City Bank Receives a 30-Day Corrective Action
Directive from FDIC
l Restatement of 2009 Results
l The Bank’s Capital Plan
March 15, 2010 10:24 PM Eastern Daylight Time
LYNNWOOD, Wash.--(EON: Enhanced Online News)--City Bank (NASDAQ:CTBK) announced today that it
has received a Corrective Action Directive from the Federal Deposit Insurance Corporation (FDIC) giving it until
April 10 to raise additional capital through the sale of shares or obligations so that it will be "adequately capitalized."
If that is not possible, the FDIC directed City Bank to accept an offer to be acquired by another depository
institution.
The order also repeated restrictions already in place on accepting or renewing brokered deposits, increasing its
average total assets, making dividend payments or opening new branches. City Bank has been under a Consent
Agreement with the FDIC since June 2009 under which it agreed to a number of limitations. It has taken a number of
actions to reduce its non-performing loans, pay down the level of brokered deposits and raise capital. The Bank is
continuing to aggressively reduce non-performing assets and as of February 28, 2010, the Bank has additional
signed purchase and sales agreements representing 180 houses totaling approximately $48 million in construction
loans. The Bank has repaid $52 million of brokered deposits and public deposits in January and February, and will
repay another $50 million in March. As of February 26, 2010, the Bank has $247 million of cash and cash
equivalents and a $63 million federal income tax refund receivable, which totals $310 million of 90-day liquidity.
President and CEO Martin Heimbigner, who assumed his position in January when founder and CEO Conrad
Hanson retired, said City Bank continues to look for ways to bolster its capital levels, aggressively sell non-
performing assets and pay down debt. "We are continuing to talk and meet with investors across the country to
discuss a number of financing options.”
The following table summar