On November 8, 2006, the Board of Directors of City Bank (NASDAQ:CTBK) declared a 3-for-2 stock split to shareholders of record as of December 8, 2006, and payable on December 22, 2006. Shareholders of record as of December 8, 2006, will receive one additional share for every two shares they own. Shareholders entitled to receive fractional shares due to the split will receive cash in lieu of the fractional shares, payable on December 22, 2006, based on the closing price of City Bank stock as of December 8, 2006.

In addition, the Board declared a special cash dividend of $1.00 per share and a regular quarterly cash dividend of $0.15 per share to shareholders of record as of December 22, 2006, and payable on January 12, 2007. The $1.00 special cash dividend translates into a pre-split cash dividend of $1.50 per share while the $0.15 per share quarterly cash dividend, the Bank's 72nd consecutive quarterly dividend, translates into a pre-split cash dividend of $0.225 per share, or an increase of 12.50% over the previous quarter's dividend.

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.

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.