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                                                                     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