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 Net Income Grew 13 Percent or 11 Percent Per Share from Second Quarter 2003

LOS ANGELES--(BUSINESS WIRE)--July 14, 2004--City National Corporation (NYSE:CYN), parent company of whollyowned City National Bank, today reported net income of $52.2 million,or $1.03 per share, for the second quarter of 2004 compared with $46.1million, or $0.93 per share, for the second quarter of 2003 and $50.9million, or $1.00 per share, for the first quarter of 2004.

For the first half of 2004, City National Corporation recorded netincome of $103.1 million, or $2.03 per share, compared with $89.7million, or $1.80 per share, reported for the first half of 2003.

 HIGHLIGHTS - Average deposits were up 14 percent with average core deposits up 18 percent for the second quarter of 2004 from the second quarter a year ago due to growth throughout the bank. - Second quarter average loans surpassed $8.0 billion for the first time, up 3 percent from the same period last year. Period-end loan balances at June 30, 2004 of $8.1 billion increased $242.8 million, or 3 percent from $7.9 billion at December 31, 2003 net of payoffs of $98.7 million in dairy loans as a result of the company exiting this industry as previously announced. - No provision for credit losses was recorded for the second quarter of 2004, a result of continued strong credit quality and an adequate current level of allowance for credit losses. Recoveries slightly exceeded charge-offs for the quarter. Nonaccrual loans as of June 30, 2004, were $41.8 million, down 40 percent from June 30, 2003, and down 2 percent from March 31, 2004. - Average securities for the second quarter of 2004 were up 25 percent from the same period a year ago due to deposit growth outpacing loan growth. Second-quarter average securities were up 4 percent from the first quarter of 2004 but period-end securities declined $104.1 million from March 31, 2004 to June 30, 2004. - Noninterest income for the second quarter of 2004 rose 7 percent over the same period a year ago due primarily to higher trust and investment fees.

"Continued very good credit quality, coupled with strong growth indeposits and wealth management revenue, again helped produce soliddouble-digit earnings growth in the first half of 2004 over 2003,"said Chief Executive Officer Russell Goldsmith. "In addition we areseeing some increase in the pace of loan growth, a trend which shouldcontinue in the second half of the year as the California economy andbusiness confidence continue to improve."

 For the three months For the ended three June 30, monthsDollars in millions, % ended % ---------------------except per share Change March 31, Change 2004 2003 2004----------------------- ---------- ---------- ------ ---------- ------Earnings Per Share $1.03 $0.93 11 $1.00 3Net Income 52.2 46.1 13 50.9 3Average Assets 13,211.6 11,914.9 11 12,606.8 5Return on Average Assets 1.59 % 1.55 % 3 1.62 % (2)Return on Average Equity 17.07 16.33 4 16.75 2

As previously disclosed, in 2004 the company is continuing itspractice, adopted in the fourth quarter of 2003, of not recognizingtax benefits associated with its real estate investment trusts("REITS"). Second-quarter 2003 results included $2.7 million in netincome, or $0.05 per share, from tax benefits of the company's twoREITS.

The Bank's prime rate was 4.25 percent as of June 30, 2004, anincrease of 25 basis points over last year. However, the increasebecame effective on June 30, 2004 and did not impact 2004 secondquarter results.

ASSETS

Average assets for the second quarter of 2004 were higher than thesecond quarter of 2003, primarily due to an increase in averagesecurities, loans, and federal funds sold. Total assets at June 30,2004 increased 9 percent to $13.5 billion from $12.4 billion at June30, 2003, and increased 2 percent from $13.2 billion at March 31,2004.

REVENUES

Revenues (net interest income plus noninterest income) for thesecond quarter of 2004 increased 5 percent to $180.5 million comparedwith $172.2 million for the second quarter of 2003 due to higher netinterest income and trust and investment fees. Revenues were up 2percent from the first quarter of 2004.

NET INTEREST INCOME

Fully taxable-equivalent net interest income for the secondquarter of 2004 was $135.6 million, compared with $130.8 million forthe second quarter of 2003 and $134.3 million for the first quarter of2004. The net interest margin was 17 basis points lower than the firstquarter of 2004 due primarily to investing in lower yielding, shorterterm securities.

 For the three months For the ended three June 30, months % ended % ---------------------Dollars in millions Change March 31, Change 2004 2003 2004----------------------- ---------- ---------- ------ ---------- ------Average Loans $8,053.9 $7,793.9 3 $7,886.3 2Average Securities 3,601.0 2,873.8 25 3,462.5 4Average Deposits 11,121.5 9,774.9 14 10,533.5 6Average Core Deposits 10,310.7 8,763.1 18 9,621.2 7Fully Taxable- Equivalent Net Interest Income 135.6 130.8 4 134.3 1Net Interest Margin 4.49 % 4.79 % (6) 4.66 % (4)

Compared with the prior-year second-quarter averages, residentialfirst mortgage loans rose 18 percent, commercial real estate mortgageloans rose 6 percent, real estate construction loans rose 15 percent,and commercial loans decreased 8 percent partially due to payoffs ofdairy loans. Compared with the prior quarter, all categories increasedexcept commercial loans.

Period-end June 30, 2004 loans increased $157.9 million from March31, 2004, reflecting growth in residential first mortgage, commercialreal estate mortgage, and real estate construction loans.

Average core deposits represented 93 percent of the total averagedeposit base for the second quarter of 2004, compared with 90 percentfor the second quarter of 2003 and 91 percent for the first quarter of2004. New clients and higher client balances maintained as deposits topay for services contributed to the year-over-year growth of deposits.

As part of the company's long-standing asset-liability managementstrategy, its "plain vanilla" interest rate swaps hedging loans,deposits and borrowings remained at the same $1.1 billion notionalvalue at March 31, 2004. Notional value as of June 30, 2003 was $1.0billion.

NONINTEREST INCOME

Second-quarter 2004 noninterest income was 7 percent higher thanthe second quarter of 2003 and 4 percent higher than the first quarterof 2004 due primarily to higher trust and investment fees. As apercentage of total revenues, noninterest income was 27 percent forthe second quarter of 2004, compared with 26 percent for both thesecond quarter of 2003 and the first quarter of 2004.

Wealth Management

 At or for the At or for the three months ended three June 30, months % ended % -------------------Dollars in millions Change March 31, Change 2004 2003 2004------------------------- --------- --------- ------ --------- ------Trust and Investment Fee Revenue $16.7 $12.2 37 $15.6 7Brokerage and Mutual Fund Fees 9.4 9.3 1 8.7 7Assets Under Administration 31,749.9 26,237.3 21 30,532.3 4Assets Under Management (1)(2) 14,567.2 12,531.3 16 14,339.3 2(1) Included above in assets under administration(2) Excludes $3,275 and $3,591 million of assets under management for the CCM minority owned asset managers as of June 30, 2004 and March 31, 2004, respectively

Assets under management at June 30, 2004 increased from the sameperiod last year primarily due to new business, aided by strongrelative investment performance and higher market values. Trust andinvestment fees increased over the second quarter of 2003 primarilydue to higher balances under management or administration. Increasesin market values are reflected in fee income primarily on atrailing-quarter basis. Brokerage and mutual fund fees in the secondquarter increased over the first quarter of 2004 due in part to feesrecognized as a co-manager of the California Economic Recovery Bondand a participant in the Puerto Rico Commonwealth General ObligationBond issues.

Other Noninterest Income

Cash management and deposit transaction fees increased 1 percentfor the second quarter of 2004 over the same quarter last year.Compared with the first quarter of 2004, second-quarter 2004 cashmanagement and deposit transaction fees decreased 1 percent due toannual fees recognized in arrears having been recorded in the firstquarter of 2004.

International service fees for the second quarter of 2004 wereessentially unchanged over the prior year quarter and decreased 2percent from the first quarter of 2004 primarily due to lower importletters of credit fees.

Second-quarter 2004 other income was 17 percent lower than thesecond quarter of 2003 primarily due to the lower loan product feesand 2 percent higher than the first quarter of 2004.

For the second quarter of 2004, $0.9 million in gains on the saleof loans, assets and debt repurchase and gains on the sale ofsecurities were realized, compared to $1.3 million for the secondquarter of 2003 and $0.6 million for the first quarter of 2004.

NONINTEREST EXPENSE

Second-quarter 2004 noninterest expense of $95.7 million was up 5percent compared to $91.3 million for the second quarter of 2003 andup 1 percent from $94.5 million for the first quarter of 2004. Theyear-over-year increase primarily relates to higher staff costincluding base salaries, incentives, and benefit costs includingrestricted stock costs. Restricted stock awards continue to replace aportion of the stock option grants that are part of the company'sequity compensation program.

For the second quarter of 2004, the efficiency ratio was 52.72percent compared with 52.53 percent for the second quarter of 2003,and 53.39 percent for the first quarter of 2004.

INCOME TAXES

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

As previously reported, the California Franchise Tax Board ("FTB")has taken the position that certain REIT and registered investmentcompany ("RIC") tax deductions will be disallowed under new Californialaw adopted in the fourth quarter of 2003. While management continuesto believe 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 these disputed 2000 through2002 tax benefits, and permitting the company to claim a refund forthese years while avoiding certain potential penalties. The companyretains potential exposure for assertion of an accuracy-rated penaltyshould the FTB prevail in its position, in addition to the risk of notbeing successful in its refund claims for taxes and interest. As ofJune 30, 2004, the company reflected a $36.4 million net state taxreceivable for the years 2000, 2001 and 2002 after giving effect toreserves for loss contingencies on the refund claims, or an equivalentof $23.7 million after giving effect to Federal tax benefits. Althoughmanagement intends to aggressively pursue its claims for REIT and RICrefunds for the 2000 to 2003 tax years, no outcome can be predictedwith certainty and an adverse outcome on the refund claims couldresult in a loss of all or a portion of the $23.7 million net statetax receivable after giving effect to Federal tax benefits.

FIRST-HALF RESULTS

First-half 2004 results of $103.1 million, or $2.03 per share,rose from $89.7 million, or $1.80 per share in the first half of 2003attributable to the following:

 - Average deposits grew 13 percent and core deposits went up 17 percent. - Average loans increased by $91.5 million, or 1 percent. Residential first mortgage loans rose 14 percent, commercial real estate mortgage loans rose 5 percent, real estate construction loans rose 9 percent and commercial loans decreased 9 percent partially due to the payoff of dairy loans. - Revenues increased 6 percent attributable to the rise of both net interest income and noninterest income. Noninterest income as a percentage of total revenues was 26 percent for the first half of 2004 compared with 25 percent for the first half of 2003. - No provision for credit losses was recorded on continued strong credit quality. - Noninterest income grew 13 percent from $84.0 million to $94.8 million. This increase is attributable to increased trust and investment fees from higher assets under management or administration and the operations of Convergent Capital Management, LLC ("CCM"). CCM results were included for the entire first half of 2004 while the acquisition affected only the second quarter of 2003. The acquisition was completed on April 1, 2003. - Noninterest expense was up 8 percent from $176.7 million to $190.2 million partly because of the acquisition of CCM. - First-half results included no tax benefits of the company's two REITS. First-half 2003 results included $5.5 million in net income, or $0.11 per share, from tax benefits of the company's two REITS. CREDIT QUALITY

The company made no provision for credit losses in the first halfof 2004. This was attributable to the continued strong credit qualityof its portfolio, low level of net charge-offs, and management'songoing assessment of the credit quality of the portfolio, modest loangrowth and an improving economic environment. Management believes theallowance for credit losses is adequate to cover risks in theportfolio at June 30, 2004.

 At or for the three months At or ended for the three June 30, months % ended % -----------------Dollars in millions Change March Change 31, 2004 2003 2004----------------------------- -------- -------- ------ -------- ------Provision For Credit Losses $- $11.5 (100) $- 0Net Loan Charge-Offs - 10.1 (100) 0.9 (100)Annualized Percentage of Net Charge-offs to Average Loans - % 0.52 % (100) 0.05 % (100)Nonperforming Assets $41.8 $69.6 (40) $42.7 (2)Percentage of Nonaccrual Loans and ORE to Total Loans and ORE 0.51 % 0.92 % (45) 0.54 % (6)Allowance for Credit Losses $165.1 $170.9 (3) $165.1 0Percentage of Allowance for Credit Losses to Outstanding Loans 2.03 % 2.25 % (10) 2.07 % (2)Percentage of Allowance for Credit Losses to Nonaccrual Loans 394.71 246.37 60 386.29 2

At June 30, 2004, approximately 25 percent of the nonperformingassets were loans to Northern California clients, and 25 percent werefive dairy credits. The remaining 50 percent were loans to otherborrowers with no major industry concentrations.

At June 30, 2004, the company's loan portfolio includedapproximately $453.1 million of loans managed in Northern Californiaoffices. In addition, the portfolio included approximately $53.0million in outstanding dairy loans, an industry which as previouslyannounced, the company expects to exit. It is now anticipated that thecompany can do so at minimal cost over the next six months, a shorterperiod than previously anticipated, due to higher milk prices.

OUTLOOK

Management has increased its expectations of the growth of netincome per share for 2004 from approximately 7 to 9 percent toapproximately 8 to 10 percent higher than net income per share for2003. This is based on current economic conditions and the currentoutlook for the remainder of 2004, the 25 basis point increase ininterest rates effective June 30, 2004, and the updated businessindicators below:

 - Average loan growth 4 to 6 percent - Average deposit growth 7 to 10 percent - Net interest margin 4.50 to 4.70 percent - Provision for credit losses $0 million to $10 million - Noninterest income growth 6 to 8 percent - Noninterest expense growth 6 to 8 percent - Effective tax rate 36 to 38 percent CAPITAL LEVELS

Total risk-based capital and Tier 1 risk-based capital ratios atJune 30, 2004 were 14.81 percent and 11.11 percent, compared with theminimum "well capitalized" capital ratios of 10 percent and 6 percent,respectively. The company's Tier 1 leverage ratio at June 30, 2004 was7.69 percent. Total risk-based capital, Tier 1 risk-based capital andthe Tier 1 leverage ratios at March 31, 2004 were 14.43 percent, 10.67percent and 7.61 percent, respectively.

Average shareholders' equity to average assets at June 30, 2004was 9.3 percent compared to 9.5 percent at June 30, 2003 and 9.7percent at March 31, 2004.

Accumulated other comprehensive income was a loss of $38.4 millioncompared to income of $39.8 million and $32.2 million as of June 30,2003 and March 31, 2004, respectively. The decline related primarilyto the impact of the increase in long and medium term interest rateson the securities portfolio during the period. The increase ininterest rates also contributed to the average duration of totalavailable-for-sale securities at June 30, 2004 increasing to 3.8 yearscompared to 3.1 years at March 31, 2004 and 2.3 years at June 30,2003.

STOCK REPURCHASE

The company has authorization to repurchase 1,009,500 of itsoutstanding shares as of June 30, 2004. On March 24, 2004, CityNational Corporation's Board of Directors authorized the repurchase ofone million additional shares of City National Corporation stock,following completion of the company's previous buyback initiatives. OnJanuary 22, 2003, the Board of Directors had authorized aone-million-share stock buyback program. This program was completedduring the first quarter of 2004 with the repurchase of 249,900 sharesat an average cost of $58.23. The average cost for the entireone-million-share buyback program was $46.41 per share. On July 15,2003, the Board of Directors authorized the repurchase of 500,000additional shares of City National Corporation stock, followingcompletion of the company's January 22, 2003 buyback initiative. Underthis plan, 490,500 shares have been repurchased at an average cost of$59.68 per share including 7,400 shares that were repurchased duringthe second quarter of 2004 at an average cost of $59.91 per share,leaving 9,500 shares remaining for repurchase before the initiation ofthe new one-million-share program. The shares purchased under thebuyback programs will be reissued for acquisitions, upon the exerciseof stock options, and for other general corporate purposes. There were1,268,452 treasury shares at June 30, 2004.

CONFERENCE CALL

City National Corporation will host a conference call thisafternoon to discuss results for the second quarter of 2004. The callwill begin at 2:00 p.m. PDT. Analysts and investors may dial in andparticipate in the question/answer session. To access the call, pleasedial (888) 482-0024 and enter pass code 36903977. A listen-only livebroadcast of the call also will be available on the investor relationspage of the company's website at www.cnb.com. There, it will bearchived and available for 12 months.

ABOUT CITY NATIONAL

City National Corporation (NYSE: CYN) is a financial servicescompany with $13.5 billion in total assets. Its wholly ownedsubsidiary, City National Bank, is the second largest independent bankheadquartered in California. As California's Premier Private andBusiness Bank(R), City National provides banking, investment and trustservices through 53 offices, including 12 full-service regionalcenters, in Southern California, the San Francisco Bay Area and NewYork City. The company and its affiliates manage or administer morethan $31 billion of client trust and investment assets.

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

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

Forward-looking statements are based on management's knowledge andbelief as of today and include information concerning the company'spossible or assumed future financial condition, and its results ofoperations, business and earnings outlook. These forward-lookingstatements are subject to risks and uncertainties. A number offactors, some of which are beyond the company's ability to control orpredict, could cause future results to differ materially from thosecontemplated by such forward-looking statements. These factors include(1) the unknown economic impact of state, county and city budgetissues, (2) changes in interest rates, (3) significant changes inbanking laws or regulations, (4) increased competition in thecompany's market, (5) other-than-expected credit losses, (6)earthquake or other natural disasters impacting the condition of realestate collateral, (7) the effect of acquisitions and integration ofacquired businesses, and (8) the impact of changes in regulatory,judicial, or legislative tax treatment of business transactions,particularly California tax legislation enacted last year and theDecember 31, 2003 announcement by the FTB regarding the taxation ofREITs and RICs. Management cannot predict at this time the extent ofthe economic recovery, and a slowing or reversal could adverselyaffect our performance in a number of ways including decreased demandfor our products and services and increased credit losses. Likewise,changes in deposit interest rates, among other things, could slow therate of growth or put pressure on current deposit levels.Forward-looking statements speak only as of the date they are made,and the company 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 company's Quarterly Report on Form 10-Q for the year-endedMarch 31, 2004, 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."

Conference CallToday 2:00 p.m. PDT(888) 482-0024Pass code 36903977CITY NATIONAL CORPORATION----------------------------------------------------------------------CONSOLIDATED BALANCE SHEET (unaudited)(Dollars in thousands, except per share amount)---------------------------------------------------------------------- June 30, March 31, ----------------------------------- 2004 2003 % Change 2004 ------------ ------------ --------- ------------Assets Cash and due from banks $485,208 $451,291 8 $472,541 Federal funds sold 595,000 650,000 (8) 519,000 Due from banks - interest bearing 76,890 30,402 153 34,570 Securities 3,547,650 3,050,319 16 3,651,722 Loans (net of allowance for credit losses of $165,117; $170,927 and $165,072) 7,960,379 7,419,299 7 7,802,567 Other assets 808,773 753,522 7 740,124 ------------ ------------ ------------ Total assets $13,473,900 $12,354,833 9 $13,220,524 ============ ============ ============Liabilities and Shareholders' Equity Noninterest-bearing deposits $5,809,241 $4,916,678 18 $5,525,627 Interest-bearing deposits 5,645,678 5,250,128 8 5,609,050 ------------ ------------ ------------ Total deposits 11,454,919 10,166,806 13 11,134,677 Federal funds purchased and securities sold under repurchase agreements 94,898 167,084 (43) 88,063 Other short-term borrowed funds 50,125 115,125 (56) 50,125 Subordinated debt 286,896 318,282 (10) 300,758 Other long-term debt 224,488 283,954 (21) 239,804 Other liabilities / minority interest 134,765 158,892 (15) 167,167 ------------ ------------ ------------ Total liabilities 12,246,091 11,210,143 9 11,980,594 Shareholders' equity Common stock, paid-in capital, retained earnings, treasury shares and deferred equity compensation 1,266,227 1,104,909 15 1,207,693 Accumulated other comprehensive income (loss) (38,418) 39,781 N/M 32,237 ------------ ------------ ------------ Total shareholders' equity 1,227,809 1,144,690 7 1,239,930 ------------ ------------ ------------ Total liabilities and shareholders' equity $13,473,900 $12,354,833 9 $13,220,524 ============ ============ ============ Book value per share $25.05 $23.77 5 $25.54 Number of shares at period end 49,015,117 48,156,797 2 48,553,409CONSOLIDATED STATEMENT OF INCOME (unaudited)(Dollars in thousands, except per share amount)---------------------------------------------------------------------- For the three months ended June 30, --------------------------------- 2004 2003 % Change ----------- ----------- ---------Interest income $145,178 $144,333 1Interest expense (12,903) (17,209) (25) ----------- -----------Net interest income 132,275 127,124 4Provision for credit losses - (11,500) (100) ----------- -----------Net interest income after provision for credit losses 132,275 115,624 14Noninterest income 48,266 45,052 7Noninterest expense (95,655) (91,316) 5Minority interest (1,306) (1,065) 23 ----------- -----------Income before taxes 83,580 68,295 22Income taxes (31,380) (22,214) 41 ----------- -----------Net income $52,200 $46,081 13 =========== ===========Net income per share, basic $1.07 $0.95 13 =========== ===========Net income per share, diluted $1.03 $0.93 11 =========== ===========Dividends paid per share $0.320 $0.205 56 =========== ===========Shares used to compute per share net income, basic 48,795,998 48,307,675Shares used to compute per share net income, diluted 50,924,581 49,524,367 For the six months ended June 30, --------------------------------- 2004 2003 % Change ----------- ----------- ---------Interest income $288,975 $290,009 -Interest expense (25,728) (34,668) (26) ----------- -----------Net interest income 263,247 255,341 3Provision for credit losses - (29,000) (100) ----------- -----------Net interest income after provision for credit losses 263,247 226,341 16Noninterest income 94,836 84,028 13Noninterest expense (190,186) (176,728) 8Minority interest (2,906) (1,540) 89 ----------- -----------Income before taxes 164,991 132,101 25Income taxes (61,893) (42,365) 46 ----------- -----------Net income $103,098 $89,736 15 =========== ===========Net income per share, basic $2.11 $1.85 14 =========== ===========Net income per share, diluted $2.03 $1.80 13 =========== ===========Dividends paid per share $0.640 $0.410 56 =========== ===========Shares used to compute per share net income, basic 48,763,761 48,543,331Shares used to compute per share net income, diluted 50,863,824 49,824,223CITY NATIONAL CORPORATION----------------------------------------------------------------------SELECTED FINANCIAL INFORMATION (unaudited) (Dollars in thousands)----------------------------------------------------------------------Period end June 30, March 31, ----------------------------------- 2004 2003 % Change 2004 ------------ ------------ --------- ------------Loans Commercial $3,077,689 $3,232,780 (5) $3,163,312 Residential first mortgage 2,114,335 1,736,442 22 1,977,952 Commercial real estate mortgage 2,057,489 1,895,964 9 2,004,860 Real estate construction 782,435 653,063 20 741,637 Installment 93,548 71,977 30 79,878 ------------ ------------ ------------ Total loans $8,125,496 $7,590,226 7 $7,967,639 ============ ============ ============Deposits Noninterest-bearing $5,809,241 $4,916,678 18 $5,525,627 Interest-bearing, core 4,854,545 4,251,204 14 4,760,018 ------------ ------------ ------------ Total core deposits 10,663,786 9,167,882 16 10,285,645 Time deposits - $100,000 and over 791,133 998,924 (21) 849,032 ------------ ------------ ------------ Total deposits $11,454,919 $10,166,806 13 $11,134,677 ============ ============ ============Credit Quality Nonaccrual loans and ORE Nonaccrual loans $41,833 $69,377 (40) $42,733 ORE - 173 (100) - ------------ ------------ ------------ Total nonaccrual loans and ORE $41,833 $69,550 (40) $42,733 ============ ============ ============ Total nonaccrual loans and ORE to total loans and ORE 0.51 0.92 (45) 0.54 Loans past due 90 days or more on accrual status $153 $5,853 (97) $5,057 ============ ============ ============ For the three months ended For the six months endedAllowance for June 30, June 30, Credit Losses ---------------------------- ---------------------------- % % 2004 2003 Change 2004 2003 Change --------- --------- -------- --------- --------- --------Beginning balance $165,072 $169,480 (3) $165,986 $164,502 1 Provision for credit losses - 11,500 (100) - 29,000 (100) Charge-offs (9,600) (14,211) (32) (13,949) (29,093) (52) Recoveries 9,645 4,158 132 13,080 6,518 101 --------- --------- --------- --------- Net (charge- offs) / recoveries 45 (10,053) (100) (869) (22,575) (96) --------- --------- --------- ---------Ending Balance $165,117 $170,927 (3) $165,117 $170,927 (3) ========= ========= ========= =========Total net charge-offs to average loans (annualized) 0.00 (0.52) (100) (0.02) (0.58) (97)Allowance for credit losses to total loans 2.03 2.25 (10)Allowance for credit losses to nonaccrual loans 394.71 246.37 60 For the three months For the six months ended ended June 30, June 30, --------------------- --------------------- 2004 2003 % Change 2004 2003 % Change ----- ----- --------- ----- ----- ---------Yields and Rates for the Period Loans 5.37 %5.80 % (7) 5.42 %5.89 % (8) Securities 4.44 4.82 (8) 4.51 5.03 (10) Interest-earning assets 4.92 5.42 (9) 5.01 5.58 (10) Interest-bearing deposits0.70 0.96 (27) 0.70 1.01 (31) Other borrowings 1.91 2.40 (20) 1.94 2.31 (16) Total interest bearing liabilites 0.81 1.13 (28) 0.82 1.16 (29) Net interest margin 4.49 4.79 (6) 4.57 4.93 (7)CITY NATIONAL CORPORATION----------------------------------------------------------------------SELECTED FINANCIAL INFORMATION (unaudited) (Dollars in thousands)---------------------------------------------------------------------- For the three months ended June 30, -------------------------------- % 2004 2003 Change ----------- ----------- --------Average BalancesLoans Commercial $3,130,129 $3,402,342 (8) Residential first mortgage 2,036,426 1,733,015 18 Commercial real estate mortgage 2,016,773 1,906,995 6 Real estate construction 779,349 679,541 15 Installment 91,239 71,970 27 ----------- ----------- Total loans $8,053,916 $7,793,863 3 =========== ===========Securities $3,600,997 $2,873,831 25Due from banks - interest bearing 42,961 26,954 59Interest-earning assets 12,137,276 10,941,207 11Assets 13,211,551 11,914,869 11Core deposits 10,310,711 8,763,055 18Deposits 11,121,541 9,774,905 14Shareholders' equity 1,230,167 1,131,682 9Noninterest income Trust and investment fees $16,664 $12,192 37 Brokerage and mutual fund fees 9,367 9,313 1 Cash management and deposit transaction fees 10,942 10,876 1 International services 5,042 5,019 - Bank owned life insurance 715 731 (2) Other 4,665 5,649 (17) ----------- ----------- Subtotal - core 47,395 43,780 8 Gain on sale of loans and assets/debt repurchase - - NM Gain on sale of securities 871 1,272 (32) ----------- ----------- Total $48,266 $45,052 7 =========== ===========Total revenue $180,541 $172,176 5 =========== ===========Noninterest expense Salaries and employee benefits $59,306 $54,516 9 ----------- ----------- All Other Net occupancy of premises 7,649 7,862 (3) Professional 6,730 6,769 (1) Information services 4,588 4,302 7 Depreciation 3,274 3,019 8 Marketing and advertising 3,812 3,553 7 Office services 2,487 2,398 4 Amortization of intangibles 1,760 2,227 (21) Equipment 636 638 - Other operating 5,413 6,032 (10) ----------- ----------- Total all other 36,349 36,800 (1) ----------- ----------- Total $95,655 $91,316 5 =========== ===========Selected Ratios For the Period Return on average assets 1.59 % 1.55 % 3 Return on average shareholders' equity 17.07 16.33 5 Efficiency ratio (1) 52.72 52.53 - Dividend payout ratio 30.06 21.51 40 For the six months ended June 30, -------------------------------- % 2004 2003 Change ----------- ----------- --------Average BalancesLoans Commercial $3,151,138 $3,480,938 (9) Residential first mortgage 1,994,365 1,744,861 14 Commercial real estate mortgage 2,009,253 1,907,770 5 Real estate construction 728,914 671,791 9 Installment 86,453 73,267 18 ----------- ----------- Total loans $7,970,123 $7,878,627 1 =========== ===========Securities $3,531,772 $2,645,670 33Due from banks - interest bearing 60,655 26,891 126Interest-earning assets 11,869,575 10,741,276 11Assets 12,909,151 11,698,948 10Core deposits 9,965,935 8,545,977 17Deposits 10,827,508 9,575,481 13Shareholders' equity 1,226,092 1,124,667 9Noninterest income Trust and investment fees $32,252 $18,730 72 Brokerage and mutual fund fees $18,093 $18,255 (1) Cash management and deposit transaction fees 22,040 21,983 - International services 10,168 9,347 9 Bank owned life insurance 1,546 1,445 7 Other 9,237 11,664 (21) ----------- ----------- Subtotal - core 93,336 81,424 15 Gain on sale of loans and assets/debt repurchase - 102 (100) Gain on sale of securities 1,500 2,502 (40) ----------- ----------- Total $94,836 $84,028 13 =========== ===========Total revenue $358,083 $339,369 6 =========== ===========Noninterest expense Salaries and employee benefits $118,982 $106,321 12 ----------- ----------- All Other Net occupancy of premises 14,957 14,831 1 Professional 12,836 13,205 (3) Information services 9,110 8,555 6 Depreciation 6,502 6,138 6 Marketing and advertising 7,319 6,665 10 Office services 4,906 4,968 (1) Amortization of intangibles 3,519 4,203 (16) Equipment 1,401 1,304 7 Other operating 10,654 10,538 1 ----------- ----------- Total all other 71,204 70,407 1 ----------- ----------- Total $190,186 $176,728 8 =========== ===========Selected Ratios For the Period Return on average assets 1.61 % 1.55 % 4 Return on average shareholders' equity 16.91 16.09 5 Efficiency ratio (1) 53.05 51.42 3 Dividend payout ratio 30.38 22.19 37 Period End Tier 1 risk-based capital ratio 11.11 10.21 9 Total risk-based capital ratio 14.81 14.45 2 Tier 1 leverage ratio 7.69 7.17 7(1) The efficiency ratio is defined as noninterest expense excluding ORE expense divided by total revenue (net interest income on a tax- equivalent basis and noninterest income).

CONTACT: City National Corporation
Financial/Investors:
Christopher Carey, 310-888-6777
Stephen McAvoy, 213-347-2653
Media:
Cary Walker, 213-833-4715

SOURCE: City National Corporation