City National Corp. – $3.9M
March 12, 2008 – 9:08 pmCity National Corp. wrapped up fiscal 2007 fourth quarter with a $20.0 million provision for loan losses after almost four years of no loan losses:
Fourth-quarter 2007 net income reflects a $20.0 million provision to enhance the company’s loan-loss allowance.
Ah, the times they are a changin’. The bank also reports net charge offs of $3.9 million alongside its total allowance for loan losses of $168 million. According to City Nationals CEO Russel Goldsmith:
It is worth emphasizing that City National has no subprime loans, no subprime CDOs and no concerns with credit card debt, home equity loans or its money market funds.
Granted that is worthy of mention, but so is this: bank profits come from making loans, and after nearly four years with no bad loans the bank got hit by some in 2007. So will there be more or fewer of those in 2008? I think we all know the answer.
