LOS ANGELES--(BUSINESS WIRE)--Oct. 12, 2000--

22% Rise Marks 25th Consecutive Quarter of Year-Over-Year Double-Digit Net Income Growth

City National Corporation (NYSE:CYN), parent corporation ofwholly owned City National Bank, today reported record net income of$34.2 million for the third quarter of 2000, a 22 percent increasefrom net income of $28.1 million in the third quarter of 1999, and a 2percent increase from $33.4 million in the second quarter of 2000.

Cash net income, which excludes the amortization of core depositintangibles and goodwill from acquisitions, increased 27 percent to$37.9 million for the third quarter of 2000 from $29.8 million for thethird quarter of 1999, and rose 2 percent from $37.2 million in thesecond quarter of 2000.

Net income per diluted common share of $0.70 per share increased17 percent, compared with $0.60 per share in the third quarter of1999, and 3 percent above the $0.68 per diluted common share reportedfor the 2000 second quarter. Slightly over $0.01 per diluted commonshare in the third quarter of 2000 was attributable to the net effectof a non-recurring gain on the sale of securities and closure costsfor two banking offices.

Cash net income per diluted common share rose 20 percent to $0.77,compared with $0.64 per diluted common share for the third quarter of1999 and $0.76 per diluted common share for the second quarter of2000. Management expects earnings per diluted common share for thefourth quarter to be within the current range of analysts' projectionsof $0.67 to $0.70 per diluted common share as reflected in First Call.

City National Corp. achieved record net income of $98.6 millionfor the first nine months of 2000, an increase of 23 percent over netincome of $80.2 million for the first nine months of 1999. Cash netincome for the first nine months of 2000 rose 28 percent to $108.9million from $84.9 million for the 1999 comparable period.

Net income per diluted common share for the first nine months of2000 increased by 20 percent to $2.04 per diluted common share, from$1.70 per diluted common share in the first nine months of 1999. Cashnet income per diluted common share rose to $2.25, compared with $1.81per diluted common share for the first nine months of 1999.

These results reflect the integration of The Pacific Bank, N.A.,acquired in February 2000, and American Pacific State Bank, acquiredin August 1999.

"City National has achieved its 25th consecutive quarter ofyear-over-year, double-digit growth in net income by delivering solidacross-the-board gains in new clients, loans, deposits, andnoninterest income. We are particularly pleased with the 27 percentgrowth in our earnings on a cash basis," said Russell Goldsmith, CEOof City National Corp.

"City National's compelling competitive capabilities and positionas the premier private and business bank headquartered in Californiaenable us to generate this consistent, quality earnings growth.

"We are doing this while investing in the people, technology, andfacilities - such as our new Palo Alto office - that will contributeto our future growth," he added. "At the same time, City National isalso enhancing its strong balance sheet and substantially reducing thesize of its syndicated non-relationship loan portfolio, whilemaintaining strong loan reserves."

Return on Assets/Return on Equity

The corporation's return on average assets in the third quarter of2000 was 1.55 percent, compared with 1.72 percent in the 1999 thirdquarter and 1.58 percent in the 2000 second quarter. The quarter'sdecrease reflects the corporation's larger asset base and the impacton net income of amortizing the higher level of goodwill resultingfrom recent acquisitions.

The return on average shareholders' equity was 19.63 percent,compared with 19.94 percent for the prior-year quarter and 20.37percent for the second quarter of this year. The decline isattributable, in part, to an increase in retained earnings and lowerunrealized losses on securities during the third quarter of 2000.

For the first nine months of 2000, the return on average assetswas 1.58 percent and the return on average shareholders' equity was

  • 20.25 percent, compared with a 1.71 percent return on average assetsand a 19.08 percent return on average shareholders' equity for thefirst nine months of 1999.

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 thethird quarter of 2000 was 1.75 percent, compared with 1.83 percent inthe third quarter of 1999. The return on average shareholders' equityrose to 29.13 percent, compared with 22.88 percent for the prior-yearquarter.

On a cash basis, for the first nine months of 2000, the return onaverage assets was 1.79 percent and the return on averageshareholders' equity was 30.09 percent, compared with a 1.83 percentreturn on average assets and a 22.47 percent return on averageshareholders' equity for the first nine months of 1999.

Assets

Total average assets reached a record $8.8 billion in the thirdquarter of 2000, an increase of 35 percent over the $6.5 billion inaverage assets in the third quarter of 1999 and $0.2 billion higherthan the second quarter of 2000. For the nine months ended Sept.30, 2000, total average assets increased 33 percent to $8.3 billion,compared with $6.3 billion for the same period a year ago. Totalassets at Sept. 30, 2000 were $8.9 billion, compared with totalassets of $6.9 billion at Sept. 30, 1999, and total assets of $8.7billion at June 30, 2000.

Loans

Average loans rose to $6.4 billion during the third quarter of2000, an increase of 32 percent over the third quarter of 1999.Average loans increased 2 percent over the 2000 second quarter.Year-over-year loan growth was driven primarily by increases incommercial loans and real estate commercial mortgages.

Compared with the year-ago quarter, commercial loan averagebalances rose 27 percent from $2.6 billion to $3.3 billion. Realestate commercial mortgage averages rose 65 percent from $0.9 billionto $1.4 billion compared with the year-ago quarter, largely as aresult of loans added through acquisitions.

Growth in all other loan categories contributed to the increase inaverage loans over the prior year and sequential quarters. For thefirst nine months of 2000, average loans increased 32 percent to $6.2billion from $4.7 billion for the first nine months of 1999.

Total loans at Sept. 30, 2000 were $6.4 billion, compared with$5.2 billion at Sept. 30, 1999 and $6.3 billion at June 30, 2000. Theincrease from June 30, 2000 was primarily driven by an increase incommercial relationship loans.

Syndicated non-relationship loans declined $202 million, or 38percent, during the first nine months of 2000, to $335 million atSept. 30, 2000, and represented approximately 5 percent of the loanportfolio at Sept. 30, 2000, compared with almost 10 percent at Dec.31, 1999.

The average outstanding loan balance in the syndicatednon-relationship portfolio at Sept. 30, 2000 is just under $4.0million, which represents about two-thirds of the average commitmentamount. The decline in syndicated non-relationship lending is expectedto continue as the corporation emphasizes relationships with clientswho are offered the full array of its products, including loans,deposits, and fee-based services such as cash management,international and wealth management.

Management expects that the continued strength in California'seconomy and its plans for continued marketing efforts will result inconsistent growth in relationship loans during the fourth quarter.

Deposits

Average deposits rose during the third quarter of 2000 to $6.5billion, an increase of 36 percent over the third quarter of 1999, andan increase of 4 percent over the 2000 second quarter. During thefirst nine months of 2000, average deposits increased 35 percent to$6.2 billion, compared with $4.6 billion for the same period a yearago.

Deposits totaled $6.9 billion at Sept. 30, 2000, compared with$5.3 billion at Sept. 30, 1999, and $6.4 billion at June 30, 2000.Demand deposits accounted for 40 percent of total deposits.

In prior years, year-end core deposit levels have typicallyincreased from third quarter balances due to seasonal factors.Management expects similar results in 2000.

Net Interest Income

As a result of the strong loan and core deposit growth and ahigher prime rate compared with the year-earlier period, net interestincome on a fully taxable-equivalent basis rose 28 percent to $107.3million in the third quarter compared with $83.9 million for the samequarter of 1999.

The negative impact of the reversal of income on loans moving tononaccrual status and lower interest recovered on nonaccrual andcharged-off loans, slightly offset by the benefit of having one moreday in this quarter, contributed to the decline in third quarterresults compared with the $107.8 million for the second quarter of2000.

Interest recovered on nonaccrual and charged-off loans was $0.8million for the third quarter of 2000, compared with $0.8 million forthe third quarter of 1999 and $1.3 million for the second quarter of2000.

For the first nine months of 2000, net interest income on a fullytaxable-equivalent basis totaled $310.4 million, an increase of 28percent over $242.8 million for the first nine months of 1999.Interest recovered in the first nine months of 2000 was $3.1 million,compared with $4.9 million for the same period of 1999.

The fully taxable-equivalent net interest margin was 5.32 percentfor the quarter ended Sept. 30, 2000, and 5.46 percent for thefirst nine months of 2000, compared with 5.57 percent and 5.58 percentfor the comparable periods of 1999.

The reduction in average demand deposits between sequentialquarters and the higher level of interest income not recognized onnonaccrual loans contributed 8 and 7 basis points, respectively, tothe reduction of the margin between the second and third quarters of2000. In addition, the net interest margin between the second andthird quarters was reduced by 6 basis points by higher balances onshort-term investment securities in the regulated investment companysubsidiary. (See Income Taxes below.)

Management expects its net interest margin in the fourth quarterto improve modestly from the third quarter, in part due to anticipatedseasonal increases in core deposits and a decrease in the level ofinvestment securities.

Noninterest Income

Noninterest income continued its strong, across-the-board growth,with recurring noninterest income increasing 27 percent to $26.8million for the third quarter 2000 over the same quarter of 1999.Recurring noninterest income in the third quarter was essentiallyunchanged from the second quarter, largely as a result of unusuallystrong levels of other income recorded in the second quarter of 2000.The $77.6 million in recurring noninterest income for the first ninemonths of 2000 represented a 33 percent increase over the $58.3million for the same period in 1999.

All categories of recurring noninterest income were higher in thecurrent periods of 2000 compared with the year-earlier periods,reflecting City National's continued emphasis on growing fee income.Investment services and trust fees rose as a result of a strongcross-selling program to existing customers, as well as direct-salesactivities focused on new customers by City National Investments(CNI), a division of City National Bank.

Assets under administration in CNI were $16.7 billion at Sept. 30,2000, including $5.3 billion under management, compared with $13.5billion and $3.8 billion, respectively, at Sept. 30, 1999, and $15.5billion and $5.2 billion at June 30, 2000. The 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 $1.7million and $2.0 million for the third quarter and first nine monthsof 2000, respectively, compared with gains of $2.1 million and $5.7million for the same periods a year earlier. Noninterest income was 21percent of total revenues for the first nine months of both 2000 and1999.

Management expects consistent growth in CNI and internationalincome and moderate growth in other categories during the 2000 fourthquarter compared with the year ago period.

Noninterest Expense

Third quarter results benefited from a reduction in noninterestexpense to $74.0 million compared with $76.1 million in the secondquarter of 2000. The decline in expenses is, in part due to thecompleted integration of The Pacific Bank, N.A., as well asmanagement's continued emphasis on achieving greater efficiencies andproductivity.

Noninterest expense was $61.4 million in the third quarter of1999. Noninterest expense for the first nine months of 2000 increasedby $44.0 million to $219.1 million, compared with $175.1 million forthe first nine months of 1999.

The year-over-year increase in expenses was primarily the resultof the corporation's growth, including expenses associated withadditional offices and a substantial number of new colleagues --mostly from acquisitions - as well as the amortization of goodwilland core deposit intangibles.

Third-quarter 2000 results included $0.8 million of severance andexcess space provisions relating to the previously announced closureof two banking offices scheduled to be completed at the end of theyear.

Salaries and other employee benefits increased by $6.3 million, or18 percent, over the third quarter of 1999; they decreased by $1.1million, or 3 percent, compared with the second quarter of 2000. Allother expenses increased $6.3 million, or 23 percent, from the thirdquarter of 1999, but decreased $1.0 million, or 3 percent, from thesecond quarter of 2000.

City National currently anticipates that fourth quarternoninterest expenses will increase modestly over the third quarter dueto continued growth, moderated by management's emphasis on enhancingefficiency and productivity.

Income Taxes

The effective tax rate in the third quarter of 2000 was 33.7percent and the rate for the first nine months was 34.4 percentcompared with 35.4 percent for all of 1999. The lower tax rate is dueprimarily to the impact of the formation of a regulated investmentcompany subsidiary. The long-term plan for the regulated investmentcompany is currently under review.

Management, however, expects its effective tax rate to remain atthe current year-to-date rate for the balance of this year.

Credit Quality

City National recorded a provision for credit losses of $7.0million in the third quarter of 2000. The 2000 year-to-date provisiontotaled $11.0 million. City National reported no credit lossprovisions in the year-earlier periods.

The provision for credit losses during the first nine monthsreflects the levels of net charge-offs and nonaccrual loans,management's ongoing assessment of credit quality of the portfolio andthe 24 percent year-over-year growth of the loan portfolio.

The level of provision for credit losses to be taken in the fourthquarter will reflect management's assessment of the above factors, aswell as the economic environment. Based on management's currentassessment of these factors, the provision should approximate theamount taken in the third quarter.

Loan charge-offs for the third quarter of 2000 were $9.8 million,slightly higher than the $8.9 million in the second quarter of thisyear and $2.3 million ahead of the $7.5 million reflected a year ago.For the same periods, net charge-offs were $8.3 million, $4.0 millionand $4.6 million, respectively, as the benefit from recoveriescontinued to decline in relation to past levels.

As a percentage of average loans, net charge-offs were 0.13percent, 0.06 percent and 0.09 percent for the three months endedSept. 30, 2000, June 30, 2000, and Sept. 30, 1999, respectively.

Slightly more than half of the net charge-offs in the quarter andin the year-to-date period were for syndicated non-relationship loans.As previously noted, the corporation's exposure to syndicatednon-relationship loans continues to decrease.

Total nonperforming assets (nonaccrual loans and ORE) were $47.0million, or 0.73 percent, of total loans and ORE at Sept. 30, 2000,compared with $21.5 million, or 0.41 percent, at Sept. 30, 1999, and$35.5 million, or 0.56 percent, at June 30, 2000. Two syndicatednon-relationship loans totaling $13.9 million moved to nonaccrualstatus this quarter.

Total syndicated non-relationship loans on nonaccrual status were$17.2 million at Sept. 30, 2000 compared with none a year ago and $3.3million at June 30, 2000. Relationship loans on nonaccrual were $10.4million higher than a year ago but declined by $2.1 million from June30, 2000 levels.

The allowance for credit losses at Sept. 30, 2000 totaled $139.2million, or 2.17 percent of outstanding loans. This compares with anallowance of $139.0 million, or 2.69 percent of outstanding loans, atSept. 30, 1999, and an allowance of $140.5 million, or 2.21 percent ofoutstanding loans, at June 30, 2000.

The allowance for credit losses as a percentage of nonaccrualloans was 297 percent at Sept. 30, 2000, compared with 720 percent atSept. 30, 1999 and 401 percent at June 30, 2000. Management believesthe allowance for credit losses is adequate to cover risks inherent inthe portfolio at Sept. 30, 2000.

Capital Levels

Total risk-based capital and Tier 1 risk-based capital ratios atSept. 30, 2000 were 10.88 percent and 7.85 percent, compared with thecapitalization ratios of 10 and 6 percent required for an institutionto be classified as "well-capitalized."

The corporation's Tier 1 leverage ratio of 6.41 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 ratio were 10.56 percent, 7.49 percent and 6.19percent, respectively, at June 30, 2000.

Stock Repurchase

Since the current stock buyback program of one million commonshares was announced on July 29, 1999, 731,100 shares have beenrepurchased at a cost of $23.5 million. No shares were repurchased inthe third quarter of 2000. The shares purchased under the buybackprogram have been reissued for acquisitions, upon the exercise ofstock options, and for other general corporate purposes. There were noTreasury shares at Sept. 30, 2000.

About City National

City National Corp. is a publicly owned corporation with $8.9billion in total assets whose stock is traded on the New York StockExchange under the symbol "CYN." The corporation's wholly ownedsubsidiary, City National Bank, is the premier independent private andbusiness bank with headquarters in California. City National Bank,which provides banking, trust and investment services, has 50California offices located throughout Los Angeles, Orange, Riverside,San Bernardino, San Diego, San Francisco, San Mateo, Santa Clara andVentura counties, and a loan production office in Sacramento.

For more information about the corporation, the corporation's Webpage is at http://www.cnb.com.

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, (2) changes in interest rates, (3) significantchanges in banking laws or regulations, (4) increased competition inthe corporation's market, (5) higher-than-expected credit losses and(6) possible changes in the plans for the registered investmentcompany subsidiary.

For a more complete discussion of these risks and uncertainties,see the corporation's Quarterly Report on Form 10-Q for the quarterended June 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) September 30, 2000 1999 % ChangeAssets Cash and due from banks $ 393,669 $ 307,549 28 Securities 1,660,082 1,060,431 57 Federal funds sold 30,000 60,000 (50) Loans (net of allowance for credit losses of $139,195 and $139,015) 6,287,597 5,032,909 25 Other assets 542,607 474,727 14 Total assets $ 8,913,955 $ 6,935,616 29Liabilities and Shareholders' Equity Noninterest-bearing deposits $ 2,743,717 $ 2,296,288 19 Interest-bearing deposits 4,129,796 3,014,449 37 Total deposits 6,873,513 5,310,737 29 Federal funds purchased and securities sold under repurchase agreements 132,750 137,498 (3) Other short term borrowed funds 740,638 551,725 34 Subordinated debt 123,594 123,405 - Other long-term debt 205,000 180,000 14 Other liabilities 127,802 71,863 78 Total liabilities 8,203,297 6,375,228 29Shareholders' equity 710,658 560,388 27 Total liabilities and shareholders' equity $ 8,913,955 $ 6,935,616 29Book value per share $ 14.88 $ 12.34 21Number of shares at period end 47,765,807 45,417,366 5 Consolidated Statement of Income (unaudited) (Dollars in thousands, except per share amount) For the three months ended For the nine months ended September 30, September 30, 2000 1999 % 2000 1999 % Change ChangeInterest income $ 170,927 $ 119,149 43 $ 477,070 $ 341,011 40Interest expense (66,926) (37,847) 77 (176,178) (105,917) 66Net interest income 104,001 81,302 28 300,892 235,094 28Provision for credit losses (7,000) - N/M (11,000) - N/MNet interest income after provision for credit losses 97,001 81,302 19 289,892 235,094 23Noninterest income 28,522 23,165 23 79,555 63,997 24Noninterest expense (73,984) (61,369) 21 (219,143) (175,104) 25Income before taxes 51,539 43,098 20 150,304 123,987 21Income taxes (17,378) (15,015) 16 (51,690) (43,797) 18Net income $ 34,161 $ 28,083 22 $ 98,614 $ 80,190 23Net income per share, basic $ 0.72 $ 0.61 18 $ 2.09 $ 1.75 19Net income per share, diluted $ 0.70 $ 0.60 17 $ 2.04 $ 1.70 20Dividends paid per share $ 0.18 $ 0.17 6 $ 0.53 $ 0.50 6Cash net income $ 37,853 $ 29,792 27 $ 108,907 $ 84,947 28Cash net income per share, basic $ 0.79 $ 0.65 22 $ 2.31 $ 1.86 24Cash net income per share, diluted $ 0.77 $ 0.64 20 $ 2.25 $ 1.81 24Shares used to compute per share net income, basic 47,694,471 45,664,000 47,092,720 45,767,496Shares used to compute per share net income, diluted 49,082,476 46,689,954 48,351,733 47,048,988 City National Corporation Selected Financial Information (unaudited) (Dollars in thousands)Period end September 30, 2000 1999 % ChangeLoans Commercial (a) Relationship $ 2,920,518 $ 2,196,659 33 Syndicated non-relationship 334,626 497,243 (33) 3,255,144 2,693,902 21 Residential first mortgage 1,254,557 1,121,683 12 Real estate commercial mortgage 1,438,814 974,867 48 Real estate construction 408,749 328,422 24 Installment 69,528 53,050 31 Total loans $ 6,426,792 $ 5,171,924 24 (a) Commercial relationship loans were $2,782,611 and syndicatednon-relationship loans were $442,293 at June 30, 2000Deposits Noninterest bearing $ 2,743,717 $ 2,296,288 19 Interest-bearing, core 2,514,552 1,907,435 32 Total core deposits 5,258,269 4,203,723 25 Time deposits - $100,000 and over 1,615,244 1,107,014 46 Total deposits $ 6,873,513 $ 5,310,737 29Nonaccrual loans and ORE (b) Relationship loans $ 29,717 $ 19,316 54 Syndicated non-relationship loans 17,166 - N/M 46,883 19,316 143 ORE 133 2,134 (94) Total nonaccrual loans and ORE $ 47,016 $ 21,450 119 Loans past due 90 days or more on accrual status $ 5,375 $ 5,151 4 Restructured loans on accrual status $ 2,411 $ 2,586 (7) (b) Nonaccrual loans were $35,077 at June 30, 2000 including $31,793of relationship loans and $3,284 of syndicated non-relationship loansAllowance for Credit Losses September 30, September 30, 2000 1999 % 2000 1999 % Change ChangeBeginning balance $ 140,484 $ 140,185 - $ 134,077 $ 135,339 (1) Additions from acquisitions - 3,415 (100) 9,927 3,415 191 Provision for credit losses 7,000 - N/M 11,000 - N/M Charge-offs (c) Relationship loans (5,060) (7,483) (32) (15,241) (10,102) 51 Syndicated non-relationship loans (4,690) - N/M (8,922) - N/M (9,750) (7,483) 30 (24,163) (10,102) 139 Recoveries 1,461 2,898 (50) 8,354 10,363 (19) Net (charge-offs) recoveries (8,289) (4,585) 81 (15,809) 261 N/MEnding Balance $ 139,195 $ 139,015 - $ 139,195 $ 139,015 --Net (charge-offs) recoveries to average loans (0.13)% (0.09)% 44 (0.26)% 0.01% N/M (c) Charge-offs in the second quarter 2000 were $8,265 inrelationship loans and $589 in syndicated non-relationship loans City National Corporation Selected Financial Information (unaudited) (Dollars in thousands except per share amounts) September 30, 2000 1999 % ChangeAverage BalancesLoans Commercial $ 3,271,184 $ 2,575,814 27 Residential first mortgage 1,245,026 1,072,815 16 Real estate commercial mortgage 1,416,387 859,944 65 Real estate construction 430,538 304,777 41 Installment 67,336 52,666 28 Total loans $ 6,430,471 $ 4,866,016 32Securities $ 1,558,339 $ 1,083,670 44Interest-earning assets 8,017,627 5,982,452 34Assets 8,757,790 6,491,294 35Core deposits 5,000,742 3,821,962 31Deposits 6,501,125 4,785,516 36Shareholders' equity 692,436 558,693 24 Noninterest income Service charges on deposit accounts $ 5,888 $ 4,531 30 Investment services 6,831 5,474 25 Trust fees 5,197 4,442 17 International services 3,967 2,479 60 Bank owned life insurance 646 574 13 Other 4,256 3,550 20 Subtotal - recurring 26,785 21,050 27 Gain on sale of securities, loans and assets 1,737 2,115 (18) Total $ 28,522 $ 23,165 23Noninterest expense Salaries and other employee benefits $ 40,506 $ 34,191 18 All Other Professional 5,047 5,107 (1) Net occupancy of premises 7,235 4,753 52 Information services 3,369 3,204 5 Marketing and advertising 2,503 2,428 3 Depreciation 3,203 3,005 7 Office services 2,302 2,118 9 Amortization of goodwill and core deposit intangibles 4,361 2,286 91 Equipment 537 422 27 Acquisition integration 1 1,083 (100) Other operating 4,920 2,772 77 Total all other 33,478 27,178 23 Total $ 73,984 $ 61,369 21 September 30, 2000 1999 % ChangeAverage BalancesLoans Commercial $ 3,175,687 $ 2,499,067 27 Residential first mortgage 1,226,347 1,042,781 18 Real estate commercial mortgage 1,298,368 794,976 63 Real estate construction 403,868 274,247 47 Installment 64,199 50,089 28 Total loans $ 6,168,469 $ 4,661,160 32Securities $ 1,383,686 $ 1,105,441 25Interest-earning assets 7,598,986 5,802,437 31Assets 8,316,702 6,271,829 33Core deposits 4,865,363 3,731,321 30Deposits 6,153,048 4,574,421 35Shareholders' equity 650,464 561,784 16Noninterest income Service charges on deposit accounts $ 17,194 $ 12,696 35 Investment services 19,164 14,413 33 Trust fees 15,646 13,307 18 International services 11,024 6,865 61 Bank owned life insurance 1,924 1,654 16 Other 12,643 9,323 36 Subtotal - recurring 77,595 58,258 33 Gain on sale of securities, loans and assets 1,960 5,739 (66) Total $ 79,555 $ 63,997 24Noninterest expense Salaries and other employee benefits $ 120,944 $ 99,017 22 All Other Professional 16,738 14,818 13 Net occupancy of premises 17,783 12,725 40 Information services 10,365 8,663 20 Marketing and advertising 8,827 7,573 17 Depreciation 9,484 8,154 16 Office services 7,144 5,983 19 Amortization of goodwill and core deposit intangibles 12,229 6,257 95 Equipment 1,739 1,546 12 Acquisition integration 1,323 1,109 19 Other operating 12,567 9,259 36 Total all other 98,199 76,087 29 Total $ 219,143 $ 175,104 25 September 30, September 30, 2000 1999 % 2000 1999 % Change ChangeSelected RatiosFor the Period Return on average assets 1.55 % 1.72 % (10) 1.58 % 1.71 % (8) Return on average shareholders' equity 19.63 19.94 (2) 20.25 19.08 6 Net interest margin 5.32 5.57 (4) 5.46 5.58 (2) Efficiency ratio 54.44 57.54 (5) 56.19 57.13 (2) Dividend payout ratio 24.33 26.83 (9) 24.88 28.33 (12) Cash return on average assets 1.75 1.83 (4) 1.79 1.83 (2) Cash return on average shareholders' equity 29.13 22.88 27 30.09 22.47 34 Cash efficiency ratio 51.23 55.41 (8) 53.06 55.09 (4)Period End Tier 1 risk-based capital ratio 7.85 7.98 (2) Total risk-based capital ratio 10.88 11.44 (5) Tier 1 leverage ratio 6.41 7.09 (10) Nonaccrual loans to total loans 0.73 0.37 97 Nonaccrual loans and ORE to total loans and ORE 0.73 0.41 78 Allowance for credit losses to total loans 2.17 2.69 (19) Allowance for credit losses to nonaccrual loans 296.90 719.69 (59)

CONTACT:City National Corp.
Frank Pekny, 310/888-6700 (Financial/Investors)
Kim George, 310/888-6665 (Media)
or
Abernathy MacGregor Group
Ian Campbell, 213/630-6550 (Financial/Investors)
or
Stoorza Communications
Denis Wolcott, 213/891-2822 (Media)