CU Bancorp Reports 12.4% Earnings Increase

CU Bancorp posted a 12.4% rise in earnings last year after a 9% rise in profit during the fourth quarter.

Based in Encino, CU Bancorp earned $781,000 in the fourth quarter that ended Dec. 31, compared to a $717,000 profit in the same period a year earlier. The bank’s full year profit rose to $2.89 million, up from $2.57 million in 1994.

The bank’s chief executive, Stephen G. Carpenter, attributed the profit rise to $135 million in new loan commitments made last year, and a 15% cut in the bank’s operating expenses. As of Dec. 31, the bank’s total assets were $325 million, up from $304 million a year earlier.

Earlier this month, CU announced that it would merge with Home Interstate Bancorp based in Signal Hill. The merger, subject to shareholder and regulatory approvals, is expected to take place the second quarter. The combined bank will have 22 branches and assets of $810 million.

Carpenter will become chairman and chief executive of the new bank, while Home Interstate Bancorp’s chief executive James P. Staes will become vice chairman.