Company Maintains Dividend of $0.48 Per Share
Assets Exceed $16 Billion for the First Time
LOS ANGELES, July 24, 2008 (PRIME NEWSWIRE) -- City National Corporation (NYSE:CYN), the parent company of wholly owned City National Bank, today reported second-quarter 2008 net income of $35.5 million, or $0.73 per share. In the second quarter of 2007, the company earned $1.19 per share on net income of $59.2 million.
Year to date, City National has earned $79.5 million, or $1.64 per share, on revenue of $459.6 million. In the first half of 2007, the company earned net income of $115.7 million, or $2.34 per share, on revenue of $439.8 million.
The company also announced today that its board of directors has again declared a 2008 quarterly common stock cash dividend of $0.48 per share, payable on August 20, 2008 to stockholders of record on August 6, 2008.
SECOND-QUARTER 2008 HIGHLIGHTS
* City National's second-quarter revenue grew to $231.6 million, up 2 percent from $226.6 million in the second quarter of 2007. * Average loans reached $12.1 billion, up 10 percent from the same period last year. * Average core deposits were stable as compared with the second quarter of 2007 and up 4 percent from the first quarter of this year. * Second-quarter 2008 net income reflects a $35 million provision for credit losses and loan growth. The second-quarter provision adds $17 million to City National's allowance for loan and lease losses. At June 30, 2008, the company's allowance increased to $185.1 million, or 1.52 percent of total loans and leases, compared to $168.3 million, or 1.43 percent of total loans and leases, at the end of the first quarter. Total nonperforming assets were $115.3 million, down from $117.4 million at March 31 of this year. The company made no provision for potential credit losses in the second quarter of 2007. * City National's net interest margin averaged 4.23 percent in the second quarter of 2008, compared to 4.26 percent in the first quarter of this year. * Noninterest income totaled $81.5 million, up 11 percent from the second quarter of 2007. Noninterest income accounts for 35 percent of City National's total revenue. * The company remained well capitalized. Its period-end ratio of equity-to-total-assets at June 30, 2008 was 10.21 percent, compared to 10.26 percent at June 30, 2007 and 10.56 at March 31 of this year.
"City National's profitable second quarter demonstrated that its businesses generated solid growth as revenue, assets, core deposits, loans and noninterest income all grew significantly from the first quarter," said President and Chief Executive Officer Russell Goldsmith. "At the same time, the further deterioration in the housing market and its impact on our homebuilder clients warranted both higher credit costs and a $17 million 'build' to our strong credit reserves.
"City National remains profitable, well-reserved and well-capitalized in part because it has no subprime, brokered or option ARM mortgages, no subprime-based CDOs and, effectively, no auto loans or consumer credit card issues."
For the
For the three three
Dollars in millions, months ended months
except per share June 30, ended
----------------------- --------------------- % March 31, %
2008 2007 Change 2008 Change
--------- --------- ------ --------- ------
Earnings Per Share $ 0.73 $ 1.19 (39) $ 0.91 (20)
Net Income 35.5 59.2 (40) 44.0 (19)
Average Assets 16,077.2 15,452.5 4 15,723.5 2
Return on Average Assets 0.89% 1.54% (42) 1.13% (21)
Return on Average Equity 8.42 14.79 (43) 10.46 (20)
ASSETS
Total assets at June 30, 2008 were $16.3 billion, up 3 percent from the second quarter of 2007. This marked the first time that City National's assets exceeded $16 billion.
City National's second-quarter return on average assets was 0.89 percent, and its return on average equity was 8.42 percent.
REVENUE
Revenue grew to $231.6 million, up 2 percent from both the second quarter of 2007 and the first quarter of this year, reflecting the company's solid operating performance. Loans and noninterest income grew at double-digit rates from the prior year. Core deposits were stable and so was the company's net interest margin.
NET INTEREST INCOME
Fully taxable-equivalent net interest income was $153.3 million in the second quarter, down $2.9 million from the same period last year due to the decline in short-term interest rates. Fully taxable-equivalent net interest income in the first quarter of 2008 was $151.3 million.
Second-quarter average loan balances reached $12.1 billion, up 10 percent from the second quarter of 2007 and 3 percent from the first quarter of this year. Commercial loans increased 5 percent from the first quarter, while commercial real estate and construction loans together were up 1 percent due in large part to an increase in existing line utilization. Average single-family residential mortgage lending to City National's private banking clients rose 3 percent.
Average securities for the second quarter of 2008 totaled $2.5 billion, down $491 million from the same period last year and $71 million from the first quarter of 2008. Cash flow from the investment portfolio was used to fund growth in loans. The average duration of total available-for-sale securities at June 30, 2008 was 3.6 years, compared with 3.3 years at the end of the second quarter of 2007 and 3.5 years at March 31, 2008.
At June 30, 2008, City National's prime lending rate was 5.0 percent, down 325 basis points from June 30, 2007 and 25 basis points from March 31, 2008.
City National's net interest margin in the second quarter of 2008 averaged 4.23 percent, compared with 4.26 percent in the first quarter of 2008. The lower yield on loans was mostly offset by the lower cost of interest-bearing liabilities as well as growth in average demand deposits.
For the
For the three three
months ended months
Dollars in millions June 30, ended
----------------------- --------------------- % March 31, %
2008 2007 Change 2008 Change
--------- --------- ------ --------- ------
Average Loans $12,058.9 $11,010.9 10 $11,689.4 3
Average Total Securities 2,453.2 2,943.9 (17) 2,524.3 (3)
Average Earning Assets 14,694.6 14,128.3 4 14,371.3 2
Average Deposits 11,694.7 12,569.9 (7) 11,521.1 2
Average Core Deposits 10,551.3 10,503.4 0 10,192.6 4
Fully Taxable-Equivalent
Net Interest Income 153.3 156.2 (2) 151.3 1
Net Interest Margin 4.23% 4.46% (5) 4.26% (1)
Second-quarter average deposits totaled $11.7 billion, up 2 percent from the first quarter. Average deposits fell 7 percent from the second quarter of 2007 as the company was able to reduce its holdings of higher-cost time deposits.
Average core deposits grew 4 percent from the first quarter of this year and were unchanged from the second quarter of 2007.
Average noninterest-bearing deposits were up 4 percent from the first quarter and 1 percent from the second quarter of 2007.
Title and escrow deposit balances averaged $1.0 billion, virtually unchanged from the first quarter of this year and down $300 million from the second quarter of 2007.
NONINTEREST INCOME
Noninterest income reached $81.5 million in the second quarter of 2008, an 11 percent increase from the same period one year ago, due to fee income generated by wealth management, international banking and cash management.
For the quarter ending June 30, 2008, noninterest income accounted for 35 percent of City National's total revenue, up from 33 percent for the quarter ending June 30, 2007.
Wealth Management
City National's assets under management were down 6 percent to $33.8 billion in the second quarter of 2008 from the year-earlier period, due primarily to general market conditions and in part to an anticipated shift of funds by the former owner of City National's institutional asset management affiliate to its in-house investment manager. As a result, trust and investment fees were down 2 percent from the second quarter of 2007. Brokerage and mutual fund fees rose 34 percent, due primarily to an increase in money market funds.
For the
For the three three
months ended months
Dollars in millions June 30, ended
----------------------- --------------------- % March 31, %
2008 2007 Change 2008 Change
--------- --------- ------ --------- ------
Trust and Investment Fee
Revenue $ 34.2 $ 34.8 (2) $ 36.3 (6)
Brokerage and Mutual Fund
Fees 18.7 14.0 34 17.4 7
Assets Under
Management(1) 33,834.3 35,849.9 (6) 35,884.8 (6)
Total Assets Under
Management or
Administration(1) 53,509.7 57,328.6 (7) 55,854.7 (4)
(1) Excludes $9.0 billion, $10.5 billion, and $10.1 billion of assets
under management for an asset manager in which City National held
a minority ownership interest as of June 30, 2008, June 30, 2007,
and March 31, 2008, respectively.
Other Noninterest Income
Income from cash management and deposit transaction fees rose 44 percent from the same period of last year and 10 percent from the first quarter of 2008, due to the impact of declining interest rates on the value of compensating deposit balances and the sale of additional cash management services to new and existing clients. Fee income from foreign exchange services and letters of credit grew 8 percent from the second quarter of 2007 and 6 percent from the first quarter of this year.
Other service charges and fees were $8.2 million in the second quarter of 2008, up 13 percent from the year-ago period, due primarily to higher income from debit and credit card fees.
NONINTEREST EXPENSE
Second-quarter 2008 noninterest expense amounted to $141.5 million, up 7 percent from the second quarter of 2007, but down slightly from the first quarter of this year. The increase from last year was due in part to $1.4 million of additional expense for FDIC premiums. Excluding higher FDIC premiums, City National's second-quarter noninterest expense grew 5.6 percent.
City National's second-quarter efficiency ratio was 60.13 percent, compared with 57.69 percent in the second quarter of 2007. The year-over-year increase was due primarily to the continued expansion of City National's fee-based businesses, including the addition of Convergent Wealth Advisors.
CREDIT QUALITY
City National recorded a $35 million provision for credit losses in the second quarter of 2008. After net charge-offs, this provision adds $17 million to the company's allowance for loan and lease losses. It reflects management's ongoing assessment of the credit quality of the company's portfolio, which is affected by various economic trends, including significant weakness in the housing sector. Additional factors affecting the provision include net loan charge-offs and nonaccrual loans (principally linked to the homebuilding sector), risk-rating migration and growth in the portfolio.
Nonaccrual loans of $106.2 million and other real estate owned (OREO) assets of $9.1 million at June 30, 2008 declined slightly to $115.3 million, or 0.95 percent of total loans and other nonperforming assets, from $117.4 million, or 1.00 percent, in the first quarter and increased from $22.3 million, or 20 basis points, at June 30, 2007.
Net loan charge-offs for the quarter were $18.9 million, compared with net charge-offs of $12.1 million in the first quarter and $2.3 million in the second quarter of 2007. The increase in net charge-offs occurred overwhelmingly in the residential homebuilder portfolio. About 75 percent of second-quarter charge-offs and loans on nonaccrual are related to residential construction and development projects.
As of As of As of
June 30, 2008 June 30, 2007 March 31, 2008
------------------- ---------------- ----------------
Period-end
Loans
(in millions) Total Nonaccrual Total Nonaccrual Total Nonaccrual
------------ ------- ---------- ------ ---------- ----- ----------
Commercial
Loans $ 4,703.3 $ 16.4 $ 4,158.1 $ 4.0 $4,442.5 $16.3
Commercial
R.E. Loans 2,016.1 0.7 1,947.2 4.7 2,011.2 1.8
Real Estate
Construction
Loans 1,483.2 86.3 1,309.3 12.6 1,462.6 93.3
Residential
Mortgages 3,319.7 0.6 3,009.6 0.4 3,215.9 0.7
Equity Lines of
Credit 495.3 1.4 409.5 0.4 449.2 1.4
Other Loans 160.7 0.8 185.1 0.2 173.5 0.1
--------- ------ --------- ----- -------- ------
Total Loans $12,178.3 $106.2 $11,018.8 $22.3 $11,754.9 $113.6
Other Real
Estate
Owned $ 9.1 $ -- $ 3.8
City National's homebuilder loans amounted to $559 million, or 4.6 percent of the company's $12.2 billion loan portfolio, at June 30, 2008. These loans generally have a guarantor or other credit enhancement support. The bank is actively managing each homebuilder loan and taking appropriate steps to mitigate risks and loss exposure.
Excluding loans to homebuilders, City National's construction and commercial real estate portfolio continued to perform satisfactorily. This portfolio is diverse in terms of geography and product type. It consists primarily of recourse loans to well-established real estate developers in dense urban markets. Most of these developers are clients with whom the bank has significant long-term relationships.
The company's commercial loan portfolio also continued to perform satisfactorily.
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.
At June 30, 2008, the allowance for loan and lease losses was $185.1 million, or 1.52 percent of total loans and leases. Consistent with its methodology, the bank maintains an additional $24.2 million in reserves for off-balance-sheet credit commitments.
INCOME TAXES
The company's second-quarter 2008 effective tax rate was 35.6 percent, compared to 37.0 percent in the second quarter of last year. The lower tax rate for the second quarter of this year is attributable to a decrease in pretax income and a decrease in permanent tax benefits. The effective rate for the first quarter of this year was 35.2 percent.
FIRST-HALF 2008 HIGHLIGHTS
* Year to date, City National has earned $79.5 million, or $1.64 per share, compared with $115.7 million, or $2.34 per share for the first six months of 2007. * Revenue for the first six months of this year grew to $459.6 million, up 5 percent from the first half of 2007. * Fully taxable-equivalent net interest income amounted to $304.6 million, virtually unchanged from the first six months of 2007. The company's net interest margin averaged 4.24 percent in the first half of 2008, down from 4.48 percent during same period of the prior year. * Average loans reached $11.9 billion, up 10 percent from the first half of 2007. * Average deposits for the first six months of this year amounted to $11.6 billion, down 5 percent from the same period of 2007. Core deposit balances totaled $10.4 billion in the first half of 2008, up 1 percent from the first six months of 2007. * Noninterest income grew to $161.3 million, up 16 percent from the first half of 2007. * During the first half of 2008, the company's provisions for loan losses totaled $52.0 million. The company made no provision in the first six months of 2007. * Noninterest expense for the first six months of 2008 increased 11 percent from the same period of 2007. Excluding increased FDIC costs and the acquisitions of both Business Bank of Nevada and Convergent Wealth Advisors, first-half 2008 noninterest expense increased 5.5 percent from the same period of 2007.
2008 OUTLOOK
In light of higher-than-expected credit costs stemming from continued economic weakness and significant housing market deterioration, management has revised its 2008 earnings forecast. The company still expects 2008 to be a profitable year but with earnings per share of between $3.15 and $3.40. City National's credit reserves and capital position remain strong.
CAPITAL LEVELS
City National remains well capitalized. Total risk-based capital and Tier 1 risk-based capital ratios at June 30, 2008 were 11.21 percent and 9.28 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 June 30, 2008 was 7.89 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 March 31, 2008 were 11.46 percent, 9.51 percent and 8.06 percent, respectively.
The period-end ratio of shareholders' equity to total assets at June 30, 2008 was 10.21 percent, compared to 10.26 percent at June 30, 2007 and 10.56 percent at March 31, 2008.
STOCK REPURCHASE
In the second quarter of 2008, City National repurchased 230,000 of its outstanding shares at an average cost per share of $43.55. During the first two quarters of this year, it bought back 421,500 shares at an average cost of $48.41. The company intends to repurchase shares at a similar pace, subject to market conditions.
CONFERENCE CALL
City National Corporation will host a conference call this afternoon to discuss second-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 (866) 393-6804 and enter Conference ID 52206361. 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 $53.5 billion in client assets, including nearly $34 billion under direct management.
For more information about City National, visit the company's Website at www.cnb.com.
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, which may affect, among other things, the level of nonperforming assets, charge-offs and provision expense, (2) greater than expected volatility in equity, fixed income and other market valuations, (3) changes in market rates and prices which may adversely impact the value of financial products including securities, loans, deposits, debt and derivative financial instruments, and other similar financial instruments, (4) protracted labor disputes in the company's markets, (5) changes in the interest rate environment and market liquidity which may reduce interest margins and impact funding sources, (6) significant changes in banking laws or regulations, (7) increased competition in the company's markets and demand for the company's products and services, (8) 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, (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 Six Months
----------------------- ----------------------
For The Period Ended % %
June 30, 2008 2007 Change 2008 2007 Change
--------------------------------------------- ----------------------
Per Common Share:
Net Income
Basic $ 0.74 $ 1.22 (39) $ 1.66 $ 2.39 (31)
Diluted 0.73 1.19 (39) 1.64 2.34 (30)
Dividends 0.48 0.46 4 0.96 0.92 4
Book value 34.90 33.20 5
Results of Operations
(In millions):
Interest income $ 194 $ 226 (14) $ 401 $ 440 (9)
Interest expense 44 73 (40) 103 140 (26)
------- ------- ------- -------
Net interest income 150 153 (2) 298 300 (1)
Net interest income
(Fully taxable-
equivalent) 153 156 (2) 305 307 --
Total revenue 232 227 2 460 440 5
Provision for credit
losses 35 -- NM 52 -- NM
Net income 35 59 (40) 79 116 (31)
Financial Ratios:
Performance Ratios:
Return on average
assets 0.89% 1.54% 1.01% 1.54%
Return on average
shareholders'
equity 8.42 14.79 9.44 14.94
Period-end
shareholders'
equity to
period-end assets 10.21 10.26
Net interest margin 4.23 4.46 4.24 4.48
Efficiency ratio 60.13 57.69 61.03 57.44
Capital Adequacy
Ratios (Period-end):
Tier 1 leverage 7.89 7.97
Tier 1 risk-based
capital 9.28 9.82
Total risk-based
capital 11.21 12.28
Asset Quality Ratios:
Allowance for loan
and lease losses to:
Total loans and
leases 1.52% 1.43%
Nonaccrual loans 174.30 707.58
Nonperforming assets
to:
Total loans, leases
and nonperforming
assets 0.95 0.20
Total assets 0.71 0.14
Net (charge-offs)/
recoveries to
Average total loans
and leases
(annualized) (0.63)% (0.08)% (0.53)% (0.02)%
Average Balances
(In millions):
Loans and leases $12,059 $11,011 10 $11,874 $10,784 10
Interest-earning
assets 14,695 14,128 4 14,533 13,896 5
Assets 16,077 15,452 4 15,900 15,146 5
Core deposits 10,552 10,504 -- 10,372 10,275 1
Deposits 11,695 12,570 (7) 11,608 12,245 (5)
Interest-bearing
liabilities 8,544 8,112 5 8,461 7,861 8
Shareholders' equity 1,695 1,604 6 1,693 1,562 8
Period-End Balances
(In millions):
Loans and leases $12,178 $11,019 11
Assets 16,339 15,796 3
Core deposits 10,774 10,836 (1)
Deposits 11,896 13,130 (9)
Shareholders' equity 1,668 1,621 3
Wealth Management
(In millions):(1)
Assets under
management $33,834 $35,850 (6)
Assets under
management or
administration 53,510 57,329 (7)
(1) Excludes $9.0 billion and $10.5 billion of assets under
management for an asset manager in which City National held a
minority ownership interest as of June 30, 2008 and June 30, 2007,
respectively.
CITY NATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
(Dollars in ---------------------------------------------------
thousands except % %
per share data) 2008 2007 Change 2008 2007 Change
----------------- ---------------------------------------------------
Interest income $193,707 $225,825 (14) $401,459 $440,066 (9)
Interest expense 43,539 72,921 (40) 103,126 139,893 (26)
-------- -------- -------- --------
Net Interest
Income 150,168 152,904 (2) 298,333 300,173 (1)
Provision for
Credit Losses 35,000 -- NM 52,000 -- NM
Noninterest Income
Trust and
investment fees 34,187 34,823 (2) 70,536 65,077 8
Brokerage and
mutual fund fees 18,709 13,958 34 36,131 27,738 30
Cash management
and deposit
transaction fees 12,196 8,472 44 23,320 16,943 38
International
services 8,176 7,562 8 15,863 14,025 13
Bank-owned life
insurance 628 761 (17) 1,283 1,385 (7)
Other service
charges and fees 8,177 7,246 13 13,787 13,379 3
Loss on sale of
other assets (192) -- NM (192) (46) 317
Gain (loss) on
sale of
securities (417) 866 148) 552 1,135 (51)
-------- -------- -------- --------
Total noninterest
income 81,464 73,688 11 161,280 139,636 16
Noninterest Expense
Salaries and
employee benefits 87,520 80,904 8 177,699 158,888 12
Net occupancy of
premises 12,462 10,362 20 23,974 19,820 21
Legal and
professional fees 7,531 8,590 (12) 16,091 17,311 (7)
Information
services 6,388 5,750 11 12,594 11,301 11
Depreciation and
amortization 5,460 5,122 7 10,962 10,122 8
Amortization of
intangibles 1,528 2,623 (42) 3,959 4,253 (7)
Marketing and
advertising 5,360 5,783 (7) 10,955 9,781 12
Office services 3,140 2,938 7 6,126 5,685 8
Equipment 746 797 (6) 1,659 1,515 10
Minority interest
expense 2,262 2,325 (3) 5,568 4,401 27
Other 9,121 7,446 22 15,078 13,352 13
-------- -------- -------- --------
Total noninterest
expense 141,518 132,640 7 284,665 256,429 11
-------- -------- -------- --------
Income Before Taxes 55,114 93,952 (41) 122,948 183,380 (33)
Applicable Income
Taxes 19,630 34,799 (44) 43,477 67,682 (36)
-------- -------- -------- --------
Net Income $ 35,484 $ 59,153 (40) $ 79,471 $115,698 (31)
======== ======== ======== ========
Other Data:
Earnings per
common share -
basic $ 0.74 $ 1.22 (39) $ 1.66 $ 2.39 (31)
Earnings per
common share -
diluted $ 0.73 $ 1.19 (39) $ 1.64 $ 2.34 (30)
Dividends paid per
common share $ 0.48 $ 0.46 4 $ 0.96 $ 0.92 4
Dividend payout
ratio 65.40% 38.22% 71 58.40% 38.65% 51
Return on average
assets 0.89% 1.54% (42) 1.01% 1.54% (34)
Return on average
shareholders'
equity 8.42% 14.79% (43) 9.44% 14.94% (37)
Net interest
margin (Fully
taxable-
equivalent) 4.23% 4.46% (5) 4.24% 4.48% (5)
Full-time
equivalent
employees 3,013 2,903 4
CITY NATIONAL CORPORATION
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(unaudited)
2008
----------------------------
(Dollars in thousands Second First Year to
except per share data) Quarter Quarter Date
--------------------------------------- -------- -------- --------
Interest Income $193,707 $207,752 $401,459
Interest Expense 43,539 59,587 103,126
-------- -------- --------
Net Interest Income 150,168 148,165 298,333
Provision for Credit Losses 35,000 17,000 52,000
Noninterest Income
Trust and investment fees 34,187 36,349 70,536
Brokerage and mutual fund fees 18,709 17,422 36,131
Cash management and
deposit transaction fees 12,196 11,124 23,320
International services 8,176 7,687 15,863
Bank-owned life insurance 628 655 1,283
Other service charges and fees 8,177 5,610 13,787
Loss on sale of other assets (192) -- (192)
Gain (loss) on sale of securities (417) 969 552
-------- -------- --------
Total noninterest income 81,464 79,816 161,280
Noninterest Expense
Salaries and employee benefits 87,520 90,179 177,699
Net occupancy of premises 12,462 11,512 23,974
Legal and professional fees 7,531 8,560 16,091
Information services 6,388 6,206 12,594
Depreciation and amortization 5,460 5,502 10,962
Amortization of intangibles 1,528 2,431 3,959
Marketing and advertising 5,360 5,595 10,955
Office services 3,140 2,986 6,126
Equipment 746 913 1,659
Minority interest expense 2,262 3,306 5,568
Other 9,121 5,957 15,078
-------- -------- --------
Total noninterest expense 141,518 143,147 284,665
-------- -------- --------
Income Before Taxes 55,114 67,834 122,948
Applicable Income Taxes 19,630 23,847 43,477
-------- -------- --------
Net Income $ 35,484 $ 43,987 $ 79,471
======== ======== ========
Other Data:
Earnings per common share - basic $ 0.74 $ 0.92 $ 1.66
Earnings per common share - diluted $ 0.73 $ 0.91 $ 1.64
Dividends paid per common share $ 0.48 $ 0.48 $ 0.96
Dividend payout ratio 65.40% 52.75% 58.40%
Return on average assets 0.89% 1.13% 1.01%
Return on average shareholders' equity 8.42% 10.46% 9.44%
Net interest margin (Fully
taxable-equivalent) 4.23% 4.26% 4.24%
Full-time equivalent employees 3,013 2,959
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 (loss) 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
Second First
(In thousands) Quarter Quarter
------------------------------------------- ----------- -----------
Assets
Cash and due from banks $ 513,736 $ 514,878
Federal funds sold -- 1,000
Due from banks - interest-bearing 88,149 77,567
Securities-available-for-sale 2,302,982 2,389,459
Trading account securities 204,825 121,152
Loans and leases:
Commercial 4,703,307 4,442,448
Commercial real estate mortgages 2,016,090 2,011,221
Residential mortgages 3,319,741 3,215,871
Real estate construction 1,483,193 1,462,641
Equity lines of credit 495,334 449,177
Installment 160,665 173,507
----------- -----------
Total loans and leases 12,178,330 11,754,865
Allowance for loan and lease losses (185,070) (168,278)
----------- -----------
Net loans and leases 11,993,260 11,586,587
Premises and equipment, net 122,959 119,243
Goodwill and other intangibles 514,584 514,811
Other assets 598,763 609,335
----------- -----------
Total assets $16,339,258 $15,934,032
=========== ===========
Liabilities
Deposits:
Noninterest-bearing $ 5,861,823 $ 5,680,845
Interest-bearing 6,034,514 6,111,524
----------- -----------
Total deposits 11,896,337 11,792,369
Federal funds purchased and securities sold
under repurchase agreements 1,221,428 1,118,478
Other short-term borrowed funds 955,000 720,992
Subordinated debt 157,080 162,813
Other long-term debt 237,867 243,439
Minority interest 32,300 32,199
Other liabilities 171,598 181,414
----------- -----------
Total liabilities 14,671,610 14,251,704
Shareholders' Equity
Common stock 50,972 50,982
Additional paid-in capital 421,689 419,044
Retained earnings 1,403,062 1,390,781
Accumulated other
comprehensive loss (24,853) (3,431)
Treasury shares (183,222) (175,048)
----------- -----------
Total shareholders' equity 1,667,648 1,682,328
----------- -----------
Total liabilities and shareholders'
equity $16,339,258 $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
------------------------------
Second First Year To
(Dollars in thousands) Quarter Quarter Date
------------------------------------ -------- -------- --------
Allowance for Loan and Lease Losses
Balance at beginning of period $168,278 $168,523 $168,523
Allowance of acquired institution -- -- --
Net (charge-offs)/recoveries:
Commercial (5,734) (1,573) (7,307)
Commercial real estate mortgages -- 12 12
Residential mortgages 10 8 18
Real estate construction (13,196) (10,217) (23,413)
Equity lines of credit -- (239) (239)
Installment 4 (78) (74)
-------- -------- --------
Total net (charge-offs)/recoveries (18,916) (12,087) (31,003)
Provision for credit losses 35,000 17,000 52,000
Transfers from(to) reserve for
off-balance sheet credit commitments 708 (5,158) (4,450)
-------- -------- --------
Balance at end of period $185,070 $168,278 $185,070
======== ======== ========
Net (Charge-Offs)/Recoveries to
Average Total Loans and Leases:
(annualized)
Commercial (0.49)% (0.14)% (0.32)%
Commercial real estate mortgages 0.00% 0.00% 0.00%
Residential mortgage 0.00% 0.00% 0.00%
Real estate construction (3.61)% (2.81)% (3.21)%
Equity lines of credit 0.00% (0.22)% (0.11)%
Installment 0.01% (0.18)% (0.09)%
Total loans and leases (0.63)% (0.42)% (0.53)%
Reserve for Off-Balance Sheet Credit
Commitments
Balance at beginning of period $ 24,862 $ 19,704 $ 19,704
Recovery of prior charge-off -- -- --
Reserve of acquired institution -- -- --
Transfers (to)from allowance (708) 5,158 4,450
-------- -------- --------
Balance at end of period $ 24,154 $ 24,862 $ 24,154
======== ======== ========
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 Second First Fourth Third Second First
thousands) Quarter Quarter Quarter Quarter Quarter Quarter
------------- -------- -------- ------- ------- ------- -------
Nonaccrual
Loans
Commercial $ 16,444 $ 16,293 $17,103 $ 7,673 $ 3,998 $ 7,024
Commercial
real estate
mortgages 723 1,841 1,621 1,970 4,732 4,783
Residential
mortgages 549 706 387 394 378 --
Real estate
construction 86,301 93,296 55,632 15,513 12,566 11,199
Equity lines
of credit 1,398 1,422 679 502 452 362
Installment 762 64 139 175 182 49
-------- -------- ------- ------- ------- -------
Total
nonaccrual
loans 106,177 113,622 75,561 26,227 22,308 23,417
Other
Nonperforming
Assets 9,113 3,812 -- -- -- --
-------- -------- ------- ------- ------- -------
Total
nonperforming
assets $115,290 $117,434 $75,561 $26,227 $22,308 $23,417
======== ======== ======= ======= ======= =======
Loans 90 Days
or More Past
Due on Accrual
Status $ 2 -- $ 1 -- -- $ 199
Allowance for
loan and lease
losses as a
percentage of:
Nonaccrual
loans 174.30% 148.10% 223.03% 579.63% 707.58% 687.55%
Total
nonperforming
assets 160.53% 143.30% 223.03% 579.63% 707.58% 687.55%
Total loans
and leases 1.52% 1.43% 1.45% 1.36% 1.43% 1.51%
Nonaccrual
loans as a
percentage of
total loans 0.87% 0.97% 0.65% 0.23% 0.20% 0.22%
Nonperforming
assets as a
percentage of:
Total loans
and other
nonperforming
assets 0.95% 1.00% 0.65% 0.23% 0.20% 0.22%
Total assets 0.71% 0.74% 0.48% 0.17% 0.14% 0.15%
CITY NATIONAL CORPORATION
AVERAGE BALANCES AND RATES
(unaudited)
2008
---------------------------------------------------
Second Quarter First Quarter Year to Date
--------------- ---------------- ---------------
(Dollars in Average Average Average Average Average Average
millions) Balance Rate Balance Rate Balance Rate
---------------- ------- ------- ------- ------- ------- -------
Assets
Interest-earning
assets
Loans and leases
Commercial $ 4,675 5.30% $ 4,456 6.28% $ 4,566 5.78%
Commercial real
estate
mortgages 2,009 6.50 1,975 6.84 1,992 6.67
Residential
mortgages 3,271 5.57 3,179 5.61 3,225 5.59
Real estate
construction 1,470 5.43 1,464 6.47 1,467 5.95
Equity lines of
credit 470 4.45 438 5.65 454 5.03
Installment 164 5.88 177 6.49 170 6.20
------- ------- -------
Total loans and
leases 12,059 5.57 11,689 6.20 11,874 5.88
Due from banks -
interest-
bearing 95 2.24 78 2.69 87 2.44
Federal funds
sold and
securities
purchased under
resale
agreements 9 2.54 8 3.33 8 2.90
Securities
available-for-
sale 2,351 4.89 2,446 4.81 2,399 4.85
Trading account
securities 102 1.65 78 3.11 90 2.28
Other interest-
earning assets 79 5.24 72 5.75 75 5.48
------- ------- -------
Total interest-
earning assets 14,695 5.42 14,371 5.93 14,533 5.67
Allowance for
loan and lease
losses (163) (165) (164)
Cash and due
from banks 386 379 383
Other non-
earning
assets 1,160 1,139 1,148
------- ------- -------
Total assets $16,077 $15,724 $15,900
======= ======= =======
Liabilities and
Shareholders'
Equity
Interest-bearing
deposits
Interest
checking
accounts $ 867 0.70% $ 823 0.69% $ 845 0.70%
Money market
accounts 3,738 1.70 3,610 2.47 3,674 2.08
Savings deposits 133 0.28 135 0.36 134 0.32
Time deposits -
under $100,000 208 2.89 220 3.54 214 3.22
Time deposits -
$100,000 and
over 1,143 2.94 1,329 3.99 1,236 3.51
------- ------- -------
Total interest-
bearing
deposits 6,089 1.80 6,117 2.55 6,103 2.18
Federal funds
purchased and
securities sold
under
repurchase
agreements 1,262 2.42 1,141 3.39 1,202 2.88
Other borrowings 1,193 2.91 1,119 4.00 1,156 3.44
------- ------- -------
Total interest-
bearing
liabilities 8,544 2.05 8,377 2.86 8,461 2.45
Noninterest-
bearing deposits 5,606 5,404 5,505
Other liabilities 232 251 241
Shareholders'
equity 1,695 1,691 1,693
------- ------- -------
Total
liabilities and
shareholders'
equity $16,077 $15,724 $15,900
======= ======= =======
Net interest
spread 3.37% 3.07% 3.22%
==== ==== ====
Net interest
margin 4.23% 4.26% 4.24%
==== ==== ====
Average prime rate 5.08% 6.22% 5.65%
==== ==== ====
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
------------------------------
Second First Year To
Quarter Quarter Date
-------- -------- --------
Per Common Share
----------------
Shares Outstanding (in thousands):
Average - Basic 47,849 47,829 47,839
Average - Diluted 48,447 48,517 48,482
Period-End 47,777 47,871
Book Value $ 34.90 $ 35.14
Closing price:
High $ 51.75 $ 60.00 $ 60.00
Low 40.98 48.57 40.98
Period-end 42.07 49.46
Capital Ratios (Dollars in millions)
------------------------------------
Risk-based capital
Risk-adjusted assets $ 13,193 $ 12,852
Tier I capital $ 1,224 $ 1,222
Percentage of risk adjusted assets 9.28% 9.51%
Total capital $ 1,479 $ 1,473
Percentage of risk adjusted assets 11.21% 11.46%
Tier I leverage ratio 7.89% 8.06%
Period-end shareholders' equity to
total period-end assets 10.21% 10.56%
Period-end tangible shareholders'
equity to total period-end tangible
assets 7.29% 7.57%
Average shareholders' equity to total
average assets 10.54% 10.75% 10.65%
Average tangible shareholders' equity
to total average tangible assets 7.59% 7.71% 7.65%
2007
-----------------------------------------------
Fourth Third Second First Full
Quarter Quarter Quarter Quarter Year
------- ------- ------- ------- -------
Per Common Share
----------------
Shares Outstanding
(in thousands):
Average - Basic 47,947 48,345 48,675 47,968 48,234
Average - Diluted 48,869 49,408 49,838 49,087 49,290
Period-End 47,830 48,064 48,831 48,602
Book Value $ 34.61 $ 33.99 $ 33.20 $ 32.72
Closing price:
High $ 72.97 $ 78.00 $ 78.39 $ 75.39 $ 78.39
Low 59.10 69.00 72.30 68.00 59.10
Period-end 59.55 69.51 76.09 73.60
Capital Ratios
(Dollars in millions)
----------------------
Risk-based capital
Risk-adjusted assets $12,886 $12,234 $12,067 $11,618
Tier I capital $ 1,199 $ 1,171 $ 1,185 $ 1,234
Percentage of risk
adjusted assets 9.31% 9.57% 9.82% 10.62%
Total capital $ 1,453 $ 1,470 $ 1,481 $ 1,524
Percentage of risk
adjusted assets 11.27% 12.01% 12.28% 13.12%
Tier I leverage ratio 7.97% 7.80% 7.97% 8.59%
Period-end
shareholders' equity
to total period-end
assets 10.42% 10.51% 10.26% 10.42%
Period-end tangible
shareholders' equity
to total period-end
tangible assets 7.39% 7.43% 7.22% 7.88%
Average shareholders'
equity to total
average assets 10.59% 10.41% 10.38% 10.24% 10.41%
Average tangible
shareholders' equity
to total average
tangible assets 7.52% 7.33% 7.67% 8.18% 7.67%
Senior Debt Credit Ratings
--------------------------
For The Period Ended June 30, 2008 Standard &
Moody's Fitch Poor's DBRS
------- ----- ---------- -------
City National Bank Aa3 A- A A (high)
City National Corporation A1 A- A- A