City Bank Increases Quarterly Cash Dividend and Announces Special Cash Dividend.

Business Editors

LYNNWOOD, Wash.--(BUSINESS WIRE)--Aug. 13, 2003

The Board of Directors of City Bank (Nasdaq:CTBK) today declared a $.20 per share cash dividend, payable to shareholders of record as of September 12, 2003, and payable on September 26, 2003. This cash dividend, the 76th paid in the Bank's 29-year history, is the 60th consecutive quarterly dividend. It reflects a 100% increase over the dividend of $.10 paid to shareholders in the second quarter of 2003.

In addition to the regular quarterly dividend, City Bank's Board of Directors declared a special dividend of $1.00 per share, which will also be paid to shareholders of record as of September 12, 2003, and payable on September 26, 2003.

With the new, lower tax rate on dividends, cash dividends are the most efficient way to return capital to shareholders. Paying an increased dividend gives shareholders more options as to the use of their share of the Bank's profits.

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