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Loan Balances Exceed $15 Billion for the First Time
Assets and Deposits Grow at Double-Digit Rates Year-Over-Year
LOS ANGELES, April 18, 2013 (GLOBE NEWSWIRE) -- City National Corporation (NYSE:CYN), the parent company of wholly owned City National Bank, today reported first-quarter 2013 net income of $51.5 million, up 11 percent from $46.3 million in the year-ago period. Earnings per share were $0.90, compared with $0.86 per share in the first quarter of 2012.
City National also announced today that its Board of Directors has maintained and approved a quarterly common stock cash dividend of $0.25 per share, payable on May 15, 2013 to stockholders of record on May 1, 2013. The Board has also authorized a quarterly cash dividend of $13.75 per share on the 5.50 percent Non-Cumulative Perpetual Preferred Stock, Series C (equivalent to $0.34375 per related depositary share), payable on May 13, 2013 to shareholders of record on April 29, 2013.
FIRST-QUARTER 2013 HIGHLIGHTS
Period-end loans and leases, excluding loans covered by City National's acquisition-related loss-sharing agreements with the Federal Deposit Insurance Corporation (FDIC), reached a record $15.2 billion, up 19 percent from March 31, 2012 and up 3 percent from December 31, 2012. Average first-quarter loan and lease balances, excluding FDIC-covered loans, grew to $14.8 billion, up 19 percent from the first quarter of last year.
First-quarter deposit balances averaged $22.4 billion, up 11 percent from the first quarter of 2012. Average core deposits, which equal 97 percent of total balances, were up 12 percent from the first quarter of 2012.
Revenue for the first quarter of 2013 reached $294.6 million, up 7 percent from the year-ago period but down 3 percent from the fourth quarter of 2012.
Excluding FDIC-covered loans, first-quarter 2013 results included no provision for loan and lease losses. City National recorded no provision in the first quarter of 2012 and a $7.0 million provision in the fourth quarter of 2012. The company remains appropriately reserved at 1.86 percent of total loans, excluding FDIC-covered loans.
City National's assets under management or administration grew to $59.0 billion, up 18 percent from the first quarter of 2012 and 4 percent from the fourth quarter of 2012. Trust and investment fees were $46.7 million, up 39 percent from the first quarter of 2012 and 6 percent higher than the fourth quarter of 2012.
"City National continued to grow revenue and net income in the first quarter, thanks to strong loan production, sound credit quality and the addition of new clients across the bank," said President and CEO Russell Goldsmith. "Earnings increased despite low interest rates pressuring asset yields and a modest seasonal reduction in deposits. The fundamental strength of our business and our organization is evident in the fact that loans, deposits and noninterest income all grew at double-digit rates from the first quarter of 2012. Expenses, excluding two acquisitions, declined slightly even as we continued to invest in the company's future growth with the strategic addition of talented colleagues, innovative products, state-of-the-art technology and five new offices that will open this year.