10-23-13 9:49 AM EDT | Email Article

City Holding Company, “the Company” (NASDAQ:CHCO), a $3.4 billion bank holding company headquartered in Charleston, today announced third quarter net income per diluted share of $0.88 and net income of $14.0 million. Compared to the third quarter of 2012, earnings per share increased 23.6% while net income increased 31.8%. For the third quarter of 2013, the Company achieved a return on assets of 1.65%, a return on tangible equity of 18.5%, a net interest margin of 4.47%, and an efficiency ratio of 52.1%.

The Company’s earnings increased in the third quarter of 2013 primarily due to 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. Net interest income increased $1.1 million from the second quarter of 2013 due to accelerated accretion income from acquired loans paying down and paying off more quickly than initially expected. Accretion income included $2.4 million related to certain credit impaired loans that paid off during the third quarter of 2013 unexpectedly. The Company’s net interest margin improved from 4.35% for the second quarter of 2013 to 4.47% for the third quarter of 2013 as a result of the additional accretion income.

City’s CEO Charles Hageboeck stated that “We continue to be very pleased with the results from our acquisitions of Virginia Savings Bank and Community Bank, especially with our success in resolving problem loans associated with these acquisitions. Primarily as a result of our efforts to effectively workout a number of these problem loans, our past due loans and other asset quality indicators continue to show improvement. While there is still work to be done in regards to credit-impaired loans, particularly those associated with Community Bank, we are pleased with our progress in resolving these acquired loans.”

“City’s net interest margin continues to be a source of strength, with a reported net interest margin of 4.47% for the third quarter of 2013. After adjustment for the positive benefits of accretion relating to our acquisitions, our net interest margin would have been 3.78% for the third quarter of 2013 compared to 3.80% for the third quarter of 2012. We are very pleased to report this increase in spite of the loss of over $50 million of high yielding trust preferred securities and the continuation of historic low interest rates. In addition, we anticipate solid commercial loan growth in the fourth quarter of 2013.”

“As a result of these successes and many others during the quarter, the Company’s quarterly earnings per diluted share of $0.88 represent a new record for City. In addition, our capital levels continue to increase with our tangible capital growing to 9.1% at September 30, 2013,” Hageboeck concluded.

Net Interest Income

The Company’s tax equivalent net interest income increased $1.1 million, or 3.4%, from $31.5 million during the second quarter of 2013 to $32.5 million during the third 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 4.35% for the second quarter of 2013 to 4.47% for the third quarter of 2013. Excluding the favorable impact of the accretion from the fair value adjustments ($5.0 million for the quarter ended September 30, 2013 and $3.5 million for the quarter ended June 30, 2013), the net interest margin would have been 3.78% for the quarter ended September 30, 2013 and 3.86% for the quarter ended June 30, 2013.

Credit Quality

The Company’s ratio of nonperforming assets to total loans and other real estate owned decreased from 1.33% at June 30, 2013 to 1.15% at September 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 $22.6 million, or 0.89% of total loans outstanding, at June 30, 2013 to $18.4 million, or 0.72% of total loans outstanding, at September 30, 2013. Acquired past due loans represent approximately 61% of total past due loans and have declined $0.9 million, or 7.8%, since June 30, 2013. In accordance with regulatory guidance issued in the third quarter of 2012, the Company classifies loans in which the borrower has filed Chapter 7 bankruptcy with the debt discharged by the bankruptcy court and the loan not 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 $24.8 million at September 30, 2013. More than 90% of these loans are current with interest and principal payments.

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 $1.2 million in the third quarter of 2013, compared to $1.0 for the comparable period in 2012 and $2.0 million for the second quarter of 2013. During the third quarter of 2013, the Company recovered $0.5 million from loans that had previously been charged-off, which had a positive impact on the allowance for loan losses at September 30, 2013. Changes in the amount of the allowance for loan losses and the related provision 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 $0.9 million to $14.5 million in the third quarter of 2013 as compared to $13.6 million in the third quarter of 2012. Service charges increased $0.4 million, or 6.2%, to $7.2 million while bankcard revenues increased $0.4 million, or 11.5%, to $3.5 million. These increases were primarily due to the acquisition of Community Bank.

Non-interest Expenses

Non-interest expenses increased $2.8 million, from $21.8 million in the third quarter of 2012 to $24.7 million in the third quarter of 2013. This increase was primarily related to higher salaries and employee benefits ($1.6 million) and repossessed asset losses ($0.5 million). Salaries and employee benefits increased due to the acquisition of Community Bank ($1.0 million) and higher incentive compensation accruals ($0.2 million). Repossessed asset losses were based on updated appraisals. The Company continually re-evaluates the estimated fair value of properties that have been repossessed by obtaining updated appraisals on at least an annual basis. In addition, occupancy and equipment expense increased $0.3 million and depreciation increased $0.3 million. These increases were also primarily attributable to the acquisition of Community Bank. Overall expense increases associated with the acquisitions of Virginia Savings and Community Bank have continued to be in line with the Company’s expectations.

Balance Sheet Trends

Loans increased $31.1 million (1.2%) from June 30, 2013 to $2.56 billion at September 30, 2013. Residential real estate loans increased $18.7 million (1.6%), commercial and industrial (“C&I”) loans increased $12.9 million (9.3%) and home equity loans increased $2.5 million (1.8%). These increases were partially offset by a decrease in consumer loans ($3.5 million, or 6.4%). The Company strategically decided to reduce consumer loans due to the acquisition of a portfolio of indirect auto loans with unsatisfactory credit quality metrics associated with Community Bank.

Total average depository balances declined $16.6 million, or 0.6%, from the quarter ended June 30, 2013 to the quarter ended September 30, 2013. Time deposits decreased $10.0 million and interest-bearing deposits decreased $7.7 million.

Income Tax Expense

The Company’s effective income tax rate for the third quarter of 2013 was 33.6% compared to 34.3% for the year ended December 31, 2012, and 34.3% for the quarter ended September 30, 2012. The effective rate is based upon the Company’s expected tax rate for the year ending December 31, 2013.

Capitalization and Liquidity

The Company’s loan to deposit ratio was 91.1% and the loan to asset ratio was 75.3% at September 30, 2013. The Company maintained investment securities totaling 10.2% of assets as of this date. The Company’s deposit mix is weighted heavily toward checking and saving accounts that fund 50.3% of assets at September 30, 2013. Time deposits fund 32.3% of assets at September 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 is strongly capitalized. The Company’s tangible equity ratio was 9.1% at September 30, 2013 compared to 9.4% at December 31, 2012 despite the acquisition of Community Bank which lowered this ratio to 8.61% at March 31, 2013. At September 30, 2013, City National Bank’s Leverage Ratio is 9.09%, its Tier I Capital ratio is 12.21%, and its Total Risk-Based Capital ratio is 13.06%. These regulatory capital ratios are significantly above levels required to be considered “well capitalized,” which is the highest possible regulatory designation.

On September 25, 2013, the Board approved a quarterly cash dividend of $0.37 cents per share payable October 31, 2013, to shareholders of record as of October 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 September 30, 2013 Form 10-Q. The Company will continue to evaluate the impact of any subsequent events on the preliminary September 30, 2013 results and will adjust the amounts if necessary.

CITY HOLDING COMPANY AND SUBSIDIARIES  
Financial Highlights
(Unaudited)
 
         
Three Months Ended September 30, Percent
2013 2012   Change
 
Earnings ($000s, except per share data):
Net Interest Income (FTE) $ 32,531 $ 25,060 29.81 %
Net Income available to common shareholders 13,975 10,607 31.75 %
Earnings per Basic Share 0.89 0.71 24.37 %
Earnings per Diluted Share 0.88 0.71 23.63 %
         
 
Key Ratios (percent):
Return on Average Assets 1.65 % 1.47 % 12.22 %
Return on Average Tangible Equity 18.53 % 16.20 % 14.38 %
Net Interest Margin 4.47 % 3.95 % 13.13 %
Efficiency Ratio 52.09 % 56.40 % (7.64 )%
Average Shareholders' Equity to Average Assets 11.14 % 11.32 % (1.65 )%
 
Consolidated Risk Based Capital Ratios (a):
Tier I 12.66 % 12.89 % (1.78 )%
Total 13.52 % 13.79 % (1.96 )%
 
Tangible Equity to Tangible Assets 9.08 % 9.29 % (2.18 )%
         
 
Common Stock Data:
Cash Dividends Declared per Share $ 0.37 $ 0.35 5.71 %
Book Value per Share 24.03 22.14 8.55 %
Tangible Book Value per Share 19.17 17.75 8.02 %
Market Value per Share:
High 46.13 36.43 26.63 %
Low 40.04 32.37 23.69 %
End of Period 43.24 35.84 20.65 %
 
Price/Earnings Ratio (b) 12.18 12.56 (2.99 )%
         
Nine Months Ended September 30, Percent
2013 2012   Change
 
Earnings ($000s, except per share data):
Net Interest Income (FTE) $ 93,740 $ 72,829 28.71 %
Net Income available to common shareholders 34,969 28,049 24.67 %
Earnings per Basic Share 2.23 1.89 17.76 %
Earnings per Diluted Share 2.21 1.88 17.15 %
         
 
Key Ratios (percent):
Return on Average Assets 1.38 % 1.33 % 3.95 %
Return on Average Tangible Equity 15.87 % 14.26 % 11.28 %
Net Interest Margin 4.33 % 3.95 % 9.78 %
Efficiency Ratio 56.71 % 58.59 % (3.21 )%
Average Shareholders' Equity to Average Assets 10.94 % 11.45 % (4.41 )%
         
 
Common Stock Data:
Cash Dividends Declared per Share $ 1.11 $ 1.05 5.71 %
Market Value per Share:
High 46.13 37.16 24.14 %
Low 36.07 30.96 16.51 %
 
Price/Earnings Ratio (b) 14.55 14.20 2.45 %
 
 
(a) September 30, 2013 risk-based capital ratios are estimated
(b) September 30, 2013 price/earnings ratio computed based on annualized third quarter 2013 earnings
CITY HOLDING COMPANY AND SUBSIDIARIES    
Financial Highlights    
(Unaudited)
 
                     
 
Book Value and Market Price Range per Share
Market Price
Book Value per Share Range per Share
March 31   June 30   September 30   December 31   Low High
 
2007 $ 17.62 $ 17.40 $ 17.68 $ 18.14 $ 31.16 $ 41.54
2008 18.92 18.72 17.61 17.58 29.08 42.88
2009 17.69 18.24 18.95 19.37 20.88 34.34
2010 19.71 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 24.03 36.07 46.13
                     
 
Earnings per Basic Share
 
Quarter Ended
March 31   June 30   September 30   December 31   Year-to-Date
 
2007 $ 0.76 $ 0.72 $ 0.76 $ 0.78 $ 3.02
2008 0.81 0.83 (0.16 ) 0.26 1.74
2009 0.69 0.64 0.66 0.70 2.69
2010 0.59 0.68 0.58 0.64 2.48
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 0.89 2.23
                     
 
Earnings per Diluted Share
 
Quarter Ended
March 31   June 30   September 30   December 31   Year-to-Date
 
2007 $ 0.76 $ 0.72 $ 0.76 $ 0.78 $ 3.01
2008 0.80 0.83 (0.16 ) 0.26 1.74
2009 0.69 0.64 0.66 0.70 2.68
2010 0.58 0.68 0.58 0.64 2.47
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 0.88 2.21
CITY HOLDING COMPANY AND SUBSIDIARIES  
Consolidated Statements of Income
(Unaudited) ($ in 000s, except per share data)
 
Three Months Ended September 30,
2013   2012
 

Interest Income

Interest and fees on loans $ 32,983 $ 24,633
Interest on investment securities:
Taxable 2,392 3,438
Tax-exempt 299 346
Interest on federal funds sold   -     15  
Total Interest Income 35,674 28,432
 
Interest Expense
Interest on deposits 3,068 3,312
Interest on short-term borrowings 82 79
Interest on long-term debt   154     166  
Total Interest Expense   3,304     3,557  
Net Interest Income 32,370 24,875
Provision for loan losses   1,154     975  
Net Interest Income After Provision for Loan Losses 31,216 23,900
 

Non-Interest Income

Total investment securities impairment losses - (272 )
Noncredit impairment losses recognized in other comprehensive income   -     -  
Net investment securities impairment losses - (272 )
Gains on sale of investment securities   -     730  
Net investment securities gains - 458
 
Service charges 7,169 6,751
Bankcard revenue 3,468 3,110
Insurance commissions 1,365 1,439
Trust and investment management fee income 939 912
Bank owned life insurance 805 738
Other income   734     671  
Total Non-Interest Income 14,480 14,079
 
Non-Interest Expense
Salaries and employee benefits 12,930 11,295
Occupancy and equipment 2,409 2,126
Depreciation 1,437 1,175
FDIC insurance expense 500 405
Advertising 712 674
Bankcard expenses 680 720
Postage, delivery, and statement mailings 541 529
Office supplies 416 407
Legal and professional fees 591 611
Telecommunications 721 433
Repossessed asset (gains)/losses, net of expenses 896 429
Merger related expenses (73 ) 157
Other expenses   2,905     2,885  
Total Non-Interest Expense   24,665     21,846  
Income Before Income Taxes 21,031 16,133
Income tax expense   7,056     5,526  
Net Income Available to Common Shareholders $ 13,975   $ 10,607  
 
 
Distributed earnings allocated to common shareholders $ 5,767 $ 5,150
Undistributed earnings allocated to common shareholders   8,081     5,373  
Net earnings allocated to common shareholders $ 13,848   $ 10,523  
 
Average common shares outstanding 15,608 14,751
Effect of dilutive securities:
Employee stock options and warrants   182     83  
Shares for diluted earnings per share   15,790     14,834  
 
Basic earnings per common share $ 0.89 $ 0.71
Diluted earnings per common share $ 0.88 $ 0.71
Dividends declared per common share $ 0.37 $ 0.35
 
Comprehensive Income $ 13,342 $ 12,719
CITY HOLDING COMPANY AND SUBSIDIARIES  
Consolidated Statements of Income
(Unaudited) ($ in 000s, except per share data)
 
Nine months ended September 30,
2013   2012
 
Interest Income
Interest and fees on loans $ 94,693 $ 70,843
Interest on investment securities:
Taxable 7,774 11,345
Tax-exempt 935 1,101
Interest on federal funds sold   22   38  
Total Interest Income 103,424 83,327
 
Interest Expense
Interest on deposits 9,490 10,363
Interest on short-term borrowings 232 229
Interest on long-term debt   464   499  
Total Interest Expense   10,186   11,091  
Net Interest Income 93,238 72,236
Provision for loan losses   4,903   4,600  
Net Interest Income After Provision for Loan Losses 88,335 67,636
 
Non-Interest Income
Total investment securities impairment losses - (878 )
Noncredit impairment losses recognized in other comprehensive income   -   302  
Net investment securities impairment losses - (576 )
Gains on sale of investment securities   93   1,530  
Net investment securities gains 93 954
 
Service charges 20,601 19,296
Bankcard revenue 10,117 9,305
Insurance commissions 4,563 4,782
Trust and investment management fee income 2,893 2,662
Bank owned life insurance 2,416 2,228
Other income   2,376   1,762  
Total Non-Interest Income 43,059 40,989
 
Non-Interest Expense
Salaries and employee benefits 38,519 32,207
Occupancy and equipment 7,381 6,038
Depreciation 4,289 3,371
FDIC insurance expense 1,352 1,184
Advertising 2,266 1,993
Bankcard expenses 2,173 2,035
Postage, delivery, and statement mailings 1,698 1,565
Office supplies 1,320 1,258
Legal and professional fees 1,561 1,349
Telecommunications 1,631 1,209
Repossessed asset losses, net of expenses 718 1,200
Merger related expenses 5,455 4,335
Other expenses   9,664   8,382  
Total Non-Interest Expense   78,027   66,126  
Income Before Income Taxes 53,367 42,499
Income tax expense   18,398   14,450  
Net Income Available to Common Shareholders $ 34,969 $ 28,049  
 
 
Distributed earnings allocated to common shareholders $ 17,302 $ 15,451
 
Undistributed earnings allocated to common shareholders   17,349   12,375  
 
Net earnings allocated to common shareholders $ 34,651 $ 27,826  
 
Average common shares outstanding 15,545 14,700
Effect of dilutive securities:
Employee stock options and warrants   168   83  
Shares for diluted earnings per share   15,713   14,783  
 
Basic earnings per common share $ 2.23 $ 1.89
Diluted earnings per common share $ 2.21 $ 1.88
Dividends declared per common share $ 1.11 $ 1.05
 
Comprehensive Income $ 30,218 $ 31,591
CITY HOLDING COMPANY AND SUBSIDIARIES  
Consolidated Statements of Changes in Stockholders' Equity
(Unaudited) ($ in 000s)
 
 
Three Months Ended
September 30, 2013   September 30, 2012
 
Balance at July 1 $ 368,891 $ 320,622
 
Net income 13,975 10,607
Other comprehensive income:
Change in unrealized loss on securities available-for-sale (633 ) 2,112
Cash dividends declared ($0.37/share) and ($0.35/share), respectively (5,820 ) (5,196 )
Issuance of stock award shares, net 260 214
Exercise of 44,455 stock options 1,369 -
Exercise of 2,000 stock options   -       56  
Balance at September 30 $ 378,042     $ 328,415  
 
 
 
Nine Months Ended
September 30, 2013   September 30, 2012
 
Balance at January 1 $ 333,274 $ 311,134
 
Net income 34,969 28,049
Other comprehensive income:
Change in unrealized gain (loss) on securities available-for-sale (4,751 ) 3,542
Cash dividends declared ($1.11/share) and ($1.05/share), respectively (17,686 ) (15,532 )
Issuance of stock award shares, net 962 870
Acquisition of Community Financial Corporation 28,508 -

Acquisition of Virginia Savings Bancorp

- 7,723
Exercise of 107,140 stock options 2,766 -
Exercise of 18,899 stock options - 544
Purchase of 237,535 common shares of treasury   -       (7,915 )
Balance at September 30 $ 378,042     $ 328,415  
CITY HOLDING COMPANY AND SUBSIDIARIES      
Condensed Consolidated Quarterly Statements of Income
(Unaudited) ($ in 000s, except per share data)
 
Quarter Ended
September 30 June 30 March 31 December 31 September 30
2013 2013   2013   2012   2012
 
Interest income

 

$ 35,674 $ 34,724 $ 33,026 $ 28,884 $ 28,432
Taxable equivalent adjustment

 

  161     167       174       183     185  
Interest income (FTE) 35,835 34,891 33,200 29,067 28,617
Interest expense

 

  3,304     3,427       3,455       3,360       3,557  
Net interest income

 

32,531 31,464 29,745 25,707 25,060
Provision for loan losses   1,154     2,011       1,738       1,775       975  
Net interest income after provision
for loan losses 31,377 29,453 28,007 23,932 24,085
 
Noninterest income 14,480 14,252 14,326 14,266 14,079
Noninterest expense   24,665     23,959       29,403       21,273       21,846  
Income before income taxes 21,192 19,746 12,930 16,925 16,318
Income tax expense 7,056 6,573 4,769 5,848 5,526
Taxable equivalent adjustment   161     167       174       183       185  
Net income available to common shareholders $ 13,975   $ 13,006     $ 7,987     $ 10,894     $ 10,607  
 
                   
 
Distributed earnings allocated to common shareholders $ 5,767 $ 5,751 $ 5,747 $ 5,151 $ 5,150
Undistributed earnings allocated to common shareholders   8,081     7,139       2,175       5,658       5,373  
Net earnings allocated to common shareholders $ 13,848   $ 12,890     $ 7,922     $ 10,809     $ 10,523  
 
Average common shares outstanding 15,608 15,582 15,473 14,755 14,751
 
Effect of dilutive securities:
Employee stock options   182     170       154       82       83  
 
Shares for diluted earnings per share   15,790     15,752       15,627       14,837       14,834  
 
Basic earnings per common share $ 0.89 $ 0.83 $ 0.51 $ 0.73 $ 0.71
Diluted earnings per common share 0.88 0.82 0.51 0.73 0.71
 
Cash dividends declared per share 0.37 0.37 0.37 0.35 0.35
                   
 
Net Interest Margin 4.47 % 4.35 % 4.18 % 3.99 % 3.95 %
 

Interest Income from Accretion Related to Fair Value

Adjustments Recorded as a Result of Acquisition

$ 5,046 $ 3,517 $ 2,181 $ 1,658 $ 936
CITY HOLDING COMPANY AND SUBSIDIARIES        
Non-Interest Income and Non-Interest Expense
(Unaudited) ($ in 000s)
 
Quarter Ended
September 30 June 30 March 31 December 31 September 30
2013   2013   2013   2012   2012
 
Non-Interest Income:
Service charges $ 7,169 $ 6,897 $ 6,535 $ 7,113 $ 6,750
Bankcard revenue 3,468 3,450 3,199 3,101 3,111
Insurance commissions 1,365 1,358 1,840 1,289 1,439
Trust and investment management fee income 939 964 990 1,112 912
Bank owned life insurance 805 799 812 754 738
Other income   734       775       866       897     671  
Subtotal 14,480 14,243 14,242 14,266 13,621
Total investment securities impairment losses - - - - (272 )
Noncredit impairment losses recognized in other
comprehensive income   -       -       -       -     -  
Net investment securities impairment losses - - - - (272 )
Gain (loss) on sale of investment securities   -       9       84       -     730  
Total Non-Interest Income $ 14,480     $ 14,252     $ 14,326     $ 14,266   $ 14,079  
 
Non-Interest Expense:
Salaries and employee benefits $ 12,930 $ 12,640 $ 12,949 $ 11,301 $ 11,295
Occupancy and equipment 2,409 2,500 2,472 2,147 2,126
Depreciation 1,437 1,453 1,399 1,234 1,175
FDIC insurance expense 500 341 511 407 405
Advertising 712 819 735 596 674
Bankcard expenses 680 766 727 628 720
Postage, delivery and statement mailings 541 552 605 514 529
Office supplies 416 463 441 412 407
Legal and professional fees 591 535 435 437 611
Telecommunications 721 465 445 405 433
Repossessed asset (gains) losses, net of expenses 896 (23 ) (155 ) 146 429
Merger related expenses (73 ) 65 5,540 373 157
Other expenses   2,905       3,383       3,299       2,673     2,885  
Total Non-Interest Expense $ 24,665     $ 23,959     $ 29,403     $ 21,273   $ 21,846  
 
 
                   
 
Employees (Full Time Equivalent) 924 931 932 843 836
Branch Locations 83 83 83 73 73
CITY HOLDING COMPANY AND SUBSIDIARIES  
Consolidated Balance Sheets
($ in 000s)
September 30 December 31
2013   2012
(Unaudited)

Assets

Cash and due from banks $ 164,915 $ 58,718
Interest-bearing deposits in depository institutions 14,706 16,276
Federal funds sold   -       10,000  
Cash and cash equivalents 179,621 84,994
 
Investment securities available-for-sale, at fair value 329,247 377,122
Investment securities held-to-maturity, at amortized cost 3,994 13,454
Other securities   13,344       11,463  
Total investment securities 346,585 402,039
 
Gross loans 2,558,456 2,146,369
Allowance for loan losses   (20,606 )     (18,809 )
Net loans 2,537,850 2,127,560
 
Bank owned life insurance 91,249 81,901
Premises and equipment, net 82,194 72,728
Accrued interest receivable 8,108 6,692
Net deferred tax assets 45,183 32,737
Intangible assets 76,420 65,057
Other assets   29,477       43,758  
Total Assets $ 3,396,687     $ 2,917,466  
 
Liabilities
Deposits:
Noninterest-bearing $ 498,245 $ 429,969
Interest-bearing:
Demand deposits 604,047 553,132
Savings deposits 606,513 506,869
Time deposits   1,098,730       919,346  
Total deposits 2,807,535 2,409,316
Short-term borrowings
Customer repurchase agreements 150,943 114,646
Long-term debt 16,495 16,495
Other liabilities   43,672       43,735  
Total Liabilities 3,018,645 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 September 30, 2013 and December 31, 2012
less 2,769,192 and 3,665,999 shares in treasury, respectively 46,249 46,249
Capital surplus 107,274 103,524
Retained earnings 326,553 309,270
Cost of common stock in treasury (95,861 ) (124,347 )
Accumulated other comprehensive loss:
Unrealized gain on securities available-for-sale (1,178 ) 3,573
Underfunded pension liability   (4,995 )     (4,995 )
Total Accumulated Other Comprehensive Loss   (6,173 )     (1,422 )
Total Stockholders' Equity   378,042       333,274  
Total Liabilities and Stockholders' Equity $ 3,396,687     $ 2,917,466  
CITY HOLDING COMPANY AND SUBSIDIARIES      
Investment Portfolio
(Unaudited) ($ in 000s)
 
Original Cost

Credit-Related

Net Investment

Impairment

Losses through

September 30,

2013

Unrealized

Gains (Losses)

Carrying Value
 
US Government Agencies $ 2,510 $ - $ 61 $ 2,571
Mortgage Backed Securities 258,271 - (1,232 ) 257,039
Municipal Bonds 41,110 - 740 41,850
Pooled Bank Trust Preferreds 24,360 (20,171 ) (1,853 ) 2,336
Single Issuer Bank Trust Preferreds,
Subdebt of Financial Institutions, and
Bank Holding Company Preferred Stocks 25,137 (1,015 ) (1,140 ) 22,982
Money Markets and Mutual Funds 1,525 - (18 ) 1,507
Federal Reserve Bank and FHLB stock 13,344 - - 13,344
Community Bank Equity Positions   8,194   (4,813 )   1,575     4,956
Total Investments $ 374,451 $ (25,999 ) $ (1,867 ) $ 346,585
CITY HOLDING COMPANY AND SUBSIDIARIES    
Loan Portfolio
(Unaudited) ($ in 000s)
 
September 30 June 30 March 31 December 31 September 30
2013 2013   2013 2012   2012
 
Residential real estate (1) $ 1,188,841 $ 1,170,123 $ 1,149,411 $ 1,031,435 $ 1,008,305
Home equity - junior liens 140,887 138,367 138,333 143,110 143,058
Commercial and industrial 151,185 138,299 149,677 108,739 105,027
Commercial real estate (2) 1,022,278 1,023,311 1,001,453 821,970 787,887
Consumer 50,757 54,242 55,274 36,564 38,285
DDA overdrafts   4,508     3,103     2,876     4,551     2,670
Gross Loans $ 2,558,456   $ 2,527,445   $ 2,497,024   $ 2,146,369   $ 2,085,232
 
Construction loans included in:
(1) - Residential real estate loans $ 14,808 $ 15,889 $ 16,884 $ 15,408 $ 12,787
(2) - Commercial real estate loans $ 17,391 $ 24,726 $ 26,163 $ 15,352 $ 17,072
 
 
 
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

3Q 2013

632 121 4,119 174 5,046
Remainder 2013 268 120 1,111 131 1,630
2014 777 537 3,277 294 4,885
2015 541 518 1,848 160 3,067
Thereafter 1,839 497 8,514 47 10,897
 
a - 3Q 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 September 30,

 

2013 2012
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
 

Assets:

Loan portfolio (1):
Residential real estate (2) $ 1,315,848 $ 13,931 4.20 % $ 1,140,910 $ 13,000 4.53 %
Commercial, financial, and agriculture (3) 1,157,285 16,910 5.80 % 880,243 10,069 4.55 %
Installment loans to individuals (4), (5) 63,409 1,538 9.62 % 49,111 782 6.33 %
Previously securitized loans (6) ***   604 *** ***   781 ***
Total loans 2,536,542 32,983 5.16 % 2,070,264 24,632 4.73 %
Securities:
Taxable 312,786 2,392 3.03 % 372,877 3,438 3.67 %
Tax-exempt (7)   29,396     460 6.21 %   36,761     532 5.76 %
Total securities 342,182 2,852 3.31 % 409,638 3,970 3.86 %
Deposits in depository institutions 7,798 - - 7,063 - -
Federal funds sold   -     - 0.00 %   35,487     15 0.17 %
Total interest-earning assets 2,886,522 35,835 4.93 % 2,522,452 28,617 4.51 %
Cash and due from banks 191,116 80,335
Bank premises and equipment 82,708 72,640
Other assets 251,353 232,793
Less: Allowance for loan losses   (20,519 )       (19,889 )    
Total assets $ 3,391,180       $ 2,888,331      
 
Liabilities:
Interest-bearing demand deposits 603,592 179 0.12 % 539,189 180 0.13 %
Savings deposits 602,827 216 0.14 % 497,208 204 0.16 %
Time deposits (8) 1,106,352 2,673 0.96 % 931,369 2,928 1.25 %
Short-term borrowings 127,263 82 0.26 % 122,955 79 0.26 %
Long-term debt   16,495     154 3.70 %   16,495     166 4.00 %
Total interest-bearing liabilities 2,456,529 3,304 0.53 % 2,107,216 3,557 0.67 %
Noninterest-bearing demand deposits 521,114 418,584
Other liabilities 35,854 35,461
Stockholders' equity   377,683         327,070      
Total liabilities and
stockholders' equity $ 3,391,180       $ 2,888,331      
Net interest income   $ 32,531     $ 25,060  
Net yield on earning assets     4.47 %     3.95 %
 

(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) - For 2013, interest income on residential real estate loans includes $0.3 million and $0.3 million of accretion related to the fair value adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively. For 2012, interest income on residential real estate loans includes $0.6 million of accretion related to the fair value adjustments due to the acquisition of Virginia Savings Bancorp, Inc.
(3) - For 2013, interest income on commercial, financial, and agriculture loans includes $0.3 million and $3.5 million of accretion related to the fair value adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively. For 2012, interest income on commercial, financial and agricultural loans includes $0.3 million of accretion related to the fair value adjustments due to the acquisition of Virginia Savings Bancorp, Inc.
 
(4) - For 2013, interest income on installment loans to individuals includes $0.1 million and $0.4 million of accretion related to the fair value adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively. For 2012, interest income on installment loans to individuals includes less than $0.1 million of accretion related to the fair value adjustments due to the acquisition of Virginia Savings Bancorp, Inc.
(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) - For 2013, interest expense on time deposits includes $0.1 million and $0.2 million in accretion of the fair value adjustments related to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively. For 2012, interest expense on time deposits includes $0.1 million in accretion of the fair value adjustments related to the acquisition of Virginia Savings Bancorp, Inc.
CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited) ($ in 000s)
 

 

Nine Months Ended September 30,

2013 2012
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
 
Assets:
Loan portfolio (1):
Residential real estate (2) $ 1,294,671 $ 41,215 4.26% $ 1,101,805 $ 36,731 4.45%
Commercial, financial, and agriculture (3) 1,145,286 46,755 5.46% 873,295 29,395 4.50%
Installment loans to individuals (4), (5) 65,557 4,755 9.70% 45,756 2,303 6.72%
Previously securitized loans (6) *** 1,968 *** *** 2,414 ***
Total loans 2,505,514 94,693 5.05% 2,020,856 70,843 4.68%
Securities:
Taxable 329,918 7,774 3.15% 367,800 11,345 4.12%
Tax-exempt (7) 31,378 1,437 6.12% 39,176 1,694 5.78%
Total securities 361,296 9,211 3.41% 406,976 13,039 4.28%
Deposits in depository institutions 8,090 - - 7,200 - -
Federal funds sold 17,450 22 0.17% 29,712 38 0.17%
Total interest-earning assets 2,892,350 103,926 4.80% 2,464,744 83,920 4.55%
Cash and due from banks 159,942 75,576
Bank premises and equipment 81,976 68,788
Other assets 257,384 221,661
Less: Allowance for loan losses (20,030)     (19,599)    
Total assets $ 3,371,622     $ 2,811,170    
 
Liabilities:
Interest-bearing demand deposits 606,076 537 0.12% 532,231 531 0.13%
Savings deposits 596,895 645 0.14% 473,626 576 0.16%
Time deposits (8) 1,109,895 8,308 1.00% 905,561 9,256 1.37%
Short-term borrowings 121,677 232 0.25% 119,454 229 0.26%
Long-term debt 16,495 464 3.76% 16,495 499 4.04%
Total interest-bearing liabilities 2,451,038 10,186 0.56% 2,047,367 11,091 0.72%
Noninterest-bearing demand deposits 512,993 408,435
Other liabilities 38,698 33,612
Stockholders' equity 368,893     321,756    
Total liabilities and
stockholders' equity $ 3,371,622     $ 2,811,170    
Net interest income   $ 93,740     $ 72,829  
Net yield on earning assets     4.33%     3.95%
 
(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) - For 2013, interest income on residential real estate loans includes $0.8 million and $0.5 million of accretion related to the fair value adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively. For 2012, interest income on residential real estate loans includes $0.6 million of accretion related to the fair value adjustments due to the acquisition of Virginia Savings Bancorp, Inc.
(3) - For 2013, interest income on commercial, financial, and agriculture loans includes $2.0 million and $5.4 million of accretion related to the fair value adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively. For 2012, interest income on commercial, financial and agricultural loans includes $0.3 million of accretion related to the fair value adjustments due to the acquisition of Virginia Savings Bancorp, Inc.
(4) Includes the Company’s consumer and DDA overdrafts loan categories.
 
(5) - For 2013, interest income on installment loans to individuals includes $0.1 million and $1.0 million of accretion related to the fair value adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively. For 2012, interest income on installment loans to individuals includes less than $0.1 million of accretion related to the fair value adjustments due to the acquisition of Virginia Savings Bancorp, Inc.
(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) - For 2013, interest expense on time deposits includes $0.4 million and $0.5 million in accretion of the fair value adjustments related to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively. For 2012, interest expense on time deposits includes $0.1 million in accretion of the fair value adjustments related to the acquisition of Virginia Savings Bancorp, Inc.
CITY HOLDING COMPANY AND SUBSIDIARIES  
Analysis of Risk-Based Capital
(Unaudited) ($ in 000s)
 
September 30 June 30 March 31 December 31 September 30
2013 (a) 2013 2013 2012   2012
 
Tier I Capital:
Stockholders' equity $ 378,042 $ 368,891 $ 365,848 $ 333,274 $ 328,415
Goodwill and other intangibles (76,233 ) (74,455 ) (75,563 ) (64,866 ) (64,912 )
Accumulated other comprehensive loss 6,173 5,540 1,332 1,422 365
Qualifying trust preferred stock 16,000 16,000 16,000 16,000 16,000
Unrealized loss on AFS securities (18 ) (11 ) - - -
Excess deferred tax assets   (12,495 )   (13,572 )   (17,737 )   (6,577 )     (7,472 )
Total tier I capital $ 311,470   $ 302,394   $ 289,880   $ 279,254     $ 272,397  
             
 
Total Risk-Based Capital:
Tier I capital $ 311,470 $ 302,394 $ 289,880 $ 279,254 $ 272,397
Qualifying allowance for loan losses 20,606 20,069 19,721 18,809 18,986
Unrealized gain on securities   722     686     696     -       -  
Total risk-based capital $ 332,798   $ 323,149   $ 310,297   $ 298,063     $ 291,383  
 
Net risk-weighted assets $ 2,460,895 $ 2,450,010 $ 2,436,022 $ 2,152,622 $ 2,112,581
             
 
Ratios:
Average stockholders' equity to average assets 11.14 % 10.94 % 10.74 % 11.49 % 11.32 %
Tangible capital ratio 9.08 % 8.90 % 8.61 % 9.40 % 9.29 %
Risk-based capital ratios:
Tier I capital 12.66 % 12.34 % 11.90 % 12.97 % 12.89 %
Total risk-based capital 13.52 % 13.19 % 12.74 % 13.85 % 13.79 %
Leverage capital 9.43 % 9.12 % 8.98 % 9.82 % 9.67 %
 
 
(a) September 30, 2013 risk-based capital ratios are estimated
 
             
 
 
CITY HOLDING COMPANY AND SUBSIDIARIES
Intangibles
(Unaudited) ($ in 000s)
 
As of and for the Quarter Ended
September 30 June 30 March 31 December 31 September 30

2013

2013

2013

2012   2012
 
Intangibles, net $ 76,420 $ 74,642 $ 75,750 $ 65,057 $ 65,103
Intangibles amortization expense 260 260 260 135 135
CITY HOLDING COMPANY AND SUBSIDIARIES
Summary of Loan Loss Experience
(Unaudited) ($ in 000s)
 
Quarter Ended
September 30 June 30 March 31 December 31 September 30
2013 2013 2013 2012 2012
 
Balance at beginning of period $ 20,069 $ 19,721 $ 18,809 $ 18,986 $ 19,452
 
Charge-offs:
Commercial and industrial 380 330 62 100 9
Commercial real estate 181 419 203 1,744 845
Residential real estate 487 520 591 284 252
Home equity 8 154 116 366 133
Consumer 102 221 3 42 53
DDA overdrafts   415     348     339     394     418  
Total charge-offs 1,573 1,992 1,314 2,930 1,710
 
Recoveries:
Commercial and industrial 30 20 1 19 10
Commercial real estate 635 16 18 190 3
Residential real estate 69 20 48 7 8
Home equity - - - 6 1
Consumer 25 70 147 45 26
DDA overdrafts   197     203     274     711     221  
Total recoveries 956 329 488 978 269
         
Net charge-offs 617 1,663 826 1,952 1,441
Provision for loan losses 1,241 1,834 1,738 1,775 975
(Recovery of) provision for acquired loans   (87 )   177     -     -     -  
Balance at end of period $ 20,606   $ 20,069   $ 19,721   $ 18,809   $ 18,986  
 
Loans outstanding $ 2,558,456   $ 2,527,445   $ 2,497,023   $ 2,146,369   $ 2,085,232  
Average loans outstanding   2,536,542     2,513,883     2,465,336     2,104,483     2,070,264  
Allowance as a percent of loans outstanding   0.81 %   0.79 %   0.79 %   0.88 %   0.91 %
Allowance as a percent of non-performing loans   93.86 %   87.14 %   82.18 %   96.59 %   82.61 %
Net charge-offs (annualized) as a
percent of average loans outstanding   0.10 %   0.26 %   0.13 %   0.37 %   0.28 %
Net charge-offs, excluding overdraft deposit

accounts, (annualized) as a percent of average

loans outstanding

  0.06 %   0.24 %   0.12 %   0.43 %   0.24 %
CITY HOLDING COMPANY AND SUBSIDIARIES        
Summary of Non-Performing Assets
(Unaudited) ($ in 000s)
 
September 30 June 30 March 31 December 31 September 30
2013   2013   2013   2012   2012
 
Nonaccrual loans $ 21,535 $ 21,847 $ 23,198 $ 19,194 $ 22,586
Accruing loans past due 90 days or more   418       1,185       799       280       397  
Total non-performing loans 21,953 23,032 23,997 19,474 22,983
Other real estate owned   7,518       10,837       10,508       8,162       9,017  
Total non-performing assets $ 29,471     $ 33,869     $ 34,505     $ 27,636     $ 32,000  
 
Non-performing assets as a percent of loans and
other real estate owned 1.15 % 1.33 % 1.38 % 1.28 % 1.53 %
                   
 
 
CITY HOLDING COMPANY AND SUBSIDIARIES
Summary of Total Past Due Loans
(Unaudited) ($ in 000s)
Originated
September 30 June 30 March 31 December 31 September 30
2013   2013   2013   2012   2012
 
Residential real estate $ 5,414 $ 6,525 $ 5,889 $ 5,748 $ 4,909
Home equity - junior liens 732 655 858 2,893 2,643
Commercial and industrial 5 234 303 496 25
Commercial real estate 612 2,556 1,503 633 1,271
Consumer 96 103 83 121 136
DDA overdrafts   280       290       337       281       319  
Total past due loans $ 7,139     $ 10,363     $ 8,973     $ 10,172     $ 9,303  
 
Acquired
September 30 June 30 March 31 December 31 September 30
2013   2013   2013   2012   2012
 
Residential real estate $ 1,032 $ 951 $ 2,037 $ - $ -
Home equity - junior liens 23 - - - -
Commercial and industrial 2,166 2,534 7,783 1,004 -
Commercial real estate 7,324 8,019 5,770 1,793 -
Consumer 703 693 864 - -
DDA overdrafts   -       -       -       -       -  
Total past due loans $ 11,248     $ 12,197     $ 16,454     $ 2,797     $ -  
 
Total
September 30 June 30 March 31 December 31 September 30
2013   2013   2013   2012   2012
 
Residential real estate $ 6,446 $ 7,476 $ 7,926 $ 5,748 $ 4,909
Home equity - junior liens 755 655 858 2,893 2,643
Commercial and industrial 2,171 2,768 8,086 1,500 25
Commercial real estate 7,936 10,575 7,273 2,426 1,271
Consumer 799 796 947 121 136
DDA overdrafts   280       290       337       281       319  
Total past due loans $ 18,387     $ 22,560     $ 25,427     $ 12,969     $ 9,303  
 
Total past due loans as a percent of loans outstanding 0.72 % 0.89 % 1.02 % 0.60 % 0.45 %
                   
 
 
CITY HOLDING COMPANY AND SUBSIDIARIES
Summary of Troubled Debt Restructurings
(Unaudited) ($ in 000s)
 
September 30 June 30 March 31 December 31 September 30
2013   2013   2013   2012   2012
 
Residential real estate $ 20,380 $ 21,480 $ 20,136 $ 18,988 $ 17,979
Home equity - junior liens 2,772 2,963 3,025 3,743 3,126
Commercial and industrial 91 95 101 101 -
Commercial real estate 1,567 1,791 1,805 734 227
Consumer   -      

-

      142       142       144  
Total $ 24,810     $ 26,329     $ 25,209     $ 23,708     $ 21,476  
 
 
At September 30, 2012, the Company reclassified $21.1 million of loans as TDRs in accordance with recent regulatory guidance. The regulatory guidance requires loans to be accounted for as collateral-dependent loans when borrowers have filed Chapter 7 bankruptcy, the debt has been discharged by the bankruptcy court and the borrower has not reaffirmed the debt.
CITY HOLDING COMPANY AND SUBSIDIARIES        
Summary of Commercial Loans by Credit Quality Indicator
(Unaudited) ($ in 000s)
 
Commercial and Industrial
September 30 June 30 March 31 December 31 September 30
2013   2013   2013   2012   2012
 
Pass $ 140,999 $ 123,406 $ 136,926 $ 105,690 $ 101,798
Special mention 693 3,252 4,866 878 1,066
Substandard 9,057 11,202 7,330 2,171 2,163
Doubtful   436     439     555     -     -
Total $ 151,185 $ 138,299 $ 149,677 $ 108,739   $ 105,027
 
Commercial Real Estate
September 30 June 30 March 31 December 31 September 30
2013   2013   2013   2012   2012
 
Pass $ 939,942 $ 933,365 $ 911,280 $ 771,617 $ 734,134
Special mention 23,123 30,769 34,554 15,015 15,831
Substandard 58,720 58,661 53,295 35,338 37,922
Doubtful   493     516     2,324     -     -
Total $ 1,022,278   $ 1,023,311   $ 1,001,453   $ 821,970   $ 787,887
 
Total
September 30 June 30 March 31 December 31 September 30
2013   2013   2013   2012   2012
 
Pass $ 1,080,941 $ 1,056,771 $ 1,048,206 $ 877,307 $ 835,932
Special mention 23,816 34,021 39,420 15,893 16,897
Substandard 67,777 69,863 60,625 37,509 40,085
Doubtful   929     955     2,879     -     -
Total $ 1,173,463   $ 1,161,610   $ 1,151,130   $ 930,709   $ 892,914
 
                   
 
 
CITY HOLDING COMPANY AND SUBSIDIARIES
Summary of Non-Commercial Loans by Payment Performance
(Unaudited) ($ in 000s)
Performing
September 30 June 30 March 31 December 31 September 30
2013   2013   2013   2012   2012
 
Residential real estate $ 1,185,616 $ 1,167,003 $ 1,144,952 $ 1,029,142 $ 1,005,522
Home equity - junior liens 140,769 138,339 138,275 141,961 141,950
Consumer 50,710 54,210 55,201 36,564 38,274
DDA overdrafts   4,506     3,101     2,874     4,548     2,666
Total past due loans $ 1,381,601   $ 1,362,653   $ 1,341,302   $ 1,212,215   $ 1,188,412
 
Non-Performing
September 30 June 30 March 31 December 31 September 30
2013   2013   2013   2012   2012
 
Residential real estate $ 3,225 $ 3,120 $ 4,459 $ 2,293 $ 2,783
Home equity - junior liens 118 28 58 1,149 1,108
Consumer 47 32 73 - 11
DDA overdrafts   2     2     1     3     4
Total past due loans $ 3,392   $ 3,182   $ 4,591   $ 3,445   $ 3,906
 
Total
September 30 June 30 March 31 December 31 September 30
2013   2013   2013   2012   2012
 
Residential real estate $ 1,188,841 $ 1,170,123 $ 1,149,411 $ 1,031,435 $ 1,008,305
Home equity - junior liens 140,887 138,367 138,333 143,110 143,058
Consumer 50,757 54,242 55,274 36,564 38,285
DDA overdrafts   4,508     3,103     2,875     4,551     2,670
Total past due loans $ 1,384,993   $ 1,365,835   $ 1,345,893   $ 1,215,660   $ 1,192,318

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Morningstar - - City Holding Company Announces Record Quarterly Earnings
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