473
Other Operating Expenses 988 714
Total Non-Interest Expense 4,161 3,128
Net Income before Provision for Income Tax 420 358
Provision for Income Taxes 183 156
Net Income $ 237 $ 202
Basic earnings per share $ 0.05 $ 0.04
Diluted earnings per share $ 0.05 $ 0.04
Averages shares outstanding 4,969,722 4,948,450
Diluted average shares outstanding 5,029,900 4,948,450
CALIFORNIA UNITED BANK
Supplemental Data
(Dollars in thousands)
March 31, December 31, March 31,
2010 2009 2009
Unaudited Audited Unaudited
Capital Ratios Table:
Tier 1 leverage ratio 12.65 % 12.67 % 14.72 %
Tier 1 risk based capital ratio 16.03 % 16.25 % 18.31 %
Total risk-based capital ratio 17.28 % 17.50 % 19.48 %
Asset Quality Table:
Loans on non-accrual $ 5,253 $ 5,128 $ 0
Loans 30 days or more past due on accrual status 48 0 0
Other Real Estate Owned 0 0 0
Total non-accrual loans, loans 30 days or more past due on accrual $ 5,301 $ 5,128 $ 0
status and Other Real Owned
Net charge-offs (Recoveries) year to date $ (1 ) $ 1,913 $ 340
Loans on non-accrual as a % of total loans 1.93 % 1.95 % 0.00 %
Loans 30 days or more past due on accrual status as a % of total 0.02 % 0.00 % 0.00 %
loans
Total non-accrual loans, loans 30 days or more past due on accrual 1.09 % 1.12 % 0.00 %
status and Other Real Owned as a % of total assets
Allowance for loan losses as a % of total loans 1.82 % 1.80 % 1.51 %
Net charge-offs as a % of average loans 0.00 % 0.80 % 0.15 %
Allowance for loan losses as a % of non-accrual loans 94.20 % 92.70 % --
SOURCE: California United Bank Investor Relations Contacts: California United Bank David Rainer, Chairman, President and CEO, 818-257-7776 Karen Schoenbaum, Chief Financial Officer, 818-257-7700 or Addo Communications, Inc. Andrew Greenebaum / Andrew Blazier, 310-829-5400
|
|
