2009-12-22 19:13:04 -
Fitch Ratings has determined that City National Corporation's (CYN) recently announced FDIC-assisted acquisition of Imperial Capital Bank (Imperial) does not have implications for CYN's current ratings ('A-/F1', Outlook Negative).
The acquisition of Imperial is an in-market transaction of manageable size for CYN and includes eight offices, $3.4 billion in assets, and $2.2 billion in deposits. Similar to other FDIC-assisted transactions, CYN has a loss sharing agreement with the FDIC on $2.6 billion in loans.
Fitch believes the loss sharing provides sufficient loss mitigation for CYN. Fitch does anticipate considerable customer attrition due to Imperial's book of high priced certificates of deposit, but CYN should be able to retain Imperial's local core customer base.
Fitch expects a moderate impact on CYN's solid
tangible common equity to tangible assets ratio. Given the similar footprints of the two companies, CYN should be able to achieve material cost savings in terms of Imperial's expense base. Finally, CYN is an experienced acquirer that has a track record of successful integrations.
Additional information is available at www.fitchratings.com :
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Fitch RatingsDoris Hoffmann, +1-312-368-2057 (Chicago)Ken
Ritz, +1-212-908-0368 (New York)Brian Bertsch, +1-212-908-0549
(Media Relations, New York)
brian.bertsch@fitchratings.com : mailto:brian.bertsch@fitchratings.com
