Assets Under Management or Administration Exceed $57 Billion for the First Time

LOS ANGELES, July 18, 2007 (PRIME NEWSWIRE) - City National Corporation (NYSE:CYN), the parent company of wholly owned City National Bank, today reported second-quarter 2007 net income of $59.2 million, or $1.19 per share, up from $58.7 million, or $1.16 per share, for the second quarter of 2006.

Year to date, City National has earned $115.7 million, or $2.34 per share, on revenue of $440.1 million. In the first half of 2006, the company earned net income of $116 million, or $2.28 per share, on revenue of $419.9 million.

City National's second-quarter financial results reflect the company's May 1, 2007 acquisition of Convergent Wealth Advisors (formerly known as Lydian Wealth Management) and its February 28, 2007 acquisition of Business Bank of Nevada.

SECOND-QUARTER HIGHLIGHTS

* City National's second-quarter average loan balances grew to a record $11 billion, up 11 percent from the second quarter of 2006.

* Average deposits reached a record $12.6 billion, up 5 percent from the second quarter of 2006.

* Noninterest income grew to $73.7 million, a 26 percent increase from the second quarter of 2006, and now accounts for 33 percent of City National's total revenue.

* Assets under direct management amounted to $35.8 billion, a 35 percent increase from the second quarter of 2006. Assets under management or administration grew 22 percent to $57.3 billion.

* Credit quality remained strong in the second quarter of 2007. The company required no provision for credit losses and remained adequately reserved at 1.43 percent of total loans.

* City National's second-quarter return on average equity was 14.79 percent and its return on average assets was 1.54 percent.

"City National achieved solid second-quarter results in a challenging environment," said President and Chief Executive Officer Russell Goldsmith. "Loans and deposits both grew to record levels, credit quality remained strong, noninterest income continued to grow at very robust double-digit rates and actual expense growth was constrained.

"The company also made a number of important investments during the first half of 2007. The acquisition of Convergent Wealth Advisors, an outstanding investment advisory firm for the ultra-affluent market, helped raise City National's assets under management or administration to more than $57 billion for the first time. We also successfully integrated Business Bank of Nevada, adding eight new Nevada offices and rolling out the City National brand in one of America's most dynamic states. In addition, our company expanded its presence in fast-growing Ontario, California by opening a new banking office there."

 For the three months ended For the three June 30, months ended Dollars in millions, -------------------- % March 31, % except per share 2007 2006 Change 2007 Change ------------------- --------- --------- ------ --------- ------ Earnings Per Share $ 1.19 $ 1.16 3 $ 1.15 3 Net Income 59.2 58.7 1 56.5 5 Average Assets 15,452.6 14,782.5 5 14,836.4 4 Return on Average Assets 1.54% 1.59% (3) 1.55% (1) Return on Average Equity 14.79 16.20 (9) 15.10 (2)

ASSETS

Total assets at June 30, 2007 were $15.8 billion, up 9 percent from one year ago, primarily due to City National's loan growth as well as the acquisition of Business Bank of Nevada. Total assets grew 3 percent from the first quarter of 2007.

REVENUE

Second-quarter revenue totaled $226.8 million, up 7 percent from the second quarter of 2006 and 6 percent from the first quarter of this year, due principally to the acquisition of Business Bank of Nevada.

NET INTEREST INCOME

Fully taxable-equivalent net interest income reached $157.3 million in the second quarter of 2007, compared with $157.9 million for the same period last year. Fully taxable-equivalent net interest income in the first quarter of 2007 was $151.3 million.

Average loan balances reached $11 billion, up 11 percent from one year ago and 4 percent from the first quarter of 2007.

Lending grew across the board:

* Commercial loans increased 9 percent from the second quarter of 2006 and 3 percent from the first quarter of this year.

* Single-family residential mortgage lending rose 9 percent from one year ago and 3 percent from the first quarter of 2007. (City National's $3 billion residential portfolio contains no subprime credits or option-only adjustable rate loans. The company makes mortgage loans as an accommodation to its private banking clients. These loans have an average loan-to-value ratio of 51 percent.)

* Commercial real estate and construction loans together were up 18 percent from the second quarter of 2006 and 8 percent from the first quarter of this year.

At June 30, 2007, the bank's prime rate was 8.25 percent, unchanged from both June 30, 2006 and March 31, 2007.

 For the three months ended For the three June 30, months ended -------------------- % March 31, % Dollars in millions, 2007 2006 Change 2007 Change ------------------- ---------- ---------- ------ ---------- ------ Average Loans $ 11,010.9 $ 9,902.9 11 $ 10,554.9 4 Average Total Securities 2,945.1 3,581.2 (18) 2,971.4 (1) Average Earning Assets 14,129.5 13,627.7 4 13,660.7 3 Average Deposits 12,569.9 11,930.8 5 11,916.3 5 Average Core Deposits 10,503.4 10,278.7 2 10,044.8 5 Fully Taxable- Equivalent Net Interest Income 157.3 157.9 (0) 151.3 4 Net Interest Margin 4.47% 4.65% (4) 4.49% (0)

City National's second-quarter net interest margin was 4.47 percent, compared with 4.49 percent in the first quarter of 2007. The company's all-cash acquisition of Convergent Wealth Advisors narrowed its second-quarter margin by two basis points.

Average deposits totaled $12.6 billion, an increase of 5 percent from both the second quarter of 2006 and the first quarter of this year. The increases were due primarily to the acquisition of Business Bank of Nevada as well as the growth of interest-bearing and time deposits.

Average noninterest-bearing deposits fell 5 percent from the second quarter of 2006. However, noninterest-bearing balances grew 1 percent from the first quarter of this year, due to the full second-quarter impact of City National's acquisition of Business Bank of Nevada and the seasonal increase in deposits that clients used to make their tax payments.

Second-quarter title and escrow deposit balances averaged $1.3 billion, compared with $1.3 billion in the second quarter of 2006 and $1.2 billion in the first quarter of this year.

Average securities totaled $2.9 billion in the second quarter of 2007, down $636 million from one year ago and $26 million from the first quarter of 2007. The average duration of total available-for-sale securities at June 30, 2007 was 3.3 years, compared with 3.5 years at the end of the second quarter of 2006.

NONINTEREST INCOME

Noninterest income reached $73.7 million in the second quarter, a 26 percent increase from the same period one year ago. Excluding the acquisitions of Convergent Wealth Advisors and Independence Investments, which closed on May 31, 2006, second-quarter noninterest income grew 10 percent from the same period last year.

At June 30, 2007, noninterest income accounted for 33 percent of City National's total revenue, up from 28 percent at June 30, 2006.

Wealth Management

City National's assets under management or administration grew to $57.3 billion in the second quarter. As a result, trust and investment fees increased 40 percent over the same time last year. Second-quarter brokerage and mutual fund fees grew 14 percent from the second quarter of 2006.

On May 1, 2007, City National completed its acquisition of Convergent Wealth Advisors, a Rockville, Md.-based firm that now manages or advises on assets of $8.2 billion through its wealth management consulting services for individuals and families with average assets of more than $40 million.

Other Noninterest Income

Fee income from international banking services grew 10 percent from the second quarter of 2006 and 17 percent from the first quarter of this year, reflecting increased demand for foreign exchange services and letters of credit.

Income from cash management and deposit transaction fees rose 10 percent from the second quarter of last year, due largely to the sale of additional services. This income was unchanged from the first quarter of 2007.

 At or for the At or for the three months ended three months June 30, ended -------------------- % March 31, % Dollars in millions, 2007 2006 Change 2007 Change ------------------- ---------- ---------- ------ ---------- ------ Trust and Investment Fee Revenue $ 34.8 $ 24.9 40 $ 30.3 15 Brokerage and Mutual Fund Fees 14.0 12.3 14 13.8 1 Assets Under Management (a) 35,849.9 26,617.3 35 27,074.4 32 Total Assets Under Management or Administration (a) 57,328.6 46,963.4 22 48,432.6 18 (a) Excludes $10.5 billion, $9.3 billion, and $9.3 billion of assets under management for an asset manager in which City National held a minority ownership interest as of June 30, 2007, June 30, 2006, and March 31, 2007, respectively.

NONINTEREST EXPENSE

Second-quarter 2007 noninterest expense amounted to $132.9 million, up 11 percent from the second quarter of 2006 and 7 percent from the first quarter of this year. Excluding the acquisitions of Convergent Wealth Advisors, Independence Investments and Business Bank of Nevada, noninterest expense grew 2 percent from the second quarter of last year.

City National's efficiency ratio for the second quarter of 2007 was 57.73 percent, compared with 55.20 percent one year ago and 57.18 percent for the first quarter of this year. The year-over-year increase was due primarily to pressure on core deposits and the continued expansion of City National's fee-based businesses, including the addition of Convergent Wealth Advisors and Independence Investments.

CREDIT QUALITY

Asset quality remains strong. At June 30, 2007, nonaccrual loans were $22.3 million, compared with $15 million at the same time last year and $23.4 million in the first quarter of 2007. Net loan charge-offs were $2.3 million in the second quarter of 2007, compared with net recoveries of $1.2 million in both the second quarter of 2006 and the first quarter of this year.

City National made no provision for credit losses in the second quarter. The company's loan-loss allowance methodology takes into account many quantitative and qualitative factors, including asset quality, credit risk, loan growth and economic conditions. At June 30, 2007, the allowance for loan and lease losses was $157.8 million, or 1.43 percent of total loans.

INCOME TAXES

The company's second-quarter 2007 effective tax rate was 37 percent, compared with 37.5 percent in the second quarter of last year. The effective rate for the first quarter of this year was 36.8 percent.

2007 OUTLOOK

In light of its second-quarter performance, City National's management continues to expect earnings per share this year to grow at a rate of between 3 percent and 5 percent as compared with 2006.

CAPITAL LEVELS

City National remains well capitalized. Total risk-based capital and Tier 1 risk-based capital ratios at June 30, 2007 were 12.28 percent and 9.82 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 June 30, 2007 was 7.97 percent, well above the regulatory minimum ratio of 5 percent.

Total risk-based capital, Tier 1 risk-based capital and the Tier 1 leverage ratios at March 31, 2007 were 13.12 percent, 10.62 percent and 8.59 percent, respectively.

The period-end ratio of shareholders' equity to total assets at June 30, 2007 was 10.26 percent, compared to 9.66 percent at the same time last year, and 10.42 percent at March 31, 2007.

City National adopted FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48), as of January 1, 2007. As a result of the implementation of FIN 48, the company recognized a $28 million increase in the reserve for contingent tax liabilities, which was accounted for as a reduction to the January 1, 2007 balance of retained earnings.

STOCK REPURCHASE

During the second quarter of 2007, City National repurchased 16,500 of its outstanding shares at an average cost per share of $74.74. During the first two quarters of this year, it bought back 279,500 shares at an average cost of $72.27. The company is currently authorized and intends to repurchase an additional 778,200 shares, subject to market conditions.

CONFERENCE CALL

City National Corporation will host a conference call this afternoon to discuss results for the second quarter of 2007. 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 (866) 713-8395 and enter pass code 30224089. A listen-only live broadcast of the call also will be available on the investor relations page of the company's Website at www.cnb.com. There, it will be archived and available for 12 months.

ABOUT CITY NATIONAL

City National Corporation's wholly owned subsidiary, City National Bank, provides banking, investment and trust services through 62 offices, including 15 full-service regional centers, in Southern California, the San Francisco Bay Area, Nevada and New York City. The company and its nine investment affiliates manage or administer $57.3 billion in client assets, including $35.8 billion under direct management.

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

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 interest rates, (2) significant changes in banking laws or regulations, (3) increased competition in the company's markets, (4) other-than-expected credit losses due to business losses, real estate cycles or other economic events, (5) earthquake or other natural disasters affecting the condition of real estate collateral, (6) the effect of acquisitions and integration of acquired businesses and de novo branching efforts, (7) the impact of changes in regulatory, judicial or legislative tax treatment of business transactions, (8) changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies, and (9) general business and economic conditions, including movements in interest rates, the slope of the yield curve and changes in business formation and growth, commercial real estate development and real estate prices.

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

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

 CITY NATIONAL CORPORATION FINANCIAL HIGHLIGHTS (unaudited) Three Months ----------------------------- For The Period Ended June 30, 2007 2006 % Change ------------------------------------ ----------------------------- Per Common Share Net Income Basic $ 1.22 $ 1.20 2 Diluted 1.19 1.16 3 Dividends 0.46 0.41 12 Book value Results of Operations: (In millions) Interest income $ 226 $ 206 10 Interest expense 73 52 40 ------- ------- Net interest income 153 154 (1) Net interest income (Fully taxable-equivalent) 157 158 - Total revenue 227 213 7 Provision for credit losses - (1) (100) Net income 59 59 1 Financial Ratios: Performance Ratios: Return on average assets 1.54% 1.59% Return on average shareholders' equity 14.79 16.20 Period-end shareholders' equity to period-end assets - -- Net interest margin 4.47 4.65 Efficiency ratio 57.73 55.20 Asset Quality Ratios: Net (charge-offs)/recoveries to Average total loans (annualized) (0.08)% 0.05% Average Balances: (In millions) Loans $11,011 $ 9,903 11 Interest-earning assets 14,129 13,627 4 Assets 15,453 14,782 5 Core deposits 10,503 10,279 2 Deposits 12,570 11,931 5 Interest-bearing liabilities 8,112 7,309 11 Shareholders' equity 1,604 1,454 10 Six Months ----------------------------- 2007 2006 % Change ----------------------------- Per Common Share Net Income Basic $ 2.39 $ 2.36 1 Diluted 2.34 2.28 3 Dividends 0.92 0.82 12 Book value 33.27 29.05 15 Results of Operations: (In millions) Interest income $ 440 $ 404 9 Interest expense 140 98 43 -------- -------- Net interest income 300 306 (2) Net interest income (Fully taxable-equivalent) 309 314 (2) Total revenue 440 420 5 Provision for credit losses - (1) (100) Net income 116 116 - Financial Ratios: Performance Ratios: Return on average assets 1.54% 1.58% Return on average shareholders' equity 14.94 15.94 Period-end shareholders' equity to period-end assets 10.26 9.66 Net interest margin 4.48 4.64 Efficiency ratio 57.46 55.00 Capital Adequacy Ratios (Period end): Tier 1 leverage 7.97 8.38 Tier 1 risk-based capital 9.82 11.20 Total risk-based capital 12.28 14.26 Asset Quality Ratios: Allowance for loan and lease losses to: Total loans 1.43% 1.60% Nonaccrual loans 707.58 1,050.47 Nonperforming assets to: Total loans and nonperforming assets 0.20 0.15 Total assets 0.14 0.10 Net (charge-offs)/recoveries to Average total loans (annualized) (0.02)% 0.08% Average Balances: (In millions) Loans $10,784 $ 9,765 10 Interest-earning assets 13,896 13,663 2 Assets 15,146 14,804 2 Core deposits 10,275 10,306 - Deposits 12,245 11,760 4 Interest-bearing liabilities 7,861 7,338 7 Shareholders' equity 1,562 1,467 6 Period-End Balances: (In millions) Loans 11,019 $ 9,822 12 Assets 15,796 14,476 9 Core deposits 10,836 10,152 7 Deposits 13,130 11,979 10 Shareholders' equity 1,621 1,398 16 Wealth Management: (In millions) (a) Assets under management 35,850 $ 26,617 35 Assets under management or administration 57,329 46,963 22 (a) Excludes $10.5 billion and $9.3 billion of assets under management for an asset manager in which City National held a minority ownership interest as of June 30, 2007 and June 30, 2006, respectively. CITY NATIONAL CORPORATION CONSOLIDATED STATEMENTS OF INCOME (unaudited) Three Months Ended June 30, (Dollars in thousands ------------------------------ except per share data) 2007 2006 % Change -------------------------------------- ------------------------------ Interest income $225,985 $206,204 10 Interest expense 72,921 52,206 40 -------- -------- Net Interest Income 153,064 153,998 (1) Provision for Credit Losses - (610) (100) Noninterest Income Trust and investment fees 34,823 24,909 40 Brokerage and mutual fund fees 13,958 12,269 14 Cash management and deposit transaction fees 8,472 7,691 10 International services 7,562 6,870 10 Bank-owned life insurance 761 677 12 Other service charges and fees 7,307 6,888 6 Loss on sale of loans and other assets - -- NM Gain (loss) on sale of securities 866 (716) (221) -------- -------- Total noninterest income 73,749 58,588 26 Noninterest Expense Salaries and employee benefits 80,904 73,718 10 Net occupancy of premises 10,362 9,460 10 Legal and professional fees 9,318 9,190 1 Information services 5,243 4,571 15 Depreciation 5,122 4,662 10 Amortization of intangibles 2,623 1,974 33 Marketing and advertising 5,783 4,990 16 Office services 2,938 2,549 15 Equipment 797 623 28 Minority interest expense 2,325 1,213 92 Other 7,446 6,222 20 -------- -------- Total noninterest expense 132,861 119,172 11 -------- -------- Income Before Taxes 93,952 94,024 (0) Applicable Income Taxes 34,799 35,283 (1) -------- -------- Net Income $ 59,153 $ 58,741 1 ======== ======== Other Data: Earnings per common share - basic $ 1.22 $ 1.20 2 Earnings per common share - diluted $ 1.19 $ 1.16 3 Dividends paid per common share $ 0.46 $ 0.41 12 Dividend payout ratio 38.22% 34.43% 11 Return on average assets 1.54% 1.59% (4) Return on average shareholders' equity 14.79% 16.20% (9) Net interest margin (Fully taxable-equivalent) 4.47% 4.65% (4) Full-time equivalent employees 2,903 2,648 10 Six Months Ended June 30, ------------------------------ 2007 2006 % Change ------------------------------------- ------------------------------ Interest income $440,249 $404,396 9 Interest expense 139,893 97,992 43 -------- -------- Net Interest Income 300,356 306,404 (2) Provision for Credit Losses - (610) (100) Noninterest Income Trust and investment fees 65,077 46,683 39 Brokerage and mutual fund fees 27,738 23,953 16 Cash management and deposit transaction fees 16,943 15,755 8 International services 14,025 12,859 9 Bank-owned life insurance 1,385 1,611 (14) Other service charges and fees 13,467 12,665 6 Loss on sale of loans and other assets (46) - NM Gain (loss) on sale of securities 1,135 (8) NM -------- -------- Total noninterest income 139,724 113,518 23 Noninterest Expense Salaries and employee benefits 158,888 145,334 9 Net occupancy of premises 19,820 18,472 7 Legal and professional fees 18,641 18,662 (0) Information services 10,242 9,027 13 Depreciation 10,122 9,322 9 Amortization of intangibles 4,253 3,865 10 Marketing and advertising 9,781 9,006 9 Office services 5,685 5,240 8 Equipment 1,515 1,255 21 Minority interest expense 4,401 2,441 80 Other 13,352 11,871 12 -------- -------- Total noninterest expense 256,700 234,495 9 -------- -------- Income Before Taxes 183,380 186,037 (1) Applicable Income Taxes 67,682 70,063 (3) -------- -------- Net Income $115,698 $115,974 (0) ======== ======== Other Data: Earnings per common share - basic $ 2.39 $ 2.36 1 Earnings per common share - diluted $ 2.34 $ 2.28 3 Dividends paid per common share $ 0.92 $ 0.82 12 Dividend payout ratio 38.65% 35.03% 10 Return on average assets 1.54% 1.58% (2) Return on average shareholders' equity 14.94% 15.94% (6) Net interest margin (Fully taxable-equivalent) 4.48% 4.64% (3) CITY NATIONAL CORPORATION CONSOLIDATED QUARTERLY STATEMENTS OF INCOME (unaudited) 2007 ----------------------------------- (Dollars in thousands Second First Year to except per share data) Quarter Quarter Date --------------------------- --------- --------- --------- Interest Income $ 225,985 $ 214,264 $ 440,249 Interest Expense 72,921 66,972 139,893 --------- --------- --------- Net Interest Income 153,064 147,292 300,356 Provision for Credit Losses - -- - Noninterest Income Trust and investment fees 34,823 30,254 65,077 Brokerage and mutual fund fees 13,958 13,780 27,738 Cash management and deposit transaction fees 8,472 8,471 16,943 International services 7,562 6,463 14,025 Bank-owned life insurance 761 624 1,385 Other service charges and fees 7,307 6,160 13,467 Loss on sale of loans and other assets - (46) (46) Gain on sale of securities 866 269 1,135 --------- --------- --------- Total noninterest income 73,749 65,975 139,724 Noninterest Expense Salaries and employee benefits 80,904 77,984 158,888 Net occupancy of premises 10,362 9,458 19,820 Legal and professional fees 9,318 9,323 18,641 Information services 5,243 4,999 10,242 Depreciation 5,122 5,000 10,122 Amortization of intangibles 2,623 1,630 4,253 Marketing and advertising 5,783 3,998 9,781 Office services 2,938 2,747 5,685 Equipment 797 718 1,515 Minority interest expense 2,325 2,076 4,401 Other 7,446 5,906 13,352 --------- --------- --------- Total noninterest expense 132,861 123,839 256,700 --------- --------- --------- Income Before Taxes 93,952 89,428 183,380 Applicable Income Taxes 34,799 32,883 67,682 --------- --------- --------- Net Income $ 59,153 $ 56,545 $ 115,698 ========= ========= ========= Other Data: Earnings per common share - basic $ 1.22 $ 1.18 $ 2.39 Earnings per common share - diluted $ 1.19 $ 1.15 $ 2.34 Dividends paid per common share $ 0.46 $ 0.46 $ 0.92 Dividend payout ratio 38.22% 39.11% 38.65 Return on average assets 1.54% 1.55% 1.54 Return on average shareholders' equity 14.79% 15.10% 14.94 Net interest margin (Fully taxable-equivalent) 4.47% 4.49% 4.48 Full-time equivalent employees 2,903 2,800 CITY NATIONAL CORPORATION CONSOLIDATED QUARTERLY STATEMENTS OF INCOME (unaudited) (Dollars in 2006 thousands ------------------------------------------------ except per Fourth Third Second First Full share data) Quarter Quarter Quarter Quarter Year ---------------- -------- -------- -------- -------- -------- Interest Income $213,551 $208,347 $206,204 $198,192 $826,294 Interest Expense 62,788 59,625 52,206 45,786 220,405 -------- -------- -------- -------- -------- Net Interest Income 150,763 148,722 153,998 152,406 605,889 Provision for Credit Losses - -- (610) - (610) Noninterest Income Trust and investment fees 30,777 30,002 24,909 21,774 107,462 Brokerage and mutual fund fees 13,309 13,096 12,269 11,684 50,358 Cash management and deposit transaction fees 7,909 7,967 7,691 8,064 31,631 International services 6,486 6,829 6,870 5,989 26,174 Bank-owned life insurance 700 685 677 934 2,996 Other service charges and fees 6,725 6,303 6,888 5,777 25,693 Gain on sale of loans and other assets 2,482 268 - -- 2,750 Gain (loss) on sale of securities (4,130) (362) (716) 708 (4,500) -------- -------- -------- -------- -------- Total noninterest income 64,258 64,788 58,588 54,930 242,564 Noninterest Expense Salaries and employee benefits 74,499 75,318 73,718 71,616 295,151 Net occupancy of premises 11,562 10,207 9,460 9,012 40,241 Legal and professional fees 10,084 9,157 9,190 9,472 37,903 Information services 5,138 4,932 4,571 4,456 19,097 Depreciation 4,908 4,832 4,662 4,660 19,062 Amortization of intangibles 1,456 (37) 1,974 1,891 5,284 Marketing and advertising 5,153 4,495 4,990 4,016 18,654 Office services 2,888 2,623 2,549 2,691 10,751 Equipment 1,043 514 623 632 2,812 Minority interest expense 1,709 1,808 1,213 1,228 5,958 Other 8,573 6,820 6,222 5,649 27,264 -------- -------- -------- -------- -------- Total noninterest expense 127,013 120,669 119,172 115,323 482,177 -------- -------- -------- -------- -------- Income Before Taxes 88,008 92,841 94,024 92,013 366,886 Applicable Income Taxes 29,452 33,847 35,283 34,781 133,363 -------- -------- -------- -------- -------- Net Income $ 58,556 $ 58,994 $ 58,741 $ 57,232 $233,523 ======== ======== ======== ======== ======== Other Data: Earnings per common share - basic $ 1.23 $ 1.23 $ 1.20 $ 1.16 $ 4.82 Earnings per common share - diluted $ 1.19 $ 1.20 $ 1.16 $ 1.12 $ 4.66 Dividends paid per common share $ 0.41 $ 0.41 $ 0.41 $ 0.41 $ 1.64 Dividend payout ratio 33.55% 33.64% 34.43% 35.65% 34.31% Return on average assets 1.58% 1.61% 1.59% 1.57% 1.59% Return on average shareholders' equity 15.77% 16.30% 16.20% 15.68% 15.99% Net interest margin (Fully taxable- equivalent) 4.51% 4.53% 4.65% 4.62% 4.58% Full-time equivalent employees 2,670 2,672 2,648 2,570 CITY NATIONAL CORPORATION CONSOLIDATED PERIOD END BALANCE SHEET (unaudited) 2007 ---------------------------- Second First (In thousands) Quarter Quarter --------------------------------------- ------------ ------------ Assets Cash and due from banks $ 513,463 $ 494,231 Federal funds sold 170,000 210,000 Due from banks - interest-bearing 139,539 77,214 Securities-available-for-sale 2,798,538 2,903,546 Trading account securities 117,456 35,981 Loans: Commercial 4,158,131 4,030,601 Commercial real estate mortgages 1,947,218 1,877,695 Residential mortgages 3,009,546 2,895,516 Real estate construction 1,309,322 1,263,059 Equity lines of credit 409,505 388,279 Installment 185,112 194,448 ------------ ------------ Total loans 11,018,834 10,649,598 Allowance for loan and lease losses (157,849) (161,005) ------------ ------------ Net loans 10,860,985 10,488,593 Premises and equipment, net 106,672 103,259 Goodwill and other intangibles 518,918 420,197 Other assets 570,525 531,026 ------------ ------------ Total assets $ 15,796,096 $ 15,264,047 ============ ============ Liabilities: Deposits: Noninterest-bearing $ 5,926,048 $ 5,690,413 Interest-bearing 7,204,357 6,915,968 ------------ ------------ Total deposits 13,130,405 12,606,381 Federal funds purchased and securities sold under repurchase agreements 269,938 310,738 Other short-term borrowed funds 72,818 50,667 Subordinated debt 266,962 270,174 Other long-term debt 219,282 224,079 Minority interest 29,029 28,285 Other liabilities 186,212 183,185 ------------ ------------ Total liabilities 14,174,646 13,673,509 Shareholders' Equity Common stock 50,725 50,803 Additional paid-in capital 419,377 421,990 Retained earnings 1,307,638 1,271,092 Accumulated other comprehensive loss (50,609) (30,940) Treasury shares (105,681) (122,407) ---------------------------- Total shareholders' equity 1,621,450 1,590,538 ---------------------------- Total liabilities and shareholders' equity $ 15,796,096 $ 15,264,047 ============ ============ CITY NATIONAL CORPORATION CONSOLIDATED PERIOD END BALANCE SHEET (unaudited) 2006 -------------------------------------------------- Fourth Third Second First (In thousands) Quarter Quarter Quarter Quarter -------------- ----------- ----------- ----------- ----------- Assets Cash and due from banks $ 423,114 $ 457,396 $ 467,076 $ 457,156 Federal funds sold 127,000 3,300 1,900 - Due from banks - interest- bearing 60,940 65,323 50,416 48,890 Securities- available-for -sale 2,954,372 3,175,230 3,211,590 3,850,173 Trading account securities 147,907 116,870 123,418 57,353 Loans: Commercial 4,084,377 3,782,781 3,738,361 3,698,614 Commercial real estate mortgages 1,708,512 1,766,718 1,810,618 1,779,464 Residential mortgages 2,869,775 2,830,761 2,769,340 2,700,966 Real estate construction 1,117,559 1,057,397 945,650 860,749 Equity lines of credit 404,657 384,830 364,312 339,348 Installment 201,125 197,871 193,474 188,262 ----------- ----------- ----------- ----------- Total loans 10,386,005 10,020,358 9,821,755 9,567,403 Allowance for loan and lease losses (155,342) (159,063) (157,580) (156,482) ----------- ----------- ----------- ----------- Net loans 10,230,663 9,861,295 9,664,175 9,410,921 Premises and equipment, net 94,745 88,582 84,802 84,884 Goodwill and other intangibles 287,561 298,471 298,004 283,642 Other assets 558,079 549,152 574,547 545,227 ----------- ----------- ----------- ----------- Total assets $14,884,381 $14,615,619 $14,475,928 $14,738,246 =========== =========== =========== =========== Liabilities: Deposits: Noninterest- bearing $ 6,002,068 $ 5,639,811 $ 5,880,630 $ 5,945,485 Interest- bearing 6,170,748 6,252,206 6,098,200 5,963,044 ----------- ----------- ----------- ----------- Total deposits 12,172,816 11,892,017 11,978,830 11,908,529 Federal funds purchased and securities sold under repurchase agreements 422,903 506,962 234,995 526,920 Other short-term borrowed funds 97,525 72,426 143,724 151,522 Subordinated debt 269,848 270,522 266,675 269,785 Other long-term debt 217,569 217,323 209,864 213,819 Minority interest 28,425 28,578 27,985 25,225 Other liabilities 184,380 179,746 215,965 173,056 ----------- ----------- ----------- ----------- Total liabilities 13,393,466 13,167,574 13,078,038 13,268,856 Shareholders Equity Common stock 50,719 50,729 50,735 50,693 Additional paid-in capital 412,248 404,163 402,476 399,974 Retained earnings 1,264,697 1,225,784 1,186,637 1,148,116 Accumulated other comprehensive loss (41,386) (46,400) (86,931) (73,248) Treasury shares (195,363) (186,231) (155,027) (56,145) ----------- ----------- ----------- ----------- Total shareholders' equity 1,490,915 1,448,045 1,397,890 1,469,390 ----------- ----------- ----------- ----------- Total liabilities and shareholders' equity $14,884,381 $14,615,619 $14,475,928 $14,738,246 =========== =========== =========== =========== CITY NATIONAL CORPORATION CREDIT LOSS EXPERIENCE (unaudited) 2007 ------------------------------ Second First Year To (Dollars in thousands) Quarter Quarter Date ------------------------------------------------ -------- -------- Allowance for Loan and Lease Losses Balance at beginning of period $161,005 $155,342 $155,342 Allowance of acquired institution - 4,513 4,513 Net (charge-offs)/recoveries: Commercial (2,218) 1,247 (971) Commercial real estate mortgages - -- - Residential mortgages - -- - Real estate construction 17 18 35 Equity lines of credit - -- - Installment (61) (26) (87) -------- -------- -------- Total net (charge-offs)/recoveries (2,262) 1,239 (1,023) Provision for credit losses/transfers (894) (89) (983) -------- -------- -------- Balance at end of period $157,849 $161,005 $157,849 ======== ======== ======== Net (Charge-Offs)/Recoveries to Average Total Loans: (annualized) Commercial (0.21)% 0.12% (0.05)% Commercial real estate mortgages 0.00% 0.00% 0.00% Residential mortgage 0.00% 0.00% 0.00% Real estate construction 0.01% 0.01% 0.01% Equity lines of credit 0.00% 0.00% 0.00% Installment (0.13)% (0.06)% (0.09)% Total loans (0.08)% 0.05% (0.02)% Reserve for Off-Balance Sheet Credit Commitments Balance at beginning of period $ 17,005 $ 16,424 $ 16,424 Recovery of prior charge-off (67) - (67) Reserve of acquired institution - 492 492 Provision for credit losses/transfers 894 89 983 -------- -------- -------- Balance at end of period $ 17,832 $ 17,005 $ 17,832 ======== ======== ======== 2006 ------------------------------------------------ (Dollars Fourth Third Second First Full in thousands) Quarter Quarter Quarter Quarter Year -------- -------- -------- -------- -------- Allowance for Loan and Lease Losses Balance at beginning of period $159,063 $157,580 $156,482 $153,983 $153,983 Allowance of acquired institution - -- - -- - Net (charge-offs)/ recoveries: Commercial (2,665) 1,912 1,122 1,792 2,161 Commercial real estate mortgages 356 - 11 844 1,211 Residential mortgages - -- - -- - Real estate construction (666) 18 17 16 (615) Equity lines of credit - (11) - -- (11) Installment 26 10 11 4 51 -------- -------- -------- -------- -------- Total net (charge- offs)/recoveries (2,949) 1,929 1,161 2,656 2,797 Provision for credit losses/transfers (772) (446) (63) (157) (1,438) -------- -------- -------- -------- -------- Balance at end of period $155,342 $159,063 $157,580 $156,482 $155,342 ======== ======== ======== ======== ======== Net (Charge-Offs)/ Recoveries to Average Total Loans:(annualized) Commercial (0.27)% 0.20% 0.11% 0.19% 0.06% Commercial real estate mortgages 0.08% 0.00% 0.00% 0.19% 0.07% Residential mortgage 0.00% 0.00% 0.00% 0.00% 0.00% Real estate construction (0.24)% 0.01% 0.01% 0.01% (0.06)% Equity lines of credit 0.00% (0.01)% 0.00% 0.00% (0.00)% Installment 0.05% 0.02% 0.02% 0.01% 0.03% Total loans (0.11)% 0.08% 0.05% 0.11% 0.03% Reserve for Off-Balance Sheet Credit Commitments Balance at beginning of period $ 15,652 $ 15,206 $ 15,753 $ 15,596 $ 15,596 Reserve of acquired institution - -- - -- - Provision for credit losses/transfers 772 446 (547) 157 828 -------- -------- -------- -------- -------- Balance at end of period $ 16,424 $ 15,652 $ 15,206 $ 15,753 $ 16,424 ======== ======== ======== ======== ======== CITY NATIONAL CORPORATION NONPERFORMING ASSETS (unaudited) 2007 ------------------ Second First (Dollars in thousands) Quarter Quarter ---------------------------------------------- ------- ------- Nonaccrual Loans Commercial $ 3,998 $ 7,024 Commercial real estate mortgages 4,732 4,783 Residential mortgages 378 - Real estate construction 12,566 11,199 Equity lines of credit 452 362 Installment 182 49 ------- ------- Total nonaccrual loans 22,308 23,417 Other Nonperforming Assets - -- ------- ------- Total nonperforming assets $22,308 $23,417 ======= ======= Loans 90 Days or More Past Due on Accrual Status $ - $ 199 Allowance for loan and lease losses as a percentage of: Nonaccrual loans 707.58% 687.55% Total nonperforming assets 707.58% 687.55% Total loans 1.43% 1.51% Nonaccrual loans as a percentage of total loans 0.20% 0.22% Nonperforming assets as a percentage of: Total loans and other nonperforming assets 0.20% 0.22% Total assets 0.14% 0.15% 2006 --------------------------------------- Fourth Third Second First (Dollars in thousands) Quarter Quarter Quarter Quarter ---------------------------- --------- --------- --------- --------- Nonaccrual Loans Commercial $ 2,977 $ 10,416 $ 6,691 $ 5,642 Commercial real estate mortgages 4,849 8,094 3,644 923 Residential mortgages - -- - -- Real estate construction 12,678 - 4,617 7,492 Equity lines of credit - -- - -- Installment 379 269 49 498 --------- --------- --------- --------- Total nonaccrual loans 20,883 18,779 15,001 14,555 Other Nonperforming Assets - -- - -- --------- --------- --------- --------- Total nonperforming assets $ 20,883 $ 18,779 $ 15,001 $ 14,555 ========= ========= ========= ========= Loans 90 Days or More Past Due on Accrual Status $ 337 $ 27 $ 18 $ - Allowance for loan and lease losses as a percentage of: Nonaccrual loans 743.88% 847.03% 1,050.47% 1,075.11% Total nonperforming assets 743.88% 847.03% 1,050.47% 1,075.11% Total loans 1.50% 1.59% 1.60% 1.64% Nonaccrual loans as a percentage of total loans 0.20% 0.19% 0.15% 0.15% Nonperforming assets as a percentage of: Total loans and other nonperforming assets 0.20% 0.19% 0.15% 0.15% Total assets 0.14% 0.13% 0.10% 0.10%CITY NATIONAL CORPORATION AVERAGE BALANCES AND RATES (unaudited) 2007 ------------------------------------------------ Second Quarter First Quarter Year to Date -------------- --------------- --------------- (Dollars in Average Average Average Average Average Average millions) Balance Rate Balance Rate Balance Rate --------------- Assets Interest- earning assets Loans Commercial $ 4,275 7.36% $ 4,146 7.25% $ 4,210 7.31% Commercial real estate mortgages 1,932 7.35 1,758 7.38 1,847 7.36 Residential mortgages 2,975 5.49 2,885 5.40 2,930 5.45 Real estate construction 1,234 8.88 1,181 8.73 1,207 8.81 Equity lines of credit 404 7.71 394 7.86 399 7.78 Installment 191 7.51 191 7.64 191 7.57 ------- ----- -------- ----- -------- ----- Total loans 11,011 7.04 10,555 6.98 10,784 7.02 Due from banks - interest- bearing 89 3.39 73 2.97 81 3.20 Federal funds sold and securities purchased under resale agreements 24 5.27 14 5.36 19 5.30 Securities available- for-sale 2,873 4.72 2,917 4.70 2,895 4.71 Trading account securities 72 5.23 54 6.09 63 5.60 Other interest- earning assets 60 6.36 48 5.96 54 6.19 ------- ----- -------- ----- -------- ----- Total interest- earning assets 14,129 6.54 13,661 6.48 13,896 6.51 Allowance for loan and lease losses (162) (157) (160) Cash and due from banks 445 422 434 Other assets 1,041 909 976 ------- ------- ------- Total assets $15,453 $14,836 $15,146 ======= ======= ======= Liabilities and Shareholders' Equity Interest-bearing deposits Interest checking accounts $ 804 0.56% $ 749 0.48% $ 777 0.52% Money market accounts 3,721 3.10 3,419 2.98 3,571 3.04 Savings deposits 149 0.48 155 0.47 152 0.48 Time deposits - under $100,000 274 3.79 232 4.10 253 3.93 Time deposits - $100,000 and over 2,066 4.81 1,872 4.72 1,969 4.77 ------- ----- -------- ----- -------- ----- Total interest- bearing deposits 7,014 3.28 6,427 3.18 6,722 3.23 Federal funds purchased and securities sold under repurchase agreements 486 5.11 582 5.27 534 5.19 Other borrowings 612 6.09 599 6.15 605 6.12 ------- ----- -------- ----- -------- ----- Total interest- bearing liabilities 8,112 3.61 7,608 3.57 7,861 3.59 Noninterest- bearing deposits 5,556 5,489 5,523 Other liabilities 181 220 200 Shareholders' equity 1,604 1,519 1,562 ------- ------- ------- Total liabilities and shareholders' equity $15,453 $14,836 $15,146 ======= ======= ======= Net interest spread 2.93% 2.91% 2.92% ==== ==== ==== Net interest margin 4.47% 4.49% 4.48% ==== ==== ==== Average prime rate 8.25% 8.25% 8.25% ==== ==== ==== CITY NATIONAL CORPORATION AVERAGE BALANCES AND RATES (unaudited) 2006 ----------------------------------------------------- Fourth Quarter Third Quarter Second Quarter --------------- --------------- --------------- (Dollars in Average Average Average millions) Balance Rate Balance Rate Balance Rate --------------- ------- ----- ------- ----- -------- ---- Assets Interest-earning assets Loans Commercial $ 3,955 7.12% $ 3,827 7.05% $ 3,933 6.85% Commercial real estate mortgages 1,759 7.48 1,815 7.45 1,786 7.58 Residential mortgages 2,852 5.40 2,801 5.38 2,737 5.31 Real estate construction 1,087 8.94 1,001 8.98 900 8.88 Equity lines of credit 397 7.86 375 7.91 352 7.63 Installment 195 7.56 194 7.58 195 7.72 ------- ------- ------- Total loans 10,245 6.92 10,013 6.88 9,903 6.79 Due from banks - interest- bearing 68 2.70 61 2.55 46 2.31 Federal funds sold and securities purchased under resale agreements 54 5.28 3 7.13 51 4.77 Securities available- for-sale 3,122 4.64 3,191 4.63 3,529 4.55 Trading account securities 49 5.32 54 5.22 52 6.61 Other interest- earning assets 47 5.64 46 5.45 46 5.40 ------- ------- ------- Total interest- earning assets 13,585 6.35 13,368 6.30 13,627 6.18 Allowance for loan and lease losses (159) (158) (157) Cash and due from banks 407 428 443 Other assets 879 907 869 ------- ------- ------- Total assets $14,712 $14,545 $14,782 ======= ======= ======= Liabilities and Shareholders' Equity Interest-bearing deposits Interest checking accounts $ 762 0.43% $ 706 0.36% $ 757 0.27% Money market accounts 3,252 2.75 3,224 2.57 3,352 2.13 Savings deposits 160 0.48 163 0.41 174 0.37 Time deposits - under $100,000 197 4.07 184 3.73 176 3.16 Time deposits - $100,000 and over 1,969 4.65 1,999 4.56 1,652 4.05 ------- ------- ------- Total interest- bearing deposits 6,340 3.04 6,276 2.93 6,111 2.40 Federal funds purchased and securities sold under repurchase agreements 416 5.24 401 5.26 546 4.93 Other borrowings 554 6.19 558 5.63 652 5.51 ------- ------- ------- Total interest- bearing liabilities 7,310 3.41 7,235 3.27 7,309 2.86 Noninterest- bearing deposits 5,711 5,629 5,820 Other liabilities 218 245 199 Shareholders' equity 1,473 1,436 1,454 ------ ------- ------- Total liabil- ities and shareholders' equity $14,712 $14,545 $14,782 ======= ======= ======= Net interest spread 2.94% 3.03% 3.32% ===== ===== ===== Net interest margin 4.51% 4.53% 4.65% ===== ===== ===== Average prime rate 8.25% 8.25% 7.90% ===== ===== ===== ------------------------------------ First Quarter Year to Date --------------- ---------------- Average Average (Dollars in millions) Balance Rate Balance Rate -------------------------------- ------- ----- ------- ----- Assets Interest-earning assets Loans Commercial $ 3,813 6.62% $ 3,882 6.91% Commercial real estate mortgages 1,772 7.36 1,783 7.47 Residential mortgages 2,666 5.27 2,765 5.34 Real estate construction 843 8.42 958 8.82 Equity lines of credit 334 7.17 365 7.66 Installment 197 7.41 195 7.57 ------- ------- Total loans 9,625 6.59 9,948 6.80 Due from banks - interest- bearing 44 1.98 55 2.43 Federal funds sold and securities purchased under resale agreements 13 4.32 30 5.01 Securities available-for-sale 3,926 4.47 3,439 4.57 Trading account securities 44 5.26 50 5.61 Other interest-earning assets 47 5.23 47 5.43 ------- ------- Total interest-earning assets 13,699 5.98 13,569 6.20 Allowance for loan and lease losses (155) (157) Cash and due from banks 439 429 Other assets 844 875 ------- ------- Total assets $14,827 $14,716 ======= ======= Liabilities and Shareholders' Equity Interest-bearing deposits Interest checking accounts $ 808 0.23% $ 758 0.32% Money market accounts 3,388 1.81 3,304 2.31 Savings deposits 179 0.37 169 0.41 Time deposits - under $100,000 180 2.77 184 3.45 Time deposits - $100,000 and over 1,254 3.40 1,721 4.26 ------- ------- Total interest-bearing deposits 5,809 1.92 6,136 2.59 Federal funds purchased and securities sold under repurchase agreements 809 4.48 542 4.89 Other borrowings 749 5.09 627 5.57 ------- ------- Total interest-bearing liabilities 7,367 2.52 7,305 3.02 Noninterest-bearing deposits 5,779 5,734 Other liabilities 200 216 Shareholders' equity 1,481 1,461 ------- ------- Total liabilities and shareholders' equity $14,827 $14,716 ======= ======= Net interest spread 3.46% 3.18% ===== ===== Net interest margin 4.62% 4.58% ===== ===== Average prime rate 7.43% 7.96% ===== ===== CITY NATIONAL CORPORATION CAPITAL AND CREDIT RATING DATA (unaudited) 2007 ----------------------------- Second First Year To Quarter Quarter Date Per Common Share: ------- ------- ------- ----------------- Shares Outstanding (in thousands): Average - Basic 48,674 47,968 48,323 Average - Diluted 49,837 49,087 49,461 Period-End 48,731 48,602 Book Value $ 33.27 $ 32.73 Price: High $ 78.39 $ 75.39 $ 78.39 Low 72.30 68.00 68.00 Period-end 76.09 73.60 Capital Ratios (Dollars in millions): ----------------------- Risk-based capital Risk-adjusted assets $12,067 $11,618 Tier I capital $ 1,185 $ 1,234 Percentage of risk adjusted assets 9.82% 10.62% Total capital $ 1,481 $ 1,524 Percentage of risk adjusted assets 12.28% 13.12% Tier I leverage ratio 7.97% 8.59% Period-end shareholders' equity to total period-end assets 10.26% 10.42% Period-end tangible shareholders' equity to total period-end tangible assets 7.22% 7.88% Average shareholders' equity to total average assets 10.38% 10.24% 10.31% Average tangible shareholders' equity to total average tangible assets 7.67% 8.18% 7.92% 2006 ----------------------------------------------- Fourth Third Second First Full Quarter Quarter Quarter Quarter Year Per Common Share: ------- ------- ------- ------- ------- ----------------- Shares Outstanding (in thousands): Average - Basic 47,573 47,919 48,957 49,484 48,477 Average - Diluted 49,012 49,318 50,654 51,309 50,063 Period-End 47,492 47,639 48,115 49,535 Book Value $ 31.39 $ 30.40 $ 29.05 $ 29.66 Price: High $ 71.29 $ 68.41 $ 78.25 $ 78.25 $ 78.25 Low 65.34 63.69 60.02 71.95 60.02 Period-end 71.20 67.06 65.09 76.79 Capital Ratios (Dollars in millions): ----------------------- Risk-based capital Risk-adjusted assets $11,411 $10,999 $10,811 $10,473 Tier I capital $ 1,256 $ 1,219 $ 1,211 $ 1,284 Percentage of risk adjusted assets 11.09% 11.09% 11.20% 12.26% Total capital $ 1,544 $ 1,554 $ 1,542 $ 1,614 Percentage of risk adjusted assets 13.60% 14.12% 14.26% 15.41% Tier I leverage ratio 8.81% 8.58% 8.38% 8.85% Period-end share- holders' equity to total period-end assets 10.02% 9.91% 9.66% 9.97% Period-end tangible shareholders' equity to total period-end tangible assets 8.24% 8.03% 7.76% 8.20% Average shareholders' equity to total average assets 10.01% 9.87% 9.84% 9.99% 9.93% Average tangible shareholders' equity to total average tangible assets 8.16% 7.99% 8.04% 8.23% 8.10% Senior Debt Credit Ratings -------------------------- For The Period Ended June 30, 2007 Standard & Moody's Fitch Poor's DBRS ------- ----- ----------- --------- City National Bank Aa3 A- A A (high) City National Corporation A1 A- A- A

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

Conference Call:
Today 2:00 p.m. PDT
866.713.8395
Pass Code: 30224089