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LOS ANGELES--(BUSINESS WIRE)--April 14, 2004-- Net Income Grew 17 Percent; EPS Up 15 Percent From First Quarter 2003

City National Corporation (NYSE:CYN), parent company of whollyowned City National Bank, today reported net income of $50.9 million,or $1.00 per share, for the first quarter of 2004 compared with $43.7million, or $0.87 per share, for the first quarter of 2003 and $44.4million, or $0.87 per share, for the fourth quarter of 2003.

HIGHLIGHTS

- Average deposits were up 12 percent and average core deposits were up 16 percent from the same period a year ago.

- Average loans came to nearly $7.9 billion for the first quarter of 2004, $280.9 million higher than the fourth quarter 2003 total of $7.6 billion. Period-end loan balances at March 31, 2004 of $8.0 billion increased $84.9 million from $7.9 billion at December 31, 2003.

- No provision for credit losses was recorded for the first quarter of 2004, a result of continued strong credit quality and an appropriate allowance for credit losses. Net loan charge-offs were $0.9 million for the quarter. Nonaccrual loans were $42.7 million, down 57 percent from March 31, 2003, and up 1 percent from December 31, 2003.

- Average securities for the first quarter of 2004 were up 43 percent from the prior-year quarter due to higher deposit balances, and were up 1 percent from the fourth quarter of 2003. The average duration of the total available-for-sale securities portfolio at March 31, 2004 was 3.1 years.

- First-quarter noninterest income rose 19 percent over the same period a year ago. Assets under management and administration surpassed $30 billion for the first time. First-quarter 2004 results include the operations of Convergent Capital Management LLC ("CCM") while first-quarter 2003 results do not include any CCM results since the acquisition was not completed until April 1, 2003.

"Very good credit quality, coupled with the strong growth indeposits and wealth management revenue, helped produce soliddouble-digit net income gains in the first quarter of 2004 over 2003,"said Chief Executive Officer Russell Goldsmith. "In addition, webelieve that improving economic conditions and business confidenceshould lead to increasing loan totals as the year goes on.

"City National's commitment to capital management and shareholdervalue was demonstrated again in the first quarter with both theauthorization to repurchase another 1 million shares and the 14percent increase of our quarterly cash dividend, which is now 52percent higher than it was one year ago."

 For the three For the three months ended months endedDollars in millions, March 31, December 31,except per share 2003 --------------------- % Change 2004 2003------------------------------ ---------- ---------- ------ ----------Earnings Per Share $1.00 $0.87 15 $0.87Net Income 50.9 43.7 17 44.4Average Assets 12,606.8 11,480.6 10 12,756.6Return on Average Assets 1.62 % 1.54 % 5 1.38 %Return on Average Equity 16.75 15.84 6 14.69

As previously disclosed, in 2004 the company is continuing itspractice, adopted in the fourth quarter of 2003, of not recognizingtax benefits associated with its real estate investment trusts("REITS") in its financial statements. First-quarter 2003 resultsincluded $2.8 million in net income, or $0.06 per share, from taxbenefits of the company's two REITS. Fourth-quarter 2003 resultsincluded a net charge of $8.1 million, or $0.16 per share, from thereversal of the REIT tax benefits recognized in the first threequarters of 2003.

The Bank's prime rate was 4.00 percent as of March 31, 2004,compared with 4.25 percent a year earlier.

Return on average assets and the return on average shareholders'equity for the first quarter of 2004 increased from the same period ayear ago due to higher net income.

ASSETS

Average assets were higher than the first quarter of 2003,primarily due to an increase in deposits, which were invested insecurities and, to a lesser extent, federal funds sold. Total assetsat March 31, 2004 increased 10 percent to $13.2 billion from $12.0billion at March 31, 2003 and increased 2 percent from $13.0 billionat December 31, 2003.

REVENUES

First-quarter revenues (net interest income plus noninterestincome) increased 6 percent to $177.5 million, compared with $167.2million for the same period in 2003 due to higher net interest income,and noninterest income from the acquisition of CCM. Revenues were down1 percent from the fourth quarter of 2003 due to the absence ofparticipating mortgage loan ("PML") fees in the first quarter of 2004.(These are fees earned upon completion of certain real estateconstruction projects and repayment of debt where the companyparticipates in the profits of the project by funding a portion of theequity requirement for the project.)

NET INTEREST INCOME

Fully taxable-equivalent net interest income for the first quarterof 2004 was $134.3 million, compared with $131.9 million for the firstquarter of 2003 and $134.0 for the fourth quarter of 2003.

 For the three months For the ended three March 31, months % endedDollars in millions Change December 2004 2003 31, 2003------------------------------ ---------- ---------- ------ ----------Average Loans $7,886.3 $7,964.3 (1) $7,605.4Average Securities 3,462.5 2,415.0 43 3,424.3Average Deposits 10,533.5 9,373.8 12 10,694.0Average Core Deposits 9,621.2 8,326.5 16 9,737.3Fully Taxable-EquivalentNet Interest Income 134.3 131.9 2 134.0Net Interest Margin 4.66 % 5.07 % (8) 4.52 %

Average loans for the first quarter of 2004 were slightly lowerthan they were in the first-quarter of 2003, but increased 4 percentfrom the fourth quarter of 2003. Compared with the prior-yearfirst-quarter averages, residential first mortgage loans rose 11percent, real estate mortgage loans rose 5 percent; real estateconstruction loans rose 2 percent; and commercial loans decreased 11percent. Compared with the fourth quarter of 2003, average loansincreased in all categories except installment loans.

Period-end March 31, 2004 loans increased $84.9 million fromDecember 31, 2003, reflecting growth in residential first mortgage,real estate mortgage, and real estate construction loans.

Average securities increased 43 percent for the first quarter of2004 compared with the same period for 2003 primarily due to higherdeposit balances. Average securities were slightly higher than thefourth quarter of 2003. As of March 31, 2004, unrealized gains onsecurities available-for-sale were $48.7 million. The average durationof total available-for-sale securities at March 31, 2004 was 3.1 yearscompared to 3.4 years at December 31, 2003 and 2.3 years at March 31,2003.

Average deposits during the first quarter of 2004 increased 12percent over the same period last year and were down 2 percent fromthe fourth quarter of 2003, the latter change reflecting historicalseasonal trends. Average core deposits represented 91 percent, 89percent, and 91 percent of the total average deposit base for thefirst quarters of 2004 and 2003, and the fourth quarter of 2003,respectively. New clients and higher client balances maintained asdeposits to pay for services contributed to the year-over-year growthof deposits.

The net interest margin was slightly higher than the fourthquarter of 2003 due to higher yielding interest-earning assets.

As part of the company's long-standing asset liability managementstrategy, its "plain vanilla" interest rate swaps hedging loans,deposits and borrowings, with a notional value of $1.1 billion, added$8.3 million to net interest income in the first quarter of 2004,compared with $7.5 million in the first quarter of 2003 and $8.3million in the fourth quarter of 2003. These amounts included $6.0million, $4.5 million, and $6.1 million, respectively, for interestswaps qualifying as fair value hedges. Income from swaps qualifying ascash-flow hedges was $2.3 million for the first quarter of 2004,compared with $3.0 million for the first quarter of 2003, and $2.2million for the fourth quarter of 2003. Income from existing swapsqualifying as cash-flow hedges of loans expected to be recorded in netinterest income within the next 12 months is $6.5 million.

Interest recovered on nonaccrual and charged-off loans included innet interest income for the first quarter of 2004 was $0.7 million,compared with $0.6 million for first quarter of 2003, and $0.3 millionfor the fourth quarter of 2003.

NONINTEREST INCOME

In the first quarter of 2004, noninterest income increased to$46.6 million, up 19 percent from $39.0 million in the first quarterof 2003. This growth was mainly attributable to the CCM acquisitionwhich was completed on April 1, 2003. Noninterest income was 3 percentlower than the fourth quarter of 2003 due to the absence of PML feesin the first quarter of 2004. This more than offset an increase intrust and investment fees.

As a percentage of total revenues, noninterest income was 26percent for the first quarter of 2004 compared with 23 percent and 27percent for the first quarter of 2003 and the fourth quarter of 2003,respectively.

Wealth Management

 At or for the three months ended At or for March 31, the three months % endedDollars in millions Change December 2004 2003 31, 2003-------------------------------- --------- --------- ------ ---------Trust and Investment Fees $15.6 $6.5 138 $14.2Brokerage and Mutual Fund Fees 8.7 8.9 (2) 9.1Assets Under Administration 30,532.3 19,840.8 54 28,835.3Assets Under Management (1)(2) 14,339.3 6,978.0 105 13,610.8(1) Included above in assets under administration(2) Excludes $3,591 million and $2,858 million of assets undermanagement for the CCM minority-owned asset managers as of March 31,2004 and December 31, 2003, respectively

Assets under management at March 31, 2004 increased from the sameperiod last year primarily due to the CCM acquisition. New business,aided by strong relative investment performance and higher marketvalues, also contributed to the increase during the first quarter of2004. The trust and investment fee revenue increase over both thefirst and fourth quarters of 2003 was driven by higher balances undermanagement or administration. Increases in market values are reflectedin fee income primarily on a trailing-quarter basis. Brokerage andmutual fund fees are down primarily due to a decline in money-marketbalances.

Other Noninterest Income

Cash management and deposit transaction fees for the first quarterof 2004 decreased 1 percent from the first quarter of 2003. Cashmanagement and deposit transaction fees increased 4 percent from thefourth quarter of 2003 due to the recognition in arrears of annualfees.

International services fees for the first quarter of 2004 were up18 percent over the same period last year primarily due to higherforeign exchange and trade finance income. These fees were essentiallythe same compared with the fourth quarter of 2003.

Other income in the first quarter of 2004 declined $1.4 millionand $2.9 million from the first quarter and fourth quarter of 2003,respectively. The decline from one year ago was primarily attributableto the absence of $1.2 million of fees received from the sale ofcertain merchant credit card business and $0.2 million of interest onloans available for sale. The decline from the fourth quarter lastyear was due primarily to the absence of $2.6 million in PML fees.

The company realized $0.6 million in gains on the sale of loans,assets and debt repurchase, and gains on the sale of securities forthe first quarter of 2004, compared with $1.3 million in gains for thefirst quarter of 2003 and $0.5 million in gains for the fourth quarterof 2003.

NONINTEREST EXPENSE

Noninterest expense was $94.5 million in the first quarter of2004, up 11 percent from $85.4 million for the first quarter of 2003and down 1 percent from $95.1 million for the fourth quarter of 2003.Compared with the first quarter of 2003, expenses grew primarilybecause of the acquisition of CCM. In addition, first-quarter 2004noninterest expense included the cost of restricted stock awards madein the second quarter of 2003 and the first quarter of 2004. Theserestricted stock awards continue to replace a portion of the stockoption grants that are part of the company's equity compensationprogram.

The efficiency ratio for the first quarter of 2004 was 53.39percent, compared with 50.28 percent for the first quarter of 2003 and52.77 percent for the fourth quarter of 2003. The increase in theefficiency ratio over the year ago period is primarily attributable tothe acquisition of CCM.

INCOME TAXES

The first-quarter 2004 effective tax rate was 37.5 percent,compared with 36.6 percent for all of 2003. The effective tax ratereflects changes in the mix of tax rates applicable to income beforetax. Quarterly comparisons with the first three quarters of 2003 willbe impacted by the real estate investment trust ("REIT") state taxbenefits which were added to net income in the first three quarters of2003 and were reversed in the fourth quarter of 2003.

CREDIT QUALITY

The company made no provision for credit losses in the firstquarter of 2004. This was attributable to the continued strong creditquality of its portfolio; a low level of net charged-off andnonaccrual loans; management's ongoing assessment of the creditquality of the portfolio, modest loan growth and an improving economicenvironment. Management believes the allowance for credit losses isadequate to cover risks in the portfolio at March 31, 2004.

 At or for the three months At or ended for the March 31, three months % endedDollars in millions Change December 31, 2004 2003 2003----------------------------------- -------- -------- ------ ---------Provision For Credit Losses $- $17.5 (100) $-Net Loan Charge-Offs 0.9 12.5 (93) 0.2Annualized Percentage of NetCharge-Offs to Average Loans 0.05 % 0.64 % (92) 0.01 %Nonperforming Assets $42.7 $99.9 (57) $42.3Percentage of Nonaccrual Loansand ORE to Total Loans and ORE 0.54 % 1.28 % (58) 0.54 %Allowance for Credit Losses $165.1 $169.5 (3) $166.0Percentage of Allowance for Credit Losses to Outstanding Loans 2.07 % 2.16 % (4) 2.11 %Percentage of Allowance for Credit Losses to Nonaccrual Loans 386.29 169.93 127 392.65

At March 31, 2004, approximately 40 percent of the nonperformingassets were loans to Northern California clients, and 26 percent were3 dairy credits. The remaining 34 percent were loans to otherborrowers with no major industry concentrations.

At March 31, 2004, the company's loan portfolio includedapproximately $478.7 million of loans managed in Northern Californiaoffices. In addition, the portfolio included approximately $138.3million in outstanding dairy loans, an industry which the companyexpects to exit over the next 21 months.

OUTLOOK

Management continues to expect net income per diluted common sharefor 2004 to be approximately 7 to 9 percent higher than net income perdiluted common share for 2003, based on current economic conditionsand the business indicators below, which remain as previouslyindicated except for the provision for credit losses:

- Average loan growth 6 to 9 percent

-- Average deposit growth 6 to 9 percent

-- Net interest margin 4.50 to 4.70 percent

-- Provision for credit losses $10 million to $20 million

-- Noninterest income growth 6 to 8 percent

-- Noninterest expense growth 8 to 10 percent

-- Effective tax rate 36 to 38 percent

In light of strong credit quality, the company has reduced itsestimated provision for credit losses for 2004. However, the companyreaffirms its 2004 earnings per share guidance range at this time. Thecompany considers that it is premature to modify this guidance inlight of modest commercial loan demand to date. Our expectations for2004 are still built on the assumption that short-term interest rateswill stay where they are until later this year. An increase ininterest rates sooner will increase net interest income since thecompany is naturally asset-sensitive.

CAPITAL LEVELS

Total risk-based capital and Tier 1 risk-based capital ratios atMarch 31, 2004 were 14.39 percent and 10.63 percent, compared with theminimum "well capitalized" capital ratios of 10 percent and 6 percent,respectively. The company's Tier 1 leverage ratio at March 31, 2004was 7.58 percent. Total risk-based capital, Tier 1 risk-based capitaland the Tier 1 leverage ratios at December 31, 2003 were 14.86percent, 10.81 percent and 7.48 percent, respectively.

STOCK REPURCHASE

On March 24, 2004, City National Corporation's Board of Directorsauthorized the repurchase of one million additional shares of CityNational Corporation stock, following completion of the company'sprevious buyback initiatives. On January 22, 2003, the Board ofDirectors had authorized a one-million-share stock buyback program.This program was completed during the first quarter of 2004 with therepurchase of 249,900 shares at an average cost of $58.23. The averagecost for the entire one-million-share buyback program was $46.41 pershare. On July 15, 2003, the Board of Directors authorized therepurchase of 500,000 additional shares of City National Corporationstock, following completion of the company's January 22, 2003 buybackinitiative. During the first quarter of 2004, 483,100 shares wererepurchased under this program at an average cost of $59.68 per shareleaving 16,900 shares remaining for repurchase before the initiationof the new one million share program. The shares purchased under thebuyback programs will be reissued for acquisitions, upon the exerciseof stock options, and for other general corporate purposes. There were1,754,657 treasury shares at March 31, 2004.

CONFERENCE CALL

City National Corporation will host a conference call thisafternoon to discuss results for the first quarter of 2004. The callwill begin at 2:00 p.m. PDT. Analysts and investors may dial in andparticipate in the question/answer session. To access the call, pleasedial (800) 901-5241 and enter pass code 71982227. A listen-only livebroadcast of the call also will be available on the investor relationspage of the company's website at www.cnb.com. There, it will bearchived and available for 12 months.

ABOUT CITY NATIONAL

City National Corporation is a financial services company with$13.2 billion in total assets. Its wholly owned subsidiary, CityNational Bank, is California's Premier Private and Business Bank(SM).The bank provides banking, investment, and trust services through 53offices, including 12 full-service regional centers, in SouthernCalifornia, the San Francisco Bay Area, and New York City. The companyand its affiliates manage or administer more than $30 billion inclient trust and investment assets.

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

This news release contains forward-looking statements about thecompany for which the company claims the protection of the safe harborprovisions contained in the Private Securities Litigation Reform Actof 1995.

Forward-looking statements are based on management's knowledge andbelief as of today and include information concerning the company'spossible or assumed future financial condition, and its results ofoperations, business and earnings outlook. These forward-lookingstatements are subject to risks and uncertainties. A number offactors, some of which are beyond the company's ability to control orpredict, could cause future results to differ materially from thosecontemplated by such forward-looking statements. These factors include(1) the unknown economic impact of state, county and city budgetissues, (2) changes in interest rates, (3) significant changes inbanking laws or regulations, (4) increased competition in thecompany's market, (5) other-than-expected credit losses, (6)earthquake or other natural disasters impacting the condition of realestate collateral, (7) the effect of acquisitions and integration ofacquired businesses, and (8) the impact of proposed and/or recentlyadopted changes in regulatory, judicial, or legislative tax treatmentof business transactions, particularly recently enacted California taxlegislation and the December 31, 2003 announcement by the FTBregarding the taxation of REITs and RICs. Management cannot predict atthis time the severity or duration of the effects of the recentbusiness slowdown on our specific business activities andprofitability. Weaker or a further decline in capital and consumerspending, and related recessionary trends could adversely affect ourperformance in a number of ways including decreased demand for ourproducts and services and increased credit losses. Likewise, changesin deposit interest rates, among other things, could slow the rate ofgrowth or put pressure on current deposit levels. Forward-lookingstatements speak only as of the date they are made, and the companydoes not undertake to update forward-looking statements to reflectcircumstances or events that occur after the date the statements aremade, or to update earnings guidance including the factors thatinfluence earnings.

For a more complete discussion of these risks and uncertainties,see the company's Annual Report on Form 10-K for the year-endedDecember 31, 2003, and particularly the section of Management'sDiscussion and Analysis therein titled "Cautionary Statement forPurposes of the 'Safe Harbor' Provisions of the Private SecuritiesLitigation Reform Act of 1995."

CITY NATIONAL CORPORATION----------------------------------------------------------------------CONSOLIDATED BALANCE SHEET (unaudited) (Dollars in thousands, except per share amount)---------------------------------------------------------------------- March 31, ----------------------------------- 2004 2003 % Change ------------ ------------ ---------Assets Cash and due from banks $472,541 $448,152 5 Federal funds sold 519,000 615,000 (16) Due from banks - interest bearing 34,570 22,975 50 Securities 3,651,722 2,585,097 41 Loans (net of allowance for credit losses of $165,072 and $169,480) 7,802,567 7,663,343 2 Other assets 740,124 677,905 9 ------------ ------------ Total assets $13,220,524 $12,012,472 10 ============ ============Liabilities and Shareholders' Equity Noninterest-bearing deposits $5,525,627 $4,625,439 19 Interest-bearing deposits 5,609,050 5,238,407 7 ------------ ------------ Total deposits 11,134,677 9,863,846 13 Federal funds purchased and securities sold under repurchase agreements 88,063 156,002 (44) Other short-term borrowed funds 50,125 140,125 (64) Subordinated debt 300,758 302,573 (1) Other long-term debt 239,804 274,001 (12) Other liabilities / minority interest 167,167 154,236 8 ------------ ------------ Total liabilities 11,980,594 10,890,783 10 Shareholders' equity 1,239,930 1,121,689 11 ------------ ------------ Total liabilities and shareholders' equity $13,220,524 $12,012,472 10 ============ ============ Book value per share $25.54 $23.09 11 Number of shares at period end 48,553,409 48,588,514 -CONSOLIDATED STATEMENT OF INCOME (unaudited) (Dollars in thousands, except per share amount)---------------------------------------------------------------------- For the three months ended March 31, ----------------------------------- 2004 2003 % Change ------------ ------------ ---------Interest income $143,797 $145,676 (1)Interest expense (12,825) (17,459) (27) ------------ ------------Net interest income 130,972 128,217 2Provision for credit losses - (17,500) (100) ------------ ------------Net interest income after provision for credit losses 130,972 110,717 18Noninterest income 46,570 38,976 19Noninterest expense (94,531) (85,412) 11Minority interest (1,600) (475) 237 ------------ ------------Income before taxes 81,411 63,806 28Income taxes (30,513) (20,151) 51 ------------ ------------Net income $50,898 $43,655 17 ============ ============Net income per share, basic $1.04 $0.89 17 ============ ============Net income per share, diluted $1.00 $0.87 15 ============ ============Dividends paid per share $0.32 $0.21 52 ============ ============Shares used to compute per share net income, basic 48,731,524 48,778,986Shares used to compute per share net income, diluted 50,679,109 50,124,079CITY NATIONAL CORPORATION----------------------------------------------------------------------SELECTED FINANCIAL INFORMATION (unaudited) (Dollars in thousands)----------------------------------------------------------------------Period end March 31, ----------------------------------- 2004 2003 % Change ------------ ------------ ---------Loans Commercial $3,163,312 $3,401,610 (7) Residential first mortgage 1,977,952 1,762,629 12 Real estate mortgage 2,004,860 1,920,209 4 Real estate construction 741,637 676,618 10 Installment 79,878 71,757 11 ------------ ------------ Total loans $7,967,639 $7,832,823 2 ============ ============Deposits Noninterest-bearing $5,525,627 $4,625,439 19 Interest-bearing, core 4,760,018 4,182,320 14 ------------ ------------ Total core deposits 10,285,645 8,807,759 17 Time deposits - $100,000 and over 849,032 1,056,087 (20) ------------ ------------ Total deposits $11,134,677 $9,863,846 13 ============ ============Credit Quality Nonaccrual loans and ORE Nonaccrual loans $42,733 $99,738 (57) ORE - 210 (100) ------------ ------------ Total nonaccrual loans and ORE $42,733 $99,948 (57) ============ ============ Total nonaccrual loans and ORE to total loans and ORE 0.54 1.28 (58) Loans past due 90 days or more on accrual status $5,057 $1,871 170 ============ ============ For the three months endedAllowance for Credit Losses March 31, ----------------------------------- 2004 2003 % Change ------------ ------------ ---------Beginning balance $165,986 $164,502 1 Provision for credit losses - 17,500 (100) Charge-offs (4,349) (14,882) (71) Recoveries 3,435 2,360 46 ------------ ------------ Net charge-offs (914) (12,522) (93) ------------ ------------Ending Balance $165,072 $169,480 (3) ============ ============Total net charge-offs to average loans (annualized) (0.05) (0.64) (92)Allowance for credit losses to total loans 2.07 2.16 (4)Allowance for credit losses to nonaccrual loans 386.29 169.93 127 For the three months ended March 31, ----------------------------------- 2004 2003 % Change ------------ ------------ ---------Yields and Rates for the Period Loans 5.47 % 5.98 % (9) Securities 4.58 5.29 (13) Interest-earning assets 5.10 5.75 (11) Interest-bearing deposits 0.71 1.07 (34) Other borrowings 1.97 2.21 (11) Total interest bearing liabilites 0.83 1.19 (30) Net interest margin 4.66 5.07 (8)CITY NATIONAL CORPORATION----------------------------------------------------------------------SELECTED FINANCIAL INFORMATION (unaudited) (Dollars in thousands)---------------------------------------------------------------------- For the three months ended March 31, ----------------------------------- 2004 2003 % Change ------------ ------------ ---------Average BalancesLoans Commercial $3,172,149 $3,560,411 (11) Residential first mortgage 1,952,305 1,756,838 11 Real estate mortgage 2,001,733 1,908,554 5 Real estate construction 678,479 663,956 2 Installment 81,667 74,579 10 ------------ ------------ Total loans $7,886,333 $7,964,338 (1) ============ ============Securities $3,462,547 $2,414,970 43Due from banks - interest bearing 78,348 26,826 192Interest-earning assets 11,601,877 10,539,123 10Assets 12,606,754 11,480,626 10Core deposits 9,621,156 8,326,485 16Deposits 10,533,471 9,373,839 12Shareholders' equity 1,222,017 1,117,573 9Noninterest income Trust and investment fees $15,588 $6,538 138 Brokerage and mutual fund fees 8,726 8,942 (2) Cash management and deposit transaction fees 10,826 10,917 (1) International services 5,126 4,328 18 Bank owned life insurance 831 714 16 Other 4,844 6,205 (22) ------------ ------------ Subtotal - core 45,941 37,644 22 Gain on sale of loans and assets/debt repurchase - 102 (100) Gain on sale of securities 629 1,230 (49) ------------ ------------ Total $46,570 $38,976 19 ============ ============Total revenue $177,542 $167,193 6 ============ ============Noninterest expense Salaries and employee benefits $59,676 $51,805 15 ------------ ------------ All Other Net occupancy of premises 7,308 6,969 5 Professional 6,106 6,436 (5) Information services 4,522 4,253 6 Depreciation 3,228 3,119 3 Marketing and advertising 3,507 3,112 13 Office services 2,419 2,570 (6) Amortization of intangibles 1,759 1,976 (11) Equipment 765 666 15 Other operating 5,241 4,506 16 ------------ ------------ Total all other 34,855 33,607 4 ------------ ------------ Total $94,531 $85,412 11 ============ ============Selected RatiosFor the Period Return on average assets 1.62 % 1.54 % 5 Return on average shareholders' equity 16.75 15.84 6 Efficiency ratio (1) 53.39 50.28 6 Dividend payout ratio 30.71 22.91 34Period End Tier 1 risk-based capital ratio 10.63 10.30 3 Total risk-based capital ratio 14.39 14.46 - Tier 1 leverage ratio 7.58 7.65 (1)(1) The efficiency ratio is defined as noninterest expense excludingORE expense divided by total revenue (net interest income on atax-equivalent basis and noninterest income).

CONTACT: City National Stephen McAvoy, 213-347-2653 (Financial/Investors) Cary Walker, 213-833-4715 (Media) or Abernathy MacGregor Group Ian Campbell, 213-630-6550 (Financial/Investors) SOURCE: City National Corporation