City National 1995 earnings grow 31%.BEVERLY HILLS Beverly Hills, city (1990 pop. 31,971), Los Angeles co., S Calif., completely surrounded by the city of Los Angeles; inc. 1914. The largely residential city is home to many motion-picture and television personalities. , Calif.--(BUSINESS WIRE)--Jan. 17, 1996--City National Corp. (NYSE NYSE See: New York Stock Exchange :CYN CYN Canyon ) reported significantly improved operating results for the fourth quarter and full year 1995, compared with the corresponding periods of 1994. The results for 1995 reflect higher net interest income from a growing loan portfolio, lower credit costs and continued management of noninterest expenses. Net income for the year ended Dec. 31, 1995, rose 31% to $48.8 million, or $1.06 per share, which includes a 13% increase in net interest income, the benefit of a zero credit loss provision and a reduction of FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). insurance expense. For the prior year period, the company reported net income of $37.2 million, or $.81 per share. The return on average assets for 1995 improved to 1.71% from 1.31%, while the return on average equity rose to 13.92% from 11.87% in the prior year. For the quarter ended Dec. 31, 1995, City National's net income advanced 35% to $13.3 million, or $.29 per share, from net income of $9.9 million, or $.21 per share in the year-earlier period. The improved results in the 1995 quarter reflected an 11% increase in net interest income, a zero credit loss provision and a reduction in FDIC insurance expense. The fourth quarter 1995 results also include $1.1 million in pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern securities losses, $.6 million in pretax gains from sale of ORE, a $.7 million reduction in income tax expense from recognition of California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). deferred tax benefits and $1.0 million in pretax acquisition-related costs to cover certain integration, data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a and lease-termination expenses related to the acquisition of First Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. Bank ("First LA") on Dec. 31, 1995. Total year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. assets increased 38% to $4.2 billion at Dec. 31, 1995, compared with $3.0 billion at Dec. 31, 1994, due primarily to the acquisition of First LA. On Dec. 31, 1995, City National Bank purchased all of the outstanding stock of First LA for $85.0 million and immediately merged First LA into the Bank. Immediately prior to the close, First LA sold certain real estate-secured loans to its parent for $71.0 million. The acquisition by City National Bank was accounted for under the purchase method of accounting. Accordingly, the results of operations of First LA prior to the acquisition are not included in City National's financial statements. First LA had total assets, loans, securities and deposits at Dec. 31, 1995, of $878 million, $338 million, $343 million and $796 million, respectively. Year-end assets and deposits are also higher than interim quarters due to seasonal activity. "The continuing strong financial results of City National are a reflection of our outstanding team of skilled professionals, providing a successful financial relationship to the people who bank with us. We recognize and appreciate the vital contributions of both our customers and our bankers to City National's dynamic performance in 1995," said Russell Russell, English noble family. It first appeared prominently in the reign of Henry VIII when John Russell, 1st earl of Bedford, 1486?–1555, rose to military and diplomatic importance. Goldsmith, City National chief executive officer. "We are also pleased that the addition of First LA to City National promises to enhance our capabilities and results in the years ahead." Net interest income on a fully taxable-equivalent basis rose to $43.8 million in the fourth quarter of 1995, from $39.2 million in the prior year's quarter. Average loan balances in the fourth quarter increased 22% over the prior year period, due mainly to a $327 million increase in average residential first mortgage loan balances, and an $85 million increase in average commercial loan balances. The net interest margin decreased to 5.92% in the fourth quarter of 1995 from 6.02% a year earlier, while the full year net interest margin was 6.26%, compared with 5.59% in 1994. For the full year 1995, fully taxable equivalent net interest income increased to $164.3 million from $144.5 million in 1994. Loan loss recoveries exceeded loan charge offs for the fourth consecutive quarter. For the full year 1995, City National generated net loan recoveries of $7.1 million compared with net loan charge offs of $12.7 million for 1994. The company recorded a zero credit loss provision for the fourth quarter and for the full year 1995 as a result of net recoveries, decreases in non-accrual loans, and a greater concentration in the loan portfolio of residential first mortgages (which generally contain lower loss exposure). The 1994 fourth quarter and full year credit loss provisions were $1.5 million and $7.5 million, respectively. Noninterest income for the 1995 fourth quarter, excluding gains and losses on the sales of securities and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. was $9.1 million, compared with $8.2 million in the prior year period. For the full year 1995, noninterest income, excluding gains or losses on securities or other assets, was up slightly to $35.2 million, compared with last year's total of $34.9 million. The year-to-year change is primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to an increase in investment services income of $1.6 million, which was due to higher fees, new investment products and growth in money market mutual fund balances, offset by a reduction in service fee income on deposit accounts of $1.2 million. Noninterest expense excluding ORE results was $30.8 million in the fourth quarter of 1995, compared with $31.3 million in the 1994 period. This improvement was achieved despite higher costs in the current period associated with performance incentives and contributions to the profit-sharing plan Profit-Sharing Plan A plan that gives employees a share in the profits of the company. Each employee receives into an account, a percentage of those profits based on their earnings. Also known as "deferred profit-sharing plan" or "DPSP". attributable to the company's positive operating results, increased marketing and promotional expenditures, an expanded level of charitable contributions charitable contribution n. in taxation, a contribution to an organization which is officially created for charitable, religious, educational, scientific, artistic, literary, or other good works. and the First LA acquisition-related expenses. These higher costs were offset by a decrease of $1.2 million in FDIC insurance expense, which includes the effect of the reduction in the FDIC assessment rate, along with lower deposit balances, lower net occupancy costs Occupancy costs are the whole life costs of buildings and their associated land from occupancy until disposal. These costs may be incurred on a regular or irregular basis. Occupancy costs are those costs related to occupying a space including; rent, real estate taxes, personal and lower telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. expenses. For the 12 months of 1995, noninterest expense of $118.7 million was $2.6 million, or 2.1%, lower than the $121.3 million in 1994 for reasons similar to those discussed above. Excluding FDIC insurance expense and acquisition-related costs in 1995, noninterest expense between years was relatively unchanged. ORE income for the fourth quarter of 1995 was $.6 million, compared with expense of $.2 million in 1994. For the full year, ORE activities generated income in 1995 and 1994 of $.6 million and $5.3 million, respectively. City National's effective tax rate increased to 36.5% in the fourth quarter of 1995 from 12.2% in the prior year quarter. The recognition of deferred state tax benefits decreased income tax expense for the fourth quarter of 1995 and 1994 by $.7 million and $3.9 million, respectively. Total average assets were $3.1 billion for the fourth quarter of 1995, an increase of 9% from the prior year. Average loans for the period increased to $1.9 billion from $1.6 billion in the prior year, due primarily to higher single-family sin·gle-fam·i·ly adj. Relating to or being a dwelling designed for one family only: a single-family home; single-family occupancy. residential real estate loans outstanding. Average core deposits decreased 5.0% in the fourth quarter of 1995, compared with the prior year period. Nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. (nonaccrual loans and ORE) declined to $55.6 million at Dec. 31, 1995, from $63.5 million a year earlier. Nonaccrual loans and ORE assumed in the First LA acquisition account for $17.5 million of the Dec. 31, 1995, total. Nonperforming assets as a percent of total assets improved to 1.34% at Dec. 31, 1995, compared with 2.11% a year earlier. The allowance for credit losses at Dec. 31, 1995, included $19.1 million from First LA and totaled $131.5 million, or 5.60% of outstanding loans, compared with $105.3 million, or 6.41%, at Dec. 31, 1994. The allowance for credit losses as a percentage of nonaccrual loans was 273.3% at Dec. 31, 1995, compared with 179.2% at Dec. 31, 1994. The Corporation's Tier 1 capital Tier 1 Capital A term used to describe the capital adequacy of a bank. Tier I capital is core capital, this includes equity capital and disclosed reserves. Notes: Equity capital includes instruments that can't be redeemed at the option of the holder. ratio at Dec. 31, 1995, was 13.60% while its leverage ratio was 11.17%. City National Bank's Tier 1 capital ratio was 12.64% and its leverage ratio was 10.40%. The ratios have decreased from the prior year due to the acquisition of First LA, but both the Corporation's and the Bank's ratios continue to be substantially above the minimum capital ratio requirements for a "well capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. " institution. At Dec. 31, 1995, the Corporation had repurchased 762,500 shares of its stock for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $9.9 million. City National Corp.'s principal subsidiary is City National Bank, a federally chartered commercial bank with assets in excess of $4.1 billion. With headquarters in Beverly Hills, City National has 27 offices throughout Los Angeles, Orange and San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. counties. -0-
City National Corp.
Consolidated Balance Sheet
(Unaudited)
(000 omitted)
Dec. 31,
1995 (a) 1994 Percent
Assets Change
Cash and due from banks $ 420,433 $ 299,389 40 Securities 1,005,135 774,966 30 Federal funds sold 351,803 296,966 18 Loans and leases (net of allowance for credit losses of $131,514 and $105,343) 2,215,097 1,538,575/b 44 Other assets 165,083 102,879 60 Total assets $4,157,551 $3,012,775 38 Liabilities and Shareholders' Equity Noninterest-bearing deposits $1,490,934 $1,151,709 29 Interest-bearing deposits 1,757,101 1,266,053 39 Total deposits 3,248,035 2,417,762 34 Federal funds purchased 358,353 182,120 97 Other short-term borrowed funds 95,100 50,000 90 Long-term debt 25,000 -- NM Other liabilities 64,106 32,172 99 Total liabilities 3,790,594 2,682,054 41 Shareholders' equity 366,957 330,721 11 Total liabilities and shareholders' equity $4,157,551 $3,012,775 38 Book value per common share $ 8.19 $ 7.32 12
Consolidated Statement of Operations
(Unaudited)
(000 omitted)
For the three months ended
Dec. 31, Percent
1995 1994 Change
Interest income $ 59,993 $ 49,178 22 Interest expense 16,834 10,329 63 Net interest income 43,159 38,849 11 Provision for credit losses -- 1,535/b (100) Net interest income after provision for credit losses 43,159 37,314 16 Noninterest income 9,083 8,200 11 Loss on sales of securities (1,094) (2,736) NM Gain (loss) on sales of assets -- -- NM Noninterest expense before ORE results 30,787 31,344/b (2) ORE income (expense) 624 (206) NM Income before taxes 20,985 11,228 87 Income taxes 7,654 1,366 460 Net income $ 13,331 $ 9,862 35 Net income per share 29 cents 21 cents 38 Dividends paid per share 7 cents 5 cents 40 Shares used to compute per- share net income 45,762 45,677
For the 12 months ended
Dec. 31, Percent
1995 1994 Change
Interest income $217,594 $181,825 20 Interest expense 55,331 38,414 44 Net interest income 162,263 143,411 13 Provision for credit losses -- 7,535/b (100) Net interest income after provision for credit losses 162,263 135,876 19 Noninterest income 35,245 34,852 1 Loss on sales of securities (596) (3,383) NM Gain (loss) on sales of assets (83) 1,328 NM Noninterest expense before ORE results 118,684 121,296/b (2) ORE income (expense) 608 5,297 (89) Income before taxes 78,753 52,674 50 Income taxes 29,961 15,511 93 Net income $ 48,792 $ 37,163 31 Net income per share $ 1.06 81 cents 31 Dividends paid per share 26 cents 5 cents NM Shares used to compute per- share net income 45,886 45,626
(a) Period end data for 1995 includes First Los Angeles Bank.
(b) Restated to reflect adoption of Statements of Financial
Accounting Standards 114 and 118.
City National Corp.
Selected Financial Information
(Unaudited)/a
(000 omitted)
Dec. 31, First LA/c
1995 1994 Percent Dec. 31,
Period end Change 1995
Loans Commercial loans $1,108,716 $ 906,417/b 22 $ 126,189 Commercial real estate loans 575,807 457,030/b 26 185,541 Residential first mortgage loans 542,818 212,595 155 -- Construction loans 80,749 31,201 159 21,639 Installment loans 38,521 36,675 5 4,166 Total loans $2,346,611 $1,643,918 43 $ 337,535 Nonperforming assets: Nonaccrual loans $ 48,124 $ 58,801/b (18) $ 12,636 Other real estate 7,439 4,726/b 57 4,901 Total nonperforming assets $ 55,563 $ 63,527 (13) $ 17,537 Loans past due 90 days or more and still accruing interest $ 19,756 $ 4,302 359 $ 13,259 Ratio of nonaccrual loans to total loans 2.05 pct. 3.58 pct. Ratio of nonperforming assets to total assets 1.34 pct. 2.11 pct. Ratio of allowance for credit losses to nonaccrual loans 273.28 pct. 179.15 pct. Deposits Noninterest bearing $1,490,934 $1,151,709 29 $ 288,437 Interest-bearing, core 1,413,372 1,141,283 24 334,564 Total core deposits 2,904,306 2,292,992 27 623,001 Time deposits -- $100,000 and over 343,729 124,770 175 172,537 Total deposits $3,248,035 $2,417,762 34 $ 795,538 Tier 1 risk-based capital ratio 13.60 pct. 17.50 pct. Total risk-based capital ratio 14.91 pct. 18.81 pct. Tier 1 leverage ratio 11.17 pct. 11.87 pct.
For the three months ended
Dec. 31, Percent
1995 1994 Change
Average Balances
(000 omitted)
Loans Commercial loans $ 926,542 $ 841,409 10 Commercial real estate loans 392,067 484,694 (19) Residential first mortgage loans 517,888 190,981 171 Construction loans 58,101 27,912 108 Installment loans 34,605 36,956 (6) Total loans $1,929,203 $1,581,952 22 Total earning assets $2,857,480 $2,584,059 11 Total assets 3,090,192 2,822,510 9 Total core deposits 1,971,115 2,074,407 (5) Average common equity 363,828 324,854 12 Selected Ratios Return on average assets 1.71 pct. 1.39 pct. Return on average common equity 14.54 pct. 12.04 pct. Net interest margin 5.92 pct. 6.02 pct.
For the 12 months ended
Dec. 31, Percent
1995 1994 Change
Average Balances
(000 omitted)
Loans Commercial loans $ 874,875 $ 861,630 2 Commercial real estate loans 423,462 541,981 (22) Residential first mortgage loans 375,932 68,768 447 Construction loans 49,160 18,316 168 Installment loans 35,242 39,886 (12) Total loans $1,758,671 $1,530,581 15 Total earning assets $2,624,436 $2,586,826 1 Total assets 2,849,807 2,831,471 1 Total core deposits 1,922,393 2,095,713 (8) Average common equity 350,551 313,196 12 Selected Ratios Return on average assets 1.71 pct. 1.31 pct. Return on average common equity 13.92 pct. 11.87 pct. Net interest margin 6.26 pct. 5.59 pct.
(a) Period end data for 1995 includes First Los Angeles Bank.
(b) Restated to reflect adoption of Statements of Financial
Accounting Standards 114 and 118.
(c) Represents First Los Angeles Bank data included in City
National's Dec. 31, 1995 balances.
CONTACT: City National Bank, Beverly Hills Frank Pekny, 310/888-6700 (financial) James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. Dunnigan Dunnigan can refer to:
or Pondel Parsons Parsons, city (1990 pop. 11,924), Labette co., SE Kans.; inc. 1871. It is a shipping point for dairy products, grain, and livestock. Manufactures include ammunition, wire and paper products, plastics, and appliances. & Wilkinson Noun 1. Wilkinson - English chemist honored for his research on pollutants in car exhausts (born in 1921) Sir Geoffrey Wilkinson Craig Craig , Edward Gordon 1872-1966. British theatrical producer, director, and designer whose innovative productions and simplified stage designs influenced modern theater. Parsons, 310/207-9300 |
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