City National, EverBank Price Preferred-Stock Offerings

City National (CYN) in Los Angeles and EverBank Financial (EVER) in Jacksonville, Fla., priced preferred-stock offerings.

In its $175 million offering, the $24.4 billion-asset City National is selling 7 million depositary shares at $25 each, the company said Monday. Each depositary share represents a one-fortieth interest in a Series C preferred share.
 
The funds, which qualify as Tier 1 capital, will be used for general corporate purposes, such as debt repayment.
 
"City National is taking advantage of favorable market conditions to issue preferred stock," Russell Goldsmith, City National’s chief executive, said in a press release. "In light of the company's robust growth in loans and deposits over the past four years as well as its two recent acquisitions, we want to further enhance our strong capital ratios, which already significantly exceed regulatory minimums, and expand our capacity and flexibility for future growth.”

City National reported in October that its third-quarter income increased 44% from a year earlier, to $59.8 million. It largely attributed this increase to its purchase of Rochdale Investment Management in July. It also bought First American Equipment Finance, an equipment leasing company, earlier this year.

The $15 billion-asset EverBank is raising $150 million by selling 6 million depositary shares for $25 each. Each depositary share represents a one-one thousandth interest in a Series A preferred share. EverBank will use the money for general corporate purposes, such as organic growth or acquisitions.
 
The company reported last month that its third-quarter income nearly doubled from the second quarter and almost tripled from a year earlier, to $22.2 million. EverBank has taken steps to diversify its balance sheet, including purchasing a commercial lending unit from GE Capital and establishing a golf lending division staffed by hires from TCF Financial (TCB).
 
The companies expect their offerings to close next week.