City National announces record earnings; reports 36% growth for 1996.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. 15, 1997--City National Corp. (NYSE NYSE See: New York Stock Exchange :CYN CYN Canyon ) Wednesday Wednesday: see week. announced the highest annual earnings in the history of the company. Net income for the full year rose 36% to $66.6 million, or $1.47 per share, a record-breaking Adj. 1. record-breaking - surpassing any previously established record; "a record-breaking high jump"; "record-breaking crowds" best - (superlative of `good') having the most positive qualities; "the best film of the year"; "the best solution"; "the best time for performance in the 43-year history of the company, up from the $48.8 million, or $1.06 per share reported in 1995. Net income for the fourth quarter rose 26.7% to $16.9 million, or $.37 per share, up from $13.3 million, or $.29 per share in the prior year period. "The remarkable growth in 1996 of City National's earnings, assets, and capabilities mirrors our emergence in this past year as Southern California's largest independent bank," 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, chairman of the board and chief executive officer of City National Bank (CNB CNB Czech National Bank CNB Centro Nacional de Biotecnologia CNB City National Bank CNB Citizens National Bank CNB Croatian National Bank CNB Chloronitrobenzene CNB Corresponsales No Bancarios (Spanish, Colombia) ). "Delivering this premier performance, while enhancing the strength of our balance sheet and our organization, improves City National's ability to continue to deliver world-class world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. relationship banking to Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, in the future. The imminent Impending; menacingly close at hand; threatening. Imminent peril, for example, is danger that is certain, immediate, and impending, such as the type an individual might be in as a result of a serious illness or accident. mergers this month with Ventura Ventura (vĕnt  `rə), city (1990 pop. 92,575), seat of Ventura co., SW Calif., on the Pacific coast in a farm and oil region; inc. 1866. County National Bank, Frontier frontier, in U.S. history, the border area of settlement of Europeans and their descendants; it was vital in the conquest of the land between the Atlantic and the Pacific. Bank and Riverside Riverside.1 City (1990 pop. 226,505), seat of Riverside co., S Calif.; inc. 1883. One of the fastest growing U.S. cities in the late 20th cent., it is famous for its orange industry. National Bank will further strengthen us for 1997." Total average assets were $3.8 billion for 1996, an increase of 34.1% over 1995. Average loans and core deposits increased 44.4% and 30.5%, respectively, due in part to the recovering economy in Southern California as well as 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) in December December: see month. 1995. 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 and deposits are higher than average balances due to seasonal activity. Full-year 1996 earnings included strong increases in net interest income and non-interest income, reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of a 34% increase in average earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin . Earnings were also higher due to a $4.2 million reduction in income tax expense from the recognition of deferred tax benefits. As previously reported, the 1996 fourth quarter included a $2.0 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. charge related to the settlement of a lender LENDER, contracts. He from whom a thing is borrowed. 2. The contract of loan confers rights, and imposes duties on the lender. 1. The lender has the right to revoke the loan at his mere pleasure; 9 Cowen, R. 687; 8 Johns. Rep. 432; 1 T. R. 480; 2 Campb. Rep. liability lawsuit lawsuit: see procedure; tort. . Excluding tax benefits referred to above, which will not recur in 1997, earnings are up 28% over the prior year period. The return on average assets was 1.74% in 1996, compared with 1.71% in 1995, while the return on average common equity rose to 17.82% from 13.92% in 1995. Earnings results for the fourth quarter also reflected the strong increase in both net interest income and non-interest income as well as deferred tax benefits of $1.5 million and the previously discussed after-tax litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. settlement of $2.0 million. Excluding tax benefits, earnings were up 15.5%. For the fourth quarter, return on average assets was 1.69%, compared with 1.71% in 1995, while the return on average equity rose to 17.14%, compared with 14.54% in the prior year. Net interest income on a fully taxable-equivalent basis rose 23.5% to $54.1 million in the fourth quarter of 1996, compared with $43.8 million in the prior year's fourth quarter. Average loan balances increased 41.0% between fourth quarters due to the continued growth in nearly all loan categories helped by the acquisition of First LA and the recovering Southern California economy. The fourth quarter net interest margin decreased to 5.88% from 5.92% a year earlier, while the full-year net interest margin decreased to 5.87%, compared with 6.26% in 1995. These decreases were due in part to lower interest rates in 1996 as compared with the first half of 1995 and a change in the mix and amount of funds supporting the earning assets. Non-interest income, excluding sales of securities and a leveraged lease, was $11.1 million for the fourth quarter of 1996, up 22% from $9.1 million in the same period a year ago. Non-interest income for 1996 was $42.7 million, up from $35.2 million last year. Investment services income and service fee income on deposit accounts were the primary contributors to the increase in both the quarter and the full-year periods. No credit loss provision was recorded during either 1996 or 1995 as overall credit quality continued to improve. Non-interest expense, excluding other real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most (OREO), was $39.9 million in the fourth quarter of 1996, compared with $30.8 million in the fourth quarter of 1995. For the full year, non-interest expense, excluding OREO, was $144.8 million, compared with $118.7 million in 1995. A significant portion of the increases between the years was due to the acquisition of First LA. In addition, the settlement of the lender liability lawsuit recorded in the fourth quarter of 1996 accounted for $3.4 million of both the quarterly and full-year increases. City National's effective tax rate decreased to 28.6% in the fourth quarter of 1996 from 36.5% in the prior year's quarter. The decrease resulted from the recognition of $1.5 million in previously unrecorded 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 taxes and higher levels of municipal leases, municipal bonds and preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. holdings in the securities portfolio. Non-performing assets (non-accrual loans and OREO) increased slightly to $56.7 million at Dec. 31, 1996, from $55.6 million a year earlier. OREO increased $7.7 million between quarters, partially due to the balances acquired from First LA. Non- non- word element [L.]not . non- pref. Not: noninvasive. performing assets as a percent of total loans and related balances improved to 1.98% at Dec. 31, 1996, compared with 2.36% a year earlier. The allowance for credit losses at Dec. 31, 1996, totaled $130.1 million, or 4.58% of outstanding loans, compared with $131.5 million, or 5.60%, at Dec. 31, 1995. The allowance for credit losses as a percentage of non-accrual loans increased to 313.1% at Dec. 31, 1996, compared with 273.3% the prior year. Net recoveries for the fourth quarter of 1996 and 1995 totaled $1.5 million and $2.4 million, respectively. Full-year 1996 net chargeoffs were $1.4 million, compared with net recoveries of $7.1 million in 1995. 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, 1996, was 13.26%, while its leverage ratio was 9.75%. The ratios have decreased from the prior year due to the acquisition of First LA and a share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program, but continue to be substantially above the minimum capital ratio requirements for a "well-capitalized" institution. Ventura County National Bancorp (VCNB) shareholders yesterday approved the sale and merger of Ventura County National Bank into CNB. Riverside National Bank (RNB RNB Rhythm and Blues RNB Rassemblement National des Bucherons (National Assembly of Loggers, Gabon) RNB Radioactive Nuclear Beam RNB Ronneby, Sweden - Kallinge (Airport Code) ) shareholders meet on Jan. 17, 1997, to vote on the RNB merger into City National Bank. City National expects to complete the acquisition of VCNB on Jan. 17, 1997, and subject to approval by RNB shareholders, complete the acquisition of RNB on Jan. 24, 1997. City National Corp.'s principal subsidiary is City National Bank, the largest independent bank with headquarters in Southern California. A federally chartered, $4.2 billion commercial bank based in Beverly Hills, City National currently has 23 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. Ten new offices will be added and an expansion into Ventura and Riverside counties will take place with the pending mergers of Ventura County National Bancorp and Riverside National Bank into City National Bank. For more information about City National, please call the company's Fax-On-Demand Information Service. The 24-hour toll-free number is 800/873-5293. -0-
City National Corp.
Consolidated Balance Sheet
(Unaudited)
(000 omitted)
Dec. 31,
1996 1995 Percent
Assets Change
Cash and due from banks $ 342,024 $ 420,433 (19)
Securities 843,221 1,005,135 (16)
Federal funds sold 151,200 351,803 (57)
Loans and leases (net of
allowance for credit losses
of $130,089 and $131,514) 2,709,346 2,215,097 22
Other assets 170,705 165,083 3
Total assets $4,216,496 $4,157,551 1
Liabilities and Shareholders' Equity
Noninterest-bearing deposits $1,642,558 $1,490,934 10
Interest-bearing deposits 1,743,965 1,757,101 (1)
Total deposits 3,386,523 3,248,035 4
Federal funds purchased 194,549 258,353 (25)
Other short-term
borrowed funds 148,642 195,100 (24)
Long-term debt 34,800 25,000 39
Other liabilities 51,235 64,106 (20)
Total liabilities 3,815,749 3,790,594 1
Shareholders' equity 400,747 366,957 9
Total liabilities and
shareholders' equity $4,216,496 $4,157,551 1
Book value per common share $ 9.13 $ 8.19 11
Consolidated Statement of Income
(Unaudited)
(000 omitted)
For the three months ended
Dec. 31, Percent
1996 1995 Change
Interest income $ 73,497 $ 59,993 23
Interest expense (21,177) (16,834) 26
Net interest income 52,320 43,159 21
Provision for credit losses -- -- --
Net interest income after
provision for credit losses 52,320 43,159 21
Noninterest income 11,099 9,083 22
Gain (loss) on sales of securities (135) (1,094) NM
Gain (loss) on sales of assets 336 -- NM
Noninterest expense
before ORE results (39,921) (30,787) 30
ORE (expense) income (27) 624 (104)
Income before taxes 23,672 20,985 13
Income taxes (6,777) (7,654) (11)
Net income $ 16,895 $ 13,331 27
Net income per share 37 cents 29 cents 28
Dividends paid per share 9 cents 7 cents 29
Shares used to compute per-
share net income 45,627 45,762
For the 12 months ended
Dec. 31, Percent
1996 1995 Change
Interest income $282,123 $217,594 30
Interest expense (82,389) (55,331) 49
Net interest income 199,734 162,263 23
Provision for credit losses -- -- --
Net interest income after
provision for credit losses 199,734 162,263 23
Noninterest income 42,684 35,245 21
Gain (loss) on sales of securities 187 (596) NM
Gain (loss) on sales of assets 1,124 (83) NM
Noninterest expense
before ORE results (144,795) (118,684) 22
ORE (expense) income 200 608 (67)
Income before taxes 99,134 78,753 26
Income taxes (32,571) (29,961) 9
Net income $ 66,563 $ 48,792 36
Net income per share $ 1.47 $ 1.06 39
Dividends paid per share 36 cents 26 cents 38
Shares used to compute per-
share net income 45,146 45,886
City National Corp.
Selected Financial Information
(Unaudited)
Dec. 31,
1996 1995 Percent
Period end Change
(000 omitted)
Loans
Commercial loans $1,334,577 $1,080,125 24
Residential first mortgage
loans 882,573 593,546 49
Commercial real estate loans 499,377 553,095 (10)
Construction loans 92,322 81,318 14
Installment loans 30,586 38,527 (21)
Total loans $2,839,435 $2,346,611 21
Nonperforming assets:
Nonaccrual loans $ 41,543 $ 48,124 (14)
Other real estate 15,116 7,439 103
Total nonperforming
assets $ 56,659 $ 55,563 2
Loans past due 90 days or
more and still accruing
interest $ 12,444 $ 6,497 92
Ratio of nonaccrual loans
to total loans 1.46% 2.05%
Ratio of nonperforming
assets to total assets 1.34% 1.34%
Ratio of allowance for
credit losses to
nonaccrual loans 313.14% 273.28%
Deposits
Noninterest bearing $1,642,558 $1,490,934 10
Interest-bearing, core 1,383,105 1,413,372 (2)
Total core deposits 3,025,663 2,904,306 4
Time deposits --
$100,000 and over 360,860 343,729 5
Total deposits $3,386,523 $3,248,035 4
Tier 1 risk-based capital
ratio 13.26% 13.60%
Total risk-based capital
ratio 14.55% 14.91%
Tier 1 leverage ratio 9.75% 11.17%
For the three months ended
Dec. 31, Percent
1996 1995 Change
Average Balances
(000 omitted)
Loans
Commercial loans $1,239,115 $ 926,542 34
Residential first mortgage
loans 858,345 517,888 66
Commercial real estate loans 503,717 392,067 28
Construction loans 88,699 58,101 53
Installment loans 31,012 34,605 (10)
Total loans $2,720,888 $1,929,203 41
Total earning assets $3,656,276 $2,857,480 28
Total assets 3,973,518 3,090,192 29
Total core deposits 2,623,963 1,971,115 33
Average common equity 392,203 363,828 8
Selected Ratios
Return on average assets 1.69% 1.71%
Return on average common
equity 17.14% 14.54%
Net interest margin 5.88% 5.92%
For the 12 months ended
Dec. 31, Percent
1996 1995 Change
Average Balances
(000 omitted)
Loans
Commercial loans $1,123,819 $ 874,875 28
Residential first mortgage
loans 783,648 375,932 108
Commercial real estate loans 509,565 423,462 20
Construction loans 88,498 49,160 80
Installment loans 33,793 35,242 (4)
Total loans $2,539,323 $1,758,671 44
Total earning assets $3,505,422 $2,624,436 34
Total assets 3,821,314 2,849,807 34
Total core deposits 2,508,212 1,922,393 30
Average common equity 373,491 350,551 7
Selected Ratios
Return on average assets 1.74% 1.71%
Return on average common
equity 17.82% 13.92%
Net interest margin 5.87% 6.26%
CONTACT: City National Bank, Beverly Hills Frank Pekny, 310/888-6700 (financial) J.A. Dunnigan Dunnigan can refer to:
or Golin/Harris Melissa melissa: see bee balm. Robinson, 213/623-4200 (media) |
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