West Virginia
|
55-0619957
|
(State or Other Jurisdiction of
|
(I.R.S. Employer
|
Incorporation or Organization)
|
Identification No.)
|
¨
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
¨
|
Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12(b))
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
¨
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17CFR240.13e-4(c))
|
99.1
|
News Release issued July 23, 2013
|
Dated: July 26, 2013
|
City Holding Company
|
By:
|
/s/ David L. Bumgarner
|
David L. Bumgarner
|
|
Chief Financial Officer
|
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
|
|||||||||||||||||||
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 | 20.86 | 21.05 | 26.06 | 37.22 | ||||||||||||||||||
2012
|
21.46 | 21.63 | 22.14 | 22.47 | 30.96 | 37.16 | ||||||||||||||||||
2013
|
23.27 | 23.52 | 36.07 | 40.43 | ||||||||||||||||||||
Earnings per Basic Share
|
||||||||||||||||||||||||
Quarter Ended
|
||||||||||||||||||||||||
March 31
|
June 30
|
September 30
|
December 31
|
Year-to-Date
|
||||||||||||||||||||
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 | 0.77 | 0.65 | 2.68 | |||||||||||||||||||
2012
|
0.68 | 0.50 | 0.71 | 0.73 | 2.63 | |||||||||||||||||||
2013
|
0.51 | 0.83 | 1.34 | |||||||||||||||||||||
Earnings per Diluted Share
|
||||||||||||||||||||||||
Quarter Ended
|
||||||||||||||||||||||||
March 31
|
June 30
|
September 30
|
December 31
|
Year-to-Date
|
||||||||||||||||||||
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 | 0.76 | 0.65 | 2.67 | |||||||||||||||||||
2012
|
0.67 | 0.50 | 0.71 | 0.73 | 2.61 | |||||||||||||||||||
2013
|
0.51 | 0.82 | 1.33 | |||||||||||||||||||||
Consolidated Statements of Income
|
||||||||
(Unaudited) ($ in 000s, except per share data)
|
||||||||
Three Months Ended June 30,
|
||||||||
2013
|
2012
|
|||||||
Interest Income
|
||||||||
Interest and fees on loans
|
$ | 31,771 | $ | 23,143 | ||||
Interest on investment securities:
|
||||||||
Taxable
|
2,632 | 3,943 | ||||||
Tax-exempt
|
312 | 368 | ||||||
Interest on federal funds sold
|
9 | 12 | ||||||
Total Interest Income
|
34,724 | 27,466 | ||||||
Interest Expense
|
||||||||
Interest on deposits
|
3,195 | 3,383 | ||||||
Interest on short-term borrowings
|
79 | 77 | ||||||
Interest on long-term debt
|
153 | 165 | ||||||
Total Interest Expense
|
3,427 | 3,625 | ||||||
Net Interest Income
|
31,297 | 23,841 | ||||||
Provision for loan losses
|
2,011 | 1,675 | ||||||
Net Interest Income After Provision for Loan Losses
|
29,286 | 22,166 | ||||||
Non-Interest Income
|
||||||||
Total investment securities impairment losses
|
- | (606 | ) | |||||
Noncredit impairment losses recognized in other comprehensive income
|
- | 302 | ||||||
Net investment securities impairment losses
|
- | (304 | ) | |||||
Gains on sale of investment securities
|
9 | 832 | ||||||
Net investment securities gains
|
9 | 528 | ||||||
Service charges
|
6,897 | 6,497 | ||||||
Bankcard revenue
|
3,450 | 3,152 | ||||||
Insurance commissions
|
1,358 | 1,347 | ||||||
Trust and investment management fee income
|
964 | 942 | ||||||
Bank owned life insurance
|
799 | 766 | ||||||
Other income
|
775 | 558 | ||||||
Total Non-Interest Income
|
14,252 | 13,790 | ||||||
Non-Interest Expense
|
||||||||
Salaries and employee benefits
|
12,640 | 10,668 | ||||||
Occupancy and equipment
|
2,500 | 1,978 | ||||||
Depreciation
|
1,453 | 1,109 | ||||||
FDIC insurance expense
|
341 | 394 | ||||||
Advertising
|
819 | 675 | ||||||
Bankcard expenses
|
766 | 694 | ||||||
Postage, delivery, and statement mailings
|
552 | 488 | ||||||
Office supplies
|
463 | 396 | ||||||
Legal and professional fees
|
535 | 421 | ||||||
Telecommunications
|
465 | 387 | ||||||
Repossessed asset (gains)/losses, net of expenses
|
(23 | ) | 650 | |||||
Merger related expenses
|
65 | 4,042 | ||||||
Other expenses
|
3,383 | 2,861 | ||||||
Total Non-Interest Expense
|
23,959 | 24,763 | ||||||
Income Before Income Taxes
|
19,579 | 11,193 | ||||||
Income tax expense
|
6,573 | 3,780 | ||||||
Net Income Available to Common Shareholders
|
$ | 13,006 | $ | 7,413 | ||||
Distributed earnings allocated to common shareholders
|
$ | 5,751 | $ | 5,146 | ||||
Undistributed earnings allocated to common shareholders
|
7,139 | 2,208 | ||||||
Net earnings allocated to common shareholders
|
$ | 12,890 | $ | 7,354 | ||||
Average common shares outstanding
|
15,582 | 14,680 | ||||||
Effect of dilutive securities:
|
||||||||
Employee stock options
|
170 | 79 | ||||||
Shares for diluted earnings per share
|
15,752 | 14,759 | ||||||
Basic earnings per common share
|
$ | 0.83 | $ | 0.50 | ||||
Diluted earnings per common share
|
$ | 0.82 | $ | 0.50 | ||||
Dividends declared per common share
|
$ | 0.37 | $ | 0.35 | ||||
Comprehensive Income
|
$ | 8,798 | $ | 6,673 |
Consolidated Statements of Income
|
||||||||
(Unaudited) ($ in 000s, except per share data)
|
||||||||
Six months ended June 30,
|
||||||||
2013
|
2012
|
|||||||
Interest Income
|
||||||||
Interest and fees on loans
|
$ | 61,709 | $ | 46,210 | ||||
Interest on investment securities:
|
||||||||
Taxable
|
5,382 | 7,907 | ||||||
Tax-exempt
|
636 | 755 | ||||||
Interest on federal funds sold
|
22 | 23 | ||||||
Total Interest Income
|
67,749 | 54,895 | ||||||
Interest Expense
|
||||||||
Interest on deposits
|
6,422 | 7,051 | ||||||
Interest on short-term borrowings
|
149 | 150 | ||||||
Interest on long-term debt
|
309 | 333 | ||||||
Total Interest Expense
|
6,880 | 7,534 | ||||||
Net Interest Income
|
60,869 | 47,361 | ||||||
Provision for loan losses
|
3,749 | 3,625 | ||||||
Net Interest Income After Provision for Loan Losses
|
57,120 | 43,736 | ||||||
Non-Interest Income
|
||||||||
Total investment securities impairment losses
|
- | (606 | ) | |||||
Noncredit impairment losses recognized in other comprehensive income
|
- | 302 | ||||||
Net investment securities impairment losses
|
- | (304 | ) | |||||
Gains on sale of investment securities
|
93 | 801 | ||||||
Net investment securities gains
|
93 | 497 | ||||||
Service charges
|
13,432 | 12,545 | ||||||
Bankcard revenue
|
6,649 | 6,194 | ||||||
Insurance commissions
|
3,198 | 3,343 | ||||||
Trust and investment management fee income
|
1,954 | 1,749 | ||||||
Bank owned life insurance
|
1,611 | 1,489 | ||||||
Other income
|
1,641 | 1,091 | ||||||
Total Non-Interest Income
|
28,578 | 26,908 | ||||||
Non-Interest Expense
|
||||||||
Salaries and employee benefits
|
25,589 | 20,913 | ||||||
Occupancy and equipment
|
4,971 | 3,913 | ||||||
Depreciation
|
2,852 | 2,195 | ||||||
FDIC insurance expense
|
853 | 779 | ||||||
Advertising
|
1,554 | 1,319 | ||||||
Bankcard expenses
|
1,493 | 1,314 | ||||||
Postage, delivery, and statement mailings
|
1,158 | 1,036 | ||||||
Office supplies
|
904 | 851 | ||||||
Legal and professional fees
|
971 | 738 | ||||||
Telecommunications
|
910 | 776 | ||||||
Repossessed asset losses, net of expenses
|
(178 | ) | 771 | |||||
Merger related expenses
|
5,604 | 4,177 | ||||||
Other expenses
|
6,682 | 5,496 | ||||||
Total Non-Interest Expense
|
53,363 | 44,278 | ||||||
Income Before Income Taxes
|
32,335 | 26,366 | ||||||
Income tax expense
|
11,342 | 8,924 | ||||||
Net Income Available to Common Shareholders
|
$ | 20,993 | $ | 17,442 | ||||
Distributed earnings allocated to common shareholders
|
$ | 11,502 | $ | 10,291 | ||||
Undistributed earnings allocated to common shareholders
|
9,303 | 7,011 | ||||||
Net earnings allocated to common shareholders
|
$ | 20,805 | $ | 17,302 | ||||
Average common shares outstanding
|
15,521 | 14,676 | ||||||
Effect of dilutive securities:
|
||||||||
Employee stock options
|
166 | 84 | ||||||
Shares for diluted earnings per share
|
15,687 | 14,760 | ||||||
Basic earnings per common share
|
$ | 1.34 | $ | 1.18 | ||||
Diluted earnings per common share
|
$ | 1.33 | $ | 1.17 | ||||
Dividends declared per common share
|
$ | 0.74 | $ | 0.70 | ||||
Comprehensive Income
|
$ | 16,875 | $ | 18,872 |
CITY HOLDING COMPANY AND SUBSIDIARIES
|
||||||||
Consolidated Statements of Changes in Stockholders' Equity
|
||||||||
(Unaudited) ($ in 000s)
|
||||||||
Three Months Ended
|
||||||||
June 30, 2013
|
June 30, 2012
|
|||||||
Balance at April 1
|
$ | 365,848 | $ | 316,046 | ||||
Net income
|
13,006 | 7,413 | ||||||
Other comprehensive income:
|
||||||||
Change in unrealized loss on securities available-for-sale
|
(4,208 | ) | (740 | ) | ||||
Cash dividends declared ($0.37/share) and ($0.35/share), respectively
|
(5,803 | ) | (5,188 | ) | ||||
Issuance of stock award shares, net
|
246 | 213 | ||||||
Acquisition of Community Financial Corporation
|
(198 | ) | - | |||||
Acquisition of Virginia Savings Bancorp
|
- | 7,723 | ||||||
Exercise of 20,435 stock options
|
- | - | ||||||
Purchase of 149,535 common shares of treasury
|
- | (4,845 | ) | |||||
Balance at June 30
|
$ | 368,891 | $ | 320,622 | ||||
Six Months Ended
|
||||||||
June 30, 2013
|
June 30, 2012
|
|||||||
Balance at January 1
|
$ | 333,274 | $ | 311,134 | ||||
Net income
|
20,993 | 17,442 | ||||||
Other comprehensive income:
|
||||||||
Change in unrealized gain (loss) on securities available-for-sale
|
(4,118 | ) | 1,430 | |||||
Cash dividends declared ($0.74/share) and ($0.70/share), respectively
|
(11,866 | ) | (10,337 | ) | ||||
Issuance of stock award shares, net
|
703 | 657 | ||||||
Acquisition of Community Financial Corporation
|
28,508 | - | ||||||
Acquisition of Virgina Savings Bancorp
|
- | 7,723 | ||||||
Exercise of 62,685 stock options
|
1,397 | - | ||||||
Exercise of 16,899 stock options
|
- | 488 | ||||||
Purchase of 237,535 common shares of treasury
|
- | (7,915 | ) | |||||
Balance at June 30
|
$ | 368,891 | $ | 320,622 |
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
|
||||||||||||||||
2013
|
2013
|
2012
|
2012
|
2012
|
||||||||||||||||
Interest income
|
$ | 34,724 | $ | 33,026 | $ | 28,884 | $ | 28,432 | $ | 27,466 | ||||||||||
Taxable equivalent adjustment
|
167 | 174 | 183 | 185 | 198 | |||||||||||||||
Interest income (FTE)
|
34,891 | 33,200 | 29,067 | 28,617 | 27,664 | |||||||||||||||
Interest expense
|
3,427 | 3,455 | 3,360 | 3,557 | 3,625 | |||||||||||||||
Net interest income
|
31,464 | 29,745 | 25,707 | 25,060 | 24,039 | |||||||||||||||
Provision for loan losses
|
2,011 | 1,738 | 1,775 | 975 | 1,675 | |||||||||||||||
Net interest income after provision
|
||||||||||||||||||||
for loan losses
|
29,453 | 28,007 | 23,932 | 24,085 | 22,364 | |||||||||||||||
Noninterest income
|
14,252 | 14,326 | 14,266 | 14,079 | 13,790 | |||||||||||||||
Noninterest expense
|
23,959 | 29,403 | 21,273 | 21,846 | 24,763 | |||||||||||||||
Income before income taxes
|
19,746 | 12,930 | 16,925 | 16,318 | 11,391 | |||||||||||||||
Income tax expense
|
6,573 | 4,769 | 5,848 | 5,526 | 3,780 | |||||||||||||||
Taxable equivalent adjustment
|
167 | 174 | 183 | 185 | 198 | |||||||||||||||
Net income available to common shareholders
|
$ | 13,006 | $ | 7,987 | $ | 10,894 | $ | 10,607 | $ | 7,413 | ||||||||||
Distributed earnings allocated to common shareholders
|
$ | 5,751 | $ | 5,747 | $ | 5,151 | $ | 5,150 | $ | 5,146 | ||||||||||
Undistributed earnings allocated to common shareholders
|
7,139 | 2,175 | 5,658 | 5,373 | 2,208 | |||||||||||||||
Net earnings allocated to common shareholders
|
$ | 12,890 | $ | 7,922 | $ | 10,809 | $ | 10,523 | $ | 7,354 | ||||||||||
Average common shares outstanding
|
15,582 | 15,473 | 14,755 | 14,751 | 14,680 | |||||||||||||||
Effect of dilutive securities:
|
||||||||||||||||||||
Employee stock options
|
170 | 154 | 82 | 83 | 79 | |||||||||||||||
Shares for diluted earnings per share
|
15,752 | 15,627 | 14,837 | 14,834 | 14,759 | |||||||||||||||
Basic earnings per common share
|
$ | 0.83 | $ | 0.51 | $ | 0.73 | $ | 0.71 | $ | 0.50 | ||||||||||
Diluted earnings per common share
|
0.82 | 0.51 | 0.73 | 0.71 | 0.50 | |||||||||||||||
Cash dividends declared per share
|
0.37 | 0.37 | 0.35 | 0.35 | 0.35 | |||||||||||||||
Net Interest Margin
|
4.35 | % | 4.18 | % | 3.99 | % | 3.95 | % | 3.91 | % | ||||||||||
Interest Income from Accretion Related to Fair Value Adjustments Recorded as a Result of Acquisition
|
$ | 3,517 | $ | 2,181 | $ | 1,658 | $ | 936 | $ | - | ||||||||||
Non-Interest Income and Non-Interest Expense
|
||||||||||||||||||||
(Unaudited) ($ in 000s)
|
||||||||||||||||||||
Quarter Ended
|
||||||||||||||||||||
June 30
|
March 31
|
December 31
|
September 30
|
June 30
|
||||||||||||||||
2013
|
2013
|
2012
|
2012
|
2012
|
||||||||||||||||
Non-Interest Income:
|
||||||||||||||||||||
Service charges
|
$ | 6,897 | $ | 6,535 | $ | 7,113 | $ | 6,750 | $ | 6,497 | ||||||||||
Bankcard revenue
|
3,450 | 3,199 | 3,101 | 3,111 | 3,152 | |||||||||||||||
Insurance commissions
|
1,358 | 1,840 | 1,289 | 1,439 | 1,347 | |||||||||||||||
Trust and investment management fee income
|
964 | 990 | 1,112 | 912 | 942 | |||||||||||||||
Bank owned life insurance
|
799 | 812 | 754 | 738 | 766 | |||||||||||||||
Other income
|
775 | 866 | 897 | 671 | 558 | |||||||||||||||
Subtotal
|
14,243 | 14,242 | 14,266 | 13,621 | 13,262 | |||||||||||||||
Total investment securities impairment losses
|
- | - | - | (272 | ) | (606 | ) | |||||||||||||
Noncredit impairment losses recognized in other
|
||||||||||||||||||||
comprehensive income
|
- | - | - | - | 302 | |||||||||||||||
Net investment securities impairment losses
|
- | - | - | (272 | ) | (304 | ) | |||||||||||||
Gain (loss) on sale of investment securities
|
9 | 84 | - | 730 | 832 | |||||||||||||||
Total Non-Interest Income
|
$ | 14,252 | $ | 14,326 | $ | 14,266 | $ | 14,079 | $ | 13,790 | ||||||||||
Non-Interest Expense:
|
||||||||||||||||||||
Salaries and employee benefits
|
$ | 12,640 | $ | 12,949 | $ | 11,301 | $ | 11,295 | $ | 10,668 | ||||||||||
Occupancy and equipment
|
2,500 | 2,472 | 2,147 | 2,126 | 1,978 | |||||||||||||||
Depreciation
|
1,453 | 1,399 | 1,234 | 1,175 | 1,109 | |||||||||||||||
FDIC insurance expense
|
341 | 511 | 407 | 405 | 394 | |||||||||||||||
Advertising
|
819 | 735 | 596 | 674 | 675 | |||||||||||||||
Bankcard expenses
|
766 | 727 | 628 | 720 | 694 | |||||||||||||||
Postage, delivery and statement mailings
|
552 | 605 | 514 | 529 | 488 | |||||||||||||||
Office supplies
|
463 | 441 | 412 | 407 | 396 | |||||||||||||||
Legal and professional fees
|
535 | 435 | 437 | 611 | 421 | |||||||||||||||
Telecommunications
|
465 | 445 | 405 | 433 | 387 | |||||||||||||||
Repossessed asset (gains) losses, net of expenses
|
(23 | ) | (155 | ) | 146 | 429 | 650 | |||||||||||||
Merger related expenses
|
65 | 5,540 | 373 | 157 | 4,042 | |||||||||||||||
Other expenses
|
3,383 | 3,299 | 2,673 | 2,885 | 2,861 | |||||||||||||||
Total Non-Interest Expense
|
$ | 23,959 | $ | 29,403 | $ | 21,273 | $ | 21,846 | $ | 24,763 | ||||||||||
Employees (Full Time Equivalent)
|
931 | 932 | 843 | 836 | 831 | |||||||||||||||
Branch Locations
|
83 | 83 | 73 | 73 | 73 | |||||||||||||||
CITY HOLDING COMPANY AND SUBSIDIARIES
|
||||||||
Consolidated Balance Sheets
|
||||||||
($ in 000s)
|
||||||||
June 30
|
December 31
|
|||||||
2013
|
2012
|
|||||||
(Unaudited)
|
||||||||
Assets
|
||||||||
Cash and due from banks
|
$ | 186,707 | $ | 58,718 | ||||
Interest-bearing deposits in depository institutions
|
5,627 | 16,276 | ||||||
Federal funds sold
|
- | 10,000 | ||||||
Cash and cash equivalents
|
192,334 | 84,994 | ||||||
Investment securities available-for-sale, at fair value
|
328,782 | 377,122 | ||||||
Investment securities held-to-maturity, at amortized cost
|
4,293 | 13,454 | ||||||
Other securities
|
13,344 | 11,463 | ||||||
Total investment securities
|
346,419 | 402,039 | ||||||
Gross loans
|
2,527,445 | 2,146,369 | ||||||
Allowance for loan losses
|
(20,069 | ) | (18,809 | ) | ||||
Net loans
|
2,507,376 | 2,127,560 | ||||||
Bank owned life insurance
|
90,444 | 81,901 | ||||||
Premises and equipment, net
|
82,190 | 72,728 | ||||||
Accrued interest receivable
|
8,275 | 6,692 | ||||||
Net deferred tax assets
|
46,549 | 32,737 | ||||||
Intangible assets
|
74,642 | 65,057 | ||||||
Other assets
|
34,321 | 43,758 | ||||||
Total Assets
|
$ | 3,382,550 | $ | 2,917,466 | ||||
Liabilities
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
|
$ | 510,713 | $ | 429,969 | ||||
Interest-bearing:
|
||||||||
Demand deposits
|
612,950 | 553,132 | ||||||
Savings deposits
|
603,818 | 506,869 | ||||||
Time deposits
|
1,108,469 | 919,346 | ||||||
Total deposits
|
2,835,950 | 2,409,316 | ||||||
Short-term borrowings
|
||||||||
Customer repurchase agreements
|
124,343 | 114,646 | ||||||
Long-term debt
|
16,495 | 16,495 | ||||||
Other liabilities
|
36,871 | 43,735 | ||||||
Total Liabilities
|
3,013,659 | 2,584,192 | ||||||
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, 2013 and December 31, 2012
|
||||||||
less 2,815,397 and 3,665,999 shares in treasury, respectively
|
46,249 | 46,249 | ||||||
Capital surplus
|
107,235 | 103,524 | ||||||
Retained earnings
|
318,397 | 309,270 | ||||||
Cost of common stock in treasury
|
(97,450 | ) | (124,347 | ) | ||||
Accumulated other comprehensive loss:
|
||||||||
Unrealized gain on securities available-for-sale
|
(545 | ) | 3,573 | |||||
Underfunded pension liability
|
(4,995 | ) | (4,995 | ) | ||||
Total Accumulated Other Comprehensive Loss
|
(5,540 | ) | (1,422 | ) | ||||
Total Stockholders' Equity
|
368,891 | 333,274 | ||||||
Total Liabilities and Stockholders' Equity
|
$ | 3,382,550 | $ | 2,917,466 |
CITY HOLDING COMPANY AND SUBSIDIARIES
|
||||||||||||||||
Investment Portfolio
|
||||||||||||||||
(Unaudited) ($ in 000s)
|
||||||||||||||||
Original Cost
|
Credit-Related Net Investment Impairment Losses through June 30, 2013
|
Unrealized Gains (Losses)
|
Carrying Value
|
|||||||||||||
US Government Agencies
|
$ | 2,857 | $ | - | $ | 68 | $ | 2,925 | ||||||||
Mortgage Backed Securities
|
254,240 | - | (306 | ) | 253,934 | |||||||||||
Municipal Bonds
|
43,156 | - | 833 | 43,989 | ||||||||||||
Pooled Bank Trust Preferreds
|
25,062 | (20,171 | ) | (2,427 | ) | 2,464 | ||||||||||
Single Issuer Bank Trust Preferreds,
|
||||||||||||||||
Subdebt of Financial Institutions, and
|
||||||||||||||||
Bank Holding Company Preferred Stocks
|
24,901 | (1,015 | ) | (508 | ) | 23,378 | ||||||||||
Money Markets and Mutual Funds
|
1,525 | - | (11 | ) | 1,514 | |||||||||||
Federal Reserve Bank and FHLB stock
|
13,344 | - | - | 13,344 | ||||||||||||
Community Bank Equity Positions
|
8,194 | (4,813 | ) | 1,490 | 4,871 | |||||||||||
Total Investments
|
$ | 373,279 | $ | (25,999 | ) | $ | (861 | ) | $ | 346,419 |
Loan Portfolio
|
||||||||||||||||||||||
(Unaudited) ($ in 000s)
|
||||||||||||||||||||||
June 30
|
March 31
|
December 31
|
September 30
|
June 30
|
||||||||||||||||||
2013
|
2013
|
2012
|
2012
|
2012
|
||||||||||||||||||
Residential real estate (1)
|
$ | 1,170,123 | $ | 1,149,411 | $ | 1,031,435 | $ | 1,008,305 | $ | 997,016 | ||||||||||||
Home equity - junior liens
|
138,367 | 138,333 | 143,110 | 143,058 | 143,400 | |||||||||||||||||
Commercial and industrial
|
138,299 | 149,677 | 108,739 | 105,027 | 116,288 | |||||||||||||||||
Commercial real estate (2)
|
1,023,311 | 1,001,453 | 821,970 | 787,887 | 768,176 | |||||||||||||||||
Consumer
|
54,242 | 55,274 | 36,564 | 38,285 | 37,383 | |||||||||||||||||
DDA overdrafts
|
3,103 | 2,876 | 4,551 | 2,670 | 3,326 | |||||||||||||||||
Gross Loans
|
$ | 2,527,445 | $ | 2,497,024 | $ | 2,146,369 | $ | 2,085,232 | $ | 2,065,589 | ||||||||||||
Construction loans included in:
|
||||||||||||||||||||||
(1) - Residential real estate loans
|
$ | 15,889 | $ | 16,884 | $ | 15,408 | $ | 12,787 | $ | 11,919 | ||||||||||||
(2) - Commercial real estate loans
|
$ | 24,726 | $ | 26,163 | $ | 15,352 | $ | 17,072 | $ | 18,544 | ||||||||||||
CITY HOLDING COMPANY AND SUBSIDIARIES
|
||||||||||||||||||||||
Acquisition Activity - Accretion
|
||||||||||||||||||||||
(Unaudited) ($ in millions)
|
||||||||||||||||||||||
The following table presents the actual and forecasted accretion related to the fair value adjustments on net interest income recorded as a result of the Virginia Savings Bancorp (VSB) and Community Financial Corporation (Community) acquisitions.
|
||||||||||||||||||||||
VSB
|
Community
|
|||||||||||||||||||||
Loan
|
Certificates of
|
Loan
|
Certificates of
|
|||||||||||||||||||
Year Ended:
|
Accretion(a)
|
Deposit(a)
|
Accretion(a)
|
Deposit(a)
|
Total
|
|||||||||||||||||
1Q 2013 | $ | 985 | $ | 178 | $ | 858 | $ | 160 | $ | 2,181 | ||||||||||||
2Q 2013 | 1,334 | 122 | 1,887 | 174 | 3,517 | |||||||||||||||||
Remainder 2013
|
718 | 242 | 2,755 | 305 | 4,020 | |||||||||||||||||
2014 | 974 | 537 | 3,483 | 294 | 5,288 | |||||||||||||||||
2015 | 729 | 518 | 1,993 | 160 | 3,400 | |||||||||||||||||
Thereafter
|
1,494 | 497 | 8,458 | 48 | 10,497 | |||||||||||||||||
a - 2Q 2013 amounts are based on actual results. Remainder 2013, 2014, 2015, and Thereafter 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 the actual results being materially different from the amounts estimated above.
|
Consolidated Average Balance Sheets, Yields, and Rates
|
||||||||||||||||||||||||
(Unaudited) ($ in 000s)
|
||||||||||||||||||||||||
Six Months Ended June 30,
|
||||||||||||||||||||||||
|
|
2013
|
|
|
2012
|
|
||||||||||||||||||
|
Average
|
|
Yield/
|
Average
|
|
Yield/
|
||||||||||||||||||
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Loan portfolio (1):
|
||||||||||||||||||||||||
Residential real estate (2)
|
$ | 1,283,907 | $ | 27,284 | 4.29 | % | $ | 1,082,038 | $ | 23,731 | 4.41 | % | ||||||||||||
Commercial, financial, and agriculture (3)
|
1,139,187 | 29,845 | 5.28 | % | 869,782 | 19,326 | 4.47 | % | ||||||||||||||||
Installment loans to individuals (4), (5)
|
66,649 | 3,217 | 9.73 | % | 44,060 | 1,521 | 6.94 | % | ||||||||||||||||
Previously securitized loans (6)
|
*** | 1,363 | *** | *** | 1,632 | *** | ||||||||||||||||||
Total loans
|
2,489,743 | 61,709 | 5.00 | % | 1,995,880 | 46,210 | 4.66 | % | ||||||||||||||||
Securities:
|
||||||||||||||||||||||||
Taxable
|
338,627 | 5,382 | 3.21 | % | 365,233 | 7,907 | 4.35 | % | ||||||||||||||||
Tax-exempt (7)
|
32,386 | 978 | 6.09 | % | 40,397 | 1,162 | 5.78 | % | ||||||||||||||||
Total securities
|
371,013 | 6,360 | 3.46 | % | 405,630 | 9,069 | 4.50 | % | ||||||||||||||||
Deposits in depository institutions
|
8,238 | - | - | 7,269 | - | - | ||||||||||||||||||
Federal funds sold
|
26,320 | 21 | 0.16 | % | 26,793 | 23 | 0.17 | % | ||||||||||||||||
Total interest-earning assets
|
2,895,314 | 68,090 | 4.74 | % | 2,435,572 | 55,302 | 4.57 | % | ||||||||||||||||
Cash and due from banks
|
144,096 | 73,171 | ||||||||||||||||||||||
Bank premises and equipment
|
81,604 | 66,841 | ||||||||||||||||||||||
Other assets
|
260,449 | 216,033 | ||||||||||||||||||||||
Less: Allowance for loan losses
|
(19,782 | ) | (19,452 | ) | ||||||||||||||||||||
Total assets
|
$ | 3,361,681 | $ | 2,772,165 | ||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||||||
Interest-bearing demand deposits
|
607,339 | 358 | 0.12 | % | 528,714 | 351 | 0.13 | % | ||||||||||||||||
Savings deposits
|
593,880 | 430 | 0.15 | % | 461,705 | 372 | 0.16 | % | ||||||||||||||||
Time deposits (8)
|
1,111,696 | 5,634 | 1.02 | % | 892,516 | 6,328 | 1.43 | % | ||||||||||||||||
Short-term borrowings
|
118,838 | 149 | 0.25 | % | 117,685 | 150 | 0.26 | % | ||||||||||||||||
Long-term debt
|
16,495 | 309 | 3.78 | % | 16,495 | 333 | 4.06 | % | ||||||||||||||||
Total interest-bearing liabilities
|
2,448,248 | 6,880 | 0.57 | % | 2,017,115 | 7,534 | 0.75 | % | ||||||||||||||||
Noninterest-bearing demand deposits
|
508,865 | 403,305 | ||||||||||||||||||||||
Other liabilities
|
40,142 | 32,676 | ||||||||||||||||||||||
Stockholders' equity
|
364,426 | 319,069 | ||||||||||||||||||||||
Total liabilities and
|
||||||||||||||||||||||||
stockholders' equity
|
$ | 3,361,681 | $ | 2,772,165 | ||||||||||||||||||||
Net interest income
|
$ | 61,210 | $ | 47,768 | ||||||||||||||||||||
Net yield on earning assets
|
4.26 | % | 3.94 | % | ||||||||||||||||||||
(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 on residential real estate loans includes $0.5 million and $0.2 million of accretion related to the fair value market adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively.
|
||||||||||||||||||||||||
(3) - Interest income on commercial, financial, and agriculture loans includes $1.7 million and $1.9 million of accretion related to the fair value market adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively.
|
||||||||||||||||||||||||
(4) Includes the Company’s consumer and DDA overdrafts loan categories.
|
||||||||||||||||||||||||
(5) - Interest income on installment loans to individuals includes $0.1 million and $0.6 million of accretion related to the fair value market adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively.
|
||||||||||||||||||||||||
(6) Effective January 1, 2012, the carrying value of the Company's previously securitized loans was reduced to $0.
|
||||||||||||||||||||||||
(7) Computed on a fully federal tax-equivalent basis assuming a tax rate of approximately 35%.
|
||||||||||||||||||||||||
(8) - Interest expense on time deposits includes $0.3 million and $0.3 million in accretion of the fair market value adjustments related to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively.
|
Analysis of Risk-Based Capital
|
||||||||||||||||||||
(Unaudited) ($ in 000s)
|
||||||||||||||||||||
June 30
|
March 31
|
December 31
|
September 30
|
June 30
|
||||||||||||||||
2013 (a)
|
2013
|
2012
|
2012
|
2012
|
||||||||||||||||
Tier I Capital:
|
||||||||||||||||||||
Stockholders' equity
|
$ | 368,891 | $ | 365,848 | $ | 333,274 | $ | 328,415 | $ | 320,622 | ||||||||||
Goodwill and other intangibles
|
(74,455 | ) | (75,563 | ) | (64,866 | ) | (64,912 | ) | (64,971 | ) | ||||||||||
Accumulated other comprehensive loss
|
5,540 | 1,332 | 1,422 | 365 | 2,477 | |||||||||||||||
Qualifying trust preferred stock
|
16,000 | 16,000 | 16,000 | 16,000 | 16,000 | |||||||||||||||
Unrealized loss on AFS securities
|
(11 | ) | - | - | - | - | ||||||||||||||
Excess deferred tax assets
|
(13,572 | ) | (17,737 | ) | (6,577 | ) | (7,472 | ) | (7,847 | ) | ||||||||||
Total tier I capital
|
$ | 302,394 | $ | 289,880 | $ | 279,254 | $ | 272,397 | $ | 266,282 | ||||||||||
Total Risk-Based Capital:
|
||||||||||||||||||||
Tier I capital
|
$ | 302,394 | $ | 289,880 | $ | 279,254 | $ | 272,397 | $ | 266,282 | ||||||||||
Qualifying allowance for loan losses
|
20,069 | 19,721 | 18,809 | 18,986 | 19,452 | |||||||||||||||
Unrealized gain on securities
|
686 | 696 | - | - | - | |||||||||||||||
Total risk-based capital
|
$ | 323,149 | $ | 310,297 | $ | 298,063 | $ | 291,383 | $ | 285,734 | ||||||||||
Net risk-weighted assets
|
$ | 2,450,010 | $ | 2,436,022 | $ | 2,152,622 | $ | 2,112,581 | $ | 2,136,249 | ||||||||||
Ratios:
|
||||||||||||||||||||
Average stockholders' equity to average assets
|
10.94 | % | 10.74 | % | 11.49 | % | 11.32 | % | 11.47 | % | ||||||||||
Tangible capital ratio
|
8.90 | % | 8.61 | % | 9.40 | % | 9.29 | % | 9.03 | % | ||||||||||
Risk-based capital ratios:
|
||||||||||||||||||||
Tier I capital
|
12.34 | % | 11.90 | % | 12.97 | % | 12.89 | % | 12.46 | % | ||||||||||
Total risk-based capital
|
13.19 | % | 12.74 | % | 13.85 | % | 13.79 | % | 13.38 | % | ||||||||||
Leverage capital
|
9.12 | % | 8.98 | % | 9.82 | % | 9.67 | % | 9.74 | % | ||||||||||
(a) June 30, 2013 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
|
||||||||||||||||
2013 | 2013 | 2012 | 2012 | 2012 | ||||||||||||||||
Intangibles, net
|
$ | 74,642 | $ | 75,750 | $ | 65,057 | $ | 65,103 | $ | 65,162 | ||||||||||
Intangibles amortization expense
|
260 | 260 | 135 | 135 | 109 | |||||||||||||||
Summary of Loan Loss Experience
|
||||||||||||||||||||
(Unaudited) ($ in 000s)
|
||||||||||||||||||||
Quarter Ended
|
||||||||||||||||||||
June 30
|
March 31
|
December 31
|
September 30
|
June 30
|
||||||||||||||||
2013
|
2013
|
2012
|
2012
|
2012
|
||||||||||||||||
Balance at beginning of period
|
$ | 19,721 | $ | 18,809 | $ | 18,986 | $ | 19,452 | $ | 18,628 | ||||||||||
Charge-offs:
|
||||||||||||||||||||
Commercial and industrial
|
330 | 62 | 100 | 9 | 48 | |||||||||||||||
Commercial real estate
|
419 | 203 | 1,744 | 845 | 26 | |||||||||||||||
Residential real estate
|
520 | 591 | 284 | 252 | 296 | |||||||||||||||
Home equity
|
154 | 116 | 366 | 133 | 347 | |||||||||||||||
Consumer
|
221 | 3 | 42 | 53 | 36 | |||||||||||||||
DDA overdrafts
|
348 | 339 | 394 | 418 | 375 | |||||||||||||||
Total charge-offs
|
1,992 | 1,314 | 2,930 | 1,710 | 1,128 | |||||||||||||||
Recoveries:
|
||||||||||||||||||||
Commercial and industrial
|
20 | 1 | 19 | 10 | - | |||||||||||||||
Commercial real estate
|
16 | 18 | 190 | 3 | - | |||||||||||||||
Residential real estate
|
20 | 48 | 7 | 8 | 3 | |||||||||||||||
Home equity
|
- | - | 6 | 1 | 10 | |||||||||||||||
Consumer
|
70 | 147 | 45 | 26 | 35 | |||||||||||||||
DDA overdrafts
|
203 | 274 | 711 | 221 | 229 | |||||||||||||||
Total recoveries
|
329 | 488 | 978 | 269 | 277 | |||||||||||||||
Net charge-offs
|
1,663 | 826 | 1,952 | 1,441 | 851 | |||||||||||||||
Provision for loan losses
|
1,834 | 1,738 | 1,775 | 975 | 1,675 | |||||||||||||||
Provision for acquired loans
|
177 | - | - | - | - | |||||||||||||||
Balance at end of period
|
$ | 20,069 | $ | 19,721 | $ | 18,809 | $ | 18,986 | $ | 19,452 | ||||||||||
Loans outstanding
|
$ | 2,527,445 | $ | 2,497,023 | $ | 2,146,369 | $ | 2,085,232 | $ | 2,065,589 | ||||||||||
Average loans outstanding
|
2,513,883 | 2,465,336 | 2,104,483 | 2,070,264 | 2,019,281 | |||||||||||||||
Allowance as a percent of loans outstanding
|
0.79 | % | 0.79 | % | 0.88 | % | 0.91 | % | 0.94 | % | ||||||||||
Allowance as a percent of non-performing loans
|
119.63 | % | 110.21 | % | 96.59 | % | 82.61 | % | 88.92 | % | ||||||||||
Net charge-offs (annualized) as a
|
||||||||||||||||||||
percent of average loans outstanding
|
0.26 | % | 0.13 | % | 0.37 | % | 0.28 | % | 0.17 | % | ||||||||||
Net charge-offs, excluding overdraft deposit accounts,
|
||||||||||||||||||||
(annualized) as a percent of average loans outstanding
|
0.24 | % | 0.12 | % | 0.43 | % | 0.24 | % | 0.14 | % |
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