CU Bancorp Profit Falls 28% in Quarter

CU Bancorp, the Encino parent of California United Bank, reported that its net income for the fourth quarter ended Dec. 31 fell 28% to $1.28 million from $1.77 million a year ago, mainly because of an increase in its quarterly provision for possible loan losses to $1.45 million from $600,000 a year earlier.

Despite the increase in CU’s loan loss provision, California United’s non-performing assets were “relatively modest” in the quarter, said John J. Keating, CU chief executive, in a statement. Non-performing assets include loans with payments overdue and repossessed real estate.

For the full year, CU’s net income fell 6% to $5.86 million from $6.25 million in 1989.

CU had assets of $476 million as of Dec. 31, 5% less than a year earlier, when it had assets of $501 million.