Bank launches equipment finance division, creates national specialty financing platform
City National Bank (CNB), Florida’s premier private and commercial bank, announced its financial results for the first quarter of 2017, continuing to post significant gains in income,lending, deposits and assets, while preserving pristine asset quality.
Net income in the first quarter was $24.3 million, $11 million more than the same period last year, representing an83 percent increase.Net interest income increased almost 18 percent to $57.5 million in the first quarter, compared to $48.8 million in the same period last year.
The bank has grown by $1.4 billion since the first quarter of last year to $8.5 billion in assets, a 20 percent increase.
“The strong first quarter results create the foundation for another remarkable year,” CNB President and CEO Jorge Gonzalez said. “With the strength of our team and the loyalty of our clients we continue to deliver outstanding results.”
The first quarter profit included an after tax gain of$6.5 million from the sale of the City National Bank building on 71st Street in Miami Beach. Without that sale, the bank would have grown profits by $4.5 million or 34 percent.
“We decided to sell the property to help make way for the future redevelopment of North Beach,” Gonzalez said. “We will remain at this location and are excited to be part of the bright future of this area where City National Bank was founded more than 70 years ago.”
City National Bank closed more than $573 million in new loan and leasecommitments in the first quarter. The bank has grown loans and leases by more than$1.34 billion, or 32 percent, since the same period last year to $5.6 billion in loans and leases outstanding.
At the end of the first quarter, deposits totaled $6.05 billion, up 27 percent from $4.8 billion in the first quarter of 2016. Demand deposit accounts were also up, with first quarter DDA at $2.2 billion, compared to $2.1 billion in 2016.
“We have improved nearly every important metric, as we augment our product offerings and continue to invest in our people with a keen eye on continuing to improve our service experience,” Gonzalez said. “We have positioned City National Bank with the size and scale to be competitive with much larger institutions,while continuing to deliver a personalized client experience with local decision-making that larger banks can’t offer.”
CNB launched a newequipment and specialty finance division, City National Capital Finance (CNCF), to serve the financing needs of large and mid-sized companies. This national platform will serve the needs of corporate clients in Florida and throughout the country. Based in Orlando, CNCF also has offices in Miami; Austin, Texas; Hunt Valley, Maryland; Charlotte, North Carolina; Richmond, Virginia and New York.CNCF provides financing solutions for air, rail, marine vessel and other heavy equipment.
“City National Capital Finance represents an opportunity for the bank to better serve our commercial clients,” Gonzalez said. “We pride ourselves on being responsive to the needs of our clients, in building long-lasting relationships and growing with our clients.”
“The bank’s growth in the first quarter is indicative of the successful implementation of our strategy and continued market acceptance of our value proposition,” Gonzalez said. “We continue to attract top talent, invest in technology, broaden our offerings and enhance on our client experience.”
City National Bank continues to deepen its focus in the commercial segment. Commercial lending is up 30 percent in the first quarter compared to the same period last year.
“Our unique style and brand of banking has particular appeal in the commercial segment,” Gonzalez said. “Business owners, C-level executives and entrepreneurs have been very receptive to the kind of personalized attention, flexibility and connectivity with decision makers that we offer. Increasingly, they see the value in having a financial partner, not just a bank.”
City National Bank continued its streak of accolades and recognition in the first quarter 2017, receiving the coveted five-star “Superior” rating – the highest possible – from BauerFinancial, the leading bank ratings firm, for the19th consecutive quarter. BauerFinancial has been reporting on and analyzing the performance of U.S. banks and credit unions since 1983.
Capital
City National Bank’s strong capital position also continued to improve. Tier 1 capital grew to $917.6 million, an increase of about $76 million over March 2016.
- Tier 1 Leverage Capital 11.29% 5% is considered well capitalized
- Tier 1 Risk Based Capital Ratio 14.49% 8% is considered well capitalized
CNB continues to be one of the most liquid banks in Florida with excess liquidity of nearly $1.9 billion.
Asset Quality
- Non-accrual loans to total loans remain ata very low 0.48%
- Non-performing loans to capital remain at a very low2.80%
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 $8 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.
