Quarterly Earnings Rise Sharply at CU Bancorp

CU Bancorp, the Encino-based parent of California United Bank, reported a sharp rise in earnings in the third quarter, as the bank continued to reap the rewards of a management overhaul launched in June, 1992.

Profit in the quarter that ended Sept. 30 was $671,000, up 19% from the same three-month period a year earlier. For nine months, the bank posted earnings of $1.86 million, up 23% from $1.51 million in the same period of 1993.

The bank made no loan loss provision in the latest quarter, as asset quality has improved dramatically over the past year. Non-performing assets totaled $113,000 on Sept. 30, down dramatically from $4.03 million a year earlier.

Total assets on Sept. 30 were $280 million, down 6% from a year earlier. But much of that decline came late last year, when the bank sold its mortgage banking operation, slicing about $30 million from its balance sheet.

Stephen G. Carpenter, chief executive of the bank, attributed the improved results to “continued aggressive efforts to manage down problem real estate loans, and the bank’s effectiveness in capturing an increasingly larger share of Southern California’s commercial loan business.”

Carpenter headed an expansive management overhaul in June, 1992, when the bank shifted its emphasis from real estate to commercial lending.