CU Bancorp to Acquire Corporate Bank in Stock Transaction

Strategic Insights -

CU Bancorp, the holding company of California United Bank, has signed a definitive agreement to acquire Santa Ana-based Corporate Bank in a stock transaction. The purchase price at closing is expected to be approximately equal to the book value of Corporate Bank. The acquisition is subject to shareholder approval and regulatory approvals, with an anticipated completion in the third quarter of this year.

Key Takeaways:

  • The acquisition of Corporate Bank will be in the form of a stock transaction, with the purchase price equal to the book value of the bank.
  • The transaction is subject to shareholder approval and regulatory approvals, with an anticipated completion in the third quarter of this year.
  • CU Bancorp's chairman and CEO, Stephen G. Carpenter, believes the acquisition shares the business philosophy and commitment to personalized banking service of California United Bank.
  • Corporate Bank's chairman, Allan Stokke, sees the acquisition as a timely and attractive opportunity that combines resources and presents combined shareholders, customers, and staff with tremendous opportunity.
  • CU Bancorp's net income for 1994 was $2.6 million, with shareholders' equity totaling $29.7 million.
  • Corporate Bank had a net income of $256 thousand in 1994, with shareholders' equity of $7.8 million.

Statistics:

  • The anticipated completion of the transaction is in the third quarter of this year.
  • The purchase price at closing is expected to be approximately equal to the book value of Corporate Bank.
  • CU Bancorp's net income for 1994 was $2.6 million.
  • Corporate Bank had a net income of $256 thousand in 1994.
  • At year-end 1994, CU Bancorp had total assets of $304 million, and total deposits of $264 million.
  • At year-end 1994, Corporate Bank had total assets of $71 million, and total deposits of $61 million.
  • Corporate Bank had shareholders' equity of $7.8 million at year-end 1994, or $15.53 per share.

Sources:

  • PRNewswire, "CU Bancorp Announces Agreement to Acquire Corporate Bank"
  • /CONTACT: Patrick Hartman, CFO of CU Bancorp, 818-907-9122; or Stan Pawlowski, vice chairman of Corporate Bank, 714-491-3488/