City Holding 8K Annual Global Investment Conference | CHCO 14 Sep 10

Rodman & Renshaw

Annual Global Investment Conference

September 2010

Forward Looking Statements

n Total Assets $2.6 bil

n Branches 67

n FTE 812

n Market Cap $445 mil

n Institutional Ownership 62%

n Average Daily Volume $3.0 mil

Date: August 30, 2010

Value in the Banking Sector?
Checklist for success in current environment:

Capital

n Strongly capitalized

Markets

n Solid Distribution Network

n Stable Geographic Markets

n Disciplined Competition

Performance

n Strong Net Interest Margin

n Strong NIM Management

n Strong Fee income

n Ability to control expenses

Growth

n Liquidity to grow

n Ability to grow share in market

n Opportunity to grow into new markets

Management

City Holding Company:

n Markets: Operates an extremely strong
retail/commercial franchise in stable markets with
disciplined competition

n Asset Quality: Strong compared to peers and City’s
management has recognized and dealt with issues

n Performance: Has Consistently outperformed
peers with respect to earnings, capital, and liquidity

n Growth: Growing and succeeding in slow-growth
stable markets with targeted expansion into new
markets

1st Branch Share & 9% Deposit Share

in Huntington WV/Ashland KY MSA

$3.8 Billion

1st Branch Share & 10% Deposit Share

in WV’s largest market; $5.3B

1st & 27% Deposit Share

$2.0 Billion

2nd Branch Share & 8% Deposit

Share in Morgan, Berkeley

& Jefferson Co. WV

$1.9 Billion

Key Markets

Liabilities: Low Cost and stable

deposits drives profitability

Data: December 31, 2009

CHCO’s Cost of Funds Advantage:

	CHCO	Peers Ave	Advantage
CD’s	3.16%	2.75%	(41 Bps)
Interest Bearing Deposits	1.95%	1.90%	(5 Bps)
Total Deposits	1.65%	1.69%	4 Bps
Interest Bearing Liabilities	1.87%	2.18%	31 Bps

Data: 2009. Peers reflect publicly traded $1 to $10
billion banks reporting these rates

Net Interest Margin
Strong NIM driven by solid core deposit
franchise & strong NIM management

Strong Deposit Franchise drives top
decile Non-Interest Revenue:

24%

76%

63%

*As of December 31, 2009. Non-
interest income excludes other than
temporary impairment losses and
VISA IPO gain

Sample of 295 reporting publicly traded
banks and thrifts with assets between
$1 and $10 billion as of December 31,
2009, excluding investment
gains/losses

94th percentile

City’s Deposit Franchise:

n City’s Non-Interest Income represents 36% of total
revenues

n CHCO Ave Deposits/Branch $32 MM

n Peer Ave Deposits/Branch $41 MM

n Average Depository Hhlds/Branch 2,200

n Industry Ave. Hhlds per Branch* 1,220

As compared to other $2.6B banks, City has more
branches and in each of these branches, more
households than larger branches, resulting in City’s
exceptionally strong retail deposit franchise.

* FIS

Real-time Processing Implementation

n May 12, 2010: Implemented “Passport”
software providing “real-time” posting of
debits/credits intra-day

Regulation E Time-Line

n April 1, 2010: Began Communication Effort
regarding Regulation E

n 49% of customers made election prior to
implementation

n Implementation: August 14th

n Additional 4% of customers have made
election post-implementation

Regulation E

n Customers who have NEVER overdrawn their
account:

u Response Rate: 37%

u Opt-In / Opt-Out / Force-out: 26% / 11% /63%

n Customers who HAVE overdrawn their account:

u Response Rate: 86%

u Opt-In/ Opt-Out / Force-out: 75% /11% /14%

n Estimated impact to Total Service Charge Revenues
from Reg E & “Passport” : -12 to 15%

Asset Quality: a function of culture
and market

• City’s Loans are 60% Retail/40% Commercial

• City’s market area tends to be more stable

• Real Estate prices in City’s market area have

been relatively stable

• City’s Past-due loan trends are stable

• City’s non-performing asset levels are

stronger than peers

• City has been aggressive about charging

down non-performing loans

Conservative Loan Portfolio Mix

Loan to Deposits 82.8%

Loan to Deposits 86.5%

Sample of 296 publicly traded banks
and thrifts with assets between $1-$10
billion as of December 31, 2009

As of December 31, 2009

Retail Loan Facts:

•Residential RE are 1,3,5 and 10 Yr ARMs

•No Sub-prime, Interest-only, Option Adjustable

•Home Equity loans include LOCs, fixed amortizing
loans, non-purchase adjustable loans

•65% of Home Equity Loans are 1st Lien Position

•66% of Home Equity Loans have a LTV < 80%.

•Ave Loan Balance for Residential RE is $78,000

•Ave Loan Balance for Home Equity loans is $35,000

Stable Past-Due Loans (30+ days)

Past-due loans trends are stable and reflect better
economics in City’s core markets

NPA’s to Loans & OREO

31%

44%

Commercial
$0.770MM

Net Charge-offs: 2010 YTD

Greenbrier Resort Speculative
Properties - 6/30/10

Original Loan Balances $ 18.0 MM

Current Loan Book Balance net of reserves $ 1.0 MM

OREO after Charge-off’s $ 9.3 MM

On-Balance Sheet: $ 10.3 MM

(57% of orig loan)

Sale of $1.7MM in 3rd Quarter

CHCO’s performance is
exceptionally strong……..

	2010 YTD
Reported ROA	1.51%
ROTE	15.6%
Tangible Common Equity/TA	9.86%
NIM	4.18%
Efficiency Ratio	53.4%
Non-Int Rev/Total Rev*	36.2%

CHCO consistently among the strongest:

	2005	2006	2007	2008	2009	2009 Peers** Median
Reported ROA	2.09%	2.11%	2.03%	1.12%	1.63%	0.46% - 95th %ile
ROTE	22.3%	22.4%	21.0%	11.4%	18.0%	6.62% - 95th %ile
Tangible Common Equity/TA	9.5%	10.1%	9.7%	8.83%	9.78%	7.4% - 95th %ile
NIM	4.49%	4.56%	4.34%	4.64%	4.18%	3.76%- 90th %ile
Efficiency Ratio	46.7%	44.5%	45.9%	46.3%	50.0%	59.9% - 100th %ile
Non-Int Rev/Total Rev*	34%	34%	34%	36%	37.9%	28.1% - 100th %ile

* Non-Int Rev excludes gain on Visa IPO; Securities Losses

•** Peer Group of 19 Regional Banks of comparable size & geography

GROWTH: CHCO is positioned
to achieve “reasonable growth”
in its core franchise:

n Commercial

n Retail

n Insurance

n Trust & Investment Management

Deposit Growth Opportunity:
CHCO has many small deposit
relationships; peers tend to have larger
commercial & public deposits

	Branches	Deposits	Deposits/Branch
CHCO	67	$ 2.2 B	$33 million
BBT	36	$ 3.3 B	$92 million
JPM	20	$ 1.2 B	$60 million
UBSI	20	$ 1.2 B	$60 million
HBAN	14	$ 0.9 B	$64 million
FITB	10	$ 0.4 B	$40 million

Includes branches within 5 miles of City Branch

Source: SNL

Growth: Expanding Retail Distribution
to capture additional retail households

City Opened 4 Wal-Marts in key markets
where it had significant share:

Branch Renovations/Expansions to
meet customer demand:

Sept 2010: Expansion into
South Charleston WV has
encouraging early results

CityInsurance

n 2006 Revenues $2.3 million

n 2007 $4.1 million

n 2008 $4.2 million

n 2009 $5.6 million

Strategies:

u 2007: Added Workers Compensation Dept in 2007

Added Personal Lines Department in 2007

Opened Beckley WV Office in 2007

u 2008: Opened Martinsburg Office in 4th Q 2008

Opened Ashland Office in 4th Q 2008

Acquired Nitro-based Patton Ins. Agency

Added enhanced Med Mal Representation

u 2009: Acquired Dickens & Clark Agency

u 2010: Acquired Ripley WV Insurance Office

Trust AUM: CAGR (04-10) of 8%
Grew AUM in 2008/10 despite market by taking share

CHCO: Capital Flexibility

Tangible Common Equity at 6/30/10: 9.86%

No TARP!!!!

Dividends

- Increased 10% in April 2004 to $0.88

- Increased 14% in April 2005 to $1.00

- Increased 12% in April 2006 to $1.12

- Increased 11% in April 2007 to $1.24

- Increased 10% in April 2008 to $1.36

- Dividend Yield of 4.80% (as of 8/30/10)

- Dividend Payout Ratio 54% (Analyst Est.EPS for 2010)

Share Repurchases

- Purchased 1,784,458 shares in 2007, 2008 and 2009
(10.2% of outstanding shares at 12/31/06);

- Purchased over 400,000 shares year-to-date in 2010

- Driven by CHCO’s strong profitability, CHCO can
achieve greater long-term share repurchase activity
than peers.

Growth Per Share (12/31/04 - 12/31/09):

n Loans Per Share: 8.7% CAGR

n Deposits Per Share: 6.4% CAGR

n Non-Interest Inc Per Share: 4.5% CAGR

n Expenses Per Share: 4.4% CAGR

Implication: While CHCO operates in relatively
low growth markets, high profitability allows
share repurchases, which have driven core
earnings despite the economic environment of the
last several years

Acquisition Philosophy:

• City has historically been less acquisition
focused than peers - acquisitions must truly
be strategic or meaningfully accretive

• Going forward, City is likely to be more
acquisitive than historically due to an
increasing number of attractive
opportunities

• City will continue to explore both FDIC and
non-FDIC acquisitions

• City does not anticipate many FDIC-assisted
transactions within it’s “acquisition
footprint”

Acquisition Philosophy:

• City will actively consider acquisition of banks
in the $100 million to $1 billion range within its
“acquisition footprint”

• City will consider acquisition of certain under-
performing banks larger than $1 billion in
assets

• Future acquisitions should:

• Increase franchise in existing markets

• Extend franchise meaningfully into adjacent
markets

• Extend and balance City’s strong deposit &
stable market franchise into new markets
with meaningful long-term growth
opportunities

• Be accretive

Acquisition “Territory”:

Value in the Banking Sector?
Checklist for success in current environment:

Capital

n Strongly capitalized - Top 10%

Markets

n Solid Distribution Network - Excellent

n Stable Geographic Markets - Yes - WV & E Kentucky

n Disciplined Competition - Yes - see NIM

Performance

n Strong Net Interest Margin - Yes

n Strong NIM Management - See Results (Floors)

n Dependence on NII- Top Decile

n Ability to control expenses - Top Decile Efficiency Ratio

Growth

n Liquidity to grow - Extremely Strong

n Ability to grow share in market - 5-mile branch share 32%;
deposit share 14%

n Opportunity to grow into new markets - Well Positioned

n Management - Experienced Team with Great Results

Pricing Metrics*:

n Price to Book: 142%

n Price to Tangible Book: 174%

n Price to 2010 Projected Earnings** 11.3x

n Dividend Yield 4.8%

n Div Payout Ratio (First Call)** 54%

n Tangible Capital/Tangible Assets 9.86%

n Institutional Ownership 62%

* Based on Price of $28.35 (8/30/10)

** Based on analyst estimate of $2.52 (average of 6)

CHCO represents good value and stability

City Holding (CHCO) 8-KAnnual Global Investment Conference