In the first quarter of 2013, the company recorded a $0.1 million non-cash net impairment charge to reflect results of the quarterly update of cash-flow projections for the FDIC-covered loans. In the fourth quarter of 2012, the company recorded a $3.5 million net gain. The first-quarter charge reflects a $9.9 million provision for losses on covered loans and an offsetting $9.8 million of noninterest income related to City National's loss-sharing agreements with the FDIC. In addition to the $0.1 million non-cash net impairment charge for the quarter, the company recognized $0.1 million of other covered assets expense. Net expense from FDIC-covered assets, excluding the base yield, totaled $0.2 million in the first quarter of 2013, compared with net income of $2.8 million in the fourth quarter of 2012. (The base yield is the yield on covered assets, excluding income related to covered loans that are repaid or charged off.)City National will continue to update cash-flow projections for covered loans on a quarterly basis. Due to the uncertainty in the future performance of the covered loans, additional impairments may be recognized in the future.
City National Corporation Grows First-Quarter 2013 Net Income To $51.5 Million, Up 11 Percent From First-Quarter 2012
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