LOS ANGELES--(BUSINESS WIRE)--Jan. 17, 2001--

Net income for the fourth quarter rose 18 percent to $33.0 million, or $0.68 per share, from the 1999 fourth quarter

City National Corporation (NYSE:CYN), parent corporation of whollyowned City National Bank, today reported its fifth consecutive year ofrecord net income.

Net income totaled $131.7 million in 2000, a 22 percent increasefrom net income of $108.1 million in 1999. Cash net income, whichexcludes the amortization of core deposit intangibles and goodwillfrom acquisitions, increased 26 percent to $145.7 million in 2000,compared with $115.4 million in 1999.

Net income per diluted common share of $2.72 increased 18 percent,compared with $2.30 per share in 1999. Cash net income per dilutedcommon share rose 22 percent to $3.01, compared with $2.46 per dilutedcommon share in 1999.

These results include the integration of The Pacific Bank, N.A.,acquired in February 2000 in a purchase transaction, and AmericanPacific State Bank, acquired in August 1999, also in a purchasetransaction.

City National Corporation also reported net income of $33.0million for the fourth quarter of 2000, an increase of 18 percent overnet income of $27.9 million for the fourth quarter of 1999. Cash netincome for the fourth quarter of 2000 rose 21 percent to $36.8million, compared with $30.4 million for the fourth quarter of 1999.

Net income per diluted common share increased 13 percent to $0.68for the fourth quarter of 2000, compared with net income per dilutedcommon share of $0.60 for the fourth quarter of 1999. Cash net incomeper diluted common share of $0.76 for the fourth quarter of 2000 rose17 percent from $0.65 for the fourth quarter of 1999.

"City National reached many major milestones in 2000," saidRussell Goldsmith, chief executive officer. "For the first time, thebank exceeded $9.0 billion in assets, earned more than $130.0 millionand grew deposits and loans substantially to $7.4 billion and $6.5billion, respectively.

"In addition, assets under administration increased to more than$18.0 billion, and noninterest income crossed the $100.0 millionplateau.

"Other firsts this year included our expansion into the SanFrancisco Bay Area and our first purchase of an asset management firmthrough acquisitions of The Pacific Bank and Reed, Conner & Birdwell,respectively.

"City National's entire talented team worked together to achieveour financial goals, giving us our fifth consecutive year of recordearnings and our sixth consecutive year of double-digit net incomegrowth," added Goldsmith. "We did this even while dramaticallyreducing our portfolio of syndicated loans, maintaining strong creditreserves, and investing significantly in our capabilities andfacilities for the future.

"With more than 2000 colleagues, 48 offices in California,outstanding technology and products, and our continued commitment todeliver California's premier relationship-driven private and businessbanking to entrepreneurs, professionals, investors and small-tomid-sized businesses, I am confident City National is well positionedfor the year ahead," Goldsmith said.

Return on Assets/Return on Equity

The corporation's return on average assets in 2000 was 1.56percent, compared with 1.67 percent in 1999. The decrease reflects theimpact on net income of amortizing a larger amount of goodwillassociated with two recent bank acquisitions. The return on averageshareholders' equity rose to 19.72 percent, compared with 19.16percent for the prior year.

For the fourth quarter of 2000, the return on average assets was

  • 1.50 percent and the return on average shareholders' equity was 18.29percent, compared with 1.55 percent and 19.40 percent, respectively,for the prior year quarter. The lower return on average shareholders'equity reflected a reduction in unrealized losses onavailable-for-sale securities that increased shareholders' equityduring the quarter.

On a cash basis (which excludes goodwill and the after-tax impactof nonqualifying core deposit intangibles from average assets andaverage shareholders' equity), the return on average assets in 2000was 1.76 percent, compared with 1.80 percent in 1999.

The return on average shareholders' equity on a cash basis rose to

  • 29.17 percent, compared with 23.98 percent for the prior year. For the2000 fourth quarter on a cash basis, the return on average assets was

  • 1.71 percent and the return on average shareholders' equity was 26.75percent, compared with 1.72 percent and 26.71 percent, respectively,for the 1999 fourth quarter.

Management expects continued strong returns going forward and netincome per diluted common share for 2001 will be approximately 8percent to 11 percent higher than net income per diluted common sharefor 2000. These expectations do not reflect the potential impact tothe corporation of the tentative decision of the Financial AccountingStandards Board to discontinue goodwill amortization.

Management believes that this change in the treatment of goodwill,if adopted as proposed, will have a positive impact on thecorporation's future results of operations. In 2000, the amortizationof goodwill reduced net income per diluted common share by $0.22.

Assets

Total assets at Dec. 31, 2000 were $9.1 billion, compared with$7.2 billion at Dec. 31, 1999, and $8.9 billion at Sept. 30, 2000.Total average assets reached $8.4 billion in 2000, an increase of 30percent over the $6.5 billion in average assets for 1999.

Loans

Average loans rose to $6.2 billion for the year 2000, an increaseof 29 percent over the prior year. Year-over-year loan growth wasdriven primarily by increases in commercial loans and real estatecommercial mortgage loans. Compared with 1999, commercial loan averagebalances rose 25 percent to $3.2 billion from $2.6 billion.

The commercial loan portfolio does not contain any directenergy-related borrowings and only a limited amount oftechnology-related borrowings - approximately two thirds of onepercent of the commercial loan portfolio. Real estate commercialmortgage loan averages rose 57 percent to $1.3 billion from $0.9billion, compared with the prior year. All other loan categories alsocontributed to the increase in average loan growth over the prioryear.

For basis of presentation, management has divided thecorporation's commercial loan portfolio into relationship loans andsyndicated non-relationship loans. Syndicated non-relationship loansare loans agented by others where the corporation has limited directaccess to the borrower and provides no other banking products orservices.

Total loans at Dec. 31, 2000 were $6.5 billion, compared with $5.5billion at Dec. 31, 1999 and $6.4 billion at Sept. 30, 2000. The netchange from Sept. 30, 2000 included a $243.2 million, or 4 percent,increase in relationship loans, partially offset by a $142.8 milliondecrease in syndicated non-relationship loans.

The reduction in syndicated non-relationship loans reflectsmanagement's decision to reduce the higher credit risk exposureassociated with that portfolio. At Dec. 31, 2000, syndicatednon-relationship loans had decreased to $191.8 million, representingless than 3 percent of the loan portfolio. At Dec. 31, 1999,syndicated non-relationship loans totaled $536.8 million, or 10percent of the loan portfolio.

The reduction included the transfer of $132.0 million of grossloan balances to available-for-sale loans during the fourth quarter,of which one credit for $7.2 million remains in other assets as ofDec. 31, 2000. The average outstanding loan balance in the syndicatednon-relationship portfolio at Dec. 31, 2000 was $3.1 million, whichrepresents just over half of the average commitment amount.

Management anticipates average relationship loan growth will be inthe 9 percent to 13 percent range in 2001, reflecting its expectationthat the growth in the California economy will slow from the stronggrowth experienced in recent years but will still grow at a moderatepace.

Deposits

Average deposits rose during the year 2000 to $6.3 billion, anincrease of 32 percent over 1999. During the fourth quarter of 2000,average deposits increased 6 percent to $6.9 billion, compared with$6.5 billion for the 2000 third quarter.

During the year 2000, average core deposits rose to $5.0 billion,an increase of 28 percent over 1999. Core deposits represented 78percent of the total average deposit base for the year. Fourth quarter2000 average core deposits of $5.2 billion represented a 5 percentincrease over the previous quarter's average.

Deposits totaled $7.4 billion at Dec. 31, 2000, compared with $5.7billion at Dec. 31, 1999, and $6.9 billion at Sept. 30, 2000.

Average deposit growth in 2001, compared to 2000, is expected tobe in the 8 percent to 12 percent range.

Net Interest Income

As a result of strong loan and core deposit growth and a higheraverage prime rate compared with the prior year, net interest incomeon a fully taxable-equivalent basis rose 26 percent to $419.1 millionin 2000, compared with $332.7 million for 1999.

Interest income recovered on nonaccrual and charged-off loans was$4.0 million in 2000, compared with $5.3 million for 1999. For thefourth quarter of 2000, net interest income on a fullytaxable-equivalent basis totaled $108.7 million, an increase of 21percent over $89.9 million for the same quarter of 1999.

The fully taxable-equivalent net interest margin in 2000 was 5.44percent, compared with 5.56 percent for 1999. The decrease wasattributable to an increase in the cost of funds and a shift in thedeposit mix. This decrease was partially offset by higher yields onearning assets.

For the fourth quarter of 2000, the fully taxable-equivalent netinterest margin was 5.41 percent, compared with 5.32 percent for the2000 third quarter. This increase was primarily due to the stronggrowth in demand deposits, a seasonal occurrence.

Management expects its net interest margin for 2001 to decreasemodestly from 2000.

Noninterest Income

Noninterest income continued its strong, across-the-board growth,with recurring noninterest income increasing 31 percent to $106.4million in 2000 over the $81.4 million reported for 1999. Recurringnoninterest income for the fourth quarter of 2000 increased 25 percentto $28.8 million, compared with $23.1 million for the year-earlierquarter, and increased 8 percent from $26.8 million for the thirdquarter of 2000.

All categories of recurring noninterest income were higheryear-over-year and quarter-over-quarter, reflecting City National'scontinued emphasis on growing fee income. Investment services andtrust fees rose as a result of a strong cross-selling program toexisting clients, as well as direct-sales activities focused on newclients by City National Investments (CNI), a division of CityNational Bank.

Assets under administration increased to $18.0 billion at Dec. 31,2000, which included $6.7 billion under management, compared with$14.1 billion and $4.4 billion, respectively, at Dec. 31, 1999, and$16.7 billion and $5.3 billion at Sept. 30, 2000.

Assets under management at Dec. 31, 2000 included $1.1 billionfrom the purchase of Reed, Conner & Birdwell Inc., completed as of theclose of business on Dec. 29, 2000. The remaining increase in assetsunder management over the year-earlier period is primarilyattributable to the CNI Charter Funds introduced in 1999 and 2000.

International services income rose significantly as a result ofincreased foreign-exchange fees and, to a lesser extent, an increasein fee income associated with letters of credit and standby letters ofcredit.

Gains on the sale of assets and securities amounted to $3.1million and $1.1 million for the year and fourth quarter of 2000,respectively, compared with gains of $5.8 million and $0.1 million forthe same periods a year earlier.

Management expects growth in noninterest income to be in the 15percent to 20 percent range during 2001.

Noninterest Expense

Noninterest expense was $294.8 million in 2000, an increase of$53.0 million compared with $241.8 million for 1999. Theyear-over-year increase in expenses was primarily the result of thecorporation's growth, including expenses related to acquisitions --additional offices, new colleagues and the amortization of goodwilland core deposit intangibles.

Noninterest expense in the fourth quarter of 2000 was $75.6million, an increase of $8.9 million, compared with $66.7 million forthe year-earlier quarter and an increase of $1.6 million, comparedwith $74.0 million for the third quarter of 2000.

The corporation's cash efficiency ratio for 2000 improved to 52.61percent from 55.37 percent in 1999. The 5 percent improvement is dueto increased revenues and management's continued emphasis on enhancingefficiency and productivity.

Management currently anticipates that 2001 noninterest expensewill increase in the 5 percent to 8 percent range, excluding theimpact of any change in the accounting rules for goodwillamortization.

Income Taxes

The 2000 effective tax rate was 34.1 percent, compared with 35.4percent for 1999. The lower tax rate is due primarily to the impact ofthe formation of a registered investment company subsidiary. Thelong-term plan for the registered investment company continues underreview. Depending on the outcome of the review and other factors,management anticipates its effective tax rate may be between 35.5percent and 37.0 percent in 2001.

Credit Quality

Net loan charge-offs were $30.1 million and $4.7 million for theyears 2000 and 1999, respectively. Net loan charge-offs for the fourthquarter of 2000 were $14.3 million, including $5.2 million related tothe $132.0 million of syndicated non-relationship loan balancestransferred to available-for-sale assets. This compares with $4.9million in the fourth quarter of 1999 and $8.3 million for the 2000third quarter.

Relationship loan net charge-offs were $11.9 million for the yearand $5.0 million for the fourth quarter of 2000, compared with netrecoveries in the respective prior year periods. For the third quarterof 2000, relationship loan net charge-offs were $3.6 million.

For the full year 2000, net charge-offs related to syndicatednon-relationship loans accounted for $18.2 million, or 60 percent ofnet charge-offs. Fourth quarter syndicated non-relationship loan netcharge-offs were $9.2 million, including the $5.2 million discussedabove, compared with $8.1 million in the fourth quarter of 1999 and$4.7 million for the third quarter of 2000.

As a percentage of average loans, net charge-offs were 0.48percent and 0.10 percent for the years 2000 and 1999, respectively.Relationship loan net charge-offs were 0.21 percent of averagerelationship loans outstanding for 2000.

Total nonperforming assets (nonaccrual loans and ORE) were $62.5million, or 0.96 percent of total loans and ORE at Dec. 31, 2000,compared with $26.7 million, or 0.49 percent, at Dec. 31, 1999 and$47.0 million, or 0.73 percent at Sept. 30, 2000.

Total nonperforming relationship assets were $39.5 million, or

  • 0.62 percent, of total relationship loans and ORE at Dec. 31, 2000,compared with $26.7 million, or 0.54 percent, at Dec. 31, 1999 and$29.9 million, or 0.49 percent at Sept. 30, 2000.

While the corporation has experienced a moderate increase inrelationship nonaccrual loans, the nonaccrual loan portfolio does notcontain any concentration of credits within a specific industrysector. Total syndicated non-relationship loans on nonaccrual statuswere $23.0 million at Dec. 31, 2000 and consisted of five borrowers,three of which were added in the fourth quarter.

City National recorded a provision for credit losses of $21.5million for 2000, compared with no provision in the prior year. Theprovision for credit losses in the fourth quarter was $10.5 million.

The provision for credit losses primarily reflects the levels ofnet loan charge-offs and nonaccrual loans, as well as management'songoing assessment of the credit quality of the portfolio and the 19percent year-over-year growth of the loan portfolio.

The amount of the provision for credit losses to be taken in 2001will reflect management's assessment of the above factors, as well asthe economic environment at each reporting date. Based on the currentassessment of these factors, management anticipates that a provisionfor credit losses of approximately $30 million to $45 million may berequired in 2001.

The allowance for credit losses at Dec. 31, 2000 totaled $135.4million, or 2.07 percent of outstanding loans. This compares with anallowance of $134.1 million, or 2.44 percent of outstanding loans, atDec. 31, 1999, and an allowance of $139.2 million, or 2.17 percent ofoutstanding loans, at Sept. 30, 2000.

The allowance for credit losses as a percentage of nonaccrualloans was 218 percent at Dec. 31, 2000, compared with 530 percent atDec. 31, 1999 and 297 percent at Sept. 30, 2000. Management believesthe allowance for credit losses is adequate to cover risks inherent inthe portfolio at Dec. 31, 2000.

Capital Levels

Total risk-based capital and Tier 1 risk-based capital ratios atDec. 31, 2000 were 10.85 percent and 7.84 percent, compared with thecapital ratios of 10 percent and 6 percent, respectively, required foran institution to be classified as "well-capitalized."

The corporation's Tier 1 leverage ratio of 6.49 percent exceededthe regulatory minimum of 4 percent required for a "well-capitalized"institution. Total risk-based capital, Tier 1 risk-based capital andthe Tier 1 leverage ratios were 10.88 percent, 7.85 percent and 6.41percent, respectively, at Sept. 30, 2000.

Stock Repurchase

The stock buyback program of one million common shares announcedon July 29, 1999 was completed on Oct. 25, 2000 at a cost of $32.1million. On Oct. 26, 2000, a new one million-share stock buybackprogram of the corporation's common stock was announced. Under thisprogram, 201,600 shares have been repurchased at a cost of $6.6million as of Dec. 31, 2000.

Shares totaling 308,270 were used in the purchase of Reed, Conner& Birdwell Inc. The remaining shares purchased under the buybackprograms will be reissued for acquisitions, upon the exercise of stockoptions, and for other general corporate purposes. Treasury shares atDec. 31, 2000 totaled 155,335 shares.

About City National

City National Corporation is a publicly owned corporation with$9.1 billion in total assets whose stock is traded on the New YorkStock Exchange under the symbol "CYN." The corporation's wholly ownedsubsidiary, City National Bank, is California's premier private andbusiness bank. City National Bank, which provides banking, trust andinvestment services, has 48 California offices located throughout LosAngeles, Orange, Riverside, San Bernardino, San Diego, San Francisco,San Mateo, Santa Clara and Ventura counties.

For more information about the corporation, the corporation's Webpage is at http://www.cnb.com. In addition, City National Corporationis scheduled to present at Salomon Smith Barney's Financial ServicesConference at 3:45 p.m. EST on Tuesday Jan. 23, 2001. The presentationwill be available via audio webcast and a link will be posted on thecorporation's Web site.

This news release contains forward-looking statements about thecorporation for which the corporation claims the protection of thesafe harbor 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 thecorporation's possible or assumed future financial condition, and itsresults of operations and business. Forward-looking statements aresubject to risks and uncertainties. A number of factors, some of whichare beyond the corporation's ability to control or predict, couldcause future results to differ materially from those contemplated bysuch forward-looking statements. These factors include (1) an economicslowdown in California attributable to energy supply issues, apossible strike by writers and actors, or any other unforeseen events,(2) changes in interest rates, (3) significant changes in banking lawsor regulations, (4) increased competition in the corporation's market,(5) higher-than-expected credit losses and (6) possible changes in theplans for the registered investment company subsidiary.

For a more complete discussion of these risks and uncertainties,see the corporation's Quarterly Report on Form 10-Q for the quarterended Sept. 30, 2000, 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) December 31, % 2000 1999 ChangeAssets Cash and due from banks $ 386,814 $ 233,178 66 Securities 1,593,922 1,129,806 41 Federal funds sold 165,000 57,000 189 Loans (net of allowance for credit losses of $135,435 and $134,077) 6,391,710 5,356,592 19 Other assets 559,223 437,043 28 Total assets $ 9,096,669 $ 7,213,619 26Liabilities and Shareholders' Equity Noninterest-bearing deposits $ 3,276,203 $ 2,448,916 34 Interest-bearing deposits 4,132,467 3,220,493 28 Total deposits 7,408,670 5,669,409 31 Federal funds purchased and securities sold under repurchase agreements 139,841 295,487 (53) Other short-term borrowed funds 315,125 296,739 6 Subordinated debt 123,641 123,453 - Other long-term debt 205,000 180,000 14 Other liabilities 160,744 76,885 109 Total liabilities 8,353,021 6,641,973 26 Shareholders' equity 743,648 571,646 30 Total liabilities and shareholders' equity $ 9,096,669 $ 7,213,619 26 Book value per share $ 15.61 $ 12.58 24 Number of shares at period end 47,630,010 45,456,743 5 CONSOLIDATED STATEMENT OF INCOME (unaudited) (Dollars in thousands, except per share amount) For the three months ended For the twelve months ended December 31, % December 31, % 2000 1999 Change 2000 1999 ChangeInterest income $ 169,218 $ 129,435 31 $ 646,288 $ 470,446 37Interest expense (63,594) (42,524) 50 (239,772) (148,441) 62Net interest income 105,624 86,911 22 406,516 322,005 26Provision for credit losses (10,500) - N/M (21,500) - N/MNet interest income after provision for credit losses 95,124 86,911 9 385,016 322,005 20Noninterest income 29,929 23,215 29 109,484 87,212 26Noninterest expense (75,626) (66,699) 13 (294,769) (241,803) 22Income before taxes 49,427 43,427 14 199,731 167,414 19Income taxes (16,380) (15,510) 6 (68,070) (59,307) 15Net income $ 33,047 $ 27,917 18 $ 131,661 $ 108,107 22Net income per share, basic $ 0.70 $ 0.61 15 $ 2.79 $ 2.36 18Net income per share, diluted $ 0.68 $ 0.60 13 $ 2.72 $ 2.30 18Dividends paid per share $ 0.18 $ 0.17 9 $ 0.70 $ 0.66 6Cash net income $ 36,814 $ 30,411 21 $ 145,721 $ 115,358 26Cash net income per share, basic $ 0.78 $ 0.67 16 $ 3.09 $ 2.53 22Cash net income per share, diluted $ 0.76 $ 0.65 17 $ 3.01 $ 2.46 22Shares used to compute per share net income, basic 47,434,212 45,428,367 47,178,093 45,682,714Shares used to compute per share net income, diluted 48,518,548 46,605,553 48,393,436 46,938,130 CITY NATIONAL CORPORATION SELECTED FINANCIAL INFORMATION (unaudited) (Dollars in thousands)Period end December 31, % 2000 1999 ChangeLoans Commercial (a) Relationship $ 3,056,464 $ 2,333,627 31 Syndicated non- relationship 191,789 536,811 (64) 3,248,253 2,870,438 13 Single family first trust deed 1,273,711 1,173,334 9 Real estate commercial mortgage 1,479,862 1,042,123 42 Real estate construction 452,301 344,870 31 Installment 73,018 59,904 22 Total loans $ 6,527,145 $ 5,490,669 19(a) Commercial relationship loans were $2,920,518 and syndicatednon-relationship loans were $334,626 at Sept. 30, 2000Deposits Noninterest bearing $ 3,276,203 $ 2,448,916 34 Interest-bearing, core 2,456,080 2,051,799 20 Total core deposits 5,732,283 4,500,715 27 Time deposits - $100,000 and over 1,676,387 1,168,694 43 Total deposits $ 7,408,670 $ 5,669,409 31Credit Quality Nonaccrual loans and ORE (b) Relationship loans $ 38,974 $ 25,288 54 Syndicated non- relationship loans 23,012 - N/M 61,986 25,288 145 ORE 522 1,413 (63) Total nonaccrual loans and ORE $ 62,508 $ 26,701 134Relationship nonaccrual loans and ORE to total relationship loans and ORE 0.62 0.54 15Total nonaccrual loans and ORE to total loans and ORE 0.96 0.49 96Loans past due 90 days or more on accrual status $ 5,924 $ 4,033 47Restructured loans on accrual status $ 829 $ 2,707 (69)(b) Nonaccrual loans were $46,883 at Sept. 30, 2000 including$29,717 of relationship loans and $17,166 of syndicated non-relationship loansAllowance for Credit Losses For the three months ended For the twelve months ended December 31, December 31, % % 2000 1999 Change 2000 1999 ChangeBeginning balance $ 139,195 $ 139,015 - $ 134,077 $ 135,339 (1) Additions from acquisitions - -- - 9,927 3,415 191 Provision for credit losses 10,500 - N/M 21,500 - N/M Charge-offs (c) Relationship loans (8,168) (1,333) 513 (23,409) (11,435) 105 Syndicated non- relationship loans (9,245)(d) (8,093) 14 (18,167) (8,093) 124 (17,413) (9,426) 85 (41,576) (19,528) 113 Recoveries 3,153 4,488 (30) 11,507 14,851 (23) Net charge -offs (14,260) (4,938) 189 (30,069) (4,677) 543Ending Balance $ 135,435 $ 134,077 1 $ 135,435 $ 134,077 1Net relationship (charge-offs) recoveries to average relationship loans (annualized) (0.32)% 0.26% N/M (0.21)% 0.80% N/MTotal net charge-offs to average loans (annualized) (0.88) (0.37) 138 (0.48) (0.10) 380Allowance for credit losses to total loans 2.07 2.44 (15)Allowance for credit losses to nonaccrual loans 218.49 530.20 (59)(c) Charge-offs in the third quarter 2000 were $5,060 inrelationship loans and $4,690 in syndicated non-relationship loans(d) Includes $5,155 relating to the transfer to available-for-sale of $132,000 of syndicated non-relationship loans CITY NATIONAL CORPORATION SELECTED FINANCIAL INFORMATION (unaudited) (Dollars in thousands except per share amounts) For the three months ended For the twelve months ended December 31, December 31, % % 2000 1999 Change 2000 1999 ChangeAverage BalancesLoans Commercial $3,230,460 $2,743,592 18 $3,189,457 $2,560,701 25 Single family first trust deed 1,261,191 1,148,876 10 1,235,106 1,069,522 15 Real estate commercial mortgage 1,449,840 1,018,816 42 1,336,443 851,396 57 Real estate construction 425,401 329,146 29 409,281 288,084 42 Installment 71,550 59,854 20 66,047 52,551 26 Total loans $6,438,442 $5,300,284 21 $6,236,334 $4,822,254 29Securities $1,513,242 $1,155,776 31 $1,416,252 $1,118,127 27Interest- earning assets 7,996,396 6,526,811 23 7,698,884 5,985,018 29Assets 8,752,031 7,132,771 23 8,426,129 6,488,834 30Core deposits 5,231,662 4,325,587 21 4,957,440 3,881,108 28Deposits 6,876,279 5,508,263 25 6,334,846 4,809,800 32Shareholders' equity 718,707 570,932 26 667,618 564,091 18Noninterest income Service charges on deposit accounts $ 5,739 $ 5,417 6 $ 22,933 $ 18,113 27 Investment services 7,245 5,350 35 26,409 19,763 34 Trust fees 5,224 4,752 10 20,870 18,059 16 International services 3,958 3,085 28 14,982 9,950 51 Bank owned life insurance 654 614 7 2,578 2,268 14 Other 6,008 3,923 53 18,651 13,246 41 Subtotal - recurring 28,828 23,141 25 106,423 81,399 31 Gain (loss) on sale of loans and assets 6 393 (98) (71) 2,117 (103) Gain (loss) on sale of securities 1,095 (319) 443 3,132 3,696 (15) Total $ 29,929 $ 23,215 29 $ 109,484 $ 87,212 26Noninterest expense Salaries and other employee benefits $ 38,838 $ 34,918 11 $ 159,782 $ 133,935 19 All Other Professional 6,338 5,993 6 23,076 20,811 11 Net occupancy of premises 6,632 6,230 6 24,415 18,955 29 Information services 3,699 3,604 3 14,064 12,267 15 Marketing and advertising 4,132 2,871 44 12,959 10,444 24 Depreciation 3,553 3,088 15 13,037 11,242 16 Office services 2,580 2,229 16 9,724 8,212 18 Amortization of goodwill 2,843 1,710 66 10,462 4,592 128 Amortization of core deposit intangibles 1,595 1,342 19 6,205 4,717 32 Equipment 723 667 8 2,462 2,213 11 Acquisition integration (14) 52 N/M 1,309 1,161 13 Other operating 4,707 3,995 18 17,274 13,254 30 Total all other 36,788 31,781 16 134,987 107,868 25 Total $ 75,626 $ 66,699 13 $ 294,769 $ 241,803 22Selected RatiosFor the Period Return on average assets 1.50% 1.55% (3) 1.56% 1.67% (7) Return on average shareholders' equity 18.29 19.40 (6) 19.72 19.16 3 Net interest margin 5.41 5.46 (1) 5.44 5.56 (2) Efficiency ratio 54.56 58.81 (7) 55.76 57.58 (3) Dividend payout ratio 25.14 26.69 (6) 24.95 27.91 (11) Cash return on average assets 1.71 1.72 (1) 1.76 1.80 (2) Cash return on average shareholders' equity 26.75 26.71 - 29.17 23.98 22 Cash efficiency ratio 51.36 56.11 (8) 52.61 55.37 (5)Period End Tier 1 risk-based capital ratio 7.84 7.88 (1) Total risk-based capital ratio 10.85 11.21 (3) Tier 1 leverage ratio 6.49 6.73 (4)

CONTACT:City National Corp.
Frank Pekny, 310/888-6700 (Investors)
Kim George, 213/833-4715 (Media)
or
Abernathy MacGregor Group
Ian Campbell, 213/630-6550 (Investors)
or
Stoorza Communications
Denis Wolcott, 213/891-2822 (Media)