City National Bank Now Third Largest Florida-Based Bank as Assets Exceed $14 Billion

MIAMI, FL / ACCESSWIRE / July 31, 2018 / City National Bank (CNB), Florida’s Big Bank Alternative, announced its financial results for the second quarter of 2018, with significant growth in income, assets, deposits and loans.

CNB reported second quarter net income of $26.5 million, a $7.4 million increase or 39 percent more than the same period last year. Excluding $7.5 million in non-recurring expenses associated with the acquisition of TotalBank, CNB’s net income in the second quarter was $32.1 million, a 60 percent increase compared to the same period last year.

Net income for the first six months of 2018 increased 21 percent to $52.3 million, compared to $43.3 million in the same period in 2017. Excluding more than $9 million in non-recurring expenses related to the acquisition, CNB’s net income in the first half of 2018 was $59 million, up 56 percent.

“We achieved our primary goal for the integration, continuing CNB’s strategic growth trajectory while taking great care of TotalBank clients and bringing both organizations together seamlessly,” City National Bank President & CEO Jorge Gonzalez said. “The successful integration is a testament to the hard work and dedication of both teams, which have now come together as one.”

City National Bank closed on the $529 million purchase of Miami-based TotalBank in June. TotalBank added $3 billion in assets, $2.1 billion in loans and $2.0 billion in deposits to CNB’s balance sheet.

City National Bank’s assets grew 58 percent to $14.1 billion at the end of the second quarter, compared to $8.9 billion during the same period in 2017. City National Bank is now the third-largest bank in Florida. Excluding the growth from the TotalBank acquisition, CNB’s assets increased by $2.7 billion or 30 percent at the end of the second quarter, compared to the same period in 2017.

“The acquisition strengthens our unique positioning in the Florida marketplace,” Gonzalez added. “We are big enough to compete with the large national banks, while still small enough to provide our clients personalized attention and customized solutions together with local decision-making and know how.”

After the branch consolidation is complete, CNB will have 31 banking centers from South Florida to Orlando, and loan production offices in Tampa, Sarasota and Naples. CNB’s leasing subsidiary, City National Capital Finance (CNCF), has a national platform offering specialty finance solutions to corporate clients throughout the country. Headquartered in Orlando, CNCF, has offices in Baltimore, Chicago, Charlotte, Charleston, New Jersey and Oregon. CNCF ranked No. 62 on the recently released Monitor 100 list of the largest specialty finance companies in the country.

“We expect the TotalBank acquisition and related synergies to quickly become accretive to CNB’s financial results, beginning as soon as the third quarter,” Gonzalez said. “It will also provide enhanced offerings for our combined clientele, including wealth management, international banking and specialty finance solutions.”

During the second quarter, CNB also grew net interest income, loans and deposits. Deposits totaled $10.9 billion at the end of the second quarter, compared to $6.7 billion during the same period last year, an increase of $4.2 billion or 63 percent.

City National Bank closed $846 million in new loan and lease commitments in the second quarter, continuing to grow its loan portfolio. At the end of the second quarter, loans and finance leases totaled $10 billion, up 64 percent compared to $6.1 billion at the same time last year.

Net interest income increased 33 percent to $80.1 million in the second quarter, compared to $60.2 million for the same period last year.

City National Bank continued its streak of receiving accolades and recognition in the first half of 2018, earning a five-star “Superior” rating – the highest possible – from the leading bank ratings firm BauerFinancial, for the 24th consecutive quarter.

Financials

Second Quarter

Second Quarter

2018

2017

Net interest income

$
80.1 million

$
60.2 million

Net income before taxes

$
34.5 million

$
30.2 million

Net income

$
26.5 million

$
19.0 million

Net income adjusted for one-

time expenses

$
32.1 million

$
20 million

Total Loans and Leases (Net)

$
9.97 billion

$
6.08 billion

Total Deposits

$
10.91 billion

$
6.69 billion

Capital

City National Bank’s strong capital position also continued to improve. Tier 1 capital grew to nearly $1.4 billion, an increase of about $450 million compared to June 2017.

Tier 1 Leverage Capital
12.31%
5% is considered well capitalized

Tier 1 Risk Based Capital Ratio
13.02%
8% is considered well capitalized

Asset Quality

Non-accrual loans to total loans remain low at 0.36%

Non-performing loans to capital remain low at 2.49%

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 70 years. With more than $14 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 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. CNB offers a diversified portfolio of financial products and services from Miami-Dade County to Central Florida.

CONTACT

Eddie Dominguez
City National Bank
305.577.7315

SOURCE: City National Bank of Florida

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