Revenue Grows 7 Percent to Record $911.5 Million

Company Announces 4 Percent Dividend Increase

Board of Directors Authorizes Repurchase of Additional 1 Million Shares

LOS ANGELES, Jan. 24, 2008 (PRIME NEWSWIRE) - City National Corporation (NYSE:CYN), the parent company of wholly owned City National Bank, today reported 2007 net income of $222.7 million, or $4.52 per share. In 2006, the company earned $4.66 per share on net income of $233.5 million.

Net income in the fourth quarter of 2007 amounted to $46.9 million, or $0.96 per share, compared with $58.6 million, or $1.19 per share, in the fourth quarter of 2006. Fourth-quarter 2007 net income reflects a $20.0 million provision to enhance the company's loan-loss allowance. After tax, it amounts to $11.6 million, or $0.24 per share. Net charge-offs totaled $3.9 million, or 13 basis points of total loans. The company's allowance for loan losses amounted to $168.5 million, or 1.45 percent of total loans, up from $152.0 million at the end of the third quarter.

City National today announced that its board of directors has increased the company's annual common stock cash dividend to $1.92 per share, up 4 percent from the $1.84 previously paid. A dividend of $0.48 per share will be payable on February 20, 2008 to stockholders of record on February 6, 2008. This is the 15th consecutive year in which City National Corporation has increased its dividend.

The board also authorized the company to repurchase an additional 1 million shares of stock.

2007 HIGHLIGHTS

* Full-year revenue grew to a record $911.5 million, up 7 percent from 2006.

* City National's average loan balances grew to $11.1 billion, up 11 percent from 2006.

* Average deposits totaled $12.2 billion, a 3 percent increase from 2006. Average core deposits were $10.4 billion, up 2 percent from the year earlier.

* Noninterest income reached $303.2 million, up 25 percent from 2006, and now accounts for one-third of City National's total revenue.

* Assets under direct management amounted to $37.8 billion, a 37 percent increase from 2006. Assets under management or administration grew 22 percent to $59.0 billion.

* The company recorded a $20.0 million provision for loan losses and remained adequately reserved at 1.45 percent of total loans.

* City National remains very well capitalized. At December 31, 2007, its ratio of shareholders' equity to total assets was 10.42 percent, compared to 10.02 percent at the same time in 2006.

* City National's return on average equity in 2007 was 13.92 percent, compared with 15.99 percent in 2006. The year-over-year change was partly due to a substantial increase in capital. The company's return on average assets in 2007 was 1.45 percent, compared with 1.59 percent for the previous year.

"Given the challenging economic environment, 2007 was a solid year for City National," said President and Chief Executive Officer Russell Goldsmith. "Our company grew assets, revenue, loans, deposits, fee income and assets under management. We also made two important acquisitions and added more offices and talent to our organization."

"After almost four years of no loan loss provisions and in light of current economic conditions and their impact on a small number of our loans, we made a 2007 provision for potential loan losses. It is worth emphasizing that City National has no subprime loans, no subprime CDOs and no concerns with credit card debt, home equity loans or its money market funds. In fact, City National has a strong balance sheet and loan loss allowance, backed by substantial capital, profitability, liquidity and diversified revenue."

 For the 12 months ended Dollars in millions, December 31, except per share ----------------------- % 2007 2006 Change --------------------------------- ----------- ---------- ------- Earnings Per Share $ 4.52 $ 4.66 (3) Net Income 222.7 233.5 (5) Average Assets 15,370.8 14,715.4 4 Return on Average Assets 1.45% 1.59% (9) Return on Average Equity 13.92 15.99 (13)

ASSETS

Total assets at December 31, 2007 were $15.9 billion, up 7 percent from the previous year, primarily due to City National's loan growth as well as the first-quarter acquisition of Business Bank of Nevada.

REVENUE

Revenue grew to $911.5 million, up 7 percent from 2006, due principally to organic growth as well as the Business Bank of Nevada acquisition and the company's second-quarter acquisition of Convergent Wealth Advisors.

NET INTEREST INCOME

Fully taxable-equivalent net interest income reached $625.0 million in 2007, compared with $621.4 million for the previous year.

Average loan balances grew 11 percent in 2007 to $11.1 billion, led by a 14 percent increase in commercial loans. Commercial real estate and construction loans together were up 10 percent from 2006, while average single-family residential mortgage lending to City National's private banking clients rose 9 percent. (City National does not make subprime or option adjustable rate mortgage loans.)

Average securities for 2007 totaled $2.8 billion, down $655 million from the previous year. Proceeds from the sale of securities were used to fund loan growth. The average duration of total available-for-sale securities at December 31, 2007 was 3.4 years, compared with 3.3 years at the end of 2006.

At December 31, 2007, City National's prime lending rate was 7.25 percent, down 100 basis points and 50 basis points from December 31, 2006 and September 30, 2007, respectively.

 % Dollars in millions 2007 2006 Change ------------------------------ ------------ ------------ ------ Average Loans $ 11,057.4 $ 9,948.4 11 Average Total Securities 2,833.5 3,488.0 (19) Average Earning Assets 14,054.1 13,568.3 4 Average Deposits 12,236.4 11,869.9 3 Average Core Deposits 10,360.2 10,148.6 2 Fully Taxable-Equivalent Net Interest Income 625.0 621.4 1 Net Interest Margin 4.45% 4.58% (3)

City National's net interest margin averaged 4.45 percent in 2007, compared with 4.58 percent in the previous year. This decline was attributable primarily to loan growth, a decline in average demand deposits and pressure on deposit pricing.

Average deposits for the year totaled $12.2 billion, a 3 percent increase from 2006 due in large measure to the acquisition of Business Bank of Nevada as well as the growth of interest-bearing and time deposits. Average noninterest-bearing deposits fell 3.5 percent from 2006, as some of City National's clients shifted funds from core deposit accounts to higher-yielding instruments, and title and escrow balances declined.

With the nationwide slowdown in housing sales and refinancings, title and escrow deposit balances averaged $1.19 billion in 2007, compared with $1.26 billion in 2006.

NONINTEREST INCOME

Noninterest income reached $303.2 million in 2007, a 25 percent increase from the previous year. Excluding the acquisition of Convergent Wealth Advisors and the previously disclosed disposition of another investment affiliate in the fourth quarter of 2006, noninterest income grew 18 percent from 2006.

At December 31, 2007, noninterest income accounted for 33 percent of City National's total revenue, up from 29 percent at December 31, 2006.

Wealth Management

City National's assets under management grew 37 percent to $37.8 billion in 2007. As a result, trust and investment fees increased 31 percent over the previous year. Brokerage and mutual fund fees grew 20 percent from 2006.

 At or for the 12 months ended December 31, ------------------------- % Dollars in millions 2007 2006 Change ---------------------------------- ----------- ------------ ------ Trust and Investment Fee Revenue $ 140.8 $ 107.5 31 Brokerage and Mutual Fund Fees 60.3 50.4 20 Assets Under Management (1) 37,793.5 27,634.5 37 Assets Under Management or Administration (1) 59,032.3 48,459.0 22 (1) Excludes $12.4 billion and $9.1 billion of assets under management for an asset manager in which City National held a minority ownership interest as of December 31, 2007 and December 31, 2006, respectively.

Other Noninterest Income

Fee income from foreign exchange services and letters of credit grew 16 percent in 2007. Income from cash management and deposit transaction fees rose 11 percent from the previous year.

Other service charges and fees were $29.2 million in 2007, up $3.7 million from the previous year.

The gain on sale of other assets was due largely to a third-quarter gain of $5.1 million from the recovery of an investment in liquidation, which was partly offset by a $2.5 million loss on the sale of securities in the third quarter and approximately $0.7 million in additional income tax expense related to the expected resolution of two pending federal income tax matters.

NONINTEREST EXPENSE

Noninterest expense amounted to $538.1 million, up 12 percent from 2006. Excluding minority interest expense and the acquisitions of Convergent Wealth Advisors and Business Bank of Nevada, noninterest expense grew 5 percent from the previous year.

Fourth-quarter 2007 noninterest expense included $0.8 million, or $0.5 million after tax, to record City National's share of the exposure that VISA member-banks have to indemnify the credit card association against certain litigation. The exposure stems from judgment-sharing agreements that member-banks signed in connection with the restructuring of VISA under a single holding company. VISA intends to issue and sell a majority of its shares to the public in an initial public offering. City National expects that the proceeds from the initial public offering related to its ownership interest in VISA will more than offset its recorded VISA litigation liability.

City National's 2007 efficiency ratio was 58.21 percent, compared with 55.97 percent in 2006. The year-over-year increase was due primarily to higher core deposit pricing and the continued expansion of City National's fee-based businesses, including the addition of Convergent Wealth Advisors.

CREDIT QUALITY

Nonaccrual loans at December 31, 2007 totaled $75.6 million, or 65 basis points of its $11.6 billion in total loans, compared with $20.9 million, or 20 basis points of total loans at the end of 2006. Net loan charge-offs were $8.5 million in 2007, compared with net recoveries of $2.8 million in 2006. The increase in nonaccruals and net charge-offs occurred primarily in the company's for-sale housing construction portfolio.

Continued upheaval in the credit markets has negatively affected the nation's economy with significant impact on the residential and for-sale housing construction sectors and related industries.

City National's for-sale housing loans represented about 5 percent of its $11.6 billion loan portfolio at December 31, 2007. The performance of some projects within the portfolio reflects the continuing difficult residential market conditions in California.

City National's $3.2 billion residential mortgage and $433 million home equity portfolios continue to exhibit strong performance. At origination, these portfolios have average loan-to-value ratios of 51 percent and 55 percent, respectively. City National has not originated or purchased subprime or option adjustable rate mortgages.

In the fourth quarter of 2007, City National added $20.0 million to its allowance for loan losses. This provision reflects management's ongoing assessment of the credit quality of the company's portfolio, which is affected by various economic trends, including weakness in the housing sector. Additional factors affecting the provision include net loan charge-offs, nonaccrual loans, risk rating migration and substantial growth in the portfolio.

At December 31, 2007, the allowance for loan and lease losses was $168.5 million, or 1.45 percent of total loans.

INCOME TAXES

The company's effective tax rate was 37.0 percent for the year, slightly higher than the 36.4 percent rate in 2006, due to a decrease in tax benefits from investments in affordable housing partnerships and a nonrecurring income tax expense related to the expected resolution of two pending federal income tax matters.

FOURTH-QUARTER 2007 HIGHLIGHTS

* Fourth-quarter revenue grew to $237 million, up 10 percent from the fourth quarter of 2006.

* Fully taxable-equivalent net interest income amounted to $158 million, up 3 percent from the fourth quarter of 2006. The company's net interest margin averaged 4.42 percent in the fourth quarter of 2007, unchanged from the previous quarter.

* Average loans reached an all-time high of $11.5 billion, up 12 percent from the same period of 2006 and 2 percent from the third quarter of 2007. Excluding the company's acquisition of Business Bank of Nevada, loans were up 8 percent from the same period of 2006.

* Average deposits amounted to $12.0 billion in the fourth quarter, virtually unchanged from the same period of 2006. Average balances decreased 3 percent from the third quarter of 2007. Title and escrow deposit balances averaged $1.11 billion in the fourth quarter of 2007, compared with $1.18 billion in the third quarter of 2007.

* Noninterest income totaled $82.3 million, up 28 percent from the same period in 2006. Excluding the acquisition of Convergent Wealth Advisors, noninterest income was up 17 percent from the fourth quarter of 2006.

* The company made a $20.0 million provision for loan losses in the fourth quarter of 2007. It did not record a provision in any of the three preceding quarters.

* Noninterest expense increased 14 percent from the fourth quarter of 2006 and 5 percent from the third quarter of 2007. Excluding the acquisitions of Business Bank of Nevada and Convergent Wealth Advisors, fourth-quarter 2007 noninterest expense increased 5 percent from the same period of 2006.

* The fourth-quarter effective tax rate was 35.2 percent, compared with 38.4 percent in the third quarter of 2007. The decrease was due primarily to lower pretax income and a disproportionate decrease to permanent tax benefits. The third-quarter effective tax rate also reflects a nonrecurring income tax expense related to the expected resolution of two pending federal income tax matters.

2008 OUTLOOK

Based upon its current assessment of economic conditions, City National's management expects earnings per share to be 7 percent to 12 percent lower in 2008 than in 2007. Management's outlook is based upon its current view that the economy will grow at a nominal rate this year and that certain sectors, such as housing, will continue to put downward pressure on economic conditions. A material change in economic conditions would affect the company's earnings expectations for 2008.

In this economic environment, management anticipates moderate growth in loans and deposits this year as well as strong growth in noninterest income. Loan loss provisions are expected to be higher than in 2007, returning to more normal levels. Growth in net interest income will be somewhat constrained due to lower interest rates, some increase in nonperforming loans, and a moderate decline in commercial real estate loans. Noninterest expense is expected to grow at a lower rate than it did in 2007, despite significantly higher FDIC premiums, additional personnel costs and the impact of acquisitions made last year.

CAPITAL LEVELS

City National remains well capitalized. Total risk-based capital and Tier 1 risk-based capital ratios at December 31, 2007 were 11.27 percent and 9.31 percent, respectively, compared with the minimum regulatory standards of 10 percent and 6 percent for "well-capitalized" institutions. City National's Tier 1 leverage ratio at December 31, 2007 was 7.97 percent, well above the regulatory minimum ratio of 5 percent.

Total risk-based capital, Tier 1 risk-based capital and the Tier 1 leverage ratios at September 30, 2007 were 12.01 percent, 9.57 percent and 7.80 percent, respectively.

The period-end ratio of shareholders' equity to total assets at December 31, 2007 was 10.42 percent, compared to 10.02 percent at the same time in 2006, and 10.51 percent at September 30, 2007.

STOCK REPURCHASE

In 2007, City National repurchased 1,495,800 of its outstanding shares at an average cost per share of $69.47. With today's announcement of an additional buyback authorization, the company can now buy back as many as 1,561,900 shares.

CONFERENCE CALL

City National Corporation will host a conference call this afternoon to discuss 2007 financial results. The call will begin at 2:00 p.m. PST. Analysts and investors may dial in and participate in the question/answer session. To access the call, please dial (866) 271-5140 and enter passcode 32345020. A listen-only live broadcast of the call also will be available on the investor relations page of the company's Website at www.cnb.com. There, it will be archived and available for 12 months.

ABOUT CITY NATIONAL

City National Corporation's wholly owned subsidiary, City National Bank, provides banking, investment and trust services through 62 offices, including 15 full-service regional centers, in Southern California, the San Francisco Bay Area, Nevada and New York City. The company and its nine majority-owned investment affiliates manage or administer $59 billion in client assets, including $37.8 billion under direct management.

For more information about City National, visit the company's Website at www.cnb.com.

The City National Corporation logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3142

SAFE-HARBOR LANGUAGE

This news release contains forward-looking statements about the company, for which the company claims the protection of the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.

Forward-looking statements are based on management's knowledge and belief as of today and include information concerning the company's possible or assumed future financial condition, and its results of operations, business and earnings outlook. These forward-looking statements are subject to risks and uncertainties. A number of factors, some of which are beyond the company's ability to control or predict, could cause future results to differ materially from those contemplated by such forward-looking statements. These factors include (1) changes in general business and economic conditions, either nationally, regionally or locally in areas where the company conducts its business, (2) changes in interest rates and interest-rate relationships, (3) significant changes in banking laws or regulations, (4) increased competition in the company's markets and demand for the company's products and services, (5) higher-than-expected credit losses due to business losses, real estate cycles, credit markets, changes in commercial real estate development and real estate prices or other economic factors, (6) changes in the level of nonperforming assets and charge-offs and changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements, (7) changes in the financial performance and/or condition of the company's borrowers, (8) a substantial and permanent loss of either client accounts and/or assets under management at the company's investment advisory affiliates or its wealth management division, (9) earthquake, fire or other natural disasters affecting the condition of real estate collateral, (10) the effect of acquisitions and integration of acquired businesses and de novo branching efforts, (11) the impact of changes in regulatory, judicial or legislative tax treatment of business transactions, (12) changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies, and (13) the success of the company at managing the risks involved in the foregoing.

Forward-looking statements speak only as of the date they are made, and the company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the statements are made, or to update earnings guidance, including the factors that influence earnings.

For a more complete discussion of these risks and uncertainties, see the company's Annual Report on Form 10-K for the year ended December 31, 2006 and particularly Part I, Item 1A, titled "Risk Factors."

 CITY NATIONAL CORPORATION FINANCIAL HIGHLIGHTS (unaudited) Three Months Twelve Months ----------------------- ------------------------ For The Period % % Ended December 31, 2007 2006 Change 2007 2006 Change ------------------ ------- ------- ------ ------- -------- ------ Per Common Share Net Income Basic $ 0.98 $ 1.23 (20) $ 4.62 $ 4.82 (4) Diluted 0.96 1.19 (19) 4.52 4.66 (3) Dividends 0.46 0.41 12 1.84 1.64 12 Book value 34.61 31.39 10 Results of Operations: (In millions) Interest income $ 224 $ 214 5 $ 894 $ 826 8 Interest expense 70 63 11 286 220 30 ------- ------- ------- -------- Net interest income 154 151 2 608 606 - Net interest income (Fully taxable- equivalent) 158 155 3 625 621 1 Total revenue 237 215 10 911 848 7 Provision for credit losses 20 - NM 20 (1) NM Net income 47 59 (20) 223 234 (5) Financial Ratios: Performance Ratios: Return on average assets 1.19% 1.58% 1.45% 1.59% Return on average shareholders' equity 11.28 15.77 13.92 15.99 Period-end shareholders' equity to period-end assets 10.42 10.02 Net interest margin 4.42 4.51 4.45 4.58 Efficiency ratio 60.18 58.20 58.21 55.97 Capital Adequacy Ratios (Period-end): Tier 1 leverage 7.97 8.81 Tier 1 risk-based capital 9.31 11.09 Total risk-based capital 11.27 13.60 Asset Quality Ratios: Allowance for loan and lease losses to: Total loans and leases 1.45% 1.50% Nonaccrual loans 223.03 743.88 Nonperforming assets to: Total loans and leases and non- performing assets 0.65 0.20 Total assets 0.48 0.14 Net (charge-offs)/ recoveries to Average total loans and leases (annualized) (0.13)% (0.11)% (0.08)% 0.03% Average Balances: (In millions) Loans and leases $11,461 $10,245 12 $11,058 $ 9,948 11 Interest-earning assets 14,223 13,584 5 14,054 13,568 4 Assets 15,589 14,712 6 15,371 14,716 4 Core deposits 10,500 10,081 4 10,360 10,149 2 Deposits 12,014 12,051 - 12,236 11,870 3 Interest-bearing liabilities 8,065 7,310 10 8,011 7,305 10 Shareholders' equity 1,651 1,473 12 1,599 1,461 9 Period-End Balances: (In millions) Loans and leases $11,631 $ 10,386 12 Assets 15,889 14,884 7 Core deposits 10,516 10,326 2 Deposits 11,823 12,173 (3) Shareholders' equity 1,656 1,491 11 Wealth Management: (In millions)(1) Assets under management $37,794 $ 27,634 37 Assets under management or administration 59,032 48,459 22 (1) Excludes $12.4 billion and $9.1 billion of assets under management for an asset manager in which City National held a minority ownership interest as of December 31, 2007 and December 31, 2006, respectively. CITY NATIONAL CORPORATION CONSOLIDATED STATEMENTS OF INCOME (unaudited) (Dollars in thousands except per share data) ----------------------- Three Months Ended Twelve Months Ended December 31, December 31, -------------------------- -------------------------- % % 2007 2006 Change 2007 2006 Change -------------------------- -------------------------- Interest income $223,969 $213,524 5 $894,101 $826,315 8 Interest expense 69,596 62,788 11 285,829 220,405 30 -------- -------- -------- -------- Net Interest Income 154,373 150,736 2 608,272 605,910 0 Provision for Credit Losses 20,000 - NM 20,000 (610) NM Noninterest Income Trust and in- vestment fees 38,188 30,777 24 140,753 107,462 31 Brokerage and mutual fund fees 16,995 13,309 28 60,279 50,358 20 Cash management and deposit transaction fees 9,517 7,909 20 35,261 31,631 11 International services 8,379 6,486 29 30,399 26,174 16 Bank-owned life insurance 660 700 (6) 2,690 2,996 (10) Other service charges and fees 8,575 6,693 28 29,205 25,499 15 Gain on sale of other assets 12 2,482 (100) 5,989 2,750 118 Gain (loss) on sale of securities 7 (4,130) (100) (1,374) (4,500) (69) -------- -------- -------- -------- Total non- interest income 82,333 64,226 28 303,202 242,370 25 Noninterest Expense Salaries and employee benefits 88,146 74,499 18 331,091 295,151 12 Net occupancy of premises 11,881 11,562 3 43,538 40,241 8 Legal and pro- fessional fees 10,050 9,327 8 35,975 34,998 3 Information services 6,039 5,836 3 23,364 21,830 7 Depreciation and amortization 5,535 4,908 13 20,932 19,062 10 Amortization of intangibles 1,749 1,456 20 8,854 5,284 68 Marketing and advertising 6,977 5,153 35 21,837 18,654 17 Office services 3,323 2,888 15 12,295 10,751 14 Equipment 867 1,043 (17) 3,249 2,812 16 Minority interest expense 2,244 1,709 31 8,856 5,958 49 Other 7,464 8,573 (13) 28,110 27,263 3 -------- -------- -------- -------- Total non- interest expense 144,275 126,954 14 538,101 482,004 12 -------- -------- -------- -------- Income Before Taxes 72,431 88,008 (18) 353,373 366,886 (4) Applicable Income Taxes 25,509 29,452 (13) 130,660 133,363 (2) -------- -------- -------- -------- Net Income $ 46,922 $ 58,556 (20) $222,713 $233,523 (5) ======== ======== ======== ======== Other Data: Earnings per common share - basic $ 0.98 $ 1.23 (20) $ 4.62 $ 4.82 (4) Earnings per common share - diluted $ 0.96 $ 1.19 (19) $ 4.52 $ 4.66 (3) Dividends paid per common share $ 0.46 $ 0.41 12 $ 1.84 $ 1.64 12 Dividend payout ratio 47.44% 33.55% 41 40.13% 34.31% 17 Return on average assets 1.19% 1.58% (24) 1.45% 1.59% (9) Return on average shareholders' equity 11.28% 15.77% (29) 13.92% 15.99% (13) Net interest margin (Fully taxable- equivalent) 4.42% 4.51% (2) 4.45% 4.58% (3) Full-time equivalent employees 2,914 2,670 9 CITY NATIONAL CORPORATION CONSOLIDATED QUARTERLY STATEMENTS OF INCOME (unaudited) (Dollars in thousands except per share data) ----------------------- 2007 --------------------------------------------- Fourth Third Second First Year to Quarter Quarter Quarter Quarter Date -------- -------- -------- -------- -------- Interest Income $223,969 $230,066 $225,825 $214,241 $894,101 Interest Expense 69,596 76,340 72,921 66,972 285,829 -------- -------- -------- -------- -------- Net Interest Income 154,373 153,726 152,904 147,269 608,272 Provision for Credit Losses 20,000 - -- - 20,000 Noninterest Income Trust and investment fees 38,188 37,488 34,823 30,254 140,753 Brokerage and mutual fund fees 16,995 15,546 13,958 13,780 60,279 Cash management and deposit transaction fees 9,517 8,801 8,472 8,471 35,261 International services 8,379 7,995 7,562 6,463 30,399 Bank-owned life insurance 660 645 761 624 2,690 Other service charges and fees 8,575 7,251 7,246 6,133 29,205 Gain (loss) on sale of other assets 12 6,023 - (46) 5,989 Gain (loss) on sale of securities 7 (2,516) 866 269 (1,374) -------- -------- -------- -------- -------- Total noninterest income 82,333 81,233 73,688 65,948 303,202 Noninterest Expense Salaries and employee benefits 88,146 84,057 80,904 77,984 331,091 Net occupancy of premises 11,881 11,837 10,362 9,458 43,538 Legal and professional fees 10,050 8,614 8,590 8,721 35,975 Information services 6,039 6,024 5,750 5,551 23,364 Depreciation and amortization 5,535 5,275 5,122 5,000 20,932 Amortization of intangibles 1,749 2,852 2,623 1,630 8,854 Marketing and advertising 6,977 5,079 5,783 3,998 21,837 Office services 3,323 3,287 2,938 2,747 12,295 Equipment 867 867 797 718 3,249 Minority interest expense 2,244 2,211 2,325 2,076 8,856 Other 7,464 7,294 7,446 5,906 28,110 -------- -------- -------- -------- -------- Total noninterest expense 144,275 137,397 132,640 123,789 538,101 -------- -------- -------- -------- -------- Income Before Taxes 72,431 97,562 93,952 89,428 353,373 Applicable Income Taxes 25,509 37,469 34,799 32,883 130,660 -------- -------- -------- -------- -------- Net Income $ 46,922 $ 60,093 $ 59,153 $ 56,545 $222,713 ======== ======== ======== ======== ======== Other Data: Earnings per common share - basic $ 0.98 $ 1.24 $ 1.22 $ 1.18 $ 4.62 Earnings per common share - diluted $ 0.96 $ 1.22 $ 1.19 $ 1.15 $ 4.52 Dividends paid per common share $ 0.46 $ 0.46 $ 0.46 $ 0.46 $ 1.84 Dividend payout ratio 47.44% 37.26% 38.22% 39.11% 40.13 Return on average assets 1.19% 1.53% 1.54% 1.55% 1.45 Return on average shareholders' equity 11.28% 14.69% 14.79% 15.10% 13.92 Net interest margin (Fully taxable- equivalent) 4.42% 4.42% 4.46% 4.49% 4.45 Full-time equivalent employees 2,914 2,878 2,903 2,800 CITY NATIONAL CORPORATION CONSOLIDATED QUARTERLY STATEMENTS OF INCOME (unaudited) (Dollars in thousands except per share data) ----------------------- 2006 ----------------------------------------------------- Fourth Third Second First Full Quarter Quarter Quarter Quarter Year --------- --------- --------- --------- --------- Interest Income $213,524 $208,395 $206,228 $198,168 $826,315 Interest Expense 62,788 59,625 52,206 45,786 220,405 --------- --------- --------- --------- --------- Net Interest Income 150,736 148,770 154,022 152,382 605,910 Provision for Credit Losses - -- (610) - (610) Noninterest Income Trust and investment fees 30,777 30,002 24,909 21,774 107,462 Brokerage and mutual fund fees 13,309 13,096 12,269 11,684 50,358 Cash management and deposit transaction fees 7,909 7,967 7,691 8,064 31,631 International services 6,486 6,829 6,870 5,989 26,174 Bank-owned life insurance 700 685 677 934 2,996 Other service charges and fees 6,693 6,218 6,843 5,745 25,499 Gain on sale of other assets 2,482 268 - -- 2,750 Gain (loss) on sale of securities (4,130) (362) (716) 708 (4,500) --------- --------- --------- --------- --------- Total noninterest income 64,226 64,703 58,543 54,898 242,370 Noninterest Expense Salaries and employee benefits 74,499 75,318 73,718 71,616 295,151 Net occupancy of premises 11,562 10,207 9,460 9,012 40,241 Legal and professional fees 9,327 8,416 8,481 8,774 34,998 Information services 5,836 5,636 5,259 5,099 21,830 Depreciation and amortization 4,908 4,832 4,662 4,660 19,062 Amortization of intangibles 1,456 (37) 1,974 1,891 5,284 Marketing and advertising 5,153 4,495 4,990 4,016 18,654 Office services 2,888 2,623 2,549 2,691 10,751 Equipment 1,043 514 623 632 2,812 Minority interest expense 1,709 1,808 1,213 1,228 5,958 Other 8,573 6,820 6,222 5,648 27,263 --------- --------- --------- --------- --------- Total noninterest expense 126,954 120,632 119,151 115,267 482,004 --------- --------- --------- --------- --------- Income Before Taxes 88,008 92,841 94,024 92,013 366,886 Applicable Income Taxes 29,452 33,847 35,283 34,781 133,363 --------- --------- --------- --------- --------- Net Income $58,556 $58,994 $58,741 $57,232 $233,523 ========= ========= ========= ========= ========= Other Data: Earnings per common share - basic $1.23 $1.23 $1.20 $1.16 $4.82 Earnings per common share - diluted $1.19 $1.20 $1.16 $1.12 $4.66 Dividends paid per common share $0.41 $0.41 $0.41 $0.41 $1.64 Dividend payout ratio 33.55% 33.64% 34.43% 35.65% 34.31% Return on average assets 1.58% 1.61% 1.59% 1.57% 1.59% Return on average shareholders' equity 15.77% 16.30% 16.20% 15.68% 15.99% Net interest margin (Fully taxable- equivalent) 4.51% 4.53% 4.65% 4.62% 4.58% Full-time equivalent employees 2,670 2,672 2,648 2,570 - CITY NATIONAL CORPORATION CONSOLIDATED PERIOD END BALANCE SHEET (unaudited) 2007 ----------------------------------------------------- Fourth Third Second First (In thousands) Quarter Quarter Quarter Quarter -------------- ----------- ----------- ----------- ----------- Assets Cash and due from banks $ 365,918 $ 462,151 $ 513,463 $ 494,231 Federal funds sold - -- 170,000 210,000 Due from banks - interest-bearing 88,151 95,047 139,539 77,214 Securities-avail- able-for-sale 2,462,655 2,563,983 2,797,366 2,902,385 Trading account securities 293,355 192,162 117,456 35,981 Loans and leases: Commercial 4,459,308 4,216,048 4,158,131 4,030,601 Commercial real estate mortgages 1,954,539 1,894,753 1,947,218 1,877,695 Residential mortgages 3,176,322 3,114,335 3,009,546 2,895,516 Real estate construction 1,429,761 1,391,034 1,309,322 1,263,059 Equity lines of credit 432,513 404,869 409,505 388,279 Installment 178,195 169,041 185,112 194,448 ----------- ----------- ----------- ----------- Total loans and leases 11,630,638 11,190,080 11,018,834 10,649,598 Allowance for loan and lease losses (168,523) (152,018) (157,849) (161,005) ----------- ----------- ----------- ----------- Net loans and leases 11,462,115 11,038,062 10,860,985 10,488,593 Premises and equipment, net 118,067 110,779 106,672 103,259 Goodwill and other in- tangibles 520,127 517,396 518,918 420,197 Other assets 578,902 567,817 571,597 532,093 ----------- ----------- ----------- ----------- Total assets $15,889,290 $15,547,397 $15,795,996 $15,263,953 =========== =========== =========== =========== Liabilities: Deposits: Noninterest- bearing $ 5,858,497 $ 5,538,107 $ 5,926,048 $ 5,690,413 Interest- bearing 5,964,008 6,642,407 7,204,357 6,915,968 ----------- ----------- ----------- ----------- Total deposits 11,822,505 12,180,514 13,130,405 12,606,381 Federal funds purchased and securities sold under repurchase agreements 1,544,411 664,970 269,938 310,738 Other short-term borrowed funds 100,000 326,041 72,818 50,667 Subordinated debt 273,559 270,066 266,962 270,174 Other long-term debt 233,465 225,598 219,282 224,079 Minority interest 31,676 29,148 29,029 28,285 Other liabilities 228,067 217,301 186,212 183,185 ----------- ----------- ----------- ----------- Total liabilities 14,233,683 13,913,638 14,174,646 13,673,509 Shareholders' Equity Common stock 50,824 50,813 50,825 50,803 Additional paid-in capital 420,168 421,754 419,277 421,990 Retained earnings 1,369,999 1,345,337 1,307,638 1,271,092 Accumulated other compre- hensive loss (9,349) (22,788) (50,709) (31,034) Treasury shares (176,035) (161,357) (105,681) (122,407) ----------- ----------- -------------------------- Total share- holders' equity 1,655,607 1,633,759 1,621,350 1,590,444 ----------- ----------- -------------------------- Total liabilities and share- holders' equity $15,889,290 $15,547,397 $15,795,996 $15,263,953 =========== =========== =========== =========== CITY NATIONAL CORPORATION CONSOLIDATED PERIOD END BALANCE SHEET (unaudited) 2006 --------------------------------------------------- Fourth Third Second First (In thousands) Quarter Quarter Quarter Quarter -------------- ------------ ----------- ------------ ------------ Assets Cash and due from banks $423,114 $457,396 $467,076 $457,156 Federal funds sold 127,000 3,300 1,900 - Due from banks - interest-bearing 60,940 65,323 50,416 48,890 Securities- available-for- sale 2,953,247 3,174,086 3,210,455 3,849,061 Trading account securities 147,907 116,870 123,418 57,353 Loans and leases: Commercial 3,831,212 3,568,082 3,496,656 3,668,872 Commercial real estate mortgages 1,681,476 1,943,142 1,998,925 1,750,139 Residential mortgages 2,869,775 2,830,761 2,769,340 2,700,966 Real estate construction 1,397,760 1,095,672 999,048 919,816 Equity lines of credit 404,657 384,830 364,312 339,348 Installment 201,125 197,871 193,474 188,262 ------------ ------------ ------------ ------------ Total loans and leases 10,386,005 10,020,358 9,821,755 9,567,403 Allowance for loan and lease losses (155,342) (159,063) (157,580) (156,482) ------------ ------------ ------------ ------------ Net loans and leases 10,230,663 9,861,295 9,664,175 9,410,921 Premises and equipment, net 94,745 88,582 84,802 84,884 Goodwill and other intangibles 287,561 298,471 298,004 283,642 Other assets 559,132 550,212 575,604 546,275 ------------ ------------ ------------ ------------ Total assets $14,884,309 $14,615,535 $14,475,850 $14,738,182 ============ ========================= ============ Liabilities: Deposits: Noninterest- bearing $6,002,068 $5,639,811 $5,880,630 $5,945,485 Interest-bearing 6,170,748 6,252,206 6,098,200 5,963,044 ------------ ------------ ------------ ------------ Total deposits 12,172,816 11,892,017 11,978,830 11,908,529 Federal funds purchased and securities sold under repurchase agreements 422,903 506,962 234,995 526,920 Other short-term borrowed funds 97,525 72,426 143,724 151,522 Subordinated debt 269,848 270,522 266,675 269,785 Other long-term debt 217,569 217,323 209,864 213,819 Minority interest 28,425 28,578 27,985 25,225 Other liabilities 184,380 179,746 215,965 173,056 ------------ ------------ ------------ ------------ Total liabilities 13,393,466 13,167,574 13,078,038 13,268,856 Shareholders' Equity Common stock 50,719 50,729 50,735 50,693 Additional paid- in capital 412,249 404,163 402,476 399,975 Retained earnings 1,264,697 1,225,784 1,186,637 1,148,116 Accumulated other comprehensive loss (41,459) (46,484) (87,009) (73,313) Treasury shares (195,363) (186,231) (155,027) (56,145) ------------ ------------ ------------ ------------ Total shareholders' equity 1,490,843 1,447,961 1,397,812 1,469,326 ------------ ------------ ------------ ------------ Total liabilities and shareholders' equity $14,884,309 $14,615,535 $14,475,850 $14,738,182 ============ ============ ============ ============ CITY NATIONAL CORPORATION CREDIT LOSS EXPERIENCE (unaudited) (Dollars in thousands) ---------------------- 2007 --------------------------------------------------- Fourth Third Second First Year To Quarter Quarter Quarter Quarter Date -------- -------- -------- -------- -------- Allowance for Loan and Lease Losses Balance at beginning of period $152,018 $157,849 $161,005 $155,342 $155,342 Allowance of acquired institution - -- - 4,513 4,513 Net (charge-offs) /recoveries: Commercial (900) (632) (2,218) 1,247 (2,503) Commercial real estate mortgages 9 (295) - -- (286) Residential mortgages - -- - -- - Real estate construction (2,872) (2,654) 17 18 (5,491) Equity lines of credit (50) - -- - (50) Installment (50) (10) (61) (26) (147) -------- -------- -------- -------- -------- Total net (charge-offs) /recoveries (3,863) (3,591) (2,262) 1,239 (8,477) Provision for credit losses 20,000 - -- - 20,000 Transfers from (to) reserve for off-balance sheet credit commitments 368 (2,240) (894) (89) (2,855) -------- -------- -------- -------- -------- Balance at end of period $168,523 $152,018 $157,849 $161,005 $168,523 ======== ======== ======== ======== ======== Net (Charge-Offs)/ Recoveries to Average Total Loans and Leases: (annualized) Commercial (0.08)% (0.06)% (0.21)% 0.12% (0.06)% Commercial real estate mortgages 0.00% (0.06)% 0.00% 0.00% (0.02)% Residential mortgage 0.00% 0.00% 0.00% 0.00% 0.00% Real estate construction (0.81)% (0.78)% 0.01% 0.01% (0.43)% Equity lines of credit (0.05)% 0.00% 0.00% 0.00% (0.01)% Installment (0.12)% (0.02)% (0.13)% (0.06)% (0.08)% Total loans and leases (0.13)% (0.13)% (0.08)% 0.05% (0.08)% Reserve for Off- Balance Sheet Credit Commitments Balance at beginning of period $ 20,072 $ 17,832 $ 17,005 $ 16,424 $ 16,424 Recovery of prior charge-off - -- (67) - (67) Reserve of acquired insti- tution - -- - 492 492 Transfers to (from) allowance (368) 2,240 894 89 2,855 -------- -------- -------- -------- -------- Balance at end of period $ 19,704 $ 20,072 $ 17,832 $ 17,005 $ 19,704 ======== ======== ======== ======== ======== CITY NATIONAL CORPORATION CREDIT LOSS EXPERIENCE (unaudited) (Dollars in thousands) ---------------------- 2006 --------------------------------------------------- Fourth Third Second First Full Quarter Quarter Quarter Quarter Year -------- -------- -------- -------- -------- Allowance for Loan and Lease Losses Balance at beginning of period $159,063 $157,580 $156,482 $153,983 $153,983 Allowance of acquired institution - -- - -- - Net (charge-offs)/ recoveries: Commercial (2,665) 1,912 1,122 1,792 2,161 Commercial real estate mortgages 356 - 11 844 1,211 Residential mortgages - -- - -- - Real estate construction (666) 18 17 16 (615) Equity lines of credit - (11) - -- (11) Installment 26 10 11 4 51 -------- -------- -------- -------- -------- Total net (charge-offs)/ recoveries (2,949) 1,929 1,161 2,656 2,797 Provision for credit losses - -- (610) - (610) Transfers from (to) reserve for off- balance sheet credit commitments (772) (446) 547 (157) (828) -------- -------- -------- -------- -------- Balance at end of period $155,342 $159,063 $157,580 $156,482 $155,342 ======== ======== ======== ======== ======== Net (Charge-Offs)/ Recoveries to Average Total Loans and Leases: (annualized) Commercial (0.28)% 0.21% 0.12% 0.19% 0.06% Commercial real estate mortgages 0.07% 0.00% 0.00% 0.20% 0.07% Residential mortgage 0.00% 0.00% 0.00% 0.00% 0.00% Real estate construction (0.24)% 0.01% 0.01% 0.01% (0.06)% Equity lines of credit 0.00% (0.01)% 0.00% 0.00% (0.00)% Installment 0.05% 0.02% 0.02% 0.01% 0.03% Total loans and leases (0.11)% 0.08% 0.05% 0.11% 0.03% Reserve for Off- Balance Sheet Credit Commitments Balance at beginning of period $ 15,652 $ 15,206 $ 15,753 $ 15,596 $ 15,596 Recovery of prior charge-off - -- - -- - Reserve of acquired insti- tution - -- - -- - Transfers to (from) allowance 772 446 (547) 157 828 -------- -------- -------- -------- -------- Balance at end of period $ 16,424 $ 15,652 $ 15,206 $ 15,753 $ 16,424 ======== ======== ======== ======== ======== CITY NATIONAL CORPORATION NONPERFORMING ASSETS (unaudited) 2007 --------------------------------------- Fourth Third Second First (Dollars in thousands) Quarter Quarter Quarter Quarter ----------------------------- --------- --------- --------- --------- Nonaccrual Loans Commercial $ 17,103 $ 7,673 $ 3,998 $ 7,024 Commercial real estate mortgages 1,621 1,970 4,732 4,783 Residential mortgages 387 394 378 - Real estate construction 55,632 15,513 12,566 11,199 Equity lines of credit 679 502 452 362 Installment 139 175 182 49 --------- --------- --------- --------- Total nonaccrual loans 75,561 26,227 22,308 23,417 Other Nonperforming Assets - -- - -- --------- --------- --------- --------- Total nonperforming assets $ 75,561 $ 26,227 $ 22,308 $ 23,417 ========= ========= ========= ========= Loans 90 Days or More Past Due on Accrual Status $ 1 $ - $ - $ 199 Allowance for loan and lease losses as a percentage of: Nonaccrual loans 223.03% 579.63% 707.58% 687.55% Total nonperforming assets 223.03% 579.63% 707.58% 687.55% Total loans and leases 1.45% 1.36% 1.43% 1.51% Nonaccrual loans as a percentage of total loans 0.65% 0.23% 0.20% 0.22% Nonperforming assets as a percentage of: Total loans and other nonperforming assets 0.65% 0.23% 0.20% 0.22% Total assets 0.48% 0.17% 0.14% 0.15% 2006 --------------------------------------- Fourth Third Second First (Dollars in thousands) Quarter Quarter Quarter Quarter ----------------------------- --------- --------- --------- --------- Nonaccrual Loans Commercial $ 2,977 $ 10,416 $ 6,691 $ 5,642 Commercial real estate mortgages 4,849 8,094 3,644 923 Residential mortgages - -- - -- Real estate construction 12,678 - 4,617 7,492 Equity lines of credit - -- - -- Installment 379 269 49 498 --------- --------- --------- --------- Total nonaccrual loans 20,883 18,779 15,001 14,555 Other Nonperforming Assets - -- - -- --------- --------- --------- --------- Total nonperforming assets $ 20,883 $ 18,779 $ 15,001 $ 14,555 ========= ========= ========= ========= Loans 90 Days or More Past Due on Accrual Status $ 337 $ 27 $ 18 $ - Allowance for loan and lease losses as a percentage of: Nonaccrual loans 743.88% 847.03% 1,050.47% 1,075.11% Total nonperforming assets 743.88% 847.03% 1,050.47% 1,075.11% Total loans and leases 1.50% 1.59% 1.60% 1.64% Nonaccrual loans as a percentage of total loans 0.20% 0.19% 0.15% 0.15% Nonperforming assets as a percentage of: Total loans and other nonperforming assets 0.20% 0.19% 0.15% 0.15% Total assets 0.14% 0.13% 0.10% 0.10% CITY NATIONAL CORPORATION AVERAGE BALANCES AND RATES (unaudited) (Dollars in millions) --------------------- 2007 -------------------------------------------- Fourth Quarter Third Quarter Second Quarter ------------- ------------- ------------- Average Average Average Balance Rate Balance Rate Balance Rate ------- ---- ------- ---- ------- ---- Assets Interest-earning assets Loans and leases Commercial $ 4,391 7.02% $ 4,303 7.42% $ 4,275 7.37% Commercial real estate mortgages 1,925 7.01 1,897 7.31 1,932 7.36 Residential mortgages 3,155 5.61 3,063 5.59 2,975 5.49 Real estate construc- tion 1,405 8.07 1,344 8.61 1,234 8.88 Equity lines of credit 414 6.95 406 7.63 404 7.71 Installment 171 7.11 178 7.35 191 7.51 ------- ------- ------- Total loans and leases 11,461 6.75 11,191 7.04 11,011 7.05 Due from banks - interest-bearing 95 2.58 98 2.96 89 1.71 Federal funds sold and securities purchased under resale agreements 4 4.61 10 5.33 24 5.27 Securities available- for-sale 2,500 4.86 2,746 4.79 2,872 4.74 Trading account securities 94 4.62 84 5.23 72 5.23 Other interest-earning assets 69 6.08 69 6.15 60 6.36 ------- ------- ------- Total interest-earning assets 14,223 6.36 14,198 6.55 14,128 6.53 Allowance for loan and lease losses (151) (157) (162) Cash and due from banks 393 434 445 Other non-earning assets 1,124 1,120 1,041 ------- ------- ------- Total assets $15,589 $15,595 $15,452 ======= ======= ======= Liabilities and Shareholders' Equity Interest-bearing deposits Interest checking accounts $ 805 0.69% $ 778 0.68% $ 804 0.56% Money market accounts 3,726 2.99 3,748 3.16 3,721 3.10 Savings deposits 142 0.49 146 0.49 149 0.48 Time deposits - under $100,000 224 3.93 232 4.05 274 3.79 Time deposits - $100,000 and over 1,514 4.38 2,054 4.75 2,066 4.81 ------- ------- ------- Total interest-bearing deposits 6,411 3.01 6,958 3.32 7,014 3.28 Federal funds purchased and securities sold under repurchase agreements 908 4.50 672 4.99 486 5.11 Other borrowings 746 5.67 620 6.14 612 6.09 ------- ------- ------- Total interest-bearing liabilities 8,065 3.42 8,250 3.67 8,112 3.61 Noninterest-bearing deposits 5,603 5,484 5,556 Other liabilities 270 238 180 Shareholders' equity 1,651 1,623 1,604 ------- ------- ------- Total liabilities and shareholders' equity $15,589 $15,595 $15,452 ======= ======= ======= Net interest spread 2.94% 2.88% 2.92% ==== ==== ==== Net interest margin 4.42% 4.42% 4.46% ==== ==== ==== Average prime rate 7.52% 8.18% 8.25% ==== ==== ==== ---------------------------------- First Quarter Year to Date --------------- --------------- Average Average Balance Rate Balance Rate ------- ---- ------- ---- Assets Interest-earning assets Loans and leases Commercial $ 4,146 7.25% $ 4,280 7.26% Commercial real estate mortgages 1,758 7.39 1,879 7.26 Residential mortgages 2,885 5.40 3,020 5.52 Real estate construction 1,181 8.73 1,292 8.55 Equity lines of credit 394 7.86 404 7.53 Installment 191 7.64 183 7.41 ------- ------- Total loans and leases 10,555 6.99 11,058 6.95 Due from banks - interest- bearing 73 2.00 89 2.35 Federal funds sold and securities purchased under resale agreements 14 5.36 13 5.25 Securities available-for-sale 2,916 4.72 2,757 4.78 Trading account securities 54 6.09 76 5.20 Other interest-earning assets 48 5.96 61 6.14 ------- ------- Total interest-earning assets 13,660 6.48 14,054 6.48 Allowance for loan and lease losses (157) (157) Cash and due from banks 422 424 Other non-earning assets 911 1,050 ------- ------- Total assets $14,836 $15,371 ======= ======= Liabilities and Shareholders' Equity Interest-bearing deposits Interest checking accounts $ 749 0.48% $ 784 0.60% Money market accounts 3,419 2.98 3,655 3.06 Savings deposits 155 0.47 148 0.48 Time deposits - under $100,000 232 4.10 240 3.96 Time deposits - $100,000 and over 1,872 4.72 1,876 4.68 ------- ------- Total interest-bearing deposits 6,427 3.18 6,703 3.20 Federal funds purchased and securities sold under repurchase agreements 582 5.27 663 4.90 Other borrowings 599 6.15 645 6.00 ------- ------- Total interest-bearing liabilities 7,608 3.57 8,011 3.57 Noninterest-bearing deposits 5,489 5,533 Other liabilities 220 228 Shareholders' equity 1,519 1,599 ------- ------- Total liabilities and shareholders' equity $14,836 $15,371 ======= ======= Net interest spread 2.91% 2.91% ==== ==== Net interest margin 4.49% 4.45% ==== ==== Average prime rate 8.25% 8.05% ==== ==== CITY NATIONAL CORPORATION AVERAGE BALANCES AND RATES (unaudited) 2006 ---------------------------------------------------- Fourth Quarter Third Quarter Second Quarter ---------------- ---------------- ---------------- (Dollars in Average Average Average Average Average Average millions) Balance Rate Balance Rate Balance Rate ----------- -------- ------- -------- ------- -------- ------- Assets Interest- earning assets Loans and leases Commercial $ 3,718 7.06% $ 3,637 7.01% $ 3,868 6.83% Commercial real estate mortgages 1,962 7.56 1,935 7.45 1,794 7.58 Residential mortgages 2,852 5.40 2,801 5.38 2,737 5.31 Real estate construction 1,121 8.89 1,071 8.95 957 8.82 Equity lines of credit 397 7.86 375 7.91 352 7.63 Installment 195 7.56 194 7.58 195 7.72 -------- -------- -------- Total loans and leases 10,245 6.92 10,013 6.88 9,903 6.79 Due from banks - interest- bearing 68 1.69 61 1.57 46 1.48 Federal funds sold and securities purchased under resale agreements 54 5.28 3 7.13 51 4.77 Securities available-for- sale 3,121 4.65 3,189 4.65 3,528 4.56 Trading account securities 49 5.32 54 5.22 52 6.61 Other interest- earning assets 47 5.64 46 5.45 46 5.40 -------- -------- -------- Total interest- earning assets 13,584 6.35 13,366 6.30 13,626 6.19 Allowance for loan and lease losses (159) (158) (157) Cash and due from banks 407 428 443 Other non- earning assets 880 909 870 -------- -------- -------- Total assets $ 14,712 $ 14,545 $ 14,782 ======== ======== ======== Liabilities and Shareholders' Equity Interest-bearing deposits Interest checking accounts $ 762 0.43% $ 706 0.36% $ 757 0.27% Money market accounts 3,252 2.75 3,224 2.57 3,352 2.13 Savings deposits 160 0.48 163 0.41 174 0.37 Time deposits - under $ 100,000 197 4.07 184 3.73 176 3.16 Time deposits - $100,000 and over 1,969 4.65 1,999 4.56 1,652 4.05 -------- -------- -------- Total interest- bearing deposits 6,340 3.04 6,276 2.93 6,111 2.40 Federal funds purchased and securities sold under repurchase agreements 416 5.24 401 5.26 546 4.93 Other borrowings 554 6.19 558 5.63 652 5.51 -------- -------- -------- Total interest- bearing liabilities 7,310 3.41 7,235 3.27 7,309 2.86 Noninterest- bearing deposits 5,711 5,629 5,820 Other liabilities 218 245 199 Shareholders' equity 1,473 1,436 1,454 -------- -------- -------- Total liabilities and shareholders' equity $ 14,712 $ 14,545 $ 14,782 ======== ======== ======== Net interest spread 2.94% 3.03% 3.33% ==== ==== ==== Net interest margin 4.51% 4.53% 4.65% ==== ==== ==== Average prime rate 8.25% 8.25% 7.90% ==== ==== ==== 2006 ----------------------------------- First Quarter Year to Date ---------------- ---------------- Average Average Average Average(Dollars in millions) Balance Rate Balance Rate -------------------- -------- ------- -------- ------- Assets Interest-earning assets Loans and leases Commercial $ 3,789 6.62% $ 3,753 6.88% Commercial real estate mortgages 1,743 7.35 1,859 7.49 Residential mortgages 2,664 5.27 2,763 5.34 Real estate construction 898 8.36 1,013 8.77 Equity lines of credit 334 7.17 365 7.66 Installment 197 7.41 195 7.57 -------- -------- Total loans and leases 9,625 6.60 9,948 6.80 Due from banks - interest- bearing 44 0.87 55 1.45 Federal funds sold and securities purchased under resale agreements 13 4.32 30 5.01 Securities available-for-sale 3,925 4.48 3,438 4.58 Trading account securities 44 5.26 50 5.61 Other interest-earning assets 47 5.23 47 5.43 -------- -------- Total interest-earning assets 13,698 5.98 13,568 6.20 Allowance for loan and lease losses (155) (157) Cash and due from banks 439 429 Other non-earning assets 844 876 -------- -------- Total assets $ 14,826 $ 14,716 ======== ======== Liabilities and Shareholders' Equity Interest-bearing deposits Interest checking accounts $ 808 0.23% $ 758 0.32% Money market accounts 3,388 1.81 3,304 2.31 Savings deposits 179 0.37 169 0.41 Time deposits - under $100,000 180 2.77 184 3.45 Time deposits - $100,000 and over 1,254 3.40 1,721 4.26 -------- -------- Total interest-bearing deposits 5,809 1.92 6,136 2.59 Federal funds purchased and securities sold under repurchase agreements 809 4.48 542 4.89 Other borrowings 749 5.09 627 5.57 -------- -------- Total interest-bearing liabilities 7,367 2.52 7,305 3.02 Noninterest-bearing deposits 5,779 5,734 Other liabilities 200 216 Shareholders' equity 1,480 1,461 -------- -------- Total liabilities and shareholders' equity $ 14,826 $ 14,716 ======== ======== Net interest spread 3.46% 3.18% ==== ==== Net interest margin 4.62% 4.58% ==== ==== Average prime rate 7.43% 7.96% ==== ==== CITY NATIONAL CORPORATION CAPITAL AND CREDIT RATING DATA (unaudited) 2007 ------------------------------------------------ Fourth Third Second First Year To Quarter Quarter Quarter Quarter Date -------- -------- --------- -------- -------- Per Common Share: ----------------- Shares Outstanding (in thousands): Average - Basic 47,947 48,345 48,675 47,968 48,234 Average - Diluted 48,869 49,408 49,838 49,087 49,290 Period-End 47,830 48,064 48,831 48,602 Book Value $ 34.61 $ 33.99 $ 33.20 $ 32.72 Price: High $ 72.97 $ 78.00 $ 78.39 $ 75.39 $ 78.39 Low 59.10 69.00 72.30 68.00 59.10 Period-end 59.55 69.51 76.09 73.60 Capital Ratios (Dollars in millions): -------------- Risk-based capital Risk-adjusted assets $ 12,886 $ 12,234 $ 12,067 $ 11,618 Tier I capital $ 1,199 $ 1,171 $ 1,185 $ 1,234 Percentage of risk adjusted assets 9.31 9.57% 9.82% 10.62% Total capital $ 1,453 $ 1,470 $ 1,481 $ 1,524 Percentage of risk adjusted assets 11.27 12.01% 12.28% 13.12% Tier I leverage ratio 7.97% 7.80% 7.97% 8.59% Period-end shareholders' equity to total period-end assets 10.42 10.51% 10.26% 10.42% Period-end tangible shareholders' equity to total period-end tangible assets 7.39% 7.43% 7.22% 7.88% Average shareholders' equity to total average assets 10.59 10.41% 10.38% 10.24% 10.41% Average tangible shareholders' equity to total average tangible assets 7.52% 7.33% 7.67% 8.18% 7.67% 2006 --------------------------------------------------------------------- Fourth Third Second First Full Quarter Quarter Quarter Quarter Year --------------------------------------------------------------------- Per Common Share: ----------------- Shares Outstanding (in thousands): Average - Basic 47,573 47,919 48,957 49,484 48,477 Average - Diluted 49,012 49,318 50,654 51,309 50,063 Period-End 47,492 47,639 48,115 49,535 Book Value $ 31.39 $ 30.39 $ 29.05 $ 29.66 Price: High $ 71.29 $ 68.41 $ 78.25 $ 78.25 $ 78.25 Low 65.34 63.69 60.02 71.95 60.02 Period-end 71.20 67.06 65.09 76.79 Capital Ratios (Dollars in millions): -------------- Risk-based capital Risk-adjusted assets $ 11,411 $ 10,999 $ 10,811 $ 10,473 Tier I capital $ 1,256 $ 1,219 $ 1,211 $ 1,284 Percentage of risk adjusted assets 11.09% 11.09% 11.20% 12.26% Total capital $ 1,544 $ 1,554 $ 1,542 $ 1,614 Percentage of risk adjusted assets 13.60% 14.12% 14.26% 15.41% Tier I leverage ratio 8.81% 8.58% 8.38% 8.85% Period-end shareholders' equity to total period-end assets 10.02% 9.91% 9.66% 9.97% Period-end tangible shareholders' equity to total period-end tangible assets 8.24% 8.03% 7.76% 8.20% Average shareholders' equity to total average assets 10.01% 9.87% 9.84% 9.99% 9.93% Average tangible shareholders' equity to total average tangible assets 8.15% 7.99% 8.04% 8.22% 8.10% Senior Debt Credit Ratings -------------------------- For The Period Ended December 31, 2007 Standard & Moody's Fitch Poor's DBRS --------- --------- --------- --------- City National Bank Aa3 A- A A (high) City National Corporation A1 A- A- A

CONTACT: City National Corporation
Financial/Investors
Christopher J. Carey
310.888.6777
Chris.Carey@cnb.com
Media
Cary Walker
213.673.7615
Cary.Walker@cnb.com

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