City Bank Announces Cash Dividend
December 10 2008 - 7:55PM
Business Wire
On December 10, 2008, the Board of Directors of City Bank
(NASDAQ:CTBK) declared a $.06 per share cash dividend, payable to
shareholders of record as of January 2, 2009, and payable on
January 16, 2009. This cash dividend is the 99th paid, including
regular and special dividends, in the Bank�s 34-year history and
the Bank�s 81st consecutive quarterly dividend. The decision to
reduce the quarterly cash dividend was made after careful and
extensive consideration at our Board of Directors meeting. The
Board recognizes the significant impact this will have on our
shareholders. Unfortunately, the economic cycle we are experiencing
creates tremendous challenges for all financial institutions,
including City Bank, as evidenced by the significant increase in
the nonperforming assets as reported for the third quarter ended
September 30, 2008. 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. Risk-based capital
ratios are calculated to provide a measure of capital that reflects
the degree of risk associated with a financial institution's assets
and off-balance-sheet items. City Bank�s total risk-based capital
ratio was 17.55% at September 30, 2008, significantly greater than
the 10% level required to be classified as "well-capitalized," the
highest rating possible under FDIC and Federal Reserve Board
Guidelines. The Board recognizes that these are not ordinary times,
and took that into consideration in setting the lower dividend
payment. The Board of Directors also announced, while applauding
the U.S. Government's systemic and creative approach to alleviating
the current National financial crisis, that it would not be in the
best interests of the Bank or its shareholders to apply for aid
from the U.S. Treasury under the Treasury's new capital assistance
program. This conclusion was reached based on the costs of the
program versus the relative benefits given the bank�s capital
position. 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.
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