City National Bank Rtgs Assigned by S&P; Outlk Stable.NEW YORK--(BUSINESS WIRE)--S&P CreditWire 9/11/97--Standard & Poor's today assigned its long-term counterparty Counterparty The other participant, including intermediaries, in a swap or contract. rating of triple-`B'-plus and short-term counterparty rating of `A-2' to City National Bank, the primary operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. of City National Corp., Beverly Hills Beverly Hills, city (1990 pop. 31,971), Los Angeles co., S Calif., completely surrounded by the city of Los Angeles; inc. 1914. The largely residential city is home to many motion-picture and television personalities. , Calif. City National Bank is a $5 billion commercial bank serving a largely corporate and entrepreneurial clientele with a variety of loan products, as well as related cash management, trust, and private banking services. Within this heavy commercial orientation, there are a number of niche positions, including various products and services to the entertainment industry. While serving a limited customer base, City National Bank enjoys a unique and strong franchise. Ratings reflect the sound financial profile of City National Bank, particularly its excellent funding profile, strong capitalization, and good profitability. The strong customer relationships continue to generate large levels of interest-free demand deposits, which represent around 40% of total deposits. As such, overall funding costs are among the lowest in the industry. The low-cost deposit structure generates a strong net interest margin and boosts overall profitability. Capital measures are strong, although Standard & Poor's expects some moderate increase in balance sheet leverage from both strong internal growth and acquisitions. In the early 1990s, City National experienced significant asset quality related problems. Largely driven by the southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, recession, City National's heavy concentration of construction and commercial real estate loans resulted in large charge-offs and a number of years of operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. . During this period, management was able to aggressively manage the balance sheet in order to maintain financial integrity. While still southern California based, the credit profile today is more broadly based, with approximately 25% of the loan portfolio in jumbo residential mortgages. Also, industry and individual exposures are well below earlier periods. OUTLOOK: STABLE The resurgent re·sur·gent adj. 1. Experiencing or tending to bring about renewal or revival. 2. Sweeping or surging back again. Adj. 1. southern California economy, as well as acquisitions, has produced strong revenue dynamics. This favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. provides the framework for maintenance of a sound financial profile and stable operating performance. ---CreditWire CONTACT: Glen Grabelsky, 212/208-1541 For more information on criteria or subscriptions: http://www.ratings.standardpoor.com |
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