<PAGE>
[LETTERHEAD]
EXHIBIT 99.1
CONTACTS:
FINANCIAL/INVESTORS
Frank Pekny (City National) 310-888-6700
Ian Campbell (Abernathy MacGregor Group) 213-630-6550
MEDIA
Kim George (City National) 310-888-6665
Denis Wolcott (Stoorza Communications) 213/891-2822
FOR IMMEDIATE RELEASE
CITY NATIONAL CORPORATION REPORTS RECORD
NET INCOME OF $34.2 MILLION FOR THIRD QUARTER
22% RISE MARKS 25TH CONSECUTIVE QUARTER OF YEAR-OVER-YEAR DOUBLE-DIGIT NET
INCOME GROWTH
LOS ANGELES, OCT. 12, 2000 -- City National Corporation (NYSE: CYN), parent
corporation of wholly owned City National Bank, today reported record net income
of $34.2 million for the third quarter of 2000, a 22 percent increase from net
income of $28.1 million in the third quarter of 1999, and a 2 percent increase
from $33.4 million in the second quarter of 2000. Cash net income, which
excludes the amortization of core deposit intangibles and goodwill from
acquisitions, increased 27 percent to $37.9 million for the third quarter of
2000 from $29.8 million for the third quarter of 1999, and rose 2 percent from
$37.2 million in the second quarter of 2000.
Net income per diluted common share of $0.70 per share increased 17 percent,
compared with $0.60 per share in the third quarter of 1999, and 3 percent above
the $0.68 per diluted common share reported for the 2000 second quarter.
Slightly over $0.01 per diluted common share in the third quarter of 2000 was
attributable to the net effect of a non-recurring gain on the sale of securities
and closure costs for two banking offices. Cash net income per diluted common
share rose 20 percent to $0.77, compared with $0.64 per diluted common share for
the third quarter of 1999 and $0.76 per diluted common share for the second
quarter of 2000. Management expects earnings per diluted common share for the
fourth quarter to be within the current range of analysts' projections of $0.67
to $0.70 per diluted common share as reflected in First Call.
1
<PAGE>
City National Corporation achieved record net income of $98.6 million for the
first nine months of 2000, an increase of 23 percent over net income of $80.2
million for the first nine months of 1999. Cash net income for the first nine
months of 2000 rose 28 percent to $108.9 million from $84.9 million for the 1999
comparable period. Net income per diluted common share for the first nine months
of 2000 increased by 20 percent to $2.04 per diluted common share, from $1.70
per diluted common share in the first nine months of 1999. Cash net income per
diluted common share rose to $2.25, compared with $1.81 per diluted common share
for the first nine months of 1999. These results reflect the integration of The
Pacific Bank, N.A., acquired in February 2000, and American Pacific State Bank,
acquired in August 1999.
"City National has achieved its 25th consecutive quarter of year-over-year,
double-digit growth in net income by delivering solid across-the-board gains in
new clients, loans, deposits, and noninterest income. We are particularly
pleased with the 27 percent growth in our earnings on a cash basis," said
Russell Goldsmith, CEO of City National Corporation. "City National's compelling
competitive capabilities and position as the premier private and business bank
headquartered in California enable us to generate this consistent, quality
earnings growth.
"We are doing this while investing in the people, technology, and
facilities--such as our new Palo Alto office--that will contribute to our future
growth," he added. "At the same time, City National is also enhancing its strong
balance sheet and substantially reducing the size of its syndicated
non-relationship loan portfolio, while maintaining strong loan reserves."
RETURN ON ASSETS/RETURN ON EQUITY
The corporation's return on average assets in the third quarter of 2000 was 1.55
percent, compared with 1.72 percent in the 1999 third quarter and 1.58 percent
in the 2000 second quarter. The quarter's decrease reflects the corporation's
larger asset base and the impact on net income of amortizing the higher level of
goodwill resulting from recent acquisitions. The return on average shareholders'
equity was 19.63 percent, compared with 19.94 percent for the prior-year quarter
and 20.37 percent for the second quarter of this year. The decline is
attributable, in part, to an increase in retained earnings and lower unrealized
losses on securities during the third quarter of 2000. For the first nine months
of 2000, the return on average assets was 1.58 percent and the return on average
shareholders' equity was 20.25 percent, compared with a 1.71 percent return on
average assets and a 19.08 percent return on average shareholders' equity for
the first nine months of 1999.
On a cash basis (which excludes goodwill and the after-tax impact of
nonqualifying core deposit intangibles from average assets and average
shareholders' equity), the return on average assets in the third quarter of 2000
was 1.75 percent, compared with 1.83 percent in the third quarter of 1999. The
return on average shareholders' equity rose to 29.13 percent, compared with
22.88 percent for the prior-year quarter. On a cash basis, for the
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first nine months of 2000, the return on average assets was 1.79 percent and the
return on average shareholders' equity was 30.09 percent, compared with a 1.83
percent return on average assets and a 22.47 percent return on average
shareholders' equity for the first nine months of 1999.
ASSETS
Total average assets reached a record $8.8 billion in the third quarter of 2000,
an increase of 35 percent over the $6.5 billion in average assets in the third
quarter of 1999 and $0.2 billion higher than the second quarter of 2000. For the
nine months ended September 30, 2000, total average assets increased 33 percent
to $8.3 billion, compared with $6.3 billion for the same period a year ago.
Total assets at September 30, 2000 were $8.9 billion, compared with total assets
of $6.9 billion at September 30, 1999, and total assets of $8.7 billion at June
30, 2000.
LOANS
Average loans rose to $6.4 billion during the third quarter of 2000, an increase
of 32 percent over the third quarter of 1999. Average loans increased 2 percent
over the 2000 second quarter. Year-over-year loan growth was driven primarily by
increases in commercial loans and real estate commercial mortgages. Compared
with the year-ago quarter, commercial loan average balances rose 27 percent from
$2.6 billion to $3.3 billion. Real estate commercial mortgage averages rose 65
percent from $0.9 billion to $1.4 billion compared with the year-ago quarter,
largely as a result of loans added through acquisitions. Growth in all other
loan categories contributed to the increase in average loans over the prior year
and sequential quarters. For the first nine months of 2000, average loans
increased 32 percent to $6.2 billion from $4.7 billion for the first nine months
of 1999.
Total loans at September 30, 2000 were $6.4 billion, compared with $5.2 billion
at September 30, 1999 and $6.3 billion at June 30, 2000. The increase from June
30, 2000 was primarily driven by an increase in commercial relationship loans.
Syndicated non-relationship loans declined $202 million, or 38 percent, during
the first nine months of 2000, to $335 million at September 30, 2000, and
represented approximately 5 percent of the loan portfolio at September 30, 2000,
compared with almost 10 percent at December 31, 1999. The average outstanding
loan balance in the syndicated non-relationship portfolio at September 30, 2000
is just under $4.0 million, which represents about two-thirds of the average
commitment amount. The decline in syndicated non-relationship lending is
expected to continue as the corporation emphasizes relationships with clients
who are offered the full array of its products, including loans, deposits, and
fee-based services such as cash management, international, and wealth
management.
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Management expects that the continued strength in California's economy and its
plans for continued marketing efforts will result in consistent growth in
relationship loans during the fourth quarter.
DEPOSITS
Average deposits rose during the third quarter of 2000 to $6.5 billion, an
increase of 36 percent over the third quarter of 1999, and an increase of 4
percent over the 2000 second quarter. During the first nine months of 2000,
average deposits increased 35 percent to $6.2 billion, compared with $4.6
billion for the same period a year ago.
Deposits totaled $6.9 billion at September 30, 2000, compared with $5.3 billion
at September 30, 1999, and $6.4 billion at June 30, 2000. Demand deposits
accounted for 40 percent of total deposits.
In prior years, year-end core deposit levels have typically increased from third
quarter balances due to seasonal factors. Management expects similar results in
2000.
NET INTEREST INCOME
As a result of the strong loan and core deposit growth and a higher prime rate
compared with the year-earlier period, net interest income on a fully
taxable-equivalent basis rose 28 percent to $107.3 million in the third quarter
compared with $83.9 million for the same quarter of 1999. The negative impact of
the reversal of income on loans moving to nonaccrual status and lower interest
recovered on nonaccrual and charged-off loans, slightly offset by the benefit of
having one more day in this quarter, contributed to the decline in third quarter
results compared with the $107.8 million for the second quarter of 2000.
Interest recovered on nonaccrual and charged-off loans was $0.8 million for the
third quarter of 2000, compared with $0.8 million for the third quarter of 1999
and $1.3 million for the second quarter of 2000.
For the first nine months of 2000, net interest income on a fully
taxable-equivalent basis totaled $310.4 million, an increase of 28 percent over
$242.8 million for the first nine months of 1999. Interest recovered in the
first nine months of 2000 was $3.1 million, compared with $4.9 million for the
same period of 1999.
The fully taxable-equivalent net interest margin was 5.32 percent for the
quarter ended September 30, 2000, and 5.46 percent for the first nine months of
2000, compared with 5.57 percent and 5.58 percent for the comparable periods of
1999. The reduction in average demand deposits between sequential quarters and
the higher level of interest income not recognized on nonaccrual loans
contributed 8 and 7 basis points, respectively, to the reduction of the margin
between the second and third quarters of 2000. In addition, the net interest
margin between the second and third quarters was reduced by 6 basis
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points by higher balances on short-term investment securities in the regulated
investment company subsidiary. (See Income Taxes below.)
Management expects its net interest margin in the fourth quarter to improve
modestly from the third quarter, in part due to anticipated seasonal increases
in core deposits and a decrease in the level of investment securities.
NONINTEREST INCOME
Noninterest income continued its strong, across-the-board growth, with recurring
noninterest income increasing 27 percent to $26.8 million for the third quarter
2000 over the same quarter of 1999. Recurring noninterest income in the third
quarter was essentially unchanged from the second quarter, largely as a result
of unusually strong levels of other income recorded in the second quarter of
2000. The $77.6 million in recurring noninterest income for the first nine
months of 2000 represented a 33 percent increase over the $58.3 million for the
same period in 1999.
All categories of recurring noninterest income were higher in the current
periods of 2000 compared with the year-earlier periods, reflecting City
National's continued emphasis on growing fee income. Investment services and
trust fees rose as a result of a strong cross-selling program to existing
customers, as well as direct-sales activities focused on new customers by City
National Investments (CNI), a division of City National Bank.
Assets under administration in CNI were $16.7 billion at September 30, 2000,
including $5.3 billion under management, compared with $13.5 billion and $3.8
billion, respectively, at September 30, 1999, and $15.5 billion and $5.2 billion
at June 30, 2000. The increase in assets under management over the year-earlier
period is primarily attributable to the CNI Charter Funds introduced in 1999 and
2000.
International services income rose significantly as a result of increased
foreign-exchange fees and, to a lesser extent, an increase in fee income
associated with letters of credit and standby letters of credit.
Gains on the sale of assets and securities amounted to $1.7 million and $2.0
million for the third quarter and first nine months of 2000, respectively,
compared with gains of $2.1 million and $5.7 million for the same periods a year
earlier. Noninterest income was 21 percent of total revenues for the first nine
months of both 2000 and 1999.
Management expects consistent growth in CNI and international income and
moderate growth in other categories during the 2000 fourth quarter compared with
the year ago period.
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NONINTEREST EXPENSE
Third quarter results benefited from a reduction in noninterest expense to $74.0
million compared with $76.1 million in the second quarter of 2000. The decline
in expenses is, in part due to the completed integration of The Pacific Bank,
N.A., as well as management's continued emphasis on achieving greater
efficiencies and productivity. Noninterest expense was $61.4 million in the
third quarter of 1999. Noninterest expense for the first nine months of 2000
increased by $44.0 million to $219.1 million, compared with $175.1 million for
the first nine months of 1999.
The year-over-year increase in expenses was primarily the result of the
corporation's growth, including expenses associated with additional offices and
a substantial number of new colleagues--mostly from acquisitions--as well as the
amortization of goodwill and core deposit intangibles. Third-quarter 2000
results included $0.8 million of severance and excess space provisions relating
to the previously announced closure of two banking offices scheduled to be
completed at the end of the year. Salaries and other employee benefits increased
by $6.3 million, or 18 percent, over the third quarter of 1999; they decreased
by $1.1 million, or 3 percent, compared with the second quarter of 2000. All
other expenses increased $6.3 million, or 23 percent, from the third quarter of
1999, but decreased $1.0 million, or 3 percent, from the second quarter of 2000.
City National currently anticipates that fourth quarter noninterest expenses
will increase modestly over the third quarter due to continued growth, moderated
by management's emphasis on enhancing efficiency and productivity.
INCOME TAXES
The effective tax rate in the third quarter of 2000 was 33.7 percent and the
rate for the first nine months was 34.4 percent compared with 35.4 percent for
all of 1999. The lower tax rate is due primarily to the impact of the formation
of a regulated investment company subsidiary. The long-term plan for the
regulated investment company is currently under review.
Management, however, expects its effective tax rate to remain at the current
year-to-date rate for the balance of this year.
CREDIT QUALITY
City National recorded a provision for credit losses of $7.0 million in the
third quarter of 2000. The 2000 year-to-date provision totaled $11.0 million.
City National reported no credit loss provisions in the year-earlier periods.
The provision for credit losses during the first nine months reflects the levels
of net charge-offs and nonaccrual loans, management's ongoing assessment of
credit quality of the portfolio and the 24 percent year-over-year growth of the
loan portfolio. The level of provision for credit losses to
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be taken in the fourth quarter will reflect management's assessment of the above
factors, as well as the economic environment. Based on management's current
assessment of these factors, the provision should approximate the amount taken
in the third quarter.
Loan charge-offs for the third quarter of 2000 were $9.8 million, slightly
higher than the $8.9 million in the second quarter of this year and $2.3 million
ahead of the $7.5 million reflected a year ago. For the same periods, net
charge-offs were $8.3 million, $4.0 million and $4.6 million, respectively, as
the benefit from recoveries continued to decline in relation to past levels. As
a percentage of average loans, net charge-offs were 0.13 percent, 0.06 percent
and 0.09 percent for the three months ended September 30, 2000, June 30, 2000,
and September 30, 1999, respectively.
Slightly more than half of the net charge-offs in the quarter and in the
year-to-date period were for syndicated non-relationship loans. As previously
noted, the corporation's exposure to syndicated non-relationship loans continues
to decrease.
Total nonperforming assets (nonaccrual loans and ORE) were $47.0 million, or
0.73 percent, of total loans and ORE at September 30, 2000, compared with $21.5
million, or 0.41 percent, at September 30, 1999, and $35.5 million, or 0.56
percent, at June 30, 2000. Two syndicated non-relationship loans totaling $13.9
million moved to nonaccrual status this quarter. Total syndicated
non-relationship loans on nonaccrual status were $17.2 million at September 30,
2000 compared with none a year ago and $3.3 million at June 30, 2000.
Relationship loans on nonaccrual were $10.4 million higher than a year ago but
declined by $2.1 million from June 30, 2000 levels.
The allowance for credit losses at September 30, 2000 totaled $139.2 million, or
2.17 percent of outstanding loans. This compares with an allowance of $139.0
million, or 2.69 percent of outstanding loans, at September 30, 1999, and an
allowance of $140.5 million, or 2.21 percent of outstanding loans, at June 30,
2000. The allowance for credit losses as a percentage of nonaccrual loans was
297 percent at September 30, 2000, compared with 720 percent at September 30,
1999 and 401 percent at June 30, 2000. Management believes the allowance for
credit losses is adequate to cover risks inherent in the portfolio at September
30, 2000.
CAPITAL LEVELS
Total risk-based capital and Tier 1 risk-based capital ratios at September 30,
2000 were 10.88 percent and 7.85 percent, compared with the capitalization
ratios of 10 and 6 percent required for an institution to be classified as
"well-capitalized." The corporation's Tier 1 leverage ratio of 6.41 percent
exceeded the regulatory minimum of 4 percent required for a "well-capitalized"
institution. Total risk-based capital, Tier 1 risk-based capital and the Tier 1
leverage ratio were 10.56 percent, 7.49 percent and 6.19 percent, respectively,
at June 30, 2000.
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STOCK REPURCHASE
Since the current stock buyback program of one million common shares was
announced on July 29, 1999, 731,100 shares have been repurchased at a cost of
$23.5 million. No shares were repurchased in the third quarter of 2000. The
shares purchased under the buyback program have been reissued for acquisitions,
upon the exercise of stock options, and for other general corporate purposes.
There were no Treasury shares at September 30, 2000.
ABOUT CITY NATIONAL
City National Corporation is a publicly owned corporation with $8.9 billion in
total assets whose stock is traded on the New York Stock Exchange under the
symbol "CYN." The corporation's wholly owned subsidiary, City National Bank, is
the premier independent private and business bank with headquarters in
California. City National Bank, which provides banking, trust and investment
services, has 50 California offices located throughout Los Angeles, Orange,
Riverside, San Bernardino, San Diego, San Francisco, San Mateo, Santa Clara and
Ventura counties, and a loan production office in Sacramento.
For more information about the corporation, the corporation's Web page is at
http://www.cnb.com. This news release contains forward-looking statements about
the corporation for which the corporation claims the protection of the safe
harbor 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 corporation's possible or assumed
future financial condition, and its results of operations and business.
Forward-looking statements are subject to risks and uncertainties. A number of
factors, some of which are beyond the corporation'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) an economic
slowdown in California, (2) changes in interest rates, (3) significant changes
in banking laws or regulations, (4) increased competition in the corporation's
market, (5) higher-than-expected credit losses and (6) possible changes in the
plans for the registered investment company subsidiary.
For a more complete discussion of these risks and uncertainties, see the
corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2000,
and particularly the section of Management's Discussion and Analysis therein
titled "Cautionary Statement for Purposes of the 'Safe Harbor' Provisions of the
Private Securities Litigation Reform Act of 1995."
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Earnings Release
October 12, 2000
p. 9
CITY NATIONAL CORPORATION
CONSOLIDATED BALANCE SHEET (UNAUDITED) (DOLLARS IN THOUSANDS,
EXCEPT PER SHARE AMOUNT)
<TABLE>
<CAPTION>
SEPTEMBER 30,
------------------------------------------------
2000 1999 % CHANGE
--------------- --------------- ------------
<S> <C> <C> <C>
Assets
Cash and due from banks $ 393,669 $ 307,549 28
Securities 1,660,082 1,060,431 57
Federal funds sold 30,000 60,000 (50)
Loans (net of allowance for credit
losses of $139,195 and $139,015) 6,287,597 5,032,909 25
Other assets 542,607 474,727 14
--------------- ---------------
Total assets $ 8,913,955 $ 6,935,616 29
=============== ===============
Liabilities and Shareholders' Equity
Noninterest-bearing deposits $ 2,743,717 $ 2,296,288 19
Interest-bearing deposits 4,129,796 3,014,449 37
--------------- ---------------
Total deposits 6,873,513 5,310,737 29
Federal funds purchased and securities sold
under repurchase agreements 132,750 137,498 (3)
Other short term borrowed funds 740,638 551,725 34
Subordinated debt 123,594 123,405 -
Other long-term debt 205,000 180,000 14
Other liabilities 127,802 71,863 78
--------------- ---------------
Total liabilities 8,203,297 6,375,228 29
Shareholders' equity 710,658 560,388 27
--------------- ---------------
Total liabilities and shareholders' equity $ 8,913,955 $ 6,935,616 29
=============== ===============
Book value per share $ 14.88 $ 12.34 21
Number of shares at period end 47,765,807 45,417,366 5
</TABLE>
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) (DOLLARS IN THOUSANDS,
EXCEPT PER SHARE AMOUNT)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
---------------------------------- -----------------------------------
2000 1999 % CHANGE 2000 1999 % CHANGE
------------ ----------- --------- ----------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Interest income $ 170,927 $ 119,149 43 $ 477,070 $ 341,011 40
Interest expense (66,926) (37,847) 77 (176,178) (105,917) 66
------------ ----------- ----------- ------------
Net interest income 104,001 81,302 28 300,892 235,094 28
Provision for credit losses (7,000) - N/M (11,000) - N/M
------------ ----------- ----------- ------------
Net interest income after provision for credit losses 97,001 81,302 19 289,892 235,094 23
Noninterest income 28,522 23,165 23 79,555 63,997 24
Noninterest expense (73,984) (61,369) 21 (219,143) (175,104) 25
------------ ----------- ----------- ------------
Income before taxes 51,539 43,098 20 150,304 123,987 21
Income taxes (17,378) (15,015) 16 (51,690) (43,797) 18
------------ ----------- ----------- ------------
Net income $ 34,161 $ 28,083 22 $ 98,614 $ 80,190 23
============ =========== =========== ============
Net income per share, basic $ 0.72 $ 0.61 18 $ 2.09 $ 1.75 19
============ =========== =========== ============
Net income per share, diluted $ 0.70 $ 0.60 17 $ 2.04 $ 1.70 20
============ =========== =========== ============
Dividends paid per share $ 0.18 $ 0.17 6 $ 0.53 $ 0.50 6
============ =========== =========== ============
Cash net income $ 37,853 $ 29,792 27 $ 108,907 $ 84,947 28
============ =========== =========== ============
Cash net income per share, basic $ 0.79 $ 0.65 22 $ 2.31 $ 1.86 24
============ =========== =========== ============
Cash net income per share, diluted $ 0.77 $ 0.64 20 $ 2.25 $ 1.81 24
============ =========== =========== ============
Shares used to compute per share net income, basic 47,694,471 45,664,000 47,092,720 45,767,496
Shares used to compute per share net income, diluted 49,082,476 46,689,954 48,351,733 47,048,988
</TABLE>
<PAGE>
Earnings Release
October 12, 2000
p. 10
CITY NATIONAL CORPORATION
SELECTED FINANCIAL INFORMATION (UNAUDITED) (DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
PERIOD END SEPTEMBER 30,
------------------------------------------------
2000 1999 % CHANGE
--------------- --------------- ------------
<S> <C> <C> <C>
Loans
Commercial (a)
Relationship $ 2,920,518 $ 2,196,659 33
Syndicated non-relationship 334,626 497,243 (33)
--------------- ---------------
3,255,144 2,693,902 21
Residential first mortgage 1,254,557 1,121,683 12
Real estate commercial mortgage 1,438,814 974,867 48
Real estate construction 408,749 328,422 24
Installment 69,528 53,050 31
--------------- ---------------
Total loans $ 6,426,792 $ 5,171,924 24
=============== ===============
</TABLE>
(a)Commercial relationship loans were $2,782,611 and syndicated
non-relationship loans were $442,293 at June 30, 2000
<TABLE>
<S> <C> <C> <C>
Deposits
Noninterest bearing $ 2,743,717 $ 2,296,288 19
Interest-bearing, core 2,514,552 1,907,435 32
--------------- ---------------
Total core deposits 5,258,269 4,203,723 25
Time deposits - $100,000 and over 1,615,244 1,107,014 46
--------------- ---------------
Total deposits $ 6,873,513 $ 5,310,737 29
=============== ===============
Nonaccrual loans and ORE (b)
Relationship loans $ 29,717 $ 19,316 54
Syndicated non-relationship loans 17,166 - N/M
--------------- ---------------
46,883 19,316 143
ORE 133 2,134 (94)
=============== ===============
Total nonaccrual loans and ORE $ 47,016 $ 21,450 119
=============== ===============
Loans past due 90 days or more on accrual status $ 5,375 $ 5,151 4
=============== ===============
Restructured loans on accrual status $ 2,411 $ 2,586 (7)
=============== ===============
</TABLE>
(b)Nonaccrual loans were $35,077 at June 30, 2000 including $31,793
of relationship loans and $3,284 of syndicated non-relationship loans
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED
ALLOWANCE FOR CREDIT LOSSES SEPTEMBER 30, SEPTEMBER 30,
---------------------------------------- ---------------------------------------
2000 1999 % CHANGE 2000 1999 % CHANGE
------------ ------------ ------------ ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Beginning balance $ 140,484 $ 140,185 - $ 134,077 $ 135,339 (1)
Additions from acquisitions - 3,415 (100) 9,927 3,415 191
Provision for credit losses 7,000 - N/M 11,000 - N/M
Charge-offs (c)
Relationship loans (5,060) (7,483) (32) (15,241) (10,102) 51
Syndicated non-relationship loans (4,690) - N/M (8,922) - N/M
------------ ------------ ----------- -----------
(9,750) (7,483) 30 (24,163) (10,102) 139
Recoveries 1,461 2,898 (50) 8,354 10,363 (19)
------------ ------------ ----------- -----------
Net (charge-offs) recoveries (8,289) (4,585) 81 (15,809) 261 N/M
------------ ------------ ----------- -----------
Ending Balance $ 139,195 $ 139,015 - $ 139,195 $ 139,015 -
============ ============ =========== ===========
Net (charge-offs) recoveries to average loans (0.13)% (0.09)% 44 (0.26)% 0.01% N/M
</TABLE>
(c)Charge-offs in the second quarter 2000 were $8,265 in relationship
loans and $589 in syndicated non-relationship loans
<PAGE>
Earnings Release
October 12, 2000
p. 11
CITY NATIONAL CORPORATION
SELECTED FINANCIAL INFORMATION (UNAUDITED) (DOLLARS IN THOUSANDS
EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
----------------------------------- -------------------------------------
2000 1999 % CHANGE 2000 1999 % CHANGE
------------ ----------- --------- ------------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C>
AVERAGE BALANCES
Loans
Commercial $ 3,271,184 $ 2,575,814 27 $ 3,175,687 $ 2,499,067 27
Residential first mortgage 1,245,026 1,072,815 16 1,226,347 1,042,781 18
Real estate commercial mortgage 1,416,387 859,944 65 1,298,368 794,976 63
Real estate construction 430,538 304,777 41 403,868 274,247 47
Installment 67,336 52,666 28 64,199 50,089 28
------------ ------------ ------------- ------------
Total loans $ 6,430,471 $ 4,866,016 32 $ 6,168,469 $ 4,661,160 32
============ ============ ============= ============
Securities $ 1,558,339 $ 1,083,670 44 $ 1,383,686 $ 1,105,441 25
Interest-earning assets 8,017,627 5,982,452 34 7,598,986 5,802,437 31
Assets 8,757,790 6,491,294 35 8,316,702 6,271,829 33
Core deposits 5,000,742 3,821,962 31 4,865,363 3,731,321 30
Deposits 6,501,125 4,785,516 36 6,153,048 4,574,421 35
Shareholders' equity 692,436 558,693 24 650,464 561,784 16
NONINTEREST INCOME
Service charges on deposit accounts $ 5,888 $ 4,531 30 $ 17,194 $ 12,696 35
Investment services 6,831 5,474 25 19,164 14,413 33
Trust fees 5,197 4,442 17 15,646 13,307 18
International services 3,967 2,479 60 11,024 6,865 61
Bank owned life insurance 646 574 13 1,924 1,654 16
Other 4,256 3,550 20 12,643 9,323 36
------------ ------------ ------------- ------------
Subtotal - recurring 26,785 21,050 27 77,595 58,258 33
Gain on sale of securities, loans and assets 1,737 2,115 (18) 1,960 5,739 (66)
------------ ------------ ------------- ------------
Total $ 28,522 $ 23,165 23 $ 79,555 $ 63,997 24
============ ============ ============= ============
NONINTEREST EXPENSE
Salaries and other employee benefits $ 40,506 $ 34,191 18 $ 120,944 $ 99,017 22
------------ ------------ ------------- ------------
All Other
Professional 5,047 5,107 (1) 16,738 14,818 13
Net occupancy of premises 7,235 4,753 52 17,783 12,725 40
Information services 3,369 3,204 5 10,365 8,663 20
Marketing and advertising 2,503 2,428 3 8,827 7,573 17
Depreciation 3,203 3,005 7 9,484 8,154 16
Office services 2,302 2,118 9 7,144 5,983 19
Amortization of goodwill and core deposit
intangibles 4,361 2,286 91 12,229 6,257 95
Equipment 537 422 27 1,739 1,546 12
Acquisition integration 1 1,083 (100) 1,323 1,109 19
Other operating 4,920 2,772 77 12,567 9,259 36
------------ ------------ ------------- ------------
Total all other 33,478 27,178 23 98,199 76,087 29
------------ ------------ ------------- ------------
Total $ 73,984 $ 61,369 21 $ 219,143 $ 175,104 25
============ ============ ============= ============
SELECTED RATIOS
For the Period
Return on average assets 1.55 % 1.72 (10) 1.58 % 1.71 % (8)
Return on average shareholders' equity 19.63 19.94 (2) 20.25 19.08 6
Net interest margin 5.32 5.57 (4) 5.46 5.58 (2)
Efficiency ratio 54.44 57.54 (5) 56.19 57.13 (2)
Dividend payout ratio 24.33 26.83 (9) 24.88 28.33 (12)
Cash return on average assets 1.75 1.83 (4) 1.79 1.83 (2)
Cash return on average shareholders' equity 29.13 22.88 27 30.09 22.47 34
Cash efficiency ratio 51.23 55.41 (8) 53.06 55.09 (4)
Period End
Tier 1 risk-based capital ratio 7.85 7.98 (2)
Total risk-based capital ratio 10.88 11.44 (5)
Tier 1 leverage ratio 6.41 7.09 (10)
Nonaccrual loans to total loans 0.73 0.37 97
Nonaccrual loans and ORE to total loans and ORE 0.73 0.41 78
Allowance for credit losses to total loans 2.17 2.69 (19)
Allowance for credit losses to nonaccrual loans 296.90 719.69 (59)
</TABLE>
(Released to Business Wire this date)
