Shareholders' Equity

12 Months Ended

Dec. 31, 2012

Shareholders' Equity

Shareholders' Equity

Note 12. Shareholders' Equity

        On November 13, 2012, the Corporation issued 7,000,000 depositary shares, each representing a 1/40^th interest in a share of 5.50% Series C non-cumulative perpetual preferred stock with a liquidation preference of $1,000 per share (equivalent to $25.00 per depositary share). Net proceeds, after issuance cost, were approximately $169.9 million. Dividends on the preferred stock will be payable quarterly, in arrears, if declared by the Corporation's Board of Directors. The preferred stock has no maturity date and may be redeemed in whole or in part at the option of the Corporation on any dividend payment date after five years from the date of issuance.

        The components of AOCI at December 31, 2012 and 2011 are as follows:

	December 31,
(in thousands)	2012		2011
Net unrealized gain on securities available-for-sale	$	86,526	$	73,235
Net unrealized gain on cash flow hedges		56		222
Pension liability adjustment		—		(1,085	)
Total accumulated other comprehensive income	$	86,582	$	72,372

        The following table presents the tax effects allocated to each component of other comprehensive income for the year ended December 31, 2012, 2011 and 2010:

(in thousands)	Pre-tax			Tax expense (benefit)			Net-of-tax
For the year ended December 31, 2012
Securities available-for-sale:
Net unrealized gains arising during the period	$	24,020		$	10,047		$	13,973
Reclassification adjustment for net gains included in net income		(183	)		(76	)		(107	)
Non-credit related impairment loss		(988	)		(413	)		(575	)
Net change on cash flow hedges		(166	)		—			(166	)
Pension liability adjustment		1,085			—			1,085
Total other comprehensive income	$	23,768		$	9,558		$	14,210
For the year ended December 31, 2011
Securities available-for-sale:
Net unrealized gains arising during the period	$	72,499		$	30,326		$	42,173
Reclassification adjustment for net gains included in net income		(4,955	)		(2,073	)		(2,882	)
Non-credit related impairment loss		(4,198	)		(1,756	)		(2,442	)
Net change on cash flow hedges		(962	)		—			(962	)
Pension liability adjustment		(368	)		—			(368	)
Total other comprehensive income	$	62,016		$	26,497		$	35,519
For the year ended December 31, 2010
Securities available-for-sale:
Net unrealized gains arising during the period	$	73,808		$	30,874		$	42,934
Reclassification adjustment for net losses included in net income		8,914			3,744			5,170
Non-credit related impairment loss		(7,482	)		(3,130	)		(4,352	)
Net change on cash flow hedges		(6,321	)		(3,134	)		(3,187	)
Pension liability adjustment		(663	)		—			(663	)
Total other comprehensive income	$	68,256		$	28,354		$	39,902

        On January 24, 2008, the Board of Directors authorized the repurchase of 1 million shares of City National Corporation stock, following the completion of its previously approved stock buyback initiative. The Corporation did not repurchase any shares of its common stock in 2012, 2011 and 2010 under the repurchase program. As of December 31, 2012, there were 1,140,400 shares that may yet be purchased under the January 24, 2008 buyback initiative. The Corporation received no shares in payment for the exercise price of stock options.

        The following table summarizes the Company's share repurchases for the three months ended December 31, 2012. All repurchases relate to shares withheld or previously owned shares used to pay taxes due upon vesting of restricted stock.

Period	Total Number of Shares (or Units) Purchased		Average Price Paid per Share (or Unit)
October 1, 2012 to October 31, 2012		581	$	50.28
November 1, 2012 to November 30, 2012		—		—
December 1, 2012 to December 31, 2012		988		50.37
		1,569		50.34