City National Corp. Receives $395 Million From U.S. Treasury’s Capital Purchase Program
Beverly Hills-based City National Corporation, parent company of wholly owned City National Bank, announced Monday the company has obtained preliminary approval of its application for the United States Treasury Department to invest approximately $395 million in the company’s preferred stock and warrants.
On a pro-forma basis, this investment will increase City National’s strong Tier 1 capital ratio of 9.1 percent to an even stronger 12 percent.
“This investment further secures City National as one of the most strongly capitalized banks in the United States, which will expand our ability to meet the needs of our clients, shareholders and the communities we serve,” said Russell Goldsmith, president /CEO of City National Corporation.
“We believe this investment represents a strong vote of confidence in City National, and we’re pleased to participate in the Treasury’s program to fortify the financial system and help support the nation’s economic recovery.”
City National said the additional capital will enhance the company’s strong, conservative balance sheet and its ability to pursue its disciplined growth strategy.
This longstanding strategy includes expanding existing client relationships, adding new clients and colleagues, and making selected acquisitions.
The U.S. Treasury introduced the Capital Purchase Program on Oct. 14.
Following the participation of nine of the nation’s largest banks, the Treasury has encouraged a select number of healthy regional banks to participate in the program to increase capital and lending capacity in the system to help the nation’s economy.
The Treasury’s term sheet with additional detail about the Capital Purchase Program is available on the Treasury’s Web site at http://www.ustreas.gov.