UPDATE 2-City National Q3 profit misses Street view
* Q3 EPS $0.05 vs est. $0.07
* Loan loss provisions $85 mln vs $35 mln last year
* Says looking at potential bank acquisitions
* Sees remaining modestly profitable in 2009
* Sees elevated credit costs going into 2010 (Recasts; adds conference call details, background)
Oct 22 (Reuters) - City National Corp (CYN.N) posted quarterly profit that missed analysts' estimates as provision for credit losses more than doubled and the bank holding company expects higher credit costs going into 2010.
Third-quarter provision for loan losses at the company was $85 million compared with $35 million a year ago.
On a conference call, the company said it continues to look at potential bank acquisitions. In August, it had said it plans to buy a San Jose branch from Westamerica Bank (WABC.O).
City National expects net interest margin to remain relatively stable for the fourth quarter.
Third-quarter net interest margin fell to 3.94 percent from 4.23 percent in the year-ago quarter.
Net income attributable to the company was $8.0 million, compared with $16.6 million, last year.
After dividend payout under the U.S. Treasury Department's Capital Purchase Program, net income available to shareholders was $2.5 million, or 5 cents a share, compared with $16.6 million, or 34 cents a share, last year.
Analysts on average had expected the company to earn 7 cents a share, excluding items, according to Thomson Reuters I/B/E/S.
Net interest income at the company, which offers banking, investment and trust services, rose to $161.3 million from $152.8 million last year.
The company said it continues to expect to remain "modestly profitable" in 2009.
Shares of the Los Angeles-based company closed at $41.54 Thursday on the New York Stock Exchange. (Reporting by Abhinav Sharma in Bangalore; Editing by Aradhana Aravindan)
