CU Bancorp Reports $3.49-Million Loss

CU Bancorp, still hobbled by the recession and problem loans, posted a second-quarter loss of $3.49 million, compared with year-earlier profit of $1.08 million.

The Encino-based parent of California United Bank said the loss in the quarter ended June 30 mainly reflected a $7.54-million provision for loan losses. In the year-earlier quarter, CU required a similar provision of only $900,000.

CU’s problems prompted the company to replace its president last month. John J. Keating, who had been the bank’s president since its founding a decade ago, was replaced by Stephen G. Carpenter.

For the first half of 1992, CU lost $2.89 million, compared with a $2.06-million profit a year earlier. Its total assets as of June 30 were cut 21%, to $435.1 million from $548.7 million a year earlier, a drop intended “to reduce the company’s risk exposure to problem assets,” CU said.