ex99-1.htm

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 $51.0 million, or diluted earnings per share of $3.01, for the year ended December 31, 2007 compared to $53.2 million, or diluted earnings per share of $2.99 during 2006. Diluted earnings per share increased slightly (0.7%) despite an increase in the Company’s provision for loan losses from $3.8 million in 2006 (or 23 basis points of average loans outstanding) to $5.4 million in 2007 (or 31 basis points of average loans outstanding) and a decrease of $2.1 million in interest income from previously securitized loans. Return on assets for the full year was 2.03%, return on tangible equity was 21.0%, the net interest margin was 4.34%, and the efficiency ratio was 45.9%.

Charles Hageboeck, Chief Executive Officer and President, stated, “In what has been a generally difficult operating environment in 2007, City’s performance has been solid. Many of City’s peers have announced lower earnings associated with sub-prime mortgage lending, reduced market valuations within their investment portfolios, write-offs of goodwill associated with acquisitions, etc. In contrast, City’s performance exhibited solid loan growth, strong capital and liquidity, solid growth in non-interest income, a net interest margin that has remained unchanged for three quarters in a row, stable expenses, and stable net loan losses. Following trends within the industry, City has experienced an increase in non-performing loans and past-due loans, predominantly focused in residential real-estate, home equity lending, and residential construction lending. Given trends within the industry, City has performed well. As a result, City’s stock price has held up better than most other banks of its size, and we believe that City remains extremely well positioned to continue its strategy of high performance and reasonable growth within its geographic markets.

The Company is one of the most profitable banks in the industry as measured by its return on assets of 2.03%. Diluted earnings per share exceeded 2006 despite headwinds from a higher provision for loan losses, a decrease in interest income of $2.1 million associated with run-off of the legacy portfolio of previously securitized loans, and a decrease in income associated with our retail credit card portfolio and merchant card portfolios of $1.5 million due to the sales of these portfolios.

The two largest sources of non-interest income – branch service charges and insurance revenues – both showed solid growth in 2007, and the Company has continued to recruit additional talent to strengthen our ability to compete, and grow effectively in our primary markets. Although the Company’s nonperforming assets increased during the year, our low levels of net charge-offs excluding overdraft depository accounts of 0.07% in 2007 compares favorably to prior years and past due loans remain low at only 0.64% of total loans.

Beyond maintaining its financial performance, the Company has embarked upon strategies to grow the franchise in 2007. The Company opened a new 7,500 square foot office in Martinsburg, WV that serves as the headquarters for the bank’s presence in the eastern panhandle of West Virginia, opened a new branch facility in Princeton, WV, and a new in-store branch in Ripley, WV. In addition, we continued to acquire additional parcels of land for future branch expansion and plan to start construction of a new location in Hurricane, WV during the second quarter of 2008.”

The Company’s tax equivalent net interest income decreased $5.4 million, or 5.2%, from $103.4 million in 2006 to $97.9 million in 2007. This decrease is primarily attributable to two factors. First, the Company experienced a decrease of $2.1 million in interest income from previously securitized loans for the year ended December 31, 2007 as compared to the year ended December 31, 2006 as the average balance of these loans decreased 52.8%. The decrease in average balances was partially mitigated by an increase in the yield on these loans from 42.2% for the year ended December 31, 2006 to 69.1% for the year ended December 31, 2007 (see Previously Securitized Loans).

Secondly, the Company’s reported net interest margin experienced compression to 4.34% for the year ended December 31, 2007 as compared to 4.56% for the year ended December 31, 2006. Excluding Previously Securitized Loans and the sale of the Company’s retail credit card portfolio during the third quarter of 2006, the Company’s net interest margin, decreased from 4.22% for the year ended December 31, 2006 to 4.08% for the year ended December 31, 2007 resulting in a reduction of approximately $2.9 million in net interest income. While the average yield on the Company’s loans (net of Previously Securitized Loans) increased from 6.99% for the year ended December 31, 2006 to 7.11% for the year ended December 31, 2007, the average cost of interest bearing liabilities increased from 2.84% for the year ended December 31, 2006 to 3.19% for the year ended December 31, 2007. The increase in the average cost of interest bearing liabilities can in turn be linked to an increase in the cost of time deposits of 52 basis points between the years ended December 31, 2006 and 2007.

The Company’s tax equivalent net interest income decreased $1.0 million, or 4.2%, from $25.3 million during the fourth quarter of 2006 to $24.3 million during the fourth quarter of 2007. This decrease is attributable to two factors. First, the Company experienced a decrease of $0.3 million in interest income from previously securitized loans in the fourth quarter of 2007 as compared to the fourth quarter of 2006 as the average balance of these loans decreased 56.4%. The decrease in average balances was partially mitigated by an increase in the yield on these loans from 46.6% for the fourth quarter of 2006 to 93.2% for the fourth quarter of 2007 (see Previously Securitized Loans).

Secondly, the Company’s reported net interest margin experienced compression to 4.32% in the fourth quarter of 2007 as compared to 4.43% in the fourth quarter of 2006. The Company’s net interest margin exclusive of Previously Securitized Loans decreased from 4.20% for the fourth quarter of 2006 to 4.05% for the fourth quarter of 2007 resulting in the reduction of approximately $1.1 million in net interest income. The average yield on the Company’s loans (exclusive of Previously Securitized Loans) decreased from 7.14% in the fourth quarter of 2006 to 7.04% in the fourth quarter of 2007, while the average cost of interest bearing liabilities increased from 3.08% in the fourth quarter of 2006 to 3.16% in the fourth quarter of 2007. The increase in the average cost of interest bearing liabilities can in turn be linked to an increase in the cost of time deposits of 16 basis points between the fourth quarters of 2006 and 2007.

As a result of the Company’s quarterly analysis of the adequacy of the ALLL, the Company recorded a provision for loan losses of $1.7 million in the fourth quarter of 2007 and $5.4 million for the year ended December 31, 2007 compared to $0.9 million and $3.8 million for the comparable periods in 2006. The provision for loan losses recorded during 2007 reflects difficulties encountered by certain commercial borrowers of the Company during the year, the downgrade of their related credits and management’s assessment of the impact of these difficulties on the ultimate collectibility of the loans. Additionally, the provision reflects an increase in the balance of commercial loans during the year. Changes in the amount of the provision and related allowance are based on the Company’s detailed methodology and are directionally consistent with changes in credit quality, growth, and 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.

The Company’s ratio of non-performing assets to total loans and other real estate owned increased from 0.25% at December 31, 2006 to 1.20% at December 31, 2007 as a result of the downgrade of certain credit relationships mentioned earlier. The Company’s ratio at September 30, 2007 was 1.23%. This increase is attributable primarily to the difficulties encountered by certain commercial customers during 2007 and their related borrowings have been classified as substandard. Approximately 70% of the nonperforming loans at December 31, 2007 are due to a softening of the real estate market in Southeastern West Virginia. The remainder of the nonperforming loans are unrelated. Based on our analysis, the Company believes that the reserves allocated to the substandard loans and the value of the collateral securing such loans are adequate to cover losses that may result from these loans. While the Company’s non-performing assets have increased, our ratio of non-performing assets to total loans and other real estate owned continues to approximate that of our 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 of 1.15% for the most recently reported quarter ended September 30, 2007.

The Company had net charge-offs of $1.0 million for the fourth quarter of 2007, with depository accounts representing $0.5 million (or approximately 51%) 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 residential loans were $0.3 million and $0.2 million, respectively, for the fourth quarter, while installment loans experienced no net charge-offs during the quarter. The increase in charge-offs on commercial loans was primarily related to one credit that had been appropriately considered in establishing the allowance for loan losses in prior periods. Trends with respect to net charge-offs are improving, with annualized net charge-offs related to loans (excluding overdrafts) of 0.07% for 2007, as compared with 0.11% for 2006 and 0.22% for 2005.

For the full year, exclusive of investment securities gains /(losses) and the gain from the sale of the Company’s retail credit card portfolio and merchant credit card agreements, non-interest income increased $2.0 million, or 3.7%, from $52.6 million in 2006 to $54.6 million in 2007. Service charges from depository accounts increased $1.8 million, or 4.4%, from $42.6 million in 2006 to $44.4 million in 2007. Insurance commission revenues increased $1.8 million, or 75.2% due to the hiring of additional staff by City Insurance to provide worker’s compensation insurance to West Virginia businesses and to bolster the Company’s team of insurance agents focused on selling directly to retail customers. Partially off-setting these increases was a decrease in other income of $1.7 million due to lower credit card fee income as a result of the sale of the retail credit card portfolio during the third quarter of 2006 and the sale of the merchant credit card processing agreements during the first quarter of 2007.

Exclusive of investment security gains, non-interest income increased $0.8 million to $14.3 million in the fourth quarter of 2007 as compared to $13.5 million in the fourth quarter of 2006. The largest source of non-interest income is service charges from depository accounts, which increased $0.7 million, or 7.1%, from $11.0 million during the fourth quarter of 2006 to $11.7 million during the third quarter of 2007. Insurance commission revenues increased $0.4 million, or 65.8% due to the hiring of additional staff by City Insurance to provide worker’s compensation insurance to West Virginia businesses and to bolster the Company’s team of insurance agents focused on selling directly to retail customers. Partially off-setting these increases was a decrease in other income of $0.5 million that was primarily due to the sale of the merchant credit card processing agreements during the first quarter of 2007.

For the full year, non-interest expenses increased $1.1 million, or 1.6%, from $69.9 million in 2006 to $71.0 million in 2007, excluding $1.4 million of recognized losses from the redemption of $12.0 million of trust preferred securities during 2006. Salaries and employee benefits increased $1.5 million, or 4.5%, from 2006 due in part to additional staffing for new retail locations and insurance personnel to support the introduction of worker’s compensation insurance. Bankcard expenses increased $0.4 million, or 19.9%, due to increased usage by customers. These increases were partially offset by a $0.5 million decrease in other expenses. The decrease in other expenses was due to a $1.4 million decrease as a result of the sales of the retail and merchant card portfolios. That decrease was partially offset by a $1.0 million charge related to the Company’s proportionate share of certain losses incurred by Visa U.S.A. Inc. (see Visa U.S.A. Inc.).

Non-interest expenses decreased $0.2 million from $18.1 million in the fourth quarter of 2006 to $17.9 million in the fourth quarter of 2007. Net of charges of $0.7 million related to the redemption of $6.0 million of the Company’s trust preferred securities, non-interest expenses increased $0.5 million (or 2.7%) to $17.9 million in the fourth quarter of 2007 as compared to $17.4 million in the fourth quarter of 2006. Salaries and employee benefits increased $0.4 million, or 4.8%, from the fourth quarter of 2006 due to additional staffing and other expenses increased $0.4 million, or 15.5%. The increase in other expenses was caused by a $1.0 million charge related to the Company’s proportionate share of certain losses incurred by Visa U.S.A. Inc. (see Visa U.S.A. Inc.) that was partially offset by a decrease of $0.3 million decrease in other taxes during the quarter. These increases were partially offset by decreases in advertising of $0.3 million, or 32.6%.

As a result of the Company’s membership interest in Visa U.S.A. Inc. (“Visa”), the Company was allocated expense of approximately $1.0 million in connection with pending and settled antitrust litigation against Visa during the fourth quarter of 2007. The litigation relates to an antitrust lawsuit brought by American Express against Visa that originated in 2004 and settled as of November 9, 2007, and litigation brought by Discover Financial Services (“Discover”) against Visa. Visa has described the aforementioned litigation matters and settlement with American Express in filings with the Securities and Exchange Commission. City is not a named defendant in either of the aforementioned lawsuits and, therefore, will not be directly liable for any amount of the settlement. However, in accordance with Visa’s by-laws, City may be required to share in certain losses incurred by Visa above and beyond the amounts described above.

On October 3, 2007, Visa announced that it had completed restructuring transactions in preparation for its initial public offering (“IPO”), which is expected to occur in the first half of 2008. As part of this restructuring, the Company received approximately 150,000 Class USAshares of Visa common stock. It is anticipated that some of these shares will be redeemed as part of the IPO with the remaining shares converted to Class A shares on the third anniversary of the IPO or upon Visa’s settlement of certain litigation matters, whichever is later. Visa is expected to apply a portion of the proceeds from the IPO to fund an escrow account to cover certain litigation judgments and settlements. The Company anticipates that Visa’s escrow account will be sufficient to settle such litigation judgments and settlements with American Express and Discover. The Company also expects that, if and when Visa’s IPO occurs, the Company would no longer share any liability in connection with such litigation, and would realize recovery of the expense recorded by the Company prior to the IPO.

At December 31, 2007, the Company reported “Previously Securitized Loans” of $6.9 million compared to $15.6 million at December 31, 2006, representing a decrease of 55.8%. The yield on the previously securitized loans was 93.2% for the quarter ended December 31, 2007, compared to 82.9% for the quarter ended September 30, 2007, and 46.6% for the quarter ended December 31, 2006. 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 experienced net recoveries but does not believe that the trend of net recoveries can be sustained indefinitely.

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 88.8% and the loan to asset ratio was 71.2% at December 31, 2007. The Company maintained investment securities totaling 16.8% of assets as of this date. Further, the Company’s deposit mix is weighted heavily toward checking and saving accounts that fund 42.8% of assets at December 31, 2007. Time deposits fund 37.4% of assets at December 31, 2007, 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 repurchased 890,600 common shares at a weighted average price of $37.39 as part of a one million share repurchase plan authorized by the Board of Directors in December 2006. On August 21, 2007, 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 December 2006.

As a result of repurchases completed in 2007, the Company’s outstanding shares decreased 1,314,112 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, 2008, the Company has approximately 512,000 shares remaining for repurchase under the plan approved by the Board of Directors in August 2007. The repurchase of 1,314,112 shares during 2007 represents 7.5% of total shares outstanding as of December 31, 2006. The Company’s tangible equity ratio was 9.7% at December 31, 2007 compared with a tangible equity ratio of 10.1% at December 31, 2006.

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 December 31,						Percent
	2007			2006			Change

Earnings ($000s, except per share data):
Net Interest Income (FTE)	$	24,264		$	25,333			(4.22	)%
Net Income		12,758			12,939			(1.40	)%
Earnings per Basic Share		0.78			0.74			5.41	%
Earnings per Diluted Share		0.78			0.74			5.41	%


Key Ratios (percent):
Return on Average Assets		2.05	%		2.06	%		(0.36	)%
Return on Average Tangible Equity		21.56	%		20.98	%		2.76	%
Net Interest Margin		4.32	%		4.43	%		(2.62	)%
Efficiency Ratio		46.15	%		46.40	%		(0.54	)%
Average Shareholders' Equity to Average Assets		11.84	%		12.14	%		(2.49	)%

Consolidated Risk Based Capital Ratios (a):
Tier I		14.12	%		15.30	%		(7.71	)%
Total		15.11	%		16.19	%		(6.67	)%

Average Tangible Equity to Average Tangible Assets		9.72	%		10.06	%		(3.38	)%


Common Stock Data:
Cash Dividends Declared per Share	$	0.31		$	0.28			10.71	%
Book Value per Share		18.14			17.46			3.92	%
Tangible Book Value per Share		14.55			14.09			3.24	%
Market Value per Share:
High		39.15			41.87			(6.50	)%
Low		33.41			37.49			(10.88	)%
End of Period		33.84			40.89			(17.24	)%

Price/Earnings Ratio (b)		10.85			13.81			(21.49	)%
	Twelve Months Ended December 31						Percent
	2007			2006			Change

Earnings ($000s, except per share data):
Net Interest Income (FTE)	$	97,947		$	103,359			(5.24	)%
Net Income		51,026			53,187			(4.06	)%
Earnings per Basic Share		3.02			3.00			0.67	%
Earnings per Diluted Share		3.01			2.99			0.67	%


Key Ratios (percent):
Return on Average Assets		2.03	%		2.11	%		(3.87	)%
Return on Average Tangible Equity		20.99	%		22.37	%		(6.19	)%
Net Interest Margin		4.34	%		4.56	%		(4.79	)%
Efficiency Ratio		45.91	%		44.49	%		3.20	%
Average Shareholders' Equity to Average Assets		12.01	%		11.80	%		1.78	%


Common Stock Data:
Cash Dividends Declared per Share	$	1.24		$	1.12			10.71	%
Market Value per Share:
High		41.54			41.87			(0.79	)%
Low		31.16			34.53			(9.76	)%

(a) December 31, 2007 risk-based capital ratios are estimated
(b) December 31, 2007 price/earnings ratio computed based on annualized fourth quarter 2007 earnings

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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

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
2007		17.62		17.40		17.68		18.14		31.16		41.54


Earnings per Basic Share

	Quarter Ended
	March 31		June 30		September 30		December 31		Year-to-Date

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
2007		0.76		0.72		0.76		0.78		3.02


Earnings per Diluted Share

	Quarter Ended
	March 31		June 30		September 30		December 31		Year-to-Date

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
2007		0.76		0.72		0.76		0.78		3.01

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

	Three Months Ended December 31,
	2007			2006

Interest Income
Interest and fees on loans	$	32,477		$	32,157
Interest on investment securities:
Taxable		5,968			6,800
Tax-exempt		420			423
Interest on deposits in depository institutions		119			459
Interest on federal funds sold		5			86
Total Interest Income		38,989			39,925

Interest Expense
Interest on deposits		12,847			12,543
Interest on short-term borrowings		1,677			1,304
Interest on long-term debt		426			973
Total Interest Expense		14,950			14,820
Net Interest Income		24,039			25,105
Provision for loan losses		1,650			901
Net Interest Income After Provision for Loan Losses		22,389			24,204

Non-Interest Income
Investment securities gains		1			72
Service charges		11,735			10,962
Insurance commissions		1,119			675
Trust and investment management fee income		514			498
Bank owned life insurance		600			576
Other income		312			803
Total Non-Interest Income		14,281			13,586

Non-Interest Expense
Salaries and employee benefits		8,759			8,354
Occupancy and equipment		1,604			1,655
Depreciation		1,133			1,037
Professional fees		424			415
Postage, delivery, and statement mailings		601			735
Advertising		590			876
Telecommunications		456			549
Bankcard expenses		617			478
Insurance and regulatory		422			375
Office supplies		469			408
Repossessed asset (gains) losses, net of expenses		(105	)		6
Loss on early extinguishment of debt		-			708
Other expenses		2,891			2,503
Total Non-Interest Expense		17,861			18,099
Income Before Income Taxes		18,809			19,691
Income tax expense		6,051			6,752
Net Income	$	12,758		$	12,939

Basic earnings per share	$	0.78		$	0.74
Diluted earnings per share	$	0.78		$	0.74
Average Common Shares Outstanding:
Basic		16,359			17,535
Diluted		16,414			17,601

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

	Twelve months ended December 31
	2007			2006

Interest Income
Interest and fees on loans	$	128,609		$	123,945
Interest on investment securities:
Taxable		25,677			28,418
Tax-exempt		1,689			1,782
Interest on loans held for sale		-			322
Interest on deposits in depository institutions		521			1,477
Interest on federal funds sold		819			179
Total Interest Income		157,315			156,123

Interest Expense
Interest on deposits		51,826			44,046
Interest on short-term borrowings		6,642			5,099
Interest on long-term debt		1,808			4,579
Total Interest Expense		60,276			53,724
Net Interest Income		97,039			102,399
Provision for loan losses		5,350			3,801
Net Interest Income After Provision for Loan Losses		91,689			98,598

Non-Interest Income
Investment securities gains (losses)		45			(1,995	)
Service charges		44,416			42,559
Insurance commissions		4,090			2,335
Trust and investment management fee income		2,042			2,140
Bank owned life insurance		2,477			2,352
Gain on sale of credit card merchant agreements		1,500			3,563
Other income		1,566			3,249
Total Non-Interest Income		56,136			54,203

Non-Interest Expense
Salaries and employee benefits		36,034			34,484
Occupancy and equipment		6,366			6,481
Depreciation		4,472			4,219
Professional fees		1,628			1,760
Postage, delivery, and statement mailings		2,588			2,832
Advertising		3,123			3,216
Telecommunications		1,809			2,048
Bankcard expenses		2,354			1,964
Insurance and regulatory		1,555			1,528
Office supplies		1,838			1,578
Repossessed asset (gains), net of expenses		(157	)		(98	)
Loss on early extinguishment of debt		-			1,368
Other expenses		9,403			9,905
Total Non-Interest Expense		71,013			71,285
Income Before Income Taxes		76,812			81,516
Income tax expense		25,786			28,329
Net Income	$	51,026		$	53,187

Basic earnings per share	$	3.02		$	3.00
Diluted earnings per share	$	3.01		$	2.99
Average Common Shares Outstanding:
Basic		16,877			17,701
Diluted		16,935			17,762

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


	Three Months Ended
	December 31, 2007			December 31, 2006

Balance at October 1	$	291,720		$	298,327

Net income		12,758			12,939
Other comprehensive income:
Change in unrealized gain on securities available-for-sale		783			1,913
Change in underfunded pension liability		696			503
Change in unrealized gain on interest rate floors		3,550			(663	)
Cash dividends declared ($0.31/share)		(5,025	)		-
Cash dividends declared ($0.28/share)		-			(4,896	)
Issuance of stock award shares, net		56			13
Exercise of 6,488 stock options		-			145
Excess tax benefits on stock compensation		-			47
Purchase of 300,112 common shares of treasury		(10,544	)		-
Purchase of 76,700 common shares of treasury		-			(3,021	)
Balance at December 31	$	293,994		$	305,307



	Twelve Months Ended
	December 31, 2007			December 31, 2006

Balance at January 1	$	305,307		$	292,141

Cumulative effect of adopting FIN 48		(125	)		-
Net income		51,026			53,187
Other comprehensive income:
Change in unrealized gain on securities available-for-sale		866			2,190
Change in unrealized gain on interest rate floors		4,600			(210	)
Change in underfunded pension liability		696			503
Cash dividends declared ($1.24/share)		(20,728	)		-
Cash dividends declared ($1.12/share)		-			(19,721	)
Issuance of stock award shares, net		427			484
Exercise of 7,300 stock options		154			-
Exercise of 46,423 stock options		-			798
Excess tax benefits on stock compensation		3			269
Purchase of 1,314,112 common shares of treasury		(48,232	)		-
Purchase of 666,753 common shares of treasury		-			(24,334	)
Balance at December 31	$	293,994		$	305,307

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
	2007			2007			2007			2007			2006

Interest income	$	38,989		$	39,597		$	39,530		$	39,198		$	39,925
Taxable equivalent adjustment		226			224			231			230			228
Interest income (FTE)		39,215			39,821			39,761			39,428			40,153
Interest expense		14,950			15,374			15,196			14,756			14,820
Net interest income		24,265			24,447			24,565			24,672			25,333
Provision for loan losses		1,650			1,200			1,600			900			901
Net interest income after provision
for loan losses		22,615			23,247			22,965			23,772			24,432

Noninterest income		14,281			13,814			13,689			14,371			13,586
Noninterest expense		17,861			18,031			17,525			17,616			18,099
Income before income taxes		19,035			19,030			19,129			20,527			19,919
Income tax expense		6,051			6,092			6,576			7,066			6,752
Taxable equivalent adjustment		226			224			231			230			228
Net income	$	12,758		$	12,714		$	12,322		$	13,231		$	12,939



Basic earnings per share	$	0.78		$	0.76		$	0.72		$	0.76		$	0.74
Diluted earnings per share		0.78			0.76			0.72			0.76			0.74
Cash dividends declared per share		0.31			0.31			0.31			0.31			0.28


Average Common Share (000s):
Outstanding		16,359			16,714			17,100			17,369			17,535
Diluted		16,414			16,767			17,158			17,424			17,601

Net Interest Margin		4.32	%		4.32	%		4.32	%		4.41	%		4.43	%

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

	Quarter Ended
	Dec. 31			Sept. 30			June 30		Mar 31			Dec. 31
	2007			2007			2007		2007			2006

Non-Interest Income:
Service charges	$	11,735		$	11,192		$	11,426	$	10,063		$	10,962
Insurance commissions		1,119			1,127			832		1,012			675
Trust and investment management fee income		514			523			437		568			498
Bank owned life insurance		600			596			585		696			576
Other income		312			377			364		513			803
Subtotal		14,280			13,815			13,644		12,852			13,514
Investment securities gains (losses)		1			(1	)		45		-			72
Gain on sale of credit card merchant agreements		-			-			-		1,500			-
Total Non-Interest Income	$	14,281		$	13,814		$	13,689	$	14,352		$	13,586

Non-Interest Expense:
Salaries and employee benefits	$	8,759		$	9,307		$	8,912	$	9,057		$	8,354
Occupancy and equipment		1,604			1,600			1,525		1,637			1,655
Depreciation		1,133			1,160			1,109		1,070			1,037
Professional fees		424			416			385		403			415
Postage, delivery, and statement mailings		601			641			569		777			735
Advertising		590			801			880		852			876
Telecommunications		456			438			460		455			549
Bankcard expenses		617			623			597		518			478
Insurance and regulatory		422			364			383		385			375
Office supplies		469			472			442		455			408
Repossessed asset (gains) losses, net of expenses		(105	)		(47	)		9		(14	)		6
Loss on early extinguishment of debt		-			-			-		-			708
Other expenses		2,891			2,256			2,254		2,002			2,503
Total Non-Interest Expense	$	17,861		$	18,031		$	17,525	$	17,597		$	18,099




Employees (Full Time Equivalent)		811			808			807		791			779
Branch Locations		69			68			68		68			67

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
	December 31			December 31
	2007			2006
	(Unaudited)
Assets
Cash and due from banks	$	64,726		$	58,014
Interest-bearing deposits in depository institutions		9,792			27,434
Federal funds sold		-			25,000
Cash and cash equivalents		74,518			110,448

Investment securities available-for-sale, at fair value		382,098			472,398
Investment securities held-to-maturity, at amortized cost		34,918			47,500
Total investment securities		417,016			519,898

Gross Loans		1,767,021			1,677,469
Allowance for loan losses		(17,581	)		(15,405	)
Net loans		1,749,440			1,662,064

Bank owned life insurance		64,467			55,195
Premises and equipment		54,635			44,689
Accrued interest receivable		11,254			12,337
Net deferred tax assets		20,633			23,652
Intangible assets		58,238			58,857
Other assets		32,566			20,667
Total Assets	$	2,482,767		$	2,507,807

Liabilities
Deposits:
Noninterest-bearing	$	314,231		$	321,038
Interest-bearing:
Demand deposits		397,510			422,925
Savings deposits		350,607			321,075
Time deposits		927,733			920,179
Total deposits		1,990,081			1,985,217
Short-term borrowings		145,080			136,570
Long-term debt		21,809			48,069
Other liabilities		31,803			32,644
Total Liabilities		2,188,773			2,202,500

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, 2007 and December 31, 2006
less 2,292,357 and 1,009,095 shares in treasury, respectively		46,249			46,249
Capital surplus		103,390			104,043
Retained earnings		224,386			194,213
Cost of common stock in treasury		(80,664	)		(33,669	)
Accumulated other comprehensive income (loss):
Unrealized loss on securities available-for-sale		(1,783	)		(2,649	)
Unrealized gain (loss) on derivative instruments		4,390			(210	)
Underfunded pension liability		(1,974	)		(2,670	)
Total Accumulated Other Comprehensive Income (Loss)		633			(5,529	)
Total Stockholders' Equity		293,994			305,307
Total Liabilities and Stockholders' Equity	$	2,482,767		$	2,507,807

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

	Dec 31		Sept 30		June 30		March 31			Dec 31
	2007		2007		2007		2007			2006

Residential real estate	$	602,057	$	600,094	$	601,045	$	596,412		$	598,502
Home equity		341,818		338,161		330,203		324,653			321,708
Commercial, financial, and agriculture		707,987		666,960		681,388		663,183			673,719
Loans to depository institutions		60,000		60,000		60,000		50,000			25,000
Installment loans to individuals		48,267		46,244		47,397		44,756			42,943
Previously securitized loans		6,892		8,317		10,321		12,744			15,597
Gross Loans	$	1,767,021	$	1,719,776	$	1,730,354	$	1,691,748		$	1,677,469






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			6.9		7.3		69	%
	2008			5.0		5.7		91	%
	2009			3.6		4.1		91	%
	2010			3.1		3.2		91	%

a - 2005, 2006, and 2007 amounts are based on actual results. 2008, 2009, and 2010 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 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,
				2007								2006
	Average					Yield/			Average					Yield/
	Balance			Interest		Rate			Balance			Interest		Rate

Assets:
Loan portfolio:
Residential real estate	$	599,087		$	9,429		6.24	%	$	600,372		$	8,853		5.85	%
Home equity		339,783			6,432		7.51	%		320,302			6,439		7.98	%
Commercial, financial, and agriculture		685,292			12,652		7.32	%		683,776			13,223		7.67	%
Loans to depository institutions		60,000			777		5.14	%		26,691			361		5.37	%
Installment loans to individuals		47,645			1,459		12.15	%		41,827			1,297		12.30	%
Previously securitized loans		7,359			1,728		93.16	%		16,878			1,984		46.64	%
Total loans		1,739,166			32,477		7.41	%		1,689,846			32,157		7.55	%
Securities:
Taxable		442,627			5,968		5.35	%		494,380			6,800		5.46	%
Tax-exempt		39,133			645		6.54	%		40,006			650		6.45	%
Total securities		481,760			6,613		5.45	%		534,386			7,450		5.53	%
Deposits in depository institutions		9,322			120		5.11	%		37,827			459		4.81	%
Federal funds sold		435			5		4.56	%		5,989			87		5.76	%
Total interest-earning assets		2,230,683			39,215		6.97	%		2,268,048			40,153		7.02	%
Cash and due from banks		50,695								49,068
Bank premises and equipment		53,006								44,073
Other assets		174,938								172,709
Less: Allowance for loan losses		(17,273	)							(15,631	)
Total assets	$	2,492,049							$	2,518,267

Liabilities:
Interest-bearing demand deposits		404,613			989		0.97	%		426,536			1,367		1.27	%
Savings deposits		346,955			1,446		1.65	%		316,734			1,207		1.51	%
Time deposits		922,671			10,413		4.48	%		915,041			9,969		4.32	%
Short-term borrowings		166,535			1,677		4.00	%		125,448			1,304		4.12	%
Long-term debt		21,828			426		7.74	%		74,200			973		5.20	%
Total interest-bearing liabilities		1,862,602			14,951		3.18	%		1,857,959			14,820		3.16	%
Noninterest-bearing demand deposits		306,108								323,500
Other liabilities		28,350								31,153
Stockholders' equity		294,989								305,655
Total liabilities and
stockholders' equity	$	2,492,049							$	2,518,267
Net interest income				$	24,264							$	25,333
Net yield on earning assets							4.32	%							4.43	%

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

	Twelve Months Ended December 31,
				2007								2006
	Average					Yield/			Average					Yield/
	Balance			Interest		Rate			Balance			Interest		Rate

Assets:
Loan portfolio:
Residential real estate	$	597,216		$	36,573		6.12	%	$	598,017		$	34,483		5.77	%
Home equity		330,997			25,523		7.71	%		311,854			24,384		7.82	%
Commercial, financial, and agriculture		675,598			50,771		7.51	%		661,871			49,716		7.51	%
Loans to depository institutions		57,315			3,048		5.32	%		8,372			449		5.36	%
Installment loans to individuals		46,112			5,426		11.77	%		47,477			5,507		11.60	%
Previously securitized loans		10,518			7,266		69.08	%		22,273			9,406		42.23	%
Total loans		1,717,756			128,607		7.49	%		1,649,864			123,945		7.51	%
Securities:
Taxable		472,438			25,677		5.43	%		539,634			28,418		5.27	%
Tax-exempt		39,623			2,599		6.56	%		42,113			2,741		6.51	%
Total securities		512,061			28,276		5.52	%		581,747			31,159		5.36	%
Loans held for sale		-			-		-			2,496			322		12.90	%
Deposits in depository institutions		11,940			521		4.36	%		30,633			1,478		4.82	%
Federal funds sold		15,690			819		5.22	%		3,433			179		5.21	%
Total interest-earning assets		2,257,447			158,223		7.01	%		2,268,173			157,083		6.93	%
Cash and due from banks		50,675								50,571
Bank premises and equipment		48,929								43,111
Other assets		171,347								171,214
Less: Allowance for loan losses		(16,406	)							(16,008	)
Total assets	$	2,511,992							$	2,517,061

Liabilities:
Interest-bearing demand deposits		418,532			4,766		1.14	%		433,244			5,284		1.22	%
Savings deposits		342,119			5,705		1.67	%		314,732			3,983		1.27	%
Time deposits		922,886			41,355		4.48	%		877,592			34,779		3.96	%
Short-term borrowings		160,338			6,642		4.14	%		143,705			5,099		3.55	%
Long-term debt		24,476			1,808		7.39	%		85,893			4,579		5.33	%
Total interest-bearing liabilities		1,868,351			60,276		3.23	%		1,855,166			53,724		2.90	%
Noninterest-bearing demand deposits		312,567								335,089
Other liabilities		29,435								29,840
Stockholders' equity		301,639								296,966
Total liabilities and
stockholders' equity	$	2,511,992							$	2,517,061
Net interest income				$	97,947							$	103,359
Net yield on earning assets							4.34	%							4.56	%

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

	Dec 31			Sept 30			June 30			March 31			Dec 31
	2007 (a)			2007			2007			2007			2006

Tier I Capital:
Stockholders' equity	$	293,994		$	291,720		$	294,783		$	303,354		$	305,307
Goodwill and other intangibles		(58,238	)		(58,328	)		(58,504	)		(58,681	)		(58,857	)
Accumulated other comprehensive (income) loss		(633	)		4,396			8,647			4,684			2,859
Qualifying trust preferred stock		16,000			16,000			16,000			16,000			16,000
Unrealized Loss on AFS securities		(247	)		(94	)		(97	)		-			-
Excess deferred tax assets		-			-			(342	)		(2,983	)		-
Total tier I capital	$	250,876		$	253,694		$	260,486		$	262,374		$	265,309


Total Risk-Based Capital:
Tier I capital	$	250,876		$	253,694		$	260,486		$	262,374		$	265,309
Qualifying allowance for loan losses		17,581			16,980			16,616			16,082			15,405
Total risk-based capital	$	268,457		$	270,674		$	277,102		$	278,456		$	280,714

Net risk-weighted assets	$	1,776,158		$	1,709,486		$	1,719,540		$	1,712,680		$	1,734,214


Ratios:
Average stockholders' equity to average assets		11.84	%		11.82	%		12.11	%		12.27	%		12.14	%
Tangible capital ratio		9.72	%		9.59	%		9.58	%		9.79	%		10.06	%
Risk-based capital ratios:
Tier I capital		14.12	%		14.84	%		15.15	%		15.32	%		15.30	%
Total risk-based capital		15.11	%		15.83	%		16.11	%		16.26	%		16.19	%
Leverage capital		10.31	%		10.38	%		10.52	%		10.68	%		10.79	%


(a) December 31, 2007 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
	2007			2007			2007			2007			2006

Intangibles, net	$	58,238		$	58,328		$	58,504		$	58,681		$	58,857
Intangibles amortization expense		177			176			177			176			181

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
	2007			2007			2007			2007			2006

Balance at beginning of period	$	16,980		$	16,616		$	16,083		$	15,405		$	15,557

Charge-offs:
Commercial, financial, and agricultural		359			-			120			35			844
Real estate-mortgage		203			240			452			111			230
Installment loans to individuals		108			91			60			84			126
Overdraft deposit accounts		938			1,035			956			860			892
Total charge-offs		1,608			1,366			1,588			1,090			2,092

Recoveries:
Commercial, financial, and agricultural		23			19			41			148			101
Real estate-mortgage		36			22			15			15			350
Installment loans to individuals		97			89			98			132			118
Overdraft deposit accounts		405			400			367			573			470
Total recoveries		561			530			521			868			1,039

Net charge-offs		1,047			836			1,067			222			1,053
Provision for loan losses		1,650			1,200			1,600			900			901
Balance at end of period	$	17,583		$	16,980		$	16,616		$	16,083		$	15,405

Loans outstanding	$	1,767,021		$	1,719,776		$	1,730,354		$	1,691,748		$	1,677,469
Average loans outstanding		1,739,166			1,729,267			1,710,989			1,690,946			1,689,846
Allowance as a percent of loans outstanding		1.00	%		0.99	%		0.96	%		0.95	%		0.92	%
Allowance as a percent of non-performing loans		103.28	%		86.47	%		145.11	%		235.75	%		384.93	%
Net charge-offs (annualized) as a
percent of average loans outstanding		0.24	%		0.19	%		0.25	%		0.05	%		0.25	%
Net charge-offs, excluding overdraft deposit
accounts, (annualized) as a percent of average loans outstanding		0.12	%		0.05	%		0.11	%		(0.02	)%		0.15	%

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

	Dec 31			Sept 30			June 30			March 31			Dec 31
	2007			2007			2007			2007			2006

Nonaccrual loans	$	16,437		$	18,896		$	11,194		$	6,714		$	3,319
Accruing loans past due 90 days or more		390			566			212			108			635
Previously securitized loans past due 90 days or more		198			176			45			-			48
Total non-performing loans		17,025			19,638			11,451			6,822			4,002
Other real estate owned, excluding property associated
with previously securitized loans		4,163			1,091			624			290			161
Other real estate owned associated with previously
securitized loans		-			405			231			252			20
Other real estate owned		4,163			1,496			855			542			181
Total non-performing assets	$	21,188		$	21,134		$	12,306		$	7,364		$	4,183

Non-performing assets as a percent of loans and
other real estate owned		1.20	%		1.23	%		0.71	%		0.44	%		0.25	%



CITY HOLDING COMPANY AND SUBSIDIARIES
Summary of Total Past Due Loans
(Unaudited) ($ in 000s)

	Dec 31			Sept 30			June 30			March 31			Dec 31
	2007			2007			2007			2007			2006

Residential real estate	$	5,480		$	4,500		$	3,354		$	2,372		$	4,534
Home equity		2,141			1,075			879			999			1,083
Commercial, financial, and agriculture		1,506			311			2,248			1,185			2,082
Loans to depository institutions		-			-			-			-			-
Installment loans to individuals		385			279			370			283			389
Previously securitized loans		1,099			948			799			596			1,110
Overdraft deposit accounts		612			575			692			500			652
Total past due loans	$	11,223		$	7,688		$	8,342		$	5,935		$	9,850