City National posts 40 percent increase in earnings for second quarter.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)--July 12, 1995--City National Corp. (NYSE NYSE See: New York Stock Exchange :CYN CYN Canyon ) Wednesday Wednesday: see week. reported significantly improved operating results for the second quarter of 1995, reflecting higher net interest income and continuing improvements in credit quality. Net income for the second quarter ended June June: see month. 30, 1995, rose 40 percent to $11.6 million, or 25 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared with second quarter 1994 net income of $8.2 million, or 18 cents per share. The improved quarterly results reflected an 11 percent increase in average loans and leases, higher net interest income and the absence of any credit loss provision. In the prior year period, the company recorded a $3.0 million credit loss provision. For the six months ended June 30, 1995, net income rose to $22.2 million, or 48 cents per share, which includes the benefit of a zero credit loss provision. For the prior year six-month period, the company reported net income of $16.9 million, or 37 cents per share, which included a $6.0 million credit loss provision offset by gains on sales of assets and ORE of $1.3 million and $5.3 million, respectively. For the six months of 1995, return on average assets improved to 1.65 percent from 1.20 percent, while the return on average equity rose to 13.12 percent from 11.15 percent in the prior year period. "City National's continued earnings growth is further demonstration of our commitment to re-establishing the bank as a vital and major presence in its market. This accomplishment is particularly noteworthy in view of the competitive 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, marketplace," stated Bram BRAM Broadcast Recognition Access Method BRAM Block Random Access Memory (communications) BRAM Buffer Random Access Memory (AT&T) BRAM Battery-Protected RAM (Cisco) Goldsmith, City National chairman and chief executive officer. Net interest income on a fully taxable-equivalent basis rose to $41.0 million in the second quarter of 1995, compared with $35.7 million in the prior year's quarter. Second quarter 1995 average loan balances increased 11 percent over the prior year period, due mainly to a $287.4 million increase in average residential first mortgage loan balances, and $33.8 million in construction lending. The second quarter net interest margin rose to 6.39 percent from 5.52 percent a year earlier, while the six-month net interest margin was 6.38 percent, compared with 5.28 percent in the 1994 period. For the second consecutive quarter, loan loss recoveries exceeded loan charge offs. Loan loss recoveries in the second quarter were $6.3 million, compared with loan charge offs of $5.7 million. The company recorded a zero credit loss provision for the quarter, as a result of net recoveries, decreases in nonaccrual loans, and a greater concentration in the loan portfolio of residential first mortgages (which generally contain lower loss exposure). The 1994 second quarter's provision and net charge offs were $3.0 million and $9.1 million, respectively. The zero provision for credit losses in the 1995 six-month period reflected loan loss recoveries of $12.3 million, which were partially offset by loan charge offs of $8.6 million. In the corresponding period of the prior year, the credit loss provision was $6.0 million, with loan charge offs of $26.3 million offset by loan recoveries of $15.2 million. Noninterest income for the second quarter of 1995, excluding gains and losses on the sales of securities was $8.5 million, down from $8.9 million in the prior year period. For the six months ended June 30, 1995, noninterest income totaled $16.7 million, a decrease from last year's total of $17.9 million. These decreases were primarily due to the reduction in service fee income on deposit accounts of $0.5 million between the respective second quarters and $1.4 million between the six-month periods. The company sold securities during the second quarter for a gain of $0.3 million. Including a similar gain from securities sales in the first quarter, the total six-month gain was $0.6 million. Noninterest expense, excluding ORE results, was $30.2 million in the second quarter of 1995 compared with $29.4 million in the 1994 period. The increase reflects higher costs 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 attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the company's positive operating results, and increased marketing and promotional expenditures to support the company's sales efforts. For the six months of 1995, noninterest expense excluding ORE results was $59.8 million compared with $60.0 million in the 1994 period. ORE expense for the second quarter of 1995 was $0.1 million compared with income of $.8 million in the year-earlier period. For the six months of 1995, ORE activity generated expense of $0.2 million, compared with income in the prior year of $5.3 million, a significant portion of which was related to the company's completion of its Accelerated Asset Disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of Program. City National's effective tax rate increased to 39.1 percent in the second quarter of 1995 from 35.1 percent in the prior year quarter, as 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). net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. were fully utilized in 1994. Total average assets were $2.7 billion for the second quarter of 1995. Average loans for the period increased to $1.7 billion, which included $306.3 million of 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 loans. This compared with average loans of $1.5 billion in the second quarter of 1994. Average core deposits decreased 9.7 percent between the second quarters of 1995 and 1994. Levels of 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 $47.2 million at June 30, 1995, from $72.3 million a year earlier. Nonperforming assets as a percent of total assets improved to 1.67 percent at June 30, 1995, compared with 2.52 percent a year earlier. 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 June 30, 1995, was 18.72 percent, while its leverage ratio was 12.86 percent. City National Bank's Tier 1 capital ratio was 17.71 percent and its leverage ratio was 12.15 percent. Both the corporation's and the bank's ratios are substantially above the minimum capital ratio requirements for a well-capitalized institution. During the second quarter of 1995, the board of directors authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of up to 5 percent of the outstanding shares of the company. As of June 30, 1995, shares totaling 144,300 had been repurchased at a cost of $1.6 million. City National Corp.'s principal subsidiary is City National Bank, a $2.8 billion federally chartered commercial bank with headquarters in Beverly Hills, with offices in 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. , 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)
June 30,
1995 1994 Percent
Assets Change
Cash and due from banks $ 216,755 $ 210,251 3 Securities 811,645 962,130 (16) Federal funds sold 100,000 215,000 (53) Loans and leases (net of allowance for credit losses of $109,052, $105,380 and $105,343) 1,590,774 1,392,731 14 Other assets 99,301 88,527 12 Total assets $2,818,475 $2,868,639 (2) Liabilities and Shareholders' Equity Noninterest-bearing deposits $ 914,364 $ 954,336 (4) Interest-bearing deposits 1,108,856 1,331,410 (17) Total deposits 2,023,220 2,285,746 (11) Federal funds purchased 312,068 185,955 68 Other borrowed funds 97,756 50,000 96 Other liabilities 34,366 34,656 (1) Total liabilities 2,467,410 2,556,357 (3) Shareholders' equity 351,065 312,282 12 Total liabilities and shareholders' equity $2,818,475 $2,868,639 (2) Book value per common share $ 7.76 $ 6.92 12
Dec. 31,
1994 Percent
Assets Change
Cash and due from banks $ 299,389 (28) Securities 774,966 5 Federal funds sold 296,966 (66) Loans and leases (net of allowance for credit losses of $109,052, $105,380 and $105,343) 1,538,575 3 Other assets 102,879 (3) Total assets $3,012,775 (6) Liabilities and Shareholders' Equity Noninterest-bearing deposits $1,151,709 (21) Interest-bearing deposits 1,226,053 (12) Total deposits 2,417,762 (16) Federal funds purchased 182,120 71 Other borrowed funds 50,000 96 Other liabilities 32,172 7 Total liabilities 2,682,054 (8) Shareholders' equity 330,721 6 Total liabilities and shareholders' equity $3,012,775 (6) Book value per common share $ 7.32 6
Consolidated Statement of Operations
(Unaudited)
(000 omitted)
For the three months ended
June 30, Percent
1995 1994 Change
Interest income $ 53,018 $ 44,868 18 Interest expense 12,566 9,443 33 Net interest income 40,452 35,425 14 Provision for credit losses -- 3,000 (100) Net interest income after provision for credit losses 40,452 32,425 25 Noninterest income 8,520 8,874 (4) Gains (losses) on sales of securities 291 -- NM Gains on sales of assets -- -- NM Noninterest expense before ORE results 30,214 29,401 3 ORE (expense) income (59) 774 (108) Income before taxes 18,990 12,672 50 Income taxes 7,429 4,443 67 Net income $ 11,561 $ 8,229 40 Net income per share 25 cents 18 cents 39 Dividends paid per share 7 cents -- NM Shares used to compute per- share net income 45,804 45,848
For the six months ended
June 30, Percent
1995 1994 Change
Interest income $102,388 $ 85,606 20 Interest expense 23,423 18,192 29 Net interest income 78,965 67,414 17 Provision for credit losses -- 6,000 (100) Net interest income after provision for credit losses 78,965 61,414 29 Noninterest income 16,742 17,864 (6) Gains (losses) on sales of securities 635 -- NM Gains on sales of assets -- 1,331 (100) Noninterest expense before ORE results 59,839 60,035 0 ORE (expense) income (211) 5,300 (104) Income before taxes 36,292 25,874 40 Income taxes 14,114 8,985 57 Net income $ 22,178 $ 16,889 31 Net income per share 48 cents 37 cents 30 Dividends paid per share 12 cents -- NM Shares used to compute per- share net income 45,822 45,550
City National Corp.
Selected Financial Information
(Unaudited)
(000 omitted)
June 30,
1995 1994 Percent
Period end Change
Loans Commercial loans $ 827,434 $ 872,443 (5) Commercial real estate loans 425,870 533,365 (20) Residential first mortgage loans 358,431 38,135 840 Construction loans 52,356 14,622 258 Installment loans 35,735 39,546 (10) Total loans $1,699,826 $1,498,111 13 Nonperforming assets: Nonaccrual loans $ 42,418 $ 68,357/a (38) Other real estate 4,733 3,992/a 19 Total nonperforming assets $ 47,151 $ 72,349 (35) Loans past due 90 days or more and still accruing interest $ 3,660 $ 29,861 (88) Ratio of nonaccrual loans to total loans 2.50 pct. 4.56 pct. Ratio of nonperforming assets to total assets 1.67 pct. 2.52 pct. Ratio of allowance for credit losses to nonaccrual loans 257.09 pct. 154.16 pct. Deposits Noninterest bearing $ 914,364 $ 954,336 (4) Interest-bearing, core 976,082 1,185,255 (18) Total core deposits 1,890,446 2,139,591 (12) Time deposits -- $100,000 and over 132,774 146,155 (9) Total deposits $2,023,220 $2,285,746 (11) Tier 1 risk-based capital ratio 18.72 pct. 18.44 pct. Total risk-based capital ratio 20.03 pct. 19.75 pct. Tier 1 leverage ratio 12.86 pct. 11.14 pct.
Dec. 31,
1994 Percent
Period end Change
Loans Commercial loans $ 906,417 (9) Commercial real estate loans 457,030 (7) Residential first mortgage loans 212,595 69 Construction loans 31,201 68 Installment loans 36,675 (3) Total loans $1,643,918 3 Nonperforming assets: Nonaccrual loans $ 58,801/a (28) Other real estate 4,726/a 0 Total nonperforming assets $ 63,527 (26) Loans past due 90 days or more and still accruing interest $ 4,302 (15) Ratio of nonaccrual loans to total loans 3.58 pct. Ratio of nonperforming assets to total assets 2.11 pct. Ratio of allowance for credit losses to nonaccrual loans 179.15 pct. Deposits Noninterest bearing $1,151,709 (21) Interest-bearing, core 1,141,283 (14) Total core deposits 2,292,992 (18) Time deposits -- $100,000 and over 124,770 6 Total deposits $2,417,762 (16) Tier 1 risk-based capital ratio 17.50 pct. Total risk-based capital ratio 18.81 pct. Tier 1 leverage ratio 11.87 pct.
For the three months ended
June 30, Percent
1995 1994 Change
Average Balances
(000 omitted)
Loans Commercial loans $ 831,751 $ 862,402 (4) Commercial real estate loans 445,254 561,045 (21) Residential first mortgage loans 306,321 18,909 1,520 Construction loans 47,499 13,716 246 Installment loans 36,420 40,733 (11) Total loans $1,667,245 $1,496,805 11 Total earning assets $2,515,698 $2,593,645 (3) Total assets 2,734,349 2,836,281 (4) Total core deposits 1,895,489 2,098,061 (10) Average common equity 346,345 309,345 12 Selected Ratios Return on average assets 1.70 pct. 1.16 pct. Return on average common equity 13.39 pct. 10.67 pct. Net interest margin 6.39 pct. 5.52 pct.
For the six months ended
June 30, Percent
1995 1994 Change
Average Balances
(000 omitted)
Loans Commercial loans $ 849,450 $ 882,273 (4) Commercial real estate loans 447,816 581,357 (23) Residential first mortgage loans 268,855 14,714 1,727 Construction loans 41,710 13,934 199 Installment loans 35,679 41,883 (15) Total loans $1,643,510 $1,534,161 7 Total earning assets $2,487,155 $2,592,151 (4) Total assets 2,711,298 2,846,142 (5) Total core deposits 1,918,802 2,114,346 (9) Average common equity 340,992 305,463 12 Selected Ratios Return on average assets 1.65 pct. 1.20 pct. Return on average common equity 13.12 pct. 11.15 pct. Net interest margin 6.38 pct. 5.28 pct.
(a) Restated to reflect adoption of Statements of Financial
Accounting Standards 114 and 118.
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 , Los Angeles Craig Craig , Edward Gordon 1872-1966. British theatrical producer, director, and designer whose innovative productions and simplified stage designs influenced modern theater. A. Parsons, 310/207-9300 |
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