Private Placement Conclusion for California United Bank
California United Bank Announces Successful Completion of Private Placement Offering – Raises $10,265,739
ENCINO, Calif.–(BUSINESS WIRE)–California United Bank (OTCBB: CUNB) announced that it has successfully completed a private placement offering of its common stock to 16 select institutional and other accredited investors with total subscriptions of $10,265,739. The Bank sold 805,156 shares of common stock at $12.75 per share. This price per share represents 125% of the Bank’s tangible book value as of December 31, 2010.
As of December 31, 2010, the Bank had total assets of $756 million and was “well capitalized.”
The Bank intends to use the net proceeds from the private placement for general corporate purposes, including support for continued growth of the Bank.
David I. Rainer, President and CEO, commented, “It is very gratifying to receive this level of investment support for our banking team and our strategy which is first and foremost based on a talented group of bankers providing unparalleled customer service. While many financial institutions have been challenged to attract new equity investments, the CUB story was compelling in distinguishing itself through our continued growth and strong credit quality. Additionally, unlike many recent capital campaigns by other banks, this new capital is neither designed to pay off TARP nor to address capital gaps caused by loan losses, but is designed to support our continued growth, maintain our well capitalized status as we grow and provide us with the ability to exploit opportunities which we may identify in the future.”
About California United Bank
California United Bank, which celebrated the fifth anniversary of its opening in May 2010, provides a full range of financial services, including credit and deposit products, cash management, and internet banking for business, entrepreneurs, professionals and high net worth individuals throughout Southern California, from offices in the San Fernando Valley, the Santa Clarita Valley, the Conejo Valley, the Simi Valley, Los Angeles, South Bay, Glendale/San Gabriel Valley and Orange County. To view California United Bank’s most recent financial information, please visit the Investor Relations section of the Bank’s Web site. Information on products and services may be obtained by calling (818) 257-7700 begin_of_the_skype_highlighting (818) 257-7700 end_of_the_skype_highlighting or visiting the Bank’s Web site at www.californiaunitedbank.com.
Forward Looking Statements
Certain statements contained in this release that are not statements of historical fact constitute forward-looking statements for which California United Bank claims the protection of the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995 (the “Act”), notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the FDIC, in press releases and in oral and written statements made by us or with our approval that are not statements of historical fact and constitute forward-looking statements within the meaning of the Act. Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, expenses, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statements of our plans, objectives and expectations or those of our management or Board of Directors, including those relating to products or services; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Words such as “believes,” “anticipates,” “expects,” “intends,” “targeted,” “continue,” “remain,” “will,” “should,” “may” and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.
Forward-looking statements are based on management’s knowledge and belief as of today and include information concerning the possible or assumed future financial condition, 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 our 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) continued volatility and further deterioration of the capital and credit markets, (3) significant costs or changes in business practices required by new banking laws or regulations, (4) a more adverse than expected decline, a “double dip” recession, or continued weakness in general business and economic conditions, which may affect, among other things, the level of nonperforming assets, charge-offs and provision expense, (5) changes in market rates and prices which may adversely impact the value of financial products, (6) changes in the interest rate environment and market liquidity which may reduce interest margins and impact funding sources, (7) increased competition, (8) changes in the financial performance and/or condition of the Bank’s borrowers, (9) increases in Federal Deposit Insurance Corporation premiums due to market developments and regulatory changes, (10) earthquake, fire, pandemic or other natural disasters, (11) changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies, (12) the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and related rules and regulations on the Bank’s business operations and competitiveness; and (13) our success at managing the risks involved in the foregoing.
Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update forward-looking statements to reflect circumstances or events that occur after the date the statements are made, or to reflect the occurrence of unanticipated events.
For a more complete discussion of these risks and uncertainties, see California United Bank’s Annual Report on Form 10-K for the year ended December 31, 2010, and particularly Part I, Item 1A, titled “Risk Factors.”
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