City National Corp. in Los Angeles expanded its asset size by roughly 5% last weekend in its largest deal to date by acquiring the failed Imperial Capital Bank in La Jolla, Calif.
City National, which will now have nearly $22 billion of assets, said in a conference call Monday that it has not determined if the deal will slow plans to repay $400 million from the Treasury's Troubled Asset Relief Program.
"It doesn't change our view on our ability to repay Tarp," said Russell Goldsmith, the president and CEO of City National, who said the company would not need additional capital to support the deal.
The deal with Imperial, with $4 billion in assets, includes a loss-sharing agreement. City National picks up $3.4 billion of assets and $2.2 billion in deposits. It also will acquire $96 million in cash from the Federal Deposit Insurance Corp.
