Revenue Up 7 Percent From First Quarter of 2007

Loans and Noninterest Income Grow At Double-Digit Rates

LOS ANGELES, April 17, 2008 (PRIME NEWSWIRE) - City National Corporation (NYSE:CYN), the parent company of wholly owned City National Bank, today reported first-quarter 2008 net income of $44.0 million, or $0.91 per share. In the first quarter of 2007, the company earned $1.15 per share on net income of $56.5 million.

FIRST-QUARTER 2008 HIGHLIGHTS

* City National's first-quarter revenue grew to $228 million, up 7 percent from $213 million in the first quarter of 2007.

* Fully taxable-equivalent net interest income amounted to $152.3 million, up 1 percent from the first quarter of 2007. The company's net interest margin averaged 4.26 percent in the first quarter of 2008, compared to 4.42 percent in the fourth quarter of 2007.

* Average deposit balances were $11.5 billion, down 3 percent from $11.9 billion in the first quarter of 2007. Average core deposits grew 1 percent over the year-earlier period.

* Average loans reached $11.7 billion, up 11 percent from the same period last year, due primarily to organic growth.

* Noninterest income totaled $79.8 million, up 21 percent from the first quarter of 2007. Noninterest income accounts for 35 percent of City National's total revenue.

* Assets under direct management amounted to $35.9 billion, a 33 percent increase from the first quarter of 2007. Assets under management or administration grew 15 percent to $55.9 billion.

* City National's first-quarter return on average equity was 10.46 percent, and its return on average assets was 1.13 percent.

* First-quarter 2008 net income reflects a $17 million provision for credit losses. (The company made no provision in the first quarter of 2007.) Net charge-offs in the first quarter of this year totaled $12.1 million, or 42 basis points of total loans. The company's allowance for loan and lease losses amounted to $168.3 million, or 1.43 percent of total loans.

* The company remained well capitalized. Its period-end ratio of equity-to-total-assets at March 31, 2008 was 10.56 percent, compared to 10.42 percent at both March 31 and December 31 of last year.

"City National's first-quarter earnings in this economy were reduced by the sharp drop in interest rates and additions to our credit reserves, due primarily to the for-sale housing market," said President and Chief Executive Officer Russell Goldsmith. "Nonetheless, the quarter was quite profitable and we remain a well-capitalized, growing company with a strong balance sheet, an exceptional deposit base and solid credit reserves.

"Not only does City National have no subprime mortgages or CDOs, or SIVs on its balance sheet, looking forward we have no auto loans, consumer credit card or home equity loans to be concerned about. Our company is well-positioned not only to weather the current economic challenges, but also to take advantage of prudent growth opportunities as competitive and economic conditions improve."

 For the three For the three Dollars in months ended months millions, March 31, ended except --------------------- % Dec. 31, % per share 2008 2007 Change 2007 Change -------------- ---------- ---------- ---------- ---------- ---------- Earnings Per Share $ 0.91 $ 1.15 (21) $ 0.96 (5) Net Income 44.0 56.5 (22) 46.9 (6) Average Assets 15,723.5 14,836.3 6 15,588.6 1 Return on Average Assets 1.13% 1.55% (27) 1.19% (5) Return on Average Equity 10.46 15.10 (31) 11.28 (7)

ASSETS

Total assets at March 31, 2008 were $15.9 billion, up 4 percent from the first quarter of 2007.

REVENUE

Revenue grew to $228.0 million, up 7 percent from the first quarter of 2007, due principally to organic growth as well as the company's May 1, 2007 acquisition of Convergent Wealth Advisors.

NET INTEREST INCOME

Fully taxable-equivalent net interest income was $152.3 million in the first quarter, up $1.0 million from the same period last year.

First-quarter average loan balances reached $11.7 billion, up 11 percent from the first quarter of 2007 and 2 percent from the fourth quarter of last year. Commercial loans increased 1 percent from the fourth quarter, while commercial real estate and construction loans together were up 3 percent. Average single-family residential mortgage lending to City National's private banking clients rose 1 percent.

Average securities for the first quarter of 2008 totaled $2.5 billion, down 15 percent from the same period last year. The average duration of total available-for-sale securities at March 31, 2008 was 3.5 years, compared with 3.4 years at the end of the first quarter of 2007.

At March 31, 2008, City National's prime lending rate was 5.25 percent, down 200 basis points from December 31, 2007.

 For the For the three three months ended months March 31, ended --------------------- % Dec. 31, % Dollars in millions 2008 2007 Change 2007 Change -------------------- --------- --------- ------ --------- ------ Average Loans $11,689.4 $10,554.9 11 $11,461.3 2 Average Total Securities 2,524.3 2,970.3 (15) 2,593.5 (3) Average Earning Assets 14,371.3 13,659.5 5 14,222.5 1 Average Deposits 11,521.1 11,916.3 (3) 12,013.8 (4) Average Core Deposits 10,192.6 10,044.8 1 10,499.2 (3) Fully Taxable- Equivalent Net Interest Income 152.3 151.3 1 158.5 (4) Net Interest Margin 4.26% 4.49% (5) 4.42% (4)

City National's net interest margin in the first quarter of 2008 averaged 4.26 percent, compared with 4.42 percent in the fourth quarter of last year. This decline was attributable primarily to short-term interest rate reductions, average loan growth and lower average demand deposits.

First quarter average deposits totaled $11.5 billion, down 3 percent from the same period of 2007 due to a runoff of time deposits and 4 percent from the fourth quarter due to seasonal variations. Average core deposits grew 1 percent over the first quarter of last year. Average noninterest-bearing deposits fell 2 percent from the first quarter of 2007 and 4 percent from the fourth quarter.

Even with the nationwide slowdown in housing sales and refinancings, title and escrow deposit balances averaged $1.0 billion, compared to $1.2 billion in the first quarter of 2007 and $1.1 billion in the fourth quarter of last year.

NONINTEREST INCOME

Noninterest income reached $79.8 million in the first quarter of 2008, a 21 percent increase from the previous year, due to fee revenue generated by wealth management, international banking and cash management. Excluding City National's acquisition of Convergent Wealth Advisors, noninterest income grew 8 percent.

At March 31, 2008, noninterest income accounted for 35 percent of City National's total revenue, up from 31 percent at March 31, 2007.

Wealth Management

City National's assets under management grew 33 percent to $35.9 billion in the first quarter of 2008, due primarily to the acquisition of Convergent Wealth Advisors and the strong performance of City National Asset Management (CNAM), the company's internal wealth management arm. As a result, trust and investment fees increased 20 percent over the first quarter of 2007. Brokerage and mutual fund fees grew 26 percent.

 At or for the At or for the three months ended three months March 31, ended Dollars --------------------- % Dec. 31, % in millions 2008 2007 Change 2007 Change -------------- ---------- ---------- ---------- ---------- ---------- Trust and Investment Fee Revenue $ 36.3 $ 30.3 20 $ 38.2 (5) Brokerage and Mutual Fund Fees 17.4 13.8 26 17.0 2 Assets Under Management (1) 35,884.8 27,074.4 33 37,268.5 (4) Assets Under Management or Administration (1) 55,854.7 48,432.6 15 58,506.3 (5) (1) Excludes $10.1 billion, $9.3 billion, and $12.4 billion of assets under management for an asset manager in which City National held a minority ownership interest as of March 31, 2008, March 31, 2007, and December 31, 2007, respectively.

Other Noninterest Income

Fee income from foreign exchange services and letters of credit grew 19 percent from the first quarter of 2007. Income from cash management and deposit transaction fees rose 31 percent from the same period of last year, due to the impact of declining interest rates on the value of compensating deposit balances and the sale of additional cash management services.

Other service charges and fees were $5.9 million in the first quarter of 2008, down slightly from the year-ago period.

First-quarter securities gains of $0.7 million relate principally to the partial redemption of VISA Class B Common Stock.

NONINTEREST EXPENSE

First-quarter noninterest expense amounted to $143.1 million, up 16 percent from the first quarter of 2007. Excluding minority interest expense and the acquisition of both Business Bank of Nevada and Convergent Wealth Advisors, noninterest expense grew 8 percent from the same period a year ago.

City National's first-quarter efficiency ratio was 62 percent, compared with 57 percent in the first quarter of 2007. The year-over-year increase was due primarily to pressure on the company's net interest margin and the continued expansion of City National's fee-based businesses, including the addition of Convergent Wealth Advisors.

CREDIT QUALITY

Nonaccrual loans of $113.6 million and other real estate owned (OREO) assets of $3.8 million at March 31, 2008 totaled $117.4 million, or 1 percent of total loans and other nonperforming assets, compared with $75.6 million, or 65 basis points, last quarter and $23.4 million, or 22 basis points, at the same period last year.

Net loan charge-offs for the quarter were $12.1 million, compared with net charge-offs of $3.9 million last quarter and net recoveries of $1.2 million in the first quarter of 2007. The increase in nonaccrual loans and net charge-offs occurred primarily in the residential homebuilder portfolio. Over 80 percent of first-quarter charge-offs and loans on nonaccrual are related to residential construction projects.

The national housing market is under significant duress. New home sales recently fell to 13-year lows, and the S&P Home Price Index declined further than at any time since its inception in 1987.

City National's secured and unsecured homebuilder loans amount to $583 million, or 5 percent of the company's $11.8 billion loan portfolio at March 31, 2008. These loans generally have a guarantor or other credit enhancement support. The bank is actively managing each homebuilder loan to ensure that appropriate steps are taken to mitigate risks and loss exposure.

Excluding loans to homebuilders, City National's construction and commercial real estate portfolio continues to perform satisfactorily. While commercial real estate property values are likely to soften as a result of the slowing economy and reduced liquidity, this portfolio is diverse in terms of geography and product type, and it consists primarily of recourse loans to well-established real estate developers in resilient markets. These developers are clients with whom the bank has strong long-term relationships.

City National's residential mortgage loans and home-equity loans continue to perform well. Their average loan-to-value ratios at origination are 50 percent and 54 percent, respectively. None of the loans have been originated through brokers or third-parties. City National has not originated or purchased subprime or option adjustable rate mortgages.

In the first quarter of 2008, City National recorded a $17 million provision for credit 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 growth in the portfolio.

At March 31, 2008, the allowance for loan and lease losses was $168.3 million, or 1.43 percent of total loans. The bank maintains an additional $24.9 million in reserves for off-balance sheet credit commitments.

INCOME TAXES

The company's effective tax rate for the first quarter of 2008 was 35.2 percent, compared to 36.8 percent in the year-ago period. The lower tax rate for the first quarter of this year is attributable to a one-time tax benefit related to refunds for research and development credits claimed. The effective rate was unchanged from the fourth quarter of last year.

2008 OUTLOOK

The U.S. economy continued to worsen and interest rates declined sharply in the first quarter of this year. The economy is now stagnant and may even be in a mild recession, which affects all financial institutions, including City National.

Management now expects to record a somewhat higher provision for credit losses in 2008 than previously anticipated, due to the continuing and historic decline of conditions in the residential construction business, which have raised the level of nonperforming loans in that sector. Management also expects the recent sharp decline in short-term interest rates to place additional pressure on net interest income. In addition, declining values in the equity markets have lowered the company's expectations for wealth management fee income.

The company has revised its 2008 earnings forecast and, based upon its current assessment of economic conditions, now expects net income per share to be 17 percent to 22 percent lower this year than it was in 2007.

City National's credit reserves and capital position are strong, and the company's outlook for continuing profitability assumes that they will be even stronger by year-end. While expenses for 2008 are expected to come in lower than initially anticipated, the company also continues to invest in a number of longer-term growth initiatives.

CAPITAL LEVELS

City National remains well capitalized. Total risk-based capital and Tier 1 risk-based capital ratios at March 31, 2008 were 11.46 percent and 9.51 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 March 31, 2008 was 8.06 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 December 31, 2007 were 11.27 percent, 9.31 percent and 7.97 percent, respectively.

The period-end ratio of shareholders' equity to total assets at March 31, 2008 was 10.56 percent, compared to 10.42 percent at both March 31, 2007 and December 31, 2007.

STOCK REPURCHASE

In the first quarter of 2008, City National repurchased 191,500 of its outstanding shares at an average cost per share of $54.24. The company expects to repurchase additional stock this year. It is currently authorized to buy back an additional 1,370,400 shares, subject to market conditions.

CONFERENCE CALL

City National Corporation will host a conference call this afternoon to discuss first-quarter 2008 financial results. The call will begin at 2:00 p.m. PDT. Analysts and investors may dial in and participate in the question/answer session. To access the call, please dial (800) 599-9829 and enter passcode 91988445. 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 eight majority-owned investment affiliates manage or administer nearly $56 billion in client assets, including $35.9 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) greater than expected volatility in equity, fixed income and other market valuations, (3) protracted labor disputes in the company's markets, (4) changes in interest rates and interest-rate relationships, (5) significant changes in banking laws or regulations, (6) increased competition in the company's markets and demand for the company's products and services, (7) higher-than-expected credit losses due to business losses, real estate cycles, capital market disruptions, changes in commercial real estate development and real estate prices or other economic factors, (8) 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, (9) changes in the financial performance and/or condition of the company's borrowers, (10) 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, (11) earthquake, fire or other natural disasters affecting the condition of real estate collateral, (12) the effect of acquisitions and integration of acquired businesses and de novo branching efforts, (13) the impact of changes in regulatory, judicial or legislative tax treatment of business transactions, (14) changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies, and (15) 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, 2007 and particularly Part I, Item 1A, titled "Risk Factors."

 CITY NATIONAL CORPORATION FINANCIAL HIGHLIGHTS (unaudited) Three Months ---------------------------- For The Period Ended March 31, 2008 2007 % Change ---------------------------------------- ---------------------------- Per Common Share Net Income Basic $ 0.92 $ 1.18 (22) Diluted 0.91 1.15 (21) Dividends 0.48 0.46 4 Book value 35.14 32.72 7 Results of Operations: (In millions) Interest income $ 208 $ 214 (3) Interest expense 60 67 (11) -------- -------- Net interest income 148 147 1 Net interest income (Fully taxable-equivalent) 152 151 1 Total revenue 228 213 7 Provision for credit losses 17 - NM Net income 44 57 (22) Financial Ratios: Performance Ratios: Return on average assets 1.13% 1.55% Return on average shareholders' equity 10.46 15.10 Period-end shareholders' equity to period-end assets 10.56 10.42 Net interest margin 4.26 4.49 Efficiency ratio 61.95 57.18 Capital Adequacy Ratios (Period-end): Tier 1 leverage 8.06 8.59 Tier 1 risk-based capital 9.51 10.62 Total risk-based capital 11.46 13.12 Asset Quality Ratios: Allowance for loan and lease losses to: Total loans and leases 1.43% 1.51% Nonaccrual loans 148.10 687.55 Nonperforming assets to: Total loans and leases and nonperforming assets 1.00 0.22 Total assets 0.74 0.15 Net (charge-offs)/recoveries to Average total loans and leases (annualized) (0.42)% 0.05% Average Balances: (In millions) Loans and leases $ 11,689 $ 10,555 11 Interest-earning assets 14,371 13,660 5 Assets 15,724 14,836 6 Core deposits 10,192 10,045 1 Deposits 11,521 11,916 (3) Interest-bearing liabilities 8,377 7,609 10 Shareholders' equity 1,691 1,519 11 Period-End Balances : (In millions) Loans and leases $ 11,755 $ 10,650 10 Assets 15,934 15,264 4 Core deposits 10,567 10,673 (1) Deposits 11,792 12,606 (6) Shareholders' equity 1,682 1,590 6 Wealth Management: (In millions)(1) Assets under management $ 35,885 $ 27,074 33 Assets under management or administration 55,855 48,433 15 (1) Excludes $10.1 billion and $9.3 billion of assets under management for an asset manager in which City National held a minority ownership interest as of March 31, 2008 and March 31, 2007, respectively. CITY NATIONAL CORPORATION CONSOLIDATED STATEMENTS OF INCOME (unaudited) Three Months Ended March 31, (Dollars in thousands ----------------------------- except per share data) 2008 2007 % Change----------------------------------------- ----------------------------- Interest income $207,752 $214,241 (3) Interest expense 59,587 66,972 (11) -------- -------- Net Interest Income 148,165 147,269 1 Provision for Credit Losses 17,000 - NM Noninterest Income Trust and investment fees 36,349 30,254 20 Brokerage and mutual fund fees 17,422 13,780 26 Cash management and deposit transaction fees 11,124 8,471 31 International services 7,687 6,463 19 Bank-owned life insurance 655 624 5 Other service charges and fees 5,869 6,133 (4) Gain (loss) on sale of other assets - (46) (100) Gain on sale of securities 710 269 164 -------- -------- Total noninterest income 79,816 65,948 21 Noninterest Expense Salaries and employee benefits 90,179 77,984 16 Net occupancy of premises 11,512 9,458 22 Legal and professional fees 8,560 8,721 (2) Information services 6,206 5,551 12 Depreciation and amortization 5,502 5,000 10 Amortization of intangibles 2,431 1,630 49 Marketing and advertising 5,595 3,998 40 Office services 2,986 2,747 9 Equipment 913 718 27 Minority interest expense 3,306 2,076 59 Other 5,957 5,906 1 -------- -------- Total noninterest expense 143,147 123,789 16 -------- -------- Income Before Taxes 67,834 89,428 (24) Applicable Income Taxes 23,847 32,883 (27) -------- -------- Net Income $ 43,987 $ 56,545 (22) ======== ======== Other Data: Earnings per common share - basic $ 0.92 $ 1.18 (22) Earnings per common share - diluted $ 0.91 $ 1.15 (21) Dividends paid per common share $ 0.48 $ 0.46 4 Dividend payout ratio 52.75% 39.11% 35 Return on average assets 1.13% 1.55% (27) Return on average shareholders' equity 10.46% 15.10% (31) Net interest margin (Fully taxable-equivalent) 4.26% 4.49% (5) Full-time equivalent employees 2,959 2,800 CITY NATIONAL CORPORATION CONSOLIDATED QUARTERLY STATEMENTS OF INCOME (unaudited) 2008 2007 --------------------- (Dollars in thousands First Fourth except per share data) Quarter Quarter ---------------------------------------------- --------- --------- Interest Income $ 207,752 $ 223,969 Interest Expense 59,587 69,596 --------- --------- Net Interest Income 148,165 154,373 Provision for Credit Losses 17,000 20,000 Noninterest Income Trust and investment fees 36,349 38,188 Brokerage and mutual fund fees 17,422 16,995 Cash management and deposit transaction fees 11,124 9,517 International services 7,687 8,379 Bank-owned life insurance 655 660 Other service charges and fees 5,869 8,575 Gain (loss) on sale of other assets - 12 Gain on sale of securities 710 7 --------- --------- Total noninterest income 79,816 82,333 Noninterest Expense Salaries and employee benefits 90,179 88,146 Net occupancy of premises 11,512 11,881 Legal and professional fees 8,560 10,050 Information services 6,206 6,039 Depreciation and amortization 5,502 5,535 Amortization of intangibles 2,431 1,749 Marketing and advertising 5,595 6,977 Office services 2,986 3,323 Equipment 913 867 Minority interest expense 3,306 2,244 Other 5,957 7,464 --------- --------- Total noninterest expense 143,147 144,275 --------- --------- Income Before Taxes 67,834 72,431 Applicable Income Taxes 23,847 25,509 --------- --------- Net Income $ 43,987 $ 46,922 ========= ========= Other Data: Earnings per common share - basic $ 0.92 $ 0.98 Earnings per common share - diluted $ 0.91 $ 0.96 Dividends paid per common share $ 0.48 $ 0.46 Dividend payout ratio 52.75% 47.44% Return on average assets 1.13% 1.19% Return on average shareholders' equity 10.46% 11.28% Net interest margin (Fully taxable-equivalent) 4.26% 4.42% Full-time equivalent employees 2,959 2,914 CITY NATIONAL CORPORATION CONSOLIDATED QUARTERLY STATEMENTS OF INCOME (unaudited) 2007 (Dollars in ------------------------------------------------ thousands except Fourth Third Second First Full per share data) Quarter Quarter Quarter Quarter Year ------------------ -------- -------- -------- -------- -------- 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 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 PERIOD END BALANCE SHEET (unaudited) 2008 ------------- First (In thousands) Quarter ------------------------------------------------------ ------------- Assets Cash and due from banks $ 514,878 Federal funds sold 1,000 Due from banks - interest-bearing 77,567 Securities-available-for-sale 2,389,459 Trading account securities 121,152 Loans and leases: Commercial 4,442,448 Commercial real estate mortgages 2,011,221 Residential mortgages 3,215,871 Real estate construction 1,462,641 Equity lines of credit 449,177 Installment 173,507 ------------- Total loans and leases 11,754,865 Allowance for loan and lease losses (168,278) ------------- Net loans and leases 11,586,587 Premises and equipment, net 119,243 Goodwill and other intangibles 514,811 Other assets 609,335 ------------- Total assets $ 15,934,032 ============= Liabilities: Deposits: Noninterest-bearing $ 5,680,845 Interest-bearing 6,111,524 ------------- Total deposits 11,792,369 Federal funds purchased and securities sold under repurchase agreements 1,118,478 Other short-term borrowed funds 720,992 Subordinated debt 162,813 Other long-term debt 243,439 Minority interest 32,199 Other liabilities 181,414 ------------- Total liabilities 14,251,704 Shareholders' Equity Common stock 50,982 Additional paid-in capital 419,044 Retained earnings 1,390,781 Accumulated other comprehensive loss (3,431) Treasury shares (175,048) ------------- Total shareholders' equity 1,682,328 ------------- Total liabilities and shareholders' equity $ 15,934,032 ============= 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- available-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 intangibles 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 comprehensive loss (9,349) (22,788) (50,709) (31,034) Treasury shares (176,035) (161,357) (105,681) (122,407) ----------- ----------- ----------- ----------- Total shareholders' equity 1,655,607 1,633,759 1,621,350 1,590,444 ----------- ----------- ----------- ----------- Total liabilities and shareholders' equity $15,889,290 $15,547,397 $15,795,996 $15,263,953 =========== =========== =========== =========== CITY NATIONAL CORPORATION CREDIT LOSS EXPERIENCE (unaudited) 2008 ----------------------- First Year To (Dollars in thousands) Quarter Date -------------------------------------------- --------- ---------- Allowance for Loan and Lease Losses Balance at beginning of period $ 168,523 $ 168,523 Allowance of acquired institution - -- Net (charge-offs)/recoveries: Commercial (1,573) (1,573) Commercial real estate mortgages 12 12 Residential mortgages 8 8 Real estate construction (10,217) (10,217) Equity lines of credit (239) (239) Installment (78) (78) --------- --------- Total net (charge-offs)/recoveries (12,087) (12,087) Provision for credit losses 17,000 17,000 Transfers from(to) reserve for off-balance sheet credit commitments (5,158) (5,158) --------- --------- Balance at end of period $ 168,278 $ 168,278 ========= ========= Net (Charge-Offs)/Recoveries to Average Total Loans and Leases: (annualized) Commercial (0.14)% (0.14)% Commercial real estate mortgages 0.00% 0.00% Residential mortgage 0.00% 0.00% Real estate construction (2.81)% (2.81)% Equity lines of credit (0.22)% (0.22)% Installment (0.18)% (0.18)% Total loans and leases (0.42)% (0.42)% Reserve for Off-Balance Sheet Credit Commitments Balance at beginning of period $ 19,704 $ 19,704 Recovery of prior charge-off - -- Reserve of acquired institution - -- Transfers (to)from allowance 5,158 5,158 --------- --------- Balance at end of period $ 24,862 $ 24,862 ========= ========= 2007 ---------------------------------------------------- (Dollars in Fourth Third Second First Full thousands) Quarter Quarter Quarter Quarter Year -------- -------- -------- -------- -------- 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 institution - -- - 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 NONPERFORMING ASSETS (unaudited) 2008 2007 -------- -------------------------------------- (Dollars in First Fourth Third Second First thousands) Quarter Quarter Quarter Quarter Quarter ------------------- -------- -------- -------- -------- -------- Nonaccrual Loans Commercial $ 16,293 $ 17,103 $ 7,673 $ 3,998 $ 7,024 Commercial real estate mortgages 1,841 1,621 1,970 4,732 4,783 Residential mortgages 706 387 394 378 - Real estate construction 93,296 55,632 15,513 12,566 11,199 Equity lines of credit 1,422 679 502 452 362 Installment 64 139 175 182 49 -------- -------- -------- -------- -------- Total nonaccrual loans 113,622 75,561 26,227 22,308 23,417 Other Nonperforming Assets 3,812 - -- - -- -------- -------- -------- -------- -------- Total nonperforming assets $117,434 $ 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 148.10% 223.03% 579.63% 707.58% 687.55% Total nonperforming assets 143.30% 223.03% 579.63% 707.58% 687.55% Total loans and leases 1.43% 1.45% 1.36% 1.43% 1.51% Nonaccrual loans as a percentage of total loans 0.97% 0.65% 0.23% 0.20% 0.22% Nonperforming assets as a percentage of: Total loans and other nonperforming assets 1.00% 0.65% 0.23% 0.20% 0.22% Total assets 0.74% 0.48% 0.17% 0.14% 0.15% CITY NATIONAL CORPORATION AVERAGE BALANCES AND RATES (unaudited) 2008 2007 ---------------------------------- First Quarter Fourth Quarter ---------------- ---------------- Average Average Average Average (Dollars in millions) Balance Rate Balance Rate ---------------------------------- ------- ------- ------- ------- Assets Interest-earning assets Loans and leases Commercial $ 4,456 6.28% $ 4,391 7.02% Commercial real estate mortgages 1,975 6.84 1,925 7.01 Residential mortgages 3,179 5.61 3,155 5.61 Real estate construction 1,464 6.47 1,405 8.07 Equity lines of credit 438 5.65 414 6.95 Installment 177 6.49 171 7.11 ------- ------- Total loans and leases 11,689 6.20 11,461 6.75 Due from banks - interest-bearing 78 2.69 95 3.05 Federal funds sold and securities purchased under resale agreements 8 3.33 4 4.61 Securities available-for-sale 2,446 4.81 2,500 4.84 Trading account securities 78 3.11 94 4.57 Other interest-earning assets 72 5.75 69 6.08 ------- ------- Total interest-earning assets 14,371 5.93 14,223 6.36 Allowance for loan and lease losses (165) (151) Cash and due from banks 379 393 Other non-earning assets 1,139 1,124 ------- ------- Total assets $15,724 $15,589 ======= ======= Liabilities and Shareholders' Equity Interest-bearing deposits Interest checking accounts $ 823 0.69% $ 805 0.69% Money market accounts 3,610 2.47 3,726 2.99 Savings deposits 135 0.36 142 0.49 Time deposits - under $100,000 220 3.54 224 3.93 Time deposits - $100,000 and over 1,329 3.99 1,514 4.38 ------- ------- Total interest-bearing deposits 6,117 2.55 6,411 3.01 Federal funds purchased and securities sold under repurchase agreements 1,141 3.39 908 4.50 Other borrowings 1,119 4.00 746 5.67 ------- ------- Total interest-bearing liabilities 8,377 2.86 8,065 3.42 Noninterest-bearing deposits 5,404 5,603 Other liabilities 252 270 Shareholders' equity 1,691 1,651 ------- ------- Total liabilities and shareholders' equity $15,724 $15,589 ======= ======= Net interest spread 3.07% 2.94% ==== ==== Net interest margin 4.26% 4.42% ==== ==== Average prime rate 6.22% 7.52% ==== ==== CITY NATIONAL CORPORATION AVERAGE BALANCES AND RATES (unaudited) 2007 ----------------------------------------------- Fourth Quarter Third Quarter Second Quarter --------------- --------------- --------------- Average Average Average Average Average Average (Dollars in millions) 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 construction 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 3.05 98 3.48 89 2.40 Federal funds sold and securities purchased under resale agreements 4 4.61 10 5.33 24 5.27 Securities available-for-sale 2,500 4.84 2,746 4.78 2,872 4.72 Trading account securities 94 4.57 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% ==== ==== ==== 2007 ---------------------------------- First Quarter Year to Date ---------------- ---------------- Average Average Average Average (Dollars in millions) 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 2.70 89 2.93 Federal funds sold and securities purchased under resale agreements 14 5.36 13 5.25 Securities available-for-sale 2,916 4.70 2,757 4.76 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 CAPITAL AND CREDIT RATING DATA (unaudited) 2008 2007 ---------------------------------------------------- First Fourth Third Second First Full Quarter Quarter Quarter Quarter Quarter Year ------- ------- ------- ------- ------- ------- Per Common Share: ----------------- Shares Outstanding (in thousands): Average - Basic 47,829 47,947 48,345 48,675 47,968 48,234 Average - Diluted 48,517 48,869 49,408 49,838 49,087 49,290 Period-End 47,871 47,830 48,064 48,831 48,602 Book Value $ 35.14 $ 34.61 $ 33.99 $ 33.20 $ 32.72 Closing price: High $ 60.00 $ 72.97 $ 78.00 $ 78.39 $ 75.39 $ 78.39 Low 48.57 59.10 69.00 72.30 68.00 59.10 Period-end 49.46 59.55 69.51 76.09 73.60 Capital Ratios (Dollars in millions): -------------- Risk-based capital Risk-adjusted assets $12,852 $12,886 $12,234 $12,067 $11,618 Tier I capital $ 1,222 $ 1,199 $ 1,171 $ 1,185 $ 1,234 Percentage of risk adjusted assets 9.51% 9.31% 9.57% 9.82% 10.62% Total capital $ 1,473 $ 1,453 $ 1,470 $ 1,481 $ 1,524 Percentage of risk adjusted assets 11.46% 11.27% 12.01% 12.28% 13.12% Tier I leverage ratio 8.06% 7.97% 7.80% 7.97% 8.59% Period-end shareholders' equity to total period-end assets 10.56% 10.42% 10.51% 10.26% 10.42% Period-end tangible shareholders' equity to total period-end tangible assets 7.57% 7.39% 7.43% 7.22% 7.88% Average shareholders' equity to total average assets 10.75% 10.59% 10.41% 10.38% 10.24% 10.41% Average tangible shareholders' equity to total average tangible assets 7.71% 7.52% 7.33% 7.67% 8.18% 7.67% Senior Debt Credit Ratings -------------------------- For The Period Ended March 31, 2008 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
Financial/Investors
Christopher J. Carey
310.888.6777
Chris.Carey@cnb.com
Media
Cary Walker
213.673.7615
Cary.Walker@cnb.com

Conference Call:
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