We also continued to focus on the quality of our balance sheet. In the past five years, our total average loans have almost quadrupled while becoming more diversified. During 2000, we took decisive steps to reduce -- by 64% -- our portfolio of syndicated non-relationship loans, from $537 million at the end of 1999 to $192 million. By year-end 2000, these syndicated non-relationship loans accounted for less than 3% of our loan portfolio.

City National's allowance for credit losses at the end of 2000 totaled $135.4 million, or 2.07% of outstanding loans, which places us among the best in the group of banks we regard as peers. In 2000, we recorded a provision for credit losses of $21.5 million; this was our first provision since the mid-1990s. Total nonperforming assets at year-end 2000 were $62.5 million, or 0.96% of total loans and ORE, compared with $26.7 million, or 0.49% at year-end 1999.

As the growth of the economy began to slow in 2000, and as the level of recoveries declined, a few trouble spots emerged -- notably syndicated non-relationship loans. At the same time, our level of nonperforming assets began to return to more normal levels, leading to additions to our allowances in pace with the significant growth of our loan portfolio. We are giving even greater emphasis to credit quality issues -- both in underwriting and monitoring -- as we respond to the changing phases of California's economic cycles.

Our strong performance has enabled us to continue our commitment to improve the California communities we serve -- through loans, contributions and the volunteer efforts of so many of our colleagues. We are especially proud of our many initiatives to make our communities better places for everyone. For example, we continue to support well-known community development corporations that are devoted to increasing small business lending and homeownership among people with low to moderate incomes.

NET INCOME ($ millions)	NONINTEREST INCOME  NET INTEREST INCOME ($ millions)