City National Corporation California’s Premier Private and Business Bank ® Russell Goldsmith...

City National CorporationCalifornia’s Premier Private and Business Bank®

Russell GoldsmithPresident and Chief Executive Officer

Christopher J. CareyChief Financial Officer

Lehman Brothers Financial Services Conference

September 14, 2006

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Why City National?

Assets: $14.5 billion

Market Cap: $3.2 billion

2005 Net Income: $235 million

AUM/A: $47.2 billion

Founded: 1954

Member: NYSE

Offices: 55

Regional Centers: 12

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Why City National?

A focused and successful business strategy

Strong performance over time

Significant opportunities for continuing growth

California: The world’s 8th largest economy

A demonstrated commitment to shareholder value

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A Focused And Successful Business Strategy

Community BanksAssets <$1 billion

Mega-BanksAssets >$100 billion

Serving a highly compelling clienteleServing a highly compelling clientele

Retail Customers

Fortune 1000

Businesses:$1 mil.-$250 mil.

Individuals:Assets >$1 millionIncome >$250K

$14.5billion

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IndustrySpecialists

IndustrySpecialists

PrivateBankingPrivateBanking

CommercialBanking

CommercialBanking

BankingOffices

BankingOffices

OnlineCapabilities

OnlineCapabilities

WealthManagement

WealthManagement

RELATIONSHIP

TEAM

CLIENT

Delivering extensive capabilities and outstanding service

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City National is one of only 3 banks nationwide to receive 6 excellence awards for client satisfaction

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Strong Performance Over Time

$ in millions

$146

2001 2002

$183

$567

$662

2003

$692

$187

2004

$730

$206

Net IncomeNet Interest Income Noninterest Income

2005

$821

Revenue5-Year CAGR

(12/31/05)10%

$235

Revenue and net income have grown at double-digit rates

NetIncome5-YearCAGR

(12/31/05)12%

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First-Half 2006 Trends

Strong loan growth

Superior credit quality

Rising noninterest income

Slower deposit growth

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First-half loan balances grew 13 percent to $9.8 billion

Strong Loan Growth

As of June 30, 2006

$3.6 bil.

$2.8 bil.

$2.8 bil.

$0.6 bil.

28.2%

28.9%

37.1%5.7%

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Superior Credit Quality

Nonaccrual loans are lower than they’ve been in 15 years

NPAs / loans & OREO

1.66%1.96%

(0.10)%

0.69%

0.07%

1.75%

0.54% 0.41%

Allowance for loan losses / outstanding loans

Net charge-offs(recoveries) toavg. loans

0.41%

0.89%

1.88%

2001 2002 2003 2004 2005 2Q06

0.36%

0.54%

1.98%

0.16%

1.60%

0.15%

(0.05)%

Excluding syndicated non-relationship commercial and purchased media and telecom loans

0.24% 0.33% 0.12%

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Rising Noninterest Income

ManagedAssets5-YearCAGR

(12/31/05)24%

Admin.Assets5-Year CAGR

(12/31/05)17%

$15.2

$13.6

* This amount does not include $9.3 billion managed by CCM affiliates in which CYN holds minority interests.

Double-digit fee income growth was led by wealth management

$ in billions

$11.1

$7.7

2003$28.8

2001$18.8

2Q06$47.2*

$20.3

$26.9

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An Exceptional Deposit Base

City National has $12 billion in deposit balances

As of June 30, 2006

Noninterest-Bearing Deposits

CDs >$100K

Interest-Bearing Deposits <$100K

$4.3 bil.

$1.8 bil.

$5.9 bil.

15.3%

35.7%49.1%

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City National’s funding costs are lower than peer averages

Avg. 50 Largest

CYN 2.39%

1.23%

As of June 30, 2006Source: City National Corporation and SNL Financial

Avg. Core Peer

2.03%

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Our net interest margin is among the industry’s highest


Source: SNL Financial

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Significant Opportunities For Continuing Growth

We serve California – the world’s 8th largest economy

11 counties

27 million people

150,000 businesses

415,000 millionaire households

Plus New York City

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1. New York et al, NY-NJ-PA 370,918

2. Los Angeles/Orange County, CA 198,882

3. Chicago et al, IL-IN-WI 167,158

4. Washington et al, DC-VA-MD-WV 124,675

5. Philadelphia et al, PA-NJ-DE-MD 111,152

6. San Francisco/Oakland, CA 101,061

16. San Diego/Carlsbad, CA 52,789

19. Riverside, CA 47,497

54. Oxnard-Thousand Oaks-Vent, CA 16,107

415,000 California households with assets of $1 million or more

Source: Phoenix Marketing International, AMS 2005

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Significant Opportunities For Continuing GrowthA company on the move…

Hiring proven performers

Completing management transition

Building strong sales culture

Launching E-Deposit

Rolling out new deposit products

Growing wealth management

Opening “new-generation” offices

Broadening international capabilities

Introducing equipment leasing solutions

Strengthening risk management

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Acquisitions are important to City National’s growth strategy

A disciplined acquisition strategy

Fit, focus and price

The addition of Independence Investments

A series of successful acquisitions since 1995

8 banks

12 asset managers

1 trust company

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A Commitment To Shareholder Value

Comparing 10-year total returns – annual equivalents*

12.08 %S&P 500 Bank Index

7.17 %Nasdaq Composite Index

8.90 %S&P 500 Index

9.43 %Dow Jones Industrial Avg.

9.01 %Russell 3000 Index

13.77 %S&P Mid Cap Index

16.22 %16.22 %City National Corp.City National Corp.

*Annualized average total return from August 31, 1996 to August 31, 2006; total return reflects stock price appreciation and assumes dividend reinvestment. Data source: Bloomberg

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9.2%

6.1%

12.3%

9.7%

14.4%

7.8%

Equity to Total Assets

Total Risk-Based Ratio

Tangible Equity toTangible Assets

CYN

Avg. 50 Largest

Prudent capital management and a strong balance sheet

As of June 30, 2006Source: SNL Financial

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City National has continued to buy back stock

2003

2004

2005

2006

# of SharesRepurchased(in millions)

AveragePrice/Share

$43 $59 $69 $70

1.0

0.7

0.6

1.5

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Why City National?

A focused and successful business strategy

Strong performance over time

First-rate service and client retention

An improving sales culture

Significant growth opportunities in leading markets

Excellent credit quality and disciplined lending practices

A solid capital position

A demonstrated commitment to shareholder value

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Forward-Looking Statements

This presentation 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 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 (7) the impact of changes in regulatory, judicial or legislative tax treatment of business transactions.

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Management cannot predict at this time the strength of the economy, and a slowing or reversal could adversely affect our performance in a number of ways including decreased demand for our products and services and increased credit losses. Likewise, changes in deposit interest rates, among other things, could slow the rate of growth or put pressure on current deposit levels. 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, 2005 and particularly Part I, Item 1A, titled “Risk Factors.”

Forward-Looking Statements

City National CorporationCalifornia’s Premier Private and Business Bank®

City National Corporation California’s Premier Private and Business Bank ® Russell Goldsmith...

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