City National Bank of Florida, the Miami bank purchased by Bankia (formerly Caja Madrid) of Spain in November 2008, said Wednesday that its parent has a “four-year window to evaluate alternatives” for the bank’s future ownership and will work closely with management in Miami during the process.
The Spanish government has reached and agreement with the European Union related to Spain’s financial system problems, which will result in a recapitalization of Bankia and other institutions, the bank said. The agreement calls for Bankia to sell non-core assets and its holdings outside of Spain so that Bankia will emerge with a solid capital position and be more focused on its core domestic business.
“Because City National Bank is so well capitalized, profitable and well positioned in the marketplace, we are going to take our time to fully evaluate all of our strategic alternatives,” City National Bank President and CEO Jorge Gonzalez said in a statement. “This does not impact our ongoing strategy of profitable growth and diversification or our commitment to the markets we serve. Our focus continues to be taking excellent care of our clients and employees. ”
City National, founded 65 years ago, has $4.32 billion in assets and 26 branches from Miami-Dade County to the greater Orlando area.
INA PAIVA CORDLE