City National Bank 3Q13 Earnings Call Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“In the quarter, City National grew its assets, loans and deposits by double digits to new record levels. For the first time, City National’s assets reached $29.1 billion, which is a very strong 11% increase from the year-ago.”

“the specialty areas where we have been investing and expanding, where we have significant expertise and where we provide a particularly strong value proposition to certain sectors of the economy that are more robust than the economy is at the moment as a whole.”

“Some of these specialty areas that have been particularly strong for City National include, of course, our very strong entertainment division, which as you know is not only in Beverly Hills and growing in New York, but also in Nashville and Atlanta.”

“the August unemployment rate for the entire state of California stood at 8.9%. But conditions are considerably better principally in the areas we are in. For example, the unemployment rate in the San Francisco Bay Area is just 5.6%. And in Orange County, which has 3 million people all by itself, unemployment is just 5.2%.”

“even Nevada is showing some improvement. But clearly, the economy there is lagging behind the other economies that we’re in. But it was interesting to see in Las Vegas yesterday, cranes up as there’s construction of some new offices, hotels even, and homes. ”

“Credit quality improved steadily through the first 9 months of 2013. City National has not recorded any provisions this year. And the company remains well-reserved.”

“We’re not — we don’t budget on or plan on making any acquisitions. And frankly, I like the position we’re in now, the base that we’ve got and the geographies we’re in and the businesses that we’re in. And we’re more focused really on organic growth”

“I do tend to think that sellers still overvalue the worth of their businesses. And I also think that you’re seeing activity, but you’re likely to see it kind of more amongst the smallest banks who I think are particularly challenged in this environment”

“in this rate environment, our earnings are still significantly compressed. ”