City National Corp. reported a more than 52 percent drop in third quarter net income as Los Angeles’ County’s largest local bank more than doubled its provision for credit losses. The results missed Wall Street estimates.

The Los Angeles parent of City National Bank late Thursday reported net income of $8 million, compared with $16.6 million a year ago. Net interest income rose 5.6 percent to $161 million. The bank took an $85 million provision for loan losses, compared with $35 million a year ago.

The per-share net income available to shareholders after paying a $5.5 million dividend to the U.S. Treasury Department's Capital Purchase Program was 5 cents per share, compared with 34 cents a year ago. Analysts surveyed by Thomson Reuters on average had expected adjusted earnings of 7 cents a share.

During the quarter, the company completed its acquisition of Lee Munder Capital Group and purchased its first branch in San Jose to extend its business to the San Francisco Bay Area.

"Commercial real estate conditions continue to increase credit costs, but due to its strong earnings power, very solid capital base and prudent expense management, City National has continued to be modestly profitable both in this quarter and year to date,” Chief Executive Russell Goldsmith said in a statement.

Shares were down $2.16, or 5 percent, to $39.35 in midday trading on the New York Stock Exchange.