Christopher J. Carey Chief Financial Officer. Deutsche Bank Summer Bank Summit Boston August 6, PDF Free Download

Christopher J. Carey Chief Financial Officer Deutsche Bank Summer Bank Summit Boston August 6, 2014

City National: Premier Private & Business Bank Founded: 1954 Headquarters: Los Angeles Assets: Market Cap: Offices: $30.8 billion ~$4.0 billion 77 (16 regl ctrs) Colleagues: 3,600 Markets: AUM/A: California, New York City, Nevada, Nashville and Atlanta $65.8 billion

Why City National? 1. Track record of profitability 2. Positioned for rising interest rates 3. Uniquely attractive clientele and focus 4. Exceptional deposit base 5. Growing loan portfolio 6. Strong, low-risk balance sheet 7. Excellent capabilities to drive long-term growth

A Track Record of Profitability 2Q2014 Change 1 Net income $ 66.7 mil. 12 % Earnings per share $ 1.11 7 % Revenue $ 320.2 mil. 12 % Net interest income $ 219.1 mil. 8 % Average loans 2 $ 18.0 bil. 16 % Average core deposits $ 25.5 bil. 14 % Noninterest income $ 101.1 mil. 23 % Assets under mgmt/admin $ 65.8 bil. 10 % (Reversal of) Loan loss provision 2 $ (1.0) mil. NM Loan loss allowance 2 1.68% (8) % 1. Percentage change from 2Q2013 2. Excluding FDIC-covered loans

Positioned for Rising Interest Rates City National stands to benefit as short-term rates rise 50% Change in net interest income 1 (Gradual 400 basis point parallel increase) Loan Portfolio 2 (% of total balances) 40% 37.3% 40.2% 22% 30% 20% 21% 57% 10% 0% 10.5% 9.6% Stable Balance Sheet Year 1 Year 2 Dynamic Balance Sheet 3 Floating Rate Adjustable Fixed 1. From base case, which assumes stable rates and stable balance sheet 2. Including FDIC-covered loans 3. Assumes loans (excluding FDIC-covered loans) increase 10% per year and deposits decline 7.5% per year compared to base case As of March 31, 2014

Uniquely Attractive Clientele & Focus TOTAL ASSETS Mega-Banks Assets > $100B CLIENTS Fortune 1000 $30.8B Strong Client Focus Businesses: $1M $250M Individuals: Assets > $1M Income > $250K Assets < $5B Community Banks Retail Customers 1 City National s Preferred Banking initiative targets individuals with income of $100,000 or more and investible assets of $250,000 or more.

Uniquely Attractive Clientele & Focus Los Angeles County - Population: 10.0 million - Branches: 32 San Francisco Bay Area - Population: 6.1 million - Branches: 12 Orange County/San Diego - Population: 6.3 million - Branches: 15 New York City - Population: 8.4 million - Branches: 2 Source: United States Census Bureau, City National Bank

Uniquely Attractive Clientele & Focus 9 of the Top 50 Metro Markets 1 (by Number of Millionaire Households) 1. New York et al, NY-NJ-PA 464,735 2. Los Angeles-Long Beach et al, CA 252,346 8. San Francisco-Oakland et al, CA 127,937 11. Atlanta-Sandy Springs et al, GA 99,797 17. Riverside et al, CA 70,397 18. San Diego-Carlsbad et al, CA 68,572 21. San Jose-Sunnyvale et al, CA 52,358 39. Las Vegas-Paradise, NV 30,793 42. Nashville-Davidson et al, TN 28,109 Source: Phoenix Marketing International, AMS 2013 1. Core Based Statistical Area

Uniquely Attractive Clientele & Focus Nearly half of our key clients have banked with us for a decade or more 47% use products from 5 or more of our 12 product categories 52% use both personal and business products

Exceptional Deposit Base Low-cost core deposits equal 98% of total balances 1 24 Average Deposits $21.6 $24.0 $25.9 20 $17.9 $19.3 $ in billions 16 12 8 $14.4 4 0 2009 2010 2011 2012 2013 2Q2014 Noninterest Bearing Other Interest Bearing CDs > $100K 1. Based on second-quarter 2014 average deposit balances

Growing Loan Portfolio Loan balances have increased for 13 straight quarters Average Loans 1 18 $15.4 $16.0 $16.8 $17.3 $18.0 $ in billions 12 6 0 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 Commercial CRE Mortgage Residential Mortgage RE Construction Equity Lines Installment 1. Excluding FDIC-covered loans

Strong, Low-Risk Balance Sheet Asset quality remains very sound, substantial reserves NPAs and NCOs 1 Provision and Reserves 1 0.68 0.61 0.53 0.47 0.45 0.37 $ in millions 1.86 1.83 1.79 1.76 1.72 1.68 0.08 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 (0.13) (0.10) (0.20) (0.17) (0.35) $0.0 $0.0 $0.0 $0.0 $0.0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 -$1.0 NPAs / Total Loans NCOs (Net Recoveries) / Avg. Loans Provision ($mm) Allowance / Total Loans 1 All totals and ratios exclude FDIC-covered assets

Strong, Low-Risk Balance Sheet City National already complies with 2019 Basel III standards Nonaccruals to Tier 1 plus ALLL 15% 14.6% 12.4% 10% 9.3% 5% 5.3% 4.7% 6.0% 5.0% 4.9% 2.9% 2.9% 0% 2010 2011 2012 2013 1Q2014 CNB Peer Median Peer Group: National banks with assets of $10-$50 billion Source: SNL Financial

Excellent Capabilities to Drive Long-Term Growth Investing in new technologies and products

Investing in New Technologies & Products

Excellent Capabilities to Drive Long-Term Growth Investing in new technologies and products Banking office strategy 3.0

Banking Office Strategy 3.0 New York - 6 th Avenue New York - Park Avenue

Excellent Capabilities to Drive Long-Term Growth Investing in new technologies and products Banking office strategy 3.0 Enhancing industry specialties and adding talented colleagues

Enhancing Industry Specialties & Adding Talented Colleagues Entertainment Real Estate Technology Legal Services Healthcare

Enhancing Industry Specialties & Adding Talented Colleagues Serving clients nationwide Equipment leasing Asset-based lending Franchise finance Mortgage warehouse banking

Excellent Capabilities to Drive Long-Term Growth Investing in new technologies and products Opening branches Enhancing industry specialties and adding talented colleagues Growing wealth management business

Growing Wealth Management Business Serving high-net-worth and institutional clients $ 65.8 billion Assets Under Management or Administration As of June 30, 2014 2 City National Rochdale Convergent Wealth Advisors Lee Munder Capital Group Matthews International 1 1 Minority interest 2 Excludes City National s minority interest in Matthews International ($26.6 billion)

Supplementing Organic Growth With Acquisitions First American Lee Munder Rochester Boston Rochdale New York San Francisco San Jose Reno Las Vegas Nevada Commerce Expansion 1 st Pacific Los Angeles Sun West Nashville Expansion Imperial Capital San Diego Datafaction Atlanta Expansion 2009 2010 2011 2012 One FDIC, one branch deal in CA Acquired Lee Munder Capital Group Opened branch in NYC Acquired Datafaction Two FDIC, one branch deals in CA and NV Opened branches in Nashville and Atlanta FDIC deal in NV Acquired First American Equipment Finance Acquired Rochdale Investment Management

The Economy: Turning the Corner CALIFORNIA NATIONAL NEW YORK 2.0% 1.9% 0.7% Change in Real GDP by State/2013 Change in Real GDP/ 2013 Change in Real GDP by State/2013 7.4% 6.1% 6.6% Unemployment Rate/ June 2014 (Seasonally Adjusted) Unemployment Rate/ June 2014 (Seasonally Adjusted) Unemployment Rate/ June 2014 (Seasonally Adjusted) Sources: Bureau of Economic Analysis and Bureau of Labor Statistics

The Economy: Turning the Corner California added 356,900 jobs in one year 1 12-Month Change to June 2014 (000s) 1 Healthcare & Social Assistance 80.6 Admin & Support Services Leisure & Hospitality Prof'l, Scientific & Tech. Services 41.9 40.9 45.6 Construction Retail Trade Information Educational Services Government Wholesale Trade 29.5 23.4 22.8 17.3 15.8 14.8 Manufacturing -3.8 Finance & Insurance -13.5-20.0 0.0 20.0 40.0 60.0 80.0 100.0 Source: California Employment Development Dept. 1. Not seasonally adjusted Preliminary

City National: Premier Private & Business Bank 1. Track record of profitability 2. Positioned for rising interest rates 3. Uniquely attractive clientele and focus 4. Exceptional deposit base 5. Growing loan portfolio 6. Strong, low-risk balance sheet 7. Excellent capabilities to drive long-term growth

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. A number of factors, many of which are beyond the company s ability to control or predict, could cause future results to differ materially from those contemplated by such forward-looking statements. These factors include: (1) changes in general economic, political, or industry conditions and the related credit and market conditions and the impact they have on the company and its customers, including changes in consumer spending, borrowing and savings habits; (2) the impact on financial markets and the economy of the level of U.S. and European debt; (3) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Board of Governors of the Federal Reserve System; (4) limited economic growth and elevated levels of unemployment; (5) the effect of the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and the rules and regulations to be promulgated by supervisory and oversight agencies implementing the new legislation, taking into account that the precise timing, extent and nature of such rules and regulations and the impact on the company are uncertain; (6) the impact of revised capital requirements under Basel III; (7) significant changes in applicable laws and regulations, including those concerning taxes, banking and securities; (8) the impact of cyber security attacks or other disruptions to the company s information systems and any resulting compromise of data or disruptions in service; (9) changes in the level of nonperforming assets, charge-offs, other real estate owned and provision expense; (10) incorrect assumptions in the value of the loans acquired in FDIC-assisted acquisitions resulting in greater than anticipated losses in the acquired loan portfolios exceeding the losses covered by the loss-sharing agreements with the FDIC; (11) changes in inflation, interest rates, and market liquidity which may impact interest margins and impact funding sources; (12) the company s ability to attract new employees and retain and motivate existing employees; (13) increased competition in the company s markets and our ability to increase market share and control expenses; (14) changes in the financial performance and/or condition of the company s customers, or changes in the performance or creditworthiness of our customers suppliers or other counterparties, which could lead to decreased loan utilization rates, delinquencies, or defaults and could negatively affect our customers ability to meet certain credit obligations; (15) a substantial and permanent loss of either client accounts and/or assets under management at the company s investment advisory affiliates or its wealth management division; (16) soundness of other financial institutions which could adversely affect the company; (17) protracted labor disputes in the company s markets; (18) the impact of natural disasters, terrorist activities or international hostilities on the operations of our business or the value of collateral; (19) the effect of acquisitions and integration of acquired businesses and de novo branching efforts; (20) changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies; and (21) the success of the company at managing the risks involved in the foregoing. For a more complete discussion of these risks and uncertainties, please refer to the company s Annual Report on Form 10-K for the year ended December 31, 2013.

Christopher J. Carey Chief Financial Officer. Deutsche Bank Summer Bank Summit Boston August 6, 2014