CU Bancorp (NASDAQ: CUNB), the parent company of wholly owned California
United Bank, today reported financial results for the second quarter of
2015.
The comparability of financial information for the second quarter of
2015 to the second quarter of 2014 is affected by the Company’s
acquisition of 1st Enterprise Bank (“1st
Enterprise”), which was accomplished by a merger of California United
Bank with 1st Enterprise (“the merger”), effective November
30, 2014.
Second Quarter 2015 Highlights
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Diluted core earnings per share of $0.30, up 20% from the prior
quarter
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Total revenues increased to $24.4 million, up $1.1 million or
4.8% from prior quarter
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Core net income available to common shareholders increased to a
record $5.1 million, up $896 thousand or 21% from the prior quarter
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Net interest income increased to $21.3 million, up $631
thousand or 3% from the prior quarter
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Core efficiency ratio improved to 60% from 62% in the prior
quarter
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Return on average tangible common equity of 10%, up from 8% in
the prior quarter
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Core return on average assets increased to 0.85%, up from 0.73%
in the prior quarter
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Tangible book value per share increased $0.32 to $11.97 per
share, exceeding pre-merger tangible book value per share
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Total assets increased to $2.5 billion, up $64 million or 2.7%
from the prior quarter or an annualized rate of 10.6%
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Total loans increased to $1.7 billion, up $48 million or 2.9%
from the prior quarter or an annualized rate of 11.5%
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Total deposits increased to $2.1 billion, up $54 million or
2.6% from the prior quarter or an annualized rate of 10.4%
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Non-interest bearing demand deposits were 53% of total deposits
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Continued status as well-capitalized, the highest regulatory
category
“CUB’s record second quarter earnings represent both increased revenues
from strong organic loan growth, as well as stable non-interest expense
on a linked-quarter basis,” said David Rainer, Chairman and Chief
Executive Officer of CU Bancorp and California United Bank. “The
resulting operating leverage has driven our core efficiency ratio down
to 60%, which we believe is evidence of the cost savings realized from
the merger, even as we’ve added to our workforce by hiring both revenue
generators and back-office personnel to support the strong growth CUB
has experienced in both loans and deposits since the two banks merged
last November.
“Further evidence of the traction we are getting as a combined entity is
the improvement in the return on average tangible common equity, which
at 10% is the highest in Company history.”
“CUB has generated annualized double-digit loan growth for three
consecutive quarters since the merger,” said K. Brian Horton, President
of CU Bancorp and California United Bank. “This is the synergy we
anticipated from the combination of two high performing business banking
franchises in one of the most attractive commercial banking markets in
the country. As we grow, we continue to focus on prudent underwriting
practices and delivering the highest level of customer service in
relationship-based business banking.”
Second Quarter 2015 Summary Results
Net Income and Profitability Ratios
Net income for the second quarter of 2015 was $5.3 million and net
income available to common shareholders was $5.0 million or $0.29 per
fully diluted share, compared with net income of $2.4 million or $0.21
per fully diluted share for the second quarter of 2014. Merger-related
expenses in the second quarter of 2015 were $246 thousand, compared to
$497 thousand in the year-ago quarter. The loan loss provision for the
second quarter of 2015 was $683 thousand, compared to $408 thousand in
the year-ago quarter.
Core net income available to common shareholders for the second quarter
of 2015 was $5.1 million or $0.30 per fully diluted share, compared to
core net income of $2.9 million or $0.26 per fully diluted share, for
the second quarter of 2014.
Net income for the second quarter of 2015 was $5.3 million and net
income available to common shareholders was $5.0 million or $0.29 per
fully diluted share, compared with net income of $4.2 million and net
income available to common shareholders of $3.9 million or $0.23 per
fully diluted share in the first quarter of 2015. Second quarter 2015
merger-related expenses were $246 thousand, compared to $464 thousand in
the first quarter of 2015. The loan loss provision for the second
quarter of 2015 was $683 thousand, compared to $1.4 million in the first
quarter of 2015.
Core net income available to common shareholders for the second quarter
of 2015 was $5.1 million or $0.30 per fully diluted share, compared to
core net income available to common shareholders of $4.2 million in the
prior quarter or $0.25 per fully diluted share.
The Company calculates core net income by adding back the
tax-effected merger-related charges to GAAP earnings for the periods
presented, because the Company believes the use of core net income, a
non-GAAP measure, facilitates the assessment of its banking operations
and peer comparability. A reconciliation to GAAP is included in
tabular form at the end of this release.
The following table shows certain of the Company’s performance ratios
for the second quarter of 2015, the first quarter of 2015 and the second
quarter of 2014, as well as a column calculating performance ratios
based on core net income for all three quarters:
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CORE
Q2 2015
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CORE
Q1 2015
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CORE
Q2 2014
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Q2
2015
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Q1
2015
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Q2
2014
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Efficiency ratio
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60%
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62%
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64%
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61%
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64%
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68%
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Return on average assets
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0.85%
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0.73%
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0.83%
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0.82%
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0.69%
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0.69%
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Return on average tangible common equity
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10.00%
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8.23%
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7.54%
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Net Interest Income and Net Interest Margin
Net interest income totaled $21.3 million for the second quarter of
2015, an increase of $8.7 million or 69% from the second quarter of
2014. The increase was primarily driven by the merger and strong net
organic loan growth over the last year.
The Company’s net interest income was positively impacted in both the
second quarter of 2015 and the second quarter of 2014 by the recognition
of fair value discount earned on early payoffs of acquired loans. The
Company recorded $474 thousand and $483 thousand in discount earned on
early loan payoffs of acquired loans in the second quarter of 2015 and
2014, respectively, with a positive impact on the net interest margin of
9 basis points and 15 basis points, respectively.
The net interest margin in the second quarter of 2015 was 3.87%,
compared to 3.88% in the second quarter of 2014. While the Company has
experienced compression in the yields on its loan portfolio, growth in
average loans has kept the net interest margin stable.
Net interest income for the second quarter of 2015 increased $631
thousand or 3% from the first quarter of 2015. The Company recorded $474
thousand and $110 thousand in discount earned on early loan payoffs of
acquired loans in the second quarter of 2015 and first quarter of 2015,
respectively.
The net interest margin in the second quarter of 2015 was 3.87%,
compared to 3.95% in the first quarter of 2015. The decrease was largely
the result of growth in average deposits exceeding growth in average
loans. In the first quarter of 2015 the net interest margin benefited 4
basis points from the recognition of income due to the early pay off of
organic loans. The core loan yield for the second quarter of 2015 was
4.84%, compared to 4.81% in the first quarter of 2015.
“Net interest income increased in the second quarter due to solid growth
in average loans,” said Karen Schoenbaum, Chief Financial Officer of CU
Bancorp and California United Bank. “CUB’s balance sheet remains asset
sensitive and net interest income will also benefit when the prime rate
begins to rise.”
As of June 30, 2015, the Company had $18.5 million of discount remaining
on acquired accruing loans.
The Company’s cost of funds was 0.13% in the second quarter of 2015, a
decrease from 0.15% in the second quarter of 2014 and equal to 0.13% in
the first quarter of 2015.
Non-interest Income
Non-interest income was $3.1 million in the second quarter of 2015, an
increase of $1.3 million or 74% from $1.8 million in the same quarter of
the prior year. The overall increase was primarily due to an increase of
$523 thousand in deposit account service charge income as a result of
the merger. Additionally, other non-interest income included $380
thousand in transaction fee referral income generated by the SBA lending
group and a special dividend of $296 thousand on capital stock from the
Federal Home Loan Bank of San Francisco. Non-interest income in the year
ago period benefited from a $225 thousand settlement included in other
non-interest income.
Non-interest income in the second quarter of 2015 increased $487
thousand or 19% over the first quarter of 2015. The overall increase was
primarily due to other non-interest income of $380 thousand earned on
transaction referral fee income generated by the SBA lending group,
compared to $28 thousand in the prior quarter, and the special dividend
of $296 thousand on capital stock from the Federal Home Loan Bank of San
Francisco. Increases in other non-interest income were partially offset
by a decrease of $208,000 on the gain on sale of SBA loans from the
prior quarter.
Non-interest Expense
Non-interest expense for the second quarter of 2015 was $14.9 million,
an increase of $5.2 million or 54%, compared to non-interest expense of
$9.7 million for the same period of the prior year. The increase in
year-over-year non-interest expense is the result of the combined
operations of the two banks after the merger in November 2014. The
second quarter of 2015 included merger-related expenses of $246
thousand, compared to $497 thousand in the year ago period, and $358
thousand for three months of core deposit intangible amortization
related to the merger.
Non-interest expense for the second quarter of 2015 of $14.9 million was
equal to non-interest expense of $14.9 million for the first quarter of
2015. Merger-related expenses in the second quarter of 2015 decreased by
$218 thousand to $246 thousand, compared to $464 thousand in the prior
quarter, but were offset by a $294 thousand increase in stock-based
compensation expense, commensurate with stock grants issued at the end
of the first quarter for executive retention purposes.
The significant increase in loans and deposits, as well as the addition
of new banking relationships since the merger, has improved the
Company’s core efficiency ratio to 60%. In the first quarter of 2014,
the quarter prior to the merger announcement and in which neither legacy
bank had any merger expenses, their efficiency ratios were 67% and 68%.
At June 30, 2015, the Company had 263 active full-time equivalent
employees.
Income Tax
The Company’s merger-related expenses in 2015 were tax deductible,
resulting in an effective tax rate of 40% year to date.
Balance Sheet
Assets
Total assets at June 30, 2015, were $2.5 billion, a year-over-year
increase of $1.0 billion from June 30, 2014. The increase was primarily
due to the addition of $782 million in assets from the 1st
Enterprise merger, as well as strong organic growth in total deposits.
Loans
Total loans were $1.7 billion at June 30, 2015, an increase of $48
million from the end of the prior quarter. This also represents an
increase of $730 million from June 30, 2014. The increase in loans from
the prior quarter was due to organic loan growth; the increase in loans
from the year ago period was primarily due to the merger.
During the second quarter of 2015, the Company had approximately $91
million of net organic loan production. Pay downs and payoffs in the
acquired loan portfolios were approximately $43 million in the same
quarter.
Total commercial and industrial line of credit commitments increased
from the prior quarter, primarily from new relationships, with
utilization remaining the same; however, commercial and industrial loans
outstanding, which include term loans, declined from the prior quarter.
Growth in loans secured by real estate grew 4% in the second quarter of
2015, compared to the prior quarter, of which 62% was in owner-occupied
nonresidential properties and 46% was associated with new relationships
to the Bank. During the second quarter of 2015 growth in loans secured
by real estate was diversified by property type and regional office.
At June 30, 2015, commercial and industrial loans, and owner-occupied
real estate loans combined were $886 million or 52% of total loans,
compared to $868 million or 52% of total loans at March 31, 2015.
Deposits
Total deposits at June 30, 2015 were $2.1 billion, an increase of $54
million from the end of the prior quarter. The increase in total
deposits for the linked-quarter period was primarily related to existing
relationships and net of the decrease of $52 million of a $68 million
deposit that came in during the first quarter. As disclosed in the first
quarter, that deposit was related to an existing relationship and was
expected to be reinvested by the customer.
Total deposits increased $892 million from June 30, 2014. The increase
from the prior year was primarily the result of the merger with 1st
Enterprise, as well as strong organic deposit growth in the first two
quarters of 2015.
Non-interest bearing deposits at June 30, 2015 were $1.1 billion or 53%
of total deposits, compared to $1.1 billion or 53% of total deposits at
March 31, 2015. Cost of deposits for the quarter was 0.11%, the same as
the prior quarter.
Asset Quality
Total non-performing assets were $5.8 million or 0.24% of total assets
at June 30, 2015, compared with $5.8 million or 0.24% of total assets at
March 31, 2015.
Total nonaccrual loans were $5.0 million or 0.29% of total loans at June
30, 2015, compared with $5.0 million or 0.30% of total loans at March
31, 2015. Of the total non-performing assets at June 30, 2015, the other
real estate owned category consisted of one single-family residence
located in Washington State, which is being carried on the books at $850
thousand, the estimated fair value less costs of disposition.
During the second quarter of 2015, the Company recorded net recoveries
of $194 thousand, compared with net charge-offs of $806 thousand during
the first quarter of 2015.
The Company recorded a loan loss provision of $683 thousand for the
second quarter of 2015. The loan loss provision reflects strong loan
growth during the quarter.
The allowance for loan losses as a percentage of loans (excluding
acquired loans that have been marked to fair value and their related
allowance) was 1.33% at June 30, 2015, compared with 1.36% at March 31,
2015, and 1.45% at June 30, 2014.
Capital
CU Bancorp remained well capitalized at June 30, 2015 with total
risk-weighted assets of $2,220,170,000. All of the Company’s capital
ratios are above minimum regulatory standards for “well capitalized”
institutions.
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June 30, 2015
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Minimum Capital to Be
Considered
“Well Capitalized”
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CU Bancorp
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Total Risk-Based Capital Ratio
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10
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%
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11.32
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%
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Tier 1 Risk-Based Capital Ratio
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8
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%
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10.66
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%
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Common Equity Tier 1 Ratio
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6.5
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%
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9.37
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%
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Tier 1 Leverage Capital Ratio
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5
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%
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10.07
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%
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At June 30, 2015, tangible common equity was $201.6 million with common
shares issued of 16,840,859 as of the same date, resulting in tangible
book value per common share of $11.97. This compares to tangible common
equity of $195.8 million with a tangible book value per common share of
$11.65 at March 31, 2015. At September 30, 2014, prior to the merger,
the per share tangible book value of CU Bancorp stock was $11.95.
About CU Bancorp and California United Bank
CU Bancorp is the parent of California United Bank. Founded in 2005,
California United Bank provides a full range of financial services,
including credit and deposit products, cash management, and internet
banking to businesses, non-profits, entrepreneurs, professionals, and
investors throughout Southern California from its headquarters office in
Downtown Los Angeles and additional full-service offices in the San
Fernando Valley, the Santa Clarita Valley, the Conejo Valley, Simi
Valley, Los Angeles, South Bay, Orange County, and the Inland Empire.
California United Bank is an SBA Preferred Lender. To view CU Bancorp’s
most recent financial information, please visit the Investor Relations
section of the Company’s Web site. Information on products and services
may be obtained by calling 818-257-7700 or visiting the Company’s Web
site at www.cunb.com.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking information about CU
Bancorp (the “Company”) that is intended to be covered by the safe
harbor for “forward-looking statements” provided by the Private
Securities Litigation Reform Act of 1995. All statements other than
statements of historical fact are forward-looking statements. Such
statements involve inherent risks and uncertainties, many of which are
difficult to predict and are generally beyond the control of the
Company. Forward-looking statements speak only as of the date they are
made and we assume no duty to update such statements. We caution readers
that a number of important factors could cause actual results to differ
materially from those expressed in, implied or projected by, such
forward-looking statements. Risks and uncertainties include, but are not
limited to: lower than expected revenues; credit quality deterioration
or a reduction in real estate values which could cause an increase in
the allowance for credit losses and a reduction in net earnings;
increased competitive pressure among depository institutions; the
Company’s ability to complete future acquisitions, successfully
integrate acquired entities, or achieve expected beneficial synergies
and/or operating efficiencies within expected time-frames or at all; the
cost of additional capital is more than expected; a change in the
interest rate environment reduces net interest margins; asset/liability
repricing risks and liquidity risks; legal matters could be filed
against the Company and could take longer or cost more than expected to
resolve or may be resolved adversely to the Company; general economic
conditions, either nationally or in the market areas in which the
Company does or anticipates doing business, are less favorable than
expected; environmental conditions, including natural disasters and
drought, may disrupt our business, impede our operations, negatively
impact the values of collateral securing the Company’s loans and leases
or impair the ability of our borrowers to support their debt
obligations; the economic and regulatory effects of the continuing war
on terrorism and other events of war; legislative or regulatory
requirements or changes adversely affecting the Company’s business;
changes in the securities markets; regulatory approvals for any capital
activities cannot be obtained on the terms expected or on the
anticipated schedule; and other risks that are described in CU Bancorp’s
public filings with the U.S. Securities and Exchange Commission (the
“SEC”). If any of these risks or uncertainties materializes or if any of
the assumptions underlying such forward-looking statements proves to be
incorrect, CU Bancorp’s results could differ materially from those
expressed in, implied or projected by such forward-looking statements.
CU Bancorp assumes no obligation to update such forward-looking
statements. For a more complete discussion of risks and uncertainties,
investors and security holders are urged to read CU Bancorp’s Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports
filed by CU Bancorp with the SEC. The documents filed by CU Bancorp with
the SEC may be obtained at CU Bancorp’s website at www.cubancorp.com
or at the SEC’s website at www.sec.gov.
These documents may also be obtained free of charge from CU Bancorp by
directing a request to: CU Bancorp c/o California United Bank, 15821
Ventura Boulevard, Suite 100, Encino, CA 91436. Attention: Investor
Relations. Telephone 818-257-7700.
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CU BANCORP
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CONSOLIDATED BALANCE SHEETS
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(Dollars in thousands)
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June 30,
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March 31,
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December 31,
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June 30,
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2015
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2015
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2014
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2014
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Unaudited
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Unaudited
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Audited
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Unaudited
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ASSETS
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Cash and due from banks
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$
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60,632
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$
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42,570
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$
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33,996
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$
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40,657
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Interest earning deposits in other financial institutions
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207,448
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200,020
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98,590
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179,409
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Total cash and cash equivalents
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268,080
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242,590
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132,586
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220,066
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Certificates of deposit in other financial institutions
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62,594
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62,954
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76,433
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64,577
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Investment securities available-for-sale, at fair value
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217,481
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224,050
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226,962
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|
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102,143
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Investment securities held-to-maturity, at amortized cost
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44,014
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46,124
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47,147
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-
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Total investment securities
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261,495
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270,174
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274,109
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|
|
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102,143
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Loans
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1,713,004
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1,665,277
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1,624,723
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979,890
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Allowance for loan loss
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(14,124
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)
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(13,247
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)
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(12,610
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(11,284
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)
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Net loans
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1,698,880
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1,652,030
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1,612,113
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968,606
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Premises and equipment, net
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5,190
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5,190
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5,377
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|
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|
|
3,785
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|
Deferred tax assets, net
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16,241
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15,589
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|
16,504
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|
11,018
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Other real estate owned, net
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850
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850
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850
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|
219
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|
Goodwill
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63,950
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63,950
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63,950
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12,292
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Core deposit and leasehold right intangibles
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|
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8,608
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|
9,078
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|
|
|
|
|
9,547
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|
|
|
|
|
2,349
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Bank owned life insurance
|
|
|
|
|
49,345
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|
|
|
|
|
49,028
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|
|
|
|
|
38,732
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|
|
|
|
|
21,507
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|
Accrued interest receivable and other assets
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|
|
|
|
35,580
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|
|
|
|
|
35,527
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|
|
|
|
|
34,916
|
|
|
|
|
|
23,751
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|
Total Assets
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|
|
|
$
|
2,470,813
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|
|
|
|
$
|
2,406,960
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|
|
|
|
$
|
2,265,117
|
|
|
|
|
$
|
1,430,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing demand deposits
|
|
|
|
$
|
1,134,724
|
|
|
|
|
$
|
1,110,323
|
|
|
|
|
$
|
1,032,634
|
|
|
|
|
$
|
682,300
|
|
Interest bearing transaction accounts
|
|
|
|
|
251,999
|
|
|
|
|
|
251,409
|
|
|
|
|
|
206,544
|
|
|
|
|
|
143,312
|
|
Money market and savings deposits
|
|
|
|
|
691,219
|
|
|
|
|
|
660,313
|
|
|
|
|
|
643,675
|
|
|
|
|
|
361,936
|
|
Certificates of deposit
|
|
|
|
|
59,576
|
|
|
|
|
|
61,546
|
|
|
|
|
|
64,840
|
|
|
|
|
|
57,732
|
|
Total deposits
|
|
|
|
|
2,137,518
|
|
|
|
|
|
2,083,591
|
|
|
|
|
|
1,947,693
|
|
|
|
|
|
1,245,280
|
|
Securities sold under agreements to repurchase
|
|
|
|
|
14,424
|
|
|
|
|
|
10,498
|
|
|
|
|
|
9,411
|
|
|
|
|
|
13,852
|
|
Subordinated debentures, net
|
|
|
|
|
9,618
|
|
|
|
|
|
9,578
|
|
|
|
|
|
9,538
|
|
|
|
|
|
9,459
|
|
Accrued interest payable and other liabilities
|
|
|
|
|
18,647
|
|
|
|
|
|
18,226
|
|
|
|
|
|
19,283
|
|
|
|
|
|
16,284
|
|
Total Liabilities
|
|
|
|
|
2,180,207
|
|
|
|
|
|
2,121,893
|
|
|
|
|
|
1,985,925
|
|
|
|
|
|
1,284,875
|
|
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Serial preferred stock
|
|
|
|
|
16,487
|
|
|
|
|
|
16,235
|
|
|
|
|
|
16,004
|
|
|
|
|
|
-
|
|
Common stock
|
|
|
|
|
227,409
|
|
|
|
|
|
226,917
|
|
|
|
|
|
226,389
|
|
|
|
|
|
122,760
|
|
Additional paid-in capital
|
|
|
|
|
21,015
|
|
|
|
|
|
20,426
|
|
|
|
|
|
19,748
|
|
|
|
|
|
9,354
|
|
Retained earnings
|
|
|
|
|
25,743
|
|
|
|
|
|
20,788
|
|
|
|
|
|
16,861
|
|
|
|
|
|
13,129
|
|
Accumulated other comprehensive income (loss)
|
|
|
|
|
(48
|
)
|
|
|
|
|
701
|
|
|
|
|
|
190
|
|
|
|
|
|
195
|
|
Total Shareholders' Equity
|
|
|
|
|
290,606
|
|
|
|
|
|
285,067
|
|
|
|
|
|
279,192
|
|
|
|
|
|
145,438
|
|
Total Liabilities and Shareholders' Equity
|
|
|
|
$
|
2,470,813
|
|
|
|
|
$
|
2,406,960
|
|
|
|
|
$
|
2,265,117
|
|
|
|
|
$
|
1,430,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CU BANCORP
|
CONSOLIDATED STATEMENTS OF INCOME
|
(Dollars in thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
|
|
June 30, 2015
|
|
|
|
March 31, 2015
|
|
|
|
June 30, 2014
|
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans
|
|
|
|
$
|
20,644
|
|
|
|
$
|
19,906
|
|
|
|
$
|
12,366
|
Interest on investment securities
|
|
|
|
|
1,051
|
|
|
|
|
1,180
|
|
|
|
|
467
|
Interest on interest bearing deposits in other financial institutions
|
|
|
|
|
246
|
|
|
|
|
202
|
|
|
|
|
206
|
Total Interest Income
|
|
|
|
|
21,941
|
|
|
|
|
21,288
|
|
|
|
|
13,039
|
Interest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on interest bearing transaction accounts
|
|
|
|
|
98
|
|
|
|
|
100
|
|
|
|
|
66
|
Interest on money market and savings deposits
|
|
|
|
|
408
|
|
|
|
|
383
|
|
|
|
|
222
|
Interest on certificates of deposit
|
|
|
|
|
46
|
|
|
|
|
51
|
|
|
|
|
55
|
Interest on securities sold under agreements to repurchase
|
|
|
|
|
7
|
|
|
|
|
5
|
|
|
|
|
11
|
Interest on subordinated debentures
|
|
|
|
|
109
|
|
|
|
|
107
|
|
|
|
|
107
|
Total Interest Expense
|
|
|
|
|
668
|
|
|
|
|
646
|
|
|
|
|
461
|
Net Interest Income
|
|
|
|
|
21,273
|
|
|
|
|
20,642
|
|
|
|
|
12,578
|
Provision for loan losses
|
|
|
|
|
683
|
|
|
|
|
1,443
|
|
|
|
|
408
|
Net Interest Income After Provision For Loan Losses
|
|
|
|
|
20,590
|
|
|
|
|
19,199
|
|
|
|
|
12,170
|
Non-Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of securities, net
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
Gain on sale of SBA loans, net
|
|
|
|
|
215
|
|
|
|
|
423
|
|
|
|
|
167
|
Deposit account service charge income
|
|
|
|
|
1,153
|
|
|
|
|
1,141
|
|
|
|
|
630
|
Other non-interest income
|
|
|
|
|
1,727
|
|
|
|
|
1,044
|
|
|
|
|
986
|
Total Non-Interest Income
|
|
|
|
|
3,095
|
|
|
|
|
2,608
|
|
|
|
|
1,783
|
Non-Interest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
|
|
|
8,473
|
|
|
|
|
8,638
|
|
|
|
|
5,328
|
Stock compensation expense
|
|
|
|
|
807
|
|
|
|
|
513
|
|
|
|
|
479
|
Occupancy
|
|
|
|
|
1,415
|
|
|
|
|
1,420
|
|
|
|
|
985
|
Data processing
|
|
|
|
|
635
|
|
|
|
|
641
|
|
|
|
|
476
|
Legal and professional
|
|
|
|
|
656
|
|
|
|
|
846
|
|
|
|
|
411
|
FDIC deposit assessment
|
|
|
|
|
351
|
|
|
|
|
333
|
|
|
|
|
180
|
Merger expenses
|
|
|
|
|
112
|
|
|
|
|
240
|
|
|
|
|
497
|
OREO valuation write-downs and expenses
|
|
|
|
|
20
|
|
|
|
|
6
|
|
|
|
|
6
|
Office services expenses
|
|
|
|
|
407
|
|
|
|
|
414
|
|
|
|
|
238
|
Other operating expenses
|
|
|
|
|
2,036
|
|
|
|
|
1,862
|
|
|
|
|
1,098
|
Total Non-Interest Expense
|
|
|
|
|
14,912
|
|
|
|
|
14,913
|
|
|
|
|
9,698
|
Net Income Before Provision for Income Tax
|
|
|
|
|
8,773
|
|
|
|
|
6,894
|
|
|
|
|
4,255
|
Provision for income tax
|
|
|
|
|
3,506
|
|
|
|
|
2,695
|
|
|
|
|
1,869
|
Net Income
|
|
|
|
$
|
5,267
|
|
|
|
$
|
4,199
|
|
|
|
$
|
2,386
|
Preferred stock dividends and discount accretion
|
|
|
|
|
312
|
|
|
|
|
272
|
|
|
|
|
-
|
Net Income Available to Common Shareholders
|
|
|
|
$
|
4,955
|
|
|
|
$
|
3,927
|
|
|
|
$
|
2,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
|
|
$
|
0.30
|
|
|
|
$
|
0.24
|
|
|
|
$
|
0.22
|
Diluted earnings per share
|
|
|
|
$
|
0.29
|
|
|
|
$
|
0.23
|
|
|
|
$
|
0.21
|
Average shares outstanding
|
|
|
|
|
16,482,000
|
|
|
|
|
16,409,000
|
|
|
|
|
10,952,000
|
Diluted average shares outstanding
|
|
|
|
|
16,924,000
|
|
|
|
|
16,848,000
|
|
|
|
|
11,159,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CU BANCORP
|
CONSOLIDATED STATEMENTS OF INCOME
|
(Dollars in thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended June 30,
|
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
2014
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
Unaudited
|
Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans
|
|
|
|
$
|
40,550
|
|
|
|
|
|
|
|
|
$
|
24,290
|
Interest on investment securities
|
|
|
|
|
2,231
|
|
|
|
|
|
|
|
|
|
968
|
Interest on interest bearing deposits in other financial institutions
|
|
|
|
|
448
|
|
|
|
|
|
|
|
|
|
417
|
Total Interest Income
|
|
|
|
|
43,229
|
|
|
|
|
|
|
|
|
|
25,675
|
Interest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on interest bearing transaction accounts
|
|
|
|
|
198
|
|
|
|
|
|
|
|
|
|
124
|
Interest on money market and savings deposits
|
|
|
|
|
791
|
|
|
|
|
|
|
|
|
|
456
|
Interest on certificates of deposit
|
|
|
|
|
97
|
|
|
|
|
|
|
|
|
|
111
|
Interest on securities sold under agreements to repurchase
|
|
|
|
|
12
|
|
|
|
|
|
|
|
|
|
19
|
Interest on subordinated debentures
|
|
|
|
|
216
|
|
|
|
|
|
|
|
|
|
214
|
Total Interest Expense
|
|
|
|
|
1,314
|
|
|
|
|
|
|
|
|
|
924
|
Net Interest Income
|
|
|
|
|
41,915
|
|
|
|
|
|
|
|
|
|
24,751
|
Provision for loan losses
|
|
|
|
|
2,126
|
|
|
|
|
|
|
|
|
|
483
|
Net Interest Income After Provision For Loan Losses
|
|
|
|
|
39,789
|
|
|
|
|
|
|
|
|
|
24,268
|
Non-Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of securities, net
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
-
|
Gain on sale of SBA loans, net
|
|
|
|
|
638
|
|
|
|
|
|
|
|
|
|
605
|
Deposit account service charge income
|
|
|
|
|
2,294
|
|
|
|
|
|
|
|
|
|
1,260
|
Other non-interest income
|
|
|
|
|
2,771
|
|
|
|
|
|
|
|
|
|
1,708
|
Total Non-Interest Income
|
|
|
|
|
5,703
|
|
|
|
|
|
|
|
|
|
3,573
|
Non-Interest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
|
|
|
17,111
|
|
|
|
|
|
|
|
|
|
10,933
|
Stock compensation expense
|
|
|
|
|
1,320
|
|
|
|
|
|
|
|
|
|
887
|
Occupancy
|
|
|
|
|
2,835
|
|
|
|
|
|
|
|
|
|
1,971
|
Data processing
|
|
|
|
|
1,276
|
|
|
|
|
|
|
|
|
|
951
|
Legal and professional
|
|
|
|
|
1,502
|
|
|
|
|
|
|
|
|
|
934
|
FDIC deposit assessment
|
|
|
|
|
684
|
|
|
|
|
|
|
|
|
|
401
|
Merger related expenses
|
|
|
|
|
352
|
|
|
|
|
|
|
|
|
|
497
|
OREO valuation write-downs and expenses
|
|
|
|
|
26
|
|
|
|
|
|
|
|
|
|
6
|
Office services expenses
|
|
|
|
|
821
|
|
|
|
|
|
|
|
|
|
502
|
Other operating expenses
|
|
|
|
|
3,898
|
|
|
|
|
|
|
|
|
|
2,165
|
Total Non-Interest Expense
|
|
|
|
|
29,825
|
|
|
|
|
|
|
|
|
|
19,247
|
Net Income Before Provision for Income Tax
|
|
|
|
|
15,667
|
|
|
|
|
|
|
|
|
|
8,594
|
Provision for income tax
|
|
|
|
|
6,201
|
|
|
|
|
|
|
|
|
|
3,542
|
Net Income
|
|
|
|
$
|
9,466
|
|
|
|
|
|
|
|
|
$
|
5,052
|
Preferred stock dividends and discount accretion
|
|
|
|
|
584
|
|
|
|
|
|
|
|
|
|
-
|
Net Income Available to Common Shareholders
|
|
|
|
$
|
8,882
|
|
|
|
|
|
|
|
|
$
|
5,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
|
|
$
|
0.54
|
|
|
|
|
|
|
|
|
$
|
0.46
|
Diluted earnings per share
|
|
|
|
$
|
0.53
|
|
|
|
|
|
|
|
|
$
|
0.45
|
Average shares outstanding
|
|
|
|
|
16,445,000
|
|
|
|
|
|
|
|
|
|
10,913,000
|
Diluted average shares outstanding
|
|
|
|
|
16,886,000
|
|
|
|
|
|
|
|
|
|
11,127,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CU BANCORP
|
CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS
|
(Unaudited)
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
|
|
June 30, 2015
|
|
|
|
March 31, 2015
|
|
|
|
|
Average
Balance
|
|
|
|
Interest
|
|
|
|
Average
Yield/Rate
|
|
|
|
Average
Balance
|
|
|
|
Interest
|
|
|
|
Average
Yield/Rate
|
Interest-Earning Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits in other financial institutions
|
|
|
|
$
|
265,123
|
|
|
|
$
|
246
|
|
|
|
0.37
|
%
|
|
|
|
$
|
197,465
|
|
|
|
$
|
202
|
|
|
|
0.41
|
%
|
Investment securities
|
|
|
|
|
265,367
|
|
|
|
|
1,051
|
|
|
|
1.58
|
%
|
|
|
|
|
271,504
|
|
|
|
|
1,180
|
|
|
|
1.74
|
%
|
Loans
|
|
|
|
|
1,673,185
|
|
|
|
|
20,644
|
|
|
|
4.95
|
%
|
|
|
|
|
1,650,802
|
|
|
|
|
19,906
|
|
|
|
4.89
|
%
|
Total interest-earning assets
|
|
|
|
|
2,203,675
|
|
|
|
|
21,941
|
|
|
|
3.99
|
%
|
|
|
|
|
2,119,771
|
|
|
|
|
21,288
|
|
|
|
4.07
|
%
|
Non-interest-earning assets
|
|
|
|
|
212,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
202,045
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
|
$
|
2,416,500
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,321,816
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing transaction accounts
|
|
|
|
$
|
254,843
|
|
|
|
$
|
98
|
|
|
|
0.15
|
%
|
|
|
|
$
|
238,220
|
|
|
|
$
|
100
|
|
|
|
0.17
|
%
|
Money market and savings deposits
|
|
|
|
|
693,090
|
|
|
|
|
408
|
|
|
|
0.24
|
%
|
|
|
|
|
650,721
|
|
|
|
|
383
|
|
|
|
0.24
|
%
|
Certificates of deposit
|
|
|
|
|
60,469
|
|
|
|
|
46
|
|
|
|
0.31
|
%
|
|
|
|
|
63,942
|
|
|
|
|
51
|
|
|
|
0.32
|
%
|
Total Interest Bearing Deposits
|
|
|
|
|
1,008,402
|
|
|
|
|
552
|
|
|
|
0.22
|
%
|
|
|
|
|
952,883
|
|
|
|
|
534
|
|
|
|
0.23
|
%
|
Securities sold under agreements to repurchase
|
|
|
|
|
12,571
|
|
|
|
|
7
|
|
|
|
0.22
|
%
|
|
|
|
|
10,760
|
|
|
|
|
5
|
|
|
|
0.19
|
%
|
Subordinated debentures and other debt
|
|
|
|
|
9,598
|
|
|
|
|
109
|
|
|
|
4.49
|
%
|
|
|
|
|
9,568
|
|
|
|
|
107
|
|
|
|
4.47
|
%
|
Total Interest Bearing Liabilities
|
|
|
|
|
1,030,571
|
|
|
|
|
668
|
|
|
|
0.26
|
%
|
|
|
|
|
973,211
|
|
|
|
|
646
|
|
|
|
0.27
|
%
|
Non-interest bearing demand deposits
|
|
|
|
|
1,081,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,046,636
|
|
|
|
|
|
|
|
|
|
Total funding sources
|
|
|
|
|
2,111,661
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,019,847
|
|
|
|
|
|
|
|
|
|
Non-interest bearing liabilities
|
|
|
|
|
16,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,067
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity
|
|
|
|
|
287,930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
282,902
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity
|
|
|
|
$
|
2,416,500
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,321,816
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
|
|
|
|
|
|
$
|
21,273
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
20,642
|
|
|
|
|
Net interest margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.87
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.95
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CU BANCORP
|
CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS
|
(Unaudited)
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
|
|
June 30, 2015
|
|
|
|
June 30, 2014
|
|
|
|
|
Average
Balance
|
|
|
|
Interest
|
|
|
|
Average
Yield/Rate
|
|
|
|
Average
Balance
|
|
|
|
Interest
|
|
|
|
Average
Yield/Rate
|
Interest-Earning Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits in other financial institutions
|
|
|
|
$
|
265,123
|
|
|
|
$
|
246
|
|
|
|
0.37
|
%
|
|
|
|
$
|
240,335
|
|
|
|
$
|
206
|
|
|
|
0.34
|
%
|
Investment securities
|
|
|
|
|
265,367
|
|
|
|
|
1,051
|
|
|
|
1.58
|
%
|
|
|
|
|
101,410
|
|
|
|
|
467
|
|
|
|
1.84
|
%
|
Loans
|
|
|
|
|
1,673,185
|
|
|
|
|
20,644
|
|
|
|
4.95
|
%
|
|
|
|
|
958,129
|
|
|
|
|
12,366
|
|
|
|
5.18
|
%
|
Total interest-earning assets
|
|
|
|
|
2,203,675
|
|
|
|
|
21,941
|
|
|
|
3.99
|
%
|
|
|
|
|
1,299,874
|
|
|
|
|
13,039
|
|
|
|
4.02
|
%
|
Non-interest-earning assets
|
|
|
|
|
212,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
90,383
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
|
$
|
2,416,500
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,390,257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing transaction accounts
|
|
|
|
$
|
254,843
|
|
|
|
$
|
98
|
|
|
|
0.15
|
%
|
|
|
|
$
|
139,425
|
|
|
|
$
|
66
|
|
|
|
0.19
|
%
|
Money market and savings deposits
|
|
|
|
|
693,090
|
|
|
|
|
408
|
|
|
|
0.24
|
%
|
|
|
|
|
353,962
|
|
|
|
|
222
|
|
|
|
0.25
|
%
|
Certificates of deposit
|
|
|
|
|
60,469
|
|
|
|
|
46
|
|
|
|
0.31
|
%
|
|
|
|
|
60,752
|
|
|
|
|
55
|
|
|
|
0.36
|
%
|
Total Interest Bearing Deposits
|
|
|
|
|
1,008,402
|
|
|
|
|
552
|
|
|
|
0.22
|
%
|
|
|
|
|
554,139
|
|
|
|
|
343
|
|
|
|
0.25
|
%
|
Securities sold under agreements to repurchase
|
|
|
|
|
12,571
|
|
|
|
|
7
|
|
|
|
0.22
|
%
|
|
|
|
|
15,425
|
|
|
|
|
11
|
|
|
|
0.29
|
%
|
Subordinated debentures and other debt
|
|
|
|
|
9,598
|
|
|
|
|
109
|
|
|
|
4.49
|
%
|
|
|
|
|
9,439
|
|
|
|
|
107
|
|
|
|
4.48
|
%
|
Total Interest Bearing Liabilities
|
|
|
|
|
1,030,571
|
|
|
|
|
668
|
|
|
|
0.26
|
%
|
|
|
|
|
579,003
|
|
|
|
|
461
|
|
|
|
0.32
|
%
|
Non-interest bearing demand deposits
|
|
|
|
|
1,081,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
652,094
|
|
|
|
|
|
|
|
|
|
Total funding sources
|
|
|
|
|
2,111,661
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,231,097
|
|
|
|
|
|
|
|
|
|
Non-interest bearing liabilities
|
|
|
|
|
16,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,733
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity
|
|
|
|
|
287,930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
144,427
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity
|
|
|
|
$
|
2,416,500
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,390,257
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
|
|
|
|
|
|
$
|
21,273
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
12,578
|
|
|
|
|
Net interest margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.87
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.88
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CU BANCORP
|
CONSOLIDATED YEAR-TO-DATE AVERAGE BALANCE SHEETS AND YIELD
ANALYSIS
|
(Unaudited)
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended
|
|
|
|
|
June 30, 2015
|
|
|
|
June 30, 2014
|
|
|
|
|
Average
Balance
|
|
|
|
Interest
|
|
|
|
Average
Yield/Rate
|
|
|
|
Average
Balance
|
|
|
|
Interest
|
|
|
|
Average
Yield/Rate
|
Interest-Earning Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits in other financial institutions
|
|
|
|
$
|
231,481
|
|
|
|
$
|
448
|
|
|
|
0.38
|
%
|
|
|
|
$
|
252,973
|
|
|
|
$
|
417
|
|
|
|
0.33
|
%
|
Investment securities
|
|
|
|
|
268,418
|
|
|
|
|
2,231
|
|
|
|
1.66
|
%
|
|
|
|
|
103,080
|
|
|
|
|
968
|
|
|
|
1.88
|
%
|
Loans
|
|
|
|
|
1,662,055
|
|
|
|
|
40,550
|
|
|
|
4,92
|
%
|
|
|
|
|
940,648
|
|
|
|
|
24,290
|
|
|
|
5.21
|
%
|
Total interest-earning assets
|
|
|
|
|
2,161,954
|
|
|
|
|
43,229
|
|
|
|
4.03
|
%
|
|
|
|
|
1,296,701
|
|
|
|
|
25,675
|
|
|
|
3.99
|
%
|
Non-interest-earning assets
|
|
|
|
|
207,466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
91,362
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
|
$
|
2,369,420
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,388,063
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing transaction accounts
|
|
|
|
$
|
246,577
|
|
|
|
$
|
198
|
|
|
|
0.16
|
%
|
|
|
|
$
|
138,720
|
|
|
|
$
|
124
|
|
|
|
0.18
|
%
|
Money market and savings deposits
|
|
|
|
|
672,023
|
|
|
|
|
791
|
|
|
|
0.24
|
%
|
|
|
|
|
363,556
|
|
|
|
|
456
|
|
|
|
0.25
|
%
|
Certificates of deposit
|
|
|
|
|
62,196
|
|
|
|
|
97
|
|
|
|
0.31
|
%
|
|
|
|
|
61,852
|
|
|
|
|
111
|
|
|
|
0.36
|
%
|
Total Interest Bearing Deposits
|
|
|
|
|
980,796
|
|
|
|
|
1,086
|
|
|
|
0.22
|
%
|
|
|
|
|
564,128
|
|
|
|
|
691
|
|
|
|
0.25
|
%
|
Securities sold under agreements to repurchase
|
|
|
|
|
11,671
|
|
|
|
|
12
|
|
|
|
0.21
|
%
|
|
|
|
|
13,698
|
|
|
|
|
19
|
|
|
|
0.28
|
%
|
Subordinated debentures and other debt
|
|
|
|
|
9,583
|
|
|
|
|
216
|
|
|
|
4.46
|
%
|
|
|
|
|
9,419
|
|
|
|
|
214
|
|
|
|
4.52
|
%
|
Total Interest Bearing Liabilities
|
|
|
|
|
1,002,050
|
|
|
|
|
1,313
|
|
|
|
0.26
|
%
|
|
|
|
|
587,245
|
|
|
|
|
924
|
|
|
|
0.32
|
%
|
Non-interest bearing demand deposits
|
|
|
|
|
1,063,958
|
|
|
|
|
|
|
|
|
|
|
|
|
|
642,716
|
|
|
|
|
|
|
|
|
|
Total funding sources
|
|
|
|
|
2,066,008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,229,961
|
|
|
|
|
|
|
|
|
|
Non-interest bearing liabilities
|
|
|
|
|
17,982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,658
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity
|
|
|
|
|
285,430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
142,444
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity
|
|
|
|
$
|
2,369,420
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,388,063
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
|
|
|
|
|
|
$
|
41,915
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
24,751
|
|
|
|
|
Net interest margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.91
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.85
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CU BANCORP
|
LOAN COMPOSITION
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2015
|
|
|
|
March 31, 2015
|
|
|
|
December 31, 2014
|
|
|
|
June 30, 2014
|
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
Audited
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and Industrial Loans:
|
|
|
|
$
|
505,931
|
|
|
|
$
|
515,593
|
|
|
|
$
|
528,517
|
|
|
|
$
|
303,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Secured by Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner-Occupied Nonresidential Properties
|
|
|
|
|
380,867
|
|
|
|
|
352,071
|
|
|
|
|
339,309
|
|
|
|
|
208,936
|
Other Nonresidential Properties
|
|
|
|
|
520,568
|
|
|
|
|
508,043
|
|
|
|
|
481,517
|
|
|
|
|
296,629
|
Construction, Land Development and Other Land
|
|
|
|
|
76,318
|
|
|
|
|
79,696
|
|
|
|
|
72,223
|
|
|
|
|
61,165
|
1-4 Family Residential Properties
|
|
|
|
|
136,142
|
|
|
|
|
128,609
|
|
|
|
|
121,985
|
|
|
|
|
64,583
|
Multifamily Residential Properties
|
|
|
|
|
54,789
|
|
|
|
|
53,840
|
|
|
|
|
52,813
|
|
|
|
|
36,727
|
Total Loans Secured by Real Estate
|
|
|
|
|
1,168,684
|
|
|
|
|
1,122,259
|
|
|
|
|
1,067,847
|
|
|
|
|
668,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Loans:
|
|
|
|
|
38,389
|
|
|
|
|
27,425
|
|
|
|
|
28,359
|
|
|
|
|
7,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Loans
|
|
|
|
$
|
1,713,004
|
|
|
|
$
|
1,665,277
|
|
|
|
$
|
1,624,723
|
|
|
|
$
|
979,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMERCIAL AND INDUSTRIAL LINE OF CREDIT UTILIZATION
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2015
|
|
|
|
March 31, 2015
|
|
|
|
December 31, 2014
|
|
|
|
June 30, 2014
|
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disbursed
|
|
|
|
$
|
370,692
|
|
|
45
|
%
|
|
|
|
$
|
357,499
|
|
|
45
|
%
|
|
|
|
$
|
353,582
|
|
|
45
|
%
|
|
|
|
$
|
194,469
|
|
44
|
%
|
Undisbursed
|
|
|
|
|
457,137
|
|
|
55
|
%
|
|
|
|
|
437,034
|
|
|
55
|
%
|
|
|
|
|
424,665
|
|
|
55
|
%
|
|
|
|
|
244,249
|
|
56
|
%
|
Total Commitment
|
|
|
|
$
|
827,829
|
|
|
100
|
%
|
|
|
|
$
|
794,533
|
|
|
100
|
%
|
|
|
|
$
|
778,247
|
|
|
100
|
%
|
|
|
|
$
|
438,718
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CU BANCORP
|
SUPPLEMENTAL DATA
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2015
|
|
|
|
March 31, 2015
|
|
|
|
December 31, 2014
|
|
|
|
June 30, 2014
|
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
Capital Ratios Table:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital ratio
|
|
|
|
|
11.32
|
%
|
|
|
|
|
11.71
|
%
|
|
|
|
|
11.61
|
%
|
|
|
|
|
12.75
|
%
|
Common equity tier 1 capital ratio
|
|
|
|
|
9.37
|
%
|
|
|
|
|
9.67
|
%
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
Tier 1 risk-based capital ratio
|
|
|
|
|
10.66
|
%
|
|
|
|
|
11.05
|
%
|
|
|
|
|
10.95
|
%
|
|
|
|
|
11.79
|
%
|
Tier 1 leverage capital ratio
|
|
|
|
|
10.07
|
%
|
|
|
|
|
10.23
|
%
|
|
|
|
|
12.92
|
%
|
|
|
|
|
10.38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Table:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans originated by the Bank on non-accrual
|
|
|
|
$
|
2,139
|
|
|
|
|
$
|
2,056
|
|
|
|
|
$
|
2,131
|
|
|
|
|
$
|
2,046
|
|
Loans acquired thru acquisition that are on non-accrual
|
|
|
|
|
2,843
|
|
|
|
|
|
2,920
|
|
|
|
|
|
1,778
|
|
|
|
|
|
4,982
|
|
Total non-accrual loans
|
|
|
|
|
4,982
|
|
|
|
|
|
4,976
|
|
|
|
|
|
3,909
|
|
|
|
|
|
7,028
|
|
Other Real Estate Owned
|
|
|
|
|
850
|
|
|
|
|
|
850
|
|
|
|
|
|
850
|
|
|
|
|
|
219
|
|
Total non-performing assets
|
|
|
|
$
|
5,832
|
|
|
|
|
$
|
5,826
|
|
|
|
|
$
|
4,759
|
|
|
|
|
$
|
7,247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs/(recoveries) year to date
|
|
|
|
$
|
612
|
|
|
|
|
$
|
806
|
|
|
|
|
$
|
231
|
|
|
|
|
$
|
(198
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs/(recoveries) quarterly
|
|
|
|
$
|
(194
|
)
|
|
|
|
$
|
806
|
|
|
|
|
$
|
458
|
|
|
|
|
$
|
(53
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans to total loans
|
|
|
|
|
0.29
|
%
|
|
|
|
|
0.30
|
%
|
|
|
|
|
0.24
|
%
|
|
|
|
|
0.72
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-performing assets to total assets
|
|
|
|
|
0.24
|
%
|
|
|
|
|
0.24
|
%
|
|
|
|
|
0.21
|
%
|
|
|
|
|
0.51
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to total loans
|
|
|
|
|
0.82
|
%
|
|
|
|
|
0.80
|
%
|
|
|
|
|
0.78
|
%
|
|
|
|
|
1.15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to total loans accounted at historical
cost, which excludes purchased loans acquired by acquisition
|
|
|
|
|
1.33
|
%
|
|
|
|
|
1.36
|
%
|
|
|
|
|
1.39
|
%
|
|
|
|
|
1.45
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net year to date charge-offs/(recoveries) to average year to date
loans
|
|
|
|
|
0.04
|
%
|
|
|
|
|
0.05
|
%
|
|
|
|
|
0.02
|
%
|
|
|
|
|
(0.02
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to non-accrual loans accounted at
historical cost, which excludes non-accrual purchased loans acquired
by acquisition and related allowance
|
|
|
|
|
660.4
|
%
|
|
|
|
|
642.0
|
%
|
|
|
|
|
591.7
|
%
|
|
|
|
|
551.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to total non-accrual loans
|
|
|
|
|
283.5
|
%
|
|
|
|
|
266.2
|
%
|
|
|
|
|
322.6
|
%
|
|
|
|
|
160.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2015, there were no restructured loans or loans over 90
days past due and still accruing.
|
CU BANCORP
|
GAAP RECONCILIATIONS
|
|
These non-GAAP measures have inherent limitations, are not required
to be uniformly applied and are not audited. They should not be
considered in isolation or as a substitute for analyses of results
reported under GAAP. These non-GAAP measures may not be comparable
to similarly titled measures reported by other companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TCE Calculations and Reconciliation to Total Shareholders' Equity
|
(Unaudited)
|
|
The Company utilizes the term Tangible Common Equity (TCE), a
non-GAAP financial measure. CU Bancorp’s management believes TCE is
useful because it is a measure utilized by both regulators and
market analysts in evaluating a consolidated bank holding company’s
financial condition and capital strength. TCE represents common
shareholders’ equity less goodwill and certain intangible assets. A
reconciliation of CU Bancorp’s total shareholders’ equity to TCE is
provided in the table below for the periods indicated:
|
|
(Dollars in thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2015
|
|
|
|
March 31, 2015
|
|
|
|
December 31, 2014
|
|
|
|
June 30, 2014
|
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
Tangible Common Equity Calculation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
|
$
|
290,606
|
|
|
|
|
$
|
285,067
|
|
|
|
|
$
|
279,192
|
|
|
|
|
$
|
145,438
|
|
Less: Serial preferred stock
|
|
|
|
|
16,487
|
|
|
|
|
|
16,235
|
|
|
|
|
|
16,004
|
|
|
|
|
|
-
|
|
Less: Goodwill
|
|
|
|
|
63,950
|
|
|
|
|
|
63,950
|
|
|
|
|
|
63,950
|
|
|
|
|
|
12,292
|
|
Less: Core deposit and leasehold right intangibles
|
|
|
|
|
8,608
|
|
|
|
|
|
9,078
|
|
|
|
|
|
9,547
|
|
|
|
|
|
2,349
|
|
Tangible Common Equity
|
|
|
|
$
|
201,561
|
|
|
|
|
$
|
195,804
|
|
|
|
|
$
|
189,691
|
|
|
|
|
$
|
130,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares issued
|
|
|
|
|
16,840,859
|
|
|
|
|
|
16,803,664
|
|
|
|
|
|
16,683,856
|
|
|
|
|
|
11,222,235
|
|
Tangible book value per common share
|
|
|
|
$
|
11.97
|
|
|
|
|
$
|
11.65
|
|
|
|
|
$
|
11.37
|
|
|
|
|
$
|
11.66
|
|
Book value per common share
|
|
|
|
$
|
16.28
|
|
|
|
|
$
|
16.00
|
|
|
|
|
$
|
15.78
|
|
|
|
|
$
|
12.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Tangible Common Equity Calculation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average shareholders' equity
|
|
|
|
$
|
287,930
|
|
|
|
|
$
|
282,902
|
|
|
|
|
$
|
177,042
|
|
|
|
|
$
|
144,427
|
|
Less: Average serial preferred stock
|
|
|
|
|
16,331
|
|
|
|
|
|
16,085
|
|
|
|
|
|
5,515
|
|
|
|
|
|
-
|
|
Less: Average goodwill
|
|
|
|
|
63,950
|
|
|
|
|
|
63,950
|
|
|
|
|
|
17,715
|
|
|
|
|
|
12,292
|
|
Less: Average core deposit and leasehold right intangibles
|
|
|
|
|
8,887
|
|
|
|
|
|
9,356
|
|
|
|
|
|
2,275
|
|
|
|
|
|
5,139
|
|
Average Tangible Common Equity
|
|
|
|
$
|
198,762
|
|
|
|
|
$
|
193,511
|
|
|
|
|
$
|
151,537
|
|
|
|
|
$
|
126,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
June 30, 2015
|
|
|
|
March 31, 2015
|
|
|
|
December 31, 2014
|
|
|
|
June 30, 2014
|
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
Net Income Available to Common Shareholders
|
|
|
|
$
|
4,955
|
|
|
|
|
$
|
3,927
|
|
|
|
|
$
|
1,183
|
|
|
|
|
$
|
2,386
|
|
Return on Average Tangible Common Equity
|
|
|
|
|
10.00
|
%
|
|
|
|
|
8.23
|
%
|
|
|
|
|
3.10
|
%
|
|
|
|
|
7.54
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CU BANCORP
|
GAAP RECONCILIATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Net Income, ROAA, ROAE, Core Efficiency Ratio
|
(Unaudited)
|
|
The Company utilizes the term Core Net Income, a non-GAAP financial
measure. CU Bancorp’s management believes Core Net Income is useful
because it is a measure utilized by market analysts to understand
the effects of merger-related expenses and provides an alternative
view of the Company’s performance over time and in comparison to the
Company’s competitors. Core net income should not be viewed as a
substitute for net income. A reconciliation of CU Bancorp’s Net
Income to Core Net Income, as well as related ratios is presented in
the tables below for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
June 30, 2015
|
|
|
|
March 31, 2015
|
|
|
|
June 30, 2014
|
Net Income Available to Common Shareholders
|
|
|
|
$
|
4,955
|
|
|
|
|
$
|
3,927
|
|
|
|
|
$
|
2,386
|
|
Add back: Merger expenses, net
|
|
|
|
|
65
|
|
|
|
|
|
144
|
|
|
|
|
|
497
|
|
Add back: Severance and retention, net
|
|
|
|
|
77
|
|
|
|
|
|
130
|
|
|
|
|
|
–
|
|
Core Net Income Available to Common Shareholders
|
|
|
|
$
|
5,097
|
|
|
|
|
$
|
4,201
|
|
|
|
|
$
|
2,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Loan Losses
|
|
|
|
$
|
683
|
|
|
|
|
$
|
1,443
|
|
|
|
|
$
|
408
|
|
Average Assets
|
|
|
|
$
|
2,416,500
|
|
|
|
|
|
2,321,816
|
|
|
|
|
|
1,390,257
|
|
ROAA
|
|
|
|
|
0.82
|
%
|
|
|
|
|
0.69
|
%
|
|
|
|
|
0.69
|
%
|
Core ROAA*
|
|
|
|
|
0.85
|
%
|
|
|
|
|
0.73
|
%
|
|
|
|
|
0.83
|
%
|
Average Equity
|
|
|
|
$
|
287,930
|
|
|
|
|
|
282,902
|
|
|
|
|
|
144,427
|
|
ROAE
|
|
|
|
|
6.90
|
%
|
|
|
|
|
5.63
|
%
|
|
|
|
|
6.63
|
%
|
Core ROAE**
|
|
|
|
|
7.10
|
%
|
|
|
|
|
6.02
|
%
|
|
|
|
|
8.01
|
%
|
Diluted Average Shares Outstanding
|
|
|
|
|
16,924,000
|
|
|
|
|
|
16,848,000
|
|
|
|
|
|
11,159,000
|
|
Diluted Earnings Per Share
|
|
|
|
$
|
0.29
|
|
|
|
|
$
|
0.23
|
|
|
|
|
$
|
0.21
|
|
Diluted Core Earnings Per Share***
|
|
|
|
$
|
0.30
|
|
|
|
|
$
|
0.25
|
|
|
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Core ROAA: Annualized core net income/average assets
|
** Core ROAE: Annualized core net income/average equity
|
*** Diluted Core Earnings Per Share: Core net income/diluted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
June 30, 2015
|
|
|
|
March 31, 2015
|
|
|
|
June 30, 2014
|
Net Interest Income
|
|
|
|
$
|
21,273
|
|
|
|
|
$
|
20,642
|
|
|
|
|
$
|
12,578
|
|
Non-Interest Income
|
|
|
|
|
3,095
|
|
|
|
|
|
2,608
|
|
|
|
|
|
1,783
|
|
Non-Interest Expense
|
|
|
|
|
14,912
|
|
|
|
|
|
14,913
|
|
|
|
|
|
9,698
|
|
Subtract: Merger expenses
|
|
|
|
|
112
|
|
|
|
|
|
240
|
|
|
|
|
|
497
|
|
Subtract: Severance and retention
|
|
|
|
|
134
|
|
|
|
|
|
224
|
|
|
|
|
|
–
|
|
Core Non-Interest Expense
|
|
|
|
$
|
14,666
|
|
|
|
|
$
|
14,449
|
|
|
|
|
$
|
9,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio*
|
|
|
|
|
61
|
%
|
|
|
|
|
64
|
%
|
|
|
|
|
68
|
%
|
Core Efficiency Ratio**
|
|
|
|
|
60
|
%
|
|
|
|
|
62
|
%
|
|
|
|
|
64
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Efficiency ratio represents non-interest expense as a percent of
net interest income plus non-interest income, excluding gain on sale
of securities, net
|
** Core efficiency ratio represents core non-interest expense as a
percent of net interest income plus non-interest income, excluding
gain on sale of securities, net
|
|
|
|
CU BANCORP
|
GAAP RECONCILIATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Net Income, ROAA, ROAE, Core Efficiency Ratio
|
(Unaudited)
|
|
The Company utilizes the term Core Net Income, a non-GAAP financial
measure. CU Bancorp’s management believes Core Net Income is useful
because it is a measure utilized by market analysts to understand
the effects of merger-related expenses and provides an alternative
view of the Company’s performance over time and in comparison to the
Company’s competitors. Core net income should not be viewed as a
substitute for net income. A reconciliation of CU Bancorp’s Net
Income to Core Net Income, as well as related ratios is presented in
the tables below for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30, 2015
|
|
|
|
|
|
|
|
|
June 30, 2014
|
Net Income Available to Common Shareholders
|
|
|
|
$
|
8,882
|
|
|
|
|
|
|
|
|
|
$
|
5,052
|
|
Add back: Merger expenses, net
|
|
|
|
|
209
|
|
|
|
|
|
|
|
|
|
|
497
|
|
Add back: Severance and retention, net
|
|
|
|
|
207
|
|
|
|
|
|
|
|
|
|
|
-
|
|
Core Net Income
|
|
|
|
$
|
9,298
|
|
|
|
|
|
|
|
|
|
$
|
5,549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Loan Losses
|
|
|
|
$
|
2,126
|
|
|
|
|
|
|
|
|
|
$
|
483
|
|
Average Assets
|
|
|
|
$
|
2,369,420
|
|
|
|
|
|
|
|
|
|
$
|
1,388,063
|
|
ROAA
|
|
|
|
|
0.76
|
%
|
|
|
|
|
|
|
|
|
|
0.73
|
%
|
Core ROAA*
|
|
|
|
|
0.79
|
%
|
|
|
|
|
|
|
|
|
|
0.81
|
%
|
Average Equity
|
|
|
|
$
|
285,430
|
|
|
|
|
|
|
|
|
|
|
142,444
|
|
ROAE
|
|
|
|
|
6.28
|
%
|
|
|
|
|
|
|
|
|
|
7.15
|
%
|
Core ROAE**
|
|
|
|
|
6.57
|
%
|
|
|
|
|
|
|
|
|
|
7.86
|
%
|
Diluted Average Shares Outstanding
|
|
|
|
|
16,886,000
|
|
|
|
|
|
|
|
|
|
|
11,127,000
|
|
Diluted Earnings Per Share
|
|
|
|
$
|
0.53
|
|
|
|
|
|
|
|
|
|
$
|
0.45
|
|
Diluted Core Earnings Per Share***
|
|
|
|
$
|
0.55
|
|
|
|
|
|
|
|
|
|
$
|
0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Core ROAA: Annualized core net income/average assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
** Core ROAE: Annualized core net income/average equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*** Diluted Core Earnings Per Share: Annualized core net
income/diluted average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30, 2015
|
|
|
|
|
|
|
|
|
June 30, 2014
|
Net Interest Income
|
|
|
|
$
|
41,915
|
|
|
|
|
|
|
|
|
|
$
|
24,751
|
|
Non-Interest Income
|
|
|
|
|
5,703
|
|
|
|
|
|
|
|
|
|
|
3,573
|
|
Non-Interest Expense
|
|
|
|
|
29,825
|
|
|
|
|
|
|
|
|
|
|
19,247
|
|
Subtract: Merger expenses
|
|
|
|
|
352
|
|
|
|
|
|
|
|
|
|
|
497
|
|
Subtract: Severance and retention
|
|
|
|
|
358
|
|
|
|
|
|
|
|
|
|
|
-
|
|
Core Non-Interest Expense
|
|
|
|
$
|
29,115
|
|
|
|
|
|
|
|
|
|
$
|
18,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio*
|
|
|
|
|
63
|
%
|
|
|
|
|
|
|
|
|
|
68
|
%
|
Core Efficiency Ratio **
|
|
|
|
|
61
|
%
|
|
|
|
|
|
|
|
|
|
66
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Efficiency ratio represents non-interest expense as a percent of
net interest income plus non-interest income, excluding gain on sale
of securities, net
|
** Core efficiency ratio represents core non-interest expense as a
percent of net interest income plus non-interest income, excluding
gain on sale of securities, net
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150728005600/en/
Copyright Business Wire 2015