LOS ANGELES, Oct. 17, 2007 (PRIME NEWSWIRE) -- City National Corporation (NYSE:CYN), the parent company of wholly owned City National Bank, today reported third-quarter 2007 net income of $60.1 million, or $1.22 per share, up from $59.0 million, or $1.20 per share, for the third quarter of 2006.
Year to date, City National has earned $175.8 million, or $3.56 per share, on revenue of $675.1 million. In the first three quarters of 2006, the company earned net income of $175.0 million, or $3.47 per share, on revenue of $633.4 million. Earnings per share grew 3 percent from the first three quarters of 2006.
THIRD-QUARTER HIGHLIGHTS
* City National's third-quarter average loan balances grew to a record $11.2 billion, up 12 percent from the third quarter of 2006. * Average deposits were $12.4 billion, up 5 percent from the third quarter of 2006. Average core deposits were $10.4 billion, also up 5 percent. * Noninterest income grew to $81.2 million, a 26 percent increase from the third quarter of 2006, and now accounts for 35 percent of City National's total revenue. * Assets under direct management amounted to $37.1 billion, a 37 percent increase from the third quarter of 2006. Assets under management or administration grew 23 percent to $59.2 billion. * The company required no provision for credit losses and remained adequately reserved at 1.36 percent of total loans. * City National's third-quarter return on average equity was 14.69 percent and its return on average assets was 1.53 percent.
"City National's solid third-quarter performance in a more challenging economic environment underscores the fundamental strength and focus of our business," said President and Chief Executive Officer Russell Goldsmith. "Loans and revenue from wealth management, cash management and international services grew at double-digit rates. Deposits were stable and expense growth was moderate, taking into account our two recent acquisitions. Credit quality continued to hold up reasonably well despite the softness in the home-building sector of the economy. City National's consistent performance in this quarter also reflects the fact that it does not have any subprime mortgages or subprime CDOs in our loan or securities portfolios."
For the three months ended For the
September 30, three months
-------------------------- ended
Dollars in millions, % June 30, %
except per share 2007 2006 Change 2007 Change
--------------------- ---------- --------- ------- ---------- ------
Earnings Per Share $ 1.22 $ 1.20 2 $ 1.19 3
Net Income 60.1 59.0 2 59.2 2
Average Assets 15,595.0 14,544.6 7 15,452.6 1
Return on Average
Assets 1.53% 1.61% (5) 1.54% (1)
Return on Average
Equity 14.69 16.30 (10) 14.79 (1)
ASSETS
Total assets at September 30, 2007 were $15.5 billion, up 6 percent from one year ago, primarily due to City National's loan growth as well as the February 28, 2007 acquisition of Business Bank of Nevada.
REVENUE
Third-quarter revenue totaled $235.0 million, up 10 percent from the third quarter of 2006, due principally to the company's May 1, 2007 acquisition of Convergent Wealth Advisors, as well as the Business Bank of Nevada acquisition.
NET INTEREST INCOME
Fully taxable-equivalent net interest income reached $158.1 million in the third quarter of 2007, compared with $152.8 million for the same period last year. Fully taxable-equivalent net interest income in the second quarter of 2007 was $157.4 million.
Lending activity continued to grow in the third quarter. Average loan balances reached $11.2 billion, up 12 percent from one year ago and 2 percent from the second quarter of 2007.
Average commercial loans increased 18 percent from the same period last year and 1 percent from the second quarter of 2007. Average commercial real estate and construction loans together were up 8 percent from the third quarter of 2006 and 2 percent from the second quarter of this year. Average single-family residential mortgage lending rose 9 percent from one year ago and 3 percent from the second quarter of 2007. (City National does not make subprime or option adjustable rate mortgage loans.)
Average securities totaled $2.8 billion in the third quarter of 2007, down $413 million from one year ago and $113 million from the second quarter of 2007. The average duration of total available-for-sale securities at September 30, 2007 was 3.4 years, compared with 3.3 years at the end of the third quarter of 2006.
At September 30, 2007, the bank's prime rate was 7.75 percent, 50 basis points lower than it was at both September 30, 2006 and June 30, 2007.
For the three months ended For the
September 30, three months
-------------------------- ended
% June 30, %
Dollars in millions 2007 2006 Change 2007 Change
------------------- ------------ ------- ------- ---------- ------
Average Loans $11,191.1 $10,013.1 12 $11,010.9 2
Average Total
Securities 2,831.7 3,244.9 (13) 2,945.1 (4)
Average Earning
Assets 14,199.6 13,368.9 6 14,129.5 0
Average Deposits 12,442.2 11,905.2 5 12,569.9 (1)
Average Core
Deposits 10,388.0 9,905.8 5 10,503.4 (1)
Fully Taxable-
Equivalent
Net Interest Income 158.1 152.8 4 157.4 0
Net Interest Margin 4.42% 4.53% (2) 4.47% (1)
City National's third-quarter net interest margin was 4.42 percent, compared with 4.53 percent during the same period last year and 4.47 percent in the second quarter of 2007. The 5 basis-point decline from the second quarter of this year was due primarily to loan growth and a decline in demand deposits related to the title and escrow business.
Average deposits totaled $12.4 billion, an increase of 5 percent from the third quarter of 2006 due primarily to the acquisition of Business Bank of Nevada as well as the growth of interest-bearing and time deposits. Average deposits were down 1 percent from the second quarter of this year.
Average noninterest-bearing deposits fell 3 percent from the third quarter of 2006 and 1 percent from the second quarter of this year, due to a decline in title and escrow deposit balances. Excluding title and escrow balances, noninterest-bearing deposits increased 1 percent from both the prior year and the prior quarter.
With the slowdown in housing sales, third-quarter title and escrow deposit balances averaged $1.18 billion, compared with $1.25 billion in the third quarter of 2006 and $1.26 billion in the second quarter of this year.
NONINTEREST INCOME
Noninterest income reached $81.2 million in the third quarter of 2007, a 26 percent increase from the same period one year ago. Excluding the second-quarter acquisition of Convergent Wealth Advisors and the previously disclosed disposition of another investment affiliate in the fourth quarter of last year, third-quarter noninterest income grew 15 percent from the same period in 2006.
At September 30, 2007, noninterest income accounted for 35 percent of City National's total revenue for the first time, up from 30 percent at September 30, 2006.
Wealth Management
City National's assets under management or administration grew to a record $59.2 billion in the third quarter. As a result, trust and investment fees increased 25 percent over the same time last year. Third-quarter brokerage and mutual fund fees grew 19 percent from the third quarter of 2006.
At or for the three months At or for the
ended September 30, three months
-------------------------- ended
% June 30, %
Dollars in millions 2007 2006 Change 2007 Change
------------------- ------------ ------- ------- ---------- ------
Trust and Investment
Fee Revenue $ 37.5 $ 30.0 25 $ 34.8 8
Brokerage and
Mutual Fund Fees 15.5 13.1 19 14.0 11
Assets Under
Management (1) 37,145.2 27,168.0 37 35,849.9 4
Total Assets
Under Management or
Administration (1) 59,243.5 48,275.7 23 57,328.6 3
(1) Excludes $12.1 billion, $7.8 billion, and $10.5 billion of assets
under management for an asset manager in which City National held
a minority ownership interest as of September 30, 2007,
September 30, 2006, and June 30, 2007, respectively.
Other Noninterest Income
Fee income from foreign exchange services and letters of credit grew 17 percent from the third quarter of 2006 and 6 percent from the second quarter of this year.
Income from cash management and deposit transaction fees rose 10 percent from the third quarter of last year and 4 percent from the second quarter of 2007, due largely to an increase in sales to new and existing clients.
Other service charges and fees were $7.3 million in the third quarter of 2007, up $1.1 million from one year ago.
The gain on sale of other assets was due largely to a $5.1 million gain from the recovery of an investment in liquidation, which was mostly offset by a $2.5 million loss on the sale of securities and approximately $1.2 million in additional income tax expense related to the expected resolution of two pending federal income tax matters.
NONINTEREST EXPENSE
Third-quarter 2007 noninterest expense amounted to $137.4 million, up 14 percent from the third quarter of 2006 and 3 percent from the second quarter of this year. Excluding the acquisitions of Convergent Wealth Advisors and Business Bank of Nevada, noninterest expense grew 5 percent from the third quarter of last year.
City National's efficiency ratio for the third quarter of 2007 was 57.67 percent, compared with 55.65 percent one year ago and 57.73 percent for the second quarter of this year. The year-over-year increase was due primarily to more normalized core deposit pricing and the continued expansion of City National's fee-based businesses, including the addition of Convergent Wealth Advisors.
CREDIT QUALITY
The quality of City National's $11.2 billion loan portfolio remained sound in the third quarter. At September 30, 2007, nonaccrual loans were $26.2 million, compared with $18.8 million at the same time last year and $22.3 million in the second quarter of 2007. Net loan charge-offs were $3.6 million in the third quarter of 2007, compared with net recoveries of $1.9 million in the third quarter of 2006 and net charge-offs of $2.3 million in the second quarter of this year.
Recent upheaval in the credit markets has had an impact on the nation's residential and for-sale housing industry. City National has two housing-related loan portfolios: The company makes loans to residential borrowers and for-sale housing developers. City National's $3.1 billion residential mortgage portfolio contains no subprime credits or option adjustable rate mortgage loans. The company makes mortgage loans as an accommodation to its private banking clients. These loans have an average loan-to-value ratio of 51 percent at origination.
City National's for-sale housing loans represent less than 5 percent of its $11.2 billion loan portfolio. Although today's market conditions are placing additional stress on the housing industry, City National's for-sale housing loans typically are recourse loans to borrowers with significant equity in their projects, most of which are in Southern California.
City National made no provision for credit losses in the third quarter. At September 30, 2007, the allowance for loan and lease losses was $152 million, or 1.36 percent of total loans. Continued organic loan growth and the possible effects of a further weakened economy increase the likelihood of provisioning in the future.
INCOME TAXES
The company's third-quarter 2007 effective tax rate was 38.4 percent, compared to 36.5 percent in the third quarter of last year and 37.0 percent in the second quarter of this year. The increase in the third-quarter effective tax rate from the second quarter of this year is primarily due to additional income tax expense related to the expected resolution of two pending federal income tax matters.
2007 OUTLOOK
City National's management continues to expect earnings per share this year to grow at a rate of between 3 percent and 5 percent as compared with 2006.
CAPITAL LEVELS
City National remains well capitalized. Total risk-based capital and Tier 1 risk-based capital ratios at September 30, 2007 were 12.01 percent and 9.57 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 September 30, 2007 was 7.80 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 June 30, 2007 were 12.28 percent, 9.82 percent and 7.97 percent, respectively.
The period-end ratio of shareholders' equity to total assets at September 30, 2007 was 10.51 percent, compared to 9.91 percent at the same time last year, and 10.26 percent at June 30, 2007.
STOCK REPURCHASE
During the third quarter of 2007, City National repurchased 858,400 of its outstanding shares at an average cost per share of $71.41. Through the first nine months of this year, it bought back 1,137,900 shares at an average cost of $71.62. On August 7, 2007, City National's board of directors authorized the company to repurchase 1 million additional shares of the company's stock, following completion of its previously approved stock buyback initiative. The company is currently authorized to repurchase an additional 919,800 shares.
CONFERENCE CALL
City National Corporation will host a conference call this afternoon to discuss results for the third quarter of 2007. 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) 713-8567 and enter pass code 10279688. 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 more than 60 offices, including 15 full-service regional centers, in Southern California, the San Francisco Bay Area, Nevada and New York City. The company and its nine investment affiliates manage or administer $59.2 billion in client assets, including $37.1 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 interest rates, (2) significant changes in banking laws or regulations, (3) increased competition in the company's markets, (4) other-than-expected credit losses due to business losses, real estate cycles or other economic events, (5) earthquake or other natural disasters affecting the condition of real estate collateral, (6) the effect of acquisitions and integration of acquired businesses and de novo branching efforts, (7) the impact of changes in regulatory, judicial or legislative tax treatment of business transactions, (8) changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies, and (9) general business and economic conditions, including movements in interest rates, the slope of the yield curve and changes in business formation and growth, commercial real estate development and real estate prices.
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, 2006 and particularly Part I, Item 1A, titled "Risk Factors."
CITY NATIONAL CORPORATION
FINANCIAL HIGHLIGHTS
(unaudited)
Three Months
-----------------------------
For The Period Ended September 30, 2007 2006 % Change
--------------------------------- -----------------------------
Per Common Share
Net Income
Basic $ 1.24 $ 1.23 1
Diluted 1.22 1.20 2
Dividends 0.46 0.41 12
Book value
Results of Operations: (In millions)
Interest income $ 230 $ 208 10
Interest expense 76 59 28
-------- --------
Net interest income 154 149 3
Net interest income
(Fully taxable-equivalent) 158 153 4
Total revenue 235 214 10
Provision for credit losses -- -- NM
Net income 60 59 2
Financial Ratios:
Performance Ratios:
Return on average assets 1.53% 1.61%
Return on average shareholders'
equity 14.69 16.30
Period-end shareholders' equity
to period-end assets
Net interest margin 4.42 4.53
Efficiency ratio 57.67 55.65
Asset Quality Ratios:
Allowance for loan and lease losses to:
Total loans
Nonaccrual loans
Nonperforming assets to:
Total loans and nonperforming
assets
Total assets
Net (charge-offs)/recoveries to
Average total loans (annualized) (0.13)% 0.08%
Average Balances: (In millions)
Loans $ 11,191 $ 10,013 12
Interest-earning assets 14,200 13,368 6
Assets 15,595 14,545 7
Core deposits 10,388 9,906 5
Deposits 12,442 11,905 5
Interest-bearing liabilities 8,250 7,235 14
Shareholders' equity 1,623 1,436 13
Nine Months
-----------------------------
For The Period Ended September 30, 2007 2006 % Change
--------------------------------- -----------------------------
Per Common Share
Net Income
Basic $ 3.64 $ 3.59 1
Diluted 3.56 3.47 3
Dividends 1.38 1.23 12
Book value 33.99 30.40 12
Results of Operations: (In millions)
Interest income $ 670 $ 613 9
Interest expense 216 158 37
-------- --------
Net interest income 454 455 --
Net interest income
(Fully taxable-equivalent) 467 467 --
Total revenue 675 633 7
Provision for credit losses -- (1) (100)
Net income 176 175 --
Financial Ratios:
Performance Ratios:
Return on average assets 1.54% 1.59%
Return on average shareholders'
equity 14.85 16.06
Period-end shareholders' equity
to period-end assets 10.51 9.91
Net interest margin 4.46 4.60
Efficiency ratio 57.54 55.22
Capital Adequacy Ratios (Period end):
Tier 1 leverage 7.80 8.58
Tier 1 risk-based capital 9.57 11.09
Total risk-based capital 12.01 14.12
Asset Quality Ratios:
Allowance for loan and lease losses to:
Total loans 1.36% 1.59%
Nonaccrual loans 579.63 847.03
Nonperforming assets to:
Total loans and nonperforming
assets 0.23 0.19
Total assets 0.17 0.13
Net (charge-offs)/recoveries to
Average total loans (annualized) (0.06)% 0.08%
Average Balances: (In millions)
Loans $ 10,921 $ 9,848 11
Interest-earning assets 13,999 13,564 3
Assets 15,297 14,717 4
Core deposits 10,314 10,171 1
Deposits 12,312 11,809 4
Interest-bearing liabilities 7,992 7,303 9
Shareholders' equity 1,582 1,457 9
Period-End Balances: (In millions)
Loans $ 11,190 $ 10,020 12
Assets 15,548 14,616 6
Core deposits 10,426 9,901 5
Deposits 12,181 11,892 2
Shareholders' equity 1,634 1,448 13
Wealth Management: (In millions) (a) $ 37,145 $ 27,168 37
Assets under management
Assets under management or 59,244 48,276 23
administration
(a) Excludes $12.1 billion and $7.8 billion of assets under
management for an asset manager in which City National held a
minority ownership interest as of September 30, 2007 and
September 30, 2006, respectively.
CITY NATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three Months Ended
September 30,
(Dollars in thousands --------------------------------
except per share data) 2007 2006 % Change
----------------------------------- --------------------------------
Interest income $ 230,103 $ 208,432 10
Interest expense 76,340 59,625 28
--------- ---------
Net Interest Income 153,763 148,807 3
Provision for Credit Losses -- -- NM
Noninterest Income
Trust and investment fees 37,488 30,002 25
Brokerage and mutual fund fees 15,546 13,096 19
Cash management and
deposit transaction fees 8,801 7,967 10
International services 7,995 6,829 17
Bank-owned life insurance 645 685 (6)
Other service charges and fees 7,251 6,218 17
Gain on sale of other assets 6,023 268 NM
Loss on sale of securities (2,516) (362) 595
--------- ---------
Total noninterest income 81,233 64,703 26
Noninterest Expense
Salaries and employee benefits 84,057 75,318 12
Net occupancy of premises 11,837 10,207 16
Legal and professional fees 8,614 8,416 2
Information services 5,442 4,969 10
Depreciation 5,275 4,832 9
Amortization of intangibles 2,852 (37) NM
Marketing and advertising 5,079 4,495 13
Office services 3,287 2,623 25
Equipment 867 514 69
Minority interest expense 2,211 1,808 22
Other 7,913 7,524 5
--------- ---------
Total noninterest expense 137,434 120,669 14
--------- ---------
Income Before Taxes 97,562 92,841 5
Applicable Income Taxes 37,469 33,847 11
--------- ---------
Net Income $ 60,093 $ 58,994 2
========= =========
Other Data:
Earnings per common share - basic $ 1.24 $ 1.23 1
Earnings per common share - diluted $ 1.22 $ 1.20 2
Dividends paid per common share $ 0.46 $ 0.41 12
Dividend payout ratio 37.26 % 33.64 % 11
Return on average assets 1.53 % 1.61 % (5)
Return on average shareholders'
equity 14.69 % 16.30 % (10)
Net interest margin (Fully taxable-
equivalent) 4.42 % 4.53 % (2)
Full-time equivalent employees 2,878 2,672 8
Nine Months Ended
September 30,
--------------------------------
2007 2006 % Change
--------------------------------
Interest income $ 670,440 $ 612,905 9
Interest expense 216,233 157,617 37
--------- ---------
Net Interest Income 454,207 455,288 (0)
Provision for Credit Losses -- (610) (100)
Noninterest Income
Trust and investment fees 102,565 76,685 34
Brokerage and mutual fund fees 43,284 37,049 17
Cash management and
deposit transaction fees 25,744 23,722 9
International services 22,020 19,688 12
Bank-owned life insurance 2,030 2,296 (12)
Other service charges and fees 20,630 18,806 10
Gain on sale of other assets 5,977 268 NM
Loss on sale of securities (1,381) (370) 273
--------- ---------
Total noninterest income 220,869 178,144 24
Noninterest Expense
Salaries and employee benefits 242,945 220,652 10
Net occupancy of premises 31,657 28,679 10
Legal and professional fees 25,925 25,671 1
Information services 15,955 14,073 13
Depreciation 15,397 14,154 9
Amortization of intangibles 7,105 3,828 86
Marketing and advertising 14,860 13,501 10
Office services 8,972 7,863 14
Equipment 2,382 1,769 35
Minority interest expense 6,612 4,249 56
Other 22,324 20,725 8
--------- ---------
Total noninterest expense 394,134 355,164 11
--------- ---------
Income Before Taxes 280,942 278,878 1
Applicable Income Taxes 105,151 103,911 1
--------- ---------
Net Income $ 175,791 $ 174,967 0
========= =========
Other Data:
Earnings per common share - basic $ 3.64 $ 3.59 1
Earnings per common share - diluted $ 3.56 $ 3.47 3
Dividends paid per common share $ 1.38 $ 1.23 12
Dividend payout ratio 38.18 % 34.57 % 10
Return on average assets 1.54 % 1.59 % (3)
Return on average shareholders'
equity 14.85 % 16.06 % (8)
Net interest margin (Fully taxable-
equivalent) 4.46 % 4.60 % (3)
CITY NATIONAL CORPORATION
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(unaudited)
(Dollars in 2007
thousands --------------------------------------------
except per Third Second First Year to
share data) Quarter Quarter Quarter Date
------------------- -------- -------- -------- --------
Interest Income $230,103 $226,046 $214,291 $670,440
Interest Expense 76,340 72,921 66,972 216,233
-------- -------- -------- --------
Net Interest
Income 153,763 153,125 147,319 454,207
Provision for
Credit Losses -- -- -- --
Noninterest Income
Trust and
investment fees 37,488 34,823 30,254 102,565
Brokerage and
mutual fund fees 15,546 13,958 13,780 43,284
Cash management
and deposit
transaction fees 8,801 8,472 8,471 25,744
International
services 7,995 7,562 6,463 22,020
Bank-owned life
insurance 645 761 624 2,030
Other service
charges and fees 7,251 7,246 6,133 20,630
Gain (loss) on
sale of other
assets 6,023 -- (46) 5,977
Gain (loss) on
sale of
securities (2,516) 866 269 (1,381)
-------- -------- -------- --------
Total
noninterest
income 81,233 73,688 65,948 220,869
Noninterest Expense
Salaries and
employee
benefits 84,057 80,904 77,984 242,945
Net occupancy
of premises 11,837 10,362 9,458 31,657
Legal and
professional
fees 8,614 8,590 8,721 25,925
Information
services 5,442 5,464 5,049 15,955
Depreciation 5,275 5,122 5,000 15,397
Amortization of
intangibles 2,852 2,623 1,630 7,105
Marketing and
advertising 5,079 5,783 3,998 14,860
Office services 3,287 2,938 2,747 8,972
Equipment 867 797 718 2,382
Minority interest
expense 2,211 2,325 2,076 6,612
Other 7,913 7,953 6,458 22,324
-------- -------- -------- --------
Total noninterest
expense 137,434 132,861 123,839 394,134
-------- -------- -------- --------
Income Before Taxes 97,562 93,952 89,428 280,942
Applicable Income
Taxes 37,469 34,799 32,883 105,151
Net Income $ 60,093 $ 59,153 $ 56,545 $175,791
======== ======== ======== ========
Other Data:
Earnings per
common share -
basic $ 1.24 $ 1.22 $ 1.18 $ 3.64
Earnings per
common share -
diluted $ 1.22 $ 1.19 $ 1.15 $ 3.56
Dividends paid
per common share $ 0.46 $ 0.46 $ 0.46 $ 1.38
Dividend payout
ratio 37.26% 38.22% 39.11% 38.18%
Return on average
assets 1.53% 1.54% 1.55% 1.54%
Return on average
shareholders'
equity 14.69% 14.79% 15.10% 14.85%
Net interest
margin (Fully
taxable-
equivalent) 4.42% 4.47% 4.49% 4.46%
Full-time
equivalent
employees 2,878 2,903 2,800
CITY NATIONAL CORPORATION
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
(unaudited)
(Dollars in 2006
thousands ---------------------------------------------------
except per Fourth Third Second First Full
share data) Quarter Quarter Quarter Quarter Year
------------ -------- -------- -------- -------- --------
Interest
Income $213,583 $208,432 $206,249 $198,224 $826,488
Interest
Expense 62,788 59,625 52,206 45,786 220,405
-------- -------- -------- -------- --------
Net Interest
Income 150,795 148,807 154,043 152,438 606,083
Provision for
Credit
Losses -- -- (610) -- (610)
Noninterest Income
Trust and
investment
fees 30,777 30,002 24,909 21,774 107,462
Brokerage and
mutual fund
fees 13,309 13,096 12,269 11,684 50,358
Cash
management
and deposit
transaction
fees 7,909 7,967 7,691 8,064 31,631
International
services 6,486 6,829 6,870 5,989 26,174
Bank-owned
life
insurance 700 685 677 934 2,996
Other service
charges and
fees 6,693 6,218 6,843 5,745 25,499
Gain on sale
of other
assets 2,482 268 -- -- 2,750
Gain (loss)
on sale of
securities (4,130) (362) (716) 708 (4,500)
-------- -------- -------- -------- --------
Total
noninterest
income 64,226 64,703 58,543 54,898 242,370
Noninterest Expense
Salaries and
employee
benefits 74,499 75,318 73,718 71,616 295,151
Net occupancy
of premises 11,562 10,207 9,460 9,012 40,241
Legal and
professional
fees 9,327 8,416 8,481 8,774 34,998
Information
services 5,197 4,969 4,592 4,512 19,270
Depreciation 4,908 4,832 4,662 4,660 19,062
Amortization
of
intangibles 1,456 (37) 1,974 1,891 5,284
Marketing and
advertising 5,153 4,495 4,990 4,016 18,654
Office
services 2,888 2,623 2,549 2,691 10,751
Equipment 1,043 514 623 632 2,812
Minority
interest
expense 1,709 1,808 1,213 1,228 5,958
Other 9,271 7,524 6,910 6,291 29,996
-------- -------- -------- -------- --------
Total
noninterest
expense 127,013 120,669 119,172 115,323 482,177
-------- -------- -------- -------- --------
Income Before
Taxes 88,008 92,841 94,024 92,013 366,886
Applicable
Income Taxes 29,452 33,847 35,283 34,781 133,363
-------- -------- -------- -------- --------
Net Income $ 58,556 $ 58,994 $ 58,741 $ 57,232 $233,523
======== ======== ======== ======== ========
Other Data
Earnings per
common share
- basic $ 1.23 $ 1.23 $ 1.20 $ 1.16 $ 4.82
Earnings per
common share
- diluted $ 1.19 $ 1.20 $ 1.16 $ 1.12 $ 4.66
Dividends
paid per
common
share $ 0.41 $ 0.41 $ 0.41 $ 0.41 $ 1.64
Dividend
payout ratio 33.55% 33.64% 34.43% 35.65% 34.31%
Return on
average
assets 1.58% 1.61% 1.59% 1.57% 1.59%
Return on
average
shareholders'
equity 15.77% 16.30% 16.20% 15.68% 15.99%
Net interest
margin
(Fully
taxable-
equivalent) 4.52% 4.53% 4.65% 4.62% 4.58%
Full-time
equivalent
employees 2,670 2,672 2,648 2,570
CITY NATIONAL CORPORATION
CONSOLIDATED PERIOD END BALANCE SHEET
(unaudited)
2007
--------------------------------------
Third Second First
(In thousands) Quarter Quarter Quarter
----------------------------------------------------------------------
Assets
Cash and due from banks $ 462,151 $ 513,463 $ 494,231
Federal funds sold -- 170,000 210,000
Due from banks -
interest-bearing 95,047 139,539 77,214
Securities-available-for-sale 2,565,754 2,798,538 2,903,546
Trading account securities 192,162 117,456 35,981
Loans:
Commercial 4,216,048 4,158,131 4,030,601
Commercial real
estate mortgages 1,894,753 1,947,218 1,877,695
Residential mortgages 3,114,335 3,009,546 2,895,516
Real estate construction 1,391,034 1,309,322 1,263,059
Equity lines of credit 404,869 409,505 388,279
Installment 169,041 185,112 194,448
--------------------------------------
Total loans 11,190,080 11,018,834 10,649,598
Allowance for loan
and lease losses (152,018) (157,849) (161,005)
--------------------------------------
Net loans 11,038,062 10,860,985 10,488,593
Premises and equipment, net 110,779 106,672 103,259
Goodwill and other
intangibles 517,396 518,918 420,197
Other assets 566,204 570,525 531,026
--------------------------------------
Total assets $15,547,555 $15,796,096 $15,264,047
======================================
Liabilities:
Deposits:
Noninterest-bearing $ 5,538,107 $ 5,926,048 $ 5,690,413
Interest-bearing 6,642,407 7,204,357 6,915,968
--------------------------------------
Total deposits 12,180,514 13,130,405 12,606,381
Federal funds purchased
and securities sold under
repurchase agreements 664,970 269,938 310,738
Other short-term
borrowed funds 326,041 72,818 50,667
Subordinated debt 270,066 266,962 270,174
Other long-term debt 225,598 219,282 224,079
Minority interest 29,148 29,029 28,285
Other liabilities 217,301 186,212 183,185
--------------------------------------
Total liabilities 13,913,638 14,174,646 13,673,509
Shareholders' Equity
Common stock 50,813 50,825 50,803
Additional paid-in capital 421,755 419,277 421,990
Retained earnings 1,345,337 1,307,638 1,271,092
Accumulated other
comprehensive loss (22,631) (50,609) (30,940)
Treasury shares (161,357) (105,681) (122,407)
--------------------------------------
Total shareholders' equity 1,633,917 1,621,450 1,590,538
--------------------------------------
Total liabilities
and shareholders' equity $15,547,555 $15,796,096 $15,264,047
======================================
CITY NATIONAL CORPORATION
CONSOLIDATED PERIOD END BALANCE SHEET
(unaudited)
2006
---------------------------
Fourth Third
(In thousands) Quarter Quarter
------------------------------------ ------------ ------------
Assets
Cash and due from banks $ 423,114 $ 457,396
Federal funds sold 127,000 3,300
Due from banks - interest-bearing 60,940 65,323
Securities-available-for-sale 2,954,372 3,175,230
Trading account securities 147,907 116,870
Loans:
Commercial 3,831,212 3,568,082
Commercial real estate mortgages 1,681,476 1,943,142
Residential mortgages 2,869,775 2,830,761
Real estate construction 1,397,760 1,095,672
Equity lines of credit 404,657 384,830
Installment 201,125 197,871
------------ ------------
Total loans 10,386,005 10,020,358
Allowance for loan and lease
losses (155,342) (159,063)
------------ ------------
Net loans 10,230,663 9,861,295
Premises and equipment, net 94,745 88,582
Goodwill and other intangibles 287,561 298,471
Other assets 558,079 549,152
------------ ------------
Total assets $ 14,884,381 $ 14,615,619
============ ============
Liabilities:
Deposits:
Noninterest-bearing $ 6,002,068 $ 5,639,811
Interest-bearing 6,170,748 6,252,206
------------ ------------
Total deposits 12,172,816 11,892,017
Federal funds purchased and
securities sold under repurchase
agreements 422,903 506,962
Other short-term borrowed funds 97,525 72,426
Subordinated debt 269,848 270,522
Other long-term debt 217,569 217,323
Minority interest 28,425 28,578
Other liabilities 184,380 179,746
------------ ------------
Total liabilities 13,393,466 13,167,574
Shareholders' Equity
Common stock 50,719 50,729
Additional paid-in capital 412,248 404,163
Retained earnings 1,264,697 1,225,784
Accumulated other
comprehensive loss (41,386) (46,400)
Treasury shares (195,363) (186,231)
------------ ------------
Total shareholders' equity 1,490,915 1,448,045
------------ ------------
Total liabilities and shareholders'
equity $ 14,884,381 $ 14,615,619
============ ============
CITY NATIONAL CORPORATION
CONSOLIDATED PERIOD END BALANCE SHEET
(unaudited)
2006
---------------------------
Second First
(In thousands) Quarter Quarter
------------------------------------ ------------ ------------
Assets
Cash and due from banks $ 467,076 $ 457,156
Federal funds sold 1,900 -
Due from banks - interest-bearing 50,416 48,890
Securities-available-for-sale 3,211,590 3,850,173
Trading account securities 123,418 57,353
Loans:
Commercial 3,496,656 3,668,872
Commercial real estate mortgages 1,998,925 1,750,139
Residential mortgages 2,769,340 2,700,966
Real estate construction 999,048 919,816
Equity lines of credit 364,312 339,348
Installment 193,474 188,262
------------ ------------
Total loans 9,821,755 9,567,403
Allowance for loan and lease
losses (157,580) (156,482)
------------ ------------
Net loans 9,664,175 9,410,921
Premises and equipment, net 84,802 84,884
Goodwill and other intangibles 298,004 283,642
Other assets 574,547 545,227
------------ ------------
Total assets $ 14,475,928 $ 14,738,246
============ ============
Liabilities:
Deposits:
Noninterest-bearing $ 5,880,630 $ 5,945,485
Interest-bearing 6,098,200 5,963,044
------------ ------------
Total deposits 11,978,830 11,908,529
Federal funds purchased and
securities sold under repurchase
agreements 234,995 526,920
Other short-term borrowed funds 143,724 151,522
Subordinated debt 266,675 269,785
Other long-term debt 209,864 213,819
Minority interest 27,985 25,225
Other liabilities 215,965 173,056
Total liabilities 13,078,038 13,268,856
Shareholders' Equity
Common stock 50,735 50,693
Additional paid-in capital 402,476 399,974
Retained earnings 1,186,637 1,148,116
Accumulated other
comprehensive loss (86,931) (73,248)
Treasury shares (155,027) (56,145)
Total shareholders' equity 1,397,890 1,469,390
------------ ------------
Total liabilities and shareholders'
equity $ 14,475,928 $ 14,738,246
============ ============
CITY NATIONAL CORPORATION
CREDIT LOSS EXPERIENCE
(unaudited)
2007
--------------------------------------
Third Second First Year To
(Dollars in thousands) Quarter Quarter Quarter Date
-------------------------- -------- -------- -------- --------
Allowance for Loan and
Lease Losses
Balance at beginning of
period $157,849 $161,005 $155,342 $155,342
Allowance of acquired
institution -- -- 4,513 4,513
Net (charge-offs)/
recoveries:
Commercial (632) (2,218) 1,247 (1,603)
Commercial real estate
mortgages (295) -- -- (295)
Residential mortgages -- -- -- --
Real estate construction (2,654) 17 18 (2,619)
Equity lines of credit -- -- -- --
Installment (10) (61) (26) (97)
-------- -------- -------- --------
Total net (charge-offs)/
recoveries (3,591) (2,262) 1,239 (4,614)
Provision for credit
losses/transfers (2,240) (894) (89) (3,223)
-------- -------- -------- --------
Balance at end of period $152,018 $157,849 $161,005 $152,018
======== ======== ======== ========
Net (Charge-Offs)/
Recoveries to Average
Total Loans: (annualized)
Commercial (0.06)% (0.21)% 0.12 % (0.05)%
Commercial real estate
mortgages (0.06)% 0.00 % 0.00 % (0.02)%
Residential mortgage 0.00 % 0.00 % 0.00 % 0.00 %
Real estate construction (0.78)% 0.01 % 0.01 % (0.28)%
Equity lines of credit 0.00 % 0.00 % 0.00 % 0.00 %
Installment (0.02)% (0.13)% (0.06)% (0.07)%
Total loans (0.13)% (0.08)% 0.05 % (0.06)%
Reserve for Off-Balance
Sheet Credit Commitments
Balance at beginning of
period $ 17,832 $ 17,005 $ 16,424 $ 16,424
Recovery of prior charge-
off -- (67) -- (67)
Reserve of acquired
institution -- -- 492 492
Provision for credit
losses/transfers 2,240 894 89 3,223
-------- -------- -------- --------
Balance at end of period $ 20,072 $ 17,832 $ 17,005 $ 20,072
======== ======== ======== ========
2006
------------------------------------------------
(Dollars in Fourth Third Second First Full
thousands) Quarter Quarter Quarter Quarter Year
------------------ -------- -------- -------- -------- --------
Allowance for Loan
and Lease Losses
Balance at
beginning
of period $159,063 $157,580 $156,482 $153,983 $153,983
Allowance of
acquired
institution -- -- -- -- --
Net (charge-offs)/
recoveries:
Commercial (2,665) 1,912 1,122 1,792 2,161
Commercial real
estate mortgages 356 -- 11 844 1,211
Residential
mortgages -- -- -- -- --
Real estate
construction (666) 18 17 16 (615)
Equity lines of
credit -- (11) -- -- (11)
Installment 26 10 11 4 51
-------- -------- -------- -------- --------
Total net
(charge-offs)/
recoveries (2,949) 1,929 1,161 2,656 2,797
Provision for
credit losses/
transfers (772) (446) (63) (157) (1,438)
-------- -------- -------- -------- --------
Balance at end of
period $155,342 $159,063 $157,580 $156,482 $155,342
======== ======== ======== ======== ========
Net (Charge-Offs)/
Recoveries to
Average Total
Loans: (annualized)
Commercial (0.28)% 0.21 % 0.12 % 0.19 % 0.06 %
Commercial real
estate mortgages 0.07 % 0.00 % 0.00 % 0.20 % 0.07 %
Residential
mortgage 0.00 % 0.00 % 0.00 % 0.00 % 0.00 %
Real estate
construction (0.24)% 0.01 % 0.01 % 0.01 % (0.06)%
Equity lines of
credit 0.00 % (0.01)% 0.00 % 0.00 % (0.00)%
Installment 0.05 % 0.02 % 0.02 % 0.01 % 0.03 %
Total loans (0.11)% 0.08 % 0.05 % 0.11 % 0.03 %
Reserve for Off-
Balance Sheet
Credit Commitments
Balance at
beginning of
period $ 15,652 $ 15,206 $ 15,753 $ 15,596 $ 15,596
Recovery of prior
charge-off -- -- -- -- --
Reserve of
acquired
institution -- -- -- -- --
Provision for
credit losses/
transfers 772 446 (547) 157 828
-------- -------- -------- -------- --------
Balance at end of
period $ 16,424 $ 15,652 $ 15,206 $ 15,753 $ 16,424
======== ======== ======== ======== ========
CITY NATIONAL CORPORATION
NONPERFORMING ASSETS
(unaudited)
2007
---------------------------------
Third Second First
(Dollars in thousands) Quarter Quarter Quarter
-------------------------- --------- -------- --------
Nonaccrual Loans
Commercial $ 7,673 $ 3,998 $ 7,024
Commercial real estate mortgages 1,970 4,732 4,783
Residential mortgages 394 378 --
Real estate construction 15,513 12,566 11,199
Equity lines of credit 502 452 362
Installment 175 182 49
--------- -------- --------
Total nonaccrual loans 26,227 22,308 23,417
Other Nonperforming Assets -- -- --
--------- -------- --------
Total nonperforming assets $ 26,227 $ 22,308 $ 23,417
========= ========= =========
Loans 90 Days or More Past Due
on Accrual Status $ -- $ -- $ 199
Allowance for loan and lease
losses as a percentage of:
Nonaccrual loans 579.63% 707.58% 687.55%
Total nonperforming assets 579.63% 707.58% 687.55%
Total loans 1.36% 1.43% 1.51%
Nonaccrual loans as a percentage
of total loans 0.23% 0.20% 0.22%
Nonperforming assets as a
percentage of:
Total loans and other
nonperforming assets 0.23% 0.20% 0.22%
Total assets 0.17% 0.14% 0.15%
2006
------------------------------------------
Fourth Third Second First
(Dollars in thousands) Quarter Quarter Quarter Quarter
------------------------- --------- --------- --------- ---------
Nonaccrual Loans
Commercial $ 2,977 $ 10,416 $ 6,691 $ 5,642
Commercial real estate
mortgages 4,849 8,094 3,644 923
Residential mortgages -- -- -- --
Real estate construction 12,678 -- 4,617 7,492
Equity lines of credit -- -- -- --
Installment 379 269 49 498
--------- --------- --------- ---------
Total nonaccrual loans 20,883 18,779 15,001 14,555
Other Nonperforming Assets -- -- -- --
--------- --------- --------- ---------
Total nonperforming
assets $ 20,883 $ 18,779 $ 15,001 $ 14,555
========= ========= ========= =========
Loans 90 Days or More Past
Due on Accrual Status $ 337 $ 27 $ 18 $ --
Allowance for loan and
lease losses as a
percentage of:
Nonaccrual loans 743.88% 847.03% 1,050.47% 1,075.11%
Total nonperforming
assets 743.88% 847.03% 1,050.47% 1,075.11%
Total loans 1.50% 1.59% 1.60% 1.64%
Nonaccrual loans as a
percentage of total loans 0.20% 0.19% 0.15% 0.15%
Nonperforming assets as a
percentage of:
Total loans and other
nonperforming assets 0.20% 0.19% 0.15% 0.15%
Total assets 0.14% 0.13% 0.10% 0.10%
CITY NATIONAL CORPORATION
AVERAGE BALANCES AND RATES
(unaudited)
(Dollars in millions) 2007
---------------------------------
Third Quarter Second Quarter
---------------- ---------------
Average Average Average Average
Balance Rate Balance Rate
------- ---- ------- ----
Assets
Interest-earning assets
Loans
Commercial $ 4,303 7.42% $ 4,275 7.37%
Commercial real estate mortgages 1,897 7.31 1,932 7.36
Residential mortgages 3,063 5.59 2,975 5.49
Real estate construction 1,344 8.61 1,234 8.88
Equity lines of credit 406 7.63 404 7.71
Installment 178 7.35 191 7.51
------- -------
Total loans 11,191 7.04 11,011 7.05
Due from banks - interest-bearing 98 3.12 89 2.70
Federal funds sold and securities
purchased under resale agreements 10 5.33 24 5.27
Securities available-for-sale 2,748 4.79 2,873 4.74
Trading account securities 84 5.23 72 5.23
Other interest-earning assets 69 6.15 60 6.36
------- -------
Total interest-earning assets 14,200 6.55 14,129 6.54
Allowance for loan and lease losses (157) (162)
Cash and due from banks 434 445
Other assets 1,118 1,041
------- -------
Total assets $15,595 $15,453
======= =======
Liabilities and
Shareholders' Equity
Interest-bearing deposits
Interest checking accounts $ 778 0.68% $ 804 0.56%
Money market accounts 3,748 3.16 3,721 3.10
Savings deposits 146 0.49 149 0.48
Time deposits - under $100,000 232 4.05 274 3.79
Time deposits - $100,000 and over 2,054 4.75 2,066 4.81
------- -------
Total interest-bearing deposits 6,958 3.32 7,014 3.28
Federal funds purchased and
securities sold under repurchase
agreements 672 4.99 486 5.11
Other borrowings 620 6.14 612 6.09
------- -------
Total interest-bearing liabilities 8,250 3.67 8,112 3.61
Noninterest-bearing deposits 5,484 5,556
Other liabilities 238 181
Shareholders' equity 1,623 1,604
------- -------
Total liabilities and
shareholders' equity $15,595 $15,453
======= =======
Net interest spread 2.88% 2.93%
==== ====
Net interest margin 4.42% 4.47%
==== ====
Average prime rate 8.18% 8.25%
==== ====
2007
----------------------------------
First Quarter Year to Date
---------------- ----------------
Average Average Average Average
Balance Rate Balance Rate
------- ---- ------- ----
Assets
Interest-earning assets
Loans
Commercial $ 4,146 7.25% $ 4,242 7.35%
Commercial real estate mortgages 1,758 7.39 1,863 7.35
Residential mortgages 2,885 5.40 2,975 5.49
Real estate construction 1,181 8.73 1,253 8.74
Equity lines of credit 394 7.86 401 7.73
Installment 191 7.64 187 7.50
------- -------
Total loans 10,555 6.99 10,921 7.02
Due from banks - interest-bearing 73 2.28 87 2.74
Federal funds sold and securities
purchased under resale agreements 14 5.36 16 5.31
Securities available-for-sale 2,917 4.71 2,845 4.75
Trading account securities 54 6.09 71 5.45
Other interest-earning assets 48 5.96 59 6.17
------- -------
Total interest-earning assets 13,661 6.48 13,999 6.52
Allowance for loan and lease
losses (157) (159)
Cash and due from banks 422 433
Other assets 910 1,024
------- -------
Total assets $14,836 $15,297
======= =======
Liabilities and Shareholders' Equity
Interest-bearing deposits
Interest checking accounts $ 749 0.48% $ 777 0.57%
Money market accounts 3,419 2.98 3,631 3.08
Savings deposits 155 0.47 150 0.48
Time deposits - under $100,000 232 4.10 246 3.97
Time deposits - $100,000 and over 1,872 4.72 1,998 4.76
------- -------
Total interest-bearing deposits 6,427 3.18 6,802 3.26
Federal funds purchased and
securities sold under repurchase
agreements 582 5.27 580 5.11
Other borrowings 599 6.15 610 6.13
------- -------
Total interest-bearing
liabilities 7,608 3.57 7,992 3.62
Noninterest-bearing deposits 5,489 5,510
Other liabilities 220 213
Shareholders' equity 1,519 1,582
------- -------
Total liabilities and
shareholders' equity $14,836 $15,297
======= =======
Net interest spread 2.91% 2.90%
==== ====
Net interest margin 4.49% 4.46%
==== ====
Average prime rate 8.25% 8.23%
==== ====
CITY NATIONAL CORPORATION
AVERAGE BALANCES AND RATES
(unaudited)
(Dollars in millions)
2006
------------------------------------------------
Fourth Quarter Third Quarter Second Quarter
-------------- --------------- ---------------
(Dollars in Average Average Average Average Average Average
millions) Balance Rate Balance Rate Balance Rate
--------------- ------- ---- ------- ---- ------- ----
Assets
Interest-earning
assets
Loans
Commercial $ 3,718 7.06% $ 3,637 7.02% $ 3,868 6.83%
Commercial real
estate mortgages 1,962 7.56 1,935 7.45 1,794 7.58
Residential
mortgages 2,852 5.40 2,801 5.38 2,737 5.31
Real estate
construction 1,121 8.89 1,071 8.95 957 8.82
Equity lines of
credit 397 7.86 375 7.91 352 7.63
Installment 195 7.56 194 7.58 195 7.72
------- -------- -------
Total loans 10,245 6.92 10,013 6.88 9,903 6.79
Due from banks -
interest-bearing 68 2.04 61 1.81 46 1.66
Federal funds sold
and securities pur
chased under resale
agreements 54 5.28 3 7.13 51 4.77
Securities available-
for-sale 3,122 4.65 3,191 4.65 3,529 4.56
Trading account
securities 49 5.32 54 5.22 52 6.61
Other interest-
earning assets 47 5.64 46 5.45 46 5.40
------- -------- -------
Total interest-
earning assets 13,585 6.35 13,368 6.30 13,627 6.19
Allowance for loan
and lease losses (159) (158) (157)
Cash and due from
banks 407 428 443
Other assets 879 907 869
------- -------- -------
Total assets $14,712 $ 14,545 $14,782
======= ======== =======
Liabilities and
Shareholders' Equity
Interest-bearing
deposits
Interest checking
accounts $ 762 0.43% $ 706 0.36% $ 757 0.27%
Money market
accounts 3,252 2.75 3,224 2.57 3,352 2.13
Savings deposits 160 0.48 163 0.41 174 0.37
Time deposits -
under $100,000 197 4.07 184 3.73 176 3.16
Time deposits -
$100,000 and over 1,969 4.65 1,999 4.56 1,652 4.05
------- -------- ------
Total interest-
bearing deposits 6,340 3.04 6,276 2.93 6,111 2.40
Federal funds pur-
chased and
securities sold
under repurchase
agreements 416 5.24 401 5.26 546 4.93
Other borrowings 554 6.19 558 5.63 652 5.51
------- -------- -------
Total interest-
bearing lia-
bilities 7,310 3.41 7,235 3.27 7,309 2.86
Noninterest-bearing
deposits 5,711 5,629 5,820
Other liabilities 218 245 199
Shareholders'
equity 1,473 1,436 1,454
------- -------- -------
Total liabilities
and shareholders'
equity $14,712 $ 14,545 $14,782
======= ======== =======
Net interest spread 2.94% 3.03% 3.33%
==== ==== ====
Net interest margin 4.52% 4.53% 4.65%
==== ==== ====
Average prime rate 8.25% 8.25% 7.90%
==== ==== ====
2006
----------------------------------
First Quarter Year to Date
---------------- ----------------
Average Average Average Average
Balance Rate Balance Rate
------- ---- ------- ----
Assets
Interest-earning assets
Loans
Commercial $ 3,789 6.62% $ 3,752 6.88%
Commercial real estate mortgages 1,743 7.35 1,859 7.49
Residential mortgages 2,664 5.27 2,764 5.34
Real estate construction 898 8.36 1,013 8.77
Equity lines of credit 334 7.17 365 7.66
Installment 197 7.41 195 7.57
------- -------
Total loans 9,625 6.60 9,948 6.80
Due from banks - interest-bearing 44 1.38 55 1.77
Federal funds sold and securities
purchased under resale agreements 13 4.32 30 5.01
Securities available-for-sale 3,926 4.48 3,439 4.58
Trading account securities 44 5.26 50 5.61
Other interest-earning assets 47 5.23 47 5.43
------- -------
Total interest-earning assets 13,699 5.98 13,569 6.20
Allowance for loan and lease
losses (155) (157)
Cash and due from banks 439 429
Other assets 844 875
------- -------
Total assets $14,827 $14,716
======= =======
Liabilities and Shareholders' Equity
Interest-bearing deposits
Interest checking accounts $ 808 0.23% $ 758 0.32%
Money market accounts 3,388 1.81 3,304 2.31
Savings deposits 179 0.37 169 0.41
Time deposits - under $100,000 180 2.77 184 3.45
Time deposits - $100,000 and over 1,254 3.40 1,721 4.26
------- -------
Total interest-bearing deposits 5,809 1.92 6,136 2.59
Federal funds purchased and
securities sold under repurchase
agreements 809 4.48 542 4.89
Other borrowings 749 5.09 627 5.57
------- -------
Total interest-bearing
liabilities 7,367 2.52 7,305 3.02
Noninterest-bearing deposits 5,779 5,734
Other liabilities 200 216
Shareholders' equity 1,481 1,461
------- -------
Total liabilities and
shareholders' equity $14,827 $14,716
======= =======
Net interest spread 3.46% 3.18%
==== ====
Net interest margin 4.62% 4.58%
==== ====
Average prime rate 7.43% 7.96%
==== ====
CITY NATIONAL CORPORATION
CAPITAL AND CREDIT RATING DATA
(unaudited) 2007
----------------------------------------
Third Second First Year To
Quarter Quarter Quarter Date
------- ------- ------- -------
Per Common Share:
----------------
Shares Outstanding
(in thousands):
Average - Basic 48,345 48,675 47,968 48,331
Average - Diluted 49,408 49,838 49,087 49,447
Period-End 48,064 48,831 48,602
Book Value $ 33.99 $ 33.21 $ 32.73
Price:
High $ 78.00 $ 78.39 $ 75.39 $ 78.39
Low 69.00 72.30 68.00 68.00
Period-end 69.51 76.09 73.60
Capital Ratios
(Dollars in millions):
----------------------
Risk-based capital
Risk-adjusted assets $12,234 $12,067 $11,618
Tier I capital $ 1,171 $ 1,185 $ 1,234
Percentage of risk
adjusted assets 9.57% 9.82% 10.62%
Total capital $ 1,470 $ 1,481 $ 1,524
Percentage of
risk adjusted
assets 12.01% 12.28% 13.12%
Tier I leverage ratio 7.80% 7.97% 8.59%
Period-end share-
holders' equity
to total period-
end assets 10.51% 10.26% 10.42%
Period-end tangible
shareholders' equity
to total period-end
tangible assets 7.43% 7.22% 7.88%
Average shareholders'
equity to total
average assets 10.41% 10.38% 10.24% 10.34%
Average tangible
shareholders' equity
to total average
tangible assets 7.33% 7.67% 8.18% 7.72%
2006
-----------------------------------------------
Fourth Third Second First Full
Quarter Quarter Quarter Quarter Year
------- ------- ------- ------- -------
Per Common Share:
-----------------
Shares Outstanding
(in thousands):
Average - Basic 47,573 47,919 48,957 49,484 48,477
Average - Diluted 49,012 49,318 50,654 51,309 50,063
Period-End 47,492 47,639 48,115 49,535
Book Value $ 31.39 $ 30.40 $ 29.05 $ 29.66
Price:
High $ 71.29 $ 68.41 $ 78.25 $ 78.25 $ 78.25
Low 65.34 63.69 60.02 71.95 60.02
Period-end 71.20 67.06 65.09 76.79
Capital Ratios
(Dollars in
millions):
--------------
Risk-based capital
Risk-adjusted
assets $11,411 $10,999 $10,811 $10,473
Tier I capital $ 1,256 $ 1,219 $ 1,211 $ 1,284
Percentage of risk
adjusted assets 11.09% 11.09% 11.20% 12.26%
Total capital $ 1,544 $ 1,554 $ 1,542 $ 1,614
Percentage of risk
adjusted assets 13.60% 14.12% 14.26% 15.41%
Tier I leverage
ratio 8.81% 8.58% 8.38% 8.85%
Period-end share-
holders' equity
to total period-
end assets 10.02% 9.91% 9.66% 9.97%
Period-end tangible
shareholders' equity
to total period-end
tangible assets 8.24% 8.03% 7.76% 8.20%
Average shareholders'
equity to total
average assets 10.01% 9.87% 9.84% 9.99% 9.93%
Average tangible
shareholders' equity
to total average
tangible assets 8.16% 7.99% 8.04% 8.23% 8.10%
Senior Debt Credit Ratings
--------------------------
For The Period Ended September 30, 2007
Standard &
Moody's Fitch Poor's DBRS
------- ----- ---------- -----
City National Bank Aa3 A- A A (high)
City National Corporation A1 A- A- A