California United Bank Reports Q3 Earnings

California United Bank’s strategic investments helped fuel an increase in assets and deposits during the third quarter, but growth also presented short term earnings challenges for the bank which reported a loss for the period. The Encino-based bank reported a loss of $447,000 for the quarter, while its assets increased by 10 percent to $589.8 million from the previous quarter and by 28 percent from the same quarter last year. The bank’s total deposits increased by 15 percent from the previous quarter and by 36.6 percent from the same period last year to $484.2 million. The bank’s $309.1 million in loans represents an eight percent increase from the previous quarter and a 23 percent increase over the same quarter in 2009. The bank’s third quarter performance reflects a strategy suited for well capitalized banks not faced with loan quality issues, said California United Bank President and CEO David Rainer. Achievements during the quarter included the opening of a loan production office in Irvine to house the new Orange County regional production team; the announcement of an agreement to acquire California Oaks State Bank in Thousand Oaks, and the completion of construction of the bank’s 4th full-service branch office in the South Bay which will open in November.