ex99-1.htm

The Company’s ratio of nonperforming assets to total loans and other real estate owned decreased from 1.33% at June 30, 2013 to 1.15% at September 30, 2013. Excluded from this ratio are purchased credit-impaired loans in which the Company estimated cash flows and estimated a credit mark. These loans are considered performing loans provided that the loan is performing in accordance with the estimated expectations. Such loans would be considered nonperforming loans if the loan’s performance deteriorates below the initial expectations. Total past due loans decreased from $22.6 million, or 0.89% of total loans outstanding, at June 30, 2013 to $18.4 million, or 0.72% of total loans outstanding, at September 30, 2013. Acquired past due loans represent approximately 61% of total past due loans and have declined $0.9 million, or 7.8%, since June 30, 2013. In accordance with regulatory guidance issued in the third quarter of 2012, the Company classifies loans in which the borrower has filed Chapter 7 bankruptcy with the debt discharged by the bankruptcy court and the loan not reaffirmed by the borrower to be troubled debt restructured loans (“TDR’s”). Since the time of this change, TDR’s have increased from $21.5 million at September 30, 2012 to $24.8 million at September 30, 2013. More than 90% of these loans are current with interest and principal payments.

As a result of the Company’s quarterly analysis of the adequacy of the Allowance for Loan Losses (“ALLL”), the Company recorded a provision for loan losses of $1.2 million in the third quarter of 2013, compared to $1.0 for the comparable period in 2012 and $2.0 million for the second quarter of 2013. During the third quarter of 2013, the Company recovered $0.5 million from loans that had previously been charged-off, which had a positive impact on the allowance for loan losses at September 30, 2013. Changes in the amount of the allowance for loan losses and the related provision 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.

Non-interest expenses increased $2.8 million, from $21.8 million in the third quarter of 2012 to $24.7 million in the third quarter of 2013. This increase was primarily related to higher salaries and employee benefits ($1.6 million) and repossessed asset losses ($0.5 million). Salaries and employee benefits increased due to the acquisition of Community Bank ($1.0 million) and higher incentive compensation accruals ($0.2 million). Repossessed asset losses were based on updated appraisals. The Company continually re-evaluates the estimated fair value of properties that have been repossessed by obtaining updated appraisals on at least an annual basis. In addition, occupancy and equipment expense increased $0.3 million and depreciation increased $0.3 million. These increases were also primarily attributable to the acquisition of Community Bank. Overall expense increases associated with the acquisitions of Virginia Savings and Community Bank have continued to be in line with the Company’s expectations.

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 could have adverse legal actions of a material nature; (4) the Company may face competitive loss of customers; (5) the Company may be unable to manage its expense levels; (6) the Company may have difficulty retaining key employees; (7) 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; (8) changes in general economic conditions and increased competition could adversely affect the Company’s operating results; (9) 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; (10) the Company may experience difficulties growing loan and deposit balances; (11) the current economic environment poses significant challenges for us and could adversely affect our financial condition and results of operations; (12) 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; (13) the effects of the Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) recently adopted by the United States Congress and (14) the integration of the operations of City Holding and Community Financial may be more difficult than anticipated. 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. Further, the Company is required to evaluate subsequent events through the filing of its September 30, 2013 Form 10-Q. The Company will continue to evaluate the impact of any subsequent events on the preliminary September 30, 2013 results and will adjust the amounts if necessary.

CITY HOLDING COMPANY AND SUBSIDIARIES
Financial Highlights
(Unaudited)


	Three Months Ended September 30,						Percent
	2013			2012			Change

Earnings ($000s, except per share data):
Net Interest Income (FTE)	$	32,531		$	25,060			29.81	%
Net Income available to common shareholders		13,975			10,607			31.75	%
Earnings per Basic Share		0.89			0.71			24.37	%
Earnings per Diluted Share		0.88			0.71			23.63	%


Key Ratios (percent):
Return on Average Assets		1.65	%		1.47	%		12.22	%
Return on Average Tangible Equity		18.53	%		16.20	%		14.38	%
Net Interest Margin		4.47	%		3.95	%		13.13	%
Efficiency Ratio		52.09	%		56.40	%		(7.64	)%
Average Shareholders' Equity to Average Assets		11.14	%		11.32	%		(1.65	)%

Consolidated Risk Based Capital Ratios (a):
Tier I		12.66	%		12.89	%		(1.78	)%
Total		13.52	%		13.79	%		(1.96	)%

Tangible Equity to Tangible Assets		9.08	%		9.29	%		(2.18	)%


Common Stock Data:
Cash Dividends Declared per Share	$	0.37		$	0.35			5.71	%
Book Value per Share		24.03			22.14			8.55	%
Tangible Book Value per Share		19.17			17.75			8.02	%
Market Value per Share:
High		46.13			36.43			26.63	%
Low		40.04			32.37			23.69	%
End of Period		43.24			35.84			20.65	%

Price/Earnings Ratio (b)		12.18			12.56			(2.99	)%

	Nine Months Ended September 30,						Percent
		2013			2012		Change

Earnings ($000s, except per share data):
Net Interest Income (FTE)	$	93,740		$	72,829			28.71	%
Net Income available to common shareholders		34,969			28,049			24.67	%
Earnings per Basic Share		2.23			1.89			17.76	%
Earnings per Diluted Share		2.21			1.88			17.15	%


Key Ratios (percent):
Return on Average Assets		1.38	%		1.33	%		3.95	%
Return on Average Tangible Equity		15.87	%		14.26	%		11.28	%
Net Interest Margin		4.33	%		3.95	%		9.78	%
Efficiency Ratio		56.71	%		58.59	%		(3.21	)%
Average Shareholders' Equity to Average Assets		10.94	%		11.45	%		(4.41	)%


Common Stock Data:
Cash Dividends Declared per Share	$	1.11		$	1.05			5.71	%
Market Value per Share:
High		46.13			37.16			24.14	%
Low		36.07			30.96			16.51	%

Price/Earnings Ratio (b)		14.55			14.20			2.45	%


(a) September 30, 2013 risk-based capital ratios are estimated
(b) September 30, 2013 price/earnings ratio computed based on annualized third quarter 2013 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		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		24.03					36.07		46.13


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		0.77			0.65		2.68
2012		0.68		0.50		0.71			0.73		2.63
2013		0.51		0.83		0.89					2.23


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		0.76			0.65		2.67
2012		0.67		0.50		0.71			0.73		2.61
2013		0.51		0.82		0.88					2.21

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

	Three Months Ended September 30,
	2013			2012

Interest Income
Interest and fees on loans	$	32,983		$	24,633
Interest on investment securities:
Taxable		2,392			3,438
Tax-exempt		299			346
Interest on federal funds sold		-			15
Total Interest Income		35,674			28,432

Interest Expense
Interest on deposits		3,068			3,312
Interest on short-term borrowings		82			79
Interest on long-term debt		154			166
Total Interest Expense		3,304			3,557
Net Interest Income		32,370			24,875
Provision for loan losses		1,154			975
Net Interest Income After Provision for Loan Losses		31,216			23,900

Non-Interest Income
Total investment securities impairment losses		-			(272	)
Noncredit impairment losses recognized in other comprehensive income		-			-
Net investment securities impairment losses		-			(272	)
Gains on sale of investment securities		-			730
Net investment securities gains		-			458

Service charges		7,169			6,751
Bankcard revenue		3,468			3,110
Insurance commissions		1,365			1,439
Trust and investment management fee income		939			912
Bank owned life insurance		805			738
Other income		734			671
Total Non-Interest Income		14,480			14,079

Non-Interest Expense
Salaries and employee benefits		12,930			11,295
Occupancy and equipment		2,409			2,126
Depreciation		1,437			1,175
FDIC insurance expense		500			405
Advertising		712			674
Bankcard expenses		680			720
Postage, delivery, and statement mailings		541			529
Office supplies		416			407
Legal and professional fees		591			611
Telecommunications		721			433
Repossessed asset (gains)/losses, net of expenses		896			429
Merger related expenses		(73	)		157
Other expenses		2,905			2,885
Total Non-Interest Expense		24,665			21,846
Income Before Income Taxes		21,031			16,133
Income tax expense		7,056			5,526
Net Income Available to Common Shareholders	$	13,975		$	10,607


Distributed earnings allocated to common shareholders	$	5,767		$	5,150
Undistributed earnings allocated to common shareholders		8,081			5,373
Net earnings allocated to common shareholders	$	13,848		$	10,523

Average common shares outstanding		15,608			14,751
Effect of dilutive securities:
Employee stock options and warrants		182			83
Shares for diluted earnings per share		15,790			14,834

Basic earnings per common share	$	0.89		$	0.71
Diluted earnings per common share	$	0.88		$	0.71
Dividends declared per common share	$	0.37		$	0.35

Comprehensive Income	$	13,342		$	12,719

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

	Nine months ended September 30,
	2013		2012

Interest Income
Interest and fees on loans	$	94,693	$	70,843
Interest on investment securities:
Taxable		7,774		11,345
Tax-exempt		935		1,101
Interest on federal funds sold		22		38
Total Interest Income		103,424		83,327

Interest Expense
Interest on deposits		9,490		10,363
Interest on short-term borrowings		232		229
Interest on long-term debt		464		499
Total Interest Expense		10,186		11,091
Net Interest Income		93,238		72,236
Provision for loan losses		4,903		4,600
Net Interest Income After Provision for Loan Losses		88,335		67,636

Non-Interest Income
Total investment securities impairment losses		-		(878	)
Noncredit impairment losses recognized in other comprehensive income		-		302
Net investment securities impairment losses		-		(576	)
Gains on sale of investment securities		93		1,530
Net investment securities gains		93		954

Service charges		20,601		19,296
Bankcard revenue		10,117		9,305
Insurance commissions		4,563		4,782
Trust and investment management fee income		2,893		2,662
Bank owned life insurance		2,416		2,228
Other income		2,376		1,762
Total Non-Interest Income		43,059		40,989

Non-Interest Expense
Salaries and employee benefits		38,519		32,207
Occupancy and equipment		7,381		6,038
Depreciation		4,289		3,371
FDIC insurance expense		1,352		1,184
Advertising		2,266		1,993
Bankcard expenses		2,173		2,035
Postage, delivery, and statement mailings		1,698		1,565
Office supplies		1,320		1,258
Legal and professional fees		1,561		1,349
Telecommunications		1,631		1,209
Repossessed asset losses, net of expenses		718		1,200
Merger related expenses		5,455		4,335
Other expenses		9,664		8,382
Total Non-Interest Expense		78,027		66,126
Income Before Income Taxes		53,367		42,499
Income tax expense		18,398		14,450
Net Income Available to Common Shareholders	$	34,969	$	28,049


Distributed earnings allocated to common shareholders	$	17,302	$	15,451

Undistributed earnings allocated to common shareholders		17,349		12,375

Net earnings allocated to common shareholders	$	34,651	$	27,826

Average common shares outstanding		15,545		14,700
Effect of dilutive securities:
Employee stock options and warrants		168		83
Shares for diluted earnings per share		15,713		14,783

Basic earnings per common share	$	2.23	$	1.89
Diluted earnings per common share	$	2.21	$	1.88
Dividends declared per common share	$	1.11	$	1.05

Comprehensive Income	$	30,218	$	31,591

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


	Three Months Ended
	September 30, 2013			September 30, 2012

Balance at July 1	$	368,891		$	320,622

Net income		13,975			10,607
Other comprehensive income:
Change in unrealized loss on securities available-for-sale		(633	)		2,112
Cash dividends declared ($0.37/share) and ($0.35/share), respectively		(5,820	)		(5,196	)
Issuance of stock award shares, net		260			214
Exercise of 44,455 stock options		1,369			-
Exercise of 2,000 stock options		-			56
Balance at September 30	$	378,042		$	328,415



	Nine Months Ended
	September 30, 2013			September 30, 2012

Balance at January 1	$	333,274		$	311,134

Net income		34,969			28,049
Other comprehensive income:
Change in unrealized gain (loss) on securities available-for-sale		(4,751	)		3,542
Cash dividends declared ($1.11/share) and ($1.05/share), respectively		(17,686	)		(15,532	)
Issuance of stock award shares, net		962			870
Acquisition of Community Financial Corporation		28,508			-
Acquisition of Virgina Savings Bancorp		-			7,723
Exercise of 107,140 stock options		2,766			-
Exercise of 18,899 stock options		-			544
Purchase of 237,535 common shares of treasury		-			(7,915	)
Balance at September 30	$	378,042		$	328,415

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

	Quarter Ended
	September 30			June 30			March 31			December 31			September 30
	2013			2013			2013			2012			2012

Interest income	$	35,674		$	34,724		$	33,026		$	28,884		$	28,432
Taxable equivalent adjustment		161			167			174			183			185
Interest income (FTE)		35,835			34,891			33,200			29,067			28,617
Interest expense		3,304			3,427			3,455			3,360			3,557
Net interest income		32,531			31,464			29,745			25,707			25,060
Provision for loan losses		1,154			2,011			1,738			1,775			975
Net interest income after provision
for loan losses		31,377			29,453			28,007			23,932			24,085

Noninterest income		14,480			14,252			14,326			14,266			14,079
Noninterest expense		24,665			23,959			29,403			21,273			21,846
Income before income taxes		21,192			19,746			12,930			16,925			16,318
Income tax expense		7,056			6,573			4,769			5,848			5,526
Taxable equivalent adjustment		161			167			174			183			185
Net income available to common shareholders	$	13,975		$	13,006		$	7,987		$	10,894		$	10,607



Distributed earnings allocated to common shareholders	$	5,767		$	5,751		$	5,747		$	5,151		$	5,150
Undistributed earnings allocated to common shareholders		8,081			7,139			2,175			5,658			5,373
Net earnings allocated to common shareholders	$	13,848		$	12,890		$	7,922		$	10,809		$	10,523

Average common shares outstanding		15,608			15,582			15,473			14,755			14,751

Effect of dilutive securities:
Employee stock options		182			170			154			82			83

Shares for diluted earnings per share		15,790			15,752			15,627			14,837			14,834

Basic earnings per common share	$	0.89		$	0.83		$	0.51		$	0.73		$	0.71
Diluted earnings per common share		0.88			0.82			0.51			0.73			0.71

Cash dividends declared per share		0.37			0.37			0.37			0.35			0.35


Net Interest Margin		4.47	%		4.35	%		4.18	%		3.99	%		3.95	%

Interest Income from Accretion Related to Fair Value Adjustments Recorded as a Result of Acquisition	$	5,046		$	3,517		$	2,181		$	1,658		$	936

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

	Quarter Ended
	September 30			June 30			March 31			December 31		September 30
	2013			2013			2013			2012		2012

Non-Interest Income:
Service charges	$	7,169		$	6,897		$	6,535		$	7,113	$	6,750
Bankcard revenue		3,468			3,450			3,199			3,101		3,111
Insurance commissions		1,365			1,358			1,840			1,289		1,439
Trust and investment management fee income		939			964			990			1,112		912
Bank owned life insurance		805			799			812			754		738
Other income		734			775			866			897		671
Subtotal		14,480			14,243			14,242			14,266		13,621
Total investment securities impairment losses		-			-			-			-		(272	)
Noncredit impairment losses recognized in other
comprehensive income		-			-			-			-		-
Net investment securities impairment losses		-			-			-			-		(272	)
Gain (loss) on sale of investment securities		-			9			84			-		730
Total Non-Interest Income	$	14,480		$	14,252		$	14,326		$	14,266	$	14,079

Non-Interest Expense:
Salaries and employee benefits	$	12,930		$	12,640		$	12,949		$	11,301	$	11,295
Occupancy and equipment		2,409			2,500			2,472			2,147		2,126
Depreciation		1,437			1,453			1,399			1,234		1,175
FDIC insurance expense		500			341			511			407		405
Advertising		712			819			735			596		674
Bankcard expenses		680			766			727			628		720
Postage, delivery and statement mailings		541			552			605			514		529
Office supplies		416			463			441			412		407
Legal and professional fees		591			535			435			437		611
Telecommunications		721			465			445			405		433
Repossessed asset (gains) losses, net of expenses		896			(23	)		(155	)		146		429
Merger related expenses		(73	)		65			5,540			373		157
Other expenses		2,905			3,383			3,299			2,673		2,885
Total Non-Interest Expense	$	24,665		$	23,959		$	29,403		$	21,273	$	21,846




Employees (Full Time Equivalent)		924			931			932			843		836
Branch Locations		83			83			83			73		73

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
	September 30			December 31
	2013			2012
	(Unaudited)
Assets
Cash and due from banks	$	164,915		$	58,718
Interest-bearing deposits in depository institutions		14,706			16,276
Federal funds sold		-			10,000
Cash and cash equivalents		179,621			84,994

Investment securities available-for-sale, at fair value		329,247			377,122
Investment securities held-to-maturity, at amortized cost		3,994			13,454
Other securities		13,344			11,463
Total investment securities		346,585			402,039

Gross loans		2,558,456			2,146,369
Allowance for loan losses		(20,606	)		(18,809	)
Net loans		2,537,850			2,127,560

Bank owned life insurance		91,249			81,901
Premises and equipment, net		82,194			72,728
Accrued interest receivable		8,108			6,692
Net deferred tax assets		45,183			32,737
Intangible assets		76,420			65,057
Other assets		29,477			43,758
Total Assets	$	3,396,687		$	2,917,466

Liabilities
Deposits:
Noninterest-bearing	$	498,245		$	429,969
Interest-bearing:
Demand deposits		604,047			553,132
Savings deposits		606,513			506,869
Time deposits		1,098,730			919,346
Total deposits		2,807,535			2,409,316
Short-term borrowings
Customer repurchase agreements		150,943			114,646
Long-term debt		16,495			16,495
Other liabilities		43,672			43,735
Total Liabilities		3,018,645			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 September 30, 2013 and December 31, 2012
less 2,769,192 and 3,665,999 shares in treasury, respectively		46,249			46,249
Capital surplus		107,274			103,524
Retained earnings		326,553			309,270
Cost of common stock in treasury		(95,861	)		(124,347	)
Accumulated other comprehensive loss:
Unrealized gain on securities available-for-sale		(1,178	)		3,573
Underfunded pension liability		(4,995	)		(4,995	)
Total Accumulated Other Comprehensive Loss		(6,173	)		(1,422	)
Total Stockholders' Equity		378,042			333,274
Total Liabilities and Stockholders' Equity	$	3,396,687		$	2,917,466

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

		September 30		June 30		March 31		December 31		September 30
		2013		2013		2013		2012		2012

Residential real estate (1)		$	1,188,841	$	1,170,123	$	1,149,411	$	1,031,435	$	1,008,305
Home equity - junior liens			140,887		138,367		138,333		143,110		143,058
Commercial and industrial			151,185		138,299		149,677		108,739		105,027
Commercial real estate (2)			1,022,278		1,023,311		1,001,453		821,970		787,887
Consumer			50,757		54,242		55,274		36,564		38,285
DDA overdrafts			4,508		3,103		2,876		4,551		2,670
Gross Loans		$	2,558,456	$	2,527,445	$	2,497,024	$	2,146,369	$	2,085,232

Construction loans included in:
(1) - Residential real estate loans		$	14,808	$	15,889	$	16,884	$	15,408	$	12,787
(2) - Commercial real estate loans		$	17,391	$	24,726	$	26,163	$	15,352	$	17,072



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
	3Q 2013		632		121		4,119		174		5,046
Remainder 2013			268		120		1,111		131		1,630
	2014		777		537		3,277		294		4,885
	2015		541		518		1,848		160		3,067
Thereafter			1,839		497		8,514		47		10,897

a - 3Q 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
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.

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

	Three Months Ended September 30,
				2013								2012
	Average					Yield/			Average					Yield/
	Balance			Interest		Rate			Balance			Interest		Rate

Assets:
Loan portfolio (1):
Residential real estate (2)	$	1,315,848		$	13,931		4.20	%	$	1,140,910		$	13,000		4.53	%
Commercial, financial, and agriculture (3)		1,157,285			16,910		5.80	%		880,243			10,069		4.55	%
Installment loans to individuals (4), (5)		63,409			1,538		9.62	%		49,111			782		6.33	%
Previously securitized loans (6)		***			604		***			***			781		***
Total loans		2,536,542			32,983		5.16	%		2,070,264			24,632		4.73	%
Securities:
Taxable		312,786			2,392		3.03	%		372,877			3,438		3.67	%
Tax-exempt (7)		29,396			460		6.21	%		36,761			532		5.76	%
Total securities		342,182			2,852		3.31	%		409,638			3,970		3.86	%
Deposits in depository institutions		7,798			-		-			7,063			-		-
Federal funds sold		-			-		0.00	%		35,487			15		0.17	%
Total interest-earning assets		2,886,522			35,835		4.93	%		2,522,452			28,617		4.51	%
Cash and due from banks		191,116								80,335
Bank premises and equipment		82,708								72,640
Other assets		251,353								232,793
Less: Allowance for loan losses		(20,519	)							(19,889	)
Total assets	$	3,391,180							$	2,888,331

Liabilities:
Interest-bearing demand deposits		603,592			179		0.12	%		539,189			180		0.13	%
Savings deposits		602,827			216		0.14	%		497,208			204		0.16	%
Time deposits (8)		1,106,352			2,673		0.96	%		931,369			2,928		1.25	%
Short-term borrowings		127,263			82		0.26	%		122,955			79		0.26	%
Long-term debt		16,495			154		3.70	%		16,495			166		4.00	%
Total interest-bearing liabilities		2,456,529			3,304		0.53	%		2,107,216			3,557		0.67	%
Noninterest-bearing demand deposits		521,114								418,584
Other liabilities		35,854								35,461
Stockholders' equity		377,683								327,070
Total liabilities and
stockholders' equity	$	3,391,180							$	2,888,331
Net interest income				$	32,531							$	25,060
Net yield on earning assets							4.47	%							3.95	%



(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) - For 2013, interest income on residential real estate loans includes $0.3 million and $0.3 million of accretion related to the fair value adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively. For 2012, interest income on residential real estate loans includes $0.6 million of accretion related to the fair value adjustments due to the acquisition of Virginia Savings Bancorp, Inc.
(3) - For 2013, interest income on commercial, financial, and agriculture loans includes $0.3 million and $3.5 million of accretion related to the fair value adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively. For 2012, interest income on commercial, financial and agricultural loans includes $0.3 million of accretion related to the fair value adjustments due to the acquisition of Virginia Savings Bancorp, Inc.
(4) - For 2013, interest income on installment loans to individuals includes $0.1 million and $0.4 million of accretion related to the fair value adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively. For 2012, interest income on installment loans to individuals includes less than $0.1 million of accretion related to the fair value adjustments due to the acquisition of Virginia Savings Bancorp, Inc.
(5) Includes the Company’s consumer and DDA overdrafts loan categories.
(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) - For 2013, interest expense on time deposits includes $0.1 million and $0.2 million in accretion of the fair value adjustments related to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively. For 2012, interest expense on time deposits includes $0.1 million in accretion of the fair value adjustments related to the acquisition of Virginia Savings Bancorp, Inc.

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

	Nine Months Ended September 30,
				2013								2012
	Average					Yield/			Average					Yield/
	Balance			Interest		Rate			Balance			Interest		Rate

Assets:
Loan portfolio (1):
Residential real estate (2)	$	1,294,671		$	41,215		4.26	%	$	1,101,805		$	36,731		4.45	%
Commercial, financial, and agriculture (3)		1,145,286			46,755		5.46	%		873,295			29,395		4.50	%
Installment loans to individuals (4), (5)		65,557			4,755		9.70	%		45,756			2,303		6.72	%
Previously securitized loans (6)		***			1,968		***			***			2,414		***
Total loans		2,505,514			94,693		5.05	%		2,020,856			70,843		4.68	%
Securities:
Taxable		329,918			7,774		3.15	%		367,800			11,345		4.12	%
Tax-exempt (7)		31,378			1,437		6.12	%		39,176			1,694		5.78	%
Total securities		361,296			9,211		3.41	%		406,976			13,039		4.28	%
Deposits in depository institutions		8,090			-		-			7,200			-		-
Federal funds sold		17,450			22		0.17	%		29,712			38		0.17	%
Total interest-earning assets		2,892,350			103,926		4.80	%		2,464,744			83,920		4.55	%
Cash and due from banks		159,942								75,576
Bank premises and equipment		81,976								68,788
Other assets		257,384								221,661
Less: Allowance for loan losses		(20,030	)							(19,599	)
Total assets	$	3,371,622							$	2,811,170

Liabilities:
Interest-bearing demand deposits		606,076			537		0.12	%		532,231			531		0.13	%
Savings deposits		596,895			645		0.14	%		473,626			576		0.16	%
Time deposits (8)		1,109,895			8,308		1.00	%		905,561			9,256		1.37	%
Short-term borrowings		121,677			232		0.25	%		119,454			229		0.26	%
Long-term debt		16,495			464		3.76	%		16,495			499		4.04	%
Total interest-bearing liabilities		2,451,038			10,186		0.56	%		2,047,367			11,091		0.72	%
Noninterest-bearing demand deposits		512,993								408,435
Other liabilities		38,698								33,612
Stockholders' equity		368,893								321,756
Total liabilities and
stockholders' equity	$	3,371,622							$	2,811,170
Net interest income				$	93,740							$	72,829
Net yield on earning assets							4.33	%							3.95	%

(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) - For 2013, interest income on residential real estate loans includes $0.8 million and $0.5 million of accretion related to the fair value adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively. For 2012, interest income on residential real estate loans includes $0.6 million of accretion related to the fair value adjustments due to the acquisition of Virginia Savings Bancorp, Inc.
(3) - For 2013, interest income on commercial, financial, and agriculture loans includes $2.0 million and $5.4 million of accretion related to the fair value adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively. For 2012, interest income on commercial, financial and agricultural loans includes $0.3 million of accretion related to the fair value adjustments due to the acquisition of Virginia Savings Bancorp, Inc.
(4) Includes the Company’s consumer and DDA overdrafts loan categories.
(5) - For 2013, interest income on installment loans to individuals includes $0.1 million and $1.0 million of accretion related to the fair value adjustments due to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively. For 2012, interest income on installment loans to individuals includes less than $0.1 million of accretion related to the fair value adjustments due to the acquisition of Virginia Savings Bancorp, Inc.
(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) - For 2013, interest expense on time deposits includes $0.4 million and $0.5 million in accretion of the fair value adjustments related to the acquisitions of Virginia Savings Bancorp, Inc. and Community Financial Corporation, respectively. For 2012, interest expense on time deposits includes $0.1 million in accretion of the fair value adjustments related to the acquisition of Virginia Savings Bancorp, Inc.

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

	September 30			June 30			March 31			December 31			September 30
	2013 (a)			2013			2013			2012			2012

Tier I Capital:
Stockholders' equity	$	378,042		$	368,891		$	365,848		$	333,274		$	328,415
Goodwill and other intangibles		(76,233	)		(74,455	)		(75,563	)		(64,866	)		(64,912	)
Accumulated other comprehensive loss		6,173			5,540			1,332			1,422			365
Qualifying trust preferred stock		16,000			16,000			16,000			16,000			16,000
Unrealized loss on AFS securities		(18	)		(11	)		-			-			-
Excess deferred tax assets		(12,495	)		(13,572	)		(17,737	)		(6,577	)		(7,472	)
Total tier I capital	$	311,470		$	302,394		$	289,880		$	279,254		$	272,397


Total Risk-Based Capital:
Tier I capital	$	311,470		$	302,394		$	289,880		$	279,254		$	272,397
Qualifying allowance for loan losses		20,606			20,069			19,721			18,809			18,986
Unrealized gain on securities		722			686			696			-			-
Total risk-based capital	$	332,798		$	323,149		$	310,297		$	298,063		$	291,383

Net risk-weighted assets	$	2,460,895		$	2,450,010		$	2,436,022		$	2,152,622		$	2,112,581


Ratios:
Average stockholders' equity to average assets		11.14	%		10.94	%		10.74	%		11.49	%		11.32	%
Tangible capital ratio		9.08	%		8.90	%		8.61	%		9.40	%		9.29	%
Risk-based capital ratios:
Tier I capital		12.66	%		12.34	%		11.90	%		12.97	%		12.89	%
Total risk-based capital		13.52	%		13.19	%		12.74	%		13.85	%		13.79	%
Leverage capital		9.43	%		9.12	%		8.98	%		9.82	%		9.67	%


(a) September 30, 2013 risk-based capital ratios are estimated




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

	As of and for the Quarter Ended
	September 30			June 30			March 31			December 31			September 30
		2013			2013			2013			2012			2012

Intangibles, net	$	76,420		$	74,642		$	75,750		$	65,057		$	65,103
Intangibles amortization expense		260			260			260			135			135

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

	Quarter Ended
	September 30			June 30			March 31			December 31			September 30
	2013			2013			2013			2012			2012

Balance at beginning of period	$	20,069		$	19,721		$	18,809		$	18,986		$	19,452

Charge-offs:
Commercial and industrial		380			330			62			100			9
Commercial real estate		181			419			203			1,744			845
Residential real estate		487			520			591			284			252
Home equity		8			154			116			366			133
Consumer		102			221			3			42			53
DDA overdrafts		415			348			339			394			418
Total charge-offs		1,573			1,992			1,314			2,930			1,710

Recoveries:
Commercial and industrial		30			20			1			19			10
Commercial real estate		635			16			18			190			3
Residential real estate		69			20			48			7			8
Home equity		-			-			-			6			1
Consumer		25			70			147			45			26
DDA overdrafts		197			203			274			711			221
Total recoveries		956			329			488			978			269

Net charge-offs		617			1,663			826			1,952			1,441
Provision for loan losses		1,241			1,834			1,738			1,775			975
(Recovery of) provision for acquired loans		(87	)		177			-			-			-
Balance at end of period	$	20,606		$	20,069		$	19,721		$	18,809		$	18,986

Loans outstanding	$	2,558,456		$	2,527,445		$	2,497,023		$	2,146,369		$	2,085,232
Average loans outstanding		2,536,542			2,513,883			2,465,336			2,104,483			2,070,264
Allowance as a percent of loans outstanding		0.81	%		0.79	%		0.79	%		0.88	%		0.91	%
Allowance as a percent of non-performing loans		93.86	%		87.14	%		82.18	%		96.59	%		82.61	%
Net charge-offs (annualized) as a
percent of average loans outstanding		0.10	%		0.26	%		0.13	%		0.37	%		0.28	%
Net charge-offs, excluding overdraft deposit
accounts, (annualized) as a percent of average loans outstanding		0.06	%		0.24	%		0.12	%		0.43	%		0.24	%

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

	September 30			June 30			March 31			December 31			September 30
	2013			2013			2013			2012			2012

Nonaccrual loans	$	21,535		$	21,847		$	23,198		$	19,194		$	22,586
Accruing loans past due 90 days or more		418			1,185			799			280			397
Total non-performing loans		21,953			23,032			23,997			19,474			22,983
Other real estate owned		7,518			10,837			10,508			8,162			9,017
Total non-performing assets	$	29,471		$	33,869		$	34,505		$	27,636		$	32,000

Non-performing assets as a percent of loans and
other real estate owned		1.15	%		1.33	%		1.38	%		1.28	%		1.53	%



CITY HOLDING COMPANY AND SUBSIDIARIES
Summary of Total Past Due Loans
(Unaudited) ($ in 000s)
	Originated
	September 30			June 30			March 31			December 31			September 30
		2013			2013			2013			2012			2012

Residential real estate	$	5,414		$	6,525		$	5,889		$	5,748		$	4,909
Home equity - junior liens		732			655			858			2,893			2,643
Commercial and industrial		5			234			303			496			25
Commercial real estate		612			2,556			1,503			633			1,271
Consumer		96			103			83			121			136
DDA overdrafts		280			290			337			281			319
Total past due loans	$	7,139		$	10,363		$	8,973		$	10,172		$	9,303

	Acquired
	September 30			June 30			March 31			December 31			September 30
		2013			2013			2013			2012			2012

Residential real estate	$	1,032		$	951		$	2,037		$	-		$	-
Home equity - junior liens		23			-			-			-			-
Commercial and industrial		2,166			2,534			7,783			1,004			-
Commercial real estate		7,324			8,019			5,770			1,793			-
Consumer		703			693			864			-			-
DDA overdrafts		-			-			-			-			-
Total past due loans	$	11,248		$	12,197		$	16,454		$	2,797		$	-

	Total
	September 30			June 30			March 31			December 31			September 30
		2013			2013			2013			2012			2012

Residential real estate	$	6,446		$	7,476		$	7,926		$	5,748		$	4,909
Home equity - junior liens		755			655			858			2,893			2,643
Commercial and industrial		2,171			2,768			8,086			1,500			25
Commercial real estate		7,936			10,575			7,273			2,426			1,271
Consumer		799			796			947			121			136
DDA overdrafts		280			290			337			281			319
Total past due loans	$	18,387		$	22,560		$	25,427		$	12,969		$	9,303

Total past due loans as a percent of loans outstanding		0.72	%		0.89	%		1.02	%		0.60	%		0.45	%



CITY HOLDING COMPANY AND SUBSIDIARIES
Summary of Troubled Debt Restructurings
(Unaudited) ($ in 000s)

	September 30			June 30			March 31			December 31			September 30
		2013			2013			2013			2012			2012

Residential real estate	$	20,380		$	21,480		$	20,136		$	18,988		$	17,979
Home equity - junior liens		2,772			2,963			3,025			3,743			3,126
Commercial and industrial		91			95			101			101			-
Commercial real estate		1,567			1,791			1,805			734			227
Consumer		-			-			142			142			144
Total	$	24,810		$	26,329		$	25,209		$	23,708		$	21,476


At September 30, 2012, the Company reclassified $21.1 million of loans as TDRs in accordance with recent regulatory guidance. The regulatory guidance requires loans to be accounted for as collateral-dependent loans when borrowers have filed Chapter 7 bankruptcy, the debt has been discharged by the bankruptcy court and the borrower has not reaffirmed the debt.

CITY HOLDING COMPANY AND SUBSIDIARIES
Summary of Commercial Loans by Credit Quality Indicator
(Unaudited) ($ in 000s)

	Commercial and Industrial
	September 30		June 30		March 31		December 31		September 30
	2013		2013		2013		2012		2012

Pass	$	140,999	$	123,406	$	136,926	$	105,690	$	101,798
Special mention		693		3,252		4,866		878		1,066
Substandard		9,057		11,202		7,330		2,171		2,163
Doubtful		436		439		555		-		-
Total	$	151,185	$	138,299	$	149,677	$	108,739	$	105,027

	Commercial Real Estate
	September 30		June 30		March 31		December 31		September 30
		2013		2013		2013		2012		2012

Pass	$	939,942	$	933,365	$	911,280	$	771,617	$	734,134
Special mention		23,123		30,769		34,554		15,015		15,831
Substandard		58,720		58,661		53,295		35,338		37,922
Doubtful		493		516		2,324		-		-
Total	$	1,022,278	$	1,023,311	$	1,001,453	$	821,970	$	787,887

	Total
	September 30		June 30		March 31		December 31		September 30
		2013		2013		2013		2012		2012

Pass	$	1,080,941	$	1,056,771	$	1,048,206	$	877,307	$	835,932
Special mention		23,816		34,021		39,420		15,893		16,897
Substandard		67,777		69,863		60,625		37,509		40,085
Doubtful		929		955		2,879		-		-
Total	$	1,173,463	$	1,161,610	$	1,151,130	$	930,709	$	892,914




CITY HOLDING COMPANY AND SUBSIDIARIES
Summary of Non-Commercial Loans by Payment Performance
(Unaudited) ($ in 000s)
	Performing
	September 30		June 30		March 31		December 31		September 30
		2013		2013		2013		2012		2012

Residential real estate	$	1,185,616	$	1,167,003	$	1,144,952	$	1,029,142	$	1,005,522
Home equity - junior liens		140,769		138,339		138,275		141,961		141,950
Consumer		50,710		54,210		55,201		36,564		38,274
DDA overdrafts		4,506		3,101		2,874		4,548		2,666
Total	$	1,381,601	$	1,362,653	$	1,341,302	$	1,212,215	$	1,188,412

	Non-Performing
	September 30		June 30		March 31		December 31		September 30
		2013		2013		2013		2012		2012

Residential real estate	$	3,225	$	3,120	$	4,459	$	2,293	$	2,783
Home equity - junior liens		118		28		58		1,149		1,108
Consumer		47		32		73		-		11
DDA overdrafts		2		2		1		3		4
Total	$	3,392	$	3,182	$	4,591	$	3,445	$	3,906

	Total
	September 30		June 30		March 31		December 31		September 30
		2013		2013		2013		2012		2012

Residential real estate	$	1,188,841	$	1,170,123	$	1,149,411	$	1,031,435	$	1,008,305
Home equity - junior liens		140,887		138,367		138,333		143,110		143,058
Consumer		50,757		54,242		55,274		36,564		38,285
DDA overdrafts		4,508		3,103		2,875		4,551		2,670
Total	$	1,384,993	$	1,365,835	$	1,345,893	$	1,215,660	$	1,192,318

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

	Original Cost		Credit-Related Net Investment Impairment Losses through September 30, 2013			Unrealized Gains (Losses)			Carrying Value

US Government Agencies	$	2,510	$	-		$	61		$	2,571
Mortgage Backed Securities		258,271		-			(1,232	)		257,039
Municipal Bonds		41,110		-			740			41,850
Pooled Bank Trust Preferreds		24,360		(20,171	)		(1,853	)		2,336
Single Issuer Bank Trust Preferreds,
Subdebt of Financial Institutions, and
Bank Holding Company Preferred Stocks		25,137		(1,015	)		(1,140	)		22,982
Money Markets and Mutual Funds		1,525		-			(18	)		1,507
Federal Reserve Bank and FHLB stock		13,344		-			-			13,344
Community Bank Equity Positions		8,194		(4,813	)		1,575			4,956
Total Investments	$	374,451	$	(25,999	)	$	(1,867	)	$	346,585