Exhibit 99.1, Third Quarter Earnings Release

Charles Hageboeck, Chief Executive Officer and President, stated, “City Holding Company is one of the best performing banks in the industry based on profitability, the net interest margin, efficiency ratio and asset quality. The Company increased its’ earnings per share in the third quarter of 2006 as compared to the third quarter of 2005 despite the impact of a $0.6 million increase in the provision for loan losses in the third quarter of 2006 and a decrease of over $700,000 in interest income associated with previously securitized loans (whose balances decreased 47%). The sale of the credit card portfolio allowed the Company to immediately create shareholder value and continue to focus on our strategic businesses which leverage our ability to build strong customer relationships across all of our product lines. The realized securities losses reflect the implementation of a strategy to reposition the balance sheet by selling approximately $55 million of investment securities that were replaced with higher yielding investment securities in response to the decline in interest income as a result of the sale of the credit card portfolio. As compared to the prior year quarter ended September 30, 2005, profitability as measured by our return on assets was higher and our efficiency ratio was better. Loans and deposits both grew meaningfully in an economic environment that has been challenging for banks. Asset quality, as measured by non-performing assets,

Interest income on earning assets increased by $3.8 million, driven primarily by an increase in interest income on loans of $3.7 million despite a decrease of $0.7 million in interest income from previously securitized loans from the third quarter of 2005. The decrease in interest income from previously securitized loans was related to the continued decline in the average balance of these loans from $38.4 million for the quarter ended September 30, 2005, to $20.3 million for the quarter ended September 30, 2006. However, this reduction in average outstanding balances was partially mitigated as the yield on these loans rose from an average of 30.1% for the third quarter of 2005 to 43.2% for the third quarter of 2006 (see Previously Securitized Loans section for further discussion). The yield for the immediately preceding quarter was 41.9%. Interest income on all other loans (commercial, residential, home equity, and consumer) increased by $4.4 million as the average yield on these loans increased by 80 basis points and the average balance on outstanding loans increased by $68.7 million (excluding previously securitized loans). Additionally, interest income from loans was impacted by the sale of the Company’s credit card portfolio which reduced interest income by $0.4 million from the third quarter of 2005.

At September 30, 2006, the Allowance for Loan Losses (“ALLL”) was $15.6 million or 0.92% of total loans outstanding and 408% of non-performing loans compared to $17.8 million or 1.09% of loans outstanding and 487% of non-performing loans at September 30, 2005. The ratio of the allowance to loans outstanding and non-performing loans was improved by the sale of the Company’s credit card portfolio in the third quarter of 2006 impacted. As a result of the Company’s quarterly analysis of the adequacy of the ALLL, the Company recorded a provision for loan losses of $1.2 million in the third quarter of 2006 versus $0.6 million in the third quarter of 2005. The provision for loan losses also increased by $0.5 million from $0.7 million in the second quarter of 2006 primarily due to recent trends in the Company’s commercial portfolio and recent credit trends in the national housing market. Changes in the amount of the provision and related allowance are based upon City’s detailed methodology and are directionally consistent with changes in the quality of the Company’s loan portfolio.

The Company had net charge-offs of $0.9 million for the third quarter of 2006, with depository accounts representing $0.6 million of this total. While charge-offs on depository accounts are appropriately taken against the ALLL, the revenue associated with depository accounts is reflected in service charges and has been steadily growing as the core base of checking accounts has grown. Net charge-offs on commercial and real estate loans were $0.2 million and $0.1 million, respectively, while installment loans experienced no net charge-offs for the quarter ended September 30, 2006. Over the last 5 quarters, the Company has experienced annualized net charge-offs for commercial loans, commercial real estate loans, consumer loans, home equity loans, and residential mortgages of 0.08%; 0.07%; 0.13%; 0.28%; and 0.11%, respectively.

At September 30, 2006, non-performing assets as a percentage of loans and other real estate owned (OREO) were 0.25%. The ratio of non-performing assets as a percentage of loans and OREO over the last 5 quarters has ranged from 0.23% to 0.27%. Average non-performing assets as a percentage of loans and other real estate owned for the Company’s peer group (bank holding companies with total assets between $1 billion and $5 billion) for the most recently reported quarter ended June 30, 2006, were 0.67%. A factor that has enabled the Company to maintain its’ allowance at lower levels than peers is the composition of the Company’s loan portfolio, which is weighted more heavily toward residential mortgage loans and less toward non-real estate secured commercial loans than its’ peers. Additionally, the Company sold its credit card portfolio of approximately $11.5 million to Elan Financial Services (“Elan”), a wholly owned subsidiary of U.S. Bancorp, during the third quarter of 2006. As a result, the Company’s ALLL as a percentage of loans outstanding is 0.92% at September 30, 2006, compared to the average of the Company’s peer group of 1.20% for the most recently reported quarter. Excluding the amount attributable to the credit card portfolio, the ALLL was 0.96% at December 31, 2005. 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 for loan losses that is directionally consistent with changes in asset quality and loss experience.

Net of investment securities losses and the gain from the sale of the Company’s retail credit card portfolio, non-interest income increased $0.3 million, or 2.0%, to $13.3 million in the third quarter of 2006 as compared to $13.0 million in the third quarter of 2005. The largest source of non-interest income is service charges from depository accounts, which increased $0.4 million, or 3.8%, from $10.4 million during the third quarter of 2005 to $10.8 million during the third quarter of 2006. This increase is due to an increase in the utilization of services by the Company’s expanding customer base. On a year-to-date basis, non-interest income increased $2.6 million, or 7.1%, exclusive of securities gains/losses and the gain from the retail credit card portfolio sale, primarily due to increases in service charges revenues.

As compared to December 31, 2005, loans have increased $84.4 million at September 30, 2006 with increases in commercial loans of $84.3 million, home equity loans of $16.9 million and residential real estate loans of $12.3 million. These increases were partially offset by decreases in previously securitized loans of $11.7 million (see discussion below) and installment loans of $17.4 million, due primarily to the sale of the Company’s retail credit card portfolio. While commercial loan growth has been strong for the first nine months of 2006, the Company expects declines during the fourth quarter due to the expected loss of its largest commercial relationship. Between 2002 and 2006 the Company’s outstanding balances with this customer increased from $4 million to over $30 million as the customer’s business has grown. Due to the growing demands of the customer’s business, and the Company’s legal lending limitations, the Company has determined that it can no longer satisfactorily meet all of the customer’s needs. It should be noted that the Company has no other customers with outstanding loan balances exceeding $15 million. The Company’s credit risk management system is designed to serve customers in our target market while maintaining asset quality

The yield on the previously securitized loans was 43.2% for the quarter ended September 30, 2006, compared to 41.9% for the quarter ended June 30, 2006, and 30.1% for the quarter ended September 30, 2005. The yield on the previously securitized loans has increased due to improved cash flows from net default rates being less than previously estimated. The lower net default rates resulted from the Company’s assumption of the servicing of all of the pool balances during the second quarter of 2005. This favorably impacted the yield on the previously securitized loans by eliminating the servicing fees previously being paid to the external servicing agent and increased internal collection efforts that have resulted in enhanced levels of recoveries on previously charged-off loans. Subsequent to our assumption of the servicing of these loans, the Company has averaged net recoveries of approximately $400,000 per month. The Company does not believe that continued net recoveries at this rate can be sustained indefinitely. As a result of these net recoveries, which are accreted into income over the remaining expected life of the loans, together with the improvements associated with lower servicing costs, the Company now projects that the yield on these loans will be in the range of 44-46%.

This news release contains certain forward-looking statements that are included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such information involves risks and uncertainties that could result in the Company's actual results differing from those projected in the forward-looking statements. Important factors that could cause actual results to differ materially from those discussed in such forward-looking statements include, but are not limited to, (1) the Company may incur additional loan loss provision due to negative credit quality trends in the future that may lead to a deterioration of asset quality; (2) the Company may incur increased charge-offs in the future; (3) the Company may experience increases in the default rates on previously securitized loans that would result in impairment losses or lower the yield on such loans; (4) the Company may continue to benefit from strong recovery efforts on previously securitized loans resulting in improved yields on these assets; (5) the Company could have adverse legal actions of a material nature; (6) the Company may face competitive loss of customers; (7) the Company may be unable to manage its’ expense levels; (8) the Company may have difficulty retaining key employees; (9) changes in the interest rate environment may have results on the Company’s operations materially different from those anticipated by the Company’s market risk management functions; (10) changes in general economic conditions and increased competition could adversely affect the Company’s operating results; (11) changes in other regulations and government policies affecting bank holding companies and their subsidiaries, including changes in monetary policies, could negatively impact the Company’s operating results; and (12) the Company may experience difficulties growing loan and deposit balances. Forward-looking statements made herein reflect management's expectations as of the date such statements are made. Such information is provided to assist stockholders and potential investors in understanding current and anticipated financial operations of the Company and is included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances that arise after the date such statements are made.

CITY HOLDING COMPANY AND SUBSIDIARIES
Financial Highlights
(Unaudited)

	Three Months Ended
	Sept 30			Sept 30			Percent
	2006			2005			Change
Earnings ($000s, except per share data):
Net Interest Income (FTE)	$	25,750		$	25,893			(0.55	)%
Net Income		13,620			13,172			3.40	%
Earnings per Basic Share		0.78			0.73			6.85	%
Earnings per Diluted Share		0.77			0.72			6.94	%
Key Ratios (percent):
Return on Average Assets		2.17	%		2.09	%		3.65	%
Return on Average Equity		18.56	%		18.23	%		1.82	%
Net Interest Margin		4.51	%		4.51	%		(0.01	)%
Efficiency Ratio		42.39	%		45.92	%		(7.69	)%
Average Shareholders' Equity to Average Assets		11.67	%		11.47	%		1.77	%

Risk-Based Capital Ratios (a):
Tier I		14.99	%		14.94	%		0.34	%
Total		15.87	%		15.95	%		(0.50	)%

Average Tangible Equity to Average Tangible Assets		9.69	%		9.42	%		2.92	%
Common Stock Data:
Cash Dividends Declared per Share	$	0.28		$	0.25			12.00	%
Book Value per Share		16.99			15.98			6.28	%
Tangible Book Value per Share		13.63			12.70			7.32	%
Market Value per Share:
High		40.19			39.21			2.50	%
Low		35.42			34.69			2.10	%
End of Period		39.87			35.73			11.59	%

Price/Earnings Ratio (b)		12.78			12.24			4.43	%
		Nine Months Ended
		Sept 30			Sept 30			Percent
		2006			2005			Change
Earnings ($000s, except per share data):
Net Interest Income (FTE)	$	78,025		$	72,253			7.99	%
Net Income		40,247			37,199			8.19	%
Earnings per Basic Share		2.27			2.15			5.58	%
Earnings per Diluted Share		2.26			2.12			6.60	%
Key Ratios (percent):
Return on Average Assets		2.13	%		2.09	%		1.87	%
Return on Average Equity		18.25	%		19.50	%		(6.42	)%
Net Interest Margin		4.60	%		4.46	%		3.01	%
Efficiency Ratio		43.88	%		46.69	%		(6.03	)%
Average Shareholders' Equity to Average Assets		11.68	%		10.73	%		8.85	%
Common Stock Data:
Cash Dividends Declared per Share	$	0.84		$	0.75			12.00	%
Market Value per Share:
High		40.19			39.21			2.50	%
Low		34.53			27.57			25.24	%

(a) September 30, 2006 risk-based capital ratios are estimated.
(b) September 30, 2006 price/earnings ratio computed based on annualized third quarter 2006 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

2002	$	8.92	$	9.40	$	9.64	$	9.93	$	12.04	$	30.20
2003		10.10		10.74		11.03		11.46		25.50		37.15
2004		12.09		11.89		12.70		13.03		27.30		37.58
2005		13.20		15.56		15.99		16.14		27.57		39.21
2006		16.17		16.17		16.99				34.53		40.19
Earnings per Basic Share
	Quarter Ended
		March 31		June 30		September 30		December 31		Year-to-Date

2002	$	0.38	$	0.45	$	0.53	$	0.56	$	1.92
2003		0.56		0.73		0.69		0.64		2.62
2004		0.66		0.80		0.66		0.67		2.79
2005		0.70		0.72		0.73		0.72		2.87
2006		0.71		0.78		0.78				2.27
Earnings per Diluted Share
		Quarter Ended
		March 31		June 30		September 30		December 31		Year-to-Date

2002	$	0.38	$	0.45	$	0.52	$	0.55	$	1.90
2003		0.55		0.72		0.68		0.63		2.58
2004		0.65		0.79		0.65		0.66		2.75
2005		0.69		0.71		0.72		0.72		2.84
2006		0.71		0.77		0.77				2.26

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited) ($ in 000s, except per share data)
	Three Months Ended September 30,
	2006			2005
Interest Income
Interest and fees on loans	$	31,774		$	28,083
Interest on investment securities:
Taxable		6,870			7,288
Tax-exempt		437			508
Interest on loans held for sale		122			-
Interest on deposits in depository institutions		452			31
Interest on federal funds sold		92			-
Total Interest Income		39,747			35,910

Interest Expense
Interest on deposits		11,782			7,763
Interest on short-term borrowings		1,343			956
Interest on long-term debt		1,108			1,571
Total Interest Expense		14,233			10,290
Net Interest Income		25,514			25,620
Provision for loan losses		1,225			600
Net Interest Income After Provision for Loan Losses		24,289			25,020

Non-Interest Income
Investment securities (losses) gains		(2,067	)		5
Service charges		10,833			10,433
Insurance commissions		526			595
Trust and investment management fee income		572			468
Bank owned life insurance		561			552
Gain on sale of credit card portfolio		3,563			-
Other income		778			959
Total Non-Interest Income		14,766			13,012

Non-Interest Expense
Salaries and employee benefits		8,733			8,739
Occupancy and equipment		1,602			1,687
Depreciation		1,061			1,096
Professional fees and litigation expense		379			456
Postage, delivery, and statement mailings		765			670
Advertising		810			764
Telecommunications		498			702
Bankcard expenses		485			512
Insurance and regulatory		384			385
Office supplies		417			327
Repossessed asset losses (gains), net of expenses		20			(35	)
Loss on early extinguishment of debt		379			-
Other expenses		2,600			2,619
Total Non-Interest Expense		18,133			17,922
Income Before Income Taxes		20,922			20,110
Income tax expense		7,302			6,938
Net Income	$	13,620		$	13,172

Basic earnings per share	$	0.78		$	0.73
Diluted earnings per share	$	0.77		$	0.72
Average Common Shares Outstanding:
Basic		17,557			18,052
Diluted		17,619			18,238

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited) ($ in 000s, except per share data)	Nine Months Ended September 30,
	2006			2005
Interest Income
Interest and fees on loans	$	91,788		$	74,796
Interest on investment securities:
Taxable		21,618			22,616
Tax-exempt		1,359			1,390
Interest on loans held for sale		322			-
Interest on deposits in depository institutions		1,018			73
Interest on federal funds sold		92			4
Total Interest Income		116,197			98,879

Interest Expense
Interest on deposits		31,503			20,236
Interest on short-term borrowings		3,795			2,320
Interest on long-term debt		3,607			4,818
Total Interest Expense		38,905			27,374
Net Interest Income		77,292			71,505
Provision for loan losses		2,900			600
Net Interest Income After Provision for Loan Losses		74,392			70,905

Non-Interest Income
Investment securities (losses) gains		(2,067	)		26
Service charges		31,597			28,561
Insurance commissions		1,661			1,732
Trust and investment management fee income		1,642			1,521
Bank owned life insurance		1,776			2,088
Gain on sale of credit card portfolio		3,563			-
Other income		2,445			2,626
Total Non-Interest Income		40,617			36,554

Non-Interest Expense
Salaries and employee benefits		26,129			25,063
Occupancy and equipment		4,825			4,726
Depreciation		3,182			3,034
Professional fees and litigation expense		1,345			1,535
Postage, delivery, and statement mailings		2,098			1,938
Advertising		2,339			2,231
Telecommunications		1,499			1,688
Bankcard expenses		1,486			1,597
Insurance and regulatory		1,153			1,116
Office supplies		1,171			805
Repossessed asset (gains), net of expenses		(105	)		(50	)
Loss on early extinguishment of debt		661			-
Other expenses		7,402			7,091
Total Non-Interest Expense		53,185			50,774
Income Before Income Taxes		61,824			56,685
Income tax expense		21,577			19,486
Net Income	$	40,247		$	37,199

Basic earnings per share	$	2.27		$	2.15
Diluted earnings per share	$	2.26		$	2.12
Average Common Shares Outstanding:
Basic		17,759			17,314
Diluted		17,817			17,514

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Statements of Changes in Stockholders' Equity
(Unaudited) ($ in 000s)
	Three Months Ended
	September 30, 2006			September 30, 2005

Balance at July 1	$	284,120		$	279,624

Net income		13,620			13,172
Other comprehensive income:
Change in unrealized gain on securities available-for-sale		4,188			(333	)
Change in unrealized gain on interest rate floors		1,465			(439	)
Cash dividends declared ($0.28/share)		(4,916	)		-
Cash dividends declared ($0.25/share)		-			(4,543	)
Issuance of stock awards, net		284			-
Exercise of 7,928 stock options		228			-
Exercise of 224,341 stock options		-			4,158
Excess tax benefits on stock compensation		27			-
Purchase of 18,000 common shares of treasury		(689	)		-
Purchase of 34,100 common shares of treasury		-			(1,207	)
Balance at September 30	$	298,327		$	290,432


	Nine Months Ended
		September 30, 2006			September 30, 2005

Balance at January 1	$	292,141		$	216,080

Net income		40,247			37,199
Other comprehensive income:
Change in unrealized gain on securities available-for-sale		277			(2,419	)
Change in unrealized gain on interest rate floors		453			(543	)
Cash dividends declared ($0.84/share)		(14,823	)		-
Cash dividends declared ($0.75/share)		-			(13,194	)
Issuance of 1,580,034 shares for acquisition of Classic Bancshares, net
108,173 owned and transferred to treasury		-			54,339
Issuance of stock awards, net		471			147
Exercise of 39,935 stock options		653			-
Exercise of 262,709 stock options		-			4,655
Excess tax benefits on stock compensation		222			-
Purchase of 590,053 common shares of treasury		(21,314	)		-
Purchase of 173,876 common shares of treasury		-			(5,832	)
Balance at September 30	$	298,327		$	290,432

CITY HOLDING COMPANY AND SUBSIDIARIES
Condensed Consolidated Quarterly Statements of Income
(Unaudited) ($ in 000s, except per share data)

	Quarter Ended
	Sept 30			June 30			March 31			Dec 31			Sept 30
	2006			2006			2006			2005			2005

Interest income	$	39,747		$	39,010		$	37,441		$	36,639		$	35,910
Taxable equivalent adjustment		236			246			252			269			273
Interest income (FTE)		39,983			39,256			37,693			36,908			36,183
Interest expense		14,233			13,085			11,588			11,064			10,290
Net interest income		25,750			26,171			26,105			25,844			25,893
Provision for loan losses		1,225			675			1,000			800			600
Net interest income after provision
for loan losses		24,525			25,496			25,105			25,044			25,293

Noninterest income		14,766			13,463			12,389			13,537			13,012
Noninterest expense		18,133			17,555			17,497			18,339			17,922
Income before income taxes		21,158			21,404			19,997			20,242			20,383
Income tax expense		7,302			7,397			6,879			6,884			6,938
Taxable equivalent adjustment		236			246			252			269			273
Net income	$	13,620		$	13,761		$	12,866		$	13,089		$	13,172


Basic earnings per share	$	0.78		$	0.78		$	0.71		$	0.72		$	0.73
Diluted earnings per share		0.77			0.77			0.71			0.72			0.72
Cash dividends declared per share		0.28			0.28			0.28			0.25			0.25


Average Common Share (000s):
Outstanding		17,557			17,719			18,006			18,127			18,052
Diluted		17,619			17,772			18,067			18,211			18,238

Net Interest Margin		4.51	%		4.58	%		4.71	%		4.55	%		4.51	%

CITY HOLDING COMPANY AND SUBSIDIARIES
Non-Interest Income and Non-Interest Expense
(Unaudited) ($ in 000s)

	Quarter Ended
	Sept 30			June 30			March 31		Dec 31			Sept 30
	2006			2006			2006		2005			2005

Non-Interest Income:
Service charges	$	10,833		$	10,903		$	9,862	$	10,530		$	10,433
Insurance commissions		526			521			614		620			595
Trust and investment management fee income		572			504			566		504			468
Bank owned life insurance		561			678			537		691			552
Other income		778			857			810		1,067			959
Subtotal		13,270			13,463			12,389		13,412			13,007
Investment security (losses) gains		(2,067	)		-			-		125			5
Gain on sale of credit card portfolio		3,563			-			-		-			-
Total Non-Interest Income	$	14,766		$	13,463		$	12,389	$	13,537		$	13,012

Non-Interest Expense:
Salaries and employee benefits	$	8,733		$	8,764		$	8,632	$	8,416		$	8,739
Occupancy and equipment		1,602			1,624			1,599		1,569			1,687
Depreciation		1,061			1,071			1,050		1,062			1,096
Professional fees and litigation expense		379			571			395		486			456
Postage, delivery, and statement mailings		765			689			644		728			670
Advertising		810			755			774		710			764
Telecommunications		498			525			476		560			702
Bankcard expenses		485			458			543		540			512
Insurance and regulatory		384			381			388		380			385
Office supplies		417			372			383		388			327
Repossessed asset losses (gains), net of expenses		20			(129	)		4		(28	)		(35	)
Loss on early extinguishment of debt		379			-			282		-			-
Other expenses		2,600			2,474			2,327		3,528			2,619
Total Non-Interest Expense	$	18,133		$	17,555		$	17,497	$	18,339		$	17,922


Employees (Full Time Equivalent)		767			779			764		770			768
Branch Locations		67			67			66		67			67

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
	September 30			December 31
	2006			2005
	*(Unaudited)*
Assets
Cash and due from banks	$	51,460		$	81,822
Interest-bearing deposits in depository institutions		35,800			4,451
Federal funds sold		15,000			-
Cash and cash equivalents		102,260			86,273

Investment securities available-for-sale, at fair value		465,752			549,966
Investment securities held-to-maturity, at amortized cost		53,791			55,397
Total investment securities		519,543			605,363

Gross loans		1,697,201			1,612,827
Allowance for loan losses		(15,557	)		(16,790	)
Net loans		1,681,644			1,596,037

Bank owned life insurance		54,619			52,969
Premises and equipment		43,545			42,542
Accrued interest receivable		12,934			13,134
Net deferred tax assets		26,308			27,929
Intangible assets		59,038			59,559
Other assets		27,665			18,791
Total Assets	$	2,527,556		$	2,502,597

Liabilities
Deposits:
Noninterest-bearing	$	335,887		$	376,076
Interest-bearing:
Demand deposits		420,613			437,639
Savings deposits		316,300			302,571
Time deposits		907,025			812,134
Total deposits		1,979,825			1,928,420
Short-term borrowings		135,960			152,255
Long-term debt		76,669			98,425
Other liabilities		36,775			31,356
Total Liabilities		2,229,229			2,210,456

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, 2006 and December 31, 2005
less 938,883 and 395,465 shares in treasury, respectively		46,249			46,249
Capital surplus		104,082			104,435
Retained earnings		186,171			160,747
Cost of common stock in treasury		(30,893	)		(11,278	)
Accumulated other comprehensive (loss) income:
Unrealized loss on securities available-for-sale		(4,562	)		(4,839	)
Unrealized gain on derivative instruments		453			-
Underfunded pension liability		(3,173	)		(3,173	)
Total Accumulated Other Comprehensive (Loss) Income		(7,282	)		(8,012	)
Total Stockholders' Equity		298,327			292,141
Total Liabilities and Stockholders' Equity	$	2,527,556		$	2,502,597

CITY HOLDING COMPANY AND SUBSIDIARIES
Loan Portfolio
(Unaudited) ($ in 000s)

	Sept 30		June 30		March 31		Dec 31			Sept 30
	2006		2006		2006		2005			2005

Residential real estate	$	604,867	$	601,097	$	595,093	$	592,521		$	596,184
Home equity		318,666		313,301		304,559		301,728			306,448
Commercial, financial, and agriculture		713,933		668,581		643,269		629,670			621,345
Installment loans to individuals		41,215		42,307		54,287		58,652			63,134
Previously securitized loans		18,520		22,253		25,918		30,256			35,599
Gross Loans	$	1,697,201	$	1,647,539	$	1,623,126	$	1,612,827		$	1,622,710







CITY HOLDING COMPANY AND SUBSIDIARIES
Previously Securitized Loans
(Unaudited) ($ in millions)
						Annualized		Effective
				December 31		Interest		Annualized
		Year Ended:		Balance (a)		Income (a)		Yield (a)

		2005	$	30.3	$	11.4		27	%
		2006		16.8		9.4		42	%
		2007		11.9		6.5		45	%
		2008		9.1		4.8		45	%
		2009		7.3		3.8		45	%

(a) 2005 amounts are based on actual results. 2006 amounts are based on actual results through 9/30/06 and estimated amounts for the remainder of the year. 2007, 2008 and 2009 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 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,
				2006								2005
	Average					Yield/			Average					Yield/
	Balance			Interest		Rate			Balance			Interest		Rate
Assets:
Loan portfolio:
Residential real estate	$	601,686		$	8,766		5.78	%	$	594,233		$	8,396		5.61	%
Home equity		315,341			6,389		8.04	%		307,302			4,894		6.32	%
Commercial, financial, and agriculture		682,793			13,196		7.67	%		607,033			10,118		6.61	%
Installment loans to individuals		42,848			1,219		11.29	%		65,408			1,760		10.68	%
Previously securitized loans		20,261			2,205		43.18	%		38,368			2,915		30.14	%
Total loans		1,662,929			31,775		7.58	%		1,612,344			28,083		6.91	%
Securities:
Taxable		512,083			6,870		5.32	%		610,142			7,288		4.74	%
Tax-exempt		40,815			673		6.54	%		48,709			781		6.36	%
Total securities		552,898			7,543		5.41	%		658,851			8,069		4.86	%
Loans held for sale		4,353			121		11.03	%		-			-		-
Deposits in depository institutions		35,524			452		5.05	%		4,460			31		2.76	%
Federal funds sold		7,631			92		4.78	%		-			-		-
Total interest-earning assets		2,263,335			39,983		7.01	%		2,275,655			36,183		6.31	%
Cash and due from banks		49,801								53,965
Bank premises and equipment		43,205								41,451
Other assets		173,762								167,399
Less: Allowance for loan losses		(15,425	)							(17,818	)
Total assets	$	2,514,678							$	2,520,652

Liabilities:
Interest-bearing demand deposits		423,762			1,329		1.24	%		450,767			1,098		0.97	%
Savings deposits		317,038			1,118		1.40	%		308,361			563		0.72	%
Time deposits		897,761			9,336		4.13	%		792,336			6,102		3.06	%
Short-term borrowings		136,927			1,342		3.89	%		167,357			956		2.27	%
Long-term debt		82,082			1,108		5.36	%		131,649			1,571		4.73	%
Total interest-bearing liabilities		1,857,570			14,233		3.04	%		1,850,470			10,290		2.21	%
Noninterest-bearing demand deposits		332,494								352,342
Other liabilities		31,077								28,790
Stockholders' equity		293,537								289,050
Total liabilities and
stockholders' equity	$	2,514,678							$	2,520,652
Net interest income				$	25,750							$	25,893
Net yield on earning assets							4.51	%							4.51	%

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited) ($ in 000s)

	Nine Months Ended September 30,
				2006								2005
	Average					Yield/			Average					Yield/
	Balance			Interest		Rate			Balance			Interest		Rate
Assets:
Loan portfolio:
Residential real estate	$	597,223		$	25,630		5.74	%	$	528,420		$	22,205		5.62	%
Home equity		309,007			17,945		7.76	%		306,047			13,770		6.02	%
Commercial, financial, and agriculture		656,688			36,581		7.45	%		543,809			25,359		6.23	%
Installment loans to individuals		49,381			4,211		11.40	%		54,695			4,630		11.32	%
Previously securitized loans		24,090			7,422		41.19	%		46,232			8,832		25.54	%
Total loans		1,636,389			91,789		7.50	%		1,479,203			74,796		6.76	%
Securities:
Taxable		554,884			21,618		5.21	%		637,413			22,616		4.74	%
Tax-exempt		42,823			2,091		6.53	%		42,450			2,138		6.73	%
Total securities		597,707			23,709		5.30	%		679,863			24,754		4.87	%
Loans held for sale		3,337			322		12.90	%		-			-		-
Deposits in depository institutions		28,208			1,018		4.83	%		4,415			73		2.21	%
Federal funds sold		2,571			92		4.78	%		141			4		3.79	%
Total interest-earning assets		2,268,212			116,930		6.89	%		2,163,622			99,627		6.16	%
Cash and due from banks		51,077								47,124
Bank premises and equipment		42,787								37,989
Other assets		170,710								138,319
Less: Allowance for loan losses		(16,135	)							(17,597	)
Total assets	$	2,516,651							$	2,369,457

Liabilities:
Interest-bearing demand deposits		435,505			3,917		1.20	%		431,035			2,659		0.82	%
Savings deposits		314,057			2,776		1.18	%		292,396			1,386		0.63	%
Time deposits		864,972			24,810		3.83	%		721,582			16,191		3.00	%
Short-term borrowings		149,858			3,795		3.39	%		156,617			2,320		1.98	%
Long-term debt		89,834			3,607		5.37	%		145,006			4,818		4.44	%
Total interest-bearing liabilities		1,854,226			38,905		2.81	%		1,746,636			27,374		2.10	%
Noninterest-bearing demand deposits		338,994								339,884
Other liabilities		29,393								28,612
Stockholders' equity		294,038								254,325
Total liabilities and
stockholders' equity	$	2,516,651							$	2,369,457
Net interest income				$	78,025							$	72,253
Net yield on earning assets							4.60	%							4.46	%

CITY HOLDING COMPANY AND SUBSIDIARIES
Analysis of Risk-Based Capital
(Unaudited) ($ in 000s)

	Sept 30			June 30			March 31			Dec 31			Sept 30
	2006 (a)			2006			2006			2005			2005
Tier I Capital:
Stockholders' equity	$	298,327		$	284,120		$	288,376		$	292,141		$	290,432
Goodwill and other intangibles		(59,038	)		(59,219	)		(59,378	)		(59,559	)		(59,742	)
Accumulated other comprehensive income		4,109			9,762			6,265			8,012			4,106
Qualifying trust preferred stock		22,000			25,500			25,500			28,000			28,000
Excess deferred tax assets		-			(4,079	)		(2,254	)		(1,071	)		-
Total tier I capital	$	265,398		$	256,084		$	258,509		$	267,523		$	262,796


Total Risk-Based Capital:
Tier I capital	$	265,398		$	256,084		$	261,809		$	267,523		$	262,796
Qualifying allowance for loan losses		15,557			15,268			16,818			16,790			17,768
Total risk-based capital	$	280,955		$	271,352		$	278,627		$	284,313		$	280,564

Net risk-weighted assets	$	1,770,458		$	1,757,720		$	1,743,243		$	1,735,538		$	1,758,566


Ratios:
Average stockholders' equity to average assets		11.67	%		11.51	%		11.87	%		11.87	%		11.47	%
Tangible capital ratio		9.69	%		9.13	%		9.24	%		9.52	%		9.32	%
Risk-based capital ratios:
Tier I capital		14.99	%		14.58	%		14.83	%		15.41	%		14.94	%
Total risk-based capital		15.87	%		15.45	%		15.80	%		16.38	%		15.95	%
Leverage capital		10.81	%		10.34	%		10.62	%		10.97	%		10.68	%

(a) September 30, 2006 risk-based capital ratios are estimated.



CITY HOLDING COMPANY AND SUBSIDIARIES
Intangibles
(Unaudited) ($ in 000s)

	As of and for the Quarter Ended
		Sept 30			June 30			March 31			Dec 31			Sept 30
		2006			2006			2006			2005			2005

Intangibles, net	$	59,038		$	59,219		$	59,378		$	59,559		$	59,742
Intangibles amortization expense		181			181			181			183			183

-20-

CITY HOLDING COMPANY AND SUBSIDIARIES
Summary of Loan Loss Experience
(Unaudited) ($ in 000s)

	Quarter Ended
	Sept 30			June 30			Mar 31			Dec 31			Sept 30
	2006			2006			2006			2005			2005

Balance at beginning of period	$	15,268		$	16,818		$	16,790		$	17,768		$	18,298

Reduction of allowance for loans held for sale		-			(1,368	)		-			-			-

Charge-offs:
Commercial, financial, and agricultural		207			43			185			527			54
Real estate-mortgage		177			232			296			302			208
Installment loans to individuals		165			239			368			664			476
Overdraft deposit accounts		1,018			955			958			996			1,012
Total charge-offs		1,567			1,469			1,807			2,489			1,750

Recoveries:
Commercial, financial, and agricultural		44			33			32			30			135
Real estate-mortgage		64			56			105			188			53
Installment loans to individuals		131			151			198			163			136
Overdraft deposit accounts		392			372			500			330			296
Total recoveries		631			612			835			711			620

Net charge-offs		936			857			972			1,778			1,130
Provision for loan losses		1,225			675			1,000			800			600
Balance at end of period	$	15,557		$	15,268		$	16,818		$	16,790		$	17,768

Loans outstanding	$	1,697,201		$	1,647,539		$	1,623,126		$	1,612,827		$	1,622,710
Average loans outstanding		1,662,929			1,630,454			1,615,242			1,618,711			1,612,344
Allowance as a percent of loans outstanding		0.92	%		0.93	%		1.04	%		1.04	%		1.09	%
Allowance as a percent of non-performing loans		408.43	%		408.02	%		503.53	%		401.96	%		487.46	%
Net charge-offs (annualized) as a
percent of average loans outstanding		0.23	%		0.21	%		0.24	%		0.44	%		0.28	%
Net charge-offs, excluding overdraft deposit
accounts, (annualized) as a percent of average loans outstanding		0.07	%		0.07	%		0.13	%		0.27	%		0.10	%

CITY HOLDING COMPANY AND SUBSIDIARIES
Summary of Non-Performing Assets
(Unaudited) ($ in 000s)

	Sept 30			June 30			March 31			Dec 31			Sept 30
	2006			2006			2006			2005			2005

Nonaccrual loans	$	3,359		$	3,046		$	2,743		$	2,785		$	2,468
Accruing loans past due 90 days or more		328			573			512			1,124			1,003
Previously securitized loans past due 90 days or more		122			123			85			268			174
Total non-performing loans		3,809			3,742			3,340			4,177			3,645
Other real estate owned, excluding property associated
with previously securitized loans		499			294			403			135			117
Other real estate owned associated with previously
securitized loans		20			92			306			-			-
		519			386			709			135			117
Total non-performing assets	$	4,328		$	4,128		$	4,049		$	4,312		$	3,762

Non-performing assets as a percent of loans and
other real estate owned		0.25	%		0.25	%		0.25	%		0.27	%		0.23	%