CHARLESTON, W.Va. Oct. 25 /PRNewswire-FirstCall/ -- City Holding
Company, "the Company" (Nasdaq: CHCO), a $2.6 billion bank holding company headquartered
in Charleston, today reported
financial results for the third quarter ended September 30, 2010. The Company's earnings
remained strong, with a $28.4 million
(1.6%) increase in the Company's loan portfolio and a $42.5 million (2.0 %) increase in its average
depository base from the quarter ended September 30, 2009. This growth, bolstered
by a continuation of solid credit quality trends, helped offset the
impact of lower service fee income and other-than-temporary losses
in the Company's investment portfolio.
The Company reported net income per diluted share for the third
quarter of $0.58 compared to
$0.66 per diluted share in the third
quarter of 2009. Net income for the third quarter of 2010 was
$9.0 million compared to $10.5 million in the third quarter of 2009.
For the third quarter of 2010, the Company achieved a return
on assets of 1.36%, a return on tangible equity of 13.9%, a net
interest margin of 3.94%, and an efficiency ratio of 54.2%.
For the first nine months of 2010, the Company achieved a
return on assets of 1.46%, a return on tangible equity of 15.0%, a
net interest margin of 4.10%, and an efficiency ratio of 53.7%.
Commenting on the Company's results, Charles Hageboeck, Chief Executive Officer said,
"Our financial performance, while down slightly from the
year-earlier quarter, remains at a strong level compared to our
peers and despite the ongoing challenges facing financial
institutions in the form of an uncertain economy, additional
regulations and ongoing pressures from the sustained low interest
rate environment. City's asset quality remains strong and
stable with past dues and non-performing assets down from
December 31, 2009. Net
charge-offs for the nine months ended September 30, 2010 are approximately 60% of net
charge-offs for the nine months ended September 30, 2009. During the fourth
quarter of 2010, two Greenbrier
properties held in Other Real Estate Owned sold at values that
approximated the Company's recorded values in such properties.
These sales reduced the Company's remaining Greenbrier related loan balances to
$8.1 million, with $7.1 million recorded in the Company's Other Real
Estate Owned category. Our net interest income, exclusive of
the impact of our interest rate floors, increased $0.7 million from the quarter ended September 30, 2009. We saw loans grow
during the quarter and we continued to carefully control our
expenses.
"During the quarter, we faced two significant headwinds –
additional regulations impacting our service fee revenues and
further credit-related net investment impairment losses. As
anticipated, our service fee revenues were impacted by changes
during the quarter in the Electronic Funds Transfer Act
("Regulation E"). The reaction from our customers to this
choice essentially met our expectations – the majority of customers
who utilize these services elected to 'opt in' and the majority of
those who have not used these services did not. As a result
of these changes, our service fee revenues declined $0.75 million (7.1%) from the quarter ended
June 30, 2010 and $2.0 million from the quarter ended September 30, 2009. In addition, the
Company experienced further credit-related net investment
impairment losses of $2.9 million
during the quarter, primarily in our portfolio of community bank
and bank holding company equity positions.
"Despite these headwinds, City's continued trend of solid
earnings has allowed the Company to maintain our quarterly dividend
of 34 cents per share during a time
period in which many banks have eliminated or significantly reduced
dividends to shareholders. Our healthy capital levels, strong
liquidity, and stable core-deposits enable City to consider the
opportunities of growing our company through acquisitions.
City continues to be one of the most profitable and best
capitalized publicly traded banks in the U.S. and we believe we can
maintain solid, industry-leading performance as we move forward,"
Hageboeck concluded.
Net Interest Income
The Company's tax equivalent net interest income decreased
$0.5 million, or 2.0%, from
$23.9 million during the third
quarter of 2009 to $23.4 million
during the third quarter of 2010. This decline is due
to a decrease in interest income associated with the gain from the
sale of interest rate floors. During the third and fourth
quarters of 2008, the Company sold $450
million of interest rate floors. The $16.7 million gain from sales of these interest
rate floors is being recognized over the remaining lives of the
various hedged loans – primarily prime-based commercial and home
equity loans. During the third quarter of 2010, the Company
recognized $0.9 million of interest
income compared to $2.2 million of
interest income recognized in the third quarter of 2009 from the
interest rate floors. This decline was partially offset by
the decrease in interest expense exceeding the decline in interest
income from the third quarter of 2009 resulting in an increase in
tax equivalent net interest income of approximately $0.8 million. The Company's reported net
interest margin decreased from 4.09% for the quarter ended
September 30, 2009 to 3.94% for the
quarter ended September 30, 2010.
Credit Quality
Past due loans decreased from $11.7
million at June 30, 2010 to
$7.9 million or 0.43% of total loans
outstanding at September 30, 2010 due
primarily to a $2.0 million
commercial real estate loan in the Eastern Panhandle of
West Virginia returning to current
status. Past due commercial, financial, and agriculture loans
were $0.3 million or 0.03% of loans
outstanding at September 30, 2010;
past due residential real estate loans were $3.8 million or 0.63% of loans outstanding at
September 30, 2010; and past due home
equity loans were $2.9 million or
0.70% of loans outstanding at September 30,
2010.
The Company had net charge-offs of $2.9
million for the third quarter of 2010. Net charge-offs on
commercial and residential loans were $2.0 and $0.6
million, respectively, for the third quarter.
Charge-offs for commercial loans were primarily related to a
specific impaired credit that had been appropriately considered in
establishing the allowance for loans losses in prior periods. In
addition, net charge-offs for depository accounts were $0.3 million for the third quarter of 2010.
While charge-offs on depository accounts are appropriately
taken against the Allowance for Loan Losses ("ALLL"), the revenue
associated with depository accounts is reflected in service
charges.
At September 30, 2010, the ALLL
was $18.4 million or 1.01% of total
loans outstanding and 160% of non-performing loans compared to
$19.6 million or 1.09% of loans
outstanding and 119% of non-performing loans at September 30, 2009, and $18.5 million or 1.03% of loans outstanding and
131% of non-performing loans at December 31,
2009.
As a result of the Company's quarterly analysis of the adequacy
of the ALLL, the Company recorded a provision for loan losses of
$1.85 million in the third quarter of
2010 compared to $1.7 million for the
comparable period in 2009. The ALLL recorded as of
September 30, 2010 reflects financial
difficulties of certain commercial borrowers of the Company that
occurred during the quarter, the downgrade of their related
credits, and management's assessment of the impact of these
difficulties on the ultimate collectability of the loans.
Changes in the amount of the ALLL and related provision for
loan losses are based on the Company's detailed systematic
methodology and are directionally consistent with changes in the
composition and quality of the Company's loan portfolio. The
Company believes its methodology for determining the adequacy of
its ALLL adequately provides for probable losses inherent in the
loan portfolio and produces a provision and allowance for loan
losses that is directionally consistent with changes in asset
quality and loss experience.
Impairment Losses
During the third quarter of 2010, the Company recorded
$2.9 million of credit-related net
investment impairment losses. The charges deemed to be other
than temporary were related to pooled bank trust preferreds
($0.7 million credit-related net
impairment losses) with a remaining book value of $6.5 million at September
30, 2010 and community bank and bank holding company equity
positions ($2.2 million
credit-related net impairment losses) with remaining book value of
$5.1 million at September 30, 2010. The credit-related net
impairment charges related to the pooled bank trust preferred
securities was based on the Company's quarterly reviews of its
investment securities for indications of losses considered to be
other than temporary. Based on management's assessment of the
securities the Company owns, the seniority position of the
securities within the pools, the level of defaults and deferred
payments within the pools, and a review of the financial strength
of the banks within the respective pools, management concluded that
credit-related net impairment charges of $0.7 million on the pooled bank trust preferred
securities was appropriate for the quarter ended September 30, 2010. The credit-related net
impairment charges of $2.2 million
related to the Company's equity position in First United
Corporation of Oakland, Maryland.
The Company determined that this security was
other-than-temporary impaired due to the recent announcement by
First United Corporation of another quarterly loss, which continued
a trend of poor performance over the past several quarters. As a
result, management determined that the length of time and extent to
which the market value of this security has been below the
Company's cost basis is not expected to recover in the near term.
These losses were partially offset by realized investment
gains of $1.3 million as the Company
sold certain single issuer trust preferred securities with a
remaining book value of $75.4 million
during the quarter ended September 30,
2010.
Non-interest Income
Exclusive of net other-than-temporary investment impairment
losses, non-interest income decreased $1.5
million to $13.2 million in the third quarter of 2010 from
$14.7 million in the third quarter of
2009. Service charges from depository accounts decreased
$2.0 million, or 17.0%, to
$9.7 million in the third quarter of
2010. This decline is primarily attributable to the Company's
compliance with new federal rules under the Electronic Funds
Transfer Act, also known as Regulation E. The changes to this
regulation affect how banks can offer certain overdraft services,
and were effective July 1, 2010 for
new customers and August 15, 2010 for
existing accounts. The decrease in service charges from
depository accounts was partially offset by an increase in bank
owned life insurance revenues of $0.3
million due to death benefit proceeds and an increase in
insurance commission revenues of $0.1
million, or 11.4%, from $1.2
million during the third quarter of 2009 to $1.3 million during the third quarter of
2010.
Non-interest Expenses
Non-interest expenses increased $1.0
million from $18.8 million in
the third quarter of 2009 to $19.8
million in the third quarter of 2010. Insurance and
regulatory expense increased $0.8
million, or 202.7%, from the quarter ended September 30, 2009 primarily due to the impact of
the Company fully utilizing its FDIC credits during 2009 and
increases in the assessment rates during 2010, which increased our
FDIC insurance expense from $0.1
million for the quarter ended September 30, 2009 to $1.0
million for the quarter ended September 30, 2010. In addition, salaries
and employee benefits increased $0.2
million, or 2.0%, from the quarter ended September 30, 2009 to $9.8
million.
Income Tax Expense
The Company's effective income tax rate for the third quarter of
2010 was 31.4% compared to 32.5% for the year ended December 31, 2009, and 32.4% for the quarter
ended September 30, 2009. The
effective rate is based upon the Company's expected tax rate for
the year ending December 31, 2010.
During the quarter ended September 30,
2010, the Company realized $0.1
million of previously unrecognized tax positions compared to
$0.2 million during the quarter ended
September 30, 2009.
Balance Sheet Trends
As compared to December 31, 2009,
loans have increased $33.4 million
(1.9%) at September 30, 2010 due to
increases in commercial loans of $13.3
million (1.7%), home equity loans of $12.7 million (3.2%), and residential real estate
loans of $9.7 million (1.6%).
As compared to September 30,
2009, loans have increased $28.5
million (1.6%) at September 30,
2010 as home equity loans increased $14.8 million (3.7%), residential real estate
loans increased $14.7 million (2.5%),
and commercial loans have increased $3.1
million (0.4%).
Total average depository balances decreased $16.6 million, or 0.8%, from the quarter ended
June 30, 2010 to the quarter ended
September 30, 2010. This
decline was primarily in time deposits and noninterest-bearing
deposits, which have decreased $9.0
million and $5.8 million,
respectively. As compared to the quarter ended September 30, 2009, total average depository
balances have increased $42.4
million, or 2.0%, for the quarter ended September 30, 2010. This increase was due
to increased noninterest bearing deposits ($30.8 million), interest bearing deposits
($30.6 million), and savings deposits
($11.9 million) that were partially
offset by a decrease in time deposits ($30.7
million).
Capitalization and Liquidity
One of the Company's strengths is that it is highly profitable
while maintaining strong liquidity and capital. With respect
to liquidity, the Company's loan to deposit ratio was 84.6% and the
loan to asset ratio was 69.5% at September
30, 2010. The Company maintained investment securities
totaling 17.2% of assets as of this date. Further, the
Company's deposit mix is weighted heavily toward checking and
saving accounts that fund 45.1% of assets at September 30, 2010. Time deposits fund
37.0% of assets at September 30,
2010, but very few of these deposits are in accounts that
have balances of more than $150,000,
reflecting the core retail orientation of the Company.
The Company is also strongly capitalized. The Company's tangible
equity ratio was 10.0% at September 30,
2010 and 9.8% at December 31,
2009. At September 30,
2010, City National Bank's leverage ratio is 9.12%, its Tier
I capital ratio is 12.17%, and its total Risk-Based capital ratio
is 13.13%. These regulatory capital ratios are significantly
above levels required to be considered "well capitalized," which is
the highest possible regulatory designation.
On September 29, 2010, the Board
approved a quarterly cash dividend to 34
cents per share payable October 31,
2010, to shareholders of record as of October 15, 2010. During the quarter ended
September 30, 2010, the Company
repurchased 111,136 common shares at a weighted average price of
$28.72 as part of a one million share
repurchase plan authorized by the Board of Directors in
October 2009.
City Holding Company is the parent company of City National Bank
of West Virginia. City
National operates 68 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 not 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; (12) the Company may experience
difficulties growing loan and deposit balances; (13) the current
economic environment poses significant challenges for us and could
adversely affect our financial condition and results of
operations; (14) continued deterioration in the financial condition
of the U.S. banking system may impact the valuations of investments
the Company has made in the securities of other financial
institutions resulting in either actual losses or other than
temporary impairments on such investments; and (15)
the effects of the Wall Street Reform and Consumer
Protection Act (the "Dodd-Frank Act") recently adopted by the
United States Congress. 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.
CITY HOLDING COMPANY AND
SUBSIDIARIES
|
|
Financial
Highlights
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended September 30,
|
Percent
|
|
|
2010
|
2009
|
Change
|
|
|
|
|
|
|
Earnings ($000s, except per
share data):
|
|
|
|
|
Net Interest Income
(FTE)
|
$ 23,404
|
$ 23,891
|
(2.04)%
|
|
Net Income available to
common shareholders
|
9,023
|
10,497
|
(14.04)%
|
|
Earnings per Basic
Share
|
0.58
|
0.66
|
(12.34)%
|
|
Earnings per Diluted
Share
|
0.58
|
0.66
|
(12.34)%
|
|
|
|
|
|
|
|
|
|
|
|
Key Ratios (percent):
|
|
|
|
|
Return on Average
Assets
|
1.36%
|
1.60%
|
(15.18)%
|
|
Return on Average Tangible
Equity
|
13.90%
|
17.49%
|
(20.49)%
|
|
Net Interest
Margin
|
3.94%
|
4.09%
|
(3.57)%
|
|
Efficiency
Ratio
|
54.15%
|
48.75%
|
11.08%
|
|
Average Shareholders'
Equity to Average Assets
|
11.90%
|
11.33%
|
5.00%
|
|
|
|
|
|
|
Consolidated Risk Based Capital
Ratios (a):
|
|
|
|
|
Tier I
|
13.73%
|
13.04%
|
5.29%
|
|
Total
|
14.68%
|
14.06%
|
4.41%
|
|
|
|
|
|
|
Tangible Equity to Tangible
Assets
|
10.04%
|
9.77%
|
2.82%
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock Data:
|
|
|
|
|
Cash Dividends Declared
per Share
|
$ 0.34
|
$ 0.34
|
-
|
|
Book Value per
Share
|
20.31
|
19.18
|
5.92%
|
|
Tangible Book Value per
Share
|
16.66
|
15.59
|
6.86%
|
|
Market Value per
Share:
|
|
|
|
|
High
|
31.15
|
34.34
|
(9.29)%
|
|
Low
|
26.87
|
28.65
|
(6.21)%
|
|
End of Period
|
30.67
|
31.17
|
(1.60)%
|
|
|
|
|
|
|
Price/Earnings Ratio
(b)
|
13.25
|
11.80
|
12.25%
|
|
|
Nine Months
Ended September 30,
|
Percent
|
|
|
2010
|
2009
|
Change
|
|
|
|
|
|
|
Earnings ($000s, except per
share data):
|
|
|
|
|
Net Interest Income
(FTE)
|
$ 72,075
|
$ 72,520
|
(0.61)%
|
|
Net Income available to
common shareholders
|
29,051
|
31,567
|
(7.97)%
|
|
Earnings per Basic
Share
|
1.85
|
1.99
|
(7.03)%
|
|
Earnings per Diluted
Share
|
1.84
|
1.98
|
(7.09)%
|
|
|
|
|
|
|
|
|
|
|
|
Key Ratios (percent):
|
|
|
|
|
Return on Average
Assets
|
1.46%
|
1.62%
|
(9.76)%
|
|
Return on Average Tangible
Equity
|
15.04%
|
18.05%
|
(16.71)%
|
|
Net Interest
Margin
|
4.10%
|
4.22%
|
(2.78)%
|
|
Efficiency
Ratio
|
53.66%
|
49.79%
|
7.76%
|
|
Average Shareholders'
Equity to Average Assets
|
11.84%
|
11.15%
|
6.17%
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock Data:
|
|
|
|
|
Cash Dividends Declared
per Share
|
$ 1.02
|
$ 1.02
|
-
|
|
Market Value per
Share:
|
|
|
|
|
High
|
37.28
|
34.34
|
8.56%
|
|
Low
|
26.87
|
20.88
|
28.69%
|
|
|
|
|
|
|
Price/Earnings Ratio
(b)
|
12.46
|
11.78
|
5.84%
|
|
|
|
|
|
|
|
|
|
|
|
(a) September 30, 2010
risk-based capital ratios are estimated
|
|
(b) September 30, 2010
price/earnings ratio computed based on annualized third quarter
2010 earnings
|
|
|
|
|
|
CITY HOLDING COMPANY AND
SUBSIDIARIES
|
|
Financial
Highlights
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Value and Market Price
Range per Share
|
|
|
|
|
|
|
|
|
|
Market
Price
|
|
|
Book Value
per Share
|
Range per
Share
|
|
|
March
31
|
June
30
|
September
30
|
December
31
|
Low
|
High
|
|
|
|
|
|
|
|
|
|
2006
|
$ 16.17
|
$ 16.17
|
$
16.99
|
$
17.46
|
$
34.53
|
$ 41.87
|
|
2007
|
17.62
|
17.40
|
17.68
|
18.14
|
31.16
|
41.54
|
|
2008
|
18.92
|
18.72
|
17.61
|
17.58
|
29.08
|
42.88
|
|
2009
|
17.69
|
18.24
|
18.95
|
19.37
|
20.88
|
34.34
|
|
2010
|
19.71
|
19.95
|
20.31
|
|
26.87
|
37.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Basic
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
March
31
|
June
30
|
September
30
|
December
31
|
Year-to-Date
|
|
|
|
|
|
|
|
|
|
|
2006
|
$
0.71
|
$ 0.78
|
$
0.78
|
$
0.74
|
$
3.00
|
|
|
2007
|
0.76
|
0.72
|
0.76
|
0.78
|
3.02
|
|
|
2008
|
0.81
|
0.83
|
(0.16)
|
0.26
|
1.74
|
|
|
2009
|
0.69
|
0.64
|
0.66
|
0.70
|
2.69
|
|
|
2010
|
0.59
|
0.68
|
0.58
|
|
1.85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Diluted
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
March
31
|
June
30
|
September
30
|
December
31
|
Year-to-Date
|
|
|
|
|
|
|
|
|
|
|
2006
|
$
0.71
|
$ 0.77
|
$
0.77
|
$
0.74
|
$
2.99
|
|
|
2007
|
0.76
|
0.72
|
0.76
|
0.78
|
3.01
|
|
|
2008
|
0.80
|
0.83
|
(0.16)
|
0.26
|
1.74
|
|
|
2009
|
0.69
|
0.64
|
0.66
|
0.70
|
2.68
|
|
|
2010
|
0.58
|
0.68
|
0.58
|
|
1.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND
SUBSIDIARIES
|
|
Consolidated Statements of
Income
|
|
(Unaudited) ($ in 000s, except
per share data)
|
|
|
|
|
|
|
|
Three Months
Ended September 30,
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
Interest Income
|
|
|
|
|
Interest and fees on
loans
|
$ 24,487
|
|
$ 26,392
|
|
Interest on investment
securities:
|
|
|
|
|
Taxable
|
5,019
|
|
5,820
|
|
Tax-exempt
|
452
|
|
437
|
|
Interest on deposits in
depository institutions
|
-
|
|
2
|
|
Interest on federal funds
sold
|
12
|
|
-
|
|
Total
Interest Income
|
29,970
|
|
32,651
|
|
|
|
|
|
|
Interest Expense
|
|
|
|
|
Interest on
deposits
|
6,551
|
|
8,673
|
|
Interest on short-term
borrowings
|
86
|
|
131
|
|
Interest on long-term
debt
|
173
|
|
191
|
|
Total
Interest Expense
|
6,810
|
|
8,995
|
|
Net Interest
Income
|
23,160
|
|
23,656
|
|
Provision for loan
losses
|
1,847
|
|
1,681
|
|
Net Interest
Income After Provision for Loan Losses
|
21,313
|
|
21,975
|
|
|
|
|
|
|
Non-Interest
Income
|
|
|
|
|
Total investment
securities impairment losses
|
(3,028)
|
|
(2,306)
|
|
Noncredit impairment
losses recognized in other comprehensive income
|
127
|
|
-
|
|
Net investment securities
impairment losses
|
(2,901)
|
|
(2,306)
|
|
Gain (loss) on sale of
investment securities
|
1,335
|
|
(14)
|
|
Service charges
|
9,702
|
|
11,689
|
|
Insurance
commissions
|
1,346
|
|
1,208
|
|
Trust and investment
management fee income
|
618
|
|
590
|
|
Bank owned life
insurance
|
1,104
|
|
794
|
|
Other income
|
439
|
|
379
|
|
Total
Non-Interest Income
|
11,643
|
|
12,340
|
|
|
|
|
|
|
Non-Interest
Expense
|
|
|
|
|
Salaries and employee
benefits
|
9,817
|
|
9,623
|
|
Occupancy and
equipment
|
1,917
|
|
1,953
|
|
Depreciation
|
1,145
|
|
1,171
|
|
Professional
fees
|
414
|
|
216
|
|
Postage, delivery, and
statement mailings
|
599
|
|
611
|
|
Advertising
|
891
|
|
883
|
|
Telecommunications
|
413
|
|
476
|
|
Bankcard
expenses
|
481
|
|
695
|
|
Insurance and
regulatory
|
1,244
|
|
411
|
|
Office supplies
|
497
|
|
520
|
|
Repossessed asset losses,
net of expenses
|
234
|
|
136
|
|
Other expenses
|
2,152
|
|
2,101
|
|
Total
Non-Interest Expense
|
19,804
|
|
18,796
|
|
Income
Before Income Taxes
|
13,152
|
|
15,519
|
|
Income tax expense
|
4,129
|
|
5,022
|
|
Net Income
Available to Common Shareholders
|
$ 9,023
|
|
$ 10,497
|
|
|
|
|
|
|
|
|
|
|
|
Distributed earnings allocated
to common shareholders
|
$ 5,237
|
|
$ 5,380
|
|
|
|
|
|
|
Undistributed earnings allocated
to common shareholders
|
3,733
|
|
5,116
|
|
|
|
|
|
|
Net earnings allocated to common
shareholders
|
$ 8,970
|
|
$ 10,496
|
|
|
|
|
|
|
Average common shares
outstanding
|
15,496
|
|
15,893
|
|
|
|
|
|
|
Effect of dilutive
securities:
|
|
|
|
|
Employee stock
options
|
56
|
|
59
|
|
|
|
|
|
|
Shares for diluted earnings per
share
|
15,552
|
|
15,952
|
|
|
|
|
|
|
Basic earnings per common
share
|
$
0.58
|
|
$
0.66
|
|
Diluted earnings per common
share
|
$
0.58
|
|
$
0.66
|
|
|
|
|
|
CITY HOLDING COMPANY AND
SUBSIDIARIES
|
|
Consolidated Statements of
Income
|
|
(Unaudited) ($ in 000s, except
per share data)
|
|
|
|
|
|
|
|
Nine months
ended September 30,
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
Interest Income
|
|
|
|
|
Interest and fees on
loans
|
$
75,332
|
|
$
81,396
|
|
Interest on investment
securities:
|
|
|
|
|
Taxable
|
15,947
|
|
17,494
|
|
Tax-exempt
|
1,383
|
|
1,249
|
|
Interest on deposits in
depository institutions
|
-
|
|
10
|
|
Interest on federal funds
sold
|
13
|
|
-
|
|
Total
Interest Income
|
92,675
|
|
100,149
|
|
|
|
|
|
|
Interest Expense
|
|
|
|
|
Interest on
deposits
|
20,566
|
|
27,230
|
|
Interest on short-term
borrowings
|
284
|
|
395
|
|
Interest on long-term
debt
|
496
|
|
676
|
|
Total
Interest Expense
|
21,346
|
|
28,301
|
|
Net Interest
Income
|
71,329
|
|
71,848
|
|
Provision for loan
losses
|
4,750
|
|
5,519
|
|
Net Interest
Income After Provision for Loan Losses
|
66,579
|
|
66,329
|
|
|
|
|
|
|
Non-Interest
Income
|
|
|
|
|
Total investment
securities impairment losses
|
(7,468)
|
|
(4,463)
|
|
Noncredit impairment
losses recognized in other comprehensive income
|
2,623
|
|
-
|
|
Net investment securities
impairment losses
|
(4,845)
|
|
(4,463)
|
|
Gain (loss) on sale of
investment securities
|
1,397
|
|
(264)
|
|
Service charges
|
30,378
|
|
33,385
|
|
Insurance
commissions
|
3,987
|
|
4,466
|
|
Trust and investment
management fee income
|
2,047
|
|
1,794
|
|
Bank owned life
insurance
|
2,645
|
|
2,518
|
|
Other income
|
1,424
|
|
1,624
|
|
Total
Non-Interest Income
|
37,033
|
|
39,060
|
|
|
|
|
|
|
Non-Interest
Expense
|
|
|
|
|
Salaries and employee
benefits
|
29,311
|
|
29,003
|
|
Occupancy and
equipment
|
5,836
|
|
5,742
|
|
Depreciation
|
3,537
|
|
3,566
|
|
Professional
fees
|
1,175
|
|
1,066
|
|
Postage, delivery, and
statement mailings
|
1,823
|
|
2,027
|
|
Advertising
|
3,045
|
|
2,673
|
|
Telecommunications
|
1,304
|
|
1,410
|
|
Bankcard
expenses
|
1,405
|
|
2,029
|
|
Insurance and
regulatory
|
3,631
|
|
2,365
|
|
Office supplies
|
1,474
|
|
1,521
|
|
Repossessed asset losses,
net of expenses
|
1,258
|
|
351
|
|
Other expenses
|
6,521
|
|
6,175
|
|
Total
Non-Interest Expense
|
60,320
|
|
57,928
|
|
Income
Before Income Taxes
|
43,292
|
|
47,461
|
|
Income tax expense
|
14,241
|
|
15,894
|
|
Net Income
Available to Common Shareholders
|
$
29,051
|
|
$
31,567
|
|
|
|
|
|
|
|
|
|
|
|
Distributed earnings allocated
to common shareholders
|
$ 15,711
|
|
$ 16,139
|
|
|
|
|
|
|
Undistributed earnings allocated
to common shareholders
|
13,164
|
|
15,403
|
|
|
|
|
|
|
Net earnings allocated to common
shareholders
|
$
28,875
|
|
$
31,542
|
|
|
|
|
|
|
Average common shares
outstanding
|
15,646
|
|
15,889
|
|
|
|
|
|
|
Effect of dilutive
securities:
|
|
|
|
|
Employee stock
options
|
64
|
|
55
|
|
|
|
|
|
|
Shares for diluted earnings per
share
|
15,710
|
|
15,944
|
|
|
|
|
|
|
Basic earnings per common
share
|
$
1.85
|
|
$
1.99
|
|
Diluted earnings per common
share
|
$
1.84
|
|
$
1.98
|
|
|
|
|
|
CITY HOLDING COMPANY AND
SUBSIDIARIES
|
|
Consolidated Statements of
Changes in Stockholders' Equity
|
|
(Unaudited) ($ in
000s)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
September
30, 2010
|
September
30, 2009
|
|
|
|
|
|
Balance at July
31
|
$
312,575
|
$
295,751
|
|
|
|
|
|
Net income
|
9,023
|
10,497
|
|
Other comprehensive
income:
|
|
|
|
Change in unrealized gain
on securities available-for-sale
|
2,087
|
7,421
|
|
Change in unrealized
(loss) on interest rate floors
|
(539)
|
(1,413)
|
|
Cash dividends declared
($0.34/share)
|
(5,267)
|
(5,415)
|
|
Issuance of stock award
shares, net
|
154
|
80
|
|
Exercise of 750 stock
options
|
-
|
22
|
|
Purchase of 111,136 common
shares of treasury
|
(3,192)
|
-
|
|
Purchase of 56,323 common
shares of treasury
|
-
|
(1,803)
|
|
Balance at September
30
|
$
314,841
|
$
305,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September
30, 2010
|
September
30, 2009
|
|
|
|
|
|
Balance at January
1
|
$
308,902
|
$
284,296
|
|
|
|
|
|
Net income
|
29,051
|
31,567
|
|
Other comprehensive
income:
|
|
|
|
Change in unrealized gain
on securities available-for-sale
|
7,329
|
11,909
|
|
Change in unrealized
(loss) on interest rate floors
|
(2,277)
|
(4,982)
|
|
Cash dividends declared
($1.02/share)
|
(15,952)
|
(16,251)
|
|
Issuance of stock award
shares, net
|
644
|
1,621
|
|
Exercise of 1,700 stock
options
|
46
|
-
|
|
Exercise of 1,050 stock
options
|
-
|
25
|
|
Purchase of 408,151 common
shares of treasury
|
(12,902)
|
-
|
|
Purchase of 105,686 common
shares of treasury
|
-
|
(3,045)
|
|
Balance at September
30
|
$
314,841
|
$
305,140
|
|
|
|
|
CITY HOLDING COMPANY AND
SUBSIDIARIES
|
|
Condensed Consolidated Quarterly
Statements of Income
|
|
(Unaudited) ($ in 000s, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
September
30
|
June
30
|
March
31
|
December
31
|
September
30
|
|
|
|
2010
|
2010
|
2010
|
2009
|
2009
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
29,970
|
$ 31,770
|
$ 30,935
|
$
31,887
|
$
32,651
|
|
Taxable equivalent
adjustment
|
|
244
|
246
|
255
|
234
|
236
|
|
Interest income (FTE)
|
|
30,214
|
32,016
|
31,190
|
32,121
|
32,887
|
|
Interest expense
|
|
6,810
|
7,092
|
7,444
|
8,302
|
8,995
|
|
Net interest income
|
|
23,404
|
24,924
|
23,746
|
23,819
|
23,892
|
|
Provision for loan
losses
|
|
1,847
|
1,823
|
1,080
|
1,475
|
1,681
|
|
Net interest income after
provision
|
|
|
|
|
|
|
|
for loan losses
|
|
21,557
|
23,101
|
22,666
|
22,344
|
22,211
|
|
|
|
|
|
|
|
|
|
Noninterest income
|
|
11,643
|
13,278
|
12,112
|
12,923
|
12,340
|
|
Noninterest expense
|
|
19,804
|
19,965
|
20,551
|
19,316
|
18,796
|
|
Income before income
taxes
|
|
13,396
|
16,414
|
14,227
|
15,951
|
15,755
|
|
Income tax expense
|
|
4,129
|
5,453
|
4,659
|
4,639
|
5,022
|
|
Taxable equivalent
adjustment
|
|
244
|
246
|
255
|
234
|
236
|
|
Net income available to common
shareholders
|
|
$
9,023
|
$ 10,715
|
$ 9,313
|
$
11,078
|
$
10,497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributed earnings allocated
to common shareholders
|
|
$
5,237
|
$ 5,274
|
$ 5,345
|
$
5,370
|
$
5,380
|
|
Undistributed earnings allocated
to common shareholders
|
|
3,733
|
5,373
|
3,918
|
5,697
|
5,116
|
|
Net earnings allocated to common
shareholders
|
|
$
8,970
|
$ 10,648
|
$ 9,263
|
$
11,067
|
$
10,496
|
|
|
|
|
|
|
|
|
|
Average common shares
outstanding
|
|
15,496
|
15,656
|
15,793
|
15,838
|
15,893
|
|
|
|
|
|
|
|
|
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
Employee stock
options
|
|
56
|
65
|
58
|
53
|
59
|
|
|
|
|
|
|
|
|
|
Shares for diluted earnings per
share
|
|
15,552
|
15,721
|
15,851
|
15,891
|
15,952
|
|
|
|
|
|
|
|
|
|
Basic earnings per common
share
|
|
$
0.58
|
$ 0.68
|
$
0.59
|
$
0.70
|
$
0.66
|
|
Diluted earnings per common
share
|
|
0.58
|
0.68
|
0.58
|
0.70
|
0.66
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per
share
|
|
0.34
|
0.34
|
0.34
|
0.34
|
0.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Common Share
(000s):
|
|
|
|
|
|
|
|
Outstanding
|
|
15,496
|
15,656
|
15,793
|
15,838
|
15,893
|
|
Diluted
|
|
15,552
|
15,721
|
15,851
|
15,897
|
15,952
|
|
|
|
|
|
|
|
|
|
Net Interest Margin
|
|
3.94%
|
4.22%
|
4.14%
|
4.07%
|
4.09%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND
SUBSIDIARIES
|
|
Non-Interest Income and
Non-Interest Expense
|
|
(Unaudited) ($ in
000s)
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
September
30
|
June
30
|
March
31
|
December
31
|
September
30
|
|
|
2010
|
2010
|
2010
|
2009
|
2009
|
|
|
|
|
|
|
|
|
Non-Interest
Income:
|
|
|
|
|
|
|
Service charges
|
$
9,702
|
$ 10,448
|
$ 10,228
|
$
11,628
|
$
11,689
|
|
Insurance
commissions
|
1,346
|
1,244
|
1,397
|
1,110
|
1,208
|
|
Trust and investment
management fee income
|
618
|
567
|
862
|
549
|
590
|
|
Bank owned life
insurance
|
1,104
|
813
|
728
|
753
|
794
|
|
Other income
|
439
|
437
|
548
|
320
|
379
|
|
Subtotal
|
13,209
|
13,509
|
13,763
|
14,360
|
14,660
|
|
Total investment
securities impairment losses
|
(3,028)
|
(1,237)
|
(3,203)
|
(861)
|
(2,306)
|
|
Noncredit impairment
losses recognized in other
|
|
|
|
|
|
|
comprehensive
income
|
127
|
944
|
1,552
|
-
|
-
|
|
Net investment securities
impairment losses
|
(2,901)
|
(293)
|
(1,651)
|
(861)
|
(2,306)
|
|
Gain (loss) on sale of
investment securities
|
1,335
|
62
|
-
|
(576)
|
(14)
|
|
Total Non-Interest
Income
|
$
11,643
|
$ 13,278
|
$ 12,112
|
$
12,923
|
$
12,340
|
|
|
|
|
|
|
|
|
Non-Interest
Expense:
|
|
|
|
|
|
|
Salaries and employee
benefits
|
$
9,817
|
$ 9,745
|
$ 9,749
|
$
8,523
|
$
9,623
|
|
Occupancy and
equipment
|
1,917
|
1,874
|
2,045
|
1,947
|
1,953
|
|
Depreciation
|
1,145
|
1,174
|
1,218
|
1,180
|
1,171
|
|
Professional
fees
|
414
|
398
|
363
|
439
|
216
|
|
Postage, delivery, and
statement mailings
|
599
|
615
|
609
|
573
|
611
|
|
Advertising
|
891
|
1,241
|
913
|
830
|
883
|
|
Telecommunications
|
413
|
440
|
451
|
455
|
476
|
|
Bankcard
expenses
|
481
|
448
|
476
|
570
|
695
|
|
Insurance and
regulatory
|
1,244
|
1,200
|
1,187
|
1,014
|
411
|
|
Office supplies
|
497
|
484
|
493
|
484
|
520
|
|
Repossessed asset losses,
net of expenses
|
234
|
78
|
946
|
321
|
136
|
|
Other expenses
|
2,152
|
2,268
|
2,101
|
2,880
|
2,107
|
|
Total Non-Interest
Expense
|
$
19,804
|
$ 19,965
|
$ 20,551
|
$
19,216
|
$
18,802
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees (Full Time
Equivalent)
|
801
|
812
|
815
|
809
|
814
|
|
Branch Locations
|
68
|
67
|
67
|
67
|
68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND
SUBSIDIARIES
|
|
Consolidated Balance
Sheets
|
|
($ in 000s)
|
|
|
September
30
|
December
31
|
|
|
2010
|
2009
|
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
Cash and due from
banks
|
$
44,746
|
$
59,116
|
|
Interest-bearing deposits in
depository institutions
|
3,924
|
3,519
|
|
Federal funds sold
|
34,100
|
-
|
|
Cash and
cash equivalents
|
82,770
|
62,635
|
|
|
|
|
|
Investment securities
available-for-sale, at fair value
|
427,190
|
485,767
|
|
Investment securities
held-to-maturity, at amortized cost
|
24,381
|
28,164
|
|
Total
investment securities
|
451,571
|
513,931
|
|
|
|
|
|
Gross loans
|
1,825,838
|
1,792,434
|
|
Allowance for loan
losses
|
(18,364)
|
(18,541)
|
|
Net
loans
|
1,807,474
|
1,773,893
|
|
|
|
|
|
Bank owned life
insurance
|
75,479
|
73,388
|
|
Premises and
equipment
|
64,991
|
64,193
|
|
Accrued interest
receivable
|
8,298
|
7,969
|
|
Net deferred tax
assets
|
25,774
|
29,480
|
|
Intangible assets
|
56,682
|
57,010
|
|
Other assets
|
54,094
|
40,121
|
|
Total
Assets
|
$
2,627,133
|
$
2,622,620
|
|
|
|
|
|
Liabilities
|
|
|
|
Deposits:
|
|
|
|
Noninterest-bearing
|
$
317,221
|
$
328,440
|
|
Interest-bearing:
|
|
|
|
Demand deposits
|
478,947
|
457,293
|
|
Savings
deposits
|
389,497
|
379,893
|
|
Time deposits
|
973,085
|
998,096
|
|
Total
deposits
|
2,158,750
|
2,163,722
|
|
Short-term borrowings
|
110,634
|
118,329
|
|
Long-term debt
|
16,892
|
16,959
|
|
Other liabilities
|
26,016
|
14,708
|
|
Total
Liabilities
|
2,312,292
|
2,313,718
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
Preferred stock, par value $25
per share: 500,000 shares authorized; none issued
|
-
|
-
|
|
Common stock, par value $2.50
per share: 50,000,000 shares authorized;
|
|
|
|
18,499,282 shares
issued at September 30, 2010 and December 31, 2009
|
|
|
|
less 3,001,063 and
2,616,161 shares in treasury, respectively
|
46,249
|
46,249
|
|
Capital surplus
|
102,867
|
102,917
|
|
Retained earnings
|
266,266
|
253,167
|
|
Cost of common stock in
treasury
|
(103,039)
|
(90,877)
|
|
Accumulated other comprehensive
income (loss):
|
|
|
|
Unrealized gain/(loss) on
securities available-for-sale
|
5,449
|
(1,880)
|
|
Unrealized gain on
derivative instruments
|
786
|
3,063
|
|
Underfunded pension
liability
|
(3,737)
|
(3,737)
|
|
Total
Accumulated Other Comprehensive Income (Loss)
|
2,498
|
(2,554)
|
|
Total
Stockholders' Equity
|
314,841
|
308,902
|
|
Total
Liabilities and Stockholders' Equity
|
$
2,627,133
|
$
2,622,620
|
|
|
|
|
CITY HOLDING COMPANY AND
SUBSIDIARIES
|
|
Investment
Portfolio
|
|
(Unaudited) ($ in
000s)
|
|
|
|
|
|
|
|
|
|
|
|
Original
Cost
|
|
Credit-Related
Net Investment
Impairment
Losses through
September 30,
2010
|
|
Unrealized
Gains
(Losses)
|
|
Carrying
Value
|
|
|
|
|
|
|
|
|
|
|
Mortgage Backed
Securities
|
269,847
|
|
-
|
|
11,574
|
|
281,421
|
|
Municipal Bonds
|
52,509
|
|
-
|
|
1,065
|
|
53,574
|
|
Pooled Bank Trust
Preferreds
|
27,088
|
|
(19,177)
|
|
(1,435)
|
|
6,476
|
|
Single Issuer Bank Trust
Preferreds,
|
|
|
|
|
|
|
|
|
Subdebt of Financial
Institutions, and
|
|
|
|
|
|
|
|
|
Bank Holding Company
Preferred Stocks
|
93,223
|
|
(1,653)
|
|
(1,080)
|
|
90,490
|
|
Money Markets and Mutual
Funds
|
1,630
|
|
-
|
|
28
|
|
1,657
|
|
Federal Reserve Bank and FHLB
stock
|
12,899
|
|
-
|
|
-
|
|
12,899
|
|
Community Bank Equity
Positions
|
10,332
|
|
(3,973)
|
|
(1,305)
|
|
5,054
|
|
Total
Investments
|
$
467,528
|
|
$
(24,803)
|
|
$
8,846
|
|
$
451,571
|
|
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND
SUBSIDIARIES
|
|
Loan Portfolio
|
|
(Unaudited) ($ in
000s)
|
|
|
|
|
|
|
|
|
|
September
30
|
June
30
|
March
31
|
December
31
|
September
30
|
|
|
2010
|
2010
|
2010
|
2009
|
2009
|
|
|
|
|
|
|
|
|
Residential real
estate
|
$
605,351
|
$
605,026
|
$
597,429
|
$
595,678
|
$
590,653
|
|
Home equity
|
411,481
|
404,789
|
398,443
|
398,752
|
396,648
|
|
Commercial, financial, and
agriculture
|
765,331
|
778,114
|
761,223
|
752,052
|
762,194
|
|
Installment loans to
individuals
|
42,407
|
43,859
|
43,597
|
44,239
|
45,309
|
|
Previously securitized
loans
|
1,268
|
1,784
|
1,148
|
1,713
|
2,580
|
|
Gross
Loans
|
$
1,825,838
|
$
1,833,572
|
$ 1,801,840
|
$
1,792,434
|
$
1,797,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND
SUBSIDIARIES
|
|
Previously Securitized
Loans
|
|
(Unaudited) ($ in
millions)
|
|
|
|
|
Annualized
|
Effective
|
|
|
|
|
December
31
|
Interest
|
Annualized
|
|
|
|
Year
Ended:
|
Balance
(a)
|
Income
(a)
|
Yield
(a)
|
|
|
|
|
|
|
|
|
|
|
2009
|
$
1.7
|
$
5.6
|
108%
|
|
|
|
2010
|
1.2
|
3.9
|
265%
|
|
|
|
2011
|
1.0
|
2.0
|
184%
|
|
|
|
2012
|
0.8
|
1.7
|
184%
|
|
|
|
2013
|
0.6
|
1.3
|
184%
|
|
|
|
|
|
|
|
|
|
a - 2009 amounts are based on
actual results. 2010 amounts are based on actual results
through September 30, 2010 and estimated amounts for the remainder
of the year. 2011, 2012, and 2013 amounts are based on
estimated amounts.
|
|
|
|
Note: The amounts
reflected in the table above require management to make significant
assumptions based on estimated future default, prepayment, and
discount rates. Actual performance could be significantly
different from that assumed, which could result in the actual
results being materially different from the amounts estimated
above.
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND
SUBSIDIARIES
|
|
Consolidated Average Balance
Sheets, Yields, and Rates
|
|
(Unaudited) ($ in
000s)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended September 30,
|
|
|
|
2010
|
|
|
2009
|
|
|
|
Average
|
|
Yield/
|
Average
|
|
Yield/
|
|
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
Loan portfolio:
|
|
|
|
|
|
|
|
Residential real
estate
|
$
602,382
|
$ 7,815
|
5.15%
|
$
590,108
|
$ 8,170
|
5.49%
|
|
Home equity
|
408,685
|
5,333
|
5.18%
|
394,069
|
5,972
|
6.01%
|
|
Commercial, financial, and
agriculture
|
768,393
|
9,656
|
4.99%
|
765,689
|
10,334
|
5.35%
|
|
Installment loans to
individuals
|
48,172
|
902
|
7.43%
|
50,935
|
975
|
7.59%
|
|
Previously securitized
loans
|
1,487
|
781
|
208.37%
|
2,810
|
942
|
133.00%
|
|
Total loans
|
1,829,119
|
24,487
|
5.31%
|
1,803,611
|
26,393
|
5.81%
|
|
Securities:
|
|
|
|
|
|
|
|
Taxable
|
447,445
|
5,019
|
4.45%
|
463,703
|
5,820
|
4.98%
|
|
Tax-exempt
|
48,352
|
696
|
5.71%
|
43,682
|
672
|
6.10%
|
|
Total
securities
|
495,797
|
5,715
|
4.57%
|
507,385
|
6,492
|
5.08%
|
|
Deposits in depository
institutions
|
4,977
|
-
|
-
|
5,753
|
2
|
0.14%
|
|
Federal funds sold
|
24,062
|
12
|
-
|
489
|
-
|
-
|
|
Total
interest-earning assets
|
2,353,955
|
30,214
|
5.09%
|
2,317,238
|
32,887
|
5.63%
|
|
Cash and due from
banks
|
51,056
|
|
|
50,496
|
|
|
|
Bank premises and
equipment
|
65,044
|
|
|
63,709
|
|
|
|
Other assets
|
208,311
|
|
|
212,925
|
|
|
|
Less: Allowance for
loan losses
|
(19,751)
|
|
|
(20,828)
|
|
|
|
Total
assets
|
$ 2,658,615
|
|
|
$ 2,623,540
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
462,200
|
308
|
0.26%
|
431,676
|
418
|
0.38%
|
|
Savings deposits
|
391,655
|
252
|
0.26%
|
379,793
|
417
|
0.44%
|
|
Time deposits
|
982,877
|
5,992
|
2.42%
|
1,013,610
|
7,838
|
3.07%
|
|
Short-term borrowings
|
112,128
|
85
|
0.30%
|
134,323
|
131
|
0.39%
|
|
Long-term debt
|
16,900
|
173
|
4.06%
|
17,988
|
192
|
4.23%
|
|
Total interest-bearing
liabilities
|
1,965,760
|
6,810
|
1.37%
|
1,977,390
|
8,996
|
1.80%
|
|
Noninterest-bearing demand
deposits
|
356,590
|
|
|
325,821
|
|
|
|
Other liabilities
|
19,973
|
|
|
23,065
|
|
|
|
Stockholders' equity
|
316,292
|
|
|
297,264
|
|
|
|
Total
liabilities and
|
|
|
|
|
|
|
|
stockholders'
equity
|
$ 2,658,615
|
|
|
$ 2,623,540
|
|
|
|
Net interest
income
|
|
$ 23,404
|
|
|
$ 23,891
|
|
|
Net yield on
earning assets
|
|
|
3.94%
|
|
|
4.09%
|
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND
SUBSIDIARIES
|
|
Consolidated Average Balance
Sheets, Yields, and Rates
|
|
(Unaudited) ($ in
000s)
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended September 30,
|
|
|
|
2010
|
|
|
2009
|
|
|
|
Average
|
|
Yield/
|
Average
|
|
Yield/
|
|
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
Loan portfolio:
|
|
|
|
|
|
|
|
Residential real
estate
|
$
597,298
|
$ 23,595
|
5.28%
|
$
597,282
|
$ 25,495
|
5.71%
|
|
Home equity
|
402,751
|
16,007
|
5.31%
|
390,388
|
18,165
|
6.22%
|
|
Commercial, financial, and
agriculture
|
764,446
|
29,583
|
5.17%
|
758,050
|
31,519
|
5.56%
|
|
Installment loans to
individuals
|
49,047
|
2,830
|
7.71%
|
49,498
|
3,150
|
8.51%
|
|
Previously securitized
loans
|
1,281
|
3,317
|
346.20%
|
3,364
|
3,067
|
121.90%
|
|
Total loans
|
1,814,823
|
75,332
|
5.55%
|
1,798,582
|
81,396
|
6.05%
|
|
Securities:
|
|
|
|
|
|
|
|
Taxable
|
470,783
|
15,947
|
4.53%
|
453,713
|
17,494
|
5.16%
|
|
Tax-exempt
|
49,158
|
2,128
|
5.79%
|
39,829
|
1,921
|
6.45%
|
|
Total
securities
|
519,941
|
18,075
|
4.65%
|
493,542
|
19,415
|
5.26%
|
|
Deposits in depository
institutions
|
5,288
|
-
|
-
|
5,271
|
10
|
0.25%
|
|
Federal funds sold
|
8,590
|
13
|
-
|
165
|
-
|
-
|
|
Total
interest-earning assets
|
2,348,642
|
93,420
|
5.32%
|
2,297,560
|
100,821
|
5.87%
|
|
Cash and due from
banks
|
53,070
|
|
|
51,553
|
|
|
|
Bank premises and
equipment
|
64,552
|
|
|
62,443
|
|
|
|
Other assets
|
207,648
|
|
|
213,285
|
|
|
|
Less: Allowance for
loan losses
|
(19,462)
|
|
|
(21,867)
|
|
|
|
Total
assets
|
$ 2,654,450
|
|
|
$ 2,602,974
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
461,178
|
999
|
0.29%
|
425,972
|
1,327
|
0.42%
|
|
Savings deposits
|
388,356
|
792
|
0.27%
|
371,706
|
1,386
|
0.50%
|
|
Time deposits
|
991,419
|
18,774
|
2.53%
|
1,004,959
|
24,517
|
3.26%
|
|
Short-term borrowings
|
111,089
|
284
|
0.34%
|
135,708
|
395
|
0.39%
|
|
Long-term debt
|
16,923
|
496
|
3.92%
|
18,669
|
676
|
4.84%
|
|
Total interest-bearing
liabilities
|
1,968,965
|
21,345
|
1.45%
|
1,957,014
|
28,301
|
1.93%
|
|
Noninterest-bearing demand
deposits
|
353,418
|
|
|
328,302
|
|
|
|
Other liabilities
|
17,726
|
|
|
27,335
|
|
|
|
Stockholders' equity
|
314,341
|
|
|
290,323
|
|
|
|
Total
liabilities and
|
|
|
|
|
|
|
|
stockholders'
equity
|
$ 2,654,450
|
|
|
$ 2,602,974
|
|
|
|
Net interest
income
|
|
$ 72,075
|
|
|
$ 72,520
|
|
|
Net yield on
earning assets
|
|
|
4.10%
|
|
|
4.22%
|
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND
SUBSIDIARIES
|
|
Analysis of Risk-Based
Capital
|
|
(Unaudited) ($ in
000s)
|
|
|
|
|
|
|
|
|
|
September
30
|
June
30
|
March
31
|
December
31
|
September
30
|
|
|
2010
(a)
|
2010
|
2010
|
2009
|
2009
|
|
|
|
|
|
|
|
|
Tier I Capital:
|
|
|
|
|
|
|
Stockholders'
equity
|
$
314,841
|
$
312,575
|
$
312,835
|
$
308,902
|
$
305,140
|
|
Goodwill and other
intangibles
|
(56,487)
|
(56,596)
|
(56,705)
|
(56,810)
|
(56,928)
|
|
Accumulated other
comprehensive (income) loss
|
(2,498)
|
(950)
|
330
|
2,554
|
(330)
|
|
Qualifying trust preferred
stock
|
16,000
|
16,000
|
16,000
|
16,000
|
16,000
|
|
Unrealized Loss on AFS
securities
|
(1,277)
|
(3,668)
|
(2,950)
|
(3,531)
|
(2,355)
|
|
Excess deferred tax
assets
|
(2,916)
|
(3,530)
|
(3,827)
|
(3,412)
|
(10,105)
|
|
Total tier I capital
|
$
267,664
|
$
262,664
|
$
264,516
|
$
262,536
|
$
250,255
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Risk-Based
Capital:
|
|
|
|
|
|
|
Tier I capital
|
$
267,664
|
$
262,664
|
$
264,516
|
$
262,536
|
$
250,255
|
|
Qualifying allowance for
loan losses
|
18,364
|
19,456
|
18,982
|
18,687
|
19,655
|
|
Total risk-based
capital
|
$
286,028
|
$
282,120
|
$
283,498
|
$
281,223
|
$
269,910
|
|
|
|
|
|
|
|
|
Net risk-weighted
assets
|
$
1,949,080
|
$ 1,952,076
|
$ 1,935,071
|
$
1,926,824
|
$
1,919,093
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios:
|
|
|
|
|
|
|
Average stockholders'
equity to average assets
|
11.90%
|
11.76%
|
11.87%
|
11.70%
|
11.33%
|
|
Tangible capital
ratio
|
10.04%
|
9.86%
|
9.79%
|
9.77%
|
9.62%
|
|
Risk-based capital
ratios:
|
|
|
|
|
|
|
Tier I capital
|
13.73%
|
13.46%
|
13.67%
|
13.63%
|
13.04%
|
|
Total risk-based
capital
|
14.68%
|
14.45%
|
14.65%
|
14.60%
|
14.06%
|
|
Leverage
capital
|
10.30%
|
10.06%
|
10.28%
|
10.23%
|
9.79%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) September 30, 2010
risk-based capital ratios are estimated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND
SUBSIDIARIES
|
|
Intangibles
|
|
(Unaudited) ($ in
000s)
|
|
|
|
|
|
|
|
|
|
As of and
for the Quarter Ended
|
|
|
September
30
|
June
30
|
March
31
|
December
31
|
September
30
|
|
|
2010
|
2010
|
2010
|
2009
|
2009
|
|
|
|
|
|
|
|
|
Intangibles, net
|
$
56,682
|
$
56,791
|
$
56,900
|
$
57,010
|
$
57,127
|
|
Intangibles amortization
expense
|
109
|
109
|
110
|
117
|
117
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND
SUBSIDIARIES
|
|
Summary of Loan Loss
Experience
|
|
(Unaudited) ($ in
000s)
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
September
30
|
June
30
|
March
31
|
December
31
|
September
30
|
|
|
2010
|
2010
|
2010
|
2009
|
2009
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$
19,456
|
$
18,836
|
$
18,541
|
$
19,609
|
$
20,923
|
|
|
|
|
|
|
|
|
Charge-offs:
|
|
|
|
|
|
|
Commercial, financial, and
agricultural
|
2,046
|
796
|
361
|
1,821
|
2,117
|
|
Real
estate-mortgage
|
654
|
637
|
423
|
448
|
567
|
|
Installment loans to
individuals
|
43
|
20
|
26
|
87
|
36
|
|
Overdraft deposit
accounts
|
615
|
565
|
550
|
737
|
795
|
|
Total
charge-offs
|
3,358
|
2,018
|
1,360
|
3,093
|
3,515
|
|
|
|
|
|
|
|
|
Recoveries:
|
|
|
|
|
|
|
Commercial, financial, and
agricultural
|
28
|
378
|
9
|
88
|
27
|
|
Real
estate-mortgage
|
12
|
38
|
23
|
31
|
19
|
|
Installment loans to
individuals
|
29
|
53
|
50
|
37
|
95
|
|
Overdraft deposit
accounts
|
350
|
346
|
493
|
394
|
379
|
|
Total
recoveries
|
419
|
815
|
575
|
550
|
520
|
|
|
|
|
|
|
|
|
Net
charge-offs
|
2,939
|
1,203
|
785
|
2,543
|
2,995
|
|
Provision for loan
losses
|
1,847
|
1,823
|
1,080
|
1,475
|
1,681
|
|
Balance at end of
period
|
$
18,364
|
$
19,456
|
$
18,836
|
$
18,541
|
$
19,609
|
|
|
|
|
|
|
|
|
Loans outstanding
|
$
1,825,838
|
$ 1,833,572
|
$ 1,801,840
|
$
1,792,434
|
$
1,797,384
|
|
Average loans
outstanding
|
1,829,119
|
1,821,822
|
1,793,134
|
1,792,759
|
1,803,611
|
|
Allowance as a percent of loans
outstanding
|
1.01%
|
1.06%
|
1.05%
|
1.03%
|
1.09%
|
|
Allowance as a percent of
non-performing loans
|
160.40%
|
177.78%
|
131.60%
|
132.02%
|
118.61%
|
|
Net charge-offs (annualized) as
a
|
|
|
|
|
|
|
percent of average loans
outstanding
|
0.64%
|
0.26%
|
0.18%
|
0.57%
|
0.66%
|
|
Net charge-offs, excluding
overdraft deposit
|
|
|
|
|
|
|
accounts, (annualized) as
a percent of average loans outstanding
|
0.58%
|
0.22%
|
0.16%
|
0.49%
|
0.57%
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND
SUBSIDIARIES
|
|
Summary of Non-Performing
Assets
|
|
(Unaudited) ($ in
000s)
|
|
|
|
|
|
|
|
|
|
September
30
|
June
30
|
March
31
|
December
31
|
September
30
|
|
|
2010
|
2010
|
2010
|
2009
|
2009
|
|
|
|
|
|
|
|
|
Nonaccrual loans
|
$
11,220
|
$ 10,246
|
$ 14,008
|
$
13,583
|
$
16,423
|
|
Accruing loans past due 90 days
or more
|
195
|
698
|
305
|
382
|
98
|
|
Previously securitized loans
past due 90 days or more
|
34
|
-
|
-
|
79
|
12
|
|
Total
non-performing loans
|
11,449
|
10,944
|
14,313
|
14,044
|
16,533
|
|
Other real estate owned,
excluding property associated
|
|
|
|
|
|
|
with previously
securitized loans
|
12,636
|
12,722
|
10,800
|
11,729
|
12,323
|
|
Other real estate owned
associated with previously
|
|
|
|
|
|
|
securitized
loans
|
-
|
-
|
-
|
-
|
-
|
|
Other real
estate owned
|
12,636
|
12,722
|
10,800
|
11,729
|
12,323
|
|
Total
non-performing assets
|
$
24,085
|
$ 23,666
|
$ 25,113
|
$
25,773
|
$
28,856
|
|
|
|
|
|
|
|
|
Non-performing assets as a
percent of loans and
|
|
|
|
|
|
|
other real estate
owned
|
1.31%
|
1.28%
|
1.39%
|
1.43%
|
1.59%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND
SUBSIDIARIES
|
|
Summary of Total Past Due
Loans
|
|
(Unaudited) ($ in
000s)
|
|
|
|
|
|
|
|
|
|
September
30
|
June
30
|
March
31
|
December
31
|
September
30
|
|
|
2010
|
2010
|
2010
|
2009
|
2009
|
|
|
|
|
|
|
|
|
Residential real
estate
|
$
3,815
|
$ 5,298
|
$ 3,850
|
$
3,830
|
$
3,167
|
|
Home equity
|
2,863
|
1,763
|
1,818
|
2,396
|
1,718
|
|
Commercial, financial, and
agriculture
|
262
|
3,680
|
498
|
601
|
545
|
|
Installment loans to
individuals
|
106
|
168
|
133
|
172
|
185
|
|
Previously securitized
loans
|
518
|
394
|
539
|
1,023
|
1,054
|
|
Overdraft deposit
accounts
|
337
|
399
|
326
|
461
|
510
|
|
Total past
due loans
|
$
7,901
|
$ 11,702
|
$ 7,164
|
$
8,483
|
$
7,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE City Holding Company
Copyright . 25 PR Newswire