City Bank Announces Special Cash Dividend and Regular Quarterly Dividend.

LYNNWOOD, Wash. -- The Board of Directors of City Bank (Nasdaq:CTBK) declared a special cash dividend of $3.00 per share payable to shareholders of record as of November 25, 2005, and payable on January 6, 2006.

In addition to the special cash dividend, City Bank's Board of Directors declared a regular quarterly cash dividend of $.20 per share also payable to shareholders of record as of November 25, 2005, and payable on January 6, 2006. This cash dividend, the 85th paid in the Bank's 31-year history, is the 69th consecutive quarterly dividend.

With the lower federal tax rates on dividends, the Board believes that cash dividends are the most efficient way to return capital to shareholders. This is particularly true in light of the Bank's strong capital position, which was enhanced by the recent cash sale of our online data subsidiary, Diligenz Inc.

City Bank is a state-chartered commercial bank founded in 1974 and headquartered in Lynnwood, Washington. Eight banking offices and two mortgage loan production offices serve Snohomish, North King and Pierce 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.