City National Bank of Florida released its first quarter earnings on Wednesday, reporting that net income was slightly down compared to the first quarter of 2014 but that core earnings went up.
The Miami-based bank said it had net income of $11.3 million in the first quarter of 2015, down from $11.6 million in the same quarter last year.
In a statement, City National said it had boosted its profits in the first quarter of 2014 by transferring $4.5 million of loan-loss reserves to its bottom line. In the most recent quarter, the bank shifted just $500,000 of reserves to its bottom line. Banks are required to keep a certain amount of cash on their books to cover possible bad loans but can convert those reserves into income, depending on the bank’s credit quality.
Meanwhile, core earnings for the quarter were $20.7 million, up from $17.9 million in the first quarter of the previous year.
The bank also made $416 million in new loans during the first three months of 2015, growth it credited to Florida’s strong economy.
“These increases have been accomplished while maintaining the strictest credit discipline and industry-leading asset quality,” said bank president and CEO Jorge Gonzalez. “We will continue to have a long-term view to this business focused on controlled and stable growth.”
City National operates 26 branches from Miami-Dade County to the greater Orlando area and has $5.6 billion in assets. It is owned by Banco de Credito e Inversiones, of Chile.