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City National Corp. (CYN) filed Quarterly Report for the period ended 2011-09-30.
City National Corp. has a market cap of $2.35 billion; its shares were traded at around $44.09 with a P/E ratio of 14.1 and P/S ratio of 2. The dividend yield of City National Corp. stocks is 1.8%.
This is the annual revenues and earnings per share of CYN over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of CYN.
Highlight of Business Operations:
The Company held $44.1 million of variable rate Non-agency CMOs at September 30, 2011. The Company determined that $9.7 million of these Non-agency CMOs were other-than-temporarily impaired because the present value of expected cash flows was less than cost. These CMOs have a fixed interest rate for an initial period after which they become variable-rate instruments with annual rate resets. For purposes of projecting future cash flows, the current fixed coupon was used through the reset date for each security. The prevailing LIBOR/Treasury forward curve as of the measurement date was used to project all future floating-rate cash flows based on the characteristics of each security. Other factors considered in the projection of future cash flows include the current level of subordination from other CMO classes, anticipated prepayment rates, cumulative defaults and loss given default. The Company recognized credit-related impairment losses in earnings on its investments in certain variable rate non-agency CMOs totaling $0.2 million in the third quarter of 2011 and $0.7 million for the nine months ended September 30, 2011. The remaining other-than-temporary impairment for these securities at September 30, 2011 was recognized in AOCI. This non-credit portion of other-than-temporary impairment is attributed to external market conditions, primarily the lack of liquidity in these securities and increases in interest rates. The Company also holds $32.3 million in fixed rate Non-Agency CMOs, none of which have experienced any other-than-temporary impairment.The fully taxable net interest margin declined to 3.79 percent for the third quarter of 2011 from 3.85 percent for the second quarter of 2011 and 3.84 percent for the third quarter of 2010. The average yield on earning assets for the third quarter of 2011 was 4.12 percent, down 11 basis points from 4.23 percent for the second quarter of 2011 and 25 basis points from 4.37 percent for the year-earlier quarter. The average cost of interest-bearing liabilities decreased to 0.64 percent, or by 8 basis points, from 0.72 percent for the second quarter of 2011 and by 30 basis points from 0.94 percent for the same period in 2010. Fully taxable-equivalent net interest income, which includes amounts to convert nontaxable income to fully taxable-equivalent amounts, was $202.9 million for the third quarter of 2011 compared to $194.4 million for the second quarter of 2011 and $190.3 million for the third quarter of 2010. Fully taxable-equivalent net interest income and dividend income was $203.6 million for the third quarter of 2011 compared with $195.1 million for the second quarter of 2011 and $191.1 million for the same period in 2010. The $12.5 million increase in fully taxable-equivalent net interest and dividend income from the year-ago quarter was primarily generated through securities growth and lower interest-bearing liabilities (volume variance) and was partially offset by a decrease in net interest income largely due to lower yields on securities available-for-sale (rate variance).
The Company recognized net gain on sales of covered OREO of $3.6 million in the third quarter of 2011 compared to $9.1 million in the second quarter of 2011 and $0.8 million in the third quarter of 2010. Other income related to covered assets was $4.9 million in the current quarter and consists primarily of net gain on transfers of covered loans to OREO, the amortization of fair value on acquired unfunded loan commitments and OREO income. The balance decreased from $8.2 million from the year-earlier quarter and $13.5 million from the second quarter of 2011, primarily because of lower gains on transfers of covered loans to OREO.
Net income attributable to CNC for the Other segment increased to $14.0 million for the third quarter of 2011, from $3.6 million for the third quarter of 2010. Net income attributable to CNC increased to $39.3 million for the nine months ended September 30, 2011, from $31.3 million for the same period in 2010. The Asset Liability Funding Center, which is included in the Other segment, is used for funds transfer pricing. The Funding Center charges the business line units for loans and pays them for generating deposits, decreasing net interest income in the Other segment when loan balances decrease or deposit balances increase. Net interest income was $8.8 million and $26.1 million for the three and nine months ended September 30, 2011, respectively, an increase from $8.4 million and $23.3 million for the three and nine months ended September 30, 2010, respectively. The increase in net interest income is due to an increase in securities available-for-sale, partially offset by an increase in deposit balances in the Commercial and Private Banking and Wealth Management segments. Noninterest income (loss) was ($9.6) million for the current quarter compared with ($24.1) million for the year-earlier quarter. Noninterest income (loss) was ($29.7) million for the nine months ended September 30, 2011 compared with ($51.4) million for the year-earlier period. The change in noninterest income (loss) was a result of higher gains on sales of securities in the current quarter and a $12.3 million charge for the early retirement of debt during the prior year quarter. Additionally, noninterest income for the first nine months of 2010 reflected a $5.0 million charge for the write-off of a Community Reinvestment Act-related receivable in the second quarter.
The Company held $44.1 million of variable rate Non-agency CMOs at September 30, 2011. The Company determined that $9.7 million of these Non-agency CMOs were other-than-temporarily impaired because the present value of expected cash flows was less than cost. These CMOs have a fixed interest rate for an initial period after which they become variable-rate instruments with annual rate resets. For purposes of projecting future cash flows, the current fixed coupon was used through the reset date for each security. The prevailing LIBOR/Treasury forward curve as of the measurement date was used to project all future floating-rate cash flows based on the characteristics of each security. Other factors considered in the projection of future cash flows include the current level of subordination from other CMO classes, anticipated prepayment rates, cumulative defaults and loss given default. The Company recognized credit-related impairment losses in earnings on its investments in certain variable rate non-agency CMOs totaling $0.2 million in the third quarter of 2011 and $0.7 million for the nine months ended September 30, 2011. The remaining other-than-temporary impairment for these securities at September 30, 2011 was recognized in AOCI. This non-credit portion of other-than-temporary impairment is attributed to external market conditions, primarily the lack of liquidity in these securities and increases in interest rates. The Company also holds $32.3 million in fixed rate Non-Agency CMOs, none of which have experienced any other-than-temporary impairment.
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