Exhibit 99.1, Fourth Quarter Earnings Press Release and Tables

Charleston, West Virginia - City Holding Company, “the Company” (NASDAQ:CHCO), a $2.5 billion bank holding company headquartered in Charleston, today announced net income of $53.2 million, or diluted earnings per share of $2.99, for the year ended December 31, 2006 compared to $50.3 million, or diluted earnings per share of $2.84 during 2005. This represents an increase in diluted earnings per share of 5.3% despite an increase in the Company’s provision for loan losses from $1.4 million in 2005 (or 9 basis points of average loans outstanding) to $3.8 million in 2006 (or 23 basis points of average loans outstanding). Return on assets for the full year was 2.11%, return on equity was 17.9%, the net interest margin was 4.56%, and the efficiency ratio was 44.5%. This compares with a return on assets of 2.09%, a return on equity of 18.9%, net interest margin of 4.49%, and an efficiency ratio of 46.7% for 2005.

For the fourth quarter of 2006, the Company reported net income of $12.9 million, or $0.74 per diluted share compared to $13.1 million or $0.72 per diluted share in the fourth quarter of 2005. This represents a 2.8% increase in diluted earnings per share, even with a loss of $0.7 million in connection with the redemption of $6.0 million of the Company’s trust preferred securities in 2006. For the fourth quarter of 2006, the Company achieved a return on assets of 2.06%, a return on equity of 16.9%, a net interest margin of 4.43%, and an efficiency ratio of 46.4%. This compares with a return on assets of 2.10%, a return on equity of 17.7%, net interest margin of 4.55%, and an efficiency ratio of 46.6% for the comparable period of 2005.

Charles Hageboeck, Chief Executive Officer and President, stated, “In 2006, City Holding Company continued as one of the best performing banks in the industry based on profitability, the net interest margin, efficiency ratio and asset quality. Through the efforts of our management and staff, the Company is reporting record earnings for 2006 and increased return on assets to 2.11% from what was already the highest level of return on assets for banks between $1 and $10 billion during 2005. Diluted earnings per share were up 5.3% in 2006 as compared to 2005 despite headwinds from a higher provision for loan losses and from a decrease in interest income of $2 million associated with run-off of the legacy portfolio of previously securitized loans. As a result, we were very pleased with the underlying performance of the Company during 2006.

Beyond maintaining its enviable financial performance, the Company has embarked upon strategies to grow the franchise. The Company opened its first new free-standing branch in eight years in Charles Town, West Virginia, which is located in the Washington-Baltimore, DC-MD-VA-WV PMSA in October of 2006. We have broken ground on a new 7,500 square foot office in Martinsburg, WV that will serve as the headquarters for the bank’s presence in the eastern panhandle of West Virginia and have acquired additional parcels of land for future branch expansion in areas within our current foothold. As a result of changes in state law, the Company has hired a team of 6 insurance professionals as part of City Insurance to provide Worker’s Compensation Insurance to businesses throughout West Virginia - a move that is expected to lift insurance revenues by nearly 50% during 2007. The Company has also hired a team of insurance agents in Beckley, WV to drive significant expansion of the Company’s personal lines insurance business throughout the Company’s footprint.

During 2006, the Company sold its credit card portfolio (which resulted in a $3.6 million gain) to create shareholder value and leverage our ability to build strong customer relationships across all of our product lines. The Company continues to offer credit cards to its customers through its partnership with Elan Financial Services (Elan), one of the premier providers of processing services for financial institutions. Due to the credit card portfolio sale, interest and fee income decreased $1.0 million from 2005. To mitigate this decrease, the Company implemented a strategy in the third and fourth quarter to reposition the balance sheet by selling approximately $55 million of investment securities and replacing them with higher yielding investment securities. The Company also repurchased $9.5 million of its 9.15% trust preferred securities, which reduced total interest expense by $0.1 million during the third and fourth quarters.

Subsequent to changes the Company implemented in its underwriting standards beginning in 2001, the Company has demonstrated considerable consistency in its asset quality. Gross charge-offs at the Company are monitored by losses on depository accounts, losses on credit cards, losses on loans acquired in 2005 as part of the acquisition of Classic Bancshares, losses on loans that were underwritten prior to 2002, and losses on loans that have been underwritten since 2002. Loss rates on loans underwritten since 2002 demonstrate the significant turn-around achieved in asset quality, with gross charge-off rates that have averaged well below our gross charge-off rate for all loans over this time period. As time passes, the Company’s total gross charge-off experience increasingly reflects the solid underwriting standards that the Company utilizes in commercial and retail lending as loans written prior to 2002 become a smaller portion of our loan portfolio. At December 31, 2006, balances of loans written subsequent to 2002 comprise approximately 73% of total loan balances.

The Company also remains well positioned with respect to capital. With a tangible capital ratio in excess of 10%, the Company is positioned to use its capital to either significantly accelerate the past repurchase levels of our common stock or to use cash in an accretive acquisition. In summary, the Company performed well against all measures during 2006 and I am confident that we are positioned to continue to perform solidly in 2007 despite what is anticipated to be a challenging year for banks based on the current economic environment.”

As compared to December 31, 2005, loans have increased $64.6 million (4.0%) at December 31, 2006 with increases in commercial loans of $69.0 million (11.0%), home equity loans of $20.0 million (6.6%) and residential real estate loans of $6.0 million (1.0%). These increases were partially offset by decreases in installment loans of $15.7 million, due primarily to the sale of the Company’s retail credit card portfolio, and previously securitized loans of $14.7 million (see Previously Securitized Loans).

For the full year, the Company’s tax equivalent net interest income increased $5.3 million, or 5.4%, from $98.1 million in 2005 to $103.4 million in 2006, despite a decrease of $2.0 million in interest income from previously securitized loans from 2005 and a decrease of $0.9 million in interest income from credit cards. The average balances of previously securitized loans decreased $20.6 million, or 48.0%, from $42.9 million for the year ended December 31, 2005 to $22.3 million for the year ended December 31, 2006. This decrease was partially mitigated as the yield on previously securitized loans rose from 26.6% for the year ended December 31, 2005 to 42.2% for the year ended December 31, 2006 (see Previously Securitized Loans). Exclusive of interest income from previously securitized loans and credit cards, interest income from all other loans increased $13.1 million from 2005 and the yield on these loans increased 81 basis points. The average balances of these loans increased $167 million during 2006 due to both internal growth and the acquisition of Classic during the second quarter of 2005. Interest income attributable to this growth totaled $10.3 million. These increases were partially offset by an increase of $15.3 million in interest expense. The average rate paid on deposits increased 75 basis points during 2006 and resulted in an increase in deposit interest expense of $11.0 million. Due to the Classic acquisition and internal growth, the Company experienced an increase of $153 million, or 10.4%, in average deposit balances that increased deposit interest expense by $4.3 million.

The net interest margin for the year ended December 31, 2006 of 4.56% represented a 7 basis point increase from the year ended December 31, 2005’s net interest margin of 4.49%. The Company positioned its balance sheet to benefit from rising interest rates by emphasizing variable rate loan products. As interest rates rose during 2005 and 2006, the Company’s interest rate risk management strategy offset the decreasing balances of previously securitized loans and resultant reduced levels of interest income from these assets. Excluding previously securitized loans, the sale of the Company’s credit card portfolio, and the impact of the Classic acquisition, the Company’s net interest margin increased 26 basis points and net interest income increased $6.3 million from 2005.

The Company’s tax equivalent net interest income decreased $0.5 million, or 2.0%, from $25.8 million during the fourth quarter of 2005 to $25.3 million during the fourth quarter of 2006. This decrease is attributable to two factors. First, during the third quarter of 2006, the Company sold its credit card portfolio. Average credit card loans outstanding were $15.3 million in the fourth quarter of 2005. The sale of these loans resulted in a decrease in interest income of $0.5 million. Secondly, the Company experienced a decrease of $0.6 million in interest income from previously securitized loans in the fourth quarter of 2006 as compared to the fourth quarter of 2005 as the average balance of these loans decreased 48.6%. The decrease in average balances was partially mitigated by an increase in the yield on these loans which rose from an average of 31.0% for the fourth quarter of 2005 to 46.6% for the fourth quarter of 2006 (see Previously Securitized Loans). An increase of $4.3 million in interest income from all other loans (commercial, residential, home equity, and consumer) was essentially offset by an increase of $4.0 million in interest expense on deposits.

The Company’s net interest margin was 4.43% in the fourth quarter of 2006 as compared to 4.55% in the fourth quarter of 2005. The decline in the net interest margin can be attributed to lower interest income from previously securitized loans and the sale of the credit card portfolio. Excluding these assets, the Company’s net interest margin decreased 2 basis points from 4.22% during the fourth quarter of 2005 to 4.20% for the fourth quarter of 2006 while net interest income increased $0.3 million from the quarter ended December 31, 2005.

At December 31, 2006, the Allowance for Loan Losses (“ALLL”) was $15.4 million or 0.92% of total loans outstanding and 385% of non-performing loans compared to $16.8 million or 1.04% of loans outstanding and 402% of non-performing loans at December 31, 2005, and $15.6 million or 0.92% of loans outstanding and 408% of non-performing loans at September 30, 2006. While the Company’s ALLL as a percent of outstanding loans has decreased since December 31, 2005, this decrease can be directly attributed to the sale of the bank’s credit card portfolio in the third quarter of 2006. In fact, after consideration of the impact of the sale of the credit card portfolio, the ALLL (less the portion of the allowance allocated to credit cards) was 0.93% of total loans outstanding (net of credit card loans outstanding) and 355% of non-performing loans (net of non-performing credit card loans) at December 31, 2005.

As a result of the Company’s quarterly analysis of the adequacy of the ALLL, the Company recorded a provision for loan losses of $0.9 million in the fourth quarter of 2006 and $3.8 million for the year ended December 31, 2006 compared to $0.8 million and $1.4 million for the comparable periods in 2005. The provision for loan losses recorded during 2006 was the result of increases in allocations to commercial, commercial real estate, and home equity loans. While the Company has increased the provision from 2005, the amount of provision recorded was favorably impacted by continued improvement in the quality of the loan portfolio and the sale of the credit card portfolio. Changes in the amount of the provision and related allowance are based on the Company’s detailed methodology and are directionally consistent with growth and changes in the quality of the Company’s loan portfolio.

The Company had net charge-offs of $1.1 million for the fourth quarter of 2006, with depository accounts representing $0.4 million (or approximately 36%) 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 loans were $0.7 million for the fourth quarter, while residential loans experienced net recoveries of $0.1 million during the quarter. The increase in net commercial charge-offs was primarily related to four credits that had been previously identified with appropriate amounts of reserve allocated for each credit. The Company experienced net charge-offs related to loans (excluding overdrafts) of 0.11% in 2006; 0.22% in 2005; and 0.17% in 2004.

The Company’s ratio of non-performing assets to total loans and other real estate owned has steadily improved over the last four years, ranging from 0.34% in 2003 to 0.25% at December 31, 2006. This compares quite favorably relative to the Company’s peer group (bank holding companies with total assets between $1 and $5 billion), which reported average non-performing assets as a percentage of loans and other real estate owned for the most recently reported quarter ended September 30, 2006 of 0.70%. The composition of the Company’s loan portfolio, which is weighted more heavily toward residential mortgage loans and less towards non-real estate secured commercial loans than peers, has allowed it to maintain a lower allowance in comparison to peers. In addition, the sale of the Company’s credit card portfolio resulted in a reduction of the allowance by $1.4 million during 2006. As a result, the Company’s ALLL as a percentage of loans outstanding is 0.92% at December 31, 2006. 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.

For the full year, net of investment securities (losses) gains and the gain from the sale of the Company’s credit card portfolio, non-interest income increased $2.7 million, or 5.4%, from $49.9 million in 2005 to $52.6 million in 2006. Service charges from depository accounts increased $3.5 million, or 8.9%, from $39.1 million in 2005 to $42.6 million in 2006. This increase is partially due to the acquisition of Classic Bancshares, Inc. during the second quarter of 2005. This increase was partially mitigated by a $0.4 million decrease in bank-owned life insurance revenues from the settlement of insured claims and a $0.4 million decrease in other income due primarily to lower credit card fee income as a result of the sale of the credit card portfolio.

Net of investment securities gains, non-interest income increased $0.1 million to $13.5 million in the fourth quarter of 2006 as compared to $13.4 million in the fourth quarter of 2005. The largest source of non-interest income is service charges from depository accounts, which increased $0.4 million, or 4.1%, from $10.5 million during the fourth quarter of 2005 to $10.9 million during the fourth quarter of 2006. This increase was essentially offset by a decrease in other income of $0.3 million due to lower credit card fee income due to the sale of the credit card portfolio on August 4, 2006 to Elan.

For the full year, non-interest expenses increased $2.2 million, or 3.1%, from $69.1 million in 2005 to $71.3 million in 2006. The increase was primarily a result of the Classic acquisition during the second quarter of 2005, which increased non-interest expenses by $1.8 million from 2005. In addition, the Company recognized $1.4 million of losses from the redemption of $12.0 million of its trust preferred securities during 2006. Other expenses decreased $1.3 million from 2005 due to a charge recorded in 2005 that was associated with interest rate floors utilized in the Company’s interest rate risk management process. Exclusive of these items, non-interest expenses increased by $0.3 million from 2005 due to increased advertising expenses incurred to facilitate the Company’s focused efforts to attract and grow new customer relationships.

Non-interest expenses decreased $0.2 million from $18.3 million in the fourth quarter of 2005 to $18.1 million in the fourth quarter of 2006. The Company incurred a loss of $0.7 million during the fourth quarter of 2006 in connection with the redemption of $6.0 million of its trust preferred securities. The Company redeemed the trust preferred securities that have a stated interest rate of 9.15% in 2006 as a part of its strategy to reposition the balance sheet in response to the sale of its credit card portfolio. In addition, the Company experienced a decrease in health insurance costs of $0.4 million during fourth quarter of 2006, although such savings are not expected to be of a recurring nature. During the fourth quarter of 2005 the Company recorded a charge of $1.3 million associated with interest rate floors.

At December 31, 2006, the Company reported “Previously Securitized Loans” of $15.6 million compared to $30.3 million at December 31, 2005, representing a decrease of 48.5%. The yield on the previously securitized loans was 46.6% for the quarter ended December 31, 2006, compared to 43.2% for the quarter ended September 30, 2006, and 31.0% for the quarter ended December 31, 2005. The yield on the previously securitized loans has increased due to improved cash flows as net default rates have been less than previously estimated. The default rates have decreased as a result of the Company’s assumption of the servicing of all of the pool balances during the second quarter of 2005. Subsequent to our assumption of the servicing of these loans, the Company has averaged net recoveries but does not believe that continued net recoveries can be sustained indefinitely. The Company now projects that the yield on these loans will be in the range of 47-49%.

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 84.5% and the loan to asset ratio was 66.9% at December 31, 2006. The Company maintained investment securities totaling 20.7% of assets as of this date. Further, the Company’s deposit mix is weighted heavily toward checking and saving accounts that fund 42.5% of assets at December 31, 2006. Time deposits fund 36.7% of assets at December 31, 2006, but very few of these deposits are in accounts that have balances of more than $150,000, reflecting the core retail orientation of the Company.

The Company’s tangible equity ratio was 10.0% at December 31, 2006 compared with a tangible equity ratio of 9.5% at December 31, 2005. During the year ended December 31, 2006, the Company repurchased 666,753 common shares at a weighted average price of $36.45 as part of a one million share repurchase plan authorized by the Board of Directors in June 2005. On December 21, 2006, the Company announced that the Board of Directors authorized the Company to buy back up to one million shares of its common shares (approximately 5% of outstanding shares) in open market transactions at prices that are accretive to the earnings per share of continuing shareholders. No time limit was placed on the duration of the share repurchase program. As part of this authorization, the Company rescinded the previous share repurchase program plan approved in June 2005. The Company had repurchased 837,853 shares under the June 2005 Stock Repurchase Plan. Due to the Company’s strong earnings, the Company was able to both repurchase these shares and increase its tangible equity ratio.

As a result of repurchases completed in 2006, the Company’s outstanding shares decreased 666,753 shares during the year (exclusive of stock option exercises), providing the Company’s shareholders increased earnings capacity as shares repurchased improve earnings per share on the remaining shares outstanding. As of January 19, 2007, the Company has approximately 931,000 shares remaining for repurchase under the plan approved by the Board of Directors in December 2006. The repurchase of 666,753 shares during 2006 represents 3.7% of total shares outstanding as of December 31, 2005.

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) the Company may be unable to increase its insurance revenues as expected; (11) changes in general economic conditions and increased competition could adversely affect the Company’s operating results; (12) 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 (13) 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
	Dec 31			Dec 31			Percent
	2006			2005			Change

Earnings ($000s, except per share data):
Net Interest Income (FTE)	$	25,333		$	25,844			(1.98	)%
Net Income		12,939			13,089			(1.15	)%
Earnings per Basic Share		0.74			0.72			2.78	%
Earnings per Diluted Share		0.74			0.72			2.78	%


Key Ratios (percent):
Return on Average Assets		2.06	%		2.10	%		(1.91	)%
Return on Average Equity		16.93	%		17.66	%		(4.11	)%
Net Interest Margin		4.43	%		4.55	%		(2.65	)%
Efficiency Ratio		46.40	%		46.57	%		(0.37	)%
Average Shareholders' Equity to Average Assets		12.14	%		11.87	%		2.25	%

Risk-Based Capital Ratios (a):
Tier I		15.30	%		15.41	%		(0.72	)%
Total		16.19	%		16.38	%		(1.16	)%

Average Tangible Equity to Average Tangible Assets		10.06	%		9.52	%		5.71	%


Common Stock Data:
Cash Dividends Declared per Share	$	0.28		$	0.25			12.00	%
Book Value per Share		17.46			16.14			8.17	%
Tangible Book Value per Share		14.09			12.85			9.68	%
Market Value per Share:
High		41.87			37.62			11.30	%
Low		37.49			32.68			14.72	%
End of Period		40.89			35.95			13.74	%

Price/Earnings Ratio (b)		13.81			12.48			10.67	%
		Twelve Months Ended
		Dec 31			Dec 31			Percent
		2006			2005			Change

Earnings ($000s, except per share data):
Net Interest Income (FTE)	$	103,359		$	98,097			5.36	%
Net Income		53,187			50,288			5.76	%
Earnings per Basic Share		3.00			2.87			4.53	%
Earnings per Diluted Share		2.99			2.84			5.28	%


Key Ratios (percent):
Return on Average Assets		2.11	%		2.09	%		0.93	%
Return on Average Equity		17.91	%		18.98	%		(5.64	)%
Net Interest Margin		4.56	%		4.49	%		1.55	%
Efficiency Ratio		44.49	%		46.66	%		(4.65	)%
Average Shareholders' Equity to Average Assets		11.80	%		11.03	%		6.96	%


Common Stock Data:
Cash Dividends Declared per Share	$	1.12		$	1.00			12.00	%
Market Value per Share:
High		41.87			39.21			6.78	%
Low		34.53			27.57			25.24	%


(a) December 31, 2006 risk-based capital ratios are estimated.
(b) December 31, 2006 price/earnings ratio computed based on annualized fourth 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		17.46		34.53		41.87


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		0.74		3.00


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		0.74		2.99

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

	Three Months Ended December 31,
	2006		2005

Interest Income
Interest and fees on loans	$	32,157	$	28,918
Interest on investment securities:
Taxable		6,800		7,188
Tax-exempt		423		497
Interest on deposits in depository institutions		459		36
Interest on federal funds sold		86		-
Total Interest Income		39,925		36,639

Interest Expense
Interest on deposits		12,543		8,569
Interest on short-term borrowings		1,304		1,049
Interest on long-term debt		973		1,446
Total Interest Expense		14,820		11,064
Net Interest Income		25,105		25,575
Provision for loan losses		901		800
Net Interest Income After Provision for Loan Losses		24,204		24,775

Non-Interest Income
Investment securities gains (losses)		72		125
Service charges		10,962		10,530
Insurance commissions		675		620
Trust and investment management fee income		498		504
Bank owned life insurance		576		691
Other income		803		1,067
Total Non-Interest Income		13,586		13,537

Non-Interest Expense
Salaries and employee benefits		8,354		8,416
Occupancy and equipment		1,655		1,569
Depreciation		1,037		1,062
Professional fees and litigation expense		415		486
Postage, delivery, and statement mailings		735		728
Advertising		876		710
Telecommunications		549		560
Bankcard expenses		478		540
Insurance and regulatory		375		380
Office supplies		408		388
Repossessed asset losses (gains), net of expenses		6		(28	)
Loss on early extinguishment of debt		708		-
Other expenses		2,503		3,528
Total Non-Interest Expense		18,099		18,339
Income Before Income Taxes		19,691		19,973
Income tax expense		6,752		6,884
Net Income	$	12,939	$	13,089

Basic earnings per share	$	0.74	$	0.72
Diluted earnings per share	$	0.74	$	0.72
Average Common Shares Outstanding:
Basic		17,535		18,127
Diluted		17,601		18,211

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

	Twelve Months Ended December 31,
	2006			2005

Interest Income
Interest and fees on loans	$	123,945		$	103,714
Interest on investment securities:
Taxable		28,418			29,804
Tax-exempt		1,782			1,887
Interest on loans held for sale		322			-
Interest on deposits in depository institutions		1,477			109
Interest on federal funds sold		179			4
Total Interest Income		156,123			135,518

Interest Expense
Interest on deposits		44,046			28,805
Interest on short-term borrowings		5,099			3,369
Interest on long-term debt		4,579			6,264
Total Interest Expense		53,724			38,438
Net Interest Income		102,399			97,080
Provision for loan losses		3,801			1,400
Net Interest Income After Provision for Loan Losses		98,598			95,680

Non-Interest Income
Investment securities (losses) gains		(1,995	)		151
Service charges		42,559			39,091
Insurance commissions		2,335			2,352
Trust and investment management fee income		2,140			2,025
Bank owned life insurance		2,352			2,779
Gain on sale of credit card portfolio		3,563			-
Other income		3,249			3,693
Total Non-Interest Income		54,203			50,091

Non-Interest Expense
Salaries and employee benefits		34,484			33,479
Occupancy and equipment		6,481			6,295
Depreciation		4,219			4,096
Professional fees and litigation expense		1,760			2,021
Postage, delivery, and statement mailings		2,832			2,666
Advertising		3,216			2,941
Telecommunications		2,048			2,248
Bankcard expenses		1,964			2,137
Insurance and regulatory		1,528			1,496
Office supplies		1,578			1,193
Repossessed asset (gains), net of expenses		(98	)		(78	)
Loss on early extinguishment of debt		1,368			-
Other expenses		9,905			10,619
Total Non-Interest Expense		71,285			69,113
Income Before Income Taxes		81,516			76,658
Income tax expense		28,329			26,370
Net Income	$	53,187		$	50,288

Basic earnings per share	$	3.00		$	2.87
Diluted earnings per share	$	2.99		$	2.84
Average Common Shares Outstanding:
Basic		17,701			17,519
Diluted		17,762			17,690

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Statements of Changes in Stockholders' Equity
(Unaudited) ($ in 000s)

	Three Months Ended
	December 31, 2006			December 31, 2005

Balance at October 1	$	298,327		$	290,432

Net income		12,939			13,089
Other comprehensive income:
Change in unrealized gain on securities available-for-sale		1,913			(3,701	)
Change in underfunded pension liability		503			(748	)
Change in unrealized gain on interest rate floors		(663	)		-
Reclassification of unrealized derivative losses		-			543
Cash dividends declared ($0.28/share)		(4,896	)		-
Cash dividends declared ($0.25/share)		-			(4,522	)
Issuance of stock awards, net		13			-
Exercise of 104,966 stock options		-			3,128
Exercise of 6,488 stock options		145			-
Excess tax benefits on stock compensation		47			-
Purchase of 171,000 common shares of treasury		-			(6,080	)
Purchase of 76,700 common shares of treasury		(3,021	)		-
Balance at December 31	$	305,307		$	292,141



		Twelve Months Ended
		December 31, 2006			December 31, 2005

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

Net income		53,187			50,288
Other comprehensive income:
Change in unrealized gain on securities available-for-sale		2,190			(6,120	)
Change in unrealized gain on interest rate floors		(210	)		-
Change in underfunded pension liability		503			(748	)
Cash dividends declared ($1.12/share)		(19,721	)		-
Cash dividends declared ($1.00/share)		-			(17,716	)
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		484			147
Exercise of 367,675 stock options		-			7,783
Exercise of 46,423 stock options		798			-
Excess tax benefits on stock compensation		269			-
Purchase of 342,576 common shares of treasury		-			(11,912	)
Purchase of 666,753 common shares of treasury		(24,334	)		-
Balance at December 31	$	305,307		$	292,141

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

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

Interest income	$	39,925		$	39,747		$	39,010		$	37,441		$	36,639
Taxable equivalent adjustment		228			236			246			252			269
Interest income (FTE)		40,153			39,983			39,256			37,693			36,908
Interest expense		14,820			14,233			13,085			11,588			11,064
Net interest income		25,333			25,750			26,171			26,105			25,844
Provision for loan losses		901			1,225			675			1,000			800
Net interest income after provision
for loan losses		24,432			24,525			25,496			25,105			25,044

Noninterest income		13,586			14,766			13,463			12,389			13,537
Noninterest expense		18,099			18,133			17,555			17,497			18,339
Income before income taxes		19,919			21,158			21,404			19,997			20,242
Income tax expense		6,752			7,302			7,397			6,879			6,884
Taxable equivalent adjustment		228			236			246			252			269
Net income	$	12,939		$	13,620		$	13,761		$	12,866		$	13,089



Basic earnings per share	$	0.74		$	0.78		$	0.78		$	0.71		$	0.72
Diluted earnings per share		0.74			0.77			0.77			0.71			0.72
Cash dividends declared per share		0.28			0.28			0.28			0.28			0.25


Average Common Share (000s):
Outstanding		17,535			17,557			17,719			18,006			18,127
Diluted		17,601			17,619			17,772			18,067			18,211

Net Interest Margin		4.43	%		4.51	%		4.58	%		4.71	%		4.55	%

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

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

Non-Interest Income:
Service charges	$	10,962	$	10,833		$	10,903		$	9,862	$	10,530
Insurance commissions		675		526			521			614		620
Trust and investment management fee income		498		572			504			566		504
Bank owned life insurance		576		561			678			537		691
Other income		803		778			857			810		1,067
Subtotal		13,514		13,270			13,463			12,389		13,412
Investment security gains (losses)		72		(2,067	)		-			-		125
Gain on sale of credit card portfolio		-		3,563			-			-		-
Total Non-Interest Income	$	13,586	$	14,766		$	13,463		$	12,389	$	13,537

Non-Interest Expense:
Salaries and employee benefits	$	8,354	$	8,733		$	8,764		$	8,632	$	8,416
Occupancy and equipment		1,655		1,602			1,624			1,599		1,569
Depreciation		1,037		1,061			1,071			1,050		1,062
Professional fees and litigation expense		415		379			571			395		486
Postage, delivery, and statement mailings		735		765			689			644		728
Advertising		876		810			755			774		710
Telecommunications		549		498			525			476		560
Bankcard expenses		478		485			458			543		540
Insurance and regulatory		375		384			381			388		380
Office supplies		408		417			372			383		388
Repossessed asset losses (gains), net of expenses		6		20			(129	)		4		(28	)
Loss on early extinguishment of debt		708		379			-			282		-
Other expenses		2,503		2,600			2,474			2,327		3,528
Total Non-Interest Expense	$	18,099	$	18,133		$	17,555		$	17,497	$	18,339



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

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
	December 31			December 31
	2006			2005
	*(Unaudited)*
Assets
Cash and due from banks	$	58,014		$	81,822
Interest-bearing deposits in depository institutions		27,434			4,451
Federal funds sold		25,000			-
Cash and cash equivalents		110,448			86,273

Investment securities available-for-sale, at fair value		472,398			549,966
Investment securities held-to-maturity, at amortized cost		47,500			55,397
Total investment securities		519,898			605,363

Gross loans		1,677,469			1,612,827
Allowance for loan losses		(15,405	)		(16,790	)
Net loans		1,662,064			1,596,037

Bank owned life insurance		55,195			52,969
Premises and equipment		44,689			42,542
Accrued interest receivable		12,337			13,134
Net deferred tax assets		23,652			27,929
Intangible assets		58,857			59,559
Other assets		20,667			18,791
Total Assets	$	2,507,807		$	2,502,597

Liabilities
Deposits:
Noninterest-bearing	$	321,038		$	376,076
Interest-bearing:
Demand deposits		422,925			437,639
Savings deposits		321,075			302,571
Time deposits		920,179			812,134
Total deposits		1,985,217			1,928,420
Short-term borrowings		136,570			152,255
Long-term debt		48,069			98,425
Other liabilities		32,644			31,356
Total Liabilities		2,202,500			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 December 31, 2006 and December 31, 2005
less 1,009,095 and 395,465 shares in treasury, respectively		46,249			46,249
Capital surplus		104,043			104,435
Retained earnings		194,213			160,747
Cost of common stock in treasury		(33,669	)		(11,278	)
Accumulated other comprehensive (loss) income:
Unrealized loss on securities available-for-sale		(2,649	)		(4,839	)
Unrealized loss on derivative instruments		(210	)		-
Underfunded pension liability		(2,670	)		(3,173	)
Total Accumulated Other Comprehensive (Loss) Income		(5,529	)		(8,012	)
Total Stockholders' Equity		305,307			292,141
Total Liabilities and Stockholders' Equity	$	2,507,807		$	2,502,597

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

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

Residential real estate	$	598,502	$	604,867	$	601,097	$	595,093		$	592,521
Home equity		321,708		318,666		313,301		304,559			301,728
Commercial, financial, and agriculture		698,719		713,933		668,581		643,269			629,670
Installment loans to individuals		42,943		41,215		42,307		54,287			58,652
Previously securitized loans		15,597		18,520		22,253		25,918			30,256
Gross Loans	$	1,677,469	$	1,697,201	$	1,647,539	$	1,623,126		$	1,612,827







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		15.6		9.4		42	%
		2007		10.9		6.2		47	%
		2008		8.5		4.6		47	%
		2009		7.2		3.8		47	%

(a) 2005 and 2006 amounts are based on actual results. 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 December 31,
				2006								2005
	Average					Yield/			Average					Yield/
	Balance			Interest		Rate			Balance			Interest		Rate

Assets:
Loan portfolio:
Residential real estate	$	600,372		$	8,853		5.85	%	$	595,309		$	8,365		5.57	%
Home equity		320,302			6,439		7.98	%		303,977			5,318		6.94	%
Commercial, financial, and agriculture		710,467			13,584		7.59	%		626,341			10,928		6.92	%
Installment loans to individuals		41,827			1,297		12.30	%		60,233			1,739		11.45	%
Previously securitized loans		16,878			1,984		46.64	%		32,851			2,569		31.03	%
Total loans		1,689,846			32,157		7.55	%		1,618,711			28,919		7.09	%
Securities:
Taxable		494,380			6,800		5.46	%		580,845			7,187		4.91	%
Tax-exempt		40,006			650		6.45	%		47,675			766		6.37	%
Total securities		534,386			7,450		5.53	%		628,520			7,953		5.02	%
Deposits in depository institutions		37,827			459		4.81	%		5,188			36		2.75	%
Federal funds sold		5,989			87		5.76	%		-			-		-
Total interest-earning assets		2,268,048			40,153		7.02	%		2,252,419			36,908		6.50	%
Cash and due from banks		49,068								52,828
Bank premises and equipment		44,073								42,432
Other assets		172,709								168,395
Less: Allowance for loan losses		(15,631	)							(17,272	)
Total assets	$	2,518,267							$	2,498,802

Liabilities:
Interest-bearing demand deposits		426,536			1,367		1.27	%		442,130			1,207		1.08	%
Savings deposits		316,734			1,207		1.51	%		302,904			684		0.90	%
Time deposits		915,041			9,969		4.32	%		809,433			6,678		3.27	%
Short-term borrowings		125,448			1,304		4.12	%		159,185			1,049		2.61	%
Long-term debt		74,200			973		5.20	%		114,590			1,446		5.01	%
Total interest-bearing liabilities		1,857,959			14,820		3.16	%		1,828,242			11,064		2.40	%
Noninterest-bearing demand deposits		323,500								347,777
Other liabilities		31,153								26,287
Stockholders' equity		305,655								296,496
Total liabilities and
stockholders' equity	$	2,518,267							$	2,498,802
Net interest income				$	25,333							$	25,844
Net yield on earning assets							4.43	%							4.55	%

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

	Twelve Months Ended December 31,
				2006								2005
	Average					Yield/			Average					Yield/
	Balance			Interest		Rate			Balance			Interest		Rate

Assets:
Loan portfolio:
Residential real estate	$	598,017		$	34,483		5.77	%	$	545,280		$	30,570		5.61	%
Home equity		311,854			24,384		7.82	%		305,525			19,088		6.25	%
Commercial, financial, and agriculture		670,243			50,165		7.48	%		564,612			36,287		6.43	%
Installment loans to individuals		47,477			5,507		11.60	%		56,091			6,368		11.35	%
Previously securitized loans		22,273			9,406		42.23	%		42,859			11,401		26.60	%
Total loans		1,649,864			123,945		7.51	%		1,514,367			103,714		6.85	%
Securities:
Taxable		539,634			28,418		5.27	%		623,155			29,804		4.78	%
Tax-exempt		42,113			2,741		6.51	%		43,767			2,904		6.64	%
Total securities		581,747			31,159		5.36	%		666,922			32,708		4.90	%
Loans held for sale		2,496			322		12.90	%		-			-		-
Deposits in depository institutions		30,633			1,478		4.82	%		4,609			109		2.36	%
Federal funds sold		3,433			179		5.21	%		105			4		3.81	%
Total interest-earning assets		2,268,173			157,083		6.93	%		2,186,003			136,535		6.25	%
Cash and due from banks		50,571								48,562
Bank premises and equipment		43,111								39,109
Other assets		171,214								145,899
Less: Allowance for loan losses		(16,008	)							(17,515	)
Total assets	$	2,517,061							$	2,402,058

Liabilities:
Interest-bearing demand deposits		433,244			5,284		1.22	%		433,831			3,866		0.89	%
Savings deposits		314,732			3,983		1.27	%		295,045			2,070		0.70	%
Time deposits		877,592			34,779		3.96	%		743,725			22,869		3.07	%
Short-term borrowings		143,705			5,099		3.55	%		157,264			3,369		2.14	%
Long-term debt		85,893			4,579		5.33	%		137,340			6,264		4.56	%
Total interest-bearing liabilities		1,855,166			53,724		2.90	%		1,767,205			38,438		2.18	%
Noninterest-bearing demand deposits		335,089								341,873
Other liabilities		29,840								28,026
Stockholders' equity		296,966								264,954
Total liabilities and
stockholders' equity	$	2,517,061							$	2,402,058
Net interest income				$	103,359							$	98,097
Net yield on earning assets							4.56	%							4.49	%

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

	Dec 31			Sept 30			June 30			March 31			Dec 31
	2006 (a)			2006			2006			2006			2005

Tier I Capital:
Stockholders' equity	$	305,307		$	298,327		$	284,120		$	288,376		$	292,141
Goodwill and other intangibles		(58,857	)		(59,038	)		(59,219	)		(59,378	)		(59,559	)
Accumulated other comprehensive income		2,859			4,109			9,762			6,265			8,012
Qualifying trust preferred stock		16,000			22,000			25,500			25,500			28,000
Excess deferred tax assets		-			-			(4,079	)		(2,254	)		(1,071	)
Total tier I capital	$	265,309		$	265,398		$	256,084		$	258,509		$	267,523


Total Risk-Based Capital:
Tier I capital	$	265,309		$	265,398		$	256,084		$	258,509		$	267,523
Qualifying allowance for loan losses		15,405			15,557			15,268			16,818			16,790
Total risk-based capital	$	280,714		$	280,955		$	271,352		$	275,327		$	284,313

Net risk-weighted assets	$	1,734,214		$	1,770,458		$	1,757,720		$	1,743,243		$	1,735,538


Ratios:
Average stockholders' equity to average assets		12.14	%		11.67	%		11.51	%		11.87	%		11.87	%
Tangible capital ratio		10.06	%		9.69	%		9.13	%		9.24	%		9.52	%
Risk-based capital ratios:
Tier I capital		15.30	%		14.99	%		14.58	%		14.83	%		15.41	%
Total risk-based capital		16.19	%		15.87	%		15.45	%		15.80	%		16.38	%
Leverage capital		10.79	%		10.81	%		10.34	%		10.62	%		10.97	%


(a) December 31, 2006 risk-based capital ratios are estimated.


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

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

Intangibles, net	$	58,857		$	59,038		$	59,219		$	59,378		$	59,559
Intangibles amortization expense		181			181			181			181			183

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

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

Balance at beginning of period	$	15,557		$	15,268		$	16,818		$	16,790		$	17,768

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

Charge-offs:
Commercial, financial, and agricultural		844			207			43			185			527
Real estate-mortgage		230			177			232			296			302
Installment loans to individuals		126			165			239			368			664
Overdraft deposit accounts		892			1,018			955			958			996
Total charge-offs		2,092			1,567			1,469			1,807			2,489

Recoveries:
Commercial, financial, and agricultural		101			44			33			32			30
Real estate-mortgage		350			64			56			105			188
Installment loans to individuals		118			131			151			198			163
Overdraft deposit accounts		470			392			372			500			330
Total recoveries		1,039			631			612			835			711

Net charge-offs		1,053			936			857			972			1,778
Provision for loan losses		901			1,225			675			1,000			800
Balance at end of period	$	15,405		$	15,557		$	15,268		$	16,818		$	16,790

Loans outstanding	$	1,677,469		$	1,697,201		$	1,647,539		$	1,623,126		$	1,612,827
Average loans outstanding		1,689,846			1,662,929			1,630,454			1,615,242			1,618,711
Allowance as a percent of loans outstanding		0.92	%		0.92	%		0.93	%		1.04	%		1.04	%
Allowance as a percent of non-performing loans		384.93	%		408.43	%		408.02	%		503.53	%		401.96	%
Net charge-offs (annualized) as a
percent of average loans outstanding		0.25	%		0.23	%		0.21	%		0.24	%		0.44	%
Net charge-offs, excluding overdraft deposit
accounts, (annualized) as a percent of average loans outstanding		0.15	%		0.07	%		0.07	%		0.13	%		0.27	%

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

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

Nonaccrual loans	$	3,319		$	3,359		$	3,046		$	2,743		$	2,785
Accruing loans past due 90 days or more		635			328			573			512			1,124
Previously securitized loans past due 90 days or more		48			122			123			85			268
Total non-performing loans		4,002			3,809			3,742			3,340			4,177
Other real estate owned, excluding property associated
with previously securitized loans		161			499			294			403			135
Other real estate owned associated with previously
securitized loans		20			20			92			306			-
		181			519			386			709			135
Total non-performing assets	$	4,183		$	4,328		$	4,128		$	4,049		$	4,312

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