California United Bank Had Losses in Quarter and Year

California United Bank had net losses for 2010’s fourth quarter and full year but had year-over-year growth in assets, deposits and loans. For the fourth quarter of 2010, California United Bank had a net loss of $2.3 million, or $0.44 per diluted share. For the same period in 2009, the bank had net income of $43,000, or $0.01 per diluted share. For 2010, the bank had a net loss of $2.3 million, or $0.45 per diluted share. In 2009, the bank had net income of $745,000, or $0.15 per diluted share. Elements that contributed to the loss included merger related expenses, a Federal Home Loan Banks prepayment penalty, increased salary and benefit costs and increased occupancy costs. As of Dec. 31, 2010, California United Bank had $756.3 million in assets, compared to $456.7 million at the end of 2009 and $589.8 million at the end of the most recent third quarter. The assets listed for Dec. 31, 2010 represented an increase of 65.6 percent year-over-year and an increase of 28.2 percent from the third quarter. The bank had total deposits of $658 million, up 90 percent from deposits of $346.3 million at then end of the previous year, and up 36 percent from deposits of $484.2 million at the end of the previous quarter. The bank’s loans as of Dec. 31, 2010 were $421.3 million, an increase of 60 percent from $263.4 million at the end of the previous year and an increase of 36 percent from loans of $309.1 million at the end of the previous quarter. “Our 2010 results reflect strong core growth, including a 90 percent increase in deposits year over year, which was fueled by the 2010 tactical investments in additional staff and infrastructure, as well as the year-end acquisition of California Oaks State Bank,” said David Rainer, president and CEO of California United Bank. “In one year, we have taken advantage of unique opportunities to achieve a 66 percent growth in total assets and an expanded geographic footprint, which is supported by strong capital and solid credit quality.” Accomplishments in 2010 include the increase from three to six full service branches and the addition of two new loan production offices. Jessica Vernabe