Business Bank of Nevada purchased
March 2, 2007
City National Corp. announced Thursday the completion of its acquisition of Business Bank of Nevada, which has a branch in Minden. The $165.2 million transaction closed on Wednesday, following regulatory and shareholder approval, according to the bank’s Web site.
Under terms of the merger agreement, shares of Business Bank Corp. were exchanged for cash or a combination of cash and City National Corp. stock. In aggregate, Business Bank shareholders will receive $77 million in cash and 1.1 million shares of City National stock. City National common stock received by Business Bank shareholders is expected to qualify as a tax-free exchange.
City National announced plans to acquire Business Bank Corp. on Nov. 1, 2006. The acquisition is expected to be essentially neutral to City National’s GAAP and cash earnings per share in 2007 and modestly accretive in 2008, excluding any revenue enhancements. Business Bank of Nevada will operate as a wholly owned subsidiary of City National Corporation until final regulatory approval of its planned merger into City National Bank.