City Bank has reported a net income of $9.69 million for the first quarter ended March 31, 2008, a decrease of 6.66% from net income of $10.38 million for the comparable quarter in 2007.
The bank said that the decrease in earnings is the result of the general economic slowdown impacting financial institutions. Net interest income after provision for credit losses was $18.26 million for the quarter compared to $19.94 million for the corresponding period in 2007, reflecting a decrease of 8.41%.
The decrease in net interest income was primarily due to the increase in loans being placed on non-accrual status for which interest accrued in the amount of $780 thousand had been reversed from income. As at March 31, 2008, total assets were up 17.29% to $1.31 billion and deposits were up 19.65% to $954.62 million.