LOS ANGELES--(BUSINESS WIRE)--Oct. 11, 2001--

First Nine Months Net Income Up 9 Percent to $107.4 Million

City National Corporation (NYSE: CYN), parent corporation ofwholly owned City National Bank, today reported record net income of$37.5 million for the third quarter of 2001, up 10 percent from $34.2million for the third quarter of 2000 and 3 percent from the secondquarter of 2001. Net income per diluted common share of $0.75increased 7 percent from $0.70 per share in the third quarter of 2000and was slightly above the $0.74 per share in the second quarter of2001.

For the first nine months of 2001, City National Corporation alsoachieved net income of $107.4 million, an increase of 9 percent overnet income of $98.6 million for the first nine months of 2000. Netincome per diluted common share was $2.18, an increase of 7 percentcompared with $2.04 per share in the first nine months of 2000.

Cash net income per diluted common share, which excludes theamortization of core deposit intangibles and goodwill fromacquisitions, rose 8 percent to $0.83 per share, compared with $0.77per share in the third quarter of 2000 and was up slightly comparedwith $0.82 per share in the second quarter of 2001. For the first ninemonths of 2001, cash net income per diluted common share was $2.42, anincrease of 8 percent from $2.25 per share for the first nine monthsof 2000.

"While the ramifications from the events of September 11 areaffecting our nation and economy, in the third quarter City Nationalcontinued to generate meaningful growth in noninterest income, coredeposits and loans to new and existing clients," said Chief ExecutiveOfficer Russell Goldsmith. "In light of the solid growth in our loanportfolio and the economic uncertainties arising from September 11,and even though our total allowance for credit losses is substantial,we added a credit loss provision of $10 million this quarter.Nonetheless, net income grew by 10 percent.

"The Corporation's continuing commitment to productivityimprovement and expense management also contributed to our earningsgrowth and, remarkably, pushed our cash efficiency ratio below 50percent, while we maintained our traditional standards of outstandingservice," Goldsmith said. "The long-term accomplishments and strategicpositioning of City National have enhanced our ability to meet thechallenges and capitalize upon the many opportunities that lie aheadhere in California, the fifth largest economy in the world, where weare better positioned than ever before as California's Premier Privateand Business Bank."

RETURN ON ASSETS/RETURN ON EQUITY

The corporation's return on average assets for the third quarterof 2001 was 1.58 percent, compared with 1.55 percent for the thirdquarter of 2000 and 1.60 percent for the second quarter of 2001. Thereturn on average shareholders' equity was 17.60 percent for the thirdquarter of 2001, compared with 19.63 percent for the prior-year thirdquarter and 18.28 percent for the second quarter of 2001. For thefirst nine months of 2001, the return on average assets was 1.57percent and the return on average shareholders' equity was 17.89percent compared with a 1.58 percent return on average assets and a 20.25 percent return on average shareholders' equity for the firstnine months of 2000. The lower return on average shareholders' equitycompared with a year ago is due primarily to a higher level ofshareholders' equity, which resulted from increased unrealizedsecurities gains and the positive mark-to-market valuation of interestrate swaps treated as cash flow hedges.

On a cash basis (which excludes goodwill and the after-tax impactof nonqualifying core deposit intangibles from average assets andaverage shareholders' equity), the return on average assets in thethird quarter of 2001 was 1.78 percent, compared with 1.75 percent inthe third quarter of 2000, and 1.81 percent for the second quarter of2001. The return on average shareholders' equity on a cash basis was 25.09 percent for the third quarter of 2001, compared with 29.13percent for the prior-year third quarter and 26.40 percent for thesecond quarter of 2001. On a cash basis, for the first nine months of2001, the return on average assets was 1.78 percent and the return onaverage shareholders' equity was 25.60 percent, compared with a 1.79percent return on average assets and 30.09 percent return on averageshareholder's equity for the first nine months of 2000.

ASSETS

Total average assets reached $9.4 billion in the third quarter of2001, up 8 percent from the $8.8 billion in average assets for thethird quarter of 2000 and up 3 percent from the $9.1 billion inaverage assets for the second quarter of 2001. Total assets atSeptember 30, 2001 were $9.8 billion, compared with $8.9 billion atSeptember 30, 2000 and $9.1 billion at June 30, 2001. Loans and, to alesser extent, federal funds sold and securities accounted for theincrease in assets from last year and from the second quarter of 2001.

LOANS

Average loans rose to $6.8 billion for the third quarter of 2001,an increase of 5 percent over the prior-year third quarter. Averagerelationship loans increased $0.7 billion, or 11 percent, this quarterover the year-ago quarter. Conversely, average syndicatednon-relationship loans fell to $101.7 million for the third quarter of2001, down significantly from both the third quarter of 2000, as wellas the second quarter of 2001. This is consistent with the bank'sobjective of reducing its exposure to syndicated non-relationshiploans.

For the first nine months of 2001, average relationship loansincreased 14 percent to $6.5 billion from $5.7 billion for the firstnine months of 2000. The growth in average relationship loans over theyear-ago period was driven primarily by increases in residential firstmortgage loans, real estate mortgage, construction and commercialloans. Compared with the prior-year third quarter averages,residential first mortgage loans rose 19 percent to $1.5 billion from$1.2 billion; real estate mortgage loans rose 12 percent to $1.6billion from $1.4 billion; construction loans rose 25 percent to $0.5billion from $0.4 billion; and commercial loans rose 4 percent to $3.0billion from $2.8 billion.

Total loans at September 30, 2001 were $6.9 billion, compared with$6.4 billion at September 30, 2000, and $6.6 billion at June 30, 2001.

At September 30, 2001, syndicated non-relationship loans totaled$93.4 million, or slightly over 1 percent of the loan portfolio,compared with $110.5 million at June 30, 2001, $191.8 million atDecember 31, 2000, and $334.6 million at September 30, 2000. Theaverage outstanding loan balance in the syndicated non-relationshipportfolio at September 30, 2001 was $2.5 million, which representsjust under half the average commitment amount.

Average relationship loan growth is expected to slow during thefourth quarter of 2001 and will range between 9 percent to 13 percentfor the full year as the performance of the California economy slowsto more closely resemble the economic results of the nation.

DEPOSITS

Average deposits during the third quarter of 2001 increased 7percent to $6.9 billion over the third quarter of 2000, but wereslightly lower than the second quarter of 2001. During the first ninemonths of 2001, average deposits increased 12 percent to $6.9 billion,compared with $6.2 billion for the first nine months of 2000.

During the third quarter of 2001, average core deposits, whichprovide a stable source of low cost funding, were $5.6 billion, anincrease of 11 percent over the $5.0 billion in the third quarter of2000, and were slightly higher than the second quarter of 2001.Average core deposits represented 80 percent of the total averagedeposit base for the quarter. For the first nine months of 2001,average core deposits were $5.4 billion compared with $4.9 billion forthe first nine months of 2000, an increase of 11 percent. Internalgrowth, increased sales of cash management products and a reduction inthe earnings credit on analyzed deposit accounts resulting from lowerinterest rates all contributed to the growth in deposits from lastyear.

Deposits totaled $7.4 billion at September 30, 2001, compared with$6.9 billion at September 30, 2000, and $7.1 billion at June 30, 2001.

Management expects average deposit growth in 2001, compared with2000, to be in the range of 8 percent to 12 percent.

NET INTEREST INCOME

Net interest income on a fully taxable-equivalent basis rose 7percent to $114.7 million in the third quarter of 2001, compared with$107.3 million for the third quarter of 2000. Third quarter 2001 netinterest income was 6 percent higher than the $108.4 million recordedfor the second quarter of 2001. Fully taxable-equivalent net interestincome for the first nine months of 2001 was $331.2 million, anincrease of 7 percent over $310.4 million for the first nine months of2000. Interest income recovered on nonaccrual and charged-off loansincluded above was $1.4 million in the third quarter of 2001, comparedwith $0.8 million for the third quarter a year ago and $0.6 millionfor the second quarter of 2001. Interest recovered in the first ninemonths of 2001 was $3.6 million compared with $3.1 million for thefirst nine months of 2000.

The fully taxable-equivalent net interest margin in the thirdquarter of 2001 was 5.28 percent, compared with 5.32 percent for thethird quarter of 2000 and 5.23 percent for the second quarter of 2001.The net interest margin for the first nine months of 2001 was 5.30percent compared with 5.46 percent for the first nine months of 2000.The Bank's prime rate was 6.00 percent at September 30, 2001, comparedwith 9.50 percent a year earlier and 6.75 percent at June 30, 2001.The prime rate was further reduced to 5.50 percent effective October3, 2001.

Management expects the net interest margin for 2001 will beslightly less than the 5.30 percent year-to-date margin, as timedeposits and interest rate swaps re-price on a lagged basis. Thisexpectation is contingent on rates remaining relatively stable for therest of the year.

NONINTEREST INCOME

Reflecting the success of strategic initiatives to grow feeincome, core noninterest income continued its strong, across-the-boardgrowth, rising 18 percent to $31.7 million in the third quarter of2001, from $26.8 million in the third quarter of 2000, and up slightlyfrom the $31.5 million for the second quarter of 2001. Corenoninterest income of $92.7 million for the first nine months of 2001increased 19 percent compared with the $77.6 million for the firstnine months of 2000.

Trust and investment fee revenue benefited from the acquisition ofReed, Conner & Birdwell, which closed at year-end 2000, and anincrease in new business from City National Investments (CNI). Assetsunder administration totaled $18.3 billion at September 30, 2001,including $7.2 billion under management, compared with $16.7 billionand $5.3 billion, respectively, at September 30, 2000, and $18.5billion and $7.2 billion, respectively, at June 30, 2001. Assets undermanagement included $1.2 billion of assets managed by Reed, Conner &Birdwell at September 30, 2001 and June 30, 2001. The remainingyear-over-year increase in assets under management is primarilyattributable to increased participation in the CNI Charter Funds, CityNational's family of mutual funds.

The other key component in the growth of noninterest income iscash management and deposit transaction fees. These increased as theresult of strong growth in deposits, in many cases attributable tohigher sales of new online cash management products.

Gains (losses) on the sale of assets and the repurchase of debtand gains on the sale of securities amounted to $0.6 million for thethird quarter of 2001, compared with a $l.7 million gain for the sameperiod a year earlier, and gains of $1.4 million for the secondquarter of 2001. For the first nine months of 2001, $3.7 million ingains on the sale of assets and the repurchase of debt and gains onthe sale of securities were realized, compared with $2.0 million forthe first nine months of 2000.

Noninterest income for the third quarter and first nine months of2001 was 23 percent of total revenues compared with 22 percent and 21percent, respectively, for the third quarter and first nine months of2000.

Management expects growth in noninterest income to range from 15percent to 20 percent for 2001.

NONINTEREST EXPENSE

Noninterest expense was $77.3 million in the third quarter of2001, up 5 percent from $74.0 million for the third quarter of 2000,and down 2 percent from $79.0 million for the second quarter of 2001.The increase over the year-ago quarter was primarily the result of thecorporation's growth, including expenses related to Reed, Conner &Birdwell and additional colleagues. Noninterest expense for the firstnine months of 2001 was $232.9 million, an increase of 6 percentcompared with $219.1 million for the first nine months of 2000.

The corporation's cash efficiency ratio for the third quarter of2001 improved to 49.49 percent, from 51.23 percent for the thirdquarter of 2000. The 3 percent improvement over the prior-year quarterand the 6 percent improvement from the 52.60 percent for the secondquarter of 2001 is due to both increased revenues and thecorporation's ongoing efforts to improve efficiency and productivity.For the first nine months of 2001, the cash efficiency ratio was 51.34percent compared with 53.06 percent for the first nine months of 2000.

Management currently anticipates that 2001 noninterest expensewill increase between 5 percent and 8 percent from 2000.

INCOME TAXES

The effective tax rate, was 33.2 percent for the third quarter,and 33.1 percent for the first nine months of 2001. This compares with

  • 33.7 percent for the third quarter and 34.4 percent for the first ninemonths of 2000. The lower tax rates, compared with prior periods, aredue primarily to the formation of a special purpose subsidiary forcapital-raising activities during the second quarter of 2001. Thecorporation continues to evaluate its long-term plan for itsregistered investment company subsidiary. Management currentlyanticipates its effective tax rate may fall within a range of 32.5percent to 33.5 percent for 2001.

CREDIT QUALITY

Net loan charge-offs were $6.6 million and $8.3 million for thethird quarters of 2001 and 2000, respectively. Net loan charge-offsfor the second quarter of 2001 were $7.3 million. For the first ninemonths of 2001 and 2000, net loan charge-offs were $22.2 million and$15.8 million, respectively.

Relationship loan net charge-offs were $3.9 million for the thirdquarter of 2001, compared with $3.6 million for the third quarter of2000 and $4.3 million for the second quarter of 2001. Third quarter2001 syndicated non-relationship loan net charge-offs were $2.7million, compared with $4.7 million in the third quarter of 2000, and$3.0 million for the second quarter of 2001.

As a percentage of average loans, annualized net charge-offs were

  • 0.39 percent and 0.51 percent for the third quarters of 2001 and 2000,respectively. Relationship loan annualized net charge-offs were 0.23percent of average relationship loans outstanding for the thirdquarter of 2001, compared with 0.24 percent for the third quarter of2000.

Total nonperforming assets (nonaccrual loans and ORE) were $40.1million, or 0.59 percent of total loans and ORE, at September 30,2001, compared with $47.0 million, or 0.73 percent, at September 30,2000, and $38.3 million, or 0.58 percent, at June 30, 2001.Nonperforming assets increased 5 percent from the second quarter 2001,but decreased 36 percent from year-end 2000.

Total nonperforming relationship assets were $31.5 million, or

  • 0.47 percent of total relationship loans and ORE, at September 30,2001, compared with $29.9 million, or 0.49 percent, at September 30,2000, and $30.2 million, or 0.47 percent, at June 30, 2001, and do notcontain any concentration of credits within a specific industrysector. Total syndicated non-relationship loans on nonaccrual statustotaled $8.6 million at September 30, 2001 and consisted of 3 loans,compared with 2 loans totaling $8.1 million that were outstanding atJune 30, 2001.

The corporation recorded a provision for credit losses of $10.0million and $24.0 million for the third quarter and first nine monthsof 2001, respectively, compared with $7.0 million and $11.0 millionfor the third quarter and first nine months of 2000. The provision forcredit losses in the second quarter of 2001 was $6.5 million. Theprovision for credit losses primarily reflects the levels of net loancharge-offs and nonaccrual loans, as well as management's ongoingassessment of the credit quality of the portfolio and growth of theloan portfolio during the quarter.

The allowance for credit losses at September 30, 2001 totaled$137.2 million, or 2.0 percent of outstanding loans. This compareswith an allowance of $139.2 million, or 2.17 percent of outstandingloans, at September 30, 2000, and an allowance of $133.9 million, or

  • 2.04 percent of outstanding loans at June 30, 2001. The allowance forcredit losses as a percentage of nonaccrual loans was 342 percent atSeptember 30, 2001, compared with 297 percent at September 30, 2000and 361 percent at June 30, 2001. Management believes the allowancefor credit losses is adequate to cover risks inherent in the portfolioat September 30, 2001.

The provision for credit losses to be taken in the fourth quarterof 2001 will reflect management's assessment of the above factors, aswell as changes in the economic environment during this period. Basedon its current assessment, management anticipates that a provision forcredit losses for all of 2001 could fall within the $31 million to $38million range.

OUTLOOK

Management's estimates of business and economic levels and therelated effect on earnings during this period of economic uncertaintyare subject to a greater degree of variability than normal givencurrent world events and their impact on the economy. Based on theinformation available, management continues to expect that net incomeper diluted common share for 2001 will be approximately 8 percent to11 percent higher than 2000.

In anticipation of the elimination of goodwill amortization in2002, it should be noted that the amortization of goodwill net of taxbenefits reduced net income by $3.1 million for the third quarter and$9.4 million for the first nine months of 2001.

CAPITAL LEVELS

Total risk-based capital and Tier 1 risk-based capital ratios atSeptember 30, 2001 were 13.93 percent and 9.06 percent, compared withthe minimum "well-capitalized" capital ratios of 10 percent and 6percent, respectively. The corporation's Tier 1 leverage ratio of 7.17percent exceeded the regulatory minimum of 4 percent required for a"well-capitalized" institution. Total risk-based capital, Tier 1risk-based capital and the Tier 1 leverage ratios at June 30, 2001were 11.64 percent, 8.76 percent and 6.97 percent, respectively. Thetotal risk-based capital ratio benefited from the issuance by CityNational Bank of $150.0 million of 6.75 percent, 10 year, subordinatednotes on August 30, 2001 which qualifies as Tier 2 capital.

STOCK REPURCHASE

Under the October 26, 2000 stock buyback program of one millionshares, 341,700 shares have been repurchased at an average price of$33.99 per share including 50,000 shares purchased at an average priceof $39.63 during the third quarter of 2001. The shares purchased underthe buyback program will be reissued for acquisitions, upon theexercise of stock options, and for other general corporate purposes.Treasury shares at September 30, 2001 totaled 50,000 shares.

ABOUT CITY NATIONAL

City National Corporation is a publicly owned corporation with$9.8 billion in total assets whose stock is traded on the New YorkStock Exchange under the symbol "CYN." The corporation's wholly ownedsubsidiary, City National Bank, is California's Premier Private andBusiness Bank(SM). City National Bank, which provides banking, trustand investment services, has 49 California offices located in ContraCosta, Los Angeles, Orange, Riverside, San Bernardino, San Diego, SanFrancisco, San Mateo, Santa Clara and Ventura counties.

This news release contains forward-looking statements about thecorporation for which the corporation claims the protection of thesafe harbor 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 thecorporation's possible or assumed future financial condition, and itsresults of operations and business. Forward-looking statements aresubject to risks and uncertainties. A number of factors, some of whichare beyond the corporation's ability to control or predict, couldcause future results to differ materially from those contemplated bysuch forward-looking statements. These factors include (1) a continuedeconomic slowdown in the national and California economiesattributable to various ongoing developments such as declining retailsales, declines in consumer confidence, reduced industrial production,declining business inventories, reduced capacity utilization, anddeclining occupancy in commercial and residential real estateresulting in declines in underlying value of real estate assets, orother unforeseen adverse changes in national and regional economicactivity, (2) increased economic uncertainty created by the mostrecent terrorist attacks on the United States, (3) economicuncertainty created by the military, diplomatic and humanitarianactions of the United States and allied nations in Afghanistan inresponse to the terrorists acts, (4) the increased prospect ofadditional terrorist acts within the United States and the uncertaineffect of these events on our national and regional economies, (5)changes in interest rates, (6) significant changes in banking laws orregulations, (7) increased competition in the corporation's market,(8) higher-than-expected credit losses, and (9) possible changes inthe plans for its registered investment company subsidiary.

For a more complete discussion of these risks and uncertainties,see the corporation's Quarterly Report on Form 10-Q for thequarter-ended June 30, 2001, and particularly the section ofManagement's Discussion and Analysis therein titled "CautionaryStatement for Purposes of the 'Safe Harbor' Provisions of the PrivateSecurities Litigation Reform Act of 1995."

 CITY NATIONAL CORPORATION CONSOLIDATED BALANCE SHEET (unaudited)(Dollars in thousands, except per share amount) September 30, 2001 2000 % ChangeAssets Cash and due from banks $ 418,830 $ 393,669 6 Securities 1,797,898 1,660,082 8 Federal funds sold 311,500 30,000 N/M Loans (net of allowance for credit losses of $137,239 and $139,195) 6,713,743 6,287,597 7 Other assets 544,103 542,607 - Total assets $ 9,786,074 $ 8,913,955 10Liabilities and Shareholders' Equity Noninterest-bearing deposits $ 3,275,183 $ 2,743,717 19 Interest-bearing deposits 4,125,169 4,129,796 - Total deposits 7,400,352 6,873,513 8 Federal funds purchased and securities sold under repurchase agreements 149,701 132,750 13 Other short-term borrowed funds 785,125 740,638 6 Subordinated debt 274,493 123,594 122 Other long-term debt 194,995 205,000 (5) Other liabilities 106,003 127,802 (17) Total liabilities 8,910,669 8,203,297 9 Shareholders' equity 875,405 710,658 23 Total liabilities and shareholders' equity $ 9,786,074 $ 8,913,955 10 Book value per share $ 18.21 $ 14.88 22 Number of shares at period end 48,068,566 47,765,807 1 CONSOLIDATED STATEMENT OF INCOME (unaudited) (Dollars in thousands, except per share amount) For the three months ended For the nine months ended September 30, September 30, 2001 2000 %Change 2001 2000 %ChangeInterest income $ 156,516 $ 170,927 (8) $ 477,198 $ 477,070 -Interest expense (45,387) (66,926) (32) (156,103) (176,178) (11)Net interest income 111,129 104,001 7 321,095 300,892 7Provision for credit losses (10,000) (7,000) 43 (24,000) (11,000) 118Net interest income after provision for credit losses 101,129 97,001 4 297,095 289,892 2Noninterest income 32,282 28,522 13 96,437 79,555 21Noninterest expense (77,329) (73,984) 5 (232,945) (219,143) 6Income before taxes 56,082 51,539 9 160,587 150,304 7Income taxes (18,598) (17,378) 7 (53,168) (51,690) 3Net income $ 37,484 $ 34,161 10 $ 107,419 $ 98,614 9Net income per share, basic $ 0.78 $ 0.72 8 $ 2.25 $ 2.09 8Net income per share, diluted $ 0.75 $ 0.70 7 $ 2.18 $ 2.04 7Dividends paid per share $ 0.19 $ 0.18 6 $ 0.56 $ 0.53 6Cash net income $ 41,439 $ 37,853 9 $ 119,271 $ 108,907 10Cash net income per share, basic $ 0.86 $ 0.79 9 $ 2.49 $ 2.31 8Cash net income per share, diluted $ 0.83 $ 0.77 8 $ 2.42 $ 2.25 8Shares used to compute per share net income, basic 48,015,739 47,694,471 47,822,393 47,092,720Shares used to compute per share net income, diluted 49,803,704 49,082,476 49,285,704 48,351,733 CITY NATIONAL CORPORATION SELECTED FINANCIAL INFORMATION (unaudited) (Dollars in thousands)Period end September 30, 2001 2000 % ChangeLoans Commercial (a) $ 2,952,076 $ 2,920,518 1 Residential first mortgage 1,528,505 1,254,557 22 Real estate mortgage 1,608,086 1,438,814 12 Real estate construction 596,081 408,749 46 Installment 72,862 69,528 5 Total relationship loans 6,757,610 6,092,166 11 Syndicated non-relationship (a) 93,372 334,626 (72) Total loans $ 6,850,982 $ 6,426,792 7(a)Commercial loans were $2,902,807 and syndicatednon-relationship loans were $110,536 at June 30, 2001Deposits Noninterest bearing $ 3,275,183 $ 2,743,717 19 Interest-bearing, core 2,679,780 2,514,552 7 Total core deposits 5,954,963 5,258,269 13 Time deposits - $100,000 and over 1,445,389 1,615,244 (11) Total deposits $ 7,400,352 $ 6,873,513 8Credit Quality Nonaccrual loans and ORE (b) Relationship loans $ 31,474 $ 29,717 6 Syndicated non-relationship loans 8,641 17,166 (50) 40,115 46,883 (14) ORE 10 133 (92) Total nonaccrual loans and ORE $ 40,125 $ 47,016 (15)Relationship nonaccrual loans and ORE to total relationship loans and ORE 0.47 0.49 (4)Total nonaccrual loans and ORE to total loans and ORE 0.59 0.73 (19)Loans past due 90 days or more on accrual status $ 3,462 $ 5,375 (36)Restructured loans on accrual status $ - $ 2,411 (100)(b) Nonaccrual loans were $37,085 at June 30, 2001 including$28,942 of relationship loans and $8,143 of syndicatednon-relationship loans.Allowance for Credit Losses For the three months ended For the nine months ended September 30, September 30, 2001 2000 %Change 2001 2000 %ChangeBeginningbalance $ 133,883 $ 140,484 (5) $ 135,435 $ 134,077 1Additions from acquisitions - - - - 9,927 (100)Provision for credit losses 10,000 7,000 43 24,000 11,000 118Charge-offs(c) Relationship loans (5,207) (5,060) 3 (22,915) (15,241) 50 Syndicated non- relationship loans (3,302) (4,690) (30) (8,516) (8,922) (5) (8,509) (9,750) (13) (31,431) (24,163) 30Recoveries (d) 1,865 1,461 28 9,235 8,354 11 Net charge-offs (6,644) (8,289) (20) (22,196) (15,809) 40Ending Balance $ 137,239 $ 139,195 (1) $ 137,239 $ 139,195 (1)Net relationship charge-offs to average relationship loans (annualized) (0.23)% (0.24)% (4) (0.30)% (0.16)% 88Total net charge-offs to average loans (annualized) (0.39) (0.51) (24) (0.45) (0.34) 32Allowance for credit losses to total loans 2.00 2.17 (8)Allowance for credit losses to nonaccrual loans 342.11 296.90 15(c) Charge-offs in the second quarter 2001 were $7,725 inrelationship loans and $3,113 in syndicated non-relationship loans(d) Includes $574 and $849 in syndicated non-relationship loans forthe third quarter and first nine months of 2001, respectively CITY NATIONAL CORPORATION SELECTED FINANCIAL INFORMATION (unaudited) (Dollars in thousands except per share amounts) For the three months ended September 30, 2001 2000 % ChangeAverage BalancesLoans Commercial $ 2,972,774 $ 2,848,223 4 Residential first mortgage 1,482,327 1,245,026 19 Real estate mortgage 1,591,224 1,416,387 12 Real estate construction 539,409 430,538 25 Installment 72,509 67,336 8 Total relationship loans 6,658,243 6,007,510 11 Syndicated non-relationship 101,732 422,961 (76) Total loans $ 6,759,975 $ 6,430,471 5Securities $ 1,782,906 $ 1,558,339 14Interest-earning assets 8,616,506 8,017,627 7Assets 9,419,018 8,757,790 8Core deposits 5,570,380 5,000,742 11Deposits 6,947,324 6,501,125 7Shareholders' equity 844,931 692,436 22Noninterest income Trust and investment fee revenue $ 14,896 $ 12,028 24 Cash management and deposit transaction fees 8,068 5,888 37 International services 3,756 3,967 (5) Bank owned life insurance 714 646 11 Other 4,287 4,256 1 Subtotal - core 31,721 26,785 18 Gain (loss) on sale of loans and assets / debt repurchase (355) (82) 333 Gain on sale of securities 916 1,819 (50) Total $ 32,282 $ 28,522 13Noninterest expense Salaries and other employee benefits $ 42,476 $ 40,506 5 All Other Professional 6,203 5,047 23 Net occupancy of premises 6,434 7,235 (11) Information services 4,111 3,369 22 Marketing and advertising 2,375 2,503 (5) Depreciation 3,510 3,203 10 Office services 2,159 2,302 (6) Amortization of goodwill 3,220 2,957 9 Amortization of core deposit intangibles 1,405 1,404 - Equipment 497 537 (7) Other operating 4,939 4,921 - Total all other 34,853 33,478 4 Total $ 77,329 $ 73,984 5Selected RatiosFor the Period Return on average assets 1.58% 1.55% 2 Return on average shareholders' equity 17.60 19.63 (10) Net interest margin 5.28 5.32 (1) Efficiency ratio 52.64 54.44 (3) Dividend payout ratio 23.68 24.33 (3) Cash return on average assets 1.78 1.75 2 Cash return on average shareholders' equity 25.09 29.13 (14) Cash efficiency ratio 49.49 51.23 (3) For the nine months ended September 30, 2001 2000 % ChangeAverage BalancesLoans Commercial $ 2,971,530 $ 2,690,750 10 Residential first mortgage 1,371,504 1,226,347 12 Real estate mortgage 1,569,050 1,298,368 21 Real estate construction 485,394 403,868 20 Installment 73,472 64,199 14 Total relationship loans 6,470,950 5,683,532 14 Syndicated non-relationship 136,279 484,937 (72) Total loans $ 6,607,229 $ 6,168,469 7Securities $ 1,677,737 $ 1,383,686 21Interest-earning assets 8,348,930 7,598,986 10Assets 9,158,935 8,316,702 10Core deposits 5,405,764 4,865,363 11Deposits 6,903,606 6,153,048 12Shareholders' equity 802,640 650,464 23Noninterest income Trust and investment fee revenue $ 43,348 $ 34,810 25 Cash management and deposit transaction fees 22,199 17,194 29 International services 11,155 11,024 1 Bank owned life insurance 2,135 1,924 11 Other 13,875 12,643 10 Subtotal - core 92,712 77,595 19 Gain (loss) on sale of loans and assets / debt repurchase 1,293 (77) N/M Gain on sale of securities 2,432 2,037 19 Total $ 96,437 $ 79,555 21Noninterest expense Salaries and other employee benefits $ 127,961 $ 120,944 6 All Other Professional 18,325 16,738 9 Net occupancy of premises 19,406 17,783 9 Information services 12,028 10,365 16 Marketing and advertising 8,272 8,827 (6) Depreciation 10,260 9,484 8 Office services 6,793 7,144 (5) Amortization of goodwill 9,647 8,190 18 Amortization of core deposit intangibles 4,214 4,039 4 Equipment 1,596 1,739 (8) Other operating 14,443 13,890 4 Total all other 104,984 98,199 7 Total $ 232,945 $ 219,143 6Selected RatiosFor the Period Return on average assets 1.57% 1.58% (1) Return on average shareholders' equity 17.89 20.25 (12) Net interest margin 5.30 5.46 (3) Efficiency ratio 54.58 56.19 (3) Dividend payout ratio 24.73 24.88 (1) Cash return on average assets 1.78 1.79 (1) Cash return on average shareholders' equity 25.60 30.09 (15) Cash efficiency ratio 51.34 53.06 (3)Period End Tier 1 risk-based capital ratio 9.06 7.85 15 Total risk-based capital ratio 13.93 10.88 28 Tier 1 leverage ratio 7.17 6.41 12

CONTACT:City National Corporation
Frank Pekny, 310/888-6700 (Financial/Investors)
Cary Walker, 213/833-4715 (Media)
or
Abernathy MacGregor Group
Ian Campbell, 213/630-6550 (Financial/Investors)