SOURCE: City National Bank

City National Bank

April 27, 2016 12:32 ET

City National Bank Continues Strong Earnings Streak; Premier Florida Bank Poised for Substantial Growth

Bank Surpasses $7 Billion Asset Mark Fueled by Increased Lending and Deposits; Launches New Initiative to Grow Commercial Segment

MIAMI, FL--(Marketwired - April 27, 2016) - City National Bank (CNB), Florida's premier private and commercial bank, announced its financial results for the first quarter of 2016, continuing to post significant gains in lending, deposits and assets.

Net income before taxes surged to $25 million in the first quarter, compared to $18.1 million in 2015, an increase of 38 percent. Net income increased to $13.3 million, $2 million more than the same period last year, after a one-time tax expense adjustment of $2.4 million, representing a 17 percent increase.

"The first quarter of 2016 saw substantial growth, which is an indicator that the marketplace continues to embrace our unique model based on personal relationships and delivering a best-in-class experience," CNB President and CEO Jorge Gonzalez said. "We continued to implement the next phases of our strategic plan, including deepening our commercial focus and adding top talent throughout the bank and that is just beginning to deliver results."

The bank has grown by $1.5 billion over the last twelve months to an impressive $7.1 billion in assets, a 27.4 percent increase from 2015.

"Momentum has continued to build since we completed the acquisition of the bank by Bci late last year," Gonzalez said. "Recruiting talent and generating business have accelerated as the market understands the significant potential and stable future ahead for City National Bank."

At the end of the first quarter, deposits totaled $4.8 billion, up from $4.3 billion in the first quarter of 2015. Demand deposit accounts are also up, with first quarter DDA at $2.1 billion, compared to $1.9 billion in 2015. DDA accounts for 43 percent of all deposits.

City National Bank has continued to grow loans in the first quarter of 2016, closing $384 million in new loan commitments. The bank has grown loans by $693 million, or 19.5 percent, in the last twelve months to $4.3 billion in loans outstanding, compared to $3.6 billion at the same time last year.

Commercial lending is up 14 percent over 2015 and commercial mortgages have increased 28 percent.

"Small and mid-sized companies are the key economic drivers in the state, and our commercial segment continues to show robust and diverse growth," Gonzalez said. "Business owners, executives and entrepreneurs are especially receptive to our high-touch, hands on approach with direct access to decision-makers and the personalized attention that is CNB's hallmark." 

At the end of 2015, City National Bank launched a new initiative to realign its banking centers with more of a commercial focus. The strategy is intended to build on the success of CNB's four-year-old business banking division, which has contributed significantly to CNB's loan and deposit growth.

"The early results of this new strategy are very promising and after successfully piloting this initiative, we have decided to roll it out across our entire foot print," Gonzalez said. "It's important to note that we still have a robust Private Client Group unit serving high net worth individuals and professionals and that our banking center teams will continue to serve consumers." 

During the first quarter, City National Bank has recruited top talent for positions throughout the bank, including its Private Client Group, Personal & Business Banking and Corporate Banking.

Most recently, Christopher V. Damian joined the bank's executive team as an Executive Vice President and will oversee the bank's Private Client Group, Residential Lending unit and will help establish the bank's Private Wealth Management division. Damian, a 25-year veteran private banker and wealth manager, previously served as Chief Lending Officer and Private Banking Director for Gibraltar Private Bank & Trust.

"In the last few months, we have seen a dramatic increase in the talent pool seeking to join City National Bank. They want to be part of this people-centric culture and are excited by the prospects of the community bank with global reach that we are building together with our new partners at Bci," Gonzalez said. "We are uniquely positioned in a gateway city, serving a fast-growing state, with the backing of one of the strongest and most innovative banking groups in the region."

City National Bank continued its streak of accolades and recognition in the first quarter 2016, receiving the coveted five-star "Superior" rating -- the highest possible -- from BauerFinancial, the leading bank ratings firm, for the 15th consecutive quarter. BauerFinancial has been reporting on and analyzing the performance of U.S. banks and credit unions since 1983.

 Financials

    First Quarter 2016   First Quarter 2015
         
Net interest income   $48.8 million   $39.9 million
Net income before taxes   $25.0 million   $18.1 million
Net income   $13.3 million   $11.3 million
Total Loans   $4.3 billion   $3.6 billion
Total Deposits   $4.8 billion   $4.3 billion
         

Capital

City National Bank's strong capital position also continued to improve. Tier 1 capital grew to $835.5 million, an increase of $97 million over March 2015.

Tier 1 Leverage Capital   12.85%   5% is considered well capitalized
Tier 1 Risk Based Capital Ratio   17.25%   8% is considered well capitalized

CNB continues to be one of the most liquid banks in Florida with excess liquidity of nearly $1.6 billion.

Asset Quality

  • Non-accrual loans to total loans remain at a very low 0.33%
  • Non-performing loans to capital remain at a very low 1.66%

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. With more than $7 billion in assets, CNB is one of the largest financial institutions based in the state. In September of 2015, Banco de Credito e Inversiones, one of the largest banks in Chile with approximately $40 billion in assets, completed the acquisition of CNB. The transaction represented the largest single investment ever by a Chilean company in the United States. The bank 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 the greater Orlando area.

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