OneAmerica Financial Partners Inc. has inked a deal to acquire the San Diego-based retirement services recordkeeping business of City National Bank, the primary subsidiary of City National Corporation (NYSE: CYN). Though the terms of the deal have not been finalized yet, it is likely to close by fourth-quarter 2014. The merged entity is expected to offer a broader range of products and services.
Upon completion of the deal, the Los Angeles, CA-based City National Bank's retirement services unit will be renamed OneAmerica Retirement Services LLC and it will continue to operate from San Diego. Additionally, the two entities are expected to sign a strategic agreement under which City National Bank will not only distribute OneAmerica retirement products, but also provide directed trustee services to select OneAmerica retirement customers.
City National Bank's retirement services division involves management of over 240 plans, covering around 40,000 participants. Moreover, its competence in offering individually directed accounts (IDAs) as well as experience in serving the country's largest and most admired professional firms has provided it with an advantage over its peers. On the other hand, OneAmerica, the Indianapolis, IN-based insurance firm's retirement services businesses manage over 10,000 plans with around 680,000 participants.
The acquisition boosts OneAmerica's growth momentum by adding new participants and plans to its retirement services portfolio. With continuous evolution of the industry and the client needs, the deal is expected to be accretive to OneAmerica.
Currently, City National Corporation carries a Zacks Rank #3 (Hold). Some better-ranked western banks include Central Pacific Financial Corp. (NYSE: CPF), CVB Financial Corp. (NASDAQ: CVBF) and Bridge Capital Holdings (NASDAQ: BBNK). While Central Pacific Financial and CVB Financial sport a Zacks Rank #1 (Strong Buy), Bridge Capital Holdings has a Zacks Rank #2 (Buy).
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