For First Time Deposits Exceed $9 Billion, Loans Approach $8 Billion, and Assets Under Management or Administration Exceed $19 Billion

LOS ANGELES, Oct 16, 2002 (BUSINESS WIRE) - City National Corporation (NYSE:CYN), parent company of wholly owned City National Bank, today reported recordthird-quarter 2002 net income of $48.7 million, or $0.94 per diluted commonshare, compared with reported net income of $37.5 million, or $0.75 per share,for the third quarter of 2001 and $45.8 million, or $0.88 per share, for thesecond quarter of 2002.

The company's third-quarter 2002 net income of $48.7 million was up 20 percentfrom $40.7 million a year earlier, this latter amount having been adjusted toexclude the amortization of goodwill from the prior reported period to reflectthe new accounting standards for goodwill ("New GAAP"). As a result, net incomeper diluted common share of $0.94 rose 15 percent from $0.82 in the thirdquarter a year ago on a comparable basis. Results for 2002 include theoperations of Civic BanCorp ("Civic") from February 28, 2002, the date that theacquisition was completed.

Third-quarter 2002 net income included, as a loss on the sale of loans andassets, approximately $3.8 million, or $0.04 per share after tax, in realizedand unrealized write downs on a previously designated available-for-sale mediaand telecommunication loan portfolio. During the third quarter of 2002, twoloans with total commitments of $18.2 million were sold out of the original$69.2 million in commitments on seven loans, leaving five media andtelecommunication loans with commitments of $48.3 million in other assets atSeptember 30, 2002. The quarter also included approximately $4.6 million, or$0.09 a share, in income tax benefits - $3.0 million relating to thefirst-half-of-the-year impact from the recently completed conversion of thecompany's former regulated investment company to a real estate investment trustand $1.6 million from a change in state tax law concerning the tax treatment ofloan loss reserves.

For the first nine months of 2002, City National Corporation achieved record netincome of $138.7 million, or $2.69 per diluted common share, compared withreported net income of $107.4 million, or $2.18 per share for the first ninemonths of 2001. Net income for the first nine months of 2002 was up 18 percentfrom $117.1 million for the first nine months of 2001, the latter amountadjusted to reflect New GAAP. Accordingly, net income per diluted common shareincreased 13 percent from $2.38 in the first nine months of 2001 on a comparablebasis.

"City National's 33rd consecutive quarter of year-over-year net income growthand continuing strong year-over-year growth in loans, deposits, investmentassets and clients reflect our position, potential and effectiveness asCalifornia's Premier Private and Business Bank," said Chief Executive OfficerRussell Goldsmith. "We achieved this 20 percent growth in net income whileadding to our allowance for credit losses."

As a result of New GAAP, the difference between cash and GAAP performance hasdiminished, but cash results continue to be reported on the attached schedules.

RETURN ON ASSETS/RETURN ON EQUITY

The company's return on average assets for the third quarter of 2002 was 1.76percent, compared with, on an adjusted basis, 1.71 percent for the third quarterof 2001 and 1.68 percent for the second quarter of 2002. The return on averageshareholders' equity was 17.65 percent, compared with, on an adjusted basis,19.11 percent for the prior-year third quarter and 17.53 percent for the secondquarter of 2002. For the first nine months of 2002, the return on average assetswas 1.72 percent, and the return on average shareholders' equity was 18.01percent compared with, on an adjusted basis, 1.71 percent and 19.50 percent forthe first nine months of 2001. The adjustment makes the 2001 data comparablewith New GAAP. The lower return on average shareholders' equity in the currentperiod compared with a year ago is due primarily to a higher level ofshareholders' equity from increased unrealized gains on available-for-salesecurities and cash flow hedges, retained net income, the shares issued for theCivic acquisition and from the exercise of stock options, net of treasury sharerepurchases.

ASSETS

Total average assets reached $11.0 billion for the third quarter of 2002, anincrease of 16 percent over $9.4 billion for the third quarter of 2001 andessentially unchanged over the $10.9 billion in average assets for the secondquarter of 2002. Total assets at September 30, 2002 were $11.3 billion, comparedwith $9.8 billion at September 30, 2001 and $11.0 billion at June 30, 2002.

Total average interest-earning assets were $10.0 billion for the third quarterof 2002, an increase of 16 percent over the $8.6 billion in averageinterest-earning assets for the third quarter of 2001 and 1 percent under the$10.1 billion in average interest-earning assets for the second quarter of 2002.

LOANS

Average loans for the third quarter of 2002 rose to $8.0 billion, an increase of18 percent over the third quarter of 2001, reflecting the acquisition of Civicand continuing internally-generated loan growth. Third-quarter average loansincreased slightly over the second quarter of 2002, reflecting in part, theimpact of transferring seven media and telecommunication credits toavailable-for-sale at the end of the second quarter. Compared with theprior-year quarter, commercial loans rose 17 percent to $3.6 billion from $3.1billion. Residential first mortgage loans rose 17 percent to $1.7 billion from$1.5 billion. Real estate mortgage loans rose 19 percent to $1.9 billion from$1.6 billion, and real estate construction loans rose 21 percent to $0.7 billionfrom $0.5 billion.

Average loans for the first nine months of 2002 increased 18 percent to $7.8billion from $6.6 billion for the same period last year. Commercial loans rose15 percent to $3.6 billion from $3.1 billion. Residential first mortgage loansrose 24 percent to $1.7 billion from $1.4 billion. Real estate mortgage loansrose 15 percent to $1.8 billion from $1.6 billion and real estate constructionloans rose 29 percent to $0.6 billion from $0.5 billion.

Total loans at September 30, 2002 reached $8.0 billion, compared with $6.9billion at September 30, 2001, and $7.9 billion at June 30, 2002, increases of16 percent and 1 percent, respectively. The company's September 30, 2002 mediaand telecommunication loan portfolio, excluding the available-for-sale loanswhich are carried in other assets, contains 23 loans with commitment andoutstanding balances of $134.1 million and $92.6 million, respectively, or justslightly more than 1 percent of the loan portfolio. All but one of these loansare syndicated.

Syndicated non-relationship loans were $48.0 million, approximately one-half of1 percent of the loan portfolio, at September 30, 2002, compared with $93.4million at September 30, 2001 and $47.5 million at June 30, 2002. Five media andtelecommunication loans with commitment and outstanding balances of $22.2million and $16.0 million, respectively, as of September 30, 2002 are includedamong these non-relationship loans and also in the total media andtelecommunication loan portfolio discussed above.

Management has revised its forecast and currently expects that average loangrowth for 2002 will be in the range of 15 percent to 17 percent.

DEPOSITS

Average deposits during the third quarter of 2002 were $8.8 billion, an increaseof 26 percent over the third quarter of 2001 and 3 percent over the secondquarter of 2002. During the first nine months of 2002, average depositsincreased 22 percent to $8.4 billion, compared with $6.9 billion for the firstnine months of 2001.

During the third quarter of 2002, average core deposits, which provide a sourceof low-cost funding, rose to $7.6 billion, an increase of 36 percent over the$5.6 billion in the third quarter of 2001 and 5 percent higher than the $7.2billion for the second quarter of 2002. Average core deposits represented 86percent of the total average deposit base for the third quarter, up from 80percent for the prior-year quarter and up from 85 percent for the second quarterof 2002. For the first nine months of 2002, average core deposits were $7.1billion, up 32 percent from $5.4 billion for the first nine months of 2001. Newclients, the acquisition of Civic, and higher existing client balancesmaintained as deposits to pay for services, contributed to the growth ofdeposits.

For the first time, deposits exceeded $9 billion, totaling $9.1 billion atSeptember 30, 2002, compared with $7.4 billion at September 30, 2001 and $8.8billion at June 30, 2002, increases of 23 percent and 4 percent, respectively.

Management has revised its forecast and currently expects average year-over-yeardeposit growth to be in the range of 18 percent to 20 percent for 2002.

NET INTEREST INCOME

Fully taxable-equivalent net interest income for the third quarter of 2002 was$135.2 million, an increase of 18 percent over $114.7 million for the thirdquarter of 2001. Third-quarter net interest income was 1 percent higher than the$134.3 million recorded for the second quarter of 2002. Fully taxable-equivalentnet interest income for the first nine months of 2002 was $394.9 million, anincrease of 19 percent over $331.2 million for the first nine months of 2001.Interest income recovered on nonaccrual and charged-off loans included above was$0.4 million for the third quarter of 2002, compared with $1.4 million for thethird quarter of 2001 and $0.6 million for the second quarter of 2002. Interestrecovered in the first nine months of 2002 was $1.4 million compared with $3.6million for the first nine months of 2001.

As part of the company's asset liability management strategy, its "plainvanilla" interest rate swaps hedging loans, deposits and borrowings added $8.2million to net interest income in the third quarter of 2002 compared with $5.4million in the third quarter of 2001 and $8.5 million for the second quarter of2002. This included $3.7 million, $1.5 million and $3.7 million for the thirdquarter of 2002 and 2001 and the second quarter of 2002, respectively, forinterest rate swaps qualifying as fair value hedges. For the first nine monthsof 2002, interest rate swaps added $24.6 million to net interest income,compared with $8.5 million for the first nine months of 2001. These amountsinclude $10.6 million and $3.9 million, respectively, for interest swapsqualifying as fair value hedges. Income from swaps qualifying as cash flowhedges of loans expected to be recorded in net interest income within the next12 months is $8.1 million.

The fully taxable-equivalent net interest margin for the third quarter of 2002was 5.35 percent, compared with 5.28 percent for the third quarter of 2001 and5.35 percent for the second quarter of 2002. The net interest margin for thefirst nine months of 2002 was 5.35 percent compared with 5.30 percent for thefirst nine months of 2001. The increases over the same periods last year areprimarily due to this year's more stable interest rate environment. The Bank'sprime rate was 4.75 percent as of September 30, 2002, compared with 6.00 percenta year earlier and 4.75 percent at June 30, 2002.

Management continues to expect the net interest margin for 2002 will be slightlyhigher than the net interest margin of 5.26 percent reported for 2001.

NONINTEREST INCOME

Core noninterest income increased 16 percent to $36.7 million for the thirdquarter of 2002, compared with $31.7 million for the third quarter of 2001, anddecreased 1 percent from the $37.2 million for the second quarter of 2002. Forthe first nine months of 2002, core noninterest income increased 16 percent to$107.5 million compared with $92.7 million for the first nine months of 2001.

Assets under administration at September 30, 2002 totaled $19.1 billion,including $7.0 billion under management, compared with $18.3 billion and $7.2billion, respectively, at September 30, 2001, and $18.3 billion and $6.9billion, respectively, at June 30, 2002. The quarter-over-prior-year quarterincrease in assets under administration is due to continued strong new sales.Trust and investment fee revenues for the third quarter and first nine months of2002 were higher compared with the prior-year periods also due to new sales,while revenues were slightly down from the second quarter due to decliningmarket conditions.

Cash management and deposit transaction fees for the third quarter and firstnine months of 2002 increased over the same periods last year as the result ofstrong growth in deposits, higher sales of online cash management products, andthe impact on fees of a reduction in the earnings credit on analyzed depositaccounts. Cash management and deposit transaction fees for the third quarter of2002 were slightly lower than the preceding second quarter. Increasesquarter-over-prior-year quarter in international services and other income werepartially attributable to additional entertainment and middle-market commercialinternational business and higher participating mortgage loan income.

Gains (losses) on the sale of loans, assets and the repurchase of debt and gainson the sale of securities for the third quarter of 2002 was a $2.6 million losscompared with a $0.6 million gain for the same period last year. The lossrecognized for the third quarter of 2002 included approximately $3.8 millionrelated to the write down on seven media and telecommunication loans classifiedas available-for-sale. For the first nine months of 2002, $1.3 million in netgains, including $2.0 million and $1.2 million gain on the sale of ORE and bankproperty during the first and second quarters of 2002, respectively, wererecognized compared with $3.7 million in gains for the first nine months of2001.

Noninterest income for the third quarter and first nine months of 2002 was 21percent and 22 percent of total revenues, respectively, compared with 23 percentfor both the third quarter and first nine months of 2001.

Management continues to expect growth in noninterest income to range from 7percent to 10 percent for 2002. Last year, the acquisition of Reed, Conner &Birdwell accounted for approximately one-quarter of the 21 percent increase innoninterest income reported for the year. In addition, management expects that amore stable interest rate environment will contribute to a reduction in thegrowth rate of cash management and deposit transaction fees for the remainder of2002.

NONINTEREST EXPENSE

After excluding amortization of goodwill from prior-year reported periods,noninterest expense of $82.4 million for the third quarter of 2002 was up 11percent from $74.1 million for the third quarter of 2001 and down 1 percent from$83.0 million for the second quarter of 2002. The increase over the prior-yearquarter was primarily the result of the company's growth, including theacquisition of Civic, and costs associated with additional colleagues.Noninterest expense for the first nine months of 2002 increased 9 percent to$244.1 million compared with $223.3 million for the first nine months of 2001 ona comparable basis.

The company's cash efficiency ratio for the third quarter of 2002 was 47.49percent compared with 49.49 percent for the third quarter of 2001 and 46.76percent for the second quarter of 2002. For the first nine months of 2002, thecash efficiency ratio was 47.39 percent compared with 51.34 percent for thefirst nine months of 2001. The improvement over the prior year was driven byboth increased revenues and the company's ongoing efforts to improve efficiencyand productivity.

Excluding the amortization of goodwill in 2001, management continues toanticipate that 2002 noninterest expense will increase 7 percent to 10 percentover the prior year, with the acquisition of Civic accounting for a significantamount of the increase.

INCOME TAXES

The effective tax rate for the first nine months of 2002 was 30.3 percent, whichincluded $4.6 million in income tax benefits in this quarter - $3.0 millionrelating to the first-half-of-the-year impact from the recently completedconversion of the company's former regulated investment company to a real estateinvestment trust and $1.6 million from a change in state tax law concerning thetax treatment of loan loss reserves. These items contributed to an effective taxrate for the third quarter of 22.5 percent. These rates compare with as reportedrates of 33.2 percent for the third quarter and 33.1 percent for the first ninemonths of 2001. The effective tax rate for the second quarter of 2002 was 33.1percent. The lower effective tax rates in 2002 also reflect the realization of acapital loss resulting from the issuance and subsequent sale of an additionalseries of preferred stock by one of the company's real estate investment trustsubsidiaries.

Due to the third-quarter factors discussed above, management has revised itsforecast and currently anticipates the company's effective tax rate for 2002will be within a range of 30 percent to 32 percent.

CREDIT QUALITY

Net loan charge-offs were $19.0 million and $6.6 million for the third quartersof 2002 and 2001, respectively, and $16.0 million for the second quarter of2002. Third-quarter charge-offs included $10.3 million, including an $8.5million previously identified potential problem commitment, relating to oneprivate banking client, and $4.5 million relating to two relationship syndicatedcredits, one of which was media and telecommunication related. For the firstnine months of 2002 and 2001, net loan charge-offs were $42.0 million and $22.2million, respectively. Charge-offs do not contain any concentration within aspecific industry sector. As an annualized percentage of average loans, netcharge-offs were 0.95 percent, 0.39 percent and 0.81 percent for the thirdquarters of 2002 and 2001 and the second quarter of 2002, respectively.Year-to-date net charge-offs were 0.72 percent compared to 0.45 percent a yearago as an annualized percentage of average loans.

Total nonperforming assets (nonaccrual loans and ORE) were $50.6 million, or0.64 percent of total loans and ORE, at September 30, 2002, compared with $40.1million, or 0.59 percent, at September 30, 2001 and $64.9 million, or 0.83percent, at June 30, 2002 and do not contain any concentration of credits withina specific industry sector. Total syndicated non-relationship loans onnonaccrual status consisted of three loans totaling $6.2 million at September30, 2002 and $6.4 million at June 30, 2002.

The company recorded a provision for credit losses of $20.5 million and $49.5million for the third quarter and first nine months of 2002, respectively,compared with $10.0 million and $24.0 million for the same periods in 2001. Theprovision for credit losses in the second quarter of 2002 was $18.0 million. Theprovision for credit losses this quarter primarily reflects management's ongoingassessment of the credit quality of the portfolio, including changes in themedia and telecommunication sectors, and the general economic environment duringthis period. Additional factors affecting the provision include net loancharge-offs and nonaccrual loans and growth in the portfolio.

The allowance for credit losses at September 30, 2002 totaled $159.2 million, or2.00 percent of outstanding loans. This compares with an allowance of $137.2million, or 2.00 percent at September 30, 2001 and an allowance of $157.6million, or 2.01 percent at June 30, 2002. The allowance for credit losses as apercentage of nonaccrual loans was 317 percent at September 30, 2002, comparedwith 342 percent at September 30, 2001 and 245 percent at June 30, 2002.Management believes the allowance for credit losses is adequate to cover risksin the portfolio, including any unfunded commitments at September 30, 2002.

The provision for credit losses to be taken in 2002 will reflect management'sassessment of the above factors, as well as changes in the economic environmentduring this period. Given the current economic environment, management expectsnonaccrual loans will increase from current levels. Based on its assessment ofcredit quality indicators, management has revised its forecast and currentlyanticipates that a provision for credit losses for all of 2002 could be withinthe $65.0 million to $75.0 million range.

OUTLOOK

Management has revised its forecast and currently expects net income per dilutedcommon share for 2002 will be approximately 8 percent to 10 percent higher thanNew GAAP net income per diluted common share of $3.22 for 2001.

CAPITAL LEVELS

Total risk-based capital and Tier 1 risk-based capital ratios at September 30,2002 were 14.61 percent and 10.16 percent, compared with the minimum"well-capitalized" capital ratios of 10 percent and 6 percent, respectively. Thecompany's Tier 1 leverage ratio of 7.88 percent exceeded the regulatory minimumof 4 percent required for a "well-capitalized" institution. Total risk-basedcapital, Tier 1 risk-based capital and the Tier 1 leverage ratios at June 30,2002 were 14.24 percent, 9.74 percent and 7.44 percent, respectively. The totalrisk-based capital ratio benefited from the issuance of $6.7 million in thethird quarter of 2002 of 8.5 percent preferred stock by real estate investmenttrust subsidiaries of the bank. The stock qualifies as Tier 1 capital.

STOCK REPURCHASE

Under the October 26, 2000 stock buyback program of 1 million shares, 494,000shares have been repurchased at an average price of $37.49 per share, including145,000 shares at an average price of $45.62 repurchased during the thirdquarter of 2002. The shares purchased under the buyback program will be reissuedfor acquisitions, upon the exercise of stock options, and for other generalcorporate purposes. There were 112,338 treasury shares at September 30, 2002.

ABOUT CITY NATIONAL

City National Corporation (NYSE: CYN) is a financial services company with $11.3billion in total assets. Its wholly owned subsidiary, City National Bank, is thesecond largest independent bank headquartered in California. As California'sPremier Private and Business Bank(SM), City National provides banking,investment and trust services through 54 offices, including 11 full-serviceregional centers, in Southern California and the San Francisco Bay Area. Thecompany has more than $19 billion in investment and trust assets undermanagement or administration.

For more information about City National, visit the company's Web site atcnb.com http://www.cnb.com/.

This news release contains forward-looking statements about the company forwhich the company claims the protection of the safe harbor provisions containedin the Private Securities Litigation Reform Act of 1995.

Forward-looking statements are based on management's knowledge and belief as oftoday and include information concerning the company's possible or assumedfuture financial condition, and its results of operations, business and earningsoutlook. These forward-looking statements are subject to risks anduncertainties. A number of factors, some of which are beyond the company'sability to control or predict, could cause future results to differ materiallyfrom those contemplated by such forward-looking statements. These factorsinclude (1) economic uncertainty created by increasing unrest in other parts ofthe world, (2) the prospect of additional terrorist acts within the UnitedStates and the uncertain effect of these events on our national and regionaleconomies, (3) potential economic impacts of west coast dock labor negotiations,(4) changes in interest rates, (5) significant changes in banking laws orregulations, (6) increased competition in the company's market, (7)higher-than-expected credit losses, (8) the effect of acquisitions andintegration of acquired businesses, and (9) unanticipated changes in regulatory,judicial, or legislative tax treatment of business transactions. Managementcannot predict at this time the severity or duration of the effects of therecent business slowdown on our specific business activities and profitability.Weak or a decline in capital and consumer spending, and related recessionarytrends could adversely affect our performance in a number of ways includingdecreased demand for our products and services and increased credit losses.Likewise, changes in deposit interest rates, among other things, could slow therate of growth or put pressure on current deposit levels. Forward-lookingstatements speak only as of the date they are made, and the company does notundertake to update forward-looking statements to reflect circumstances orevents that occur after the date the statements are made, or to update earningsguidance including the factors that influence earnings.

For a more complete discussion of these risks and uncertainties, see thecompany's Quarterly Report on Form 10-Q for the quarter-ended June 30, 2002, andparticularly the section of Management's Discussion and Analysis therein titled"Cautionary Statement for Purposes of the 'Safe Harbor' Provisions of thePrivate Securities Litigation Reform Act of 1995."

 CITY NATIONAL CORPORATION CONSOLIDATED BALANCE SHEET (unaudited) (Dollars in thousands, except per share amount) September 30, 2002 2001 % ChangeAssetsCash and due from banks $480,884 $418,830 15Federal funds sold 268,000 311,500 (14)Securities 2,046,020 1,797,898 14Loans (net of allowance for credit losses of $159,173 and $137,239) 7,807,628 6,713,743 16Other assets 671,235 544,103 23 Total assets $11,273,767 $9,786,074 15Liabilities and Shareholders' EquityNoninterest-bearing deposits $4,200,997 $3,275,183 28Interest-bearing deposits 4,925,725 4,125,169 19 Total deposits 9,126,722 7,400,352 23Federal funds purchased and securities sold under repurchase agreements 231,389 149,701 55Other short-term borrowed funds 294,125 785,125 (63)Subordinated debt 301,917 274,493 10Other long-term debt 68,897 194,995 (65)Other liabilities 124,862 106,003 18 Total liabilities 10,147,912 8,910,669 14Shareholders' equity 1,125,855 875,405 29 Total liabilities and shareholders' equity $11,273,767 $9,786,074 15Book value per share $22.44 $18.21 23Number of shares at period end 50,163,305 48,068,566 4 CONSOLIDATED STATEMENT OF INCOME (unaudited) (Dollars in thousands, except per share amount) For the three months ended September 30, 2002 2001 % ChangeInterest income $154,616 $156,516 (1)Interest expense (23,092) (45,387) (49)Net interest income 131,524 111,129 18Provision for credit losses (20,500) (10,000) 105Net interest income after provision for credit losses 111,024 101,129 10Noninterest income 34,178 32,282 6Noninterest expense (82,372) (77,329) 7Income before taxes 62,830 56,082 12Income taxes (14,145) (18,598) (24)Net income 48,685 37,484 30Amortization of goodwill - 3,220 (100)Net income - new GAAP $48,685 $40,704 20Net income per share, basic $0.97 $0.78 24Net income per share, diluted $0.94 $0.75 25Net income - new GAAP per share, diluted $0.94 $0.82 15Dividends paid per share $0.20 $0.19 5Cash net income (1) $49,831 $41,439 20Cash net income per share, basic $0.99 $0.86 15Cash net income per share, diluted $0.96 $0.83 16Shares used to compute per share net income, basic 50,107,163 48,015,739Shares used to compute per share net income, diluted 51,898,897 49,803,704 For the nine months ended September 30, 2002 2001 % ChangeInterest income $458,485 $477,198 (4)Interest expense (74,692) (156,103) (52)Net interest income 383,793 321,095 20Provision for credit losses (49,500) (24,000) 106Net interest income after provision for credit losses 334,293 297,095 13Noninterest income 108,859 96,437 13Noninterest expense (244,104) (232,945) 5Income before taxes 199,048 160,587 24Income taxes (60,367) (53,168) 14Net income 138,681 107,419 29Amortization of goodwill - 9,647 (100)Net income - new GAAP $138,681 $117,066 18Net income per share, basic $2.80 $2.25 24Net income per share, diluted $2.69 $2.18 23Net income - new GAAP per share, diluted $2.69 $2.38 13Dividends paid per share $0.59 $0.56 5Cash net income (1) $141,898 $119,271 19Cash net income per share, basic $2.86 $2.49 15Cash net income per share, diluted $2.75 $2.42 14Shares used to compute per share net income, basic 49,586,859 47,822,393Shares used to compute per share net income, diluted 51,594,818 49,285,704(1) Cash results exclude the after-tax amortization of core deposit intangibles and goodwill where applicable. CITY NATIONAL CORPORATION SELECTED FINANCIAL INFORMATION (unaudited) (Dollars in thousands)Period end September 30, 2002 2001 % ChangeLoans Commercial $3,572,267 $3,045,448 17 Residential first mortgage 1,746,649 1,528,505 14 Real estate mortgage 1,910,277 1,608,086 19 Real estate construction 661,698 596,081 11 Installment 75,910 72,862 4 Total loans $7,966,801 $6,850,982 16Deposits Noninterest-bearing $4,200,997 $3,275,183 28 Interest-bearing, core 3,826,919 2,679,780 43 Total core deposits 8,027,916 5,954,963 35 Time deposits - $100,000 and over 1,098,806 1,445,389 (24) Total deposits $9,126,722 $7,400,352 23Credit Quality Nonaccrual loans and ORE Nonaccrual loans $50,173 $40,115 25 ORE 460 10 N/M Total nonaccrual loans and ORE $50,633 $40,125 26 Total nonaccrual loans and ORE to total loans and ORE 0.64 0.59 8 Loans past due 90 days or more on accrual status $8,906 $3,462 157 For the three months ended September 30,Allowance for Credit Losses 2002 2001 % ChangeBeginning balance $157,647 $133,883 18 Additions from acquisition - -- - Provision for credit losses 20,500 10,000 105 Charge-offs (20,268) (8,509) 138 Recoveries 1,294 1,865 (31) Net charge-offs (18,974) (6,644) 186Ending Balance $159,173 $137,239 16Total net charge-offs to average loans (annualized) (0.95) (0.39) 144 For the nine months ended September 30,Allowance for Credit Losses 2002 2001 % ChangeBeginning balance $142,862 $135,435 5 Additions from acquisition 8,787 - N/M Provision for credit losses 49,500 24,000 106 Charge-offs (47,425) (31,431) 51 Recoveries 5,449 9,235 (41) Net charge-offs (41,976) (22,196) 89Ending Balance $159,173 $137,239 16Total net charge-offs to average loans (annualized) (0.72) (0.45) 60Allowance for credit losses to total loans 2.00 2.00 --Allowance for credit losses to nonaccrual loans 317.25 342.11 (7) CITY NATIONAL CORPORATION SELECTED FINANCIAL INFORMATION (unaudited) (Dollars in thousands) For the three months ended September 30, 2002 2001 % ChangeAverage BalancesLoans Commercial $3,598,795 $3,074,506 17 Residential first mortgage 1,733,693 1,482,327 17 Real estate mortgage 1,900,612 1,591,224 19 Real estate construction 651,174 539,409 21 Installment 73,984 72,509 2 Total loans $7,958,258 $6,759,975 18Securities $1,936,582 $1,782,906 9Interest-earning assets 10,015,119 8,616,506 16Assets 10,964,142 9,419,018 16Core deposits 7,565,699 5,570,380 36Deposits 8,772,826 6,947,324 26Shareholders' equity 1,094,381 844,931 30Noninterest income Trust and investment fee revenue $15,287 $14,896 3 Cash management and deposit transaction fees 9,929 8,068 23 International services 4,747 3,756 26 Bank owned life insurance 737 714 3 Other 6,028 4,287 41 Subtotal - core 36,728 31,721 16 Gain (loss) on sale of loans and assets/debt repurchase (3,756) (355) 958 Gain on sale of securities 1,206 916 32 Total $34,178 $32,282 6Noninterest expenseSalaries and employee benefits $49,109 $42,476 16All Other Net occupancy of premises 6,837 6,434 6 Professional 5,418 6,203 (13) Information services 4,200 4,111 2 Depreciation 3,268 3,510 (7) Marketing and advertising 3,259 2,375 37 Office services 2,231 2,159 3 Amortization of core deposit intangibles 1,976 1,405 41 Amortization of goodwill - 3,220 (100) Acquisition integration - -- - Equipment 599 497 21 Other operating 5,475 4,939 11 Total all other 33,263 34,853 (5) Total 82,372 77,329 7 Less amortization of goodwill - (3,220) (100) Adjusted total $82,372 $74,109 11Selected RatiosFor the Period Return on average assets - new GAAP 1.76 % 1.71 % 3 Return on average shareholders' equity - new GAAP 17.65 19.11 (8) Return on average assets 1.76 1.58 11 Return on average shareholders' equity 17.65 17.60 - Net interest margin 5.35 5.28 1 Efficiency ratio - new GAAP 48.65 50.44 (4) Efficiency ratio 48.65 52.64 (8) Dividend payout ratio 20.03 23.68 (15) Cash return on average assets 1.84 1.78 3 Cash return on average shareholders' equity 23.35 25.09 (7) Cash efficiency ratio 47.49 49.49 (4) For the nine months ended September 30, 2002 2001 % ChangeAverage BalancesLoans Commercial $3,573,657 $3,107,809 15 Residential first mortgage 1,695,501 1,371,504 24 Real estate mortgage 1,803,924 1,569,050 15 Real estate construction 628,239 485,394 29 Installment 71,382 73,472 (3) Total loans $7,772,703 $6,607,229 18Securities $1,963,666 $1,677,737 17Interest-earning assets 9,869,411 8,348,930 18Assets 10,749,782 9,158,935 17Core deposits 7,138,607 5,405,764 32Deposits 8,422,254 6,903,606 22Shareholders' equity 1,029,611 802,640 28Noninterest income Trust and investment fee revenue $45,297 $43,348 4 Cash management and deposit transaction fees 30,323 22,199 37 International services 13,257 11,155 19 Bank owned life insurance 2,129 2,135 - Other 16,532 13,875 19 Subtotal - core 107,538 92,712 16 Gain (loss) on sale of loans and assets/debt repurchase (757) 1,293 (159) Gain on sale of securities 2,078 2,432 (15) Total $108,859 $96,437 13Noninterest expenseSalaries and employee benefits $146,221 $127,961 14All Other Net occupancy of premises 19,512 19,406 1 Professional 15,829 18,325 (14) Information services 13,221 12,028 10 Depreciation 9,996 10,260 (3) Marketing and advertising 9,358 8,272 13 Office services 7,060 6,793 4 Amortization of core deposit intangibles 5,547 4,214 32 Amortization of goodwill - 9,647 (100) Acquisition integration 1,300 - N/M Equipment 1,870 1,596 17 Other operating 14,190 14,443 (2) Total all other 97,883 104,984 (7) Total 244,104 232,945 5 Less amortization of goodwill - (9,647) (100) Adjusted total $244,104 $223,298 9Selected RatiosFor the Period Return on average assets - new GAAP 1.72 % 1.71 % 1 Return on average shareholders' equity - new GAAP 18.01 19.50 (8) Return on average assets 1.72 1.57 10 Return on average shareholders' equity 18.01 17.89 1 Net interest margin 5.35 5.30 1 Efficiency ratio - new GAAP 48.49 52.32 (7) Efficiency ratio 48.49 54.58 (11) Dividend payout ratio 20.86 24.73 (16) Cash return on average assets 1.80 1.78 1 Cash return on average shareholders' equity 22.99 25.60 (10) Cash efficiency ratio 47.39 51.34 (8)Period End Tier 1 risk-based capital ratio 10.16 9.06 12 Total risk-based capital ratio 14.61 13.93 5 Tier 1 leverage ratio 7.88 7.17 10

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)