City National Bank of Los Angeles has been acquired by Royal Bank of Canada for $5.4 billion, or $93.80 a share, in a cash-and-stock deal, the two firms announced Thursday.

The deal lets L.A.’s largest bank, a lender popular among Hollywood’s elite, operate as a separate entity while giving its new Canadian parent a stronger U.S. foothold. RBC, the has 8,000 U.S. employees, including 3,000 in New York.

Chairman and Chief Executive Russell Goldsmith will remain at City National’s helm while also oversee RBC’s U.S. Wealth Management unit. Goldsmith, who has been chief since 1995, has helped the company’s assets grow from $3.1 billion to $32.6 billion.

“We believe this combination creates a powerful expansion platform for focused long-term growth in the country which we view as our second home market,” RBC President and Chief Executive Dave McKay said in a statement. “City National serves high-net-worth and commercial client segments in select high-growth markets, and represents a unique opportunity to complement and enhance our existing U.S. businesses and product offering.”

The deal is expected to close at the end of the year.