Exhibit 99.1
NEWS RELEASE
For Immediate Release
January 23, 2008
For Further Information Contact:
Charles R. Hageboeck, Chief Executive Officer and President
(304) 769-1102
City Holding Company Announces 2007 Earnings
Charleston, West Virginia – City Holding Company, “the Company” (NASDAQ:CHCO), a $2.5 billion bank holding company headquartered in Charleston, today announced net income of $51.0 million, or diluted earnings per share of $3.01, for the year ended December 31, 2007 compared to $53.2 million, or diluted earnings per share of $2.99 during 2006. Diluted earnings per share increased slightly (0.7%) despite an increase in the Company’s provision for loan losses from $3.8 million in 2006 (or 23 basis points of average loans outstanding) to $5.4 million in 2007 (or 31 basis points of average loans outstanding) and a decrease of $2.1 million in interest income from previously securitized loans. Return on assets for the full year was 2.03%, return on tangible equity was 21.0%, the net interest margin was 4.34%, and the efficiency ratio was 45.9%.
For the fourth quarter of 2007, the Company reported net income of $12.8 million, or $0.78 per diluted share compared to $12.9 million or $0.74 per diluted share in the fourth quarter of 2006. This represents a 5.4% increase in diluted earnings per share. For the fourth quarter of 2007, the Company achieved a return on assets of 2.05%, a return on tangible equity of 21.6%, a net interest margin of 4.32%, and an efficiency ratio of 46.2%.
Charles Hageboeck, Chief Executive Officer and President, stated, “In what has been a generally difficult operating environment in 2007, City’s performance has been solid. Many of City’s peers have announced lower earnings associated with sub-prime mortgage lending, reduced market valuations within their investment portfolios, write-offs of goodwill associated with acquisitions, etc. In contrast, City’s performance exhibited solid loan growth, strong capital and liquidity, solid growth in non-interest income, a net interest margin that has remained unchanged for three quarters in a row, stable expenses, and stable net loan losses. Following trends within the industry, City has experienced an increase in non-performing loans and past-due loans, predominantly focused in residential real-estate, home equity lending, and residential construction lending. Given trends within the industry, City has performed well. As a result, City’s stock price has held up better than most other banks of its size, and we believe that City remains extremely well positioned to continue its strategy of high performance and reasonable growth within its geographic markets.
The Company is one of the most profitable banks in the industry as measured by its return on assets of 2.03%. Diluted earnings per share exceeded 2006 despite headwinds from a higher provision for loan losses, a decrease in interest income of $2.1 million associated with run-off of the legacy portfolio of previously securitized loans, and a decrease in income associated with our retail credit card portfolio and merchant card portfolios of $1.5 million due to the sales of these portfolios.
The two largest sources of non-interest income – branch service charges and insurance revenues – both showed solid growth in 2007, and the Company has continued to recruit additional talent to strengthen our ability to compete, and grow effectively in our primary markets. Although the Company’s nonperforming assets increased during the year, our low levels of net charge-offs excluding overdraft depository accounts of 0.07% in 2007 compares favorably to prior years and past due loans remain low at only 0.64% of total loans.
Beyond maintaining its financial performance, the Company has embarked upon strategies to grow the franchise in 2007. The Company opened a new 7,500 square foot office in Martinsburg, WV that serves as the headquarters for the bank’s presence in the eastern panhandle of West Virginia, opened a new branch facility in Princeton, WV, and a new in-store branch in Ripley, WV. In addition, we continued to acquire additional parcels of land for future branch expansion and plan to start construction of a new location in Hurricane, WV during the second quarter of 2008.”
Net Interest Income
The Company’s tax equivalent net interest income decreased $5.4 million, or 5.2%, from $103.4 million in 2006 to $97.9 million in 2007. This decrease is primarily attributable to two factors. First, the Company experienced a decrease of $2.1 million in interest income from previously securitized loans for the year ended December 31, 2007 as compared to the year ended December 31, 2006 as the average balance of these loans decreased 52.8%. The decrease in average balances was partially mitigated by an increase in the yield on these loans from 42.2% for the year ended December 31, 2006 to 69.1% for the year ended December 31, 2007 (see Previously Securitized Loans).
Secondly, the Company’s reported net interest margin experienced compression to 4.34% for the year ended December 31, 2007 as compared to 4.56% for the year ended December 31, 2006. Excluding Previously Securitized Loans and the sale of the Company’s retail credit card portfolio during the third quarter of 2006, the Company’s net interest margin, decreased from 4.22% for the year ended December 31, 2006 to 4.08% for the year ended December 31, 2007 resulting in a reduction of approximately $2.9 million in net interest income. While the average yield on the Company’s loans (net of Previously Securitized Loans) increased from 6.99% for the year ended December 31, 2006 to 7.11% for the year ended December 31, 2007, the average cost of interest bearing liabilities increased from 2.84% for the year ended December 31, 2006 to 3.19% for the year ended December 31, 2007. The increase in the average cost of interest bearing liabilities can in turn be linked to an increase in the cost of time deposits of 52 basis points between the years ended December 31, 2006 and 2007.
The Company’s tax equivalent net interest income decreased $1.0 million, or 4.2%, from $25.3 million during the fourth quarter of 2006 to $24.3 million during the fourth quarter of 2007. This decrease is attributable to two factors. First, the Company experienced a decrease of $0.3 million in interest income from previously securitized loans in the fourth quarter of 2007 as compared to the fourth quarter of 2006 as the average balance of these loans decreased 56.4%. The decrease in average balances was partially mitigated by an increase in the yield on these loans from 46.6% for the fourth quarter of 2006 to 93.2% for the fourth quarter of 2007 (see Previously Securitized Loans).
Secondly, the Company’s reported net interest margin experienced compression to 4.32% in the fourth quarter of 2007 as compared to 4.43% in the fourth quarter of 2006. The Company’s net interest margin exclusive of Previously Securitized Loans decreased from 4.20% for the fourth quarter of 2006 to 4.05% for the fourth quarter of 2007 resulting in the reduction of approximately $1.1 million in net interest income. The average yield on the Company’s loans (exclusive of Previously Securitized Loans) decreased from 7.14% in the fourth quarter of 2006 to 7.04% in the fourth quarter of 2007, while the average cost of interest bearing liabilities increased from 3.08% in the fourth quarter of 2006 to 3.16% in the fourth quarter of 2007. The increase in the average cost of interest bearing liabilities can in turn be linked to an increase in the cost of time deposits of 16 basis points between the fourth quarters of 2006 and 2007.
Credit Quality
At December 31, 2007, the Allowance for Loan Losses (“ALLL”) was $17.6 million or 1.00% of total loans outstanding and 103% of non-performing loans compared to $15.4 million or 0.92% of loans outstanding and 385% of non-performing loans at December 31, 2006, and $17.0 million or 0.99% of loans outstanding and 87% of non-performing loans at September 30, 2007.
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 fourth quarter of 2007 and $5.4 million for the year ended December 31, 2007 compared to $0.9 million and $3.8 million for the comparable periods in 2006. The provision for loan losses recorded during 2007 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 collectibility of the loans. Additionally, the provision reflects an increase in the balance of commercial loans during the year. Changes in the amount of the provision and related allowance are based on the Company’s detailed methodology and are directionally consistent with changes in credit quality, growth, and 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.
The Company’s ratio of non-performing assets to total loans and other real estate owned increased from 0.25% at December 31, 2006 to 1.20% at December 31, 2007 as a result of the downgrade of certain credit relationships mentioned earlier. The Company’s ratio at September 30, 2007 was 1.23%. This increase is attributable primarily to the difficulties encountered by certain commercial customers during 2007 and their related borrowings have been classified as substandard. Approximately 70% of the nonperforming loans at December 31, 2007 are due to a softening of the real estate market in Southeastern West Virginia. The remainder of the nonperforming loans are unrelated. Based on our analysis, the Company believes that the reserves allocated to the substandard loans and the value of the collateral securing such loans are adequate to cover losses that may result from these loans. While the Company’s non-performing assets have increased, our ratio of non-performing assets to total loans and other real estate owned continues to approximate that of our peer group (bank holding companies with total assets between $1 and $5 billion), which reported average non-performing assets as a percentage of loans and other real estate owned of 1.15% for the most recently reported quarter ended September 30, 2007.
The Company had net charge-offs of $1.0 million for the fourth quarter of 2007, with depository accounts representing $0.5 million (or approximately 51%) of this total. While charge-offs on depository accounts are appropriately taken against the ALLL, the revenue associated with depository accounts is reflected in service charges and has been steadily growing as the core base of checking accounts has grown. Net charge-offs on commercial and residential loans were $0.3 million and $0.2 million, respectively, for the fourth quarter, while installment loans experienced no net charge-offs during the quarter. The increase in charge-offs on commercial loans was primarily related to one credit that had been appropriately considered in establishing the allowance for loan losses in prior periods. Trends with respect to net charge-offs are improving, with annualized net charge-offs related to loans (excluding overdrafts) of 0.07% for 2007, as compared with 0.11% for 2006 and 0.22% for 2005.
Non-interest Income
For the full year, exclusive of investment securities gains /(losses) and the gain from the sale of the Company’s retail credit card portfolio and merchant credit card agreements, non-interest income increased $2.0 million, or 3.7%, from $52.6 million in 2006 to $54.6 million in 2007. Service charges from depository accounts increased $1.8 million, or 4.4%, from $42.6 million in 2006 to $44.4 million in 2007. Insurance commission revenues increased $1.8 million, or 75.2% due to the hiring of additional staff by City Insurance to provide worker’s compensation insurance to West Virginia businesses and to bolster the Company’s team of insurance agents focused on selling directly to retail customers. Partially off-setting these increases was a decrease in other income of $1.7 million due to lower credit card fee income as a result of the sale of the retail credit card portfolio during the third quarter of 2006 and the sale of the merchant credit card processing agreements during the first quarter of 2007.
Exclusive of investment security gains, non-interest income increased $0.8 million to $14.3 million in the fourth quarter of 2007 as compared to $13.5 million in the fourth quarter of 2006. The largest source of non-interest income is service charges from depository accounts, which increased $0.7 million, or 7.1%, from $11.0 million during the fourth quarter of 2006 to $11.7 million during the third quarter of 2007. Insurance commission revenues increased $0.4 million, or 65.8% due to the hiring of additional staff by City Insurance to provide worker’s compensation insurance to West Virginia businesses and to bolster the Company’s team of insurance agents focused on selling directly to retail customers. Partially off-setting these increases was a decrease in other income of $0.5 million that was primarily due to the sale of the merchant credit card processing agreements during the first quarter of 2007.
Non-interest Expenses
For the full year, non-interest expenses increased $1.1 million, or 1.6%, from $69.9 million in 2006 to $71.0 million in 2007, excluding $1.4 million of recognized losses from the redemption of $12.0 million of trust preferred securities during 2006. Salaries and employee benefits increased $1.5 million, or 4.5%, from 2006 due in part to additional staffing for new retail locations and insurance personnel to support the introduction of worker’s compensation insurance. Bankcard expenses increased $0.4 million, or 19.9%, due to increased usage by customers. These increases were partially offset by a $0.5 million decrease in other expenses. The decrease in other expenses was due to a $1.4 million decrease as a result of the sales of the retail and merchant card portfolios. That decrease was partially offset by a $1.0 million charge related to the Company’s proportionate share of certain losses incurred by Visa U.S.A. Inc. (see Visa U.S.A. Inc.).
Non-interest expenses decreased $0.2 million from $18.1 million in the fourth quarter of 2006 to $17.9 million in the fourth quarter of 2007. Net of charges of $0.7 million related to the redemption of $6.0 million of the Company’s trust preferred securities, non-interest expenses increased $0.5 million (or 2.7%) to $17.9 million in the fourth quarter of 2007 as compared to $17.4 million in the fourth quarter of 2006. Salaries and employee benefits increased $0.4 million, or 4.8%, from the fourth quarter of 2006 due to additional staffing and other expenses increased $0.4 million, or 15.5%. The increase in other expenses was caused by a $1.0 million charge related to the Company’s proportionate share of certain losses incurred by Visa U.S.A. Inc. (see Visa U.S.A. Inc.) that was partially offset by a decrease of $0.3 million decrease in other taxes during the quarter. These increases were partially offset by decreases in advertising of $0.3 million, or 32.6%.
VISA U.S.A. Inc.
As a result of the Company’s membership interest in Visa U.S.A. Inc. (“Visa”), the Company was allocated expense of approximately $1.0 million in connection with pending and settled antitrust litigation against Visa during the fourth quarter of 2007. The litigation relates to an antitrust lawsuit brought by American Express against Visa that originated in 2004 and settled as of November 9, 2007, and litigation brought by Discover Financial Services (“Discover”) against Visa. Visa has described the aforementioned litigation matters and settlement with American Express in filings with the Securities and Exchange Commission. City is not a named defendant in either of the aforementioned lawsuits and, therefore, will not be directly liable for any amount of the settlement. However, in accordance with Visa’s by-laws, City may be required to share in certain losses incurred by Visa above and beyond the amounts described above.
On October 3, 2007, Visa announced that it had completed restructuring transactions in preparation for its initial public offering (“IPO”), which is expected to occur in the first half of 2008. As part of this restructuring, the Company received approximately 150,000 Class USAshares of Visa common stock. It is anticipated that some of these shares will be redeemed as part of the IPO with the remaining shares converted to Class A shares on the third anniversary of the IPO or upon Visa’s settlement of certain litigation matters, whichever is later. Visa is expected to apply a portion of the proceeds from the IPO to fund an escrow account to cover certain litigation judgments and settlements. The Company anticipates that Visa’s escrow account will be sufficient to settle such litigation judgments and settlements with American Express and Discover. The Company also expects that, if and when Visa’s IPO occurs, the Company would no longer share any liability in connection with such litigation, and would realize recovery of the expense recorded by the Company prior to the IPO.
Income Tax Expense
The Company’s effective income tax rate decreased from 34.8% for the year ended December 31, 2006 to 33.6% for the year ended December 31, 2007. This decrease was attributable to a decrease in the West Virginia corporate state tax rate, an increase in tax-exempt loan income, and the realization of $0.2 million of previously unrecognized tax positions during the third quarter of 2007.
Balance Sheet Trends
As compared to December 31, 2006, loans have increased $89.5 million (5.3%) at December 31, 2007 with increases in loans to depository institutions of $35.0 million (140.0%), commercial loans of $34.3 million (5.1%), home equity loans of $20.1 million (6.3%), installment loans of $5.3 (12.4%), and residential real estate loans of $3.6 million (0.6%). These increases were partially offset by decreases in previously securitized loans of $8.7 million (see Previously Securitized Loans).
Total average depository balances decreased $1.5 million, or 0.1%, from the quarter ended December 31, 2006 to the quarter ended December 31, 2007. This decrease was attributable to decreases in average interest bearing demand deposits ($21.9 million) and noninterest bearing demand deposits ($17.4 million) being partially offset by increases in savings deposits ($30.2 million) and time deposits ($7.6 million).
Previously Securitized Loans
At December 31, 2007, the Company reported “Previously Securitized Loans” of $6.9 million compared to $15.6 million at December 31, 2006, representing a decrease of 55.8%. The yield on the previously securitized loans was 93.2% for the quarter ended December 31, 2007, compared to 82.9% for the quarter ended September 30, 2007, and 46.6% for the quarter ended December 31, 2006. The yield on the previously securitized loans has increased due to improved cash flows as net default rates have been less than previously estimated. The default rates have decreased as a result of the Company’s assumption of the servicing of all of the pool balances during the second quarter of 2005. Subsequent to our assumption of the servicing of these loans, the Company has experienced net recoveries but does not believe that the trend of net recoveries can be sustained indefinitely.
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 88.8% and the loan to asset ratio was 71.2% at December 31, 2007. The Company maintained investment securities totaling 16.8% of assets as of this date. Further, the Company’s deposit mix is weighted heavily toward checking and saving accounts that fund 42.8% of assets at December 31, 2007. Time deposits fund 37.4% of assets at December 31, 2007, 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. With respect to regulatory capital, at December 31, 2007, the Company’s Leverage Ratio is 10.31%, the Tier I Capital ratio is 14.12%, and the Total Risk-Based Capital ratio is 15.11%. These regulatory capital ratios are significantly above levels required to be considered “well capitalized,” which is the highest possible regulatory designation.
The Company repurchased 890,600 common shares at a weighted average price of $37.39 as part of a one million share repurchase plan authorized by the Board of Directors in December 2006. On August 21, 2007, the Company announced that the Board of Directors authorized the Company to buy back up to one million shares of its common shares (approximately 5% of outstanding shares) in open market transactions at prices that are accretive to the earnings per share of continuing shareholders. No time limit was placed on the duration of the share repurchase program. As part of this authorization, the Company rescinded the previous share repurchase program plan approved in December 2006.
As a result of repurchases completed in 2007, the Company’s outstanding shares decreased 1,314,112 shares during the year (exclusive of stock option exercises), providing the Company’s shareholders increased earnings capacity as shares repurchased improve earnings per share on the remaining shares outstanding. As of January 19, 2008, the Company has approximately 512,000 shares remaining for repurchase under the plan approved by the Board of Directors in August 2007. The repurchase of 1,314,112 shares during 2007 represents 7.5% of total shares outstanding as of December 31, 2006. The Company’s tangible equity ratio was 9.7% at December 31, 2007 compared with a tangible equity ratio of 10.1% at December 31, 2006.
City Holding Company is the parent company of City National Bank of West Virginia. City National operates 69 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 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; and (12) the Company may experience difficulties growing loan and deposit balances. 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) | | | | | | | | | |
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| | | Three Months Ended December 31, | | | Percent | |
| | | 2007 | | | 2006 | | | Change | |
| | | | | | | | | | |
| Earnings ($000s, except per share data): | | | | | | | | | |
| Net Interest Income (FTE) | | $ | 24,264 | | | $ | 25,333 | | | | (4.22 | )% |
| Net Income | | | 12,758 | | | | 12,939 | | | | (1.40 | )% |
| Earnings per Basic Share | | | 0.78 | | | | 0.74 | | | | 5.41 | % |
| Earnings per Diluted Share | | | 0.78 | | | | 0.74 | | | | 5.41 | % |
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| Key Ratios (percent): | | | | | | | | | | | | |
| Return on Average Assets | | | 2.05 | % | | | 2.06 | % | | | (0.36 | )% |
| Return on Average Tangible Equity | | | 21.56 | % | | | 20.98 | % | | | 2.76 | % |
| Net Interest Margin | | | 4.32 | % | | | 4.43 | % | | | (2.62 | )% |
| Efficiency Ratio | | | 46.15 | % | | | 46.40 | % | | | (0.54 | )% |
| Average Shareholders' Equity to Average Assets | | | 11.84 | % | | | 12.14 | % | | | (2.49 | )% |
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| Consolidated Risk Based Capital Ratios (a): | | | | | | | | | | | | |
| Tier I | | | 14.12 | % | | | 15.30 | % | | | (7.71 | )% |
| Total | | | 15.11 | % | | | 16.19 | % | | | (6.67 | )% |
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| Average Tangible Equity to Average Tangible Assets | | | 9.72 | % | | | 10.06 | % | | | (3.38 | )% |
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| Common Stock Data: | | | | | | | | | | | | |
| Cash Dividends Declared per Share | | $ | 0.31 | | | $ | 0.28 | | | | 10.71 | % |
| Book Value per Share | | | 18.14 | | | | 17.46 | | | | 3.92 | % |
| Tangible Book Value per Share | | | 14.55 | | | | 14.09 | | | | 3.24 | % |
| Market Value per Share: | | | | | | | | | | | | |
| High | | | 39.15 | | | | 41.87 | | | | (6.50 | )% |
| Low | | | 33.41 | | | | 37.49 | | | | (10.88 | )% |
| End of Period | | | 33.84 | | | | 40.89 | | | | (17.24 | )% |
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| Price/Earnings Ratio (b) | | | 10.85 | | | | 13.81 | | | | (21.49 | )% |
| | | Twelve Months Ended December 31 | | | Percent | |
| | | 2007 | | | 2006 | | | Change | |
| | | | | | | | | | | | | |
| Earnings ($000s, except per share data): | | | | | | | | | | | | |
| Net Interest Income (FTE) | | $ | 97,947 | | | $ | 103,359 | | | | (5.24 | )% |
| Net Income | | | 51,026 | | | | 53,187 | | | | (4.06 | )% |
| Earnings per Basic Share | | | 3.02 | | | | 3.00 | | | | 0.67 | % |
| Earnings per Diluted Share | | | 3.01 | | | | 2.99 | | | | 0.67 | % |
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| Key Ratios (percent): | | | | | | | | | | | | |
| Return on Average Assets | | | 2.03 | % | | | 2.11 | % | | | (3.87 | )% |
| Return on Average Tangible Equity | | | 20.99 | % | | | 22.37 | % | | | (6.19 | )% |
| Net Interest Margin | | | 4.34 | % | | | 4.56 | % | | | (4.79 | )% |
| Efficiency Ratio | | | 45.91 | % | | | 44.49 | % | | | 3.20 | % |
| Average Shareholders' Equity to Average Assets | | | 12.01 | % | | | 11.80 | % | | | 1.78 | % |
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| Common Stock Data: | | | | | | | | | | | | |
| Cash Dividends Declared per Share | | $ | 1.24 | | | $ | 1.12 | | | | 10.71 | % |
| Market Value per Share: | | | | | | | | | | | | |
| High | | | 41.54 | | | | 41.87 | | | | (0.79 | )% |
| Low | | | 31.16 | | | | 34.53 | | | | (9.76 | )% |
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| (a) December 31, 2007 risk-based capital ratios are estimated | | | | | | | | | |
| (b) December 31, 2007 price/earnings ratio computed based on annualized fourth quarter 2007 earnings | | | | | |
| CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | | | | | | | | |
| Financial Highlights | | | | | | | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | | | | | | | | | |
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| 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 | |
| | | | | | | | | | | | | | | | | | | |
| 2003 | | $ | 10.10 | | | $ | 10.74 | | | $ | 11.03 | | | $ | 11.46 | | | $ | 25.50 | | | $ | 37.15 | |
| 2004 | | | 12.09 | | | | 11.89 | | | | 12.70 | | | | 13.03 | | | | 27.30 | | | | 37.58 | |
| 2005 | | | 13.20 | | | | 15.56 | | | | 15.99 | | | | 16.14 | | | | 27.57 | | | | 39.21 | |
| 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 | |
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| Earnings per Basic Share | | | | | | | | | | | | | | | | | | | | | |
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| | | Quarter Ended | | | | | |
| | | March 31 | | | June 30 | | | September 30 | | | December 31 | | | Year-to-Date | | | | | |
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| 2003 | | $ | 0.56 | | | $ | 0.73 | | | $ | 0.69 | | | $ | 0.64 | | | $ | 2.62 | | | | | |
| 2004 | | | 0.66 | | | | 0.80 | | | | 0.66 | | | | 0.67 | | | | 2.79 | | | | | |
| 2005 | | | 0.70 | | | | 0.72 | | | | 0.73 | | | | 0.72 | | | | 2.87 | | | | | |
| 2006 | | | 0.71 | | | | 0.78 | | | | 0.78 | | | | 0.74 | | | | 3.00 | | | | | |
| 2007 | | | 0.76 | | | | 0.72 | | | | 0.76 | | | | 0.78 | | | | 3.02 | | | | | |
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| Earnings per Diluted Share | | | | | | | | | | | | | | | | | | | | | |
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| | | Quarter Ended | | | | | |
| | | March 31 | | | June 30 | | | September 30 | | | December 31 | | | Year-to-Date | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| 2003 | | $ | 0.55 | | | $ | 0.72 | | | $ | 0.68 | | | $ | 0.63 | | | $ | 2.58 | | | | | |
| 2004 | | | 0.65 | | | | 0.79 | | | | 0.65 | | | | 0.66 | | | | 2.75 | | | | | |
| 2005 | | | 0.69 | | | | 0.71 | | | | 0.72 | | | | 0.72 | | | | 2.84 | | | | | |
| 2006 | | | 0.71 | | | | 0.77 | | | | 0.77 | | | | 0.74 | | | | 2.99 | | | | | |
| 2007 | | | 0.76 | | | | 0.72 | | | | 0.76 | | | | 0.78 | | | | 3.01 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| Consolidated Statements of Income | | | | | | |
| (Unaudited) ($ in 000s, except per share data) | | | | | | |
| | | | | | | |
| | | Three Months Ended December 31, | |
| | | 2007 | | | 2006 | |
| | | | | | | |
| Interest Income | | | | | | |
| Interest and fees on loans | | $ | 32,477 | | | $ | 32,157 | |
| Interest on investment securities: | | | | | | | | |
| Taxable | | | 5,968 | | | | 6,800 | |
| Tax-exempt | | | 420 | | | | 423 | |
| Interest on deposits in depository institutions | | | 119 | | | | 459 | |
| Interest on federal funds sold | | | 5 | | | | 86 | |
| Total Interest Income | | | 38,989 | | | | 39,925 | |
| | | | | | | | | |
| Interest Expense | | | | | | | | |
| Interest on deposits | | | 12,847 | | | | 12,543 | |
| Interest on short-term borrowings | | | 1,677 | | | | 1,304 | |
| Interest on long-term debt | | | 426 | | | | 973 | |
| Total Interest Expense | | | 14,950 | | | | 14,820 | |
| Net Interest Income | | | 24,039 | | | | 25,105 | |
| Provision for loan losses | | | 1,650 | | | | 901 | |
| Net Interest Income After Provision for Loan Losses | | | 22,389 | | | | 24,204 | |
| | | | | | | | | |
| Non-Interest Income | | | | | | | | |
| Investment securities gains | | | 1 | | | | 72 | |
| Service charges | | | 11,735 | | | | 10,962 | |
| Insurance commissions | | | 1,119 | | | | 675 | |
| Trust and investment management fee income | | | 514 | | | | 498 | |
| Bank owned life insurance | | | 600 | | | | 576 | |
| Other income | | | 312 | | | | 803 | |
| Total Non-Interest Income | | | 14,281 | | | | 13,586 | |
| | | | | | | | | |
| Non-Interest Expense | | | | | | | | |
| Salaries and employee benefits | | | 8,759 | | | | 8,354 | |
| Occupancy and equipment | | | 1,604 | | | | 1,655 | |
| Depreciation | | | 1,133 | | | | 1,037 | |
| Professional fees | | | 424 | | | | 415 | |
| Postage, delivery, and statement mailings | | | 601 | | | | 735 | |
| Advertising | | | 590 | | | | 876 | |
| Telecommunications | | | 456 | | | | 549 | |
| Bankcard expenses | | | 617 | | | | 478 | |
| Insurance and regulatory | | | 422 | | | | 375 | |
| Office supplies | | | 469 | | | | 408 | |
| Repossessed asset (gains) losses, net of expenses | | | (105 | ) | | | 6 | |
| Loss on early extinguishment of debt | | | - | | | | 708 | |
| Other expenses | | | 2,891 | | | | 2,503 | |
| Total Non-Interest Expense | | | 17,861 | | | | 18,099 | |
| Income Before Income Taxes | | | 18,809 | | | | 19,691 | |
| Income tax expense | | | 6,051 | | | | 6,752 | |
| Net Income | | $ | 12,758 | | | $ | 12,939 | |
| | | | | | | | | |
| Basic earnings per share | | $ | 0.78 | | | $ | 0.74 | |
| Diluted earnings per share | | $ | 0.78 | | | $ | 0.74 | |
| Average Common Shares Outstanding: | | | | | | | | |
| Basic | | | 16,359 | | | | 17,535 | |
| Diluted | | | 16,414 | | | | 17,601 | |
| CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | |
| Consolidated Statements of Income | | | | | | |
| (Unaudited) ($ in 000s, except per share data) | | | | | | |
| | | | | | | |
| | | Twelve months ended December 31 | |
| | | 2007 | | | 2006 | |
| | | | | | | |
| Interest Income | | | | | | |
| Interest and fees on loans | | $ | 128,609 | | | $ | 123,945 | |
| Interest on investment securities: | | | | | | | | |
| Taxable | | | 25,677 | | | | 28,418 | |
| Tax-exempt | | | 1,689 | | | | 1,782 | |
| Interest on loans held for sale | | | - | | | | 322 | |
| Interest on deposits in depository institutions | | | 521 | | | | 1,477 | |
| Interest on federal funds sold | | | 819 | | | | 179 | |
| Total Interest Income | | | 157,315 | | | | 156,123 | |
| | | | | | | | | |
| Interest Expense | | | | | | | | |
| Interest on deposits | | | 51,826 | | | | 44,046 | |
| Interest on short-term borrowings | | | 6,642 | | | | 5,099 | |
| Interest on long-term debt | | | 1,808 | | | | 4,579 | |
| Total Interest Expense | | | 60,276 | | | | 53,724 | |
| Net Interest Income | | | 97,039 | | | | 102,399 | |
| Provision for loan losses | | | 5,350 | | | | 3,801 | |
| Net Interest Income After Provision for Loan Losses | | | 91,689 | | | | 98,598 | |
| | | | | | | | | |
| Non-Interest Income | | | | | | | | |
| Investment securities gains (losses) | | | 45 | | | | (1,995 | ) |
| Service charges | | | 44,416 | | | | 42,559 | |
| Insurance commissions | | | 4,090 | | | | 2,335 | |
| Trust and investment management fee income | | | 2,042 | | | | 2,140 | |
| Bank owned life insurance | | | 2,477 | | | | 2,352 | |
| Gain on sale of credit card merchant agreements | | | 1,500 | | | | 3,563 | |
| Other income | | | 1,566 | | | | 3,249 | |
| Total Non-Interest Income | | | 56,136 | | | | 54,203 | |
| | | | | | | | | |
| Non-Interest Expense | | | | | | | | |
| Salaries and employee benefits | | | 36,034 | | | | 34,484 | |
| Occupancy and equipment | | | 6,366 | | | | 6,481 | |
| Depreciation | | | 4,472 | | | | 4,219 | |
| Professional fees | | | 1,628 | | | | 1,760 | |
| Postage, delivery, and statement mailings | | | 2,588 | | | | 2,832 | |
| Advertising | | | 3,123 | | | | 3,216 | |
| Telecommunications | | | 1,809 | | | | 2,048 | |
| Bankcard expenses | | | 2,354 | | | | 1,964 | |
| Insurance and regulatory | | | 1,555 | | | | 1,528 | |
| Office supplies | | | 1,838 | | | | 1,578 | |
| Repossessed asset (gains), net of expenses | | | (157 | ) | | | (98 | ) |
| Loss on early extinguishment of debt | | | - | | | | 1,368 | |
| Other expenses | | | 9,403 | | | | 9,905 | |
| Total Non-Interest Expense | | | 71,013 | | | | 71,285 | |
| Income Before Income Taxes | | | 76,812 | | | | 81,516 | |
| Income tax expense | | | 25,786 | | | | 28,329 | |
| Net Income | | $ | 51,026 | | | $ | 53,187 | |
| | | | | | | | | |
| Basic earnings per share | | $ | 3.02 | | | $ | 3.00 | |
| Diluted earnings per share | | $ | 3.01 | | | $ | 2.99 | |
| Average Common Shares Outstanding: | | | | | | | | |
| Basic | | | 16,877 | | | | 17,701 | |
| Diluted | | | 16,935 | | | | 17,762 | |
| | | | | | |
| Consolidated Statements of Changes in Stockholders' Equity | | | | | | |
| (Unaudited) ($ in 000s) | | | | | | |
| | | | | | | |
| | | | | | | |
| | | Three Months Ended | |
| | | December 31, 2007 | | | December 31, 2006 | |
| | | | | | | |
| Balance at October 1 | | $ | 291,720 | | | $ | 298,327 | |
| | | | | | | | | |
| Net income | | | 12,758 | | | | 12,939 | |
| Other comprehensive income: | | | | | | | | |
| Change in unrealized gain on securities available-for-sale | | | 783 | | | | 1,913 | |
| Change in underfunded pension liability | | | 696 | | | | 503 | |
| Change in unrealized gain on interest rate floors | | | 3,550 | | | | (663 | ) |
| Cash dividends declared ($0.31/share) | | | (5,025 | ) | | | - | |
| Cash dividends declared ($0.28/share) | | | - | | | | (4,896 | ) |
| Issuance of stock award shares, net | | | 56 | | | | 13 | |
| Exercise of 6,488 stock options | | | - | | | | 145 | |
| Excess tax benefits on stock compensation | | | - | | | | 47 | |
| Purchase of 300,112 common shares of treasury | | | (10,544 | ) | | | - | |
| Purchase of 76,700 common shares of treasury | | | - | | | | (3,021 | ) |
| Balance at December 31 | | $ | 293,994 | | | $ | 305,307 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | Twelve Months Ended | |
| | | December 31, 2007 | | | December 31, 2006 | |
| | | | | | | | | |
| Balance at January 1 | | $ | 305,307 | | | $ | 292,141 | |
| | | | | | | | | |
| Cumulative effect of adopting FIN 48 | | | (125 | ) | | | - | |
| Net income | | | 51,026 | | | | 53,187 | |
| Other comprehensive income: | | | | | | | | |
| Change in unrealized gain on securities available-for-sale | | | 866 | | | | 2,190 | |
| Change in unrealized gain on interest rate floors | | | 4,600 | | | | (210 | ) |
| Change in underfunded pension liability | | | 696 | | | | 503 | |
| Cash dividends declared ($1.24/share) | | | (20,728 | ) | | | - | |
| Cash dividends declared ($1.12/share) | | | - | | | | (19,721 | ) |
| Issuance of stock award shares, net | | | 427 | | | | 484 | |
| Exercise of 7,300 stock options | | | 154 | | | | - | |
| Exercise of 46,423 stock options | | | - | | | | 798 | |
| Excess tax benefits on stock compensation | | | 3 | | | | 269 | |
| Purchase of 1,314,112 common shares of treasury | | | (48,232 | ) | | | - | |
| Purchase of 666,753 common shares of treasury | | | - | | | | (24,334 | ) |
| Balance at December 31 | | $ | 293,994 | | | $ | 305,307 | |
| | | | | | | | | | |
| Condensed Consolidated Quarterly Statements of Income | | | | | | | |
| (Unaudited) ($ in 000s, except per share data) | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | Dec. 31 | | | Sept. 30 | | | June 30 | | | March 31 | | | Dec. 31 | |
| | | 2007 | | | 2007 | | | 2007 | | | 2007 | | | 2006 | |
| | | | | | | | | | | | | | | | |
| Interest income | | $ | 38,989 | | | $ | 39,597 | | | $ | 39,530 | | | $ | 39,198 | | | $ | 39,925 | |
| Taxable equivalent adjustment | | | 226 | | | | 224 | | | | 231 | | | | 230 | | | | 228 | |
| Interest income (FTE) | | | 39,215 | | | | 39,821 | | | | 39,761 | | | | 39,428 | | | | 40,153 | |
| Interest expense | | | 14,950 | | | | 15,374 | | | | 15,196 | | | | 14,756 | | | | 14,820 | |
| Net interest income | | | 24,265 | | | | 24,447 | | | | 24,565 | | | | 24,672 | | | | 25,333 | |
| Provision for loan losses | | | 1,650 | | | | 1,200 | | | | 1,600 | | | | 900 | | | | 901 | |
| Net interest income after provision | | | | | | | | | | | | | | | | | | | | |
| for loan losses | | | 22,615 | | | | 23,247 | | | | 22,965 | | | | 23,772 | | | | 24,432 | |
| | | | | | | | | | | | | | | | | | | | | |
| Noninterest income | | | 14,281 | | | | 13,814 | | | | 13,689 | | | | 14,371 | | | | 13,586 | |
| Noninterest expense | | | 17,861 | | | | 18,031 | | | | 17,525 | | | | 17,616 | | | | 18,099 | |
| Income before income taxes | | | 19,035 | | | | 19,030 | | | | 19,129 | | | | 20,527 | | | | 19,919 | |
| Income tax expense | | | 6,051 | | | | 6,092 | | | | 6,576 | | | | 7,066 | | | | 6,752 | |
| Taxable equivalent adjustment | | | 226 | | | | 224 | | | | 231 | | | | 230 | | | | 228 | |
| Net income | | $ | 12,758 | | | $ | 12,714 | | | $ | 12,322 | | | $ | 13,231 | | | $ | 12,939 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Basic earnings per share | | $ | 0.78 | | | $ | 0.76 | | | $ | 0.72 | | | $ | 0.76 | | | $ | 0.74 | |
| Diluted earnings per share | | | 0.78 | | | | 0.76 | | | | 0.72 | | | | 0.76 | | | | 0.74 | |
| Cash dividends declared per share | | | 0.31 | | | | 0.31 | | | | 0.31 | | | | 0.31 | | | | 0.28 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Average Common Share (000s): | | | | | | | | | | | | | | | | | | | | |
| Outstanding | | | 16,359 | | | | 16,714 | | | | 17,100 | | | | 17,369 | | | | 17,535 | |
| Diluted | | | 16,414 | | | | 16,767 | | | | 17,158 | | | | 17,424 | | | | 17,601 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net Interest Margin | | | 4.32 | % | | | 4.32 | % | | | 4.32 | % | | | 4.41 | % | | | 4.43 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Non-Interest Income and Non-Interest Expense | | | | | | | | | | | | | | | |
| (Unaudited) ($ in 000s) | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | Dec. 31 | | | Sept. 30 | | | June 30 | | | Mar 31 | | | Dec. 31 | |
| | | 2007 | | | 2007 | | | 2007 | | | 2007 | | | 2006 | |
| | | | | | | | | | | | | | | | |
| Non-Interest Income: | | | | | | | | | | | | | | | |
| Service charges | | $ | 11,735 | | | $ | 11,192 | | | $ | 11,426 | | | $ | 10,063 | | | $ | 10,962 | |
| Insurance commissions | | | 1,119 | | | | 1,127 | | | | 832 | | | | 1,012 | | | | 675 | |
| Trust and investment management fee income | | | 514 | | | | 523 | | | | 437 | | | | 568 | | | | 498 | |
| Bank owned life insurance | | | 600 | | | | 596 | | | | 585 | | | | 696 | | | | 576 | |
| Other income | | | 312 | | | | 377 | | | | 364 | | | | 513 | | | | 803 | |
| Subtotal | | | 14,280 | | | | 13,815 | | | | 13,644 | | | | 12,852 | | | | 13,514 | |
| Investment securities gains (losses) | | | 1 | | | | (1 | ) | | | 45 | | | | - | | | | 72 | |
| Gain on sale of credit card merchant agreements | | | - | | | | - | | | | - | | | | 1,500 | | | | - | |
| Total Non-Interest Income | | $ | 14,281 | | | $ | 13,814 | | | $ | 13,689 | | | $ | 14,352 | | | $ | 13,586 | |
| | | | | | | | | | | | | | | | | | | | | |
| Non-Interest Expense: | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | $ | 8,759 | | | $ | 9,307 | | | $ | 8,912 | | | $ | 9,057 | | | $ | 8,354 | |
| Occupancy and equipment | | | 1,604 | | | | 1,600 | | | | 1,525 | | | | 1,637 | | | | 1,655 | |
| Depreciation | | | 1,133 | | | | 1,160 | | | | 1,109 | | | | 1,070 | | | | 1,037 | |
| Professional fees | | | 424 | | | | 416 | | | | 385 | | | | 403 | | | | 415 | |
| Postage, delivery, and statement mailings | | | 601 | | | | 641 | | | | 569 | | | | 777 | | | | 735 | |
| Advertising | | | 590 | | | | 801 | | | | 880 | | | | 852 | | | | 876 | |
| Telecommunications | | | 456 | | | | 438 | | | | 460 | | | | 455 | | | | 549 | |
| Bankcard expenses | | | 617 | | | | 623 | | | | 597 | | | | 518 | | | | 478 | |
| Insurance and regulatory | | | 422 | | | | 364 | | | | 383 | | | | 385 | | | | 375 | |
| Office supplies | | | 469 | | | | 472 | | | | 442 | | | | 455 | | | | 408 | |
| Repossessed asset (gains) losses, net of expenses | | | (105 | ) | | | (47 | ) | | | 9 | | | | (14 | ) | | | 6 | |
| Loss on early extinguishment of debt | | | - | | | | - | | | | - | | | | - | | | | 708 | |
| Other expenses | | | 2,891 | | | | 2,256 | | | | 2,254 | | | | 2,002 | | | | 2,503 | |
| Total Non-Interest Expense | | $ | 17,861 | | | $ | 18,031 | | | $ | 17,525 | | | $ | 17,597 | | | $ | 18,099 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Employees (Full Time Equivalent) | | | 811 | | | | 808 | | | | 807 | | | | 791 | | | | 779 | |
| Branch Locations | | | 69 | | | | 68 | | | | 68 | | | | 68 | | | | 67 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| Consolidated Balance Sheets | | | | | | |
| ($ in 000s) | | | | | | |
| | | December 31 | | | December 31 | |
| | | 2007 | | | 2006 | |
| | | (Unaudited) | | | | |
| Assets | | | | | | |
| Cash and due from banks | | $ | 64,726 | | | $ | 58,014 | |
| Interest-bearing deposits in depository institutions | | | 9,792 | | | | 27,434 | |
| Federal funds sold | | | - | | | | 25,000 | |
| Cash and cash equivalents | | | 74,518 | | | | 110,448 | |
| | | | | | | | | |
| Investment securities available-for-sale, at fair value | | | 382,098 | | | | 472,398 | |
| Investment securities held-to-maturity, at amortized cost | | | 34,918 | | | | 47,500 | |
| Total investment securities | | | 417,016 | | | | 519,898 | |
| | | | | | | | | |
| Gross Loans | | | 1,767,021 | | | | 1,677,469 | |
| Allowance for loan losses | | | (17,581 | ) | | | (15,405 | ) |
| Net loans | | | 1,749,440 | | | | 1,662,064 | |
| | | | | | | | | |
| Bank owned life insurance | | | 64,467 | | | | 55,195 | |
| Premises and equipment | | | 54,635 | | | | 44,689 | |
| Accrued interest receivable | | | 11,254 | | | | 12,337 | |
| Net deferred tax assets | | | 20,633 | | | | 23,652 | |
| Intangible assets | | | 58,238 | | | | 58,857 | |
| Other assets | | | 32,566 | | | | 20,667 | |
| Total Assets | | $ | 2,482,767 | | | $ | 2,507,807 | |
| | | | | | | | | |
| Liabilities | | | | | | | | |
| Deposits: | | | | | | | | |
| Noninterest-bearing | | $ | 314,231 | | | $ | 321,038 | |
| Interest-bearing: | | | | | | | | |
| Demand deposits | | | 397,510 | | | | 422,925 | |
| Savings deposits | | | 350,607 | | | | 321,075 | |
| Time deposits | | | 927,733 | | | | 920,179 | |
| Total deposits | | | 1,990,081 | | | | 1,985,217 | |
| Short-term borrowings | | | 145,080 | | | | 136,570 | |
| Long-term debt | | | 21,809 | | | | 48,069 | |
| Other liabilities | | | 31,803 | | | | 32,644 | |
| Total Liabilities | | | 2,188,773 | | | | 2,202,500 | |
| | | | | | | | | |
| 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, 2007 and December 31, 2006 | | | | | | | | |
| less 2,292,357 and 1,009,095 shares in treasury, respectively | | | 46,249 | | | | 46,249 | |
| Capital surplus | | | 103,390 | | | | 104,043 | |
| Retained earnings | | | 224,386 | | | | 194,213 | |
| Cost of common stock in treasury | | | (80,664 | ) | | | (33,669 | ) |
| Accumulated other comprehensive income (loss): | | | | | | | | |
| Unrealized loss on securities available-for-sale | | | (1,783 | ) | | | (2,649 | ) |
| Unrealized gain (loss) on derivative instruments | | | 4,390 | | | | (210 | ) |
| Underfunded pension liability | | | (1,974 | ) | | | (2,670 | ) |
| Total Accumulated Other Comprehensive Income (Loss) | | | 633 | | | | (5,529 | ) |
| Total Stockholders' Equity | | | 293,994 | | | | 305,307 | |
| Total Liabilities and Stockholders' Equity | | $ | 2,482,767 | | | $ | 2,507,807 | |
| CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | | | | | |
| Loan Portfolio | | | | | | | | | | | | | | | |
| (Unaudited) ($ in 000s) | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Dec 31 | | | Sept 30 | | | June 30 | | | March 31 | | | Dec 31 | |
| | | 2007 | | | 2007 | | | 2007 | | | 2007 | | | 2006 | |
| | | | | | | | | | | | | | | | |
| Residential real estate | | $ | 602,057 | | | $ | 600,094 | | | $ | 601,045 | | | $ | 596,412 | | | $ | 598,502 | |
| Home equity | | | 341,818 | | | | 338,161 | | | | 330,203 | | | | 324,653 | | | | 321,708 | |
| Commercial, financial, and agriculture | | | 707,987 | | | | 666,960 | | | | 681,388 | | | | 663,183 | | | | 673,719 | |
| Loans to depository institutions | | | 60,000 | | | | 60,000 | | | | 60,000 | | | | 50,000 | | | | 25,000 | |
| Installment loans to individuals | | | 48,267 | | | | 46,244 | | | | 47,397 | | | | 44,756 | | | | 42,943 | |
| Previously securitized loans | | | 6,892 | | | | 8,317 | | | | 10,321 | | | | 12,744 | | | | 15,597 | |
| Gross Loans | | $ | 1,767,021 | | | $ | 1,719,776 | | | $ | 1,730,354 | | | $ | 1,691,748 | | | $ | 1,677,469 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | | | | | | | | |
| Previously Securitized Loans | | | | | | | | | | | | | | | | | | | | |
| (Unaudited) ($ in millions) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Annualized | | | Effective | | | | | |
| | | | | | | December 31 | | | Interest | | | Annualized | | | | | |
| | | Year Ended: | | | Balance (a) | | | Income (a) | | | Yield (a) | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | 2005 | | | $ | 30.3 | | | $ | 11.4 | | | | 27 | % | | | | |
| | | 2006 | | | | 15.6 | | | | 9.4 | | | | 42 | % | | | | |
| | | 2007 | | | | 6.9 | | | | 7.3 | | | | 69 | % | | | | |
| | | 2008 | | | | 5.0 | | | | 5.7 | | | | 91 | % | | | | |
| | | 2009 | | | | 3.6 | | | | 4.1 | | | | 91 | % | | | | |
| | | 2010 | | | | 3.1 | | | | 3.2 | | | | 91 | % | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| a - 2005, 2006, and 2007 amounts are based on actual results. 2008, 2009, and 2010 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 actual results being materially different from the amounts estimated above. | |
| | | | | | | | | | |
| Consolidated Average Balance Sheets, Yields, and Rates | | | | | | | |
| (Unaudited) ($ in 000s) | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended December 31, | |
| | | | | | 2007 | | | | | | | | | 2006 | | | | |
| | | Average | | | | | | Yield/ | | | Average | | | | | | Yield/ | |
| | | Balance | | | Interest | | | Rate | | | Balance | | | Interest | | | Rate | |
| | | | | | | | | | | | | | | | | | | |
| Assets: | | | | | | | | | | | | | | | | | | |
| Loan portfolio: | | | | | | | | | | | | | | | | | | |
| Residential real estate | | $ | 599,087 | | | $ | 9,429 | | | | 6.24 | % | | $ | 600,372 | | | $ | 8,853 | | | | 5.85 | % |
| Home equity | | | 339,783 | | | | 6,432 | | | | 7.51 | % | | | 320,302 | | | | 6,439 | | | | 7.98 | % |
| Commercial, financial, and agriculture | | | 685,292 | | | | 12,652 | | | | 7.32 | % | | | 683,776 | | | | 13,223 | | | | 7.67 | % |
| Loans to depository institutions | | | 60,000 | | | | 777 | | | | 5.14 | % | | | 26,691 | | | | 361 | | | | 5.37 | % |
| Installment loans to individuals | | | 47,645 | | | | 1,459 | | | | 12.15 | % | | | 41,827 | | | | 1,297 | | | | 12.30 | % |
| Previously securitized loans | | | 7,359 | | | | 1,728 | | | | 93.16 | % | | | 16,878 | | | | 1,984 | | | | 46.64 | % |
| Total loans | | | 1,739,166 | | | | 32,477 | | | | 7.41 | % | | | 1,689,846 | | | | 32,157 | | | | 7.55 | % |
| Securities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 442,627 | | | | 5,968 | | | | 5.35 | % | | | 494,380 | | | | 6,800 | | | | 5.46 | % |
| Tax-exempt | | | 39,133 | | | | 645 | | | | 6.54 | % | | | 40,006 | | | | 650 | | | | 6.45 | % |
| Total securities | | | 481,760 | | | | 6,613 | | | | 5.45 | % | | | 534,386 | | | | 7,450 | | | | 5.53 | % |
| Deposits in depository institutions | | | 9,322 | | | | 120 | | | | 5.11 | % | | | 37,827 | | | | 459 | | | | 4.81 | % |
| Federal funds sold | | | 435 | | | | 5 | | | | 4.56 | % | | | 5,989 | | | | 87 | | | | 5.76 | % |
| Total interest-earning assets | | | 2,230,683 | | | | 39,215 | | | | 6.97 | % | | | 2,268,048 | | | | 40,153 | | | | 7.02 | % |
| Cash and due from banks | | | 50,695 | | | | | | | | | | | | 49,068 | | | | | | | | | |
| Bank premises and equipment | | | 53,006 | | | | | | | | | | | | 44,073 | | | | | | | | | |
| Other assets | | | 174,938 | | | | | | | | | | | | 172,709 | | | | | | | | | |
| Less: Allowance for loan losses | | | (17,273 | ) | | | | | | | | | | | (15,631 | ) | | | | | | | | |
| Total assets | | $ | 2,492,049 | | | | | | | | | | | $ | 2,518,267 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand deposits | | | 404,613 | | | | 989 | | | | 0.97 | % | | | 426,536 | | | | 1,367 | | | | 1.27 | % |
| Savings deposits | | | 346,955 | | | | 1,446 | | | | 1.65 | % | | | 316,734 | | | | 1,207 | | | | 1.51 | % |
| Time deposits | | | 922,671 | | | | 10,413 | | | | 4.48 | % | | | 915,041 | | | | 9,969 | | | | 4.32 | % |
| Short-term borrowings | | | 166,535 | | | | 1,677 | | | | 4.00 | % | | | 125,448 | | | | 1,304 | | | | 4.12 | % |
| Long-term debt | | | 21,828 | | | | 426 | | | | 7.74 | % | | | 74,200 | | | | 973 | | | | 5.20 | % |
| Total interest-bearing liabilities | | | 1,862,602 | | | | 14,951 | | | | 3.18 | % | | | 1,857,959 | | | | 14,820 | | | | 3.16 | % |
| Noninterest-bearing demand deposits | | | 306,108 | | | | | | | | | | | | 323,500 | | | | | | | | | |
| Other liabilities | | | 28,350 | | | | | | | | | | | | 31,153 | | | | | | | | | |
| Stockholders' equity | | | 294,989 | | | | | | | | | | | | 305,655 | | | | | | | | | |
| Total liabilities and | | | | | | | | | | | | | | | | | | | | | | | | |
| stockholders' equity | | $ | 2,492,049 | | | | | | | | | | | $ | 2,518,267 | | | | | | | | | |
| Net interest income | | | | | | $ | 24,264 | | | | | | | | | | | $ | 25,333 | | | | | |
| Net yield on earning assets | | | | | | | | | | | 4.32 | % | | | | | | | | | | | 4.43 | % |
| | | | | | | | | | |
| Consolidated Average Balance Sheets, Yields, and Rates | | | | | | | |
| (Unaudited) ($ in 000s) | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | Twelve Months Ended December 31, | |
| | | | | | 2007 | | | | | | | | | 2006 | | | | |
| | | Average | | | | | | Yield/ | | | Average | | | | | | Yield/ | |
| | | Balance | | | Interest | | | Rate | | | Balance | | | Interest | | | Rate | |
| | | | | | | | | | | | | | | | | | | |
| Assets: | | | | | | | | | | | | | | | | | | |
| Loan portfolio: | | | | | | | | | | | | | | | | | | |
| Residential real estate | | $ | 597,216 | | | $ | 36,573 | | | | 6.12 | % | | $ | 598,017 | | | $ | 34,483 | | | | 5.77 | % |
| Home equity | | | 330,997 | | | | 25,523 | | | | 7.71 | % | | | 311,854 | | | | 24,384 | | | | 7.82 | % |
| Commercial, financial, and agriculture | | | 675,598 | | | | 50,771 | | | | 7.51 | % | | | 661,871 | | | | 49,716 | | | | 7.51 | % |
| Loans to depository institutions | | | 57,315 | | | | 3,048 | | | | 5.32 | % | | | 8,372 | | | | 449 | | | | 5.36 | % |
| Installment loans to individuals | | | 46,112 | | | | 5,426 | | | | 11.77 | % | | | 47,477 | | | | 5,507 | | | | 11.60 | % |
| Previously securitized loans | | | 10,518 | | | | 7,266 | | | | 69.08 | % | | | 22,273 | | | | 9,406 | | | | 42.23 | % |
| Total loans | | | 1,717,756 | | | | 128,607 | | | | 7.49 | % | | | 1,649,864 | | | | 123,945 | | | | 7.51 | % |
| Securities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 472,438 | | | | 25,677 | | | | 5.43 | % | | | 539,634 | | | | 28,418 | | | | 5.27 | % |
| Tax-exempt | | | 39,623 | | | | 2,599 | | | | 6.56 | % | | | 42,113 | | | | 2,741 | | | | 6.51 | % |
| Total securities | | | 512,061 | | | | 28,276 | | | | 5.52 | % | | | 581,747 | | | | 31,159 | | | | 5.36 | % |
| Loans held for sale | | | - | | | | - | | | | - | | | | 2,496 | | | | 322 | | | | 12.90 | % |
| Deposits in depository institutions | | | 11,940 | | | | 521 | | | | 4.36 | % | | | 30,633 | | | | 1,478 | | | | 4.82 | % |
| Federal funds sold | | | 15,690 | | | | 819 | | | | 5.22 | % | | | 3,433 | | | | 179 | | | | 5.21 | % |
| Total interest-earning assets | | | 2,257,447 | | | | 158,223 | | | | 7.01 | % | | | 2,268,173 | | | | 157,083 | | | | 6.93 | % |
| Cash and due from banks | | | 50,675 | | | | | | | | | | | | 50,571 | | | | | | | | | |
| Bank premises and equipment | | | 48,929 | | | | | | | | | | | | 43,111 | | | | | | | | | |
| Other assets | | | 171,347 | | | | | | | | | | | | 171,214 | | | | | | | | | |
| Less: Allowance for loan losses | | | (16,406 | ) | | | | | | | | | | | (16,008 | ) | | | | | | | | |
| Total assets | | $ | 2,511,992 | | | | | | | | | | | $ | 2,517,061 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand deposits | | | 418,532 | | | | 4,766 | | | | 1.14 | % | | | 433,244 | | | | 5,284 | | | | 1.22 | % |
| Savings deposits | | | 342,119 | | | | 5,705 | | | | 1.67 | % | | | 314,732 | | | | 3,983 | | | | 1.27 | % |
| Time deposits | | | 922,886 | | | | 41,355 | | | | 4.48 | % | | | 877,592 | | | | 34,779 | | | | 3.96 | % |
| Short-term borrowings | | | 160,338 | | | | 6,642 | | | | 4.14 | % | | | 143,705 | | | | 5,099 | | | | 3.55 | % |
| Long-term debt | | | 24,476 | | | | 1,808 | | | | 7.39 | % | | | 85,893 | | | | 4,579 | | | | 5.33 | % |
| Total interest-bearing liabilities | | | 1,868,351 | | | | 60,276 | | | | 3.23 | % | | | 1,855,166 | | | | 53,724 | | | | 2.90 | % |
| Noninterest-bearing demand deposits | | | 312,567 | | | | | | | | | | | | 335,089 | | | | | | | | | |
| Other liabilities | | | 29,435 | | | | | | | | | | | | 29,840 | | | | | | | | | |
| Stockholders' equity | | | 301,639 | | | | | | | | | | | | 296,966 | | | | | | | | | |
| Total liabilities and | | | | | | | | | | | | | | | | | | | | | | | | |
| stockholders' equity | | $ | 2,511,992 | | | | | | | | | | | $ | 2,517,061 | | | | | | | | | |
| Net interest income | | | | | | $ | 97,947 | | | | | | | | | | | $ | 103,359 | | | | | |
| Net yield on earning assets | | | | | | | | | | | 4.34 | % | | | | | | | | | | | 4.56 | % |
| | | | | | | | | | | | | | | |
| Analysis of Risk-Based Capital | | | | | | | | | | | | | | | |
| (Unaudited) ($ in 000s) | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Dec 31 | | | Sept 30 | | | June 30 | | | March 31 | | | Dec 31 | |
| | | 2007 (a) | | | 2007 | | | 2007 | | | 2007 | | | 2006 | |
| | | | | | | | | | | | | | | | |
| Tier I Capital: | | | | | | | | | | | | | | | |
| Stockholders' equity | | $ | 293,994 | | | $ | 291,720 | | | $ | 294,783 | | | $ | 303,354 | | | $ | 305,307 | |
| Goodwill and other intangibles | | | (58,238 | ) | | | (58,328 | ) | | | (58,504 | ) | | | (58,681 | ) | | | (58,857 | ) |
| Accumulated other comprehensive (income) loss | | | (633 | ) | | | 4,396 | | | | 8,647 | | | | 4,684 | | | | 2,859 | |
| Qualifying trust preferred stock | | | 16,000 | | | | 16,000 | | | | 16,000 | | | | 16,000 | | | | 16,000 | |
| Unrealized Loss on AFS securities | | | (247 | ) | | | (94 | ) | | | (97 | ) | | | - | | | | - | |
| Excess deferred tax assets | | | - | | | | - | | | | (342 | ) | | | (2,983 | ) | | | - | |
| Total tier I capital | | $ | 250,876 | | | $ | 253,694 | | | $ | 260,486 | | | $ | 262,374 | | | $ | 265,309 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total Risk-Based Capital: | | | | | | | | | | | | | | | | | | | | |
| Tier I capital | | $ | 250,876 | | | $ | 253,694 | | | $ | 260,486 | | | $ | 262,374 | | | $ | 265,309 | |
| Qualifying allowance for loan losses | | | 17,581 | | | | 16,980 | | | | 16,616 | | | | 16,082 | | | | 15,405 | |
| Total risk-based capital | | $ | 268,457 | | | $ | 270,674 | | | $ | 277,102 | | | $ | 278,456 | | | $ | 280,714 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net risk-weighted assets | | $ | 1,776,158 | | | $ | 1,709,486 | | | $ | 1,719,540 | | | $ | 1,712,680 | | | $ | 1,734,214 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Ratios: | | | | | | | | | | | | | | | | | | | | |
| Average stockholders' equity to average assets | | | 11.84 | % | | | 11.82 | % | | | 12.11 | % | | | 12.27 | % | | | 12.14 | % |
| Tangible capital ratio | | | 9.72 | % | | | 9.59 | % | | | 9.58 | % | | | 9.79 | % | | | 10.06 | % |
| Risk-based capital ratios: | | | | | | | | | | | | | | | | | | | | |
| Tier I capital | | | 14.12 | % | | | 14.84 | % | | | 15.15 | % | | | 15.32 | % | | | 15.30 | % |
| Total risk-based capital | | | 15.11 | % | | | 15.83 | % | | | 16.11 | % | | | 16.26 | % | | | 16.19 | % |
| Leverage capital | | | 10.31 | % | | | 10.38 | % | | | 10.52 | % | | | 10.68 | % | | | 10.79 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| (a) December 31, 2007 risk-based capital ratios are estimated | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | | | | | | | | | | | | | | | |
| Intangibles | | | | | | | | | | | | | | | | | | | | |
| (Unaudited) ($ in 000s) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | As of and for the Quarter Ended | |
| | | Dec 31 | | | Sept 30 | | | June 30 | | | March 31 | | | Dec 31 | |
| | | 2007 | | | 2007 | | | 2007 | | | 2007 | | | 2006 | |
| | | | | | | | | | | | | | | | | | | | | |
| Intangibles, net | | $ | 58,238 | | | $ | 58,328 | | | $ | 58,504 | | | $ | 58,681 | | | $ | 58,857 | |
| Intangibles amortization expense | | | 177 | | | | 176 | | | | 177 | | | | 176 | | | | 181 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Summary of Loan Loss Experience | | | | | | | | | | | | | | | |
| (Unaudited) ($ in 000s) | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | Dec 31 | | | Sept 30 | | | June 30 | | | March 31 | | | Dec 31 | |
| | | 2007 | | | 2007 | | | 2007 | | | 2007 | | | 2006 | |
| | | | | | | | | | | | | | | | |
| Balance at beginning of period | | $ | 16,980 | | | $ | 16,616 | | | $ | 16,083 | | | $ | 15,405 | | | $ | 15,557 | |
| | | | | | | | | | | | | | | | | | | | | |
| Charge-offs: | | | | | | | | | | | | | | | | | | | | |
| Commercial, financial, and agricultural | | | 359 | | | | - | | | | 120 | | | | 35 | | | | 844 | |
| Real estate-mortgage | | | 203 | | | | 240 | | | | 452 | | | | 111 | | | | 230 | |
| Installment loans to individuals | | | 108 | | | | 91 | | | | 60 | | | | 84 | | | | 126 | |
| Overdraft deposit accounts | | | 938 | | | | 1,035 | | | | 956 | | | | 860 | | | | 892 | |
| Total charge-offs | | | 1,608 | | | | 1,366 | | | | 1,588 | | | | 1,090 | | | | 2,092 | |
| | | | | | | | | | | | | | | | | | | | | |
| Recoveries: | | | | | | | | | | | | | | | | | | | | |
| Commercial, financial, and agricultural | | | 23 | | | | 19 | | | | 41 | | | | 148 | | | | 101 | |
| Real estate-mortgage | | | 36 | | | | 22 | | | | 15 | | | | 15 | | | | 350 | |
| Installment loans to individuals | | | 97 | | | | 89 | | | | 98 | | | | 132 | | | | 118 | |
| Overdraft deposit accounts | | | 405 | | | | 400 | | | | 367 | | | | 573 | | | | 470 | |
| Total recoveries | | | 561 | | | | 530 | | | | 521 | | | | 868 | | | | 1,039 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net charge-offs | | | 1,047 | | | | 836 | | | | 1,067 | | | | 222 | | | | 1,053 | |
| Provision for loan losses | | | 1,650 | | | | 1,200 | | | | 1,600 | | | | 900 | | | | 901 | |
| Balance at end of period | | $ | 17,583 | | | $ | 16,980 | | | $ | 16,616 | | | $ | 16,083 | | | $ | 15,405 | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans outstanding | | $ | 1,767,021 | | | $ | 1,719,776 | | | $ | 1,730,354 | | | $ | 1,691,748 | | | $ | 1,677,469 | |
| Average loans outstanding | | | 1,739,166 | | | | 1,729,267 | | | | 1,710,989 | | | | 1,690,946 | | | | 1,689,846 | |
| Allowance as a percent of loans outstanding | | | 1.00 | % | | | 0.99 | % | | | 0.96 | % | | | 0.95 | % | | | 0.92 | % |
| Allowance as a percent of non-performing loans | | | 103.28 | % | | | 86.47 | % | | | 145.11 | % | | | 235.75 | % | | | 384.93 | % |
| Net charge-offs (annualized) as a | | | | | | | | | | | | | | | | | | | | |
| percent of average loans outstanding | | | 0.24 | % | | | 0.19 | % | | | 0.25 | % | | | 0.05 | % | | | 0.25 | % |
| Net charge-offs, excluding overdraft deposit | | | | | | | | | | | | | | | | | | | | |
| accounts, (annualized) as a percent of average loans outstanding | | | 0.12 | % | | | 0.05 | % | | | 0.11 | % | | | (0.02 | )% | | | 0.15 | % |
| | | | | | | | | | | | | | | |
| Summary of Non-Performing Assets | | | | | | | | | | | | | | | |
| (Unaudited) ($ in 000s) | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Dec 31 | | | Sept 30 | | | June 30 | | | March 31 | | | Dec 31 | |
| | | 2007 | | | 2007 | | | 2007 | | | 2007 | | | 2006 | |
| | | | | | | | | | | | | | | | |
| Nonaccrual loans | | $ | 16,437 | | | $ | 18,896 | | | $ | 11,194 | | | $ | 6,714 | | | $ | 3,319 | |
| Accruing loans past due 90 days or more | | | 390 | | | | 566 | | | | 212 | | | | 108 | | | | 635 | |
| Previously securitized loans past due 90 days or more | | | 198 | | | | 176 | | | | 45 | | | | - | | | | 48 | |
| Total non-performing loans | | | 17,025 | | | | 19,638 | | | | 11,451 | | | | 6,822 | | | | 4,002 | |
| Other real estate owned, excluding property associated | | | | | | | | | | | | | | | | | | | | |
| with previously securitized loans | | | 4,163 | | | | 1,091 | | | | 624 | | | | 290 | | | | 161 | |
| Other real estate owned associated with previously | | | | | | | | | | | | | | | | | | | | |
| securitized loans | | | - | | | | 405 | | | | 231 | | | | 252 | | | | 20 | |
| Other real estate owned | | | 4,163 | | | | 1,496 | | | | 855 | | | | 542 | | | | 181 | |
| Total non-performing assets | | $ | 21,188 | | | $ | 21,134 | | | $ | 12,306 | | | $ | 7,364 | | | $ | 4,183 | |
| | | | | | | | | | | | | | | | | | | | | |
| Non-performing assets as a percent of loans and | | | | | | | | | | | | | | | | | | | | |
| other real estate owned | | | 1.20 | % | | | 1.23 | % | | | 0.71 | % | | | 0.44 | % | | | 0.25 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | | | | | | | | | | | | | | | |
| Summary of Total Past Due Loans | | | | | | | | | | | | | | | | | | | | |
| (Unaudited) ($ in 000s) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Dec 31 | | | Sept 30 | | | June 30 | | | March 31 | | | Dec 31 | |
| | | 2007 | | | 2007 | | | 2007 | | | 2007 | | | 2006 | |
| | | | | | | | | | | | | | | | | | | | | |
| Residential real estate | | $ | 5,480 | | | $ | 4,500 | | | $ | 3,354 | | | $ | 2,372 | | | $ | 4,534 | |
| Home equity | | | 2,141 | | | | 1,075 | | | | 879 | | | | 999 | | | | 1,083 | |
| Commercial, financial, and agriculture | | | 1,506 | | | | 311 | | | | 2,248 | | | | 1,185 | | | | 2,082 | |
| Loans to depository institutions | | | - | | | | - | | | | - | | | | - | | | | - | |
| Installment loans to individuals | | | 385 | | | | 279 | | | | 370 | | | | 283 | | | | 389 | |
| Previously securitized loans | | | 1,099 | | | | 948 | | | | 799 | | | | 596 | | | | 1,110 | |
| Overdraft deposit accounts | | | 612 | | | | 575 | | | | 692 | | | | 500 | | | | 652 | |
| Total past due loans | | $ | 11,223 | | | $ | 7,688 | | | $ | 8,342 | | | $ | 5,935 | | | $ | 9,850 | |
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