Business Editors

LOS ANGELES--(BUSINESS WIRE)--Oct. 18, 2006--City NationalCorporation (NYSE: CYN), the parent company of wholly owned CityNational Bank, today reported third-quarter 2006 net income of $59.0million, or $1.20 per share, compared with $59.8 million, or $1.17 pershare, for the third quarter of 2005. Third-quarter earnings per sharewere 3 percent higher than they were during the same period last year.

Year to date, City National has earned $175.0 million, or $3.47per share, on revenue of $633.4 million. In the first three quartersof 2005, the company earned net income of $173.0 million, or $3.39 pershare, on revenue of $607.7 million. Earnings per share grew 2 percentfrom the first three quarters of 2005.

THIRD-QUARTER HIGHLIGHTS

  • Third-quarter revenue grew to $213.5 million, a 2 percent increase from the same period last year.
  • Average loan balances increased 12 percent from the third quarter of 2005. Lending rose in all major categories, and average loan balances reached $10.0 billion for the first time.
  • Loan recoveries again exceeded charge-offs. Nonaccrual loans amounted to $18.8 million, up $0.2 million from the third quarter of 2005 and $3.8 million from the second quarter of this year.
  • Average deposits of $11.9 billion were stable - essentially unchanged from both the third quarter of 2005 and the second quarter of this year.
  • Noninterest income grew to $64.8 million, 21 percent higher than the third quarter of 2005 and 11 percent higher than the second quarter of this year, due primarily to the continuing growth of City National's wealth management and international services fee revenue.

"Double-digit growth in loans and wealth management revenue,excellent credit quality, fairly stable deposits and a very robust,although narrower, net interest margin, plus our strong capital base,all underscore the fundamental strength of City National's businessmodel," said President and Chief Executive Officer Russell Goldsmith."Notwithstanding the challenges of this interest-rate environment, ourcompany continues to add clients, broaden its product offerings,including new deposit products and our state-of-the-art remote depositcapture product, and make progress as California's Premier Private andBusiness Bank."

 For the three months For the ended three September 30, monthsDollars in millions, % ended % ---------------------except per share Change June 30, Change 2006 2005 2006----------------------- ---------- ---------- ------ --------- ------Earnings Per Share $1.20 $1.17 3 $1.16 3Net Income 59.0 59.8 (1) 58.7 0Average Assets 14,544.6 14,255.7 2 14,782.5 (2)Return on Average Assets 1.61 % 1.66 % (3) 1.59 % 1Return on Average Equity 16.30 16.74 (3) 16.20 1

ASSETS

Total assets at September 30, 2006 were $14.6 billion, up 1percent both from one year ago and from June 30 of this year. Theincreases reflect the growth of the company's loan portfolio.

REVENUE

Strong loan growth and increases in fee income drove revenuehigher. Third-quarter revenue (net interest income plus noninterestincome) totaled $213.5 million, up 2 percent from the third quarter of2005 and essentially unchanged from the second quarter of this year.

NET INTEREST INCOME

Fully taxable-equivalent net interest income was $152.0 million inthe third quarter of 2006, down 5 percent from $159.3 million for thesame period last year. Fully taxable-equivalent net interest income inthe second quarter of 2006 was $157.3 million.

Lending activity continued to grow in the third quarter. Averageloan balances reached $10.0 billion, up 12 percent from one year agoand 1 percent from the second quarter of 2006. Commercial loansincreased 13 percent from the third quarter of 2005, but fell3 percent from the second quarter of this year. Residential mortgagelending rose 11 percent from one year ago and 2 percent from thesecond quarter of 2006. Commercial real estate lending was up12 percent from the third quarter of 2005 and 6 percent from thesecond quarter of this year. Real estate construction loans increased5 percent from one year ago and 2 percent from the second quarter ofthis year.

City National's yield on earning assets reached 6.30 percent, upfrom 5.67 percent in the third quarter of 2005 and 6.19 percent in thesecond quarter of this year. At September 30, 2006, the bank's primerate was 8.25 percent, 150 basis points higher than it was at the sametime last year.

Average deposits totaled $11.9 billion, essentially unchanged fromboth the third quarter of 2005 and the second quarter of this year.Average noninterest-bearing deposits fell 8 percent from the thirdquarter of 2005 and 3 percent from the second quarter of this year.Third-quarter title and escrow balances averaged $1.25 billion, downslightly from the $1.30 billion average in the second quarter of 2006.Interest checking and money market account balances together were down9 percent from the third quarter of last year and 4 percent from thesecond quarter of this year. Time deposits, including certificates ofdeposit, were up 74 percent from the third quarter of 2005 and 19percent from the second quarter of this year. Total interest expensegrew 110 percent from the third quarter of 2005 and 14 percent fromthe second quarter of this year as a result of the shift to higherrate deposits and the increase in short-term borrowings to fund loangrowth.

Responding to the rise in short-term interest rates, this yearsome of the company's clients have shifted funds from core depositaccounts into higher yielding deposit products and accounts. However,in the first three quarters of 2006, the increase in City National'swealth management money market and account balances substantiallyexceeded the decline of core deposits.

The company's third-quarter net interest margin was 4.53 percent,compared with 4.80 percent during the same period last year and 4.65percent in the second quarter of 2006. The decline in the margin fromthe second quarter of this year is due to lower average balances indemand and money-market deposits as well as a 53-basis-point increasein the average cost of interest-bearing deposits.

Average securities totaled $3.2 billion in the third quarter of2006, down $822 million from one year ago and $337 million from thesecond quarter of 2006. The average duration of totalavailable-for-sale securities at September 30, 2006 was 3.3 years,compared with 3.5 years at June 30, 2006.

 For the three months For the ended three September 30, months % ended % ---------------------- Change June 30, ChangeDollars in millions 2006 2005 2006---------------------- ----------- ---------- ------ --------- ------Average Loans $10,013.1 $8,963.3 12 $9,902.9 1Average Total Securities 3,244.9 4,066.6 (20) 3,581.2 (9)Average Earning Assets 13,322.5 13,135.7 1 13,581.2 (2)Average Deposits 11,905.2 11,858.5 0 11,930.8 0Average Core Deposits 9,905.8 10,784.5 (8) 10,278.7 (4)Fully Taxable- EquivalentNet Interest Income 152.0 159.3 (5) 157.3 (3)Net Interest Margin 4.53 % 4.80 % (6) 4.65 % (3)

NONINTEREST INCOME

Third-quarter 2006 noninterest income was $64.8 million, 21percent higher than the third quarter of 2005, due primarily to thecontinuing growth of City National's wealth management andinternational services fee revenue.

Wealth Management

City National's assets under management or administration reached$48.5 billion in the third quarter. As a result, trust and investmentfees increased 46 percent over the same period last year.Third-quarter brokerage and mutual fund fees grew 20 percent from thethird quarter of 2005.

Not including the May 31, 2006 acquisition of IndependenceInvestment LLC, City National's trust and investment fee income in thethird quarter of 2006 grew 12 percent from the same period last year.Third-quarter noninterest income grew 8 percent from last year,excluding the acquisition of Independence.

 At or for the At or for three months the ended September 30, three months % ended % -------------------Dollars in millions Change June 30, Change 2006 2005 2006-------------------------- --------- --------- ------ --------- ------Trust and Investment Fee Revenue $30.0 $20.5 46 $24.9 20Brokerage and Mutual Fund Fees 13.1 10.9 20 12.3 7Assets Under Management (1) 27,380.6 18,365.6 49 26,852.9 2Assets Under Management or Administration (1) 48,488.4 38,784.0 25 47,199.0 3(1) Excludes $7.8 billion, $6.5 billion, and $9.3 billion of assets under management for the investment affiliates in which City National held minority ownership interests as of September 30, 2006, September 30, 2005, and June 30, 2006, respectively.

Other Noninterest Income

Third-quarter cash management and deposit transaction fee incomefell 5 percent from the same period last year but grew 4 percent fromthe second quarter of 2006.

International services fee income grew 12 percent from the thirdquarter of 2005 but fell 1 percent from the second quarter of thisyear.

Other noninterest income for the third quarter of 2006 amounted to$6.3 million, up 13 percent - or $730,000 - from one year ago.

NONINTEREST EXPENSE

Third-quarter 2006 noninterest expense totaled $120.7 million, up7 percent from the third quarter of 2005 and 1 percent from the secondquarter of this year.

Third-quarter expenses were lowered by $1.6 million, or $0.02 pershare after tax, due to a revision in the way the company has beenamortizing goodwill after restructuring an investment in one of itsasset management affiliates.

Excluding this revision, the expensing of stock options and theacquisition of Independence Investment LLC, noninterest expense grew 2percent from the third quarter of last year.

City National's efficiency ratio for the third quarter of 2006 was55.65 percent, compared with 52.90 percent one year ago and 55.20percent for the second quarter of this year.

INCOME TAXES

The company's third-quarter 2006 effective tax rate was 36.5percent, compared with 38.5 percent in the third quarter of last year.

CREDIT QUALITY

Asset quality remains strong. At September 30, 2006, nonaccrualloans were $18.8 million, compared with $18.6 million at the same timelast year and $15.0 million in the second quarter of 2006. Recoveriesexceeded charge-offs for the seventh consecutive quarter, this time by$1.9 million.

At September 30, 2006, the company's allowance for loan losses was$159.1 million, or 1.59 percent of outstanding loans. Its reserve forunfunded credit commitments was an additional $15.7 million.

City National made no provision for credit losses in the thirdquarter. The company's loan-loss allowance methodology takes intoaccount several quantitative and qualitative factors, including assetquality, credit risk, loan growth and economic conditions.

OUTLOOK

As previously disclosed, City National's management expectsearnings per share this year to grow at a rate of between 1 percentand 4 percent as compared with 2005.

CAPITAL RATIOS

Total risk-based capital and Tier 1 risk-based capital ratios atSeptember 30, 2006 were 14.21 percent and 11.18 percent, compared withthe minimum "well-capitalized" capital ratios of 10 percent and 6percent, respectively.

The company's Tier 1 leverage ratio at September 30, 2006 was 8.66percent. Total risk-based capital, Tier 1 risk-based capital and theTier 1 leverage ratios at June 30, 2006 were 14.36 percent, 11.29percent and 8.45 percent, respectively.

The period-end ratio of shareholders' equity to total assets atSeptember 30, 2006 was 9.98 percent, compared to 9.82 percent at thesame time last year, and 9.73 percent at June 30, 2006.

STOCK REPURCHASE

In the third quarter of 2006, City National repurchased 546,900 ofits outstanding shares at an average cost per share of $66.16. Duringthe first three quarters of this year, the company bought back morethan 2.1 million shares at an average per share cost of $69.27. It iscurrently authorized to repurchase as many as 1.3 million additionalshares.

CONFERENCE CALL

City National Corporation will host a conference call thisafternoon to discuss results for the third quarter of 2006. The callwill begin at 2:00 p.m. PDT. Analysts and investors may dial in andparticipate in the question/answer session. To access the call, pleasedial (800) 638-4817 and enter pass code 56231258. A listen-only livebroadcast of the call also will be available on the investor relationspage of the company's Website at cnb.com. There, it will be archivedand available for 12 months.

ABOUT CITY NATIONAL

City National Corporation's wholly owned subsidiary, City NationalBank, is California's Premier Private and Business Bank(R). Itprovides banking, investment and trust services through 55 offices,including 12 full-service regional centers, in Southern California,the San Francisco Bay Area and New York City. The corporation alsoholds majority ownership interests in 10 investment managementaffiliates.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements about thecompany, for which the company claims the protection of the safeharbor provisions contained in the Private Securities LitigationReform Act of 1995.

Forward-looking statements are based on management's knowledge andbelief as of today and include information concerning the company'spossible or assumed future financial condition, and its results ofoperations, business and earnings outlook. These forward-lookingstatements are subject to risks and uncertainties. A number offactors, some of which are beyond the company's ability to control orpredict, could cause future results to differ materially from thosecontemplated by such forward-looking statements. These factors include(1) changes in interest rates, (2) significant changes in banking lawsor regulations, (3) increased competition in the company's markets,(4) other-than-expected credit losses due to business losses, realestate cycles or other economic events, (5) earthquake or othernatural disasters affecting the condition of real estate collateral,(6) the effect of acquisitions and integration of acquired businessesand de novo branching efforts, (7) the impact of changes inregulatory, judicial or legislative tax treatment of businesstransactions, (8) changes in accounting policies or procedures as maybe required by the Financial Accounting Standards Board or regulatoryagencies, and (9) general business and economic conditions, includingmovements in interest rates, the slope of the yield curve and changesin business formation and growth, commercial real estate developmentand real estate prices.

Forward-looking statements speak only as of the date they aremade, and the company does not undertake to update forward-lookingstatements to reflect circumstances or events that occur after thedate 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 endedDecember 31, 2005 and particularly Part I, Item 1A, titled "RiskFactors."

CITY NATIONAL CORPORATIONFINANCIAL HIGHLIGHTS(unaudited) Three Months Nine Months ------------------------ -------------------------For The Period Ended September % % 30, 2006 2005 Change 2006 2005 Change---------------------------- ------- ------- -------- -------- -------Per Common Share Net Income Basic $1.23 $1.22 1 $3.59 $3.52 2 Diluted 1.20 1.17 3 3.47 3.39 2 Dividends 0.41 0.36 14 1.23 1.08 14 Book value 30.61 28.85 6Results of Operations: (In millions) Interest income $208 $184 13 $613 $526 16 Interest expense 59 28 110 158 74 112 -------- ------- -------- -------- Net interest income 149 156 (5) 455 452 1 Net interest income (Fully tax-equivalent) 152 159 (5) 465 462 1 Total revenue 214 210 2 633 608 4 Provision for credit losses - - NM (1) - NM Net income 59 60 (1) 175 173 1Financial Ratios: Performance Ratios: Return on average assets 1.61% 1.66% 1.59% 1.65% Return on average shareholders' equity 16.30 16.74 16.06 16.80 Period-end shareholders' equity to period-end assets 9.98 9.82 Net interest margin 4.53 4.80 4.60 4.76 Efficiency ratio 55.65 52.90 55.22 53.46 Capital Adequacy Ratios (Period end): Tier 1 leverage 8.66 8.58 Tier 1 risk-based capital 11.18 12.19 Total risk-based capital 14.21 15.70Asset Quality Ratios: Allowance for loan and lease losses to: Total loans 1.59% 1.70% Nonaccrual loans 847.03 824.19 Nonperforming assets to: Total loans and nonperforming assets 0.19 0.21 Total assets 0.13 0.13 Net (charge- offs)/recoveries to Average total loans (annualized) 0.08% 0.25% 0.08% 0.11%Average Balances: (In millions) Loans $10,013 $8,963 12 $9,848 $8,763 12 Interest-earning assets 13,322 13,136 1 13,517 12,954 4 Assets 14,545 14,256 2 14,717 14,058 5 Core deposits 9,906 10,785 (8) 10,171 10,733 (5) Deposits 11,905 11,859 - 11,810 11,705 1 Interest-bearing liabilities 7,235 6,556 10 7,304 6,578 11 Shareholders' equity 1,436 1,418 1 1,456 1,377 6Period-End Balances: (In millions) Loans $10,020 $9,005 11 Assets 14,617 14,429 1 Core deposits 9,901 10,891 (9) Deposits 11,892 12,116 (2) Shareholders' equity 1,458 1,417 3Wealth Management: (In millions) (1) Assets under management $27,381 $18,366 49 Assets under management or administration 48,488 38,784 25(1) Excludes $7,808 and $6,543 million of assets under management for the Convergent Capital Management asset managers in which City National holds minority ownership interests as of September 30, 2006 and September 30, 2005, respectively.
CITY NATIONAL CORPORATIONCONSOLIDATED STATEMENTS OF INCOME(unaudited) Three Months Ended(Dollars in thousandsexcept per share data) September 30, ----------------------------- 2006 2005 % Change-------------------------------------- --------- --------- ---------Interest income $208,347 $184,710 13Interest expense 59,625 28,396 110 --------- --------- Net Interest Income 148,722 156,314 (5)Provision for Credit Losses - - -Noninterest Income Trust and investment fees 30,002 20,494 46 Brokerage and mutual fund fees 13,096 10,946 20 Cash management and deposit transaction fees 7,967 8,370 (5) International services 6,829 6,107 12 Bank-owned life insurance 685 1,017 (33) Other service charges and fees 6,303 5,573 13 Gain (loss) on sale of assets 268 801 (67) Gain (loss) on sale of securities (362) 241 (250) --------- --------- Total noninterest income 64,788 53,549 21Noninterest Expense Salaries and employee benefits 75,318 66,467 13 Net occupancy of premises 10,207 8,666 18 Legal and professional fees 9,120 10,672 (15) Information services 4,932 4,471 10 Depreciation 4,832 4,551 6 Amortization of intangibles (37) 1,852 (102) Marketing and advertising 4,495 4,182 7 Office services 2,623 2,578 2 Equipment 514 578 (11) Minority interest expense 1,808 1,761 3 Other 6,857 6,862 (0) --------- --------- Total noninterest expense 120,669 112,640 7 --------- ---------Income Before Taxes 92,841 97,223 (5)Applicable Income Taxes 33,847 37,413 (10) --------- ---------Net Income $58,994 $59,810 (1) ========= =========Other Data: Earnings per common share - basic $1.23 $1.22 1 Earnings per common share - diluted $1.20 $1.17 3 Dividends paid per common share $0.41 $0.36 14 Dividend payout ratio 33.64% 29.82% 13 Return on average assets 1.61% 1.66% (3) Return on average shareholders' equity 16.30% 16.74% (3) Net interest margin (Fully taxable- equivalent) 4.53% 4.80% (6) Full-time equivalent employees 2,672 2,516 6 Nine Months Ended(Dollars in thousandsexcept per share data) September 30, ------------------------------ 2006 2005 % Change--------------------------------------- ---------- --------- ---------Interest income $612,743 $526,625 16Interest expense 157,617 74,239 112 ---------- --------- Net Interest Income 455,126 452,386 1Provision for Credit Losses (610) - -Noninterest Income Trust and investment fees 76,685 60,457 27 Brokerage and mutual fund fees 37,049 30,754 20 Cash management and deposit transaction fees 23,722 26,254 (10) International services 19,688 16,903 16 Bank-owned life insurance 2,296 2,533 (9) Other service charges and fees 18,968 16,039 18 Gain (loss) on sale of assets 268 986 (73) Gain (loss) on sale of securities (370) 1,340 (128) ---------- --------- Total noninterest income 178,306 155,266 15Noninterest Expense Salaries and employee benefits 220,652 196,938 12 Net occupancy of premises 28,679 25,009 15 Legal and professional fees 27,706 30,177 (8) Information services 13,959 12,697 10 Depreciation 14,154 13,656 4 Amortization of intangibles 3,828 4,734 (19) Marketing and advertising 13,501 11,699 15 Office services 7,863 7,755 1 Equipment 1,769 1,773 (0) Minority interest expense 4,249 5,104 (17) Other 18,804 20,366 (8) ---------- --------- Total noninterest expense 355,164 329,908 8 ---------- ---------Income Before Taxes 278,878 277,744 0Applicable Income Taxes 103,911 104,766 (1) ---------- ---------Net Income $174,967 $172,978 1 ========== =========Other Data: Earnings per common share - basic $3.59 $3.52 2 Earnings per common share - diluted $3.47 $3.39 2 Dividends paid per common share $1.23 $1.08 14 Dividend payout ratio 34.57% 30.87% 12 Return on average assets 1.59% 1.65% (3) Return on average shareholders' equity 16.06% 16.80% (4) Net interest margin (Fully taxable- equivalent) 4.60% 4.76% (3) Full-time equivalent employees
CITY NATIONAL CORPORATIONCONSOLIDATED QUARTERLY STATEMENTS OF INCOME(unaudited) 2006 ---------------------------------------(Dollars in thousands except Third Second First Year to per share data) Quarter Quarter Quarter Date------------------------------ --------- --------- --------- ---------Interest Income $208,347 $206,204 $198,192 $612,743Interest Expense 59,625 52,206 45,786 157,617 --------- --------- --------- --------- Net Interest Income 148,722 153,998 152,406 455,126Provision for Credit Losses - (610) - (610)Noninterest Income Trust and investment fees 30,002 24,909 21,774 76,685 Brokerage and mutual fund fees 13,096 12,269 11,684 37,049 Cash management and deposit transaction fees 7,967 7,691 8,064 23,722 International services 6,829 6,870 5,989 19,688 Bank-owned life insurance 685 677 934 2,296 Other service charges and fees 6,303 6,888 5,777 18,968 Gain (loss) on sale of assets 268 - - 268 Gain (loss) on sale of securities (362) (716) 708 (370) --------- --------- --------- --------- Total noninterest income 64,788 58,588 54,930 178,306Noninterest Expense Salaries and employee benefits 75,318 73,718 71,616 220,652 Net occupancy of premises 10,207 9,460 9,012 28,679 Legal and professional fees 9,120 9,169 9,417 27,706 Information services 4,932 4,571 4,456 13,959 Depreciation 4,832 4,662 4,660 14,154 Amortization of intangibles (37) 1,974 1,891 3,828 Marketing and advertising 4,495 4,990 4,016 13,501 Office services 2,623 2,549 2,691 7,863 Equipment 514 623 632 1,769 Minority interest expense 1,808 1,213 1,228 4,249 Other 6,857 6,243 5,704 18,804 --------- --------- --------- --------- Total noninterest expense 120,669 119,172 115,323 355,164 --------- --------- --------- ---------Income Before Taxes 92,841 94,024 92,013 278,878Applicable Income Taxes 33,847 35,283 34,781 103,911 --------- --------- --------- ---------Net Income $58,994 $58,741 $57,232 $174,967 ========= ========= ========= =========Other Data: Earnings per common share - basic $1.23 $1.20 $1.16 $3.59 Earnings per common share - diluted $1.20 $1.16 $1.12 $3.47 Dividends paid per common share $0.41 $0.41 $0.41 $1.23 Dividend payout ratio 33.64% 34.43% 35.65% 34.57% Return on average assets 1.61% 1.59% 1.57% 1.59% Return on average shareholders' equity 16.30% 16.20% 15.68% 16.06% Net interest margin (Fully taxable-equivalent) 4.53% 4.65% 4.62% 4.60% Full-time equivalent employees 2,672 2,648 2,570
CITY NATIONAL CORPORATIONCONSOLIDATED QUARTERLY STATEMENTS OF INCOME(unaudited) 2005 -------------------------------------------------(Dollars in thousands except Fourth Third Second First per share data) Quarter Quarter Quarter Quarter Full Year-------------------- --------- --------- --------- --------- ---------Interest Income $191,927 $184,710 $174,265 $167,650 $718,552Interest Expense 31,886 28,396 24,619 21,224 106,125 --------- --------- --------- --------- --------- Net Interest Income 160,041 156,314 149,646 146,426 612,427Provision for Credit Losses - - - - -Noninterest Income Trust and investment fees 20,362 20,494 20,119 19,844 80,818 Brokerage and mutual fund fees 11,174 10,946 9,931 9,877 41,927 Cash management and deposit transaction fees 7,842 8,370 8,874 9,010 34,096 International services 6,256 6,107 5,908 4,888 23,159 Bank-owned life insurance 670 1,017 652 864 3,203 Other service charges and fees 6,591 5,573 4,869 5,597 22,632 Gain on sale of assets 81 801 162 23 1,067 Gain (loss) on sale of securities (53) 241 844 255 1,287 --------- --------- --------- --------- --------- Total noninterest income 52,923 53,549 51,359 50,358 208,189Noninterest Expense Salaries and employee benefits 66,460 66,467 63,839 66,632 263,398 Net occupancy of premises 10,074 8,666 8,727 7,616 35,083 Legal and professional fees 11,419 10,672 10,791 8,714 41,596 Information services 4,299 4,471 4,015 4,211 16,996 Depreciation 4,778 4,551 4,535 4,570 18,434 Amortization of intangibles 1,865 1,852 1,441 1,441 6,595 Marketing and advertising 4,472 4,182 3,943 3,574 16,171 Office services 2,942 2,578 2,688 2,489 10,697 Equipment 582 578 646 549 2,355 Minority interest expense 571 1,761 1,532 1,811 5,675 Other 6,690 6,862 6,796 6,708 27,060 --------- --------- --------- --------- --------- Total noninterest expense 114,152 112,640 108,953 108,315 444,060 --------- --------- --------- --------- ---------Income Before Taxes 98,812 97,223 92,052 88,469 376,556Applicable Income Taxes 37,055 37,413 34,345 33,008 141,821 --------- --------- --------- --------- ---------Net Income $61,757 $59,810 $57,707 $55,461 $234,735 ========= ========= ========= ========= =========Other Data: Earnings per common share - basic $1.25 $1.22 $1.18 $1.13 $4.77 Earnings per common share - diluted $1.21 $1.17 $1.13 $1.09 $4.60 Dividends paid per common share $0.36 $0.36 $0.36 $0.36 $1.44 Dividend payout ratio 28.89% 29.82% 30.86% 32.02% 30.35% Return on average assets 1.69% 1.66% 1.65% 1.62% 1.66% Return on average shareholders' equity 17.15% 16.74% 17.03% 16.63% 16.89% Net interest margin (Fully taxable- equivalent) 4.85% 4.80% 4.73% 4.75% 4.79% Full-time equivalent employees 2,539 2,516 2,477 2,445
CITY NATIONAL CORPORATIONCONSOLIDATED PERIOD END BALANCE SHEET(unaudited) 2006 -------------------------------------- Third Second First(In thousands) Quarter Quarter Quarter------------------------------- ------------ ------------ ------------Assets Cash and due from banks $457,396 $467,076 $457,156 Federal funds sold 3,300 1,900 - Due from banks - interest- bearing 65,323 50,416 48,890 Securities-available-for-sale 3,175,230 3,211,590 3,850,173 Trading account securities 116,870 123,418 57,353 Loans: Commercial 3,782,781 3,738,361 3,698,614 Commercial real estate mortgages 2,066,373 2,032,698 1,891,517 Residential mortgages 2,830,761 2,769,340 2,700,966 Real estate construction 757,742 723,570 748,696 Equity lines of credit 384,830 364,312 339,348 Installment 197,871 193,474 188,262 ------------ ------------ ------------ Total loans 10,020,358 9,821,755 9,567,403 Allowance for loan and lease losses (159,063) (157,580) (156,482) ------------ ------------ ------------ Net loans 9,861,295 9,664,175 9,410,921 Premises and equipment, net 88,582 84,802 84,884 Goodwill and other intangibles 298,471 298,004 283,642 Other assets 550,291 575,686 546,365 ------------ ------------ ------------ Total assets $14,616,758 $14,477,067 $14,739,384 ============ ============ ============Liabilities: Deposits: Noninterest-bearing $5,639,811 $5,880,630 $5,945,485 Interest-bearing 6,252,206 6,098,200 5,963,044 ------------ ------------ ------------ Total deposits 11,892,017 11,978,830 11,908,529 Federal funds purchased and securities sold under repurchase agreements 506,962 234,995 526,920 Other short-term borrowed funds 72,426 143,724 151,522 Subordinated debt 278,031 266,675 269,785 Other long-term debt 209,814 209,864 213,819 Minority interest 28,578 27,985 25,225 Other liabilities 170,710 206,929 164,020 ------------ ------------ ------------ Total liabilities 13,158,538 13,069,002 13,259,820Shareholders' Equity Common stock 50,729 50,735 50,693 Additional paid-in capital 404,163 402,476 399,976 Retained earnings 1,235,959 1,196,812 1,158,290 Accumulated other comprehensive loss (46,400) (86,931) (73,250) Treasury shares (186,231) (155,027) (56,145) ------------ ------------------------- Total shareholders' equity 1,458,220 1,408,065 1,479,564 ------------ ------------------------- Total liabilities and shareholders' equity $14,616,758 $14,477,067 $14,739,384 ============ ============ ============
CITY NATIONAL CORPORATIONCONSOLIDATED PERIOD END BALANCE SHEET(unaudited) 2005 --------------------------------------------------- Fourth Third Second First(In thousands) Quarter Quarter Quarter Quarter------------------ ------------ ------------ ------------ ------------Assets Cash and due from banks $365,217 $438,786 $406,709 $386,999 Federal funds sold 157,000 185,000 400,000 190,000 Due from banks - interest-bearing 40,803 39,485 34,676 36,982 Securities- available-for- sale 3,999,261 4,030,296 4,057,267 4,018,969 Trading account securities 59,344 42,634 22,337 37,490 Loans: Commercial 3,505,576 3,367,607 3,311,059 3,082,663 Commercial real estate mortgages 1,860,262 1,841,111 1,826,379 1,848,512 Residential mortgages 2,644,030 2,571,537 2,485,177 2,405,732 Real estate construction 721,890 711,755 724,895 759,090 Equity lines of credit 333,548 317,703 310,101 274,735 Installment 200,296 195,168 212,064 201,821 ------------ ------------ ------------ ------------ Total loans 9,265,602 9,004,881 8,869,675 8,572,553 Allowance for loan and lease losses (153,983) (152,920) (147,930) (147,607) ------------ ------------ ------------ ------------ Net loans 9,111,619 8,851,961 8,721,745 8,424,946 Premises and equipment, net 82,868 76,754 73,169 68,354 Goodwill and other intangibles 284,124 285,553 289,675 291,116 Other assets 481,624 478,975 470,020 463,182 ------------ ------------------------- ------------ Total assets $14,581,860 $14,429,444 $14,475,598 $13,918,038 ============ ========================= ============Liabilities: Deposits: Noninterest- bearing $6,562,038 $6,345,907 $6,468,339 $6,069,061 Interest-bearing 5,576,434 5,769,807 5,683,869 5,693,563 ------------ ------------ ------------ ------------ Total deposits 12,138,472 12,115,714 12,152,208 11,762,624 Federal funds purchased and securities sold under repurchase agreements 190,190 191,036 204,052 155,645 Other short-term borrowed funds 100,000 26,197 27,678 125 Subordinated debt 275,682 278,076 285,771 280,068 Other long-term debt 219,445 221,168 233,290 224,829 Minority interest 24,351 24,856 25,400 25,525 Other liabilities 175,712 155,220 146,311 149,039 ------------ ------------ ------------ ------------ Total liabilities 13,123,852 13,012,267 13,074,710 12,597,855Shareholders' Equity Common stock 50,601 50,601 50,640 50,712 Additional paid- in capital 396,659 398,289 398,981 399,612 Retained earnings 1,121,474 1,077,561 1,035,589 995,688 Accumulated other comprehensive (loss) (51,551) (36,879) (12,948) (43,288) Treasury shares (59,175) (72,395) (71,374) (82,541) ------------ ------------ ------------ ------------ Total shareholders' equity 1,458,008 1,417,177 1,400,888 1,320,183 ------------ ------------ ------------ ------------ Total liabilities and shareholders' equity $14,581,860 $14,429,444 $14,475,598 $13,918,038 ============ ============ ============ ============
CITY NATIONAL CORPORATIONCREDIT LOSS EXPERIENCE(unaudited) 2006 --------------------------------------- Third Second First Year To(Dollars in thousands) Quarter Quarter Quarter Date---------------------------- --------- --------- --------- ---------Allowance for Loan and Lease LossesBalance at beginning of period $157,580 $156,482 $153,983 $153,983Net (charge- offs)/recoveries: Commercial 1,912 1,122 1,792 4,826 Commercial real estate mortgages - 11 844 855 Residential mortgages - - - - Real estate construction 18 17 16 51 Equity lines of credit (11) - - (11) Installment 10 11 4 25 --------- --------- --------- --------- Total net (charge- offs)/recoveries 1,929 1,161 2,656 5,746Provision for credit losses/transfers (446) (63) (157) (666) --------- --------- --------- ---------Balance at end of period $159,063 $157,580 $156,482 $159,063 ========= ========= ========= =========Net (Charge-Offs)/Recoveries to Average Total Loans: (annualized) Commercial 0.20 % 0.11 % 0.19 % 0.17 % Commercial real estate mortgages 0.00 % 0.00 % 0.18 % 0.06 % Residential mortgage 0.00 % 0.00 % 0.00 % 0.00 % Real estate construction 0.01 % 0.01 % 0.01 % 0.01 % Equity lines of credit (0.01)% 0.00 % 0.00 % (0.00)% Installment 0.02 % 0.02 % 0.01 % 0.02 % Total loans 0.08 % 0.05 % 0.11 % 0.08 %Reserve for Off-Balance Sheet Credit CommitmentsBalance at beginning of period $15,206 $15,753 $15,596 $15,596 Provision for credit losses/transfers 446 (547) 157 56 --------- --------- --------- ---------Balance at end of period $15,652 $15,206 $15,753 $15,652 ========= ========= ========= ========= 2005 ---------------------------------------------------(Dollars in Fourth Third Second First thousands) Quarter Quarter Quarter Quarter Full Year----------------------------- --------- --------- --------- ---------Allowance for Loan and Lease LossesBalance at beginning of period $152,920 $147,930 $147,607 $148,568 $148,568Net (charge- offs)/recoveries: Commercial 2,085 4,213 1,067 2,117 9,482 Commercial real estate mortgages 7 324 7 (1,893) (1,555) Residential mortgages - - 1 2 3 Real estate construction 15 1,192 71 23 1,301 Equity lines of credit - - 39 1 40 Installment (11) 13 5 (18) (11) ----------- --------- --------- --------- --------- Total net (charge- offs)/recoveries 2,096 5,742 1,190 232 9,260Provision for credit losses/transfers (1,033) (752) (867) (1,193) (3,845) ----------- --------- --------- --------- ---------Balance at end of period $153,983 $152,920 $147,930 $147,607 $153,983 =========== ========= ========= ========= =========Net (Charge- Offs)/Recoveries to Average Total Loans: (annualized) Commercial 0.24 % 0.50 % 0.13 % 0.28 % 0.29 % Commercial real estate mortgages 0.00 % 0.07 % 0.00 % (0.41)% (0.09)% Residential mortgage 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % Real estate construction 0.01 % 0.65 % 0.04 % 0.01 % 0.17 % Equity lines of credit 0.00 % 0.00 % 0.05 % 0.00 % 0.01 % Installment (0.02)% 0.02 % 0.01 % (0.03)% (0.01)% Total loans 0.09 % 0.25 % 0.05 % 0.01 % 0.10 %Reserve for Off- Balance Sheet Credit CommitmentsBalance at beginning of period $14,563 $13,811 $12,944 $11,751 $11,751 Provision for credit losses/transfers 1,033 752 867 1,193 3,845 ---------- --------- --------- --------- ---------Balance at end of period $15,596 $14,563 $13,811 $12,944 $15,596 =========== ========= ========= ========= =========
CITY NATIONAL CORPORATIONNONPERFORMING ASSETS(unaudited) 2006 ---------------------------- Third Second First(Dollars in thousands) Quarter Quarter Quarter----------------------------------------- -------- --------- ---------Nonaccrual Loans Commercial $10,416 $6,691 $5,642 Commercial real estate mortgages 8,094 3,644 923 Residential mortgages - - - Real estate construction - 4,617 7,492 Equity lines of credit - - - Installment 269 49 498 -------- --------- --------- Total nonaccrual loans 18,779 15,001 14,555Other Nonperforming Assets - - - -------- --------- --------- Total nonperforming assets $18,779 $15,001 $14,555 ======== ========= =========Loans 90 Days or More Past Due on Accrual Status $27 $18 $-Allowance for loan and lease losses as a percentage of: Nonaccrual loans 847.03% 1,050.47% 1,075.11% Total nonperforming assets 847.03% 1,050.47% 1,075.11% Total loans 1.59% 1.60% 1.64%Nonaccrual loans as a percentage of total loans 0.19% 0.15% 0.15%Nonperforming assets as a percentage of: Total loans and other nonperforming assets 0.19% 0.15% 0.15% Total assets 0.13% 0.10% 0.10% 2005 ------------------------------------ Fourth Third Second First(Dollars in thousands) Quarter Quarter Quarter Quarter-------------------------------- --------- -------- -------- --------Nonaccrual Loans Commercial $5,141 $14,917 $17,982 $25,117 Commercial real estate mortgages 923 955 1,543 1,945 Residential mortgages 294 2,259 1,990 1,990 Real estate construction 7,650 - - - Equity lines of credit 21 22 22 212 Installment 371 401 624 654 --------- -------- -------- -------- Total nonaccrual loans 14,400 18,554 22,161 29,918Other Nonperforming Assets - - - - --------- -------- -------- -------- Total nonperforming assets $14,400 $18,554 $22,161 $29,918 ========= ======== ======== ========Loans 90 Days or More Past Due on Accrual Status $- $- $103 $807Allowance for loan and lease losses as a percentage of: Nonaccrual loans 1,069.33% 824.19% 667.52% 493.37% Total nonperforming assets 1,069.33% 824.19% 667.52% 493.37% Total loans 1.66% 1.70% 1.67% 1.72%Nonaccrual loans as a percentage of total loans 0.16% 0.21% 0.25% 0.35%Nonperforming assets as a percentage of: Total loans and other nonperforming assets 0.16% 0.21% 0.25% 0.35% Total assets 0.10% 0.13% 0.15% 0.21%
CITY NATIONAL CORPORATIONAVERAGE BALANCES AND RATES(unaudited) 2006 -------------------------------------------- Third Quarter Second Quarter ---------------- ---------------- Average Average Average Average(Dollars in millions) Balance Rate Balance Rate--------------------------------------------- ------- -------- -------AssetsInterest-earning assets Loans Commercial $3,827 7.05 % $3,933 6.85 % Commercial real estate mortgages 2,055 7.48 1,943 7.58 Residential mortgages 2,801 5.38 2,737 5.31 Real estate construction 761 9.37 743 9.14 Equity lines of credit 375 7.91 352 7.63 Installment 194 7.58 195 7.72 -------- -------- Total loans 10,013 6.88 9,903 6.79 Due from banks - interest-bearing 61 2.55 46 2.31 Federal funds sold and securities purchased under resale agreements 3 7.13 51 4.77 Securities available-for-sale 3,191 4.63 3,529 4.55 Trading account securities 54 5.22 52 6.61 -------- -------- Total interest-earning assets 13,322 6.30 13,581 6.19 Allowance for loan and lease losses (158) (157) Cash and due from banks 428 443 Other assets 953 915 -------- -------- Total assets $14,545 $14,782 ======== ========Liabilities and Shareholders' Equity Interest-bearing deposits Interest checking accounts $706 0.36 % $757 0.27 % Money market accounts 3,224 2.57 3,352 2.13 Savings deposits 163 0.41 174 0.37 Time deposits - under $100,000 184 3.87 176 3.00 Time deposits - $100,000 and over 1,999 4.55 1,652 4.07 -------- -------- Total interest-bearing deposits 6,276 2.93 6,111 2.40 Federal funds purchased and securities sold under repurchase agreements 401 5.26 546 4.93 Other borrowings 558 5.63 652 5.51 -------- -------- Total interest-bearing liabilities 7,235 3.27 7,309 2.86Noninterest-bearing deposits 5,629 5,820Other liabilities 245 199Shareholders' equity 1,436 1,454 -------- -------- Total liabilities and shareholders' equity $14,545 $14,782 ======== ========Net interest spread 3.03 % 3.33 % ====== ======Net interest margin 4.53 % 4.65 % ====== ======Average prime rate 8.25 % 7.90 % ====== ====== First Quarter Year to Date ---------------- ---------------- Average Average Average Average(Dollars in millions) Balance Rate Balance Rate------------------------------------ -------- ------- -------- -------AssetsInterest-earning assets Loans Commercial $3,813 6.62 % 3,858 6.84 % Commercial real estate mortgages 1,872 7.35 1,957 7.47 Residential mortgages 2,666 5.27 2,735 5.32 Real estate construction 743 8.58 749 9.04 Equity lines of credit 334 7.17 354 7.59 Installment 197 7.41 195 7.57 -------- -------- Total loans 9,625 6.59 9,848 6.76 Due from banks - interest-bearing 44 1.98 51 2.31 Federal funds sold and securities purchased under resale agreements 13 4.32 22 4.79 Securities available-for-sale 3,926 4.47 3,546 4.55 Trading account securities 44 5.26 50 5.70 -------- -------- Total interest-earning assets 13,652 5.98 13,517 6.16 Allowance for loan and lease losses (155) (157) Cash and due from banks 439 436 Other assets 891 921 -------- -------- Total assets $14,827 $14,717 ======== ========Liabilities and Shareholders' Equity Interest-bearing deposits Interest checking accounts $808 0.23 % $757 0.28 % Money market accounts 3,388 1.81 3,321 2.17 Savings deposits 179 0.37 172 0.38 Time deposits - under $100,000 180 2.59 180 3.16 Time deposits - $100,000 and over 1,254 3.42 1,638 4.10 -------- -------- Total interest-bearing deposits 5,809 1.92 6,068 2.43 Federal funds purchased and securities sold under repurchase agreements 809 4.48 584 4.80 Other borrowings 749 5.09 652 5.39 -------- -------- Total interest-bearing liabilities 7,367 2.52 7,304 2.89Noninterest-bearing deposits 5,779 5,742Other liabilities 200 215Shareholders' equity 1,481 1,456 -------- -------- Total liabilities and shareholders' equity $14,827 $14,717 ======== ========Net interest spread 3.46 % 3.27 % ====== ======Net interest margin 4.62 % 4.60 % ====== ======Average prime rate 7.43 % 7.86 % ====== ======
CITY NATIONAL CORPORATIONAVERAGE BALANCES AND RATES(unaudited) 2005 ----------------------------------------- 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 Commercial $3,517 6.48% $3,376 6.21% $3,215 6.01% Commercial real estate mortgages 1,849 7.28 1,829 7.47 1,856 7.01 Residential mortgages 2,603 5.23 2,519 5.25 2,444 5.19 Real estate construction 727 8.36 725 7.98 728 7.37 Equity lines of credit 322 6.77 310 6.10 297 5.70 Installment 192 7.19 204 7.05 208 7.12 -------- -------- -------- Total loans 9,210 6.45 8,963 6.34 8,748 6.13 Due from banks - interest- bearing 44 1.63 41 1.45 37 1.24 Federal funds sold and securities purchased under resale agreements 23 4.23 65 3.70 80 2.76 Securities available-for- sale 4,012 4.37 4,030 4.26 4,034 4.25 Trading account securities 39 5.13 37 3.95 37 3.25 -------- -------- -------- Total interest- earning assets 13,328 5.80 13,136 5.67 12,936 5.50 Allowance for loan and lease losses (153) (151) (148) Cash and due from banks 451 441 443 Other assets 842 830 810 -------- -------- -------- Total assets $14,468 $14,256 $14,041 ======== ======== ========Liabilities and Shareholders' Equity Interest-bearing deposits Interest checking accounts $813 0.21% $795 0.14% $849 0.08% Money market accounts 3,471 1.49 3,507 1.30 3,568 1.15 Savings deposits 186 0.29 196 0.29 199 0.28 Time deposits - under $100,000 189 2.62 183 2.03 181 0.98 Time deposits - $100,000 and over 1,136 2.78 1,074 2.87 897 2.84 -------- -------- -------- Total interest- bearing deposits 5,795 1.56 5,755 1.42 5,694 1.22 Federal funds purchased and securities sold under repurchase agreements 289 3.79 256 3.25 315 2.88 Other borrowings 552 4.55 545 4.13 518 3.85 -------- -------- -------- Total interest- bearing liabilities 6,636 1.91 6,556 1.72 6,527 1.51 Noninterest- bearing deposits 6,205 6,104 5,985 Other liabilities 198 178 170 Shareholders' equity 1,429 1,418 1,359 -------- -------- -------- Total liabilities and shareholders' equity $14,468 $14,256 $14,041 ======== ======== ========Net interest spread 3.89% 3.95% 3.99% ======= ======= =======Net interest margin 4.85% 4.80% 4.73% ======= ======= =======Average prime rate 6.97% 6.42% 5.91% ======= ======= ======= First Quarter Full Year ----------------- ---------------- -Average Average Average Average(Dollars in millions) Balance Rate Balance Rate--------------------------------------------- ------- -------- -------Assets Interest-earning assets Loans Commercial $3,112 5.75% 3,306 6.13% Commercial real estate mortgages 1,818 7.02 1,838 7.20 Residential mortgages 2,354 5.18 2,481 5.21 Real estate construction 817 6.74 749 7.59 Equity lines of credit 265 5.42 299 6.03 Installment 206 6.28 202 6.93 --------- -------- Total loans 8,572 5.98 8,875 6.23 Due from banks - interest-bearing 65 1.34 47 1.42 Federal funds sold and securities purchased under resale agreements 33 2.59 50 3.22 Securities available-for-sale 4,078 4.38 4,038 4.32 Trading account securities 38 2.40 38 3.71 --------- -------- Total interest-earning assets 12,786 5.43 13,048 5.60 Allowance for loan and lease losses (149) (150) Cash and due from banks 441 444 Other assets 795 819 --------- -------- Total assets $13,873 $14,161 ========= ========Liabilities and Shareholders' Equity Interest-bearing deposits Interest checking accounts $858 0.09% $828 0.13% Money market accounts 3,690 1.00 3,558 1.23 Savings deposits 205 0.24 197 0.27 Time deposits - under $100,000 182 1.69 184 1.65 Time deposits - $100,000 and over 944 2.19 1,013 2.72 --------- -------- Total interest-bearing deposits 5,879 1.05 5,780 1.32 Federal funds purchased and securities sold under repurchase agreements 254 2.33 278 3.08 Other borrowings 519 3.53 534 4.03 --------- -------- Total interest-bearing liabilities 6,652 1.29 6,592 1.61 Noninterest-bearing deposits 5,694 5,999 Other liabilities 175 180 Shareholders' equity 1,352 1,390 --------- -------- Total liabilities and shareholders' equity $13,873 $14,161 ======== ========Net interest spread 4.14% 3.99% ======= =======Net interest margin 4.75% 4.79% ======= =======Average prime rate 5.44% 6.19% ======= =======
CITY NATIONAL CORPORATIONAVERAGE BALANCES AND RATES(unaudited) 2006 --------------------------------------- Third Second First Year To Quarter Quarter Quarter Date -------- -------- -------- -------Per Common Share:------------------------------ Shares Outstanding (in thousands): Average - Basic 47,919 48,957 49,484 48,786 Average - Diluted 49,318 50,654 51,309 50,424 Period-End 47,639 48,115 49,535Book Value $30.61 $29.26 $29.87Price: High $68.41 $78.25 $78.25 $78.25 Low 63.69 60.02 71.95 60.02 Period-end 67.06 65.09 76.79Capital Ratios (Dollars in millions):------------------------------Risk-based capital Risk-adjusted assets $10,999 $10,811 $10,473 Tier I capital $1,229 $1,221 $1,295 Percentage of risk adjusted assets 11.18 % 11.29 % 12.36 % Total capital $1,563 $1,552 $1,624 Percentage of risk adjusted assets 14.21 % 14.36 % 15.51 % Tier I leverage ratio 8.66 % 8.45 % 8.92 % Period-end shareholders' equity to total period-end assets 9.98 % 9.73 % 10.04 % Period-end tangible shareholders' equity to total period-end tangible assets 8.10 % 7.83 % 8.27 % Average shareholders' equity to total average assets 9.87 % 9.84 % 9.99 % 9.89 % Average tangible shareholders' equity to total average tangible assets 7.99 % 8.04 % 8.23 % 8.09 % 2005 ----------------------------------------------- Fourth Third Second First Full Quarter Quarter Quarter Quarter Year -------- -------- -------- -------- --------Per Common Share:---------------------- Shares Outstanding (in thousands): Average - Basic 49,238 49,198 49,090 49,162 49,159 Average - Diluted 51,053 51,123 51,043 51,030 51,062 Period-End 49,347 49,117 49,145 48,958Book Value $29.55 $28.85 $28.51 $26.97Price: High $75.12 $76.10 $72.90 $71.35 $76.10 Low 66.39 68.42 66.84 67.49 66.39 Period-end 72.44 70.09 71.71 69.82Capital Ratios (Dollars in millions):----------------------Risk-based capital Risk-adjusted assets $10,148 $9,802 $9,663 $9,410 Tier I capital $1,251 $1,195 $1,151 $1,100 Percentage of risk adjusted assets 12.33 % 12.19 % 11.91 % 11.69 % Total capital $1,576 $1,539 $1,493 $1,437 Percentage of risk adjusted assets 15.53 % 15.70 % 15.45 % 15.27 % Tier I leverage ratio 8.82 % 8.58 % 8.39 % 8.12 % Period-end shareholders' equity to total period-end assets 10.00 % 9.82 % 9.68 % 9.49 % Period-end tangible shareholders' equity to total period-end tangible assets 8.21 % 8.00 % 7.83 % 7.55 % Average shareholders' equity to total average assets 9.88 % 9.94 % 9.68 % 9.75 % 9.81 % Average tangible shareholders' equity to total average tangible assets 8.07 % 8.08 % 7.77 % 7.80 % 7.93 %
Senior Debt Credit Ratings---------------------------------------- For The Period Ended September 30, 2006 Standard & Moody's Fitch Poor's DBRS ------- ----- -------- ------ City National Bank A2 A- A A City National Corporation A3 A- A- A(low)


CONTACT: City National
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or
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SOURCE: City National Corporation