Company Profile For City Bank

City Bank (the Bank) is engaged in general commercial and retail banking, with an emphasis on small and medium-sized businesses, construction lending for single family residences and home mortgage lending. The Bank’s principle business activities are conducted thorough its office located in Lynnwood, Washington, and eight branches throughout Snohomish and King Counties. The Bank’s loan portfolio includes residential construction and development loans secured by real estate amounting to approximately 63% of the total loan portfolio. At December 31, 2008, 55.53% of the Bank’s deposits were in brokered deposits. The Bank’s primary focus has been lending to small and medium-sized businesses, construction lending for single family residences and home mortgage lending. At December 31, 2008, the Bank operated three full service mortgage banking officers in Snohomish, Pierce and Clark Counties whose purpose is to originate loans for sale into the secondary market.

BRIEF: For the nine months ended 30 September 2009, City Bank's interest income fell 61% to $32.2M. Net interest loss after LLP totaled $38.2M vs. an income of $17.6M. Net loss totaled $66.3M vs. an income of $4M. Net interest income reflects decreased interest income and an increase in loan loss provision. Net loss reflects a decline in non-interest income, an increase in non-interest expenses and higher cash expense relating to non-performing assets.