SAN FRANCISCO--(BUSINESS WIRE)--March 1, 2000--City National Corp. (NYSE:CYN), today announced that on Tuesday, Feb. 29, 2000, it completed the acquisition of San Francisco-based The Pacific Bank, N.A., through a merger with City National Bank, a wholly owned subsidiary of City National Corp.
The transaction will be accounted for as a purchase in which each outstanding share of Pacific Bank stock was exchanged for either .9344 shares of City National common stock or $29 in cash. City National Corp. paid $145.2 million (including the consideration for outstanding stock options) for Pacific Bank, of which 47 percent was paid in City National common stock and 53 percent was paid in cash to Pacific Bank shareholders.
The merger marks City National Bank's strategic expansion into Northern California and will bring the bank's total assets to nearly $8 billion.
"Merging with The Pacific Bank creates many opportunities for us to deliver City National Bank's proven formula and greater capabilities for premier private and business banking to the robust Bay Area economy," said City National Bank Chairman and CEO Russell Goldsmith. "We plan to grow our business and private banking in Northern California, building on the strong foundation of The Pacific Bank and its fine team."
Goldsmith continued, "Our two banks share a similar commitment to superior relationship banking focused on entrepreneurs, professionals, investors and small- to mid-size businesses, which will benefit from our expertise in the key industries that drive economic growth in Northern California. The merger will enhance our capabilities in Southern California as well."
Pacific Bank President and CEO Michael Tun Zan will remain as Senior Banking Executive in Northern California. He will also chair the San Francisco Board of Advisors to be formed by City National Bank, which will consist of key leaders from the Bay Area. Tun Zan, along with most of the other key Pacific Bank officers, will remain to serve their customers as they have in the past.
"Our Pacific Bank customers will immediately benefit from the broader array of products and services City National offers," said Tun Zan, "including Trust and Real Estate, a larger lending capability, and City National's strong commitment to the California marketplace."
The Pacific Bank computer systems conversion, which will facilitate the consolidation of operations, is expected to be complete by April 17, 2000. The merger and subsequent systems conversion provide opportunities for improved efficiencies.
The Pacific Bank, a $726 million-asset business and private bank founded in 1983, provides full banking services to middle-market businesses, professional service firms and individuals, as well as international banking services through offices in both Northern and Southern California.
City National Corp. is a publicly owned corporation with nearly $8 billion in assets whose stock is traded on the New York Stock Exchange under the symbol "CYN." The corporation's wholly owned subsidiary, City National Bank, is the largest independent bank headquartered in Southern California. City National Bank has more than 50 offices throughout San Francisco, San Mateo, Los Angeles, Orange, Riverside, San Diego, San Bernardino, and Ventura counties, as well as a loan production office in Sacramento. In addition, the bank's Investment department, City National Investments, has almost $15 billion in assets under management or administration.
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