City Bank Announces Completion of Sale of Diligenz, Inc. Subsidiary.

LYNNWOOD, Wash. -- City Bank (Nasdaq:CTBK) announced today that it completed the pending sale of its subsidiary, Diligenz(R), Inc. to Corporation Service Company(R)(CSC), headquartered in Wilmington, Delaware in a cash transaction. City Bank realized net proceeds of approximately $35 million at closing and will report an after tax gain of approximately $28 million from this transaction.

Diligenz, Inc. is a nationwide due diligence and document retrieval service provider. It provides UCC searching, filing and due diligence services, including corporate good standing searches. These services are accomplished online in real-time direct from the client's desktop with a proprietary search and retrieval system accessed through Diligenz's Internet site.

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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. Two mortgage loan offices serve Snohomish, King and Pierce counties. City Bank provides a wide range of banking services for business and individuals, including loans for residential, construction, commercial, Small Business Administration, mortgage and 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.