The forerunner of today's City National Bank of Florida: North Shore Bank, one of the first commercial banks in the region, opened at st Street

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2 The forerunner of today's City National Bank of Florida: North Shore Bank, one of the first commercial banks in the region, opened at st Street on Miami Beach, just west of our current Miami Beach office.

3 Newest office: Our Coral Gables bank relocated to a beautiful new building at 2855 LeJeune Road.

4 60 years. Not very long in nature. But for a Community Bank in South Florida, Outstanding! When I look back, there are so many great stories. The ones I lived and the ones I heard from my father, who founded the bank and worked here until he passed away at the age of 97. We tell the stories often, especially to young bankers, because there is so much to learn from the past. Sometimes it is like telling my kids about life before DVDs and cell phones, even before color TV and stereophonic sound. The stories reflect a banking world that for the most part does not resemble today's. We tell them anyway, because ultimately they are about who we are and how we conduct ourselves. What we stand for. What we believe in. What keeps us going as an independent financial institution in a banking market that continues to consolidate. They are about our pursuit of excellence, our desire to be outstanding in everything we do. What stands out the most about the past is the people: the men and women who built this bank, who devoted most, and in some cases all, of their careers to doing the very best they could for our customers, our community and their fellow employees. When we say we are a family business we are not just talking about my own family. At this year's Officers' Meeting we celebrated the 55th employment anniversary of Executive Assistant Joyce Andrews. Joyce worked with my father most of those years and she has known me since I was three. Close behind her is Geneva Lawson, Safe Deposit Clerk, 49 years. We worked together in the print shop the summer I turned 14 (even then we had modern technology: offset printing). Linda Naughton, Corporate Services Manager, 48 years. We worked together in safe deposit the summer I turned 16. Roberta Swan, Senior Vice President, Private Banking, 47 years. Michael Orovitz, Executive Vice President, Private Banking, 43 years. Michael's father, Max Orovitz, was a great leader in our community. He also helped guide City National as a Director for more than 25 years. Ana Vazquez, Account Services Coordinator, 40 years. Virginia Dunn, Private Banking Support Manager, 40 years. Her family and mine go back a lot longer than that. There are another 23 people here with more than 30 years of service. They include Pat Camp, EVP and Chief Financial Officer, who started as a summer intern 38 years ago. Her father, Al, worked here for 10 years as a Senior Vice President in Lending. Ofelia Helsper, Assistant Controller, 37 years. Ofy's mother, brother, cousin and son all worked at the bank, and she met her husband, Doug, here. Carleatha Barbary, Assistant Branch Manager, 36 years. Her husband, Roy, used to work here. Banking Services Manager Iliana Morejon, 34 years.

5 The longevity of our employees is mirrored on our Board. It includes my cousin, Allan, who has been here 57 years including his previous tenure as President. Richard Banick, 42 years. Stanley Segal, 40 years. Buddy Galvin and Irv Cowan, both 37 years. Don McCloskey, 35 years. Morton Weiner, 22 years. But we also have Directors who joined our Board as recently as this year. A key ingredient of City National's success is this great diversity, both in the workplace and on the Board. Our Board possesses a wealth of wisdom and experience that they use to guide us in our drive for excellence. It is the people that make us outstanding. When my kids have had enough of stories about the past, they remind me that they are focused on the future. In an ever-changing business environment and in an industry that evolves at an increasing pace, we too are focused on the future. We wish to remain independent and we know that the best way to do that is by continually delivering superior performance. We hear the complaints in our industry, the many reasons given by those who sell. The flat yield curve. The regulatory burden. The fierce competition of the large banks and of course the never-ending lament that it "just isn't what it used to be." In this industry the sky has been falling since long before I became a banker. And yet there are always those that excel, even in the most difficult times. That is what we intend to do: excel, no matter what the environment is. We have decided to begin an expansion around the state. First stop, Orlando. There we are being led by the newest member of our senior team, Stephen Green, a local banker with 33 years of experience. New to our corporate office, but not to our team, is Harold Brewer. For more than a decade Harold was an outside advisor to our company and to me personally. His advice and leadership have been major drivers of our success. He has joined us to help develop the skills and technology we will need for our growth and expansion. Technology has always been very important at City National. I worked on our first computer in We are continually looking to improve our technology and have committed substantial resources to staying at the forefront. We are able to bank anyone, anywhere, at any time. Some of our largest relationships are based outside of Florida. More and more of our local relationships are expanding statewide, nationally and internationally. We are committed to serving them wherever they conduct their business. We will open banks in the major Florida cities. We will recruit the best people in the markets we serve. We will learn from their experience, provide them with the tools they need and bring them into our culture. As our industry changes, we will too. What will never change are our values, the fundamental commitments we made to our communities, our customers and our employees back in That is why customers bank with us for decades, through generations of their own families we have customers who have been with us 60 years. If you are not a customer, try us. Experience banking at its best. Become part of the new stories that will unfold over the coming decades as City National continues to be Outstanding. Leonard Abess Chairman Chief Executive Officer President

6 Leonard Abess Chairman CEO and President City National Bank of Florida Allan T. Abess Director City National Bank of Florida Henry (Hank) Adorno, Esq. Adorno & Yoss, LLP Richard S. Banick, Esq. Fowler White Burnett, P.A. Hayward J. Benson, Jr., Ed.D. President/CEO The Ben-Alex Group, Inc. Thomas B. Brady Director City National Bank of Florida Irving Cowan Real Estate Investor Edgar H. Galvin Investor

7 The Hon. Evelyn Langlieb Greer MDC Public School Board Member Partner, Hogan, Greer & Shapiro, P.A. George F. Knox, Esq. The Knox Firm Donald C. McClosky, Esq. Ruden, McClosky, Smith, Shuster & Russell, P.A. Stanley Segal Investor Laurie Silvers President, Hollywood Media Corp. CEO, Home Town Cable TV, LLC Lynn M. Summers Community Technologies Aileen M. Ugalde Vice President, General Counsel Secretary to the Board University of Miami Morton D. Weiner Morton D. Weiner/AMPAC, Inc. Executive Management Team Back : Michael D. Orovitz, Private Banking Executive; Karen B. Gilmore, Lending Executive; Patricia M. Camp, Chief Financial Officer; Nelson M. Alemany, Retail Executive. Front : Sandra E. Mento, Bank Operations Executive; Caridad Perez, Risk Management Executive; Rachelle L. Wagner, Human Resources Executive.

8 Growing organically, without acquisitions, City National has consistently ranked as one of the top performing banks in its peer group. In rankings of banks with over $1 billion in assets, we have continually placed among the top 50 banks in the United States in such categories as Return on Assets, Efficiency Ratio and Return on Average Equity.

9 The lower the better: Efficiency Ratio = Non-interest Expense Net Interest Income + Non-interest Income (what it costs the bank to produce each $1 of revenue).

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12 City National Bank of Florida BALANCE SHEETS FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005 (IN THOUSANDS) ASSETS Interest-earning assets: Loans $ 1, 712,427 $1,706,206 Less: Unearned discount ( 4,8 9 3) (5,787 ) Allowance for loan losses ( 23,798) ( 22,586 ) Loans, net 1,6 83,73 6 1,677,833 Securities available for sale 647, ,325 Securities held to maturity (approximate fair values: $32,853 in 2006 and $32,294 in 2005) 32,604 32,353 Federal funds sold and securities purchased under agreements to resell 200, ,000 Interest-bearing balances with financial institutions 5, Total interest-earning assets 2,569, , 727, Cash and due from banks 1 1 0, ,386 Accrued interest receivable 16,144 14,145 Bank premises and equipment, net 39, , 75 1 Other assets 1 7,705 4,054 TOTAL $ 2,753,4 72 $ 2,896,1 5 3 LIABILITIES AND STOCKHOLDER S EQUITY Deposits and borrowings: Deposits $ 2,002,200 $ 2,35 1,290 Other borrowings 25, , 585 Federal funds purchased and securities sold under agreements to repurchase 438, ,257 Total deposits and borrowings 2,466,246 2, 645, 1 32 Other liabilities 1 0,544 8,256 Total liabilities 2,476, 790 2,653,388 Stockholder s equity: Common stock, $10 par value; authorized, issued, and outstanding 1,420,000 shares 14,200 14,200 Capital surplus 14,200 14,200 Retained earnings 250, ,357 Accumulated other comprehensive loss (2,506 ) (5,992) Total stockholder s equity 276, ,765 TOTAL $ 2,75 3,472 $ 2,896, 1 53

13 City National Bank of Florida STATEMENTS OF EARNINGS AND COMPREHENSIVE EARNINGS FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005 (IN THOUSANDS) INTEREST INCOME: Interest and fees on loans $135,845 $109,667 Interest and dividends on securities 25,560 20, 880 Interest on federal funds sold and securities purchased under agreements to resell 1 9,074 15,119 Interest on interest-bearing balances with financial institutions , ,717 INTEREST EXPENSE: Interest on deposits 45, ,289 Interest on borrowings 20, , ,453 40,357 NET INTEREST INCOME 1 1 5, ,360 PROVISION FOR LOAN LOSSES 1, ,500 NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 1 1 3, ,860 OTHER OPERATING INCOME: Service charges, commissions, and fees 7, 887 8, 305 Loss on sales of investment securities, net 0 ( 1 56 ) Other 2,847 2,794 10,734 10,943 OTHER OPERATING EXPENSES: Salaries and employee benefits 37,047 33,251 Occupancy expense 8,010 7,429 Equipment expense 1,86 2 1,765 Other 10,630 10,505 57,549 52,950 NET EARNINGS 67, , 853 OTHER COMPREHENSIVE EARNINGS: Unrealized gains/(losses) on securities 3,486 (4,992 ) Less: reclassification adjustment for gains/(losses) included in net earnings Total 3,4 86 (4,836) COMPREHENSIVE EARNINGS $ 70,592 $ 57, 01 7

14 City National Bank of Florida STATEMENTS OF STOCKHOLDER S EQUITY FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005 (IN THOUSANDS) Other Comprehensive Common Capital Retained Earnings Stock Surplus Earnings Gains/(Losses) Total BALANCE December 31, 2004 $14,200 $14,200 $ 1 89,904 $( 1,1 56) $ 2 1 7,1 48 Net earnings 61,853 61,853 Dividends ( 31,400 ) (31,400) Change in valuation, securities available for sale (4,836 ) (4,836) BALANCE December 31, ,200 14, ,357 ( 5,992 ) 242,765 Net earnings 6 7, ,1 06 Dividends (36,675 ) (36,675) Change in valuation, securities available for sale 3,486 3,486 BALANCE December 31, 2006 $14,200 $14,200 $250,788 $( 2,506 ) $ 276,682

15 City National Bank of Florida LOANS LOANS CLASSIFIED BY TYPE ARE SUMMARIZED AS FOLLOWS (IN THOUSANDS): December Real estate: Adjustable $ 939, 080 $1,024, 1 05 Fixed 406, ,269 Commercial and business: Adjustable 1 82, ,167 Fixed 62, ,298 Consumer: Adjustable 14,867 11,215 Fixed 5,890 4,459 Other 1 00, , 693 Total $ 1, 712,427 $ 1, 706,206 SECURITIES SECURITIES CLASSIFIED BY TYPE ARE SUMMARIZED AS FOLLOWS (IN THOUSANDS): December SECURITIES AVAILABLE FOR SALE (approximate fair values) U. S. Treasury $ 54, 551 $128,654 U. S. government agencies 1 90, ,271 Collateralized mortgage obligations 288, , 1 95 Adjustable rate mortgage securities 56, , 737 Obligations of state and political subdivisions 3 1, ,547 Other securities 26, ,92 1 Total $647,4 8 2 $ 557, 325 SECURITIES HELD TO MATURITY (amortized cost) Collateralized mortgage obligations $ 29, 192 $ 29,177 Obligations of state and political subdivisions 1, , 176 Other securities 1, ,000 Total $ 32,604 $ 32,353

16 City National Bank of Florida DEPOSITS DEPOSIT ACCOUNTS CONSIST OF THE FOLLOWING (IN THOUSANDS): December Demand $ 689,9 1 2 $ 800,047 Interest checking 21 1, ,4 1 6 Savings 1 1 8, ,703 Money market savings 728, ,693 Other time deposits 254, ,43 1 Total $ 2,002,200 $ 2,35 1,290 FEDERAL FUNDS PURCHASED, SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE December FEDERAL FUNDS PURCHASED: Balances outstanding $ 15,200 $ 200 Largest amount outstanding at any month-end 1 5,200 3,600 Average balance outstanding during the year 945 2,873 Weighted-average interest rate for the year 4.94% 3.05 % SECURITIES SOLD UNDER AGREEMENT TO REPURCHASE: Balances outstanding $ 423,26 1 $ 258,057 Largest amount outstanding at any month-end 451, ,860 Average balance outstanding during the year 420, , 688 Weighted-average interest rate for the year 4.46% 2.85%

17 City National Bank of Florida ALLOWANCE FOR POSSIBLE LOAN LOSSES TRANSACTIONS AFFECTING THE ALLOWANCE FOR POSSIBLE LOAN LOSSES ARE SUMMARIZED AS FOLLOWS (IN THOUSANDS): December Balance, beginning of the year $ 22,586 $ 21,245 Provision for possible loan losses 1,178 1,500 Recoveries Loans charged off (153 ) (407 ) Balance, end of year $ 23,798 $ 2 2,586 CAPITAL AMOUNTS AND RATIOS As of December 31, 2006: Required to be Categorized as Required Well Capitalized Under for Capital Prompt Corrective Actual Adequacy Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) $ 303,715, % $164,052, % $205,065, % Tier 1 capital (to risk-weighted assets) $278,926, $ 82,026, $ 1 23,039, Tier 1 capital (to average assets) $278,926, $1 1 0, 726, $ 1 38,408, As of December 31, 2005: Total capital (to risk-weighted assets) $272, 1 52, % $165,000, % $206,000, % Tier 1 capital (to risk-weighted assets) $ 248, 5 1 5, $ 82,000, $1 23,000, Tier 1 capital (to average assets) $ 248, 5 1 5, $1 1 4,000, $142,000,

18 MIAMI - DADE COUNTY MAIN/CORPORATE OFFICES 25 West Flagler Street Miami, FL citynational.com 41ST STREET 475 Arthur Godfrey Road Miami Beach, FL BRICKELL 1428 Brickell Avenue Miami, FL NORTH MIAMI Biscayne Boulevard North Miami, FL ST STREET st Street Miami Beach, FL CORAL GABLES 2855 LeJeune Road Coral Gables, FL PINECREST South Dixie Highway Miami, FL AVENTURA 2875 NE 191 Street Aventura, FL DORAL 8725 NW 18th Terrace Miami, FL SOUTH BEACH 446 Collins Avenue Miami Beach, FL ONE BISCAYNE One Biscayne Tower Miami, FL METRO PLAZA 111 NW 1st Street Miami, FL SOUTH DADE 6975 SW 87th Avenue Miami, FL

19 BROWARD COUNTY HALLANDALE BEACH 1995 E. Hallandale Beach Blvd. Hallandale Beach, FL ORLANDO LENDING OFFICE Premier Point North 225 S. Westmonte Drive #2080, Altamonte Springs, FL LAS OLAS DRIVE-THRU 250 North Federal Highway Fort Lauderdale, FL LAS OLAS Las Olas Centre 450 East Las Olas Boulevard Fort Lauderdale, FL Miami Corporate Offices POWERLINE 6825 North Powerline Road Fort Lauderdale, FL PALM BEACH COUNTY BOCA RATON 641 South Federal Highway Boca Raton, FL Las Olas Office DELRAY BEACH 1120 South Federal Highway Delray Beach, FL GLADES ROAD 2301 Glades Road Boca Raton, FL Delray Beach Office

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21 C o m m u n i t y R e i n ve s t m e n t Ac t is in our There is no better reason to be in banking than to make a on the communities we serve. Devote the resources. Create Achieve the Community Reinvestment Act rating. Three ratings from the OCC.* * CitySmart Community Mortgage closings including refinance opportunities that saved homeowners from the grip of predatory lenders. *Latest period examined:

22 We measure success in human terms. The quality of our relationships with customers and employees defines our corporate culture every working day. We pledge that honesty is the basis of all our endeavors and set the highest standards for ethical behavior. We support and enjoy diversity among our employees and welcome the opportunity to deepen our understanding of people, their cultures and outlooks on life. We welcome change and are inspired by the continual challenge of exploring new ideas. Open discussion is encouraged within an atmosphere of mutual respect. We believe our customers should be treated with kindness, courtesy, professionalism, and a sense of urgency in meeting their requests. We place tremendous value upon the goodwill and cooperation so necessary for teamwork, while encouraging individual growth and accomplishment. We cherish our community and pledge our support as we work together to build a future in which everyone can prosper.

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