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

On October 22, City National Corporation announced year-to-date earnings of $22.3 million on revenue of $642 million. The fact that City National remained profitable even in today's economy - and that it did so despite significantly higher costs - underscores the company's financial strength and its prospects for more robust earnings when conditions improve. In the third quarter:

• Assets reached an all-time high of $18.4 billion.
• Average deposits grew to a record $14.8 billion, as entrepreneurs, businesses and households turned to City National for a safe harbor in today's choppy economic waters.
• Lending grew as well. Our company renewed approximately $1.3 billion of loans and made new loan commitments of about $675 million.

Our company's financial condition is strong. City National is well-reserved, well-capitalized and 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 see today. At September 30, 2009, City National had $2.2 billion in capital and capital ratios that easily exceeded the regulatory standards that define a well-capitalized institution.

The company's ratio of Tier 1 common shareholders' equity to risk-based assets was 9.22% at the end of the third quarter – more than double the 4% guideline used by the federal government in its bank "stress tests."

This summer, the company continued to strengthen its balance sheet, adding $300 million of capital through very successful equity and subordinated debt offerings. Even before these offerings, the company's capital ratios easily exceeded government standards for a well-capitalized institution.

Credit Ratings

Credit ratings are another indicator of financial strength, and City National's credit ratings remain strong. 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.

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

Full FDIC Protection

City National provides its clients with the maximum deposit insurance available through the Federal Deposit Insurance Corporation (FDIC). Through June 30, 2010, all non-interest bearing transaction accounts and certain designated interest-bearing checking accounts are fully guaranteed for the entire amount in the account.

This supplemental insurance – paid for by City National and provided under the FDIC's voluntary Transaction Account Guarantee Program – is in addition to and separate from the standard coverage available under the FDIC's general deposit insurance rules.

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:

• Ranked in the top 25% 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 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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