City National Bank Reports 49 Percent Increase In First Half 2017 Net Income As Deposit Growth Accelerates

7/31/17

Community bank poised to cross $9 billion asset mark

City National Bank (CNB), Florida’s premier private and commercial bank, announced its financial results for the first six months and second quarter of 2017, continuing to post significant gains in income, lending, deposits and assets.

Net income for the first six months of the year increased 49 percent to more than $43 million, compared to $29 million in the first six months of 2016. That included a one-time after tax gain of $6.5 million from the sale of assets during the first quarter of 2017. Without the one time gain, the bank would have grown net income in the first half of the year by $7.8 million or 27 percent.

Net income in the second quarter was $19.1 million, $3.4 million more than the same period last year, representing a 21 percent increase. Net interest income increased more than 18 percent to $60.2 million in the second quarter, compared to $50.8 million in the same period last year.

The bank has grown by $1.6 billion since the second quarter of last year to $8.9 billion in assets, a 23 percent increase.

“The strength of our first half performance underscores the dedication of our team, the loyalty of our clients and the success of our long-term strategy as the big bank alternative in Florida,” CNB President and CEO Jorge Gonzalez said. “Fueled by continued growth in our core business and our diversification efforts, City National Bank is poised to surpass the $9 billion asset mark.”

City National Bank closed more than $1.4 billion in new loan and lease commitments in the first six months of 2017. The bank has grown loans and leases by more than $1.36 billion, or 28.7 percent, since the same period last year to $6.1 billion in loans and leases outstanding.

At the end of the second quarter, deposits totaled $6.7 billion, up 38 percent from $4.85 billion in the second quarter of 2016. Demand deposit accounts were also up, with second quarter DDA at $2.4 billion, compared to $2 billion in 2016.

“Helping clients manage their deposits has been a big part of CNB’s success in the first six months of 2017, demonstrating that the community has embraced our unique brand of client-centric banking based on building long lasting relationships and local decision-making,” Gonzalez added. “We bring the same passion and dedication to the treasury management space and tailor our solutions to meet our clients’ needs.”

CNB launched its Government, Institutional & Non-Profit Banking unit to expand its services to this segment. Veteran government banker Lance Aylsworth is spearheading this important new team as Senior Vice President and Manager.

“We have served government and non-profits for many years and this dedicated team will help us grow and better serve this segment,” Gonzalez said. “I have been extremely impressed with the early results. We are convinced that government entities and non-profits can benefit from the same kind of relationship-based banking and superior service experience that has been so well received by our business clients.”

The formation of the dedicated government banking group comes after the bank launched its Orlando-based specialty finance company, City National Capital Finance and added to its Tampa office, enhancing its Central Florida footprint.

City National Bank continued its streak of accolades and recognition in the second quarter 2017, receiving the coveted five-star “Superior” rating – the highest possible – from BauerFinancial, the leading bank ratings firm, for the 20th consecutive quarter. BauerFinancial has been reporting on and analyzing the performance of U.S. banks and credit unions since 1983.

Financials

Second Quarter 2017 First Quarter 2017 Second Quarter 2016
Net interest income $60.2 million $57.5 million $50.8 million
Net income before taxes $30.7 million $38.9 million $25.0 million
Net income $19.1 million $24.3 million $15.7 million
Total Loans and Leases (Net) $6.1 billion $5.6 billion $4.7 billion
Total Deposits $6.7 billion $6.05 billion $4.9 billion

Capital

City National Bank’s strong capital position also continued to improve. Tier 1 capital grew to $945.1 million, an increase of about $79 million over June 2016.

Tier 1 Leverage Capital 11.07% 5% is considered well capitalized

Tier 1 Risk Based Capital Ratio 13.82% 8% is considered well capitalized

CNB continues to be one of the most liquid banks in Florida with excess liquidity of nearly $2.7 billion.

Asset Quality

Non-accrual loans to total loans remain at a very low 0.44%

Non-performing loans to capital remain at a very low 2.73%

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.

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