ex99-1.htm

Charleston, West Virginia – City Holding Company, “the Company” (NASDAQ:CHCO), a $2.7 billion bank holding company headquartered in Charleston, today announced net income per diluted share for the second quarter of $0.64 compared to $0.68 per diluted share in the second quarter of 2010. Net income for the second quarter of 2011 was $9.8 million compared to $10.7 million in the second quarter of 2010 and $9.6 million in the first quarter of 2011. For the second quarter of 2011, the Company achieved a return on assets of 1.45%, a return on tangible equity of 15.2%, a net interest margin of 3.78%, and an efficiency ratio of 63.5%. For the first six months of 2011, the Company achieved a return on assets of 1.44%, a return on tangible equity of 14.9%, a net interest margin of 3.86%, and an efficiency ratio of 59.6%.

City’s CEO Charles Hageboeck stated that, “City’s results for the second quarter of 2011 are down slightly from the second quarter of 2010 due to the impact of lower interest income from our interest rate floors ($1.0 million) and nonrecurring interest income of $1.1 million related to a change in estimate associated with our previously securitized loans in the second quarter of 2010. While interest rates remain abnormally low and the economic recovery is murky, our results are favorable compared to our peers. Loans increased $28 million, or 1.5%, from March 31, 2011 and our asset quality continues to be strong with stable and relatively low levels of past due loans and our nonperforming assets decreased slightly from the first quarter. Reflecting the Company’s success at anticipating credit challenges, net charge-offs for the quarter were only $0.8 million.”

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 could have adverse legal actions of a material nature; (5) the Company may face competitive loss of customers; (6) the Company may be unable to manage its expense levels; (7) the Company may have difficulty retaining key employees; (8) 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; (9) changes in general economic conditions and increased competition could adversely affect the Company’s operating results; (10) 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; (11) the Company may experience difficulties growing loan and deposit balances; (12) the current economic environment poses significant challenges for us and could adversely affect our financial condition and results of operations; (13) 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 (14) the effects of the Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) recently adopted by the United States Congress. Forward-looking statements made herein reflect management’s expectations as of the date such statements are made. Forward-looking statements made herein reflect management's expectations as of the date such statements are made. Such information is provided to assist stockholders and potential investors in understanding current and anticipated financial operations of the Company and is included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances that arise after the date such statements are made.

CITY HOLDING COMPANY AND SUBSIDIARIES
Financial Highlights
(Unaudited)


	Three Months Ended June 30,						Percent
	2011			2010			Change

Earnings ($000s, except per share data):
Net Interest Income (FTE)	$	22,760		$	24,925			(8.69	)%
Net Income available to common shareholders		9,830			10,715			(8.26	)%
Earnings per Basic Share		0.65			0.68			(5.07	)%
Earnings per Diluted Share		0.64			0.68			(5.13	)%


Key Ratios (percent):
Return on Average Assets		1.45	%		1.60	%		(9.82	)%
Return on Average Tangible Equity		15.21	%		16.65	%		(8.69	)%
Net Interest Margin		3.78	%		4.22	%		(10.56	)%
Efficiency Ratio		63.49	%		52.00	%		22.10	%
Average Shareholders' Equity to Average Assets		11.59	%		11.76	%		(1.45	)%

Consolidated Risk Based Capital Ratios (a):
Tier I		13.42	%		13.46	%		(0.30	)%
Total		14.37	%		14.45	%		(0.55	)%

Tangible Equity to Tangible Assets		9.56	%		9.90	%		(3.50	)%


Common Stock Data:
Cash Dividends Declared per Share	$	0.34		$	0.34			-
Book Value per Share		20.58			20.02			2.75	%
Tangible Book Value per Share		16.84			16.39			2.76	%
Market Value per Share:
High		36.37			37.28			(2.44	)%
Low		30.55			27.88			9.58	%
End of Period		33.03			27.88			18.47	%

Price/Earnings Ratio (b)		12.79			10.25			24.80	%

	Six Months Ended June 30,						Percent
		2011			2010		Change

Earnings ($000s, except per share data):
Net Interest Income (FTE)	$	45,823		$	48,670			(5.85	)%
Net Income available to common shareholders		19,445			20,028			(2.91	)%
Earnings per Basic Share		1.27			1.27			0.04	%
Earnings per Diluted Share		1.26			1.26			(0.07	)%


Key Ratios (percent):
Return on Average Assets		1.44	%		1.51	%		(4.50	)%
Return on Average Tangible Equity		14.94	%		15.61	%		(4.33	)%
Net Interest Margin		3.86	%		4.18	%		(7.67	)%
Efficiency Ratio		59.61	%		53.42	%		11.60	%
Average Shareholders' Equity to Average Assets		11.75	%		11.81	%		(0.58	)%


Common Stock Data:
Cash Dividends Declared per Share	$	0.68		$	0.68			-
Market Value per Share:
High		37.22			37.28			(0.16	)%
Low		30.55			27.88			9.58	%

Price/Earnings Ratio (b)		13.04			11.01			18.42	%


(a) June 30, 2011 risk-based capital ratios are estimated
(b) June 30, 2011 price/earnings ratio computed based on annualized second quarter 2011 earnings

CITY HOLDING COMPANY AND SUBSIDIARIES
Financial Highlights
(Unaudited)



Book Value and Market Price Range per Share
										Market Price
	Book Value per Share									Range per Share
	March 31		June 30		September 30			December 31		Low		High

2007	$	17.62	$	17.40	$	17.68		$	18.14	$	31.16	$	41.54
2008		18.92		18.72		17.61			17.58		29.08		42.88
2009		17.69		18.24		18.95			19.37		20.88		34.34
2010		19.71		20.02		20.31			20.31		26.87		38.03
2011		20.39		20.58							30.55		37.22


Earnings per Basic Share

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

2007	$	0.76	$	0.72	$	0.76		$	0.78	$	3.02
2008		0.81		0.83		(0.16	)		0.26		1.74
2009		0.69		0.64		0.66			0.70		2.69
2010		0.59		0.68		0.58			0.64		2.48
2011		0.62		0.65							1.27


Earnings per Diluted Share

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

2007	$	0.76	$	0.72	$	0.76		$	0.78	$	3.01
2008		0.80		0.83		(0.16	)		0.26		1.74
2009		0.69		0.64		0.66			0.70		2.68
2010		0.58		0.68		0.58			0.64		2.47
2011		0.62		0.64							1.26

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

	Three Months Ended June 30,
	2011			2010

Interest Income
Interest and fees on loans	$	23,352		$	25,991
Interest on investment securities:
Taxable		4,513			5,317
Tax-exempt		445			461
Interest on federal funds sold		13			1
Total Interest Income		28,323			31,770

Interest Expense
Interest on deposits		5,568			6,831
Interest on short-term borrowings		77			98
Interest on long-term debt		158			163
Total Interest Expense		5,803			7,092
Net Interest Income		22,520			24,678
Provision for loan losses		1,286			1,823
Net Interest Income After Provision for Loan Losses		21,234			22,855

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	)
Gains on sale of investment securities		3,128			62
Net investment securities gains (losses)		3,128			(231	)

Service charges		9,855			10,448
Insurance commissions		1,504			1,244
Trust and investment management fee income		730			567
Bank owned life insurance		745			813
Other income		575			437
Total Non-Interest Income		16,537			13,278

Non-Interest Expense
Salaries and employee benefits		10,183			9,745
Occupancy and equipment		1,921			1,874
Depreciation		1,140			1,174
FDIC insurance expense		932			918
Advertising		628			1,241
Bankcard expenses		633			448
Postage, delivery, and statement mailings		510			615
Office supplies		452			484
Legal and professional fees		3,511			398
Telecommunications		417			440
Repossessed asset (gains)/losses, net of expenses		(7	)		78
Other expenses		2,592			2,550
Total Non-Interest Expense		22,912			19,965
Income Before Income Taxes		14,859			16,168
Income tax expense		5,029			5,453
Net Income Available to Common Shareholders	$	9,830		$	10,715


Distributed earnings allocated to common shareholders	$	5,092		$	5,274

Undistributed earnings allocated to common shareholders		4,669			5,373

Net earnings allocated to common shareholders	$	9,761		$	10,647

Average common shares outstanding		15,120			15,656

Effect of dilutive securities:
Employee stock options		73			65

Shares for diluted earnings per share		15,193			15,721

Basic earnings per common share	$	0.65		$	0.68
Diluted earnings per common share	$	0.64		$	0.68

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

	Six months ended June 30,
	2011		2010

Interest Income
Interest and fees on loans	$	47,090	$	50,845
Interest on investment securities:
Taxable		9,055		10,928
Tax-exempt		907		931
Interest on federal funds sold		26		1
Total Interest Income		57,078		62,705

Interest Expense
Interest on deposits		11,279		14,015
Interest on short-term borrowings		149		198
Interest on long-term debt		315		323
Total Interest Expense		11,743		14,536
Net Interest Income		45,335		48,169
Provision for loan losses		2,372		2,903
Net Interest Income After Provision for Loan Losses		42,963		45,266

Non-Interest Income
Total investment securities impairment losses		-		(4,440	)
Noncredit impairment losses recognized in other comprehensive income		-		2,496
Net investment securities impairment losses		-		(1,944	)
Gains on sale of investment securities		3,128		62
Net investment securities gains (losses)		3,128		(1,882	)

Service charges		18,909		20,676
Insurance commissions		3,125		2,641
Trust and investment management fee income		1,483		1,429
Bank owned life insurance		1,503		1,541
Other income		1,051		985
Total Non-Interest Income		29,199		25,390

Non-Interest Expense
Salaries and employee benefits		20,095		19,494
Occupancy and equipment		4,027		3,919
Depreciation		2,276		2,392
FDIC insurance expense		1,884		1,813
Advertising		1,308		2,154
Bankcard expenses		1,134		924
Postage, delivery, and statement mailings		1,064		1,224
Office supplies		991		977
Legal and professional fees		3,980		761
Telecommunications		846		891
Repossessed asset losses, net of expenses		191		1,024
Other expenses		4,974		4,943
Total Non-Interest Expense		42,770		40,516
Income Before Income Taxes		29,392		30,140
Income tax expense		9,947		10,112
Net Income Available to Common Shareholders	$	19,445	$	20,028


Distributed earnings allocated to common shareholders	$	10,184	$	10,549

Undistributed earnings allocated to common shareholders		9,123		9,355

Net earnings allocated to common shareholders	$	19,307	$	19,904

Average common shares outstanding		15,244		15,722

Effect of dilutive securities:
Employee stock options		78		63

Shares for diluted earnings per share		15,322		15,785

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

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


	Three Months Ended
	June 30, 2011			June 30, 2010

Balance at April 1	$	311,122		$	312,835

Net income		9,830			10,715
Other comprehensive income:
Change in unrealized gain on securities available-for-sale		165			2,106
Change in unrealized (loss) on interest rate floors		(99	)		(826	)
Cash dividends declared ($0.34/share)		(5,129	)		(5,312	)
Issuance of stock award shares, net		202			119
Exercise of 1,500 stock options		-			43
Purchase of 176,779 common shares of treasury		(5,712	)		-
Purchase of 213,000 common shares of treasury		-			(7,105	)
Balance at June 30	$	310,379		$	312,575



	Six Months Ended
	June 30, 2011			June 30, 2010

Balance at January 1	$	314,861		$	308,902

Net income		19,445			20,028
Other comprehensive income:
Change in unrealized gain on securities available-for-sale		954			5,242
Change in unrealized (loss) on interest rate floors		(295	)		(1,738	)
Cash dividends declared ($0.68/share)		(10,319	)		(10,685	)
Issuance of stock award shares, net		665			490
Exercise of 5,476 stock options		153			-
Exercise of 1,700 stock options		-			46
Purchase of 447,524 common shares of treasury		(15,085	)		-
Purchase of 297,015 common shares of treasury		-			(9,710	)
Balance at June 30	$	310,379		$	312,575

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
	2011			2011			2010			2010			2010

Interest income	$	28,323		$	28,754		$	29,241		$	29,970		$	31,770
Taxable equivalent adjustment		240			248			244			244			246
Interest income (FTE)		28,563			29,002			29,485			30,214			32,016
Interest expense		5,803			5,940			6,283			6,810			7,092
Net interest income		22,760			23,062			23,202			23,404			24,924
Provision for loan losses		1,286			1,086			2,343			1,847			1,823
Net interest income after provision
for loan losses		21,474			21,976			20,859			21,557			23,101

Noninterest income		16,537			12,662			11,905			11,643			13,278
Noninterest expense		22,912			19,858			18,400			19,804			19,965
Income before income taxes		15,099			14,780			14,364			13,396			16,414
Income tax expense		5,029			4,918			4,212			4,129			5,453
Taxable equivalent adjustment		240			248			244			244			246
Net income available to common shareholders	$	9,830		$	9,614		$	9,908		$	9,023		$	10,715



Distributed earnings allocated to common shareholders	$	5,092		$	5,154		$	5,239		$	5,237		$	5,274
Undistributed earnings allocated to common shareholders		4,669			4,392			4,610			3,733			5,373
Net earnings allocated to common shareholders	$	9,761		$	9,546		$	9,849		$	8,970		$	10,647

Average common shares outstanding		15,120			15,380			15,439			15,496			15,656

Effect of dilutive securities:
Employee stock options		73			82			69			56			65

Shares for diluted earnings per share		15,193			15,462			15,508			15,552			15,721

Basic earnings per common share	$	0.65		$	0.62		$	0.64		$	0.58		$	0.68
Diluted earnings per common share		0.64			0.62			0.64			0.58			0.68

Cash dividends declared per share		0.34			0.34			0.34			0.34			0.34


Net Interest Margin		3.78	%		3.95	%		3.92	%		3.94	%		4.22	%

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
	2011			2011		2010			2010			2010

Non-Interest Income:
Service charges	$	9,855		$	9,054	$	9,624		$	9,702		$	10,448
Insurance commissions		1,504			1,621		1,503			1,346			1,244
Trust and investment management fee income		730			753		720			618			567
Bank owned life insurance		745			758		751			1,104			813
Other income		575			476		527			439			437
Subtotal		13,409			12,662		13,125			13,209			13,509
Total investment securities impairment losses		-			-		(1,932	)		(3,028	)		(1,237	)
Noncredit impairment losses recognized in other
comprehensive income		-			-		713			127			944
Net investment securities impairment losses		-			-		(1,219	)		(2,901	)		(293	)
Gain (loss) on sale of investment securities		3,128			-		(1	)		1,335			62
Total Non-Interest Income	$	16,537		$	12,662	$	11,905		$	11,643		$	13,278

Non-Interest Expense:
Salaries and employee benefits	$	10,183		$	9,912	$	8,930		$	9,817		$	9,745
Occupancy and equipment		1,921			2,106		1,861			1,917			1,874
Depreciation		1,140			1,136		1,138			1,145			1,174
FDIC insurance expense		932			952		958			963			918
Advertising		628			680		647			891			1,241
Bankcard expenses		633			501		548			481			448
Postage, delivery and statement mailings		510			554		548			599			615
Office supplies		452			539		457			497			484
Legal and professional fees		3,511			456		502			414			398
Telecommunications		417			429		428			413			440
Repossessed asset (gains) losses, net of expenses		(7	)		198		196			234			78
Other expenses		2,592			2,382		2,187			2,433			2,550
Total Non-Interest Expense	$	22,912		$	19,858	$	18,400		$	19,804		$	19,965




Employees (Full Time Equivalent)		795			796		805			801			812
Branch Locations		68			68		68			68			67

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
	June 30			December 31
	2011			2010
	(Unaudited)
Assets
Cash and due from banks	$	59,020		$	50,043
Interest-bearing deposits in depository institutions		6,825			5,336
Federal funds sold		35,000			11,000
Cash and cash equivalents		100,845			66,379

Investment securities available-for-sale, at fair value		440,889			429,720
Investment securities held-to-maturity, at amortized cost		23,883			23,865
Total investment securities		464,772			453,585

Gross loans		1,897,344			1,865,000
Allowance for loan losses		(18,944	)		(18,224	)
Net loans		1,878,400			1,846,776

Bank owned life insurance		77,705			76,231
Premises and equipment, net		64,403			64,530
Accrued interest receivable		7,704			7,264
Net deferred tax assets		29,937			29,235
Intangible assets		56,368			56,573
Other assets		33,686			36,722
Total Assets	$	2,713,820		$	2,637,295

Liabilities
Deposits:
Noninterest-bearing	$	353,495		$	337,927
Interest-bearing:
Demand deposits		510,985			486,737
Savings deposits		421,134			397,042
Time deposits		949,007			949,669
Total deposits		2,234,621			2,171,375
Short-term borrowings		127,199			112,710
Long-term debt		16,495			16,495
Other liabilities		25,126			21,854
Total Liabilities		2,403,441			2,322,434

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, 2011 and December 31, 2010
less 3,414,116 and 2,994,501 shares in treasury, respectively		46,249			46,249
Capital surplus		102,938			103,057
Retained earnings		280,031			270,905
Cost of common stock in treasury		(117,001	)		(102,853	)
Accumulated other comprehensive loss:
Unrealized gain on securities available-for-sale		1,976			1,022
Unrealized gain on derivative instruments		-			295
Underfunded pension liability		(3,814	)		(3,814	)
Total Accumulated Other Comprehensive Loss		(1,838	)		(2,497	)
Total Stockholders' Equity		310,379			314,861
Total Liabilities and Stockholders' Equity	$	2,713,820		$	2,637,295

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

	Original Cost		Credit-Related Net Investment Impairment Losses through June 30, 2011			Unrealized Gains (Losses)			Carrying Value

Mortgage Backed Securities	$	238,275	$	-		$	7,138		$	245,413
Municipal Bonds		58,656		-			913			59,569
Pooled Bank Trust Preferreds		26,656		(19,241	)		(4,599	)		2,816
Single Issuer Bank Trust Preferreds,
Subdebt of Financial Institutions, and
Bank Holding Company Preferred Stocks		86,414		(1,653	)		(197	)		84,564
Money Markets and Mutual Funds		55,289		-			8			55,297
Federal Reserve Bank and FHLB stock		11,985		-			-			11,985
Community Bank Equity Positions		10,348		(5,130	)		(91	)		5,128
Total Investments	$	487,623	$	(26,024	)	$	3,173		$	464,772

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

	June 30		March 31		December 31		September 30		June 30
	2011		2011		2010		2010		2010

Residential real estate (1)	$	622,118	$	615,635	$	610,369	$	605,351	$	605,026
Home equity		420,752		415,719		416,172		411,481		404,789
Commercial and industrial		121,149		129,475		134,612		135,407		140,406
Commercial real estate (2)		693,959		668,710		661,758		629,924		637,708
Consumer		36,626		37,482		38,424		39,879		40,447
DDA overdrafts		2,415		1,970		2,876		2,528		3,412
Previously securitized loans		325		533		789		1,268		1,784
Gross Loans	$	1,897,344	$	1,869,524	$	1,865,000	$	1,825,838	$	1,833,572



(1) - Included in residential real estate loans are $6.9 million and $9.4 million of construction loans at June 30, 2011 and March 31, 2011.

(2) - Included in commercial real estate loans are $23.4 million and $24.3 million of construction loans at June 30, 2011 and March 31, 2011.

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

	Three Months Ended June 30,
				2011								2010
	Average					Yield/			Average					Yield/
	Balance			Interest		Rate			Balance			Interest		Rate

Assets:
Loan portfolio (1):
Residential real estate	$	613,463		$	7,342		4.80	%	$	596,474		$	7,885		5.30	%
Home equity (2)		418,305			4,965		4.76	%		401,757			5,316		5.31	%
Commercial, financial, and agriculture (3)		797,909			9,440		4.75	%		771,234			10,018		5.21	%
Installment loans to individuals (4)		46,427			852		7.36	%		51,442			1,015		7.91	%
Previously securitized loans		426			753		708.98	%		915			1,757		770.20	%
Total loans		1,876,530			23,352		4.99	%		1,821,822			25,991		5.72	%
Securities:
Taxable		449,006			4,513		4.03	%		487,604			5,317		4.37	%
Tax-exempt (5)		48,351			685		5.68	%		49,501			708		5.74	%
Total securities		497,357			5,198		4.19	%		537,105			6,025		4.50	%
Deposits in depository institutions		7,298			-		-			6,110			-		-
Federal funds sold		35,000			13		0.15	%		1,445			1		0.28	%
Total interest-earning assets		2,416,185			28,563		4.74	%		2,366,482			32,017		5.43	%
Cash and due from banks		52,867								53,556
Bank premises and equipment		64,432								64,486
Other assets		203,262								206,809
Less: Allowance for loan losses		(18,797	)							(19,520	)
Total assets	$	2,717,949							$	2,671,813

Liabilities:
Interest-bearing demand deposits		489,876			243		0.20	%		464,306			342		0.30	%
Savings deposits		417,453			273		0.26	%		391,407			259		0.27	%
Time deposits		960,187			5,052		2.11	%		991,902			6,230		2.52	%
Short-term borrowings		120,139			77		0.26	%		110,954			98		0.35	%
Long-term debt		16,495			158		3.84	%		16,925			163		3.86	%
Total interest-bearing liabilities		2,004,150			5,803		1.16	%		1,975,494			7,092		1.44	%
Noninterest-bearing demand deposits		379,129								362,363
Other liabilities		19,707								19,792
Stockholders' equity		314,963								314,164
Total liabilities and
stockholders' equity	$	2,717,949							$	2,671,813
Net interest income				$	22,760							$	24,925
Net yield on earning assets							3.78	%							4.22	%


(1) For purposes of this table, non-accruing loans have been included in average balances and loan fees, which are immaterial, have been included in interest income.
(2) Interest income includes $154 and $647 from interest rate floors for the three months ended June 30, 2011 and June 30, 2010, respectively.
(3) Includes the Company’s commercial and industrial and commercial real estate loan categories. Interest income includes $242 and $694 from interest rate floors for the three months ended June 30, 2011 and June 30, 2010, respectively.
(4) Includes the Company’s consumer and DDA overdrafts loan categories.
(5) Computed on a fully federal tax-equivalent basis assuming a tax rate of approximately 35%.

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

	Six Months Ended June 30,
				2011								2010
	Average					Yield/			Average					Yield/
	Balance			Interest		Rate			Balance			Interest		Rate

Assets:
Loan portfolio:
Residential real estate	$	611,071		$	14,812		4.89	%	$	594,715		$	15,779		5.35	%
Home equity		416,495			10,039		4.86	%		399,735			10,674		5.38	%
Commercial, financial, and agriculture		795,238			18,917		4.80	%		762,440			19,928		5.27	%
Installment loans to individuals		45,841			1,664		7.32	%		49,492			1,928		7.86	%
Previously securitized loans		541			1,658		618.02	%		1,177			2,536		434.50	%
Total loans		1,869,186			47,090		5.08	%		1,807,559			50,845		5.67	%
Securities:
Taxable		434,624			9,055		4.20	%		482,646			10,928		4.57	%
Tax-exempt		49,532			1,395		5.68	%		49,567			1,432		5.83	%
Total securities		484,156			10,450		4.35	%		532,213			12,360		4.68	%
Deposits in depository institutions		7,976			-		-			5,446			-		-
Federal funds sold		30,913			26		0.17	%		727			1		0.28	%
Total interest-earning assets		2,392,231			57,566		4.85	%		2,345,945			63,206		5.43	%
Cash and due from banks		54,653								54,094
Bank premises and equipment		64,387								64,302
Other assets		203,875								207,310
Less: Allowance for loan losses		(18,677	)							(19,315	)
Total assets	$	2,696,469							$	2,652,336

Liabilities:
Interest-bearing demand deposits		487,553			487		0.20	%		460,658			692		0.30	%
Savings deposits		409,818			530		0.26	%		386,680			540		0.28	%
Time deposits		956,430			10,262		2.16	%		995,760			12,783		2.59	%
Short-term borrowings		115,690			149		0.26	%		110,561			198		0.36	%
Long-term debt		16,495			315		3.85	%		16,934			323		3.85	%
Total interest-bearing liabilities		1,985,986			11,743		1.19	%		1,970,593			14,536		1.49	%
Noninterest-bearing demand deposits		374,270								351,806
Other liabilities		19,494								16,588
Stockholders' equity		316,719								313,349
Total liabilities and
stockholders' equity	$	2,696,469							$	2,652,336
Net interest income				$	45,823							$	48,670
Net yield on earning assets							3.86	%							4.18	%


(1) For purposes of this table, non-accruing loans have been included in average balances and loan fees, which are immaterial, have been included in interest income.
(2) Interest income includes $632 and $1,368 from interest rate floors for the six months ended June 30, 2011 and June 30, 2010, respectively.
(3) Includes the Company’s commercial and industrial and commercial real estate loan categories. Interest income includes $488 and $1,453 from interest rate floors for the six months ended June 30, 2011 and June 30, 2010, respectively.
(4) Includes the Company’s consumer and DDA overdrafts loan categories.
(5) Computed on a fully federal tax-equivalent basis assuming a tax rate of approximately 35%.

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

	June 30			March 31			December 31			September 30			June 30
	2011 (a)			2011			2010			2010			2010

Tier I Capital:
Stockholders' equity	$	310,379		$	311,122		$	314,861		$	314,841		$	312,575
Goodwill and other intangibles		(56,173	)		(56,276	)		(56,378	)		(56,487	)		(56,596	)
Accumulated other comprehensive loss (income)		1,838			1,904			2,497			(2,498	)		(950	)
Qualifying trust preferred stock		16,000			16,000			16,000			16,000			16,000
Unrealized loss on AFS securities		(82	)		(856	)		(521	)		(1,277	)		(3,668	)
Excess deferred tax assets		(4,462	)		(4,174	)		(2,904	)		(2,915	)		(3,530	)
Total tier I capital	$	267,499		$	267,720		$	273,555		$	267,664		$	263,831


Total Risk-Based Capital:
Tier I capital	$	267,499		$	267,720		$	273,555		$	267,664		$	263,831
Qualifying allowance for loan losses		18,944			18,414			18,224			18,364			19,456
Total risk-based capital	$	286,443		$	286,134		$	291,779		$	286,028		$	283,287

Net risk-weighted assets	$	1,993,003		$	1,977,395		$	1,970,635		$	1,949,080		$	1,952,076


Ratios:
Average stockholders' equity to average assets		11.59	%		11.91	%		12.09	%		11.90	%		11.76	%
Tangible capital ratio		9.56	%		9.63	%		10.01	%		10.04	%		9.90	%
Risk-based capital ratios:
Tier I capital		13.42	%		13.54	%		13.88	%		13.73	%		13.46	%
Total risk-based capital		14.37	%		14.47	%		14.81	%		14.68	%		14.45	%
Leverage capital		10.07	%		10.24	%		10.54	%		10.30	%		10.06	%


(a) June 30, 2011 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
		2011			2011			2010			2010			2010

Intangibles, net	$	56,368		$	56,471		$	56,573		$	56,682		$	56,791
Intangibles amortization expense		103			102			109			109			109

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
	2011			2011			2010			2010			2010

Balance at beginning of period	$	18,414		$	18,224		$	18,364		$	19,456		$	18,836

Charge-offs:
Commercial and industrial		-			75			25			-			-
Commercial real estate		166			34			149			2,046			796
Residential real estate		377			550			511			457			399
Home equity		168			237			312			197			238
Consumer		14			44			38			43			20
DDA overdrafts		392			434			1,867			615			565
Total charge-offs		1,117			1,374			2,902			3,358			2,018

Recoveries:
Commercial and industrial		3			3			5			12			2
Commercial real estate		26			2			24			16			376
Residential real estate		12			6			12			12			37
Home equity		4			1			15			-			1
Consumer		11			38			37			29			53
DDA overdrafts		305			428			326			350			346
Total recoveries		361			478			419			419			815

Net charge-offs		756			896			2,483			2,939			1,203
Provision for loan losses		1,286			1,086			2,343			1,847			1,823
Balance at end of period	$	18,944		$	18,414		$	18,224		$	18,364		$	19,456

Loans outstanding	$	1,897,344		$	1,869,524		$	1,865,000		$	1,825,838		$	1,833,572
Average loans outstanding		1,876,530			1,861,760			1,837,687			1,829,119			1,821,822
Allowance as a percent of loans outstanding		1.00	%		0.98	%		0.98	%		1.01	%		1.06	%
Allowance as a percent of non-performing loans		81.08	%		72.14	%		156.39	%		160.40	%		177.78	%
Net charge-offs (annualized) as a
percent of average loans outstanding		0.16	%		0.19	%		0.54	%		0.64	%		0.26	%
Net charge-offs, excluding overdraft deposit
accounts, (annualized) as a percent of average loans outstanding		0.14	%		0.19	%		0.21	%		0.58	%		0.22	%

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

	June 30			March 31			December 31			September 30			June 30
	2011			2011			2010			2010			2010

Nonaccrual loans	$	23,178		$	25,166		$	10,817		$	11,220		$	10,246
Accruing loans past due 90 days or more		188			358			782			195			698
Previously securitized loans past due 90 days or more		-			-			54			34			-
Total non-performing loans		23,366			25,524			11,653			11,449			10,944
Other real estate owned		7,999			7,241			9,316			12,636			12,722
Total non-performing assets	$	31,365		$	32,765		$	20,969		$	24,085		$	23,666

Non-performing assets as a percent of loans and
other real estate owned		1.65	%		1.75	%		1.12	%		1.31	%		1.28	%



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

	June 30			March 31			December 31			September 30			June 30
		2011			2011			2010			2010			2010

Residential real estate	$	4,971		$	3,293		$	4,774		$	3,815		$	5,298
Home equity		2,299			2,260			2,276			2,863			1,763
Commercial and industrial		476			397			-			150			332
Commercial real estate		2,186			1,740			775			112			3,348
Consumer		185			75			147			106			168
Previously securitized loans		305			262			345			518			394
DDA overdrafts		279			231			361			337			399
Total past due loans	$	10,701		$	8,258		$	8,678		$	7,901		$	11,702