LOS ANGELES, March 1, 2007 (PRIME NEWSWIRE) -- City National Corporation (NYSE:CYN) today announced the completion of its acquisition of Nevada-based Business Bank Corporation. The transaction closed on February 28, 2007, following regulatory and shareholder approval.
"The addition of Business Bank and its very fine management team provides City National with the opportunity to bring more banking and asset management capabilities to Nevada's entrepreneurs, professionals, investors and small to mid-sized businesses," said City National Corporation's President and Chief Executive Officer Russell Goldsmith. "We are pleased that John Guedry and his talented leadership team will spearhead our expansion into Nevada, the fastest growing state in America for nearly two decades and one with strong ties to California. Working with our new colleagues in Nevada, we expect to provide more complete financial solutions to those who already bank with us and with Business Bank, as well as attract new clients."
Under terms of the merger agreement, shares of Business Bank Corporation were exchanged for cash or a combination of cash and City National Corporation stock. In aggregate, Business Bank shareholders will receive $77 million in cash, $10 million in director and employee stock option value and 1.1 million shares of City National stock. Total consideration amounts to approximately $167 million. City National common stock received by Business Bank shareholders is expected to qualify as a tax-free exchange.
City National announced plans to acquire Business Bank Corporation on November 1, 2006. The acquisition is expected to be essentially neutral to City National's GAAP and cash earnings per share in 2007 and modestly accretive in 2008, excluding any revenue enhancements. Business Bank of Nevada will operate as a wholly owned subsidiary of City National Corporation until final regulatory approval of its planned merger into City National Bank.
About City National
City National Corporation is a financial services company with more than $15 billion in total assets. Its wholly owned subsidiary, City National Bank, is California's Premier Private and Business Bank(r). Its new wholly owned subsidiary, Business Bank of Nevada, has seven offices in Las Vegas, North Las Vegas, Reno, Carson City and Minden. On a combined basis, City National now provides banking, investment and trust services through 61 offices, including 15 full-service regional centers, in Southern California, the San Francisco Bay Area, Nevada and New York City.
City National and its nine investment affiliates manage or administer more than $48 billion in client assets, including $27.9 billion under direct management.
For more information about City National, visit the company's website at cnb.com.
The City National Corporation logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3142