City Bank Founder & CEO Conrad Hanson to Retire; the Bank Appoints Martin Heimbigner to Succeed Conrad Hanson as President & CEO
December 22 2009 - 6:46PM
Business Wire
Conrad Hanson, 67, Chairman, President and CEO of City Bank
(NASDAQ: CTBK) in Lynnwood, said today that he is stepping away
from day-to-day activities of the Bank and will retire as President
and CEO at the end of 2009. He will continue to serve as Chairman
of the Board of Directors until the Bank's annual shareholders’
meeting in May 2010.
The City Bank Board of Directors elected Lead Independent
Director Martin L. (Marty) Heimbigner, 51, to serve as President
and CEO. In addition, the Board elected James (Jim) Carroll, 58,
the Bank’s current Executive Vice President and a member of the
Board of Directors to serve as Chief Credit Officer.
Mr. Hanson has spent almost 46 years in banking, the last 35
years as the leader of City Bank, founded in 1974. “Marty has
worked closely with me on a full time basis over the past year as
we have dealt with the Bank’s challenges. Marty brings a unique
skill set that has been essential in helping the Bank work through
the recovery process,” Hanson said.
Hanson continued, “The Bank has been very successful in meeting
our 2009 goals to aggressively sell non-performing assets, increase
liquidity and repay maturing brokered deposits. Marty provided
oversight and guidance to the management team as we have executed
on these challenges. I am pleased to have Marty and Jim in these
new roles. As the Bank's largest shareholder, I am fully supportive
of their ability to profitably lead the Bank in the future. As a
part of that we are working on a capital raise and I have committed
to invest an additional $3 million into that effort.”
Mr. Heimbigner commented, “In 2009, the City Bank team has been
a leader in selling residential real estate in the Puget Sound
region. We will continue to sell homes in an aggressive and orderly
manner to further reduce the Bank’s non-performing assets. In 2010
our goals will include rebuilding the Bank’s foundation,
diversifying our lending from construction to small business
commercial loans and residential mortgage lending, and investing in
the Bank’s retail branch network.”
Mr. Hanson commented, “The Bank is continuing to sell $20
million to $30 million per month in residential housing. Through
December 18, 2009 the Bank has sold 1,145 homes and lots
representing over $334 million. We see this trend continuing in
2010 as we contract with a select group of home builders to build
houses on the Bank’s approximately 2,800 building lots. Due to the
distressed market prices for residential building lots, the Bank
has marked-to-market our portfolio of lots. Our strategy is to
build affordable houses on these lots. When the homes are sold, in
the $250,000 to $350,000 price range, they will generate much
higher rate of return for the Bank than selling the lots at current
market prices.”
Mr. Heimbigner said we will continue to work with the Bank’s
regulators on implementing City Bank’s recovery plan. “The Bank has
been successful in building liquidity during 2009 and the Bank will
have repaid over $450 million of brokered deposits, FHLB advances
and public deposits. The Bank’s efforts to improve liquidity and
repay maturing liabilities have successfully restructured the
Bank’s balance sheet,” Mr. Heimbigner commented.
About Martin L. Heimbigner
Mr. Heimbigner is a partner with Tatum LLC, the nation’s largest
executive services firm (www.tatumllc.com), providing financial and
operational expertise. He has been a City Bank Director since June
2003 and has served as member of the Audit Committee, the
Compensation Committee and the Nominating Committee. Since January
2009, Mr. Heimbigner has been Lead Independent Director with
responsibility for the Bank’s response to regulatory matters. As
Lead Independent Director he has been directly involved, on a full
time basis, with the Bank’s management and its regulators during
the past year. He has been a Certified Public Accountant with a
“Big 4” CPA firm and served as Chief Accounting Officer of Demand
Media, a leading Internet, domain name and social media company. He
was also Chief Financial Officer of Intelligent Results, Inc. of
Bellevue, an enterprise software company selling to the banking
industry. During a 13 year career with KPMG, Mr. Heimbigner worked
extensively with community banks in Washington State.
Heimbigner is a graduate of Washington State University with
degrees in Business and Accounting. He also has an Executive MBA
degree from the University of Washington.
About James Carroll
Carroll has been with City Bank for over 18 years and has over
37 years of banking experience. He has served as corporate
secretary, a member of the Board of Directors, manager of the
commercial and consumer loan portfolios, and as credit
administrator. Before joining City Bank, he worked for Rainier
Bank/Security Pacific Bank prior to its acquisition by Bank of
America.
Carroll graduated from the University of Washington with a
degree in Economics and is a graduate of the Pacific Coast Banking
School.
About City Bank
Forward-Looking Statements
This discussion contains selected comments about City Bank’s
operating results and financial condition. The discussion may
contain certain forward-looking statements, which are made pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such statements are subject to certain risks
and uncertainties that could cause actual results to differ
materially from those stated, including, but not limited to, the
Bank’s inability to generate increased earning assets, sustain
credit losses, maintain adequate net interest margin, control
fluctuations in operating results, maintain liquidity to fund
assets, retain key personnel, and other risks detailed from time to
time in the Bank’s filings with the Federal Deposit Insurance
Corporation, including our Annual Report on Form 10-K for the
period ended December 31, 2008. Readers are cautioned not to place
undue reliance on these forward-looking statements.
City Bank is a state-chartered commercial bank founded in 1974
and headquartered in Lynnwood, Washington. The Bank is publicly
traded (NASDAQ: CTBK) and many of the stockholders are local
individuals. Eight banking offices serve both Snohomish and North
King counties. Three mortgage loan offices serve Snohomish, King,
Pierce and Clark 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.
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