LOS ANGELES – 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.
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.
Christopher J. Carey, City National, 310.888.6777
Cary Walker, City National Corporation, 213.673.7615