City Bank declares historical cash dividend which was reduced according to decision of the board of directors. Also bank isnt going to participate in TCPP program.
This quarterly cash dividend is $.06 per share payable to shareholders of record as of 2 January 2009, and payable on 16 January 2009.This cash dividend is the 99th paid, including regular and special dividends, in the Banks 34-year history and the Banks 81st consecutive quarterly dividend.
After careful and extensive consideration the board of directors decided to reduce the quarterly cash dividend. The Board recognizes the significant impact this will have on our shareholders. Unfortunately, the economic cycle we are experiencing creates tremendous challenges for all financial institutions, including City Bank, as evidenced by the significant increase in the nonperforming assets as reported for the third quarter ended 30 September 2008. Therefore, the Board believes this is prudent and ultimately in the best long-term interest of shareholders to preserve the Banks strong level of capital.
The conclusion not to participate in TCPP program was reached based on the costs of the program versus the relative benefits given the banks capital position. The board of directors considers it would not be in the best interests of the Bank or its shareholders to apply for aid from the U.S. Treasury.
L.D.