City National Bank Reports First Quarter 2013 Results; Earnings Rise on Lending and Deposit Growth

Marketwired

MIAMI, FL--(Marketwired - April 18, 2013) - City National Bank of Florida (CNB) announced strong financial results for the first quarter of 2013 as asset quality continued to strengthen accompanied by robust lending and deposit growth.

For the quarter ending March 31, 2013, pre-tax income was $15.5 million, compared to $9.4 million in the first quarter of last year. The bank reported net income of $9.5 million for the first quarter, up from $9.4 million for the first quarter of 2012. Core earnings before securities gains were $13.6 million in the first quarter, compared to $11.5 million in the same year-ago quarter.

"The excellent financial performance is the result of a disciplined focus on our diversification and growth plan, the consistent delivery of best-in-class service to our clients, and the strength and stability of City National Bank," CNB President and CEO Jorge Gonzalez said.

City National Bank's already superior asset quality continued to strengthen. Non-accrual loans dropped to $19.5 million in the first quarter, from $26.7 million a year ago. Non-accrual loans to total loans dropped to 0.78% in the first quarter from 1.33% in March 2012.

Assets grew by $529 million to $4.73 billion, and the bank's loan portfolio grew by $502 million to $2.52 billion, since the first quarter of 2012.

Deposits increased by $382 million during the previous 12 months. Deposits totaled $3.5 billion at the end of the first quarter, compared to $3.1 billion at the end of the first quarter of 2012.

"The credit for our success must go to the CNB team," Gonzalez said. "Their continued dedication to provide best-in-class service to our clients has been the key catalyst of our financial performance."

The bank's capital levels continue to run high. As of March 31, CNB had total Tier 1 Capital of $488.1 million. CNB's Tier 1 Leverage Ratio was 11.26% and Total Risk Based Capital Ratio was 19.78% -- among the best in the industry.

CNB continues to be one of the most liquid banks in Florida with excess liquidity of $1 billion.

The bank's financial strength and stability was recently recognized with another 5-star "Superior" rating, the highest possible, from BauerFinancial, the leading bank ratings firm.

The bank has also received a number of honors recently, including being named the Best Business Bank by the readers of the Daily Business Review and receiving the South Florida Business Journal's Outstanding Community Service Award. City National Bank is one of three finalists for the South Florida Business Journal's Business of the Year Award.

1Q Financial Highlights

  • Assets increased by $529 million in the last 12 months.
  • Loans grew by $502 million in the last 12 months.
  • Core earnings before securities gains were $13.6 million in the first quarter, compared to $11.5 million in the same year-ago quarter.
  • CNB closed more than $141 million in new loan commitments in the first quarter

City National Bank's key performance metrics include: 

         
    First Quarter 2013   First Quarter 2012
Pre-tax Income   $ 15.5 million   $ 9.4 million
Gross Loans    $ 2.52 billion   $ 2.02 billion
Total Deposits    $ 3.5 billion   $ 3.1 billion
             
             

Capital Ratios

CNB's capital position continued to strengthen in the first quarter of 2013 with $488.1 million, compared to $393 million in the first quarter of 2012.

         
Tier 1 Leverage Capital   11.26%   5% is considered well capitalized
Tier 1 Risk Based Capital Ratio   18.52%   6% is considered well capitalized
Total Risk Based Capital Ratio   19.78%   10% is considered well capitalized
         
         

Asset Quality

The bank's superior asset quality continued to improve in the first quarter of 2013 with non-accrual loans dropping to $19.5 million, down from $26.7 million in March 2012.

         
Allowance to total loans   2.36%   Among the highest in the state
Allowance to Non-Accrual Loans   292%   One of the highest in the industry
         
         

Other key indicators of asset quality:

  • Non-accrual loans to total loans declined to 0.78%
  • Non-performing loans to capital declined to 3.72%

Loan Growth

The bank produced exceptional loan growth as CNB continued to diversify its portfolio, with particularly notable increases in consumer and business lending. Commercial loans grew by 40 percent during the last 12 months. Consumer loans expanded by 162 percent during the same period, as residential lending increased 29 percent and commercial real estate expanded by 23 percent.

Despite the rapid lending growth, City National Bank's liquidity remained strong, with a loan to deposit ratio of 72 percent and $1 billion in excess liquidity. 

About City National Bank of Florida

Headquartered in Miami, City National Bank (CNB) is the financial institution to which Floridians have turned for more than 65 years. The fifth-largest financial institution in the state, City National Bank is one of the most liquid and best capitalized banks in Florida and is rated 5 stars "Superior" by BauerFinancial. CNB was voted the Best Business Bank by the readers of the Daily Business Review. The bank was also named the South Florida Business Journal's Local/Community Bank of the Year in 2011. CNB offers a diversified portfolio of financial products and services at 26 convenient banking centers from Miami-Dade County to the greater Orlando area.

Contact:
CONTACT:
Eddie Dominguez
(305) 577-7315
eddie.dominguez@citynational.com 

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