Exhibit 99.1
City National Corp. Reports Third-Quarter 2006 Earnings Of
$59.0 Million, or $1.20 per Share
Average Loans Grow 12 Percent from Last Year, Reaching $10 Billion
for the First Time
LOS ANGELES--(BUSINESS WIRE)--Oct. 18, 2006--City National Corporation
(NYSE: CYN), the parent company of wholly owned City National Bank, today
reported third-quarter 2006 net income of $59.0 million, or $1.20 per share,
compared with $59.8 million, or $1.17 per share, for the third quarter of 2005.
Third-quarter earnings per share were 3 percent higher than they were during the
same period last year.
Year to date, City National has earned $175.0 million, or $3.47 per share,
on revenue of $633.4 million. In the first three quarters of 2005, the company
earned net income of $173.0 million, or $3.39 per share, on revenue of $607.7
million. Earnings per share grew 2 percent from the first three quarters of
2005.
THIRD-QUARTER HIGHLIGHTS
-- Third-quarter revenue grew to $213.5 million, a 2 percent increase
from the same period last year.
-- Average loan balances increased 12 percent from the third quarter of
2005. Lending rose in all major categories, and average loan balances
reached $10.0 billion for the first time.
-- Loan recoveries again exceeded charge-offs. Nonaccrual loans amounted
to $18.8 million, up $0.2 million from the third quarter of 2005 and
$3.8 million from the second quarter of this year.
-- Average deposits of $11.9 billion were stable -- essentially unchanged
from both the third quarter of 2005 and the second quarter of this
year.
-- Noninterest income grew to $64.8 million, 21 percent higher than the
third quarter of 2005 and 11 percent higher than the second quarter of
this year, due primarily to the continuing growth of City National's
wealth management and international services fee revenue.
"Double-digit growth in loans and wealth management revenue, excellent
credit quality, fairly stable deposits and a very robust, although narrower, net
interest margin, plus our strong capital base, all underscore the fundamental
strength of City National's business model," said President and Chief Executive
Officer Russell Goldsmith. "Notwithstanding the challenges of this interest-rate
environment, our company continues to add clients, broaden its product
offerings, including new deposit products and our state-of-the-art remote
deposit capture product, and make progress as California's Premier Private and
Business Bank."
For the three months For the
ended three
September 30, months
Dollars in millions, % ended %
---------------------
except per share Change June 30, Change
2006 2005 2006
- ----------------------- ---------- ---------- ------ --------- ------
Earnings Per Share $1.20 $1.17 3 $1.16 3
Net Income 59.0 59.8 (1) 58.7 0
Average Assets 14,544.6 14,255.7 2 14,782.5 (2)
Return on Average
Assets 1.61 % 1.66 % (3) 1.59 % 1
Return on Average
Equity 16.30 16.74 (3) 16.20 1
ASSETS
Total assets at September 30, 2006 were $14.6 billion, up 1 percent both
from one year ago and from June 30 of this year. The increases reflect the
growth of the company's loan portfolio.
REVENUE
Strong loan growth and increases in fee income drove revenue higher.
Third-quarter revenue (net interest income plus noninterest income) totaled
$213.5 million, up 2 percent from the third quarter of 2005 and essentially
unchanged from the second quarter of this year.
NET INTEREST INCOME
Fully taxable-equivalent net interest income was $152.0 million in the
third quarter of 2006, down 5 percent from $159.3 million for the same period
last year. Fully taxable-equivalent net interest income in the second quarter of
2006 was $157.3 million.
Lending activity continued to grow in the third quarter. Average loan
balances reached $10.0 billion, up 12 percent from one year ago and 1 percent
from the second quarter of 2006. Commercial loans increased 13 percent from the
third quarter of 2005, but fell 3 percent from the second quarter of this year.
Residential mortgage lending rose 11 percent from one year ago and 2 percent
from the second quarter of 2006. Commercial real estate lending was up 12
percent from the third quarter of 2005 and 6 percent from the second quarter of
this year. Real estate construction loans increased 5 percent from one year ago
and 2 percent from the second quarter of this year.
City National's yield on earning assets reached 6.30 percent, up from 5.67
percent in the third quarter of 2005 and 6.19 percent in the second quarter of
this year. At September 30, 2006, the bank's prime rate was 8.25 percent, 150
basis points higher than it was at the same time last year.
Average deposits totaled $11.9 billion, essentially unchanged from both the
third quarter of 2005 and the second quarter of this year. Average
noninterest-bearing deposits fell 8 percent from the third quarter of 2005 and 3
percent from the second quarter of this year. Third-quarter title and escrow
balances averaged $1.25 billion, down slightly from the $1.30 billion average in
the second quarter of 2006. Interest checking and money market account balances
together were down 9 percent from the third quarter of last year and 4 percent
from the second quarter of this year. Time deposits, including certificates of
deposit, were up 74 percent from the third quarter of 2005 and 19 percent from
the second quarter of this year. Total interest expense grew 110 percent from
the third quarter of 2005 and 14 percent from the second quarter of this year as
a result of the shift to higher rate deposits and the increase in short-term
borrowings to fund loan growth.
Responding to the rise in short-term interest rates, this year some of the
company's clients have shifted funds from core deposit accounts into higher
yielding deposit products and accounts. However, in the first three quarters of
2006, the increase in City National's wealth management money market and account
balances substantially exceeded the decline of core deposits.
The company's third-quarter net interest margin was 4.53 percent, compared
with 4.80 percent during the same period last year and 4.65 percent in the
second quarter of 2006. The decline in the margin from the second quarter of
this year is due to lower average balances in demand and money-market deposits
as well as a 53-basis-point increase in the average cost of interest-bearing
deposits.
Average securities totaled $3.2 billion in the third quarter of 2006, down
$822 million from one year ago and $337 million from the second quarter of 2006.
The average duration of total available-for-sale securities at September 30,
2006 was 3.3 years, compared with 3.5 years at June 30, 2006.
For the three months For the
ended three
September 30, months
% ended %
----------------------
Change June 30, Change
Dollars in millions 2006 2005 2006
- ---------------------- ----------- ---------- ------ --------- ------
Average Loans $10,013.1 $8,963.3 12 $9,902.9 1
Average Total
Securities 3,244.9 4,066.6 (20) 3,581.2 (9)
Average Earning Assets 13,322.5 13,135.7 1 13,581.2 (2)
Average Deposits 11,905.2 11,858.5 0 11,930.8 0
Average Core Deposits 9,905.8 10,784.5 (8) 10,278.7 (4)
Fully Taxable-
Equivalent
Net Interest Income 152.0 159.3 (5) 157.3 (3)
Net Interest Margin 4.53 % 4.80 % (6) 4.65 % (3)
NONINTEREST INCOME
Third-quarter 2006 noninterest income was $64.8 million, 21 percent higher
than the third quarter of 2005, due primarily to the continuing growth of City
National's wealth management and international services fee revenue.
Wealth Management
City National's assets under management or administration reached $48.5
billion in the third quarter. As a result, trust and investment fees increased
46 percent over the same period last year. Third-quarter brokerage and mutual
fund fees grew 20 percent from the third quarter of 2005.
Not including the May 31, 2006 acquisition of Independence Investment LLC,
City National's trust and investment fee income in the third quarter of 2006
grew 12 percent from the same period last year. Third-quarter noninterest income
grew 8 percent from last year, excluding the acquisition of Independence.
At or for the At or for
three months the
ended September 30, three
months
% ended %
-------------------
Dollars in millions Change June 30, Change
2006 2005 2006
- -------------------------- --------- --------- ------ --------- ------
Trust and Investment Fee
Revenue $30.0 $20.5 46 $24.9 20
Brokerage and Mutual Fund
Fees 13.1 10.9 20 12.3 7
Assets Under Management
(1) 27,380.6 18,365.6 49 26,852.9 2
Assets Under Management
or Administration (1) 48,488.4 38,784.0 25 47,199.0 3
(1) Excludes $7.8 billion, $6.5 billion, and $9.3 billion of assets
under management for the investment affiliates in which City National
held minority ownership interests as of September 30, 2006, September
30, 2005, and June 30, 2006, respectively.
Other Noninterest Income
Third-quarter cash management and deposit transaction fee income fell 5
percent from the same period last year but grew 4 percent from the second
quarter of 2006.
International services fee income grew 12 percent from the third quarter of
2005 but fell 1 percent from the second quarter of this year.
Other noninterest income for the third quarter of 2006 amounted to $6.3
million, up 13 percent - or $730,000 -- from one year ago.
NONINTEREST EXPENSE
Third-quarter 2006 noninterest expense totaled $120.7 million, up 7 percent
from the third quarter of 2005 and 1 percent from the second quarter of this
year.
Third-quarter expenses were lowered by $1.6 million, or $0.02 per share
after tax, due to a revision in the way the company has been amortizing goodwill
after restructuring an investment in one of its asset management affiliates.
Excluding this revision, the expensing of stock options and the acquisition
of Independence Investment LLC, noninterest expense grew 2 percent from the
third quarter of last year.
City National's efficiency ratio for the third quarter of 2006 was 55.65
percent, compared with 52.90 percent one year ago and 55.20 percent for the
second quarter of this year.
INCOME TAXES
The company's third-quarter 2006 effective tax rate was 36.5 percent,
compared with 38.5 percent in the third quarter of last year.
CREDIT QUALITY
Asset quality remains strong. At September 30, 2006, nonaccrual loans were
$18.8 million, compared with $18.6 million at the same time last year and $15.0
million in the second quarter of 2006. Recoveries exceeded charge-offs for the
seventh consecutive quarter, this time by $1.9 million.
At September 30, 2006, the company's allowance for loan losses was $159.1
million, or 1.59 percent of outstanding loans. Its reserve for unfunded credit
commitments was an additional $15.7 million.
City National made no provision for credit losses in the third quarter. The
company's loan-loss allowance methodology takes into account several
quantitative and qualitative factors, including asset quality, credit risk, loan
growth and economic conditions.
OUTLOOK
As previously disclosed, City National's management expects earnings per
share this year to grow at a rate of between 1 percent and 4 percent as compared
with 2005.
CAPITAL RATIOS
Total risk-based capital and Tier 1 risk-based capital ratios at September
30, 2006 were 14.21 percent and 11.18 percent, compared with the minimum
"well-capitalized" capital ratios of 10 percent and 6 percent, respectively.
The company's Tier 1 leverage ratio at September 30, 2006 was 8.66 percent.
Total risk-based capital, Tier 1 risk-based capital and the Tier 1 leverage
ratios at June 30, 2006 were 14.36 percent, 11.29 percent and 8.45 percent,
respectively.
The period-end ratio of shareholders' equity to total assets at September
30, 2006 was 9.98 percent, compared to 9.82 percent at the same time last year,
and 9.73 percent at June 30, 2006.
STOCK REPURCHASE
In the third quarter of 2006, City National repurchased 546,900 of its
outstanding shares at an average cost per share of $66.16. During the first
three quarters of this year, the company bought back more than 2.1 million
shares at an average per share cost of $69.27. It is currently authorized to
repurchase as many as 1.3 million additional shares.
CONFERENCE CALL
City National Corporation will host a conference call this afternoon to
discuss results for the third quarter of 2006. 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 (800) 638-4817 and enter pass code
56231258. A listen-only live broadcast of the call also will be available on the
investor relations page of the company's Website at 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, is
California's Premier Private and Business Bank(R). It provides banking,
investment and trust services through 55 offices, including 12 full-service
regional centers, in Southern California, the San Francisco Bay Area and New
York City. The corporation also holds majority ownership interests in 10
investment management affiliates.
FORWARD-LOOKING STATEMENTS
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, judicial 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, 2005 and
particularly Part I, Item 1A, titled "Risk Factors."
CITY NATIONAL CORPORATION
FINANCIAL HIGHLIGHTS
(unaudited)
Three Months Nine Months
------------------------ -------------------------
For The Period
Ended September % %
30, 2006 2005 Change 2006 2005 Change
- ---------------------------- ------- ------- -------- -------- -------
Per Common Share
Net Income
Basic $1.23 $1.22 1 $3.59 $3.52 2
Diluted 1.20 1.17 3 3.47 3.39 2
Dividends 0.41 0.36 14 1.23 1.08 14
Book value 30.61 28.85 6
Results of
Operations: (In
millions)
Interest income $208 $184 13 $613 $526 16
Interest expense 59 28 110 158 74 112
-------- ------- -------- --------
Net interest
income 149 156 (5) 455 452 1
Net interest
income (Fully
tax-equivalent) 152 159 (5) 465 462 1
Total revenue 214 210 2 633 608 4
Provision for
credit losses - - NM (1) - NM
Net income 59 60 (1) 175 173 1
Financial Ratios:
Performance
Ratios:
Return on average
assets 1.61% 1.66% 1.59% 1.65%
Return on average
shareholders'
equity 16.30 16.74 16.06 16.80
Period-end
shareholders'
equity to
period-end
assets 9.98 9.82
Net interest
margin 4.53 4.80 4.60 4.76
Efficiency ratio 55.65 52.90 55.22 53.46
Capital Adequacy
Ratios (Period
end):
Tier 1 leverage 8.66 8.58
Tier 1 risk-based
capital 11.18 12.19
Total risk-based
capital 14.21 15.70
Asset Quality
Ratios:
Allowance for loan
and lease losses
to:
Total loans 1.59% 1.70%
Nonaccrual loans 847.03 824.19
Nonperforming
assets to:
Total loans and
nonperforming
assets 0.19 0.21
Total assets 0.13 0.13
Net (charge-
offs)/recoveries
to
Average total
loans
(annualized) 0.08% 0.25% 0.08% 0.11%
Average Balances:
(In millions)
Loans $10,013 $8,963 12 $9,848 $8,763 12
Interest-earning
assets 13,322 13,136 1 13,517 12,954 4
Assets 14,545 14,256 2 14,717 14,058 5
Core deposits 9,906 10,785 (8) 10,171 10,733 (5)
Deposits 11,905 11,859 - 11,810 11,705 1
Interest-bearing
liabilities 7,235 6,556 10 7,304 6,578 11
Shareholders'
equity 1,436 1,418 1 1,456 1,377 6
Period-End
Balances: (In
millions)
Loans $10,020 $9,005 11
Assets 14,617 14,429 1
Core deposits 9,901 10,891 (9)
Deposits 11,892 12,116 (2)
Shareholders'
equity 1,458 1,417 3
Wealth Management:
(In millions) (1)
Assets under
management $27,381 $18,366 49
Assets under
management or
administration 48,488 38,784 25
(1) Excludes $7,808 and $6,543 million of assets under management for
the Convergent Capital Management asset managers in which City
National holds minority ownership interests as of September 30, 2006
and September 30, 2005, respectively.
CITY NATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three Months Ended
(Dollars in thousands
except per share data) September 30,
-----------------------------
2006 2005 % Change
- -------------------------------------- --------- --------- ---------
Interest income $208,347 $184,710 13
Interest expense 59,625 28,396 110
--------- ---------
Net Interest Income 148,722 156,314 (5)
Provision for Credit Losses - - -
Noninterest Income
Trust and investment fees 30,002 20,494 46
Brokerage and mutual fund fees 13,096 10,946 20
Cash management and deposit
transaction fees 7,967 8,370 (5)
International services 6,829 6,107 12
Bank-owned life insurance 685 1,017 (33)
Other service charges and fees 6,303 5,573 13
Gain (loss) on sale of assets 268 801 (67)
Gain (loss) on sale of securities (362) 241 (250)
--------- ---------
Total noninterest income 64,788 53,549 21
Noninterest Expense
Salaries and employee benefits 75,318 66,467 13
Net occupancy of premises 10,207 8,666 18
Legal and professional fees 9,120 10,672 (15)
Information services 4,932 4,471 10
Depreciation 4,832 4,551 6
Amortization of intangibles (37) 1,852 (102)
Marketing and advertising 4,495 4,182 7
Office services 2,623 2,578 2
Equipment 514 578 (11)
Minority interest expense 1,808 1,761 3
Other 6,857 6,862 (0)
--------- ---------
Total noninterest expense 120,669 112,640 7
--------- ---------
Income Before Taxes 92,841 97,223 (5)
Applicable Income Taxes 33,847 37,413 (10)
--------- ---------
Net Income $58,994 $59,810 (1)
========= =========
Other Data:
Earnings per common share - basic $1.23 $1.22 1
Earnings per common share - diluted $1.20 $1.17 3
Dividends paid per common share $0.41 $0.36 14
Dividend payout ratio 33.64% 29.82% 13
Return on average assets 1.61% 1.66% (3)
Return on average shareholders'
equity 16.30% 16.74% (3)
Net interest margin (Fully taxable-
equivalent) 4.53% 4.80% (6)
Full-time equivalent employees 2,672 2,516 6
Nine Months Ended
(Dollars in thousands
except per share data) September 30,
------------------------------
2006 2005 % Change
- --------------------------------------- ---------- --------- ---------
Interest income $612,743 $526,625 16
Interest expense 157,617 74,239 112
---------- ---------
Net Interest Income 455,126 452,386 1
Provision for Credit Losses (610) - -
Noninterest Income
Trust and investment fees 76,685 60,457 27
Brokerage and mutual fund fees 37,049 30,754 20
Cash management and deposit
transaction fees 23,722 26,254 (10)
International services 19,688 16,903 16
Bank-owned life insurance 2,296 2,533 (9)
Other service charges and fees 18,968 16,039 18
Gain (loss) on sale of assets 268 986 (73)
Gain (loss) on sale of securities (370) 1,340 (128)
---------- ---------
Total noninterest income 178,306 155,266 15
Noninterest Expense
Salaries and employee benefits 220,652 196,938 12
Net occupancy of premises 28,679 25,009 15
Legal and professional fees 27,706 30,177 (8)
Information services 13,959 12,697 10
Depreciation 14,154 13,656 4
Amortization of intangibles 3,828 4,734 (19)
Marketing and advertising 13,501 11,699 15
Office services 7,863 7,755 1
Equipment 1,769 1,773 (0)
Minority interest expense 4,249 5,104 (17)
Other 18,804 20,366 (8)
---------- ---------
Total noninterest expense 355,164 329,908 8
---------- ---------
Income Before Taxes 278,878 277,744 0
Applicable Income Taxes 103,911 104,766 (1)
---------- ---------
Net Income $174,967 $172,978 1
========== =========
Other Data:
Earnings per common share - basic $3.59 $3.52 2
Earnings per common share - diluted $3.47 $3.39 2
Dividends paid per common share $1.23 $1.08 14
Dividend payout ratio 34.57% 30.87% 12
Return on average assets 1.59% 1.65% (3)
Return on average shareholders'
equity 16.06% 16.80% (4)
Net interest margin (Fully taxable-
equivalent) 4.60% 4.76% (3)
Full-time equivalent employees
CITY NATIONAL CORPORATION
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(unaudited)
2006
---------------------------------------
(Dollars in thousands except Third Second First Year to
per share data) Quarter Quarter Quarter Date
- ------------------------------ --------- --------- --------- ---------
Interest Income $208,347 $206,204 $198,192 $612,743
Interest Expense 59,625 52,206 45,786 157,617
--------- --------- --------- ---------
Net Interest Income 148,722 153,998 152,406 455,126
Provision for Credit Losses - (610) - (610)
Noninterest Income
Trust and investment fees 30,002 24,909 21,774 76,685
Brokerage and mutual fund
fees 13,096 12,269 11,684 37,049
Cash management and
deposit transaction fees 7,967 7,691 8,064 23,722
International services 6,829 6,870 5,989 19,688
Bank-owned life insurance 685 677 934 2,296
Other service charges and
fees 6,303 6,888 5,777 18,968
Gain (loss) on sale of assets 268 - - 268
Gain (loss) on sale of
securities (362) (716) 708 (370)
--------- --------- --------- ---------
Total noninterest income 64,788 58,588 54,930 178,306
Noninterest Expense
Salaries and employee
benefits 75,318 73,718 71,616 220,652
Net occupancy of premises 10,207 9,460 9,012 28,679
Legal and professional fees 9,120 9,169 9,417 27,706
Information services 4,932 4,571 4,456 13,959
Depreciation 4,832 4,662 4,660 14,154
Amortization of intangibles (37) 1,974 1,891 3,828
Marketing and advertising 4,495 4,990 4,016 13,501
Office services 2,623 2,549 2,691 7,863
Equipment 514 623 632 1,769
Minority interest expense 1,808 1,213 1,228 4,249
Other 6,857 6,243 5,704 18,804
--------- --------- --------- ---------
Total noninterest expense 120,669 119,172 115,323 355,164
--------- --------- --------- ---------
Income Before Taxes 92,841 94,024 92,013 278,878
Applicable Income Taxes 33,847 35,283 34,781 103,911
--------- --------- --------- ---------
Net Income $58,994 $58,741 $57,232 $174,967
========= ========= ========= =========
Other Data:
Earnings per common share -
basic $1.23 $1.20 $1.16 $3.59
Earnings per common share -
diluted $1.20 $1.16 $1.12 $3.47
Dividends paid per common
share $0.41 $0.41 $0.41 $1.23
Dividend payout ratio 33.64% 34.43% 35.65% 34.57%
Return on average assets 1.61% 1.59% 1.57% 1.59%
Return on average
shareholders' equity 16.30% 16.20% 15.68% 16.06%
Net interest margin (Fully
taxable-equivalent) 4.53% 4.65% 4.62% 4.60%
Full-time equivalent
employees 2,672 2,648 2,570
CITY NATIONAL CORPORATION
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(unaudited)
2005
-------------------------------------------------
(Dollars in
thousands except Fourth Third Second First
per share data) Quarter Quarter Quarter Quarter Full Year
- -------------------- --------- --------- --------- --------- ---------
Interest Income $191,927 $184,710 $174,265 $167,650 $718,552
Interest Expense 31,886 28,396 24,619 21,224 106,125
--------- --------- --------- --------- ---------
Net Interest Income 160,041 156,314 149,646 146,426 612,427
Provision for Credit
Losses - - - - -
Noninterest Income
Trust and
investment fees 20,362 20,494 20,119 19,844 80,818
Brokerage and
mutual fund fees 11,174 10,946 9,931 9,877 41,927
Cash management and
deposit
transaction fees 7,842 8,370 8,874 9,010 34,096
International
services 6,256 6,107 5,908 4,888 23,159
Bank-owned life
insurance 670 1,017 652 864 3,203
Other service
charges and fees 6,591 5,573 4,869 5,597 22,632
Gain on sale of
assets 81 801 162 23 1,067
Gain (loss) on sale
of securities (53) 241 844 255 1,287
--------- --------- --------- --------- ---------
Total noninterest
income 52,923 53,549 51,359 50,358 208,189
Noninterest Expense
Salaries and
employee benefits 66,460 66,467 63,839 66,632 263,398
Net occupancy of
premises 10,074 8,666 8,727 7,616 35,083
Legal and
professional fees 11,419 10,672 10,791 8,714 41,596
Information
services 4,299 4,471 4,015 4,211 16,996
Depreciation 4,778 4,551 4,535 4,570 18,434
Amortization of
intangibles 1,865 1,852 1,441 1,441 6,595
Marketing and
advertising 4,472 4,182 3,943 3,574 16,171
Office services 2,942 2,578 2,688 2,489 10,697
Equipment 582 578 646 549 2,355
Minority interest
expense 571 1,761 1,532 1,811 5,675
Other 6,690 6,862 6,796 6,708 27,060
--------- --------- --------- --------- ---------
Total noninterest
expense 114,152 112,640 108,953 108,315 444,060
--------- --------- --------- --------- ---------
Income Before Taxes 98,812 97,223 92,052 88,469 376,556
Applicable Income
Taxes 37,055 37,413 34,345 33,008 141,821
--------- --------- --------- --------- ---------
Net Income $61,757 $59,810 $57,707 $55,461 $234,735
========= ========= ========= ========= =========
Other Data:
Earnings per common
share - basic $1.25 $1.22 $1.18 $1.13 $4.77
Earnings per common
share - diluted $1.21 $1.17 $1.13 $1.09 $4.60
Dividends paid per
common share $0.36 $0.36 $0.36 $0.36 $1.44
Dividend payout
ratio 28.89% 29.82% 30.86% 32.02% 30.35%
Return on average
assets 1.69% 1.66% 1.65% 1.62% 1.66%
Return on average
shareholders'
equity 17.15% 16.74% 17.03% 16.63% 16.89%
Net interest margin
(Fully taxable-
equivalent) 4.85% 4.80% 4.73% 4.75% 4.79%
Full-time
equivalent
employees 2,539 2,516 2,477 2,445
CITY NATIONAL CORPORATION
CONSOLIDATED PERIOD END BALANCE SHEET
(unaudited)
2006
--------------------------------------
Third Second First
(In thousands) Quarter Quarter Quarter
- ------------------------------- ------------ ------------ ------------
Assets
Cash and due from banks $457,396 $467,076 $457,156
Federal funds sold 3,300 1,900 -
Due from banks - interest-
bearing 65,323 50,416 48,890
Securities-available-for-sale 3,175,230 3,211,590 3,850,173
Trading account securities 116,870 123,418 57,353
Loans:
Commercial 3,782,781 3,738,361 3,698,614
Commercial real estate
mortgages 2,066,373 2,032,698 1,891,517
Residential mortgages 2,830,761 2,769,340 2,700,966
Real estate construction 757,742 723,570 748,696
Equity lines of credit 384,830 364,312 339,348
Installment 197,871 193,474 188,262
------------ ------------ ------------
Total loans 10,020,358 9,821,755 9,567,403
Allowance for loan and lease
losses (159,063) (157,580) (156,482)
------------ ------------ ------------
Net loans 9,861,295 9,664,175 9,410,921
Premises and equipment, net 88,582 84,802 84,884
Goodwill and other intangibles 298,471 298,004 283,642
Other assets 550,291 575,686 546,365
------------ ------------ ------------
Total assets $14,616,758 $14,477,067 $14,739,384
============ ============ ============
Liabilities:
Deposits:
Noninterest-bearing $5,639,811 $5,880,630 $5,945,485
Interest-bearing 6,252,206 6,098,200 5,963,044
------------ ------------ ------------
Total deposits 11,892,017 11,978,830 11,908,529
Federal funds purchased and
securities sold under
repurchase agreements 506,962 234,995 526,920
Other short-term borrowed
funds 72,426 143,724 151,522
Subordinated debt 278,031 266,675 269,785
Other long-term debt 209,814 209,864 213,819
Minority interest 28,578 27,985 25,225
Other liabilities 170,710 206,929 164,020
------------ ------------ ------------
Total liabilities 13,158,538 13,069,002 13,259,820
Shareholders' Equity
Common stock 50,729 50,735 50,693
Additional paid-in capital 404,163 402,476 399,976
Retained earnings 1,235,959 1,196,812 1,158,290
Accumulated other
comprehensive loss (46,400) (86,931) (73,250)
Treasury shares (186,231) (155,027) (56,145)
------------ -------------------------
Total shareholders' equity 1,458,220 1,408,065 1,479,564
------------ -------------------------
Total liabilities and
shareholders' equity $14,616,758 $14,477,067 $14,739,384
============ ============ ============
CITY NATIONAL CORPORATION
CONSOLIDATED PERIOD END BALANCE SHEET
(unaudited)
2005
---------------------------------------------------
Fourth Third Second First
(In thousands) Quarter Quarter Quarter Quarter
- ------------------ ------------ ------------ ------------ ------------
Assets
Cash and due from
banks $365,217 $438,786 $406,709 $386,999
Federal funds
sold 157,000 185,000 400,000 190,000
Due from banks -
interest-bearing 40,803 39,485 34,676 36,982
Securities-
available-for-
sale 3,999,261 4,030,296 4,057,267 4,018,969
Trading account
securities 59,344 42,634 22,337 37,490
Loans:
Commercial 3,505,576 3,367,607 3,311,059 3,082,663
Commercial real
estate
mortgages 1,860,262 1,841,111 1,826,379 1,848,512
Residential
mortgages 2,644,030 2,571,537 2,485,177 2,405,732
Real estate
construction 721,890 711,755 724,895 759,090
Equity lines of
credit 333,548 317,703 310,101 274,735
Installment 200,296 195,168 212,064 201,821
------------ ------------ ------------ ------------
Total loans 9,265,602 9,004,881 8,869,675 8,572,553
Allowance for
loan and lease
losses (153,983) (152,920) (147,930) (147,607)
------------ ------------ ------------ ------------
Net loans 9,111,619 8,851,961 8,721,745 8,424,946
Premises and
equipment, net 82,868 76,754 73,169 68,354
Goodwill and
other
intangibles 284,124 285,553 289,675 291,116
Other assets 481,624 478,975 470,020 463,182
------------ ------------------------- ------------
Total assets $14,581,860 $14,429,444 $14,475,598 $13,918,038
============ ========================= ============
Liabilities:
Deposits:
Noninterest-
bearing $6,562,038 $6,345,907 $6,468,339 $6,069,061
Interest-bearing 5,576,434 5,769,807 5,683,869 5,693,563
------------ ------------ ------------ ------------
Total deposits 12,138,472 12,115,714 12,152,208 11,762,624
Federal funds
purchased and
securities sold
under repurchase
agreements 190,190 191,036 204,052 155,645
Other short-term
borrowed funds 100,000 26,197 27,678 125
Subordinated debt 275,682 278,076 285,771 280,068
Other long-term
debt 219,445 221,168 233,290 224,829
Minority interest 24,351 24,856 25,400 25,525
Other liabilities 175,712 155,220 146,311 149,039
------------ ------------ ------------ ------------
Total
liabilities 13,123,852 13,012,267 13,074,710 12,597,855
Shareholders'
Equity
Common stock 50,601 50,601 50,640 50,712
Additional paid-
in capital 396,659 398,289 398,981 399,612
Retained earnings 1,121,474 1,077,561 1,035,589 995,688
Accumulated other
comprehensive
(loss) (51,551) (36,879) (12,948) (43,288)
Treasury shares (59,175) (72,395) (71,374) (82,541)
------------ ------------ ------------ ------------
Total
shareholders'
equity 1,458,008 1,417,177 1,400,888 1,320,183
------------ ------------ ------------ ------------
Total
liabilities and
shareholders'
equity $14,581,860 $14,429,444 $14,475,598 $13,918,038
============ ============ ============ ============
CITY NATIONAL CORPORATION
CREDIT LOSS EXPERIENCE
(unaudited)
2006
---------------------------------------
Third Second First Year To
(Dollars in thousands) Quarter Quarter Quarter Date
- ---------------------------- --------- --------- --------- ---------
Allowance for Loan and Lease Losses
Balance at beginning of
period $157,580 $156,482 $153,983 $153,983
Net (charge-
offs)/recoveries:
Commercial 1,912 1,122 1,792 4,826
Commercial real estate
mortgages - 11 844 855
Residential mortgages - - - -
Real estate construction 18 17 16 51
Equity lines of credit (11) - - (11)
Installment 10 11 4 25
--------- --------- --------- ---------
Total net (charge-
offs)/recoveries 1,929 1,161 2,656 5,746
Provision for credit
losses/transfers (446) (63) (157) (666)
--------- --------- --------- ---------
Balance at end of period $159,063 $157,580 $156,482 $159,063
========= ========= ========= =========
Net (Charge-Offs)/Recoveries to Average Total Loans: (annualized)
Commercial 0.20 % 0.11 % 0.19 % 0.17 %
Commercial real estate
mortgages 0.00 % 0.00 % 0.18 % 0.06 %
Residential mortgage 0.00 % 0.00 % 0.00 % 0.00 %
Real estate construction 0.01 % 0.01 % 0.01 % 0.01 %
Equity lines of credit (0.01)% 0.00 % 0.00 % (0.00)%
Installment 0.02 % 0.02 % 0.01 % 0.02 %
Total loans 0.08 % 0.05 % 0.11 % 0.08 %
Reserve for Off-Balance Sheet Credit Commitments
Balance at beginning of
period $15,206 $15,753 $15,596 $15,596
Provision for credit
losses/transfers 446 (547) 157 56
--------- --------- --------- ---------
Balance at end of period $15,652 $15,206 $15,753 $15,652
========= ========= ========= =========
2005
---------------------------------------------------
(Dollars in Fourth Third Second First
thousands) Quarter Quarter Quarter Quarter Full Year
- ----------------------------- --------- --------- --------- ---------
Allowance for Loan
and Lease Losses
Balance at
beginning of
period $152,920 $147,930 $147,607 $148,568 $148,568
Net
(charge-
offs)/recoveries:
Commercial 2,085 4,213 1,067 2,117 9,482
Commercial real
estate mortgages 7 324 7 (1,893) (1,555)
Residential
mortgages - - 1 2 3
Real estate
construction 15 1,192 71 23 1,301
Equity lines of
credit - - 39 1 40
Installment (11) 13 5 (18) (11)
----------- --------- --------- --------- ---------
Total net
(charge-
offs)/recoveries 2,096 5,742 1,190 232 9,260
Provision for
credit
losses/transfers (1,033) (752) (867) (1,193) (3,845)
----------- --------- --------- --------- ---------
Balance at end of
period $153,983 $152,920 $147,930 $147,607 $153,983
=========== ========= ========= ========= =========
Net (Charge-
Offs)/Recoveries
to Average Total
Loans:
(annualized)
Commercial 0.24 % 0.50 % 0.13 % 0.28 % 0.29 %
Commercial real
estate mortgages 0.00 % 0.07 % 0.00 % (0.41)% (0.09)%
Residential
mortgage 0.00 % 0.00 % 0.00 % 0.00 % 0.00 %
Real estate
construction 0.01 % 0.65 % 0.04 % 0.01 % 0.17 %
Equity lines of
credit 0.00 % 0.00 % 0.05 % 0.00 % 0.01 %
Installment (0.02)% 0.02 % 0.01 % (0.03)% (0.01)%
Total loans 0.09 % 0.25 % 0.05 % 0.01 % 0.10 %
Reserve for Off-
Balance Sheet
Credit
Commitments
Balance at
beginning of
period $14,563 $13,811 $12,944 $11,751 $11,751
Provision for
credit
losses/transfers 1,033 752 867 1,193 3,845
---------- --------- --------- --------- ---------
Balance at end of
period $15,596 $14,563 $13,811 $12,944 $15,596
=========== ========= ========= ========= =========
CITY NATIONAL CORPORATION
NONPERFORMING ASSETS
(unaudited)
2006
----------------------------
Third Second First
(Dollars in thousands) Quarter Quarter Quarter
- ----------------------------------------- -------- --------- ---------
Nonaccrual Loans
Commercial $10,416 $6,691 $5,642
Commercial real estate mortgages 8,094 3,644 923
Residential mortgages - - -
Real estate construction - 4,617 7,492
Equity lines of credit - - -
Installment 269 49 498
-------- --------- ---------
Total nonaccrual loans 18,779 15,001 14,555
Other Nonperforming Assets - - -
-------- --------- ---------
Total nonperforming assets $18,779 $15,001 $14,555
======== ========= =========
Loans 90 Days or More Past Due
on Accrual Status $27 $18 $-
Allowance for loan and lease losses as a percentage of:
Nonaccrual loans 847.03% 1,050.47% 1,075.11%
Total nonperforming assets 847.03% 1,050.47% 1,075.11%
Total loans 1.59% 1.60% 1.64%
Nonaccrual loans as a percentage of total
loans 0.19% 0.15% 0.15%
Nonperforming assets as a percentage of:
Total loans and other nonperforming
assets 0.19% 0.15% 0.15%
Total assets 0.13% 0.10% 0.10%
2005
------------------------------------
Fourth Third Second First
(Dollars in thousands) Quarter Quarter Quarter Quarter
- -------------------------------- --------- -------- -------- --------
Nonaccrual Loans
Commercial $5,141 $14,917 $17,982 $25,117
Commercial real estate
mortgages 923 955 1,543 1,945
Residential mortgages 294 2,259 1,990 1,990
Real estate construction 7,650 - - -
Equity lines of credit 21 22 22 212
Installment 371 401 624 654
--------- -------- -------- --------
Total nonaccrual loans 14,400 18,554 22,161 29,918
Other Nonperforming Assets - - - -
--------- -------- -------- --------
Total nonperforming assets $14,400 $18,554 $22,161 $29,918
========= ======== ======== ========
Loans 90 Days or More Past Due
on Accrual Status $- $- $103 $807
Allowance for loan and lease
losses as a percentage of:
Nonaccrual loans 1,069.33% 824.19% 667.52% 493.37%
Total nonperforming assets 1,069.33% 824.19% 667.52% 493.37%
Total loans 1.66% 1.70% 1.67% 1.72%
Nonaccrual loans as a percentage
of total loans 0.16% 0.21% 0.25% 0.35%
Nonperforming assets as a
percentage of:
Total loans and other
nonperforming assets 0.16% 0.21% 0.25% 0.35%
Total assets 0.10% 0.13% 0.15% 0.21%
CITY NATIONAL CORPORATION
AVERAGE BALANCES AND RATES
(unaudited)
2006
--------------------------------------------
Third Quarter Second Quarter
---------------- ----------------
Average Average Average Average
(Dollars in millions) Balance Rate Balance Rate
- --------------------------------------------- ------- -------- -------
Assets
Interest-earning assets
Loans
Commercial $3,827 7.05 % $3,933 6.85 %
Commercial real estate mortgages 2,055 7.48 1,943 7.58
Residential mortgages 2,801 5.38 2,737 5.31
Real estate construction 761 9.37 743 9.14
Equity lines of credit 375 7.91 352 7.63
Installment 194 7.58 195 7.72
-------- --------
Total loans 10,013 6.88 9,903 6.79
Due from banks - interest-bearing 61 2.55 46 2.31
Federal funds sold and securities
purchased under resale agreements 3 7.13 51 4.77
Securities available-for-sale 3,191 4.63 3,529 4.55
Trading account securities 54 5.22 52 6.61
-------- --------
Total interest-earning assets 13,322 6.30 13,581 6.19
Allowance for loan and lease losses (158) (157)
Cash and due from banks 428 443
Other assets 953 915
-------- --------
Total assets $14,545 $14,782
======== ========
Liabilities and Shareholders' Equity
Interest-bearing deposits
Interest checking accounts $706 0.36 % $757 0.27 %
Money market accounts 3,224 2.57 3,352 2.13
Savings deposits 163 0.41 174 0.37
Time deposits - under $100,000 184 3.87 176 3.00
Time deposits - $100,000 and over 1,999 4.55 1,652 4.07
-------- --------
Total interest-bearing deposits 6,276 2.93 6,111 2.40
Federal funds purchased and
securities
sold under repurchase agreements 401 5.26 546 4.93
Other borrowings 558 5.63 652 5.51
-------- --------
Total interest-bearing liabilities 7,235 3.27 7,309 2.86
Noninterest-bearing deposits 5,629 5,820
Other liabilities 245 199
Shareholders' equity 1,436 1,454
-------- --------
Total liabilities and
shareholders' equity $14,545 $14,782
======== ========
Net interest spread 3.03 % 3.33 %
====== ======
Net interest margin 4.53 % 4.65 %
====== ======
Average prime rate 8.25 % 7.90 %
====== ======
First Quarter Year to Date
---------------- ----------------
Average Average Average Average
(Dollars in millions) Balance Rate Balance Rate
- ------------------------------------ -------- ------- -------- -------
Assets
Interest-earning assets
Loans
Commercial $3,813 6.62 % 3,858 6.84 %
Commercial real estate mortgages 1,872 7.35 1,957 7.47
Residential mortgages 2,666 5.27 2,735 5.32
Real estate construction 743 8.58 749 9.04
Equity lines of credit 334 7.17 354 7.59
Installment 197 7.41 195 7.57
-------- --------
Total loans 9,625 6.59 9,848 6.76
Due from banks - interest-bearing 44 1.98 51 2.31
Federal funds sold and securities
purchased under resale agreements 13 4.32 22 4.79
Securities available-for-sale 3,926 4.47 3,546 4.55
Trading account securities 44 5.26 50 5.70
-------- --------
Total interest-earning assets 13,652 5.98 13,517 6.16
Allowance for loan and lease
losses (155) (157)
Cash and due from banks 439 436
Other assets 891 921
-------- --------
Total assets $14,827 $14,717
======== ========
Liabilities and Shareholders' Equity
Interest-bearing deposits
Interest checking accounts $808 0.23 % $757 0.28 %
Money market accounts 3,388 1.81 3,321 2.17
Savings deposits 179 0.37 172 0.38
Time deposits - under $100,000 180 2.59 180 3.16
Time deposits - $100,000 and over 1,254 3.42 1,638 4.10
-------- --------
Total interest-bearing deposits 5,809 1.92 6,068 2.43
Federal funds purchased and
securities
sold under repurchase agreements 809 4.48 584 4.80
Other borrowings 749 5.09 652 5.39
-------- --------
Total interest-bearing
liabilities 7,367 2.52 7,304 2.89
Noninterest-bearing deposits 5,779 5,742
Other liabilities 200 215
Shareholders' equity 1,481 1,456
-------- --------
Total liabilities and
shareholders' equity $14,827 $14,717
======== ========
Net interest spread 3.46 % 3.27 %
====== ======
Net interest margin 4.62 % 4.60 %
====== ======
Average prime rate 7.43 % 7.86 %
====== ======
CITY NATIONAL CORPORATION
AVERAGE BALANCES AND RATES
(unaudited)
2005
-----------------------------------------
Fourth Quarter Third Quarter Second Quarter
---------------- ---------------- -----------------
(Dollars in Average Average Average Average Average Average
millions) Balance Rate Balance Rate Balance Rate
- ------------------ -------- ------- -------- ------- -------- -------
Assets
Interest-earning
assets
Loans
Commercial $3,517 6.48% $3,376 6.21% $3,215 6.01%
Commercial real
estate
mortgages 1,849 7.28 1,829 7.47 1,856 7.01
Residential
mortgages 2,603 5.23 2,519 5.25 2,444 5.19
Real estate
construction 727 8.36 725 7.98 728 7.37
Equity lines of
credit 322 6.77 310 6.10 297 5.70
Installment 192 7.19 204 7.05 208 7.12
-------- -------- --------
Total loans 9,210 6.45 8,963 6.34 8,748 6.13
Due from banks -
interest-
bearing 44 1.63 41 1.45 37 1.24
Federal funds
sold and
securities
purchased under
resale
agreements 23 4.23 65 3.70 80 2.76
Securities
available-for-
sale 4,012 4.37 4,030 4.26 4,034 4.25
Trading account
securities 39 5.13 37 3.95 37 3.25
-------- -------- --------
Total interest-
earning assets 13,328 5.80 13,136 5.67 12,936 5.50
Allowance for
loan and lease
losses (153) (151) (148)
Cash and due
from banks 451 441 443
Other assets 842 830 810
-------- -------- --------
Total assets $14,468 $14,256 $14,041
======== ======== ========
Liabilities and
Shareholders'
Equity
Interest-bearing
deposits
Interest
checking
accounts $813 0.21% $795 0.14% $849 0.08%
Money market
accounts 3,471 1.49 3,507 1.30 3,568 1.15
Savings deposits 186 0.29 196 0.29 199 0.28
Time deposits -
under $100,000 189 2.62 183 2.03 181 0.98
Time deposits -
$100,000 and
over 1,136 2.78 1,074 2.87 897 2.84
-------- -------- --------
Total interest-
bearing
deposits 5,795 1.56 5,755 1.42 5,694 1.22
Federal funds
purchased and
securities
sold under
repurchase
agreements 289 3.79 256 3.25 315 2.88
Other borrowings 552 4.55 545 4.13 518 3.85
-------- -------- --------
Total interest-
bearing
liabilities 6,636 1.91 6,556 1.72 6,527 1.51
Noninterest-
bearing deposits 6,205 6,104 5,985
Other liabilities 198 178 170
Shareholders'
equity 1,429 1,418 1,359
-------- -------- --------
Total
liabilities and
shareholders'
equity $14,468 $14,256 $14,041
======== ======== ========
Net interest
spread 3.89% 3.95% 3.99%
======= ======= =======
Net interest
margin 4.85% 4.80% 4.73%
======= ======= =======
Average prime rate 6.97% 6.42% 5.91%
======= ======= =======
First Quarter Full Year
----------------- ----------------
-Average Average Average Average
(Dollars in millions) Balance Rate Balance Rate
- --------------------------------------------- ------- -------- -------
Assets
Interest-earning assets
Loans
Commercial $3,112 5.75% 3,306 6.13%
Commercial real estate mortgages 1,818 7.02 1,838 7.20
Residential mortgages 2,354 5.18 2,481 5.21
Real estate construction 817 6.74 749 7.59
Equity lines of credit 265 5.42 299 6.03
Installment 206 6.28 202 6.93
--------- --------
Total loans 8,572 5.98 8,875 6.23
Due from banks - interest-bearing 65 1.34 47 1.42
Federal funds sold and securities
purchased under resale agreements 33 2.59 50 3.22
Securities available-for-sale 4,078 4.38 4,038 4.32
Trading account securities 38 2.40 38 3.71
--------- --------
Total interest-earning assets 12,786 5.43 13,048 5.60
Allowance for loan and lease
losses (149) (150)
Cash and due from banks 441 444
Other assets 795 819
--------- --------
Total assets $13,873 $14,161
========= ========
Liabilities and Shareholders' Equity
Interest-bearing deposits
Interest checking accounts $858 0.09% $828 0.13%
Money market accounts 3,690 1.00 3,558 1.23
Savings deposits 205 0.24 197 0.27
Time deposits - under $100,000 182 1.69 184 1.65
Time deposits - $100,000 and over 944 2.19 1,013 2.72
--------- --------
Total interest-bearing deposits 5,879 1.05 5,780 1.32
Federal funds purchased and
securities
sold under repurchase agreements 254 2.33 278 3.08
Other borrowings 519 3.53 534 4.03
--------- --------
Total interest-bearing
liabilities 6,652 1.29 6,592 1.61
Noninterest-bearing deposits 5,694 5,999
Other liabilities 175 180
Shareholders' equity 1,352 1,390
--------- --------
Total liabilities and
shareholders' equity $13,873 $14,161
======== ========
Net interest spread 4.14% 3.99%
======= =======
Net interest margin 4.75% 4.79%
======= =======
Average prime rate 5.44% 6.19%
======= =======
CITY NATIONAL CORPORATION
AVERAGE BALANCES AND RATES
(unaudited)
2006
---------------------------------------
Third Second First Year To
Quarter Quarter Quarter Date
-------- -------- -------- -------
Per Common Share:
- ------------------------------
Shares Outstanding (in
thousands):
Average - Basic 47,919 48,957 49,484 48,786
Average - Diluted 49,318 50,654 51,309 50,424
Period-End 47,639 48,115 49,535
Book Value $30.61 $29.26 $29.87
Price:
High $68.41 $78.25 $78.25 $78.25
Low 63.69 60.02 71.95 60.02
Period-end 67.06 65.09 76.79
Capital Ratios (Dollars in
millions):
- ------------------------------
Risk-based capital
Risk-adjusted assets $10,999 $10,811 $10,473
Tier I capital $1,229 $1,221 $1,295
Percentage of risk adjusted
assets 11.18 % 11.29 % 12.36 %
Total capital $1,563 $1,552 $1,624
Percentage of risk adjusted
assets 14.21 % 14.36 % 15.51 %
Tier I leverage ratio 8.66 % 8.45 % 8.92 %
Period-end shareholders'
equity to total period-end
assets 9.98 % 9.73 % 10.04 %
Period-end tangible
shareholders' equity to
total period-end tangible
assets 8.10 % 7.83 % 8.27 %
Average shareholders' equity
to total average assets 9.87 % 9.84 % 9.99 % 9.89 %
Average tangible
shareholders' equity to
total average tangible
assets 7.99 % 8.04 % 8.23 % 8.09 %
2005
-----------------------------------------------
Fourth Third Second First Full
Quarter Quarter Quarter Quarter Year
-------- -------- -------- -------- --------
Per Common Share:
- ----------------------
Shares Outstanding
(in thousands):
Average - Basic 49,238 49,198 49,090 49,162 49,159
Average - Diluted 51,053 51,123 51,043 51,030 51,062
Period-End 49,347 49,117 49,145 48,958
Book Value $29.55 $28.85 $28.51 $26.97
Price:
High $75.12 $76.10 $72.90 $71.35 $76.10
Low 66.39 68.42 66.84 67.49 66.39
Period-end 72.44 70.09 71.71 69.82
Capital Ratios
(Dollars in
millions):
- ----------------------
Risk-based capital
Risk-adjusted assets $10,148 $9,802 $9,663 $9,410
Tier I capital $1,251 $1,195 $1,151 $1,100
Percentage of risk
adjusted assets 12.33 % 12.19 % 11.91 % 11.69 %
Total capital $1,576 $1,539 $1,493 $1,437
Percentage of risk
adjusted assets 15.53 % 15.70 % 15.45 % 15.27 %
Tier I leverage ratio 8.82 % 8.58 % 8.39 % 8.12 %
Period-end
shareholders' equity
to total period-end
assets 10.00 % 9.82 % 9.68 % 9.49 %
Period-end tangible
shareholders' equity
to total period-end
tangible assets 8.21 % 8.00 % 7.83 % 7.55 %
Average shareholders'
equity to total
average assets 9.88 % 9.94 % 9.68 % 9.75 % 9.81 %
Average tangible
shareholders' equity
to total average
tangible assets 8.07 % 8.08 % 7.77 % 7.80 % 7.93 %
Senior Debt Credit Ratings
- ----------------------------------------
For The Period Ended September 30, 2006
Standard
&
Moody's Fitch Poor's DBRS
------- ----- -------- ------
City National Bank A2 A- A A
City National Corporation A3 A- A- A(low)
CONTACT: City National
Financial/Investors:
Christopher J. Carey, 310-888-6777
Chris.Carey@cnb.com
Media:
Cary Walker, 213-673-7615
Cary.Walker@cnb.com
or
Conference Call:
Today 2:00 p.m. PDT
800-638-4817
Pass Code: 56231258