City National Corporation is a bank and a financial holding company. The Company provides a range of banking, investing and trust services to its clients through its wholly owned banking subsidiary, City National Bank (the Bank). The Bank operates through 62 offices, including 15 full-service regional centers, in Southern California, the San Francisco Bay area, Nevada and New York City. The Bank operates in three segments: Commercial and Private Banking, Wealth Management, and Other. All investment advisory affiliates and the Bank’s wealth management services are included in the Wealth Management segment. All other subsidiaries, the unallocated portion of corporate departments and inter-segment eliminations are included in the Other segment. The Bank’s principal client base comprises small to mid-sized businesses, entrepreneurs, professionals, and affluent individuals.
The Bank serves its clients through relationship banking. The Bank offers a range of lending, deposit, cash management, international banking, equipment financing, and other products and services. The Bank also lends, invests, and provides services in accordance with its Community Reinvestment Act (CRA) commitments.
The Bank’s Wealth Management division and the Company’s asset management subsidiaries make available investment advisory and wealth management resources, such as investment management and advisory services and brokerage services, including portfolio management, securities trading and asset management; personal and business trust and investment services, including employee benefit trust services, and estate and financial planning, and custodial services. The Bank also advises and makes available mutual funds under the name of CNI Charter Funds.
The Company’s loan portfolio consists primarily of loans for business and real estate purposes. Loans are made on the basis of an available cash-flow repayment source as the first priority, with collateral being a secondary source for loan qualification. As of December 31, 2008, the total loans were $12.44 billion. The real estate construction portfolio includes land loans and loans to develop or construct and sell residential and commercial properties. During 2008, these loans represent 10.1% of the Company’s $12.44 billion loan portfolio. Installment loans consist primarily of loans to individuals for personal purchases. At December 31, 2008, installment loans comprised 1.4 % of total loans.
Deposits and Borrowed Funds
Core deposits, which include noninterest-bearing deposits and interest-bearing deposits, excluding time deposits of $100,000 and over, provide a source of low cost funding. As of December 31, 2008, certificates of deposit of $100,000 or more totaled $1.44 billion, of which $474 million mature within three months, $885.2 million mature within four months to one year and $82.8 million mature beyond one year. As of December 31, 2008, the aggregate amount of deposits by foreign depositors in domestic offices totaled $441.2 million. As of December 31, 2008, brokered deposits were $20.2 million. Borrowed funds provide an additional source of funding for loan growth. Short-term borrowings include federal funds purchased, securities sold under agreements to repurchase, treasury tax and loan notes and Federal Home Loan Bank (FHLB) borrowings.