5) Maintain Good Credit Quality. City National maintains a disciplined approach, an organizational structure and a strong commitment to sustain credit quality, beginning with a strict set of guidelines as to the size and underwriting characteristics of new loan originations. In recent years we have, by design, diversified our loan portfolio by industry, geography and size -- and added colleagues with specialized expertise in the industries we serve. It is also worth noting that nearly 20% of our loan portfolio is in single-family mortgages with, on average, relatively low loan-to-value ratios.

6) Manage for Continuous Productivity Improvement. We have deployed new technology and techniques throughout the organization to help improve operating efficiencies. Increasingly, we segment services to match client profitability and further strengthen our capabilities to serve clients productively. During 2000, we streamlined many internal client-service and procedural functions: we saved time and money by better integrating operations of acquired companies; we increased our call center's capabilities; we transferred all bank policy and procedure manuals online; we added search engines so our colleagues can quickly find and implement what they need; and we automated many of the functions that support the services we deliver to our valued clients.

AVERAGE CORE DEPOSITS ($ billions)  Demand  CDs < $100,000  Other Interest Bearing	ASSETS UNDER ADMINISTRATION / MANAGEMENT ($ billions)  Administration  Management