City Bank Annual Shareholders' Meeting Results and Adjournment.

LYNNWOOD, Wash. -- City Bank (Nasdaq:CTBK) announced today that at its annual meeting of shareholders convened on May 10, 2006, a proposal was adopted to eliminate City Bank's staggered board of directors and thereby commence electing the entire board on an annual basis. James Carroll, Conrad Hanson, Martin Heimbigner, R. Scott Hutchison, Thomas J. Jochums, John Kolodzie and Richard Pahre were each re-elected as directors until the next annual meeting. Further, shareholders ratified the selection of McGladrey & Pullen LLP as City Bank's independent registered public accounting firm.

The meeting was also called for the purpose of considering a proposal to amend City Bank's articles of incorporation to amend the director nomination provision and to move the provision to the bylaws. Approval of this proposal requires the affirmative vote of 66 2/3% of those shares of City Bank common stock outstanding and entitled to vote. At the meeting convened on May 10, 2006, it was determined that affirmative votes had been received for approximately 63% of the shares outstanding and entitled to vote. As the number of affirmative votes received was so proximate to the number required to approve the proposal, shareholders present at the meeting approved a motion presented by management to adjourn and reconvene the meeting to allow additional time to solicit proxies from those shareholders who had not voted on the proposal.

City Bank's annual meeting is adjourned to June 7, 2006, at 3:00 p.m. at the bank's main office, located at 14807 Highway 99, Lynnwood, Washington. Shareholders who have not voted on the director nomination proposal are encouraged to do so promptly. For shareholders who have voted on this proposal, no additional action is required. Proxies may be submitted or revoked anytime prior to the adjourned meeting on June 7, 2006. To request an additional proxy card, please contact Chantha Bunphoath, Chief Financial Officer, at 425-787-5576.

About City Bank

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, 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.

Safe Harbor 

This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected, including but not limited to the following: general economic conditions and its impacts on the company's client base, loan concentrations; business conditions in the banking industry; the regulatory environment; new legislation; heightened national security risks including acts of terrorism; vendor quality and efficiency; employee retention factors; rapidly changing technology and evolving banking industry standards; competitive factors, including increased competition among financial institutions; fluctuating interest rate environments; cash flow, operating performance, availability of retained earning and decisions made by its board of directors with respect to dividend practices and similar matters. Readers are cautioned not to place undue reliance on the forward-looking statements. City Bank undertakes no obligation to publicly revise or update the forward-looking statements to reflect events or circumstances that arise after the date of this release. Readers should also carefully review any risk factors described in its Annual Report on Form 10-K, the most recent Form 10-Q and other documents including any Form 8-Ks provided to or filed from time to time with the Federal Deposit Insurance Corporation. This statement is included for the express purpose of invoking PSLRA's safe harbor provisions.