Is City National Bank Safe?

Is City National Bank Safe?

Many depositors across the country find their heads filled with fear. And worry!

Lately all we can read about these days are banks failing everywhere! Are we in a financial crisis? Now some worry Will Bank of America Collapse? And many others worry whether or not there is a Hawaii Bank Run? And of course, many others worry about the more local establishments. Will First Republic Bank Fail ? Is my money Safe in Schwab?

But, as well know, if we keep less than $250,000 in one account, we have the backing of the FDIC! See for details: FDIC insurance

However, we all worry about bank’s health. Despite the FDIC guarantee.

Let’s take a look at the broader sector!

Below we have a chart showing unrealized depreciation on Hold to Maturity Securities (HTM) for top 100 banks versus equity. 

These unrealized losses are NOT reflected in profits. Or a deduct to equity via Other Comprehensive Income (OCI) – only in the footnotes! Moreover, we don’t find these losses reflected in stress tests or measures of capital adequacy. 

Furthermore a 25 bp (1/4 of 1 percent) increase in rates for a 10-year security causes approximately 2 points in losses (100 par to 98 to reflect yield discount). 

City National Bank (CNB) is a banking institution based in Los Angeles, California, and has a long history dating back to the early 20th century.

Founded in 1954 by Alfred S. Hart, a Beverly Hills lawyer, and Benjamin N. Maltz, a real estate developer. The bank initially became established to provide banking services to the entertainment industry, which was thriving in Hollywood at the time.

In the following decades, CNB continued to grow and expand its services. In the 1970s, the bank established a wealth management division, which provided investment and trust services to its clients. CNB also began to offer commercial banking services, including loans and cash management services.

In the 1980s and 1990s, CNB continued to expand its footprint through a series of mergers and acquisitions.

In 1983, the bank acquired Valley Bank of Nevada. Which expanded its presence in the Las Vegas market. In 1995, CNB acquired American Pacific State Bank, which gave the bank a foothold in the San Francisco Bay Area.

Furthermore, in 2001, City National Bank became a publicly traded company, and its shares began trading on the New York Stock Exchange under the symbol “CYN.” Additionally, in the following years, the bank continued to grow, both organically and through acquisitions.

Furthermore, in 2015, CNB was acquired by Royal Bank of Canada (RBC), a Canadian multinational financial services company. Today, CNB operates as a wholly-owned subsidiary of RBC, and continues to offer a wide range of banking, investment, and wealth management services to its clients.

Throughout its history, City National Bank has remained committed to serving the needs of its clients, including individuals, small businesses, and large corporations. Lastly, the bank earned a reputation for providing personalized service, innovative solutions, and a deep understanding of the industries and markets it serves.

Is City National Bank Safe?