City Bank Announces Change in Board of Directors and Notice from NASDAQ

Martin Heimbigner, President and CEO of City Bank (NASDAQ:CTBK), today announced that Scott Hutchison has stepped down from the Board of Directors. This move was made in response to notification from NASDAQ that, pursuant to its listing rule 5605(b)(1), City Bank had until June 30, 2010, to satisfy its listing requirement that a majority of its board members be independent.

Following the appointment of Mr. Heimbigner as President and CEO effective January 1, 2010, the Board had only three independent directors out of a seven-person board. With Mr. Hutchison’s resignation and the previously announced retirement from the Board by former President and CEO Conrad Hanson at the 2010 Annual Meeting, the Board will reestablish compliance with NASDAQ’s majority independent director rule.

About City Bank

City Bank is a state-chartered commercial bank founded in 1974 and headquartered in Lynnwood, Washington. The Bank is publicly traded (NASDAQ:CTBK) and many of the stockholders are local individuals. Eight banking offices serve both Snohomish and North King counties. Three mortgage loan offices serve Snohomish, 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.

Forward-Looking Statements

The discussion may contain certain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those stated, including, but not limited to, the Bank’s inability to generate increased earning assets, sustain credit losses, maintain adequate net interest margin, control fluctuations in operating results, maintain liquidity to fund assets, retain key personnel, and comply with the consent order with applicable bank regulators, and other risks detailed from time to time in the Bank’s filings with the Federal Deposit Insurance Corporation, including our Annual Report on Form 10-K for the period ended December 31, 2008. Readers are cautioned not to place undue reliance on these forward-looking statements.