City National says 1Q net rose 6 percent

City National reports higher 1Q profit; expects 'modest' 2013 profit growth

Associated Press

LOS ANGELES (AP) -- City National Corp. said Thursday that its first-quarter net income rose 6 percent as lending and deposits both grew.

The parent of City National Bank earned $49.1 million after paying preferred dividends, or 90 cents per share, for the quarter that ended March 31. That was up from $46.3 million, or 86 cents per share, during the same period last year.

Analysts surveyed by FactSet expected 92 cents per share for the recent quarter.

Loans and leases rose 19 percent from a year earlier, to $15.2 billion. Deposits rose 11 percent to $22.4 billion.

Net interest income was flat at $206.3 million. Non-interest income rose 24 percent to $93.5 million because of its acquisitions of Rochdale Investment Management and First American.

The company said it continues to expect "modest" net income growth this year, even as loan and deposit balances increase. Low interest rates and little expectation for higher loan yields will continue to put pressure on the company's net interest margin, which is the difference between what it charges borrowers and what it pays to depositors.

The company also said it would pay a dividend of 25 cents per share on May 15 to shareholders of record on May 1.

The company's City National Bank has 78 offices in California, Nevada, Nashville, Tenn., Atlanta and New York.

Shares fell 29 cents to close at $54.36.

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