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 January 28, 2014
|
Dated: January 30, 2014
|
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
|
|||||||||||||||||||
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 | 24.64 | 36.07 | 49.21 | ||||||||||||||||||
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 | 0.87 | 3.10 | |||||||||||||||||||
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 | 0.86 | 3.06 | |||||||||||||||||||
Consolidated Statements of Income
|
||||||||
(Unaudited) ($ in 000s, except per share data)
|
||||||||
Three Months Ended December 31,
|
||||||||
2013
|
2012
|
|||||||
Interest Income
|
||||||||
Interest and fees on loans
|
$ | 31,901 | $ | 25,588 | ||||
Interest on investment securities:
|
||||||||
Taxable
|
2,924 | 2,940 | ||||||
Tax-exempt
|
291 | 341 | ||||||
Interest on federal funds sold
|
- | 15 | ||||||
Total Interest Income
|
35,116 | 28,884 | ||||||
Interest Expense
|
||||||||
Interest on deposits
|
2,868 | 3,114 | ||||||
Interest on short-term borrowings
|
94 | 83 | ||||||
Interest on long-term debt
|
153 | 163 | ||||||
Total Interest Expense
|
3,115 | 3,360 | ||||||
Net Interest Income
|
32,001 | 25,524 | ||||||
Provision for loan losses
|
1,945 | 1,775 | ||||||
Net Interest Income After Provision for Loan Losses
|
30,056 | 23,749 | ||||||
Non-Interest Income
|
||||||||
Total investment securities impairment losses
|
- | - | ||||||
Noncredit impairment losses recognized in other comprehensive income
|
- | - | ||||||
Net investment securities impairment losses
|
- | - | ||||||
Gains on sale of investment securities
|
671 | - | ||||||
Net investment securities gains
|
671 | - | ||||||
Service charges
|
6,995 | 7,113 | ||||||
Bankcard revenue
|
3,403 | 3,101 | ||||||
Insurance commissions
|
1,269 | 1,289 | ||||||
Trust and investment management fee income
|
1,093 | 1,112 | ||||||
Bank owned life insurance
|
976 | 754 | ||||||
Other income
|
541 | 897 | ||||||
Total Non-Interest Income
|
14,948 | 14,266 | ||||||
Non-Interest Expense
|
||||||||
Salaries and employee benefits
|
12,910 | 11,301 | ||||||
Occupancy and equipment
|
2,529 | 2,147 | ||||||
Depreciation
|
1,468 | 1,234 | ||||||
FDIC insurance expense
|
500 | 407 | ||||||
Advertising
|
408 | 596 | ||||||
Bankcard expenses
|
697 | 628 | ||||||
Postage, delivery, and statement mailings
|
521 | 514 | ||||||
Office supplies
|
408 | 412 | ||||||
Legal and professional fees
|
778 | 437 | ||||||
Telecommunications
|
581 | 405 | ||||||
Repossessed asset (gains)/losses, net of expenses
|
(72 | ) | 146 | |||||
Merger related expenses
|
72 | 373 | ||||||
Other expenses
|
3,390 | 2,673 | ||||||
Total Non-Interest Expense
|
24,190 | 21,273 | ||||||
Income Before Income Taxes
|
20,814 | 16,742 | ||||||
Income tax expense
|
7,115 | 5,848 | ||||||
Net Income Available to Common Shareholders
|
$ | 13,699 | $ | 10,894 | ||||
Distributed earnings allocated to common shareholders
|
$ | 5,775 | $ | 5,151 | ||||
Undistributed earnings allocated to common shareholders
|
7,800 | 5,658 | ||||||
Net earnings allocated to common shareholders
|
$ | 13,575 | $ | 10,809 | ||||
Average common shares outstanding
|
15,636 | 14,755 | ||||||
Effect of dilutive securities:
|
||||||||
Employee stock options and warrants
|
187 | 82 | ||||||
Shares for diluted earnings per share
|
15,823 | 14,837 | ||||||
Basic earnings per common share
|
$ | 0.87 | $ | 0.73 | ||||
Diluted earnings per common share
|
$ | 0.86 | $ | 0.73 | ||||
Dividends declared per common share
|
$ | 0.37 | $ | 0.35 | ||||
Comprehensive Income
|
$ | 14,882 | $ | 9,837 |
Consolidated Statements of Income
|
||||||||
(Unaudited) ($ in 000s, except per share data)
|
||||||||
Twelve months ended December 31,
|
||||||||
2013
|
2012
|
|||||||
Interest Income
|
||||||||
Interest and fees on loans
|
$ | 126,594 | $ | 96,432 | ||||
Interest on investment securities:
|
||||||||
Taxable
|
10,697 | 14,285 | ||||||
Tax-exempt
|
1,226 | 1,442 | ||||||
Interest on federal funds sold
|
22 | 53 | ||||||
Total Interest Income
|
138,539 | 112,212 | ||||||
Interest Expense
|
||||||||
Interest on deposits
|
12,358 | 13,477 | ||||||
Interest on short-term borrowings
|
325 | 312 | ||||||
Interest on long-term debt
|
618 | 661 | ||||||
Total Interest Expense
|
13,301 | 14,450 | ||||||
Net Interest Income
|
125,238 | 97,762 | ||||||
Provision for loan losses
|
6,848 | 6,375 | ||||||
Net Interest Income After Provision for Loan Losses
|
118,390 | 91,387 | ||||||
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
|
764 | 1,530 | ||||||
Net investment securities gains
|
764 | 954 | ||||||
Service charges
|
27,596 | 26,409 | ||||||
Bankcard revenue
|
13,521 | 12,406 | ||||||
Insurance commissions
|
5,832 | 6,071 | ||||||
Trust and investment management fee income
|
3,986 | 3,774 | ||||||
Bank owned life insurance
|
3,391 | 2,983 | ||||||
Other income
|
2,916 | 2,660 | ||||||
Total Non-Interest Income
|
58,006 | 55,257 | ||||||
Non-Interest Expense
|
||||||||
Salaries and employee benefits
|
51,430 | 43,509 | ||||||
Occupancy and equipment
|
9,910 | 8,186 | ||||||
Depreciation
|
5,757 | 4,605 | ||||||
FDIC insurance expense
|
1,852 | 1,590 | ||||||
Advertising
|
2,673 | 2,589 | ||||||
Bankcard expenses
|
2,870 | 2,662 | ||||||
Postage, delivery, and statement mailings
|
2,220 | 2,079 | ||||||
Office supplies
|
1,728 | 1,669 | ||||||
Legal and professional fees
|
2,338 | 1,786 | ||||||
Telecommunications
|
2,212 | 1,614 | ||||||
Repossessed asset losses, net of expenses
|
646 | 1,346 | ||||||
Merger related expenses
|
5,526 | 4,708 | ||||||
Other expenses
|
13,054 | 11,058 | ||||||
Total Non-Interest Expense
|
102,216 | 87,401 | ||||||
Income Before Income Taxes
|
74,180 | 59,243 | ||||||
Income tax expense
|
25,513 | 20,298 | ||||||
Net Income Available to Common Shareholders
|
$ | 48,667 | $ | 38,945 | ||||
Distributed earnings allocated to common shareholders
|
$ | 23,100 | $ | 20,603 | ||||
Undistributed earnings allocated to common shareholders
|
25,127 | 18,034 | ||||||
Net earnings allocated to common shareholders
|
$ | 48,227 | $ | 38,637 | ||||
Average common shares outstanding
|
15,564 | 14,714 | ||||||
Effect of dilutive securities:
|
||||||||
Employee stock options and warrants
|
171 | 82 | ||||||
Shares for diluted earnings per share
|
15,735 | 14,796 | ||||||
Basic earnings per common share
|
$ | 3.10 | $ | 2.63 | ||||
Diluted earnings per common share
|
$ | 3.06 | $ | 2.61 | ||||
Dividends declared per common share
|
$ | 1.48 | $ | 1.40 | ||||
Comprehensive Income
|
$ | 45,099 | $ | 41,430 |
Consolidated Statements of Changes in Stockholders' Equity
|
||||||||
(Unaudited) ($ in 000s)
|
||||||||
Three Months Ended
|
||||||||
December 31, 2013
|
December 31, 2012
|
|||||||
Balance at October 1
|
$ | 378,042 | $ | 328,415 | ||||
Net income
|
13,699 | 10,894 | ||||||
Other comprehensive income:
|
||||||||
Change in unrealized loss on securities available-for-sale
|
(932 | ) | (794 | ) | ||||
Change in underfunded pension liability
|
2,115 | (263 | ) | |||||
Cash dividends declared ($0.37/share) and ($0.35/share), respectively
|
(5,827 | ) | (5,192 | ) | ||||
Issuance of stock award shares, net
|
318 | 214 | ||||||
Exercise of 19,028 stock options
|
661 | - | ||||||
Balance at December 31
|
$ | 388,076 | $ | 333,274 | ||||
Twelve Months Ended
|
||||||||
December 31, 2013
|
December 31, 2012
|
|||||||
Balance at January 1
|
$ | 333,274 | $ | 311,134 | ||||
Net income
|
48,667 | 38,945 | ||||||
Other comprehensive income:
|
||||||||
Change in unrealized gain (loss) on securities available-for-sale
|
(5,683 | ) | 2,749 | |||||
Change in underfunded pension liability
|
2,115 | (264 | ) | |||||
Cash dividends declared ($1.48/share) and ($1.40/share), respectively
|
(23,513 | ) | (20,725 | ) | ||||
Issuance of stock award shares, net
|
1,281 | 1,083 | ||||||
Acquisition of Community Financial Corporation
|
28,508 | - | ||||||
Acquisition of Virginia Savings Bancorp
|
- | 7,723 | ||||||
Exercise of 126,168 stock options
|
3,427 | - | ||||||
Exercise of 18,899 stock options
|
- | 544 | ||||||
Purchase of 237,535 common shares of treasury
|
- | (7,915 | ) | |||||
Balance at December 31
|
$ | 388,076 | $ | 333,274 |
Condensed Consolidated Quarterly Statements of Income
|
||||||||||||||||||||
(Unaudited) ($ in 000s, except per share data)
|
||||||||||||||||||||
Quarter Ended
|
||||||||||||||||||||
December 31
|
September 30
|
June 30
|
March 31
|
December 31
|
||||||||||||||||
2013
|
2013
|
2013
|
2013
|
2012
|
||||||||||||||||
Interest income
|
$ | 35,116 | $ | 35,674 | $ | 34,724 | $ | 33,026 | $ | 28,884 | ||||||||||
Taxable equivalent adjustment
|
158 | 161 | 167 | 174 | 183 | |||||||||||||||
Interest income (FTE)
|
35,274 | 35,835 | 34,891 | 33,200 | 29,067 | |||||||||||||||
Interest expense
|
3,115 | 3,304 | 3,427 | 3,455 | 3,360 | |||||||||||||||
Net interest income
|
32,159 | 32,531 | 31,464 | 29,745 | 25,707 | |||||||||||||||
Provision for loan losses
|
1,945 | 1,154 | 2,011 | 1,738 | 1,775 | |||||||||||||||
Net interest income after provision
|
||||||||||||||||||||
for loan losses
|
30,214 | 31,377 | 29,453 | 28,007 | 23,932 | |||||||||||||||
Noninterest income
|
14,948 | 14,480 | 14,252 | 14,326 | 14,266 | |||||||||||||||
Noninterest expense
|
24,190 | 24,665 | 23,959 | 29,403 | 21,273 | |||||||||||||||
Income before income taxes
|
20,972 | 21,192 | 19,746 | 12,930 | 16,925 | |||||||||||||||
Income tax expense
|
7,115 | 7,056 | 6,573 | 4,769 | 5,848 | |||||||||||||||
Taxable equivalent adjustment
|
158 | 161 | 167 | 174 | 183 | |||||||||||||||
Net income available to common shareholders
|
$ | 13,699 | $ | 13,975 | $ | 13,006 | $ | 7,987 | $ | 10,894 | ||||||||||
Distributed earnings allocated to common shareholders
|
$ | 5,775 | $ | 5,767 | $ | 5,751 | $ | 5,747 | $ | 5,151 | ||||||||||
Undistributed earnings allocated to common shareholders
|
7,800 | 8,081 | 7,139 | 2,175 | 5,658 | |||||||||||||||
Net earnings allocated to common shareholders
|
$ | 13,575 | $ | 13,848 | $ | 12,890 | $ | 7,922 | $ | 10,809 | ||||||||||
Average common shares outstanding
|
15,636 | 15,608 | 15,582 | 15,473 | 14,755 | |||||||||||||||
Effect of dilutive securities:
|
||||||||||||||||||||
Employee stock options and warrants
|
187 | 182 | 170 | 154 | 82 | |||||||||||||||
Shares for diluted earnings per share
|
15,823 | 15,790 | 15,752 | 15,627 | 14,837 | |||||||||||||||
Basic earnings per common share
|
$ | 0.87 | $ | 0.89 | $ | 0.83 | $ | 0.51 | $ | 0.73 | ||||||||||
Diluted earnings per common share
|
0.86 | 0.88 | 0.82 | 0.51 | 0.73 | |||||||||||||||
Cash dividends declared per share
|
0.37 | 0.37 | 0.37 | 0.37 | 0.35 | |||||||||||||||
Net Interest Margin
|
4.33 | % | 4.47 | % | 4.35 | % | 4.18 | % | 3.99 | % | ||||||||||
Interest Income from Accretion Related to Fair Value Adjustments Recorded as a Result of Acquisition
|
$ | 3,899 | $ | 5,046 | $ | 3,517 | $ | 2,181 | $ | 1,658 | ||||||||||
Non-Interest Income and Non-Interest Expense
|
||||||||||||||||||||
(Unaudited) ($ in 000s)
|
||||||||||||||||||||
Quarter Ended
|
||||||||||||||||||||
December 31
|
September 30
|
June 30
|
March 31
|
December 31
|
||||||||||||||||
2013
|
2013
|
2013
|
2013
|
2012
|
||||||||||||||||
Non-Interest Income:
|
||||||||||||||||||||
Service charges
|
$ | 6,995 | $ | 7,169 | $ | 6,897 | $ | 6,535 | $ | 7,113 | ||||||||||
Bankcard revenue
|
3,403 | 3,468 | 3,450 | 3,199 | 3,101 | |||||||||||||||
Insurance commissions
|
1,269 | 1,365 | 1,358 | 1,840 | 1,289 | |||||||||||||||
Trust and investment management fee income
|
1,093 | 939 | 964 | 990 | 1,112 | |||||||||||||||
Bank owned life insurance
|
976 | 805 | 799 | 812 | 754 | |||||||||||||||
Other income
|
541 | 734 | 775 | 866 | 897 | |||||||||||||||
Subtotal
|
14,277 | 14,480 | 14,243 | 14,242 | 14,266 | |||||||||||||||
Total investment securities impairment losses
|
- | - | - | - | - | |||||||||||||||
Noncredit impairment losses recognized in other
|
||||||||||||||||||||
comprehensive income
|
- | - | - | - | - | |||||||||||||||
Net investment securities impairment losses
|
- | - | - | - | - | |||||||||||||||
Gain (loss) on sale of investment securities
|
671 | - | 9 | 84 | - | |||||||||||||||
Total Non-Interest Income
|
$ | 14,948 | $ | 14,480 | $ | 14,252 | $ | 14,326 | $ | 14,266 | ||||||||||
Non-Interest Expense:
|
||||||||||||||||||||
Salaries and employee benefits
|
$ | 12,910 | $ | 12,930 | $ | 12,640 | $ | 12,949 | $ | 11,301 | ||||||||||
Occupancy and equipment
|
2,529 | 2,409 | 2,500 | 2,472 | 2,147 | |||||||||||||||
Depreciation
|
1,468 | 1,437 | 1,453 | 1,399 | 1,234 | |||||||||||||||
FDIC insurance expense
|
500 | 500 | 341 | 511 | 407 | |||||||||||||||
Advertising
|
408 | 712 | 819 | 735 | 596 | |||||||||||||||
Bankcard expenses
|
697 | 680 | 766 | 727 | 628 | |||||||||||||||
Postage, delivery and statement mailings
|
521 | 541 | 552 | 605 | 514 | |||||||||||||||
Office supplies
|
408 | 416 | 463 | 441 | 412 | |||||||||||||||
Legal and professional fees
|
778 | 591 | 535 | 435 | 437 | |||||||||||||||
Telecommunications
|
581 | 721 | 465 | 445 | 405 | |||||||||||||||
Repossessed asset (gains) losses, net of expenses
|
(72 | ) | 896 | (23 | ) | (155 | ) | 146 | ||||||||||||
Merger related expenses
|
72 | (150 | ) | 65 | 5,540 | 373 | ||||||||||||||
Other expenses
|
3,390 | 2,982 | 3,383 | 3,299 | 2,673 | |||||||||||||||
Total Non-Interest Expense
|
$ | 24,190 | $ | 24,665 | $ | 23,959 | $ | 29,403 | $ | 21,273 | ||||||||||
Employees (Full Time Equivalent)
|
923 | 924 | 931 | 932 | 843 | |||||||||||||||
Branch Locations
|
83 | 83 | 83 | 83 | 73 | |||||||||||||||
CITY HOLDING COMPANY AND SUBSIDIARIES
|
||||||||
Consolidated Balance Sheets
|
||||||||
($ in 000s)
|
||||||||
December 31
|
December 31
|
|||||||
2013
|
2012
|
|||||||
(Unaudited)
|
||||||||
Assets
|
||||||||
Cash and due from banks
|
$ | 75,999 | $ | 58,718 | ||||
Interest-bearing deposits in depository institutions
|
9,877 | 16,276 | ||||||
Federal funds sold
|
- | 10,000 | ||||||
Cash and cash equivalents
|
85,876 | 84,994 | ||||||
Investment securities available-for-sale, at fair value
|
352,660 | 377,122 | ||||||
Investment securities held-to-maturity, at amortized cost
|
4,117 | 13,454 | ||||||
Other securities
|
13,343 | 11,463 | ||||||
Total investment securities
|
370,120 | 402,039 | ||||||
Gross loans
|
2,604,782 | 2,146,369 | ||||||
Allowance for loan losses
|
(20,575 | ) | (18,809 | ) | ||||
Net loans
|
2,584,207 | 2,127,560 | ||||||
Bank owned life insurance
|
92,047 | 81,901 | ||||||
Premises and equipment, net
|
82,548 | 72,728 | ||||||
Accrued interest receivable
|
6,866 | 6,692 | ||||||
Net deferred tax assets
|
42,165 | 32,737 | ||||||
Intangible assets
|
76,557 | 65,057 | ||||||
Other assets
|
27,852 | 43,758 | ||||||
Total Assets
|
$ | 3,368,238 | $ | 2,917,466 | ||||
Liabilities
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
|
$ | 493,228 | $ | 429,969 | ||||
Interest-bearing:
|
||||||||
Demand deposits
|
601,527 | 553,132 | ||||||
Savings deposits
|
612,772 | 506,869 | ||||||
Time deposits
|
1,077,606 | 919,346 | ||||||
Total deposits
|
2,785,133 | 2,409,316 | ||||||
Short-term borrowings
|
||||||||
Customer repurchase agreements
|
137,798 | 114,646 | ||||||
Long-term debt
|
16,495 | 16,495 | ||||||
Other liabilities
|
40,736 | 43,735 | ||||||
Total Liabilities
|
2,980,162 | 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 December 31, 2013 and December 31, 2012
|
||||||||
less 2,748,922 and 3,665,999 shares in treasury, respectively
|
46,249 | 46,249 | ||||||
Capital surplus
|
107,596 | 103,524 | ||||||
Retained earnings
|
334,423 | 309,270 | ||||||
Cost of common stock in treasury
|
(95,202 | ) | (124,347 | ) | ||||
Accumulated other comprehensive loss:
|
||||||||
Unrealized gain on securities available-for-sale
|
(2,110 | ) | 3,573 | |||||
Underfunded pension liability
|
(2,880 | ) | (4,995 | ) | ||||
Total Accumulated Other Comprehensive Loss
|
(4,990 | ) | (1,422 | ) | ||||
Total Stockholders' Equity
|
388,076 | 333,274 | ||||||
Total Liabilities and Stockholders' Equity
|
$ | 3,368,238 | $ | 2,917,466 |
CITY HOLDING COMPANY AND SUBSIDIARIES
|
||||||||||||||||
Investment Portfolio
|
||||||||||||||||
(Unaudited) ($ in 000s)
|
||||||||||||||||
Original Cost
|
Credit-Related Net Investment Impairment Losses through December 31, 2013
|
Unrealized Gains (Losses)
|
Carrying Value
|
|||||||||||||
US Government Agencies
|
$ | 2,317 | $ | - | $ | 48 | $ | 2,365 | ||||||||
Mortgage Backed Securities
|
284,837 | - | (4,531 | ) | 280,306 | |||||||||||
Municipal Bonds
|
41,027 | - | 520 | 41,547 | ||||||||||||
Pooled Bank Trust Preferreds
|
23,358 | (20,171 | ) | 512 | 3,699 | |||||||||||
Single Issuer Bank Trust Preferreds,
|
||||||||||||||||
Subdebt of Financial Institutions, and
|
||||||||||||||||
Bank Holding Company Preferred Stocks
|
24,910 | (1,015 | ) | (1,193 | ) | 22,702 | ||||||||||
Money Markets and Mutual Funds
|
1,525 | - | (40 | ) | 1,485 | |||||||||||
Federal Reserve Bank and FHLB stock
|
13,343 | - | - | 13,343 | ||||||||||||
Community Bank Equity Positions
|
8,032 | (4,698 | ) | 1,339 | 4,673 | |||||||||||
Total Investments
|
$ | 399,349 | $ | (25,884 | ) | $ | (3,345 | ) | $ | 370,120 |
CITY HOLDING COMPANY AND SUBSIDIARIES
|
||||||||||||||||||||||
Loan Portfolio
|
||||||||||||||||||||||
(Unaudited) ($ in 000s)
|
||||||||||||||||||||||
December 31
|
September 30
|
June 30
|
March 31
|
December 31
|
||||||||||||||||||
2013
|
2013
|
2013
|
2013
|
2012
|
||||||||||||||||||
Residential real estate (1)
|
$ | 1,207,150 | $ | 1,188,841 | $ | 1,170,123 | $ | 1,149,411 | $ | 1,031,435 | ||||||||||||
Home equity - junior liens
|
143,390 | 140,887 | 138,367 | 138,333 | 143,110 | |||||||||||||||||
Commercial and industrial
|
164,484 | 151,185 | 138,299 | 149,677 | 108,739 | |||||||||||||||||
Commercial real estate (2)
|
1,039,451 | 1,022,278 | 1,023,311 | 1,001,453 | 821,970 | |||||||||||||||||
Consumer
|
46,402 | 50,757 | 54,242 | 55,274 | 36,564 | |||||||||||||||||
DDA overdrafts
|
3,905 | 4,508 | 3,103 | 2,876 | 4,551 | |||||||||||||||||
Gross Loans
|
$ | 2,604,782 | $ | 2,558,456 | $ | 2,527,445 | $ | 2,497,024 | $ | 2,146,369 | ||||||||||||
Construction loans included in:
|
||||||||||||||||||||||
(1) - Residential real estate loans
|
$ | 17,337 | $ | 14,808 | $ | 15,889 | $ | 16,884 | $ | 15,408 | ||||||||||||
(2) - Commercial real estate loans
|
$ | 24,026 | $ | 17,391 | $ | 24,726 | $ | 26,163 | $ | 15,352 | ||||||||||||
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 | |||||||||||||||||
4Q 2013 | 561 | 121 | 3,043 | 174 | 3,899 | |||||||||||||||||
2014 | 922 | 536 | 4,104 | 250 | 5,812 | |||||||||||||||||
2015 | 564 | 518 | 3,040 | 160 | 4,282 | |||||||||||||||||
2016 | 325 | 497 | 1,477 | 44 | 2,343 | |||||||||||||||||
a - 2013 amounts are based on actual results. 2014, 2015 and 2016 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)
|
||||||||||||||||||||||||
Twelve Months Ended December 31,
|
||||||||||||||||||||||||
|
|
2013
|
|
|
2012
|
|
||||||||||||||||||
|
Average
|
|
Yield/
|
Average
|
|
Yield/
|
||||||||||||||||||
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Loan portfolio (1):
|
||||||||||||||||||||||||
Residential real estate (2)
|
$ | 1,304,741 | $ | 55,165 | 4.23 | % | $ | 1,114,653 | $ | 49,000 | 4.40 | % | ||||||||||||
Commercial, financial, and agriculture (3)
|
1,154,637 | 62,679 | 5.43 | % | 880,502 | 40,815 | 4.64 | % | ||||||||||||||||
Installment loans to individuals (4), (5)
|
64,377 | 6,219 | 9.66 | % | 46,721 | 3,311 | 7.09 | % | ||||||||||||||||
Previously securitized loans (6)
|
*** | 2,531 | *** | *** | 3,306 | *** | ||||||||||||||||||
Total loans
|
2,523,755 | 126,594 | 5.02 | % | 2,041,876 | 96,432 | 4.72 | % | ||||||||||||||||
Securities:
|
||||||||||||||||||||||||
Taxable
|
330,225 | 10,697 | 3.24 | % | 371,092 | 14,285 | 3.85 | % | ||||||||||||||||
Tax-exempt (7)
|
30,635 | 1,885 | 6.15 | % | 38,339 | 2,218 | 5.79 | % | ||||||||||||||||
Total securities
|
360,860 | 12,582 | 3.49 | % | 409,431 | 16,503 | 4.03 | % | ||||||||||||||||
Deposits in depository institutions
|
8,116 | - | - | 7,258 | - | - | ||||||||||||||||||
Federal funds sold
|
13,052 | 22 | 0.17 | % | 30,507 | 53 | 0.17 | % | ||||||||||||||||
Total interest-earning assets
|
2,905,783 | 139,198 | 4.79 | % | 2,489,072 | 112,988 | 4.54 | % | ||||||||||||||||
Cash and due from banks
|
154,983 | 74,193 | ||||||||||||||||||||||
Bank premises and equipment
|
82,168 | 69,772 | ||||||||||||||||||||||
Other assets
|
255,544 | 223,783 | ||||||||||||||||||||||
Less: Allowance for loan losses
|
(20,127 | ) | (19,586 | ) | ||||||||||||||||||||
Total assets
|
$ | 3,378,351 | $ | 2,837,234 | ||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||||||
Interest-bearing demand deposits
|
603,844 | 712 | 0.12 | % | 534,211 | 697 | 0.13 | % | ||||||||||||||||
Savings deposits
|
599,574 | 864 | 0.14 | % | 479,760 | 759 | 0.16 | % | ||||||||||||||||
Time deposits (8)
|
1,103,945 | 10,782 | 0.98 | % | 909,951 | 12,021 | 1.32 | % | ||||||||||||||||
Short-term borrowings
|
127,679 | 325 | 0.25 | % | 121,780 | 312 | 0.26 | % | ||||||||||||||||
Long-term debt
|
16,495 | 618 | 3.75 | % | 16,495 | 661 | 4.01 | % | ||||||||||||||||
Total interest-bearing liabilities
|
2,451,537 | 13,301 | 0.54 | % | 2,062,197 | 14,450 | 0.70 | % | ||||||||||||||||
Noninterest-bearing demand deposits
|
514,210 | 414,969 | ||||||||||||||||||||||
Other liabilities
|
39,502 | 34,995 | ||||||||||||||||||||||
Stockholders' equity
|
373,102 | 325,073 | ||||||||||||||||||||||
Total liabilities and
|
||||||||||||||||||||||||
stockholders' equity
|
$ | 3,378,351 | $ | 2,837,234 | ||||||||||||||||||||
Net interest income
|
$ | 125,897 | $ | 98,538 | ||||||||||||||||||||
Net yield on earning assets
|
4.33 | % | 3.96 | % | ||||||||||||||||||||
(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 $1.0 million and $0.8 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 $0.7 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 $2.4 million and $7.9 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 $1.6 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 $1.2 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 $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 $0.5 million and $0.7 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 $0.2 million in accretion of the fair value adjustments related to the acquisition of Virginia Savings Bancorp, Inc.
|
Analysis of Risk-Based Capital
|
||||||||||||||||||||
(Unaudited) ($ in 000s)
|
||||||||||||||||||||
December 31
|
September 30
|
June 30
|
March 31
|
December 31
|
||||||||||||||||
2013 (a)
|
2013
|
2013
|
2013
|
2012
|
||||||||||||||||
Tier I Capital:
|
||||||||||||||||||||
Stockholders' equity
|
$ | 388,076 | $ | 378,042 | $ | 368,891 | $ | 365,848 | $ | 333,274 | ||||||||||
Goodwill and other intangibles
|
(76,370 | ) | (76,233 | ) | (74,455 | ) | (75,563 | ) | (64,866 | ) | ||||||||||
Accumulated other comprehensive loss
|
4,990 | 6,173 | 5,540 | 1,332 | 1,422 | |||||||||||||||
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
|
(8,896 | ) | (12,495 | ) | (13,572 | ) | (17,737 | ) | (6,577 | ) | ||||||||||
Total tier I capital
|
$ | 323,801 | $ | 311,470 | $ | 302,394 | $ | 289,880 | $ | 279,254 | ||||||||||
Total Risk-Based Capital:
|
||||||||||||||||||||
Tier I capital
|
$ | 323,801 | $ | 311,470 | $ | 302,394 | $ | 289,880 | $ | 279,254 | ||||||||||
Qualifying allowance for loan losses
|
20,575 | 20,606 | 20,069 | 19,721 | 18,809 | |||||||||||||||
Unrealized gain on securities
|
606 | 722 | 686 | 696 | - | |||||||||||||||
Total risk-based capital
|
$ | 344,982 | $ | 332,798 | $ | 323,149 | $ | 310,297 | $ | 298,063 | ||||||||||
Net risk-weighted assets
|
$ | 2,498,080 | $ | 2,460,895 | $ | 2,450,010 | $ | 2,436,022 | $ | 2,152,622 | ||||||||||
Ratios:
|
||||||||||||||||||||
Average stockholders' equity to average assets
|
11.35 | % | 11.14 | % | 10.94 | % | 10.74 | % | 11.49 | % | ||||||||||
Tangible capital ratio
|
9.46 | % | 9.08 | % | 8.90 | % | 8.61 | % | 9.40 | % | ||||||||||
Risk-based capital ratios:
|
||||||||||||||||||||
Tier I capital
|
12.96 | % | 12.66 | % | 12.34 | % | 11.90 | % | 12.97 | % | ||||||||||
Total risk-based capital
|
13.81 | % | 13.52 | % | 13.19 | % | 12.74 | % | 13.85 | % | ||||||||||
Leverage capital
|
9.77 | % | 9.43 | % | 9.12 | % | 8.98 | % | 9.82 | % | ||||||||||
(a) December 31, 2013 risk-based capital ratios are estimated
|
||||||||||||||||||||
CITY HOLDING COMPANY AND SUBSIDIARIES
|
||||||||||||||||||||
Intangibles
|
||||||||||||||||||||
(Unaudited) ($ in 000s)
|
||||||||||||||||||||
As of and for the Quarter Ended
|
||||||||||||||||||||
December 31
|
September 30
|
June 30
|
March 31
|
December 31
|
||||||||||||||||
2013 | 2013 | 2013 | 2013 | 2012 | ||||||||||||||||
Intangibles, net
|
$ | 76,557 | $ | 76,420 | $ | 74,642 | $ | 75,750 | $ | 65,057 | ||||||||||
Intangibles amortization expense
|
260 | 260 | 260 | 260 | 135 | |||||||||||||||
Summary of Loan Loss Experience
|
||||||||||||||||||||
(Unaudited) ($ in 000s)
|
||||||||||||||||||||
Quarter Ended
|
||||||||||||||||||||
December 31
|
September 30
|
June 30
|
March 31
|
December 31
|
||||||||||||||||
2013
|
2013
|
2013
|
2013
|
2012
|
||||||||||||||||
Balance at beginning of period
|
$ | 20,606 | $ | 20,069 | $ | 19,721 | $ | 18,809 | $ | 18,986 | ||||||||||
Charge-offs:
|
||||||||||||||||||||
Commercial and industrial
|
268 | 380 | 330 | 62 | 100 | |||||||||||||||
Commercial real estate
|
1,384 | 181 | 419 | 203 | 1,744 | |||||||||||||||
Residential real estate
|
583 | 487 | 520 | 591 | 284 | |||||||||||||||
Home equity
|
17 | 8 | 154 | 116 | 366 | |||||||||||||||
Consumer
|
128 | 102 | 221 | 3 | 42 | |||||||||||||||
DDA overdrafts
|
381 | 415 | 348 | 339 | 394 | |||||||||||||||
Total charge-offs
|
2,761 | 1,573 | 1,992 | 1,314 | 2,930 | |||||||||||||||
Recoveries:
|
||||||||||||||||||||
Commercial and industrial
|
33 | 30 | 20 | 1 | 19 | |||||||||||||||
Commercial real estate
|
116 | 635 | 16 | 18 | 190 | |||||||||||||||
Residential real estate
|
97 | 69 | 20 | 48 | 7 | |||||||||||||||
Home equity
|
- | - | - | - | 6 | |||||||||||||||
Consumer
|
85 | 25 | 70 | 147 | 45 | |||||||||||||||
DDA overdrafts
|
454 | 197 | 203 | 274 | 711 | |||||||||||||||
Total recoveries
|
785 | 956 | 329 | 488 | 978 | |||||||||||||||
Net charge-offs
|
1,976 | 617 | 1,663 | 826 | 1,952 | |||||||||||||||
Provision for loan losses
|
1,438 | 1,241 | 1,834 | 1,738 | 1,775 | |||||||||||||||
Provision for (recovery of) acquired loans
|
507 | (87 | ) | 177 | - | - | ||||||||||||||
Balance at end of period
|
$ | 20,575 | $ | 20,606 | $ | 20,069 | $ | 19,721 | $ | 18,809 | ||||||||||
Loans outstanding
|
$ | 2,604,782 | $ | 2,558,456 | $ | 2,527,445 | $ | 2,497,023 | $ | 2,146,369 | ||||||||||
Average loans outstanding
|
2,577,887 | 2,536,542 | 2,513,883 | 2,465,336 | 2,104,483 | |||||||||||||||
Allowance as a percent of loans outstanding
|
0.79 | % | 0.81 | % | 0.79 | % | 0.79 | % | 0.88 | % | ||||||||||
Allowance as a percent of non-performing loans
|
90.25 | % | 93.86 | % | 87.14 | % | 82.18 | % | 96.59 | % | ||||||||||
Net charge-offs (annualized) as a
|
||||||||||||||||||||
percent of average loans outstanding
|
0.31 | % | 0.10 | % | 0.26 | % | 0.13 | % | 0.37 | % | ||||||||||
Net charge-offs, excluding overdraft deposit accounts,
|
||||||||||||||||||||
(annualized) as a percent of average loans outstanding
|
0.32 | % | 0.06 | % | 0.24 | % | 0.12 | % | 0.43 | % |
Summary of Purchased Credit Impaired Loans
|
||||||||||||||||||||
(Unaudited) ($ in 000s)
|
||||||||||||||||||||
Virginia Savings Acquisition
|
||||||||||||||||||||
December 31
|
September 30
|
June 30
|
March 31
|
December 31
|
||||||||||||||||
2013
|
2013
|
2013
|
2013
|
2012
|
||||||||||||||||
Contractual required principal and interest
|
3,932 | 5,253 | 7,330 | 8,789 | 10,759 | |||||||||||||||
Carrying value
|
3,115 | 4,248 | 5,421 | 5,886 | 7,018 | |||||||||||||||
Community Financial Acquisition
|
||||||||||||||||||||
December 31
|
September 30
|
June 30
|
March 31
|
December 31
|
||||||||||||||||
2013 | 2013 | 2013 | 2013 | 2012 | ||||||||||||||||
Contractual required principal and interest
|
40,639 | 40,896 | 47,850 | ** | - | |||||||||||||||
Carrying value
|
26,865 | 24,958 | 27,845 | ** | - | |||||||||||||||
** Comparative information was not available from the Company's third party service provider
|
||||||||||||||||||||
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