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City National Corporation – CYN – Quarterly common stock cash dividend of $0.25 per share

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City National Corporation (NYSE:CYN), the parent company of wholly owned City National Bank, today reported second-quarter 2012 net income of $54.8 million, or $1.01 per share, up 15 percent from $47.5 million, or $0.88 per share, in the second quarter of 2011.

Year to date, City National’s net income totaled $101.0 million, up 16 percent from $87.2 million in the first half of 2011. Earnings per share were $1.87, up 15 percent from $1.62 in the first half of last year.

CYN also announced that its Board of Directors has maintained and approved a quarterly common stock cash dividend of $0.25 per share. The company’s dividend is payable on August 15, 2012 to stockholders of record on August 1, 2012.


CYN Second-Quarter 2012 Highlights

  • Average second-quarter loan balances, excluding loans covered by City National’s acquisition-related loss‑sharing agreements with the Federal Deposit Insurance Corporation (FDIC), were $13.1 billion, up 14 percent from the second quarter of last year and 6 percent higher than the first quarter of 2012.
  • Fully taxable-equivalent net interest income amounted to $221.4 million, up 13 percent from the year-earlier period and up 8 percent from the first quarter of 2012.
  • Second-quarter deposit balances averaged $20.9 billion, up 12 percent from the second quarter of 2011 and up 4 percent from the first quarter of 2012. Average core deposits, which equal 97 percent of total balances, were up 13 percent from the second quarter of 2011 and up 4 percent from the first quarter of 2012.
  • Excluding FDIC-covered loans, second-quarter 2012 results included a $1 million provision for loan and lease losses. The company recorded no provision, excluding FDIC-covered loans, in the first quarter of 2012.
  • On April 30, 2012, City National Bank completed the acquisition of First American Equipment Finance, a privately owned, full-service mid-ticket equipment leasing company with $340 million in assets, which added $306 million to the company’s second-quarter period-end loan balances. During the second quarter, the bank also announced the acquisition of Rochdale Investment Management, a New York City-based investment firm that manages $4.9 billion of assets for affluent and high-net-worth clients and their financial advisors across the nation. This transaction closed on July 2, 2012.
  • Second-quarter 2012 earnings included income of $5.9 million from the recovery of a previously charged-off loan and $2.8 million of transaction costs related to the acquisitions of Rochdale Investment Management and First American Equipment Finance. Income, net of expense, from FDIC-covered assets, excluding the base yield, totaled $7.3 million in the second quarter, up from $0.9 million in the first quarter of 2012. (The base yield is the yield on covered assets, excluding income related to covered loans that are repaid or charged off.) The aggregate impact of these three items was after-tax income of $6.0 million, or $0.11 per share.
  • On June 20, 2012, City National Bank completed a successful offering of $150 million of 10‑year subordinated debt securities with a fixed interest rate of 5.375 percent. The company will use the proceeds for general corporate purposes.

About City National – CYN

City National Corporation’s (CYN ) wholly owned subsidiary, City National Bank, provides banking, investment and trust services through 78 offices, including 16 full-service regional centers, in Southern California, the San Francisco Bay Area, Nevada, New York City, Nashville and Atlanta. The corporation and its investment affiliates manage or administer $58.0 billion in client investment assets, including $32.1 billion under direct management.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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