City Holding Company Announces Earnings Increase by 75%

  City Holding Company Announces Earnings Increase by 75%

Business Wire

CHARLESTON, W.Va. -- July 23, 2013

City Holding Company, “the Company” (NASDAQ:CHCO), a $3.4 billion bank holding
company headquartered in Charleston, today announced second quarter net income
per diluted share of $0.82 and net income of $13.0 million. This represents an
increase in earnings per share of 64.2% and an increase in net income of
75.5%. For the second quarter of 2013, the Company achieved a return on assets
of 1.53%, a return on tangible equity of 17.6%, a net interest margin of
4.35%, and an efficiency ratio of 52.0%.

Earnings increased in the second quarter of 2013 primarily due to an increase
in accretion of net interest income associated with the acquisitions of
Virginia Savings Bank in the second quarter of 2012 and the acquisition of
Community Financial Corporation (”Community Bank”) in the first quarter of
2013. Earnings in the second quarter of 2012 also included one-time
merger-related expenses of $4.0 million compared to negligible merger-related
expenses in the second quarter of 2013. Net interest income increased $1.7
million from the first quarter of 2013 due to improved accretion earnings, in
part due to better loan performance than expected. As a result of this
additional income, the Company’s net interest margin improved from 4.18% for
the first quarter of 2013 to 4.35% for the second quarter of 2013.

City’s CEO Charles Hageboeck stated that “The strength and stability of City’s
net interest margin over the last twelve months has been impressive. The net
interest margin in the second quarter of 2012 was 3.91%. Adjusting for the
positive benefits of accretion into net interest income related to City’s
acquisitions of Virginia Savings Bank and Community Bank over the last year,
our net interest margin would have been 3.86% in the second quarter of 2013.
During this time frame, City’s investment portfolio experienced the redemption
of over $50 million of high-yielding trust preferred securities. Despite the
loss of these high-yielding securities, and excluding the accretion benefit of
our acquisitions, the net interest margin has been remarkably steady.”

“City has been very pleased with the results of our acquisitions of Virginia
Savings Bank, headquartered in Front Royal, Virginia and Community Bank,
headquartered in Staunton, Virginia. Both of these new markets for City are
experiencing higher growth levels than many of City’s core banking markets.
The staff in both of these markets has worked very hard to serve their
customers while integrating their operations into City. We are very pleased
with customer retention and account acquisition results to date. We are also
pleased with the results of efforts to improve the asset quality at both
institutions, with results to-date ahead of expectations both with respect to
the amount of time it will take to resolve the problems and the ultimate
values that will be received. Such positive results include our ability
to-date to workout the problem loans that each of these institutions had. As a
result of our efforts, our capital levels are increasing more rapidly than
originally anticipated. City’s tangible capital ratio was 9.4% at December 31,
2012 just prior to the acquisition of Community Bank in January 2013. At June
30, 2013, despite the $43 million credit mark on Community Bank’s loan
portfolio that was recorded, City’s tangible equity ratio has already
recovered to 8.9%” Hageboeck concluded.

Net Interest Income

The Company’s tax equivalent net interest income increased $1.7 million, or
5.8%, from $29.7 million during the first quarter of 2013 to $31.5 million
during the second quarter of 2013. This increase is due to an increase in the
accretion related to the acquisitions of Virginia Savings and Community Bank.
The Company’s reported net interest margin increased from 4.18% for the first
quarter of 2013 to 4.35% for the second quarter of 2013. Excluding the
favorable impact of the accretion from the fair value adjustments ($3.5
million for the quarter ended June 30, 2013 and $2.2 million for the quarter
ended March 31, 2013), the net interest margin would have been 3.86% for the
quarter ended June 30, 2013 and 3.87% for the quarter ended March 31, 2013.

Credit Quality

The Company’s ratio of nonperforming assets to total loans and other real
estate owned declined slightly from 1.13% at March 31, 2013 to 1.09% at June
30, 2013. Excluded from this ratio are purchased credit-impaired loans in
which the Company estimated cash flows and estimated a credit mark. These
loans are considered performing loans provided that the loan is performing in
accordance with the estimated expectations. Such loans would be considered
nonperforming loans if the loan’s performance deteriorates below the initial
expectations. Total past due loans decreased from $31.1 million, or 1.25% of
total loans outstanding, at March 31, 2013 to $30.4 million, or 1.20% of total
loans outstanding, at June 30, 2013. The Company continues to make progress
with past due acquired loans that represent approximately two-thirds of the
total past dues loans. In accordance with regulatory guidance issued in the
third quarter of 2012, the Company considers loans in which the borrower has
filed Chapter 7 bankruptcy with the debt being discharged by the bankruptcy
court and the loan has not been reaffirmed by the borrower to be troubled debt
restructured loans (“TDR’s”). Since the time of this change, TDR’s have
increased from $21.5 million at September 30, 2012 to $26.3 million at June
30, 2013, with less than 10% of these loans being nonaccrual loans. This
increase is primarily due to additional Chapter 7 related loans.

As a result of the Company’s quarterly analysis of the adequacy of the
Allowance for Loan Losses (“ALLL”), the Company recorded a provision for loan
losses of $2.0 million in the second quarter of 2013, compared to $1.7 for the
comparable period in 2012 and $1.7 million for the first quarter of 2013. The
provision for loan losses recorded in the second quarter of 2013 reflects
difficulties of certain commercial borrowers of the Company 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 provision and related allowance 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.

Non-interest Income

Excluding investment security transactions, non-interest income increased $1.0
million to $14.2 million in the second quarter of 2013 as compared to $13.2
million in the second quarter of 2012. Service charges increased $0.4 million,
or 6.2%, to $6.9 million while bankcard revenues increased $0.3 million, or
9.5%, to $3.5 million. These increases were primarily due to the acquisitions
of Virginia Savings and Community Bank. In addition, other income increased
$0.2 million or 38.9%, to $0.8 million.

Non-interest Expenses

During the second quarter of 2012, the Company completed its acquisition of
Virginia Savings and recognized $4.0 million of acquisition and integration
expenses. Excluding these expenses, non-interest expenses increased $3.2
million, from $20.8 million in the second quarter of 2012 to $24.0 million in
the second quarter of 2013. This increase was primarily related to higher
salaries and employee benefits ($2.0 million) due to the acquisitions of
Virginia Savings and Community Bank ($1.7 million) and higher health insurance
($0.3 million). In addition, other expenses increased $0.5 million, occupancy
and equipment expense increased $0.5 million and depreciation increased $0.3
million. These increases were primarily attributable to the acquisitions of
Virginia Savings and Community Bank. Overall expense increases associated with
the acquisitions of Virginia Savings and Community Bank have been in line with
the Company’s expectations. These expenses were partially offset by a decrease
in repossessed asset losses as a result of losses recognized in the second
quarter of 2012.

Balance Sheet Trends

Loans have increased $30.4 million (1.2%) from March 31, 2013 to $2.53 billion
at June 30, 2013. Commercial real estate loans increased $21.9 million (2.2%)
and residential real estate loans increased $20.7 million (1.8%). These
increases were partially offset by decreases in commercial and industrial
(“C&I”) loans ($11.4 million, or 7.6%) and consumer loans ($1.0 million, or
1.9%). The decline in C&I loans is a continuation of a strategy engaged by the
Company to allow certain acquired loans (although performing in accordance
with their respective terms) that were judged by the Company to be of higher
risk than loans originated in accordance with the Company’s credit standards,
to exit the portfolio.

Total average depository balances increased $57.8 million, or 2.1%, from the
quarter ended March 31, 2013 to the quarter ended June 30, 2013.
Noninterest-bearing deposits increased $20.1 million, savings deposits
increased $19.6 million, time deposits increased $9.4 million, and
interest-bearing deposits increased $8.0 million.

Income Tax Expense

The Company’s effective income tax rate for the second quarter of 2013 was
33.6% compared to 34.3% for the year ended December 31, 2012, and 33.8% for
the quarter ended June 30, 2012. The effective rate is based upon the
Company’s expected tax rate for the year ending December 31, 2013.

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 89.1% and the loan to asset ratio was
74.8% at June 30, 2013. The Company maintained investment securities totaling
10.2% of assets as of this date. Further, the Company’s deposit mix is
weighted heavily toward checking and saving accounts that fund 51.1% of assets
at June 30, 2013. Time deposits fund 32.8% of assets at June 30, 2013, but
very few of these deposits are in accounts that have balances of more than
$250,000, reflecting the core retail orientation of the Company.

The Company continues to be strongly capitalized. The Company’s tangible
equity ratio was 8.9% at June 30, 2013 compared to 9.4% at December 31, 2012.
At June 30, 2013, City National Bank’s Leverage Ratio is 8.82%, its Tier I
Capital ratio is 11.92%, and its Total Risk-Based Capital ratio is 12.75%.
These regulatory capital ratios are significantly above levels required to be
considered “well capitalized,” which is the highest possible regulatory
designation.

On June 26, 2013, the Board approved a quarterly cash dividend of $0.37 cents
per share payable July 31, 2013, to shareholders of record as of July 15,
2013.

City Holding Company is the parent company of City National Bank of West
Virginia. City National operates 83 branches across West Virginia, Virginia,
Kentucky and 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 could
have adverse legal actions of a material nature; (4) the Company may face
competitive loss of customers; (5) the Company may be unable to manage its
expense levels; (6) the Company may have difficulty retaining key employees;
(7) 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; (8) changes in general economic conditions and
increased competition could adversely affect the Company’s operating results;
(9) 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; (10) the
Company may experience difficulties growing loan and deposit balances; (11)
the current economic environment poses significant challenges for us and could
adversely affect our financial condition and results of operations; (12)
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; (13)  the effects of
the Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”)
recently adopted by the United States Congress and (14) the integration of the
operations of City Holding and Community Financial may be more difficult than
anticipated. Forward-looking statements made herein reflect management’s
expectations as of the date such statements are made. 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. Further, the Company is required to evaluate subsequent events through
the filing of its June 30, 2013 Form 10-Q. The Company will continue to
evaluate the impact of any subsequent events on the preliminary June 30, 2013
results and will adjust the amounts if necessary.

                                                                   
CITY HOLDING COMPANY AND SUBSIDIARIES
Financial Highlights
(Unaudited)
                                                                   
                                                                
                                     Three Months Ended June 30,   Percent
                                     2013            2012          Change
                                                                   
Earnings ($000s, except per share
data):
Net Interest Income (FTE)            $   31,464      $  24,039     30.89   %
Net Income available to common           13,006         7,413      75.45   %
shareholders
Earnings per Basic Share                 0.83           0.50       65.13   %
Earnings per Diluted Share               0.82           0.50       64.23   %
                                                                
                                                                   
Key Ratios (percent):
Return on Average Assets                 1.53     %     1.06    %  44.73   %
Return on Average Tangible Equity        17.59    %     11.20   %  57.01   %
Net Interest Margin                      4.35     %     3.91    %  11.09   %
Efficiency Ratio                         52.04    %     66.45   %  (21.68  )%
Average Shareholders' Equity to          10.94    %     11.47   %  (4.60   )%
Average Assets
                                                                   
Consolidated Risk Based Capital Ratios (a):
Tier I                                   12.34    %     12.46   %  (0.96   )%
Total                                    13.19    %     13.38   %  (1.42   )%
                                                                   
Tangible Equity to Tangible Assets       8.90     %     9.03    %  (1.52   )%
                                                                
                                                                   
Common Stock Data:
Cash Dividends Declared per Share    $   0.37        $  0.35       5.71    %
Book Value per Share                     23.52          21.63      8.72    %
Tangible Book Value per Share            18.76          17.24      8.84    %
Market Value per Share:
High                                     40.43          35.62      13.50   %
Low                                      36.87          30.96      19.09   %
End of Period                            38.95          33.69      15.61   %
                                                                   
Price/Earnings Ratio (b)                 11.77          16.81      (29.99  )%
                                                                
                                     Six Months Ended June 30,     Percent
                                     2013            2012          Change
                                                                   
Earnings ($000s, except per share
data):
Net Interest Income (FTE)            $   61,210      $  47,768     28.14   %
Net Income available to common           20,993         17,442     20.36   %
shareholders
Earnings per Basic Share                 1.34           1.18       13.70   %
Earnings per Diluted Share               1.33           1.17       13.15   %
                                                                
                                                                   
Key Ratios (percent):
Return on Average Assets                 1.25     %     1.26    %  (0.75   )%
Return on Average Tangible Equity        14.49    %     13.30   %  8.99    %
Net Interest Margin                      4.26     %     3.94    %  8.09    %
Efficiency Ratio                         59.14    %     59.74   %  (1.00   )%
Average Shareholders' Equity to          10.84    %     11.51   %  (5.81   )%
Average Assets
                                                                
                                                                   
Common Stock Data:
Cash Dividends Declared per Share    $   0.74        $  0.70       5.71    %
Market Value per Share:
High                                     40.43          37.16      8.80    %
Low                                      36.07          30.96      16.51   %
                                                                   
Price/Earnings Ratio (b)                 14.53          14.29      1.68    %
                                                                   
                                                                   
(a) June 30, 2013 risk-based capital ratios are
estimated
(b) June 30, 2013 price/earnings ratio computed based on annualized second
quarter 2013 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    December   Low          High
                                 30            31
                                                                       
2009           $  17.69  $ 18.24 $   18.95     $   19.37  $    20.88   $ 34.34
2010              19.71    20.02     20.31         20.31       26.87     38.03
2011              20.39    20.58     20.86         21.05       26.06     37.22
2012              21.46    21.63     22.14         22.47       30.96     37.16
2013              23.27    23.52                               36.07     40.43
                                                                
                                                                       
Earnings per Basic Share
                                                                       
               Quarter Ended
               March 31  June 30 September    December   Year-to-Date
                                 30            31
                                                                       
2009           $  0.69   $ 0.64  $   0.66      $   0.70   $    2.69
2010              0.59     0.68      0.58          0.64        2.48
2011              0.62     0.65      0.77          0.65        2.68
2012              0.68     0.50      0.71          0.73        2.63
2013              0.51     0.83                                1.34
                                                                
                                                                       
Earnings per Diluted
Share
                                                                       
               Quarter Ended
               March 31  June 30 September    December   Year-to-Date
                                 30            31
                                                                       
2009           $  0.69   $ 0.64  $   0.66      $   0.70   $    2.68
2010              0.58     0.68      0.58          0.64        2.47
2011              0.62     0.64      0.76          0.65        2.67
2012              0.67     0.50      0.71          0.73        2.61
2013              0.51     0.82                                1.33

CITY HOLDING COMPANY AND SUBSIDIARIES                            
Consolidated Statements of Income
(Unaudited) ($ in 000s, except per share data)
                                                                    
                                                   Three Months Ended June 30,
                                                   2013            2012
                                                                    
Interest Income
Interest and fees on loans                         $  31,771        $ 23,143
Interest on investment securities:
Taxable                                               2,632           3,943
Tax-exempt                                            312             368
Interest on federal funds sold                       9             12     
Total Interest Income                                 34,724          27,466
                                                                    
Interest Expense
Interest on deposits                                  3,195           3,383
Interest on short-term borrowings                     79              77
Interest on long-term debt                           153           165    
Total Interest Expense                               3,427         3,625  
Net Interest Income                                   31,297          23,841
Provision for loan losses                            2,011         1,675  
Net Interest Income After Provision for Loan          29,286          22,166
Losses
                                                                    
Non-Interest Income
Total investment securities impairment losses         -               (606   )
Noncredit impairment losses recognized in other      -             302    
comprehensive income
Net investment securities impairment losses           -               (304   )
Gains on sale of investment securities               9             832    
Net investment securities gains                       9               528
                                                                    
Service charges                                       6,897           6,497
Bankcard revenue                                      3,450           3,152
Insurance commissions                                 1,358           1,347
Trust and investment management fee income            964             942
Bank owned life insurance                             799             766
Other income                                         775           558    
Total Non-Interest Income                             14,252          13,790
                                                                    
Non-Interest Expense
Salaries and employee benefits                        12,640          10,668
Occupancy and equipment                               2,500           1,978
Depreciation                                          1,453           1,109
FDIC insurance expense                                341             394
Advertising                                           819             675
Bankcard expenses                                     766             694
Postage, delivery, and statement mailings             552             488
Office supplies                                       463             396
Legal and professional fees                           535             421
Telecommunications                                    465             387
Repossessed asset (gains)/losses, net of expenses     (23     )       650
Merger related expenses                               65              4,042
Other expenses                                       3,383         2,861  
Total Non-Interest Expense                           23,959        24,763 
Income Before Income Taxes                            19,579          11,193
Income tax expense                                   6,573         3,780  
Net Income Available to Common Shareholders        $  13,006       $ 7,413  
                                                                    
                                                                    
Distributed earnings allocated to common           $  5,751         $ 5,146
shareholders
Undistributed earnings allocated to common           7,139         2,208  
shareholders
Net earnings allocated to common shareholders      $  12,890       $ 7,354  
                                                                    
Average common shares outstanding                     15,582          14,680
Effect of dilutive securities:
Employee stock options                               170           79     
Shares for diluted earnings per share                15,752        14,759 
                                                                    
Basic earnings per common share                    $  0.83          $ 0.50
Diluted earnings per common share                  $  0.82          $ 0.50
Dividends declared per common share                $  0.37          $ 0.35
                                                                    
Comprehensive Income                               $  8,798         $ 6,673

CITY HOLDING COMPANY AND SUBSIDIARIES                             
Consolidated Statements of Income
(Unaudited) ($ in 000s, except per share data)
                                                                    
                                                     Six months ended June 30,
                                                     2013          2012
                                                                    
Interest Income
Interest and fees on loans                           $  61,709      $ 46,210
Interest on investment securities:
Taxable                                                 5,382         7,907
Tax-exempt                                              636           755
Interest on federal funds sold                         22          23     
Total Interest Income                                   67,749        54,895
                                                                    
Interest Expense
Interest on deposits                                    6,422         7,051
Interest on short-term borrowings                       149           150
Interest on long-term debt                             309         333    
Total Interest Expense                                 6,880       7,534  
Net Interest Income                                     60,869        47,361
Provision for loan losses                              3,749       3,625  
Net Interest Income After Provision for Loan Losses     57,120        43,736
                                                                    
Non-Interest Income
Total investment securities impairment losses           -             (606   )
Noncredit impairment losses recognized in other        -           302    
comprehensive income
Net investment securities impairment losses             -             (304   )
Gains on sale of investment securities                 93          801    
Net investment securities gains                         93            497
                                                                    
Service charges                                         13,432        12,545
Bankcard revenue                                        6,649         6,194
Insurance commissions                                   3,198         3,343
Trust and investment management fee income              1,954         1,749
Bank owned life insurance                               1,611         1,489
Other income                                           1,641       1,091  
Total Non-Interest Income                               28,578        26,908
                                                                    
Non-Interest Expense
Salaries and employee benefits                          25,589        20,913
Occupancy and equipment                                 4,971         3,913
Depreciation                                            2,852         2,195
FDIC insurance expense                                  853           779
Advertising                                             1,554         1,319
Bankcard expenses                                       1,493         1,314
Postage, delivery, and statement mailings               1,158         1,036
Office supplies                                         904           851
Legal and professional fees                             971           738
Telecommunications                                      910           776
Repossessed asset losses, net of expenses               (178    )     771
Merger related expenses                                 5,604         4,177
Other expenses                                         6,682       5,496  
Total Non-Interest Expense                             53,363      44,278 
Income Before Income Taxes                              32,335        26,366
Income tax expense                                     11,342      8,924  
Net Income Available to Common Shareholders          $  20,993     $ 17,442 
                                                                    
                                                                    
Distributed earnings allocated to common             $  11,502      $ 10,291
shareholders
                                                                    
Undistributed earnings allocated to common             9,303       7,011  
shareholders
                                                                    
Net earnings allocated to common shareholders        $  20,805     $ 17,302 
                                                                    
Average common shares outstanding                       15,521        14,676
                                                                    
Effect of dilutive securities:
Employee stock options                                 166         84     
                                                                    
Shares for diluted earnings per share                  15,687      14,760 
                                                                    
Basic earnings per common share                      $  1.34        $ 1.18
Diluted earnings per common share                    $  1.33        $ 1.17
Dividends declared per common share                  $  0.74        $ 0.70
                                                                    
Comprehensive Income                                 $  16,875      $ 18,872

CITY HOLDING COMPANY AND SUBSIDIARIES                          
Consolidated Statements of Changes in Stockholders' Equity
(Unaudited) ($ in 000s)
                                                                 
                                                                 
                                                 Three Months Ended
                                                 June 30, 2013  June 30, 2012
                                                                 
Balance at April 1                               $  365,848      $  316,046
                                                                 
Net income                                          13,006          7,413
Other comprehensive income:
Change in unrealized loss on securities             (4,208   )      (740     )
available-for-sale
Cash dividends declared ($0.37/share) and           (5,803   )      (5,188   )
($0.35/share), respectively
Issuance of stock award shares, net                 246             213
Acquisition of Community Financial Corporation      (198     )      -
Acquisition of Virginia Savings Bancorp             -               7,723
Exercise of 20,435 stock options                    -               -
Purchase of 149,535 common shares of treasury      -            (4,845   )
Balance at June 30                               $  368,891    $  320,622  
                                                                 
                                                                 
                                                                 
                                                 Six Months Ended
                                                 June 30, 2013  June 30, 2012
                                                                 
Balance at January 1                             $  333,274      $  311,134
                                                                 
Net income                                          20,993          17,442
Other comprehensive income:
Change in unrealized gain (loss) on securities      (4,118   )      1,430
available-for-sale
Cash dividends declared ($0.74/share) and           (11,866  )      (10,337  )
($0.70/share), respectively
Issuance of stock award shares, net                 703             657
Acquisition of Community Financial Corporation      28,508          -
Acquisition of Virgina Savings Bancorp              -               7,723
Exercise of 62,685 stock options                    1,397           -
Exercise of 16,899 stock options                    -               488
Purchase of 237,535 common shares of treasury      -            (7,915   )
Balance at June 30                               $  368,891    $  320,622  

CITY HOLDING COMPANY AND                             
SUBSIDIARIES
Condensed Consolidated Quarterly
Statements of Income
(Unaudited) ($ in 000s,
except per share data)
                                                                    
                   Quarter Ended
                   June 30    March 31   December 31   September 30 June 30
                   2013       2013       2012         2012         2012
                                                                    
Interest income   $ 34,724   $ 33,026   $  28,884     $  28,432    $ 27,466
Taxable
equivalent         167      174       183        185       198    
adjustment
Interest income      34,891     33,200      29,067        28,617      27,664
(FTE)
Interest           3,427    3,455     3,360      3,557     3,625  
expense
Net interest        31,464     29,745      25,707        25,060      24,039
income
Provision for       2,011    1,738     1,775      975       1,675  
loan losses
Net interest
income after
provision
for loan losses      29,453     28,007      23,932        24,085      22,364
                                                                    
Noninterest          14,252     14,326      14,266        14,079      13,790
income
Noninterest         23,959   29,403    21,273     21,846    24,763 
expense
Income before        19,746     12,930      16,925        16,318      11,391
income taxes
Income tax           6,573      4,769       5,848         5,526       3,780
expense
Taxable
equivalent          167      174       183        185       198    
adjustment
Net income
available to       $ 13,006  $ 7,987   $  10,894   $  10,607   $ 7,413  
common
shareholders
                                                                    
                                                             
                                                                    
Distributed
earnings allocated $ 5,751    $ 5,747    $  5,151      $  5,150     $ 5,146
to common
shareholders
Undistributed
earnings allocated  7,139    2,175     5,658      5,373     2,208  
to common
shareholders
Net earnings
allocated to       $ 12,890  $ 7,922   $  10,809   $  10,523   $ 7,354  
common
shareholders
                                                                    
Average common
shares               15,582     15,473      14,755        14,751      14,680
outstanding
                                                                    
Effect of
dilutive
securities:
Employee stock      170      154       82         83        79     
options
                                                                    
Shares for
diluted             15,752   15,627    14,837     14,834    14,759 
earnings per
share
                                                                    
Basic earnings
per common         $ 0.83     $ 0.51     $  0.73       $  0.71      $ 0.50
share
Diluted
earnings per         0.82       0.51        0.73          0.71        0.50
common share
                                                                    
Cash dividends
declared per         0.37       0.37        0.35          0.35        0.35
share
                                                             
                                                                    
Net Interest         4.35   %   4.18   %    3.99   %      3.95    %   3.91   %
Margin
                                                                    
Interest Income
from Accretion
Related to Fair
                   $ 3,517    $ 2,181    $  1,658      $  936       $ -
Value Adjustments
Recorded as a
Result of
Acquisition

CITY HOLDING COMPANY AND                                        
SUBSIDIARIES
Non-Interest
Income and
Non-Interest
Expense
(Unaudited) ($ in
000s)
                                                                     
                   Quarter Ended
                   June 30      March 31     December   September    June 30
                                             31         30
                   2013        2013        2012      2012        2012
                                                                     
Non-Interest
Income:
Service charges    $ 6,897      $ 6,535      $ 7,113    $ 6,750      $ 6,497
Bankcard revenue     3,450        3,199        3,101      3,111        3,152
Insurance            1,358        1,840        1,289      1,439        1,347
commissions
Trust and
investment           964          990          1,112      912          942
management fee
income
Bank owned life      799          812          754        738          766
insurance
Other income        775       866       897      671       558    
Subtotal             14,243       14,242       14,266     13,621       13,262
Total investment
securities           -            -            -          (272   )     (606   )
impairment losses
Noncredit impairment losses
recognized in other
comprehensive       -         -         -        -         302    
income
Net investment
securities           -            -            -          (272   )     (304   )
impairment losses
Gain (loss) on
sale of investment  9         84        -        730       832    
securities
Total Non-Interest $ 14,252   $ 14,326   $ 14,266  $ 14,079   $ 13,790 
Income
                                                                     
Non-Interest
Expense:
Salaries and       $ 12,640     $ 12,949     $ 11,301   $ 11,295     $ 10,668
employee benefits
Occupancy and        2,500        2,472        2,147      2,126        1,978
equipment
Depreciation         1,453        1,399        1,234      1,175        1,109
FDIC insurance       341          511          407        405          394
expense
Advertising          819          735          596        674          675
Bankcard expenses    766          727          628        720          694
Postage, delivery
and statement        552          605          514        529          488
mailings
Office supplies      463          441          412        407          396
Legal and            535          435          437        611          421
professional fees
Telecommunications   465          445          405        433          387
Repossessed asset
(gains) losses,      (23    )     (155   )     146        429          650
net of expenses
Merger related       65           5,540        373        157          4,042
expenses
Other expenses      3,383     3,299     2,673    2,885     2,861  
Total Non-Interest $ 23,959   $ 29,403   $ 21,273  $ 21,846   $ 24,763 
Expense
                                                                     
                                                                     
                                                            
                                                                     
Employees (Full      931          932          843        836          831
Time Equivalent)
Branch Locations     83           83           73         73           73

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
                                                   June 30       December 31
                                                   2013          2012
                                                   (Unaudited)
Assets
Cash and due from banks                            $ 186,707     $ 58,718
Interest-bearing deposits in depository              5,627         16,276
institutions
Federal funds sold                                  -           10,000    
Cash and cash equivalents                            192,334       84,994
                                                                 
Investment securities available-for-sale, at fair    328,782       377,122
value
Investment securities held-to-maturity, at           4,293         13,454
amortized cost
Other securities                                    13,344      11,463    
Total investment securities                          346,419       402,039
                                                                 
Gross loans                                          2,527,445     2,146,369
Allowance for loan losses                           (20,069   )  (18,809   )
Net loans                                            2,507,376     2,127,560
                                                                 
Bank owned life insurance                            90,444        81,901
Premises and equipment, net                          82,190        72,728
Accrued interest receivable                          8,275         6,692
Net deferred tax assets                              46,549        32,737
Intangible assets                                    74,642        65,057
Other assets                                        34,321      43,758    
Total Assets                                       $ 3,382,550  $ 2,917,466 
                                                                 
Liabilities
Deposits:
Noninterest-bearing                                $ 510,713     $ 429,969
Interest-bearing:
Demand deposits                                      612,950       553,132
Savings deposits                                     603,818       506,869
Time deposits                                       1,108,469   919,346   
Total deposits                                       2,835,950     2,409,316
Short-term borrowings
Customer repurchase agreements                       124,343       114,646
Long-term debt                                       16,495        16,495
Other liabilities                                   36,871      43,735    
Total Liabilities                                    3,013,659     2,584,192
                                                                 
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 June 30, 2013 and
December 31, 2012
less 2,815,397 and 3,665,999 shares in treasury,     46,249        46,249
respectively
Capital surplus                                      107,235       103,524
Retained earnings                                    318,397       309,270
Cost of common stock in treasury                     (97,450   )   (124,347  )
Accumulated other comprehensive loss:
Unrealized gain on securities available-for-sale     (545      )   3,573
Underfunded pension liability                       (4,995    )  (4,995    )
Total Accumulated Other Comprehensive Loss          (5,540    )  (1,422    )
Total Stockholders' Equity                          368,891     333,274   
Total Liabilities and Stockholders' Equity         $ 3,382,550  $ 2,917,466 

CITY HOLDING COMPANY AND                                       
SUBSIDIARIES
Investment
Portfolio
(Unaudited) ($ in
000s)
                                                                   
                                  Credit-Related

                                  Net Investment   Unrealized
                                                   Gains           Carrying
                  Original Cost   Impairment                       Value
                                                   (Losses)
                                  Losses through

                                  June 30, 2013
                                                                   
US Government     $   2,857       $  -             $  68           $  2,925
Agencies
Mortgage Backed       254,240        -                (306    )       253,934
Securities
Municipal Bonds       43,156         -                833             43,989
Pooled Bank Trust     25,062         (20,171  )       (2,427  )       2,464
Preferreds
Single Issuer
Bank Trust
Preferreds,
Subdebt of
Financial
Institutions, and
Bank Holding
Company Preferred     24,901         (1,015   )       (508    )       23,378
Stocks
Money Markets and     1,525          -                (11     )       1,514
Mutual Funds
Federal Reserve
Bank and FHLB         13,344         -                -               13,344
stock
Community Bank       8,194         (4,813   )      1,490         4,871
Equity Positions
Total Investments $   373,279     $  (25,999  )    $  (861    )    $  346,419

CITY HOLDING COMPANY AND                                              
SUBSIDIARIES
Loan
Portfolio
(Unaudited)
($ in 000s)
                                                                           
             June 30         March 31       December 31     September 30   June 30
             2013           2013          2012           2012          2012
                                                                           
Residential
real estate  $  1,170,123    $  1,149,411   $  1,031,435    $  1,008,305   $ 997,016
^(1)
Home equity
- junior        138,367         138,333        143,110         143,058       143,400
liens
Commercial
and             138,299         149,677        108,739         105,027       116,288
industrial
Commercial
real estate     1,023,311       1,001,453      821,970         787,887       768,176
^(2)
Consumer        54,242          55,274         36,564          38,285        37,383
DDA            3,103         2,876        4,551         2,670       3,326
overdrafts
Gross Loans  $  2,527,445   $  2,497,024  $  2,146,369   $  2,085,232  $ 2,065,589
                                                                           
Construction
loans
included in:
^(1) -
Residential  $  15,889       $  16,884      $  15,408       $  12,787      $ 11,919
real estate
loans
^(2) -
Commercial   $  24,726       $  26,163      $  15,352       $  17,072      $ 18,544
real estate
loans
                                                                           
                                                                           
                                                                           
CITY HOLDING COMPANY AND
SUBSIDIARIES
Acquisition
Activity -
Accretion
(Unaudited)
($ in
millions)
                                                                           
                                                                           
The following table presents the actual and forecasted accretion related to the fair
value adjustments on net interest income recorded as a result of the Virginia Savings
Bancorp (VSB) and Community Financial Corporation (Community) acquisitions.
                                                                           
                                                                           
             VSB                            Community
             Loan            Certificates   Loan            Certificates
                             of                             of
Year Ended:  Accretion^(a)  Deposit^(a)    Accretion^(a)  Deposit^(a)    Total
                                                                           
1Q 2013      $  985          $  178         $  858          $  160         $ 2,181
2Q 2013         1,334           122            1,887           174           3,517
Remainder       718             242            2,755           305           4,020
2013
2014            974             537            3,483           294           5,288
2015            729             518            1,993           160           3,400
Thereafter      1,494           497            8,458           48            10,497
                                                                           
a - 2Q 2013 amounts are based on actual results. Remainder 2013, 2014,
2015, and Thereafter 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 June 30,
                                  2013                           2012
                    Average                Yield/  Average                Yield/
                    Balance       Interest Rate    Balance       Interest Rate
                                                                          
Assets:
Loan portfolio
^(1):
Residential real    $ 1,290,188   $ 13,564 4.22  % $ 1,096,164   $ 11,904 4.37 %
estate ^(2)
Commercial,
financial, and        1,156,269     15,654 5.43  %   876,678       9,742  4.47 %
agriculture ^(3)
Installment loans
to individuals        67,426        1,839  10.94 %   46,439        751    6.50 %
^(4), (5)
Previously
securitized loans   ***            714    ***     ***            746    ***
^(6)
Total loans           2,513,883     31,771 5.07  %   2,019,281     23,143 4.61 %
Securities:
Taxable               327,252       2,632  3.23  %   378,656       3,943  4.19 %
Tax-exempt ^(7)      31,789      479    6.04  %  39,678      566    5.74 %
Total securities      359,041       3,111  3.48  %   418,334       4,509  4.34 %
Deposits in
depository            7,451         -      -         6,951         -      -
institutions
Federal funds sold   22,747      9      0.16  %  26,124      12     0.18 %
Total
interest-earning      2,903,122     34,891 4.82  %   2,470,690     27,664 4.50 %
assets
Cash and due from     175,837                        70,858
banks
Bank premises and     82,243                         68,936
equipment
Other assets          261,552                        215,692
Less: Allowance for  (20,089   )                 (19,179   )         
loan losses
Total assets        $ 3,402,665                 $ 2,806,997          
                                                                          
Liabilities:
Interest-bearing      611,334       179    0.12  %   533,666       173    0.13 %
demand deposits
Savings deposits      603,604       216    0.14  %   474,976       184    0.16 %
Time deposits ^(8)    1,116,358     2,800  1.01  %   895,921       3,026  1.36 %
Short-term            125,729       79     0.25  %   121,424       77     0.26 %
borrowings
Long-term debt       16,495      153    3.72  %  16,495      165    4.02 %
Total
interest-bearing      2,473,520     3,427  0.56  %   2,042,482     3,625  0.71 %
liabilities
Noninterest-bearing   519,212                        413,709
demand deposits
Other liabilities     37,698                         28,921
Stockholders'        372,235                    321,885            
equity
Total liabilities
and
stockholders'       $ 3,402,665                 $ 2,806,997          
equity
Net interest income              $ 31,464                     $ 24,039 
Net yield on                             4.35  %                      3.91 %
earning assets
                                                                          
                                                                          
                                                                          
(1) ^ For purposes of this table, non-accruing loans have been included in
average balances and loan fees, which are immaterial, have been included in
interest income.
(2) - Interest income on residential real estate loans includes $0.2 million and
$0.1 million of accretion related to the fair value market adjustments due to
the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial
Corporation, respectively.
(3) - Interest income on commercial, financial, and agriculture loans includes
$1.0 million and $1.3 million of accretion related to the fair value market
adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and
Community Financial Corporation, respectively.
(4) - Interest income on installment loans to individuals includes $0.1 million
and $0.5 million of accretion related to the fair value market adjustments due
to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial
Corporation, respectively.
(5) Includes the Company’s consumer and DDA
overdrafts loan categories.
(6) Effective January 1, 2012, the carrying value of the Company's previously
securitized loans was reduced to $0.
(7) Computed on a fully federal tax-equivalent basis assuming a tax rate
of approximately 35%.
(8) - Interest expense on time deposits includes $0.1 million and $0.2 million
in accretion of the fair market value adjustments related to the acquisitions of
Virginia Savings Bancorp, Inc. and Community Financial Corporation,
respectively.

CITY HOLDING COMPANY AND
SUBSIDIARIES
Consolidated Average Balance Sheets,
Yields, and Rates
(Unaudited) ($ in
000s)
                                                                         
                    Six Months Ended June 30,
                                  2013                          2012
                    Average                Yield/ Average                Yield/
                    Balance       Interest Rate   Balance       Interest Rate
                                                                         
Assets:
Loan portfolio
^(1):
Residential real    $ 1,283,907   $ 27,284 4.29 % $ 1,082,038   $ 23,731 4.41 %
estate ^(2)
Commercial,
financial, and        1,139,187     29,845 5.28 %   869,782       19,326 4.47 %
agriculture ^(3)
Installment loans
to individuals        66,649        3,217  9.73 %   44,060        1,521  6.94 %
^(4), (5)
Previously
securitized loans   ***            1,363  ***    ***            1,632  ***
^(6)
Total loans           2,489,743     61,709 5.00 %   1,995,880     46,210 4.66 %
Securities:
Taxable               338,627       5,382  3.21 %   365,233       7,907  4.35 %
Tax-exempt ^(7)      32,386      978    6.09 %  40,397      1,162  5.78 %
Total securities      371,013       6,360  3.46 %   405,630       9,069  4.50 %
Deposits in
depository            8,238         -      -        7,269         -      -
institutions
Federal funds sold   26,320      21     0.16 %  26,793      23     0.17 %
Total
interest-earning      2,895,314     68,090 4.74 %   2,435,572     55,302 4.57 %
assets
Cash and due from     144,096                       73,171
banks
Bank premises and     81,604                        66,841
equipment
Other assets          260,449                       216,033
Less: Allowance for  (19,782   )                (19,452   )         
loan losses
Total assets        $ 3,361,681                $ 2,772,165          
                                                                         
Liabilities:
Interest-bearing      607,339       358    0.12 %   528,714       351    0.13 %
demand deposits
Savings deposits      593,880       430    0.15 %   461,705       372    0.16 %
Time deposits ^(8)    1,111,696     5,634  1.02 %   892,516       6,328  1.43 %
Short-term            118,838       149    0.25 %   117,685       150    0.26 %
borrowings
Long-term debt       16,495      309    3.78 %  16,495      333    4.06 %
Total
interest-bearing      2,448,248     6,880  0.57 %   2,017,115     7,534  0.75 %
liabilities
Noninterest-bearing   508,865                       403,305
demand deposits
Other liabilities     40,142                        32,676
Stockholders'        364,426                   319,069            
equity
Total liabilities
and
stockholders'       $ 3,361,681                $ 2,772,165          
equity
Net interest income              $ 61,210                    $ 47,768 
Net yield on                             4.26 %                      3.94 %
earning assets
                                                                         
(1) ^ For purposes of this table, non-accruing loans have been included in
average balances and loan fees, which are immaterial, have been included in
interest income.
(2) - Interest income on residential real estate loans includes $0.5 million
and $0.2 million of accretion related to the fair value market adjustments due
to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial
Corporation, respectively.
(3) - Interest income on commercial, financial, and agriculture loans includes
$1.7 million and $1.9 million of accretion related to the fair value market
adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and
Community Financial Corporation, respectively.
(4) Includes the Company’s consumer and DDA
overdrafts loan categories.
(5) - Interest income on installment loans to individuals includes $0.1 million
and $0.6 million of accretion related to the fair value market adjustments due
to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial
Corporation, respectively.
(6) Effective January 1, 2012, the carrying value of the Company's previously
securitized loans was reduced to $0.
(7) Computed on a fully federal tax-equivalent basis assuming a
tax rate of approximately 35%.
(8) - Interest expense on time deposits includes $0.3 million and $0.3 million
in accretion of the fair market value adjustments related to the acquisitions
of Virginia Savings Bancorp, Inc. and Community Financial Corporation,
respectively.

CITY HOLDING COMPANY AND                                
SUBSIDIARIES
Analysis of
Risk-Based
Capital
(Unaudited)
($ in 000s)
                                                                        
              June 30       March 31      December 31     September 30  June 30
              2013 (a)      2013          2012           2012          2012
                                                                        
Tier I
Capital:
Stockholders' $ 368,891     $ 365,848     $ 333,274       $ 328,415     $ 320,622
equity
Goodwill and
other           (74,455   )   (75,563   )   (64,866   )     (64,912   )   (64,971   )
intangibles
Accumulated
other           5,540         1,332         1,422           365           2,477
comprehensive
loss
Qualifying
trust           16,000        16,000        16,000          16,000        16,000
preferred
stock
Unrealized
loss on AFS     (11       )   -             -               -             -
securities
Excess
deferred tax   (13,572   )  (17,737   )  (6,577    )    (7,472    )  (7,847    )
assets
Total tier I  $ 302,394    $ 289,880    $ 279,254     $ 272,397    $ 266,282   
capital
                                                                  
                                                                        
Total
Risk-Based
Capital:
Tier I        $ 302,394     $ 289,880     $ 279,254       $ 272,397     $ 266,282
capital
Qualifying
allowance for   20,069        19,721        18,809          18,986        19,452
loan losses
Unrealized
gain on        686         696         -             -           -         
securities
Total
risk-based    $ 323,149    $ 310,297    $ 298,063     $ 291,383    $ 285,734   
capital
                                                                        
Net
risk-weighted $ 2,450,010   $ 2,436,022   $ 2,152,622     $ 2,112,581   $ 2,136,249
assets
                                                                  
                                                                        
Ratios:
Average
stockholders'
equity to       10.94     %   10.74     %   11.49     %     11.32     %   11.47     %
average
assets
Tangible        8.90      %   8.61      %   9.40      %     9.29      %   9.03      %
capital ratio
Risk-based
capital
ratios:
Tier I          12.34     %   11.90     %   12.97     %     12.89     %   12.46     %
capital
Total
risk-based      13.19     %   12.74     %   13.85     %     13.79     %   13.38     %
capital
Leverage        9.12      %   8.98      %   9.82      %     9.67      %   9.74      %
capital
                                                                        
                                                                        
(a) June 30, 2013
risk-based capital ratios
are estimated
                                                                        
                                                                  
                                                                        
                                                                        
CITY HOLDING COMPANY AND
SUBSIDIARIES
Intangibles
(Unaudited)
($ in 000s)
                                                                        
              As of and for the Quarter Ended
              June 30       March 31      December 31     September 30  June 30
              2013          2013          2012           2012          2012
                                                                        
Intangibles,  $ 74,642      $ 75,750      $ 65,057        $ 65,103      $ 65,162
net
Intangibles
amortization    260           260           135             135           109
expense

CITY HOLDING COMPANY AND                                 
SUBSIDIARIES
Summary of
Loan Loss
Experience
(Unaudited) ($
in 000s)
                                                                         
               Quarter Ended
               June 30       March 31      December 31     September 30  June 30
               2013          2013          2012           2012          2012
                                                                         
Balance at
beginning of   $ 19,721      $ 18,809      $ 18,986        $ 19,452      $ 18,628
period
                                                                         
Charge-offs:
Commercial and   330           62            100             9             48
industrial
Commercial       419           203           1,744           845           26
real estate
Residential      520           591           284             252           296
real estate
Home equity      154           116           366             133           347
Consumer         221           3             42              53            36
DDA overdrafts  348         339         394          418         375       
Total            1,992         1,314         2,930           1,710         1,128
charge-offs
                                                                         
Recoveries:
Commercial and   20            1             19              10            -
industrial
Commercial       16            18            190             3             -
real estate
Residential      20            48            7               8             3
real estate
Home equity      -             -             6               1             10
Consumer         70            147           45              26            35
DDA overdrafts  203         274         711          221         229       
Total            329           488           978             269           277
recoveries
                                                                     
Net              1,663         826           1,952           1,441         851
charge-offs
Provision for    1,834         1,738         1,775           975           1,675
loan losses
Provision for   177         -           -            -           -         
acquired loans
Balance at end $ 20,069     $ 19,721     $ 18,809      $ 18,986     $ 19,452    
of period
                                                                         
Loans          $ 2,527,445  $ 2,497,023  $ 2,146,369   $ 2,085,232  $ 2,065,589 
outstanding
Average loans   2,513,883   2,465,336   2,104,483    2,070,264   2,019,281 
outstanding
Allowance as a
percent of      0.79      %  0.79      %  0.88      %   0.91      %  0.94      %
loans
outstanding
Allowance as a
percent of      119.63    %  110.21    %  96.59     %   82.61     %  88.92     %
non-performing
loans
Net
charge-offs
(annualized)
as a
percent of
average loans   0.26      %  0.13      %  0.37      %   0.28      %  0.17      %
outstanding
Net
charge-offs,
excluding
overdraft
deposit
accounts,
(annualized)
as a percent
of average      0.24      %  0.12      %  0.43      %   0.24      %  0.14      %

loans
outstanding

CITY HOLDING COMPANY AND
SUBSIDIARIES
Summary of
Non-Performing
Assets
(Unaudited) ($
in 000s)
                                                                    
                June 30       March 31      December 31  September  June 30
                                                         30
                2013          2013          2012         2012       2012
                                                                    
Nonaccrual      $  15,706     $  17,520     $  19,194    $ 22,586   $ 21,726
loans
Accruing loans
past due 90       1,070       374         280       397      149    
days or more
Total
non-performing     16,776        17,894        19,474      22,983     21,875
loans
Other real        10,837      10,508      8,162     9,017    8,697  
estate owned
Total
non-performing  $  27,613    $  28,402    $  27,636   $ 32,000  $ 30,572 
assets
                                                                    
Non-performing assets as a
percent of loans and
other real         1.09    %     1.13    %     1.28    %   1.53   %   1.47   %
estate owned
                                                               
                                                                    
                                                                    
CITY HOLDING COMPANY AND
SUBSIDIARIES
Summary of
Total Past Due
Loans
(Unaudited) ($
in 000s)
                Originated
                June 30       March 31      December 31  September  June 30
                                                         30
                2013          2013          2012         2012       2012
                                                                    
Residential     $  6,525      $  5,889      $  5,748     $ 4,909    $ 5,575
real estate
Home equity        655           858           2,893       2,643      1,864
Commercial and     234           320           496         25         540
industrial
Commercial real    2,556         1,503         633         1,271      3,145
estate
Consumer           103           83            121         136        90
DDA overdrafts    290         337         281       319      364    
Total past due  $  10,363    $  8,990     $  10,172   $ 9,303   $ 11,578 
loans
                                                                    
                Acquired
                June 30       March 31      December 31  September  June 30
                                                         30
                2013          2013          2012         2012       2012
                                                                    
Residential     $  1,986      $  2,759      $  -         $ -        $ -
real estate
Home equity        -             -             -           -          -
Commercial and     3,710         11,245        1,004       -          -
industrial
Commercial real    13,661        7,247         1,793       -          -
estate
Consumer           693           864           -           -          -
DDA overdrafts    -           -           -         -        -      
Total past due  $  20,050    $  22,115    $  2,797    $ -       $ -      
loans
                                                                    
                Total
                June 30       March 31      December 31  September  June 30
                                                         30
                2013          2013          2012         2012       2012
                                                                    
Residential     $  8,511      $  8,648      $  5,748     $ 4,909    $ 5,575
real estate
Home equity        655           858           2,893       2,643      1,864
Commercial and     3,944         11,565        1,500       25         540
industrial
Commercial real    16,217        8,750         2,426       1,271      3,145
estate
Consumer           796           947           121         136        90
DDA overdrafts    290         337         281       319      364    
Total past due  $  30,413    $  31,105    $  12,969   $ 9,303   $ 11,578 
loans
                                                                    
Total past due
loans as a
percent of         1.20    %     1.25    %     0.60    %   0.45   %   0.56   %
loans
outstanding
                                                               
                                                                    
                                                                    
CITY HOLDING COMPANY AND
SUBSIDIARIES
Summary of Troubled Debt
Restructurings
(Unaudited) ($
in 000s)
                                                                    
                June 30       March 31      December 31  September  June 30
                                                         30
                2013          2013          2012         2012       2012
                                                                    
Residential     $  21,480     $  20,136     $  18,988    $ 17,979   $ -
real estate
Home equity        2,963         3,025         3,743       3,126      -
Commercial and     95            101           101         -          -
industrial
Commercial real    1,791         1,805         734         227        228
estate
Consumer          -           142         142       144      146    
Total           $  26,329    $  25,209    $  23,708   $ 21,476  $ 374    
                                                                    
                                                                    
At September 30, 2012, the Company reclassified $21.1 million of loans as TDRs
in accordance with recent regulatory guidance. The regulatory guidance
requires loans to be accounted for as collateral-dependent loans when
borrowers have filed Chapter 7 bankruptcy, the debt has been discharged by the
bankruptcy court and the borrower has not reaffirmed the debt.

Contact:

City Holding Company
Charles R. Hageboeck, 304-769-1102
Chief Executive Officer and President
 
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