City National profit jumps
City National is the parent of Southern California's largest bank, with $21.2 billion in assets and a large wealth management business. The Los Angeles company said in a report Thursday afternoon that it earned $41.3 million, or 78 cents a share, in the second quarter.
That compared with $6.8 million, or 2 cents a share, in the same period a year earlier, when the bank still was paying dividends on a $400-million U.S. Treasury Department investment made during the economic free-fall of 2008. City National has since repaid the government in full.
Second-quarter revenue totaled $304.5 million, up 39% from the second quarter of 2009. Deposits were up 26% at $17.6 billion. Dud loans and other nonperforming assets on the books totaled $314.6 million, down from $396.3 million a year earlier.
The results included several unusual items related to the company's three recent acquisitions of failed banks and the favorable settlement of tax litigation.
Excluding those items, second-quarter net income totaled 56 cents a share. Analysts on average had expected earnings of 49 cents a share.
The earnings were announced after the close of trading on a day in which City National shares gained $2.12 to $53.
-- E. Scott Reckard