SOURCE: City National Bank

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October 30, 2015 09:58 ET

City National Bank Reports Strong Third Quarter Earnings as It Surpasses $4 Billion in Loans

MIAMI, FL--(Marketwired - October 30, 2015) - City National Bank of Florida (CNB), the state's premier private and commercial bank, announced strong earnings for the third quarter of 2015, driven by increases in business lending as the Florida economy continued to strengthen.

For the quarter ending September 30, 2015, core earnings were $25.8 million, compared to $19 million in the third quarter of last year. Core earnings for the first nine months of 2015 were $70.7 million compared to $54.4 million during the same period last year. The bank reported net income of $11.8 million in the third quarter of 2015 compared to $9.5 million in 2014. Net income for the first nine months of 2015 was $35.9 million compared to $32.9 million during the same period of last year.

City National Bank's financial results are particularly noteworthy because the bank made an additional $3.8 million in loan provisions during the first nine months of this year compared to releasing $10 million in provisions during the same period last year.

City National Bank continued its steady growth trajectory, reaching $6.2 billion in assets at the end of the third quarter, compared to $5.1 billion in assets at the end of the same period last year.

"The third quarter of 2015 saw the bank's strategic plan continue to come together, as evidenced by our superior results," CNB President and CEO Jorge Gonzalez said. "Of particular note is the increased commercial lending, which is a result of the continuously strengthening state economy."

Since the third quarter of last year, loans grew $740 million to $4 billion. The bank closed $1.3 billion in new loan commitments in the first nine months of 2015 compared to $1.09 billion during the same period last year. Commercial lending to local business continued to be the main driver of CNB's loan growth as the bank continued to have a positive impact on the local business community and economy.

"Our commitment to the communities we serve goes beyond our support of key organizations and initiatives," Gonzalez said. "We are dedicated to making our communities truly viable for economic growth, and our lending focuses on local businesses and entrepreneurs -- the backbone of our economy."

Deposits increased by $559 million during the last 12 months, totaling $4.6 billion at the end of the third quarter, compared to $4 billion at the end of the third quarter of last year. DDA accounts for 44% of all deposits at the bank.

"Our performance is also driven by our continued investment in our people and technology," Gonzalez said. "Our team continues to provide our clients with a superior experience based on personal relationships, exceptional service and local decision-making, and the marketplaces we serve continue to respond positively to our business model."

In the third quarter, City National Bank received its 14th consecutive 5-Star "Superior" rating by BauerFinancial, the leading bank rating firm. CNB is one of the most liquid and best capitalized banks in Florida, making it one of the safest and soundest institutions in the state.

In October, Banco de Credito e Inversiones (Bci) of Chile acquired City National Bank. This transaction maintains CNB as a South Florida-based community bank with the same focus on personal relationships and local decision-making, only now backed by the resources of one of the strongest banks in Latin America. In addition, the transaction preserved some 500 local jobs.

"We are extremely excited about the closing of the sale of the bank to Bci," Gonzalez said. "With the support of a Latin American powerhouse like Bci, we are in a prime position to continue to excel in 2015 and future years as a local community bank with global reach. We look forward to rolling out new products and services and continuing our controlled growth strategy."

City National Bank's key financial performance metrics include:

   
 Third Quarter 2015Third Quarter 2014
Net income$11.8 million$9.5 million
Core Earnings$25.8 million$19 million
Total Deposits$4.6 billion$4 billion
Total Loans$4.02 billion$3.27 billion
   

Capital Ratios and Liquidity

CNB's Tier 1 capital position continued to strengthen in the third quarter of 2015 to $772 million, compared to $610 million in the third quarter of 2014.

   
Tier 1 Leverage Capital Ratio13.02%5% is considered well capitalized
Tier 1 Risk Based Capital Ratio17.51%6% is considered well capitalized
Total Risk Based Capital Ratio18.65%10% is considered well capitalized
   

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

Asset Quality

The bank has retained a superior asset quality in the third quarter of 2015 with non-accrual loans of $19.2 million.

  
Allowance to Non-Accrual Loans 252%One of the highest in the industry

Other key indicators of asset quality:

• Non-accrual loans to total loans a low 0.48%
• Non-performing loans to capital only 2.37%
• Criticized assets to capital a low 3.96%

About City National Bank

Headquartered in Miami, City National Bank is the financial institution to which Floridians have turned for almost 70 years. With more than $6 billion in assets, CNB is one of the largest financial institutions based 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 Best Community Bank, Best Business Bank, Best Private Bank, Best Bank for Commercial Real Estate, Best Bank for Jumbo Loans and Best Bank for Foreign National Mortgages by the readers of the Daily Business Review. 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 and has 26 convenient banking centers located from Miami-Dade County to the greater Orlando area. For more information on City National Bank of Florida, visit www.citynational.com.

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