1 EXHIBIT 20 HOME INTERSTATE BANCORP CU BANCORP 1633 Cherry Avenue 16030 Ventura Boulevard Signal Hill, California 90806 Encino, California 91436 (310) 988-9600 (818) 907-9122 June 26, 1996 Dear Shareholders: We are pleased to announce that, as of June 21, 1996, the California Superintendent of Banks approved the proposed merger between California United Bank and Home Bank. This approval is subject to certain conditions including shareholder approvals and other regulatory agency approvals. As more fully set out on Pages 4 and 38 of the Joint Proxy Statement/Prospectus dated June 10, 1996 (the "Joint Proxy Statement"), the approval of the Federal Reserve Bank of San Francisco is also required for consummation of the mergers between CU Bancorp and Home Interstate Bancorp and California United Bank and Home Bank. The Federal Reserve Bank is currently reviewing the applications filed by the parties. We also want to take this opportunity to point out to you a typographical error on Page 9 of the Joint Proxy Statement. In the bottom quadrant of the page the equivalent per share value of Home Interstate Bancorp Common Stock as adjusted pro forma for the merger and based upon the value of CU Bancorp Common Stock on January 9, 1996 should have been $14.27 (Ask) and $13.57 (Bid), respectively, assuming the conversion ratio of 1.409 shares of CU Bancorp Common Stock for each share of Home Interstate Bancorp Common Stock. We apologize for this error. For your convenience we enclose a gummed "sticker" which should be inserted over the lower portion of Page 9 of the Joint Proxy Statement so that the corrected material is easily accessible. With the State Banking Department approval, we are optimistic about the completion of this transaction in a timely manner. YOUR VOTE REMAINS CRUCIAL TO THE MERGER. APPROVAL OF THE TRANSACTION REQUIRES THE AFFIRMATIVE VOTE OF A MAJORITY OF THE OUTSTANDING SHARES OF EACH COMPANY. PLEASE VOTE EARLY SO THIS CAN BE ACCOMPLISHED IN THE MOST EXPEDITIOUS MANNER. Should you have any questions or comments, we would be pleased to hear from you. Very truly yours, HOME INTERSTATE BANCORP CU BANCORP /s/ JAMES P. STAES /s/ STEPHEN G. CARPENTER -------------------------- -------------------------- JAMES P. STAES, STEPHEN G. CARPENTER, Chief Executive Officer Chief Executive Officer