LOS ANGELES (AP) — City National Corp. said Thursday that its third-quarter net income rose 20 percent as revenue increased and it set aside less money for loan losses.
The Los Angeles-based bank, with a Nashville office that primarily serves the music industry,still fell short of Wall Street expectations, and City National shares slipped in after-hours trading.
For the three months ended Sept. 30, the parent company of City National Bank said it earned $41.4 million, or 77 cents per share. That compares with $34.4 million, or 65 cents per share, in the same period last year.
Analysts on average expected net income of 83 cents per share, according to FactSet. Shares of City National fell 55 cents to $40.28 in after-hours trading, after closing up 41 cents at $40.83 during the regular session.
City National also said its board approved a quarterly dividend of 20 cents per share, payable Nov. 16, to stockholders of record on Nov. 2.
For the quarter, the company said net interest income rose to $199.3 million from $187.7 million a year ago. Total noninterest income was $69.6 million, up from $66.8 million a year ago.
Trust and investment fees were $35.4 million, up 8 percent. That was partially offset by a decline in money market mutual fund and brokerage fees, which fell to $5.1 million from $8.2 million, and cash management and deposit transaction fees, which fell to $11 million from $11.6 million.
After two quarters with no loan loss provisions, the company said it set aside $7.5 million in loan loss provisions for the quarter. That was down from $13 million in the same period last year.
The company also said that average deposit balances grew to a record $19.7 billion in the quarter, up 8 percent from $18.3 billion in the third quarter of 2010.
City National has 78 offices in Southern California, the San Francisco Bay Area and New York City.