<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): DECEMBER 31, 1995
CITY NATIONAL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-10521 95-2568550
(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation or organization) Identification No.)
400 North Roxbury Drive
Beverly Hills, California 90210
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (310) 888-6000
<PAGE>
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.
On December 31, 1995, the registrant's wholly-owned subsidiary, City
National Bank ("CNB"), purchased all of the issued and outstanding stock of
First Los Angeles Bank ("First LA"), a wholly-owned subsidiary of San Paolo U.S.
Holding Co. ("SPUSH"), and immediately thereafter merged First LA with and into
CNB. Prior to the acquisition, First LA was a California state-chartered
commercial bank with 10 branches in Los Angeles and Orange Counties.
Pursuant to the Stock Purchase Agreement dated August 17, 1995, the
purchase price of the stock of First LA was $85 million. Immediately before the
stock purchase, SPUSH purchased from First LA loans having aggregate recorded
balances of approximately $77.5 million including accrued interest, less
allocated loan loss reserves of approximately $6.5 million. At closing, CNB
cancelled SPUSH's indebtedness to First LA of approximately $71 million
generated by the loan purchase, and paid cash for the approximately $14 million
balance of the purchase price. CNB's payment was funded from internal sources.
The equipment and properties of First LA will be used by CNB in its banking
business.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
It is impracticable to file the financial statements of First LA and the
pro forma financial statements required by Item 7(a) and (b) with this current
report. Such financial statements will be filed as an amendment hereto on or
before March 15, 1996.
(c) Exhibits (listed by numbers corresponding to Exhibit Table of Item
601 in Regulation S-K)
No.
--
2.1 Stock Purchase Agreement dated August 17, 1995, by and
among City National Bank, First Los Angeles Bank, San
Paolo U.S. Holding Company and San Paolo Bank Holding
S.P.A. (This Exhibit is incorporated by reference to
Exhibit 10.20 filed with the Registrant's Quarterly
Report on Form 10-Q for the three months ended September
30, 1995.)
2.2 Amendment to Stock Purchase Agreement dated December
____, 1995, by and among City National Bank, First Los
Angeles Bank, San Paolo U.S. Holding Company and San
Paolo Bank Holding S.P.A.
1
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CITY NATIONAL CORPORATION,
a Delaware corporation
Dated: January 11, 1996 /s/ Frank P. Pekny
------------------
FRANK P. PEKNY, Executive
Vice President, Chief Financial Officer
and Treasurer
2
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Exhibit
- ----------- -------
2.2 Amendment to Stock Purchase Agreement dated December ____, 1995, by
and among City National Bank, First Los Angeles Bank, San Paolo
U.S. Holding Company and San Paolo Bank Holding S.P.A.
3
<PAGE>
EXHIBIT 2.2
AMENDMENT TO STOCK PURCHASE AGREEMENT
THIS AMENDMENT TO STOCK PURCHASE AGREEMENT is entered as of the ___ day of
December, 1995, by and among City National Bank ("CNB"), San Paolo U.S. Holding
---
Company ("Seller"), San Paolo Bank Holding S.P.A. and First Los Angeles Bank
------
("Bank") as an amendment to that certain Stock Purchase Agreement ("Agreement")
---- ---------
dated as of August 17, 1995 by and among the parties hereto.
1. The phrase "or immediately after" shall be inserted at the beginning of
the third line of Section 4.13(b) of the Agreement.
2. Section 4.14 is amended in its entirety to read as follows:
4.14 Designated Portfolio. Immediately prior to the Closing, Seller
--------------------
shall purchase for cash (or for a promissory note in form acceptable to CNB)
from the Bank, at gross book value (plus accrued but unpaid interest through
and including the date prior to the Closing Date), less applicable reserves
("net book value"), a portfolio of loans identified on Schedule 4.14 hereto.
--------------
3. Section 4.15 of the Agreement shall be of no force and effect.
4. The Selling Entities agree that they shall not file the federal or
state income Tax Returns ("1995 Returns") Selling Entities are required to file
pursuant to Section 4.17(a)(ii) of the Agreement prior to August 31, 1996 and
that CNB shall have the opportunity to review the 1995 Returns prior to the
filing thereof. The Selling Entities further agree that, unless otherwise
instructed by CNB, they (i) will not take a bad debt deduction for that portion
of loans charged off in whole or in part during 1995 that are, prior to the
filing of the 1995 Returns, collected by CNB (as successor to the Bank) or are
restructured by CNB whereby collection is reasonably assured, and (ii) will
include in taxable income in the 1995 Returns all unpaid interest on nonaccrual
status as of December 31, 1995 that is collected prior to the filing of the 1995
Returns. The Selling Entities shall not be obligated to make adjustments in
excess of $7 million to the 1995 Returns pursuant to clauses (i) and (ii) of the
preceding sentence. CNB shall promptly reimburse the Selling Entities for any
incremental out-of-pocket expenses either of them incurs in connection with the
adjustments to the 1995 Returns made pursuant to this paragraph.
5. The following language shall be substituted for the parenthetical
beginning in the fifth line of Section 7.3(a)(i)(B) of the Agreement:
(plus such amount, if any, actually received by Bank or CNB from those
matters specifically described in the Disclosure Schedule for which
complete information was provided to CNB prior to the date hereof, net of
legal fees and expenses paid in connection with such matters following the
Closing Date)
6. All capitalized terms used but not defined herein shall have the
meanings ascribed to them in the Agreement.
Redacted to remove confidential information on Schedule 4.14.
1
<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to Stock
Purchase Agreement to be executed by their duly authorized officers as of the
date first written above.
CITY NATIONAL BANK SAN PAOLO U.S. HOLDING COMPANY
By: /s/ Frank P. Pekny By: /s/ Mario Garresi
------------------------------ ----------------------------------
Name: Frank P. Pekny Name: Mario Garresi
----------------------------- ---------------------------------
Title: Chief Financial Officer Title: Senior Executive Vice President
---------------------------- --------------------------------
FIRST LOS ANGELES BANK SAN PAOLO BANK HOLDING
S.P.A.
By: /s/ Sheryl Anne Balthazar By: /s/ Sergio Eugenio
------------------------------ ----------------------------------
Name: Sheryl Anne Balthazar Name: Sergio Eugenio
----------------------------- ---------------------------------
Title: Senior Executive Title: Senior Executive
Vice President Vice President
---------------------------- --------------------------------
By: /s/ Vincenzo Capurro
----------------------------------
Name: Vincenzo Capurro
---------------------------------
Title: Joint Chief Executive Officer
--------------------------------
2
<PAGE>
CREDIT ADMINISTRATION
COMMERCIAL AND REAL ESTATE LOAN APPLICATIONS
SCHEDULE 4.14
BALANCES AS OF 12/20/95
<TABLE>
<CAPTION>
Principal Reserve
Branch Note Borrower Balance QC Amount
------ ----- ------------------ ----------- ---- ----------
<S> <C> <C> <C> <C> <C>
083-001466 10524 [Confidential $ 39,015 5A $ 3,902
083-001466 11215 information $ 24,586 5C $ 7,376
081 New omitted and $ 1,725,000 4 $ 69,000
083 10871* filed separately] $ 226,351 6 $ 113,176
083-058879 10960 $ 0 3 $ 0
083-058879 30458 $ 909,997 5B $ 181,999
083-105389 30923 $ 3,872,353 5B $ 774,471
672-105098 11173 $ 733,333 5C $ 220,000
672 31190 $ 1,685,811 4 $ 67,432
083 39844 $ 369,059 5B $ 73,812
083-011113 11389 $ 36,309 5A $ 3,631
083-011113 30462 $ 429,508 5B $ 85,902
083-073584 11080 $ 55,779 5C $ 16,734
083-086775 30395 $ 438,382 5A $ 43,838
672 30883 $ 1,251,178 3 $ 18,768
083 10734* $ 41,609 6 $ 20,805
083 12016* $ 55,367 6 $ 27,684
671-067339 10776 $ 210,000 5B $ 42,000
671-067339 89801 $ 860,384 5C $ 258,115
083-020758 19481 $ 200,000 3 $ 3,000
083-105493 00981 $ 28,975 3 $ 435
083-097386 11222 $ 105,000 3 $ 1,575
083-020771 10679 $ 179,000 3 $ 2,685
083-020771 21022 $ 581,220 5A $ 58,122
012-106605 10105 $ 0 3 $ 0
012-022007 30883 $ 2,808,974 3 $ 42,135
678 31258 $ 269,142 4 $ 10,766
012-106145 10078 $ 8,000 3 $ 120
081 21045 $ 400,000 4 $ 16,000
672 41083 $ 2,074,442 3 $ 31,117
083-081137 11240 $ 61,308 5B $ 12,262
671-106796 11121 $ 1,000,000 5A $ 100,000
678-106694 11825 $ 483,025 5B $ 96,605
083-087070 13022 $ 263,553 5A $ 26,355
083-087070 20931 $10,031,047 5A $1,003,105
083-087070 20998 $ 914,378 5A $ 91,438
083 11129* $ 124,406 5C $ 37,322
083 11130* $ 117,500 5C $ 35,250
672-034708 19269 $ 900,000 4 $ 36,000
672-034708 20001 $ 230,000 3 $ 3,450
672 30449 $ 1,854,609 4 $ 74,184
083-073371 15277 $ 2,220,000 5A $ 222,000
083 35352 $ 2,031,916 5A $ 203,192
083 35444 $ 118,117 5B $ 23,623
083-094328 11193 $ 381,564 5C $ 114,469
083-073827 11161 $ 38,500 5C $ 11,550
083-037989 10433 $ 4,282,500 5B $ 856,500
083-037989 10699 $ 2,790,000 5A $ 279,000
083-037989 30105 $ 2,860,065 5A $ 286,007
083-039550 14885 $ 104,131 5C $ 31,239
12 39071 $ 4,924,914 3 $ 73,874
12 59071 ($ 4,877,691) 3 ($ 73,165)
083-071328 11029 $ 595,000 5C $ 178,500
671-059948 31267 $ 1,986,234 5A $ 198,623
083-041890 11221 $ 171,719 5C $ 51,516
083 31053 $ 63,935 5A $ 6,394
083 31155 $ 490,251 5A $ 49,025
083 31193 $ 55,056 5A $ 5,506
671-060601 10391 $ 0 3 $ 0
671 31140 $ 536,793 3 $ 8,052
----------- ----------
Subtotal $54,371,604 $6,236,478
----------- ----------
081-106087 31007 $23,500,000 3 $ 352,500
----------- ----------
Subtotal $23,500,000 $ 352,500
----------- ----------
Grand Total $77,871,604 $6,588,970
=========== ==========
</TABLE>
* Charge Off Potential or SPUSH
3
