SOURCE: City National Bank

City National Bank

October 31, 2016 12:21 ET

City National Bank Continues Growth Streak in Third Quarter

Earnings expand to record $46.4 million in first nine months of 2016

MIAMI, FL--(Marketwired - October 31, 2016) - City National Bank (CNB), Florida's premier private and commercial bank, announced financial results for the third quarter and first nine months of 2016, reporting a substantial increase in income, lending and assets.

Net income for the first nine months of the year increased more than 29 percent to $46 million, $10.4 million more than the same period last year, after a one-time tax expense of $2.4 million. Third quarter net income rose 47 percent to $17.4 million compared to $11.8 million a year ago.

"At the beginning of the year, we embarked on a strategic growth plan which has clearly shown solid results," CNB President and CEO Jorge Gonzalez said. "This plan is aimed at expanding City National and uniquely positioning it as a community bank with the scale to provide the services the marketplace wants, while still delivering a unique client experience based on personal relationships."

The bank has entered the Tampa market, added more than 50 employees, repositioned its banking centers with a stronger commercial focus and rolled out a new brand image.

"We are laser focused on constantly innovating and improving to serve our clients better," Gonzalez said. "The chief focus of our growth strategy is to add the solutions and services our clients need and to invest in our people, who are paramount to our success."

In the third quarter of 2016, City National Bank was named one of the 'Best Banks to Work For' in the country by American Banker Magazine. The program, which was initiated in 2013 to identify, recognize and honor the best banks to work for in the nation, recognized 60 banks throughout the United States. City National Bank was the largest Florida-based bank to be named to the list.

"Banking is a people business and as an employer of choice we continue to recruit and retain the best talent in the marketplace," Gonzalez added. "We operate under the simple belief that we differentiate ourselves with our people and the client experience they deliver."

Financial Highlights:

  • City National Bank has grown by $1.5 billion over the last twelve months to $7.8 billion in assets, a 25 percent increase from 2015.
  • Net interest income for the quarter increased to $54.9 million, a 20 percent increase compared to the same period last year.
  • The loan portfolio grew by $943 million, or more than 23 percent, during the last 12 months.
  • The bank originated $1.8 billion in new loan commitments during the first nine months of 2016 and funded $1.4 billion in new loans.

At the end of the third quarter, deposits were up to $5.1 billion, an increase of $574 million from the third quarter of 2015. DDA accounts for 40 percent of all deposits.

The bank has grown loans by $943 million, or 23.5 percent, in the last twelve months to almost $5 billion in loans outstanding, compared to $4 billion at the same time last year. In the third quarter alone, new loan commitments totaled $528.2 million.

"As we have put more of a focus on the commercial segment, we have seen strong growth as local businesses continue to grow and expand," Gonzalez said. "Business owners and entrepreneurs increasingly see the value in a bank that takes the time to get to know them, understand their needs and be a partner in their success."

In addition, as the bank continues its growth trajectory it also enhanced its board roster. It recently added two new members to its already impressive board: Fernando Capablanca, Managing Director of Whitecap Consulting Group LLC in Coral Gables and Charles Papy, Of Counsel at the law firm of Duane Morris in Miami.

"With the new additions to the Board of Directors, City National Bank is uniquely positioned with quality leadership," CNB President and CEO Jorge Gonzalez said. "Their combined experience in banking and business in general will be true assets as we look to strategically grow CNB into a powerhouse community bank."

City National Bank continued its streak of accolades and recognition in 2016, receiving the coveted five-star "Superior" rating -- the highest possible -- from BauerFinancial, the leading bank ratings firm, for the 17th consecutive quarter. BauerFinancial has been reporting on and analyzing the performance of U.S. banks and credit unions since 1983.

Financials and other key metrics

  Third Quarter 2016 Second Quarter 2016 First Quarter 2016 Third Quarter 2015
Net interest income $54.9 million $50.8 million $48.8 million $45.6 million
Net income $17.4 million $15.7 million $13.3 million $11.8 million
Total Loans $5.0 billion $4.8 billion $4.3 billion $4.0 billion
Total Deposits $5.1 billion $4.8 billion $4.8 billion $4.6 billion
     

Capital

City National Bank's strong capital position continued to improve. Tier 1 capital grew to $888.8 million, an increase of $22.5 million over June 2016.

  • Tier 1 Leverage Capital 12.08% 5% is considered well capitalized
  • Tier 1 Risk Based Capital Ratio 15.57% 8% is considered well capitalized

CNB continues to be one of the most liquid banks in Florida with excess liquidity of nearly $1.2 billion.

Asset Quality

  • Non-accrual loans to total loans remain at a very low 0.39%
  • Non-performing loans to capital remain at a very low 2.15%

About City National Bank of Florida
Headquartered in Miami, City National Bank (CNB) is the financial institution to which Floridians have turned for 70 years. With more than $7 billion in assets, CNB is one of the largest financial institutions based in the state. City National Bank is a subsidiary of Chilean bank Banco de Credito e Inversiones (Bci), and remains a South Florida-based community bank with local decision making. 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 Best Community Bank, Best Business Bank, Best Bank for Commercial Real Estate, Best Bank for Jumbo Loans, Best Private Bank and Best Foreign National Mortgage Lender by the readers of the Daily Business Review for the past four years. The South Florida Business Journal named it Business of the Year in 2013 and Community Bank of the Year in 2013 and 2011. CNB offers a diversified portfolio of financial products and services at 26 convenient banking centers from Miami-Dade County to Central Florida.

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