EX-99.1 2 d717767dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

CU BANCORP REPORTS NET INCOME OF $2.7 MILLION AND

EARNINGS PER SHARE OF $0.24 FOR FIRST QUARTER OF 2014

Encino, CA, April 25, 2014 - CU Bancorp (NASDAQ: CUNB), the parent company of wholly owned California United Bank, today reported net income of $2.7 million, or $0.24 per fully diluted share, for the first quarter of 2014, an increase of 24% from net income of $2.2 million or $0.20 per fully diluted share for the first quarter of 2013.

First Quarter 2014 Highlights

 

  Net income increased to $2.7 million, or $0.24 per fully diluted share, from net income of $2.2 million, or $0.20 per fully diluted share, for first quarter of 2013

 

  Total loans increased $85 million or 9.8% from March 31, 2013 to $946 million at March 31, 2014

 

  Total deposits increased $113 million or 10.4% from March 31, 2013 to $1.2 billion at March 31, 2014

 

  Non-interest bearing demand deposits increased $94.2 million or 16.9% from March 31, 2013, representing 54% of total deposits

 

  Non-performing assets to total assets declined to 0.60% at March 31, 2014, from 1.07% at March 31, 2013

 

  Net interest margin increased to 3.82% from 3.69% for the prior quarter ended December 31, 2013

 

  Tangible book value per share increased $0.26 over December 31, 2013, to $11.37

“I am pleased to report that all of our performance metrics improved in the first quarter of 2014 when compared to the same quarter of 2013,” said David Rainer, President and Chief Executive Officer of CU Bancorp and California United Bank. “Return on average assets increased to 0.78% from 0.69% in the first quarter of 2013, return on average equity increased to 7.7% from 6.9% in the year ago quarter, and our operating efficiency ratio improved to 68% from 72% in the prior year. Our strong execution led to solid loan growth of 10% from the year ago quarter and a 24% increase in net income that resulted in diluted earnings per share of $0.24.


“We continue to establish new relationships and expand our current business, as evidenced by our increased commercial line of credit commitments, which are up 17% from last year’s first quarter and more than six percent from the linked quarter; however due to the dynamic nature of commercial and industrial lending, actual credit utilization does experience ebbs and flows. Credit quality trends remain excellent, with nonperforming assets to total assets of 0.60%, down from 1.07% a year ago—and one of the lowest in our peer group, and as at the end of the previous quarter there were no properties in the real estate owned category. Additionally, the Company had no charge offs in the first quarter.”

First Quarter 2014 Summary Results

Net Income and Profitability Ratios

Net income was $2.7 million or $0.24 per fully diluted share for the first quarter of 2014, compared with net income of $2.2 million, or $0.20 per fully diluted share, for the first quarter of 2013. The improvement was largely due to an increase in net interest income due to organic loan growth, as well as higher gain on sale of SBA loans and other non-interest income.

Net income in the first quarter of 2014 of $2.7 million was $166 thousand lower than net income of $2.8 million in the fourth quarter of 2013; the decrease was due to favorable tax events in the previous quarter. Net income before the provision for income tax expense in the first quarter of 2014 was $4.3 million, compared to net income before the provision for income tax expense of $3.7 million in the fourth quarter of 2013. The increase was largely due to a lower provision for loan losses in the first quarter.

The following table shows certain of the Company’s performance ratios for the first quarter of 2014, the fourth quarter of 2013 and the first quarter of 2013:

 

     Q1 2014     Q4 2013     Q1 2013  

Return on average assets

     0.78     0.79     0.69

Return on average equity

     7.7     8.3     6.9

Operating efficiency ratio

     68     68     72

Net Interest Income and Net Interest Margin

Net interest income before the provision for loan losses totaled $12.2 million for the first quarter of 2014, an increase of $635 thousand or 5.5% from the first quarter of 2013. The increase was primarily driven by net organic loan growth.

Net interest income before the provision for loan losses for the first quarter of 2014 decreased $170 thousand, or 1.4% from the fourth quarter of 2013. The decrease was primarily due to two less calendar days in the first quarter of 2014.


The Company’s net interest income continued to be positively impacted in both the fourth quarter of 2013 and the first quarter of 2014 by the recognition of the fair value discount earned on early payoffs of acquired loans. The Company recorded $571 thousand and $519 thousand in discount earned on early loan payoffs of acquired loans in the fourth quarter of 2013 and the first quarter of 2014, respectively, with a positive impact on the net interest margin of 17 and 16 basis points, respectively.

As of March 31, 2014, the Company had $7.7 million of accretable yield discount remaining on acquired loans.

Net interest margin in the first quarter of 2014 was 3.82%, compared to 4.00% in the first quarter of 2013. Year over year, the net interest margin benefitted from an $81 million increase in average loans coupled with discounts from early loan payoffs, which was negated by a decline in loan yields.

Net interest margin in the first quarter of 2014 was 3.82% compared to 3.69% in the fourth quarter of 2013. Average loans increased by $11.3 million over the previous quarter and average deposits decreased by $39 million over the previous quarter, which positively impacted the net interest margin in the first quarter.

The Company’s average yield on loans was 5.24% in the first quarter of 2014, compared to 5.27% in the fourth quarter of 2013, even though newly originated loans were higher yielding than those paying off. “We are pleased to report that new loans were originated at higher yields than those that paid off during the first quarter,” said Karen Schoenbaum, Chief Financial Officer. “We believe we have reached a point where loan yields have stabilized and are beginning to rise. But due to the lag effect from loans originated in the fourth quarter at lower rates than those paying off, the average loan yield doesn’t yet reflect that rise.”

The Company’s cost of funds was 0.15% in the first quarter of 2014, a decrease from 0.19% in the first quarter of 2013 and 0.16% for the fourth quarter of 2013.

Non-interest Income

Non-interest income was $1.8 million in the first quarter of 2014, an increase of $364 thousand or 25.5% from $1.4 million in the same quarter of the prior year. The increase was attributable to several factors, including an improvement of $62 thousand in deposit account service fees and $88 thousand in higher gain on sale of SBA loans. In other non-interest income, transaction referral fees were $75 thousand higher than in the previous year and dividend income and letters of credit fees were up $50 thousand and $37 thousand, respectively, from the first quarter of 2013.

Non-interest income in the first quarter of 2014 decreased $141 thousand or 7.3% over the fourth quarter of 2013. In other non-interest income, transaction referral fee income was $75 thousand in the first quarter, compared to $159 thousand in the fourth quarter. Additionally, the fourth quarter benefitted from a $42 thousand gain on sale of securities, for which there was no comparable activity in the first quarter.


Non-interest Expense

Non-interest expense for the first quarter of 2014 decreased $71 thousand or 0.7% over the fourth quarter of 2013. In the previous quarter other operating expenses included $107 thousand in costs for loan collection related to one non-accrual loan, which paid off in the first quarter; thus, there was no comparable activity in the first quarter. Salaries and employee benefits increased in the first quarter due to seasonal compensation expenses, such as increased 401(k) employee contribution matches and FICA.

Income Tax

The Company’s income tax provision returned to a normalized rate in the first quarter of 2014. In the fourth quarter of 2013 the Company’s tax rate decreased to an effective rate of 24% as a result of nonrecurring items. These items included: an increase in the marginal tax rate of the deferred tax asset, resulting in a reduction of tax expense of $326 thousand; a disqualifying disposition of incentive stock options resulting in a benefit of $151 thousand; and a true-up of $285 thousand related to three tax returns filed in 2013 for PCB, CU Bancorp and California United Bank, that included a low-income housing tax credit under early adoption of ASU 2014-01.

Balance Sheet

Assets

Total assets at March 31, 2014 were $1.4 billion, a year-over-year increase of $117 million or 9.3% from March 31, 2013, primarily resulting from net organic growth in total deposits. Total assets decreased $25 million or 1.8% quarter-over-quarter from December 31, 2013, the result of a decrease in interest bearing deposits.

Loans

Total loans were $946 million at March 31, 2014, an increase of $12.3 million or 1.3% from $933 million at the end of the prior quarter. This also represents an increase of $85 million or 9.8% from March 31, 2013. During the first quarter of 2014, the Company had approximately $24.0 million of net organic loan growth, which was partially offset by approximately $11.7 million in loan run-off from acquired portfolios.

The increase in total loans from the end of the prior quarter was primarily due to new relationships within the Bank’s footprint. Commercial and industrial lines of credit increased to $424 million in the first quarter of 2014, up 16.6% from the prior year and 6.5% from the previous quarter.

As in the previous two quarters, a high proportion of the Company’s first quarter loan production occurred late in the first quarter, which resulted in total end of period loans at March 31, 2014, $22.5 million higher than average loans during the first quarter of 2014.


Deposits

Total deposits at March 31, 2014 were $1.2 billion, a decrease of $29 million or 2.4% from December 31, 2013. This also represents an increase of $113 million or 10.4% from March 31, 2013. The decrease in deposits from the linked quarter is primarily related to real estate investors, who accumulate interest bearing deposits and deploy their cash as needed, but continue their relationship with the Bank.

Non-interest bearing demand deposits at March 31, 2014 were $652 million, an increase of $19.5 million or 3.1% from December 31, 2013. Non-interest-bearing demand deposits represented 54% of total deposits at March 31, 2014, up from 51% at the end of the prior quarter. A majority of the increase in non-interest bearing deposits is likely related to customers accumulating cash in anticipation of federal and state income tax payments, as well as county property taxes in California. Cost of deposits for the quarter was 0.12%, the same as the prior quarter.

Asset Quality

Total non-performing assets were $8.2 million, or 0.60% of total assets at March 31, 2014, compared with $9.6 million, or 0.68% of total assets, at December 31, 2013. Approximately 81% of the total non-performing assets at March 31, 2014 were acquired loans that were marked to fair value at the time of acquisition.

During the first quarter of 2014, the Company recorded net recoveries of $145 thousand, compared with net charge-offs of $369 thousand during the fourth quarter of 2013.

The Company recorded a loan loss provision of $75 thousand for the first quarter of 2014. The loan loss provision reflects the recoveries recorded in the quarter, an improving economy and the level of organic growth of the loan portfolio.

The allowance for loan losses as a percentage of loans (excluding acquired loans that have been marked to fair value and the related allowance) was 1.48% at March 31, 2014, compared with 1.50% at December 31, 2013, and 1.52% at March 31, 2013.

Capital

CU Bancorp remained well capitalized at March 31, 2014 with total risk weighted assets of $1,161,786,000. All of the Company’s capital ratios are above minimum regulatory standards for “well capitalized” institutions.

 

March 31, 2014    Minimum Capital to Be
Considered

“Well-Capitalized”
    CU Bancorp  

Total Risk-Based Capital Ratio

     10     12.99

Tier 1 Risk-Based Capital Ratio

     6     12.02

Tier 1 Leverage Capital Ratio

     5     10.19


At March 31, 2014, tangible common equity was $127.5 million with common shares issued and outstanding of 11,213,908 as of the same date, resulting in tangible book value per common share of $11.37. This compares to tangible common equity of $123.1 million with a tangible book value per common share of $11.11 at December 31, 2013. The increase in tangible book value per common share from the prior quarter primarily reflects the net income generated during the first quarter of 2014.

During the first quarter of 2014, stock options exercised by company officers increased shares outstanding by 104,000.

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 offices in the San Fernando Valley, the Santa Clarita Valley, the Conejo Valley, Simi Valley, Los Angeles, South Bay, and Orange County. 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 news release (including the exhibits hereto) contains forward-looking statements about CU Bancorp (the “Company”) for which the Company claims the protection of the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company’s current business plan and expectations regarding future operating results. Forward-looking statements are based on management’s knowledge and belief as of today and include information concerning the Company’s possible or assumed future financial condition, and its results of operations, business and earnings outlook. These forward-looking statements are subject to risks and uncertainties. A number of factors, some of which are beyond the Company’s ability to control or predict, could cause future results to differ materially from those contemplated by such forward-looking statements. These factors include (1) difficult and adverse conditions in the global and domestic capital and credit markets and the state of California, (2) significant costs or changes in business practices required by new banking laws or regulations such as those related to Basel III, (3) weakness in general business and economic conditions, which may affect, among other things, the level of growth, income, non-performing assets, charge-offs and provision expense, (4) changes in market rates and prices which may adversely impact the value of financial products, (5) changes in the interest rate environment and market liquidity which may reduce interest margins and impact funding sources, (6) competition in the Company’s markets, (7) changes in the


financial performance and/or condition of the Company’s borrowers, (8) increases in Federal Deposit Insurance Corporation premiums due to market developments and regulatory changes, (9) earthquake, fire, pandemic, drought or other natural disasters, (10) changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies, (11) international instability, downgrading or defaults on sovereign debt, including that of the United States of America or increased oil prices, (12) additional downgrades of securities issued by U.S. government sponsored or supported entities such as Fannie Mae and Freddie Mac, (13) the impact of the Dodd-Frank Act, (14) the effect of U.S. federal government debt, budget and tax matters, (15) changes in the level of early payoffs on acquired loans and the amount of fair value discount on these loans recognized each quarter, and (16) the success of the Company at managing the risks involved in the foregoing.

Forward-looking statements speak only as of the date they are made, and the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the statements are made, or to update earnings guidance, including the factors that influence earnings.

For a more complete discussion of these risks and uncertainties, see CU Bancorp’s reports on Form 10-K and 10-Q as filed with the Securities and Exchange Commission and the Company’s press releases.

Contacts

CU Bancorp

David Rainer, 818-257-7776

Chairman, President and CEO

or

Karen Schoenbaum, 818-257-7700

Chief Financial Officer


CU BANCORP

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

 

     March 31,
2014
    December 31,
2013
    March 31,
2013
 
     Unaudited     Audited     Unaudited  

ASSETS

      

Cash and due from banks

   $ 34,421      $ 23,156      $ 19,286   

Interest earning deposits in other financial institutions

     172,573        218,131        172,086   
  

 

 

   

 

 

   

 

 

 

Total Cash and Cash Equivalents

     206,994        241,287        191,372   

Certificates of deposit in other financial institutions

     63,107        60,307        25,484   

Investment securities available-for-sale, at fair value

     102,155        106,488        109,787   

Loans

     945,507        933,194        860,833   

Allowance for loan loss

     (10,823     (10,603     (8,841
  

 

 

   

 

 

   

 

 

 

Net loans

     934,684        922,591        851,992   

Premises and equipment, net

     3,916        3,531        3,153   

Deferred tax assets, net

     11,090        11,835        12,689   

Other real estate owned, net

     —          —          3,112   

Goodwill

     12,292        12,292        12,292   

Core deposit and leasehold right intangibles

     2,455        2,525        1,664   

Bank owned life insurance

     21,352        21,200        20,736   

Accrued interest receivable and other assets

     24,318        25,760        32,695   
  

 

 

   

 

 

   

 

 

 

Total Assets

   $ 1,382,363      $ 1,407,816      $ 1,264,976   
  

 

 

   

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

      

LIABILITIES

      

Non-interest bearing demand deposits

   $ 651,645      $ 632,192      $ 557,452   

Interest bearing transaction accounts

     124,045        155,735        117,280   

Money market and savings deposits

     365,405        380,915        345,145   

Certificates of deposit

     62,303        63,581        70,377   
  

 

 

   

 

 

   

 

 

 

Total deposits

     1,203,398        1,232,423        1,090,254   

Securities sold under agreements to repurchase

     11,965        11,141        25,187   

Subordinated debentures, net

     9,419        9,379        9,226   

Accrued interest payable and other liabilities

     15,323        16,949        12,498   
  

 

 

   

 

 

   

 

 

 

Total Liabilities

     1,240,105        1,269,892        1,137,165   
  

 

 

   

 

 

   

 

 

 

SHAREHOLDERS’ EQUITY

      

Common stock

     122,697        121,675        118,885   

Additional paid-in capital

     8,865        8,377        7,159   

Retained earnings

     10,743        8,077        447   

Accumulated other comprehensive income (loss)

     (47     (205     1,320   
  

 

 

   

 

 

   

 

 

 

Total Shareholders’ Equity

     142,258        137,924        127,811   
  

 

 

   

 

 

   

 

 

 

Total Liabilities and Shareholders’ Equity

   $ 1,382,363      $ 1,407,816      $ 1,264,976   
  

 

 

   

 

 

   

 

 

 


CU BANCORP

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

 

     For the three months ended  
     March 31,
2014
     December 31,
2013
     March 31,
2013
 
     Unaudited      Unaudited      Unaudited  

Interest Income

        

Interest and fees on loans

   $ 11,924       $ 12,111       $ 11,425   

Interest on investment securities

     501         493         484   

Interest on interest bearing deposits in other financial institutions

     211         237         160   
  

 

 

    

 

 

    

 

 

 

Total Interest Income

     12,636         12,841         12,069   
  

 

 

    

 

 

    

 

 

 

Interest Expense

        

Interest on interest bearing transaction accounts

     58         65         52   

Interest on money market and savings deposits

     234         255         260   

Interest on certificates of deposit

     56         58         76   

Interest on securities sold under agreements to repurchase

     8         11         19   

Interest on subordinated debentures

     107         109         124   
  

 

 

    

 

 

    

 

 

 

Total Interest Expense

     463         498         531   
  

 

 

    

 

 

    

 

 

 

Net Interest Income

     12,173         12,343         11,538   

Provision for loan losses

     75         934         134   
  

 

 

    

 

 

    

 

 

 

Net Interest Income After Provision For Loan Losses

     12,098         11,409         11,404   
  

 

 

    

 

 

    

 

 

 

Non-Interest Income

        

Gain on sale of securities, net

     —           42         5   

Gain on sale of SBA loans, net

     438         414         350   

Deposit account service charge income

     630         628         568   

Other non-interest income

     722         847         503   
  

 

 

    

 

 

    

 

 

 

Total Non-Interest Income

     1,790         1,931         1,426   
  

 

 

    

 

 

    

 

 

 

Non-Interest Expense

        

Salaries and employee benefits

     5,605         5,495         5,417   

Stock compensation expense

     408         372         258   

Occupancy

     986         1,037         1,064   

Data processing

     475         455         482   

Legal and professional

     523         557         507   

FDIC deposit assessment

     221         226         246   

Merger related expenses

     —           —           43   

OREO valuation write-downs and expenses

     —           7         26   

Office services expenses

     264         248         266   

Other operating expenses

     1,067         1,223         1,000   
  

 

 

    

 

 

    

 

 

 

Total Non-Interest Expense

     9,549         9,620         9,309   
  

 

 

    

 

 

    

 

 

 

Net Income Before Provision for Income Tax

     4,339         3,720         3,521   

Provision for income tax

     1,673         888         1,366   
  

 

 

    

 

 

    

 

 

 

Net Income

   $ 2,666       $ 2,832       $ 2,155   
  

 

 

    

 

 

    

 

 

 

Earnings Per Share

        

Basic earnings per share

   $ 0.25       $ 0.26       $ 0.21   

Diluted earnings per share

   $ 0.24       $ 0.26       $ 0.20   

Average shares outstanding

     10,874,000         10,736,000         10,486,000   

Diluted average shares outstanding

     11,095,000         10,999,000         10,718,000   


CU BANCORP

CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS

(Dollars in thousands)

 

     For the three months ended  
     March 31, 2014     December 31, 2013     March 31, 2013  
     Average
Balance
     Average
Yield/Rate
    Average
Balance
     Average
Yield/Rate
    Average
Balance
     Average
Yield/Rate
 
     Unaudited     Unaudited     Unaudited  

Interest-Earning Assets:

               

Deposits in other financial institutions

   $ 265,750         0.32   $ 315,183         0.29   $ 214,198         0.30

Investment securities

     104,767         1.91     101,497         1.94     112,401         1.72

Loans

     922,971         5.24     911,649         5.27     842,234         5.50

Total interest-earning assets

     1,293,488         3.96     1,328,329         3.84     1,168,833         4.19

Non-interest-earning assets

     92,357           92,025           92,783      

Total Assets

   $ 1,385,845         $ 1,420,354         $ 1,261,616      

Interest-Bearing Liabilities:

               

Interest bearing transaction accounts

   $ 138,006         0.17   $ 144,009         0.18   $ 118,361         0.18

Money market and savings deposits

     373,258         0.25     389,594         0.26     350,363         0.30

Certificates of deposit

     62,964         0.36     64,302         0.36     76,246         0.40

Total Interest Bearing Deposits

     574,228         0.25     597,905         0.25     544,970         0.29

Securities sold under agreements to repurchase

     11,951         0.27     15,604         0.28     25,853         0.30

Subordinated debentures and other debt

     9,399         4.55     9,363         4.56     9,198         5.47

Total interest bearing liabilities

     595,578         0.32     622,872         0.32     580,021         0.37

Non-interest bearing demand deposits

     633,233           648,577           541,462      

Total funding sources

     1,228,811           1,271,449           1,121,483      

Non-interest bearing liabilities

     16,595           12,969           12,844      

Shareholders’ Equity

     140,439           135,936           127,289      

Total Liabilities and Shareholders’ Equity

   $ 1,385,845         $ 1,420,354         $ 1,261,616      

Net interest margin

        3.82        3.69        4.00


CU BANCORP

LOAN COMPOSITION

(Dollars in thousands)

 

     March 31,
2014
     December 31,
2013
     March 31,
2013
 
     Unaudited      Audited      Unaudited  

Commercial and Industrial Loans:

   $ 290,000       $ 299,473       $ 254,828   

Loans Secured by Real Estate:

        

Owner-Occupied Nonresidential Properties

     195,151         197,605         186,563   

Other Nonresidential Properties

     286,198         271,818         262,959   

Construction, Land Development and Other Land

     56,706         47,074         53,954   

1-4 Family Residential Properties

     62,128         65,711         59,828   

Multifamily Residential Properties

     39,868         33,780         29,389   
  

 

 

    

 

 

    

 

 

 

Total Loans Secured by Real Estate

     640,052         615,988         592,693   
  

 

 

    

 

 

    

 

 

 

Other Loans:

     15,455         17,733         13,312   
  

 

 

    

 

 

    

 

 

 
        
  

 

 

    

 

 

    

 

 

 

Total Loans

   $ 945,507       $ 933,194       $ 860,833   
  

 

 

    

 

 

    

 

 

 

COMMERCIAL AND INDUSTRIAL LINE OF CREDIT UTILIZATION

(Dollars in thousands)

 

     March 31,
2014
    December 31,
2013
    March 31,
2013
 
     Unaudited     Unaudited     Unaudited  

Disbursed

   $ 179,610         42   $ 196,044         49   $ 161,824         45

Undisbursed

     244,087         58     201,860         51     201,452         55
  

 

 

      

 

 

      

 

 

    

Total Commitment

   $ 423,697         100   $ 397,904         100   $ 363,276         100
  

 

 

      

 

 

      

 

 

    


CU BANCORP

SUPPLEMENTAL DATA

(Dollars in thousands)

 

     March 31,
2014
    December 31,
2013
    March 31,
2013
 
     Unaudited     Unaudited     Unaudited  

Capital Ratios Table:

      

Tier 1 leverage capital ratio

     10.19     9.57     9.76

Tier 1 risk-based capital ratio

     12.02     11.84     11.65

Total risk-based capital ratio

     12.99     12.80     12.52

Asset Quality Table:

      

Loans originated by the Bank on non-accrual

   $ 1,585      $ 1,657      $ 1,747   

Loans acquired thru acquisition that are on non-accrual

     6,642        7,899        8,727   
  

 

 

   

 

 

   

 

 

 

Total loans on non-accrual

     8,227        9,556        10,474   

Other Real Estate Owned

     —          —          3,112   
  

 

 

   

 

 

   

 

 

 

Total non-accrual loans and Other Real Estate Owned

   $ 8,227      $ 9,556      $ 13,586   
  

 

 

   

 

 

   

 

 

 

Net charge-offs/(recoveries) year to date

   $ (145   $ 1,052      $ 96   

Net charge-offs/(recoveries) quarterly

   $ (145   $ 369      $ 96   

Loans on non-accrual as a % of total loans

     0.87     1.02     1.22

Total non-accrual loans and Other Real Estate Owned as a % of total assets

     0.60     0.68     1.07

Allowance for loan losses as a % of total loans

     1.14     1.14     1.03

Allowance for loan losses as a % of total loans accounted at historical cost, which excludes purchased loans acquired by acquisition

     1.48     1.50     1.52

Net year to date charge-offs/(recoveries) as a % of average year to date loans

     -0.02     0.12     0.01

Allowance for loan losses as a % of non-accrual loans accounted at historical cost, which excludes non-accrual purchased loans acquired by acquisition and related allowance

     682.0     639.8     506.1

Allowance for loan losses as a % of total non-accrual loans

     131.6     111.0     84.4

As of March 31, 2014, there were no restructured loans or loans over 90 days past due and still accruing.


CU BANCORP

GAAP RECONCILIATIONS

(Dollars in thousands except per share data)

TCE Calculation and Reconciliation to Total Shareholders’ Equity

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. Other companies may calculate TCE in a manner different from CU Bancorp. A reconciliation of CU Bancorp’s total shareholders’ equity to TCE is provided in the table below for the periods indicated:

 

     March 31,
2014
     December 31,
2013
     March 31,
2013
 
     Unaudited      Unaudited      Unaudited  

Tangible Common Equity Calculation

        

Total shareholders’ equity

   $ 142,258       $ 137,924       $ 127,811   

Less: Goodwill

     12,292         12,292         12,292   

Less: Core deposit and leasehold right intangibles

     2,455         2,525         1,664   
  

 

 

    

 

 

    

 

 

 

Tangible Common Equity

   $ 127,511       $ 123,107       $ 113,855   
  

 

 

    

 

 

    

 

 

 

Common shares issued and outstanding

     11,213,908         11,081,364         10,741,974   

Tangible book value per common share

   $ 11.37       $ 11.11       $ 10.60   

Book value per common share

   $ 12.69       $ 12.45       $ 11.90