The acquisition of Rochdale Investment Management helped raise City National Corp.'s (CYN) third-quarter income 44% from a year earlier to $59.8 million.
The Los Angeles-based company reported noninterest income of $107.3 million for the quarter, up 54% from a year earlier, it said Thursday. The increase included a 23% increase in trust and investment fees and a 78% increase in brokerage and mutual fund fees. City National largely attributed those increases to its acquisition of Rochdale, a New York City-based investment firm that manages $5.1 billion of assets for affluent clients. The acquisition closed July 2.
Noninterest income at the $26.5 billion-asset City National also included $27.7 million of gains from investments and trading securities, lease income and client swap transactions.
Net interest income for the quarter was $210 million, up 5% from a year earlier, as average loans increased 15% from a year earlier and 4% from the previous quarter. Commercial loans were up 24% from a year earlier to $6.26 billion.
Its net interest margin was 3.58% in the quarter, down 21 basis points from a year earlier and down 33 basis points from the second quarter. City National attributed the decline to lower interest income related to loans covered by loss-share agreements with the Federal Deposit Insurance Corp., lower loan yields and continuing deposit growth.
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