City National reports 14 percent increase in earnings for 1997 first quarter.
Total average assets increased 20.4 percent to $4.4 billion. Average loans and core deposits increased 32.9 percent and 19.1 percent, respectively, due in part to recent acquisitions.
``The first quarter of 1997 was another outstanding period for City National, highlighted by strong operating earnings and our acquisitions of Ventura County National Bancorp (VCNB) and Riverside National Bank (RNB) in January,'' said Russell Goldsmith, chairman of the board and chief executive officer of City National Bank.
``Adding these banks extends City National's geographic reach throughout Southern California, and we expect to more fully recognize the economic benefits of these acquisitions in the second half of the year.''
Both quarters were impacted by non-recurring items, the net effect of which was not material to net income. In addition, first quarter 1997 per-share results were affected by the recent acquisitions involving common stock issuance, causing the number of shares outstanding to be 6 percent higher than last year.
Net interest income on a fully taxable-equivalent basis rose 23.8 percent to $61.8 million in the first quarter of 1997, compared with $49.9 million in the first quarter of 1996. Interest income recoveries in 1997 were $2.7 million vs. $.7 million last year. Average loan balances increased 32.9 percent between first quarters due to the continued growth and the acquisitions of VCNB and RNB.
The first quarter net interest margins increased to 6.11 percent from 5.99 percent a year earlier, due to the strong increase in 5 percent in the 1997 first quarter, compared with 1.73 percent in 1996, and the return on average commons, was $11.9 million for the first quarter of lion in the first quarter of 1997, compared withded $1.7 million in costs to cover certain integLA. The integration of VCNB and RNB into City the unreserved portion of the cost of a buyout of the company's then existing data processing contract, tther non-interest expense.
City National's effective tax rate increased to 36.8 percent in the first quarter of 1997 from 35.0 percent in the prior year's quarter. The increase resulted from the recognition of $.9 million in previously unrecorded deferred taxes in the first quarter of 1996.
Nonperforming assets (nonaccrual loans and OREO) decreased slightly to $59.6 million at March 31, 19 between quarters, partially due to the balances acquired from VCNB and RNB. Nonperforming assets as a pe The allowance for credit losses at March 31 nonaccrual loans increas ed to 338.3 percent at March 31, 1997, compared with 244.9 percent at March 31, 1996. Net chargeoffs (recoveries) for the first quarter of 1 substantially above the minimum capital ration under the new buyback program. Shares purchargest independent bank with headquarters in Southern California. A federally chartered, $4.6 billion commerity National Corp. is a publicly owned corpor ati (000 omitted)
$ 270,071 $ 333,602 (19) Securities 857,090 868,728 (1) F614 and $128,911) 3,164,387 2,245,003 ,996 (55) Other short-term borrowed ftal liabilities 4,118,370 3,411,163 21 Shareholders' equity 465,275 356,778 30 Total liabilities and
shareholders' eon share $ 9.99 $ 8.18 22 st expense (23,535) (19,161) 23 Net interest income 59,772 49,160 22 Provision for credit losses -- -- -- Net interest income after provision for credit losses 59,772 49,160 039 688 51 Noninterest expense before ORE results (43,547) (35,987) r share 11 cents 9 c ents
Change (000 omitte 929,205 714,369 30 Commercial real estate loans 640,866 521,514 23 Construction loans 121,746 83,040 47 Installment loans 48,387 36,0
Ratio of nonaccrual loans to total loans 1.23% 2.22% Ratio of nonperformi 25 Time deposits --
$100,000 12.18% 13.88% Total risk-based capntial first mortgage
loans ans 47,725 37,114 29
Total loans $3,122,454 $2,348,652 33
Total earning assets $4,032,868 $3,346,71 20 Total core deposits 2,939,175 2,468,806 19 Average common equity 449,413 366,807 23
Return on average assets 1.65% 1.73% Return on average common equity 16.25% 17.38% Net interest margin 6.11% 5.99%
CONTACT: City National Bank, Beverly Hills
Frank Pekny, 310/888-6700 (financial)
J.A. Dunnigan, 310/888-6636 (media)
Greg Romano, 213/623-4200 (media)
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|Date:||Apr 15, 1997|
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