City National Corp. Reports First-Quarter 2008 Net Income of $44 Million, or $0.91...

City National Corp. Reports First-Quarter 2008 Net Income of $44 Million, or
$0.91 Per Share

Revenue Up 7 Percent From First Quarter of 2007

Loans and Noninterest Income Grow At Double-Digit Rates
LOS ANGELES, April 17, 2008 (PRIME NEWSWIRE) -- City National Corporation
(NYSE:CYN), the parent company of wholly owned City National Bank, today
reported first-quarter 2008 net income of $44.0 million, or $0.91 per share. In
the first quarter of 2007, the company earned $1.15 per share on net income of
$56.5 million.

FIRST-QUARTER 2008 HIGHLIGHTS

* City National's first-quarter revenue grew to $228 million, up
7 percent from $213 million in the first quarter of 2007.

* Fully taxable-equivalent net interest income amounted to $152.3
million, up 1 percent from the first quarter of 2007. The
company's net interest margin averaged 4.26 percent in the first
quarter of 2008, compared to 4.42 percent in the fourth quarter of
2007.

* Average deposit balances were $11.5 billion, down 3 percent from
$11.9 billion in the first quarter of 2007. Average core deposits
grew 1 percent over the year-earlier period.

* Average loans reached $11.7 billion, up 11 percent from the same
period last year, due primarily to organic growth.

* Noninterest income totaled $79.8 million, up 21 percent from the
first quarter of 2007. Noninterest income accounts for 35 percent
of City National's total revenue.

* Assets under direct management amounted to $35.9 billion, a
33 percent increase from the first quarter of 2007. Assets under
management or administration grew 15 percent to $55.9 billion.

* City National's first-quarter return on average equity was
10.46 percent, and its return on average assets was 1.13 percent.

* First-quarter 2008 net income reflects a $17 million provision for
credit losses. (The company made no provision in the first quarter
of 2007.) Net charge-offs in the first quarter of this year
totaled $12.1 million, or 42 basis points of total loans. The
company's allowance for loan and lease losses amounted to
$168.3 million, or 1.43 percent of total loans.

* The company remained well capitalized. Its period-end ratio of
equity-to-total-assets at March 31, 2008 was 10.56 percent,
compared to 10.42 percent at both March 31 and December 31 of last
year.
"City National's first-quarter earnings in this economy were reduced by the
sharp drop in interest rates and additions to our credit reserves, due primarily
to the for-sale housing market," said President and Chief Executive Officer
Russell Goldsmith. "Nonetheless, the quarter was quite profitable and we remain
a well-capitalized, growing company with a strong balance sheet, an exceptional
deposit base and solid credit reserves.

"Not only does City National have no subprime mortgages or CDOs, or SIVs on its
balance sheet, looking forward we have no auto loans, consumer credit card or
home equity loans to be concerned about. Our company is well-positioned not only
to weather the current economic challenges, but also to take advantage of
prudent growth opportunities as competitive and economic conditions improve."

For the three For the three
Dollars in months ended months
millions, March 31, ended
except --------------------- % Dec. 31, %
per share 2008 2007 Change 2007 Change
-------------- ---------- ---------- ---------- ---------- ----------
Earnings
Per Share $ 0.91 $ 1.15 (21) $ 0.96 (5)
Net Income 44.0 56.5 (22) 46.9 (6)
Average
Assets 15,723.5 14,836.3 6 15,588.6 1
Return on
Average Assets 1.13% 1.55% (27) 1.19% (5)
Return on
Average Equity 10.46 15.10 (31) 11.28 (7)
ASSETS

Total assets at March 31, 2008 were $15.9 billion, up 4 percent from the first
quarter of 2007.

REVENUE

Revenue grew to $228.0 million, up 7 percent from the first quarter of 2007, due
principally to organic growth as well as the company's May 1, 2007 acquisition
of Convergent Wealth Advisors.

NET INTEREST INCOME

Fully taxable-equivalent net interest income was $152.3 million in the first
quarter, up $1.0 million from the same period last year.

First-quarter average loan balances reached $11.7 billion, up 11 percent from
the first quarter of 2007 and 2 percent from the fourth quarter of last year.
Commercial loans increased 1 percent from the fourth quarter, while commercial
real estate and construction loans together were up 3 percent. Average
single-family residential mortgage lending to City National's private banking
clients rose 1 percent.

Average securities for the first quarter of 2008 totaled $2.5 billion, down 15
percent from the same period last year. The average duration of total
available-for-sale securities at March 31, 2008 was 3.5 years, compared with 3.4
years at the end of the first quarter of 2007.

At March 31, 2008, City National's prime lending rate was 5.25 percent, down 200
basis points from December 31, 2007.

For the
For the three
three months ended months
March 31, ended
--------------------- % Dec. 31, %
Dollars in millions 2008 2007 Change 2007 Change
-------------------- --------- --------- ------ --------- ------
Average Loans $11,689.4 $10,554.9 11 $11,461.3 2
Average Total
Securities 2,524.3 2,970.3 (15) 2,593.5 (3)
Average Earning
Assets 14,371.3 13,659.5 5 14,222.5 1
Average Deposits 11,521.1 11,916.3 (3) 12,013.8 (4)
Average Core
Deposits 10,192.6 10,044.8 1 10,499.2 (3)
Fully Taxable-
Equivalent Net
Interest Income 152.3 151.3 1 158.5 (4)
Net Interest Margin 4.26% 4.49% (5) 4.42% (4)
City National's net interest margin in the first quarter of 2008 averaged 4.26
percent, compared with 4.42 percent in the fourth quarter of last year. This
decline was attributable primarily to short-term interest rate reductions,
average loan growth and lower average demand deposits.

First quarter average deposits totaled $11.5 billion, down 3 percent from the
same period of 2007 due to a runoff of time deposits and 4 percent from the
fourth quarter due to seasonal variations. Average core deposits grew 1 percent
over the first quarter of last year. Average noninterest-bearing deposits fell 2
percent from the first quarter of 2007 and 4 percent from the fourth quarter.

Even with the nationwide slowdown in housing sales and refinancings, title and
escrow deposit balances averaged $1.0 billion, compared to $1.2 billion in the
first quarter of 2007 and $1.1 billion in the fourth quarter of last year.

NONINTEREST INCOME

Noninterest income reached $79.8 million in the first quarter of 2008, a 21
percent increase from the previous year, due to fee revenue generated by wealth
management, international banking and cash management. Excluding City National's
acquisition of Convergent Wealth Advisors, noninterest income grew 8 percent.

At March 31, 2008, noninterest income accounted for 35 percent of City
National's total revenue, up from 31 percent at March 31, 2007.

Wealth Management

City National's assets under management grew 33 percent to $35.9 billion in the
first quarter of 2008, due primarily to the acquisition of Convergent Wealth
Advisors and the strong performance of City National Asset Management (CNAM),
the company's internal wealth management arm. As a result, trust and investment
fees increased 20 percent over the first quarter of 2007. Brokerage and mutual
fund fees grew 26 percent.

At or for the At or for the
three months ended three months
March 31, ended
Dollars --------------------- % Dec. 31, %
in millions 2008 2007 Change 2007 Change
-------------- ---------- ---------- ---------- ---------- ----------
Trust and
Investment
Fee Revenue $ 36.3 $ 30.3 20 $ 38.2 (5)
Brokerage and
Mutual Fund
Fees 17.4 13.8 26 17.0 2
Assets Under
Management
(1) 35,884.8 27,074.4 33 37,268.5 (4)
Assets Under
Management or
Administration
(1) 55,854.7 48,432.6 15 58,506.3 (5)

(1) Excludes $10.1 billion, $9.3 billion, and $12.4 billion of
assets under management for an asset manager in which City
National held a minority ownership interest as of March 31, 2008,
March 31, 2007, and December 31, 2007, respectively.
Other Noninterest Income

Fee income from foreign exchange services and letters of credit grew 19 percent
from the first quarter of 2007. Income from cash management and deposit
transaction fees rose 31 percent from the same period of last year, due to the
impact of declining interest rates on the value of compensating deposit balances
and the sale of additional cash management services.

Other service charges and fees were $5.9 million in the first quarter of 2008,
down slightly from the year-ago period.

First-quarter securities gains of $0.7 million relate principally to the partial
redemption of VISA Class B Common Stock.

NONINTEREST EXPENSE

First-quarter noninterest expense amounted to $143.1 million, up 16 percent from
the first quarter of 2007. Excluding minority interest expense and the
acquisition of both Business Bank of Nevada and Convergent Wealth Advisors,
noninterest expense grew 8 percent from the same period a year ago.

City National's first-quarter efficiency ratio was 62 percent, compared with 57
percent in the first quarter of 2007. The year-over-year increase was due
primarily to pressure on the company's net interest margin and the continued
expansion of City National's fee-based businesses, including the addition of
Convergent Wealth Advisors.

CREDIT QUALITY

Nonaccrual loans of $113.6 million and other real estate owned (OREO) assets of
$3.8 million at March 31, 2008 totaled $117.4 million, or 1 percent of total
loans and other nonperforming assets, compared with $75.6 million, or 65 basis
points, last quarter and $23.4 million, or 22 basis points, at the same period
last year.

Net loan charge-offs for the quarter were $12.1 million, compared with net
charge-offs of $3.9 million last quarter and net recoveries of $1.2 million in
the first quarter of 2007. The increase in nonaccrual loans and net charge-offs
occurred primarily in the residential homebuilder portfolio. Over 80 percent of
first-quarter charge-offs and loans on nonaccrual are related to residential
construction projects.

The national housing market is under significant duress. New home sales recently
fell to 13-year lows, and the S&P Home Price Index declined further than at any
time since its inception in 1987.

City National's secured and unsecured homebuilder loans amount to $583 million,
or 5 percent of the company's $11.8 billion loan portfolio at March 31, 2008.
These loans generally have a guarantor or other credit enhancement support. The
bank is actively managing each homebuilder loan to ensure that appropriate steps
are taken to mitigate risks and loss exposure.

Excluding loans to homebuilders, City National's construction and commercial
real estate portfolio continues to perform satisfactorily. While commercial real
estate property values are likely to soften as a result of the slowing economy
and reduced liquidity, this portfolio is diverse in terms of geography and
product type, and it consists primarily of recourse loans to well-established
real estate developers in resilient markets. These developers are clients with
whom the bank has strong long-term relationships.

City National's residential mortgage loans and home-equity loans continue to
perform well. Their average loan-to-value ratios at origination are 50 percent
and 54 percent, respectively. None of the loans have been originated through
brokers or third-parties. City National has not originated or purchased subprime
or option adjustable rate mortgages.

In the first quarter of 2008, City National recorded a $17 million provision for
credit losses. This provision reflects management's ongoing assessment of the
credit quality of the company's portfolio, which is affected by various economic
trends, including weakness in the housing sector. Additional factors affecting
the provision include net loan charge-offs, nonaccrual loans, risk-rating
migration and growth in the portfolio.

At March 31, 2008, the allowance for loan and lease losses was $168.3 million,
or 1.43 percent of total loans. The bank maintains an additional $24.9 million
in reserves for off-balance sheet credit commitments.

INCOME TAXES

The company's effective tax rate for the first quarter of 2008 was 35.2 percent,
compared to 36.8 percent in the year-ago period. The lower tax rate for the
first quarter of this year is attributable to a one-time tax benefit related to
refunds for research and development credits claimed. The effective rate was
unchanged from the fourth quarter of last year.

2008 OUTLOOK

The U.S. economy continued to worsen and interest rates declined sharply in the
first quarter of this year. The economy is now stagnant and may even be in a
mild recession, which affects all financial institutions, including City
National.

Management now expects to record a somewhat higher provision for credit losses
in 2008 than previously anticipated, due to the continuing and historic decline
of conditions in the residential construction business, which have raised the
level of nonperforming loans in that sector. Management also expects the recent
sharp decline in short-term interest rates to place additional pressure on net
interest income. In addition, declining values in the equity markets have
lowered the company's expectations for wealth management fee income.

The company has revised its 2008 earnings forecast and, based upon its current
assessment of economic conditions, now expects net income per share to be 17
percent to 22 percent lower this year than it was in 2007.

City National's credit reserves and capital position are strong, and the
company's outlook for continuing profitability assumes that they will be even
stronger by year-end. While expenses for 2008 are expected to come in lower than
initially anticipated, the company also continues to invest in a number of
longer-term growth initiatives.

CAPITAL LEVELS

City National remains well capitalized. Total risk-based capital and Tier 1
risk-based capital ratios at March 31, 2008 were 11.46 percent and 9.51 percent,
respectively, compared with the minimum regulatory standards of 10 percent and 6
percent for "well-capitalized" institutions. City National's Tier 1 leverage
ratio at March 31, 2008 was 8.06 percent, well above the regulatory minimum
ratio of 5 percent.

Total risk-based capital, Tier 1 risk-based capital and the Tier 1 leverage
ratios at December 31, 2007 were 11.27 percent, 9.31 percent and 7.97 percent,
respectively.

The period-end ratio of shareholders' equity to total assets at March 31, 2008
was 10.56 percent, compared to 10.42 percent at both March 31, 2007 and December
31, 2007.

STOCK REPURCHASE

In the first quarter of 2008, City National repurchased 191,500 of its
outstanding shares at an average cost per share of $54.24. The company expects
to repurchase additional stock this year. It is currently authorized to buy back
an additional 1,370,400 shares, subject to market conditions.

CONFERENCE CALL

City National Corporation will host a conference call this afternoon to discuss
first-quarter 2008 financial results. 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) 599-9829 and enter passcode
91988445. A listen-only live broadcast of the call also will be available on the
investor relations page of the company's Website at www.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,
provides banking, investment and trust services through 62 offices, including 15
full-service regional centers, in Southern California, the San Francisco Bay
Area, Nevada and New York City. The company and its eight majority-owned
investment affiliates manage or administer nearly $56 billion in client assets,
including $35.9 billion under direct management.

For more information about City National, visit the company's Website at
www.cnb.com.

The City National Corporation logo is available at
http://www.primenewswire.com/newsroom/prs/?pkgid=3142

SAFE-HARBOR LANGUAGE

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 general business and economic conditions, either
nationally, regionally or locally in areas where the company conducts its
business, (2) greater than expected volatility in equity, fixed income and other
market valuations, (3) protracted labor disputes in the company's markets, (4)
changes in interest rates and interest-rate relationships, (5) significant
changes in banking laws or regulations, (6) increased competition in the
company's markets and demand for the company's products and services, (7)
higher-than-expected credit losses due to business losses, real estate cycles,
capital market disruptions, changes in commercial real estate development and
real estate prices or other economic factors, (8) changes in the level of
nonperforming assets and charge-offs and changes in estimates of future reserve
requirements based upon the periodic review thereof under relevant regulatory
and accounting requirements, (9) changes in the financial performance and/or
condition of the company's borrowers, (10) a substantial and permanent loss of
either client accounts and/or assets under management at the company's
investment advisory affiliates or its wealth management division, (11)
earthquake, fire or other natural disasters affecting the condition of real
estate collateral, (12) the effect of acquisitions and integration of acquired
businesses and de novo branching efforts, (13) the impact of changes in
regulatory, judicial or legislative tax treatment of business transactions, (14)
changes in accounting policies or procedures as may be required by the Financial
Accounting Standards Board or regulatory agencies, and (15) the success of the
company at managing the risks involved in the foregoing.

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, 2007 and
particularly Part I, Item 1A, titled "Risk Factors."

CITY NATIONAL CORPORATION
FINANCIAL HIGHLIGHTS
(unaudited) Three Months
----------------------------
For The Period Ended March 31, 2008 2007 % Change
---------------------------------------- ----------------------------
Per Common Share
Net Income
Basic $ 0.92 $ 1.18 (22)
Diluted 0.91 1.15 (21)
Dividends 0.48 0.46 4
Book value 35.14 32.72 7

Results of Operations: (In millions)
Interest income $ 208 $ 214 (3)
Interest expense 60 67 (11)
-------- --------
Net interest income 148 147 1
Net interest income (Fully
taxable-equivalent) 152 151 1
Total revenue 228 213 7
Provision for credit losses 17 -- NM
Net income 44 57 (22)

Financial Ratios:
Performance Ratios:
Return on average assets 1.13% 1.55%
Return on average shareholders'
equity 10.46 15.10
Period-end shareholders' equity to
period-end assets 10.56 10.42
Net interest margin 4.26 4.49
Efficiency ratio 61.95 57.18
Capital Adequacy Ratios (Period-end):
Tier 1 leverage 8.06 8.59
Tier 1 risk-based capital 9.51 10.62
Total risk-based capital 11.46 13.12

Asset Quality Ratios:
Allowance for loan and lease losses to:
Total loans and leases 1.43% 1.51%
Nonaccrual loans 148.10 687.55
Nonperforming assets to:
Total loans and leases and
nonperforming assets 1.00 0.22
Total assets 0.74 0.15
Net (charge-offs)/recoveries to
Average total loans and leases
(annualized) (0.42)% 0.05%

Average Balances: (In millions)
Loans and leases $ 11,689 $ 10,555 11
Interest-earning assets 14,371 13,660 5
Assets 15,724 14,836 6
Core deposits 10,192 10,045 1
Deposits 11,521 11,916 (3)
Interest-bearing liabilities 8,377 7,609 10
Shareholders' equity 1,691 1,519 11

Period-End Balances : (In millions)
Loans and leases $ 11,755 $ 10,650 10
Assets 15,934 15,264 4
Core deposits 10,567 10,673 (1)
Deposits 11,792 12,606 (6)
Shareholders' equity 1,682 1,590 6

Wealth Management: (In millions)(1)
Assets under management $ 35,885 $ 27,074 33
Assets under management or
administration 55,855 48,433 15

(1) Excludes $10.1 billion and $9.3 billion of assets under management
for an asset manager in which City National held a minority
ownership interest as of March 31, 2008 and March 31, 2007,
respectively.

CITY NATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three Months Ended
March 31,
(Dollars in thousands -----------------------------
except per share data) 2008 2007 % Change
----------------------------------------- -----------------------------
Interest income $207,752 $214,241 (3)
Interest expense 59,587 66,972 (11)
-------- --------
Net Interest Income 148,165 147,269 1

Provision for Credit Losses 17,000 -- NM

Noninterest Income
Trust and investment fees 36,349 30,254 20
Brokerage and mutual fund fees 17,422 13,780 26
Cash management and deposit transaction
fees 11,124 8,471 31
International services 7,687 6,463 19
Bank-owned life insurance 655 624 5
Other service charges and fees 5,869 6,133 (4)
Gain (loss) on sale of other assets -- (46) (100)
Gain on sale of securities 710 269 164
-------- --------
Total noninterest income 79,816 65,948 21

Noninterest Expense
Salaries and employee benefits 90,179 77,984 16
Net occupancy of premises 11,512 9,458 22
Legal and professional fees 8,560 8,721 (2)
Information services 6,206 5,551 12
Depreciation and amortization 5,502 5,000 10
Amortization of intangibles 2,431 1,630 49
Marketing and advertising 5,595 3,998 40
Office services 2,986 2,747 9
Equipment 913 718 27
Minority interest expense 3,306 2,076 59
Other 5,957 5,906 1
-------- --------
Total noninterest expense 143,147 123,789 16
-------- --------

Income Before Taxes 67,834 89,428 (24)

Applicable Income Taxes 23,847 32,883 (27)
-------- --------

Net Income $ 43,987 $ 56,545 (22)
======== ========

Other Data:
Earnings per common share - basic $ 0.92 $ 1.18 (22)
Earnings per common share - diluted $ 0.91 $ 1.15 (21)
Dividends paid per common share $ 0.48 $ 0.46 4
Dividend payout ratio 52.75% 39.11% 35
Return on average assets 1.13% 1.55% (27)
Return on average shareholders' equity 10.46% 15.10% (31)
Net interest margin (Fully
taxable-equivalent) 4.26% 4.49% (5)
Full-time equivalent employees 2,959 2,800

CITY NATIONAL CORPORATION
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(unaudited)
2008 2007
---------------------
(Dollars in thousands First Fourth
except per share data) Quarter Quarter
---------------------------------------------- --------- ---------
Interest Income $ 207,752 $ 223,969
Interest Expense 59,587 69,596
--------- ---------
Net Interest Income 148,165 154,373

Provision for Credit Losses 17,000 20,000

Noninterest Income
Trust and investment fees 36,349 38,188
Brokerage and mutual fund fees 17,422 16,995
Cash management and deposit transaction fees 11,124 9,517
International services 7,687 8,379
Bank-owned life insurance 655 660
Other service charges and fees 5,869 8,575
Gain (loss) on sale of other assets -- 12
Gain on sale of securities 710 7
--------- ---------
Total noninterest income 79,816 82,333

Noninterest Expense
Salaries and employee benefits 90,179 88,146
Net occupancy of premises 11,512 11,881
Legal and professional fees 8,560 10,050
Information services 6,206 6,039
Depreciation and amortization 5,502 5,535
Amortization of intangibles 2,431 1,749
Marketing and advertising 5,595 6,977
Office services 2,986 3,323
Equipment 913 867
Minority interest expense 3,306 2,244
Other 5,957 7,464
--------- ---------
Total noninterest expense 143,147 144,275
--------- ---------

Income Before Taxes 67,834 72,431

Applicable Income Taxes 23,847 25,509
--------- ---------

Net Income $ 43,987 $ 46,922
========= =========

Other Data:
Earnings per common share - basic $ 0.92 $ 0.98
Earnings per common share - diluted $ 0.91 $ 0.96
Dividends paid per common share $ 0.48 $ 0.46
Dividend payout ratio 52.75% 47.44%
Return on average assets 1.13% 1.19%
Return on average shareholders' equity 10.46% 11.28%
Net interest margin (Fully taxable-equivalent) 4.26% 4.42%
Full-time equivalent employees 2,959 2,914

CITY NATIONAL CORPORATION
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(unaudited)

2007
(Dollars in ------------------------------------------------
thousands except Fourth Third Second First Full
per share data) Quarter Quarter Quarter Quarter Year
------------------ -------- -------- -------- -------- --------
Interest Income $223,969 $230,066 $225,825 $214,241 $894,101
Interest Expense 69,596 76,340 72,921 66,972 285,829
-------- -------- -------- -------- --------
Net Interest Income 154,373 153,726 152,904 147,269 608,272

Provision for Credit
Losses 20,000 -- -- -- 20,000

Noninterest Income
Trust and investment
fees 38,188 37,488 34,823 30,254 140,753
Brokerage and mutual
fund fees 16,995 15,546 13,958 13,780 60,279
Cash management and
deposit transaction
fees 9,517 8,801 8,472 8,471 35,261
International
services 8,379 7,995 7,562 6,463 30,399
Bank-owned life
insurance 660 645 761 624 2,690
Other service
charges and fees 8,575 7,251 7,246 6,133 29,205
Gain on sale of
other assets 12 6,023 -- (46) 5,989
Gain (loss) on sale
of securities 7 (2,516) 866 269 (1,374)
-------- -------- -------- -------- --------
Total noninterest
income 82,333 81,233 73,688 65,948 303,202

Noninterest Expense
Salaries and
employee benefits 88,146 84,057 80,904 77,984 331,091
Net occupancy of
premises 11,881 11,837 10,362 9,458 43,538
Legal and
professional fees 10,050 8,614 8,590 8,721 35,975
Information services 6,039 6,024 5,750 5,551 23,364
Depreciation and
amortization 5,535 5,275 5,122 5,000 20,932
Amortization of
intangibles 1,749 2,852 2,623 1,630 8,854
Marketing and
advertising 6,977 5,079 5,783 3,998 21,837
Office services 3,323 3,287 2,938 2,747 12,295
Equipment 867 867 797 718 3,249
Minority interest
expense 2,244 2,211 2,325 2,076 8,856
Other 7,464 7,294 7,446 5,906 28,110
-------- -------- -------- -------- --------
Total noninterest
expense 144,275 137,397 132,640 123,789 538,101
-------- -------- -------- -------- --------

Income Before Taxes 72,431 97,562 93,952 89,428 353,373

Applicable Income
Taxes 25,509 37,469 34,799 32,883 130,660
-------- -------- -------- -------- --------

Net Income $ 46,922 $ 60,093 $ 59,153 $ 56,545 $222,713
======== ======== ======== ======== ========

Other Data:
Earnings per common
share - basic $ 0.98 $ 1.24 $ 1.22 $ 1.18 $ 4.62
Earnings per common
share - diluted $ 0.96 $ 1.22 $ 1.19 $ 1.15 $ 4.52
Dividends paid per
common share $ 0.46 $ 0.46 $ 0.46 $ 0.46 $ 1.84
Dividend payout
ratio 47.44% 37.26% 38.22% 39.11% 40.13%
Return on average
assets 1.19% 1.53% 1.54% 1.55% 1.45%
Return on average
shareholders'
equity 11.28% 14.69% 14.79% 15.10% 13.92%
Net interest margin
(Fully taxable-
equivalent) 4.42% 4.42% 4.46% 4.49% 4.45%
Full-time equivalent
employees 2,914 2,878 2,903 2,800

CITY NATIONAL CORPORATION
CONSOLIDATED PERIOD END BALANCE SHEET
(unaudited)

2008
-------------
First
(In thousands) Quarter
------------------------------------------------------ -------------
Assets
Cash and due from banks $ 514,878
Federal funds sold 1,000
Due from banks - interest-bearing 77,567
Securities-available-for-sale 2,389,459
Trading account securities 121,152
Loans and leases:
Commercial 4,442,448
Commercial real estate mortgages 2,011,221
Residential mortgages 3,215,871
Real estate construction 1,462,641
Equity lines of credit 449,177
Installment 173,507
-------------
Total loans and leases 11,754,865
Allowance for loan and lease losses (168,278)
-------------
Net loans and leases 11,586,587
Premises and equipment, net 119,243
Goodwill and other intangibles 514,811
Other assets 609,335
-------------
Total assets $ 15,934,032
=============

Liabilities:
Deposits:
Noninterest-bearing $ 5,680,845
Interest-bearing 6,111,524
-------------
Total deposits 11,792,369
Federal funds purchased and securities sold under
repurchase agreements 1,118,478
Other short-term borrowed funds 720,992
Subordinated debt 162,813
Other long-term debt 243,439
Minority interest 32,199
Other liabilities 181,414
-------------
Total liabilities 14,251,704

Shareholders' Equity
Common stock 50,982
Additional paid-in capital 419,044
Retained earnings 1,390,781
Accumulated other
comprehensive loss (3,431)
Treasury shares (175,048)
-------------
Total shareholders' equity 1,682,328
-------------
Total liabilities and shareholders' equity $ 15,934,032
=============

CITY NATIONAL CORPORATION
CONSOLIDATED PERIOD END BALANCE SHEET
(unaudited)

2007
--------------------------------------------------
Fourth Third Second First
(In thousands) Quarter Quarter Quarter Quarter
----------------- ----------- ----------- ----------- -----------
Assets
Cash and due from
banks $ 365,918 $ 462,151 $ 513,463 $ 494,231
Federal funds sold -- -- 170,000 210,000
Due from banks -
interest-bearing 88,151 95,047 139,539 77,214
Securities-
available-for-
sale 2,462,655 2,563,983 2,797,366 2,902,385
Trading account
securities 293,355 192,162 117,456 35,981
Loans and leases:
Commercial 4,459,308 4,216,048 4,158,131 4,030,601
Commercial real
estate mortgages 1,954,539 1,894,753 1,947,218 1,877,695
Residential
mortgages 3,176,322 3,114,335 3,009,546 2,895,516
Real estate
construction 1,429,761 1,391,034 1,309,322 1,263,059
Equity lines of
credit 432,513 404,869 409,505 388,279
Installment 178,195 169,041 185,112 194,448
----------- ----------- ----------- -----------
Total loans and
leases 11,630,638 11,190,080 11,018,834 10,649,598
Allowance for
loan and lease
losses (168,523) (152,018) (157,849) (161,005)
----------- ----------- ----------- -----------
Net loans and
leases 11,462,115 11,038,062 10,860,985 10,488,593
Premises and
equipment, net 118,067 110,779 106,672 103,259
Goodwill and other
intangibles 520,127 517,396 518,918 420,197
Other assets 578,902 567,817 571,597 532,093
----------- ----------- ----------- -----------
Total assets $15,889,290 $15,547,397 $15,795,996 $15,263,953
=========== =========== =========== ===========

Liabilities:
Deposits:
Noninterest-
bearing $ 5,858,497 $ 5,538,107 $ 5,926,048 $ 5,690,413
Interest-bearing 5,964,008 6,642,407 7,204,357 6,915,968
----------- ----------- ----------- -----------
Total deposits 11,822,505 12,180,514 13,130,405 12,606,381
Federal funds
purchased and
securities
sold under
repurchase
agreements 1,544,411 664,970 269,938 310,738
Other short-term
borrowed funds 100,000 326,041 72,818 50,667
Subordinated debt 273,559 270,066 266,962 270,174
Other long-term
debt 233,465 225,598 219,282 224,079
Minority interest 31,676 29,148 29,029 28,285
Other liabilities 228,067 217,301 186,212 183,185
----------- ----------- ----------- -----------
Total
liabilities 14,233,683 13,913,638 14,174,646 13,673,509

Shareholders'
Equity
Common stock 50,824 50,813 50,825 50,803
Additional paid-in
capital 420,168 421,754 419,277 421,990
Retained earnings 1,369,999 1,345,337 1,307,638 1,271,092
Accumulated other
comprehensive
loss (9,349) (22,788) (50,709) (31,034)
Treasury shares (176,035) (161,357) (105,681) (122,407)
----------- ----------- ----------- -----------
Total
shareholders'
equity 1,655,607 1,633,759 1,621,350 1,590,444
----------- ----------- ----------- -----------
Total
liabilities and
shareholders'
equity $15,889,290 $15,547,397 $15,795,996 $15,263,953
=========== =========== =========== ===========

CITY NATIONAL CORPORATION
CREDIT LOSS EXPERIENCE
(unaudited)

2008
-----------------------
First Year To
(Dollars in thousands) Quarter Date
-------------------------------------------- --------- ----------
Allowance for Loan and Lease Losses
Balance at beginning of period $ 168,523 $ 168,523

Allowance of acquired institution -- --

Net (charge-offs)/recoveries:
Commercial (1,573) (1,573)
Commercial real estate mortgages 12 12
Residential mortgages 8 8
Real estate construction (10,217) (10,217)
Equity lines of credit (239) (239)
Installment (78) (78)
--------- ---------
Total net (charge-offs)/recoveries (12,087) (12,087)

Provision for credit losses 17,000 17,000

Transfers from(to) reserve for off-balance
sheet credit commitments (5,158) (5,158)

--------- ---------
Balance at end of period $ 168,278 $ 168,278
========= =========

Net (Charge-Offs)/Recoveries to Average Total
Loans and Leases: (annualized)

Commercial (0.14)% (0.14)%
Commercial real estate mortgages 0.00% 0.00%
Residential mortgage 0.00% 0.00%
Real estate construction (2.81)% (2.81)%
Equity lines of credit (0.22)% (0.22)%
Installment (0.18)% (0.18)%
Total loans and leases (0.42)% (0.42)%

Reserve for Off-Balance Sheet Credit
Commitments

Balance at beginning of period $ 19,704 $ 19,704
Recovery of prior charge-off -- --
Reserve of acquired institution -- --
Transfers (to)from allowance 5,158 5,158
--------- ---------
Balance at end of period $ 24,862 $ 24,862
========= =========

2007
----------------------------------------------------
(Dollars in Fourth Third Second First Full
thousands) Quarter Quarter Quarter Quarter Year
-------- -------- -------- -------- --------
Allowance for
Loan and Lease
Losses
Balance at
beginning of
period $152,018 $157,849 $161,005 $155,342 $155,342

Allowance of
acquired
institution -- -- -- 4,513 4,513

Net
(charge-offs)/
recoveries:
Commercial (900) (632) (2,218) 1,247 (2,503)
Commercial real
estate
mortgages 9 (295) -- -- (286)
Residential
mortgages -- -- -- -- --
Real estate
construction (2,872) (2,654) 17 18 (5,491)
Equity lines
of credit (50) -- -- -- (50)
Installment (50) (10) (61) (26) (147)
-------- -------- -------- -------- --------
Total net
(charge-offs)/
recoveries (3,863) (3,591) (2,262) 1,239 (8,477)

Provision for
credit losses 20,000 -- -- -- 20,000

Transfers from
(to) reserve
for off-balance
sheet credit
commitments 368 (2,240) (894) (89) (2,855)

-------- -------- -------- -------- --------
Balance at end
of period $168,523 $152,018 $157,849 $161,005 $168,523
======== ======== ======== ======== ========

Net (Charge-Offs)/
Recoveries to
Average Total
Loans and
Leases:
(annualized)

Commercial (0.08)% (0.06)% (0.21)% 0.12% (0.06)%
Commercial
real estate
mortgages 0.00% (0.06)% 0.00% 0.00% (0.02)%
Residential
mortgage 0.00% 0.00% 0.00% 0.00% 0.00%
Real estate
construction (0.81)% (0.78)% 0.01% 0.01% (0.43)%
Equity lines
of credit (0.05)% 0.00% 0.00% 0.00% (0.01)%
Installment (0.12)% (0.02)% (0.13)% (0.06)% (0.08)%
Total loans
and leases (0.13)% (0.13)% (0.08)% 0.05% (0.08)%

Reserve for
Off-Balance
Sheet Credit
Commitments

Balance at
beginning of
period $ 20,072 $ 17,832 $ 17,005 $ 16,424 $ 16,424
Recovery of
prior
charge-off -- -- (67) -- (67)
Reserve of
acquired
institution -- -- -- 492 492
Transfers (to)
from allowance (368) 2,240 894 89 2,855
-------- -------- -------- -------- --------
Balance at end
of period $ 19,704 $ 20,072 $ 17,832 $ 17,005 $ 19,704
======== ======== ======== ======== ========

CITY NATIONAL CORPORATION
NONPERFORMING ASSETS
(unaudited)

2008 2007
-------- --------------------------------------
(Dollars in First Fourth Third Second First
thousands) Quarter Quarter Quarter Quarter Quarter
------------------- -------- -------- -------- -------- --------
Nonaccrual Loans
Commercial $ 16,293 $ 17,103 $ 7,673 $ 3,998 $ 7,024
Commercial real
estate mortgages 1,841 1,621 1,970 4,732 4,783
Residential
mortgages 706 387 394 378 --
Real estate
construction 93,296 55,632 15,513 12,566 11,199
Equity lines of
credit 1,422 679 502 452 362
Installment 64 139 175 182 49
-------- -------- -------- -------- --------
Total nonaccrual
loans 113,622 75,561 26,227 22,308 23,417

Other Nonperforming
Assets 3,812 -- -- -- --
-------- -------- -------- -------- --------

Total nonperforming
assets $117,434 $ 75,561 $ 26,227 $ 22,308 $ 23,417
======== ======== ======== ======== ========

Loans 90 Days or More
Past Due on Accrual
Status -- 1 -- -- 199

Allowance for loan
and lease losses as
a percentage of:
Nonaccrual loans 148.10% 223.03% 579.63% 707.58% 687.55%
Total nonperforming
assets 143.30% 223.03% 579.63% 707.58% 687.55%
Total loans and
leases 1.43% 1.45% 1.36% 1.43% 1.51%

Nonaccrual loans as
a percentage of
total loans 0.97% 0.65% 0.23% 0.20% 0.22%

Nonperforming assets
as a percentage of:
Total loans and
other nonperforming
assets 1.00% 0.65% 0.23% 0.20% 0.22%
Total assets 0.74% 0.48% 0.17% 0.14% 0.15%

CITY NATIONAL CORPORATION
AVERAGE BALANCES AND RATES
(unaudited)

2008 2007
----------------------------------
First Quarter Fourth Quarter
---------------- ----------------
Average Average Average Average
(Dollars in millions) Balance Rate Balance Rate
---------------------------------- ------- ------- ------- -------
Assets
Interest-earning assets
Loans and leases
Commercial $ 4,456 6.28% $ 4,391 7.02%
Commercial real estate
mortgages 1,975 6.84 1,925 7.01
Residential mortgages 3,179 5.61 3,155 5.61
Real estate construction 1,464 6.47 1,405 8.07
Equity lines of credit 438 5.65 414 6.95
Installment 177 6.49 171 7.11
------- -------
Total loans and leases 11,689 6.20 11,461 6.75
Due from banks - interest-bearing 78 2.69 95 3.05
Federal funds sold and securities
purchased under resale
agreements 8 3.33 4 4.61
Securities available-for-sale 2,446 4.81 2,500 4.84
Trading account securities 78 3.11 94 4.57
Other interest-earning assets 72 5.75 69 6.08
------- -------
Total interest-earning assets 14,371 5.93 14,223 6.36
Allowance for loan and lease
losses (165) (151)
Cash and due from banks 379 393
Other non-earning assets 1,139 1,124
------- -------
Total assets $15,724 $15,589
======= =======

Liabilities and Shareholders' Equity
Interest-bearing deposits
Interest checking accounts $ 823 0.69% $ 805 0.69%
Money market accounts 3,610 2.47 3,726 2.99
Savings deposits 135 0.36 142 0.49
Time deposits - under $100,000 220 3.54 224 3.93
Time deposits - $100,000 and over 1,329 3.99 1,514 4.38
------- -------
Total interest-bearing deposits 6,117 2.55 6,411 3.01

Federal funds purchased and
securities sold under
repurchase agreements 1,141 3.39 908 4.50
Other borrowings 1,119 4.00 746 5.67
------- -------
Total interest-bearing
liabilities 8,377 2.86 8,065 3.42
Noninterest-bearing deposits 5,404 5,603
Other liabilities 252 270
Shareholders' equity 1,691 1,651
------- -------
Total liabilities and
shareholders' equity $15,724 $15,589
======= =======

Net interest spread 3.07% 2.94%
==== ====
Net interest margin 4.26% 4.42%
==== ====

Average prime rate 6.22% 7.52%
==== ====

CITY NATIONAL CORPORATION
AVERAGE BALANCES AND RATES
(unaudited)

2007
-----------------------------------------------
Fourth Quarter Third Quarter Second Quarter
--------------- --------------- ---------------
Average Average Average Average Average Average
(Dollars in millions) Balance Rate Balance Rate Balance Rate
--------------------- ------- ------- ------- ------- ------- -------
Assets
Interest-earning
assets
Loans and leases
Commercial $ 4,391 7.02% $ 4,303 7.42% $ 4,275 7.37%
Commercial real
estate mortgages 1,925 7.01 1,897 7.31 1,932 7.36
Residential
mortgages 3,155 5.61 3,063 5.59 2,975 5.49
Real estate
construction 1,405 8.07 1,344 8.61 1,234 8.88
Equity lines of
credit 414 6.95 406 7.63 404 7.71
Installment 171 7.11 178 7.35 191 7.51
------- ------- -------
Total loans and
leases 11,461 6.75 11,191 7.04 11,011 7.05
Due from banks -
interest-bearing 95 3.05 98 3.48 89 2.40
Federal funds sold
and securities
purchased under
resale agreements 4 4.61 10 5.33 24 5.27
Securities
available-for-sale 2,500 4.84 2,746 4.78 2,872 4.72
Trading account
securities 94 4.57 84 5.23 72 5.23
Other interest-
earning assets 69 6.08 69 6.15 60 6.36
------- ------- -------
Total interest-
earning assets 14,223 6.36 14,198 6.55 14,128 6.53
Allowance for loan
and lease losses (151) (157) (162)
Cash and due from
banks 393 434 445
Other non-earning
assets 1,124 1,120 1,041
------- ------- -------
Total assets $15,589 $15,595 $15,452
======= ======= =======

Liabilities and
Shareholders' Equity
Interest-bearing
deposits
Interest checking
accounts $ 805 0.69% $ 778 0.68% $ 804 0.56%
Money market
accounts 3,726 2.99 3,748 3.16 3,721 3.10
Savings deposits 142 0.49 146 0.49 149 0.48
Time deposits -
under $100,000 224 3.93 232 4.05 274 3.79
Time deposits -
$100,000 and over 1,514 4.38 2,054 4.75 2,066 4.81
------- ------- -------
Total interest-
bearing deposits 6,411 3.01 6,958 3.32 7,014 3.28

Federal funds
purchased and
securities sold
under repurchase
agreements 908 4.50 672 4.99 486 5.11
Other borrowings 746 5.67 620 6.14 612 6.09
------- ------- -------
Total interest-
bearing
liabilities 8,065 3.42 8,250 3.67 8,112 3.61
Noninterest-bearing
deposits 5,603 5,484 5,556
Other liabilities 270 238 180
Shareholders' equity 1,651 1,623 1,604
------- ------- -------
Total liabilities
and shareholders'
equity $15,589 $15,595 $15,452
======= ======= =======

Net interest spread 2.94% 2.88% 2.92%
==== ==== ====
Net interest margin 4.42% 4.42% 4.46%
==== ==== ====

Average prime rate 7.52% 8.18% 8.25%
==== ==== ====

2007
----------------------------------
First Quarter Year to Date
---------------- ----------------
Average Average Average Average
(Dollars in millions) Balance Rate Balance Rate
--------------------------------- ------- ------- ------- -------
Assets
Interest-earning assets
Loans and leases
Commercial $ 4,146 7.25% $ 4,280 7.26%
Commercial real estate
mortgages 1,758 7.39 1,879 7.26
Residential mortgages 2,885 5.40 3,020 5.52
Real estate construction 1,181 8.73 1,292 8.55
Equity lines of credit 394 7.86 404 7.53
Installment 191 7.64 183 7.41
------- -------
Total loans and leases 10,555 6.99 11,058 6.95
Due from banks - interest-bearing 73 2.70 89 2.93
Federal funds sold and securities
purchased under resale
agreements 14 5.36 13 5.25
Securities available-for-sale 2,916 4.70 2,757 4.76
Trading account securities 54 6.09 76 5.20
Other interest-earning assets 48 5.96 61 6.14
------- -------
Total interest-earning assets 13,660 6.48 14,054 6.48
Allowance for loan and lease
losses (157) (157)
Cash and due from banks 422 424
Other non-earning assets 911 1,050
------- -------
Total assets $14,836 $15,371
======= =======

Liabilities and Shareholders' Equity
Interest-bearing deposits
Interest checking accounts $ 749 0.48% $ 784 0.60%
Money market accounts 3,419 2.98 3,655 3.06
Savings deposits 155 0.47 148 0.48
Time deposits - under $100,000 232 4.10 240 3.96
Time deposits - $100,000 and over 1,872 4.72 1,876 4.68
------- -------
Total interest-bearing deposits 6,427 3.18 6,703 3.20

Federal funds purchased and
securities sold under
repurchase agreements 582 5.27 663 4.90
Other borrowings 599 6.15 645 6.00
------- -------
Total interest-bearing
liabilities 7,608 3.57 8,011 3.57
Noninterest-bearing deposits 5,489 5,533
Other liabilities 220 228
Shareholders' equity 1,519 1,599
------- -------
Total liabilities and
shareholders' equity $14,836 $15,371
======= =======

Net interest spread 2.91% 2.91%
==== ====
Net interest margin 4.49% 4.45%
==== ====

Average prime rate 8.25% 8.05%
==== ====

CITY NATIONAL CORPORATION
CAPITAL AND CREDIT RATING DATA
(unaudited)

2008 2007
----------------------------------------------------
First Fourth Third Second First Full
Quarter Quarter Quarter Quarter Quarter Year
------- ------- ------- ------- ------- -------
Per Common Share:
-----------------
Shares
Outstanding
(in thousands):
Average - Basic 47,829 47,947 48,345 48,675 47,968 48,234
Average -
Diluted 48,517 48,869 49,408 49,838 49,087 49,290
Period-End 47,871 47,830 48,064 48,831 48,602
Book Value $ 35.14 $ 34.61 $ 33.99 $ 33.20 $ 32.72
Closing price:
High $ 60.00 $ 72.97 $ 78.00 $ 78.39 $ 75.39 $ 78.39
Low 48.57 59.10 69.00 72.30 68.00 59.10
Period-end 49.46 59.55 69.51 76.09 73.60

Capital Ratios
(Dollars in
millions):
--------------
Risk-based
capital
Risk-adjusted
assets $12,852 $12,886 $12,234 $12,067 $11,618
Tier I capital $ 1,222 $ 1,199 $ 1,171 $ 1,185 $ 1,234
Percentage of
risk adjusted
assets 9.51% 9.31% 9.57% 9.82% 10.62%
Total capital $ 1,473 $ 1,453 $ 1,470 $ 1,481 $ 1,524
Percentage of
risk adjusted
assets 11.46% 11.27% 12.01% 12.28% 13.12%
Tier I leverage
ratio 8.06% 7.97% 7.80% 7.97% 8.59%
Period-end
shareholders'
equity
to total
period-end
assets 10.56% 10.42% 10.51% 10.26% 10.42%
Period-end
tangible
shareholders'
equity to total
period-end
tangible assets 7.57% 7.39% 7.43% 7.22% 7.88%
Average
shareholders'
equity
to total
average assets 10.75% 10.59% 10.41% 10.38% 10.24% 10.41%
Average tangible
shareholders'
equity to total
average
tangible assets 7.71% 7.52% 7.33% 7.67% 8.18% 7.67%

Senior Debt Credit Ratings
--------------------------
For The Period Ended March 31, 2008 Standard
Moody's Fitch & Poor's DBRS
------- ------- -------- -------
City National Bank Aa3 A- A A(high)
City National Corporation A1 A- A- A
-0-
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

Conference Call:
Today 2:00 p.m. PDT
(800) 599-9829
Passcode: 91988445