CityBank reported its third-quarter earnings skyrocketed into record territory, because of the sale of its nonbanking subsidiary, Diligenz.
The Lynnwood based-bank on Thursday reported a profit of $33.97 million for the period, an increase of $28.96 million compared to the same quarter of 2004. Of the increase, $27.45 million was attributable to either the sale of Diligenz or money it earned before the sale, the bank said.
On a per-share basis, net income shot up to $3.31 for the quarter, from 49 cents last year. Of that, $2.69 was linked to the Diligenz sale.
Diligenz is an Internet-based service that allows bankers, leasing agents, financiers and others to do online searches of corporate public records as part of their due-diligence processes. CityBank provided its original financing and operated it as a wholly-owned subsidiary until July, when it sold the Mukilteo-based operation to Corporation Service Co. of Delaware.
Setting aside the Diligenz sale, CityBank still had a strong quarter. The bank reported a nearly 31 percent increase in profits from its continuing operations, to $6.4 million from $4.9 million.
For the first nine months of the year, CityBank reported a profit of $15.8 million from its continuing operations, up from $13.9 million the same period last year.
Including the cash from the Diligenz sale, the bank’s profit the first three quarters was nearly $43.7 million.
The bank will pay a $3-a-share special dividend on Jan. 6 to shareholders of record as of Nov. 25.
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