City National’s Quarter Better Than ExpectedThursday, October 18, 2012
City National Corp. late Thursday reported a 44 jump in third-quarter profit, as Los Angeles County’s largest local bank grew both loan balances and deposits.
After the markets closed, the holding company for City National Bank reported net income of $59.8 million ($1.10 a share), compared with $41.4 million (77 cents) in the same period a year earlier.
Total revenue rose 18 percent to more than $317 million, with net interest income up 6 percent to nearly $215 million. Noninterest income jumped 54 percent to more than $107 million, largely due the bank’s July acquisition of Rochdale Investment Management.
The Wall Street consensus was for per-share profit of 92 cents on revenue of less than $282 million.
Average loan and lease balances, excluding covered loans, rose 15 percent to $13.6 billion. Deposit balances averaged $21.9 billion, up 11 percent. Excluding FDIC-covered loans, the results included a $2 million provision for loan and lease losses.
Chief Executive Russell Goldsmith noted that the bank’s assets exceeded $26 billion for the first time. “Credit quality was sound, and expenses remained in check,” he said in a statement.
Shares earlier closed up 64 cents, or 1.3 percent, to $48.82 on the New York Stock Exchange and were down 1.3 percent in after-hours trading.