UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JULY 17, 2001
CITY NATIONAL CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 1-10521 95-2568550
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(State or other jurisdiction (Commission file number) (IRS employer
of incorporation) identification no.)
City National Center
400 North Roxbury Drive, Beverly Hills, California 90210
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(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (310) 888-6000
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Not applicable
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(former name or former address, if changed since last report)
Item 5. OTHER EVENTS.
On July 17, 2001, City National Corporation issued a press release
reporting its financial results for the quarter and six months ended
June 30, 2001.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
99.1 Press release dated July 17, 2001 reporting financial results
for the quarter and six months ended June 30, 2001.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CITY NATIONAL CORPORATION
July 18, 2001 /s/ Frank P. Pekny
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Frank P. Pekny
Executive Vice President and
Chief Financial Officer/Treasurer
(Authorized Officer and
Principal Financial Officer)
CITY NATIONAL CORPORATION
CONSOLIDATED BALANCE SHEET
(Unaudited) (Dollars in thousands, except per share amount)
JUNE 30,
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2001 2000 % CHANGE
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Assets
Cash and due from banks $ 441,665 $ 448,501 (2)
Securities 1,681,233 1,442,108 17
Federal funds sold 10,000 50,000 (80)
Loans (net of allowance for credit
losses of $133,883 and $140,484) 6,433,487 6,204,711 4
Other assets 557,208 531,448 5
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Total assets $ 9,123,593 $ 8,676,768 5
=========== ===========
Liabilities and Shareholders' Equity
Noninterest-bearing deposits $ 3,134,792 $ 2,678,556 17
Interest-bearing deposits 3,945,842 3,716,298 6
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Total deposits 7,080,634 6,394,854 11
Federal funds purchased and securities sold
under repurchase agreements 261,849 243,604 7
Other short-term borrowed funds 653,125 955,163 (32)
Subordinated debt 118,939 123,547 (4)
Other long-term debt 94,255 180,000 (48)
Other liabilities 98,951 107,578 (8)
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Total liabilities 8,307,753 8,004,746 4
Shareholders' equity 815,840 672,022 21
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Total liabilities and shareholders' equity $ 9,123,593 $ 8,676,768 5
=========== ===========
Book value per share $ 17.04 $ 14.11 21
Number of shares at period end 47,888,923 47,623,014 1
CONSOLIDATED STATEMENT OF INCOME
(Unaudited) (Dollars in thousands, except per share amount)
FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED
JUNE 30, JUNE 30,
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2001 2000 % CHANGE 2001 2000 % CHANGE
------------- ----------- -------- ------------ ------------ --------
Interest income $ 156,490 $ 164,076 (5) $ 320,682 $ 306,143 5
Interest expense (51,441) (59,432) (13) (110,716) (109,252) 1
------------ ----------- ----------- -----------
Net interest income 105,049 104,644 - 209,966 196,891 7
Provision for credit losses (6,500) (4,000) 63 (14,000) (4,000) 250
------------ ----------- ----------- -----------
Net interest income after
provision for credit losses 98,549 100,644 (2) 195,966 192,891 2
Noninterest income 32,894 26,790 23 64,155 51,033 26
Noninterest expense (79,012) (76,074) 4 (155,616) (145,159) 7
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Income before taxes 52,431 51,360 2 104,505 98,765 6
Income taxes (16,087) (17,915) (10) (34,570) (34,312) 1
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Net income $ 36,344 $ 33,445 9 $ 69,935 $ 64,453 9
============ =========== =========== ===========
Net income per share, basic $ 0.76 $ 0.70 9 $ 1.47 $ 1.38 7
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Net income per share, diluted $ 0.74 $ 0.68 9 $ 1.43 $ 1.34 7
============ =========== =========== ===========
Dividends paid per share $ 0.19 $ 0.18 6 $ 0.37 $ 0.35 6
============ =========== =========== ===========
Cash net income $ 40,300 $ 37,154 8 $ 77,832 $ 71,054 10
============= ============ ============ ================
Cash net income per share, basic $ 0.84 $ 0.78 8 $ 1.63 $ 1.52 7
============= ============ ============ ================
Cash net income per share, diluted $ 0.82 $ 0.76 8 $ 1.59 $ 1.48 7
============= ============ ============ ================
Shares used to compute per share
net income, basic 47,768,235 47,540,159 47,725,720 46,791,844
Shares used to compute per share
net income, diluted 49,218,635 48,936,743 49,026,705 47,986,361
CITY NATIONAL CORPORATION
SELECTED FINANCIAL INFORMATION
(unaudited) (Dollars in thousands)
PERIOD END JUNE 30,
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2001 2000 % CHANGE
----------- ----------- --------
Loans
Commercial (a) $ 2,902,807 $ 2,782,611 4
Residential first mortgage 1,407,621 1,238,224 14
Real estate mortgage 1,582,691 1,395,187 13
Real estate construction 490,146 421,178 16
Installment 73,569 65,702 12
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Total relationship loans 6,456,834 5,902,902 9
Syndicated non-relationship (a) 110,536 442,293 (75)
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Total loans $ 6,567,370 $ 6,345,195 4
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(a) Commercial loans were $2,939,893 and syndicated non-relationship loans were
$148,318 at March 31, 2001
Deposits
Noninterest bearing $ 3,134,792 $ 2,678,556 17
Interest-bearing, core 2,587,181 2,374,630 9
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Total core deposits 5,721,973 5,053,186 13
Time deposits - $100,000 and over 1,358,661 1,341,668 1
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Total deposits $ 7,080,634 $ 6,394,854 11
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Credit Quality
Nonaccrual loans and ORE (b)
Relationship loans $ 28,942 $ 31,735 (9)
Syndicated non-relationship loans 8,143 3,342 144
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37,085 35,077 6
ORE 1,212 447 171
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Total nonaccrual loans and ORE $ 38,297 $ 35,524 8
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Relationship nonaccrual loans
and ORE to total relationship
loans and ORE 0.47 0.55 (15)
Total nonaccrual loans and
ORE to total loans and ORE 0.58 0.56 4
Loans past due 90 days or more
on accrual status $ 13,107 $ 5,703 130
=========== ===========
Restructured loans on accrual status $ 1,463 $ 2,532 (42)
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(b) Nonaccrual loans were $52,729 at March 31, 2001 including $35,986 of
relationship loans and $16,743 of syndicated non-relationship loans
FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED
ALLOWANCE FOR CREDIT LOSSES JUNE 30, JUNE 30,
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2001 2000 % CHANGE 2001 2000 % CHANGE
----------- ----------- -------- --------- --------- --------
Beginning balance $ 134,727 $ 140,450 (4) $ 135,435 $ 134,077 1
Additions from acquisitions - - - - 9,927 (100)
Provision for credit losses 6,500 4,000 63 14,000 4,000 250
Charge-offs (c)
Relationship loans (7,725) (5,688) 36 (17,708) (10,181) 74
Syndicated non-relationship loans (3,113) (3,166) (2) (5,214) (4,232) 23
----------- ----------- --------- ---------
(10,838) (8,854) 22 (22,922) (14,413) 59
Recoveries (d) 3,494 4,888 (29) 7,370 6,893 7
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Net charge-offs (7,344) (3,966) 85 (15,552) (7,520) 107
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Ending Balance $ 133,883 $ 140,484 (5) $ 133,883 $ 140,484 (5)
=========== =========== ========= =========
Net relationship charge-offs to
average relationship loans (annualized) (0.27)% (0.06)% 350 (0.34)% (0.12)% 183
Total net charge-offs to average
loans (annualized) (0.45) (0.25) 80 (0.48) (0.25) 92
Allowance for credit losses to total loans 2.04 2.21 (8)
Allowance for credit losses to nonaccrual loans 361.02 400.50 (10)
(c) Charge-offs in the first quarter 2001 were $9,983 in relationship
loans and $2,101 in syndicated non-relationship loans
(d) Includes $44 and $275 in syndicated non-relationship loans for the
second quarter and first half of 2001, respectively
CITY NATIONAL CORPORATION
SELECTED FINANCIAL INFORMATION
(unaudited) (Dollars in thousands except per share amounts)
FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED
JUNE 30, JUNE 30,
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2001 2000 % CHANGE 2001 2000 % CHANGE
----------- ----------- -------- ----------- ----------- --------
AVERAGE BALANCES
Loans
Commercial $ 2,948,989 $ 2,815,521 5 $ 2,970,896 $ 2,611,147 14
Residential first mortgage 1,338,909 1,225,906 9 1,315,175 1,216,906 8
Real estate mortgage 1,594,040 1,336,108 19 1,557,778 1,238,711 26
Real estate construction 446,949 403,339 11 457,939 390,386 17
Installment 74,691 62,441 20 73,961 62,614 18
----------- ----------- ----------- -----------
Total relationship loans 6,403,578 5,843,315 10 6,375,749 5,519,764 16
Syndicated non-relationship 133,797 488,406 (73) 153,838 516,266 (70)
----------- ----------- ----------- -----------
Total loans $ 6,537,375 $ 6,331,721 3 $ 6,529,587 $ 6,036,030 8
=========== =========== =========== ===========
Securities $ 1,690,786 $ 1,381,920 22 $ 1,624,282 $ 1,295,400 25
Interest-earning assets 8,308,244 7,768,320 7 8,212,922 7,387,367 11
Assets 9,132,024 8,525,861 7 9,026,738 8,093,736 12
Core deposits 5,510,106 5,072,101 9 5,322,092 4,796,929 11
Deposits 6,975,066 6,277,831 11 6,881,386 5,977,097 15
Shareholders' equity 797,398 660,325 21 781,146 629,246 24
NONINTEREST INCOME
Trust and investment fee revenue $ 14,779 $ 11,825 25 $ 28,452 $ 22,782 25
Cash management and deposit
transaction fees 7,583 5,749 32 14,131 11,306 25
International services 3,840 3,749 2 7,399 7,057 5
Bank owned life insurance 697 657 6 1,421 1,278 11
Other 4,565 4,815 (5) 9,588 8,387 14
----------- ----------- ----------- -----------
Subtotal - recurring 31,464 26,795 17 60,991 50,810 20
Gain on sale of loans and assets /
debt repurchase 891 - N/M 1,648 5 N/M
Gain (loss) on sale of securities 539 (5) N/M 1,516 218 595
----------- ----------- ----------- -----------
Total $ 32,894 $ 26,790 23 $ 64,155 $ 51,033 26
=========== =========== =========== ===========
NONINTEREST EXPENSE
Salaries and other employee benefits $ 42,711 $ 41,587 3 $ 85,485 $ 80,438 6
----------- ----------- ----------- -----------
All Other
Professional 6,358 6,306 1 12,122 11,691 4
Net occupancy of premises 6,628 5,743 15 12,972 10,548 23
Information services 4,088 3,409 20 7,917 6,996 13
Marketing and advertising 3,316 3,621 (8) 5,897 6,324 (7)
Depreciation 3,413 3,241 5 6,750 6,281 7
Office services 2,424 2,776 (13) 4,634 4,842 (4)
Amortization of goodwill 3,220 2,974 8 6,427 5,232 23
Amortization of core deposit intangibles 1,405 1,405 - 2,809 2,636 7
Equipment 603 737 (18) 1,099 1,202 (9)
Acquisition integration - 13 (100) - 1,322 (100)
Other operating 4,846 4,262 14 9,504 7,647 24
----------- ----------- ----------- -----------
Total all other 36,301 34,487 5 70,131 64,721 8
----------- ----------- ----------- -----------
Total $ 79,012 $ 76,074 4 $ 155,616 $ 145,159 7
=========== =========== =========== ===========
SELECTED RATIOS
For the Period
Return on average assets 1.60% 1.58% 1 1.56% 1.60% (3)
Return on average shareholders' equity 18.28 20.37 (10) 18.05 20.60 (12)
Net interest margin 5.23 5.58 (6) 5.32 5.53 (4)
Efficiency ratio 55.87 56.51 (1) 55.60 57.13 (3)
Dividend payout ratio 24.39 24.85 (2) 25.28 25.18 -
Cash return on average assets 1.81 1.79 1 1.78 1.80 (1)
Cash return on average shareholders' equity 26.40 31.28 (16) 26.19 29.00 (10)
Cash efficiency ratio 52.60 53.26 (1) 52.31 54.03 (3)
Period End
Tier 1 risk-based capital ratio 8.76 7.49 17
Total risk-based capital ratio 11.64 10.56 10
Tier 1 leverage ratio 6.97 6.19 13
(Released to Business Wire this date)