Assets grow by $2.3 billion fueled by continued diversification
City National Bank (CNB), Florida’s “Big Bank Alternative,” announced its financial results for the first quarter of 2018, delivering significant gains in income, lending, deposits and assets, while preserving outstanding asset quality.
CNB reported first quarter net income of $25.8 million, an increase of $1.6 million or 6.4 percent, compared to the same period last year, during which CNB realized one-time income from the sale of property. Without that one-time gain in the first quarter of last year, CNB net income would have grown by $8.2 million or 47 percent. Net interest income increased 26.2 percent to $72.6 million in the first quarter, compared to $57.5 million for the same period last year. CNB’s assets grew to $10.8 billion at the end of the first quarter, an increase of 27 percent or $2.3 billion compared to the same time last year.
“CNB continues to deliver steady organic growth and market-leading performance, which is driven by the commitment of our people, loyalty of our clients, growth into new markets and most importantly providing an unsurpassed client experience,” CNB President and CEO Jorge Gonzalez said. “Our announced acquisition of TotalBank complements this and is an important step in building the iconic Florida-centric financial institution.”
Deposits totaled $8.25 billion as of March 31st, compared to $6.05 billion at the end of the first quarter of last year, an increase of $2.2 billion or 36 percent.
During the first quarter, City National Bank closed $760 million in new loan and lease commitments, $697 million from CNB and $63 million from leasing subsidiary City National Capital Finance. Since the first quarter of last year, CNB grew loans and finance leases by $1.87 billion, or 33.6 percent, to $7.4 billion in loans and leases outstanding as of March 31st.
City National Bank expects to close next quarter on the purchase of TotalBank, a leading South Florida community bank. Combined with TotalBank, CNB will have more than $13 billion in assets, creating the third-largest bank in Florida and placing CNB in the top two percent of the 5,300 banks nationwide. CNB’s position as the “Big Bank Alternative” in Florida will be strengthened by gaining scale and growing market share, while making further investments in technology and other client experience enhancements.
“This transaction will bring together two strong community banks, broadening our unique positioning and deepening our ability to deliver on our value proposition for clients -- being large enough to give them what they want and small enough to provide it the way they want it,” Gonzalez said.
CNB continues to grow in key sectors and markets. This month, CNB announced the hiring of a residential lending director in Orlando and relationship managers in Tampa for commercial real estate and corporate banking. The new hires further the bank’s statewide expansion efforts that in 2017 included opening new offices in Sarasota and Tampa.
“Central Florida is an increasing focus for CNB,” Gonzalez said. “The Orlando and Tampa markets have been receptive to our model of relationship-based banking and present opportunities for growth.”
City National Bank continues to deepen its focus in the commercial sector. Commercial lending increased 57 percent in the first quarter, compared to the same period last year.
“Businesses have unique needs that CNB is ideally suited to address,” Gonzalez said. “We build personalized relationships and offer flexibility that business owners, C-suite executives and entrepreneurs expect and appreciate from a true financial partner.”
City National Bank continued its streak of receiving accolades and recognition in the first quarter of 2018, earning the coveted five-star “Superior” rating – the highest possible – from BauerFinancial, the leading bank ratings firm, for the 23rd consecutive quarter.
Financials
First Quarter 2018 First Quarter 2017
Net interest income………..… $72.6 million
Net income before taxes……$33.7 million $38.7 million
Net income……………………… $25.8 million
Net income without 2017 Gain… $25.8 million
Total Loans and Leases (Net)….. $7.4 billion
Total Deposits ………………… $8.25 billion
Capital
City National Bank’s strong capital position also continued to improve. Tier 1 capital grew to more than $1 billion, an increase of about $88.7 million over March 2017.
- Tier 1 Leverage Capital 9.66% 5% is considered well capitalized
- Tier 1 Risk Based Capital Ratio 11.98% 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 low at 0.37%
- Non-performing loans to capital remain low at 2.66%
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 $10 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. CNB offers a diversified portfolio of financial products and services at 26 convenient banking centers from Miami-Dade County to Central Florida.
