For Immediate Release
July 23, 2013
For Further Information Contact:
Charles R. Hageboeck, Chief Executive Officer and President
(304) 769-1102
City Holding Company Announces Earnings Increase by 75%
Charleston, West Virginia – City Holding Company, “the Company” (NASDAQ:CHCO), a $3.4 billion bank holding company headquartered in Charleston, today announced second quarter net income per diluted share of $0.82 and net income of $13.0 million. This represents an increase in earnings per share of 64.2% and an increase in net income of 75.5%. For the second quarter of 2013, the Company achieved a return on assets of 1.53%, a return on tangible equity of 17.6%, a net interest margin of 4.35%, and an efficiency ratio of 52.0%.
Earnings increased in the second quarter of 2013 primarily due to an increase in accretion of net interest income associated with the acquisitions of Virginia Savings Bank in the second quarter of 2012 and the acquisition of Community Financial Corporation (”Community Bank”) in the first quarter of 2013. Earnings in the second quarter of 2012 also included one-time merger-related expenses of $4.0 million compared to negligible merger-related expenses in the second quarter of 2013. Net interest income increased $1.7 million from the first quarter of 2013 due to improved accretion earnings, in part due to better loan performance than expected. As a result of this additional income, the Company’s net interest margin improved from 4.18% for the first quarter of 2013 to 4.35% for the second quarter of 2013.
City’s CEO Charles Hageboeck stated that “The strength and stability of City’s net interest margin over the last twelve months has been impressive. The net interest margin in the second quarter of 2012 was 3.91%. Adjusting for the positive benefits of accretion into net interest income related to City’s acquisitions of Virginia Savings Bank and Community Bank over the last year, our net interest margin would have been 3.86% in the second quarter of 2013. During this time frame, City’s investment portfolio experienced the redemption of over $50 million of high-yielding trust preferred securities. Despite the loss of these high-yielding securities, and excluding the accretion benefit of our acquisitions, the net interest margin has been remarkably steady.”
“City has been very pleased with the results of our acquisitions of Virginia Savings Bank, headquartered in Front Royal, Virginia and Community Bank, headquartered in Staunton, Virginia. Both of these new markets for City are experiencing higher growth levels than many of City’s core banking markets. The staff in both of these markets has worked very hard to serve their customers while integrating their operations into City. We are very pleased with customer retention and account acquisition results to date. We are also pleased with the results of efforts to improve the asset quality at both institutions, with results to-date ahead of expectations both with respect to the amount of time it will take to resolve the problems and the ultimate values that will be received. Such positive results include our ability to-date to workout the problem loans that each of these institutions had. As a result of our efforts, our capital levels are increasing more rapidly than originally anticipated. City’s tangible capital ratio was 9.4% at December 31, 2012 just prior to the acquisition of Community Bank in January 2013. At June 30, 2013, despite the $43 million credit mark on Community Bank’s loan portfolio that was recorded, City’s tangible equity ratio has already recovered to 8.9%” Hageboeck concluded.
Net Interest Income
The Company’s tax equivalent net interest income increased $1.7 million, or 5.8%, from $29.7 million during the first quarter of 2013 to $31.5 million during the second quarter of 2013. This increase is due to an increase in the accretion related to the acquisitions of Virginia Savings and Community Bank. The Company’s reported net interest margin increased from 4.18% for the first quarter of 2013 to 4.35% for the second quarter of 2013. Excluding the favorable impact of the accretion from the fair value adjustments ($3.5 million for the quarter ended June 30, 2013 and $2.2 million for the quarter ended March 31, 2013), the net interest margin would have been 3.86% for the quarter ended June 30, 2013 and 3.87% for the quarter ended March 31, 2013.
Credit Quality
The Company’s ratio of nonperforming assets to total loans and other real estate owned declined slightly from 1.13% at March 31, 2013 to 1.09% at June 30, 2013. Excluded from this ratio are purchased credit-impaired loans in which the Company estimated cash flows and estimated a credit mark. These loans are considered performing loans provided that the loan is performing in accordance with the estimated expectations. Such loans would be considered nonperforming loans if the loan’s performance deteriorates below the initial expectations. Total past due loans decreased from $31.1 million, or 1.25% of total loans outstanding, at March 31, 2013 to $30.4 million, or 1.20% of total loans outstanding, at June 30, 2013. The Company continues to make progress with past due acquired loans that represent approximately two-thirds of the total past dues loans. In accordance with regulatory guidance issued in the third quarter of 2012, the Company considers loans in which the borrower has filed Chapter 7 bankruptcy with the debt being discharged by the bankruptcy court and the loan has not been reaffirmed by the borrower to be troubled debt restructured loans (“TDR’s”). Since the time of this change, TDR’s have increased from $21.5 million at September 30, 2012 to $26.3 million at June 30, 2013, with less than 10% of these loans being nonaccrual loans. This increase is primarily due to additional Chapter 7 related loans.
As a result of the Company’s quarterly analysis of the adequacy of the Allowance for Loan Losses (“ALLL”), the Company recorded a provision for loan losses of $2.0 million in the second quarter of 2013, compared to $1.7 for the comparable period in 2012 and $1.7 million for the first quarter of 2013. The provision for loan losses recorded in the second quarter of 2013 reflects difficulties of certain commercial borrowers of the Company during the quarter, 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.
Non-interest Income
Excluding investment security transactions, non-interest income increased $1.0 million to $14.2 million in the second quarter of 2013 as compared to $13.2 million in the second quarter of 2012. Service charges increased $0.4 million, or 6.2%, to $6.9 million while bankcard revenues increased $0.3 million, or 9.5%, to $3.5 million. These increases were primarily due to the acquisitions of Virginia Savings and Community Bank. In addition, other income increased $0.2 million or 38.9%, to $0.8 million.
Non-interest Expenses
During the second quarter of 2012, the Company completed its acquisition of Virginia Savings and recognized $4.0 million of acquisition and integration expenses. Excluding these expenses, non-interest expenses increased $3.2 million, from $20.8 million in the second quarter of 2012 to $24.0 million in the second quarter of 2013. This increase was primarily related to higher salaries and employee benefits ($2.0 million) due to the acquisitions of Virginia Savings and Community Bank ($1.7 million) and higher health insurance ($0.3 million). In addition, other expenses increased $0.5 million, occupancy and equipment expense increased $0.5 million and depreciation increased $0.3 million. These increases were primarily attributable to the acquisitions of Virginia Savings and Community Bank. Overall expense increases associated with the acquisitions of Virginia Savings and Community Bank have been in line with the Company’s expectations. These expenses were partially offset by a decrease in repossessed asset losses as a result of losses recognized in the second quarter of 2012.
Balance Sheet Trends
Loans have increased $30.4 million (1.2%) from March 31, 2013 to $2.53 billion at June 30, 2013. Commercial real estate loans increased $21.9 million (2.2%) and residential real estate loans increased $20.7 million (1.8%). These increases were partially offset by decreases in commercial and industrial (“C&I”) loans ($11.4 million, or 7.6%) and consumer loans ($1.0 million, or 1.9%). The decline in C&I loans is a continuation of a strategy engaged by the Company to allow certain acquired loans (although performing in accordance with their respective terms) that were judged by the Company to be of higher risk than loans originated in accordance with the Company’s credit standards, to exit the portfolio.
Total average depository balances increased $57.8 million, or 2.1%, from the quarter ended March 31, 2013 to the quarter ended June 30, 2013. Noninterest-bearing deposits increased $20.1 million, savings deposits increased $19.6 million, time deposits increased $9.4 million, and interest-bearing deposits increased $8.0 million.
Income Tax Expense
The Company’s effective income tax rate for the second quarter of 2013 was 33.6% compared to 34.3% for the year ended December 31, 2012, and 33.8% for the quarter ended June 30, 2012. The effective rate is based upon the Company’s expected tax rate for the year ending December 31, 2013.
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 89.1% and the loan to asset ratio was 74.8% at June 30, 2013. The Company maintained investment securities totaling 10.2% of assets as of this date. Further, the Company’s deposit mix is weighted heavily toward checking and saving accounts that fund 51.1% of assets at June 30, 2013. Time deposits fund 32.8% of assets at June 30, 2013, but very few of these deposits are in accounts that have balances of more than $250,000, reflecting the core retail orientation of the Company.
The Company continues to be strongly capitalized. The Company’s tangible equity ratio was 8.9% at June 30, 2013 compared to 9.4% at December 31, 2012. At June 30, 2013, City National Bank’s Leverage Ratio is 8.82%, its Tier I Capital ratio is 11.92%, and its Total Risk-Based Capital ratio is 12.75%. These regulatory capital ratios are significantly above levels required to be considered “well capitalized,” which is the highest possible regulatory designation.
On June 26, 2013, the Board approved a quarterly cash dividend of $0.37 cents per share payable July 31, 2013, to shareholders of record as of July 15, 2013.
City Holding Company is the parent company of City National Bank of West Virginia. City National operates 83 branches across West Virginia, Virginia, Kentucky and Ohio.
Forward-Looking Information
This news release contains certain forward-looking statements that are included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such information involves risks and uncertainties that could result in the Company's actual results differing from those projected in the forward-looking statements. Important factors that could cause actual results to differ materially from those discussed in such forward-looking statements include, but are not limited to, (1) the Company may incur additional loan loss provision due to negative credit quality trends in the future that may lead to a deterioration of asset quality; (2) the Company may incur increased charge-offs in the future; (3) the Company could have adverse legal actions of a material nature; (4) the Company may face competitive loss of customers; (5) the Company may be unable to manage its expense levels; (6) the Company may have difficulty retaining key employees; (7) changes in the interest rate environment may have results on the Company’s operations materially different from those anticipated by the Company’s market risk management functions; (8) changes in general economic conditions and increased competition could adversely affect the Company’s operating results; (9) changes in other regulations and government policies affecting bank holding companies and their subsidiaries, including changes in monetary policies, could negatively impact the Company’s operating results; (10) the Company may experience difficulties growing loan and deposit balances; (11) the current economic environment poses significant challenges for us and could adversely affect our financial condition and results of operations; (12) continued deterioration in the financial condition of the U.S. banking system may impact the valuations of investments the Company has made in the securities of other financial institutions resulting in either actual losses or other than temporary impairments on such investments; (13) the effects of the Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) recently adopted by the United States Congress and (14) the integration of the operations of City Holding and Community Financial may be more difficult than anticipated. Forward-looking statements made herein reflect management’s expectations as of the date such statements are made. Forward-looking statements made herein reflect management's expectations as of the date such statements are made. Such information is provided to assist stockholders and potential investors in understanding current and anticipated financial operations of the Company and is included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances that arise after the date such statements are made. Further, the Company is required to evaluate subsequent events through the filing of its June 30, 2013 Form 10-Q. The Company will continue to evaluate the impact of any subsequent events on the preliminary June 30, 2013 results and will adjust the amounts if necessary.
| CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | | | | |
| Financial Highlights | | | | | | | | | |
| (Unaudited) | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | Three Months Ended June 30, | | | Percent | |
| | | 2013 | | | 2012 | | | Change | |
| | | | | | | | | | |
| Earnings ($000s, except per share data): | | | | | | | | | |
| Net Interest Income (FTE) | | $ | 31,464 | | | $ | 24,039 | | | | 30.89 | % |
| Net Income available to common shareholders | | | 13,006 | | | | 7,413 | | | | 75.45 | % |
| Earnings per Basic Share | | | 0.83 | | | | 0.50 | | | | 65.13 | % |
| Earnings per Diluted Share | | | 0.82 | | | | 0.50 | | | | 64.23 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Key Ratios (percent): | | | | | | | | | | | | |
| Return on Average Assets | | | 1.53 | % | | | 1.06 | % | | | 44.73 | % |
| Return on Average Tangible Equity | | | 17.59 | % | | | 11.20 | % | | | 57.01 | % |
| Net Interest Margin | | | 4.35 | % | | | 3.91 | % | | | 11.09 | % |
| Efficiency Ratio | | | 52.04 | % | | | 66.45 | % | | | (21.68 | )% |
| Average Shareholders' Equity to Average Assets | | | 10.94 | % | | | 11.47 | % | | | (4.60 | )% |
| | | | | | | | | | | | | |
| Consolidated Risk Based Capital Ratios (a): | | | | | | | | | | | | |
| Tier I | | | 12.34 | % | | | 12.46 | % | | | (0.96 | )% |
| Total | | | 13.19 | % | | | 13.38 | % | | | (1.42 | )% |
| | | | | | | | | | | | | |
| Tangible Equity to Tangible Assets | | | 8.90 | % | | | 9.03 | % | | | (1.52 | )% |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Common Stock Data: | | | | | | | | | | | | |
| Cash Dividends Declared per Share | | $ | 0.37 | | | $ | 0.35 | | | | 5.71 | % |
| Book Value per Share | | | 23.52 | | | | 21.63 | | | | 8.72 | % |
| Tangible Book Value per Share | | | 18.76 | | | | 17.24 | | | | 8.84 | % |
| Market Value per Share: | | | | | | | | | | | | |
| High | | | 40.43 | | | | 35.62 | | | | 13.50 | % |
| Low | | | 36.87 | | | | 30.96 | | | | 19.09 | % |
| End of Period | | | 38.95 | | | | 33.69 | | | | 15.61 | % |
| | | | | | | | | | | | | |
| Price/Earnings Ratio (b) | | | 11.77 | | | | 16.81 | | | | (29.99 | )% |
| | | | | | | | | | | | | |
| | | Six Months Ended June 30, | | | Percent | |
| | | | 2013 | | | | 2012 | | | Change | |
| | | | | | | | | | | | | |
| Earnings ($000s, except per share data): | | | | | | | | | | | | |
| Net Interest Income (FTE) | | $ | 61,210 | | | $ | 47,768 | | | | 28.14 | % |
| Net Income available to common shareholders | | | 20,993 | | | | 17,442 | | | | 20.36 | % |
| Earnings per Basic Share | | | 1.34 | | | | 1.18 | | | | 13.70 | % |
| Earnings per Diluted Share | | | 1.33 | | | | 1.17 | | | | 13.15 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Key Ratios (percent): | | | | | | | | | | | | |
| Return on Average Assets | | | 1.25 | % | | | 1.26 | % | | | (0.75 | )% |
| Return on Average Tangible Equity | | | 14.49 | % | | | 13.30 | % | | | 8.99 | % |
| Net Interest Margin | | | 4.26 | % | | | 3.94 | % | | | 8.09 | % |
| Efficiency Ratio | | | 59.14 | % | | | 59.74 | % | | | (1.00 | )% |
| Average Shareholders' Equity to Average Assets | | | 10.84 | % | | | 11.51 | % | | | (5.81 | )% |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Common Stock Data: | | | | | | | | | | | | |
| Cash Dividends Declared per Share | | $ | 0.74 | | | $ | 0.70 | | | | 5.71 | % |
| Market Value per Share: | | | | | | | | | | | | |
| High | | | 40.43 | | | | 37.16 | | | | 8.80 | % |
| Low | | | 36.07 | | | | 30.96 | | | | 16.51 | % |
| | | | | | | | | | | | | |
| Price/Earnings Ratio (b) | | | 14.53 | | | | 14.29 | | | | 1.68 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| (a) June 30, 2013 risk-based capital ratios are estimated | | | | | | | | | |
| (b) June 30, 2013 price/earnings ratio computed based on annualized second quarter 2013 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 | |
| | | | | | | | | | | | | | | | | | | |
| 2009 | | $ | 17.69 | | | $ | 18.24 | | | $ | 18.95 | | | $ | 19.37 | | | $ | 20.88 | | | $ | 34.34 | |
| 2010 | | | 19.71 | | | | 20.02 | | | | 20.31 | | | | 20.31 | | | | 26.87 | | | | 38.03 | |
| 2011 | | | 20.39 | | | | 20.58 | | | | 20.86 | | | | 21.05 | | | | 26.06 | | | | 37.22 | |
| 2012 | | | 21.46 | | | | 21.63 | | | | 22.14 | | | | 22.47 | | | | 30.96 | | | | 37.16 | |
| 2013 | | | 23.27 | | | | 23.52 | | | | | | | | | | | | 36.07 | | | | 40.43 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Earnings per Basic Share | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | | | | | |
| | | March 31 | | | June 30 | | | September 30 | | | December 31 | | | Year-to-Date | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| 2009 | | $ | 0.69 | | | $ | 0.64 | | | $ | 0.66 | | | $ | 0.70 | | | $ | 2.69 | | | | | |
| 2010 | | | 0.59 | | | | 0.68 | | | | 0.58 | | | | 0.64 | | | | 2.48 | | | | | |
| 2011 | | | 0.62 | | | | 0.65 | | | | 0.77 | | | | 0.65 | | | | 2.68 | | | | | |
| 2012 | | | 0.68 | | | | 0.50 | | | | 0.71 | | | | 0.73 | | | | 2.63 | | | | | |
| 2013 | | | 0.51 | | | | 0.83 | | | | | | | | | | | | 1.34 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
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| Earnings per Diluted Share | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | | | | | |
| | | March 31 | | | June 30 | | | September 30 | | | December 31 | | | Year-to-Date | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| 2009 | | $ | 0.69 | | | $ | 0.64 | | | $ | 0.66 | | | $ | 0.70 | | | $ | 2.68 | | | | | |
| 2010 | | | 0.58 | | | | 0.68 | | | | 0.58 | | | | 0.64 | | | | 2.47 | | | | | |
| 2011 | | | 0.62 | | | | 0.64 | | | | 0.76 | | | | 0.65 | | | | 2.67 | | | | | |
| 2012 | | | 0.67 | | | | 0.50 | | | | 0.71 | | | | 0.73 | | | | 2.61 | | | | | |
| 2013 | | | 0.51 | | | | 0.82 | | | | | | | | | | | | 1.33 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | |
| Consolidated Statements of Income | | | | | | |
| (Unaudited) ($ in 000s, except per share data) | | | | | | |
| | | | | | | |
| | | Three Months Ended June 30, | |
| | | 2013 | | | 2012 | |
| | | | | | | |
| Interest Income | | | | | | |
| Interest and fees on loans | | $ | 31,771 | | | $ | 23,143 | |
| Interest on investment securities: | | | | | | | | |
| Taxable | | | 2,632 | | | | 3,943 | |
| Tax-exempt | | | 312 | | | | 368 | |
| Interest on federal funds sold | | | 9 | | | | 12 | |
| Total Interest Income | | | 34,724 | | | | 27,466 | |
| | | | | | | | | |
| Interest Expense | | | | | | | | |
| Interest on deposits | | | 3,195 | | | | 3,383 | |
| Interest on short-term borrowings | | | 79 | | | | 77 | |
| Interest on long-term debt | | | 153 | | | | 165 | |
| Total Interest Expense | | | 3,427 | | | | 3,625 | |
| Net Interest Income | | | 31,297 | | | | 23,841 | |
| Provision for loan losses | | | 2,011 | | | | 1,675 | |
| Net Interest Income After Provision for Loan Losses | | | 29,286 | | | | 22,166 | |
| | | | | | | | | |
| Non-Interest Income | | | | | | | | |
| Total investment securities impairment losses | | | - | | | | (606 | ) |
| Noncredit impairment losses recognized in other comprehensive income | | | - | | | | 302 | |
| Net investment securities impairment losses | | | - | | | | (304 | ) |
| Gains on sale of investment securities | | | 9 | | | | 832 | |
| Net investment securities gains | | | 9 | | | | 528 | |
| | | | | | | | | |
| Service charges | | | 6,897 | | | | 6,497 | |
| Bankcard revenue | | | 3,450 | | | | 3,152 | |
| Insurance commissions | | | 1,358 | | | | 1,347 | |
| Trust and investment management fee income | | | 964 | | | | 942 | |
| Bank owned life insurance | | | 799 | | | | 766 | |
| Other income | | | 775 | | | | 558 | |
| Total Non-Interest Income | | | 14,252 | | | | 13,790 | |
| | | | | | | | | |
| Non-Interest Expense | | | | | | | | |
| Salaries and employee benefits | | | 12,640 | | | | 10,668 | |
| Occupancy and equipment | | | 2,500 | | | | 1,978 | |
| Depreciation | | | 1,453 | | | | 1,109 | |
| FDIC insurance expense | | | 341 | | | | 394 | |
| Advertising | | | 819 | | | | 675 | |
| Bankcard expenses | | | 766 | | | | 694 | |
| Postage, delivery, and statement mailings | | | 552 | | | | 488 | |
| Office supplies | | | 463 | | | | 396 | |
| Legal and professional fees | | | 535 | | | | 421 | |
| Telecommunications | | | 465 | | | | 387 | |
| Repossessed asset (gains)/losses, net of expenses | | | (23 | ) | | | 650 | |
| Merger related expenses | | | 65 | | | | 4,042 | |
| Other expenses | | | 3,383 | | | | 2,861 | |
| Total Non-Interest Expense | | | 23,959 | | | | 24,763 | |
| Income Before Income Taxes | | | 19,579 | | | | 11,193 | |
| Income tax expense | | | 6,573 | | | | 3,780 | |
| Net Income Available to Common Shareholders | | $ | 13,006 | | | $ | 7,413 | |
| | | | | | | | | |
| | | | | | | | | |
| Distributed earnings allocated to common shareholders | | $ | 5,751 | | | $ | 5,146 | |
| Undistributed earnings allocated to common shareholders | | | 7,139 | | | | 2,208 | |
| Net earnings allocated to common shareholders | | $ | 12,890 | | | $ | 7,354 | |
| | | | | | | | | |
| Average common shares outstanding | | | 15,582 | | | | 14,680 | |
| Effect of dilutive securities: | | | | | | | | |
| Employee stock options | | | 170 | | | | 79 | |
| Shares for diluted earnings per share | | | 15,752 | | | | 14,759 | |
| | | | | | | | | |
| Basic earnings per common share | | $ | 0.83 | | | $ | 0.50 | |
| Diluted earnings per common share | | $ | 0.82 | | | $ | 0.50 | |
| Dividends declared per common share | | $ | 0.37 | | | $ | 0.35 | |
| | | | | | | | | |
| Comprehensive Income | | $ | 8,798 | | | $ | 6,673 | |
CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | |
| Consolidated Statements of Income | | | | | | |
| (Unaudited) ($ in 000s, except per share data) | | | | | | |
| | | | | | | |
| | | Six months ended June 30, | |
| | | 2013 | | | 2012 | |
| | | | | | | |
| Interest Income | | | | | | |
| Interest and fees on loans | | $ | 61,709 | | | $ | 46,210 | |
| Interest on investment securities: | | | | | | | | |
| Taxable | | | 5,382 | | | | 7,907 | |
| Tax-exempt | | | 636 | | | | 755 | |
| Interest on federal funds sold | | | 22 | | | | 23 | |
| Total Interest Income | | | 67,749 | | | | 54,895 | |
| | | | | | | | | |
| Interest Expense | | | | | | | | |
| Interest on deposits | | | 6,422 | | | | 7,051 | |
| Interest on short-term borrowings | | | 149 | | | | 150 | |
| Interest on long-term debt | | | 309 | | | | 333 | |
| Total Interest Expense | | | 6,880 | | | | 7,534 | |
| Net Interest Income | | | 60,869 | | | | 47,361 | |
| Provision for loan losses | | | 3,749 | | | | 3,625 | |
| Net Interest Income After Provision for Loan Losses | | | 57,120 | | | | 43,736 | |
| | | | | | | | | |
| Non-Interest Income | | | | | | | | |
| Total investment securities impairment losses | | | - | | | | (606 | ) |
| Noncredit impairment losses recognized in other comprehensive income | | | - | | | | 302 | |
| Net investment securities impairment losses | | | - | | | | (304 | ) |
| Gains on sale of investment securities | | | 93 | | | | 801 | |
| Net investment securities gains | | | 93 | | | | 497 | |
| | | | | | | | | |
| Service charges | | | 13,432 | | | | 12,545 | |
| Bankcard revenue | | | 6,649 | | | | 6,194 | |
| Insurance commissions | | | 3,198 | | | | 3,343 | |
| Trust and investment management fee income | | | 1,954 | | | | 1,749 | |
| Bank owned life insurance | | | 1,611 | | | | 1,489 | |
| Other income | | | 1,641 | | | | 1,091 | |
| Total Non-Interest Income | | | 28,578 | | | | 26,908 | |
| | | | | | | | | |
| Non-Interest Expense | | | | | | | | |
| Salaries and employee benefits | | | 25,589 | | | | 20,913 | |
| Occupancy and equipment | | | 4,971 | | | | 3,913 | |
| Depreciation | | | 2,852 | | | | 2,195 | |
| FDIC insurance expense | | | 853 | | | | 779 | |
| Advertising | | | 1,554 | | | | 1,319 | |
| Bankcard expenses | | | 1,493 | | | | 1,314 | |
| Postage, delivery, and statement mailings | | | 1,158 | | | | 1,036 | |
| Office supplies | | | 904 | | | | 851 | |
| Legal and professional fees | | | 971 | | | | 738 | |
| Telecommunications | | | 910 | | | | 776 | |
| Repossessed asset losses, net of expenses | | | (178 | ) | | | 771 | |
| Merger related expenses | | | 5,604 | | | | 4,177 | |
| Other expenses | | | 6,682 | | | | 5,496 | |
| Total Non-Interest Expense | | | 53,363 | | | | 44,278 | |
| Income Before Income Taxes | | | 32,335 | | | | 26,366 | |
| Income tax expense | | | 11,342 | | | | 8,924 | |
| Net Income Available to Common Shareholders | | $ | 20,993 | | | $ | 17,442 | |
| | | | | | | | | |
| | | | | | | | | |
| Distributed earnings allocated to common shareholders | | $ | 11,502 | | | $ | 10,291 | |
| | | | | | | | | |
| Undistributed earnings allocated to common shareholders | | | 9,303 | | | | 7,011 | |
| | | | | | | | | |
| Net earnings allocated to common shareholders | | $ | 20,805 | | | $ | 17,302 | |
| | | | | | | | | |
| Average common shares outstanding | | | 15,521 | | | | 14,676 | |
| | | | | | | | | |
| Effect of dilutive securities: | | | | | | | | |
| Employee stock options | | | 166 | | | | 84 | |
| | | | | | | | | |
| Shares for diluted earnings per share | | | 15,687 | | | | 14,760 | |
| | | | | | | | | |
| Basic earnings per common share | | $ | 1.34 | | | $ | 1.18 | |
| Diluted earnings per common share | | $ | 1.33 | | | $ | 1.17 | |
| Dividends declared per common share | | $ | 0.74 | | | $ | 0.70 | |
| | | | | | | | | |
| Comprehensive Income | | $ | 16,875 | | | $ | 18,872 | |
| CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | |
| Consolidated Statements of Changes in Stockholders' Equity | | | | | | |
| (Unaudited) ($ in 000s) | | | | | | |
| | | | | | | |
| | | | | | | |
| | | Three Months Ended | |
| | | June 30, 2013 | | | June 30, 2012 | |
| | | | | | | |
| Balance at April 1 | | $ | 365,848 | | | $ | 316,046 | |
| | | | | | | | | |
| Net income | | | 13,006 | | | | 7,413 | |
| Other comprehensive income: | | | | | | | | |
| Change in unrealized loss on securities available-for-sale | | | (4,208 | ) | | | (740 | ) |
| Cash dividends declared ($0.37/share) and ($0.35/share), respectively | | | (5,803 | ) | | | (5,188 | ) |
| Issuance of stock award shares, net | | | 246 | | | | 213 | |
| Acquisition of Community Financial Corporation | | | (198 | ) | | | - | |
| Acquisition of Virginia Savings Bancorp | | | - | | | | 7,723 | |
| Exercise of 20,435 stock options | | | - | | | | - | |
| Purchase of 149,535 common shares of treasury | | | - | | | | (4,845 | ) |
| Balance at June 30 | | $ | 368,891 | | | $ | 320,622 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | Six Months Ended | |
| | | June 30, 2013 | | | June 30, 2012 | |
| | | | | | | | | |
| Balance at January 1 | | $ | 333,274 | | | $ | 311,134 | |
| | | | | | | | | |
| Net income | | | 20,993 | | | | 17,442 | |
| Other comprehensive income: | | | | | | | | |
| Change in unrealized gain (loss) on securities available-for-sale | | | (4,118 | ) | | | 1,430 | |
| Cash dividends declared ($0.74/share) and ($0.70/share), respectively | | | (11,866 | ) | | | (10,337 | ) |
| Issuance of stock award shares, net | | | 703 | | | | 657 | |
| Acquisition of Community Financial Corporation | | | 28,508 | | | | - | |
| Acquisition of Virgina Savings Bancorp | | | - | | | | 7,723 | |
| Exercise of 62,685 stock options | | | 1,397 | | | | - | |
| Exercise of 16,899 stock options | | | - | | | | 488 | |
| Purchase of 237,535 common shares of treasury | | | - | | | | (7,915 | ) |
| Balance at June 30 | | $ | 368,891 | | | $ | 320,622 | |
CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | | | | | | | | | | |
| Condensed Consolidated Quarterly Statements of Income | | | | | | | | | | | | | |
| (Unaudited) ($ in 000s, except per share data) | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | June 30 | | | March 31 | | | December 31 | | | September 30 | | | June 30 | |
| | | 2013 | | | 2013 | | | 2012 | | | 2012 | | | 2012 | |
| | | | | | | | | | | | | | | | |
| Interest income | | $ | 34,724 | | | $ | 33,026 | | | $ | 28,884 | | | $ | 28,432 | | | $ | 27,466 | |
| Taxable equivalent adjustment | | | 167 | | | | 174 | | | | 183 | | | | 185 | | | | 198 | |
| Interest income (FTE) | | | 34,891 | | | | 33,200 | | | | 29,067 | | | | 28,617 | | | | 27,664 | |
| Interest expense | | | 3,427 | | | | 3,455 | | | | 3,360 | | | | 3,557 | | | | 3,625 | |
| Net interest income | | | 31,464 | | | | 29,745 | | | | 25,707 | | | | 25,060 | | | | 24,039 | |
| Provision for loan losses | | | 2,011 | | | | 1,738 | | | | 1,775 | | | | 975 | | | | 1,675 | |
| Net interest income after provision | | | | | | | | | | | | | | | | | | | | |
| for loan losses | | | 29,453 | | | | 28,007 | | | | 23,932 | | | | 24,085 | | | | 22,364 | |
| | | | | | | | | | | | | | | | | | | | | |
| Noninterest income | | | 14,252 | | | | 14,326 | | | | 14,266 | | | | 14,079 | | | | 13,790 | |
| Noninterest expense | | | 23,959 | | | | 29,403 | | | | 21,273 | | | | 21,846 | | | | 24,763 | |
| Income before income taxes | | | 19,746 | | | | 12,930 | | | | 16,925 | | | | 16,318 | | | | 11,391 | |
| Income tax expense | | | 6,573 | | | | 4,769 | | | | 5,848 | | | | 5,526 | | | | 3,780 | |
| Taxable equivalent adjustment | | | 167 | | | | 174 | | | | 183 | | | | 185 | | | | 198 | |
| Net income available to common shareholders | | $ | 13,006 | | | $ | 7,987 | | | $ | 10,894 | | | $ | 10,607 | | | $ | 7,413 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Distributed earnings allocated to common shareholders | | $ | 5,751 | | | $ | 5,747 | | | $ | 5,151 | | | $ | 5,150 | | | $ | 5,146 | |
| Undistributed earnings allocated to common shareholders | | | 7,139 | | | | 2,175 | | | | 5,658 | | | | 5,373 | | | | 2,208 | |
| Net earnings allocated to common shareholders | | $ | 12,890 | | | $ | 7,922 | | | $ | 10,809 | | | $ | 10,523 | | | $ | 7,354 | |
| | | | | | | | | | | | | | | | | | | | | |
| Average common shares outstanding | | | 15,582 | | | | 15,473 | | | | 14,755 | | | | 14,751 | | | | 14,680 | |
| | | | | | | | | | | | | | | | | | | | | |
| Effect of dilutive securities: | | | | | | | | | | | | | | | | | | | | |
| Employee stock options | | | 170 | | | | 154 | | | | 82 | | | | 83 | | | | 79 | |
| | | | | | | | | | | | | | | | | | | | | |
| Shares for diluted earnings per share | | | 15,752 | | | | 15,627 | | | | 14,837 | | | | 14,834 | | | | 14,759 | |
| | | | | | | | | | | | | | | | | | | | | |
| Basic earnings per common share | | $ | 0.83 | | | $ | 0.51 | | | $ | 0.73 | | | $ | 0.71 | | | $ | 0.50 | |
| Diluted earnings per common share | | | 0.82 | | | | 0.51 | | | | 0.73 | | | | 0.71 | | | | 0.50 | |
| | | | | | | | | | | | | | | | | | | | | |
| Cash dividends declared per share | | | 0.37 | | | | 0.37 | | | | 0.35 | | | | 0.35 | | | | 0.35 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Net Interest Margin | | | 4.35 | % | | | 4.18 | % | | | 3.99 | % | | | 3.95 | % | | | 3.91 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Interest Income from Accretion Related to Fair Value Adjustments Recorded as a Result of Acquisition | | $ | 3,517 | | | $ | 2,181 | | | $ | 1,658 | | | $ | 936 | | | $ | - | |
| | | | | | | | | | | | | | | | | | | | | |
CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | | | | | | | | | | |
| Non-Interest Income and Non-Interest Expense | | | | | | | | | | | | | | | |
| (Unaudited) ($ in 000s) | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | June 30 | | | March 31 | | | December 31 | | | September 30 | | | June 30 | |
| | | 2013 | | | 2013 | | | 2012 | | | 2012 | | | 2012 | |
| | | | | | | | | | | | | | | | |
| Non-Interest Income: | | | | | | | | | | | | | | | |
| Service charges | | $ | 6,897 | | | $ | 6,535 | | | $ | 7,113 | | | $ | 6,750 | | | $ | 6,497 | |
| Bankcard revenue | | | 3,450 | | | | 3,199 | | | | 3,101 | | | | 3,111 | | | | 3,152 | |
| Insurance commissions | | | 1,358 | | | | 1,840 | | | | 1,289 | | | | 1,439 | | | | 1,347 | |
| Trust and investment management fee income | | | 964 | | | | 990 | | | | 1,112 | | | | 912 | | | | 942 | |
| Bank owned life insurance | | | 799 | | | | 812 | | | | 754 | | | | 738 | | | | 766 | |
| Other income | | | 775 | | | | 866 | | | | 897 | | | | 671 | | | | 558 | |
| Subtotal | | | 14,243 | | | | 14,242 | | | | 14,266 | | | | 13,621 | | | | 13,262 | |
| Total investment securities impairment losses | | | - | | | | - | | | | - | | | | (272 | ) | | | (606 | ) |
| Noncredit impairment losses recognized in other | | | | | | | | | | | | | | | | | | | | |
| comprehensive income | | | - | | | | - | | | | - | | | | - | | | | 302 | |
| Net investment securities impairment losses | | | - | | | | - | | | | - | | | | (272 | ) | | | (304 | ) |
| Gain (loss) on sale of investment securities | | | 9 | | | | 84 | | | | - | | | | 730 | | | | 832 | |
| Total Non-Interest Income | | $ | 14,252 | | | $ | 14,326 | | | $ | 14,266 | | | $ | 14,079 | | | $ | 13,790 | |
| | | | | | | | | | | | | | | | | | | | | |
| Non-Interest Expense: | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | $ | 12,640 | | | $ | 12,949 | | | $ | 11,301 | | | $ | 11,295 | | | $ | 10,668 | |
| Occupancy and equipment | | | 2,500 | | | | 2,472 | | | | 2,147 | | | | 2,126 | | | | 1,978 | |
| Depreciation | | | 1,453 | | | | 1,399 | | | | 1,234 | | | | 1,175 | | | | 1,109 | |
| FDIC insurance expense | | | 341 | | | | 511 | | | | 407 | | | | 405 | | | | 394 | |
| Advertising | | | 819 | | | | 735 | | | | 596 | | | | 674 | | | | 675 | |
| Bankcard expenses | | | 766 | | | | 727 | | | | 628 | | | | 720 | | | | 694 | |
| Postage, delivery and statement mailings | | | 552 | | | | 605 | | | | 514 | | | | 529 | | | | 488 | |
| Office supplies | | | 463 | | | | 441 | | | | 412 | | | | 407 | | | | 396 | |
| Legal and professional fees | | | 535 | | | | 435 | | | | 437 | | | | 611 | | | | 421 | |
| Telecommunications | | | 465 | | | | 445 | | | | 405 | | | | 433 | | | | 387 | |
| Repossessed asset (gains) losses, net of expenses | | | (23 | ) | | | (155 | ) | | | 146 | | | | 429 | | | | 650 | |
| Merger related expenses | | | 65 | | | | 5,540 | | | | 373 | | | | 157 | | | | 4,042 | |
| Other expenses | | | 3,383 | | | | 3,299 | | | | 2,673 | | | | 2,885 | | | | 2,861 | |
| Total Non-Interest Expense | | $ | 23,959 | | | $ | 29,403 | | | $ | 21,273 | | | $ | 21,846 | | | $ | 24,763 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Employees (Full Time Equivalent) | | | 931 | | | | 932 | | | | 843 | | | | 836 | | | | 831 | |
| Branch Locations | | | 83 | | | | 83 | | | | 73 | | | | 73 | | | | 73 | |
| | | | | | | | | | | | | | | | | | | | | |
| CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | |
| Consolidated Balance Sheets | | | | | | |
| ($ in 000s) | | | | | | |
| | | June 30 | | | December 31 | |
| | | 2013 | | | 2012 | |
| | | (Unaudited) | | | | |
| Assets | | | | | | |
| Cash and due from banks | | $ | 186,707 | | | $ | 58,718 | |
| Interest-bearing deposits in depository institutions | | | 5,627 | | | | 16,276 | |
| Federal funds sold | | | - | | | | 10,000 | |
| Cash and cash equivalents | | | 192,334 | | | | 84,994 | |
| | | | | | | | | |
| Investment securities available-for-sale, at fair value | | | 328,782 | | | | 377,122 | |
| Investment securities held-to-maturity, at amortized cost | | | 4,293 | | | | 13,454 | |
| Other securities | | | 13,344 | | | | 11,463 | |
| Total investment securities | | | 346,419 | | | | 402,039 | |
| | | | | | | | | |
| Gross loans | | | 2,527,445 | | | | 2,146,369 | |
| Allowance for loan losses | | | (20,069 | ) | | | (18,809 | ) |
| Net loans | | | 2,507,376 | | | | 2,127,560 | |
| | | | | | | | | |
| Bank owned life insurance | | | 90,444 | | | | 81,901 | |
| Premises and equipment, net | | | 82,190 | | | | 72,728 | |
| Accrued interest receivable | | | 8,275 | | | | 6,692 | |
| Net deferred tax assets | | | 46,549 | | | | 32,737 | |
| Intangible assets | | | 74,642 | | | | 65,057 | |
| Other assets | | | 34,321 | | | | 43,758 | |
| Total Assets | | $ | 3,382,550 | | | $ | 2,917,466 | |
| | | | | | | | | |
| Liabilities | | | | | | | | |
| Deposits: | | | | | | | | |
| Noninterest-bearing | | $ | 510,713 | | | $ | 429,969 | |
| Interest-bearing: | | | | | | | | |
| Demand deposits | | | 612,950 | | | | 553,132 | |
| Savings deposits | | | 603,818 | | | | 506,869 | |
| Time deposits | | | 1,108,469 | | | | 919,346 | |
| Total deposits | | | 2,835,950 | | | | 2,409,316 | |
| Short-term borrowings | | | | | | | | |
| Customer repurchase agreements | | | 124,343 | | | | 114,646 | |
| Long-term debt | | | 16,495 | | | | 16,495 | |
| Other liabilities | | | 36,871 | | | | 43,735 | |
| Total Liabilities | | | 3,013,659 | | | | 2,584,192 | |
| | | | | | | | | |
| Stockholders' Equity | | | | | | | | |
| Preferred stock, par value $25 per share: 500,000 shares authorized; none issued | | | - | | | | - | |
| Common stock, par value $2.50 per share: 50,000,000 shares authorized; | | | | | | | | |
| 18,499,282 shares issued at June 30, 2013 and December 31, 2012 | | | | | | | | |
| less 2,815,397 and 3,665,999 shares in treasury, respectively | | | 46,249 | | | | 46,249 | |
| Capital surplus | | | 107,235 | | | | 103,524 | |
| Retained earnings | | | 318,397 | | | | 309,270 | |
| Cost of common stock in treasury | | | (97,450 | ) | | | (124,347 | ) |
| Accumulated other comprehensive loss: | | | | | | | | |
| Unrealized gain on securities available-for-sale | | | (545 | ) | | | 3,573 | |
| Underfunded pension liability | | | (4,995 | ) | | | (4,995 | ) |
| Total Accumulated Other Comprehensive Loss | | | (5,540 | ) | | | (1,422 | ) |
| Total Stockholders' Equity | | | 368,891 | | | | 333,274 | |
| Total Liabilities and Stockholders' Equity | | $ | 3,382,550 | | | $ | 2,917,466 | |
| CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | | |
| Investment Portfolio | | | | | | | | | | | | |
| (Unaudited) ($ in 000s) | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | Original Cost | | | Credit-Related Net Investment Impairment Losses through June 30, 2013 | | | Unrealized Gains (Losses) | | | Carrying Value | |
| | | | | | | | | | | | | |
| US Government Agencies | | $ | 2,857 | | | $ | - | | | $ | 68 | | | $ | 2,925 | |
| Mortgage Backed Securities | | | 254,240 | | | | - | | | | (306 | ) | | | 253,934 | |
| Municipal Bonds | | | 43,156 | | | | - | | | | 833 | | | | 43,989 | |
| Pooled Bank Trust Preferreds | | | 25,062 | | | | (20,171 | ) | | | (2,427 | ) | | | 2,464 | |
| Single Issuer Bank Trust Preferreds, | | | | | | | | | | | | | | | | |
| Subdebt of Financial Institutions, and | | | | | | | | | | | | | | | | |
| Bank Holding Company Preferred Stocks | | | 24,901 | | | | (1,015 | ) | | | (508 | ) | | | 23,378 | |
| Money Markets and Mutual Funds | | | 1,525 | | | | - | | | | (11 | ) | | | 1,514 | |
| Federal Reserve Bank and FHLB stock | | | 13,344 | | | | - | | | | - | | | | 13,344 | |
| Community Bank Equity Positions | | | 8,194 | | | | (4,813 | ) | | | 1,490 | | | | 4,871 | |
| Total Investments | | $ | 373,279 | | | $ | (25,999 | ) | | $ | (861 | ) | | $ | 346,419 | |
CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | | | | | | | | |
| Loan Portfolio | | | | | | | | | | | | | |
| (Unaudited) ($ in 000s) | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | June 30 | | | March 31 | | | December 31 | | | September 30 | | | June 30 | |
| | | | 2013 | | | 2013 | | | 2012 | | | 2012 | | | 2012 | |
| | | | | | | | | | | | | | | | | |
Residential real estate (1) | | | $ | 1,170,123 | | | $ | 1,149,411 | | | $ | 1,031,435 | | | $ | 1,008,305 | | | $ | 997,016 | |
| Home equity - junior liens | | | | 138,367 | | | | 138,333 | | | | 143,110 | | | | 143,058 | | | | 143,400 | |
| Commercial and industrial | | | | 138,299 | | | | 149,677 | | | | 108,739 | | | | 105,027 | | | | 116,288 | |
Commercial real estate (2) | | | | 1,023,311 | | | | 1,001,453 | | | | 821,970 | | | | 787,887 | | | | 768,176 | |
| Consumer | | | | 54,242 | | | | 55,274 | | | | 36,564 | | | | 38,285 | | | | 37,383 | |
| DDA overdrafts | | | | 3,103 | | | | 2,876 | | | | 4,551 | | | | 2,670 | | | | 3,326 | |
| Gross Loans | | | $ | 2,527,445 | | | $ | 2,497,024 | | | $ | 2,146,369 | | | $ | 2,085,232 | | | $ | 2,065,589 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Construction loans included in: | | | | | | | | | | | | | | | | | | | | | |
(1) - Residential real estate loans | | | $ | 15,889 | | | $ | 16,884 | | | $ | 15,408 | | | $ | 12,787 | | | $ | 11,919 | |
(2) - Commercial real estate loans | | | $ | 24,726 | | | $ | 26,163 | | | $ | 15,352 | | | $ | 17,072 | | | $ | 18,544 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | | | | | | | | | | | | |
| Acquisition Activity - Accretion | | | | | | | | | | | | | | | | | |
| (Unaudited) ($ in millions) | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| The following table presents the actual and forecasted accretion related to the fair value adjustments on net interest income recorded as a result of the Virginia Savings Bancorp (VSB) and Community Financial Corporation (Community) acquisitions. | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | VSB | | | Community | | | | | |
| | | | Loan | | | Certificates of | | | Loan | | | Certificates of | | | | | |
| Year Ended: | | | Accretion(a) | | | Deposit(a) | | | Accretion(a) | | | Deposit(a) | | | Total | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 1Q 2013 | | | $ | 985 | | | $ | 178 | | | $ | 858 | | | $ | 160 | | | $ | 2,181 | |
| | 2Q 2013 | | | | 1,334 | | | | 122 | | | | 1,887 | | | | 174 | | | | 3,517 | |
| Remainder 2013 | | | | 718 | | | | 242 | | | | 2,755 | | | | 305 | | | | 4,020 | |
| | 2014 | | | | 974 | | | | 537 | | | | 3,483 | | | | 294 | | | | 5,288 | |
| | 2015 | | | | 729 | | | | 518 | | | | 1,993 | | | | 160 | | | | 3,400 | |
| Thereafter | | | | 1,494 | | | | 497 | | | | 8,458 | | | | 48 | | | | 10,497 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| a - 2Q 2013 amounts are based on actual results. Remainder 2013, 2014, 2015, and Thereafter amounts are based on estimated amounts. | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Note: The amounts reflected in the table above require management to make significant assumptions based on estimated future default, prepayment, and discount rates. Actual | |
| performance could be significantly different from that assumed, which could result in the actual results being materially different from the amounts estimated above. | |
CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | | | | | | | | | | | |
| Consolidated Average Balance Sheets, Yields, and Rates | | | | | | | | | | | | | | | | |
| (Unaudited) ($ in 000s) | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended June 30, | |
| | | | | | 2013 | | | | | | | | | 2012 | | | | |
| | | Average | | | | | | Yield/ | | | Average | | | | | | Yield/ | |
| | | Balance | | | Interest | | | Rate | | | Balance | | | Interest | | | Rate | |
| | | | | | | | | | | | | | | | | | | |
| Assets: | | | | | | | | | | | | | | | | | | |
Loan portfolio (1): | | | | | | | | | | | | | | | | | | |
Residential real estate (2) | | $ | 1,290,188 | | | $ | 13,564 | | | | 4.22 | % | | $ | 1,096,164 | | | $ | 11,904 | | | | 4.37 | % |
Commercial, financial, and agriculture (3) | | | 1,156,269 | | | | 15,654 | | | | 5.43 | % | | | 876,678 | | | | 9,742 | | | | 4.47 | % |
Installment loans to individuals (4), (5) | | | 67,426 | | | | 1,839 | | | | 10.94 | % | | | 46,439 | | | | 751 | | | | 6.50 | % |
Previously securitized loans (6) | | | *** | | | | 714 | | | | *** | | | | *** | | | | 746 | | | | *** | |
| Total loans | | | 2,513,883 | | | | 31,771 | | | | 5.07 | % | | | 2,019,281 | | | | 23,143 | | | | 4.61 | % |
| Securities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 327,252 | | | | 2,632 | | | | 3.23 | % | | | 378,656 | | | | 3,943 | | | | 4.19 | % |
Tax-exempt (7) | | | 31,789 | | | | 479 | | | | 6.04 | % | | | 39,678 | | | | 566 | | | | 5.74 | % |
| Total securities | | | 359,041 | | | | 3,111 | | | | 3.48 | % | | | 418,334 | | | | 4,509 | | | | 4.34 | % |
| Deposits in depository institutions | | | 7,451 | | | | - | | | | - | | | | 6,951 | | | | - | | | | - | |
| Federal funds sold | | | 22,747 | | | | 9 | | | | 0.16 | % | | | 26,124 | | | | 12 | | | | 0.18 | % |
| Total interest-earning assets | | | 2,903,122 | | | | 34,891 | | | | 4.82 | % | | | 2,470,690 | | | | 27,664 | | | | 4.50 | % |
| Cash and due from banks | | | 175,837 | | | | | | | | | | | | 70,858 | | | | | | | | | |
| Bank premises and equipment | | | 82,243 | | | | | | | | | | | | 68,936 | | | | | | | | | |
| Other assets | | | 261,552 | | | | | | | | | | | | 215,692 | | | | | | | | | |
| Less: Allowance for loan losses | | | (20,089 | ) | | | | | | | | | | | (19,179 | ) | | | | | | | | |
| Total assets | | $ | 3,402,665 | | | | | | | | | | | $ | 2,806,997 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand deposits | | | 611,334 | | | | 179 | | | | 0.12 | % | | | 533,666 | | | | 173 | | | | 0.13 | % |
| Savings deposits | | | 603,604 | | | | 216 | | | | 0.14 | % | | | 474,976 | | | | 184 | | | | 0.16 | % |
Time deposits (8) | | | 1,116,358 | | | | 2,800 | | | | 1.01 | % | | | 895,921 | | | | 3,026 | | | | 1.36 | % |
| Short-term borrowings | | | 125,729 | | | | 79 | | | | 0.25 | % | | | 121,424 | | | | 77 | | | | 0.26 | % |
| Long-term debt | | | 16,495 | | | | 153 | | | | 3.72 | % | | | 16,495 | | | | 165 | | | | 4.02 | % |
| Total interest-bearing liabilities | | | 2,473,520 | | | | 3,427 | | | | 0.56 | % | | | 2,042,482 | | | | 3,625 | | | | 0.71 | % |
| Noninterest-bearing demand deposits | | | 519,212 | | | | | | | | | | | | 413,709 | | | | | | | | | |
| Other liabilities | | | 37,698 | | | | | | | | | | | | 28,921 | | | | | | | | | |
| Stockholders' equity | | | 372,235 | | | | | | | | | | | | 321,885 | | | | | | | | | |
| Total liabilities and | | | | | | | | | | | | | | | | | | | | | | | | |
| stockholders' equity | | $ | 3,402,665 | | | | | | | | | | | $ | 2,806,997 | | | | | | | | | |
| Net interest income | | | | | | $ | 31,464 | | | | | | | | | | | $ | 24,039 | | | | | |
| Net yield on earning assets | | | | | | | | | | | 4.35 | % | | | | | | | | | | | 3.91 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
(1) For purposes of this table, non-accruing loans have been included in average balances and loan fees, which are immaterial, have been included in interest income. | |
| (2) - Interest income on residential real estate loans includes $0.2 million and $0.1 million of accretion related to the fair value market adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively. | |
| (3) - Interest income on commercial, financial, and agriculture loans includes $1.0 million and $1.3 million of accretion related to the fair value market adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively. | |
| (4) - Interest income on installment loans to individuals includes $0.1 million and $0.5 million of accretion related to the fair value market adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively. | |
| (5) Includes the Company’s consumer and DDA overdrafts loan categories. | |
| (6) Effective January 1, 2012, the carrying value of the Company's previously securitized loans was reduced to $0. | |
(7) Computed on a fully federal tax-equivalent basis assuming a tax rate of approximately 35%. | |
| (8) - Interest expense on time deposits includes $0.1 million and $0.2 million in accretion of the fair market value adjustments related to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively. | |
CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | | | | | | | | | | | |
| Consolidated Average Balance Sheets, Yields, and Rates | | | | | | | | | | | | | | | | |
| (Unaudited) ($ in 000s) | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended June 30, | |
| | | | | | 2013 | | | | | | | | | 2012 | | | | |
| | | Average | | | | | | Yield/ | | | Average | | | | | | Yield/ | |
| | | Balance | | | Interest | | | Rate | | | Balance | | | Interest | | | Rate | |
| | | | | | | | | | | | | | | | | | | |
| Assets: | | | | | | | | | | | | | | | | | | |
Loan portfolio (1): | | | | | | | | | | | | | | | | | | |
Residential real estate (2) | | $ | 1,283,907 | | | $ | 27,284 | | | | 4.29 | % | | $ | 1,082,038 | | | $ | 23,731 | | | | 4.41 | % |
Commercial, financial, and agriculture (3) | | | 1,139,187 | | | | 29,845 | | | | 5.28 | % | | | 869,782 | | | | 19,326 | | | | 4.47 | % |
Installment loans to individuals (4), (5) | | | 66,649 | | | | 3,217 | | | | 9.73 | % | | | 44,060 | | | | 1,521 | | | | 6.94 | % |
Previously securitized loans (6) | | | *** | | | | 1,363 | | | | *** | | | | *** | | | | 1,632 | | | | *** | |
| Total loans | | | 2,489,743 | | | | 61,709 | | | | 5.00 | % | | | 1,995,880 | | | | 46,210 | | | | 4.66 | % |
| Securities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 338,627 | | | | 5,382 | | | | 3.21 | % | | | 365,233 | | | | 7,907 | | | | 4.35 | % |
Tax-exempt (7) | | | 32,386 | | | | 978 | | | | 6.09 | % | | | 40,397 | | | | 1,162 | | | | 5.78 | % |
| Total securities | | | 371,013 | | | | 6,360 | | | | 3.46 | % | | | 405,630 | | | | 9,069 | | | | 4.50 | % |
| Deposits in depository institutions | | | 8,238 | | | | - | | | | - | | | | 7,269 | | | | - | | | | - | |
| Federal funds sold | | | 26,320 | | | | 21 | | | | 0.16 | % | | | 26,793 | | | | 23 | | | | 0.17 | % |
| Total interest-earning assets | | | 2,895,314 | | | | 68,090 | | | | 4.74 | % | | | 2,435,572 | | | | 55,302 | | | | 4.57 | % |
| Cash and due from banks | | | 144,096 | | | | | | | | | | | | 73,171 | | | | | | | | | |
| Bank premises and equipment | | | 81,604 | | | | | | | | | | | | 66,841 | | | | | | | | | |
| Other assets | | | 260,449 | | | | | | | | | | | | 216,033 | | | | | | | | | |
| Less: Allowance for loan losses | | | (19,782 | ) | | | | | | | | | | | (19,452 | ) | | | | | | | | |
| Total assets | | $ | 3,361,681 | | | | | | | | | | | $ | 2,772,165 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand deposits | | | 607,339 | | | | 358 | | | | 0.12 | % | | | 528,714 | | | | 351 | | | | 0.13 | % |
| Savings deposits | | | 593,880 | | | | 430 | | | | 0.15 | % | | | 461,705 | | | | 372 | | | | 0.16 | % |
Time deposits (8) | | | 1,111,696 | | | | 5,634 | | | | 1.02 | % | | | 892,516 | | | | 6,328 | | | | 1.43 | % |
| Short-term borrowings | | | 118,838 | | | | 149 | | | | 0.25 | % | | | 117,685 | | | | 150 | | | | 0.26 | % |
| Long-term debt | | | 16,495 | | | | 309 | | | | 3.78 | % | | | 16,495 | | | | 333 | | | | 4.06 | % |
| Total interest-bearing liabilities | | | 2,448,248 | | | | 6,880 | | | | 0.57 | % | | | 2,017,115 | | | | 7,534 | | | | 0.75 | % |
| Noninterest-bearing demand deposits | | | 508,865 | | | | | | | | | | | | 403,305 | | | | | | | | | |
| Other liabilities | | | 40,142 | | | | | | | | | | | | 32,676 | | | | | | | | | |
| Stockholders' equity | | | 364,426 | | | | | | | | | | | | 319,069 | | | | | | | | | |
| Total liabilities and | | | | | | | | | | | | | | | | | | | | | | | | |
| stockholders' equity | | $ | 3,361,681 | | | | | | | | | | | $ | 2,772,165 | | | | | | | | | |
| Net interest income | | | | | | $ | 61,210 | | | | | | | | | | | $ | 47,768 | | | | | |
| Net yield on earning assets | | | | | | | | | | | 4.26 | % | | | | | | | | | | | 3.94 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
(1) For purposes of this table, non-accruing loans have been included in average balances and loan fees, which are immaterial, have been included in interest income. | |
| (2) - Interest income on residential real estate loans includes $0.5 million and $0.2 million of accretion related to the fair value market adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively. | |
| (3) - Interest income on commercial, financial, and agriculture loans includes $1.7 million and $1.9 million of accretion related to the fair value market adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively. | |
| (4) Includes the Company’s consumer and DDA overdrafts loan categories. | |
| (5) - Interest income on installment loans to individuals includes $0.1 million and $0.6 million of accretion related to the fair value market adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively. | |
| (6) Effective January 1, 2012, the carrying value of the Company's previously securitized loans was reduced to $0. | |
(7) Computed on a fully federal tax-equivalent basis assuming a tax rate of approximately 35%. | |
| (8) - Interest expense on time deposits includes $0.3 million and $0.3 million in accretion of the fair market value adjustments related to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively. | |
CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | | | | | | | | | | |
| Analysis of Risk-Based Capital | | | | | | | | | | | | | | | |
| (Unaudited) ($ in 000s) | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | June 30 | | | March 31 | | | December 31 | | | September 30 | | | June 30 | |
| | | 2013 (a) | | | 2013 | | | 2012 | | | 2012 | | | 2012 | |
| | | | | | | | | | | | | | | | |
| Tier I Capital: | | | | | | | | | | | | | | | |
| Stockholders' equity | | $ | 368,891 | | | $ | 365,848 | | | $ | 333,274 | | | $ | 328,415 | | | $ | 320,622 | |
| Goodwill and other intangibles | | | (74,455 | ) | | | (75,563 | ) | | | (64,866 | ) | | | (64,912 | ) | | | (64,971 | ) |
| Accumulated other comprehensive loss | | | 5,540 | | | | 1,332 | | | | 1,422 | | | | 365 | | | | 2,477 | |
| Qualifying trust preferred stock | | | 16,000 | | | | 16,000 | | | | 16,000 | | | | 16,000 | | | | 16,000 | |
| Unrealized loss on AFS securities | | | (11 | ) | | | - | | | | - | | | | - | | | | - | |
| Excess deferred tax assets | | | (13,572 | ) | | | (17,737 | ) | | | (6,577 | ) | | | (7,472 | ) | | | (7,847 | ) |
| Total tier I capital | | $ | 302,394 | | | $ | 289,880 | | | $ | 279,254 | | | $ | 272,397 | | | $ | 266,282 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total Risk-Based Capital: | | | | | | | | | | | | | | | | | | | | |
| Tier I capital | | $ | 302,394 | | | $ | 289,880 | | | $ | 279,254 | | | $ | 272,397 | | | $ | 266,282 | |
| Qualifying allowance for loan losses | | | 20,069 | | | | 19,721 | | | | 18,809 | | | | 18,986 | | | | 19,452 | |
| Unrealized gain on securities | | | 686 | | | | 696 | | | | - | | | | - | | | | - | |
| Total risk-based capital | | $ | 323,149 | | | $ | 310,297 | | | $ | 298,063 | | | $ | 291,383 | | | $ | 285,734 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net risk-weighted assets | | $ | 2,450,010 | | | $ | 2,436,022 | | | $ | 2,152,622 | | | $ | 2,112,581 | | | $ | 2,136,249 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Ratios: | | | | | | | | | | | | | | | | | | | | |
| Average stockholders' equity to average assets | | | 10.94 | % | | | 10.74 | % | | | 11.49 | % | | | 11.32 | % | | | 11.47 | % |
| Tangible capital ratio | | | 8.90 | % | | | 8.61 | % | | | 9.40 | % | | | 9.29 | % | | | 9.03 | % |
| Risk-based capital ratios: | | | | | | | | | | | | | | | | | | | | |
| Tier I capital | | | 12.34 | % | | | 11.90 | % | | | 12.97 | % | | | 12.89 | % | | | 12.46 | % |
| Total risk-based capital | | | 13.19 | % | | | 12.74 | % | | | 13.85 | % | | | 13.79 | % | | | 13.38 | % |
| Leverage capital | | | 9.12 | % | | | 8.98 | % | | | 9.82 | % | | | 9.67 | % | | | 9.74 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| (a) June 30, 2013 risk-based capital ratios are estimated | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | | | | | | | | | | | | | | | |
| Intangibles | | | | | | | | | | | | | | | | | | | | |
| (Unaudited) ($ in 000s) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | As of and for the Quarter Ended | |
| | | June 30 | | | March 31 | | | December 31 | | | September 30 | | | June 30 | |
| | | | 2013 | | | | 2013 | | | | 2012 | | | | 2012 | | | | 2012 | |
| | | | | | | | | | | | | | | | | | | | | |
| Intangibles, net | | $ | 74,642 | | | $ | 75,750 | | | $ | 65,057 | | | $ | 65,103 | | | $ | 65,162 | |
| Intangibles amortization expense | | | 260 | | | | 260 | | | | 135 | | | | 135 | | | | 109 | |
| | | | | | | | | | | | | | | | | | | | | |
CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | | | | | | | | | | |
| Summary of Loan Loss Experience | | | | | | | | | | | | | | | |
| (Unaudited) ($ in 000s) | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | June 30 | | | March 31 | | | December 31 | | | September 30 | | | June 30 | |
| | | 2013 | | | 2013 | | | 2012 | | | 2012 | | | 2012 | |
| | | | | | | | | | | | | | | | |
| Balance at beginning of period | | $ | 19,721 | | | $ | 18,809 | | | $ | 18,986 | | | $ | 19,452 | | | $ | 18,628 | |
| | | | | | | | | | | | | | | | | | | | | |
| Charge-offs: | | | | | | | | | | | | | | | | | | | | |
| Commercial and industrial | | | 330 | | | | 62 | | | | 100 | | | | 9 | | | | 48 | |
| Commercial real estate | | | 419 | | | | 203 | | | | 1,744 | | | | 845 | | | | 26 | |
| Residential real estate | | | 520 | | | | 591 | | | | 284 | | | | 252 | | | | 296 | |
| Home equity | | | 154 | | | | 116 | | | | 366 | | | | 133 | | | | 347 | |
| Consumer | | | 221 | | | | 3 | | | | 42 | | | | 53 | | | | 36 | |
| DDA overdrafts | | | 348 | | | | 339 | | | | 394 | | | | 418 | | | | 375 | |
| Total charge-offs | | | 1,992 | | | | 1,314 | | | | 2,930 | | | | 1,710 | | | | 1,128 | |
| | | | | | | | | | | | | | | | | | | | | |
| Recoveries: | | | | | | | | | | | | | | | | | | | | |
| Commercial and industrial | | | 20 | | | | 1 | | | | 19 | | | | 10 | | | | - | |
| Commercial real estate | | | 16 | | | | 18 | | | | 190 | | | | 3 | | | | - | |
| Residential real estate | | | 20 | | | | 48 | | | | 7 | | | | 8 | | | | 3 | |
| Home equity | | | - | | | | - | | | | 6 | | | | 1 | | | | 10 | |
| Consumer | | | 70 | | | | 147 | | | | 45 | | | | 26 | | | | 35 | |
| DDA overdrafts | | | 203 | | | | 274 | | | | 711 | | | | 221 | | | | 229 | |
| Total recoveries | | | 329 | | | | 488 | | | | 978 | | | | 269 | | | | 277 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net charge-offs | | | 1,663 | | | | 826 | | | | 1,952 | | | | 1,441 | | | | 851 | |
| Provision for loan losses | | | 1,834 | | | | 1,738 | | | | 1,775 | | | | 975 | | | | 1,675 | |
| Provision for acquired loans | | | 177 | | | | - | | | | - | | | | - | | | | - | |
| Balance at end of period | | $ | 20,069 | | | $ | 19,721 | | | $ | 18,809 | | | $ | 18,986 | | | $ | 19,452 | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans outstanding | | $ | 2,527,445 | | | $ | 2,497,023 | | | $ | 2,146,369 | | | $ | 2,085,232 | | | $ | 2,065,589 | |
| Average loans outstanding | | | 2,513,883 | | | | 2,465,336 | | | | 2,104,483 | | | | 2,070,264 | | | | 2,019,281 | |
| Allowance as a percent of loans outstanding | | | 0.79 | % | | | 0.79 | % | | | 0.88 | % | | | 0.91 | % | | | 0.94 | % |
| Allowance as a percent of non-performing loans | | | 119.63 | % | | | 110.21 | % | | | 96.59 | % | | | 82.61 | % | | | 88.92 | % |
| Net charge-offs (annualized) as a | | | | | | | | | | | | | | | | | | | | |
| percent of average loans outstanding | | | 0.26 | % | | | 0.13 | % | | | 0.37 | % | | | 0.28 | % | | | 0.17 | % |
| Net charge-offs, excluding overdraft deposit accounts, | | | | | | | | | | | | | | | | | | | | |
| (annualized) as a percent of average loans outstanding | | | 0.24 | % | | | 0.12 | % | | | 0.43 | % | | | 0.24 | % | | | 0.14 | % |
| CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | | | | | | | | | | |
| Summary of Non-Performing Assets | | | | | | | | | | | | | | | |
| (Unaudited) ($ in 000s) | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | June 30 | | | March 31 | | | December 31 | | | September 30 | | | June 30 | |
| | | 2013 | | | 2013 | | | 2012 | | | 2012 | | | 2012 | |
| | | | | | | | | | | | | | | | |
| Nonaccrual loans | | $ | 15,706 | | | $ | 17,520 | | | $ | 19,194 | | | $ | 22,586 | | | $ | 21,726 | |
| Accruing loans past due 90 days or more | | | 1,070 | | | | 374 | | | | 280 | | | | 397 | | | | 149 | |
| Total non-performing loans | | | 16,776 | | | | 17,894 | | | | 19,474 | | | | 22,983 | | | | 21,875 | |
| Other real estate owned | | | 10,837 | | | | 10,508 | | | | 8,162 | | | | 9,017 | | | | 8,697 | |
| Total non-performing assets | | $ | 27,613 | | | $ | 28,402 | | | $ | 27,636 | | | $ | 32,000 | | | $ | 30,572 | |
| | | | | | | | | | | | | | | | | | | | | |
| Non-performing assets as a percent of loans and | | | | | | | | | | | | | | | | | | | | |
| other real estate owned | | | 1.09 | % | | | 1.13 | % | | | 1.28 | % | | | 1.53 | % | | | 1.47 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | | | | | | | | | | | | | | | |
| Summary of Total Past Due Loans | | | | | | | | | | | | | | | | | | | | |
| (Unaudited) ($ in 000s) | | | | | | | | | | | | | | | | | | | | |
| | | Originated | |
| | | June 30 | | | March 31 | | | December 31 | | | September 30 | | | June 30 | |
| | | | 2013 | | | | 2013 | | | | 2012 | | | | 2012 | | | | 2012 | |
| | | | | | | | | | | | | | | | | | | | | |
| Residential real estate | | $ | 6,525 | | | $ | 5,889 | | | $ | 5,748 | | | $ | 4,909 | | | $ | 5,575 | |
| Home equity | | | 655 | | | | 858 | | | | 2,893 | | | | 2,643 | | | | 1,864 | |
| Commercial and industrial | | | 234 | | | | 320 | | | | 496 | | | | 25 | | | | 540 | |
| Commercial real estate | | | 2,556 | | | | 1,503 | | | | 633 | | | | 1,271 | | | | 3,145 | |
| Consumer | | | 103 | | | | 83 | | | | 121 | | | | 136 | | | | 90 | |
| DDA overdrafts | | | 290 | | | | 337 | | | | 281 | | | | 319 | | | | 364 | |
| Total past due loans | | $ | 10,363 | | | $ | 8,990 | | | $ | 10,172 | | | $ | 9,303 | | | $ | 11,578 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Acquired | |
| | | June 30 | | | March 31 | | | December 31 | | | September 30 | | | June 30 | |
| | | | 2013 | | | | 2013 | | | | 2012 | | | | 2012 | | | | 2012 | |
| | | | | | | | | | | | | | | | | | | | | |
| Residential real estate | | $ | 1,986 | | | $ | 2,759 | | | $ | - | | | $ | - | | | $ | - | |
| Home equity | | | - | | | | - | | | | - | | | | - | | | | - | |
| Commercial and industrial | | | 3,710 | | | | 11,245 | | | | 1,004 | | | | - | | | | - | |
| Commercial real estate | | | 13,661 | | | | 7,247 | | | | 1,793 | | | | - | | | | - | |
| Consumer | | | 693 | | | | 864 | | | | - | | | | - | | | | - | |
| DDA overdrafts | | | - | | | | - | | | | - | | | | - | | | | - | |
| Total past due loans | | $ | 20,050 | | | $ | 22,115 | | | $ | 2,797 | | | $ | - | | | $ | - | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Total | |
| | | June 30 | | | March 31 | | | December 31 | | | September 30 | | | June 30 | |
| | | | 2013 | | | | 2013 | | | | 2012 | | | | 2012 | | | | 2012 | |
| | | | | | | | | | | | | | | | | | | | | |
| Residential real estate | | $ | 8,511 | | | $ | 8,648 | | | $ | 5,748 | | | $ | 4,909 | | | $ | 5,575 | |
| Home equity | | | 655 | | | | 858 | | | | 2,893 | | | | 2,643 | | | | 1,864 | |
| Commercial and industrial | | | 3,944 | | | | 11,565 | | | | 1,500 | | | | 25 | | | | 540 | |
| Commercial real estate | | | 16,217 | | | | 8,750 | | | | 2,426 | | | | 1,271 | | | | 3,145 | |
| Consumer | | | 796 | | | | 947 | | | | 121 | | | | 136 | | | | 90 | |
| DDA overdrafts | | | 290 | | | | 337 | | | | 281 | | | | 319 | | | | 364 | |
| Total past due loans | | $ | 30,413 | | | $ | 31,105 | | | $ | 12,969 | | | $ | 9,303 | | | $ | 11,578 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total past due loans as a percent of loans outstanding | | | 1.20 | % | | | 1.25 | % | | | 0.60 | % | | | 0.45 | % | | | 0.56 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | | | | | | | | | | | | | | | |
| Summary of Troubled Debt Restructurings | | | | | | | | | | | | | | | | | | | | |
| (Unaudited) ($ in 000s) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | June 30 | | | March 31 | | | December 31 | | | September 30 | | | June 30 | |
| | | | 2013 | | | | 2013 | | | | 2012 | | | | 2012 | | | | 2012 | |
| | | | | | | | | | | | | | | | | | | | | |
| Residential real estate | | $ | 21,480 | | | $ | 20,136 | | | $ | 18,988 | | | $ | 17,979 | | | $ | - | |
| Home equity | | | 2,963 | | | | 3,025 | | | | 3,743 | | | | 3,126 | | | | - | |
| Commercial and industrial | | | 95 | | | | 101 | | | | 101 | | | | - | | | | - | |
| Commercial real estate | | | 1,791 | | | | 1,805 | | | | 734 | | | | 227 | | | | 228 | |
| Consumer | | | - | | | | 142 | | | | 142 | | | | 144 | | | | 146 | |
| Total | | $ | 26,329 | | | $ | 25,209 | | | $ | 23,708 | | | $ | 21,476 | | | $ | 374 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| At September 30, 2012, the Company reclassified $21.1 million of loans as TDRs in accordance with recent regulatory guidance. The regulatory guidance requires loans to be accounted for as collateral-dependent loans when borrowers have filed Chapter 7 bankruptcy, the debt has been discharged by the bankruptcy court and the borrower has not reaffirmed the debt. | |
