To view and/or print a PDF version of this release, please click here.

Conference Call: Today 2:00 p.m. PDT, 800.573.4842, Pass Code 55871547

LOS ANGELES, Jul 20, 2005 (BUSINESS WIRE) - City National Corporation (NYSE:CYN), parent company of whollyowned City National Bank, today reported second-quarter net income of$57.7 million, an increase of 11 percent from the same period lastyear and 4 percent from the first quarter of 2005.

Earnings per share reached $1.13, up 10 percent from the secondquarter of 2004 and 4 percent from the first quarter of this year.

Year to date, City National has earned net income of $113.2million, or $2.22 per share.

HIGHLIGHTS

-- Second-quarter revenue rose 11 percent over the second quarter of 2004.

-- Average loans grew to $8.8 billion, up 9 percent from the second quarter of 2004.

-- Credit quality was again strong. Nonaccrual loans fell to $22.2 million, a 47 percent decline from June 30, 2004. The company required no provision for credit losses, remaining adequately reserved at 1.66 percent of total loans.

-- Average deposits for the second quarter reached $11.7 billion, up 5 percent from the same period last year.

-- The second-quarter net interest margin was 4.73 percent, compared with 4.49 percent for the same period last year, and 4.75 percent for the first quarter of 2005.

"City National performed well in the second quarter," said ChiefExecutive Officer Russell Goldsmith. "Double-digit revenue, income andEPS growth primarily reflect encouraging growth in loans and netinterest income, excellent credit quality and further increases in ourwealth management and other noninterest income. With rising interestrates, a solid California economy, a growing organization and oursuccessful leadership transition in this quarter, City National iswell-positioned to achieve its goals in 2005 and beyond."

For the three For the three months ended months endedDollars in millions, June 30, March 31,except per share 2005 2004 % 2005 % Change Change----------------------- ------------------- ------ ---------- ------Earnings Per Share $1.13 $1.03 10 $1.09 4Net Income 57.7 52.2 11 55.5 4Average Assets 14,040.6 13,223.4 6 13,873.4 1Return on Average Assets 1.65 % 1.59 % 4 1.62 % 2Return on Average Equity 17.03 17.07 0 16.63 2

OUTLOOK

Based on current economic conditions and business indicators,management continues to expect earnings per share for 2005 to beapproximately 11 percent to 14 percent higher than earnings per sharefor 2004.

ASSETS

Total assets at June 30, 2005 reached $14.5 billion, up 7 percentfrom the second quarter of last year, primarily because of loangrowth. Total assets grew 4 percent from the first quarter of 2005.

REVENUE

Second-quarter revenue (net interest income plus noninterestincome) grew to $201 million, up 11 percent from the second quarter of2004 and 2 percent from the first quarter of this year.

NET INTEREST INCOME

Fully taxable-equivalent net interest income reached $152.7million, a 13 percent increase over the second quarter of 2004, and 2percent higher than the first quarter of this year.

Net interest income increased approximately $3 million from thefirst quarter of this year, even though City National's net interestmargin declined 2 basis points. The margin narrowed primarily becauseaverage loans grew faster than average deposits and the yield on thecompany's securities portfolio fell 13 basis points.

The bank's prime rate was 6.25 percent on June 30, up from 4.25percent at the same time last year, and 5.75 percent on March 31,2005.

For the For the three three months months ended % ended %Dollars in millions June 30, Change March 31, Change 2005 2004 2005----------------------- ---------- ---------- ------ ---------- ------Average Loans $8,762.4 $8,053.9 9 $8,585.2 2Average Securities 4,071.5 3,601.0 13 4,115.4 (1)Average Earning Assets 12,950.3 12,137.3 7 12,798.5 1Average Deposits 11,678.5 11,121.5 5 11,572.4 1Average Core Deposits 10,781.6 10,310.7 5 10,628.3 1Fully Taxable- EquivalentNet Interest Income 152.7 135.6 13 149.9 2Net Interest Margin 4.73 % 4.49 % 5 4.75 % (0)

Second-quarter average loan balances increased 9 percent over thesame period last year. Residential mortgage loans grew 16 percent,while commercial loans and commercial real estate mortgage loans eachrose 6 percent. Real estate construction loans fell 5 percent,primarily as the result of accelerated repayments due to the fast paceof new home sales and early refinancing by income property developerstaking advantage of low interest rates. Compared with the firstquarter of this year, average loans increased in all categories exceptreal estate construction.

Year to date, the company's average loan balances increased 9percent over the first six months of 2004.

Total loan balances at June 30, 2005 were $300 million higher thanthey were at March 31, 2005, reflecting the growth of commerciallending and most real estate-related loan categories.

City National's average deposits reached $11.7 billion in thesecond quarter, up 5 percent from the same period last year and 1percent from the first quarter of 2005.

Period-end deposits were 3 percent higher than they were at March31 of this year.

Year to date, the company's average deposits grew 7 percent overthe first six months of 2004.

As part of its long-standing asset-liability management strategy,the company uses "plain-vanilla" interest-rate swaps to hedge loans,deposits and borrowings. The notional value of these swaps was $1.4billion at June 30, 2005, up $0.3 billion from the second quarter oflast year but unchanged from the first quarter of this year.

NONINTEREST INCOME

Second-quarter 2005 noninterest income of $51.4 million was 6percent higher than the second quarter of 2004, due primarily tohigher trust and investment fees. Noninterest income was 26 percent oftotal revenue in the second quarter of 2005, unchanged from the secondquarter of last year and the first quarter of this year.

Wealth Management

Trust and investment fees increased 18 percent over the secondquarter of 2004, due primarily to an increase in balances undermanagement or administration. Assets under direct management grew morethan 18 percent from the same period last year, largely as the resultof new business, a strong relative investment performance and highermarket values. Increases in market values are reflected in fee incomeprimarily on a trailing-quarter basis.

At or for At or for the the three three months months ended % ended %Dollars in millions June 30, Change March 31, Change 2005 2004 2005-------------------------- --------- --------- ------ --------- ------Trust and Investment Fee Revenue $19.6 $16.7 18 $19.4 1Brokerage and Mutual Fund Fees 9.9 9.4 6 9.9 1Assets Under Management (1) 17,257.5 14,567.2 18 16,378.8 5Assets Under Managementor Administration 36,972.9 31,749.9 16 35,829.2 3(1) Excludes $5,539, $3,275, and $6,071 million of assets undermanagement for the CCM minority-owned asset managers as of June 30,2005, June 30, 2004, and March 31, 2005, respectively

Other Noninterest Income

Second-quarter cash management and deposit transaction fees fell19 percent from the same period last year and 2 percent from the firstquarter of 2005, due largely to a higher earnings credit for clientswho maintain deposit balances to pay for services.

International service fees for the second quarter of 2005 grew 17percent from the same period last year and 21 percent from the firstquarter of this year. Behind this growth were sharp increases in thedemand for foreign exchange and standby letters of credit.

Other income was 15 percent higher in the second quarter of 2005than it was for the same period one year ago. However, it fell 11percent from the first quarter of 2005, reflecting a decline in thefees collected for participating mortgage loans and other loan-relatedservices.

In the second quarter of 2005, the company recorded $1 million ingains on the sale of assets and securities, compared with gains of$0.9 million for the second quarter of 2004 and $0.3 million in forthe first quarter of this year.

NONINTEREST EXPENSE

Second-quarter noninterest expense amounted to $109 million, up 12percent from the same period last year and 1 percent from the firstquarter of 2005. Noninterest expense is up 13 percent year to date.

Legal and professional fees increased $3.4 million, or 47 percent,from the second quarter of 2004 and 24 percent from the first quarterof this year. These increases reflect costs associated with thecompany's commitment to further strengthen compliance with the BankSecrecy Act and the USA Patriot Act.

Staffing expenses were 8 percent higher than they were one yearago, due to the addition of new sales, business development,regulatory compliance and risk management personnel. However, theseexpenses fell 4 percent from the first quarter of 2005.

The company's second-quarter efficiency ratio was 53.39 percent,compared with 52.72 percent for the second quarter of 2004, and 54.10percent for the first quarter of this year.

CREDIT QUALITY

For the eighth consecutive quarter, City National made noprovision for credit losses. This decision reflected strong creditquality, management's ongoing assessment of the loan portfolio, loangrowth and an improving economic environment. Net loan recoveries inthe second quarter amounted to $1.2 million, compared with $0.04million for the second quarter of 2004 and $0.20 million for the firstquarter of this year. Nonaccrual loans at June 30, 2005 were $22.2million, down 47 percent from June 30, 2004 and 26 percent from March31, 2005. They now amount to 25 basis points of total loans.

At June 30, 2005 the allowance for loan losses was $148 million or1.66 percent of total loans. The reserve for unfunded creditcommitments was $13.8 million.

INCOME TAXES

The company's effective tax rate for the second quarter was 37.3percent, compared with 37.4 percent for all of 2004. As previouslyreported, the California Franchise Tax Board has taken the positionthat certain real estate investment trust and registered investmentcompany tax deductions shall be disallowed under California lawadopted in the fourth quarter of 2003. While management continues tobelieve that the tax benefits realized in previous years wereappropriate, the company deemed it prudent to participate in thestatutory Voluntary Compliance Initiative-Option 2, requiring paymentof all California taxes and interest on the disputed 2000-through-2002tax years, and permitting the company to claim a refund for theseyears while avoiding certain potential penalties.

City National has elected to proceed with its claim for refund asallowed by law. The company's strategic and financial positions remainunchanged from the first quarter of this year. Its receivable relatedto the disputed taxes is $23.7 million, net of previously establishedreserves.

CAPITAL LEVELS

The company remains well-capitalized. Total risk-based capital andTier 1 risk-based capital ratios at June 30, 2005 were 15.45 percentand 11.91 percent, compared with the minimum regulatory standards of10 percent and 6 percent, respectively, for "well-capitalized"institutions. The company's Tier 1 leverage ratio at June 30, 2005 was8.39 percent, well above the regulatory minimum ratio of 5 percent.

At March 31, 2005 total risk-based capital, Tier 1 risk-basedcapital and the Tier 1 leverage ratios were 15.27 percent, 11.69percent and 8.12 percent, respectively.

Shareholders' equity to assets at June 30, 2005 was 9.68 percent,compared with 9.10 percent at the same time last year and 9.49 percentat March 31 of this year.

The accumulated other comprehensive loss at June 30, 2005 was$12.9 million, compared with $38.4 million at the same time last yearand $43.3 million at March 31, 2005. The average duration of totalavailable-for-sale securities at June 30 was 3.1 years, compared with3.8 years at the same time last year and 3.5 years at March 31, 2005.

CONFERENCE CALL

City National Corporation will host a conference call thisafternoon to discuss results for the second quarter of 2005. 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) 573-4842 and enter pass code 55871547. A listen-only livebroadcast of the call also will be available on the investor relationspage of the company's Website at cnb.com. There, it will be archivedand available for 12 months.

ABOUT CITY NATIONAL

City National Corporation is a financial services company with$14.5 billion in total assets. Its wholly owned subsidiary, CityNational Bank, is California's Premier Private and Business Bank(R).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. CityNational and its affiliates manage or administer approximately $37billion in client trust and investment assets, including more than $17billion under direct management.

City National is in the process of opening four new branches inSouthern California and relocating three more. The company, which iscelebrating its 30th anniversary in Orange County, added a new officein Anaheim on July 18. In two weeks, it will open another one inNewport Beach.

In May, the company announced that Chief Credit Officer ChrisWarmuth would become President of City National Bank. He succeededGeorge H. Benter, Jr., who became Vice Chairman of the bank. Thecompany also announced that former Regional Manager Dallas Haun hadbeen promoted to a newly created position as the leader of regionalprivate and commercial banking.

For more information about City National, visit the company'sWebsite at cnb.com.

SAFE-HARBOR LANGUAGE

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

Forward-looking statements are based on management's knowledge andbelief as of today and include information concerning the company'spossible or assumed future financial condition, and its results ofoperations, business and earnings outlook. These forward-lookingstatements are subject to risks and uncertainties. A number offactors, some of which are beyond the company's ability to control orpredict, could cause future results to differ materially from thosecontemplated by such forward-looking statements. These factors include(1) changes in interest rates, (2) significant changes in banking lawsor regulations, (3) increased competition in the company's markets,(4) other-than-expected credit losses due to real estate cycles orother economic events, (5) earthquake or other natural disastersaffecting the condition of real estate collateral, (6) the effect ofacquisitions and integration of acquired businesses, and (7) theimpact of changes in regulatory, judicial, or legislative taxtreatment of business transactions. Management cannot predict at thistime the extent of the economic recovery, and a slowing or reversalcould adversely affect our performance in a number of ways includingdecreased demand for our products and services and increased creditlosses. Likewise, changes in deposit interest rates, among otherthings, could slow the rate of growth or put pressure on currentdeposit levels. Forward-looking statements speak only as of the datethey are made, and the company does not undertake to updateforward-looking statements to reflect circumstances or events thatoccur 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 the company's report on Form 10-Q for the quarter ended March 31,2005, and its Annual Report on

Form 10-K for the year ended December 31, 2004 and particularlythe section of Management's Discussion and Analysis therein titled"Cautionary Statement for Purposes of the 'Safe Harbor' Provisions ofthe Private Securities Litigation Reform Act of 1995."

CITY NATIONAL CORPORATIONFINANCIAL HIGHLIGHTS(unaudited) Three Months Six Months ------------------------ --------------------------For The Period % % Ended June 30, 2005 2004 Change 2005 2004 Change------------------ ------------------------ --------------------------Per Common Share Net Income Basic $1.18 $1.07 10 $2.30 $2.11 9 Diluted 1.13 1.03 10 2.22 2.03 9 Dividends 0.36 0.32 13 0.72 0.64 13 Book value 28.51 25.05 14Results of Operations:(In millions) Net interest income $150 $132 13 $296 $263 12 Net interest income (Fully tax-equivalent) 153 136 13 303 270 12 Total revenue 201 181 11 398 358 11 Provision for credit losses - - - - - - Net income 58 52 11 113 103 10Financial Ratios: Performance Ratios: Return on average assets 1.65 % 1.59 % 1.64 % 1.60 % Return on average shareholders' equity 17.03 17.07 16.83 16.91 Average shareholders' equity to average assets 9.68 9.30 9.71 9.42 Net interest margin 4.73 4.49 4.74 4.54 Efficiency ratio 53.39 52.72 53.74 53.05 Capital Adequacy Ratios (Period end): Shareholders' equity to total assets 9.68 9.10 Tier 1 leverage 8.39 7.68 Tier 1 risk-based capital 11.91 11.08 Total risk-based capital 15.45 14.77Asset Quality Ratios: Allowance for loan losses to: Total loans 1.66 % 1.89 % Nonaccrual loans 667.52 366.39 Nonperforming assets to: Total loans and nonperforming assets 0.25 0.51 Total assets 0.15 0.31 Net (charge-offs)/recoveries to Average total loans (annualized) 0.05 % n/m % 0.03 (0.02)Average Balances: (In millions) Loans $8,762 $8,054 9 $8,674 $7,970 9 Interest-earning assets 12,950 12,137 7 12,875 11,870 8 Assets 14,041 13,223 6 13,957 12,920 8 Core deposits 10,782 10,311 5 10,706 9,966 7 Deposits 11,679 11,122 5 11,626 10,828 7 Interest-bearing liabilities 6,527 6,402 2 6,589 6,316 4 Shareholders' equity 1,359 1,230 10 1,356 1,226 11Period-End Balances: (In millions) Loans $8,886 $8,125 9 Assets 14,476 13,486 7 Core deposits 11,141 10,664 4 Deposits 12,152 11,455 6 Shareholders' equity 1,401 1,228 14Wealth Management: (In millions) (1) Assets under management $17,258 $14,567 18 Assets under management and administration 36,973 31,750 16(1) Excludes $5,539 and $3,275 million of assets under managementfor the Convergent Capital Management minority-owned asset managers asof June 30, 2005 and June 30, 2004, respectively.CITY NATIONAL CORPORATIONCONSOLIDATED STATEMENTS OF INCOME(unaudited) Three Months Ended Six Months Ended(Dollars in thousands June 30, June 30, except per share data) -------------------- --------------------- 2005 2004 % Change 2005 2004 % Change ---------------------------------------------------------------------Net Interest Income $149,646 $132,275 13 $296,072 $263,247 12Provision for Credit Losses - - - - - -Noninterest Income Trust and investment fees 19,632 16,664 18 39,069 32,252 21 Brokerage and mutual fund fees 9,928 9,367 6 19,796 18,093 9 Cash management and deposit transaction fees 8,874 10,942 (19) 17,884 22,040 (19) International services 5,908 5,042 17 10,796 10,168 6 Bank-owned life insurance 652 715 (9) 1,516 1,546 (2) Other service charges and fees 5,359 4,665 15 11,372 9,237 23 Gain (loss) on sale of assets 162 - n/m 185 - n/m Gain (loss) on sale of securities 844 871 (3) 1,099 1,500 (27) --------- --------- --------- --------- Total noninterest income 51,359 48,266 6 101,717 94,836 7Noninterest Expense Salaries and employee benefits 63,839 59,306 8 130,471 118,982 10 Net occupancy of premises 8,727 7,020 24 16,343 13,662 20 Legal and professional fees 10,791 7,359 47 19,505 14,131 38 Information services 5,010 4,588 9 10,176 9,110 12 Depreciation 3,540 3,274 8 7,155 6,502 10 Amortization of intangibles 1,441 1,760 (18) 2,882 3,519 (18) Marketing and advertising 3,943 3,812 3 7,517 7,319 3 Office services 2,688 2,487 8 5,177 4,906 6 Equipment 646 636 2 1,195 1,401 (15) Minority interest expense 1,532 1,306 17 3,343 2,906 15 Other 6,796 5,413 26 13,504 10,654 27 --------- --------- --------- --------- Total noninterest expense 108,953 96,961 12 217,268 193,092 13 --------- --------- --------- ---------Income Before Taxes 92,052 83,580 10 180,521 164,991 9Applicable Income Taxes 34,345 31,380 9 67,353 61,893 9 --------- --------- --------- ---------Net Income $57,707 $52,200 11 $113,168 $103,098 10 ========= ========= ========= =========Other Data: Earnings per common share - basic $1.18 $1.07 10 $2.30 $2.11 9 Earnings per common share - diluted $1.13 $1.03 10 $2.22 $2.03 9 Dividends paid per common share $0.36 $0.32 13 $0.72 $0.64 13 Dividend payout ratio 30.85 % 30.06 % 3 31.43 % 30.38 % 3 Return on average assets 1.65 % 1.59 % 4 1.64 % 1.55 % 6 Return on average shareholders' equity 17.03 % 17.07 % - 16.83 % 16.42 % 2 Net interest margin (Fully taxable- equivalent) 4.73 % 4.49 % 5 4.74 % 4.57 % 4 Full-time equivalent employees 2,477 2,346 6CITY NATIONAL CORPORATIONCONSOLIDATED QUARTERLY STATEMENTS OF INCOME(unaudited) 2005 -----------------------------(Dollars in thousands Second First Year to except per share data) Quarter Quarter Date--------------------------------------- --------- --------- ---------Net Interest Income $149,646 $146,426 $296,072Provision for Credit Losses - - -Noninterest Income Trust and investment fees 19,632 19,437 39,069 Brokerage and mutual fund fees 9,928 9,868 19,796 Cash management deposit transaction fees 8,874 9,010 17,884 International services 5,908 4,888 10,796 Bank-owned life insurance 652 864 1,516 Other service charges and fees 5,359 6,013 11,372 Gain on sale of assets 162 23 185 Gain on sale of securities 844 255 1,099 --------- --------- --------- Total noninterest income 51,359 50,358 101,717Noninterest Expense Salaries and employee benefits 63,839 66,632 130,471 Net occupancy of premises 8,727 7,616 16,343 Legal and professional fees 10,791 8,714 19,505 Information services 5,010 5,166 10,176 Depreciation 3,540 3,615 7,155 Amortization of intangibles 1,441 1,441 2,882 Marketing and advertising 3,943 3,574 7,517 Office services 2,688 2,489 5,177 Equipment 646 549 1,195 Minority interest expense 1,532 1,811 3,343 Other 6,796 6,708 13,504 --------- --------- --------- Total noninterest expense 108,953 108,315 217,268Income Before Taxes 92,052 88,469 180,521Applicable Income Taxes 34,345 33,008 67,353 --------- --------- ---------Net Income $57,707 $55,461 $113,168 ========= ========= =========Other Data: Earnings per common share - basic $1.18 $1.13 $2.30 Earnings per common share - diluted $1.13 $1.09 $2.22 Dividends paid per common share $0.36 $0.36 $0.72 Dividend payout ratio 30.85 % 32.02 % 31.43 % Return on average assets 1.65 % 1.62 % 1.64 % Return on average shareholders' equity 17.03 % 16.63 % 16.83 % Net interest margin (Fully taxable- equivalent) 4.73 % 4.75 % 4.74 % Full-time equivalent employees 2,477 2,445CITY NATIONAL CORPORATIONCONSOLIDATED QUARTERLY STATEMENTS OF INCOME(unaudited) 2004 -------------------------------------------------(Dollars in Fourth Third Second First Full thousands except Quarter Quarter Quarter Quarter Year per share data)------------------- --------- --------- --------- --------- ---------Net Interest Income $145,300 $137,341 $132,275 $130,972 $545,888Provision for Credit Losses - - - - -Noninterest Income Trust and investment fees 19,264 16,850 16,664 15,588 68,366 Brokerage and mutual fund fees 9,909 9,675 9,367 8,726 37,677 Cash management deposit transaction fees 9,024 10,322 10,942 11,098 41,386 International services 5,425 5,191 5,042 5,126 20,784 Bank-owned life insurance 678 588 715 831 2,812 Other service charges and fees 5,204 4,678 4,665 4,572 19,119 Gain on sale of assets - 9 - - 9 Gain (loss) on sale of securities (7,715) 327 871 629 (5,888) --------- --------- --------- --------- --------- Total noninterest income 41,789 47,640 48,266 46,570 184,265Noninterest Expense Salaries and employee benefits 60,926 59,675 59,306 59,676 239,583 Net occupancy of premises 9,454 7,513 7,020 6,642 30,629 Legal and professional fees 11,938 8,193 7,359 6,772 34,262 Information services 5,170 4,522 4,588 4,522 18,802 Depreciation 3,503 3,614 3,274 3,228 13,619 Amortization of intangibles 1,798 1,763 1,760 1,759 7,080 Marketing and advertising 4,513 3,666 3,812 3,507 15,498 Office services 2,955 2,444 2,487 2,419 10,305 Equipment 581 478 636 765 2,460 Minority interest expense 584 1,502 1,306 1,600 4,992 Other 6,625 5,893 5,413 5,241 23,172 --------- --------- --------- --------- --------- Total noninterest expense 108,047 99,263 96,961 96,131 400,402 --------- --------- --------- --------- ---------Income Before Taxes 79,042 85,718 83,580 81,411 329,751Applicable Income Taxes 29,296 32,240 31,380 30,513 123,429 --------- --------- --------- --------- ---------Net Income $49,746 $53,478 $52,200 $50,898 $206,322 ========= ========= ========= ========= =========Other Data: Earnings per common share - basic $1.01 $1.09 $1.07 $1.04 $4.21 Earnings per common share - diluted $0.97 $1.04 $1.03 $1.00 $4.04 Dividends paid per common share $0.32 $0.32 $0.32 $0.32 $1.28 Dividend payout ratio 31.81 % 29.51 % 30.06 % 30.71 % 30.50 % Return on average assets 1.40 % 1.56 % 1.59 % 1.62 % 1.54 % Return on average shareholders' equity 14.87 % 16.80 % 17.07 % 16.75 % 16.34 % Net interest margin (Fully taxable- equivalent) 4.54 % 4.46 % 4.49 % 4.66 % 4.54 % Full-time equivalent employees 2,347 2,348 2,346 2,341CITY NATIONAL CORPORATIONCONSOLIDATED PERIOD END BALANCE SHEET(unaudited) 2005 --------------------------- Second First(In thousands) Quarter Quarter-------------------------------------- ------------- -------------Assets Cash and due from banks $406,709 $386,999 Federal funds sold 400,000 190,000 Due from banks - interest-bearing 34,676 36,982 Securities-available-for-sale 4,057,267 4,018,969 Trading account securities 22,337 37,490 Loans: Commercial 3,320,836 3,082,663 Commercial real estate mortgages 1,892,187 1,919,788 Residential mortgages 2,398,627 2,323,879 Real estate construction 741,486 772,000 Equity lines of credit 310,101 274,735 Installment 223,029 212,398 ------------- ------------- Total loans 8,886,266 8,585,463 Allowance for loan losses (147,930) (147,607) ------------- ------------- Net loans 8,738,336 8,437,856 Premises and equipment, net 73,169 68,354 Goodwill 251,494 251,494 Other assets 491,610 489,894 ------------- ------------- Total assets $14,475,598 $13,918,038 ============= =============Liabilities: Deposits: Noninterest-bearing $6,468,339 $6,069,061 Interest-bearing 5,683,869 5,693,563 ------------- ------------- Total deposits 12,152,208 11,762,624 Federal funds purchased and securities sold under repurchase agreement 204,052 155,645 Other short-term borrowed funds 27,678 125 Subordinated debt 285,771 280,068 Other long-term debt 233,290 224,829 Minority Interest 25,400 25,525 Other liabilities 146,311 149,039 ------------- ------------- Total liabilities 13,074,710 12,597,855Shareholders' Equity Common stock 50,640 50,712 Additional paid-in capital 415,802 419,505 Retained earnings 1,035,589 995,688 Accumulated other comprehensive loss (12,948) (43,288) Deferred equity compensation (16,821) (19,893) Treasury shares (71,374) (82,541) ------------- ------------- Total shareholders' equity 1,400,888 1,320,183 ------------- ------------- Total liabilities and shareholders' equity $14,475,598 $13,918,038 ============= =============CITY NATIONAL CORPORATIONCONSOLIDATED PERIOD END BALANCE SHEET(unaudited) 2004 --------------------------------------------------- Fourth Third Second First(In thousands) Quarter Quarter Quarter Quarter------------------ ------------ ------------ ------------ ------------Assets Cash and due from banks $240,492 $410,694 $485,208 $472,541 Federal funds sold 427,000 890,000 595,000 519,000 Due from banks - interest- bearing 236,362 37,890 76,890 34,570 Securities- available-for- sale 4,114,298 3,780,750 3,518,757 3,612,173 Trading account securities 75,878 49,752 28,893 39,549 Loans: Commercial 3,030,363 2,912,703 2,981,806 3,086,307 Commercial Real estate mortgages 2,248,742 1,852,472 1,842,956 1,807,591 Residential mortgages 1,892,823 2,167,623 2,114,335 1,977,952 Real estate construction 847,364 797,109 782,435 741,637 Equity lines of credit 255,194 242,050 214,533 197,269 Installment 219,701 202,180 189,431 156,883 ------------ ------------ ------------ ------------ Total loans 8,494,187 8,174,137 8,125,496 7,967,639 Allowance for loan losses (148,568) (148,056) (153,271) (154,498) ------------ ------------ ------------ ------------ Net loans 8,345,619 8,026,081 7,972,225 7,813,141 Premises and equipment, net 68,624 63,097 60,488 60,175 Goodwill 253,740 253,817 253,736 253,737 Other assets 469,500 469,319 494,549 426,212 ------------ ------------ ------------ ------------ Total assets $14,231,513 $13,981,400 $13,485,746 $13,231,098 ============ ============ ============ ============Liabilities: Deposits: Noninterest- bearing $6,026,428 $5,922,689 $5,809,241 $5,525,627 Interest- bearing 5,960,487 5,942,864 5,645,678 5,609,050 ------------ ------------ ------------ ------------ Total deposits 11,986,915 11,865,553 11,454,919 11,134,677 Federal funds purchased and securities sold under repurchase agreement 204,654 71,570 94,898 88,063 Other short-term borrowed funds 125 50,125 50,125 50,125 Subordinated debt 288,934 291,073 286,896 300,758 Other long-term debt 230,416 231,882 224,488 239,804 Minority Interest 26,362 27,180 27,180 27,180 Other liabilities 145,572 130,790 119,431 150,561 ------------ ------------ ------------ ------------ Total liabilities 12,882,978 12,668,173 12,257,937 11,991,168Shareholders' Equity Common stock 50,589 50,585 50,578 50,583 Additional paid- in capital 410,216 409,597 408,463 409,235 Retained earnings 957,987 924,066 886,367 849,859 Accumulated other comprehensive income (loss) (1,352) 3,683 (38,418) 32,237 Deferred equity compensation (12,262) (13,355) (13,343) (14,343) Treasury shares (56,643) (61,349) (65,838) (87,641) ------------ ------------ ------------ ------------ Total shareholders' equity 1,348,535 1,313,227 1,227,809 1,239,930 ------------ ------------ ------------ ------------ Total liabilities and shareholders' equity $14,231,513 $13,981,400 $13,485,746 $13,231,098 ============ ============ ============ ============CITY NATIONAL CORPORATIONCREDIT LOSS EXPERIENCE(unaudited) 2005 ----------------------------- Second First Year To(Dollars in thousands) Quarter Quarter Date-------------------------------------- --------- --------- ---------Allowance for Loan LossesBalance at beginning of period $147,607 $148,568 $148,568Net (charge-offs)/recoveries: Commercial 1,067 2,117 3,184 Commercial real estate mortgages 7 (1,893) (1,886) Residential mortgages 1 2 3 Real estate construction 71 23 94 Equity lines of credit 39 1 40 Installment 5 (18) (13) --------- --------- --------- Total net (charge-offs)/recoveries 1,190 232 1,422Provision charged to expense - - -Provision allocated (to) from reserve for off-balance sheet commitments (867) (1,193) (2,060) --------- --------- ---------Balance at end of period $147,930 $147,607 $147,930 ========= ========= =========Net (Charge-Offs)/Recoveries to Average Total Loans: (annualized) Commercial 0.13 % 0.28 % 0.20 % Commercial real estate mortgages 0.00 % (0.41)% (0.20)% Residential mortgage 0.00 % 0.00 % 0.00 % Real estate construction 0.04 % 0.01 % 0.02 % Equity lines of credit 0.05 % 0.00 % 0.03 % Installment 0.01 % (0.03)% (0.01)% Total loans 0.05 % 0.01 % 0.03 %Reserve for Off-Balance Sheet Credit CommitmentsBalance at beginning of period $12,944 $11,751 $11,751 Provision for credit losses 867 1,193 2,060 --------- --------- ---------Balance at end of period $13,811 $12,944 $13,811 ========= ========= ========= 2004 ------------------------------------------------- Fourth Third Second First Full(Dollars in Quarter Quarter Quarter Quarter Year thousands)----------------------------- --------- --------- --------- ---------Allowance for Loan LossesBalance at beginning of period $148,056 $153,271 $154,498 $156,015 $156,015Net (charge-offs)/ recoveries: Commercial 1,280 (3,030) (955) 68 (2,637) Commercial real estate mortgages (1,274) (1,705) 975 (870) (2,874) Residential mortgages (3) 14 - - 11 Real estate construction 34 19 18 29 100 Equity lines of credit 1 - 1 1 3 Installment (70) (64) 6 (142) (270) --------- --------- --------- --------- --------- Total net (charge- offs)/recoveries (32) (4,766) 45 (914) (5,667)Provision charged to expense - - - - -Provision allocated (to) from reserve for off-balance sheet commitments 544 (449) (1,272) (603) (1,780) --------- --------- --------- --------- ---------Balance at end of period $148,568 $148,056 $153,271 $154,498 $148,568 ========= ========= ========= ========= =========Net (Charge-Offs)/Recoveries to Average Total Loans: (annualized) Commercial 0.16 % (0.39)% (0.12)% 0.01 % (0.09)% Commercial real estate mortgages (0.28)% (0.37)% 0.22 % (0.19)% (0.16)% Residential mortgage (0.00)% 0.00 % 0.00 % 0.00 % 0.00 % Real estate construction 0.02 % 0.01 % 0.01 % 0.02 % 0.01 % Equity lines of credit 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % Installment (0.30)% (0.28)% 0.03 % (0.70)% (0.15)% Total loans (0.00)% (0.23)% 0.00 % (0.05)% (0.07)%Reserve for Off-Balance Sheet Credit CommitmentsBalance at beginning of period $12,295 $11,846 $10,574 $9,971 $9,971 Provision for credit losses (544) 449 1,272 603 1,780 --------- --------- --------- --------- ---------Balance at end of period $11,751 $12,295 $11,846 $10,574 $11,751 ========= ========= ========= ========= =========CITY NATIONAL CORPORATIONNONPERFORMING ASSETS(unaudited) 2005 2004 ----------------- ----------------------------------- Second First Fourth Third Second First(Dollars in Quarter Quarter Quarter Quarter Quarter Quarter thousands)--------------- -------- -------- -------- -------- -------- --------Nonaccrual Loans Commercial $17,982 $25,117 $30,334 $28,127 $34,651 $37,457 Commercial real estate mortgages 1,543 1,945 2,255 4,032 3,238 4,811 Residential mortgages 1,990 1,990 94 1,193 2,371 11 Real estate construction - 790 1,163 1,168 - Equity lines of credit 22 212 380 384 25 25 Installment 624 654 785 370 380 429 -------- -------- -------- -------- -------- -------- Total nonaccrual loans 22,161 29,918 34,638 35,269 41,833 42,733Other Nonperforming Assets - - - - - - -------- -------- -------- -------- -------- -------- Total nonperforming assets $22,161 $29,918 $34,638 $35,269 $41,833 $42,733 ======== ======== ======== ======== ======== ========Loans 90 Days or More Past Due on Accrual Status $103 $807 $142 $3,586 $153 $5,057Allowance for loan losses as a percentage of: Nonaccrual loans 667.52 % 493.37 % 428.92 % 419.79 % 366.39 % 361.54 % Total nonperforming assets 667.52 % 493.37 % 428.92 % 419.79 % 366.39 % 361.54 % Total loans 1.66 % 1.72 % 1.75 % 1.81 % 1.89 % 1.94 %Nonaccrual loans as a percentage of total loans 0.25 % 0.35 % 0.41 % 0.43 % 0.51 % 0.54 %Nonperforming assets as a percentage of: Total loans and other nonperforming assets 0.25 % 0.35 % 0.41 % 0.43 % 0.51 % 0.54 % Total Assets 0.15 % 0.21 % 0.24 % 0.25 % 0.31 % 0.32 %CITY NATIONAL CORPORATIONAVERAGE BALANCES AND RATES(unaudited) 2005 -------------------------------------------------- Second Quarter First Quarter Year to Date ---------------- ---------------- ---------------- Average Average Average Average Average Average(Dollars in Balance Rate Balance Rate Balance Rate millions)------------------- -------- ------- -------- ------- -------- -------Assets Interest-earning assets Loans Commercial $3,225 6.06 % $3,111 5.75 % $3,169 5.89 % Commercial real estate mortgages 1,926 6.61 1,877 6.57 1,901 6.59 Residential mortgages 2,354 5.47 2,286 5.56 2,320 5.52 Real estate construction 742 7.23 830 6.63 786 6.92 Equity lines of credit 297 5.70 265 5.42 281 5.57 Installment 218 6.39 216 6.28 217 6.68 -------- -------- -------- Total loans 8,762 6.12 8,585 5.97 8,674 6.05 Due from banks - interest- bearing 37 1.24 65 1.34 51 1.30 Federal funds sold and securities purchased under resale agreements 80 2.76 33 2.59 57 2.71 Securities available-for- sale 4,034 4.25 4,078 4.38 4,056 4.31 Trading account securities 37 3.25 38 2.40 37 2.83 -------- -------- -------- Total interest- earning assets 12,950 5.49 12,799 5.42 12,875 5.46 Allowance for loan losses (148) (149) (148) Cash and due from banks 443 441 442 Other non- earning assets 796 782 788 -------- -------- -------- Total assets $14,041 $13,873 $13,957 ======== ======== ========Liabilities and Shareholders' Equity Interest-bearing deposits Interest checking accounts $849 0.08 $858 0.09 $854 0.09 Money market accounts 3,568 1.15 3,690 1.00 3,629 1.08 Savings deposits 199 0.28 205 0.24 202 0.26 Time deposits - under $100,000 181 2.38 182 2.07 181 2.22 Time deposits - $100,000 and over 897 2.56 944 2.11 920 2.33 -------- -------- -------- Total interest- bearing deposits 5,694 1.22 5,879 1.05 5,786 1.14 Federal funds purchased and securities sold under repurchase agreements 315 2.88 254 2.33 284 2.64 Other borrowings 518 3.85 519 3.53 519 3.69 -------- -------- -------- Total interest- bearing liabilities 6,527 1.51 6,652 1.29 6,589 1.40 Noninterest- bearing deposits 5,985 5,694 5,840 Other liabilities 170 175 172 Shareholders' equity 1,359 1,352 1,356 -------- -------- -------- Total liabilities and shareholders' equity $14,041 $13,873 $13,957 ======== ======== ========Net interest spread 3.98 % 4.13 % 4.06 % ====== ====== ======Net interest margin 4.73 % 4.75 % 4.74 % ====== ====== ======CITY NATIONAL CORPORATIONAVERAGE BALANCES AND RATES(unaudited) 2004 ------------------------------------ Fourth Quarter Third Quarter ---------------- ---------------- Average Average Average Average(Dollars in millions) Balance Rate Balance Rate--------------------------------- -------- ------- -------- -------Assets Interest-earning assets Loans Commercial $3,028 5.47 % $2,996 5.30 % Commercial real estate mortgages 1,850 6.30 1,838 6.14 Residential mortgages 2,198 5.33 2,136 5.40 Real estate construction 826 6.01 787 5.46 Equity lines of credit 246 5.32 221 4.87 Installment 209 5.96 196 6.20 -------- -------- Total loans 8,357 5.68 8,174 5.54 Due from banks - interest- bearing 92 1.84 39 0.86 Federal funds sold and securities purchased under resale agreements 579 1.98 659 1.48 Securities available-for-sale 3,980 4.36 3,641 4.30 Trading account securities 32 2.06 36 0.98 -------- -------- Total interest-earning assets 13,040 5.08 12,549 4.94 Allowance for loan losses (149) (153) Cash and due from banks 446 432 Other non-earning assets 784 784 -------- -------- Total assets $14,121 $13,612 ======== ========Liabilities and Shareholders' Equity Interest-bearing deposits Interest checking accounts $858 0.08 $834 0.08 Money market accounts 3,910 0.84 3,879 0.76 Savings deposits 206 0.25 208 0.25 Time deposits - under $100,000 184 1.76 189 1.50 Time deposits - $100,000 and over 864 1.76 811 1.48 -------- -------- Total interest-bearing deposits 6,022 0.87 5,921 Federal funds purchased and securities sold under repurchase agreements 115 1.73 129 1.27 Other borrowings 557 2.77 561 2.30 -------- -------- Total interest-bearing liabilities 6,694 1.05 6,611 0.91 Noninterest-bearing deposits 5,917 5,575 Other liabilities 179 159 Shareholders' equity 1,331 1,267 -------- -------- Total liabilities and shareholders' equity $14,121 $13,612 ======== ========Net interest spread 4.03 % 4.03 % ===== =====Net interest margin 4.54 % 4.46 % ===== ===== 2004 -------------------------------------------------- Second Quarter First Quarter Full Year ---------------- ---------------- ---------------- Average Average Average Average Average Average(Dollars in Balance Rate Balance Rate Balance Rate millions)---------------------------- ------- -------- ------- -------- -------Assets Interest-earning assets Loans Commercial $3,042 5.00 % $3,104 5.09 % $3,042 5.21 % Commercial real estate mortgages 1,813 6.09 1,808 6.28 1,827 6.24 Residential mortgages 2,036 5.41 1,952 5.52 2,081 5.41 Real estate construction 779 5.10 678 5.08 768 5.44 Equity lines of credit 204 4.54 194 4.17 216 4.46 Installment 180 6.13 150 6.24 184 6.13 -------- -------- -------- Total loans 8,054 5.37 7,886 5.47 8,118 5.52 Due from banks - interest-bearing 43 0.86 78 0.72 63 1.17 Federal funds sold and securities purchased under resale agreements 439 1.02 175 0.99 464 1.48 Securities available-for- sale 3,569 4.47 3,433 4.62 3,657 4.43 Trading account securities 32 0.48 30 0.52 32 1.02 -------- -------- -------- Total interest- earning assets 12,137 4.92 11,602 5.10 12,334 5.01 Allowance for loan losses (155) (156) (153) Cash and due from banks 446 447 443 Other non-earning assets 795 724 772 -------- -------- -------- Total assets $13,223 $12,617 $13,396 ======== ======== ========Liabilities and Shareholders' Equity Interest-bearing deposits Interest checking accounts $825 0.08 $802 0.08 $792 0.09 Money market accounts 3,649 0.68 3,421 0.68 3,712 0.75 Savings deposits 212 0.27 205 0.26 249 0.21 Time deposits - under $100,000 194 1.39 198 1.45 191 1.52 Time deposits - $100,000 and over 811 1.33 912 1.29 850 1.47 -------- -------- -------- Total interest- bearing deposits 5,691 0.70 5,538 0.71 5,794 0.76 Federal funds purchased and securities sold under repurchase agreements 121 0.89 112 0.88 119 1.19 Other borrowings 590 1.91 579 1.97 572 2.23 -------- -------- -------- Total interest- bearing liabilities 6,402 0.81 6,229 0.83 6,485 0.90 Noninterest-bearing deposits 5,431 4,995 5,481 Other liabilities 160 171 167 Shareholders' equity 1,230 1,222 1,263 -------- -------- -------- Total liabilities and shareholders' equity $13,223 $12,617 $13,396 ======== ======== ========Net interest spread 4.11 % 4.27 % 4.11 % ====== ====== ======Net interest margin 4.49 % 4.66 % 4.54 % ====== ====== ======CITY NATIONAL CORPORATIONCAPITAL AND CREDIT RATING DATA(unaudited) 2005 --------------------------------- Second First Year To Quarter Quarter Date ----------- ----------- -------Per Common Share:------------------------------------ Shares Outstanding (in thousands): Average - Basic 49,090 49,162 49,101 Average - Diluted 51,043 51,030 51,037 Period-End 49,145 48,958Book Value $28.51 $26.97Price: High $72.90 $71.35 $72.90 Low 66.84 67.49 66.84 Period-end 71.71 69.82Capital Ratios (Dollars in millions):------------------------------------Risk-based capital Risk-adjusted assets $9,663 $9,410 Tier I capital $1,151 $1,100 Percentage of risk adjusted assets 11.91 % 11.69 % Total capital $1,493 $1,437 Percentage of risk adjusted assets 15.45 % 15.27 % Tier I leverage ratio 8.39 % 8.12 % Period-end shareholders' equity to total period-end assets 9.68 % 9.49 % Period-end tangible shareholders' equity to total period-end tangible assets 7.83 % 7.55 % Average shareholders' equity to total average assets 9.68 % 9.75 % 9.71% Average tangible shareholders' equity to total average tangible assets 7.77 % 7.80 % 7.78% 2004 --------------------------------------- Fourth Third Second First Full Quarter Quarter Quarter Quarter Year ------- ------- ------- ------- -------Per Common Share:------------------------------ Shares Outstanding (in thousands): Average - Basic 49,195 49,076 48,796 48,732 48,950 Average - Diluted 51,385 51,182 50,925 50,679 51,074 Period-End 49,238 49,127 49,015 48,553Book Value $27.39 $26.73 $25.05 $25.54Price: High $70.99 $68.65 $65.95 $63.55 $70.99 Low 64.34 61.87 57.36 57.36 57.36 Period-end 70.65 64.95 65.70 59.90Capital Ratios (Dollars in millions):------------------------------Risk-based capital Risk-adjusted assets $9,383 $9,129 $8,947 $8,777 Tier I capital $1,080 $1,036 $991 $935 Percentage of risk adjusted assets 11.51 % 11.35 % 11.08 % 10.65 % Total capital $1,418 $1,369 $1,321 $1,265 Percentage of risk adjusted assets 15.11 % 14.99 % 14.77 % 14.41 % Tier I leverage ratio 7.83 % 7.80 % 7.68 % 7.60 % Period-end shareholders' equity to total period-end assets 9.48 % 9.39 % 9.10 % 9.37 % Period-end tangible shareholders' equity to total period-end tangible assets 7.56 % 7.43 % 7.05 % 7.24 % Average shareholders' equity to total average assets 9.42 % 9.31 % 9.30 % 9.69 % 9.42 % Average tangible shareholders' equity to total average tangible assets 7.48 % 7.28 % 7.20 % 7.46 % 7.36 %Senior Debt Credit Ratings------------------------------- For The Period Ended June Standard 30, 2005 & Moody's Fitch Poor's DBRS ------- ----- -------- ------ City National Bank A2 A- A- A City National Corporation A3 A- BBB+ A(low)

SOURCE: City National Corporation

City National Corporation
Financial/Investors:
Christopher J. Carey, 310.888.6777
Chris.Carey@cnb.com
Media:
Cary Walker, 213.833.4715
Cary.Walker@cnb.com