City National parent’s profit surpasses Wall Street forecasts
City National Corp., the parent company of City National Bank, posted a first-quarter profit Thursday that beat Wall Street expectations as the regional bank continued to benefit from improving credit quality.
For the first quarter, net income was $46.3 million, or 86 cents a share, up from $39.7 million, or 74 cents a share, a year earlier.
Analysts surveyed by Yahoo Finance had expected earnings of 83 cents a share. City National shares gained 26 cents, or 0.51 percent, to $51.66 Thursday on the New York Stock Exchange.
Net interest income was $205.4 million in the first quarter, up 11 percent.
City National said it did not have to keep aside any money to cover its bad loans in the first quarter, excluding Federal Deposit Insurance Corp.-covered loans. The bank, however, cautioned it expects to record loan-loss provisions during the rest of 2012.
"In the first quarter, City National continued to perform well: It grew net income substantially, improved its performance and credit quality, added capital and clients, and invested in the company's future," City National President and CEO Russell Goldsmith said.
City National, with seven branches
in Southern Nevada, has about
$390.7 million in local deposits.
Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893.
