CHARLESTON, W.Va., July 27, 2012 /PRNewswire/ -- City Holding
Company, "the Company" (NASDAQ:CHCO), a $2.9
billion bank holding company headquartered in Charleston, today announced second quarter net
income per diluted share of $0.50 and
net income of $7.4 million. The
results for the second quarter of 2012 include $4.0 million, or $0.18 diluted per share on an after tax basis, of
acquisition and integration expenses related to the acquisition of
Virginia Savings Bancorp, Inc. For the second quarter of
2012, the Company achieved a return on assets of 1.06%, a return on
tangible equity of 11.2%, a net interest margin of 3.91%, and an
efficiency ratio of 66.5%. Excluding the acquisition and
integration expenses, the Company would have reported net income of
$10.0 million, a return on assets of
1.44%, a return on tangible equity of 15.3%, and an efficiency
ratio of 55.6% for the second quarter of
2012.
City's CEO Charles Hageboeck
stated that, "During the second quarter of 2012, we successfully
completed the acquisition of Virginia Savings Bancorp, Inc., which
expanded our footprint into Virginia. After purchase
accounting adjustments, the five branches of Virginia Savings
Bancorp, Inc. added approximately $123
million in deposits and $72
million in loans. Average loan balances have increased
$119 million from the second quarter
of 2011 exclusive of the loans acquired in the Virginia Savings
Bancorp, Inc. acquisition. Net interest income increased
$1.3 million from the second quarter
of 2011 primarily on the strength of loan growth and lower rates
paid on interest-bearing deposits. Loan growth and the impact
of the low interest rate environment on deposit pricing improved
our net margin from 3.78% for the second quarter of 2011 to 3.91%
for the second quarter of 2012. While our margin has remained
strong in recent quarters, new regulatory capital rules will cause
some higher yielding trust preferred securities to be called early
by issuers as these securities will no longer be treated as
regulatory capital for certain issuers. At June 30, 2012 the Company owned approximately
$77 million of these higher yielding
securities and we were notified that approximately $38 million of securities will be called in the
third quarter of 2012. Although we don't anticipate our
entire portfolio being called, our margin will be adversely
impacted by such calls.
"Our asset quality remains strong and steady.
Non-performing assets stood at 1.47% of total loans and other real
estate owned. Charge-offs for the second quarter of 2012
declined from prior quarters to $0.85
million and our provision expense for the quarter was
$1.7 million."
"Service fee revenues declined only $0.2
million from the second quarter of 2011 despite a change in
check processing order implemented during the fourth quarter of
2011. Additionally, our trust and investment management fee income
grew $0.2 million, or 29%, from the
second quarter of 2011 due to assets under management increasing
from $580 million at December 31, 2011 to $700
million at June 30, 2012,"
Hageboeck concluded.
Net Interest Income
The Company's tax equivalent net interest income increased
$0.3 million, or 1.3%, from
$23.7 million during the first
quarter of 2012 to $24.0 million
during the second quarter of 2012. This increase is due to
the acquisition of Virginia Savings Bancorp, Inc. as of
May 31, 2012. The Company's
reported net interest margin decreased from 3.98% for the quarter
ended March 31, 2012 to 3.91% for the
quarter ended June 30, 2012.
Credit Quality
The Company's ratio of non-performing assets to total loans and
other real estate owned remained stable at 1.47% at June 30, 2012 as compared to the prior
quarter. Past due loans were $10.7
million at June 30, 2011
(0.56% of total loans outstanding) and $11.6
million at June 30, 2012
(0.56% of total loans outstanding). Past due residential real
estate loans were $5.6 million or
0.80% of residential real estate loans outstanding at June 30, 2012; past due home equity loans were
$1.9 million or 0.42% of home equity
loans outstanding at June 30, 2012;
and past due commercial real estate loans were $3.1 million or 0.41% of commercial real estate
loans outstanding at June 30,
2012.
The Company had net charge-offs of $0.9
million for the second quarter of 2012, which primarily
consists of net charge-offs on residential real estate loans of
$0.3 million and home equity loans of
$0.3 million.
At June 30, 2012, the Allowance
for Loan Losses ("ALLL") was $19.5
million or 0.94% of total loans outstanding and 89% of
non-performing loans compared to $18.9
million or 1.00% of loans outstanding and 81% of
non-performing loans at June 30,
2011, and $19.4 million or
0.98% of loans outstanding and 88% of non-performing loans at
December 31, 2011.
As a result of the Company's quarterly analysis of the adequacy
of the ALLL, the Company recorded a provision for loan losses of
$1.7 million in the second quarter of
2012, compared to the $1.3 million
for the comparable period in 2011 and $2.0
million for the first quarter of 2012. 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.
Investment Securities Gains/(Losses)
During the second quarter of 2012, the Company sold certain
equity positions related to community banks and bank holding
companies and realized a $0.8 million
gain. This gain was partially offset by $0.3 million of credit-related net investment
impairment losses recorded by the Company during the second quarter
of 2012. The charges deemed to be other than temporary were
related to pooled bank trust preferreds with a remaining carrying
value of $3.3 million at June 30, 2012. The credit-related net
impairment charges were based on the Company's quarterly reviews of
its investment securities for indications of losses considered to
be other than temporary.
Non-interest Income
Exclusive of net investment gains, non-interest income decreased
$0.1 million to $13.3 million in the second quarter of 2012 as
compared to $13.4 million in the
second quarter of 2011. This decrease was primarily the
result of service charges decreasing $0.2
million, or 2.1%, to $9.6
million and insurance commissions decreasing $0.2 million, or 10.4%, to $1.3 million for the quarter ended June 30, 2012. These decreases were
partially offset by an increase of $0.2
million in trust and investment management fee income to
$0.9 for the quarter ended
June 30, 2012 and $0.1 million due to the acquisition of Virginia
Savings Bancorp, Inc.
Non-interest Expenses
During the second quarter of 2012, the Company completed its
acquisition of Virginia Savings Bancorp, Inc. and recognized
$4.0 million of acquisition and
integration expenses. In comparison, the Company recorded a
$3.0 million litigation reserve
accrual during the second quarter of 2011. Excluding these
expenses, non-interest expenses increased $0.8 million from $19.9
million in the second quarter of 2011 to $20.7 million in the second quarter of
2012. Repossessed asset losses increased $0.7 million due to the decline in estimated fair
value of a foreclosed property located in eastern panhandle of West
Virginia. The Company continually reevaluates the estimated
fair value of properties that it has repossessed by obtaining
updated appraisals on at least an annual basis. As a result
of this write-down, this foreclosed property is now valued at
approximately one half of its original cost. In addition,
salaries and employee benefits increased $0.5 million, other expenses increased
$0.3 million and $0.2 million due to the acquisition of Virginia
Savings Bancorp, Inc. These increases were partially offset
by a decrease of $0.5 million due to
lower FDIC insurance expense as a result of a change in the
assessment base methodology.
Balance Sheet Trends
Loans have increased $92.5 million
(4.7%) from December 31, 2011 to
$2.07 billion at June 30, 2012, primarily due to the Company's
acquisition of Virginia Savings Bancorp, Inc. ($72.0 million). Excluding the Virginia
Savings Bancorp, Inc. acquisition, loans have increased
$20.5 million (1.0%) from
December 31, 2011 to $1.99 billion at June
30, 2012. Increases in residential real estate loans
of $25.3 million (2.7%) and
commercial real estate loans of $14.8
million (2.0%) were partially offset by a decline in
commercial and industrial ("C&I") loans of $17.1 million.
Total average depository balances increased $64.1 million, or 2.8%, from the quarter ended
March 31, 2012 to the quarter ended
June 30, 2012. This growth was
primarily attributable to deposits acquired from Virginia Savings
Bancorp, Inc. ($40.9 million).
Exclusive of this contribution, increases in savings deposits
($15.5 million), noninterest-bearing
deposits ($16.9 million) and
interest-bearing deposits ($3.8
million), were partially offset by a decrease in time
deposits ($13.1
million).
Income Tax Expense
The Company's effective income tax rate for the second quarter
of 2012 was 33.8% compared to 33.6% for the year ended December 31, 2011, and 33.8% for the quarter
ended June 30, 2011. The
effective rate is based upon the Company's expected tax rate for
the year ending December 31,
2012.
Capitalization and Liquidity
The Company's loan to deposit ratio was 86.2% and the loan to
asset ratio was 71.4% at June 30,
2012. The Company maintained investment securities
totaling 14.1% of assets as of this date. The Company's
deposit mix is weighted heavily toward checking and saving accounts
that fund 50.6% of assets at June 30,
2012. Time deposits fund 32.2% of assets at
June 30, 2012, 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.
At June 30, 2012 the Company was
strongly capitalized. The Company's tangible equity ratio was 9.0%
at June 30, 2012 compared to 9.4% at
December 31, 2011. At
June 30, 2012, City National Bank's
Leverage Ratio was 8.95%, its Tier I Capital ratio was 11.45%, and
its Total Risk-Based Capital ratio was 12.38%. These
regulatory capital ratios are significantly above levels required
to be considered "well capitalized," which is the highest possible
regulatory designation.
On June 27, 2012, the Board
approved a quarterly cash dividend of $0.35
cents per share payable July 31,
2012, to shareholders of record as of July 13, 2012. During the quarter ended
June 30, 2012, the Company
repurchased 149,535 common shares at a weighted average price of
$32.40 as part of a one million share
repurchase plan authorized by the Board of Directors in July
2011. At June 30, 2012, the
Company could repurchase approximately 454,000 shares under the
July 2011 authorization.
City Holding Company is the parent company of City National Bank
of West Virginia. City National operates 73 branches across
West Virginia, Kentucky, Virginia 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; and (13) the effects of the Wall
Street Reform and Consumer Protection Act (the "Dodd-Frank Act")
recently adopted by the United States Congress. Forward-looking
statements made herein reflect management's expectations as of the
date such statements are made. 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,
2012 Form 10-Q. The Company will continue to evaluate
the impact of any subsequent events on the preliminary June 30, 2012 results and will adjust the amounts
if necessary.
CITY
HOLDING COMPANY AND SUBSIDIARIES
|
Financial Highlights
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three
Months Ended June 30,
|
Percent
|
|
2012
|
2011
|
Change
|
|
|
|
|
Earnings
($000s, except per share data):
|
|
|
|
Net
Interest Income (FTE)
|
$
24,039
|
$
22,760
|
5.62%
|
Net Income
available to common shareholders
|
7,413
|
9,830
|
(24.59)%
|
Earnings
per Basic Share
|
0.50
|
0.65
|
(22.40)%
|
Earnings
per Diluted Share
|
0.50
|
0.64
|
(22.45)%
|
|
|
|
|
|
|
|
|
Key Ratios
(percent):
|
|
|
|
Return on
Average Assets
|
1.06%
|
1.45%
|
(26.98)%
|
Return on
Average Tangible Equity
|
11.20%
|
15.21%
|
(26.33)%
|
Net
Interest Margin
|
3.91%
|
3.78%
|
3.57%
|
Efficiency
Ratio
|
66.45%
|
63.49%
|
4.66%
|
Average
Shareholders' Equity to Average Assets
|
11.47%
|
11.59%
|
(1.04)%
|
|
|
|
|
Consolidated Risk Based Capital Ratios
(a):
|
|
|
|
Tier
I
|
12.46%
|
13.42%
|
(7.15)%
|
Total
|
13.38%
|
14.37%
|
(6.89)%
|
|
|
|
|
Tangible
Equity to Tangible Assets
|
9.03%
|
9.56%
|
(5.50)%
|
|
|
|
|
|
|
|
|
Common
Stock Data:
|
|
|
|
Cash
Dividends Declared per Share
|
$
0.35
|
$
0.34
|
2.94%
|
Book Value
per Share
|
21.63
|
20.58
|
5.14%
|
Tangible
Book Value per Share
|
17.24
|
16.84
|
2.37%
|
Market
Value per Share:
|
|
|
|
High
|
35.62
|
36.37
|
(2.06)%
|
Low
|
30.96
|
30.55
|
1.34%
|
End of
Period
|
33.69
|
33.03
|
2.00%
|
|
|
|
|
Price/Earnings Ratio (b)
|
16.81
|
12.79
|
31.44%
|
|
|
|
|
|
Six
Months Ended June 30,
|
Percent
|
|
2012
|
2011
|
Change
|
|
|
|
|
Earnings
($000s, except per share data):
|
|
|
|
Net
Interest Income (FTE)
|
$
47,768
|
$
45,823
|
4.24%
|
Net Income
available to common shareholders
|
17,442
|
19,445
|
(10.30)%
|
Earnings
per Basic Share
|
1.18
|
1.27
|
(6.92)%
|
Earnings
per Diluted Share
|
1.17
|
1.26
|
(6.97)%
|
|
|
|
|
|
|
|
|
Key Ratios
(percent):
|
|
|
|
Return on
Average Assets
|
1.26%
|
1.44%
|
(12.75)%
|
Return on
Average Tangible Equity
|
13.30%
|
14.94%
|
(11.03)%
|
Net
Interest Margin
|
3.94%
|
3.86%
|
2.11%
|
Efficiency
Ratio
|
59.74%
|
59.61%
|
0.22%
|
Average
Shareholders' Equity to Average Assets
|
11.51%
|
11.75%
|
(2.01)%
|
|
|
|
|
|
|
|
|
Common
Stock Data:
|
|
|
|
Cash
Dividends Declared per Share
|
$
0.70
|
$
0.68
|
2.94%
|
Market
Value per Share:
|
|
|
|
High
|
37.16
|
37.22
|
(0.16)%
|
Low
|
30.96
|
30.55
|
1.34%
|
|
|
|
|
Price/Earnings Ratio (b)
|
14.29
|
13.04
|
9.58%
|
|
|
|
|
|
|
|
|
(a) June
30, 2012 risk-based capital ratios are estimated
|
|
|
(b) June
30, 2012 price/earnings ratio computed based on annualized second
quarter 2012 earnings
|
|
CITY
HOLDING COMPANY AND SUBSIDIARIES
|
Financial Highlights
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book
Value and Market Price Range per Share
|
|
|
|
|
|
|
|
|
Market
Price
|
|
Book
Value per Share
|
Range
per Share
|
|
March
31
|
June
30
|
September 30
|
December 31
|
Low
|
High
|
|
|
|
|
|
|
|
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
|
|
|
30.96
|
37.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Basic Share
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
March
31
|
June
30
|
September 30
|
December 31
|
Year-to-Date
|
|
|
|
|
|
|
|
|
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
|
|
|
1.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Diluted Share
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
March
31
|
June
30
|
September 30
|
December 31
|
Year-to-Date
|
|
|
|
|
|
|
|
|
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
|
|
|
1.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CITY
HOLDING COMPANY AND SUBSIDIARIES
|
|
|
|
Consolidated Statements of Income
|
|
|
|
(Unaudited) ($ in 000s, except per share
data)
|
|
|
|
|
|
|
|
|
Three Months Ended June
30,
|
|
2012
|
|
2011
|
|
|
|
|
Interest Income
|
|
|
|
Interest
and fees on loans
|
$
23,143
|
|
$
23,352
|
Interest
on investment securities:
|
|
|
|
Taxable
|
3,943
|
|
4,513
|
Tax-exempt
|
368
|
|
445
|
Interest
on federal funds sold
|
12
|
|
13
|
Total
Interest Income
|
27,466
|
|
28,323
|
|
|
|
|
Interest Expense
|
|
|
|
Interest
on deposits
|
3,383
|
|
5,568
|
Interest
on short-term borrowings
|
77
|
|
77
|
Interest
on long-term debt
|
165
|
|
158
|
Total
Interest Expense
|
3,625
|
|
5,803
|
Net
Interest Income
|
23,841
|
|
22,520
|
Provision
for loan losses
|
1,675
|
|
1,286
|
Net
Interest Income After Provision for Loan Losses
|
22,166
|
|
21,234
|
|
|
|
|
Non-Interest Income
|
|
|
|
Total
investment securities impairment losses
|
(606)
|
|
-
|
Noncredit
impairment losses recognized in other comprehensive
income
|
302
|
|
-
|
Net investment securities impairment
losses
|
(304)
|
|
-
|
Gains
(losses) on sale of investment securities
|
832
|
|
3,128
|
Net investment securities
(losses)
|
528
|
|
3,128
|
|
|
|
|
Service
charges
|
9,649
|
|
9,855
|
Insurance
commissions
|
1,347
|
|
1,504
|
Trust and
investment management fee income
|
942
|
|
730
|
Bank owned
life insurance
|
766
|
|
745
|
Other
income
|
558
|
|
575
|
Total
Non-Interest Income
|
13,790
|
|
16,537
|
|
|
|
|
Non-Interest Expense
|
|
|
|
Salaries
and employee benefits
|
10,668
|
|
10,183
|
Occupancy
and equipment
|
1,978
|
|
1,921
|
Depreciation
|
1,109
|
|
1,140
|
FDIC
insurance expense
|
394
|
|
932
|
Advertising
|
675
|
|
628
|
Bankcard
expenses
|
694
|
|
633
|
Postage,
delivery, and statement mailings
|
488
|
|
510
|
Office
supplies
|
396
|
|
452
|
Legal and
professional fees
|
421
|
|
3,511
|
Telecommunications
|
387
|
|
417
|
Repossessed asset (gains)/losses, net of
expenses
|
650
|
|
(7)
|
Merger
related expenses
|
4,042
|
|
-
|
Other
expenses
|
2,861
|
|
2,592
|
Total
Non-Interest Expense
|
24,763
|
|
22,912
|
Income
Before Income Taxes
|
11,193
|
|
14,859
|
Income tax
expense
|
3,780
|
|
5,029
|
Net
Income Available to Common Shareholders
|
$
7,413
|
|
$
9,830
|
|
|
|
|
|
|
|
|
Distributed earnings allocated to common
shareholders
|
$
5,146
|
|
$
5,092
|
Undistributed earnings allocated to common
shareholders
|
2,208
|
|
4,669
|
Net
earnings allocated to common shareholders
|
$
7,354
|
|
$
9,761
|
|
|
|
|
Average
common shares outstanding
|
14,680
|
|
15,120
|
Effect of
dilutive securities:
|
|
|
|
Employee
stock options
|
79
|
|
73
|
Shares for
diluted earnings per share
|
14,759
|
|
15,193
|
|
|
|
|
Basic
earnings per common share
|
$
0.50
|
|
$
0.65
|
Diluted
earnings per common share
|
$
0.50
|
|
$
0.64
|
Dividends
declared per common share
|
$
0.35
|
|
$
0.34
|
|
|
|
|
Comprehensive Income
|
$
6,673
|
|
$
9,896
|
CITY
HOLDING COMPANY AND SUBSIDIARIES
|
|
|
|
Consolidated Statements of Income
|
|
|
|
(Unaudited) ($ in 000s, except per share
data)
|
|
|
|
|
|
|
|
|
Six months ended June
30,
|
|
2012
|
|
2011
|
|
|
|
|
Interest Income
|
|
|
|
Interest
and fees on loans
|
$
46,210
|
|
$
47,090
|
Interest
on investment securities:
|
|
|
|
Taxable
|
7,907
|
|
9,055
|
Tax-exempt
|
755
|
|
907
|
Interest
on federal funds sold
|
23
|
|
26
|
Total
Interest Income
|
54,895
|
|
57,078
|
|
|
|
|
Interest Expense
|
|
|
|
Interest
on deposits
|
7,051
|
|
11,279
|
Interest
on short-term borrowings
|
150
|
|
149
|
Interest
on long-term debt
|
333
|
|
315
|
Total
Interest Expense
|
7,534
|
|
11,743
|
Net
Interest Income
|
47,361
|
|
45,335
|
Provision
for loan losses
|
3,625
|
|
2,372
|
Net
Interest Income After Provision for Loan Losses
|
43,736
|
|
42,963
|
|
|
|
|
Non-Interest Income
|
|
|
|
Total
investment securities impairment losses
|
(606)
|
|
-
|
Noncredit
impairment losses recognized in other comprehensive
income
|
302
|
|
-
|
Net investment securities impairment
losses
|
(304)
|
|
-
|
Gains on
sale of investment securities
|
801
|
|
3,128
|
Net investment securities gains
(losses)
|
497
|
|
3,128
|
|
|
|
|
Service
charges
|
18,739
|
|
18,909
|
Insurance
commissions
|
3,343
|
|
3,125
|
Trust and
investment management fee income
|
1,749
|
|
1,483
|
Bank owned
life insurance
|
1,489
|
|
1,503
|
Other
income
|
1,091
|
|
1,051
|
Total
Non-Interest Income
|
26,908
|
|
29,199
|
|
|
|
|
Non-Interest Expense
|
|
|
|
Salaries
and employee benefits
|
20,913
|
|
20,095
|
Occupancy
and equipment
|
3,913
|
|
4,027
|
Depreciation
|
2,195
|
|
2,276
|
FDIC
insurance expense
|
779
|
|
1,884
|
Advertising
|
1,319
|
|
1,308
|
Bankcard
expenses
|
1,314
|
|
1,134
|
Postage,
delivery, and statement mailings
|
1,036
|
|
1,064
|
Office
supplies
|
851
|
|
991
|
Legal and
professional fees
|
738
|
|
3,980
|
Telecommunications
|
776
|
|
846
|
Repossessed asset losses, net of expenses
|
771
|
|
191
|
Merger
related expenses
|
4,177
|
|
-
|
Other
expenses
|
5,496
|
|
4,974
|
Total
Non-Interest Expense
|
44,278
|
|
42,770
|
Income
Before Income Taxes
|
26,366
|
|
29,392
|
Income tax
expense
|
8,924
|
|
9,947
|
Net
Income Available to Common Shareholders
|
$
17,442
|
|
$
19,445
|
|
|
|
|
|
|
|
|
Distributed earnings allocated to common
shareholders
|
$
10,291
|
|
$
10,184
|
|
|
|
|
Undistributed earnings allocated to common
shareholders
|
7,011
|
|
9,123
|
|
|
|
|
Net
earnings allocated to common shareholders
|
$
17,302
|
|
$
19,307
|
|
|
|
|
Average
common shares outstanding
|
14,676
|
|
15,244
|
|
|
|
|
Effect of
dilutive securities:
|
|
|
|
Employee
stock options
|
84
|
|
78
|
|
|
|
|
Shares for
diluted earnings per share
|
14,760
|
|
15,322
|
|
|
|
|
Basic
earnings per common share
|
$
1.18
|
|
$
1.27
|
Diluted
earnings per common share
|
$
1.17
|
|
$
1.26
|
Dividends
declared per common share
|
$
0.70
|
|
$
0.68
|
|
|
|
|
Comprehensive Income
|
$
18,872
|
|
$
20,104
|
CITY
HOLDING COMPANY AND SUBSIDIARIES
|
|
|
Consolidated Statements of Changes in
Stockholders' Equity
|
|
(Unaudited) ($ in 000s)
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
June
30, 2012
|
June
30, 2011
|
|
|
|
Balance
at April 1
|
$
316,046
|
$
311,122
|
|
|
|
Net
income
|
7,413
|
9,830
|
Other
comprehensive income:
|
|
|
Change in
unrealized (loss) gain on securities available-for-sale
|
(740)
|
165
|
Change in
unrealized (loss) on interest rate floors
|
-
|
(99)
|
Cash
dividends declared ($0.35/share) and ($0.34/share),
respectively
|
(5,188)
|
(5,129)
|
Issuance
of stock award shares, net
|
213
|
202
|
Acquisition of Virginia Savings Bancorp
|
7,723
|
-
|
Purchase
of 149,535 common shares of treasury
|
(4,845)
|
-
|
Purchase
of 176,779 common shares of treasury
|
-
|
(5,712)
|
Balance
at June 30
|
$
320,622
|
$
310,379
|
|
|
|
|
|
|
|
|
|
|
Six
Months Ended
|
|
June
30, 2012
|
June
30, 2011
|
|
|
|
Balance
at January 1
|
$
311,134
|
$
314,861
|
|
|
|
Net
income
|
17,442
|
19,445
|
Other
comprehensive income:
|
|
|
Change in
unrealized gain on securities available-for-sale
|
1,430
|
954
|
Change in
unrealized (loss) on interest rate floors
|
-
|
(295)
|
Cash
dividends declared ($0.70/share) and ($0.68/share),
respectively
|
(10,335)
|
(10,320)
|
Issuance
of stock award shares, net
|
655
|
666
|
Acquisition of Virginia Savings Bancorp
|
7,723
|
-
|
Exercise
of 16,899 stock options
|
488
|
-
|
Exercise
of 5,476 stock options
|
-
|
153
|
Purchase
of 237,535 common shares of treasury
|
(7,915)
|
-
|
Purchase
of 447,524 common shares of treasury
|
-
|
(15,085)
|
Balance
at June 30
|
$
320,622
|
$
310,379
|
|
|
|
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
|
|
|
2012
|
2012
|
2011
|
2011
|
2011
|
|
|
|
|
|
|
|
Interest
income
|
|
$
27,466
|
$
27,430
|
$
27,441
|
$
28,370
|
$
28,323
|
Taxable
equivalent adjustment
|
|
198
|
208
|
215
|
212
|
240
|
Interest
income (FTE)
|
|
27,664
|
27,638
|
27,656
|
28,582
|
28,563
|
Interest
expense
|
|
3,625
|
3,908
|
4,216
|
4,799
|
5,803
|
Net
interest income
|
|
24,039
|
23,730
|
23,440
|
23,783
|
22,760
|
Provision
for loan losses
|
|
1,675
|
1,950
|
2,229
|
-
|
1,286
|
Net
interest income after provision
|
|
|
|
|
|
|
for loan
losses
|
|
22,364
|
21,780
|
21,211
|
23,783
|
21,474
|
|
|
|
|
|
|
|
Noninterest income
|
|
13,790
|
13,118
|
12,128
|
13,531
|
16,537
|
Noninterest expense
|
|
24,763
|
19,515
|
18,685
|
19,688
|
22,912
|
Income
before income taxes
|
|
11,391
|
15,383
|
14,654
|
17,626
|
15,099
|
Income tax
expense
|
|
3,780
|
5,144
|
4,787
|
5,837
|
5,029
|
Taxable
equivalent adjustment
|
|
198
|
208
|
215
|
212
|
240
|
Net income
available to common shareholders
|
|
$
7,413
|
$
10,031
|
$
9,652
|
$
11,577
|
$
9,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributed earnings allocated to common
shareholders
|
|
$
5,146
|
$
5,118
|
$
5,136
|
$
5,015
|
$
5,092
|
Undistributed earnings allocated to common
shareholders
|
|
2,208
|
4,837
|
4,446
|
6,479
|
4,669
|
Net
earnings allocated to common shareholders
|
|
$
7,354
|
$
9,955
|
$
9,582
|
$
11,494
|
$
9,761
|
|
|
|
|
|
|
|
Average
common shares outstanding
|
|
14,680
|
14,679
|
14,743
|
15,003
|
15,120
|
|
|
|
|
|
|
|
Effect of
dilutive securities:
|
|
|
|
|
|
|
Employee
stock options
|
|
79
|
80
|
71
|
68
|
73
|
|
|
|
|
|
|
|
Shares for
diluted earnings per share
|
|
14,759
|
14,759
|
14,814
|
15,071
|
15,193
|
|
|
|
|
|
|
|
Basic
earnings per common share
|
|
$
0.50
|
$
0.68
|
$
0.65
|
$
0.77
|
$
0.65
|
Diluted
earnings per common share
|
|
0.50
|
0.67
|
0.65
|
0.76
|
0.64
|
|
|
|
|
|
|
|
Cash
dividends declared per share
|
|
0.35
|
0.35
|
0.35
|
0.34
|
0.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Interest Margin
|
|
3.91%
|
3.98%
|
3.90%
|
3.93%
|
3.78%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CITY
HOLDING COMPANY AND SUBSIDIARIES
|
Non-Interest Income and Non-Interest
Expense
|
(Unaudited) ($ in 000s)
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
June
30
|
March
31
|
December 31
|
September 30
|
June
30
|
|
2012
|
2012
|
2011
|
2011
|
2011
|
|
|
|
|
|
|
Non-Interest Income:
|
|
|
|
|
|
Service
charges
|
$
9,649
|
$
9,090
|
$
9,360
|
$
9,840
|
$
9,855
|
Insurance
commissions
|
1,347
|
1,996
|
1,433
|
1,388
|
1,504
|
Trust and
investment management fee income
|
942
|
807
|
925
|
699
|
730
|
Bank owned
life insurance
|
766
|
723
|
728
|
952
|
745
|
Other
income
|
558
|
533
|
599
|
380
|
575
|
Subtotal
|
13,262
|
13,149
|
13,045
|
13,259
|
13,409
|
Total
investment securities impairment losses
|
(606)
|
-
|
(918)
|
(1,849)
|
-
|
Noncredit
impairment losses recognized in other
|
|
|
|
|
|
comprehensive income
|
302
|
-
|
-
|
1,494
|
-
|
Net
investment securities impairment losses
|
(304)
|
-
|
(918)
|
(355)
|
-
|
Gain
(loss) on sale of investment securities
|
832
|
(31)
|
1
|
627
|
3,128
|
Total
Non-Interest Income
|
$
13,790
|
$
13,118
|
$
12,128
|
$
13,531
|
$
16,537
|
|
|
|
|
|
|
Non-Interest Expense:
|
|
|
|
|
|
Salaries
and employee benefits
|
$
10,668
|
$
10,245
|
$
10,320
|
$
10,302
|
$
10,183
|
Occupancy
and equipment
|
1,978
|
1,935
|
1,929
|
2,057
|
1,921
|
Depreciation
|
1,109
|
1,086
|
1,100
|
1,131
|
1,140
|
FDIC
insurance expense
|
394
|
385
|
300
|
392
|
932
|
Advertising
|
675
|
644
|
153
|
546
|
628
|
Bankcard
expenses
|
694
|
620
|
566
|
559
|
633
|
Postage,
delivery and statement mailings
|
488
|
548
|
484
|
551
|
510
|
Office
supplies
|
396
|
455
|
429
|
492
|
452
|
Legal and
professional fees
|
421
|
317
|
366
|
567
|
3,511
|
Telecommunications
|
387
|
389
|
388
|
371
|
417
|
Repossessed asset (gains) losses, net of
expenses
|
650
|
121
|
(27)
|
109
|
(7)
|
Merger
related expenses
|
4,042
|
135
|
-
|
-
|
-
|
Other
expenses
|
2,861
|
2,635
|
2,677
|
2,611
|
2,592
|
Total
Non-Interest Expense
|
$
24,763
|
$
19,515
|
$
18,685
|
$
19,688
|
$
22,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees
(Full Time Equivalent)
|
831
|
797
|
795
|
792
|
795
|
Branch
Locations
|
73
|
68
|
68
|
68
|
68
|
|
|
|
|
|
|
|
|
|
|
|
|
CITY
HOLDING COMPANY AND SUBSIDIARIES
|
Consolidated Balance Sheets
|
($ in
000s)
|
|
June
30
|
December 31
|
|
2012
|
2011
|
|
(Unaudited)
|
|
Assets
|
|
|
Cash and
due from banks
|
$
90,630
|
$
140,873
|
Interest-bearing deposits in depository
institutions
|
8,410
|
5,526
|
Federal
funds sold
|
35,000
|
-
|
Cash
and cash equivalents
|
134,040
|
146,399
|
|
|
|
Investment
securities available-for-sale, at fair value
|
376,891
|
360,783
|
Investment
securities held-to-maturity, at amortized cost
|
19,319
|
23,458
|
Other
securities
|
11,686
|
11,934
|
Total
investment securities
|
407,896
|
396,175
|
|
|
|
Gross
loans
|
2,065,589
|
1,973,103
|
Allowance
for loan losses
|
(19,452)
|
(19,409)
|
Net
loans
|
2,046,137
|
1,953,694
|
|
|
|
Bank owned
life insurance
|
80,407
|
78,961
|
Premises
and equipment, net
|
72,516
|
64,612
|
Accrued
interest receivable
|
7,090
|
7,093
|
Net
deferred tax assets
|
34,716
|
32,219
|
Intangible
assets
|
65,162
|
56,164
|
Other
assets
|
45,502
|
41,792
|
Total
Assets
|
$
2,893,466
|
$
2,777,109
|
|
|
|
Liabilities
|
|
|
Deposits:
|
|
|
Noninterest-bearing
|
$
421,664
|
$
369,025
|
Interest-bearing:
|
|
|
Demand
deposits
|
543,623
|
526,824
|
Savings
deposits
|
498,815
|
439,823
|
Time
deposits
|
931,278
|
885,596
|
Total
deposits
|
2,395,380
|
2,221,268
|
Short-term
borrowings
|
|
|
Federal
Funds purchased
|
-
|
75,000
|
Customer
repurchase agreements
|
123,074
|
114,050
|
Long-term
debt
|
16,495
|
16,495
|
Other
liabilities
|
37,895
|
39,162
|
Total
Liabilities
|
2,572,844
|
2,465,975
|
|
|
|
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, 2012 and December 31, 2011
|
|
|
less 3,678,649 and 3,717,993
shares in treasury, respectively
|
46,249
|
46,249
|
Capital
surplus
|
103,449
|
103,335
|
Retained
earnings
|
298,155
|
291,050
|
Cost of
common stock in treasury
|
(124,754)
|
(125,593)
|
Accumulated other comprehensive loss:
|
|
|
Unrealized
gain on securities available-for-sale
|
2,255
|
825
|
Underfunded pension liability
|
(4,732)
|
(4,732)
|
Total
Accumulated Other Comprehensive Loss
|
(2,477)
|
(3,907)
|
Total
Stockholders' Equity
|
320,622
|
311,134
|
Total
Liabilities and Stockholders' Equity
|
$
2,893,466
|
$
2,777,109
|
|
|
|
CITY
HOLDING COMPANY AND SUBSIDIARIES
|
Investment Portfolio
|
(Unaudited) ($ in 000s)
|
|
|
|
|
|
|
|
|
|
Original Cost
|
|
Credit-Related Net Investment Impairment Losses
through June 30, 2012
|
|
Unrealized Gains (Losses)
|
|
Carrying Value
|
|
|
|
|
|
|
|
|
US
Government Agencies
|
$
5,331
|
|
$
-
|
|
$
119
|
|
$
5,450
|
Mortgage
Backed Securities
|
243,939
|
|
-
|
|
7,111
|
|
251,050
|
Municipal
Bonds
|
52,197
|
|
-
|
|
1,736
|
|
53,933
|
Pooled
Bank Trust Preferreds
|
27,035
|
|
(19,900)
|
|
(3,843)
|
|
3,292
|
Single
Issuer Bank Trust Preferreds,
|
|
|
|
|
|
|
|
Subdebt of
Financial Institutions, and
|
|
|
|
|
|
|
|
Bank
Holding Company Preferred Stocks
|
79,227
|
|
(1,015)
|
|
(1,522)
|
|
76,690
|
Money
Markets and Mutual Funds
|
1,724
|
|
-
|
|
56
|
|
1,780
|
Federal
Reserve Bank and FHLB stock
|
11,686
|
|
-
|
|
-
|
|
11,686
|
Community
Bank Equity Positions
|
9,368
|
|
(5,263)
|
|
(90)
|
|
4,015
|
Total
Investments
|
$
430,507
|
|
$
(26,178)
|
|
$
3,567
|
|
$
407,896
|
|
|
|
|
|
|
|
|
CITY
HOLDING COMPANY AND SUBSIDIARIES
|
Loan
Portfolio
|
(Unaudited) ($ in 000s)
|
|
|
|
|
|
|
|
June
30
|
March
31
|
December 31
|
September 30
|
June
30
|
|
2012
|
2012
|
2011
|
2011
|
2011
|
|
|
|
|
|
|
Residential real estate (1)
|
$
997,016
|
$
939,611
|
$
929,788
|
$
916,122
|
$
902,846
|
Home
equity - junior liens (including lines of credit)
|
143,400
|
139,764
|
141,797
|
142,028
|
140,024
|
Commercial
and industrial
|
116,288
|
108,707
|
130,899
|
119,377
|
121,149
|
Commercial
real estate (2)
|
768,176
|
745,586
|
732,146
|
708,558
|
693,959
|
Consumer
|
37,383
|
35,448
|
35,845
|
36,575
|
36,626
|
DDA
overdrafts
|
3,326
|
2,848
|
2,628
|
2,924
|
2,415
|
Previously
securitized loans
|
-
|
-
|
-
|
214
|
325
|
Gross
Loans
|
$
2,065,589
|
$
1,971,964
|
$
1,973,103
|
$
1,925,798
|
$
1,897,344
|
|
|
|
|
|
|
Construction loans included in:
|
|
|
|
|
|
(1)- Residential real estate
loans
|
$
11,919
|
$
11,613
|
$
9,287
|
$
7,456
|
$
6,879
|
(2)- Commercial real estate
loans
|
$
18,544
|
$
20,661
|
$
20,201
|
$
23,915
|
$
23,433
|
CITY
HOLDING COMPANY AND SUBSIDIARIES
|
Consolidated Average Balance Sheets, Yields, and
Rates
|
(Unaudited) ($ in 000s)
|
|
|
|
|
|
|
|
|
Three
Months Ended June 30,
|
|
|
2012
|
|
|
2011
|
|
|
Average
|
|
Yield/
|
Average
|
|
Yield/
|
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
Loan
portfolio (1):
|
|
|
|
|
|
|
Residential real estate (2)
|
$
1,096,164
|
$
11,904
|
4.37%
|
$
1,031,768
|
$
12,307
|
4.78%
|
Commercial, financial, and agriculture
(3)
|
876,678
|
9,742
|
4.47%
|
797,909
|
9,440
|
4.75%
|
Installment loans to individuals
(4)
|
46,439
|
751
|
6.50%
|
46,427
|
852
|
7.36%
|
Previously
securitized loans (5)
|
***
|
746
|
***
|
426
|
753
|
708.98%
|
Total
loans
|
2,019,281
|
23,143
|
4.61%
|
1,876,530
|
23,352
|
4.99%
|
Securities:
|
|
|
|
|
|
|
Taxable
|
378,656
|
3,943
|
4.19%
|
449,006
|
4,513
|
4.03%
|
Tax-exempt
(6)
|
39,678
|
566
|
5.74%
|
48,351
|
685
|
5.68%
|
Total
securities
|
418,334
|
4,509
|
4.34%
|
497,357
|
5,198
|
4.19%
|
Deposits
in depository institutions
|
8,863
|
-
|
-
|
7,298
|
-
|
-
|
Federal
funds sold
|
24,212
|
12
|
0.20%
|
35,000
|
13
|
0.15%
|
Total
interest-earning assets
|
2,470,690
|
27,664
|
4.50%
|
2,416,185
|
28,563
|
4.74%
|
Cash and
due from banks
|
70,858
|
|
|
52,867
|
|
|
Bank
premises and equipment
|
68,936
|
|
|
64,432
|
|
|
Other
assets
|
215,692
|
|
|
203,262
|
|
|
Less: Allowance for loan
losses
|
(19,179)
|
|
|
(18,797)
|
|
|
Total
assets
|
$
2,806,997
|
|
|
$
2,717,949
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
Interest-bearing demand deposits
|
533,666
|
173
|
0.13%
|
489,876
|
243
|
0.20%
|
Savings
deposits
|
474,976
|
184
|
0.16%
|
417,453
|
273
|
0.26%
|
Time
deposits
|
895,921
|
3,026
|
1.36%
|
960,187
|
5,052
|
2.11%
|
Short-term
borrowings
|
121,424
|
77
|
0.26%
|
120,139
|
77
|
0.26%
|
Long-term
debt
|
16,495
|
165
|
4.02%
|
16,495
|
158
|
3.84%
|
Total interest-bearing
liabilities
|
2,042,482
|
3,625
|
0.71%
|
2,004,150
|
5,803
|
1.16%
|
Noninterest-bearing demand deposits
|
413,709
|
|
|
379,129
|
|
|
Other
liabilities
|
28,921
|
|
|
19,707
|
|
|
Stockholders' equity
|
321,885
|
|
|
314,963
|
|
|
Total
liabilities and
|
|
|
|
|
|
|
stockholders' equity
|
$
2,806,997
|
|
|
$
2,717,949
|
|
|
Net
interest income
|
|
$
24,039
|
|
|
$
22,760
|
|
Net
yield on earning assets
|
|
|
3.91%
|
|
|
3.78%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 includes $0 and $154 from interest rate floors for
the three months ended June 30, 2012 and June 30, 2011,
respectively.
|
(3)
Includes the Company's commercial and industrial and commercial
real estate loan categories. Interest income includes $0 and
$242 from interest rate floors for the three months ended June 30,
2012 and June 30, 2011, respectively.
|
(4)
Includes the Company's consumer and DDA overdrafts loan
categories.
|
(5)
Effective January 1, 2012, the carrying value of the Company's
previously securitized loans was reduced to $0.
|
(6)Computed on a fully federal tax-equivalent basis
assuming a tax rate of approximately 35%.
|
CITY
HOLDING COMPANY AND SUBSIDIARIES
|
Consolidated Average Balance Sheets, Yields, and
Rates
|
(Unaudited) ($ in 000s)
|
|
|
|
|
|
|
|
|
Six
Months Ended June 30,
|
|
|
2012
|
|
|
2011
|
|
|
Average
|
|
Yield/
|
Average
|
|
Yield/
|
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
Loan
portfolio (1):
|
|
|
|
|
|
|
Residential real estate (2)
|
$
1,082,038
|
$
23,731
|
4.41%
|
$
1,027,566
|
$
24,851
|
4.88%
|
Commercial, financial, and agriculture
(3)
|
869,782
|
19,326
|
4.47%
|
795,238
|
18,917
|
4.80%
|
Installment loans to individuals
(4)
|
44,060
|
1,521
|
6.94%
|
45,841
|
1,664
|
7.32%
|
Previously
securitized loans (5)
|
***
|
1,632
|
***
|
541
|
1,658
|
618.02%
|
Total
loans
|
1,995,880
|
46,210
|
4.66%
|
1,869,186
|
47,090
|
5.08%
|
Securities:
|
|
|
|
|
|
|
Taxable
|
365,233
|
7,907
|
4.35%
|
434,624
|
9,055
|
4.20%
|
Tax-exempt
(6)
|
40,397
|
1,162
|
5.78%
|
49,532
|
1,395
|
5.68%
|
Total
securities
|
405,630
|
9,069
|
4.50%
|
484,156
|
10,450
|
4.35%
|
Deposits
in depository institutions
|
8,225
|
-
|
-
|
7,976
|
-
|
-
|
Federal
funds sold
|
25,837
|
23
|
0.18%
|
30,913
|
26
|
0.17%
|
Total
interest-earning assets
|
2,435,572
|
55,302
|
4.57%
|
2,392,231
|
57,566
|
4.85%
|
Cash and
due from banks
|
73,171
|
|
|
54,653
|
|
|
Bank
premises and equipment
|
66,841
|
|
|
64,387
|
|
|
Other
assets
|
216,033
|
|
|
203,875
|
|
|
Less: Allowance for loan
losses
|
(19,452)
|
|
|
(18,677)
|
|
|
Total
assets
|
$
2,772,165
|
|
|
$
2,696,469
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
Interest-bearing demand deposits
|
528,714
|
351
|
0.13%
|
487,553
|
487
|
0.20%
|
Savings
deposits
|
461,705
|
372
|
0.16%
|
409,818
|
530
|
0.26%
|
Time
deposits
|
892,516
|
6,328
|
1.43%
|
956,430
|
10,262
|
2.16%
|
Short-term
borrowings
|
117,685
|
150
|
0.26%
|
115,690
|
149
|
0.26%
|
Long-term
debt
|
16,495
|
333
|
4.06%
|
16,495
|
315
|
3.85%
|
Total interest-bearing
liabilities
|
2,017,115
|
7,534
|
0.75%
|
1,985,986
|
11,743
|
1.19%
|
Noninterest-bearing demand deposits
|
403,305
|
|
|
374,270
|
|
|
Other
liabilities
|
32,676
|
|
|
19,494
|
|
|
Stockholders' equity
|
319,069
|
|
|
316,719
|
|
|
Total
liabilities and
|
|
|
|
|
|
|
stockholders' equity
|
$
2,772,165
|
|
|
$
2,696,469
|
|
|
Net
interest income
|
|
$
47,768
|
|
|
$
45,823
|
|
Net
yield on earning assets
|
|
|
3.94%
|
|
|
3.86%
|
|
|
|
|
|
|
|
(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 includes $0 and $632 from interest rate floors for
the six months ended June 30, 2012 and June 30, 2011,
respectively.
|
(3)
Includes the Company's commercial and industrial and commercial
real estate loan categories. Interest income includes $0 and
$488 from interest rate floors for the six months ended June 30,
2012 and June 30, 2011, respectively.
|
(4)
Includes the Company's consumer and DDA overdrafts loan
categories.
|
(5)
Effective January 1, 2012, the carrying value of the Company's
previously securitized loans was reduced to $0.
|
(6)Computed on a fully federal tax-equivalent basis
assuming a tax rate of approximately 35%.
|
CITY
HOLDING COMPANY AND SUBSIDIARIES
|
Analysis of Risk-Based Capital
|
(Unaudited) ($ in 000s)
|
|
|
|
|
|
|
|
June
30
|
March
31
|
December 31
|
September 30
|
June
30
|
|
2012
(a)
|
2012
|
2011
|
2011
|
2011
|
|
|
|
|
|
|
Tier I
Capital:
|
|
|
|
|
|
Stockholders' equity
|
$
320,622
|
$
316,046
|
$
311,134
|
$
309,892
|
$
310,379
|
Goodwill
and other intangibles
|
(64,971)
|
(55,871)
|
(55,969)
|
(56,071)
|
(56,173)
|
Accumulated other comprehensive loss
(income)
|
2,477
|
1,737
|
3,907
|
2,701
|
1,838
|
Qualifying
trust preferred stock
|
16,000
|
16,000
|
16,000
|
16,000
|
16,000
|
Unrealized
loss on AFS securities
|
-
|
-
|
(448)
|
(1,081)
|
(82)
|
Excess
deferred tax assets
|
(7,847)
|
(4,020)
|
(5,897)
|
(5,435)
|
(4,462)
|
Total tier
I capital
|
$
266,282
|
$
273,892
|
$
268,727
|
$
266,007
|
$
267,500
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Risk-Based Capital:
|
|
|
|
|
|
Tier I
capital
|
$
266,282
|
$
273,892
|
$
268,727
|
$
266,007
|
$
267,500
|
Qualifying
allowance for loan losses
|
19,452
|
18,628
|
19,409
|
19,848
|
18,944
|
Total
risk-based capital
|
$
285,734
|
$
292,520
|
$
288,136
|
$
285,855
|
$
286,444
|
|
|
|
|
|
|
Net
risk-weighted assets
|
$
2,136,249
|
$
2,050,520
|
$
2,048,398
|
$
2,013,294
|
$
1,993,003
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios:
|
|
|
|
|
|
Average
stockholders' equity to average assets
|
11.47%
|
11.55%
|
11.65%
|
11.67%
|
11.59%
|
Tangible
capital ratio
|
9.03%
|
9.54%
|
9.37%
|
9.65%
|
9.56%
|
Risk-based
capital ratios:
|
|
|
|
|
|
Tier I
capital
|
12.46%
|
13.36%
|
13.12%
|
13.21%
|
13.42%
|
Total
risk-based capital
|
13.38%
|
14.27%
|
14.07%
|
14.20%
|
14.37%
|
Leverage
capital
|
9.74%
|
10.23%
|
10.18%
|
10.04%
|
10.07%
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) June
30, 2012 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
|
|
2012
|
2012
|
2011
|
2011
|
2011
|
|
|
|
|
|
|
Intangibles, net
|
$
65,162
|
$
56,066
|
$
56,164
|
$
56,266
|
$
56,368
|
Intangibles amortization expense
|
109
|
98
|
102
|
102
|
103
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
2012
|
2012
|
2011
|
2011
|
2011
|
|
|
|
|
|
|
Balance at
beginning of period
|
$
18,628
|
$
19,409
|
$
19,848
|
$
18,944
|
$
18,414
|
|
|
|
|
|
|
Charge-offs:
|
|
|
|
|
|
Commercial
and industrial
|
48
|
69
|
247
|
200
|
-
|
Commercial
real estate
|
27
|
1,988
|
1,650
|
141
|
166
|
Residential real estate
|
296
|
198
|
176
|
264
|
377
|
Home
equity
|
347
|
509
|
475
|
209
|
168
|
Consumer
|
36
|
59
|
31
|
75
|
14
|
DDA
overdrafts
|
375
|
335
|
394
|
492
|
392
|
Total
charge-offs
|
1,129
|
3,158
|
2,973
|
1,381
|
1,117
|
|
|
|
|
|
|
Recoveries:
|
|
|
|
|
|
Commercial
and industrial
|
-
|
2
|
15
|
2
|
3
|
Commercial
real estate
|
1
|
96
|
-
|
1,954
|
26
|
Residential real estate
|
3
|
4
|
10
|
1
|
12
|
Home
equity
|
10
|
1
|
1
|
1
|
4
|
Consumer
|
35
|
29
|
29
|
58
|
11
|
DDA
overdrafts
|
229
|
295
|
250
|
269
|
305
|
Total
recoveries
|
278
|
427
|
305
|
2,285
|
361
|
|
|
|
|
|
|
Net
charge-offs
|
851
|
2,731
|
2,668
|
(904)
|
756
|
Provision
for loan losses
|
1,675
|
1,950
|
2,229
|
-
|
1,286
|
Balance
at end of period
|
$
19,452
|
$
18,628
|
$
19,409
|
$
19,848
|
$
18,944
|
|
|
|
|
|
|
Loans
outstanding
|
$
2,065,589
|
$
1,971,964
|
$
1,973,103
|
$
1,925,798
|
$
1,897,344
|
Average
loans outstanding
|
2,019,281
|
1,972,478
|
1,940,950
|
1,917,246
|
1,876,530
|
Allowance
as a percent of loans outstanding
|
0.94%
|
0.94%
|
0.98%
|
1.03%
|
1.00%
|
Allowance
as a percent of non-performing loans
|
88.92%
|
88.78%
|
87.76%
|
87.27%
|
81.08%
|
Net
charge-offs (annualized) as a
|
|
|
|
|
|
percent of
average loans outstanding
|
0.17%
|
0.55%
|
0.55%
|
(0.19)%
|
0.16%
|
Net
charge-offs, excluding overdraft deposit
|
|
|
|
|
|
accounts,
(annualized) as a percent of average loans outstanding
|
0.14%
|
0.55%
|
0.52%
|
(0.24)%
|
0.14%
|
|
|
|
|
|
|
CITY
HOLDING COMPANY AND SUBSIDIARIES
|
Summary
of Non-Performing Assets
|
(Unaudited) ($ in 000s)
|
|
|
|
|
|
|
|
June
30
|
March
31
|
December 31
|
September 30
|
June
30
|
|
2012
|
2012
|
2011
|
2011
|
2011
|
|
|
|
|
|
|
Nonaccrual
loans
|
$
21,726
|
$
20,420
|
$
21,951
|
$
22,423
|
$
23,178
|
Accruing
loans past due 90 days or more
|
149
|
562
|
166
|
320
|
188
|
Total
non-performing loans
|
21,875
|
20,982
|
22,117
|
22,743
|
23,366
|
Other
real estate owned
|
8,697
|
8,250
|
7,948
|
8,273
|
7,999
|
Total
non-performing assets
|
$
30,572
|
$
29,232
|
$
30,065
|
$
31,016
|
$
31,365
|
|
|
|
|
|
|
Non-performing assets as a percent of loans
and
|
|
|
|
|
|
other real
estate owned
|
1.47%
|
1.48%
|
1.52%
|
1.60%
|
1.65%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CITY
HOLDING COMPANY AND SUBSIDIARIES
|
Summary
of Total Past Due Loans
|
(Unaudited) ($ in 000s)
|
|
|
|
|
|
|
|
June
30
|
March
31
|
December 31
|
September 30
|
June
30
|
|
2012
|
2012
|
2011
|
2011
|
2011
|
|
|
|
|
|
|
Residential real estate
|
$
5,575
|
$
4,108
|
$
5,362
|
$
4,569
|
$
4,971
|
Home
equity
|
1,864
|
1,560
|
2,246
|
2,425
|
2,299
|
Commercial
and industrial
|
540
|
63
|
1,243
|
37
|
476
|
Commercial
real estate
|
3,145
|
2,636
|
3,415
|
2,423
|
2,186
|
Consumer
|
90
|
58
|
138
|
112
|
185
|
Previously
securitized loans
|
-
|
-
|
-
|
403
|
305
|
DDA
overdrafts
|
364
|
304
|
909
|
614
|
279
|
Total
past due loans
|
$
11,578
|
$
8,729
|
$
13,313
|
$
10,583
|
$
10,701
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE City Holding Company