ex99-1.htm

Charleston, West Virginia – City Holding Company, “the Company” (NASDAQ:CHCO), a $2.6 billion bank holding company headquartered in Charleston, today announced net income per diluted share for the second quarter of $0.68 compared to $0.64 per diluted share in the second quarter of 2009. Net income for the second quarter of 2010 was $10.7 million compared to $10.1 million in the second quarter of 2009. For the second quarter of 2010, the Company achieved a return on assets of 1.60%, a return on tangible equity of 16.7%, a net interest margin of 4.22%, and an efficiency ratio of 52.0%. For the first six months of 2010, the Company achieved a return on assets of 1.51%, a return on tangible equity of 15.6%, a net interest margin of 4.18%, and an efficiency ratio of 53.4%.

City’s CEO Charles Hageboeck stated that, “Although the U.S. economy and financial sector are showing early signs of moderate recovery, City’s financial performance continues to be strong compared to our peers in the banking industry. City continues to be one of the most profitable banks in the industry with return on assets of 1.61% and our asset quality remains strong and stable. Excluding the impact of interest income from our interest rate floors and nonrecurring interest income of $1.1 million related to a change in estimate associated with our previously securitized loans, our net interest income increased $0.2 million from the quarter ended March 31, 2010 and $1.6 million from the quarter ended June 30, 2009. We saw loans and deposits grow during the quarter and our expenses remained well controlled. Total loan balances increased $47 million (2.6%) from June 30, 2009 to June 30, 2010, while total average demand deposit balances increased $62.6 million (8.2%) and savings deposits grew $17.0 million (4.6%) from the quarter ended June 30, 2009 to the quarter ended June 30, 2010. Our non-performing assets continue to decline for the fourth consecutive quarter, while net charge-offs and past due loans remain at relatively low levels. These trends are due to the relative stability of the markets we do business within and our disciplined lending model.

“City’s continued trend of solid earnings has allowed the Company to maintain our quarterly dividend of 34 cents per share during a time period in which many banks have eliminated or significantly reduced dividends to shareholders. Our capital levels continue to be healthy, our liquidity remains strong, and we remain a stable core-deposit franchise. While our competitors continue to struggle to work through liquidity and asset quality issues, our strong financial condition enables City to consider the opportunities of growing our company through acquisitions. City continues to be one of the most profitable and best capitalized publicly traded banks in the U.S. and is well prepared to assist our shareholders and customers through the lingering, difficult economic environment,” Hageboeck concluded.

The Company’s tax equivalent net interest income increased $1.3 million, or 5.4%, from $23.6 million during the second quarter of 2009 to $24.9 million during the second quarter of 2010. This increase is primarily a result of $1.1 million of additional interest income recognized related to three of the six pools of previously securitized loans that had a negative carrying value due to actual recoveries that exceeded estimates and discount accretion previously recognized. As a result, the June 30, 2010 carrying value for these three pools is $0 and future cash receipts related to these three pools will be recognized as interest income as received. Excluding this change in estimate, the decline in interest expense exceeded the decline in interest income from the second quarter of 2009 resulting in an increase in tax equivalent net interest income of approximately $0.2 million. This net increase was in spite of a decline due to the decrease in interest income associated with the gain from the sale of interest rate floors. During the third and fourth quarters of 2008, the Company sold $450 million of interest rate floors. The $16.7 million gain from sales of these interest rate floors is being recognized over the remaining lives of the various hedged loans – primarily prime-based commercial and home equity loans. During the second quarter of 2010, the Company recognized $1.3 million of interest income compared to $2.7 million of interest income recognized in the second quarter of 2009 from the interest rate floors. The Company’s reported net interest margin increased from 4.12% for the quarter ended June 30, 2009 to 4.22% for the quarter ended June 30, 2010.

Past due loans increased from $7.2 million at March 31, 2010 to $11.7 million or 0.64% of total loans outstanding at June 30, 2010 due primarily to a $2.0 million commercial real estate loan in the Eastern Panhandle of West Virginia. This loan has been considered in the Company’s review of it’s Allowance for Loan Losses (“ALLL”). Past due commercial, financial, and agriculture loans were $3.7 million or 0.47% of loans outstanding at June 30, 2010; past due residential real estate loans were $5.3 million or 0.88% of loans outstanding at June 30, 2010; and past due home equity loans were $1.8 million or 0.44% of loans outstanding at June 30, 2010.

As a result of the Company’s quarterly analysis of the adequacy of the ALLL, the Company recorded a provision for loan losses of $1.8 million in the second quarter of 2010 compared to $2.1 million for the comparable period in 2009. The provision for loan losses recorded during the second quarter of 2010 reflects the difficulties of certain commercial borrowers of the Company during the quarter, the downgrade of their related credits, and management’s assessment of the impact of these difficulties on the ultimate collectability of the loans. Changes in the amount of the provision and related allowance are based on the Company’s detailed systematic methodology and are directionally consistent with changes in the composition and quality of the Company’s loan portfolio. The Company believes its methodology for determining the adequacy of its ALLL adequately provides for probable losses inherent in the loan portfolio and produces a provision and allowance for loan losses that is directionally consistent with changes in asset quality and loss experience.

Exclusive of net other-than-temporary investment impairment losses, non-interest income decreased $1.1 million to $13.5 million in the second quarter of 2010 from $14.6 million in the second quarter of 2009. Service charges from depository accounts decreased $0.8 million, or 7.2%, to $10.2 million in the second quarter of 2010. This decline is attributable to a general decline in consumer spending reflective of current economic conditions and changes the Company began implementing to comply with new federal rules under the Electronic Funds Transfer Act, also known as Regulation E. The new Federal Reserve Board rule prohibits financial institutions from charging consumers fees for paying overdrafts on automated teller machine (ATM) and one-time debit card transactions, unless a consumer consents, or opts in, to the overdraft service for those types of transactions. The regulation was effective July 1, 2010 for new customers and August 15, 2010 for existing accounts. During the second quarter of 2010, the Company integrated new software that now captures debit card and ATM transactions in “real time.” The Company has been communicating with customers via mail, website, and in-store communication in order to receive decisions from our customers on whether they want to “opt-in” as required by Regulation E. At this time, the Company anticipates that compliance with the new rules will reduce revenues from deposit-related service charges by approximately 12% to 15%. Additionally, insurance commission revenues decreased $0.2 million, or 18.0%, from $1.0 million during the second quarter of 2009 to $0.8 million during the second quarter of 2010.

Non-interest expenses decreased $0.3 million from $20.3 million in the second quarter of 2009 to $20.0 million in the second quarter of 2010. Insurance and regulatory expense decreased $0.3 million, or 24.0%, from the quarter ended June 30, 2009 primarily due to the impact of the special assessment levied by the FDIC during the second quarter of 2009 of $1.2 million. This special assessment was partially offset by the Company fully utilizing its FDIC credits during 2009 and increases in the assessment rates during 2010, which increased our FDIC insurance expense from $0.1 million for the quarter ended June 30, 2009 to $0.9 million for the quarter ended June 30, 2010. In addition, bankcard expenses declined $0.2 million from the quarter ended June 30, 2009. These increases were partially offset by higher advertising expenses of $0.3 million, or 33.9%, as part of the Company’s efforts to communicate with its customers about their options concerning overdraft privileges.

Total average depository balances increased $30.3 million, or 1.4%, from the quarter ended March 31, 2010 to the quarter ended June 30, 2010. This growth was primarily in noninterest-bearing deposits, savings deposits, and interest-bearing deposits, which have increased $21.2 million, $9.5 million, and $7.3 million, respectively. These increases were partially offset by a decrease of $7.8 million in time deposits. As compared to the quarter ended June 30, 2009, total average depository balances have increased $53.5 million, or 2.5%, for the quarter ended June 30, 2010. This increase was due to increased interest bearing deposits ($34.9 million), noninterest bearing deposits ($27.6 million), and savings deposits ($17.0 million) that were partially offset by a decrease in time deposits ($26.1 million).

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 84.3% and the loan to asset ratio was 69.5% at June 30, 2010. The Company maintained investment securities totaling 19.2% of assets as of this date. Further, the Company’s deposit mix is weighted heavily toward checking and saving accounts that fund 45.0% of assets at June 30, 2010. Time deposits fund 37.4% of assets at June 30, 2010, 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.

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 not 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; (12) the Company may experience difficulties growing loan and deposit balances; (13) the current economic environment poses significant challenges for us and could adversely affect our financial condition and results of operations; (14) continued deterioration in the financial condition of the U.S. banking system may impact the valuations of investments the Company has made in the securities of other financial institutions resulting in either actual losses or other than temporary impairments on such investments; and (15) the United States government’s plan to purchase large amounts of illiquid, mortgage-backed and other securities from financial institutions may not be effective and/or it may not be available to us. 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 June 30,						Percent
	2010			2009			Change

Earnings ($000s, except per share data):
Net Interest Income (FTE)	$	24,922		$	23,656			5.35	%
Net Income available to common shareholders		10,715			10,146			5.61	%
Earnings per Basic Share		0.68			0.64			6.76	%
Earnings per Diluted Share		0.68			0.64			6.63	%


Key Ratios (percent):
Return on Average Assets		1.60	%		1.55	%		3.24	%
Return on Average Tangible Equity		16.65	%		17.63	%		(5.56	)%
Net Interest Margin		4.22	%		4.12	%		2.56	%
Efficiency Ratio		52.00	%		53.19	%		(2.24	)%
Average Shareholders' Equity to Average Assets		11.76	%		11.00	%		6.86	%

Consolidated Risk Based Capital Ratios (a):
Tier I		13.46	%		12.59	%		6.91	%
Total		14.45	%		13.69	%		5.55	%

Tangible Equity to Tangible Assets		9.86	%		9.24	%		6.73	%


Common Stock Data:
Cash Dividends Declared per Share	$	0.34		$	0.34			-
Book Value per Share		19.95			18.45			8.10	%
Tangible Book Value per Share		16.31			14.87			9.71	%
Market Value per Share:
High		37.28			33.78			10.36	%
Low		27.88			27.02			3.18	%
End of Period		27.88			30.88			(9.72	)%

Price/Earnings Ratio (b)		10.25			12.12			(15.43	)%
	Six Months Ended June 30,						Percent
		2010			2009		Change

Earnings ($000s, except per share data):
Net Interest Income (FTE)	$	48,670		$	48,629			0.08	%
Net Income available to common shareholders		20,028			21,070			(4.95	)%
Earnings per Basic Share		1.27			1.32			(3.94	)%
Earnings per Diluted Share		1.26			1.31			(4.03	)%


Key Ratios (percent):
Return on Average Assets		1.51	%		1.63	%		(7.09	)%
Return on Average Tangible Equity		15.61	%		18.36	%		(14.95	)%
Net Interest Margin		4.18	%		4.29	%		(2.41	)%
Efficiency Ratio		53.42	%		50.31	%		6.18	%
Average Shareholders' Equity to Average Assets		11.81	%		11.06	%		6.79	%


Common Stock Data:
Cash Dividends Declared per Share	$	0.68		$	0.68			-
Market Value per Share:
High		37.28			33.78			10.36	%
Low		27.88			20.88			33.52	%

Price/Earnings Ratio (b)		11.01			11.72			(6.01	)%


(a) June 30, 2010 risk-based capital ratios are estimated
(b) June 30, 2010 price/earnings ratio computed based on annualized second quarter 2010 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

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
2008		18.92		18.72		17.61			17.58		29.08		42.88
2009		17.69		18.24		18.95			19.37		20.88		34.34
2010		19.71		19.95							27.88		37.28


Earnings per Basic Share

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

2006	$	0.71	$	0.78	$	0.78		$	0.74	$	3.00
2007		0.76		0.72		0.76			0.78		3.02
2008		0.81		0.83		(0.16	)		0.26		1.74
2009		0.69		0.64		0.66			0.70		2.69
2010		0.59		0.68							1.27


Earnings per Diluted Share

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

2006	$	0.71	$	0.77	$	0.77		$	0.74	$	2.99
2007		0.76		0.72		0.76			0.78		3.01
2008		0.80		0.83		(0.16	)		0.26		1.74
2009		0.69		0.64		0.66			0.70		2.68
2010		0.58		0.68							1.26

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

	Three Months Ended June 30,
	2010			2009

Interest Income
Interest and fees on loans	$	25,991		$	26,946
Interest on investment securities:
Taxable		5,317			5,612
Tax-exempt		461			403
Interest on deposits in depository institutions		-			3
Interest on federal funds sold		1			-
Total Interest Income		31,770			32,964

Interest Expense
Interest on deposits		6,831			9,184
Interest on short-term borrowings		98			111
Interest on long-term debt		163			231
Total Interest Expense		7,092			9,526
Net Interest Income		24,678			23,438
Provision for loan losses		1,823			2,128
Net Interest Income After Provision for Loan Losses		22,855			21,310

Non-Interest Income
Total investment securities impairment losses		(1,237	)		-
Noncredit impairment losses recognized in other comprehensive income		944			-
Net investment securities impairment losses		(293	)		-
Gain (loss) on sale of investment securities		62			(332	)
Service charges		10,448			11,261
Insurance commissions		1,244			1,325
Trust and investment management fee income		567			497
Bank owned life insurance		813			992
Other income		437			544
Total Non-Interest Income		13,278			14,287

Non-Interest Expense
Salaries and employee benefits		9,745			9,797
Occupancy and equipment		1,874			1,880
Depreciation		1,174			1,184
Professional fees		398			397
Postage, delivery, and statement mailings		615			698
Advertising		1,241			927
Telecommunications		440			514
Bankcard expenses		448			686
Insurance and regulatory		1,200			1,578
Office supplies		484			470
Repossessed asset losses, net of expenses		78			86
Other expenses		2,268			2,141
Total Non-Interest Expense		19,965			20,358
Income Before Income Taxes		16,168			15,239
Income tax expense		5,453			5,093
Net Income Available to Common Shareholders	$	10,715		$	10,146


Distributed earnings allocated to common shareholders	$	5,274		$	5,398

Undistributed earnings allocated to common shareholders		5,373			4,736

Net earnings allocated to common shareholders	$	10,647		$	10,134

Average common shares outstanding		15,656			15,908

Effect of dilutive securities:
Employee stock options		65			47

Shares for diluted earnings per share		15,721			15,955

Basic earnings per common share	$	0.68		$	0.64
Diluted earnings per common share	$	0.68		$	0.64

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

	Six months ended June 30,
	2010			2009

Interest Income
Interest and fees on loans	$	50,845		$	55,004
Interest on investment securities:
Taxable		10,928			11,674
Tax-exempt		931			812
Interest on deposits in depository institutions		-			8
Interest on federal funds sold		1			-
Total Interest Income		62,705			67,498

Interest Expense
Interest on deposits		14,015			18,557
Interest on short-term borrowings		198			264
Interest on long-term debt		323			485
Total Interest Expense		14,536			19,306
Net Interest Income		48,169			48,192
Provision for loan losses		2,903			3,839
Net Interest Income After Provision for Loan Losses		45,266			44,353

Non-Interest Income
Total investment securities impairment losses		(4,440	)		(2,157	)
Noncredit impairment losses recognized in other comprehensive income		2,496			-
Net investment securities impairment losses		(1,944	)		(2,157	)
Gain (loss) on sale of investment securities		62			(250	)
Service charges		20,676			21,696
Insurance commissions		2,641			3,258
Trust and investment management fee income		1,429			1,204
Bank owned life insurance		1,541			1,724
Other income		985			1,245
Total Non-Interest Income		25,390			26,720

Non-Interest Expense
Salaries and employee benefits		19,494			19,380
Occupancy and equipment		3,919			3,789
Depreciation		2,392			2,395
Professional fees		761			850
Postage, delivery, and statement mailings		1,224			1,416
Advertising		2,154			1,790
Telecommunications		891			934
Bankcard expenses		924			1,334
Insurance and regulatory		2,387			1,954
Office supplies		977			1,001
Repossessed asset losses, net of expenses		1,024			215
Other expenses		4,369			4,073
Total Non-Interest Expense		40,516			39,131
Income Before Income Taxes		30,140			31,942
Income tax expense		10,112			10,872
Net Income Available to Common Shareholders	$	20,028		$	21,070


Distributed earnings allocated to common shareholders	$	10,549		$	10,797

Undistributed earnings allocated to common shareholders		9,355			10,163

Net earnings allocated to common shareholders	$	19,904		$	20,959

Average common shares outstanding		15,722			15,903

Effect of dilutive securities:
Employee stock options		63			48

Shares for diluted earnings per share		15,785			15,951

Basic earnings per common share	$	1.27		$	1.32
Diluted earnings per common share	$	1.26		$	1.31

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


	Three Months Ended
	June 30, 2010			June 30, 2009

Balance at April 1	$	311,668		$	284,444

Net income		10,715			10,146
Other comprehensive income:
Change in unrealized gain on securities available-for-sale		2,106			7,104
Change in unrealized (gain) on interest rate floors		(826	)		(1,783	)
Cash dividends declared ($0.34/share)		(5,312	)		(5,426	)
Issuance of stock award shares, net		119			99
Exercise of 1,500 stock options		43			-
Purchase of 213,000 common shares of treasury		(7,105	)		-
Balance at June 30	$	311,408		$	294,584



	Six Months Ended
	June 30, 2010			June 30, 2009

Balance at January 1	$	307,735		$	284,296

Net income		20,028			21,070
Other comprehensive income:
Change in unrealized gain on securities available-for-sale		5,242			4,488
Change in unrealized (gain) on interest rate floors		(1,738	)		(3,569	)
Cash dividends declared ($0.68/share)		(10,685	)		(10,836	)
Issuance of stock award shares, net		490			374
Exercise of 1,700 stock options		46			-
Exercise of 1,500 stock options		-			3
Purchase of 297,015 common shares of treasury		(9,710	)		-
Purchase of 49,363 common shares of treasury		-			(1,242	)
Balance at June 30	$	311,408		$	294,584

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

	Quarter Ended
	June 30			March 31			December 31			September 30			June 30
	2010			2010			2009			2009			2009

Interest income	$	31,770		$	30,935		$	31,887		$	32,651		$	32,964
Taxable equivalent adjustment		246			255			234			236			219
Interest income (FTE)		32,016			31,190			32,121			32,887			33,183
Interest expense		7,092			7,444			8,302			8,995			9,526
Net interest income		24,924			23,746			23,819			23,892			23,657
Provision for loan losses		1,823			1,080			1,475			1,681			2,128
Net interest income after provision for loan losses		23,101			22,666			22,344			22,211			21,529

Noninterest income		13,278			12,112			12,923			12,340			14,287
Noninterest expense		19,965			20,551			19,316			18,796			20,358
Income before income taxes		16,414			14,227			15,951			15,755			15,458
Income tax expense		5,453			4,659			4,639			5,022			5,093
Taxable equivalent adjustment		246			255			234			236			219
Net income available to common shareholders	$	10,715		$	9,313		$	11,078		$	10,497		$	10,146



Distributed earnings allocated to common shareholders	$	5,274		$	5,345		$	5,370		$	5,380		$	5,398
Undistributed earnings allocated to common shareholders		5,373			3,918			5,697			5,116			4,695
Net earnings allocated to common shareholders	$	10,647		$	9,263		$	11,067		$	10,496		$	10,093

Average common shares outstanding		15,656			15,793			15,838			15,893			15,908

Effect of dilutive securities:
Employee stock options		65			58			53			59			47

Shares for diluted earnings per share		15,721			15,851			15,891			15,952			15,955

Basic earnings per common share	$	0.68		$	0.59		$	0.70		$	0.66		$	0.64
Diluted earnings per common share		0.68			0.58			0.70			0.66			0.64

Cash dividends declared per share		0.34			0.34			0.34			0.34			0.34


Average Common Share (000s):
Outstanding		15,656			15,793			15,838			15,893			15,908
Diluted		15,721			15,851			15,897			15,952			15,949

Net Interest Margin		4.22	%		4.14	%		4.07	%		4.09	%		4.12	%

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

	Quarter Ended
	June 30			March 31			December 31			September 30			June 30
	2010			2010			2009			2009			2009

Non-Interest Income:
Service charges	$	10,448		$	10,228		$	11,628		$	11,689		$	11,261
Insurance commissions		1,244			1,397			1,110			1,208			1,325
Trust and investment management fee income		567			862			549			590			497
Bank owned life insurance		813			728			753			794			992
Other income		437			548			320			379			544
Subtotal		13,509			13,763			14,360			14,660			14,619
Total investment securities impairment losses		(1,237	)		(3,203	)		(861	)		(2,306	)		-
Noncredit impairment losses recognized in other
comprehensive income		944			1,552			-			-			-
Net investment securities impairment losses		(293	)		(1,651	)		(861	)		(2,306	)		-
Gain (loss) on sale of investment securities		62			-			(576	)		(14	)		(332	)
Total Non-Interest Income	$	13,278		$	12,112		$	12,923		$	12,340		$	14,287

Non-Interest Expense:
Salaries and employee benefits	$	9,745		$	9,749		$	8,523		$	9,623		$	9,797
Occupancy and equipment		1,874			2,045			1,947			1,953			1,880
Depreciation		1,174			1,218			1,180			1,171			1,184
Professional fees		398			363			439			216			397
Postage, delivery, and statement mailings		615			609			573			611			698
Advertising		1,241			913			830			883			927
Telecommunications		440			451			455			476			514
Bankcard expenses		448			476			570			695			686
Insurance and regulatory		1,200			1,187			1,014			411			1,578
Office supplies		484			493			484			520			470
Repossessed asset losses, net of expenses		78			946			321			136			86
Other expenses		2,268			2,101			2,880			2,107			2,119
Total Non-Interest Expense	$	19,965		$	20,551		$	19,216		$	18,802		$	20,336




Employees (Full Time Equivalent)		812			815			809			814			831
Branch Locations		67			67			67			68			69

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
	June 30			December 31
	2010			2009
	(Unaudited)
Assets
Cash and due from banks	$	40,861		$	59,116
Interest-bearing deposits in depository institutions		4,146			3,519
Cash and cash equivalents		45,007			62,635

Investment securities available-for-sale, at fair value		481,692			485,767
Investment securities held-to-maturity, at amortized cost		24,531			28,164
Total investment securities		506,223			513,931

Gross loans		1,833,572			1,792,434
Allowance for loan losses		(19,456	)		(18,541	)
Net loans		1,814,116			1,773,893

Bank owned life insurance		74,858			73,388
Premises and equipment		64,515			64,193
Accrued interest receivable		8,270			7,969
Net deferred tax assets		26,233			29,480
Intangible assets		56,791			57,010
Other assets		43,170			40,121
Total Assets	$	2,639,183		$	2,622,620

Liabilities
Deposits:
Noninterest-bearing	$	331,286		$	328,440
Interest-bearing:
Demand deposits		461,829			457,293
Savings deposits		395,718			379,893
Time deposits		986,879			998,096
Total deposits		2,175,712			2,163,722
Short-term borrowings		113,239			118,329
Long-term debt		16,915			16,959
Other liabilities		21,909			15,875
Total Liabilities		2,327,775			2,314,885

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 June 30, 2010 and December 31, 2009
less 2,889,927 and 2,616,161 shares in treasury, respectively		46,249			46,249
Capital surplus		101,546			101,750
Retained earnings		262,510			253,167
Cost of common stock in treasury		(99,847	)		(90,877	)
Accumulated other comprehensive income (loss):
Unrealized gain/(loss) on securities available-for-sale		3,362			(1,880	)
Unrealized gain on derivative instruments		1,325			3,063
Underfunded pension liability		(3,737	)		(3,737	)
Total Accumulated Other Comprehensive Income (Loss)		950			(2,554	)
Total Stockholders' Equity		311,408			307,735
Total Liabilities and Stockholders' Equity	$	2,639,183		$	2,622,620

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

	Original Cost		Other Than Temporary Credit Impairment Charges through June 30, 2010			Unrealized Gains (Losses)			Carrying Value

Mortgage Backed Securities		295,986		-			11,526			307,513
Municipal Bonds		53,585		-			527			54,112
Pooled Bank Trust Preferreds		27,088		(18,516	)		(982	)		7,590
Single Issuer Bank Trust Preferreds,
Subdebt of Financial Institutions, and
Bank Holding Company Preferred Stocks		104,479		(1,638	)		(1,967	)		100,874
Money Markets and Mutual Funds		18,426		-			17			18,443
Federal Reserve Bank and FHLB stock		12,940		-			-			12,940
Community Bank Equity Positions		10,167		(1,749	)		(3,668	)		4,751
Total Investments	$	522,672	$	(21,903	)	$	5,454		$	506,223

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

	June 30		March 31		December 31		September 30			June 30
	2010		2010		2009		2009			2009

Residential real estate	$	605,026	$	597,429	$	595,678	$	590,653		$	596,925
Home equity		404,789		398,443		398,752		396,648			392,751
Commercial, financial, and agriculture		778,114		761,223		752,052		762,194			747,886
Installment loans to individuals		43,859		43,597		44,239		45,309			45,550
Previously securitized loans		1,784		1,148		1,713		2,580			3,223
Gross Loans	$	1,833,572	$	1,801,840	$	1,792,434	$	1,797,384		$	1,786,335






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)

		2009	$	1.7	$	5.6		108	%
		2010		1.6		3.9		238	%
		2011		1.4		2.5		171	%
		2012		1.2		2.2		171	%
		2013		1.0		1.8		171	%

a - 2009 amounts are based on actual results. 2010 amounts are based on actual results through June 30, 2010 and estimated amounts for the remainder of the year. 2011, 2012, and 2013 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,
discount rates. Actual performance could be significantly different from that assumed, which could result in the actual results being materially different from the amounts estimated above.

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

	Three Months Ended June 30,
				2010								2009
	Average					Yield/			Average					Yield/
	Balance			Interest		Rate			Balance			Interest		Rate

Assets:
Loan portfolio:
Residential real estate	$	596,474		$	7,885		5.30	%	$	598,122		$	8,545		5.73	%
Home equity		401,757			5,316		5.31	%		390,361			6,050		6.22	%
Commercial, financial, and agriculture		771,234			10,017		5.21	%		752,157			10,311		5.50	%
Installment loans to individuals		51,442			1,015		7.91	%		49,956			1,057		8.49	%
Previously securitized loans		915			1,757		770.20	%		3,426			984		115.20	%
Total loans		1,821,822			25,990		5.72	%		1,794,022			26,947		6.02	%
Securities:
Taxable		487,604			5,317		4.37	%		466,341			5,612		4.83	%
Tax-exempt		49,501			708		5.74	%		38,179			621		6.52	%
Total securities		537,105			6,025		4.50	%		504,520			6,233		4.96	%
Deposits in depository institutions		6,110			-		-			5,224			3		0.23	%
Federal funds sold		1,445			1		-			-			-		-
Total interest-earning assets		2,366,482			32,016		5.43	%		2,303,766			33,183		5.78	%
Cash and due from banks		53,556								51,774
Bank premises and equipment		64,486								62,775
Other assets		206,809								215,907
Less: Allowance for loan losses		(19,520	)							(22,229	)
Total assets	$	2,671,813							$	2,611,993

Liabilities:
Interest-bearing demand deposits		464,306			342		0.30	%		429,381			446		0.42	%
Savings deposits		391,407			259		0.27	%		374,375			463		0.50	%
Time deposits		991,902			6,231		2.52	%		1,017,984			8,276		3.26	%
Short-term borrowings		110,954			99		0.36	%		125,436			111		0.35	%
Long-term debt		16,925			163		3.86	%		18,998			231		4.88	%
Total interest-bearing liabilities		1,975,494			7,094		1.44	%		1,966,174			9,527		1.94	%
Noninterest-bearing demand deposits		362,363								334,735
Other liabilities		19,792								23,680
Stockholders' equity		314,164								287,404
Total liabilities and
stockholders' equity	$	2,671,813							$	2,611,993
Net interest income				$	24,922							$	23,656
Net yield on earning assets							4.22	%							4.12	%

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

	Six Months Ended June 30,
				2010								2009
	Average					Yield/			Average					Yield/
	Balance			Interest		Rate			Balance			Interest		Rate

Assets:
Loan portfolio:
Residential real estate	$	594,715		$	15,779		5.35	%	$	600,929		$	17,325		5.81	%
Home equity		399,735			10,674		5.38	%		388,517			12,193		6.33	%
Commercial, financial, and agriculture		762,440			19,928		5.27	%		754,168			21,186		5.66	%
Installment loans to individuals		49,492			1,928		7.86	%		48,768			2,175		8.99	%
Previously securitized loans		1,177			2,536		434.50	%		3,645			2,125		117.56	%
Total loans		1,807,559			50,845		5.67	%		1,796,027			55,004		6.18	%
Securities:
Taxable		482,646			10,928		4.57	%		448,636			11,674		5.25	%
Tax-exempt		49,567			1,432		5.83	%		37,871			1,249		6.65	%
Total securities		532,213			12,360		4.68	%		486,507			12,923		5.36	%
Deposits in depository institutions		5,446			-		-			5,026			8		0.32	%
Federal funds sold		727			1		-			-			-		-
Total interest-earning assets		2,345,945			63,206		5.43	%		2,287,560			67,935		5.99	%
Cash and due from banks		54,094								52,090
Bank premises and equipment		64,302								61,800
Other assets		207,310								213,467
Less: Allowance for loan losses		(19,315	)							(22,395	)
Total assets	$	2,652,336							$	2,592,522

Liabilities:
Interest-bearing demand deposits		460,658			692		0.30	%		423,073			909		0.43	%
Savings deposits		386,680			540		0.28	%		367,595			969		0.53	%
Time deposits		995,760			12,783		2.59	%		1,000,562			16,679		3.36	%
Short-term borrowings		110,561			198		0.36	%		136,412			264		0.39	%
Long-term debt		16,934			323		3.85	%		19,015			485		5.14	%
Total interest-bearing liabilities		1,970,593			14,536		1.49	%		1,946,657			19,306		2.00	%
Noninterest-bearing demand deposits		351,806								329,563
Other liabilities		16,588								29,506
Stockholders' equity		313,349								286,796
Total liabilities and
stockholders' equity	$	2,652,336							$	2,592,522
Net interest income				$	48,670							$	48,629
Net yield on earning assets							4.18	%							4.29	%

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

	June 30			March 31			December 31			September 30			June 30
	2010 (a)			2010			2009			2009			2009

Tier I Capital:
Stockholders' equity	$	311,408		$	311,668		$	307,735		$	303,973		$	294,584
Goodwill and other intangibles		(56,596	)		(56,705	)		(56,810	)		(56,928	)		(57,046	)
Accumulated other comprehensive (income) loss		(950	)		330			2,554			(330	)		5,970
Qualifying trust preferred stock		16,000			16,000			16,000			16,000			16,000
Unrealized Loss on AFS securities		(3,668	)		(2,950	)		(3,531	)		(2,355	)		(4,146	)
Excess deferred tax assets		(3,530	)		(3,827	)		(3,412	)		(10,105	)		(14,804	)
Total tier I capital	$	262,664		$	264,516		$	262,536		$	250,255		$	240,558


Total Risk-Based Capital:
Tier I capital	$	262,664		$	264,516		$	262,536		$	250,255		$	240,558
Qualifying allowance for loan losses		19,456			18,982			18,687			19,655			20,975
Total risk-based capital	$	282,120		$	283,498		$	281,223		$	269,910		$	261,533

Net risk-weighted assets	$	1,952,076		$	1,935,071		$	1,926,824		$	1,919,093		$	1,910,831


Ratios:
Average stockholders' equity to average assets		11.76	%		11.87	%		11.70	%		11.33	%		11.00	%
Tangible capital ratio		9.86	%		9.79	%		9.77	%		9.62	%		9.11	%
Risk-based capital ratios:
Tier I capital		13.46	%		13.67	%		13.63	%		13.04	%		12.59	%
Total risk-based capital		14.45	%		14.65	%		14.60	%		14.06	%		13.69	%
Leverage capital		10.06	%		10.28	%		10.23	%		9.79	%		9.47	%


(a) June 30, 2010 risk-based capital ratios are estimated




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

	As of and for the Quarter Ended
	June 30			March 31			December 31			September 30			June 30
		2010			2010			2009			2009			2009

Intangibles, net	$	56,791		$	56,900		$	57,010		$	57,127		$	57,244
Intangibles amortization expense		109			110			117			117			117

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

	Quarter Ended
	June 30			March 31			December 31			September 30			June 30
	2010			2010			2009			2009			2009

Balance at beginning of period	$	18,836		$	18,541		$	19,609		$	20,923		$	21,950

Charge-offs:
Commercial, financial, and agricultural		796			361			1,821			2,117			2,332
Real estate-mortgage		637			423			448			567			507
Installment loans to individuals		20			26			87			36			73
Overdraft deposit accounts		565			550			737			795			690
Total charge-offs		2,018			1,360			3,093			3,515			3,602

Recoveries:
Commercial, financial, and agricultural		378			9			88			27			91
Real estate-mortgage		38			23			31			19			(9	)
Installment loans to individuals		53			50			37			95			35
Overdraft deposit accounts		346			493			394			379			330
Total recoveries		815			575			550			520			447

Net charge-offs		1,203			785			2,543			2,995			3,155
Provision for loan losses		1,823			1,080			1,475			1,681			2,128
Balance at end of period	$	19,456		$	18,836		$	18,541		$	19,609		$	20,923

Loans outstanding	$	1,833,572		$	1,801,840		$	1,792,434		$	1,797,384		$	1,786,335
Average loans outstanding		1,821,822			1,793,134			1,792,759			1,803,611			1,794,022
Allowance as a percent of loans outstanding		1.06	%		1.05	%		1.03	%		1.09	%		1.17	%
Allowance as a percent of non-performing loans		177.78	%		131.60	%		132.02	%		118.61	%		96.56	%
Net charge-offs (annualized) as a
percent of average loans outstanding		0.26	%		0.18	%		0.57	%		0.66	%		0.70	%
Net charge-offs, excluding overdraft deposit accounts,
(annualized) as a percent of average loans outstanding		0.22	%		0.16	%		0.49	%		0.57	%		0.62	%

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

	June 30			March 31			December 31			September 30			June 30
	2010			2010			2009			2009			2009

Nonaccrual loans	$	10,246		$	14,008		$	13,583		$	16,423		$	20,956
Accruing loans past due 90 days or more		698			305			382			98			680
Previously securitized loans past due 90 days or more		-			-			79			12			32
Total non-performing loans		10,944			14,313			14,044			16,533			21,668
Other real estate owned, excluding property associated
with previously securitized loans		12,722			10,800			11,729			12,323			9,840
Other real estate owned associated with previously
securitized loans		-			-			-			-			189
Other real estate owned		12,722			10,800			11,729			12,323			10,029
Total non-performing assets	$	23,666		$	25,113		$	25,773		$	28,856		$	31,697

Non-performing assets as a percent of loans and
other real estate owned		1.28	%		1.39	%		1.43	%		1.59	%		1.76	%



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

	June 30			March 31			December 31			September 30			June 30
		2010			2010			2009			2009			2009

Residential real estate	$	5,298		$	3,850		$	3,830		$	3,167		$	5,029
Home equity		1,763			1,818			2,396			1,718			2,019
Commercial, financial, and agriculture		3,680			498			601			545			1,754
Installment loans to individuals		168			133			172			185			118
Previously securitized loans		394			539			1,023			1,054			878
Overdraft deposit accounts		399			326			461			510			526
Total past due loans	$	11,702		$	7,164		$	8,483		$	7,179		$	10,324