Higher interest income helped City National Corp report a better second-quarter profit that beat analysts’ forecasts.
After the Thursday markets closed, L.A.’s largest locally based bank reported net income of $54.8 million ($1.01 a share) compared with $47.5 million (88 cents) in the same period a year earlier. Analysts surveyed by Thomson Reuters on average expected net income of 88 cents a share.
Net interest income rose 13 percent to more than $221million. Noninterest income fell 19 percent to $74.8 million.
The quarter included income of $5.9 million from the recovery of a previously charged-off loan, but also $2.8 million in transaction costs related to the acquisition of Rochdale Investment Management, which closed during the quarter, and First American Equipment Finance, which was announced during the quarter. City National took a $1 million provision for loan losses, which excludes FDIC-covered loans.
The Shares on Friday morning were up 2 cents, or less than 1 percent, to $50.07 on the New York Stock Exchange.