California United Bank in Encino reported a net loss of $2.3 million for 2010, compared with net income of $745,000 in 2009.
The $765.3 million-asset company said assets grew 65.6% last year, in part because of the acquisition of the $135.6 million-asset California Oaks State Bank in the fourth quarter. California United said the loss was driven by increased salary and benefits costs, expenses related to the merger and a prepayment penalty on $8 million of Federal Home Loan Bank borrowings.
Deposits grew 90% in 2010, to $658 million at Dec. 31. No-interest deposits, which more than doubled from a year ago, represented 42.2% of total deposits. The bank also doubled its branch locations, from three to six, in the past year.
"The 2010 results support our belief that these investments have provided an infrastructure and platform for our franchise going forward," David Rainer, California United's chief executive, said in a press release.
