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

The federal government recently conducted an unprecedented review of the nation's 19 largest banks to gauge their stability. City National was not included in these "stress tests." However, we believe that our company has the capital, liquidity and the conservative risk profile needed to guard against any anticipated further deepening of this recession.

With assets of nearly $17 billion, our company has an exceptional deposit base, a premier clientele and a strong balance sheet. It is:

• Well-capitalized
• Double-A rated (Moody's, Aa3)
• Consistently profitable
• FDIC-insured

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 see today. At March 31, 2009,City National had $2 billion in capital and capital ratios that easily exceeded the regulatory standards that define a well-capitalized institution. The company's Tier 1 common risk-based ratio – a key measure of any bank's financial condition – now stands at 9.7%*, more than twice the minimum regulatory requirement of 4.0%.

Credit Ratings
Another important measure of any bank's financial strength is its credit ratings. City National's credit ratings remain strong. In fact, less than 1% of the nation's banks can claim a double-A rating from Moody's Investors Service – and City National is one of them. Another ratings agency, Standard & Poor's, recently lowered City National's counterparty and debt ratings by one notch in an industry review of large banking companies. S&P said that its downgrade reflects the increasing credit pressure that banking companies are experiencing generally. S&P also said that it continues to view favorably City National's capital position, revenue diversification and funding profile.

Conservative Management
City National has avoided 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

Successful Equity Offering
Wall Street's enthusiastic response to City National's equity offering in early May signals strong investor confidence in the company's value proposition and prospects for growth. Our underwriters said it was perhaps the most successful stock offering they have seen this year, with demand reaching nearly six times the number of shares offered for sale by the company. Proceeds from the offering will exceed $100 million, and while our capital ratios – even before the offering – easily exceeded government standards for a well-capitalized institution, they will further strengthen the company's fortress-like balance sheet. It's also an important step toward the company's objective of redeeming preferred shares and warrants held by the U.S. Treasury Department. The department purchased $400 million of these securities from City National late last year through its Capital Purchase Program. Redemption of the government's preferred investment is subject to regulatory approval, and City National has not yet submitted an application.

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:

• The 33rd largest bank in the U.S. with assets of nearly $17 billion.
• The second largest publicly traded bank based in California – the largest in Southern California.
• Ranked in the top quartile of the nation's 150 largest banks based on performance for four consecutive years by Bank Director magazine.
• Recognized by Barron's as one of America's top wealth managers eight years in a row.
• Recognized for excellence in both small- business and middle-market banking by Greenwich Associates.

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