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City Holding Company Announces Record Quarterly Earnings


Attachment:

  City Holding Company Announces Record Quarterly Earnings

Business Wire

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

City Holding Company, “the Company” (NASDAQ:CHCO), a $3.4 billion bank holding
company headquartered in Charleston, today announced third quarter net income
per diluted share of $0.88 and net income of $14.0 million. Compared to the
third quarter of 2012, earnings per share increased 23.6% while net income
increased 31.8%. For the third quarter of 2013, the Company achieved a return
on assets of 1.65%, a return on tangible equity of 18.5%, a net interest
margin of 4.47%, and an efficiency ratio of 52.1%.

The Company’s earnings increased in the third quarter of 2013 primarily due to
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. Net interest income increased $1.1 million from the
second quarter of 2013 due to accelerated accretion income from acquired loans
paying down and paying off more quickly than initially expected. Accretion
income included $2.4 million related to certain credit impaired loans that
paid off during the third quarter of 2013 unexpectedly. The Company’s net
interest margin improved from 4.35% for the second quarter of 2013 to 4.47%
for the third quarter of 2013 as a result of the additional accretion income.

City’s CEO Charles Hageboeck stated that “We continue to be very pleased with
the results from our acquisitions of Virginia Savings Bank and Community Bank,
especially with our success in resolving problem loans associated with these
acquisitions. Primarily as a result of our efforts to effectively workout a
number of these problem loans, our past due loans and other asset quality
indicators continue to show improvement. While there is still work to be done
in regards to credit-impaired loans, particularly those associated with
Community Bank, we are pleased with our progress in resolving these acquired
loans.”

“City’s net interest margin continues to be a source of strength, with a
reported net interest margin of 4.47% for the third quarter of 2013. After
adjustment for the positive benefits of accretion relating to our
acquisitions, our net interest margin would have been 3.78% for the third
quarter of 2013 compared to 3.80% for the third quarter of 2012. We are very
pleased to report this increase in spite of the loss of over $50 million of
high yielding trust preferred securities and the continuation of historic low
interest rates. In addition, we anticipate solid commercial loan growth in the
fourth quarter of 2013.”

“As a result of these successes and many others during the quarter, the
Company’s quarterly earnings per diluted share of $0.88 represent a new record
for City. In addition, our capital levels continue to increase with our
tangible capital growing to 9.1% at September 30, 2013,” Hageboeck concluded.

Net Interest Income

The Company’s tax equivalent net interest income increased $1.1 million, or
3.4%, from $31.5 million during the second quarter of 2013 to $32.5 million
during the third 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 4.35% for the second
quarter of 2013 to 4.47% for the third quarter of 2013. Excluding the
favorable impact of the accretion from the fair value adjustments ($5.0
million for the quarter ended September 30, 2013 and $3.5 million for the
quarter ended June 30, 2013), the net interest margin would have been 3.78%
for the quarter ended September 30, 2013 and 3.86% for the quarter ended June
30, 2013.

Credit Quality

The Company’s ratio of nonperforming assets to total loans and other real
estate owned decreased from 1.33% at June 30, 2013 to 1.15% at September 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 $22.6 million, or 0.89% of total loans
outstanding, at June 30, 2013 to $18.4 million, or 0.72% of total loans
outstanding, at September 30, 2013. Acquired past due loans represent
approximately 61% of total past due loans and have declined $0.9 million, or
7.8%, since June 30, 2013. In accordance with regulatory guidance issued in
the third quarter of 2012, the Company classifies loans in which the borrower
has filed Chapter 7 bankruptcy with the debt discharged by the bankruptcy
court and the loan not 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 $24.8 million at
September 30, 2013. More than 90% of these loans are current with interest and
principal payments.

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 $1.2 million in the third quarter of 2013, compared to $1.0 for the
comparable period in 2012 and $2.0 million for the second quarter of 2013.
During the third quarter of 2013, the Company recovered $0.5 million from
loans that had previously been charged-off, which had a positive impact on the
allowance for loan losses at September 30, 2013. Changes in the amount of the
allowance for loan losses and the related provision 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 $0.9
million to $14.5 million in the third quarter of 2013 as compared to $13.6
million in the third quarter of 2012. Service charges increased $0.4 million,
or 6.2%, to $7.2 million while bankcard revenues increased $0.4 million, or
11.5%, to $3.5 million. These increases were primarily due to the acquisition
of Community Bank.

Non-interest Expenses

Non-interest expenses increased $2.8 million, from $21.8 million in the third
quarter of 2012 to $24.7 million in the third quarter of 2013. This increase
was primarily related to higher salaries and employee benefits ($1.6 million)
and repossessed asset losses ($0.5 million). Salaries and employee benefits
increased due to the acquisition of Community Bank ($1.0 million) and higher
incentive compensation accruals ($0.2 million). Repossessed asset losses were
based on updated appraisals. The Company continually re-evaluates the
estimated fair value of properties that have been repossessed by obtaining
updated appraisals on at least an annual basis. In addition, occupancy and
equipment expense increased $0.3 million and depreciation increased $0.3
million. These increases were also primarily attributable to the acquisition
of Community Bank. Overall expense increases associated with the acquisitions
of Virginia Savings and Community Bank have continued to be in line with the
Company’s expectations.

Balance Sheet Trends

Loans increased $31.1 million (1.2%) from June 30, 2013 to $2.56 billion at
September 30, 2013. Residential real estate loans increased $18.7 million
(1.6%), commercial and industrial (“C&I”) loans increased $12.9 million (9.3%)
and home equity loans increased $2.5 million (1.8%). These increases were
partially offset by a decrease in consumer loans ($3.5 million, or 6.4%). The
Company strategically decided to reduce consumer loans due to the acquisition
of a portfolio of indirect auto loans with unsatisfactory credit quality
metrics associated with Community Bank.

Total average depository balances declined $16.6 million, or 0.6%, from the
quarter ended June 30, 2013 to the quarter ended September 30, 2013. Time
deposits decreased $10.0 million and interest-bearing deposits decreased $7.7
million.

Income Tax Expense

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

Capitalization and Liquidity

The Company’s loan to deposit ratio was 91.1% and the loan to asset ratio was
75.3% at September 30, 2013. The Company maintained investment securities
totaling 10.2% of assets as of this date. The Company’s deposit mix is
weighted heavily toward checking and saving accounts that fund 50.3% of assets
at September 30, 2013. Time deposits fund 32.3% of assets at September 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 is strongly capitalized. The Company’s tangible equity ratio was
9.1% at September 30, 2013 compared to 9.4% at December 31, 2012 despite the
acquisition of Community Bank which lowered this ratio to 8.61% at March 31,
2013. At September 30, 2013, City National Bank’s Leverage Ratio is 9.09%, its
Tier I Capital ratio is 12.21%, and its Total Risk-Based Capital ratio is
13.06%. These regulatory capital ratios are significantly above levels
required to be considered “well capitalized,” which is the highest possible
regulatory designation.

On September 25, 2013, the Board approved a quarterly cash dividend of $0.37
cents per share payable October 31, 2013, to shareholders of record as of
October 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 September 30, 2013 Form 10-Q. The Company will continue to
evaluate the impact of any subsequent events on the preliminary September 30,
2013 results and will adjust the amounts if necessary.

CITY HOLDING COMPANY AND                                             
SUBSIDIARIES
Financial Highlights
(Unaudited)
                                                                       
                                                                       
                                   Three Months Ended September 30,   Percent
                                   2013             2012              Change
                                                                       
Earnings ($000s, except per share
data):
Net Interest Income (FTE)          $   32,531       $   25,060        29.81 %
Net Income available to common         13,975           10,607        31.75 %
shareholders
Earnings per Basic Share               0.89             0.71          24.37 %
Earnings per Diluted Share             0.88             0.71          23.63 %
                                                                       
                                                                       
Key Ratios (percent):
Return on Average Assets               1.65     %       1.47     %    12.22 %
Return on Average Tangible Equity      18.53    %       16.20    %    14.38 %
Net Interest Margin                    4.47     %       3.95     %    13.13 %
Efficiency Ratio                       52.09    %       56.40    %    (7.64 )%
Average Shareholders' Equity to        11.14    %       11.32    %    (1.65 )%
Average Assets
                                                                       
Consolidated Risk Based Capital
Ratios (a):
Tier I                                 12.66    %       12.89    %    (1.78 )%
Total                                  13.52    %       13.79    %    (1.96 )%
                                                                       
Tangible Equity to Tangible Assets     9.08     %       9.29     %    (2.18 )%
                                                                       
                                                                       
Common Stock Data:
Cash Dividends Declared per Share  $   0.37         $   0.35          5.71  %
Book Value per Share                   24.03            22.14         8.55  %
Tangible Book Value per Share          19.17            17.75         8.02  %
Market Value per Share:
High                                   46.13            36.43         26.63 %
Low                                    40.04            32.37         23.69 %
End of Period                          43.24            35.84         20.65 %
                                                                       
Price/Earnings Ratio (b)               12.18            12.56         (2.99 )%
                                                                       
                                   Nine Months Ended September 30,    Percent
                                   2013             2012              Change
                                                                       
Earnings ($000s, except per share
data):
Net Interest Income (FTE)          $   93,740       $   72,829        28.71 %
Net Income available to common         34,969           28,049        24.67 %
shareholders
Earnings per Basic Share               2.23             1.89          17.76 %
Earnings per Diluted Share             2.21             1.88          17.15 %
                                                                       
                                                                       
Key Ratios (percent):
Return on Average Assets               1.38     %       1.33     %    3.95  %
Return on Average Tangible Equity      15.87    %       14.26    %    11.28 %
Net Interest Margin                    4.33     %       3.95     %    9.78  %
Efficiency Ratio                       56.71    %       58.59    %    (3.21 )%
Average Shareholders' Equity to        10.94    %       11.45    %    (4.41 )%
Average Assets
                                                                       
                                                                       
Common Stock Data:
Cash Dividends Declared per Share  $   1.11         $   1.05          5.71  %
Market Value per Share:
High                                   46.13            37.16         24.14 %
Low                                    36.07            30.96         16.51 %
                                                                       
Price/Earnings Ratio (b)               14.55            14.20         2.45  %
                                                                       
                                                                       
(a) September 30, 2013 risk-based
capital ratios are estimated
(b) September 30, 2013
price/earnings ratio computed
based on annualized third 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
                                                                        
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      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     24.03                     36.07     46.13
                                                                        
                                                                        
Earnings per Basic
Share
                                                                        
             Quarter Ended
             March 31    June 30   September   December   Year-to-Date
                                   30          31
                                                                        
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         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      0.89                      2.23
                                                                        
                                                                        
Earnings per Diluted
Share
                                                                        
             Quarter Ended
             March 31    June 30   September   December   Year-to-Date
                                   30          31
                                                                        
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         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      0.88                      2.21

CITY HOLDING COMPANY AND SUBSIDIARIES                          
Consolidated Statements of Income
(Unaudited) ($ in 000s, except per share
data)
                                                                  
                                              Three Months Ended September 30,
                                              2013               2012
                                                                  
Interest Income
Interest and fees on loans                    $   32,983         $  24,633
Interest on investment securities:
Taxable                                           2,392             3,438
Tax-exempt                                        299               346
Interest on federal funds sold                    -                 15       
Total Interest Income                             35,674            28,432
                                                                  
Interest Expense
Interest on deposits                              3,068             3,312
Interest on short-term borrowings                 82                79
Interest on long-term debt                        154               166      
Total Interest Expense                            3,304             3,557    
Net Interest Income                               32,370            24,875
Provision for loan losses                         1,154             975      
Net Interest Income After Provision for Loan      31,216            23,900
Losses
                                                                  
Non-Interest Income
Total investment securities impairment losses     -                 (272    )
Noncredit impairment losses recognized in         -                 -        
other comprehensive income
Net investment securities impairment losses       -                 (272    )
Gains on sale of investment securities            -                 730      
Net investment securities gains                   -                 458
                                                                  
Service charges                                   7,169             6,751
Bankcard revenue                                  3,468             3,110
Insurance commissions                             1,365             1,439
Trust and investment management fee income        939               912
Bank owned life insurance                         805               738
Other income                                      734               671      
Total Non-Interest Income                         14,480            14,079
                                                                  
Non-Interest Expense
Salaries and employee benefits                    12,930            11,295
Occupancy and equipment                           2,409             2,126
Depreciation                                      1,437             1,175
FDIC insurance expense                            500               405
Advertising                                       712               674
Bankcard expenses                                 680               720
Postage, delivery, and statement mailings         541               529
Office supplies                                   416               407
Legal and professional fees                       591               611
Telecommunications                                721               433
Repossessed asset (gains)/losses, net of          896               429
expenses
Merger related expenses                           (73      )        157
Other expenses                                    2,905             2,885    
Total Non-Interest Expense                        24,665            21,846   
Income Before Income Taxes                        21,031            16,133
Income tax expense                                7,056             5,526    
Net Income Available to Common Shareholders   $   13,975         $  10,607   
                                                                  
                                                                  
Distributed earnings allocated to common      $   5,767          $  5,150
shareholders
Undistributed earnings allocated to common        8,081             5,373    
shareholders
Net earnings allocated to common shareholders $   13,848         $  10,523   
                                                                  
Average common shares outstanding                 15,608            14,751
Effect of dilutive securities:
Employee stock options and warrants               182               83       
Shares for diluted earnings per share             15,790            14,834   
                                                                  
Basic earnings per common share               $   0.89           $  0.71
Diluted earnings per common share             $   0.88           $  0.71
Dividends declared per common share           $   0.37           $  0.35
                                                                  
Comprehensive Income                          $   13,342         $  12,719

CITY HOLDING COMPANY AND SUBSIDIARIES                         
Consolidated Statements of Income
(Unaudited) ($ in 000s, except per share data)
                                                                  
                                               Nine months ended September 30,
                                               2013              2012
                                                                  
Interest Income
Interest and fees on loans                     $   94,693        $  70,843
Interest on investment securities:
Taxable                                            7,774            11,345
Tax-exempt                                         935              1,101
Interest on federal funds sold                     22               38       
Total Interest Income                              103,424          83,327
                                                                  
Interest Expense
Interest on deposits                               9,490            10,363
Interest on short-term borrowings                  232              229
Interest on long-term debt                         464              499      
Total Interest Expense                             10,186           11,091   
Net Interest Income                                93,238           72,236
Provision for loan losses                          4,903            4,600    
Net Interest Income After Provision for Loan       88,335           67,636
Losses
                                                                  
Non-Interest Income
Total investment securities impairment losses      -                (878    )
Noncredit impairment losses recognized in          -                302      
other comprehensive income
Net investment securities impairment losses        -                (576    )
Gains on sale of investment securities             93               1,530    
Net investment securities gains                    93               954
                                                                  
Service charges                                    20,601           19,296
Bankcard revenue                                   10,117           9,305
Insurance commissions                              4,563            4,782
Trust and investment management fee income         2,893            2,662
Bank owned life insurance                          2,416            2,228
Other income                                       2,376            1,762    
Total Non-Interest Income                          43,059           40,989
                                                                  
Non-Interest Expense
Salaries and employee benefits                     38,519           32,207
Occupancy and equipment                            7,381            6,038
Depreciation                                       4,289            3,371
FDIC insurance expense                             1,352            1,184
Advertising                                        2,266            1,993
Bankcard expenses                                  2,173            2,035
Postage, delivery, and statement mailings          1,698            1,565
Office supplies                                    1,320            1,258
Legal and professional fees                        1,561            1,349
Telecommunications                                 1,631            1,209
Repossessed asset losses, net of expenses          718              1,200
Merger related expenses                            5,455            4,335
Other expenses                                     9,664            8,382    
Total Non-Interest Expense                         78,027           66,126   
Income Before Income Taxes                         53,367           42,499
Income tax expense                                 18,398           14,450   
Net Income Available to Common Shareholders    $   34,969        $  28,049   
                                                                  
                                                                  
Distributed earnings allocated to common       $   17,302        $  15,451
shareholders
                                                                  
Undistributed earnings allocated to common         17,349           12,375   
shareholders
                                                                  
Net earnings allocated to common shareholders  $   34,651        $  27,826   
                                                                  
Average common shares outstanding                  15,545           14,700
Effect of dilutive securities:
Employee stock options and warrants                168              83       
Shares for diluted earnings per share              15,713           14,783   
                                                                  
Basic earnings per common share                $   2.23          $  1.89
Diluted earnings per common share              $   2.21          $  1.88
Dividends declared per common share            $   1.11          $  1.05
                                                                  
Comprehensive Income                           $   30,218        $  31,591

CITY HOLDING COMPANY AND SUBSIDIARIES                      
Consolidated Statements of Changes in Stockholders'
Equity
(Unaudited) ($ in 000s)
                                                             
                                                             
                                       Three Months Ended
                                       September 30, 2013   September 30, 2012
                                                             
Balance at July 1                      $    368,891         $    320,622
                                                             
Net income                                  13,975               10,607
Other comprehensive income:
Change in unrealized loss on                (633      )          2,112
securities available-for-sale
Cash dividends declared ($0.37/share)       (5,820    )          (5,196    )
and ($0.35/share), respectively
Issuance of stock award shares, net         260                  214
Exercise of 44,455 stock options            1,369                -
Exercise of 2,000 stock options             -                    56         
Balance at September 30                $    378,042         $    328,415    
                                                             
                                                             
                                                             
                                       Nine Months Ended
                                       September 30, 2013   September 30, 2012
                                                             
Balance at January 1                   $    333,274         $    311,134
                                                             
Net income                                  34,969               28,049
Other comprehensive income:
Change in unrealized gain (loss) on         (4,751    )          3,542
securities available-for-sale
Cash dividends declared ($1.11/share)       (17,686   )          (15,532   )
and ($1.05/share), respectively
Issuance of stock award shares, net         962                  870
Acquisition of Community Financial          28,508               -
Corporation
Acquisition of Virginia Savings             -                    7,723
Bancorp
Exercise of 107,140 stock options           2,766                -
Exercise of 18,899 stock options            -                    544
Purchase of 237,535 common shares of        -                    (7,915    )
treasury
Balance at September 30                $    378,042         $    328,415    

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     September
                                                       31           30
                2013         2013         2013         2012         2012
                                                                     
Interest        $  35,674    $ 34,724     $ 33,026     $ 28,884     $ 28,432
income
Taxable
equivalent         161         167          174          183          185     
adjustment
Interest           35,835      34,891       33,200       29,067       28,617
income (FTE)
Interest           3,304       3,427        3,455        3,360        3,557   
expense
Net interest       32,531      31,464       29,745       25,707       25,060
income
Provision
for loan           1,154       2,011        1,738        1,775        975     
losses
Net interest
income after
provision
for loan           31,377      29,453       28,007       23,932       24,085
losses
                                                                     
Noninterest        14,480      14,252       14,326       14,266       14,079
income
Noninterest        24,665      23,959       29,403       21,273       21,846  
expense
Income
before             21,192      19,746       12,930       16,925       16,318
income taxes
Income tax         7,056       6,573        4,769        5,848        5,526
expense
Taxable
equivalent         161         167          174          183          185     
adjustment
Net income
available to    $  13,975    $ 13,006     $ 7,987      $ 10,894     $ 10,607  
common
shareholders
                                                                     
                                                                     
                                                                     
Distributed
earnings
allocated to    $  5,767     $ 5,751      $ 5,747      $ 5,151      $ 5,150
common
shareholders
Undistributed
earnings
allocated to       8,081       7,139        2,175        5,658        5,373   
common
shareholders
Net earnings
allocated to    $  13,848    $ 12,890     $ 7,922      $ 10,809     $ 10,523  
common
shareholders
                                                                     
Average
common             15,608      15,582       15,473       14,755       14,751
shares
outstanding
                                                                     
Effect of
dilutive
securities:
Employee
stock              182         170          154          82           83      
options
                                                                     
Shares for
diluted            15,790      15,752       15,627       14,837       14,834  
earnings per
share
                                                                     
Basic
earnings per    $  0.89      $ 0.83       $ 0.51       $ 0.73       $ 0.71
common share
Diluted
earnings per       0.88        0.82         0.51         0.73         0.71
common share
                                                                     
Cash
dividends          0.37        0.37         0.37         0.35         0.35
declared per
share
                                                                     
                                                                     
Net Interest       4.47    %   4.35   %     4.18   %     3.99   %     3.95   %
Margin
                                                                     
Interest Income
from Accretion
Related to Fair
Value
                $  5,046     $ 3,517      $ 2,181      $ 1,658      $ 936
Adjustments
Recorded as a
Result of
Acquisition

CITY HOLDING COMPANY AND                                            
SUBSIDIARIES
Non-Interest
Income and
Non-Interest
Expense
(Unaudited) ($ in
000s)
                                                                      
                   Quarter Ended
                   September    June 30      March 31     December   September
                   30                                     31         30
                   2013         2013         2013         2012       2012
                                                                      
Non-Interest
Income:
Service charges    $ 7,169      $ 6,897      $ 6,535      $ 7,113    $ 6,750
Bankcard revenue     3,468        3,450        3,199        3,101      3,111
Insurance            1,365        1,358        1,840        1,289      1,439
commissions
Trust and
investment           939          964          990          1,112      912
management fee
income
Bank owned life      805          799          812          754        738
insurance
Other income         734          775          866          897        671     
Subtotal             14,480       14,243       14,242       14,266     13,621
Total investment
securities           -            -            -            -          (272   )
impairment losses
Noncredit impairment losses
recognized in other
comprehensive        -            -            -            -          -       
income
Net investment
securities           -            -            -            -          (272   )
impairment losses
Gain (loss) on
sale of investment   -            9            84           -          730     
securities
Total Non-Interest $ 14,480     $ 14,252     $ 14,326     $ 14,266   $ 14,079  
Income
                                                                      
Non-Interest
Expense:
Salaries and       $ 12,930     $ 12,640     $ 12,949     $ 11,301   $ 11,295
employee benefits
Occupancy and        2,409        2,500        2,472        2,147      2,126
equipment
Depreciation         1,437        1,453        1,399        1,234      1,175
FDIC insurance       500          341          511          407        405
expense
Advertising          712          819          735          596        674
Bankcard expenses    680          766          727          628        720
Postage, delivery
and statement        541          552          605          514        529
mailings
Office supplies      416          463          441          412        407
Legal and            591          535          435          437        611
professional fees
Telecommunications   721          465          445          405        433
Repossessed asset
(gains) losses,      896          (23    )     (155   )     146        429
net of expenses
Merger related       (73    )     65           5,540        373        157
expenses
Other expenses       2,905        3,383        3,299        2,673      2,885   
Total Non-Interest $ 24,665     $ 23,959     $ 29,403     $ 21,273   $ 21,846  
Expense
                                                                      
                                                                      
                                                                      
                                                                      
Employees (Full      924          931          932          843        836
Time Equivalent)
Branch Locations     83           83           83           73         73

CITY HOLDING COMPANY AND SUBSIDIARIES                           
Consolidated Balance Sheets
($ in 000s)
                                                 September 30    December 31
                                                 2013            2012
                                                 (Unaudited)
Assets
Cash and due from banks                          $ 164,915       $ 58,718
Interest-bearing deposits in depository            14,706          16,276
institutions
Federal funds sold                                 -               10,000     
Cash and cash equivalents                          179,621         84,994
                                                                  
Investment securities available-for-sale, at       329,247         377,122
fair value
Investment securities held-to-maturity, at         3,994           13,454
amortized cost
Other securities                                   13,344          11,463     
Total investment securities                        346,585         402,039
                                                                  
Gross loans                                        2,558,456       2,146,369
Allowance for loan losses                          (20,606   )     (18,809   )
Net loans                                          2,537,850       2,127,560
                                                                  
Bank owned life insurance                          91,249          81,901
Premises and equipment, net                        82,194          72,728
Accrued interest receivable                        8,108           6,692
Net deferred tax assets                            45,183          32,737
Intangible assets                                  76,420          65,057
Other assets                                       29,477          43,758     
Total Assets                                     $ 3,396,687     $ 2,917,466  
                                                                  
Liabilities
Deposits:
Noninterest-bearing                              $ 498,245       $ 429,969
Interest-bearing:
Demand deposits                                    604,047         553,132
Savings deposits                                   606,513         506,869
Time deposits                                      1,098,730       919,346    
Total deposits                                     2,807,535       2,409,316
Short-term borrowings
Customer repurchase agreements                     150,943         114,646
Long-term debt                                     16,495          16,495
Other liabilities                                  43,672          43,735     
Total Liabilities                                  3,018,645       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 September 30, 2013
and December 31, 2012
less 2,769,192 and 3,665,999 shares in treasury,   46,249          46,249
respectively
Capital surplus                                    107,274         103,524
Retained earnings                                  326,553         309,270
Cost of common stock in treasury                   (95,861   )     (124,347  )
Accumulated other comprehensive loss:
Unrealized gain on securities available-for-sale   (1,178    )     3,573
Underfunded pension liability                      (4,995    )     (4,995    )
Total Accumulated Other Comprehensive Loss         (6,173    )     (1,422    )
Total Stockholders' Equity                         378,042         333,274    
Total Liabilities and Stockholders' Equity       $ 3,396,687     $ 2,917,466  

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

                                 Net Investment

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

                                 September 30,

                                 2013
                                                                    
US Government      $  2,510      $  -             $  61            $  2,571
Agencies
Mortgage Backed       258,271       -                (1,232  )        257,039
Securities
Municipal Bonds       41,110        -                740              41,850
Pooled Bank Trust     24,360        (20,171  )       (1,853  )        2,336
Preferreds
Single Issuer Bank
Trust Preferreds,
Subdebt of
Financial
Institutions, and
Bank Holding
Company Preferred     25,137        (1,015   )       (1,140  )        22,982
Stocks
Money Markets and     1,525         -                (18     )        1,507
Mutual Funds
Federal Reserve
Bank and FHLB         13,344        -                -                13,344
stock
Community Bank        8,194         (4,813   )       1,575            4,956
Equity Positions
Total Investments  $  374,451    $  (25,999  )    $  (1,867  )     $  346,585

CITY HOLDING COMPANY AND SUBSIDIARIES                                 
Loan
Portfolio
(Unaudited)
($ in 000s)
                                                                        
             September 30  June 30        March 31      December 31    September
                                                                       30
             2013          2013           2013          2012           2012
                                                                        
Residential
real estate  $ 1,188,841   $  1,170,123   $ 1,149,411   $  1,031,435   $ 1,008,305
^(1)
Home equity
- junior       140,887        138,367       138,333        143,110       143,058
liens
Commercial
and            151,185        138,299       149,677        108,739       105,027
industrial
Commercial
real estate    1,022,278      1,023,311     1,001,453      821,970       787,887
^(2)
Consumer       50,757         54,242        55,274         36,564        38,285
DDA            4,508          3,103         2,876          4,551         2,670
overdrafts
Gross Loans  $ 2,558,456   $  2,527,445   $ 2,497,024   $  2,146,369   $ 2,085,232
                                                                        
Construction
loans
included in:
^(1) -
Residential  $ 14,808      $  15,889      $ 16,884      $  15,408      $ 12,787
real estate
loans
^(2) -
Commercial   $ 17,391      $  24,726      $ 26,163      $  15,352      $ 17,072
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
3Q 2013        632            121           4,119          174           5,046
Remainder      268            120           1,111          131           1,630
2013
2014           777            537           3,277          294           4,885
2015           541            518           1,848          160           3,067
Thereafter     1,839          497           8,514          47            10,897
                                                                        
a - 3Q 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
                                           September 30,
                     
                                  2013                          2012
                    Average                Yield/ Average                Yield/
                    Balance       Interest Rate   Balance       Interest Rate
                                                                          
Assets:
Loan portfolio
^(1):
Residential real    $ 1,315,848   $ 13,931 4.20 % $ 1,140,910   $ 13,000 4.53 %
estate ^(2)
Commercial,
financial, and        1,157,285     16,910 5.80 %   880,243       10,069 4.55 %
agriculture ^(3)
Installment loans
to individuals        63,409        1,538  9.62 %   49,111        782    6.33 %
^(4), (5)
Previously
securitized loans   ***             604    ***    ***             781    ***
^(6)
Total loans           2,536,542     32,983 5.16 %   2,070,264     24,632 4.73 %
Securities:
Taxable               312,786       2,392  3.03 %   372,877       3,438  3.67 %
Tax-exempt ^(7)       29,396        460    6.21 %   36,761        532    5.76 %
Total securities      342,182       2,852  3.31 %   409,638       3,970  3.86 %
Deposits in
depository            7,798         -      -        7,063         -      -
institutions
Federal funds sold    -             -      0.00 %   35,487        15     0.17 %
Total
interest-earning      2,886,522     35,835 4.93 %   2,522,452     28,617 4.51 %
assets
Cash and due from     191,116                       80,335
banks
Bank premises and     82,708                        72,640
equipment
Other assets          251,353                       232,793
Less: Allowance for   (20,519   )                   (19,889   )           
loan losses
Total assets        $ 3,391,180                   $ 2,888,331             
                                                                          
Liabilities:
Interest-bearing      603,592       179    0.12 %   539,189       180    0.13 %
demand deposits
Savings deposits      602,827       216    0.14 %   497,208       204    0.16 %
Time deposits ^(8)    1,106,352     2,673  0.96 %   931,369       2,928  1.25 %
Short-term            127,263       82     0.26 %   122,955       79     0.26 %
borrowings
Long-term debt        16,495        154    3.70 %   16,495        166    4.00 %
Total
interest-bearing      2,456,529     3,304  0.53 %   2,107,216     3,557  0.67 %
liabilities
Noninterest-bearing   521,114                       418,584
demand deposits
Other liabilities     35,854                        35,461
Stockholders'         377,683                       327,070               
equity
Total liabilities
and
stockholders'       $ 3,391,180                   $ 2,888,331             
equity
Net interest income               $ 32,531                      $ 25,060  
Net yield on                               4.47 %                        3.95 %
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) - For 2013, interest income on residential real estate loans includes $0.3
million and $0.3 million of accretion related to the fair value adjustments due
to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial
Corporation, respectively. For 2012, interest income on residential real estate
loans includes $0.6 million of accretion related to the fair value adjustments
due to the acquisition of Virginia Savings Bancorp, Inc.
(3) - For 2013, interest income on commercial, financial, and agriculture loans
includes $0.3 million and $3.5 million of accretion related to the fair value
adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and
Community Financial Corporation, respectively. For 2012, interest income on
commercial, financial and agricultural loans includes $0.3 million of accretion
related to the fair value adjustments due to the acquisition of Virginia
Savings Bancorp, Inc.
 
(4) - For 2013, interest income on installment loans to individuals includes
$0.1 million and $0.4 million of accretion related to the fair value
adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and
Community Financial Corporation, respectively. For 2012, interest income on
installment loans to individuals includes less than $0.1 million of accretion
related to the fair value adjustments due to the acquisition of Virginia
Savings Bancorp, Inc.
(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) - For 2013, interest expense on time deposits includes $0.1 million and
$0.2 million in accretion of the fair value adjustments related to the
acquisitions of Virginia Savings Bancorp, Inc. and Community Financial
Corporation, respectively. For 2012, interest expense on time deposits includes
$0.1 million in accretion of the fair value adjustments related to the
acquisition of Virginia Savings Bancorp, Inc.

CITY HOLDING COMPANY AND
SUBSIDIARIES
Consolidated Average Balance
Sheets, Yields, and Rates
(Unaudited) ($ in
000s)
                                                                        
                                          Nine Months Ended
                                          September 30,
                                2013                         2012
                     Average              Yield/  Average              Yield/
                     Balance    Interest  Rate    Balance    Interest  Rate
                                                                        
Assets:
Loan portfolio ^(1):
Residential real     $          $ 41,215  4.26%   $          $ 36,731  4.45%
estate ^(2)          1,294,671                    1,101,805
Commercial,
financial, and       1,145,286  46,755    5.46%   873,295    29,395    4.50%
agriculture ^(3)
Installment loans to
individuals ^(4),    65,557     4,755     9.70%   45,756     2,303     6.72%
(5)
Previously
securitized loans    ***        1,968     ***     ***        2,414     ***
^(6)
Total loans          2,505,514  94,693    5.05%   2,020,856  70,843    4.68%
Securities:
Taxable              329,918    7,774     3.15%   367,800    11,345    4.12%
Tax-exempt ^(7)      31,378     1,437     6.12%   39,176     1,694     5.78%
Total securities     361,296    9,211     3.41%   406,976    13,039    4.28%
Deposits in
depository           8,090      -         -       7,200      -         -
institutions
Federal funds sold   17,450     22        0.17%   29,712     38        0.17%
Total
interest-earning     2,892,350  103,926   4.80%   2,464,744  83,920    4.55%
assets
Cash and due from    159,942                      75,576
banks
Bank premises and    81,976                       68,788
equipment
Other assets         257,384                      221,661
Less: Allowance for  (20,030)                     (19,599)              
loan losses
Total assets         $                            $                     
                     3,371,622                    2,811,170
                                                                        
Liabilities:
Interest-bearing     606,076    537       0.12%   532,231    531       0.13%
demand deposits
Savings deposits     596,895    645       0.14%   473,626    576       0.16%
Time deposits ^(8)   1,109,895  8,308     1.00%   905,561    9,256     1.37%
Short-term           121,677    232       0.25%   119,454    229       0.26%
borrowings
Long-term debt       16,495     464       3.76%   16,495     499       4.04%
Total
interest-bearing     2,451,038  10,186    0.56%   2,047,367  11,091    0.72%
liabilities
Noninterest-bearing  512,993                      408,435
demand deposits
Other liabilities    38,698                       33,612
Stockholders' equity 368,893                      321,756               
Total liabilities
and
stockholders' equity $                            $                     
                     3,371,622                    2,811,170
Net interest income             $ 93,740                     $ 72,829   
Net yield on earning                      4.33%                        3.95%
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) - For 2013, interest income on residential real estate loans includes $0.8
million and $0.5 million of accretion related to the fair value adjustments
due to the acquisitions of Virginia Savings Bancorp, Inc. and Community
Financial Corporation, respectively. For 2012, interest income on residential
real estate loans includes $0.6 million of accretion related to the fair value
adjustments due to the acquisition of Virginia Savings Bancorp, Inc.
(3) - For 2013, interest income on commercial, financial, and agriculture
loans includes $2.0 million and $5.4 million of accretion related to the fair
value adjustments due to the acquisitions of Virginia Savings Bancorp, Inc.
and Community Financial Corporation, respectively. For 2012, interest income
on commercial, financial and agricultural loans includes $0.3 million of
accretion related to the fair value adjustments due to the acquisition of
Virginia Savings Bancorp, Inc.
(4) Includes the Company’s consumer and DDA overdrafts loan categories.
 
(5) - For 2013, interest income on installment loans to individuals includes
$0.1 million and $1.0 million of accretion related to the fair value
adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and
Community Financial Corporation, respectively. For 2012, interest income on
installment loans to individuals includes less than $0.1 million of accretion
related to the fair value adjustments due to the acquisition of Virginia
Savings Bancorp, Inc.
(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) - For 2013, interest expense on time deposits includes $0.4 million and
$0.5 million in accretion of the fair value adjustments related to the
acquisitions of Virginia Savings Bancorp, Inc. and Community Financial
Corporation, respectively. For 2012, interest expense on time deposits
includes $0.1 million in accretion of the fair value adjustments related to
the acquisition of Virginia Savings Bancorp, Inc.

CITY HOLDING COMPANY AND                                               
SUBSIDIARIES
Analysis of
Risk-Based
Capital
(Unaudited)
($ in 000s)
                                                                         
              September 30  June 30       March 31      December 31     September 30
              2013 (a)      2013          2013          2012            2012
                                                                         
Tier I
Capital:
Stockholders' $ 378,042     $ 368,891     $ 365,848     $ 333,274       $ 328,415
equity
Goodwill and
other           (76,233   )   (74,455   )   (75,563   )   (64,866   )     (64,912   )
intangibles
Accumulated
other           6,173         5,540         1,332         1,422           365
comprehensive
loss
Qualifying
trust           16,000        16,000        16,000        16,000          16,000
preferred
stock
Unrealized
loss on AFS     (18       )   (11       )   -             -               -
securities
Excess
deferred tax    (12,495   )   (13,572   )   (17,737   )   (6,577    )     (7,472    )
assets
Total tier I  $ 311,470     $ 302,394     $ 289,880     $ 279,254       $ 272,397    
capital
                                                                         
                                                                         
Total
Risk-Based
Capital:
Tier I        $ 311,470     $ 302,394     $ 289,880     $ 279,254       $ 272,397
capital
Qualifying
allowance for   20,606        20,069        19,721        18,809          18,986
loan losses
Unrealized
gain on         722           686           696           -               -          
securities
Total
risk-based    $ 332,798     $ 323,149     $ 310,297     $ 298,063       $ 291,383    
capital
                                                                         
Net
risk-weighted $ 2,460,895   $ 2,450,010   $ 2,436,022   $ 2,152,622     $ 2,112,581
assets
                                                                         
                                                                         
Ratios:
Average
stockholders'
equity to       11.14     %   10.94     %   10.74     %   11.49     %     11.32     %
average
assets
Tangible        9.08      %   8.90      %   8.61      %   9.40      %     9.29      %
capital ratio
Risk-based
capital
ratios:
Tier I          12.66     %   12.34     %   11.90     %   12.97     %     12.89     %
capital
Total
risk-based      13.52     %   13.19     %   12.74     %   13.85     %     13.79     %
capital
Leverage        9.43      %   9.12      %   8.98      %   9.82      %     9.67      %
capital
                                                                         
                                                                         
(a) September 30, 2013 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
              2013          2013          2013          2012            2012
                                                                         
Intangibles,  $ 76,420      $ 74,642      $ 75,750      $ 65,057        $ 65,103
net
Intangibles
amortization    260           260           260           135             135
expense

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
               2013          2013          2013          2012          2012
                                                                        
Balance at
beginning of   $ 20,069      $ 19,721      $ 18,809      $ 18,986      $ 19,452
period
                                                                        
Charge-offs:
Commercial and   380           330           62            100           9
industrial
Commercial       181           419           203           1,744         845
real estate
Residential      487           520           591           284           252
real estate
Home equity      8             154           116           366           133
Consumer         102           221           3             42            53
DDA overdrafts   415           348           339           394           418        
Total            1,573         1,992         1,314         2,930         1,710
charge-offs
                                                                        
Recoveries:
Commercial and   30            20            1             19            10
industrial
Commercial       635           16            18            190           3
real estate
Residential      69            20            48            7             8
real estate
Home equity      -             -             -             6             1
Consumer         25            70            147           45            26
DDA overdrafts   197           203           274           711           221        
Total            956           329           488           978           269
recoveries
                                                                        
Net              617           1,663         826           1,952         1,441
charge-offs
Provision for    1,241         1,834         1,738         1,775         975
loan losses
(Recovery of)
provision for    (87       )   177           -             -             -          
acquired loans
Balance at end $ 20,606      $ 20,069      $ 19,721      $ 18,809      $ 18,986     
of period
                                                                        
Loans          $ 2,558,456   $ 2,527,445   $ 2,497,023   $ 2,146,369   $ 2,085,232  
outstanding
Average loans    2,536,542     2,513,883     2,465,336     2,104,483     2,070,264  
outstanding
Allowance as a
percent of       0.81      %   0.79      %   0.79      %   0.88      %   0.91      %
loans
outstanding
Allowance as a
percent of       93.86     %   87.14     %   82.18     %   96.59     %   82.61     %
non-performing
loans
Net
charge-offs
(annualized)
as a
percent of
average loans    0.10      %   0.26      %   0.13      %   0.37      %   0.28      %
outstanding
Net
charge-offs,
excluding
overdraft
deposit
accounts,
(annualized)
as a percent
of average       0.06      %   0.24      %   0.12      %   0.43      %   0.24      %

loans
outstanding

CITY HOLDING
COMPANY AND                                                        
SUBSIDIARIES
Summary of
Non-Performing
Assets
(Unaudited) ($
in 000s)
                                                                     
                September    June 30      March 31     December     September
                30                                     31           30
                2013         2013         2013         2012         2012
                                                                     
Nonaccrual      $ 21,535     $ 21,847     $ 23,198     $ 19,194     $ 22,586
loans
Accruing loans
past due 90       418          1,185        799          280          397     
days or more
Total
non-performing    21,953       23,032       23,997       19,474       22,983
loans
Other real        7,518        10,837       10,508       8,162        9,017   
estate owned
Total
non-performing  $ 29,471     $ 33,869     $ 34,505     $ 27,636     $ 32,000  
assets
                                                                     
Non-performing
assets as a
percent of
loans and
other real        1.15   %     1.33   %     1.38   %     1.28   %     1.53   %
estate owned
                                                                     
                                                                     
                                                                     
CITY HOLDING
COMPANY AND
SUBSIDIARIES
Summary of
Total Past Due
Loans
(Unaudited) ($
in 000s)
                Originated
                September    June 30      March 31     December     September
                30                                     31           30
                2013         2013         2013         2012         2012
                                                                     
Residential     $ 5,414      $ 6,525      $ 5,889      $ 5,748      $ 4,909
real estate
Home equity -     732          655          858          2,893        2,643
junior liens
Commercial and    5            234          303          496          25
industrial
Commercial real   612          2,556        1,503        633          1,271
estate
Consumer          96           103          83           121          136
DDA overdrafts    280          290          337          281          319     
Total past due  $ 7,139      $ 10,363     $ 8,973      $ 10,172     $ 9,303   
loans
                                                                     
                Acquired
                September    June 30      March 31     December     September
                30                                     31           30
                2013         2013         2013         2012         2012
                                                                     
Residential     $ 1,032      $ 951        $ 2,037      $ -          $ -
real estate
Home equity -     23           -            -            -            -
junior liens
Commercial and    2,166        2,534        7,783        1,004        -
industrial
Commercial real   7,324        8,019        5,770        1,793        -
estate
Consumer          703          693          864          -            -
DDA overdrafts    -            -            -            -            -       
Total past due  $ 11,248     $ 12,197     $ 16,454     $ 2,797      $ -       
loans
                                                                     
                Total
                September    June 30      March 31     December     September
                30                                     31           30
                2013         2013         2013         2012         2012
                                                                     
Residential     $ 6,446      $ 7,476      $ 7,926      $ 5,748      $ 4,909
real estate
Home equity -     755          655          858          2,893        2,643
junior liens
Commercial and    2,171        2,768        8,086        1,500        25
industrial
Commercial real   7,936        10,575       7,273        2,426        1,271
estate
Consumer          799          796          947          121          136
DDA overdrafts    280          290          337          281          319     
Total past due  $ 18,387     $ 22,560     $ 25,427     $ 12,969     $ 9,303   
loans
                                                                     
Total past due
loans as a
percent of        0.72   %     0.89   %     1.02   %     0.60   %     0.45   %
loans
outstanding
                                                                     
                                                                     
                                                                     
CITY HOLDING
COMPANY AND
SUBSIDIARIES
Summary of
Troubled Debt
Restructurings
(Unaudited) ($
in 000s)
                                                                     
                September    June 30      March 31     December     September
                30                                     31           30
                2013         2013         2013         2012         2012
                                                                     
Residential     $ 20,380     $ 21,480     $ 20,136     $ 18,988     $ 17,979
real estate
Home equity -     2,772        2,963        3,025        3,743        3,126
junior liens
Commercial and    91           95           101          101          -
industrial
Commercial real   1,567        1,791        1,805        734          227
estate
Consumer          -            -            142          142          144     
Total           $ 24,810     $ 26,329     $ 25,209     $ 23,708     $ 21,476  
                                                                     
                                                                     
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.

*Story too large*
CITY HOLDING
COMPANY AND                                                         
SUBSIDIARIES
Summary of Commercial Loans by Credit
Quality Indicator
(Unaudited)
($ in 000s)
                                                                      
              Commercial and Industrial
              September 30   June 30       March 31    December 31   September
                                                                     30
              2013           2013          2013        2012          2012
                                                                      
Pass          $  140,999     $ 123,406     $ 136,926   $  105,690    $ 101,798
Special          693           3,252         4,866        878          1,066
mention
Substandard      9,057         11,202        7,330        2,171        2,163
Doubtful         436           439           555          -            -
Total         $  151,185     $ 138,299     $ 149,677   $  108,739    $ 105,027
                                                                      
              Commercial Real Estate
              September 30   June 30       March 31    December 31   September
                                                                     30
              2013           2013          2013        2012          2012
                                                                      
Pass          $  939,942     $ 933,365     $ 911,280   $  771,617    $ 734,134
Special          23,123        30,769        34,554       15,015       15,831
mention
Substandard      58,720        58,661        53,295       35,338       37,922
Doubtful         493           516           2,324        -            -
Total         $  1,022,278   $ 1,023,311  

[TRUNCATED]
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