SOURCE: City National Bank of Florida

City National Bank of Florida

October 30, 2014 10:01 ET

City National Bank Reports Third Quarter Financial Results; Earnings Rise on Continued Strength of Lending and Deposit Growth

MIAMI, FL--(Marketwired - October 30, 2014) - City National Bank of Florida (CNB) announced strong financial results for the third quarter and first nine months of 2014. The bank's financial performance continues to be driven by significant lending and deposit growth, and bank-wide commitment to a superior client experience.

Core earnings for the first nine months of 2014 were $54.4 million compared to $42.1 million in 2013, more than a 29 percent increase. In addition, net income for the first nine months of 2014 was $32.9 million, compared to $29.7 million during the same period last year, for an increase of 11 percent.

"With our continued commitment to a unique client experience and the dedication of the entire CNB team, we continue to drive strong performance," CNB President & CEO Jorge Gonzalez said. "We are on track to have another very strong year as we continue to deploy our strategic growth plan."

Core earnings for the third quarter of 2014 were $19 million, compared to $14.9 million during the same period last year. The bank reported net income of $9.5 million for the third quarter, compared to $10.3 million for the third quarter of 2013, which included the release of $5.5 million in provisions. No provisions were released in the third quarter of this year. Without the release of provisions last year, earnings would have grown by $2.5 million, or 36 percent, in the current quarter.

CNB's asset quality and capital levels remain among the best in the industry. Non-accrual loans dropped to $12.8 million at the end of the third quarter, from $17.9 million a year ago. Non-accrual loans to total loans dropped to 0.39 percent in the third quarter 2014, down from 0.67 percent in September 2013. As of September 30, the company had total Tier 1 Capital of $609.9 million. CNB's Tier 1 Leverage Capital Ratio was 12.58 percent and Total Risk Based Capital Ratio was 17.19 percent.

Deposits increased by $490 million during the previous 12 months, a 14.9 percent increase. Deposits totaled more than $4 billion at the end of the third quarter, compared to $3.5 billion at the end of the third quarter last year.

City National Bank has already committed more than $1 billion in new loans during the first nine months of 2014, up more than $450 million from the same period last year. Loans totaled $3.3 billion at the end of the third quarter, growing by $611 million, or 22.94 percent, in the prior 12 months. During that time, commercial loans grew by 19 percent, commercial mortgages expanded by 44 percent and residential loans by more than 25 percent.

"Business lending has been a key component of our loan growth. As the economy continues to improve, we are seeing strong loan demand from local companies seeking to expand or take advantage of strategic opportunities," Gonzalez said. "As a community bank we are uniquely positioned to support entrepreneurs and business owners with a deep understanding of their needs and a unique business model based on personal relationships and local decision-making."

CNB's new Small Business Administration offerings have helped the bank fill an important gap in the communities it serves. The bank is currently ranked number six among all banks that do SBA loans in Miami-Dade County.

"Small business is a key economic driver in the state, and these SBA offerings have allowed us to expand our reach to serve businesses of all sizes," Gonzalez said. "These products complement other offerings critical to business, including professional lines of credit, term loans, working capital lines of credit and merchant and treasury management services."

In addition, the bank has strategically recruited talent to fuel its northward expansion in Broward and Palm Beach counties. CNB recently hired Eric Hartman, former PNC Bank Florida Market Manager, to serve as its regional executive in Palm Beach County and the bank continues to attract talent from other institutions as it continues to build out other lines of business in both counties.

"City National Bank continues to be recognized by analysts, the media, our community and the marketplace as the top community bank brand," Gonzalez said. "This will allow us to continue growing organically and strategically by recruiting the best talent to build out our footprint in South and Central Florida."

Financial Highlights

  • Core earnings for the first nine months of 2014 were $54.4 million compared to $42.1 million in 2013.
  • New loan commitments in the first nine months of 2014 totaled $1.09 billion.
  • Deposits grew by more than $490 million to $4 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. City National Bank has earned this distinction for ten consecutive quarters.

The bank has also received a number of honors recently, including being voted in 2013 as the Best Business Bank, Best Community Bank, Best Bank for Jumbo Loans and Best Bank for Commercial Real Estate Lending by the readers of the Daily Business Review. CNB also received the South Florida Business Journal's Business of the Year Award as well as its Community Bank of the Year Award.

City National Bank's key financial performance metrics include: 

     
  First Nine Months 2014 First Nine Months 2013
     
Net Income $32.9 million $29.7 million
Net Income Without Provision Release $26.9 million $20.1 million
Core Earnings $54.4 million $42.1 million
Total Deposits $4.0 billion $3.5 billion
Total Loans $3.3 billion $2.7 billion
     

Capital Ratios and Liquidity

CNB's capital position continued to strengthen in the third quarter of 2014 with $609.9 million Tier 1 Capital, compared to $520.7 million in the third quarter of 2013.

     
Tier 1 Leverage Capital Ratio 12.58% 5% is considered well capitalized
Tier 1 Risk Based Capital Ratio 17.19% 6% is considered well capitalized
Total Risk Based Capital Ratio 18.44% 10% is considered well capitalized
     

CNB continues to be one of the most liquid banks in Florida with excess on balance sheet liquidity of more than $1.1 billion.

Asset Quality

The bank's superior asset quality continued to improve in the third quarter of 2014 with non-accrual loans dropping to $12.8 million from $17.9 million in September 2013. Performing loans to total loans were 99.61 percent.

     
Allowance to total loans 1.45% More than adequate based on asset Quality
Allowance to Non-Accrual Loans 365% One of the highest in the industry
     

Other key indicators of asset quality:

  • Non-accrual loans to total loans declined to a very low 0.39%
  • Non-performing loans to capital declined to only 1.98%

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 $5.1 billion in assets, CNB is the fifth-largest financial institution 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 Bank for Commercial Real Estate, Best Bank for Jumbo Loans and a top private bank 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 at 26 convenient banking centers from Miami-Dade County to the greater Orlando area.

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