City National Corp. and Harbor Bancorp Agree to Merger; Acquisition Will Take City National to $5 Billion in Assets.LOS ANGELES--(BUSINESS WIRE)--Aug. 29, 1997--City National Corp. (NYSE NYSE See: New York Stock Exchange :CYN CYN Canyon ), parent company of City National Bank, and Harbor Bancorp (HB) Friday announced that they have signed a definitive agreement in which HB will be merged into City National Corp. in a transaction with a total value of $34.1 million. At the close of this transaction, expected during January 1998, the acquisition will bring City National's total assets to $5 billion and increase its presence in 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, to 39 branches from 23 one year ago. HB shareholders will receive either cash, City National Corp. stock or a combination of cash and stock valued at $24.10 per share, subject to several conditions, including a maximum of 55 percent and a minimum of 48 percent stock in the aggregate. The purchase price of $34.1 million for the 1.4 million shares outstanding represents a multiple of 2.1 times HB's June 30, 1997 book value. The transaction is expected to be accretive to City National's 1998 earnings. Harbor Bancorp is the holding company for Harbor Bank, the second largest community bank with headquarters in Long Beach, Calif. Founded in 1974, Harbor Bank has six branches with 98 employees and approximately $213 million in assets as of June 30, 1997. Two Harbor Bank branches are located in Long Beach and four are situated in Orange County -- one each in Los Alamitos Los Alamitos (lôs ăləmē`təs, lŏs), city (1990 pop. 11,676), Orange co., NE of Long Beach, S Calif., in a suburban area; inc. 1960. Los Alamitos Racetrack and U.S. military installations are nearby. , Fountain Valley Fountain Valley, city (1990 pop. 53,691), Orange co., S Calif.; inc. 1957. Chiefly residential, Fountain Valley also has diverse manufactures, including apparel, computer equipment, semiconductors, and medical equipment. A U.S. navy helicopter facility is there. , Irvine and Huntington Beach Huntington Beach, city (1990 pop. 181,519), Orange co., S Calif., on the Pacific coast, across from Santa Catalina Island, in an oil-producing area; inc. 1909. It manufactures aerospace vehicles, aircraft parts, optical instruments, and heat transfer equipment. , Calif. The acquisition provides the growing Long Beach area with the support of the premier business and private bank in Southern California. The merger is subject to approval by regulatory authorities and the shareholders of HB. "Harbor Bank and City National Bank will fit together very well because both are outstanding, relationship-driven, independent business banks," said Russell Goldsmith, chairman and chief executive officer of City National Bank. "The combination will provide the clients and communities that Harbor has served so well with the enhanced banking capabilities and broader array of world-class financial products and services of Southern California's largest independent bank." "At a time when few financial institutions offer relationship-oriented banking services, we see this pending merger as an opportunity which not only is in the best interest of our shareholders, but also in the best interest of our customers as well," said James H. Gray James Henry Gray (August 31, 1906 – November 12, 1998) was a Canadian journalist, historian and author. Born in Whitemouth, Manitoba, he moved to Winnipeg with his parents in 1911. , chairman and chief executive officer of HB. "City National will provide Harbor Bank's customers with additional services such as trust, asset management and international banking." Gray will continue to play a key role in Long Beach with City National following completion of the transaction, as chairman of City National's new Long Beach Advisory Board and as a senior advisor In some countries, a Senior Advisor is an appointed position by the Head of State to advise on the highest levels of national and government policy. Sometimes a junior position to this is called a National Policy Advisor. to the bank. Dallas E. Haun, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of HB, will also play a key role with City National as the new regional senior vice president for an expanded region that includes the Long Beach and South Bay areas. City National's principal subsidiary is City National Bank, the largest independent bank with headquarters in Southern California. A federally chartered, $4.7 billion commercial bank, City National now has 33 offices throughout Los Angeles, Orange, San Diego, Riverside and Ventura counties. For more information about City National, call the company's Fax-On-Demand Information Service at 800/873-5293, or visit City National's Web page at http://www.cityntl.com -0- NOTE TO EDITORS: A media conference call will be held Friday at 10:30 a.m. PST PST Paroxysmal supraventricular tachycardia, see there . The call can be accessed by dialing 888/422-7105. Refer to the following participant code: 430860. CONTACT: City National Bank, Los Angeles Frank Pekny, 310/888-6700 J.A. Dunnigan, 310/888-6636 or Harbor Bank Jim Gray, 562/491-1111 or Stoorza, Ziegaus & Metzger Inc. Denis Denis, king of Portugal: see Diniz. Wolcott, 213/891-2822 |
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