California United Bank said Monday its directors decided not to accept an $8.3 million capital investment from the U.S. Department of the Treasury’s Capital Purchase Program, for which the Encino bank recently received preliminary approval.

The community bank’s board and management determined that the various restrictions, costs and possible uncertainties outweighed the potential benefits of the bank’s participation in the $700 billion financial rescue program.

In making its decision, the bank said its board reviewed the cost of this capital, particularly in light of the current and expected near-term interest-rate environment, as well as statements by representatives of government and legislative bodies regarding the program, which has drawn fire for not having been properly managed to date.

“While we have decided not to participate in the capital augmentation offered by the CPP, we believe we presently have sufficient capital to meet our current and future anticipated capital needs,” Chief Executive David I. Rainer said in a statement.

California United shares were up 26 cents, or 3 percent, to $8.01 in morning trading on the over-the-counter Bulletin Board.