Downtown Los Angeles’ City National Corp., the parent company of City National Bank, reported strong second-quarter earnings Thursday that included the bank’s highest-ever net income.
City National reported net income of $68.5 million ($1.13 a share), compared with $65.5 million ($1.09 a share) for the same period a year earlier. Analysts had expected net income of $1.08 a share. The bank also reported loan balances totaling $21.9 billion as of June 30, up 19 percent from last year and a new record.
The announcement came after markets closed Thursday. City National’s stock, which trades on the New York Stock Exchange, was flat in trading before the announcement.
This could be City National’s final quarterly earnings report. Toronto’s Royal Bank of Canada is set to acquire the company in a deal expected to close this quarter.
Medbox to Buy 320 Acres in Colorado for Pot Farm
Marijuana dispensing firm Medbox Inc. announced Thursday it plans to buy 320 acres of land near Pueblo, Colo., to be used for agricultural purposes. Terms of the deal, expected to close next month, were not disclosed.
The company plans to work with a Colorado-licensed grower of marijuana and hemp and will provide oversight and ensure what is produced is compliant in an effort to produce high-quality, consistent products, according to Medbox President and interim Chief Executive Jeff Goh.
Colorado was chosen because it was one of the first states to legalize marijuana as well as the fact there are “good tax reasons to be there,” Goh said.
Reliance Steel Shares Climb on Earnings
Shares of Reliance Steel & Aluminum Co., the downtown L.A. metals processor and distributor, climbed 5 percent to $60.48 Thursday after a second-quarter earnings report that beat analysts’ profit expectations.
For the quarter that ended June 30, Reliance reported sales of $2.42 billion, down 7.4 percent from $2.62 billion in the year-ago period. Net income was $90.2 million ($1.20 a share), down 6.5 percent from $96.5 million ($1.22) a year ago. Analysts had expected slightly higher revenue, but lower net income of $1.13 a share.
