This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Expensive Bank Stocks Still Worth Buying (Update 3)

Stocks in this article: BAC C JPM WFC USB CYN TCBI OZRK INDB

1. City National Corp.

Shares of City National Corp. (CYN - Get Report) of Los Angeles closed at $47.14 Monday, returning 7% year-to-date. Based on a quarterly payout of 20 cents, the shares have a dividend yield of 1.70%.

The company had $23.7 billion in total assets as of Dec. 30, and has expanded, in part, through purchases of failed banks from the Federal Deposit Insurance Corp., including most recently Nevada Commerce Bank of Las Vegas, last April.

City National reported fourth-quarter net income available to common shareholders of $43.9 million, or 82 cents a share, increasing from $41.4 million, or 77 cents a share, in the third quarter, and $39.7 million, or 74 cents a share, in the fourth quarter of 2010.

Net revenue grew 32% from the previous quarter and 36% year-over-year, to $94.5 million in the fourth quarter.

During the fourth quarter, City National booked $7.6 million in income from FDIC loss-sharing agreements, compared to loss-sharing expenses of $14.2 million the previous quarter and positive loss-sharing income of $26.3 million a year earlier. The major year-over-year improvements were growth of fourth-quarter net interest income to $201.6 million from $185.1 million, and a decline in noninterest expenses to $198.3 million, from $204 million.

Average loans grew 7% year-over-year, to $12.2 billion in the fourth quarter, while average deposits grew 12% year-over-year, to $20.5 billion.

The company's ROA has ranged from 0.72% to 0.86% over the past year.

Morgan Stanley analyst Ken Zerbe has a neutral rating on City National, saying on Jan. 19 that aside from a higher-than-expected tax rate and the FDIC "covered loan accounting noise," the company achieved a "solid quarter," with loan growth and net interest income "outpacing expectations."

The shares trade for 1.5 times tangible book value and for 14 times the consensus 2012 EPS estimate of $3.48.

The shares rose slightly on Wednesday, to close at 47.58.

Interested in more on City National Corp.? See TheStreet Ratings' report card for this stock.

>>To see these stocks in action, visit the 5 Expensive Bank Stocks Still Worth Buying portfolio on Stockpickr.

RELATED STORIES:






-- Written by Philip van Doorn in Jupiter, Fla.

To contact the writer, click here: Philip van Doorn.

To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn.

To submit a news tip, send an email to: tips@thestreet.com.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.
6 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs