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City National Corporation Grows Second-Quarter 2013 Net Income To $59.7 Million, Up 9 Percent From Second-Quarter 2012; First-Half 2013 Net Income Totals $111.3 Million, Up 10 Percent

Average loan balances reach record $15.4 billion, up 18 percent, with commercial loans up 25 percent Assets and deposits grow at double-digit rates year-over-year Trust and investment fees up 46 percent from a year ago

LOS ANGELES, July 18, 2013 (GLOBE NEWSWIRE) -- City National Corporation (NYSE:CYN), the parent company of wholly owned City National Bank, today reported second-quarter 2013 net income of $59.7 million, up 9 percent from $54.8 million in the year-ago period. Earnings per share were $1.04, compared with $1.01 per share in the second quarter of 2012.

City National's net income in the first half of this year totaled $111.3 million, up 10 percent from $101.0 million in the first half of 2012. Earnings per share were $1.94, up 4 percent from $1.87 in the first half of last year.

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 August 21, 2013 to stockholders of record on August 7, 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 August 13, 2013 to shareholders of record on July 29, 2013.

SECOND-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 $15.8 billion, up 17 percent from June 30, 2012 and up 4 percent from March 31, 2013. Average second-quarter loan and lease balances, excluding FDIC-covered loans, grew to $15.4 billion, up 18 percent from the second quarter of last year. Average commercial loans were up 25 percent from the same period in 2012.
  • Second-quarter deposit balances averaged $23.1 billion, up 10 percent from the second quarter of 2012. Average core deposits, which equal 97 percent of total balances, were up 11 percent from the second quarter of last year.
  • City National's assets under management or administration grew to $59.1 billion, up 18 percent from the second quarter of 2012. Trust and investment fees were $49.8 million, up 46 percent from the second quarter of 2012.
  • Net loan recoveries in the second quarter of 2013 totaled $7.5 million, up from $4.8 million in the first quarter. Excluding FDIC-covered loans, second-quarter 2013 results included no provision for loan and lease losses. City National recorded a $1.0 million provision in the second quarter of 2012 and no provision in the first quarter of 2013. The company remains appropriately reserved at 1.83 percent of total loans, excluding FDIC-covered loans.
  • City National remains well-capitalized. Under Basel I capital rules, the company's Tier 1 common shareholders' equity ratio was 8.8 percent at June 30, 2013. 1 Under Basel III rules, its estimated Tier 1 common equity ratio was 8.6 percent. 2 All of the company's pro-forma capital ratios are comfortably above the Basel III rules, which were approved by the Federal Reserve on July 2, 2013. These rules are not scheduled to be fully required until 2019.

"City National delivered another solid performance in the second quarter – its 81 st consecutive profitable quarter – achieving double-digit growth in assets, loans, deposits, and wealth management fee income, while strategically investing in, expanding, and benefiting from new talent, offices, products and technologies to better serve our clients and grow our business," said President and CEO Russell Goldsmith. "Our strong credit quality improved further. The company continued to add both new clients and more assets and income from existing clients.

"City National also added two new banking offices in the second quarter – one in San Francisco's East Bay area and, after 11 years in New York City, the bank's first ground-floor branch in Manhattan. This month, City National also expanded its commitment, capabilities and opportunities to serve the technology industry and its entrepreneurs and investors by opening a loan production office in Boston, led by an experienced technology banking team."

  For the three months ended   For the three  
Dollars in millions, June 30, % months ended %
except per share data 2013 2012 Change March 31, 2013 Change
Earnings Per Common Share  $ 1.04  $ 1.01 3  $ 0.90 16
Net Income Attributable to CNC  59.7  54.8 9  51.5 16
Net Income Available to Common          
Shareholders  57.3  54.8 5  49.1 17
           
Average Assets  $ 27,469.6  $ 24,362.5 13  $ 27,709.2 (1)
Return on Average Assets  0.87%  0.90% (3)  0.75% 16
Return on Average Common Equity  9.53%  9.86% (3)  8.43% 13
Return on Average Tangible          
Common Equity  13.60%  13.42% 1  12.17% 12

ASSETS

Total assets at June 30, 2013 were $27.4 billion, up 10 percent from the second quarter of 2012, but virtually unchanged from the first quarter of 2013. The increase from the year-ago period reflects higher loan balances, as well as growth in the company's securities portfolio.

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