CITY HOLDING COMPANY 
By CHARLESTON, W.Va., Jan. 24, 2011 /PRNewswire/ -- City Holding Company, "the Company" (Nasdaq: CHCO), a $2.6 billion bank holding company headquartered in Charleston, today reported financial results for the year ended December 31, 2010. The Company's earnings remained strong while loans and deposits continued to grow as evidenced by a $72.6 million (4.1%) increase in the Company's loan portfolio and a $23.5 million (1.1 %) increase in its average depository base from the quarter ended December 31, 2009. This growth, bolstered by a continuation of solid credit quality trends, helped partially offset the impact of lower service fee income and decreased interest income from interest rate floors.
The Company reported net income per diluted share for 2010 of $2.47 compared to $2.68 for 2009. Net income for 2010 was $39.0 million compared to $42.6 million for 2009. For 2010, the Company achieved a return on assets of 1.47%, a return on tangible equity of 15.0%, a net interest margin of 4.06%, and an efficiency ratio of 52.9%.
For the fourth quarter of 2010, the Company reported net income of $9.9 million, or $0.64 per diluted share compared to $11.1 million or $0.70 per diluted share in the fourth quarter of 2009. For the fourth quarter of 2010, the Company achieved a return on assets of 1.49%, a return on tangible equity of 15.0%, a net interest margin of 3.92%, and an efficiency ratio of 50.7%.
Charles Hageboeck, President and Chief Executive Officer stated, "While our financial results are down slightly from 2009, our results compare favorably to our peers considering the many headwinds and challenges our industry encountered again this year. Although the economy is still in a state of flux, City's asset quality remains strong with stable and relatively low levels of past due loans. Our nonperforming assets declined $4.8 million, or 19%, from December 31, 2009 and net charge-offs for the year were $3.2 million lower than 2009."
"During 2010, City maintained net interest income at nearly the same level as 2009 despite a substantial decrease in interest income from interest rate floors and a sustained and abnormally low interest rate environment. City offset these challenges by growing its loan portfolio 4.1% during 2010 and judiciously pricing interest bearing deposits. I am particularly pleased with our loan growth in commercial, home equity, and residential real estate portfolios at a time when many banks are experiencing declining or stable balances."
"While City was able to successfully meet these headwinds, changes mandated in the Electronic Funds Transfer Act ("Regulation E") and a general decline in consumer spending adversely impacted our service fee revenues. While our customers responded to 'Regulation E' as we had anticipated (the majority of customers who utilized these services elected to "opt in" and the majority of those who had not used these services did not), the regulatory change and new processes we implemented to support it, combined with less consumer spending, reduced our service fee income by 11% compared to 2009. City also experienced additional credit-related net impairment losses during 2010, primarily in our portfolio of community bank equity positions."
"In spite of these many challenges, City's consistent history of solid earnings have enabled the Company to continue our strong quarterly dividend of 34 cents per share while many of our peers eliminated or significantly reduced shareholders dividends. City's strong capital, liquidity, and stable core-deposits provide us with the ability to consider acquisition opportunities to grow the Company. City remains one of the most profitable and well capitalized publicly traded banks in the U.S. and we look forward to continuing to provide our shareholders the value they have come to expect and our customers the services they need," Hageboeck concluded.
Net Interest Income
The Company's tax equivalent net interest income decreased $1.0 million, or 1.1%, from $96.3 million in 2009 to $95.3 million in 2010. This decline is due to a decrease in interest income associated with the gain from the sale of interest rate floors. During the third and fourth quarters of 2008, the Company sold $450 million of interest rate floors. The $16.7 million gain from sales of these interest rate floors is being recognized over the remaining lives of the various hedged loans - primarily prime-based commercial and home equity loans. During 2010, the Company recognized $4.5 million of interest income compared to $9.7 million of interest income recognized in 2009 from the interest rate floors. This decline was partially offset by the decrease in interest expense exceeding the decline in interest income from 2009 resulting in an increase in tax equivalent net interest income of approximately $3.1 million. In addition, the Company recognized $1.1 million of additional interest income related to three of the six pools of previously securitized loans that had a negative carrying value due to actual recoveries that exceeded estimates and discount accretion previously recognized. As a result, the carrying value for these three pools is $0 and future cash receipts related to these three pools will be recognized as interest income as received. The Company's reported net interest margin decreased from 4.18% for the year ended December 31, 2009 to 4.06% for the year ended December 31, 2010.
The Company's tax equivalent net interest income decreased $0.6 million, or 2.6%, from $23.8 million during the fourth quarter of 2009 to $23.2 million during the fourth quarter of 2010. This decline is due to a decrease in interest income associated with the gain from the sale of interest rate floors. During the fourth quarter of 2010, the Company recognized $0.8 million of interest income compared to $1.9 million of interest income recognized in the fourth quarter of 2009 from the interest rate floors. This decline was partially offset by the decrease in interest expense exceeding the decline in interest income from the fourth quarter of 2009 resulting in an increase in tax equivalent net interest income of approximately $0.5 million. The Company's reported net interest margin decreased from 4.07% for the quarter ended December 31, 2009 to 3.92% for the quarter ended December 31, 2010.
Credit Quality
The Company's ratio of non-performing assets to total loans and other real estate owned decreased from 1.31% at September 30, 2010 to 1.12% at December 31, 2010 and improved 31 basis points from December 31, 2009. Past due loans increased modestly from $7.9 million at September 30, 2010 to $8.7 million or 0.47% of total loans outstanding at December 31, 2010 and increased $0.2 million from December 31, 2009. Past due commercial, financial, and agriculture loans were $0.8 million or 0.10% of loans outstanding at December 31, 2010; past due residential real estate loans were $4.8 million or 0.78% of loans outstanding at December 31, 2010; and past due home equity loans were $2.3 million or 0.55% of loans outstanding at December 31, 2010.
The Company recognized net charge-offs of $2.5 million for the fourth quarter of 2010. Net charge-offs on depository accounts and residential loans were $1.5 million and $0.8 million, respectively, for the fourth quarter. Depository account charge-offs increased in the fourth quarter of 2010 due to a specific, nonrecurring depository overdraft loss during the quarter and was appropriately considered in the Company's normal process for estimating the allowance for loan losses and recognizing charge-offs. While charge-offs on depository accounts are appropriately taken against the Allowance for Loan Losses ("ALLL"), the revenue associated with depository accounts is reflected in service charges.
At December 31, 2010, the ALLL was $18.2 million or 0.98% of total loans outstanding and 156% of non-performing loans compared to $18.5 million or 1.03% of loans outstanding and 132% of non-performing loans at December 31, 2009.
As a result of the Company's quarterly analysis of the adequacy of the ALLL, the Company recorded a provision for loan losses of $2.3 million in the fourth quarter of 2010 and $7.1 million for the year ended December 31, 2010 compared to $1.5 million and $7.0 million for the comparable periods in 2009. The provision for loan losses recorded during 2010 reflects difficulties encountered by certain commercial borrowers of the Company during the year, the downgrade of their related credits and management's assessment of the impact of these difficulties on the ultimate collectability of the loans. Changes in the amount of the provision and related allowance are based on the Company's detailed systematic methodology and are directionally consistent with changes in the composition and quality of the Company's loan portfolio. The Company believes its methodology for determining the adequacy of its ALLL adequately provides for probable losses inherent in the loan portfolio and produces a provision and allowance for loan losses that is directionally consistent with changes in asset quality and loss experience.
Impairment Losses
During 2010, the Company recorded $6.1 million of credit-related net investment impairment losses, including $1.2 million in the fourth quarter. The charges deemed to be other than temporary were related to pooled bank trust preferreds ($0.1 million credit-related net impairment losses in the fourth quarter and a $1.8 million credit-related net impairment losses for the full year) with remaining book value of $7.8 million at December 31, 2010; single issuer bank trust preferreds ($0.7 million credit-related net impairment losses for the full year) with remaining book value of $1.2 at December 31, 2010; and community bank and bank holding company equity positions ($1.1 million credit-related net impairment losses in the fourth quarter and $3.6 million for the full year) with remaining book value of $3.6 million at December 31, 2010. The credit-related net impairment charges related to the pooled bank trust preferred securities and single issuer bank trust preferred securities (Cascade Capital Trust I issued by Cascade Financial of Everett, Washington) were based on the Company's quarterly reviews of its investment securities for indications of losses considered to be other than temporary. Based on management's assessment of the securities the Company owns, the seniority position of the securities within the pools, the level of defaults and deferred payments within the pools, and a review of the financial strength of the banks within the respective pools, management concluded that credit-related impairment charges of $1.8 million and $0.7 million on the pooled bank trust preferred securities and single issuer bank trust preferred securities, respectively, were appropriate for the year ended December 31, 2010. During the year ended December 31, 2010, the Company recognized $3.6 million of credit-related impairment charges on the Company's equity positions due to trends of poor financial performance over the last several quarters and the length of time and the extent to which the market values of these securities have been below the Company's cost basis in these positions. As a result of these factors, the Company does not expect the market value of these securities to recover in the near future. These losses were partially offset by realized investment gains of $1.4 million as the Company sold certain single issuer trust preferred securities with a remaining book value of $75.3 million during the year ended December 31, 2010.
Non-interest Income
Exclusive of net other-than-temporary investment impairment losses and realized investment security gains/(losses), non-interest income decreased $4.5 million to $53.6 million for the year ended December 31, 2010 as compared to $58.1 million for the year ended December 31, 2009. Service charges from depository accounts decreased $5.0 million, or 11.1%, to $40.0 million for the year ended December 31, 2010. This decline is primarily attributable to the Company's compliance with new federal rules under the Electronic Funds Transfer Act, also known as Regulation E. The changes to this regulation affect how banks can provide certain overdraft services, and were effective July 1, 2010 for new customers and August 15, 2010 for existing accounts. This decrease was partially offset by an increase of $0.4 million, or 18.1%, in trust and investment management fee income from $2.4 million for the year ended December 31, 2009 compared to $2.8 million for the year ended December 31, 2010.
Exclusive of other than temporary investment impairment losses and investment losses, total non-interest income decreased $1.2 million to $13.1 million for the fourth quarter of 2010 as compared to the fourth quarter of 2009. Service charges from depository accounts decreased $2.0 million due to the changes from complying with Regulation E and a general decline in consumer spending. This decrease was partially offset by increases in insurance commission revenues of $0.4 million, trust and investment management fee income of $0.2 million, and other income of $0.2 million from the fourth quarter of 2009.
Non-interest Expenses
Non-interest expenses increased $1.5 million from $77.2 million for the year ended December 31, 2009 to $78.7 million for the year ended December 31, 2010. Insurance and regulatory expense increased $1.5 million, or 44.1%, from the year ended December 31, 2009 primarily as a result of the Company fully utilizing the balance of its FDIC credits during 2009 and increases in the general assessment rates during 2010, which increased the Company's FDIC insurance expense from $2.2 for the year ended December 31, 2009 to $3.7 million for the year ended December 31, 2010. In addition, repossessed asset losses increased $0.8 million and salaries and employee benefits increased $0.7 million, or 1.9%, from the year ended December 31, 2009. The repossessed asset losses were primarily due to the write down of a foreclosed property located in the eastern panhandle of West Virginia reflecting continued weakness in property values in this market. As a result of this write down, this foreclosed property is now valued at approximately one-half of its original cost. Partially offsetting these increases were decreases in other expenses of $0.7 million, or 7.9%, and bankcard expenses of $0.6 million, or 24.9%. Other expenses decreased primarily due to a decrease of $0.6 million of amortization expenses associated with low income housing tax credits.
Total non-interest expenses decreased $0.9 million from $19.3 million in the fourth quarter of 2009 to $18.4 million in the fourth quarter of 2010. Other expenses decreased $1.1 million due primarily to amortization associated with low income housing tax credits while insurance and advertising expenses were $0.2 million lower. These increases were partially offset by increased salaries and employee benefit expenses of $0.4 million.
Income Tax Expense
The Company's effective income tax rate for the quarter and year ended December 31, 2010 was 29.8% and 32.1% compared to 29.5% and 32.5% for the quarter and year ended December 31, 2009, respectively.
Balance Sheet Trends
As compared to December 31, 2009, loans have increased $72.6 million (4.1%) at December 31, 2010 due to increases in commercial loans of $44.3 million (5.9%), home equity loans of $17.4 million (4.4%), and residential real estate loans of $14.7 million (2.5%).
Total average depository balances decreased $15.0 million, or 0.7%, from the quarter ended September 30, 2010 to the quarter ended December 31, 2010. This decline was primarily due to a decrease in time deposits of $23.6 million that was partially offset by increases in interest bearing demand deposits and noninterest bearing demand deposits of $4.8 million and $3.1 million, respectively. As compared to the quarter ended December 31, 2009, total average depository balances have increased $23.5 million, or 1.1%, for the quarter ended December 31, 2010. This increase was due to increased interest bearing deposits ($31.6 million), noninterest bearing deposits ($28.6 million), and savings deposits ($13.7 million) that were partially offset by a decrease in time deposits ($50.4 million).
Capitalization and Liquidity
One of the Company's strengths is that it is highly profitable while maintaining strong liquidity and capital. With respect to liquidity, the Company's loan to deposit ratio was 85.9% and the loan to asset ratio was 70.7% at December 31, 2010. The Company maintained investment securities totaling 17.2% of assets as of this date. Further, the Company's deposit mix is weighted heavily toward checking and saving accounts that fund 46.3% of assets at December 31, 2010. Time deposits fund 36.0% of assets at December 31, 2010, but very few of these deposits are in accounts that have balances of more than $150,000, reflecting the core retail orientation of the Company.
The Company is also strongly capitalized. The Company's tangible equity ratio was 10.0% at December 31, 2010 compared with a tangible equity ratio of 9.8% at December 31, 2009. At December 31, 2010, City National Bank's Leverage Ratio is 9.62%, its Tier I Capital ratio is 12.67%, and its Total Risk-Based Capital ratio is 13.61%. These preliminary regulatory capital ratios are significantly above levels required to be considered "well capitalized," which is the highest possible regulatory designation.
On December 31, 2010, the Board approved a quarterly cash dividend to 34 cents per share payable January 31, 2011, to shareholders of record as of January 14, 2011. During the year ended December 31, 2010, the Company repurchased 408,151 common shares at a weighted average price of $31.61 as part of a one million share repurchase plan authorized by the Board of Directors in October 2009.
City Holding Company is the parent company of City National Bank of West Virginia. City National operates 68 branches across West Virginia, Eastern Kentucky and Southern Ohio.
Forward-Looking Information
This news release contains certain forward-looking statements that are included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such information involves risks and uncertainties that could result in the Company's actual results differing from those projected in the forward-looking statements. Important factors that could cause actual results to differ materially from those discussed in such forward-looking statements include, but are not limited to, (1) the Company may incur additional loan loss provision due to negative credit quality trends in the future that may lead to a deterioration of asset quality; (2) the Company may incur increased charge-offs in the future; (3) the Company may experience increases in the default rates on previously securitized loans that would result in impairment losses or lower the yield on such loans; (4) the Company may not continue to benefit from strong recovery efforts on previously securitized loans resulting in improved yields on these assets; (5) the Company could have adverse legal actions of a material nature; (6) the Company may face competitive loss of customers; (7) the Company may be unable to manage its expense levels; (8) the Company may have difficulty retaining key employees; (9) changes in the interest rate environment may have results on the Company's operations materially different from those anticipated by the Company's market risk management functions; (10) changes in general economic conditions and increased competition could adversely affect the Company's operating results; (11) changes in other regulations and government policies affecting bank holding companies and their subsidiaries, including changes in monetary policies, could negatively impact the Company's operating results; (12) the Company may experience difficulties growing loan and deposit balances; (13) the current economic environment poses significant challenges for us and could adversely affect our financial condition and results of operations; (14) continued deterioration in the financial condition of the U.S. banking system may impact the valuations of investments the Company has made in the securities of other financial institutions resulting in either actual losses or other than temporary impairments on such investments; (15) the effects of the Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") recently adopted by the United States Congress. Forward-looking statements made herein reflect management's expectations as of the date such statements are made. Forward-looking statements made herein reflect management's expectations as of the date such statements are made. Such information is provided to assist stockholders and potential investors in understanding current and anticipated financial operations of the Company and is included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances that arise after the date such statements are made.
CITY HOLDING COMPANY AND SUBSIDIARIES
Financial Highlights
(Unaudited)
Three Months Ended
December 31, Percent
2010 2009 Change
---- ---- ------
Earnings ($000s, except per share
data):
Net Interest Income (FTE) $23,203 $23,817 (2.58)%
Net Income available to common
shareholders 9,908 11,078 (10.56)%
Earnings per Basic Share 0.64 0.70 (8.71)%
Earnings per Diluted Share 0.64 0.70 (8.78)%
-------------------------- ---- ---- ------
Key Ratios (percent):
Return on Average Assets 1.49% 1.69% (11.53)%
Return on Average Tangible Equity 14.99% 17.71% (15.38)%
Net Interest Margin 3.92% 4.07% (3.57)%
Efficiency Ratio 50.69% 50.60% 0.19%
Average Shareholders' Equity to
Average Assets 12.09% 11.70% 3.37%
Consolidated Risk Based Capital Ratios
(a):
Tier I 13.88% 13.63% 1.83%
Total 14.81% 14.60% 1.44%
Tangible Equity to Tangible Assets 10.01% 9.82% 1.93%
---------------------------------- ----- ---- ----
Common Stock Data:
Cash Dividends Declared per Share $0.34 $0.34 -
Book Value per Share 20.31 19.45 4.42%
Tangible Book Value per Share 16.66 15.86 5.04%
Market Value per Share:
High 38.03 33.29 14.24%
Low 30.37 28.96 4.87%
End of Period 36.23 31.25 15.94%
Price/Earnings Ratio (b) 14.20 11.18 27.00%
------------------------ ----- ----- -----
Twelve Months Ended
December 31, Percent
2010 2009 Change
---- ---- ------
Earnings ($000s, except per share
data):
Net Interest Income (FTE) $95,278 $96,338 (1.10)%
Net Income available to common
shareholders 38,960 42,645 (8.64)%
Earnings per Basic Share 2.48 2.69 (7.57)%
Earnings per Diluted Share 2.47 2.68 (7.61)%
-------------------------- ---- ---- ------
Key Ratios (percent):
Return on Average Assets 1.47% 1.63% (10.22)%
Return on Average Tangible Equity 15.02% 17.95% (16.35)%
Net Interest Margin 4.06% 4.18% (2.96)%
Efficiency Ratio 52.93% 49.99% 5.89%
Average Shareholders' Equity to
Average Assets 11.91% 11.29% 5.43%
------------------------------- ----- ----- ----
Common Stock Data:
Cash Dividends Declared per Share $1.36 $1.36 -
Market Value per Share:
High 38.03 34.34 10.75%
Low 26.87 20.88 28.69%
Price/Earnings Ratio (b) 14.59 11.63 25.42%
(a) December 31, 2010 risk-based capital ratios are estimated
(b) December 31, 2010 price/earnings ratio computed based on 2010
earnings
CITY HOLDING COMPANY AND SUBSIDIARIES
Financial Highlights
(Unaudited)
Book Value and Market Price Range per Share
Market Price
Book Value per Share Range per Share
March June September December
31 30 30 31 Low High
------ ----- ---------- --------- --- ----
2006 $16.17 $16.17 $16.99 $17.46 $34.53 $41.87
2007 17.62 17.40 17.68 18.14 31.16 41.54
2008 18.92 18.72 17.61 17.58 29.08 42.88
2009 17.69 18.24 18.95 19.37 20.88 34.34
2010 19.71 19.95 20.31 20.31 26.87 38.03
Earnings per Basic Share
Quarter Ended
Year-
March June September December to-
31 30 30 31 Date
------ ----- ---------- --------- ------
2006 $0.71 $0.78 $0.78 $0.74 $3.00
2007 0.76 0.72 0.76 0.78 3.02
2008 0.81 0.83 (0.16) 0.26 1.74
2009 0.69 0.64 0.66 0.70 2.69
2010 0.59 0.68 0.58 0.64 2.48
Earnings per Diluted Share
Quarter Ended
Year-
March June September December to-
31 30 30 31 Date
------ ----- ---------- --------- ------
2006 $0.71 $0.77 $0.77 $0.74 $2.99
2007 0.76 0.72 0.76 0.78 3.01
2008 0.80 0.83 (0.16) 0.26 1.74
2009 0.69 0.64 0.66 0.70 2.68
2010 0.58 0.68 0.58 0.64 2.47
CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited) ($ in 000s, except per share data)
Three Months Ended
December 31,
2010 2009
---- ----
Interest Income
Interest and fees on loans $24,124 $25,746
Interest on investment securities:
Taxable 4,647 5,706
Tax-exempt 454 434
Interest on deposits in depository
institutions - 1
Interest on federal funds sold 16 -
Total Interest Income 29,241 31,887
Interest Expense
Interest on deposits 6,042 8,000
Interest on short-term borrowings 79 134
Interest on long-term debt 162 168
Total Interest Expense 6,283 8,302
----- -----
Net Interest Income 22,958 23,585
Provision for loan losses 2,343 1,475
Net Interest Income After Provision for Loan
Losses 20,615 22,110
Non-Interest Income
Total investment securities impairment losses (1,932) (6,637)
Noncredit impairment losses recognized in
other comprehensive income 713 5,762
--- -----
Net investment securities impairment losses (1,219) (875)
Loss on sale of investment securities (1) (562)
Service charges 9,624 11,628
Insurance commissions 1,503 1,110
Trust and investment management fee income 720 549
Bank owned life insurance 751 753
Other income 527 320
Total Non-Interest Income 11,905 12,923
Non-Interest Expense
Salaries and employee benefits 8,930 8,523
Occupancy and equipment 1,861 1,947
Depreciation 1,138 1,180
Professional fees 502 439
Postage, delivery, and statement mailings 548 573
Advertising 647 830
Telecommunications 428 455
Bankcard expenses 548 570
Insurance and regulatory 1,238 1,014
Office supplies 457 484
Repossessed asset losses, net of expenses 196 321
Other expenses 1,907 2,980
Total Non-Interest Expense 18,400 19,316
------ ------
Income Before Income Taxes 14,120 15,717
Income tax expense 4,212 4,639
Net Income Available to Common Shareholders $9,908 $11,078
====== =======
Distributed earnings allocated to common
shareholders $5,239 $5,370
Undistributed earnings allocated to common
shareholders 4,610 5,697
Net earnings allocated to common shareholders $9,849 $11,068
====== =======
Average common shares outstanding 15,439 15,838
Effect of dilutive securities:
Employee stock options 69 59
Shares for diluted earnings per share 15,508 15,897
====== ======
Basic earnings per common share $0.64 $0.70
Diluted earnings per common share $0.64 $0.70
CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited) ($ in 000s, except per share data)
Twelve months
ended December
31,
2010 2009
---- ----
Interest Income
Interest and fees on loans $99,456 $107,142
Interest on investment securities:
Taxable 20,594 23,200
Tax-exempt 1,837 1,683
Interest on deposits in depository
institutions - 11
Interest on federal funds sold 29 -
Total Interest Income 121,916 132,036
Interest Expense
Interest on deposits 26,608 35,230
Interest on short-term borrowings 362 529
Interest on long-term debt 658 844
Total Interest Expense 27,628 36,603
------ ------
Net Interest Income 94,288 95,433
Provision for loan losses 7,093 6,994
Net Interest Income After Provision for Loan
Losses 87,195 88,439
Non-Interest Income
Total investment securities impairment losses (9,400) (11,100)
Noncredit impairment losses recognized in
other comprehensive income 3,336 5,762
----- -----
Net investment securities impairment losses (6,064) (5,338)
Gain (loss) on sale of investment securities 1,397 (826)
Service charges 40,002 45,013
Insurance commissions 5,490 5,576
Trust and investment management fee income 2,767 2,343
Bank owned life insurance 3,396 3,271
Other income 1,951 1,944
Total Non-Interest Income 48,939 51,983
Non-Interest Expense
Salaries and employee benefits 38,241 37,526
Occupancy and equipment 7,697 7,689
Depreciation 4,675 4,746
Professional fees 1,677 1,505
Postage, delivery, and statement mailings 2,371 2,600
Advertising 3,692 3,503
Telecommunications 1,732 1,865
Bankcard expenses 1,953 2,599
Insurance and regulatory 4,869 3,379
Office supplies 1,931 2,005
Repossessed asset losses, net of expenses 1,453 672
Other expenses 8,430 9,155
Total Non-Interest Expense 78,721 77,244
------ ------
Income Before Income Taxes 57,413 63,178
Income tax expense 18,453 20,533
Net Income Available to Common Shareholders $38,960 $42,645
======= =======
Distributed earnings allocated to common
shareholders $20,956 $21,481
Undistributed earnings allocated to common
shareholders 17,767 21,185
Net earnings allocated to common shareholders $38,723 $42,666
======= =======
Average common shares outstanding 15,589 15,877
Effect of dilutive securities:
Employee stock options 62 55
Shares for diluted earnings per share 15,651 15,932
====== ======
Basic earnings per common share $2.48 $2.69
Diluted earnings per common share $2.47 $2.68
CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Statements of Changes in Stockholders' Equity
(Unaudited) ($ in 000s)
Three Months Ended
December 31, December 31,
2010 2009
------------- -------------
Balance at October 1 $314,841 $305,140
Net income 9,908 11,078
Other comprehensive income:
Change in unrealized (loss) on
securities available-for-sale (4,427) (467)
Change in underfunded pension liability (77) 521
Change in unrealized (loss) on interest
rate floors (491) (1,242)
Cash dividends declared ($0.34/share) (5,269) (5,401)
Issuance of stock award shares, net 186 110
Exercise of 6,262 stock options 175 -
Exercise of 300 stock options - 4
Excess tax benefits on stock
compensation 15 -
Purchase of 27,600 common shares of
treasury - (841)
Balance at December 31 $314,861 $308,902
======== ========
Twelve Months Ended
December 31, December 31,
2010 2009
------------- -------------
Balance at January 1 $308,902 $285,463
Net income 38,960 42,645
Other comprehensive income:
Change in unrealized gain on securities
available-for-sale 2,902 11,442
Change in unrealized (loss) on interest
rate floors (2,768) (6,224)
Change in underfunded pension liability (77) 521
Cash dividends declared ($1.36/share) (21,222) (21,652)
Issuance of stock award shares, net 830 564
Exercise of 7,962 stock options 221 -
Exercise of 1,350 stock options - 29
Excess tax benefits on stock
compensation 15 -
Purchase of 408,151 common shares of
treasury (12,902) -
Purchase of 133,286 common shares of
treasury - (3,886)
Balance at December 31 $314,861 $308,902
======== ========
CITY HOLDING COMPANY AND SUBSIDIARIES
Condensed Consolidated Quarterly Statements of Income
(Unaudited) ($ in 000s, except per share data)
Quarter Ended
December September June March December
31 30 30 31 31
2010 2010 2010 2010 2009
---- ---- ---- ---- ----
Interest income $29,241 $29,970 $31,770 $30,935 $31,887
Taxable equivalent
adjustment 244 244 246 255 234
--- --- --- --- ---
Interest income (FTE) 29,485 30,214 32,016 31,190 32,121
Interest expense 6,283 6,810 7,092 7,444 8,302
----- ----- ----- ----- -----
Net interest income 23,202 23,404 24,924 23,746 23,819
Provision for loan
losses 2,343 1,847 1,823 1,080 1,475
----- ----- ----- ----- -----
Net interest income
after provision
for loan losses 20,859 21,557 23,101 22,666 22,344
Noninterest income 11,905 11,643 13,278 12,112 12,923
Noninterest expense 18,400 19,804 19,965 20,551 19,316
------ ------ ------ ------ ------
Income before income
taxes 14,364 13,396 16,414 14,227 15,951
Income tax expense 4,212 4,129 5,453 4,659 4,639
Taxable equivalent
adjustment 244 244 246 255 234
--- --- --- --- ---
Net income available
to common
shareholders $9,908 $9,023 $10,715 $9,313 $11,078
====== ====== ======= ====== =======
Distributed earnings
allocated to common
shareholders $5,239 $5,237 $5,274 $5,345 $5,370
Undistributed earnings
allocated to common
shareholders 4,610 3,733 5,373 3,918 5,697
----- ----- ----- ----- -----
Net earnings allocated
to common
shareholders $9,849 $8,970 $10,648 $9,263 $11,067
====== ====== ======= ====== =======
Average common shares
outstanding 15,439 15,496 15,656 15,793 15,838
Effect of dilutive
securities:
Employee stock options 69 56 65 58 53
--- --- --- --- ---
Shares for diluted
earnings per share 15,508 15,552 15,721 15,851 15,891
====== ====== ====== ====== ======
Basic earnings per
common share $0.64 $0.58 $0.68 $0.59 $0.70
Diluted earnings per
common share 0.64 0.58 0.68 0.58 0.70
Cash dividends
declared per share 0.34 0.34 0.34 0.34 0.34
------------------- ---- ---- ---- ---- ----
Average Common Share
(000s):
Outstanding 15,439 15,496 15,656 15,793 15,838
Diluted 15,508 15,552 15,721 15,851 15,897
Net Interest Margin 3.92% 3.94% 4.22% 4.14% 4.07%
------------------- ---- ---- ---- ---- ----
CITY HOLDING COMPANY AND SUBSIDIARIES
Non-Interest Income and Non-Interest Expense
(Unaudited) ($ in 000s)
Quarter Ended
December September June March December
31 30 30 31 31
2010 2010 2010 2010 2009
---- ---- ---- ---- ----
Non-Interest Income:
Service charges $9,624 $9,702 $10,448 $10,228 $11,628
Insurance commissions 1,503 1,346 1,244 1,397 1,110
Trust and investment
management fee
income 720 618 567 862 549
Bank owned life
insurance 751 1,104 813 728 753
Other income 527 439 437 548 320
--- --- --- - ---
Subtotal 13,125 13,209 13,509 13,763 14,360
Total investment
securities
impairment losses (1,932) (3,028) (1,237) (3,203) (861)
Noncredit impairment
losses recognized in
other comprehensive
income
713 127 944 1,552 -
--- --- --- --- ---
Net investment
securities
impairment losses (1,219) (2,901) (293) (1,651) (861)
Gain (loss) on sale
of investment
securities (1) 1,335 62 - (576)
--- ----- --- --- ----
Total Non-Interest
Income $11,905 $11,643 $13,278 $12,112 $12,923
======= ======= ======= ======= =======
Non-Interest Expense:
Salaries and employee
benefits $8,930 $9,817 $9,745 $9,749 $8,523
Occupancy and
equipment 1,861 1,917 1,874 2,045 1,947
Depreciation 1,138 1,145 1,174 1,218 1,180
Professional fees 502 414 398 363 439
Postage, delivery,
and statement
mailings 548 599 615 609 573
Advertising 647 891 1,241 913 830
Telecommunications 428 413 440 451 455
Bankcard expenses 548 481 448 476 570
Insurance and
regulatory 1,238 1,244 1,200 1,187 1,014
Office supplies 457 497 484 493 484
Repossessed asset
losses, net of
expenses 196 234 78 946 321
Other expenses 1,907 2,152 2,268 2,101 2,880
----- ----- ----- --- -----
Total Non-Interest
Expense $18,400 $19,804 $19,965 $20,551 $19,216
======= ======= ======= ======= =======
Employees (Full Time
Equivalent) 805 801 812 815 809
Branch Locations 68 68 67 67 67
---------------- --- --- --- --- ---
CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
December
31 December 31
2010 2009
---- ----
(Unaudited)
Assets
Cash and due from banks $50,043 $59,116
Interest-bearing deposits in depository
institutions 5,336 3,519
Federal funds sold 11,000 -
Cash and cash equivalents 66,379 62,635
Investment securities available-for-
sale, at fair value 429,720 485,767
Investment securities held-to-
maturity, at amortized cost 23,865 28,164
Total investment securities 453,585 513,931
Gross loans 1,865,000 1,792,434
Allowance for loan losses (18,224) (18,541)
Net loans 1,846,776 1,773,893
Bank owned life insurance 76,231 73,388
Premises and equipment 64,530 64,193
Accrued interest receivable 7,264 7,969
Net deferred tax assets 29,235 29,480
Intangible assets 56,573 57,010
Other assets 36,722 40,121
Total Assets $2,637,295 $2,622,620
========== ==========
Liabilities
Deposits:
Noninterest-bearing $337,927 $328,440
Interest-bearing:
Demand deposits 486,737 457,293
Savings deposits 397,042 379,893
Time deposits 949,669 998,096
Total deposits 2,171,375 2,163,722
Short-term borrowings 112,710 118,329
Long-term debt 16,495 16,959
Other liabilities 21,854 14,708
Total Liabilities 2,322,434 2,313,718
Stockholders' Equity
Preferred stock, par value $25 per
share: 500,000 shares authorized; none
issued - -
Common stock, par value $2.50 per share:
50,000,000 shares authorized;
18,499,282 shares issued at December 31,
2010 and December 31, 2009
less 2,994,501 and 2,616,161 shares in
treasury, respectively 46,249 46,249
Capital surplus 103,057 102,917
Retained earnings 270,905 253,167
Cost of common stock in treasury (102,853) (90,877)
Accumulated other comprehensive loss:
Unrealized gain/(loss) on securities
available-for-sale 1,022 (1,880)
Unrealized gain on derivative
instruments 295 3,063
Underfunded pension liability (3,814) (3,737)
Total Accumulated Other Comprehensive
Loss (2,497) (2,554)
------ ------
Total Stockholders' Equity 314,861 308,902
Total Liabilities and Stockholders'
Equity $2,637,295 $2,622,620
========== ==========
CITY HOLDING COMPANY AND SUBSIDIARIES
Investment Portfolio
(Unaudited) ($ in 000s)
Credit-
Related Net
Investment
Impairment
Losses
through Unrealized
Original December Gains Carrying
Cost 31, 2010 (Losses) Value
-------- ----------- ---------- --------
Mortgage Backed
Securities $267,077 $- $7,858 $274,935
Municipal Bonds 66,074 - 290 66,364
Pooled Bank Trust
Preferreds 27,090 (19,241) (4,494) 3,355
Single Issuer Bank
Trust Preferreds,
Subdebt of
Financial
Institutions, and
Bank Holding
Company Preferred
Stocks
93,211 (1,653) (1,482) 90,075
Money Markets and
Mutual Funds 1,617 - (7) 1,610
Federal Reserve
Bank and FHLB
stock 12,553 - - 12,553
Community Bank
Equity Positions 10,337 (5,130) (514) 4,693
Total Investments $477,958 $(26,024) $1,651 $453,585
======== ======== ====== ========
CITY HOLDING COMPANY AND SUBSIDIARIES
Loan Portfolio
(Unaudited) ($ in 000s)
December September December
31 30 June 30 March 31 31
2010 2010 2010 2010 2009
---- ---- ---- ---- ----
Residential
real estate $610,369 $605,351 $605,026 $597,429 $595,678
Home equity 416,172 411,481 404,789 398,443 398,752
Commercial,
financial,
and
agriculture 796,370 765,331 778,114 761,223 752,052
Installment
loans to
individuals 41,300 42,407 43,859 43,597 44,239
Previously
securitized
loans 789 1,268 1,784 1,148 1,713
--- ----- ----- ----- -----
Gross Loans $1,865,000 $1,825,838 $1,833,572 $1,801,840 $1,792,434
========== ========== ========== ========== ==========
CITY HOLDING COMPANY AND SUBSIDIARIES
Previously Securitized Loans
(Unaudited) ($ in millions)
Annualized Effective
December
31 Interest Annualized
Year Balance Yield
Ended: (a) Income (a) (a)
------- ---------- -----
2009 $1.7 $5.6 108%
2010 0.8 4.0 333%
2011 0.6 1.4 200%
2012 0.5 1.1 200%
2013 0.4 0.9 200%
a -2009 and 2010 amounts are based on actual results. 2011, 2012,
and 2013 amounts are based on estimated amounts.
Note: The amounts reflected in the table above require management to
make significant assumptions based on estimated future default,
prepayment, and discount rates. Actual performance could be
significantly different from that assumed, which could result in the
actual results being materially different from the amounts estimated
above.
CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited) ($ in 000s)
Three Months Ended December 31,
2010
Average Yield/ Average
Balance Interest Rate Balance
------- -------- ---- -------
Assets:
Loan portfolio:
Residential real
estate $602,002 $7,624 5.02% $590,284
Home equity 413,810 5,256 5.04% 397,088
Commercial, financial,
and agriculture 769,158 9,580 4.94% 752,870
Installment loans to
individuals 51,731 966 7.41% 50,430
Previously securitized
loans 986 699 281.26% 2,087
--- --- ------ -----
Total loans 1,837,687 24,125 5.21% 1,792,759
Securities:
Taxable 421,648 4,646 4.37% 480,044
Tax-exempt 50,584 698 5.47% 44,964
------ --- ---- ------
Total securities 472,232 5,344 4.49% 525,008
Deposits in depository
institutions 5,134 - - 5,546
Federal funds sold 32,060 16 - -
------ --- --- ---
Total interest-
earning assets 2,347,113 29,485 4.98% 2,323,313
Cash and due from
banks 54,314 51,956
Bank premises and
equipment 65,005 64,188
Other assets 206,879 206,069
Less: Allowance for
loan losses (18,680) (19,641)
------- -------
Total assets $2,654,631 $2,625,885
========== ==========
Liabilities:
Interest-bearing
demand deposits 466,985 243 0.21% 435,374
Savings deposits 392,438 224 0.23% 378,728
Time deposits 959,249 5,575 2.31% 1,009,667
Short-term borrowings 116,987 78 0.26% 128,995
Long-term debt 16,737 162 3.84% 17,151
------ --- ---- ------
Total interest-
bearing liabilities 1,952,396 6,282 1.28% 1,969,915
Noninterest-bearing
demand deposits 359,647 331,012
Other liabilities 21,547 17,739
Stockholders' equity 321,041 307,219
Total liabilities and
stockholders' equity $2,654,631 $2,625,885
========== ==========
Net interest income $23,203
=======
Net yield on earning
assets 3.92%
====
Three Months Ended December 31,
2009
Yield/
Interest Rate
-------- ----
Assets:
Loan portfolio:
Residential real estate $8,064 5.42%
Home equity 5,744 5.74%
Commercial, financial, and
agriculture 10,095 5.32%
Installment loans to
individuals 1,008 7.93%
Previously securitized loans 835 158.73%
--- ------
Total loans 25,746 5.70%
Securities:
Taxable 5,706 4.72%
Tax-exempt 668 5.89%
--- ----
Total securities 6,374 4.82%
Deposits in depository
institutions 1 0.07%
Federal funds sold - -
--- ---
Total interest-earning
assets 32,121 5.49%
Cash and due from banks
Bank premises and equipment
Other assets
Less: Allowance for loan
losses
Total assets
Liabilities:
Interest-bearing demand
deposits 377 0.34%
Savings deposits 360 0.38%
Time deposits 7,264 2.85%
Short-term borrowings 135 0.42%
Long-term debt 168 3.89%
--- ----
Total interest-bearing
liabilities 8,304 1.67%
Noninterest-bearing demand
deposits
Other liabilities
Stockholders' equity
Total liabilities and
stockholders' equity
Net interest income $23,817
=======
Net yield on earning assets 4.07%
====
CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited) ($ in 000s)
Twelve Months Ended December 31,
2010
Average Yield/ Average
Balance Interest Rate Balance
------- -------- ---- -------
Assets:
Loan portfolio:
Residential real
estate $598,484 $31,218 5.22% $595,518
Home equity 405,539 21,263 5.24% 392,077
Commercial,
financial, and
agriculture 765,634 39,163 5.12% 756,745
Installment loans to
individuals 49,724 3,796 7.63% 49,733
Previously
securitized loans 1,207 4,016 332.73% 3,042
----- ----- ------ -----
Total loans 1,820,588 99,456 5.46% 1,797,115
Securities:
Taxable 458,398 20,594 4.49% 460,350
Tax-exempt 49,517 2,826 5.71% 41,123
------ ----- ---- ------
Total securities 507,915 23,420 4.61% 501,473
Deposits in
depository
institutions 5,249 - - 5,340
Federal funds sold 14,506 29 - 123
------ --- --- ---
Total interest-
earning assets 2,348,258 122,905 5.23% 2,304,051
Cash and due from
banks 53,384 51,655
Bank premises and
equipment 64,666 62,883
Other assets 207,454 211,466
Less: Allowance for
loan losses (19,265) (21,306)
------- -------
Total assets $2,654,497 $2,608,749
========== ==========
Liabilities:
Interest-bearing
demand deposits 462,641 1,242 0.27% 428,342
Savings deposits 389,385 1,016 0.26% 373,476
Time deposits 983,310 24,349 2.48% 1,006,146
Short-term
borrowings 112,575 362 0.32% 134,016
Long-term debt 16,876 658 3.90% 18,286
------ --- ---- ------
Total interest-
bearing liabilities 1,964,787 27,627 1.41% 1,960,266
Noninterest-bearing
demand deposits 354,988 328,985
Other liabilities 18,692 24,917
Stockholders' equity 316,030 294,581
------- -------
Total liabilities
and
stockholders' equity $2,654,497 $2,608,749
========== ==========
Net interest income $95,278
=======
Net yield on earning
assets 4.06%
====
Twelve Months Ended December 31,
2009
Yield/
Interest Rate
-------- ----
Assets:
Loan portfolio:
Residential real estate $33,558 5.64%
Home equity 23,909 6.10%
Commercial, financial, and
agriculture 41,614 5.50%
Installment loans to
individuals 4,158 8.36%
Previously securitized loans 3,902 128.27%
----- ------
Total loans 107,141 5.96%
Securities:
Taxable 23,200 5.04%
Tax-exempt 2,589 6.30%
----- ----
Total securities 25,789 5.14%
Deposits in depository
institutions 11 0.21%
Federal funds sold - -
--- ---
Total interest-earning
assets 132,941 5.77%
Cash and due from banks
Bank premises and equipment
Other assets
Less: Allowance for loan
losses
Total assets
Liabilities:
Interest-bearing demand
deposits 1,703 0.40%
Savings deposits 1,746 0.47%
Time deposits 31,781 3.16%
Short-term borrowings 529 0.39%
Long-term debt 844 4.62%
--- ----
Total interest-bearing
liabilities 36,603 1.87%
Noninterest-bearing demand
deposits
Other liabilities
Stockholders' equity
Total liabilities and
stockholders' equity
Net interest income $96,338
=======
Net yield on earning assets 4.18%
====
CITY HOLDING COMPANY AND SUBSIDIARIES
Analysis of Risk-Based Capital
(Unaudited) ($ in 000s)
December September
31 30 June 30 March 31
2010 (a) 2010 2010 2010
-------- ---- ---- ----
Tier I Capital:
Stockholders'
equity $314,861 $314,841 $312,575 $312,835
Goodwill and other
intangibles (56,378) (56,487) (56,596) (56,705)
Accumulated other
comprehensive loss
(income) 2,497 (2,498) (950) 330
Qualifying trust
preferred stock 16,000 16,000 16,000 16,000
Unrealized Loss on
AFS securities (521) (1,277) (3,668) (2,950)
Excess deferred tax
assets (2,904) (2,916) (3,530) (3,827)
------ ------ ------ ------
Total tier I
capital $273,555 $267,664 $262,664 $264,516
======== ======== ======== ========
Total Risk-Based
Capital:
Tier I capital $273,555 $267,664 $262,664 $264,516
Qualifying
allowance for loan
losses 18,224 18,364 19,456 18,982
------ ------ ------ ------
Total risk-based
capital $291,779 $286,028 $282,120 $283,498
======== ======== ======== ========
Net risk-weighted
assets $1,970,635 $1,949,080 $1,952,076 $1,935,071
Ratios:
Average
stockholders'
equity to average
assets 12.09% 11.90% 11.76% 11.87%
Tangible capital
ratio 10.01% 10.04% 9.86% 9.79%
Risk-based capital
ratios:
Tier I capital 13.88% 13.73% 13.46% 13.67%
Total risk-based
capital 14.81% 14.68% 14.45% 14.65%
Leverage capital 10.54% 10.30% 10.06% 10.28%
---------------- ----- ----- ----- -----
December
31
2009
----
Tier I Capital:
Stockholders' equity $308,902
Goodwill and other
intangibles (56,810)
Accumulated other
comprehensive loss
(income) 2,554
Qualifying trust preferred
stock 16,000
Unrealized Loss on AFS
securities (3,531)
Excess deferred tax assets (3,412)
------
Total tier I capital $262,536
========
Total Risk-Based Capital:
Tier I capital $262,536
Qualifying allowance for
loan losses 18,687
------
Total risk-based capital $281,223
========
Net risk-weighted assets $1,926,824
Ratios:
Average stockholders'
equity to average assets 11.70%
Tangible capital ratio 9.77%
Risk-based capital
ratios:
Tier I capital 13.63%
Total risk-based capital 14.60%
Leverage capital 10.23%
---------------- -----
(a) December 31, 2010 risk-based capital ratios are estimated
-------------------------------------------------------------
CITY HOLDING COMPANY AND SUBSIDIARIES
Intangibles
(Unaudited) ($ in 000s)
As of and for the Quarter Ended
December September December
31 30 June 30 March 31 31
2010 2010 2010 2010 2009
---- ---- ---- ---- ----
Intangibles, net $56,573 $56,682 $56,791 $56,900 $57,010
Intangibles amortization
expense 109 109 109 110 117
------------------------ --- --- --- --- ---
CITY HOLDING COMPANY AND SUBSIDIARIES
Summary of Loan Loss Experience
(Unaudited) ($ in 000s)
Quarter Ended
December September
31 30 June 30 March 31
2010 2010 2010 2010
---- ---- ---- ----
Balance at
beginning of
period $18,364 $19,456 $18,836 $18,541
Charge-offs:
Commercial,
financial, and
agricultural 174 2,046 796 361
Real estate-
mortgage 823 654 637 423
Installment loans
to individuals 38 43 20 26
Overdraft deposit
accounts 1,867 615 565 550
----- --- --- ---
Total charge-
offs 2,902 3,358 2,018 1,360
Recoveries:
Commercial,
financial, and
agricultural 29 28 378 9
Real estate-
mortgage 27 12 38 23
Installment loans
to individuals 37 29 53 50
Overdraft deposit
accounts 326 350 346 493
--- --- --- ---
Total recoveries 419 419 815 575
Net charge-offs 2,483 2,939 1,203 785
----- ----- ----- ---
Provision for
loan losses 2,343 1,847 1,823 1,080
Balance at end of
period $18,224 $18,364 $19,456 $18,836
======= ======= ======= =======
Loans outstanding $1,865,000 $1,825,838 $1,833,572 $1,801,840
---------- ---------- ---------- ----------
Average loans
outstanding 1,837,687 1,829,119 1,821,822 1,793,134
--------- --------- --------- ---------
Allowance as a
percent of loans
outstanding 0.98% 1.01% 1.06% 1.05%
---- ---- ---- ----
Allowance as a
percent of non-
performing loans 156.39% 160.40% 177.78% 131.60%
------ ------ ------ ------
Net charge-offs
(annualized) as
a
percent of
average loans
outstanding 0.54% 0.64% 0.26% 0.18%
---- ---- ---- ----
Net charge-offs,
excluding
overdraft
deposit
accounts,
(annualized) as
a percent of
average loans
outstanding 0.21% 0.58% 0.22% 0.16%
---- ---- ---- ----
Quarter Ended
December
31
2009
----
Balance at beginning of
period $19,609
Charge-offs:
Commercial, financial, and
agricultural 1,821
Real estate-mortgage 448
Installment loans to
individuals 87
Overdraft deposit accounts 737
---
Total charge-offs 3,093
Recoveries:
Commercial, financial, and
agricultural 88
Real estate-mortgage 31
Installment loans to
individuals 37
Overdraft deposit accounts 394
-
Total recoveries 550
Net charge-offs 2,543
-----
Provision for loan losses 1,475
Balance at end of period $18,541
=======
Loans outstanding $1,792,434
----------
Average loans outstanding 1,792,759
---------
Allowance as a percent of
loans outstanding 1.03%
----
Allowance as a percent of
non-performing loans 132.02%
------
Net charge-offs
(annualized) as a
percent of average loans
outstanding 0.57%
----
Net charge-offs, excluding
overdraft deposit
accounts, (annualized) as a
percent of average loans
outstanding 0.49%
----
CITY HOLDING COMPANY AND SUBSIDIARIES
Summary of Non-Performing Assets
(Unaudited) ($ in 000s)
December September June March December
31 30 30 31 31
2010 2010 2010 2010 2009
---- ---- ---- ---- ----
Nonaccrual loans $10,817 $11,220 $10,246 $14,008 $13,583
Accruing loans past
due 90 days or more 782 195 698 305 382
Previously
securitized loans
past due 90 days or
more 54 34 - - 79
--- --- --- --- ---
Total non-
performing loans 11,653 11,449 10,944 14,313 14,044
Other real estate
owned, excluding
property associated
with previously
securitized loans 9,316 12,636 12,722 10,800 11,729
Other real estate
owned associated
with previously
securitized loans - - - - -
Other real estate
owned 9,316 12,636 12,722 10,800 11,729
----- ------ ------ ------ ------
Total non-
performing assets $20,969 $24,085 $23,666 $25,113 $25,773
======= ======= ======= ======= =======
Non-performing
assets as a percent
of loans and
other real estate
owned 1.12% 1.31% 1.28% 1.39% 1.43%
CITY HOLDING COMPANY AND SUBSIDIARIES
Summary of Total Past Due Loans
(Unaudited) ($ in 000s)
December September June March December
31 30 30 31 31
2010 2010 2010 2010 2009
---- ---- ---- ---- ----
Residential real estate $4,774 $3,815 $5,298 $3,850 $3,830
Home equity 2,276 2,863 1,763 1,818 2,396
Commercial, financial, and
agriculture 775 262 3,680 498 601
Installment loans to individuals 147 106 168 133 172
Previously securitized loans 345 518 394 539 1,023
Overdraft deposit accounts 361 337 399 326 461
Total past due loans $8,678 $7,901 $11,702 $7,164 $8,483
====== ====== ======= ====== ======
SOURCE City Holding Company
