Exhibit 99
NEWS RELEASE
--------------------------------------------------------------------------------
For Immediate Release
September 28, 2001
For Further Information Contact:
Jerry Francis, President & CEO
(304) 769-1101
City Holding Company Announces A Revised Formal Agreement With The Office Of The
Comptroller Of Currency
Charleston, West Virginia - City Holding Company (NASDAQ:CHCO), a $2.4
billion bank holding company headquartered in Charleston, today announced that
its principal subsidiary, City National Bank of West Virginia, has entered into
a revised, less comprehensive formal agreement with the Office of the
Comptroller of the Currency undertaking to implement remedial action in a small
number of areas. The new agreement recognizes areas of compliance under the
formal agreement signed in July 2000, and replaces that agreement. It calls for,
among other things:
o Continuation of a compliance committee responsible for monitoring and
coordinating the Bank's adherence to the provisions of the Agreement
o Continued refinement of the process to request and review real estate
appraisals for adequacy and compliance
o Further development and implementation of a written program to improve
the Bank's loan portfolio management
o Further development of an effective, independent and ongoing loan
review system
o Implementation and adherence to the capital program previously
approved by the Board of Directors
o Implementation of an independent, risk-based, internal audit program
o Continuing review of the adequacy of the bank's allowance for loan and
lease losses
According to Jerry Francis, City Holding Company's President and CEO,
"the agreement does not affect the way the Bank conducts business with its
customers. The various provisions should not have any significant impact on our
results of operations over the next several months, even though the agreement
does require the Bank to continue to strengthen its lending policies and to
modify its methodology for the allowance for loans and lease losses." The
Company does not anticipate that the agreement will have any effect on fourth
quarter operating results.
City Holding Company is the parent company of City National Bank of
West Virginia and City Financial Corporation. City National Bank, in addition to
its banking divisions, operates CityInsurance Professionals, an insurance agency
offering a full range of insurance products and services.
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 forward-looking statements involve certain
risks and uncertainties, including a variety of factors that may cause the
actual results of City Holding to differ materially from the anticipated results
or other expectations expressed in such forward-looking statements. Factors that
might cause such a difference include, but are not limited to: (1) the formal
agreement with the Comptroller of the Currency may have effects on the Company's
business that are not currently anticipated, including effects on operating
results; (2) competitive pressures may increase significantly; (3) general
economic or business conditions, either nationally or in the states or regions
in which the companies do business may be less favorable than expected,
resulting in, among other things, a deterioration in credit quality or a reduced
demand for credit; (4) legislative or regulatory changes may adversely affect
the businesses in which the companies are engaged; (5) changes may occur in the
securities markets.