City National: Safe, Sound, Strong
& Well-Capitalized

On July 22, City National Corporation recorded its 69th consecutive quarter of profitability, earning $41.3 million on revenue of $304.5 million. In the second quarter:

• Revenue grew 39% from the second quarter of 2009.
• Total assets increased 20% to $21.2 billion, making City National the nation’s 26th largest bank.
• Average deposits grew 26% to a new record of $17.6 billion, reflecting the continuing confidence of our depositors and the recent FDIC-assisted acquisitions of 1st Pacific Bank of California and Sun West Bank.
• Credit quality continued to improve for the third consecutive quarter.

City National's financial condition is strong, and we continue to invest in our capabilities, services, products and people. As a result, the company is extremely well-positioned for economic recovery.

Capital

One key measure of a bank's financial strength is its capital ratios. A strong capital position can enable a bank to withstand the kinds of economic challenges we continue to see today.

At June 30, 2010, City National Corporation had $1.9 billion in total equity and capital ratios that easily exceeded regulatory standards.

The company's ratio of Tier 1 common shareholders' equity to risk-based assets was 9.7% at the end of the second quarter, up from 9.4% at March 31, 2010.

Credit Ratings

Credit ratings are another indicator of financial strength, and City National's credit ratings remain strong. Fewer than 1% of the nation's banks can claim a double-A rating from Moody's Investors Service – and City National Bank is one of them.

Conservative Management

City National maintains a conservative risk profile and, as a result, has avoided many of the highly publicized problems affecting other financial institutions. We have:

• No subprime mortgages
• No subprime collateralized debt obligations
• No credit default swaps
• No significant concerns about auto loans, consumer credit card debt, home equity lines or residential mortgage debt

Industry Rankings

City National has earned a strong reputation as a company that is safe and sound, conservatively managed, consistently profitable and well-capitalized.

City National is:

• Recognized by Barron's as one of America's top wealth managers nine years in a row.
• Recognized for excellence in both small- business and middle-market banking by Greenwich Associates.
• Rated four stars (on a scale of zero to five, with five stars being the strongest) by BauerFinancial, an independent bank-rating service.

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This document 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. Such statements involve risks and uncertainties, and future activities and results may differ materially from these expectations. For a more complete discussion of the risks and uncertainties that may cause actual results to differ materially from expected results, see the company's Annual Report on Form 10-K for the year ended December 31, 2009.