City National Q4 Results Miss View; To Be Acquired By Royal Bank Of Canada

(RTTNews) - City National Corp. (CYN), the parent company of City National Bank, reported fourth-quarter net earnings available to stockholders of $61.87 million or $1.10 per share, up from $52.71 million or $0.95 per share last year.

Revenues for the quarter grew 10 percent to $325 million from $296 million in the prior year.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $1.12 per share for the quarter on revenues of $335.37 million for the quarter. Analysts' estimates typically exclude special items.

Net interest income for the quarter rose to $223.56 million from $205.45 million last year, while noninterest income climbed to $101.31 million from $90.55 million.

City National also said that its board of directors increased the company's quarterly common stock cash dividend from $0.33 per share to $0.35 per share, payable on February 18, 2015 to stockholders of record on February 4, 2015.

In a separate statement, City National Corp. and Royal Bank of Canada (RY, RY.TO) said that Royal Bank of Canada will acquire all outstanding shares of City National Corp. for a total consideration of about $5.4 billion.

Royal Bank of Canada will offer about $93.80 per City National share, comprised of a mix of cash and common stock, based on RBC's closing stock price on January 21, 2015. The agreement has been approved by the boards of both companies. Russell Goldsmith will remain City National's chairman and CEO, and will lead RBC's U.S. Wealth Management unit.

The transaction is expected to be accretive to RBC's earnings per share, before amortization of intangibles, in the latter part of year three and accretive to earnings in year two.