City Holding Company Announces Approval of Stock Repurchase Plan
December 21 2006 - 10:24AM
PR Newswire (US)
CHARLESTON, W. Va., Dec. 21 /PRNewswire-FirstCall/ -- City Holding
Company, "the Company" (NASDAQ:CHCO), a $2.5 billion bank holding
company headquartered in Charleston, today announced that the board
authorized the Company to buy back up to 1,000,000 of its common
shares (approximately 5.7% of outstanding shares) in open market
transactions, in block trades or otherwise at prices that are
accretive to the earnings per share of continuing shareholders.
Management may commence or suspend purchases at any time or from
time-to-time based on market and business conditions and without
prior notice. No time limit has been placed on the duration of the
share repurchase program. As part of its authorization, the Company
rescinded the previous share repurchase plan approved in June 2005.
As of December 19, 2006, the Company had purchased 853,853 shares
under the June 2005 plan. "As of November 30, 2006, the Company was
very well capitalized. Capital continues to grow due to our
exceptional earnings. As a result, we view this repurchase plan as
part of an ongoing strategy to build value for our stockholders
while maintaining appropriate capital levels," stated Charles R.
Hageboeck, President & CEO. "The Company currently has 17.5
million outstanding common shares. Repurchase of the Company's
stock is subject to availability of the stock and may be
discontinued at any time." The board also approved a cash dividend
of 28 cents per share on the Company's common shares payable on
January 31, 2007 to shareholders of record at January 15, 2007.
City Holding Company is the parent company of City National Bank of
West Virginia. City National operates 67 branches across West
Virginia, Eastern Kentucky and Southern Ohio. Forward-Looking
Information This news release contains certain forward-looking
statements that are included pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Such
information involves risks and uncertainties that could result in
the Company's actual results differing from those projected in the
forward-looking statements. Important factors that could cause
actual results to differ materially from those discussed in such
forward-looking statements include, but are not limited to, (1) the
Company may incur additional loan loss provision due to negative
credit quality trends in the future that may lead to a
deterioration of asset quality; (2) the Company may incur increased
charge-offs in the future; (3) the Company may experience increases
in the default rates on previously securitized loans that would
result in impairment losses or lower the yield on such loans; (4)
the Company may continue to benefit from strong recovery efforts on
previously securitized loans resulting in improved yields on these
assets; (5) the Company could have adverse legal actions of a
material nature; (6) the Company may face competitive loss of
customers; (7) the Company may be unable to manage its expense
levels; (8) the Company may have difficulty retaining key
employees; (9) changes in the interest rate environment may have
results on the Company's operations materially different from those
anticipated by the Company's market risk management functions; (10)
changes in general economic conditions and increased competition
could adversely affect the Company's operating results; (11)
changes in other regulations and government policies affecting bank
holding companies and their subsidiaries, including changes in
monetary policies, could negatively impact the Company's operating
results; and (12) the Company may experience difficulties growing
loan and deposit balances. Forward-looking statements made herein
reflect management's expectations as of the date such statements
are made. Such information is provided to assist stockholders and
potential investors in understanding current and anticipated
financial operations of the Company and is included pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. The Company undertakes no obligation to update any
forward-looking statement to reflect events or circumstances that
arise after the date such statements are made. For Further
Information Contact: Charles R. Hageboeck, President & CEO
(304) 769-1102 DATASOURCE: City Holding Company CONTACT: Charles R.
Hageboeck, President & CEO of City Holding Company,
+1-304-769-1102 Web site: http://www.cityholding.com/
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