City National Corp.’s first quarter profit rose more than 16 percent as the county’s largest local bank benefited from improved credit quality.
After the markets closed on Thursday, the holding company of City National Bank reported net income of $46.3 million (86 cents a share), compared with $39.7 million (74 cents) in the same period a year earlier.
Net interest income rose 11 percent to $205 million, with noninterest income down 19 percent to $75.7 million. That left total revenue nearly flat at more than $276 million.
Analysts surveyed by Thomson Reuters on average had expected profit of 83 cents a share, with total revenue of less than $270 million.
"City National continued to perform well: It grew net income substantially, improved its performance and credit quality, added capital and clients, and invested in the company's future," said Chief Executive Russell Goldsmith in a statement.
The bank during the quarter did not set aside money to cover bad loans, excluding FDIC-covered loans, but warned that it expects to do so later this year.
Shares earlier closed up 26 cents, or less than 1 percent, to $51.66 on the New York Stock Exchange.