LOS ANGELES--(BUSINESS WIRE)--Jan. 16, 2002--

Total Assets Exceed $10 Billion at December 31, 2001;

Net Income for Fourth Quarter Up 17 Percent to $38.8 Million,

or $0.78 Per Share, From 2000 Fourth Quarter

City National Corporation (NYSE:CYN), parent corporation of whollyowned City National Bank, today reported its sixth consecutive year ofrecord net income. Net income totaled $146.2 million in 2001, up 11percent from $131.7 million in 2000. Net income per diluted commonshare of $2.96 increased 9 percent from $2.72 per share in 2000, on anincrease of approximately 1 million diluted common shares.

For the fourth quarter of 2001, City National Corporation reportednet income of $38.8 million, an increase of 17 percent over $33.0million for the fourth quarter of 2000. Net income per diluted commonshare was $0.78, an increase of 15 percent compared with $0.68 in thefourth quarter of 2000.

Cash net income, which excludes the amortization of both coredeposit intangibles and goodwill from acquisitions, rose 11 percent to$162.0 million in 2001, compared with $145.7 million in 2000. Cash netincome per diluted common share was $3.28, an increase of 9 percentover $3.01 per share for the year 2000. Eliminating only the impact ofthe amortization of goodwill, which will take effect in 2002 with theimplementation of new GAAP standards, pro-forma net income would havebeen $159.0 million, or $3.22 per share.

For the fourth quarter of 2001, cash net income was $42.7 million,an increase of 16 percent from $36.8 million for the fourth quarter of2000. Cash net income per diluted common share was $0.86, an increaseof 13 percent over $0.76 for the fourth quarter of 2000.

"We are pleased to report today our sixth consecutive year ofrecord earnings and for the first time in our history to have reachedthe milestone of $10 billion in assets," said Russell Goldsmith, vicechairman and chief executive officer of City National Corporation."It's particularly gratifying that our organization could accomplishthis in the face of last year's challenges to the economy. Theseresults demonstrate again our continuing combination of good creditquality, a growing client base that's adding loans, deposits andnoninterest income, further productivity gains, sound balance sheetmanagement and our effective and talented team of over 2000 colleagueswho deliver California's premier private and business banking servicesand solutions everyday.

"With our fourth quarter momentum, the ongoing expansion of ourPrivate Client Services capabilities, the relative strengths of thediverse California economy, the addition of Civic BanCorp, whichshould close in this quarter and double the size of our bank inNorthern California to about $1 billion in assets, and other focusedinitiatives, the year ahead looks positive," said Mr. Goldsmith.

Return on Assets/Return on Equity

The corporation's return on average assets in 2001 was 1.57percent, compared with 1.56 percent in 2000. The return on averageshareholders' equity was 17.71 percent, compared with 19.72 percentfor the prior year. For the fourth quarter of 2001, the return onaverage assets was 1.56 percent and the return on averageshareholders' equity was 17.22 percent, compared with a 1.50 percentreturn on average assets and an 18.29 percent return on averageshareholders' equity for the fourth quarter of 2000. The lower returnon average shareholders' equity for the year and fourth quarter of2001 compared with the same periods last year was due primarily to ahigher level of shareholders' equity which resulted from increasedunrealized gains on securities and the positive mark-to-marketvaluation of interest rate swaps treated as cash flow hedges.

On a cash basis (which excludes goodwill and the after-tax impactof nonqualifying core deposit intangibles from average assets andaverage shareholders' equity), the return on average assets in 2001was 1.77 percent, compared with 1.76 percent in 2000. The return onaverage shareholders' equity was 25.01 percent, compared with 29.17percent for the prior year. On a cash basis, for the fourth quarter of2001, the return on average assets was 1.75 percent and the return onaverage shareholders' equity was 23.50 percent, compared with a 1.71percent return on average assets and a 26.75 percent return on averageshareholders' equity for the fourth quarter of 2000.

Assets

Total average assets reached a record $9.3 billion in 2001, anincrease of 11 percent over the $8.4 billion in average assets in2000. For the fourth quarter of 2001, total average assets increased12 percent to $9.8 billion, compared with $8.8 billion for the sameperiod a year ago. Total assets at December 31, 2001 were a record$10.2 billion, compared with total assets of $9.1 billion at December31, 2000.

Loans

Average loans rose to $6.7 billion in 2001, an increase of 8percent over the prior year. Average relationship loans increased $0.8billion, or 13 percent compared with $5.8 billion in 2000. Theyear-over-year growth in average relationship loans was drivenprimarily by increases in real estate mortgage, residential firstmortgage, commercial and construction loans. Compared with prior yearaverages, real estate mortgage loans rose 18 percent to $1.6 billionfrom $1.3 billion; residential first mortgage loans rose 15 percent to$1.4 billion from $1.2 billion; commercial loans rose 9 percent to$3.0 billion from $2.8 billion; and construction loans rose 25 percentto $0.5 billion from $0.4 billion. Conversely, average syndicatednon-relationship loans fell to $125.6 million during the year, downsignificantly from $431.3 million for the prior year. This isconsistent with the corporation's objective of reducing its exposureto syndicated non-relationship loans.

Total loans at December 31, 2001 reached a record $7.2 billion,compared with $6.5 billion at December 31, 2000, and $6.9 billion atSeptember 30, 2001.

At December 31, 2001, syndicated non-relationship loans totaled$86.9 million, or approximately 1 percent of the loan portfolio,compared with $191.8 million at December 31, 2000, and $93.4 millionat September 30, 2001. The average outstanding loan balance in thesyndicated non-relationship portfolio at December 31, 2001 was $2.8million, which represents just over half the average commitmentamount.

Average loan growth is expected to range between 8 percent and 13percent for 2002, exclusive of any impact of acquisitions.

Deposits

Average deposits were $7.1 billion in 2001, an increase of 12percent over 2000. During the fourth quarter of 2001, average depositsincreased 10 percent to $7.6 billion, compared with $6.9 billion forthe same period a year ago. Average quarterly deposits increased 9percent over the third quarter of 2001.

During 2001, average core deposits, which provide a stable sourceof low-cost funding, rose $0.6 billion, an increase of 13 percent overthe $5.0 billion reported in 2000. Average core deposits represented79 percent of the total average deposit base for the year, up slightlyfrom 78 percent for 2000. For the fourth quarter of 2001, average coredeposits increased 18 percent to $6.2 billion, compared with the sameperiod last year. They increased 11 percent over the third quarter of2001. Internal growth, increased sales of cash management products anda reduction in the earnings credit on analyzed deposit accountsresulting from lower interest rates all contributed to the growth ofdeposits.

Deposits totaled a record $8.1 billion at December 31, 2001,compared with $7.4 billion at both December 31, 2000, and September30, 2001.

Management expects average year-over-year deposit growth in 2002to be in the range of 8 percent to 12 percent, exclusive of any impactof acquisitions.

Net Interest Income

Fully taxable-equivalent net interest income for the year 2001 was$447.8 million, an increase of 7 percent over $419.1 million for theyear 2000. Interest income recovered on nonaccrual and charged-offloans included above was $4.3 million in 2001, compared with $4.0million for 2000. For the fourth quarter of 2001, net interest incomeon a fully taxable-equivalent basis rose 7 percent to $116.6 million,compared with $108.7 million for the fourth quarter of 2000.

The fully taxable-equivalent net interest margin in 2001 was 5.26percent compared with 5.44 percent for 2000. The decrease of 18 basispoints primarily reflects the declining interest-rate environment, ledby the Federal Reserve Board's rate reductions totaling 475 basispoints since the first quarter of 2001. The Bank's prime rate was 4.75percent as of December 31, 2001, compared with 9.50 percent a yearearlier and 6.00 percent at September 30, 2001. The fullytaxable-equivalent net interest margin in the fourth quarter of 2001was 5.12 percent, compared with 5.41 percent for the fourth quarter of2000 and 5.28 percent for the third quarter of 2001. The net interestmargin in the fourth quarter of 2001 was reduced by approximately 9basis points from the third quarter of 2001 due to the growth of$162.1 million in lower yielding average federal funds sold.

Management expects the net interest margin for 2002 will bemodestly less than the net interest margin of 5.26 percent reportedfor 2001, exclusive of any impact of acquisitions.

Noninterest Income

Reflecting the success of strategic initiatives to grow feeincome, core noninterest income continued its strong growth, rising 20percent to $127.6 million for the year 2001, compared with the $106.4million for 2000. For the fourth quarter of 2001, core noninterestincome increased 21 percent to $34.9 million, compared with $28.8million for the quarter last year and 10 percent above the $31.7million for the third quarter of 2001.

Trust and investment fee revenue benefited from the acquisition ofReed, Conner & Birdwell, which closed at year-end 2000, and anincrease in new business within City National Investments (CNI).Assets under administration totaled $18.8 billion at December 31,2001, including $7.7 billion under management, compared with $18.0billion and $6.7 billion, respectively, at December 31, 2000, and$18.3 billion and $7.2 billion, respectively, at September 30, 2001.Assets under management included assets managed by Reed, Conner &Birdwell of $1.4 billion at December 31, 2001 compared with $1.2billion at September 30, 2001 and $1.1 billion at December 31, 2000.The remaining year-over-year increase in assets under management wasattributable to new managed portfolios as well as increasedparticipation in the CNI Charter Funds, City National's family ofmutual funds.

Another key component in the growth of noninterest income was a 35percent annual increase in cash management and deposit transactionfees. They increased as the result of strong growth in deposits, inmany cases attributable to higher sales of new online cash managementproducts and a reduction in the earnings credit on analyzed depositaccounts resulting from lower interest rates.

Gains (losses) on the sale of assets and the repurchase of debtand gains on the sale of securities for the year and fourth quarter of2001 amounted to $4.8 million and $1.0 million, respectively, comparedwith $3.1 million and $1.1 million for the same periods a year ago.

Noninterest income for the year and fourth quarter of 2001increased to 23 percent and 24 percent, respectively, of totalrevenues, compared with 21 percent and 22 percent for the year andfourth quarter of 2000.

Management expects growth in noninterest income to range from 7percent to 10 percent for 2002, exclusive of any impact ofacquisitions such as occurred in 2001 from the Reed, Conner & Birdwillacquisition which accounted for approximately one quarter of the 21percent increase in noninterest income reported for the year. Inaddition, management does not anticipate repurchasing debt in 2002 andexpects that a more stable interest rate environment will result in areduction in the growth rate of cash management and deposittransaction fees in 2002.

Noninterest Expense

Noninterest expense was $313.4 million in 2001, up 6 percent from$294.8 million for 2000. The year-over-year increase was primarily theresult of the corporation's growth, including expenses resulting fromthe acquisition of Reed, Conner & Birdwell and additional colleagues.Noninterest expense for the fourth quarter of 2001 was $80.5 million,an increase of 6 percent compared with $75.6 million for the fourthquarter of 2000 and an increase of $3.2 million, compared with $77.3million for the third quarter of 2001.

The corporation's cash efficiency ratio for 2001 improved to 50.90percent from 52.61 percent in 2000. The improvement over the prioryear was due to both increased revenues and the corporation's ongoingefforts to improve efficiency and productivity.

On a new GAAP basis, excluding the amortization of goodwill inboth 2001 and 2002, management currently anticipates that 2002noninterest expense will be 3 percent to 5 percent higher than 2001,exclusive of any impact of acquisitions.

Income Taxes

The 2001 effective tax rate was 33.0 percent, compared with 34.1percent for 2000. The lower tax rate was due primarily to theformation of a special purpose subsidiary for capital-raisingactivities during the second quarter of 2001. The corporationcontinues to evaluate long-term plans for its registered investmentcompany subsidiary. Management currently anticipates its effective taxrate may fall within a range of 32 percent to 34 percent for 2002,exclusive of any impact of acquisitions.

Credit Quality

Net loan charge-offs were $27.6 million and $30.1 million for theyears 2001 and 2000, respectively. Net loan charge-offs for the fourthquarter of 2001 and 2000 were $5.4 million and $14.3 million,respectively. Included in the fourth quarter of 2001 was onerelationship loan recovery for $3.7 million. Net loan charge-offs forthe third quarter of 2001 were $6.6 million.

Relationship loan net charge-offs were $16.8 million for the yearand $2.2 million for the fourth quarter of 2001, compared with $11.9million and $5.0 million in the respective prior-year periods. For thethird quarter of 2001, relationship loan net charge-offs were $3.9million. For the full year 2001, net charge-offs related to syndicatednon-relationship loans accounted for $10.8 million, or 39 percent ofnet charge-offs. Fourth-quarter syndicated non-relationship loan netcharge-offs were $3.1 million, compared with $9.2 million in thefourth quarter of 2000 and $2.7 million for the third quarter of 2001.

As a percentage of average loans, net charge-offs were 0.41percent and 0.48 percent for the years 2001 and 2000, respectively.Relationship loan net charge-offs were 0.25 percent of averagerelationship loans outstanding for 2001, compared with 0.21 percentfor 2000.

Total nonperforming assets (nonaccrual loans and ORE) were $38.6million, or 0.54 percent of total loans and ORE, at December 31, 2001,compared with $62.5 million, or 0.96 percent, at December 31, 2000 and$40.1 million, or 0.59 percent, at September 30, 2001. Nonperformingassets decreased 4 percent and 38 percent from the third quarter 2001and year-end 2000, respectively.

Total nonperforming relationship assets were $32.7 million, or

  • 0.46 percent of total relationship loans and ORE, at December 31,2001, compared with $39.5 million, or 0.62 percent, at December 31,2000, and $31.5 million, or 0.47 percent, at September 30, 2001, anddo not contain any concentration of credits within a specific industrysector. Three syndicated non-relationship loans on nonaccrual statustotaled $5.9 million at December 31, 2001 and $8.6 million atSeptember 30, 2001.

The corporation recorded a provision for credit losses of $35.0million and $11.0 million for the year and fourth quarter of 2001,respectively, compared with $21.5 million and $10.5 million for thesame periods in 2000. The provision for credit losses in the thirdquarter of 2001 was $10.0 million. The provision for credit lossesprimarily reflects the levels of net loan charge-offs and nonaccrualloans, changes in the economic environment during the period, as wellas management's ongoing assessment of the credit quality and growth ofthe loan portfolio during the quarter.

The allowance for credit losses at December 31, 2001 totaled$142.9 million, or 2.00 percent of outstanding loans. This compareswith an allowance of $135.4 million, or 2.07 percent of outstandingloans, at December 31, 2000, and an allowance of $137.2 million, or

  • 2.00 percent of outstanding loans at September 30, 2001. The allowancefor credit losses as a percentage of nonaccrual loans was 370 percentat December 31, 2001, compared with 218 percent at December 31, 2000and 342 percent at September 30, 2001. Management believes theallowance for credit losses is adequate to cover risks in theportfolio at December 31, 2001.

The provision for credit losses to be taken in 2002 will reflectmanagement's assessment of the above factors, as well as changes inthe economic environment during this period. Based on its currentassessment, management anticipates that a provision for credit lossesfor all of 2002 could fall within the $35 million to $50 millionrange, exclusive of the impact of any acquisitions.

Outlook

Although management's individual and aggregate forecasts for 2001proved to be accurate, estimates of business and economic levels andthe related effect on earnings during this period are subject to agreater degree of variability given current world events, California'seconomy and the effect of changing interest rates. Management isoptimistic about continued solid performance going forward and netincome per diluted common share for 2002 is currently expected to beapproximately 7 percent to 10 percent higher than pro-forma net incomeper diluted common share for 2001, after eliminating the impact of theamortization of goodwill. This excludes the impact of anyacquisitions.

Capital Levels

Total risk-based capital and Tier 1 risk-based capital ratios atDecember 31, 2001 were 14.08 percent and 9.32 percent, compared withthe minimum "well-capitalized" capital ratios of 10 percent and 6percent, respectively. The corporation's Tier 1 leverage ratio of 7.26percent exceeded the regulatory minimum of 4 percent required for a"well-capitalized" institution. Total risk-based capital, Tier 1risk-based capital and the Tier 1 leverage ratios at September 30,2001 were 13.93 percent, 9.06 percent and 7.17 percent, respectively.The total risk-based capital ratio benefited from the issuance by CityNational Bank of $150.0 million of 6.75 percent, ten year,subordinated notes on August 30, 2001 which qualifies as Tier 2capital and the issuance of $3.4 million of preferred stock inNovember 2001 by a subsidiary of the bank which qualifies as Tier 1capital.

Stock Repurchase

Under the October 26, 2000 stock buyback program of 1 millionshares, 348,700 shares have been repurchased at an average price of$34.10 per share including 7,000 shares purchased at an average priceof $39.41 during the fourth quarter of 2001. The shares purchasedunder the buyback program have been reissued for acquisitions, uponthe exercise of stock options, and for other general corporatepurposes. There were no treasury shares at December 31, 2001.

About City National

City National Corporation has $10.2 billion in total assets. Itsstock is traded on the New York Stock Exchange under the symbol "CYN."The corporation's wholly owned subsidiary, City National Bank, isCalifornia's Premier Private and Business Bank(SM) providing banking,trust and investment services through offices in ten Californiacounties: Contra Costa, Los Angeles, Orange, Riverside, SanBernardino, San Diego, San Francisco, San Mateo, Santa Clara andVentura.

This news release contains forward-looking statements about thecorporation for which the corporation claims the protection of thesafe harbor provisions contained in the Private Securities LitigationReform Act of 1995.

Forward-looking statements are based on management's knowledge andbelief as of today and include information concerning thecorporation's possible or assumed future financial condition, and itsresults of operations and business. Forward-looking statements aresubject to risks and uncertainties. A number of factors, some of whichare beyond the corporation's ability to control or predict, couldcause future results to differ materially from those contemplated bysuch forward-looking statements. These factors include (1) a continuedeconomic slowdown in the national and California economiesattributable to various ongoing developments such as declining retailsales, declines in consumer confidence, reduced industrial production,declining business inventories, reduced capacity utilization, anddeclining occupancy in commercial and residential real estateresulting in declines in underlying value of real estate assets, orother unforeseen adverse changes in national and regional economicactivity, (2) increased economic uncertainty created by the mostrecent terrorist attacks on the United States, and the military,diplomatic and humanitarian actions taken in response, (3) theprospect of additional terrorist acts within the United States and theuncertain effect of these events on our national and regionaleconomies, (4) changes in interest rates, (5) significant changes inbanking laws or regulations, (6) increased competition in thecorporation's market, (7) higher-than-expected credit losses, (8)possible changes in the plans for its registered investment companysubsidiary, and (9) the effect of acquisitions and integration ofacquired businesses. Management cannot predict at this time theseverity or duration of the effects of the recent business slowdown onour specific business activities and profitability. Decreased capitaland consumer spending, and related recessionary trends could adverselyaffect our performance in a number of ways including decreased demandfor our products and services and increased credit losses.Forward-looking statements speak only as of the date they are made,and the corporation does not undertake to update forward-lookingstatements to reflect circumstances or events that occur after thedate the statements are made, or to update earnings guidance includingthe factors that influence earnings.

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

 CITY NATIONAL CORPORATION CONSOLIDATED BALANCE SHEET (unaudited) (Dollars in thousands, except per share amount) December 31, 2001 2000 % ChangeAssets Cash and due from banks $ 328,018 $ 386,814 (15) Securities 1,893,105 1,593,922 19 Federal funds sold 395,000 165,000 139 Loans (net of allowance for credit losses of $142,862 and $135,435) 7,016,344 6,391,710 10 Other assets 543,849 559,223 (3) Total assets $ 10,176,316 $ 9,096,669 12Liabilities and Shareholders' Equity Noninterest-bearing deposits $ 3,846,789 $ 3,276,203 17 Interest-bearing deposits 4,284,413 4,132,467 4 Total deposits 8,131,202 7,408,670 10 Federal funds purchased and securities sold under repurchase agreements 171,531 139,841 23 Other short-term borrowed funds 415,125 315,125 32 Subordinated debt 272,236 123,641 120 Other long-term debt 194,671 205,000 (5) Other liabilities 100,974 160,744 (37) Total liabilities 9,285,739 8,353,021 11 Shareholders' equity 890,577 743,648 20 Total liabilities and shareholders' equity $ 10,176,316 $ 9,096,669 12 Book value per share $ 18.50 $ 15.61 18 Number of shares at period end 48,149,998 47,630,010 1 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, 2001 2000 % Change 2001 2000 % ChangeInterest income $ 148,050 $ 169,218 (13) $ 625,248 $ 646,288 (3)Interest expense (34,991) (63,594) (45) (191,094) (239,772) (20)Net interest income 113,059 105,624 7 434,154 406,516 7Provision for credit losses (11,000) (10,500) 5 (35,000) (21,500) 63Net interest income after provision for credit losses 102,059 95,124 7 399,154 385,016 4Noninterest income 35,947 29,929 20 132,384 109,484 21Noninterest expense (80,450) (75,627) 6 (313,395) (294,770) 6Income before taxes 57,556 49,426 16 218,143 199,730 9Income taxes (18,805) (16,380) 15 (71,973) (68,070) 6Net income $ 38,751 $ 33,046 17 $ 146,170 $ 131,660 11Net income per share, basic $ 0.81 $ 0.70 16 $ 3.05 $ 2.79 9Net income per share, diluted $ 0.78 $ 0.68 15 $ 2.96 $ 2.72 9Dividends paid per share $ 0.19 $ 0.18 6 $ 0.74 $ 0.70 6Cash net income $ 42,707 $ 36,814 16 $ 161,978 $ 145,721 11Cash net income per share, basic $ 0.89 $ 0.78 14 $ 3.38 $ 3.09 9Cash net income per share, diluted $ 0.86 $ 0.76 13 $ 3.28 $ 3.01 9Shares used to compute per share net income, basic 48,117,183 47,434,212 47,896,091 47,178,093Shares used to compute per share net income, diluted 49,648,577 48,518,548 49,376,423 48,393,436 CITY NATIONAL CORPORATION SELECTED FINANCIAL INFORMATION (unaudited) (Dollars in thousands)Period end December 31, 2001 2000 % ChangeLoans Commercial (a) $ 3,160,418 $ 3,056,464 3 Residential first mortgage 1,587,303 1,273,711 25 Real estate mortgage 1,668,114 1,479,862 13 Real estate construction 586,066 452,301 30 Installment 70,403 73,018 (4) Total relationship loans 7,072,304 6,335,356 12 Syndicated non-relationship (a) 86,902 191,789 (55) Total loans $ 7,159,206 $ 6,527,145 10(a)Commercial loans were $2,952,076 and syndicated non-relationship loans were $93,372 at September 30, 2001Deposits Noninterest bearing $ 3,846,789 $ 3,276,203 17 Interest-bearing, core 2,940,053 2,456,080 20 Total core deposits 6,786,842 5,732,283 18 Time deposits - $100,000 and over 1,344,360 1,676,387 (20) Total deposits $ 8,131,202 $ 7,408,670 10Credit Quality Nonaccrual loans and ORE (b) Relationship loans $ 32,699 $ 38,974 (16) Syndicated non-relationship loans 5,864 23,012 (75) 38,563 61,986 (38) ORE 10 522 (98) Total nonaccrual loans and ORE $ 38,573 $ 62,508 (38) Relationship nonaccrual loans and ORE to total relationship loans and ORE 0.46 0.62 (26) Total nonaccrual loans and ORE to total loans and ORE 0.54 0.96 (44) Loans past due 90 days or more on accrual status $ 3,615 $ 5,924 (39) Restructured loans on accrual status $ - $ 829 (100)(b)Nonaccrual loans were $40,115 at September 30, 2001 including $31,474 of relationship loans and $8,641 of syndicated non-relationship loansAllowance for Credit Losses For the three months ended For the twelve months ended December 31, December 31, 2001 2000 % Change 2001 2000 % ChangeBeginning balance $ 137,239 $ 139,195 (1) $ 135,435 $ 134,077 1 Additions from acquisitions - -- - -- 9,927 (100) Provision for credit losses 11,000 10,500 5 35,000 21,500 63 Charge-offs (c) Relationship loans (7,852) (8,168) (4) (30,767) (23,409) 31 Syndicated non- relationship loans (3,296) (9,245) (64) (11,812) (18,167) (35) (11,148) (17,413) (36) (42,579) (41,576) 2 Recoveries (d) Relationship loans 5,608 3,153 78 13,994 11,507 22 Syndicated non- relationship loans 163 - N/M 1,012 - N/M 5,771 3,153 83 15,006 11,507 Net charge- offs (5,377) (14,260) (62) (27,573) (30,069) (8)Ending Balance $ 142,862 $ 135,435 5 $ 142,862 $ 135,435 5Net relationship charge-offs to average relationship loans (annualized) (0.13)% (0.32)% (59) (0.25)% (0.21)% 19Total net charge-offs to average loans (annualized) (0.30) (0.88) (66) (0.41) (0.48) (15)Allowance for credit losses to total loans 2.00 2.07 (3)Allowance for credit losses to nonaccrual loans 370.46 218.49 70(c)Charge-offs in the third quarter 2001 were $5,207 in relationship loans and $3,302 in syndicated non-relationship loans(d)Recoveries in the third quarter 2001 were $1,291 in relationship loans and $574 in syndicated non-relationship loans CITY NATIONAL CORPORATION SELECTED FINANCIAL INFORMATION (unaudited) (Dollars in thousands) For the three months ended For the twelve months ended December 31, December 31, 2001 2000 %Change 2001 2000 % ChangeAverage BalancesLoans Commercial $3,091,131 $2,958,824 4 $3,001,677 $2,758,136 9 Residential first mortgage 1,553,762 1,261,191 23 1,417,443 1,235,106 15 Real estate mortgage 1,623,813 1,449,840 12 1,582,853 1,336,443 18 Real estate construction 595,645 425,401 40 513,184 409,281 25 Installment 69,945 71,550 (2) 72,583 66,047 10Total relationship loans 6,934,296 6,166,806 12 6,587,740 5,805,013 13Syndicated non- relationship 93,811 271,636 (65) 125,575 431,321 (71)Total loans $7,028,107 $6,438,442 9 $6,713,315 $6,236,334 8Securities $1,764,794 $1,513,242 17 $1,699,680 $1,416,252 20Interest- earning assets 9,028,587 7,996,396 13 8,520,242 7,698,884 11Assets 9,831,716 8,752,031 12 9,328,512 8,426,129 11Core deposits 6,168,871 5,231,662 18 5,598,110 4,957,440 13Deposits 7,555,753 6,876,279 10 7,067,984 6,334,846 12Shareholders' equity 892,712 718,707 24 825,344 667,618 24Noninterest income Trust and investment fee revenue $ 15,248 $ 12,469 22 $ 58,596 $ 47,279 24 Cash management and deposit transaction fees 8,712 5,739 52 30,911 22,933 35 International services 3,862 3,958 (2) 15,017 14,982 - Bank owned life insurance 725 654 11 2,860 2,578 11 Other 6,370 6,008 6 20,245 18,651 9 Subtotal - core 34,917 28,828 21 127,629 106,423 20 Gain (loss) on sale of loans and assets/ debt repurchase 120 6 N/M 1,413 (71) N/M Gain on sale of securities 910 1,095 (17) 3,342 3,132 7 Total $ 35,947 $ 29,929 20 $ 132,384 $ 109,484 21Noninterest expense Salaries and other employee benefits $ 42,403 $ 38,838 9 $ 170,364 $ 159,782 7 All Other Professional 6,309 6,338 - 24,634 23,076 7 Net occupancy of premises 6,969 6,632 5 26,375 24,415 8 Information services 4,595 3,699 24 16,623 14,064 18 Depreciation 3,488 3,553 (2) 13,748 13,037 5 Amortization of goodwill 3,221 3,034 6 12,868 11,223 15 Marketing and advertising 3,821 4,132 (8) 12,093 12,959 (7) Office services 2,603 2,580 1 9,396 9,724 (3) Amortization of core deposit intangibles 1,404 1,404 - 5,618 5,444 3 Equipment 649 723 (10) 2,245 2,462 (9) Other operating 4,988 4,694 6 19,431 18,584 5 Total all other 38,047 36,789 3 143,031 134,988 6 Total $ 80,450 $ 75,627 6 $ 313,395 $ 294,770 6Selected Ratios For the Period Return on average assets 1.56 % 1.50 % 4 1.57 % 1.56 % 1 Return on average shareholders' equity 17.22 18.29 (6) 17.71 19.72 (10) Net interest margin 5.12 5.41 (5) 5.26 5.44 (3) Efficiency ratio 52.69 54.56 (3) 54.08 55.76 (3) Dividend payout ratio 22.97 25.14 (9) 24.26 24.95 (3) Cash return on average assets 1.75 1.71 2 1.77 1.76 1 Cash return on average shareholders' equity 23.50 26.75 (12) 25.01 29.17 (14) Cash efficiency ratio 49.66 51.36 (3) 50.90 52.61 (3)Period End Tier 1 risk-based capital ratio 9.32 7.84 19 Total risk-based capital ratio 14.08 10.85 30 Tier 1 leverage ratio 7.26 6.49 12

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