City Bank (NASDAQ:CTBK) has filed a Notification of Late Filing
on Form 12b-25 with the Federal Deposit Insurance Corporation to report
that it was not able to timely file its Annual Report on Form 10-K for
the year ended December 31, 2008. As disclosed in our press release
dated February 2, 2009, we experienced a significant increase in
non-performing assets as of December 31, 2008. As a result, we are
continuing to obtain appraisals and other relevant information on
impaired loans and Other Real Estate Owned (OREO) to provide the most
current and accurate basis for the preparation of our financial
statements in accordance with generally accepted accounting principles.
The Bank initially reported a net loss of $35.80 million, or $2.27 per
diluted share for the year ended December 31, 2008 and $39.90 million,
or $2.53 per diluted share for the quarter ended December 31, 2008,
compared to net income of $41.50 million, or $2.62 per diluted share for
the prior year end and $10.19 million or $0.65 per diluted share in the
prior year quarter. The primary cause for the net loss for the quarter
and for the year was a provision for loan losses of $58.00 million in
the fourth quarter and $91.10 million for the year. The Bank’s
Management is re-examining the amounts of the allowance at December 31,
2008 in light of economic conditions affecting the Bank’s borrowers and
the collateral for its loans. In light of these pending appraisals in a
deteriorating real estate market, the Bank expects to report a higher
loss than initially reported in its year-end earnings release. The Bank
expects to file the Form 10-K on or before the fifteenth calendar day
following the original March 16, 2009 due date.
Forward-Looking Statements
The previous discussion contains a summary of City Bank’s operating
results and financial condition for the three and twelve months ended
December 31, 2008 and 2007. 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 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, 2007. Readers are cautioned not to place undue reliance on these
forward-looking statements.
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.
