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Royal Bank of Canada has received approval from the Federal Reserve Board to buy City National in Los Angeles.
October 7 -
PacWest Bancorp in Los Angeles reported a higher third-quarter profit, citing new lending and lower expenses.
October 15 -
NCAL Bancorp in Irvine, Calif., has agreed to buy Commercial Bank of California in Los Angeles.
October 15
City National in Los Angeles reported a 3% increase in third-quarter profit, driven by double-digit loan growth.
The $35.6 billion-asset company said net income rose 3% to $67.7 million, compared with a year earlier. Earnings per share rose 1% to $1.18.
Net interest income rose 8% to $240.9 million. The net interest margin shrank 4 basis points to 2.92%.
Total loans and leases jumped 17% to $22 billion. Commercial loans rose 17% to $10.9 billion. Commercial real estate mortgages rose 11% to $3.9 billion. Residential mortgages rose 13.7% to $5.7 billion.
Noninterest income fell 3% to $104.9 million. Trust and investment fee income rose 2% to $58 million.
Total assets under management fell 6% to $46.3 billion. City National's strong wealth-management business was one reason that Royal Bank of Canada was led to acquire the Los Angeles company.
City National said it expects to complete its merger with Royal Bank of Canada on Nov. 2, subject to “the satisfaction of customary closing conditions.” The two banks received approval to merge on Oct. 5 from the Federal Reserve Board and the Office of the Superintendent of Financial Institutions in Canada.
