City National Announces New $11 Billion, Five-Year Community Commitment
April 24 2015 - 6:54PM
City National Corporation (NYSE:CYN), the parent company of wholly
owned City National Bank, today announced a new $11 billion,
five-year commitment for community lending, investment, charitable
contributions, supplier diversity and other activities outlined in
the Community Reinvestment Act (CRA).
City National finalized its commitment following consultation
with many of its community partners in California, and in
connection with its recently announced merger with Royal Bank of
Canada (RBC).
Over the term of the commitment, beginning when the RBC merger
is completed in 2015 and extending over the next five years, City
National's goal is to achieve the following:
- $4.2 billion in small business loans of $1 million or
less;
- $4.4 billion in qualified CRA community development loans;
- $1.6 billion in qualified CRA investments;
- $700 million in residential mortgage loans funded for minority
borrowers;
- More than $80 million in supplier expenditures with minority-
and women-owned businesses; and
- $30 million in charitable contributions.
"In reaching our new $11 billion commitment, which we developed
in collaboration with RBC and a number of our community partners in
recent months, City National is very pleased and proud to increase
its significant past commitments and accomplishments in supporting
the traditionally underserved communities of California," said City
National Chairman and CEO Russell Goldsmith.
"This commitment replaces a 10-year, $17.5 billion CRA
commitment we made in 2007, which we are on track to fulfill
notwithstanding the challenges of the recent recession. We are
pleased that our pending merger with RBC will enable us to do more
for California. RBC fully supports City National's new commitment
and our continued dedication to our communities. We're gratified to
have received the support of the California Reinvestment Coalition
and look forward to actively working with all of our community
partners to build upon our great progress with qualified CRA
lending, investments, charitable contributions, supplier diversity
and related activities."
City National's commitment will emphasize small business and
community development loans, and will enable CRA-qualified
investments and equity-equivalent investments in California
community development financial institutions, community development
corporations, nonprofit community development funds, microloan
funds, small business investment companies, and other related
economic development-focused small business initiatives.
City National's commitment was developed following conversations
with a number of community organizations, including the California
Reinvestment Coalition, the Greenlining Institute, the National
Diversity Coalition and the National Asian-American Coalition. It
will be submitted to the Federal Reserve Board and Office of the
Comptroller of the Currency as part of the application by Royal
Bank of Canada to acquire City National Bank.
ABOUT CITY NATIONAL
City National Corporation has $32.7 billion in assets. The
company's wholly owned subsidiary, City National Bank, provides
banking, investment and trust services through 75 offices,
including 16 full-service regional centers, in Southern California,
the San Francisco Bay Area, Nevada, New York City, Nashville and
Atlanta. City National and its investment affiliates manage or
administer $62.0 billion in client investment assets, including
$48.4 billion under direct management.
For more information about City National, visit the company's
Website at cnb.com.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements about the
company, for which the company claims the protection of the safe
harbor provisions contained in the Private Securities Litigation
Reform Act of 1995.
A number of factors, many of which are beyond the company's
ability to control or predict, could cause future results to differ
materially from those contemplated by such forward-looking
statements. These factors include: (1) the possibility that the
Merger does not close when expected or at all because required
regulatory, stockholder or other approvals are not received or
other conditions to the closing are not satisfied on a timely basis
or at all, or that we experience difficulties in employee retention
as a result of the announcement and pendency of the proposed
Merger; or that clients, distributors, suppliers and competitors
seek to change their existing business relationships with us as a
result of the announcement of the proposed Merger, any of which may
have a negative impact on our business or operations; (2) changes
in general economic, political, or industry conditions and the
related credit and market conditions and the impact they have on
the Company and its clients, including changes in consumer
spending, borrowing and savings habits; (3) the impact on financial
markets and the economy of the level of U.S. and European debt; (4)
the effects of and changes in trade and monetary and fiscal
policies and laws, including the interest rate policies of the
Board of Governors of the Federal Reserve System; (5) limited
economic growth and elevated levels of unemployment; (6) the effect
of the enactment of the Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010 and the rules and regulations to be
promulgated by supervisory and oversight agencies implementing the
legislation, taking into account that the precise timing, extent
and nature of such rules and regulations and the impact on the
Company is uncertain; (7) significant changes in applicable laws
and regulations, including those concerning taxes, banking and
securities; (8) the impact of cyber security attacks or other
disruptions to the Company's information systems and any resulting
compromise of data or disruption in service; (9) changes in the
level of nonperforming assets, charge-offs, other real estate owned
and provision expense; (10) incorrect assumptions in the value of
the loans acquired in FDIC-assisted acquisitions resulting in
greater than anticipated losses in the acquired loan portfolios
exceeding the losses covered by the loss-sharing agreements with
the FDIC; (11) changes in inflation, interest rates, and market
liquidity which may impact interest margins and impact funding
sources; (12) the Company's ability to attract new employees and
retain and motivate existing employees; (13) increased competition
in the Company's markets and our ability to increase market share
and control expenses; (14) changes in the financial performance
and/or condition of the Company's clients, or changes in the
performance or creditworthiness of our clients' suppliers or other
counterparties, which could lead to decreased loan utilization
rates, delinquencies, or defaults and could negatively affect our
clients' ability to meet certain credit obligations; (15) a
substantial and permanent loss of either client accounts and/or
assets under management at the Company's investment advisory
affiliates or its wealth management division; (16) soundness of
other financial institutions which could adversely affect the
Company; (17) protracted labor disputes in the Company's markets;
(18) the impact of natural disasters, terrorist activities or
international hostilities on the operations of our business or the
value of collateral; (19) the effect of acquisitions and
integration of acquired businesses and de novo branching efforts;
(20) changes in accounting policies or procedures as may be
required by the Financial Accounting Standards Board or regulatory
agencies; and (21) the success of the Company at managing the risks
involved in the foregoing.
Forward-looking statements speak only as of the date they are
made, and the company does not undertake to update forward-looking
statements to reflect circumstances or events that occur after the
date the statements are made, or to update earnings guidance,
including the factors that influence earnings.
For a more complete discussion of these risks and uncertainties,
please refer to the company's Annual Report on Form 10-K for the
year ended December 31, 2014.
CONTACT: Financial/Investors:
Christopher J. Carey, City National, 310.888.6777
Chris.Carey@cnb.com
Media:
Cary Walker, City National Corporation, 213.673.7615
Cary.Walker@cnb.com