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City Bank Suspends Cash Dividend

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^{Published in Business and Finance on Friday, February 13th 2009 at 14:14 GMT, Last Modified on 2009-02-13 14:14:37 by Market Wire}  

LYNNWOOD, Wash.--([ BUSINESS WIRE ])--At the February 11, 2009 Board Meeting, the Board of Directors of City Bank (NASDAQ:CTBK) voted to suspend the payment of quarterly cash dividends on the Bank's common stock effective immediately. The Board took into account various factors, and determined the action to suspend the payment of cash dividends will contribute toward the Bank maintaining strong capital and cash reserves as it works its way through the current economic downturn.

The Board recognizes the significant impact this will have on our shareholders. Unfortunately, the economic cycle we are experiencing is creating tremendous challenges for all financial institutions including City Bank. Therefore, the Board believes this is prudent and ultimately in the best long term interest of shareholders to preserve the Bank's strong level of capital. The Board and management are committed to effectively manage credit risk and preserve adequate levels of capital and liquidity in the current economic environment.

City Bank is a state-chartered commercial bank founded in 1974 and headquartered in Lynnwood, Washington. Eight banking offices and three mortgage loan production offices serve Snohomish, North King, Pierce and Clark counties. City Bank provides a wide range of banking services for business and individuals, including loans for residential construction, land development, mortgage, commercial, Small Business Administration, consumer, and all types of deposits as well as other general banking services. City Bank has been consistently recognized as one of the top performing banks in Washington State as well as nationally.

[ www.citybankwa.com ]