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City National Corp. Reports Operating Results (10-K)

March 01, 2011 | About:
10qk

10qk

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City National Corp. (CYN) filed Annual Report for the period ended 2010-12-31.

City National Corp. has a market cap of $3.07 billion; its shares were traded at around $58.91 with a P/E ratio of 27.5 and P/S ratio of 2.6. The dividend yield of City National Corp. stocks is 1.4%.Hedge Fund Gurus that owns CYN: Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns CYN: John Rogers of Ariel Capital Management, Columbia Wanger of Columbia Wanger Asset Management, Diamond Hill Capital of Diamond Hill Capital Management Inc, Kenneth Fisher of Fisher Asset Management, LLC, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Pioneer Investments, Jeremy Grantham of GMO LLC.

Highlight of Business Operations:

As of June 30, 2010, the aggregate market value of the registrant's common stock ("Common Stock") held by non-affiliates of the registrant was approximately $2,340,261,042 based on the June 30, 2010 closing sale price of Common Stock of $51.23 per share as reported on the New York Stock Exchange.

City National Corporation (the "Corporation"), a Delaware corporation organized in 1968, is a bank holding company and a financial holding company under the Gramm-Leach-Bliley Financial Modernization Act of 1999 (the "GLB Act"). The Corporation provides a wide range of banking, investing and trust services to its clients through its wholly-owned banking subsidiary, City National Bank (the "Bank" and together with the Corporation, its subsidiaries and its asset management affiliates the "Company"). The Bank, which has conducted business since 1954, is a national banking association headquartered in Los Angeles, California and operating through 76 offices, including 17 full-service regional centers, in Southern California, the San Francisco Bay area, Nevada and New York City. As of December 31, 2010, the Corporation had seven consolidated asset management affiliates in which it held a majority ownership interest and a noncontrolling interest in two other firms. The Corporation also had two unconsolidated subsidiaries, Business Bancorp Capital Trust I and City National Capital Trust I, as of December 31, 2010. At year-end 2010, the Company had consolidated total assets of $21.35 billion, total loan balances of $13.18 billion, and assets under management or administration (excluding the two unconsolidated asset managers) of $58.47 billion. The Company focuses on providing affluent individuals and entrepreneurs, their businesses and their families with complete financial solutions. The organization's mission is to provide this banking and financial experience through an uncommon dedication to extraordinary service, proactive advice and total financial solutions.

On July 21, 2009, the Company acquired an approximate 57 percent majority interest in Lee Munder Capital Group, LLC ("LMCG"), a Boston-based investment firm that manages assets for corporations, pensions, endowments and affluent households. LMCG had approximately $3.36 billion of assets under management at the date of acquisition and manages or advises on client assets totaling $4.93 billion as of December 31, 2010. LMCG was merged with Independence Investments, a Boston-based institutional asset management firm in which the Company held a majority interest. The combined entity is the Company's primary institutional asset management affiliate, with more than $4 billion of assets under management at acquisition date. It is operated under the Lee Munder Capital Group name and as an affiliate of Convergent Capital Management LLC.

On December 18, 2009, the Company acquired the banking operations of Imperial Capital Bank ("ICB") in a purchase and assumption agreement with the Federal Deposit Insurance Corporation ("FDIC"). Excluding the effects of acquisition accounting adjustments, the Company acquired approximately $3.26 billion in assets, $2.38 billion in loans and $2.08 billion in deposits. On May 7, 2010, the Bank acquired the banking operations of 1st Pacific Bank of California ("FPB") in a purchase and assumption agreement with the FDIC. Excluding the effects of acquisition accounting

adjustments, the Bank acquired approximately $318.6 million in assets and assumed $264.2 million in liabilities. On May 28, 2010, the Bank acquired the banking operations of Sun West Bank ("SWB") in Las Vegas, Nevada in a purchase and assumption agreement with the FDIC. Excluding the effects of acquisition accounting adjustments, the Bank acquired approximately $340.0 million in assets and assumed $310.1 million in liabilities. In connection with each of the ICB, FPB and SWB acquisitions, the Company entered into a loss sharing agreements with the FDIC with respect to acquired loans ("covered loans") and other real estate owned ("covered other real estate owned" or "covered OREO") (collectively, "covered assets").

On November 21, 2008, the Corporation entered into a letter agreement with the United States Department of the Treasury ("Treasury") pursuant to which the Corporation agreed to issue and sell 400,000 shares of the Corporation's Fixed Rate Cumulative Perpetual Preferred Stock, Series B, par value $1.00 per share ("Series B Preferred Stock") and a warrant to purchase 1,128,668 shares of the Corporation's common stock, par value $1.00 per share, at an exercise price of $53.16 per share, for an aggregate purchase price of $400 million in cash. On December 30, 2009, the Corporation repurchased $200 million or 200,000 shares of the Series B Preferred Stock that it had originally sold to Treasury, and on March 3, 2010, the Corporation repurchased the remaining $200 million or 200,000 shares of Series B Preferred stock from Treasury. In April 2010, the Corporation repurchased the warrant in full for $18.5 million. See below under "Supervision and Regulation" and "Management's Discussion and Analysis" for further details regarding this investment.

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