CU Bancorp Reports 40% Drop in Quarterly Profit

CU Bancorp, the Encino-based holding company for California United Bank, reported a 40% drop in net income for its first quarter, to $595,069 from $986,682 a year ago.

John J. Keating, president and chief executive officer, said results for the three months ended March 31 were negatively affected by lower interest rates and increased expenses, largely in the mortgage banking division. CU Bancorp’s total non-interest expenses for the first quarter were $7.9 million, compared with $5.7 million for the same period a year ago.

The company said its total assets were $523.1 million at the end of March 31, compared with $486.9 million a year earlier.