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City National Corporation (NYSE:CYN), the parent company of wholly owned City National Bank, today announced a new $11 billion, five-year commitment for community lending, investment, charitable contributions, supplier diversity and other activities outlined in the Community Reinvestment Act (CRA).
City National finalized its commitment following consultation with many of its community partners in California, and in connection with its recently announced merger with Royal Bank of Canada (RBC).
Over the term of the commitment, beginning when the RBC merger is completed in 2015 and extending over the next five years, City National’s goal is to achieve the following:
– $4.2 billion in small business loans of $1 million or less;
– $4.4 billion in qualified CRA community development loans;
– $1.6 billion in qualified CRA investments;
– $700 million in residential mortgage loans funded for minority borrowers;
– More than $80 million in supplier expenditures with minority- and women-owned businesses; and
– $30 million in charitable contributions.
“In reaching our new $11 billion commitment, which we developed in collaboration with RBC and a number of our community partners in recent months, City National is very pleased and proud to increase its significant past commitments and accomplishments in supporting the traditionally underserved communities of California,” said City National Chairman and CEO Russell Goldsmith.
“This commitment replaces a 10-year, $17.5 billion CRA commitment we made in 2007, which we are on track to fulfill notwithstanding the challenges of the recent recession. We are pleased that our pending merger with RBC will enable us to do more for California. RBC fully supports City National’s new commitment and our continued dedication to our communities. We’re gratified to have received the support of the California Reinvestment Coalition and look forward to actively working with all of our community partners to build upon our great progress with qualified CRA lending, investments, charitable contributions, supplier diversity and related activities.”
In a further statement the company said:
“City National’s commitment will emphasize small business and community development loans, and will enable CRA-qualified investments and equity-equivalent investments in California community development financial institutions, community development corporations, nonprofit community development funds, microloan funds, small business investment companies, and other related economic development-focused small business initiatives.
“City National’s commitment was developed following conversations with a number of community organizations, including the California Reinvestment Coalition, the Greenlining Institute, the National Diversity Coalition and the National Asian-American Coalition. It will be submitted to the Federal Reserve Board and Office of the Comptroller of the Currency as part of the application by Royal Bank of Canada to acquire City National Bank”.
