EXHIBIT 99.1
[CITY NATIONAL CORPORATION LETTERHEAD]
CONTACTS
FINANCIAL/INVESTORS
Frank Pekny (City National) 310-888-6700
Ian Campbell (Abernathy MacGregor Group) 213-630-6550
MEDIA
Kim George (City National) 213-833-4715
FOR IMMEDIATE RELEASE
CITY NATIONAL CORPORATION REPORTS NET INCOME UP 8
PERCENT TO $33.6 MILLION FOR FIRST QUARTER OF 2001
NONPERFORMING ASSETS DECLINED 14 PERCENT FROM YEAR-END 2000
SYNDICATED NON-RELATIONSHIP LOANS REDUCED 23 PERCENT FROM YEAR-END 2000
LOS ANGELES, APRIL 17, 2001 -- City National Corporation (NYSE: CYN), parent
corporation of wholly owned City National Bank, today reported net income of
$33.6 million for the first quarter of 2001, an 8 percent increase from net
income of $31.0 million for the first quarter of 2000 and a modest increase from
the fourth quarter of 2000. Cash net income, which excludes the amortization of
core deposit intangibles and goodwill from acquisitions, increased 11 percent to
$37.5 million in the first quarter of 2001 from $33.9 million in the first
quarter of 2000.
Net income per diluted common share of $0.69 increased 5 percent, compared with
$0.66 per share in the first quarter of 2000 and was up modestly from $0.68 per
share in the fourth quarter of 2000 on a slightly higher number of shares
outstanding in the first quarter of 2001. Cash net income per diluted common
share rose 7 percent to $0.77, compared with $0.72 per diluted common share in
the first quarter of 2000 and rose just slightly compared with $0.76 per diluted
common share in the fourth quarter of 2000. These results include the
integration of Reed, Conner & Birdwell, Inc. ("Reed, Conner & Birdwell")
acquired at the end of December 2000 and The Pacific Bank, N.A. ("Pacific
Bank"), acquired at the end of February 2000, both in purchase transactions.
"This quarter, City National again generated solid, year-over-year growth in
loans and deposits, as well as revenues, noninterest income and net income,"
said Russell Goldsmith, CEO of City National Corporation. "It is significant
that we produced this growth in this quarter, while also reducing our syndicated
non-relationship loans and nonperforming assets," he added.
CITY NATIONAL CORPORATION REPORTS NET INCOME UP 8 PERCENT TO $33.6 MILLION FOR
FIRST QUARTER OF 2001
"This underlying growth across our business indicates that, even with a few,
short-range challenges, California continues to be a diverse and entrepreneurial
economy that is growing and presenting real opportunities for City National,
both in the near term and the long term."
"We believe City National is well-positioned as California's Premier Private
and Business Bank(SM) to continue to produce quality earnings growth through
our client-driven, relationship-focused organization and our expanding
capabilities to deliver financial solutions," Goldsmith added.
RETURN ON ASSETS/RETURN ON EQUITY
The corporation's return on average assets in the first quarter of 2001 was 1.53
percent, compared with 1.63 percent in the first quarter of 2000 and 1.50
percent in the fourth quarter of 2000. The return on average shareholders'
equity declined to 17.81 percent for the first quarter of 2001, compared with
20.85 percent for the prior-year first quarter and 18.29 percent for the fourth
quarter of 2000, due primarily to higher equity from increased unrealized
securities gains and to the positive mark-to-market valuation of interest rate
swaps treated as cash flow hedges.
On a cash basis (which excludes goodwill and the after-tax impact of
nonqualifying core deposit intangibles from average assets and average
shareholders' equity), the return on average assets in the first quarter of 2001
was 1.74 percent, compared with 1.81 percent in first quarter of 2000 and 1.71
percent for the fourth quarter of 2000. The return on average shareholders'
equity on a cash basis declined to 26.21 percent for the first quarter of 2001,
compared with 28.31 percent for the prior-year first quarter and 26.75 percent
for the fourth quarter of 2000.
Management continues to expect that net income per diluted common share for 2001
will be within a range of approximately 8 percent to 11 percent higher than net
income per diluted common share for 2000. These expectations do not reflect the
potential positive impact of the tentative decision of the Financial Accounting
Standards Board to discontinue goodwill amortization. In the first quarter of
2001, the amortization of goodwill reduced net income per diluted common share
by $0.06.
ASSETS
Total average assets reached $8.9 billion in the first quarter of 2001, an
increase of 16 percent over the $7.7 billion in average assets for the first
quarter of 2000 and an increase of 2 percent over the $8.8 billion in average
assets for the fourth quarter of 2000. Total assets at March 31, 2001 were $8.9
billion, compared with $8.4 billion at March 31, 2000 and $9.1 billion at
December 31, 2000. The decline from year-end 2000 was due primarily to the
effect of seasonally higher deposits at December 31, 2000.
2
CITY NATIONAL CORPORATION REPORTS NET INCOME UP 8 PERCENT TO $33.6 MILLION FOR
FIRST QUARTER OF 2001
LOANS
Average loans rose to $6.5 billion for the first quarter of 2001, an increase of
14 percent over the prior-year first quarter. Average relationship loans
increased $1.2 billion, or 22 percent, this quarter over the year-ago quarter.
The first quarter of 2001 average balance was $180.8 million higher than the
fourth quarter of 2000, or 13 percent on an annualized basis. Conversely and
consistent with management's ongoing plan, average syndicated non-relationship
loans fell to $174.1 million for the first quarter of 2001, down significantly
from both the first quarter, as well as the fourth quarter of 2000.
The increase in average relationship loans over the year-ago quarter was driven
primarily by increases in commercial loans and real estate mortgage loans.
Compared with the prior-year first quarter, commercial loan averages rose 24
percent to $3.0 billion from $2.4 billion, and real estate mortgage loan average
balances rose 33 percent to $1.5 billion from $1.1 billion. The other
relationship loan categories also contributed to the increase in average loan
growth over the prior-year first quarter. The increase over the year-ago quarter
was due in part to the acquisition of Pacific Bank.
Total loans at March 31, 2001 were $6.5 billion, compared with $6.2 billion at
March 31, 2000 and $6.5 billion at December 31, 2000. At March 31, 2001, the
commercial loan portfolio contained no direct energy-related borrowings.
Technology-related borrowings accounted for approximately 1 percent of the
commercial loan portfolio.
At March 31, 2001, syndicated non-relationship loans were $148.3 million, or 2.3
percent of the loan portfolio, compared with $191.8 million at December 31,
2000. The $43.5 million reduction in the first quarter of 2001 included the
transfer of four performing loans totaling $14.2 million to available-for-sale.
During April 2001, three of these loans totaling $9.7 million were sold at the
quarter-end carrying value, leaving two performing loans for $13.1 million as
available-for-sale. The average outstanding loan balance in the syndicated
non-relationship portfolio at March 31, 2001 was $2.9 million, which represents
just over half of the average commitment amount.
Management anticipates average relationship loan growth in 2001 will be in the
range of 9 percent to 13 percent, reflecting its expectation that the California
economy will continue to grow but at a slower pace than experienced in recent
years.
DEPOSITS
Average deposits during the first quarter of 2001 were $6.8 billion, an increase
of 20 percent over the first quarter of 2000 and marginally less than the
seasonally higher level in the fourth quarter of 2000. The increase over the
year-ago quarter was due in part to the acquisition of Pacific Bank.
During the first quarter of 2001, average core deposits, which provide a stable
source of low cost funding, were $5.1 billion, an increase of 13 percent over
the $4.5 billion in the first quarter of
3
CITY NATIONAL CORPORATION REPORTS NET INCOME UP 8 PERCENT TO $33.6 MILLION FOR
FIRST QUARTER OF 2001
2000, and 2 percent lower than the $5.2 billion for the fourth quarter of 2000.
Core deposits represented 76 percent of the total average deposit base for the
quarter.
Deposits totaled $6.9 billion at March 31, 2001, compared with $6.4 billion at
March 31, 2000 and $7.4 billion at December 31, 2000. The decline from year-end
2000 was primarily due to seasonal increases in demand deposits at year-end.
Management expects average deposit growth in 2001, compared with 2000, to be in
the range of 8 percent to 12 percent.
NET INTEREST INCOME
Net interest income on a fully taxable-equivalent basis rose 13 percent to
$108.1 million in the first quarter of 2001, compared with $95.3 million for the
first quarter of 2000. First quarter 2001 net interest income was slightly lower
than the $108.7 million for the fourth quarter of 2000. Interest income
recovered on nonaccrual and charged-off loans included above was $1.6 million in
the first quarter of 2001, compared with $1.1 million for the first quarter a
year ago and $0.9 million for the fourth quarter of 2000.
The fully taxable-equivalent net interest margin in the first quarter of 2001
was 5.40 percent, compared with 5.47 percent for the first quarter of 2000 and
5.41 percent for the fourth quarter of 2000. The decrease from a year ago was
attributable to an increase in the cost of funds.
Management expects the net interest margin for 2001 to decrease modestly from
2000.
NONINTEREST INCOME
Noninterest income continued its strong, across-the-board growth, increasing 29
percent to $31.3 million in the first quarter of 2001 from $24.2 million in the
first quarter of 2000 and 4 percent higher than the $29.9 million for the fourth
quarter of 2000.
All categories of recurring noninterest income were higher this quarter compared
with the year-ago quarter, reflecting City National's continued emphasis on
growing fee income. Trust and investment fee revenue rose through the Reed,
Conner & Birdwell acquisition, and an increase in new business within City
National Investments (CNI).
Assets under administration totaled $17.9 billion at March 31, 2001, including
$6.6 billion under management, compared with $14.9 billion and $4.8 billion,
respectively, at March 31, 2000, and $18.0 billion and $6.7 billion at December
31, 2000. Assets under management at March 31, 2001 and December 31, 2000
included $1.1 billion from the purchase of Reed, Conner & Birdwell, which closed
on December 29, 2000. The remaining year-over-year increase in assets under
management is primarily attributable to increased participation in the CNI
Charter Funds.
4
CITY NATIONAL CORPORATION REPORTS NET INCOME UP 8 PERCENT TO $33.6 MILLION FOR
FIRST QUARTER OF 2001
The slight decline in assets under administration from December 31, 2000
reflects recent volatility in the financial markets, which was moderated by
additional new business and prudent asset management.
Cash management and deposit transaction charges increased as the result of
deposits assumed in the acquisition of Pacific Bank and strong internal growth
in deposits attributable to increased sales of cash management products.
International services income rose as a result of an increase in fee income
associated with letters of credit and standby letters of credit. However,
compared with the fourth quarter of 2000, the level of international services
income declined due to lower foreign exchange income as well as seasonal
declines relating to the import/export business.
Gains on the sale of assets and securities amounted to $1.7 million for the
first quarter of 2001, compared with gains of $0.2 million for the same period a
year-earlier and gains of $1.1 million for the fourth quarter of 2000.
Management expects growth in noninterest income to range from 15 percent to 20
percent for 2001.
NONINTEREST EXPENSE
Noninterest expense was $76.6 million in the first quarter of 2001, an increase
of 11 percent from $69.1 million for the first quarter of 2000 and an increase
of 1 percent from $75.6 million for the fourth quarter of 2000. The increase in
expenses this quarter compared with the year-ago quarter was primarily the
result of the corporation's growth, including expenses related to the
acquisition of Reed Conner & Birdwell and Pacific Bank -- additional offices,
new colleagues and the amortization of goodwill and core deposit intangibles.
First quarter 2001 noninterest expense also included a non-recurring $0.7
million transactional expense.
The corporation's cash efficiency ratio for the first quarter of 2001 improved
to 52.01 percent from 54.90 percent in the first quarter of 2000. The 5 percent
improvement is due to increased revenues and tangible results from the
corporation's ongoing efforts to improve efficiency and productivity. The cash
efficiency ratio for the current quarter rose slightly from the 51.36 percent
for the fourth quarter of 2000.
Management currently anticipates that 2001 noninterest expense will increase
between 5 percent to 8 percent, excluding the impact of any change in the
accounting rules for goodwill amortization.
5
CITY NATIONAL CORPORATION REPORTS NET INCOME UP 8 PERCENT TO $33.6 MILLION FOR
FIRST QUARTER OF 2001
INCOME TAXES
The first quarter 2001 effective tax rate was 35.5 percent, compared with 34.1
percent for all of 2000. The higher tax rate is due primarily to a decreasing
benefit from a registered investment company subsidiary. The long-term plan for
the registered investment company remains under review. Depending on the outcome
of the review and other factors, management anticipates its effective tax rate
may be between 35.0 percent and 36.0 percent for 2001.
CREDIT QUALITY
Net loan charge-offs were $8.2 million and $3.6 million for the first quarters
of 2001 and 2000, respectively. Net loan charge-offs for the fourth quarter of
2000 were $14.3 million.
Relationship loan net charge-offs were $6.3 million for the first quarter of
2001, compared with $2.5 million for the first quarter of 2000 and $5.0 million
for the fourth quarter of 2000. First quarter syndicated non-relationship loan
net charge-offs were $1.9 million, slightly higher than $1.1 million in the
first quarter of 2000 and down significantly from $9.2 million for the fourth
quarter of 2000.
As a percentage of average loans, annualized net charge-offs were 0.51 percent,
0.25 percent and 0.88 percent for the first quarters of 2001 and 2000 and the
fourth quarter of 2000, respectively. Relationship loan net charge-offs were
0.40 percent of average relationship loans outstanding for the first quarter of
2001, compared with 0.19 percent for the first quarter of 2000 and 0.32 percent
for the fourth quarter of 2000.
Total nonperforming assets (nonaccrual loans and ORE) were $53.8 million, or
0.83 percent of total loans and ORE, at March 31, 2001, compared with $32.8
million, or 0.53 percent, at March 31, 2000 and $62.5 million, or 0.96 percent,
at December 31, 2000. From year-end 2000, nonperforming assets decreased 14
percent.
Total nonperforming relationship assets were $37.1 million, or 0.58 percent of
total relationship loans and ORE, at March 31, 2001, compared with $29.4
million, or 0.52 percent, at March 31, 2000 and $39.5 million, or 0.62 percent,
at December 31, 2000. While the corporation has experienced a moderate increase
in relationship nonaccrual loans year-over-year, the level has dropped slightly
since December 31, 2000 and does not contain any concentration of credits within
a specific industry sector. Total syndicated non-relationship loans on
nonaccrual status totaled $16.7 million at March 31, 2001 and consisted of four
loans, one less than the five loans totaling $23.0 million at December 31, 2000.
City National recorded a provision for credit losses of $7.5 million for the
first quarter of 2001, compared with no provision in the prior year quarter. The
provision for credit losses in the fourth quarter of 2000 was $10.5 million. The
provision for credit losses primarily reflects the levels of net loan
charge-offs and nonaccrual loans, as well as management's ongoing assessment of
the credit quality of the portfolio and the year-over-year growth of the loan
portfolio.
6
CITY NATIONAL CORPORATION REPORTS NET INCOME UP 8 PERCENT TO $33.6 MILLION FOR
FIRST QUARTER OF 2001
The allowance for credit losses at March 31, 2001 totaled $134.7 million, or
2.07 percent of outstanding loans. This compares with an allowance of $140.5
million, or 2.28 percent of outstanding loans, at March 31, 2000 and an
allowance of $135.4 million, or 2.07 percent of outstanding loans, at December
31, 2000. The allowance for credit losses as a percentage of nonaccrual loans
was 256 percent at March 31, 2001, compared with 434 percent at March 31, 2000
and 218 percent at December 31, 2000. Management believes the allowance for
credit losses is adequate to cover risks inherent in the portfolio at March 31,
2001.
The provision for credit losses to be taken in the balance of 2001 will reflect
management's assessment of the above factors, as well as the economic
environment at each reporting date. Based on its current assessment of these
factors, management anticipates that a provision for credit losses of
approximately $30 million to $45 million may be required for all of 2001.
CAPITAL LEVELS
Total risk-based capital and Tier 1 risk-based capital ratios at March 31, 2001
were 11.35 percent and 8.33 percent, compared with the minimum
"well-capitalized" capital ratios of 10 percent and 6 percent, respectively. The
corporation's Tier 1 leverage ratio of 6.71 percent exceeded the regulatory
minimum of 4 percent required for a "well-capitalized" institution. Total
risk-based capital, Tier 1 risk-based capital and the Tier 1 leverage ratios
were 10.85 percent, 7.84 percent and 6.49 percent, respectively, at December 31,
2000.
STOCK REPURCHASE
Under the October 26, 2000 stock buyback program of one million shares, 291,700
shares, including 90,100 shares in the first quarter of 2001, have been
repurchased at an average price of $33.02 per share. The shares purchased under
the buyback program will be reissued for acquisitions, upon the exercise of
stock options, and for other general corporate purposes. Treasury shares at
March 31, 2001 totaled 111,175 shares.
ABOUT CITY NATIONAL
City National Corporation is a publicly owned corporation with $8.9 billion
in total assets whose stock is traded on the New York Stock Exchange under
the symbol "CYN." The corporation's wholly owned subsidiary, City National
Bank, is California's Premier Private and Business Bank(SM). City National
Bank, which provides banking, trust and investment services, has 48
California offices located throughout Los Angeles, Orange, Riverside, San
Bernardino, San Diego, San Francisco, San Mateo, Santa Clara and Ventura
counties.
This news release contains forward-looking statements about the corporation for
which the corporation claims the protection of the safe harbor provisions
contained in the Private Securities Litigation Reform Act of 1995.
7
CITY NATIONAL CORPORATION REPORTS NET INCOME UP 8 PERCENT TO $33.6 MILLION FOR
FIRST QUARTER OF 2001
Forward-looking statements are based on management's knowledge and belief as of
today and include information concerning the corporation's possible or assumed
future financial condition, and its results of operations and business.
Forward-looking statements are subject to risks and uncertainties. A number of
factors, some of which are beyond the corporation'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) an economic
slowdown in California attributable to energy supply issues, a possible strike
by writers and actors, or any other unforeseen events, (2) changes in interest
rates, (3) significant changes in banking laws or regulations, (4) increased
competition in the corporation's market, (5) higher-than-expected credit losses
and (6) possible changes in the plans for the registered investment company
subsidiary.
For a more complete discussion of these risks and uncertainties, see the
corporation's Annual Report on Form 10-K for the year ended December 31, 2000,
and particularly the section of Management's Discussion and Analysis therein
titled "Cautionary Statement for Purposes of the `Safe Harbor' Provisions of the
Private Securities Litigation Reform Act of 1995."
8
Earnings Release
April 17, 2001
Page 9
CITY NATIONAL CORPORATION
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CONSOLIDATED BALANCE SHEET (UNAUDITED) (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNT)
- --------------------------------------------------------------------------------------------------------------------------
MARCH 31,
--------------------------------------------------
2001 2000 % CHANGE
--------------- ---------------- ------------
Assets
Cash and due from banks $ 423,366 $ 381,763 11
Securities 1,567,734 1,196,531 31
Federal funds sold - 285,000 N/M
Loans (net of allowance for credit
losses of $134,727 and $140,450) 6,370,363 6,023,566 6
Other assets 572,340 536,645 7
--------------- ----------------
Total assets $ 8,933,803 $ 8,423,505 6
=============== ================
Liabilities and Shareholders' Equity
Noninterest-bearing deposits $ 2,956,454 $ 2,705,431 9
Interest-bearing deposits 3,914,363 3,672,029 7
--------------- ----------------
Total deposits 6,870,817 6,377,460 8
Federal funds purchased and securities sold
under repurchase agreements 230,844 231,404 -
Other short-term borrowed funds 663,125 829,549 (20)
Subordinated debt 130,879 123,500 6
Other long-term debt 144,177 130,000 11
Other liabilities 109,178 84,140 30
--------------- ----------------
Total liabilities 8,149,020 7,776,053 5
Shareholders' equity 784,783 647,452 21
--------------- ----------------
Total liabilities and shareholders' equity $ 8,933,803 $ 8,423,505 6
=============== ================
Book value per share $ 16.46 $ 13.64 21
Number of shares at period end 47,674,170 47,453,386 -
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNT)
- -------------------------------------------------------------------------------------------------------------------------
FOR THE THREE MONTHS ENDED
MARCH 31,
--------------------------------------------------
2001 2000 % CHANGE
--------------- ---------------- ------------
Interest income $ 164,192 $ 142,067 16
Interest expense (59,275) (49,820) 19
--------------- ----------------
Net interest income 104,917 92,247 14
Provision for credit losses (7,500) - N/M
--------------- ----------------
Net interest income after provision for credit losses 97,417 92,247 6
Noninterest income 31,261 24,243 29
Noninterest expense (76,604) (69,085) 11
--------------- ----------------
Income before taxes 52,074 47,405 10
Income taxes (18,483) (16,397) 13
--------------- ----------------
Net income $ 33,591 $ 31,008 8
=============== ================
Net income per share, basic $ 0.70 $ 0.68 3
=============== ================
Net income per share, diluted $ 0.69 $ 0.66 5
=============== ================
Dividends paid per share $ 0.19 $ 0.18 6
=============== ================
Cash net income $ 37,532 $ 33,900 11
=============== ================
Cash net income per share, basic $ 0.79 $ 0.74 7
=============== ================
Cash net income per share, diluted $ 0.77 $ 0.72 7
=============== ================
Shares used to compute per share net income, basic 47,683,205 45,903,093
Shares used to compute per share net income, diluted 48,834,775 46,895,543
Earnings Release
April 17, 2001
Page 10
CITY NATIONAL CORPORATION
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SELECTED FINANCIAL INFORMATION (UNAUDITED) (DOLLARS IN THOUSANDS)
- ------------------------------------------------------------------------------------------------------------------------------------
PERIOD END MARCH 31,
--------------------------------------------------
2001 2000 % CHANGE
--------------- ---------------- ------------
Loans
Commercial (a) $ 2,939,893 $ 2,601,440 13
Residential first mortgage 1,288,132 1,224,343 5
Real estate mortgage 1,616,188 1,307,961 24
Real estate construction 437,431 421,639 4
Installment 75,128 68,617 9
--------------- ----------------
Total relationship loans 6,356,772 5,624,000 13
Syndicated non-relationship (a) 148,318 540,016 (73)
--------------- ----------------
Total loans $ 6,505,090 $ 6,164,016 6
=============== ================
(a) Commercial loans were $3,056,464 and syndicated non-relationship
loans were $191,789 at December 31, 2000
Deposits
Noninterest bearing $ 2,956,454 $ 2,705,431 9
Interest-bearing, core 2,361,811 2,511,399 (6)
--------------- ----------------
Total core deposits 5,318,265 5,216,830 2
Time deposits - $100,000 and over 1,552,552 1,160,630 34
--------------- ----------------
Total deposits $ 6,870,817 $ 6,377,460 8
=============== ================
Credit Quality
Nonaccrual loans and ORE (b)
Relationship loans $ 35,986 $ 28,988 24
Syndicated non-relationship loans 16,743 3,342 401
--------------- ----------------
52,729 32,330 63
ORE 1,094 429 155
--------------- ----------------
Total nonaccrual loans and ORE $ 53,823 $ 32,759 64
=============== ================
Relationship nonaccrual loans and ORE to total
relationship loans and ORE 0.58 0.52 12
Total nonaccrual loans and ORE to total loans and ORE 0.83 0.53 57
Loans past due 90 days or more on accrual status $ 8,847 $ 28,358 (69)
=============== ================
Restructured loans on accrual status $ 1,358 $ 2,647 (49)
=============== ================
(b) Nonaccrual loans were $61,986 at December 31, 2000 including $38,974
of relationship loans and $23,012 of syndicated non-relationship loans
FOR THE THREE MONTHS ENDED
ALLOWANCE FOR CREDIT LOSSES MARCH 31,
--------------------------------------------------
2001 2000 % CHANGE
--------------- ---------------- ------------
Beginning balance $ 135,435 $ 134,077 1
Additions from acquisitions - 9,927 N/M
Provision for credit losses 7,500 - N/M
Charge-offs (c)
Relationship loans (9,983) (4,493) 122
Syndicated non-relationship loans (2,101) (1,066) 97
--------------- ----------------
(12,084) (5,559) 117
Recoveries, including $231 syndicated non-relationship loans in 2001 3,876 2,005 93
--------------- ----------------
Net charge-offs (8,208) (3,554) 131
--------------- ----------------
Ending Balance $ 134,727 $ 140,450 (4)
=============== ================
Net relationship charge-offs to average relationship loans (annualized) (0.40)% (0.19)% 111
Total net charge-offs to average loans (annualized) (0.51) (0.25) 105
Allowance for credit losses to total loans 2.07 2.28 (9)
Allowance for credit losses to nonaccrual loans 255.51 434.43 (41)
(c) Charge-offs in the fourth quarter 2000 were $8,168 in relationship
loans and $9,245 in syndicated non-relationship loans
Earnings Release
April 17, 2001
Page 11
CITY NATIONAL CORPORATION
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SELECTED FINANCIAL INFORMATION (UNAUDITED) (DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
- ------------------------------------------------------------------------------------------------------------------------------------
FOR THE THREE MONTHS ENDED
MARCH 31,
--------------------------------------------------
2001 2000 % CHANGE
--------------- ---------------- ------------
AVERAGE BALANCES
Loans
Commercial $ 2,993,047 $ 2,406,776 24
Residential first mortgage 1,291,176 1,207,907 7
Real estate mortgage 1,521,113 1,141,315 33
Real estate construction 469,052 377,433 24
Installment 73,223 62,786 17
--------------- ----------------
Total relationship loans 6,347,611 5,196,217 22
Syndicated non-relationship 174,103 544,126 (68)
--------------- ----------------
Total loans $ 6,521,714 $ 5,740,343 14
=============== ================
Securities $ 1,557,039 $ 1,208,883 29
Interest-earning assets 8,116,541 7,006,420 16
Assets 8,920,281 7,661,611 16
Core deposits 5,131,990 4,521,759 13
Deposits 6,786,666 5,676,364 20
Shareholders' equity 764,712 598,166 28
NONINTEREST INCOME
Trust and investment fee revenue $ 13,673 $ 10,957 25
Cash management and deposit transaction charges 6,548 5,557 18
International services 3,559 3,308 8
Bank owned life insurance 724 621 17
Other 5,023 3,572 41
--------------- ----------------
Subtotal - recurring 15,854 13,058 23
Gain (loss) on sale of loans and assets 757 5 N/M
Gain (loss) on sale of securities 977 223 338
--------------- ----------------
Total $ 31,261 $ 24,243 29
=============== ================
NONINTEREST EXPENSE
Salaries and other employee benefits $ 42,774 $ 38,851 10
--------------- ----------------
All Other
Professional 5,764 5,385 7
Net occupancy of premises 6,344 4,805 32
Information services 3,829 3,587 7
Marketing and advertising 2,581 2,703 (5)
Depreciation 3,337 3,040 10
Office services 2,210 2,066 7
Amortization of goodwill 3,206 2,258 42
Amortization of core deposit intangibles 1,405 1,231 14
Equipment 496 465 7
Acquisition integration - 1,309 N/M
Other operating 4,658 3,385 38
--------------- ----------------
Total all other 33,830 30,234 12
--------------- ----------------
Total $ 76,604 $ 69,085 11
=============== ================
SELECTED RATIOS
For the Period
Return on average assets 1.53% 1.63% (6)
Return on average shareholders' equity 17.81 20.85 (15)
Net interest margin 5.40 5.47 (1)
Efficiency ratio 55.32 57.82 (4)
Dividend payout ratio 26.22 25.53 3
Cash return on average assets 1.74 1.81 (4)
Cash return on average shareholders' equity 26.21 28.31 (7)
Cash efficiency ratio 52.01 54.90 (5)
Period End
Tier 1 risk-based capital ratio 8.33 7.21 16
Total risk-based capital ratio 11.35 10.32 10
Tier 1 leverage ratio 6.71 6.46 4
(Released to Business Wire this date)