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City National Bank Reports First Quarter 2014 Results; Earnings Rise on Lending and Deposit Growth

CNB Surpasses $5 Billion Asset Mark

MIAMI, FL--(Marketwired - April 29, 2014) - City National Bank of Florida (CNB) announced strong financial results for the first quarter of 2014, driven by robust lending and deposit growth.

For the quarter ending March 31, 2014, pre-tax income was $18.9 million, compared to $15.5 million in the first quarter of last year. The bank reported net income of $11.6 million for the first quarter, up from $9.5 million for the first quarter of 2013. Core earnings were $17.9 million in the first quarter, compared to $14.4 million in the same quarter a year ago. 

"Our continued strong financial performance confirms that we are providing our clients and the marketplace with the services and value they desire," CNB President and CEO Jorge Gonzalez said. "City National Bank's unique commitment to service, relationship banking and local decision-making continues to be well received by the marketplace."

Assets grew by $378 million to $5.1 billion as the bank surpassed the $5 billion asset benchmark, continuing a path of steady, disciplined growth.

"Our commitment to supporting our clients is our number one priority," Gonzalez said. "This outstanding financial performance and sustainable growth is a testament to that philosophy."

CNB's asset quality and capital levels remained among the best in the industry. Non-accrual loans dropped to $14.5 million, from $19.5 million a year ago. Non-accrual loans to total loans dropped to 0.48 percent in the first quarter from 0.78 percent in March 2013. As of March 31, the company had total Tier 1 Capital of $559.5 million. CNB's Tier 1 Leverage Capital Ratio was 12.43 percent and Total Risk Based Capital Ratio was 19.28 percent.

The bank's loan portfolio grew by $406 million, almost 17 percent, since the first quarter of 2013. The loan growth was spearheaded by business and real estate lending.

City National Bank also remains focused on serving the needs of condominium and homeowner associations, a potential growth segment for the bank. The bank has been active in the association segment for decades, meeting the depository and lending needs of associations throughout the communities it serves.

CNB is also actively pursuing expanded lending opportunities for small businesses, the core of our state's economy. The bank has already seen success with new SBA lending products launched earlier this year.

"As the economy continues to strengthen, City National Bank is here to help our clients with their business expansion needs that will continue to fuel economic growth in our community," Gonzalez said. "We are uniquely positioned as a locally-based community bank with size and scale that uniquely positions us to deploy technology, recruit and retain top talent, and deliver new product offerings in line with the needs of our clients."

Deposits also increased by $395 million during the previous 12 months. Deposits totaled $3.9 billion at the end of the first quarter, compared to $3.15 billion at the end of the first quarter of 2013.

1Q Financial Highlights

  • Assets increased by $378 million in the last 12 months.
  • New loan commitments totaled $265 million in the first quarter.
  • Loans grew by $406 million in the last 12 months.
  • Core earnings before securities gains were $17.7 million in the first quarter, compared to $13.4 million in the same year-ago quarter.

Banco de Credito e Inversiones (Bci), the third largest bank in Chile, has agreed to acquire the Miami-based bank. The acquisition recently received approval of the Superintendency of Banks and Financial Institutions of Chile and the Central Bank of Chile. The purchase is set to close pending approval of the Federal Reserve.

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 eight consecutive quarters.

The bank has also received a number of honors recently, including 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 the Community Bank of the Year Award.

City National Bank's key financial performance metrics include: 

                        First Quarter 2014       First Quarter 2013  
                        ---------------------------------------------
Pre-tax Income          $18.9 million            $15.5 million       
Gross Loans             $2.93 billion            $2.52 billion       
Total Deposits          $3.9 billion             $3.5 billion        

Capital Ratios and Liquidity

CNB's capital position continued to strengthen in the first quarter of 2014 with $559.5 million, compared to $488.1 million in the first quarter of 2013.

Tier 1 Leverage Capital Ratio   12.43%  5% is considered well capitalized   
Tier 1 Risk Based Capital Ratio 18.02%  6% is considered well capitalized   
Total Risk Based Capital Ratio  19.28%  10% is considered well capitalized  

CNB continues to be one of the most liquid banks in Florida with excess liquidity of $1.3 billion.

Asset Quality

The bank's superior asset quality continued to improve in the first quarter of 2014 with non-accrual loans dropping to $14 million, down from $19.5 million in March 2013.

Allowance to total loans        1.83%   Among the highest in the state      
Allowance to Non-Accrual Loans  382%    One of the highest in the industry  

Other key indicators of asset quality:

  • Non-accrual loans to total loans declined to 0.48%
  • Non-performing loans to capital declined to 2.29%

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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