Despite an economic recession in the United States and much of the world, despite the biggest one-year interest-rate decline in U.S. history and despite the September 11 terrorist attacks that indelibly affected us all, City National Corporation posted record earnings in 2001--for the sixth consecutive year.

We expanded our client relationships and product capabilities, enhanced our ability to serve selected markets throughout Southern California and the San Francisco Bay Area, kept a watchful eye on credit quality and further improved our productivity.

Our success stems from a value proposition that has flourished for nearly 50 years--one that combines exceptional service with a superior array of banking, trust and investment capabilities to produce complete financial solutions for a growing number of California entrepreneurs. It is this value proposition together with the strategies outlined above that have enabled City National to deliver consistent, quality earnings growth.

As we look to the future, we want to recognize three distinguished individuals who retired from our Boards of Directors in 2001. Ezunial Burts, Barry Meyer and Ed Sanders have made significant contributions to our success, and we are grateful for their service and counsel.

We are pleased to welcome to our Boards three outstanding individuals who bring considerable experience, expertise and judgment to our company. They are Ron Olson, partner at Munger, Tolles & Olson; Bill Richardson, former U.S. Secretary of Energy and Ambassador to the United Nations, who is now a senior managing director of Kissinger McLarty Associates; and Bob Tuttle, managing partner of Orange County-based Tuttle-Click Automotive Group.

We thank our many clients for their important relationships with City National, and commend our remarkable team of colleagues for the outstanding results they achieved again last year, not only for the company, its clients and shareholders, but also for the communities in which we live and work.

We want to acknowledge two colleagues, in particular: Jan Cloyde, the very effective Executive Vice President of Banking Services, who last year took on added responsibilities as a member of our senior-level Strategy and Planning Committee, and Mike Cahill, who joined our Executive Committee and became Executive Vice President and General Counsel. Jan and Mike are examples of the many remarkably talented and dedicated colleagues who can be found throughout our company.

Finally, we thank you, our fellow shareholders, for your continuing support and confidence. City National's strong performance again last year demonstrates that the reliable execution of our time-tested strategies does deliver consistent, quality earnings growth. For this reason and more, we have every confidence that City National will continue to build shareholder value in the future.

Sincerely,

Bram Goldsmith Chairman City National Corporation

Russell Goldsmith Vice Chairman and CEO City National Corporation Chairman and CEO City National Bank

March 7, 2002