City National Bank in Los Angeles said Thursday that its first-quarter profit climbed 14% from the same period last year, fueled by a surge in real estate construction and commercial lending.
The $32.7 billion-asset bank posted net income of $61.6 million, or $1.01 a share, missing a consensus of analysts estimates polled by Bloomberg by a penny.
First-quarter loan and lease balances rose 18%, to $20.4 billion, compared with a year earlier. Real estate construction loans climbed 99% in the first quarter from a year earlier, while commercial loan growth jumped 20% year over year. Interest income rose 9%, to $224.8 million. The net interest margin was virtually unchanged at 2.99%
Trust and investment fee income rose 4% from a year earlier, to $55.5 million. Assets under management also rose 4% to $48.4 billion.
City National announced in January that it is merging with Toronto-based Royal Bank of Canada.