EXHIBIT 99.1
City National Corp.'s Second-Quarter 2007 Net Income Grows to $59.2 Million; Earnings Per Share Rise 3 Percent to $1.19
Assets Under Management or Administration Exceed $57 Billion for the First Time
LOS ANGELES, July 18, 2007 (PRIME NEWSWIRE) -- City National Corporation (NYSE:CYN), the parent company of wholly owned City National Bank, today reported second-quarter 2007 net income of $59.2 million, or $1.19 per share, up from $58.7 million, or $1.16 per share, for the second quarter of 2006.
Year to date, City National has earned $115.7 million, or $2.34 per share, on revenue of $440.1 million. In the first half of 2006, the company earned net income of $116 million, or $2.28 per share, on revenue of $419.9 million.
City National's second-quarter financial results reflect the company's May 1, 2007 acquisition of Convergent Wealth Advisors (formerly known as Lydian Wealth Management) and its February 28, 2007 acquisition of Business Bank of Nevada.
SECOND-QUARTER HIGHLIGHTS * City National's second-quarter average loan balances grew to a record $11 billion, up 11 percent from the second quarter of 2006. * Average deposits reached a record $12.6 billion, up 5 percent from the second quarter of 2006. * Noninterest income grew to $73.7 million, a 26 percent increase from the second quarter of 2006, and now accounts for 33 percent of City National's total revenue. * Assets under direct management amounted to $35.8 billion, a 35 percent increase from the second quarter of 2006. Assets under management or administration grew 22 percent to $57.3 billion. * Credit quality remained strong in the second quarter of 2007. The company required no provision for credit losses and remained adequately reserved at 1.43 percent of total loans. * City National's second-quarter return on average equity was 14.79 percent and its return on average assets was 1.54 percent.
"City National achieved solid second-quarter results in a challenging environment," said President and Chief Executive Officer Russell Goldsmith. "Loans and deposits both grew to record levels, credit quality remained strong, noninterest income continued to grow at very robust double-digit rates and actual expense growth was constrained.
"The company also made a number of important investments during the first half of 2007. The acquisition of Convergent Wealth Advisors, an outstanding investment advisory firm for the ultra-affluent market, helped raise City National's assets under management or administration to more than $57 billion for the first time. We also successfully integrated Business Bank of Nevada, adding eight new Nevada offices and rolling out the City National brand in one of America's most dynamic states. In addition, our company expanded its presence in fast-growing Ontario, California by opening a new banking office there."
For the three
months ended For the three
June 30, months ended
Dollars in millions, -------------------- % March 31, %
except per share 2007 2006 Change 2007 Change
------------------- --------- --------- ------ --------- ------
Earnings Per
Share $ 1.19 $ 1.16 3 $ 1.15 3
Net Income 59.2 58.7 1 56.5 5
Average Assets 15,452.6 14,782.5 5 14,836.4 4
Return on Average
Assets 1.54% 1.59% (3) 1.55% (1)
Return on Average
Equity 14.79 16.20 (9) 15.10 (2)
ASSETS
Total assets at June 30, 2007 were $15.8 billion, up 9 percent from one year ago, primarily due to City National's loan growth as well as the acquisition of Business Bank of Nevada. Total assets grew 3 percent from the first quarter of 2007.
REVENUE
Second-quarter revenue totaled $226.8 million, up 7 percent from the second quarter of 2006 and 6 percent from the first quarter of this year, due principally to the acquisition of Business Bank of Nevada.
NET INTEREST INCOME
Fully taxable-equivalent net interest income reached $157.3 million in the second quarter of 2007, compared with $157.9 million for the same period last year. Fully taxable-equivalent net interest income in the first quarter of 2007 was $151.3 million.
Average loan balances reached $11 billion, up 11 percent from one year ago and 4 percent from the first quarter of 2007.
Lending grew across the board: * Commercial loans increased 9 percent from the second quarter of 2006 and 3 percent from the first quarter of this year. * Single-family residential mortgage lending rose 9 percent from one year ago and 3 percent from the first quarter of 2007. (City National's $3 billion residential portfolio contains no subprime credits or option-only adjustable rate loans. The company makes mortgage loans as an accommodation to its private banking clients. These loans have an average loan-to-value ratio of 51 percent.) * Commercial real estate and construction loans together were up 18 percent from the second quarter of 2006 and 8 percent from the first quarter of this year.
At June 30, 2007, the bank's prime rate was 8.25 percent, unchanged from both June 30, 2006 and March 31, 2007.
For the three
months ended For the three
June 30, months ended
-------------------- % March 31, %
Dollars in millions, 2007 2006 Change 2007 Change
------------------- ---------- ---------- ------ ---------- ------
Average Loans $ 11,010.9 $ 9,902.9 11 $ 10,554.9 4
Average Total
Securities 2,945.1 3,581.2 (18) 2,971.4 (1)
Average Earning
Assets 14,129.5 13,627.7 4 13,660.7 3
Average Deposits 12,569.9 11,930.8 5 11,916.3 5
Average Core
Deposits 10,503.4 10,278.7 2 10,044.8 5
Fully Taxable-
Equivalent
Net Interest Income 157.3 157.9 (0) 151.3 4
Net Interest Margin 4.47% 4.65% (4) 4.49% (0)
City National's second-quarter net interest margin was 4.47 percent, compared with 4.49 percent in the first quarter of 2007. The company's all-cash acquisition of Convergent Wealth Advisors narrowed its second-quarter margin by two basis points.
Average deposits totaled $12.6 billion, an increase of 5 percent from both the second quarter of 2006 and the first quarter of this year. The increases were due primarily to the acquisition of Business Bank of Nevada as well as the growth of interest-bearing and time deposits.
Average noninterest-bearing deposits fell 5 percent from the second quarter of 2006. However, noninterest-bearing balances grew 1 percent from the first quarter of this year, due to the full second-quarter impact of City National's acquisition of Business Bank of Nevada and the seasonal increase in deposits that clients used to make their tax payments.
Second-quarter title and escrow deposit balances averaged $1.3 billion, compared with $1.3 billion in the second quarter of 2006 and $1.2 billion in the first quarter of this year.
Average securities totaled $2.9 billion in the second quarter of 2007, down $636 million from one year ago and $26 million from the first quarter of 2007. The average duration of total available-for-sale securities at June 30, 2007 was 3.3 years, compared with 3.5 years at the end of the second quarter of 2006.
NONINTEREST INCOME
Noninterest income reached $73.7 million in the second quarter, a 26 percent increase from the same period one year ago. Excluding the acquisitions of Convergent Wealth Advisors and Independence Investments, which closed on May 31, 2006, second-quarter noninterest income grew 10 percent from the same period last year.
At June 30, 2007, noninterest income accounted for 33 percent of City National's total revenue, up from 28 percent at June 30, 2006.
Wealth Management
City National's assets under management or administration grew to $57.3 billion in the second quarter. As a result, trust and investment fees increased 40 percent over the same time last year. Second-quarter brokerage and mutual fund fees grew 14 percent from the second quarter of 2006.
On May 1, 2007, City National completed its acquisition of Convergent Wealth Advisors, a Rockville, Md.-based firm that now manages or advises on assets of $8.2 billion through its wealth management consulting services for individuals and families with average assets of more than $40 million.
Other Noninterest Income
Fee income from international banking services grew 10 percent from the second quarter of 2006 and 17 percent from the first quarter of this year, reflecting increased demand for foreign exchange services and letters of credit.
Income from cash management and deposit transaction fees rose 10 percent from the second quarter of last year, due largely to the sale of additional services. This income was unchanged from the first quarter of 2007.
At or for the At or for the
three months ended three months
June 30, ended
-------------------- % March 31, %
Dollars in millions, 2007 2006 Change 2007 Change
------------------- ---------- ---------- ------ ---------- ------
Trust and
Investment Fee
Revenue $ 34.8 $ 24.9 40 $ 30.3 15
Brokerage and
Mutual Fund Fees 14.0 12.3 14 13.8 1
Assets Under
Management (a) 35,849.9 26,617.3 35 27,074.4 32
Total Assets Under
Management
or Administration
(a) 57,328.6 46,963.4 22 48,432.6 18
(a) Excludes $10.5 billion, $9.3 billion, and $9.3 billion of assets
under management for an asset manager in which City National
held a minority ownership interest as of June 30, 2007, June 30,
2006, and March 31, 2007, respectively.
NONINTEREST EXPENSE
Second-quarter 2007 noninterest expense amounted to $132.9 million, up 11 percent from the second quarter of 2006 and 7 percent from the first quarter of this year. Excluding the acquisitions of Convergent Wealth Advisors, Independence Investments and Business Bank of Nevada, noninterest expense grew 2 percent from the second quarter of last year.
City National's efficiency ratio for the second quarter of 2007 was 57.73 percent, compared with 55.20 percent one year ago and 57.18 percent for the first quarter of this year. The year-over-year increase was due primarily to pressure on core deposits and the continued expansion of City National's fee-based businesses, including the addition of Convergent Wealth Advisors and Independence Investments.
CREDIT QUALITY
Asset quality remains strong. At June 30, 2007, nonaccrual loans were $22.3 million, compared with $15 million at the same time last year and $23.4 million in the first quarter of 2007. Net loan charge-offs were $2.3 million in the second quarter of 2007, compared with net recoveries of $1.2 million in both the second quarter of 2006 and the first quarter of this year.
City National made no provision for credit losses in the second quarter. The company's loan-loss allowance methodology takes into account many quantitative and qualitative factors, including asset quality, credit risk, loan growth and economic conditions. At June 30, 2007, the allowance for loan and lease losses was $157.8 million, or 1.43 percent of total loans.
INCOME TAXES
The company's second-quarter 2007 effective tax rate was 37 percent, compared with 37.5 percent in the second quarter of last year. The effective rate for the first quarter of this year was 36.8 percent.
2007 OUTLOOK
In light of its second-quarter performance, City National's management continues to expect earnings per share this year to grow at a rate of between 3 percent and 5 percent as compared with 2006.
CAPITAL LEVELS
City National remains well capitalized. Total risk-based capital and Tier 1 risk-based capital ratios at June 30, 2007 were 12.28 percent and 9.82 percent, respectively, compared with the minimum regulatory standards of 10 percent and 6 percent for "well-capitalized" institutions. City National's Tier 1 leverage ratio at June 30, 2007 was 7.97 percent, well above the regulatory minimum ratio of 5 percent.
Total risk-based capital, Tier 1 risk-based capital and the Tier 1 leverage ratios at March 31, 2007 were 13.12 percent, 10.62 percent and 8.59 percent, respectively.
The period-end ratio of shareholders' equity to total assets at June 30, 2007 was 10.26 percent, compared to 9.66 percent at the same time last year, and 10.42 percent at March 31, 2007.
City National adopted FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48), as of January 1, 2007. As a result of the implementation of FIN 48, the company recognized a $28 million increase in the reserve for contingent tax liabilities, which was accounted for as a reduction to the January 1, 2007 balance of retained earnings.
STOCK REPURCHASE
During the second quarter of 2007, City National repurchased 16,500 of its outstanding shares at an average cost per share of $74.74. During the first two quarters of this year, it bought back 279,500 shares at an average cost of $72.27. The company is currently authorized and intends to repurchase an additional 778,200 shares, subject to market conditions.
CONFERENCE CALL
City National Corporation will host a conference call this afternoon to discuss results for the second quarter of 2007. The call will begin at 2:00 p.m. PDT. Analysts and investors may dial in and participate in the question/answer session. To access the call, please dial (866) 713-8395 and enter pass code 30224089. A listen-only live broadcast of the call also will be available on the investor relations page of the company's Website at www.cnb.com. There, it will be archived and available for 12 months.
ABOUT CITY NATIONAL
City National Corporation's wholly owned subsidiary, City National Bank, provides banking, investment and trust services through 62 offices, including 15 full-service regional centers, in Southern California, the San Francisco Bay Area, Nevada and New York City. The company and its nine investment affiliates manage or administer $57.3 billion in client assets, including $35.8 billion under direct management.
For more information about City National, visit the company's Website at www.cnb.com.
SAFE-HARBOR LANGUAGE
This news release contains forward-looking statements about the company, for which the company claims the protection of the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are based on management's knowledge and belief as of today and include information concerning the company's possible or assumed future financial condition, and its results of operations, business and earnings outlook. These forward-looking statements are subject to risks and uncertainties. A number of factors, some of which are beyond the company's ability to control or predict, could cause future results to differ materially from those contemplated by such forward-looking statements. These factors include (1) changes in interest rates, (2) significant changes in banking laws or regulations, (3) increased competition in the company's markets, (4) other-than-expected credit losses due to business losses, real estate cycles or other economic events, (5) earthquake or other natural disasters affecting the condition of real estate collateral, (6) the effect of acquisitions and integration of acquired businesses and de novo branching efforts, (7) the impact of changes in regulatory, jud icial or legislative tax treatment of business transactions, (8) changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies, and (9) general business and economic conditions, including movements in interest rates, the slope of the yield curve and changes in business formation and growth, commercial real estate development and real estate prices.
Forward-looking statements speak only as of the date they are made, and the company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the statements are made, or to update earnings guidance, including the factors that influence earnings.
For a more complete discussion of these risks and uncertainties, see the company's Annual Report on Form 10-K for the year ended December 31, 2006 and particularly Part I, Item 1A, titled "Risk Factors."
CITY NATIONAL CORPORATION
FINANCIAL HIGHLIGHTS
(unaudited)
Three Months
-----------------------------
For The Period Ended June 30, 2007 2006 % Change
------------------------------------ -----------------------------
Per Common Share
Net Income
Basic $ 1.22 $ 1.20 2
Diluted 1.19 1.16 3
Dividends 0.46 0.41 12
Book value
Results of Operations: (In millions)
Interest income $ 226 $ 206 10
Interest expense 73 52 40
------- -------
Net interest income 153 154 (1)
Net interest income (Fully
taxable-equivalent) 157 158 --
Total revenue 227 213 7
Provision for credit losses -- (1) (100)
Net income 59 59 1
Financial Ratios:
Performance Ratios:
Return on average assets 1.54% 1.59%
Return on average
shareholders' equity 14.79 16.20
Period-end shareholders' equity
to period-end assets -- --
Net interest margin 4.47 4.65
Efficiency ratio 57.73 55.20
Asset Quality Ratios:
Net (charge-offs)/recoveries to
Average total loans (annualized) (0.08)% 0.05%
Average Balances: (In millions)
Loans $11,011 $ 9,903 11
Interest-earning assets 14,129 13,627 4
Assets 15,453 14,782 5
Core deposits 10,503 10,279 2
Deposits 12,570 11,931 5
Interest-bearing liabilities 8,112 7,309 11
Shareholders' equity 1,604 1,454 10
Six Months
-----------------------------
2007 2006 % Change
-----------------------------
Per Common Share
Net Income
Basic $ 2.39 $ 2.36 1
Diluted 2.34 2.28 3
Dividends 0.92 0.82 12
Book value 33.27 29.05 15
Results of Operations: (In millions)
Interest income $ 440 $ 404 9
Interest expense 140 98 43
-------- --------
Net interest income 300 306 (2)
Net interest income (Fully
taxable-equivalent) 309 314 (2)
Total revenue 440 420 5
Provision for credit losses -- (1) (100)
Net income 116 116 --
Financial Ratios:
Performance Ratios:
Return on average assets 1.54% 1.58%
Return on average shareholders'
equity 14.94 15.94
Period-end shareholders' equity to
period-end assets 10.26 9.66
Net interest margin 4.48 4.64
Efficiency ratio 57.46 55.00
Capital Adequacy Ratios (Period end):
Tier 1 leverage 7.97 8.38
Tier 1 risk-based capital 9.82 11.20
Total risk-based capital 12.28 14.26
Asset Quality Ratios:
Allowance for loan and lease losses to:
Total loans 1.43% 1.60%
Nonaccrual loans 707.58 1,050.47
Nonperforming assets to:
Total loans and nonperforming assets 0.20 0.15
Total assets 0.14 0.10
Net (charge-offs)/recoveries to
Average total loans (annualized) (0.02)% 0.08%
Average Balances: (In millions)
Loans $10,784 $ 9,765 10
Interest-earning assets 13,896 13,663 2
Assets 15,146 14,804 2
Core deposits 10,275 10,306 --
Deposits 12,245 11,760 4
Interest-bearing liabilities 7,861 7,338 7
Shareholders' equity 1,562 1,467 6
Period-End Balances: (In millions)
Loans 11,019 $ 9,822 12
Assets 15,796 14,476 9
Core deposits 10,836 10,152 7
Deposits 13,130 11,979 10
Shareholders' equity 1,621 1,398 16
Wealth Management: (In millions) (a)
Assets under management 35,850 $ 26,617 35
Assets under management or
administration 57,329 46,963 22
(a) Excludes $10.5 billion and $9.3 billion of assets under
management for an asset manager in which City National held a
minority ownership interest as of June 30, 2007 and June 30,
2006, respectively.
CITY NATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three Months Ended
June 30,
(Dollars in thousands ------------------------------
except per share data) 2007 2006 % Change
-------------------------------------- ------------------------------
Interest income $225,985 $206,204 10
Interest expense 72,921 52,206 40
-------- --------
Net Interest Income 153,064 153,998 (1)
Provision for Credit Losses -- (610) (100)
Noninterest Income
Trust and investment fees 34,823 24,909 40
Brokerage and mutual fund fees 13,958 12,269 14
Cash management and
deposit transaction fees 8,472 7,691 10
International services 7,562 6,870 10
Bank-owned life insurance 761 677 12
Other service charges and fees 7,307 6,888 6
Loss on sale of loans and
other assets -- -- NM
Gain (loss) on sale of securities 866 (716) (221)
-------- --------
Total noninterest income 73,749 58,588 26
Noninterest Expense
Salaries and employee benefits 80,904 73,718 10
Net occupancy of premises 10,362 9,460 10
Legal and professional fees 9,318 9,190 1
Information services 5,243 4,571 15
Depreciation 5,122 4,662 10
Amortization of intangibles 2,623 1,974 33
Marketing and advertising 5,783 4,990 16
Office services 2,938 2,549 15
Equipment 797 623 28
Minority interest expense 2,325 1,213 92
Other 7,446 6,222 20
-------- --------
Total noninterest expense 132,861 119,172 11
-------- --------
Income Before Taxes 93,952 94,024 (0)
Applicable Income Taxes 34,799 35,283 (1)
-------- --------
Net Income $ 59,153 $ 58,741 1
======== ========
Other Data:
Earnings per common share - basic $ 1.22 $ 1.20 2
Earnings per common share - diluted $ 1.19 $ 1.16 3
Dividends paid per common share $ 0.46 $ 0.41 12
Dividend payout ratio 38.22% 34.43% 11
Return on average assets 1.54% 1.59% (4)
Return on average shareholders'
equity 14.79% 16.20% (9)
Net interest margin (Fully
taxable-equivalent) 4.47% 4.65% (4)
Full-time equivalent employees 2,903 2,648 10
Six Months Ended
June 30,
------------------------------
2007 2006 % Change
------------------------------------- ------------------------------
Interest income $440,249 $404,396 9
Interest expense 139,893 97,992 43
-------- --------
Net Interest Income 300,356 306,404 (2)
Provision for Credit Losses -- (610) (100)
Noninterest Income
Trust and investment fees 65,077 46,683 39
Brokerage and mutual fund fees 27,738 23,953 16
Cash management and
deposit transaction fees 16,943 15,755 8
International services 14,025 12,859 9
Bank-owned life insurance 1,385 1,611 (14)
Other service charges and fees 13,467 12,665 6
Loss on sale of loans and
other assets (46) -- NM
Gain (loss) on sale of securities 1,135 (8) NM
-------- --------
Total noninterest income 139,724 113,518 23
Noninterest Expense
Salaries and employee benefits 158,888 145,334 9
Net occupancy of premises 19,820 18,472 7
Legal and professional fees 18,641 18,662 (0)
Information services 10,242 9,027 13
Depreciation 10,122 9,322 9
Amortization of intangibles 4,253 3,865 10
Marketing and advertising 9,781 9,006 9
Office services 5,685 5,240 8
Equipment 1,515 1,255 21
Minority interest expense 4,401 2,441 80
Other 13,352 11,871 12
-------- --------
Total noninterest expense 256,700 234,495 9
-------- --------
Income Before Taxes 183,380 186,037 (1)
Applicable Income Taxes 67,682 70,063 (3)
-------- --------
Net Income $115,698 $115,974 (0)
======== ========
Other Data:
Earnings per common share - basic $ 2.39 $ 2.36 1
Earnings per common share - diluted $ 2.34 $ 2.28 3
Dividends paid per common share $ 0.92 $ 0.82 12
Dividend payout ratio 38.65% 35.03% 10
Return on average assets 1.54% 1.58% (2)
Return on average shareholders'
equity 14.94% 15.94% (6)
Net interest margin (Fully
taxable-equivalent) 4.48% 4.64% (3)
CITY NATIONAL CORPORATION
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(unaudited)
2007
-----------------------------------
(Dollars in thousands Second First Year to
except per share data) Quarter Quarter Date
--------------------------- --------- --------- ---------
Interest Income $ 225,985 $ 214,264 $ 440,249
Interest Expense 72,921 66,972 139,893
--------- --------- ---------
Net Interest Income 153,064 147,292 300,356
Provision for Credit Losses -- -- --
Noninterest Income
Trust and investment fees 34,823 30,254 65,077
Brokerage and mutual fund
fees 13,958 13,780 27,738
Cash management and
deposit transaction fees 8,472 8,471 16,943
International services 7,562 6,463 14,025
Bank-owned life insurance 761 624 1,385
Other service charges and
fees 7,307 6,160 13,467
Loss on sale of loans and
other assets -- (46) (46)
Gain on sale of securities 866 269 1,135
--------- --------- ---------
Total noninterest income 73,749 65,975 139,724
Noninterest Expense
Salaries and employee
benefits 80,904 77,984 158,888
Net occupancy of premises 10,362 9,458 19,820
Legal and professional
fees 9,318 9,323 18,641
Information services 5,243 4,999 10,242
Depreciation 5,122 5,000 10,122
Amortization of
intangibles 2,623 1,630 4,253
Marketing and advertising 5,783 3,998 9,781
Office services 2,938 2,747 5,685
Equipment 797 718 1,515
Minority interest expense 2,325 2,076 4,401
Other 7,446 5,906 13,352
--------- --------- ---------
Total noninterest
expense 132,861 123,839 256,700
--------- --------- ---------
Income Before Taxes 93,952 89,428 183,380
Applicable Income Taxes 34,799 32,883 67,682
--------- --------- ---------
Net Income $ 59,153 $ 56,545 $ 115,698
========= ========= =========
Other Data:
Earnings per common
share - basic $ 1.22 $ 1.18 $ 2.39
Earnings per common
share - diluted $ 1.19 $ 1.15 $ 2.34
Dividends paid per common
share $ 0.46 $ 0.46 $ 0.92
Dividend payout ratio 38.22% 39.11% 38.65
Return on average assets 1.54% 1.55% 1.54
Return on average
shareholders' equity 14.79% 15.10% 14.94
Net interest margin
(Fully taxable-equivalent) 4.47% 4.49% 4.48
Full-time equivalent
employees 2,903 2,800
CITY NATIONAL CORPORATION
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(unaudited)
(Dollars in 2006
thousands ------------------------------------------------
except per Fourth Third Second First Full
share data) Quarter Quarter Quarter Quarter Year
---------------- -------- -------- -------- -------- --------
Interest Income $213,551 $208,347 $206,204 $198,192 $826,294
Interest Expense 62,788 59,625 52,206 45,786 220,405
-------- -------- -------- -------- --------
Net Interest
Income 150,763 148,722 153,998 152,406 605,889
Provision for
Credit Losses -- -- (610) -- (610)
Noninterest
Income
Trust and
investment
fees 30,777 30,002 24,909 21,774 107,462
Brokerage and
mutual fund
fees 13,309 13,096 12,269 11,684 50,358
Cash management
and deposit
transaction
fees 7,909 7,967 7,691 8,064 31,631
International
services 6,486 6,829 6,870 5,989 26,174
Bank-owned
life insurance 700 685 677 934 2,996
Other service
charges and
fees 6,725 6,303 6,888 5,777 25,693
Gain on sale
of loans and
other assets 2,482 268 -- -- 2,750
Gain (loss) on
sale of
securities (4,130) (362) (716) 708 (4,500)
-------- -------- -------- -------- --------
Total
noninterest
income 64,258 64,788 58,588 54,930 242,564
Noninterest
Expense
Salaries and
employee
benefits 74,499 75,318 73,718 71,616 295,151
Net occupancy
of premises 11,562 10,207 9,460 9,012 40,241
Legal and
professional
fees 10,084 9,157 9,190 9,472 37,903
Information
services 5,138 4,932 4,571 4,456 19,097
Depreciation 4,908 4,832 4,662 4,660 19,062
Amortization
of intangibles 1,456 (37) 1,974 1,891 5,284
Marketing and
advertising 5,153 4,495 4,990 4,016 18,654
Office
services 2,888 2,623 2,549 2,691 10,751
Equipment 1,043 514 623 632 2,812
Minority
interest
expense 1,709 1,808 1,213 1,228 5,958
Other 8,573 6,820 6,222 5,649 27,264
-------- -------- -------- -------- --------
Total
noninterest
expense 127,013 120,669 119,172 115,323 482,177
-------- -------- -------- -------- --------
Income Before
Taxes 88,008 92,841 94,024 92,013 366,886
Applicable
Income Taxes 29,452 33,847 35,283 34,781 133,363
-------- -------- -------- -------- --------
Net Income $ 58,556 $ 58,994 $ 58,741 $ 57,232 $233,523
======== ======== ======== ======== ========
Other Data:
Earnings per
common share
- basic $ 1.23 $ 1.23 $ 1.20 $ 1.16 $ 4.82
Earnings per
common share
- diluted $ 1.19 $ 1.20 $ 1.16 $ 1.12 $ 4.66
Dividends paid
per common
share $ 0.41 $ 0.41 $ 0.41 $ 0.41 $ 1.64
Dividend payout
ratio 33.55% 33.64% 34.43% 35.65% 34.31%
Return on
average assets 1.58% 1.61% 1.59% 1.57% 1.59%
Return on
average
shareholders'
equity 15.77% 16.30% 16.20% 15.68% 15.99%
Net interest
margin (Fully
taxable-
equivalent) 4.51% 4.53% 4.65% 4.62% 4.58%
Full-time
equivalent
employees 2,670 2,672 2,648 2,570
CITY NATIONAL CORPORATION
CONSOLIDATED PERIOD END BALANCE SHEET
(unaudited)
2007
----------------------------
Second First
(In thousands) Quarter Quarter
--------------------------------------- ------------ ------------
Assets
Cash and due from banks $ 513,463 $ 494,231
Federal funds sold 170,000 210,000
Due from banks - interest-bearing 139,539 77,214
Securities-available-for-sale 2,798,538 2,903,546
Trading account securities 117,456 35,981
Loans:
Commercial 4,158,131 4,030,601
Commercial real estate mortgages 1,947,218 1,877,695
Residential mortgages 3,009,546 2,895,516
Real estate construction 1,309,322 1,263,059
Equity lines of credit 409,505 388,279
Installment 185,112 194,448
------------ ------------
Total loans 11,018,834 10,649,598
Allowance for loan and lease losses (157,849) (161,005)
------------ ------------
Net loans 10,860,985 10,488,593
Premises and equipment, net 106,672 103,259
Goodwill and other intangibles 518,918 420,197
Other assets 570,525 531,026
------------ ------------
Total assets $ 15,796,096 $ 15,264,047
============ ============
Liabilities:
Deposits:
Noninterest-bearing $ 5,926,048 $ 5,690,413
Interest-bearing 7,204,357 6,915,968
------------ ------------
Total deposits 13,130,405 12,606,381
Federal funds purchased and securities
sold under repurchase agreements 269,938 310,738
Other short-term borrowed funds 72,818 50,667
Subordinated debt 266,962 270,174
Other long-term debt 219,282 224,079
Minority interest 29,029 28,285
Other liabilities 186,212 183,185
------------ ------------
Total liabilities 14,174,646 13,673,509
Shareholders' Equity
Common stock 50,725 50,803
Additional paid-in capital 419,377 421,990
Retained earnings 1,307,638 1,271,092
Accumulated other
comprehensive loss (50,609) (30,940)
Treasury shares (105,681) (122,407)
----------------------------
Total shareholders' equity 1,621,450 1,590,538
----------------------------
Total liabilities and shareholders'
equity $ 15,796,096 $ 15,264,047
============ ============
CITY NATIONAL CORPORATION
CONSOLIDATED PERIOD END BALANCE SHEET
(unaudited)
2006
--------------------------------------------------
Fourth Third Second First
(In thousands) Quarter Quarter Quarter Quarter
-------------- ----------- ----------- ----------- -----------
Assets
Cash and due
from banks $ 423,114 $ 457,396 $ 467,076 $ 457,156
Federal funds
sold 127,000 3,300 1,900 --
Due from banks
- interest-
bearing 60,940 65,323 50,416 48,890
Securities-
available-for
-sale 2,954,372 3,175,230 3,211,590 3,850,173
Trading account
securities 147,907 116,870 123,418 57,353
Loans:
Commercial 4,084,377 3,782,781 3,738,361 3,698,614
Commercial
real estate
mortgages 1,708,512 1,766,718 1,810,618 1,779,464
Residential
mortgages 2,869,775 2,830,761 2,769,340 2,700,966
Real estate
construction 1,117,559 1,057,397 945,650 860,749
Equity lines
of credit 404,657 384,830 364,312 339,348
Installment 201,125 197,871 193,474 188,262
----------- ----------- ----------- -----------
Total loans 10,386,005 10,020,358 9,821,755 9,567,403
Allowance
for loan
and
lease
losses (155,342) (159,063) (157,580) (156,482)
----------- ----------- ----------- -----------
Net loans 10,230,663 9,861,295 9,664,175 9,410,921
Premises and
equipment, net 94,745 88,582 84,802 84,884
Goodwill and
other
intangibles 287,561 298,471 298,004 283,642
Other assets 558,079 549,152 574,547 545,227
----------- ----------- ----------- -----------
Total assets $14,884,381 $14,615,619 $14,475,928 $14,738,246
=========== =========== =========== ===========
Liabilities:
Deposits:
Noninterest-
bearing $ 6,002,068 $ 5,639,811 $ 5,880,630 $ 5,945,485
Interest-
bearing 6,170,748 6,252,206 6,098,200 5,963,044
----------- ----------- ----------- -----------
Total
deposits 12,172,816 11,892,017 11,978,830 11,908,529
Federal funds
purchased and
securities
sold under
repurchase
agreements 422,903 506,962 234,995 526,920
Other short-term
borrowed funds 97,525 72,426 143,724 151,522
Subordinated
debt 269,848 270,522 266,675 269,785
Other long-term
debt 217,569 217,323 209,864 213,819
Minority
interest 28,425 28,578 27,985 25,225
Other
liabilities 184,380 179,746 215,965 173,056
----------- ----------- ----------- -----------
Total
liabilities 13,393,466 13,167,574 13,078,038 13,268,856
Shareholders Equity
Common stock 50,719 50,729 50,735 50,693
Additional
paid-in
capital 412,248 404,163 402,476 399,974
Retained
earnings 1,264,697 1,225,784 1,186,637 1,148,116
Accumulated
other
comprehensive
loss (41,386) (46,400) (86,931) (73,248)
Treasury shares (195,363) (186,231) (155,027) (56,145)
----------- ----------- ----------- -----------
Total
shareholders'
equity 1,490,915 1,448,045 1,397,890 1,469,390
----------- ----------- ----------- -----------
Total
liabilities
and
shareholders'
equity $14,884,381 $14,615,619 $14,475,928 $14,738,246
=========== =========== =========== ===========
CITY NATIONAL CORPORATION
CREDIT LOSS EXPERIENCE
(unaudited)
2007
------------------------------
Second First Year To
(Dollars in thousands) Quarter Quarter Date
------------------------------------------------ -------- --------
Allowance for Loan and Lease Losses
Balance at beginning of period $161,005 $155,342 $155,342
Allowance of acquired institution -- 4,513 4,513
Net (charge-offs)/recoveries:
Commercial (2,218) 1,247 (971)
Commercial real estate mortgages -- -- --
Residential mortgages -- -- --
Real estate construction 17 18 35
Equity lines of credit -- -- --
Installment (61) (26) (87)
-------- -------- --------
Total net (charge-offs)/recoveries (2,262) 1,239 (1,023)
Provision for credit losses/transfers (894) (89) (983)
-------- -------- --------
Balance at end of period $157,849 $161,005 $157,849
======== ======== ========
Net (Charge-Offs)/Recoveries to
Average Total Loans: (annualized)
Commercial (0.21)% 0.12% (0.05)%
Commercial real estate mortgages 0.00% 0.00% 0.00%
Residential mortgage 0.00% 0.00% 0.00%
Real estate construction 0.01% 0.01% 0.01%
Equity lines of credit 0.00% 0.00% 0.00%
Installment (0.13)% (0.06)% (0.09)%
Total loans (0.08)% 0.05% (0.02)%
Reserve for Off-Balance Sheet
Credit Commitments
Balance at beginning of period $ 17,005 $ 16,424 $ 16,424
Recovery of prior charge-off (67) -- (67)
Reserve of acquired institution -- 492 492
Provision for credit
losses/transfers 894 89 983
-------- -------- --------
Balance at end of period $ 17,832 $ 17,005 $ 17,832
======== ======== ========
2006
------------------------------------------------
(Dollars Fourth Third Second First Full
in thousands) Quarter Quarter Quarter Quarter Year
-------- -------- -------- -------- --------
Allowance for Loan
and Lease Losses
Balance at beginning
of period $159,063 $157,580 $156,482 $153,983 $153,983
Allowance of acquired
institution -- -- -- -- --
Net (charge-offs)/
recoveries:
Commercial (2,665) 1,912 1,122 1,792 2,161
Commercial real
estate mortgages 356 -- 11 844 1,211
Residential mortgages -- -- -- -- --
Real estate
construction (666) 18 17 16 (615)
Equity lines of credit -- (11) -- -- (11)
Installment 26 10 11 4 51
-------- -------- -------- -------- --------
Total net (charge-
offs)/recoveries (2,949) 1,929 1,161 2,656 2,797
Provision for credit
losses/transfers (772) (446) (63) (157) (1,438)
-------- -------- -------- -------- --------
Balance at end
of period $155,342 $159,063 $157,580 $156,482 $155,342
======== ======== ======== ======== ========
Net (Charge-Offs)/
Recoveries to Average
Total Loans:(annualized)
Commercial (0.27)% 0.20% 0.11% 0.19% 0.06%
Commercial real estate
mortgages 0.08% 0.00% 0.00% 0.19% 0.07%
Residential mortgage 0.00% 0.00% 0.00% 0.00% 0.00%
Real estate
construction (0.24)% 0.01% 0.01% 0.01% (0.06)%
Equity lines of
credit 0.00% (0.01)% 0.00% 0.00% (0.00)%
Installment 0.05% 0.02% 0.02% 0.01% 0.03%
Total loans (0.11)% 0.08% 0.05% 0.11% 0.03%
Reserve for Off-Balance
Sheet Credit Commitments
Balance at beginning
of period $ 15,652 $ 15,206 $ 15,753 $ 15,596 $ 15,596
Reserve of acquired
institution -- -- -- -- --
Provision for credit
losses/transfers 772 446 (547) 157 828
-------- -------- -------- -------- --------
Balance at end
of period $ 16,424 $ 15,652 $ 15,206 $ 15,753 $ 16,424
======== ======== ======== ======== ========
CITY NATIONAL CORPORATION
NONPERFORMING ASSETS
(unaudited)
2007
------------------
Second First
(Dollars in thousands) Quarter Quarter
---------------------------------------------- ------- -------
Nonaccrual Loans
Commercial $ 3,998 $ 7,024
Commercial real estate mortgages 4,732 4,783
Residential mortgages 378 --
Real estate construction 12,566 11,199
Equity lines of credit 452 362
Installment 182 49
------- -------
Total nonaccrual loans 22,308 23,417
Other Nonperforming Assets -- --
------- -------
Total nonperforming assets $22,308 $23,417
======= =======
Loans 90 Days or More Past Due
on Accrual Status $ -- $ 199
Allowance for loan and lease losses as a
percentage of:
Nonaccrual loans 707.58% 687.55%
Total nonperforming assets 707.58% 687.55%
Total loans 1.43% 1.51%
Nonaccrual loans as a percentage of total loans 0.20% 0.22%
Nonperforming assets as a percentage of:
Total loans and other nonperforming assets 0.20% 0.22%
Total assets 0.14% 0.15%
2006
---------------------------------------
Fourth Third Second First
(Dollars in thousands) Quarter Quarter Quarter Quarter
---------------------------- --------- --------- --------- ---------
Nonaccrual Loans
Commercial $ 2,977 $ 10,416 $ 6,691 $ 5,642
Commercial real estate
mortgages 4,849 8,094 3,644 923
Residential mortgages -- -- -- --
Real estate construction 12,678 -- 4,617 7,492
Equity lines of credit -- -- -- --
Installment 379 269 49 498
--------- --------- --------- ---------
Total nonaccrual loans 20,883 18,779 15,001 14,555
Other Nonperforming Assets -- -- -- --
--------- --------- --------- ---------
Total nonperforming assets $ 20,883 $ 18,779 $ 15,001 $ 14,555
========= ========= ========= =========
Loans 90 Days or More Past
Due on Accrual Status $ 337 $ 27 $ 18 $ --
Allowance for loan and lease
losses as a percentage of:
Nonaccrual
loans 743.88% 847.03% 1,050.47% 1,075.11%
Total nonperforming assets 743.88% 847.03% 1,050.47% 1,075.11%
Total loans 1.50% 1.59% 1.60% 1.64%
Nonaccrual loans as a
percentage of total loans 0.20% 0.19% 0.15% 0.15%
Nonperforming assets as a
percentage of:
Total loans and other
nonperforming assets 0.20% 0.19% 0.15% 0.15%
Total assets 0.14% 0.13% 0.10% 0.10%
CITY NATIONAL CORPORATION
AVERAGE BALANCES AND RATES
(unaudited)
2007
------------------------------------------------
Second Quarter First Quarter Year to Date
-------------- --------------- ---------------
(Dollars in Average Average Average Average Average Average
millions) Balance Rate Balance Rate Balance Rate
---------------
Assets
Interest-
earning
assets
Loans
Commercial $ 4,275 7.36% $ 4,146 7.25% $ 4,210 7.31%
Commercial
real estate
mortgages 1,932 7.35 1,758 7.38 1,847 7.36
Residential
mortgages 2,975 5.49 2,885 5.40 2,930 5.45
Real estate
construction 1,234 8.88 1,181 8.73 1,207 8.81
Equity lines
of credit 404 7.71 394 7.86 399 7.78
Installment 191 7.51 191 7.64 191 7.57
------- ----- -------- ----- -------- -----
Total loans 11,011 7.04 10,555 6.98 10,784 7.02
Due from
banks -
interest-
bearing 89 3.39 73 2.97 81 3.20
Federal funds
sold and
securities
purchased
under resale
agreements 24 5.27 14 5.36 19 5.30
Securities
available-
for-sale 2,873 4.72 2,917 4.70 2,895 4.71
Trading account
securities 72 5.23 54 6.09 63 5.60
Other interest-
earning assets 60 6.36 48 5.96 54 6.19
------- ----- -------- ----- -------- -----
Total
interest-
earning
assets 14,129 6.54 13,661 6.48 13,896 6.51
Allowance for
loan and lease
losses (162) (157) (160)
Cash and due
from banks 445 422 434
Other assets 1,041 909 976
------- ------- -------
Total assets $15,453 $14,836 $15,146
======= ======= =======
Liabilities and
Shareholders'
Equity
Interest-bearing
deposits
Interest
checking
accounts $ 804 0.56% $ 749 0.48% $ 777 0.52%
Money market
accounts 3,721 3.10 3,419 2.98 3,571 3.04
Savings
deposits 149 0.48 155 0.47 152 0.48
Time deposits
- under
$100,000 274 3.79 232 4.10 253 3.93
Time deposits
- $100,000
and over 2,066 4.81 1,872 4.72 1,969 4.77
------- ----- -------- ----- -------- -----
Total
interest-
bearing
deposits 7,014 3.28 6,427 3.18 6,722 3.23
Federal funds
purchased and
securities
sold under
repurchase
agreements 486 5.11 582 5.27 534 5.19
Other
borrowings 612 6.09 599 6.15 605 6.12
------- ----- -------- ----- -------- -----
Total
interest-
bearing
liabilities 8,112 3.61 7,608 3.57 7,861 3.59
Noninterest-
bearing
deposits 5,556 5,489 5,523
Other
liabilities 181 220 200
Shareholders'
equity 1,604 1,519 1,562
------- ------- -------
Total
liabilities
and
shareholders'
equity $15,453 $14,836 $15,146
======= ======= =======
Net interest
spread 2.93% 2.91% 2.92%
==== ==== ====
Net interest
margin 4.47% 4.49% 4.48%
==== ==== ====
Average prime
rate 8.25% 8.25% 8.25%
==== ==== ====
CITY NATIONAL CORPORATION
AVERAGE BALANCES AND RATES
(unaudited)
2006
-----------------------------------------------------
Fourth Quarter Third Quarter Second Quarter
--------------- --------------- ---------------
(Dollars in Average Average Average
millions) Balance Rate Balance Rate Balance Rate
--------------- ------- ----- ------- ----- -------- ----
Assets
Interest-earning
assets
Loans
Commercial $ 3,955 7.12% $ 3,827 7.05% $ 3,933 6.85%
Commercial real
estate
mortgages 1,759 7.48 1,815 7.45 1,786 7.58
Residential
mortgages 2,852 5.40 2,801 5.38 2,737 5.31
Real estate
construction 1,087 8.94 1,001 8.98 900 8.88
Equity lines of
credit 397 7.86 375 7.91 352 7.63
Installment 195 7.56 194 7.58 195 7.72
------- ------- -------
Total loans 10,245 6.92 10,013 6.88 9,903 6.79
Due from banks
- interest-
bearing 68 2.70 61 2.55 46 2.31
Federal funds
sold and
securities
purchased
under resale
agreements 54 5.28 3 7.13 51 4.77
Securities
available-
for-sale 3,122 4.64 3,191 4.63 3,529 4.55
Trading account
securities 49 5.32 54 5.22 52 6.61
Other interest-
earning assets 47 5.64 46 5.45 46 5.40
------- ------- -------
Total
interest-
earning
assets 13,585 6.35 13,368 6.30 13,627 6.18
Allowance for
loan and lease
losses (159) (158) (157)
Cash and due
from banks 407 428 443
Other assets 879 907 869
------- ------- -------
Total
assets $14,712 $14,545 $14,782
======= ======= =======
Liabilities and
Shareholders'
Equity
Interest-bearing
deposits
Interest
checking
accounts $ 762 0.43% $ 706 0.36% $ 757 0.27%
Money market
accounts 3,252 2.75 3,224 2.57 3,352 2.13
Savings
deposits 160 0.48 163 0.41 174 0.37
Time deposits
- under
$100,000 197 4.07 184 3.73 176 3.16
Time deposits
- $100,000
and over 1,969 4.65 1,999 4.56 1,652 4.05
------- ------- -------
Total
interest-
bearing
deposits 6,340 3.04 6,276 2.93 6,111 2.40
Federal funds
purchased and
securities sold
under repurchase
agreements 416 5.24 401 5.26 546 4.93
Other
borrowings 554 6.19 558 5.63 652 5.51
------- ------- -------
Total
interest-
bearing
liabilities 7,310 3.41 7,235 3.27 7,309 2.86
Noninterest-
bearing deposits 5,711 5,629 5,820
Other liabilities 218 245 199
Shareholders'
equity 1,473 1,436 1,454
------ ------- -------
Total liabil-
ities and
shareholders'
equity $14,712 $14,545 $14,782
======= ======= =======
Net interest spread 2.94% 3.03% 3.32%
===== ===== =====
Net interest margin 4.51% 4.53% 4.65%
===== ===== =====
Average prime rate 8.25% 8.25% 7.90%
===== ===== =====
------------------------------------
First Quarter Year to Date
--------------- ----------------
Average Average
(Dollars in millions) Balance Rate Balance Rate
-------------------------------- ------- ----- ------- -----
Assets
Interest-earning assets
Loans
Commercial $ 3,813 6.62% $ 3,882 6.91%
Commercial real estate
mortgages 1,772 7.36 1,783 7.47
Residential mortgages 2,666 5.27 2,765 5.34
Real estate construction 843 8.42 958 8.82
Equity lines of credit 334 7.17 365 7.66
Installment 197 7.41 195 7.57
------- -------
Total loans 9,625 6.59 9,948 6.80
Due from banks - interest-
bearing 44 1.98 55 2.43
Federal funds sold and
securities purchased under
resale agreements 13 4.32 30 5.01
Securities available-for-sale 3,926 4.47 3,439 4.57
Trading account securities 44 5.26 50 5.61
Other interest-earning assets 47 5.23 47 5.43
------- -------
Total interest-earning
assets 13,699 5.98 13,569 6.20
Allowance for loan and lease
losses (155) (157)
Cash and due from banks 439 429
Other assets 844 875
------- -------
Total assets $14,827 $14,716
======= =======
Liabilities and Shareholders'
Equity
Interest-bearing deposits
Interest checking accounts $ 808 0.23% $ 758 0.32%
Money market accounts 3,388 1.81 3,304 2.31
Savings deposits 179 0.37 169 0.41
Time deposits - under $100,000 180 2.77 184 3.45
Time deposits - $100,000 and
over 1,254 3.40 1,721 4.26
------- -------
Total interest-bearing
deposits 5,809 1.92 6,136 2.59
Federal funds purchased and
securities sold under
repurchase agreements 809 4.48 542 4.89
Other borrowings 749 5.09 627 5.57
------- -------
Total interest-bearing
liabilities 7,367 2.52 7,305 3.02
Noninterest-bearing deposits 5,779 5,734
Other liabilities 200 216
Shareholders' equity 1,481 1,461
------- -------
Total liabilities and
shareholders' equity $14,827 $14,716
======= =======
Net interest spread 3.46% 3.18%
===== =====
Net interest margin 4.62% 4.58%
===== =====
Average prime rate 7.43% 7.96%
===== =====
CITY NATIONAL CORPORATION
CAPITAL AND CREDIT RATING DATA
(unaudited) 2007
-----------------------------
Second First Year To
Quarter Quarter Date
Per Common Share: ------- ------- -------
-----------------
Shares Outstanding (in thousands):
Average - Basic 48,674 47,968 48,323
Average - Diluted 49,837 49,087 49,461
Period-End 48,731 48,602
Book Value $ 33.27 $ 32.73
Price:
High $ 78.39 $ 75.39 $ 78.39
Low 72.30 68.00 68.00
Period-end 76.09 73.60
Capital Ratios
(Dollars in millions):
-----------------------
Risk-based capital
Risk-adjusted assets $12,067 $11,618
Tier I capital $ 1,185 $ 1,234
Percentage of risk adjusted assets 9.82% 10.62%
Total capital $ 1,481 $ 1,524
Percentage of risk adjusted assets 12.28% 13.12%
Tier I leverage ratio 7.97% 8.59%
Period-end shareholders' equity
to total period-end assets 10.26% 10.42%
Period-end tangible shareholders' equity
to total period-end tangible assets 7.22% 7.88%
Average shareholders' equity
to total average assets 10.38% 10.24% 10.31%
Average tangible shareholders' equity
to total average tangible assets 7.67% 8.18% 7.92%
2006
-----------------------------------------------
Fourth Third Second First Full
Quarter Quarter Quarter Quarter Year
Per Common Share: ------- ------- ------- ------- -------
-----------------
Shares Outstanding
(in thousands):
Average - Basic 47,573 47,919 48,957 49,484 48,477
Average - Diluted 49,012 49,318 50,654 51,309 50,063
Period-End 47,492 47,639 48,115 49,535
Book Value $ 31.39 $ 30.40 $ 29.05 $ 29.66
Price:
High $ 71.29 $ 68.41 $ 78.25 $ 78.25 $ 78.25
Low 65.34 63.69 60.02 71.95 60.02
Period-end 71.20 67.06 65.09 76.79
Capital Ratios
(Dollars in millions):
-----------------------
Risk-based capital
Risk-adjusted
assets $11,411 $10,999 $10,811 $10,473
Tier I capital $ 1,256 $ 1,219 $ 1,211 $ 1,284
Percentage of risk
adjusted assets 11.09% 11.09% 11.20% 12.26%
Total capital $ 1,544 $ 1,554 $ 1,542 $ 1,614
Percentage of risk
adjusted assets 13.60% 14.12% 14.26% 15.41%
Tier I leverage ratio 8.81% 8.58% 8.38% 8.85%
Period-end share-
holders' equity to
total period-end
assets 10.02% 9.91% 9.66% 9.97%
Period-end tangible
shareholders' equity
to total period-end
tangible assets 8.24% 8.03% 7.76% 8.20%
Average shareholders'
equity to total
average assets 10.01% 9.87% 9.84% 9.99% 9.93%
Average tangible
shareholders' equity
to total average
tangible assets 8.16% 7.99% 8.04% 8.23% 8.10%
Senior Debt Credit Ratings
--------------------------
For The Period Ended June 30, 2007
Standard &
Moody's Fitch Poor's DBRS
------- ----- ----------- ---------
City National Bank Aa3 A- A A (high)
City National Corporation A1 A- A- A
CONTACT: City National Corporation
Financial/Investors
Christopher J. Carey
310.888.6777
Chris.Carey@cnb.com
Media
Cary Walker
213.673.7615
Cary.Walker@cnb.com
Conference Call:
Today 2:00 p.m. PDT
866.713.8395
Pass Code: 30224089