City National quarterly profit jumps sixfold
Emerging from the grip of the financial crisis, City National Corp. said strong growth in deposits and improving credit quality helped its quarterly profit jump sixfold.
The Los Angeles parent company of Southern California’s largest bank said Thursday that it earned $41.3 million, or 78 cents a share, in the second quarter, compared with $6.8 million, or 2 cents a share, in the same period last year. Second-quarter revenue totaled $304.5 million, up 39% from the second quarter of 2009.
Last year’s lower quarterly earnings in part reflected dividends paid on a $400-million investment from the U.S. Treasury that was part of a program to bolster the banking system during the economic free fall of 2008. City National, with $21.2 billion in assets, has since repaid the government’s investment in full.
The bank’s deposits rose 26% as of the end of June to $17.6 billion. Bad loans and other nonperforming assets on the books totaled $314.6 million, down from $396.3 million a year earlier.
The results included several unusual items related to the company’s three recent acquisitions of failed banks and the favorable settlement of tax litigation.
Excluding those items, second-quarter net income totaled 56 cents a share. Analysts on average had expected 49 cents.
The earnings were announced after the close of trading. City National shares gained $2.12 to $53.
