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Loan balances grow 21 percent to a record $16.6 billion
Deposits reach all-time high of $25.2 billionAssets exceed $29 billion for the first time
LOS ANGELES, Oct. 24, 2013 (GLOBE NEWSWIRE) -- City National Corporation (NYSE:CYN), the parent company of wholly owned City National Bank, today reported third-quarter 2013 net income of $63.6 million, up 6 percent from $59.8 million in the year-ago period. Earnings per share were $1.10, compared with $1.10 per share in the third quarter of 2012. Third-quarter 2013 earnings reflect the payment of $2.4 million, or $0.05 per share, for dividends on preferred stock. (The company issued its preferred stock in the fourth quarter of 2012.)
Year-to-date, City National's net income totaled $174.9 million, up 9 percent from $160.8 million in the first nine months of 2012. Earnings per share were $3.04, up 2 percent from $2.97 in the first nine months 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 November 20, 2013 to stockholders of record on November 6, 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 November 13, 2013 to shareholders of record on November 4, 2013.
THIRD-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 $16.6 billion, up 21 percent from September 30, 2012 and up 5 percent from June 30, 2013. Average third-quarter loan and lease balances, excluding FDIC-covered loans, grew to $16.0 billion, up 18 percent from the third quarter of last year. Average commercial loans were up 23 percent from the same period in 2012.
Third-quarter deposit balances averaged $24.3 billion, up 11 percent from the third quarter of 2012. Average core deposits, which equal 98 percent of total balances, were up 12 percent from the third quarter of last year. Period-end deposit balances grew to a new record of $25.2 billion at September 30, 2013.
Trust and investment fee income grew to $49.4 million, up 14 percent from the third quarter of 2012. Year to date, it is up 31 percent, to $145.9 million. City National's assets under management or administration grew to $61.5 billion for the first time, up 7 percent from the third quarter of 2012.
Net loan recoveries in the third quarter of 2013 totaled $6.8 million, compared to net recoveries of $7.5 million in the second quarter of this year. Excluding FDIC-covered loans, third-quarter 2013 results included no provision for loan and lease losses. City National recorded a $2.0 million provision in the third quarter of 2012. The company remains appropriately reserved at 1.79 percent of total loans, excluding FDIC-covered loans.
Noninterest expense fell 1 percent from the second quarter of 2013, but was up 1 percent from the third quarter of 2012.
"City National's very positive momentum, growth and performance continued across the company in the third quarter – its 82
nd consecutive profitable quarter," said Chairman and CEO Russell Goldsmith. "Assets, loans and deposits again grew quite significantly to new record levels, with assets exceeding $29 billion for the first time. Wealth management increased its contribution as well, and credit quality improved yet again.
"In spite of a slow-growing economy, very low interest rates, competitive pricing pressures, and the continuing and expected decline of FDIC-covered loans, City National continues to grow its net income and client base by staying focused on meeting the financial needs of its clients and building on its strong reputation as the premier private and business bank in the communities it serves."
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June 30, 2013
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Total assets reached a record $29.1 billion at September 30, 2013, up 11 percent from the third quarter of 2012 and 6 percent higher than the second quarter of 2013. The increases reflect higher loan balances, as well as higher cash balances.