8-K 1 a2054471z8-k.txt 8-K 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 -------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 1-10521 95-2568550 ---------------------------- ------------------------ --------------------- (State or other jurisdiction (Commission file number) (IRS employer of incorporation) identification no.) City National Center 400 North Roxbury Drive, Beverly Hills, California 90210 ----------------------------------------------------- --------------------- (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code (310) 888-6000 --------------------- Not applicable -------------------------------------------- (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 --------------------------------------- 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, --------------------------------------- 2001 2000 % CHANGE ----------- ----------- -------- 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 ----------- ----------- 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 ----------- ----------- 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) ----------- ----------- Total liabilities 8,307,753 8,004,746 4 Shareholders' equity 815,840 672,022 21 ----------- ----------- 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, ------------------------------------------ ------------------------------------------ 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 ------------ ----------- ----------- ----------- 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 ------------ ----------- ----------- ----------- 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 ============ =========== =========== =========== 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, -------------------------------------- 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 ----------- ----------- Total relationship loans 6,456,834 5,902,902 9 Syndicated non-relationship (a) 110,536 442,293 (75) ----------- ----------- Total loans $ 6,567,370 $ 6,345,195 4 =========== =========== (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 ----------- ----------- Total core deposits 5,721,973 5,053,186 13 Time deposits - $100,000 and over 1,358,661 1,341,668 1 ----------- ----------- Total deposits $ 7,080,634 $ 6,394,854 11 =========== =========== Credit Quality Nonaccrual loans and ORE (b) Relationship loans $ 28,942 $ 31,735 (9) Syndicated non-relationship loans 8,143 3,342 144 ----------- ----------- 37,085 35,077 6 ORE 1,212 447 171 ----------- ----------- Total nonaccrual loans and ORE $ 38,297 $ 35,524 8 =========== =========== 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) =========== =========== (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, ------------------------------------- --------------------------------- 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 ----------- ----------- --------- --------- Net charge-offs (7,344) (3,966) 85 (15,552) (7,520) 107 ----------- ----------- --------- --------- 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, ------------------------------------ ------------------------------------ 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)