Services to expand at Carson City Business Bank branch once sale closes
Appeal Staff Writer
Business Bank of Nevada’s sale to a California corporation for $161 million will not affect the majority of employees, a City National Bank executive said Friday.
City National Corp. (NYSE:CYN), which employs 2,600, with bank branches in Southern California, the Bay area and Manhattan, announced plans this week to purchase Las Vegas-based Business Bank Corp. (OTCBB:BBNV), which has a Carson City branch.
The sale marks City National’s entry into the Nevada market, where it already has $100 million in loans to clients with business interests here.
Russell Goldsmith, chairman of the board and chief executive officer of City National Bank, said Friday that “a relatively small percent” of Business Bank’s 116 employees, 11 of whom work in Carson City, will lose their jobs. Positions in information technology, human relations and corporate administration are most likely to be eliminated because of consolidation with the California office.
“There will be no ‘client facing’ employees removed,” Goldsmith said. “Customers should know that the people they come in contact with and love to work with are still going to be here.”
The sale is expected to close in March, following government approval and an affirming vote from shareholders. Both companies’ boards of directors approved the sale. The Business Bank’s board of directors owns a bit more than 40 percent of the company’s shares.
Wall Street responded positively after the sale was reported in the press earlier this week and then announced officially on Wednesday, after only about two months in negotiation. Business Bank shares increased from $53 to an all-time high of $63 on Friday. City National shares went from a high of $66.75 on Wednesday to close Friday at $65.50.
Carson City Customers will notice several new services when the City National sale is complete, such as:
• Deposit capture, which is a desktop device that scans checks at the customer’s office or home and immediately transmits the information to the bank.
• Online banking
• International services, such as access to a foreign exchange desk
• Wealth management
• Platinum products, such as credit cards
• Higher lending limits
John Guedry, president and CEO of Business Bank of Nevada, and four other executives will continue working for City National. Guedry will become the executive vice president and head of the Nevada banking group.
“This was a great opportunity to give more services to our customer base,” he said Friday.
• Contact reporter Becky Bosshart at firstname.lastname@example.org or 881-1212.