Jerome F. Schulte, the chief financial officer of City National Corp. in Beverly Hills, has resigned.
Mr. Schulte, 60, is a vice chairman and 27-year veteran of city National, which has been bloodied by California's slumping economy.
Chairman and chief executive Bram Goldsmith said a replacement has been selected and would be announced later in the month.
Follows an Earlier Shake-Up
Mr. Schulte's departure is voluntary, according to company officials. "He's been my right-hand man, and we're sorry to see him go," Mr. Goldsmith said.
The change follows a management shake-up earlier this dependent banking company, which has $4 billion in assets.
Former Security Pacific vice chairman George H. Benter Jr. was named president, and former Union Bank executive vice president Steven D. Broldy became chief administrative officer and the company's senior credit official.
Through most of its history, City National had a relatively informal organization suited to community-based entrepreneurial bank.
With the arrival of Mr. Benter and Mr. Broidy, both of whom came from major banks, City National has started adopting policies and procedures typical of larger, more structured institutions.
Sources said City National officials wanted a chief financial officer with experience at a major bank who is comfortable with more complex financial systems and controls.
Mr. Schulte's departure comes after a disastrous year for City National. The company lost $89.8 million in the four quarters ended June 30.
The losses stemmed largely from loan-loss provisions and writedowns on commercial real estate credits.