10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

[X] Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For The Fiscal Year Ended December 31, 2015

OR

[  ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For The Transition Period From ____________To_____________.

Commission File number 0-11733

CITY HOLDING COMPANY

(Exact name of registrant as specified in its charter)

West Virginia	55-0619957
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
25 Gatewater Road
Charleston, West Virginia	25313
(Address of principal executive offices)	(Zip Code)

(304) 769-1100

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Name of Each Exchange on Which Registered:
Common Stock, $2.50 par value	NASDAQ Global Select Market

Securities registered pursuant to Section 12(g) of the Act:

None 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act:

Yes [ ] No [ X ]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act:

Yes [ ] No [ X ]

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. 

Yes [X] No [   ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

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Yes [X] No [   ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check one): 

Large accelerated filer [X]	Accelerated filer [ ]
Non-accelerated filer [   ]	Smaller reporting company [   ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). 

Yes [   ] No [X]

As of June 30, 2015, the last business day of the registrant’s most recently completed second quarter, the aggregate market value of the shares of common stock held by non-affiliates, based upon the closing price per share of the registrant’s common stock as reported on the Nasdaq Global Select Market was approximately $720.5 million.  (Registrant has assumed that all of its executive officers and directors are affiliates.  Such assumption shall not  be deemed to be conclusive for any other purpose.)

As of February 29, 2016, there were 14,981,420 shares of the Company’s common stock, $2.50 par value, outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the annual report to security holders for the fiscal year ended December 31, 2015 are incorporated by reference into Part 1, Item1 and Part II, Items 6, 7, 7A, and 8.  Portions of the Proxy Statement for the 2016 annual shareholders’ meeting to be held on April 27, 2016 are incorporated by reference into Part III, Items 10, 11, 12, 13, and 14.

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FORM 10-K INDEX

PART I		Pages
Item 1.	Business	4
Item 1A.	Risk Factors	14
Item 1B.	Unresolved Staff Comments	20
Item 2.	Properties	20
Item 3.	Legal Proceedings	20
Item 4.	Mine Safety Disclosures	20
PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	20
Item 6.	Selected Financial Data	23
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	23
Item 8.	Financial Statements and Supplementary Data	23
Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	23
Item 9A.	Controls and Procedures	23
Item 9B.	Other Information	23
Part III
Item 10.	Directors, Executive Officers and Corporate Governance	24
Item 11.	Executive Compensation	24
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	24
Item 13.	Certain Relationships and Related Transactions, and Director Independence	24
Item 14.	Principal Accounting Fees and Services	24
Part IV
Item 15.	Exhibits, Financial Statement Schedules	25
	Signatures	25
	Exhibit Index	27

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FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K 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 cause the Company’s actual results to differ from those projected in the forward-looking information. Important factors that could cause actual results to differ materially from those discussed in such forward-looking statements include, but are not limited to those set forth in the Company’s Annual Report on Form 10-K under “Risk Factors” and the following: (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 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)the effects of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and the regulations promulgated and to be promulgated thereunder, which may subject the Company and its subsidiaries to a variety of new and more stringent legal and regulatory requirements which adversely affect their respective business; and (13) the impact of new minimum capital thresholds established as a part of the implementation of Basel III capital reforms.  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.

PART I

Item 1.Business

City Holding Company (the “Company” or "City Holding") is a financial holding company headquartered in Charleston, West Virginia. The Company conducts its principal activities through its wholly-owned subsidiary, City National Bank of West Virginia (“City National”). City National provides banking, trust and investment management and other financial solutions through its network of 85 banking offices and 853 full-time equivalent associates located in the states of West Virginia, Virginia, eastern Kentucky and southeastern Ohio. The Company’s business activities are currently limited to one reportable business segment, which is community banking.

The principal products produced and services rendered by City National include:

• Commercial Banking - City National offers a full range of commercial banking services to corporations and other business customers. Loans are provided for a variety of business purposes, including financing for commercial and industrial projects, income producing commercial real estate, owner-occupied real estate and construction and land development. City National also provides deposit services for commercial customers, including treasury management, lockbox and other cash management services. City National provides merchant credit card services through an agreement with a third party vendor.

• Consumer Banking - City National provides banking services to consumers, including checking, savings and money market accounts as well as certificates of deposit and individual retirement accounts. In addition, City National provides consumers with installment and real estate loans and lines of credit. City National also offers credit cards through an agreement with a third party vendor.

• Mortgage Banking - City National provides mortgage banking services, including fixed and adjustable-rate mortgages, construction financing, production of conventional and government insured mortgages, secondary marketing and mortgage servicing.

• Wealth Management and Trust Services - City National offers specialized services and expertise in the areas of wealth management, trust, investment and custodial services for commercial and individual customers. These services include the administration of personal trusts and estates as well as the management of investment accounts for individuals,

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employee benefit plans and charitable foundations. City National also provides corporate trust and institutional custody, financial and estate planning and retirement plan services.

On January 9, 2015, City National sold its insurance operations, CityInsurance, to The Hilb Group, effective January 1, 2015. As a result of this sale, the Company recognized a one-time, after tax gain of $5.8 million.

On November 6, 2015, the Company consummated the acquisition of three branch locations from American Founders Bank, Inc.’s (“AFB”) located in Lexington, Kentucky. The Company acquired approximately $119 million in performing loans and assumed deposit liabilities of approximately $145 million. The Company paid AFB a deposit premium of 5.5% on non-time deposits, and 1.0% on premium loan balances acquired.

City National’s customer base is diverse and no single depositor could have a material adverse effect on liquidity, capital, or other elements of financial performance. Although no portion of City National’s loan portfolio is concentrated within a single industry or group of related industries, it historically has held residential mortgage loans as a significant portion of its loan portfolio. At December 31, 2015, approximately 53% of the Company’s loan portfolio was categorized as residential mortgage and home equity loans. However, due to the fractionated nature of residential mortgage lending, there is no concentration of credits that would be considered materially detrimental to the Company’s financial position or operating results.

The Company’s business is not seasonal and has no significant foreign sources or applications of funds.  There are no anticipated material capital expenditures, or any expected material effects on earnings or the Company’s competitive position as a result of compliance with federal, state and local provisions enacted or adopted relating to environmental protection.

City National’s loan portfolio is comprised of commercial and industrial, commercial real estate, residential real estate, home equity, consumer loans and demand deposit account ("DDA") overdrafts.

The commercial and industrial loan portfolio consists of loans to corporate and other legal entity borrowers primarily in small to mid-size industrial and commercial companies. Commercial and industrial loans are considered to contain a higher level of risk than other loan types although care is taken to minimize these risks. Numerous risk factors impact this portfolio including industry specific risks such as economy, new technology, labor rates and cyclicality, as well as customer specific factors, such as cash flow, financial structure, operating controls and asset quality.  As of December 31, 2015, City National reported $165.9 million of loans classified as “Commercial and Industrial.”

Commercial real estate loans consist of commercial mortgages, which generally are secured by nonresidential and multi-family residential properties. Commercial real estate loans are to many of the same customers and carry similar industry risks as the commercial and industrial loans.    As of December 31, 2015, City National reported $1.13 billion of loans classified as “Commercial Real Estate.”

City National diversifies risk within the commercial and industrial and commercial real estate portfolios by closely monitoring industry concentrations and portfolios to ensure that it does not exceed established lending guidelines. Diversification is intended to limit the risk of loss from any single unexpected economic event or trend. Underwriting standards require a comprehensive credit analysis and independent evaluation of all larger balance commercial loans by the loan committee prior to approval.

City National categorizes commercial loans by industry according to the North American Industry Classification System (NAICS) to monitor the portfolio for possible concentrations in one or more industries. As of December 31, 2015, City National did not have any single industry classification that exceeded 10% of total loans; however, approximately 20% of City National's commercial loans are within the Lessors of Residential Buildings and Dwellings and Lessors of Nonresidential Buildings classifications.

     Residential real estate loans represent loans to consumers that are secured by a first lien on residential property. Residential real estate loans provide for the purchase or refinance of a residence and first-lien home equity loans that allow consumers to borrower against the equity in their home. These loans primarily consist of single family 3 and 5 year adjustable rate mortgages with terms that amortize up to 30 years. City National also offers fixed-rate residential real estate loans that are sold in the secondary market that are not included on City National's balance sheet and City National does not retain the servicing rights to these loans.  Residential mortgage loans are generally underwritten to comply with Fannie Mae guidelines, while the home equity loans are underwritten with typically less documentation, but with lower loan-to-value ratios and shorter maturities. As of December 31, 2015, City National reported $1.38 billion of loans classified as “Residential Real Estate.”

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City National's home equity loans represent loans to consumers that are secured by a second (or junior) lien on a residential property. Home equity loans allow consumers to borrower against the equity in their home without paying off an existing first lien. These loans consist of home equity lines of credit ("HELOC") and amortized home equity loans that require monthly installment payments. Home equity loans are underwritten with less documentation, lower loan-to-value ratios and for shorter terms. The amount of credit extended is directly related to the value of the real estate at the time the loan is made. As of December 31, 2015, City National reported $147.0 million of loans classified as “Home Equity.”

All mortgage loans, whether fixed rate or adjustable rate, are originated in accordance with acceptable industry standards and comply with regulatory requirements. Fixed rate loans are processed and underwritten in accordance with Fannie Mae and Freddie Mac guidelines; while adjustable rate loans are underwritten in accordance with City National's internal loan policy.

Consumer loans may be secured by automobiles, boats, recreational vehicles, certificates of deposit and other personal property or they may be unsecured. The Company monitors the risk associated with these types of loans by monitoring such factors as portfolio growth, lending policies and economic conditions. Underwriting standards are continually evaluated and modified based upon these factors. As of December 31, 2015, City National reported $36.1 million of loans classified as “Consumer.”

DDA overdraft balances reflect demand deposit accounts that have been overdrawn by deposit customers and have been reclassified as loans.  As of December 31, 2015, City National reported $3.4 million of loans classified as “DDA Overdrafts.”

City National’s loan underwriting guidelines and standards are updated periodically and are presented for approval by the Board of Directors. The purpose of the standards and guidelines is to grant loans on a sound and collectible basis; to invest available funds in a safe, profitable manner; to serve the legitimate credit needs of the communities in City National's primary market area; and to ensure that all loan applicants receive fair and equal treatment in the lending process. It is the intent of the underwriting guidelines and standards to: minimize loan losses by carefully investigating the credit history of each applicant, verify the source of repayment and the ability of the applicant to repay, collateralize those loans in which collateral is deemed to be required, exercise care in the documentation of the application, review, approval, and origination process, and administer a comprehensive loan collection program. The above guidelines are adhered to and subject to the experience, background and personal judgment of the loan officer assigned to the loan application.

Market Area

City National operates a network of 85 branch offices primarily along the I-64 corridor from Lexington, Kentucky through Lexington, Virginia; and along the I-81 corridor through the Shenandoah Valley from Lexington, Virginia to Martinsburg, West Virginia. City's branch network includes 57 offices in West Virginia, 14 offices in Virginia, 11 offices in Kentucky and 3 offices in Ohio. City National provides credit, deposit and investment advisory products and services to a broad geographical area that includes many rural and small community markets in addition to larger cities including Charleston (WV), Huntington (WV), Martinsburg (WV), Winchester (VA), Staunton (VA), Virginia Beach (VA), Ashland (KY) and Lexington (KY).    

City National has approximately 11% of the deposit market share in the counties of West Virginia it serves. In Kentucky, City National has approximately 2% of the deposit market share in the counties in its eleven offices serve. In Ohio, City National has approximately 13% of the deposit market share in the county in its three offices serve. In Virginia, City National has approximately 11% of the deposit market share along the I-81 corridor in which thirteen offices serve.

According to the most recent U.S. Census Bureau estimates, in the counties where City National's offices are located, West Virginia’s population was approximately 1.0 million and has increased 1.0% since 2010.  The population in the counties that City National serves in Kentucky icreased 2.8% since 2010 and in Lawrence County, Ohio, where City National's three offices are located, the population has decreased 1.3% since 2010. The population in the counties City National serves in Virginia along the I-81 corridor have increased 2.6% since 2010, which is more comparable to the national average increase of approximately 3.3%.

Competition

As noted previously, the Company’s principal markets are located in West Virginia and contiguous markets in the surrounding states of Kentucky and Ohio and in Virginia. The majority of the Company’s banking offices are located in the areas of Charleston (WV), Huntington (WV), Beckley (WV), Lewisburg (WV), Martinsburg (WV), Lexington (KY) and along the I-81 corridor in Virginia where there is a significant presence of other financial service providers. In its markets, the Company competes with national, regional, and local community banks for deposits, credit and trust and investment management customers. In addition to traditional banking organizations, the Company competes with credit unions, finance companies, insurance companies and other financial service providers who are able to provide specialty financial services to targeted customer groups. As further

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discussed below, changes in laws and regulations enacted in recent years have increased the competitive environment the Company and its subsidiaries faces to retain and attract customers.

Regulation and Supervision

Overview: The Company, as a registered financial holding company, and City National, as an insured depository institution, operate in a highly regulated environment and are regularly examined by federal and state regulators. The following description briefly discusses certain provisions of federal and state laws and regulations to which the Company and City National are subject and the potential impact of such provisions.  These federal and state laws and regulations are designed to reduce potential loss exposure to the depositors of such depository institutions and to the Federal Deposit Insurance Corporation’s insurance fund and are not intended to protect the Company’s security holders. Proposals to change the laws and regulations governing the banking industry are frequently raised in Congress, in state legislatures, and before the various bank regulatory agencies.  The likelihood and timing of any changes and the impact such changes might have on the Company are impossible to determine with any certainty.  A change in applicable laws or regulations, or a change in the way such laws or regulations are interpreted by regulatory agencies or courts, may have a material impact on the business, operations and earnings of the Company.  To the extent that the following information describes statutory or regulatory provisions, it is qualified entirely by reference to the particular statute and/or regulation.

As a financial holding company, the Company is regulated under the Bank Holding Company Act of 1956, as amended (the “BHCA”), and is subject to inspection, examination and supervision by the Board of Governors of the Federal Reserve Board. The BHCA provides generally for “umbrella” regulation of bank holding companies such as the Company by the Federal Reserve Board, and for functional regulation of banking activities by bank regulators, securities activities by securities regulators, and insurance activities by insurance regulators. The Company is also under the jurisdiction of the Securities and Exchange Commission (“SEC”) and is subject to the disclosure and regulatory requirements of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, as administered by the SEC. The Company is listed on the Nasdaq Global Select Market ("NASDAQ") under the trading symbol “CHCO,” and is subject to the rules of the NASDAQ for listed companies.

City National is organized as a national banking association under the National Bank Act. It is subject to regulation and examination by the Office of the Comptroller of the Currency (“OCC”) and the Federal Deposit Insurance Corporation (“FDIC”). The OCC's supervision and regulation of banks is primarily intended to protect the interests of depositors. The National Bank Act generally requires each national bank to maintain reserves against deposits, restricts the nature and amount of loans that may be made and the interest that may be charged, and restricts investments and other activities.

In general, the BHCA limits the business of bank holding companies to banking, managing or controlling banks and other activities that the Federal Reserve Board has determined to be so closely related to banking as to be a proper incident thereto. Under the BHCA, bank holding companies that qualify and elect to be financial holding companies may engage in any activity, or acquire and retain the shares of a company engaged in any activity, that is either (i) financial in nature or incidental to such financial activity (as determined by the Federal Reserve Board in consultation with the OCC) or (ii) complementary to a financial activity and does not pose a substantial risk to the safety and soundness of depository institutions or the financial system generally (as solely determined by the Federal Reserve Board). Activities that are financial in nature include, among other things, securities underwriting and dealing, insurance underwriting and making merchant banking investments.

The BHCA generally limits acquisitions by bank holding companies that are not qualified as financial holding companies to commercial banks and companies engaged in activities that the Federal Reserve Board has determined to be so closely related to banking as to be a proper incident thereto. The Federal Reserve Board has the power to order any bank holding company or its subsidiaries to terminate any activity or to terminate its ownership or control of any subsidiary when the Federal Reserve Board has reasonable grounds to believe that continuation of such activity or such ownership or control constitutes a serious risk to the financial soundness, safety or stability of any bank subsidiary of the bank holding company.

The International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001 (“Patriot Act”) was adopted in response to the September 11, 2001 terrorist attacks.  The Patriot Act provides law enforcement with greater powers to investigate terrorism and prevent future terrorist acts.  Among the broad-reaching provisions contained in the Patriot Act are several designed to deter terrorists’ ability to launder money in the United States and provide law enforcement with additional powers to investigate how terrorists and terrorist organizations are financed.  The Patriot Act creates additional requirements for banks, which were already subject to similar regulations.  The Patriot Act authorizes the Secretary of Treasury to require financial institutions to take certain “special measures” when the Secretary suspects that certain transactions or accounts are related to money laundering.  These special measures may be ordered when the Secretary suspects that a jurisdiction outside of the United States, a financial institution operating outside of the United States, a class of transactions involving a jurisdiction outside of the United States or certain types of accounts are of “primary money laundering concern.”  The special measures include the following:  (a) require financial

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institutions to keep records and report on transactions or accounts at issue; (b) require financial institutions to obtain and retain information related to the beneficial ownership of any account opened or maintained by foreign persons; (c) require financial institutions to identify each customer who is permitted to use a payable-through or correspondent account and obtain certain information from each customer permitted to use the account; and (d) prohibit or impose conditions on the opening or maintaining of correspondent or payable-through accounts.  Failure of a financial institution to maintain and implement adequate programs to combat money laundering and terrorist financing, or to comply with all of the relevant laws or regulations, could have serious legal and reputational consequences for the institution.

The Company and its subsidiary bank and non-financial subsidiaries are affiliates within the meaning of the Federal Reserve Act.  The Federal Reserve Act imposes limitations on a bank with respect to extensions of credit to, investments in, and certain other transactions with, its parent bank holding company and the holding company’s other subsidiaries.  Furthermore, bank loans and extensions of credit to affiliates are also subject to various collateral requirements. Further, the authority of City National to extend credit to the Company's directors, executive officers and principal shareholders, including their immediate family members, corporations and other entities that they control, is subject to substantial restrictions and requirements the Federal Reserve Act and Regulation O promulgated thereafter. These statutes and regulations impose specific limits on the amount of loans City National may make to directors and other insiders, and specify approval procedures that must be followed in making loans that exceed certain amounts.

The Community Reinvestment Act of 1977 (“CRA”) requires depository institutions to assist in meeting the credit needs of their market areas consistent with safe and sound banking practice. Under the CRA, each depository institution is required to help meet the credit needs of its market areas by, among other things, providing credit to low- and moderate-income individuals and communities. Depository institutions are periodically examined for compliance with the CRA and are assigned ratings. In order for a financial holding company to commence any new activity permitted by the BHCA, or to acquire any company engaged in any new activity permitted by the BHCA, each insured depository institution subsidiary of the financial holding company must have received a rating of at least “satisfactory” in its most recent examination under the CRA. Furthermore, banking regulators take into account CRA ratings when considering approval of a proposed transaction.  City National received a "satisfactory" rating on its most recent CRA examination in 2015.

On July 21, 2010, sweeping financial regulatory reform legislation entitled the “Dodd-Frank Wall Street Reform and Consumer Protection Act” (the “Dodd-Frank Act”) was signed into law.  The Dodd-Frank Act implements far-reaching changes across the financial regulatory landscape, including provisions that accomplish the following:

• Centralize responsibility for consumer financial protection by creating a new agency, the Consumer Financial Protection Bureau, which has rule making authority for a wide range of consumer protection laws that apply to all banks and have broad powers to supervise and enforce consumer protection laws;

• Change standards for Federal preemption of state laws related to federally chartered institutions and their subsidiaries;

• Require the OCC to seek to make its capital requirements for national banks countercyclical so that capital requirements increase in times of economic expansion and decrease in times of economic contraction;

• Require financial holding companies, such as the Company, to be well-capitalized and well-managed . Bank holding companies and banks must also be both well-capitalized and well-managed to maintain their status as financial holding companies;

• Provide for an increase in the FDIC assessment for depository institutions with assets of $10 billion or more, increase the minimum reserve ratio for the deposit insurance fund from 1.15% to 1.35% and changes in the basis for determining FDIC premiums from deposits to assets;

• Provide for new disclosure and other requirements relating to executive compensation and corporate governance.  These disclosures and requirements apply to all public companies, not just financial institutions;

• Permanently increase the $250,000 limit for federal deposit insurance and increase the cash limit of Securities Investor Protection Corporation protection from $100,000 to $250,000;

• Repeal the federal prohibitions on the payment of interest on demand deposits;

• Amend the Electronic Fund Transfer Act (EFTA) to, among other things, give the Federal Reserve the authority to establish rules regarding interchange fees charged for electronic debit transactions by payment card issuers having assets over $10 billion and to enforce a new statutory requirement that such fees be reasonable and proportional to the actual cost of a transaction to the issuer;

• Enhance the requirements for certain transactions with affiliates under the Federal Reserve Act, including an expansion of the “covered transactions” definition and increase the amount of time for which collateral requirements regarding covered transactions must be maintained;

• Strengthen the existing limits on a depository institution’s credit exposure to one borrower by expanding the scope of limitations to include credit exposure arising from derivative transactions, repurchase agreements, and securities lending and borrowing transactions;

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• Strengthen loan restrictions to insiders by expanding the types of transactions subject to various limits, including derivative transactions, repurchase agreements, reverse repurchase agreements, and securities lending or borrowing transactions.  Additionally, restrictions on certain asset sales to and from an insider to an institution, including requirements that such sales be on market terms and approved by the institution’s board of directors in certain situations are to be put in place; and

• Increase the authority of the Federal Reserve to examine the Company and its non-bank subsidiaries.

On December 10, 2013 the Federal Reserve adopted the final rules implementing the Volcker Rule, which amends the BHCA to require the federal financial regulatory agencies to adopt rules that prohibit banks and their affiliates from engaging in proprietary trading and investing in and sponsoring certain unregistered investment companies (defined as hedge funds and private equity funds). The Volcker Rule became effective on July 21, 2012 and the final rules became effective April 1, 2014, but the Federal Reserve issued an order extending the period during which institutions have to conform their activities and investments to the requirements of the Volcker Rule to July 21, 2015. On December 18, 2014, the Federal Reserve Board announced it acted to give banks until July 21, 2016, to conform investments in and relationships with covered funds that were in place prior to December 31, 2013. The Federal Reserve Board also announced its intention to act next year to grant banks an additional one-year extension of the conformance period until July 21, 2017, to conform ownership interests in and relationships with such covered funds.

In 2013, the Consumer Financial Protection Bureau (the "CFPB") issued eight final regulations governing mainly consumer mortgage lending. The first of these rules was issued on January 10, 2013, and included the ability to repay and qualified mortgage rule. This rule imposes additional requirements on banks, including rules designed to require banks to ensure borrowers' ability to repay their mortgage and took effect January 10, 2014. The same day, the CFPB also finalized a rule on escrow accounts for higher priced mortgage loans and a rule expanding the scope of the high-cost mortgage provision in the Truth In Lending Act. On January 17, 2013, the CFPB issued its final rules implementing provisions of the Dodd-Frank Act that relate to mortgage servicing, which took effect on January 10, 2014. On January 18, 2013, the CFPB issued a final appraisal rule under the Equal Credit Opportunity Act and six federal agencies including the CFPB, issued an interagency rule on appraisals for higher-priced mortgage loans. On November 20, 2013, the CFPB issued its final rule on integrated mortgage disclosures under the Truth In Lending Act and the Real Estate Settlement Procedures Act, for which compliance was required by August 1, 2015.

Recently, banking regulatory agencies have increasingly used a general consumer protection statute to address unethical or otherwise bad business practices that may not necessarily fall directly under the purview of a specific banking or consumer finance law. Prior to the Dodd-Frank Act, there was little formal guidance to provide insight to the parameters for compliance with the "unfair or deceptive acts or practices" ("UDAP") law. However, the UDAP provisions have been expanded under the Dodd-Frank Act to apply to "unfair, deceptive or abusive acts or practices", which has been delegated to the CFPB for supervision.

Uncertainty remains as to the ultimate impact of the Dodd-Frank Act, which could have a material adverse impact either on the financial services industry as a whole, or on the Company’s business, results of operations and financial condition.  Provisions in the legislation that affect deposit insurance assessments, payment of interest on demand deposits and interchange fees could increase the costs associated with deposits as well as place limitations on certain revenues those deposits may generate. Provisions in the legislation that require revisions to the capital requirements of the Company and City National could require the Company and City National to seek other sources of capital in the future.

Capital Adequacy: Federal banking regulations set forth capital adequacy guidelines, which are used by regulatory authorities to assess the adequacy of capital in examining and supervising a bank holding company and its insured depository institutions.

Prior to January 1, 2015, the risk-based capital standard applicable to City Holding and City National were based on Basel I. Those capital adequacy guidelines generally required bank holding companies to maintain total capital equal to at least 8% of total risk-adjusted assets, with at least one-half of total capital consisting of core capital (i.e., Tier 1 capital) and the remaining amount consisting of “other” capital-eligible items (i.e., Tier II capital), such as perpetual preferred stock, certain subordinated debt, and, subject to limitations, the allowance for loan losses. Tier 1 capital generally included common stockholders’ equity plus, within certain limitations, perpetual preferred stock and trust preferred securities. For purposes of computing risk-based capital ratios, bank holding companies must have met specific capital guidelines that involved quantitative measures of assets, liabilities and certain off-balance sheet items, calculated under regulatory accounting practices. City Holding’s and City National’s capital amounts and classifications were also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. In addition to total and Tier 1 capital requirements, regulatory authorities also required bank holding companies and insured depository institutions to maintain a minimum leverage capital ratio of 3%. The leverage ratio was determined as the ratio of Tier 1 capital to total average assets, where average assets exclude goodwill, other intangibles, and other specifically excluded assets. The guidelines also provided that banking organizations that were experiencing internal growth or making

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acquisitions would be expected to maintain strong capital positions substantially above the minimum supervisory levels. In those instances where these criteria were not evident, regulatory authorities expect, and may have required, bank holding companies and insured depository institutions to maintain higher than minimum capital levels.

In July 2013, the Federal Reserve published the final rules that established a new comprehensive capital framework for banking organizations, commonly referred to as Basel III. These final rules substantially revised the risk-based capital requirements applicable to bank holding companies and depository institutions. The final rule became effective January 1, 2015 for smaller, non-complex banking organizations with full implementation by January 1, 2019.

Regulatory guidelines require the Company to maintain a minimum common equity tier I ("CET 1") capital ratio of 4.5% and a total capital to risk-adjusted assets ratio of 8.0%, with at least one-half of capital consisting of tangible common stockholders’ equity and a minimum Tier 1 leverage ratio of 6.0%. Similarly, City National is also required to maintain minimum capital levels as set forth by various regulatory agencies. Under capital adequacy guidelines, City National is required to maintain minimum CET 1, total capital, Tier 1 capital, and leverage ratios of 4.5%, 8.0%, 6.0%, and 4.0%, respectively. To be classified as “well capitalized,” City National must maintain CET 1, total capital, Tier 1 capital, and leverage ratios of 6.5%, 10.0%, 8.0%, and 5.0%, respectively.

When fully phased in on January 1, 2019, the Basel III Capital Rules will require City Holding and City National to maintain (i) a minimum ratio of CET 1 to risk-weighted assets of at least 4.5%, plus a 2.5% "capital conservation buffer" (which is added to the 4.5% CET 1 ratio as that buffer is phased in, effectively resulting in a minimum ratio of CET 1 to risk-weighted assets of at least 7.0% upon full implementation), (ii) a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the capital conservation buffer (which is added to the 6.0% Tier 1 capital ratio as that buffer is phased in, effectively resulting in a minimum Tier 1 capital ratio of 8.5% upon full implementation), (iii) a minimum ratio of Total capital (that is, Tier 1 plus Tier 2) to risk-weighted assets of at least 8.0%, plus the capital conservation buffer (which is added to the 8.0% total capital ratio as that buffer is phased in, effectively resulting in a minimum total capital ratio of 10.5% upon full implementation) and (iv) a minimum leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to average assets (as compared to a current minimum leverage ratio of 3.0% for banking organizations that either have the highest supervisory rating or have implemented the appropriate federal regulatory authority's risk-adjusted measure for market risk).

The implementation of the capital conservation buffer will begin on January 1, 2016 at the 0.625% level and be phased in over a four-year period (increasing by that amount on each subsequent January 1, until it reaches 2.5% on January 1, 2019). The Basel III Capital Rules also provide for a “countercyclical capital buffer” that is applicable to only certain covered institutions and does not have any current applicability to City Holding Company or City National Bank.

The aforementioned capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of CET 1 capital to risk-weighted assets above the minimum but below the conservation buffer (or below the combined capital conservation buffer and countercyclical capital buffer, when the latter is applied) will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall.

The Company’s regulatory capital ratios for both City Holding and City National as illustrated in the following tables (dollars in thousands):

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December 31, 2015	Actual				Minimum Required - Basel III Phase-In Schedule				Minimum Required - Basel III Fully Phased-In (*)				Required to be Considered Well Capitalized
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
CET 1 Capital
City Holding Company	$	345,620	13.7	%	$	113,919	4.5	%	$	177,207	7.0	%	$	164,549	6.5	%
City National Bank	264,812		10.5	%	113,209		4.5	%	176,103		7.0	%	163,524		6.5	%
Tier 1 Capital
City Holding Company	361,620		14.3	%	151,891		6.0	%	215,180		8.5	%	202,522		8.0	%
City National Bank	288,752		11.5	%	150,945		6.0	%	213,839		8.5	%	201,260		8.0	%
Total Capital
City Holding Company	382,180		15.1	%	202,522		8.0	%	265,810		10.5	%	253,152		10.0	%
City National Bank	308,804		12.3	%	201,260		8.0	%	264,154		10.5	%	251,575		10.0	%
Tier 1 Leverage Ratio
City Holding Company	361,620		10.2	%	142,521		4.0	%	142,521		4.0	%	178,151		5.0	%
City National Bank	288,752		8.1	%	141,874		4.0	%	141,874		4.0	%	177,343		5.0	%
(*) Represents the minimum required capital levels as of January 1, 2019 when Basel III Capital Rules have been fully phased in.

December 31, 2014:	Actual				Minimum Required for Capital Adequacy Purposes				Required to be Considered Well Capitalized
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
Tier 1 Capital
City Holding Company	$	333,163	13.4	%	$	99,723	4.0	%	$	149,585	6.0	%
City National Bank	294,870		11.9	%	99,037		4.0	%	148,556		6.0	%
Total Capital
City Holding Company	353,873		14.2	%	199,446		8.0	%	249,308		10.0	%
City National Bank	315,095		12.7	%	198,074		8.0	%	247,593		10.0	%
Tier 1 Leverage Ratio
City Holding Company	333,163		9.9	%	134,721		4.0	%	168,402		5.0	%
City National Bank	294,870		8.8	%	133,991		4.0	%	167,489		5.0	%

Management believes that, as of December 31, 2015, City Holding and City National would meet all capital adequacy requirements under Basel III on a fully phased-in basis as if such requirements had been in effect.

Additionally, federal banking laws require regulatory authorities to take “prompt corrective action” with respect to depository institutions that do not satisfy minimum capital requirements. The extent of these powers depends upon whether the institutions in question are “well capitalized”, “adequately capitalized”, “undercapitalized”, “significantly undercapitalized” or “critically undercapitalized”, as such terms are defined under uniform regulations defining such capital levels issued by each of the federal banking agencies. As an example, a depository institution that is not well capitalized is generally prohibited from accepting brokered deposits and offering interest rates on deposits higher than the prevailing rate in its market. Additionally, a depository institution is generally prohibited from making any capital distribution (including payment of a dividend) or paying any management fee to its holding company, may be subject to asset growth limitations and may be required to submit capital restoration plans if the depository institution is considered undercapitalized.

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Dividends and Other Payments: The Company is a legal entity separate and distinct from City National. Dividends from City National are essentially the sole source of cash for the Company. The right of the Company, and shareholders of the Company, to participate in any distribution of the assets or earnings of City National through the payment of such dividends or otherwise is necessarily subject to the prior claims of creditors of City National, except to the extent that claims of the Company in its capacity as a creditor may be recognized.  Moreover, there are various legal limitations applicable to the payment of dividends to the Company as well as the payment of dividends by the Company to its shareholders.

City National is subject to various statutory restrictions on its ability to pay dividends to the Company.  Specifically, the approval of the OCC is required prior to the payment of dividends by City National in excess of its earnings retained in the current year plus retained net profits for the preceding two years.  The payment of dividends by the Company and City National may also be limited by other factors, such as requirements to maintain adequate capital above regulatory guidelines.  The OCC has the authority to prohibit any bank under its jurisdiction from engaging in an unsafe and unsound practice in conducting its business. Depending upon the financial condition of City National, the payment of dividends could be deemed to constitute such an unsafe or unsound practice.  The Federal Reserve Board and the OCC have indicated their view that it generally would be an unsafe and unsound practice to pay dividends except out of current operating earnings.  The Federal Reserve Board has stated that, as a matter of prudent banking, a bank or bank holding company should not maintain its existing rate of cash dividends on common stock unless (1) the organization’s net income available to common shareholders over the past year has been sufficient to fund fully the dividends and (2) the prospective rate of earnings retention appears consistent with the organization’s capital needs, asset quality, and overall financial condition. Moreover, the Federal Reserve Board has indicated that bank holding companies should serve as a source of managerial and financial strength to their subsidiary banks. Accordingly, the Federal Reserve Board has stated that a bank holding company should not maintain a level of cash dividends to its shareholders that places undue pressure on the capital of bank subsidiaries, or that can be funded only through additional borrowings or other arrangements that may undermine the bank holding company’s ability to serve as a source of strength.

At December 31, 2015, City National could pay dividends up to $18.2 million without prior regulatory permission.  No dividends were paid in 2015 that required regulatory approval. During 2015, the Company used cash obtained from these dividends primarily to: (1) pay common dividends to shareholders, (2) remit interest payments on the Company’s junior subordinated debentures and (3) fund the repurchases of the Company's common shares. Management believes that the Company’s available cash balance, together with cash dividends from City National, is adequate to satisfy its funding and cash needs in 2016.

Under federal law, City National may not, subject to certain limited exceptions, make loans or extensions of credit to, or invest in the securities of, or take securities of the Company as collateral for loans to any borrower. City National is also subject to collateral security requirements for any loans or extensions of credit permitted by such exceptions.

Governmental Policies

The Federal Reserve Board regulates money and credit and interest rates in order to influence general economic conditions. These policies have a significant influence on overall growth and distribution of bank loans, investments and deposits and affect interest rates charged on loans or paid for time and savings deposits. Federal Reserve monetary policies have had a significant effect on the operating results of banks in the past and are expected to continue to do so in the future.

Deposit Insurance

Substantially all of the deposits of City National are insured up to applicable limits by the Deposit Insurance Fund (“DIF”) of the FDIC and are subject to deposit insurance assessments to maintain the DIF. On April 1, 2011, the deposit insurance assessment base changed from total domestic deposits to average total assets minus average tangible equity, pursuant to a rule issued by the FDIC as required by the Dodd-Frank Act. FDIC insurance expense totaled $1.8 million, $1.6 million and $1.9 million in 2015, 2014, and 2013, respectively.

Pursuant to the Dodd-Frank Act, the FDIC has established 2.0% as the designated reserve ratio (DRR), that is, the ratio of the DIF to insured deposits. The Dodd-Frank Act directs the FDIC to amend its assessment regulations so that future assessments will generally be based upon a depository institution’s average total consolidated assets minus the average tangible equity of the insured depository institution during the assessment period, whereas assessments were previously based on the amount of an institution’s insured deposits. The minimum deposit insurance fund rate will increase from 1.15% to 1.35% by September 30, 2020, and the cost of the increase will be borne by depository institutions with assets of $10 billion or more.  At least semi-annually, the FDIC will update its loss and income projections for the fund and, if needed, will increase or decrease assessment rates, following notice-and-comment rulemaking if required.

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Under the Federal Deposit Insurance Act, as amended (“FDIA), the FDIC may terminate deposit insurance upon finding that an institution has engaged in unsafe and unsound practices, is in unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, rule, order or condition imposed by the FDIC.

Cybersecurity

In March 2015, federal regulators issued two statements regarding cybersecurity: (i) a statement indicating that financial institutions should design multiple layers of security controls to establish lines of defense and to ensure that their risk management processes also address the risk posed by compromised customer credentials, including security measures to reliably authenticate customers accessing internet-based services of the financial institutions and (ii) a statement indicating the expectation of a financial institution's management to maintain a sufficient business continuity planning process to ensure rapid recovery, resumption and maintenance of the financial institution's operations after a cyber-attack involving destructive malware. A financial institution is also expected to develop appropriate processes to: (a) enable recovery of data and business operations, (b) address rebuilding network capabilities, and (c) restore data if the financial institution or any of its critical service providers fall victim to this type of cyber-attack.

If the Company does not comply with this regulatory guidance, it could be subject to various regulatory sanctions, as well as financial penalties. The Company believes that it is in compliance with this guidance.

Future Legislation

Various other legislative and regulatory initiatives, including proposals to overhaul the banking regulatory system and to limit the investments that a depository institution may make with insured funds, are from time to time introduced in Congress and state legislatures, as well as regulatory agencies. Such legislation may change banking statutes and the operating environment of the Company and its subsidiaries in substantial and unpredictable ways, and could increase or decrease the cost of doing business, limit or expand permissible activities or affect the competitive balance in the financial services industry generally.  The Company cannot determine the ultimate effect that such potential legislation, if enacted, would have upon its financial condition or operations.

Executive Officers of the Registrant

At December 31, 2015, the executive officers of the Company were as follows: 

Name	Age	Business Experience
Charles R. Hageboeck, Ph.D.	53	President and Chief Executive Officer, City Holding Company and City National Bank, Charleston, WV since February 1, 2005.  Executive Vice President and Chief Financial Officer, City Holding Company and City National Bank, Charleston, WV from June 2001 – January 2005.
Craig G. Stilwell	60	Executive Vice President of Retail Banking, City Holding Company and City National Bank, Charleston, WV since February 2005.  Executive Vice President of Marketing & Human Resources, City Holding Company and City National Bank, Charleston, WV from May 2001 – February 2005.
John A. DeRito	65	Executive Vice President of Commercial Banking, City Holding Company and City National Bank, Charleston, WV since June 2004.
David L. Bumgarner	50	Senior Vice President and Chief Financial Officer, City Holding Company and City National Bank since February 2005.
Jeffrey D. Legge	51	Senior Vice President, Chief Administration Officer and Chief Information Officer, City Holding Company and City National Bank since December 2005.

Employees

The Company had 853 full-time equivalent employees at December 31, 2015.

Available Information

The Company files annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission. You may read and copy any document the Company files at the SEC Public Reference Room at 100 F Street, N. E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on the public reference room. The Company's SEC filings are also available to the public at the SEC's website at www.sec.gov.    

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The Company’s Internet website address is www.bankatcity.com.  The Company makes available free of charge through its website its annual report, quarterly reports, current reports and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as soon as reasonably practicable after such documents are electronically filed with, or furnished to, the Securities and Exchange Commission. The information on the Company’s website is not, and shall not be deemed to be, a part of this report or incorporated into any other filing with the Securities and Exchange Commission. Copies of the Company’s annual report will be made available, free of charge, upon written request.

Statistical Information

The information noted below is provided pursuant to Guide 3 -- Statistical Disclosure by Bank Holding Companies. Page references are to the Annual Report to Shareholders for the year ended December 31, 2015 and such pages have been filed as an exhibit to this Form 10-K and are incorporated herein by reference.

Description of Information			Page Reference
1.	Distribution of Assets, Liabilities and Stockholders'
	Equity; Interest Rates and Interest Differential
	a.	Average Balance Sheets	6
	b.	Analysis of Net Interest Earnings	7
	c.	Rate Volume Analysis of Changes in Interest Income and Expense	8
2.	Investment Portfolio
	a.	Book Value of Investments	13
	b.	Maturity Schedule of Investments	16
	c.	Securities of Issuers Exceeding 10% of Stockholders’ Equity	13
3.	Loan Portfolio
	a.	Types of Loans	14
	b.	Maturities and Sensitivity to Changes in Interest Rates	16
	c.	Risk Elements	15
	d.	Other Interest Bearing Assets	None
4.	Summary of Loan Loss Experience		18
5.	Deposits
	a.	Breakdown of Deposits by Categories, Average Balance And Average Rate Paid	6
	b.	Maturity Schedule of Time Certificates of Deposit and Other Time Deposits of $250,000 or More	21
6.	Return on Equity and Assets		6
7.	Short-term Borrowings		22

Item 1A.Risk Factors

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An investment in the Company’s common stock is subject to risks inherent to the Company’s business. The material risks and uncertainties that management believes affect the Company are described below. The risks and uncertainties described below are not the only ones facing the Company. Additional risks and uncertainties that management is not aware of or focused on or that management currently deems immaterial may also impair the Company’s business operations.  You should carefully consider the risks described below, as well as the other information included or incorporated by reference in this Annual Report on Form 10-K, before making an investment in the Company’s common stock.  If any of the following risks occur, the Company’s financial condition and results of operations could be materially and adversely affected, and you could lose all or part of your investment.

Economic Conditions in the Company's Market Areas Could Negatively Impact the Company's Business and Financial Condition

The Company’s business is concentrated in West Virginia, Virginia, southeastern Ohio and Kentucky. As a result, the Company’s results of operation, cash flows and financial condition are affected by local and regional economic conditions. A downturn in the economies within the Company’s market area, or in any one of them, could negatively impact the Company’s results of operation and financial condition. Some examples of economic deterioration include declines in economic growth, declines in consumer and business confidence, increases in inflation, increases in the cost of capital and credit, and limitations in the availability of credit. The Company’s financial performance generally, and the ability of its customers to pay interest on and repay principal of outstanding loans to City National, is highly dependent on the strength of the economic and business environment in the market areas where the Company operates and in the United States as a whole. Additionally, the value of collateral securing loans made and held by City National is impacted by the strength of the economy. Deteriorating economic conditions in the Company’s market areas could cause declines in the overall quality of the loan portfolio requiring charge-off of a greater percentage of loans and/or an increase in the allowance for loan losses, which could negatively impact the Company’s results of operations and financial condition.

While the economic and business environment in West Virginia, Virginia, Ohio and Kentucky have shown improvement since the recession of 2007 to 2009, there can be no assurance that such improvement will continue or that the economies in the Company’s market areas, or the United States as a whole, will not slip into recession. Such a lack of continued economic improvement or slippage into recession could adversely affect the Company’s results of operation and financial condition.

The oil, natural gas and coal industries, and businesses ancillary thereto, play an important role in the economies of West Virginia, Virginia, southeastern Ohio and Kentucky. The significant and rapid decline in oil and gas prices over the past year have negatively impacted oil and gas and other businesses in the Company’s market areas. Additionally, the coal industry continues to be in decline as a result of increased environmental and safety regulatory burden and a decline in demand for coal. Prolonged low oil and gas prices, and continued decline in the coal industry, could result in downward pressure on businesses in the Company’s market area which could negatively affect City National’s customers (both individuals and businesses). As a result the Company’s operating results and financial condition could be negatively impacted.

The Value of the Company’s Common Stock Fluctuates

The market for the Company’s common stock may experience significant price and volume fluctuations in response to a number of factors including actual or anticipated quarterly variations in operating results, changes in expectations of future financial performance, changes in estimates by securities analysts, governmental regulatory action, banking industry reform measures, customer relationship developments and other factors, many of which will be beyond the Company’s control.

Furthermore, the stock market in general, and the market for financial institutions in particular, have experienced extreme volatility that often has been unrelated to the operating performance of particular companies. These broad market and industry fluctuations may adversely affect the trading price of the Company’s common stock, regardless of actual operating performance.

The Trading Volume In The Company’s Common Stock Is Less Than That Of Other Larger Financial Services Companies

Although the Company’s common stock is listed for trading on the Nasdaq Global Select Market, the trading volume in its common stock is less than that of other larger financial services companies. A public trading market having the desired characteristics of depth, liquidity and orderliness depends on the presence in the marketplace of willing buyers and sellers of the Company’s common stock at any given time. This presence depends on the individual decisions of investors and general economic and market conditions over which the Company has no control. Given the lower trading volume of the Company’s common stock, significant sales of the Company’s common stock, or the expectation of these sales, could cause the Company’s stock price to fall.

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Future Sales of Shares of the Company’s Common Stock Could Negatively Affect its Market Price

Future sales of substantial amounts of the Company’s common stock, or the perception that such sales could occur, could adversely affect the market price of the Company’s common stock in the open market. We make no prediction as to the effect, if any, that future sales of shares, or the availability of shares for future sale, will have on the market price of the Company’s common stock.

Shares of the Company’s Common Stock Are Not FDIC Insured

Neither the FDIC nor any other governmental agency insures the shares of the Company’s common stock. Therefore, the value of your shares in the Company will be based on their market value and may decline.

The Company’s Ability To Pay Dividends Is Limited

Although the Board of Directors has declared cash dividends in the past, the current ability to pay dividends is largely dependent upon the receipt of dividends from City National. Federal and state laws impose restrictions on the ability of City National to pay dividends. Holders of shares of the Company’s common stock are entitled to dividends if, and when, they are declared by the Company’s Board of Directors out of funds legally available for that purpose. Additional restrictions are placed upon the Company by the policies of federal regulators, including the Federal Reserve Board’s November 14, 1985 policy statement, which provides that bank holding companies should pay dividends only out of the past year’s net income, and then only if their prospective rate of earnings retention appears consistent with their capital needs, asset quality, and overall financial condition. In general, future dividend policy is subject to the discretion of the Board of Directors and will depend upon a number of factors, including the Company’s and City National’s future earnings, capital requirements, regulatory constraints and financial condition.

An Economic Slowdown in West Virginia, Virginia, Kentucky and Ohio Could Hurt the Company's Business

Because the Company focuses its business in West Virginia, Virginia, Kentucky and Ohio, an economic slowdown in these states, or any one of them could hurt the Company's business. Many of our markets rely heavily on the coal industry and negative impacts to the coal industry can have broader economic impacts. An economic slowdown could have the following consequences:

• Loan delinquencies may increase;

• Problem assets and foreclosures may increase;

• Demand for the products and services of City National may decline; and

• Collateral (including real estate) for loans made by City National may decline in value, in turn reducing customers’ borrowing power, and making existing loans less secure.

Our exposure to coal industry specific loans as of December 31, 2015 is less than $10 million.

The Value of Real Estate Collateral May Fluctuate Significantly Resulting in an Under-Collateralized Loan Portfolio.

The market value of real estate, particularly real estate held for investment, can fluctuate significantly in a short period of time as a result of market conditions in the geographic area in which the real estate is located. If the value of the real estate serving as collateral for the Company's loan portfolio were to decline materially, a significant part of the Company's loan portfolio could become under-collateralized. If the loans that are collateralized by real estate become troubled during a time when market conditions are declining or have declined, then, in the event of foreclosure, we may not be able to realize the amount of collateral that we anticipated at the time of originating the loan. This could have a material adverse effect on the Company's provision for loan losses and the Company's operating results and financial condition.

The Company and City National are Extensively Regulated

The Company operates in a highly regulated environment and are subject to supervision and regulation by a number of governmental regulatory agencies, including the Federal Reserve Board, the OCC and the FDIC. Regulations adopted by these agencies, which are generally intended to provide protection for depositors and customers rather than for the benefit of shareholders, govern a comprehensive range of matters including but not limited to (i) ownership and control of the Company's shares, (ii) acquisition of other companies and businesses, (iii) permissible activities to engage in, (iv) maintenance of adequate capital levels

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and (v) other operational aspects. The bank regulatory agencies possess broad authority to prevent or remedy unsafe or unsound practices or violations of law.

The Dodd-Frank Act instituted major changes to the bank and financial institutions regulatory regimes in light of the recent performance of, and government intervention in, the financial services sector. Other changes to statutes, regulations or regulatory policies, including changes in interpretation or implementation of statutes, regulations or policies, could affect the Company in substantial and unpredictable ways. Such changes could subject the Company to reduced revenues, additional costs, limit the types of financial services and products the Company may offer and/or increase the ability of non-banks to offer competing financial services and products, among other things. Failure to comply with laws, regulations or policies could result in sanctions by regulatory agencies, civil money penalties and/or reputation damage, which could have a material adverse effect on the Company's business, financial condition and results of operations.

Proposals to change the laws and regulations governing financial institutions are frequently raised in Congress and before bank regulatory authorities. Changes in applicable laws or regulations could materially affect the Company’s business, and the likelihood of any major changes in the future and their effects are impossible to determine. Moreover, it is impossible to predict the ultimate form any proposed legislation might take or how it might affect the Company.

The Company Is Subject To Lending Risk

There are inherent risks associated with the Company’s lending activities. These risks include, among other things, the impact of changes in interest rates and changes in the economic conditions in the markets where the Company operates. Increases in interest rates and/or weakening economic conditions could adversely impact the ability of borrowers to repay outstanding loans or the value of the collateral securing these loans. The Company is also subject to various laws and regulations that affect its lending activities. Failure to comply with applicable laws and regulations could subject the Company to regulatory enforcement action that could result in the assessment of significant civil money penalties against the Company.

The Company is Subject to Interest Rate Risk

Changes in monetary policy, including changes in interest rates, could influence not only the interest the Company receives on loans and securities and the amount of interest it pays on deposits and borrowings, but such changes could also affect (i) the Company’s ability to originate loans and obtain deposits, (ii) the fair value of the Company’s financial assets and liabilities, and (iii) the average duration of the Company’s mortgage-backed securities portfolio. The Company’s earnings and cash flows are largely dependent upon its net interest income. Net interest income is the difference between interest income earned on interest-earning assets such as loans and securities and interest expense paid on interest-bearing liabilities such as deposits and borrowed funds. Interest rates are highly sensitive to many factors that are beyond the Company’s control, including general economic conditions and policies of various governmental and regulatory agencies and, in particular, the Board of Governors of the Federal Reserve System. If the interest rates paid on deposits and other borrowings increase at a faster rate than the interest rates received on loans and other investments, the Company’s net interest income, and therefore earnings, could be adversely affected. Earnings also could be adversely affected if the interest rates received on loans and other investments fall more quickly than the interest rates paid on deposits and other borrowings.

Although management believes it has implemented effective asset and liability management strategies, including the use of derivatives as hedging instruments, to reduce the potential effects of changes in interest rates on the Company’s results of operations, any substantial, unexpected, prolonged change in market interest rates could have a material adverse effect on the Company’s financial condition and results of operations. See the section captioned “Risk Management” in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations located elsewhere in this report for further discussion related to the Company’s management of interest rate risk.

The Company May Be Adversely Affected By The Soundness Of Other Financial Institutions

Financial services institutions are interrelated as a result of trading, clearing, counterparty, or other relationships. The Company has exposure to many different industries and counterparties, and routinely executes transactions with counterparties in the financial services industry, including commercial banks, brokers and dealers, investment banks, and other institutional clients. Many of these transactions expose the Company to credit risk in the event of a default by a counterparty or client. In addition, the Company’s credit risk may be exacerbated when the collateral held by the Company cannot be

realized upon or is liquidated at prices not sufficient to recover the full amount of the credit or derivative exposure due to the Company. Any such losses could have a material adverse effect on the Company’s business, financial condition and results of operations.

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The Company’s Allowance for Loan Losses May Not Be Sufficient

The Company maintains an allowance for loan losses, which is a reserve established through a provision for loan losses charged to expense that represents management’s best estimate of probable losses in the existing portfolio of loans. The allowance, in the judgment of management, is necessary to provide for estimated loan losses and risks inherent in the loan portfolio. The level of the allowance reflects management’s continuing evaluation of industry concentrations; specific credit risks; loan loss experience; current loan portfolio quality; present economic, political and regulatory conditions and unidentified losses inherent in the current loan portfolio. The determination of the appropriate level of the allowance for loan losses inherently involves a high degree of subjectivity and requires the Company to make significant estimates of current credit risks and future trends, all of which may undergo material changes. Changes in economic conditions affecting borrowers, new information regarding existing loans, identification of additional problem loans and other factors, both within and outside of the Company’s control, may require an increase in the allowance for loan losses. In addition, bank regulatory agencies periodically review the Company’s allowance for loan losses and may require an increase in the provision for loan losses or the recognition of further loan charge-offs, based on judgments different than those of management. In addition, if charge-offs in future periods exceed the allowance for loan losses, the Company will need additional provisions to increase the allowance for loan losses. Any increases in the allowance for loan losses will result in a decrease in net income and capital, and may have a material adverse effect on the Company’s financial condition and results of operations.

Management evaluates the adequacy of the allowance for loan losses at least quarterly, which includes testing certain individual loans as well as collective pools of loans for impairment. This evaluation includes an assessment of actual loss experience within each category of the portfolio, individual commercial and commercial real estate loans that exhibit credit weakness; current economic events, including employment statistics, trends in bankruptcy filings, and other pertinent factors; industry or geographic concentrations, and regulatory guidance.  See the section captioned “Allowance and Provision for Loan Losses” in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations located elsewhere in this report for further discussion related to the Company’s process for determining the appropriate level of the allowance for loan losses.

Customers May Default On the Repayment of Loans

City National’s customers may default on the repayment of loans, which may negatively impact the Company’s earnings due to loss of principal and interest income. Increased operating expenses may result from the allocation of management time and resources to the collection and work-out of the loan. Collection efforts may or may not be successful causing the Company to write off the loan or repossess the collateral securing the loan, which may or may not exceed the balance of the loan.

Due To Increased Competition, the Company May Not Be Able To Attract and Retain Banking Customers At Current Levels

The Company faces competition from the following:

• local, regional and national banks;

• savings and loans;

• Internet banks;

• credit unions;

• finance companies; and

• brokerage firms serving the Company’s market areas.

In particular, City National’s competitors include several major national financial and banking companies whose greater resources may afford them a marketplace advantage by enabling them to maintain numerous banking locations and mount extensive promotional and advertising campaigns. Additionally, banks and other financial institutions may have products and services not offered by the Company, which may cause current and potential customers to choose those institutions. Areas of competition include interest rates for loans and deposits, efforts to obtain deposits and range and quality of services provided. If the Company is unable to attract new and retain current customers, loan and deposit growth could decrease causing the Company’s results of operations and financial condition to be negatively impacted.

The Company May Be Required To Write Down Goodwill And Other Intangible Assets, Causing Its Financial Condition And Results To Be Negatively Affected

When the Company acquires a business, a portion of the purchase price of the acquisition is allocated to goodwill and other identifiable intangible assets. The excess of the purchase price over the fair value of the net identifiable tangible and intangible assets acquired determines the amount of the purchase price that is allocated to goodwill acquired. At December 31,

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2015, the Company’s goodwill and other identifiable intangible assets were approximately $80 million. Under current accounting standards, if the Company determines goodwill or intangible assets are impaired, it would be required to write down the value of these assets. The Company conducts an annual review to determine whether goodwill and other identifiable intangible assets are impaired. The Company recently completed such an impairment analysis and concluded that no impairment charge was necessary for the year ended December 31, 2015. The Company cannot provide assurance whether it will be required to take an impairment charge in the future. Any impairment charge would have a negative effect on its shareholders’ equity and financial results and may cause a decline in the Company's stock price.

Acquisition Opportunities May Present Challenges

Any future acquisitions may result in unforeseen difficulties, which could require significant time and attention from the Company's management that would otherwise be directed at developing its existing business. In addition, the Company could discover undisclosed liabilities resulting from any acquisitions for which it may become responsible. Further, the benefits that the Company anticipates from these acquisitions may not develop.

System Failure or Cybersecurity Breaches of the Company's Network Security Could Subject the Company to Increased Operating Costs, as Well as Litigation and Other Potential Losses.

The computer systems and network infrastructure that the Company uses could be vulnerable to unforeseen hardware and cybersecurity issues, including “hacking” and “identity theft.” The Company's operations are dependent upon its ability to protect its computer equipment against damage from fire, power loss, telecommunications failure or a similar catastrophic event. Any damage or failure that causes an interruption in the Company's operations could have an adverse effect on its financial condition and results of operations. In addition, the Company's operations are dependent upon its ability to protect the computer systems and network infrastructure utilized by the Company, including our Internet banking activities, against damage from physical break-ins, cybersecurity breaches and other disruptive problems caused by the Internet or other users. Such computer break-ins and other disruptions would jeopardize the security of information stored in and transmitted through the Company's computer systems and network infrastructure, which may result in significant liability to the Company, damage its reputation and inhibit current and potential customers from its using Internet banking services.

Despite efforts to ensure the integrity of our systems, we will not be able to anticipate all security breaches of these types, nor will we be able to implement guaranteed preventive measures against such security breaches. Persistent attackers may succeed in penetrating defenses given enough resources, time and motive. The techniques used by cyber criminals change frequently, may not be recognized until launched and can originate from a wide variety of sources, including outside groups such as external service providers, organized crime affiliates, terrorist organizations or hostile foreign governments. These risks may increase in the future as we continue to increase our mobile-payment and other Internet-based product offerings and expand our internal usage of web-based products and applications.

A successful attack to our system security could cause us serious negative consequences, including significant disruption of operations, misappropriation of confidential information, or damage to our computers or systems or those of our customers and counterparties. A successful security breach could result in violations of applicable privacy and other laws, financial loss to us or to our customers, loss of confidences in our security measures, significant litigation exposure, and harm to our reputation, all of which could have a material adverse effect on the Company.

The Company's Risk Management Practices May Prove to be Inadequate or Not Fully Effective

The Company's risk management framework seeks to mitigate risk and appropriately balance risk and return. The Company has established policies and procedures intended to identify, monitor and manage the types of risk which it is subject to, including credit risk, market risk, liquidity risk, operational risk and reputational risk. Although the Company has devoted significant resources to develop its risk management policies and procedures and expect to continue to do so in the future, these policies and procedures, as well as its risk management techniques, may not be fully effective. In addition, as regulations and markets in which the Company operates continue to evolve, its risk management framework may not always keep sufficient pace with those changes. If the Company's risk management framework does not effectively identify or mitigate its risks, the Company could suffer unexpected losses and could be materially adversely affected. Management of the Company's risks in some cases depends upon the use of analytical and/or forecasting models. If the models the Company uses to mitigate these risks are inadequate, it may incur increased losses. In addition, there may be risks that exist, or that develop in the future, that the Company has not appropriately anticipated, identified or mitigated.

The Company’s Controls and Procedures May Fail or Be Circumvented

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Any failure or circumvention of the Company’s controls and procedures or failure to comply with regulations related to controls and procedures could have a material adverse effect on the Company’s business, results of operations and financial condition.  Management regularly reviews and updates the Company’s internal controls, disclosure controls and procedures, and corporate governance policies and procedures. Any system of controls, no matter how well designed and operated, is based in part on certain assumptions and can provide only reasonable, not absolute, assurances that the objectives of the system are met.

Significant Legal Actions Could Result in Substantial Liabilities

From time to time, the Company is subject to claims related to its operations.  These claims and legal actions, including supervisory actions by its regulators, could involve large monetary claims and cause the Company to incur significant defense claims.  As a result, the Company may be exposed to substantial liabilities, which could negatively affect its shareholders’ equity and financial results.

The Company Relies Heavily on Its Management Team, and the Unexpected Loss of Key Management May Adversely Affect Its Operations

The Company's success to date has been strongly influenced by its ability to attract and to retain senior management experienced in banking in the markets it serves. The Company's ability to retain executive officers and the current management teams will continue to be important to the successful implementation of its strategies. The Company has employment agreements with these key employees in the event of a change of control, as well as confidential information, non-solicitation and non-competition agreements related to its stock options. No other employment agreements exist with key employees. The unexpected loss of services of any key management personnel, or the inability to recruit and retain qualified personnel in the future, could have an adverse effect on the Company's business and financial results.

Item 1B.Unresolved Staff Comments

None.

Item 2.Properties

City National owns the Company’s executive offices, located at 25 Gatewater Road, Charleston, West Virginia. City National owns sixty-four locations and leases twenty-one locations, pursuant to operating leases.  All of the properties are suitable and adequate for their current operations.

City National also owns a thirty thousand square foot office building in an unincorporated area approximately fifteen miles west of Charleston, West Virginia. This facility formerly housed loan operations personnel, but has since been vacated by the Company. This building is currently being marketed for sale.

Item 3.Legal Proceedings

The Company is engaged in various legal actions that it deems to be in the ordinary course of business. As these legal actions are resolved, the Company could realize positive and/or negative impact to its financial performance in the period in which these legal actions are ultimately decided. There can be no assurance that current actions will have immaterial results, either positive or negative, or that no material actions may be presented in the future.

Item 4.Mine Safety Disclosures

None.

PART II

Item 5.Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities

Common Stock Market and Dividends

The Company’s common stock trades on the NASDAQ Global Select Market under the symbol "CHCO". This table sets forth the cash dividends paid per share and information regarding the market prices per share of the Company’s common

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stock for the periods indicated. The price ranges are based on transactions as reported on the NASDAQ Global Select Market. At February 29, 2016, there were 2,781 shareholders of record.

	Cash Dividends Per Share		Market Value
			Low		High
2015
Fourth Quarter	$	0.42	$	43.85	$	51.12
Third Quarter	0.42		45.56		51.73
Second Quarter	0.42		45.00		50.22
First Quarter	0.42		41.76		48.09
2014
Fourth Quarter	$	0.40	$	41.88	$	46.95
Third Quarter	0.40		41.20		46.44
Second Quarter	0.40		41.74		46.43
First Quarter	0.40		42.15		46.69

As noted in the section captioned Dividends and Other Payments included in Item 1. Business, the section captioned Liquidity included in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and in Note Nineteen of Notes to Consolidated Financial Statements, the Company’s ability to pay dividends to its shareholders is dependent upon the ability of City National to pay dividends to the Company.

Stock Repurchase Plan

The following table sets forth information regarding the Company's common stock repurchases transacted during the fourth quarter of 2015:

				Total Number	Maximum Number
				of Shares Purchased	of Shares that May
				as Part of Publicly	Yet Be Purchased
	Total Number of	Average Price		Announced Plans	Under the Plans
Period	Shares Purchased	Paid per Share		or Programs (a)	or Programs
October 1 - October 31, 2015	17,393	$	47.39	17,393	766,372
November 1 - November 30, 2015	41,900	$	49.39	41,900	724,472
December 1 - December 31, 2015	91,092	$	45.68	91,092	633,380

Stock-Based Compensation Plan

Information regarding stock-based compensation awards outstanding and available for future grants as of December 31, 2015, segregated between stock-based compensation plans approved by shareholders and stock-based compensation plans not approved by shareholders, is presented in the table below.  Additional information regarding stock-based compensation plans is presented in Note Fifteen, Employee Benefit Plans, of Notes to Consolidated Financial Statements.

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Plan Category	Number of Shares to be Issued Upon Exercise of Outstanding Awards (a)	Weighted-average exercise price of outstanding awards (b)		Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c)
Plans approved by shareholders	95,015	$	38.38	663,284
Plans not approved by shareholders	—	—		—
Total	95,015	$	38.38	663,284

Stock Performance

The following graph sets forth the cumulative total shareholder return (assuming reinvestment of dividends) to the Company’s shareholders during the five-year period ended December 31, 2015, as well as an overall stock market index (The Nasdaq Stock Market Index) and the Company’s Peer Group ("Peer Group"). The Peer Group consists of twenty banking institutions that (i) are over $2 billion but less than $8 billion in assets, (ii) have a return on average assets and a return on average equity performance ratios greater than 0%, (iii) derive at least fifteen percent of their total revenues from non-interest income, (iv) were not a participant in the TARP program, (v) their loan portfolio is comprised of less than least eighty-five percent commercial loans, (vi) have more than twenty branches, (vii) located in Indiana, Kentucky, Maryland, North Carolina, Ohio, Pennsylvania, Virginia and New York (excluding New York City), excluding: companies in top 5 metro areas (MSAs), thrifts, thinly traded companies and targets of announced mergers. The trading symbols for such financial institutions include: BNCN, CFNL, COB, CTBI, FCBC, FCF, FISI, FRME, MSFG, PEBO, PSTB, SASR, SRCE, STBA, SYBT, THFF, TMP, TOWN, UBSH and UVSP.  The stock performance shown on the graph below is not necessarily indicative of future price performance.

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	2010	2011	2012	2013	2014	2015
City Holding Company	100.00	97.47	104.34	143.90	149.82	152.18
NASDAQ Composite	100.00	99.21	116.82	163.75	188.03	201.40
Peer Group	100.00	84.79	99.72	135.69	142.29	156.70

This graph shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, unless the Company specifically incorporates this report by reference. It will not be otherwise filed under such Acts.

Item 6.Selected Financial Data

Selected Financial Data on page 1 of the Annual Report to Shareholders of City Holding Company for the year ended December 31, 2015, included in this report as Exhibit 13, is incorporated herein by reference.

Item 7.Management's Discussion and Analysis of Financial Condition and Results of Operations

     Management's Discussion and Analysis of Financial Condition and Results of Operations on pages 4 through 25 of the Annual Report to Shareholders of City Holding Company for the year ended December 31, 2015, included in this report as Exhibit 13, is incorporated herein by reference.

Item 7A.Quantitative and Qualitative Disclosures About Market Risk

Information appearing under the caption “Risk Management” appearing on pages 11-12 of the Annual Report to Shareholders of City Holding Company for the year ended December 31, 2015, included in this report as Exhibit 13, is incorporated herein by reference.

Item 8.Financial Statements and Supplementary Data

The consolidated financial statements, notes to consolidated financial statements, reports of management and the independent registered public accounting firm included on pages 26 through 84 of the Annual Report to Shareholders of City Holding Company for the year ended December 31, 2015, included in this report as Exhibit 13, are incorporated herein by reference.

Item 9.Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

None

Item 9A.Controls and Procedures

Pursuant to Rule 13a-15b under the Securities Exchange Act of 1934, the Company carried out an evaluation, with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company’s disclosure controls and procedures (as defined under Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based upon that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures are effective in timely alerting them to material information relating to the Company required to be included in the Company’s periodic Securities and Exchange Commission filings.

(a) Management’s annual report on internal control over financial reporting appears on page 26 of the Annual Report to Shareholders of City Holding Company for the year ended December 31, 2015, included in this report as Exhibit 13, is incorporated herein by reference.

(b) The Company did not have any changes in internal control over financial reporting during its fourth quarter for the year ending December 31, 2015, that materially affected, or were reasonably likely to materially affect, the Company’s internal control over financial reporting.

The Report of Management on Internal Control Over Financial Reporting is included in Item 8. of this Annual Report on Form 10-K.

Item 9B.Other Information

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None

PART III

Item 10.Directors, Executive Officers and Corporate Governance

Certain information regarding executive officers is included under the section captioned “Executive Officers of The Registrant” in Part I, Item 1, elsewhere in this Annual Report on Form 10-K.  Other information required by this Item appears under the captions “ELECTION OF DIRECTORS”, “ADDITIONAL INFORMATION CONCERNING THE BOARD OF DIRECTORS”, “REPORT OF THE AUDIT COMMITTEE”, “SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE” in the Company's 2016 Proxy Statement that will be filed within 120 days of fiscal year end and is hereby incorporated by reference.

In December 2009, the Company adopted a new Code of Business Conduct and Ethics which applies to all employees (including its chief executive officer, chief financial officer and principal accounting officer).  Members of the Board of Directors are governed by a separate Code of Business Conduct and Ethics approved in January 2004.  Both of the Codes of Business Conduct and Ethics have been posted on its website at www.bankatcity.com under the “Corporate Governance” link located at the bottom of the page.   A copy of the Company’s Code of Business Conduct and Ethics covering all employees and/or a copy of the Code of Business Conduct and Ethics covering the Board of Directors will be mailed without charge upon request to Investor Relations, City Holding Company, 25 Gatewater Road, P.O. Box 7520, Charleston, WV  25356-0520.  Any amendments to or waivers from any provision of the Code of Ethics applicable to the Company’s chief executive officer, chief financial officer, or principal accounting officer will be disclosed by timely posting such information on the Company’s Internet website.

Item 11.Executive Compensation

The information required by Item 11 of FORM 10-K appears under the captions "COMPENSATION OF DIRECTORS", “COMPENSATION DISCUSSION AND ANALYSIS”, “EQUITY HOLDINGS”, “POST-EMPLOYMENT PAYMENTS”, and “BOARD COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION” in the Company's 2016 Proxy Statement that will be filed within 120 days of fiscal year end and is hereby incorporated by reference.

Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The information required by Item 12 of FORM 10-K appears under the caption "COMMON STOCK OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT" in the Company's 2016 Proxy Statement that will be filed within 120 days of fiscal year end and is hereby incorporated by reference.

Item 13.Certain Relationships and Related Transactions and Director Independence

The information required by Item 13 of FORM 10-K appears under the captions "CERTAIN TRANSACTIONS INVOLVING DIRECTORS AND EXECUTIVE OFFICERS" and “ADDITIONAL INFORMATION CONCERNING THE BOARD OF DIRECTORS” in the Company's 2016 Proxy Statement that will be filed within 120 days of fiscal year end and is hereby incorporated by reference.

Item 14.Principal Accounting Fees and Services

The information required by Item 14 of FORM 10-K appears under the caption "PRINCIPAL ACCOUNTING FEES AND SERVICES" in the Company's 2016 Proxy Statement that will be filed within 120 days of fiscal year end and is hereby incorporated by reference.

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PART IV

Item 15.Exhibits, Financial Statement Schedules

(a)	(1)	Financial Statements.  Reference is made to Part II, Item 8, of this Annual Report on Form 10-K.
	(2)	Financial Statement Schedules.  These schedules are omitted as the required information is inapplicable or the information is presented in the consolidated financial statements or related notes.
	(3)	Exhibits.  The exhibits listed in the “Exhibit Index” on pages 28-30 of this Annual Report on Form 10-K included herein are filed herewith or incorporated by reference from previous filings.
(b)	See (a) (3) above.
(c)	See (a) (1) and (2) above.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date:	March 2, 2016		City Holding Company
			(Registrant)
		By:	/s/ Charles R. Hageboeck, Ph.D.
			Charles R. Hageboeck, Ph.D.
			President and Chief Executive Officer
			(Principal Executive Officer)
		By:	/s/ David L. Bumgarner
			David L. Bumgarner
			Senior Vice President, Chief Financial Officer and Principal Accounting Officer
			(Principal Financial Officer)

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POWER OF ATTORNEY

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated on February 24, 2016. Each of the directors and/or officers of City Holding Company whose signature appears below hereby appoints C. Dallas Kayser, and/or Charles R. Hageboeck Ph.D., as his attorney-in-fact to sign in his name and behalf, in any and all capacities stated below and to file with the Securities and Exchange Commission, any and all amendments to this report on Form 10-K, making such changes in this report on Form 10-K as appropriate, and generally to do all such things in their behalf in their capacities as officers and directors to enable City Holding Company to comply with the provisions of the Securities Exchange Act of 1934, and all requirements of the Securities and Exchange Commission.

/s/ C. Dallas Kayser	/s/ Charles R. Hageboeck, Ph.D.
C. Dallas Kayser	Charles R. Hageboeck, Ph.D.
Chairman	Director, President, and Chief Executive Officer
/s/ John R. Elliot	/s/ David W. Hambrick
John R Elliot	David W. Hambrick
Director	Director
/s/ Charles W. Fairchilds	/s/ Tracy W. Hylton, II
Charles W. Fairchilds	Tracy W. Hylton, II
Director	Director
/s/ William H. File, III	J. Thomas Jones
William H. File, III	J. Thomas Jones
Director	Director
/s/ Robert D. Fisher	/s/ James L. Rossi
Robert D. Fisher	James L. Rossi
Director	Director
/s/ Jay C. Goldman	/s/ Sharon H. Rowe
Jay C. Goldman	Sharon H. Rowe
Director	Director
/s/ Patrick C. Graney, III
Patrick C. Graney, III
Director

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EXHIBIT INDEX

The following exhibits are filed herewith or are incorporated herein by reference.

Exhibit	Description
2(a)	Agreement and Plan of Merger, dated November 14, 2011, by and among Virginia Savings Bancorp, Inc., Virginia Savings Bank, F.S.B., City Holding Company and City National Bank of West Virginia (attached to, and incorporated by reference from, City Holding Company’s Form 8-K dated November 14, 2011, and filed with the Securities and Exchange Commission on November 14, 2011).
2(b)	Agreement and Plan of Merger, dated August 2, 2012, by and among Community Financial Corporation, Community Bank, City Holding Company and City National Bank of West Virginia (attached to, and incorporated by reference from City Holding Company’s Form 8-K dated August 7, 2012, and filed with the Securities and Exchange Commission on August 7, 2012).
3(a)	Articles of Incorporation of City Holding Company (attached to, and incorporated by reference from, Amendment No. 1 to City Holding Company’s Registration Statement on Form S-4, Registration No. 2-86250, filed November 4, 1983 with the Securities and Exchange Commission).
3(b)	Articles of Amendment to the Articles of Incorporation of City Holding Company, dated March 6, 1984 (attached to, and incorporated by reference from, City Holding Company's Form 8-K Report dated March 7, 1984, and filed with the Securities and Exchange Commission on March 22, 1984).
3(c)	Articles of Amendment to the Articles of Incorporation of City Holding Company, dated March 4, 1986 (attached to, and incorporated by reference from, City Holding Company's Form 10-K Annual Report for the year ended December 31, 1986, filed March 31, 1987 with the Securities and Exchange Commission).
3(d)	Articles of Amendment to the Articles of Incorporation of City Holding Company, dated September 29, 1987 (attached to and incorporated by reference from, City Holding Company's Registration Statement on Form S-4, Registration No. 33-23295, filed with the Securities and Exchange Commission on August 3, 1988).
3(e)	Articles of Amendment to the Articles of Incorporation of City Holding Company, dated May 6, 1991 (attached to, and incorporated by reference from, City Holding Company's Form 10-K Annual Report for the year ended December 31, 1991, filed March 17, 1992 with the Securities and Exchange Commission).
3(f)	Articles of Amendment to the Articles of Incorporation of City Holding Company, dated May 7, 1991 (attached to, and incorporated by reference from, City Holding Company's Form 10-K Annual Report for the year ended December 31, 1991, filed March 17, 1992 with the Securities and Exchange Commission).
3(g)	Articles of Amendment to the Articles of Incorporation of City Holding Company, dated August 1, 1994 (attached to, and incorporated by reference from, City Holding Company's Form 10-Q Quarterly Report for the quarter ended September 30, 1994, filed November 14, 1994 with the Securities and Exchange Commission).
3(h)	Articles of Amendment to the Articles of Incorporation of City Holding Company, dated December 9, 1998 (attached to, and incorporated by reference from, City Holding Company’s Form 10-K Annual Report for the year ended December 31, 1998, filed March 31, 1999 with the Securities and Exchange Commission).
3(i)	Articles of Amendment to the Articles of Incorporation of City Holding Company, dated June 13, 2001 (attached to, and incorporated by reference from, City Holding Company’s Registration Statement on Form 8-A, filed June 22, 2001 with the Securities and Exchange Commission).
3(j)	Articles of Amendment to the Articles of Incorporation of City Holding Company, dated May 10, 2006 (attached to, and incorporated by reference from, City Holding Company’s Form 10-Q, Quarterly Report for the quarter ended June 30, 2006, filed August 9, 2006 with the Securities and Exchange Commission).
3(k)	Amended and Restated Bylaws of City Holding Company, revised February 28, 2007 (attached to, and incorporated by reference from, City Holding Company’s Current Report on Form 8-K filed March 1, 2007 with the Securities and Exchange Commission).
3(l)	Amended and Restated Bylaws of City Holding Company, revised February 24, 2010 (attached to, and incorporated by reference from, City Holding Company’s Current Report on Form 8-K filed March 1, 2010 with the Securities and Exchange Commission).
4(b)	Amendment No. 1 to the Rights Agreement dated as of November 30, 2005 (attached to, and incorporated by reference from City Holding Company’s Amendment No. 1 on Form 8-A, filed December 21, 2005, with the Securities and Exchange Commission).
10(a)	Directors’ Deferred Compensation Plan for the Directors of the Bank of Raleigh, dated January 1987 (attached to and incorporated by reference from, City Holding Company’s Form 10-K Annual Report for the year ended December 31, 2004, filed March 2, 2005 with the Securities and Exchange Commission).

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10(b)	Form of Deferred Compensation Agreement for the Directors of the National Bank of Summers, dated January 15, 1987  (attached to and incorporated by reference from, City Holding Company’s Form 10-K Annual Report for the year ended December 31, 2004, filed March 2, 2005 with the Securities and Exchange Commission).
10(c)	City Holding Company’s 1993 Stock Incentive Plan (attached to, and incorporated by reference from, Exhibit 4.1 to City Holding Company’s Registration Statement on Form S-8, Registration No. 333-87667, filed with the Securities and Exchange Commission on September 23, 1999).
10(d)	Amendment No. 1 to City Holding Company’s 1993 Stock Incentive Plan (attached to, and incorporated by reference from, Exhibit 4.2 to City Holding Company’s Registration Statement on Form S-8, Registration No. 333-87667, filed with the Securities and Exchange Commission on September 23, 1999).
10(e)	Amendment No. 2 to City Holding Company’s 1993 Stock Incentive Plan (attached to, and incorporated by reference from, City Holding Company’s Form 10-Q Quarterly Report for the quarter ended June 30, 2002, filed August 14, 2002 with the Securities and Exchange Commission).
10(f)	City Holding Company’s 2003 Incentive Plan (attached to, and incorporated by reference from, City Holding Company’s Definitive Proxy Statement, filed March 21, 2003 with the Securities and Exchange Commission).
10(g)	City Holding Company’s 2013 Incentive Plan (attached to, and incorporated by reference from, City Holding Company’s Definitive Proxy Statement, filed March 22, 2013 with the Securities and Exchange Commission).
10(h)	Form of Employment Agreement, dated as of July 25, 2007, by and between City Holding Company and Charles R. Hageboeck, Ph.D. (attached to, and incorporated by reference from, City Holding Company’s Current Report on Form 8-K, filed July 31, 2007 with the Securities and Exchange Commission).
10(i)	Form of Employment Agreement, dated as of July 25, 2007, by and between City Holding Company and Craig G. Stilwell (attached to, and incorporated by reference from, City Holding Company’s Current Report on Form 8-K, filed July 31, 2007 with the Securities and Exchange Commission).
10(j)	Form of Change of Control Agreement, dated February 1, 2005, by and between City Holding Company and David L. Bumgarner (attached to and incorporated by reference from, City Holding Company’s Form 10-K Annual Report for the year ended December 31, 2004, filed March 2, 2005 with the Securities and Exchange Commission).
10(k)	Form of Change in Control and Termination Agreement, dated June 28, 2004, by and between City Holding Company and John A. DeRito (attached to, and incorporated by reference from, City Holding Company’s Form 10-K Annual Report for the year ended December 31, 2005, filed March 7, 2006 with the Securities and Exchange Commission).
10(l)	Amended and Restated Declaration of Trust City Holding Capital Trust III, dated as of March 27, 2008 (attached and incorporated by reference from, City Holding Company’s Form 10Q, Quarterly Report for the period ended March 31, 2008 with the Securities and Exchange Commission).
10(m)	Junior Subordinated Indenture, dated as of March 27, 2008, between City Holding Company and Wells Fargo, National Association, as Trustee (attached and incorporated by reference from, City Holding Company’s Form 10Q, Quarterly Report for the period ended March 31, 2008 with the Securities and Exchange Commission).
10(n)	City Holding Company Guarantee Agreement, dated as of March 27, 2008 (attached and incorporated by reference from, City Holding Company’s Form 10Q, Quarterly Report for the period ended March 31, 2008 with the Securities and Exchange Commission).
10(o)	Amendment to Employment Agreement, dated December 19, 2011, by and among City Holding Company, City National Bank of West Virginia and Charles R. Hageboeck (attached to and incorporated by reference from City Holding Company’s Form 8-K filed on December 21, 2011, with the Securities and Exchange Commission).
10(p)	Amendment to Employment Agreement, dated December 19, 2011, by and among City Holding Company, City National Bank of West Virginia and Craig G. Stilwell (attached to and incorporated by reference from City Holding Company’s Form 8-K filed on December 21, 2011, with the Securities and Exchange Commission).
10(q)	Form of Change of Control Agreement, dated February 6, 2006, by and between City Holding Company and Jeffrey D. Legge (attached to and incorporated by reference from City Holding Company's Form 10K, Annual Report for the period ended December 31, 2013 with the Securities and Exchange Commission).
13	Portions of City Holding Company Annual Report to Shareholders for Year Ended December 31, 2015.
21	Subsidiaries of City Holding Company
23	Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm
24	Power of Attorney (included on the signature page hereof)
31(a)	Certification pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by Charles R. Hageboeck, Ph.D.
31(b)	Certification pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by David L. Bumgarner

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32(a)	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by Charles R. Hageboeck, Ph.D.
32(b)	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by David L. Bumgarner
101.INS	XBRL Instance Document*
101.SCH	XBRL Taxonomy Extension Schema*
101.CAL	XBRL Taxonomy Extension Calculation Linkbase*
101.DEF	XBRL Taxonomy Extension Definition Linkbase*
101.LAB	XBRL Taxonomy Extension Label Linkbase*
101.PRE	XBRL Taxonomy Extension Presentation Linkbase*

*Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability.

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EX-13

Selected Financial Data                                     Exhibit 13

Table One

Five-Year Financial Summary

(in thousands, except per share data)

	2015 (3)			2014			2013 (2)			2012 (1)			2011
Summary of Operations
Total interest income	$	127,074		$	129,566		$	138,539		$	112,212		$	112,888
Total interest expense	11,830			11,960			13,301			14,450			20,758
Net interest income	115,244			117,606			125,238			97,762			92,130
Provision for loan losses	6,988			4,054			6,848			6,375			4,600
Total non-interest income	67,206			58,722			58,006			55,257			54,860
Total non-interest expenses	92,951			95,041			102,906			87,401			81,141
Income before income taxes	82,511			77,233			73,490			59,243			61,249
Income tax expense	28,414			24,271			25,275			20,298			20,571
Net income available to common  shareholders	54,097			52,962			48,215			38,945			40,678
Per Share Data
Net income basic	$	3.54		$	3.40		$	3.07		$	2.63		$	2.68
Net income diluted	3.53			3.38			3.04			2.61			2.67
Cash dividends declared	1.68			1.60			1.48			1.40			1.37
Book value per share	27.62			25.79			24.61			22.47			21.05
Selected Average Balances
Total loans	$	2,691,304		$	2,593,597		$	2,523,755		$	2,041,876		$	1,899,388
Securities	383,685			365,904			360,860			409,431			454,513
Interest-earning assets	3,084,722			2,968,706			2,905,783			2,489,072			2,391,484
Deposits	2,947,543			2,824,985			2,821,573			2,338,891			2,221,414
Long-term debt	16,495			16,495			16,495			16,495			16,495
Total shareholders’ equity	415,051			395,940			373,102			325,073			316,161
Total assets	3,564,730			3,404,818			3,378,351			2,837,234			2,701,720
Selected Year-End Balances
Net loans	$	2,843,283		$	2,631,916		$	2,585,622		$	2,127,560		$	1,953,694
Securities	471,318			354,686			370,120			402,039			396,175
Interest-earning assets	3,345,929			3,016,477			2,986.194			2,574,684			2,374,804
Deposits	3,083,975			2,872,787			2,785,133			2,409,316			2,221,268
Long-term debt	16,495			16,495			16,495			16,495			16,495
Total shareholders’ equity	419,272			390,853			387,623			333,274			311,134
Total assets	3,714,059			3,461,633			3,368,238			2,917,466			2,777,109
Performance Ratios
Return on average assets	1.52		%	1.56		%	1.43		%	1.37		%	1.51		%
Return on average equity	13.0			13.4			12.9			12.0			12.9
Return on average tangible common equity	15.8			16.5			16.2			14.7			15.7
Net interest margin	3.76			3.98			4.33			3.96			3.89
Efficiency ratio	53.7			53.7			55.8			57.2			55.9
Dividend payout ratio	47.5			47.1			48.2			53.2			51.1
Asset Quality
Net charge-offs to average loans	0.26		%	0.17		%	0.20		%	0.34		%	0.18		%
Provision for loan losses to average loans	0.26			0.16			0.27			0.31			0.24

1

Allowance for loan losses to nonperforming loans	114.91		128.11	90.25	96.59	87.76
Allowance for loan losses to total loans	0.70		0.76	0.79	0.88	0.98
Consolidated Capital Ratios
CET 1 Capital	13.7	%	*	*	*	*
Tier 1 Capital	14.3		13.4	13.0	13.0	13.1
Total Capital	15.1		14.2	13.8	13.9	14.1
Tier 1 Leverage	10.2		9.9	9.8	9.8	10.2
Average equity to average assets	11.7		11.6	11.0	11.5	11.7
Tangible equity to tangible assets (end of period)	9.3		9.3	9.5	9.4	9.4
Full-time equivalent employees	853		889	923	843	795
*Basel III CET 1 ratio requirements were effective beginning January 1, 2015 and were not required for prior periods.
(1) - In May 2012, the Company acquired Virginia Savings Bancorp, Inc. and its wholly owned subsidiary, Virginia Savings Bank.
(2) - In January 2013, the Company acquired Community Financial Corporation and its wholly owned subsidiary, Community Bank.
(3) - In January 2015, the Company sold its insurance operations, CityInsurance. In November 2015, the Company acquired three branches in Lexington, Kentucky.

2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

CITY HOLDING COMPANY

City Holding Company (the “Company”), a West Virginia corporation headquartered in Charleston, West Virginia, is a registered financial holding company under the Bank Holding Company Act and conducts its principal activities through its wholly owned subsidiary, City National Bank of West Virginia ("City National"). City National is a retail and consumer-oriented community bank with 85 banking offices in West Virginia (57), Virginia (14), Kentucky (11) and Ohio (3). City National provides credit, deposit, and trust and investment management services to its customers. In addition to its branch network, City National's delivery channels include ATMs, mobile banking, debit cards, interactive voice response systems, and Internet technology. The Company’s business activities are currently limited to one reportable business segment, which is community banking. City National has approximately 11% of the deposit market share in the counties of West Virginia it serves. In the Company’s key markets, the Company’s primary subsidiary, City National, generally ranks in the top three relative to deposit market share and the top two relative to branch share.

In January 2015 the Company sold its insurance operations, CityInsurance, to The Hilb Group effective January 1, 2015. As a result of this sale, the Company recognized a one-time after tax gain of $5.8 million in the first quarter of 2015.

On November 6, 2015, the Company consummated the acquisition of three branch locations from American Founders Bank, Inc. (“AFB”) located in Lexington, Kentucky. The Company acquired approximately $119 million in performing loans and assumed deposit liabilities of approximately $145 million. The Company paid AFB a deposit premium of 5.5% on non-time deposits, and 1.0% on premium loan balances acquired.

CRITICAL ACCOUNTING POLICIES

The accounting policies of the Company conform to U.S. generally accepted accounting principles and require management to make estimates and develop assumptions that affect the amounts reported in the financial statements and related footnotes. These estimates and assumptions are based on information available to management as of the date of the financial statements. Actual results could differ significantly from management’s estimates. As this information changes, management’s estimates and assumptions used to prepare the Company’s financial statements and related disclosures may also change. The most significant accounting policies followed by the Company are presented in Note One of the Notes to Consolidated Financial Statements included herein. Based on the valuation techniques used and the sensitivity of financial statement amounts to the methods, assumptions, and estimates underlying those amounts, management has identified the determination of the allowance for loan losses, income taxes and purchased credit-impaired loans to be the accounting areas that require the most subjective or complex judgments and, as such, could be most subject to revision as new information becomes available.

The Allowance and Provision for Loan Losses section of this Annual Report to Shareholders provides management’s analysis of the Company’s allowance for loan losses and related provision. The allowance for loan losses is maintained at a level that represents management’s best estimate of probable losses in the loan portfolio. Management’s determination of the appropriateness of the allowance for loan losses is based upon an evaluation of individual credits in the loan portfolio, historical loan loss experience, current economic conditions, and other relevant factors. This determination is inherently subjective, as it requires material estimates including the amounts and timing of future cash flows expected to be received on impaired loans that may be susceptible to significant change. The allowance for loan losses related to loans considered to be impaired is generally evaluated based on the discounted cash flows using the impaired loan’s initial effective interest rate or the fair value of the collateral for certain collateral dependent loans. 

The Income Taxes section of this Annual Report to Shareholders provides management’s analysis of the Company’s income taxes.  The Company is subject to federal and state income taxes in the jurisdictions in which it conducts business.  In computing the provision for income taxes, management must make judgments regarding interpretation of laws in those jurisdictions.  Because the application of tax laws and regulations for many types of transactions is susceptible to varying interpretations, amounts reported in the financial statements could be changed at a later date upon final determinations by taxing authorities.  On a quarterly basis, the Company estimates its annual effective tax rate for the year and uses that rate to provide for income taxes on a year-to-date basis.  The Company's unrecognized tax benefits could change over the next twelve months as a result of various factors. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and state taxing authorities for the years ended December 31, 2012 through 2014. 

The Company values purchased credit-impaired loans at fair value in accordance with Accounting Standards Codification ("ASC") Topic 310-30. In determining the estimated fair value, management considers several factors, such as

3

estimated future credit losses, estimated prepayments, remaining lives of the acquired loans and the estimated value of the underlying collateral in determining the present value of the cash flows expected to be received. For these loans, the expected cash flows that exceed the fair value of the loan represent the accretable yield, which is recognized as interest income on a level-yield basis over the expected cash flow periods of the loans. The non-accretable difference represents the difference between the contractually required principal and interest payments and the cash flows expected to be collected based upon management's estimation. Subsequent decreases in the expected cash flows will require the Company to evaluate the need for additions to the Company's allowance for loan losses. Subsequent increases in the expected cash flows will result in a reversal of the provision for loan losses to the extent of prior charges with a corresponding adjustment to the accretable yield, which will result in the recognition of additional interest income over the remaining lives of the loans. 

FAIR VALUE MEASUREMENTS

The Company determines the fair value of its financial instruments based on the fair value hierarchy established in ASC Topic 820, whereby the fair value of certain assets and liabilities is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. ASC Topic 820 establishes a three-level hierarchy for disclosure of assets and liabilities recorded at fair value. The hierarchy classification is based on whether the inputs in the methodology for determining fair value are observable or unobservable. Observable inputs reflect market-based information obtained from independent sources (Level 1 or Level 2), while unobservable inputs reflect management’s estimate of market data (Level 3). Assets and liabilities that are actively traded and have quoted prices or observable market data require a minimal amount of subjectivity concerning fair value. Management’s judgment is necessary to estimate fair value when quoted prices or observable market data are not available.

            At December 31, 2015, approximately 10% of total assets, or $380 million, consisted of financial instruments recorded at fair value. Of this total, approximately 99% or $378 million of these financial instruments used valuation methodologies involving observable market data, collectively Level 1 and Level 2 measurements, to determine fair value. Approximately 1% or $2 million of these financial instruments were valued using unobservable market information or Level 3 measurements. The financial instruments valued using unobservable market information were pooled trust preferred investment securities classified as available-for-sale. At December 31, 2015, approximately $11 million of derivative liabilities were recorded at fair value using methodologies involving observable market data. The Company does not believe that any changes in the unobservable inputs used to value the financial instruments mentioned above would have a material impact on the Company’s results of operations, liquidity, or capital resources. See Note Twenty of the Notes to Consolidated Financial Statements for additional information regarding ASC Topic 820 and its impact on the Company’s financial statements.

FINANCIAL SUMMARY

The Company’s financial performance over the previous three years is summarized in the following table:

	2015			2014			2013
Net income available to common shareholders (in thousands)	$	54,097		$	52,962		$	48,215
Earnings per common share, basic	$	3.54		$	3.40		$	3.07
Earnings per common share, diluted	$	3.53		$	3.38		$	3.04
ROA*	1.52		%	1.56		%	1.43		%
ROE*	13.0		%	13.4		%	12.9		%
ROATCE*	15.8		%	16.5		%	16.2		%

*ROA (Return on Average Assets) is a measure of the effectiveness of asset utilization. ROE (Return on Average Equity) is a measure of the return on shareholders’ investment. ROATCE (Return on Average Tangible Common Equity) is a measure of the return on shareholders’ equity less intangible assets.

            The Company’s tax equivalent net interest income decreased $2.4 million, or 2.0%, from $118.2 million in 2014 to $115.9 million in 2015.  This decrease is due primarily to a decrease of 25 basis points in the yield on interest-earning assets from 4.39% in 2014 to 4.14% in 2015. During 2015, the Company continued to originate a significant portion of its commercial loans based on WSJ Prime or LIBOR and elected to maintain fixed rate investment security balances below 15% of total assets. The Company believes that these measures will position its balance sheet to benefit from an increasing rate environment. The Company’s reported net interest margin decreased from 3.98% for the year ended December 31, 2014 to 3.76% for the year ended

4

December 31, 2015 (see Net Interest Income).  The Company’s provision for loan losses increased $2.9 million from $4.1 million in 2014 to $7.0 million in 2015 (see Allowance and Provision for Loan Losses).

Offsetting the aforementioned decrease in net interest income after provision for loan losses were an increase in non-interest income and a decrease in non-interest expense. Non-interest income increased primarily due to a pre-tax gain of $11.1 million recognized from the sale of the Company's insurance operations, "CityInsurance" in January 2015. Non-interest expense decreased primarily due the decrease in salaries and employee benefits, largely as a result of the sale of CityInsurance and an overall reduction in retail branch staff (see Non-Interest Income and Expense for more analysis of these fluctuations).

As a result, the Company's net income increased $1.1 million from 2014 to $54.1 million and the Company achieved a return on assets of 1.52%, a return on tangible equity of 15.8% and an efficiency ratio of 53.7%.

BALANCE SHEET ANALYSIS

Selected balance sheet fluctuations are summarized in the following table (in millions):

	December 31,
	2015		2014		$ Change			% Change
Gross loans	$	2,863.3	$	2,652.1	$	211.2		8.0	%
Investment securities	471.3		354.7		116.6			32.9
Premises and equipment, net	77.3		78.0		(0.7		)	(0.9	)
Goodwill and other intangible assets, net	79.8		74.2		5.6			7.5
Total deposits	3,084.0		2,872.8		211.2			7.4
Short-term borrowings	154.9		134.9		20.0			14.8
Long-term debt	16.5		16.5		—			—
Shareholders' equity	419.3		390.9		28.4			7.3

Gross loans increased $211 million, or 8.0%, from December 31, 2014 to $2.86 billion at December 31, 2015, primarily due to the acquisition of three branches from AFB ($119 million). Excluding the acquisition of the three branches from AFB, loans increased $97 million or 3.7%. (see Loans).

Investment securities increased $117 million, or 32.9%, from $355 million at December 31, 2014, to $471 million at December 31, 2015. This increase was primarily due to the Company investing excess cash on hand (cash and due from banks decreased approximately $78 million during the same time period), as well as investing the cash received during the acquisition of three branches from AFB.

Premises and equipment, net decreased $1 million, or 0.9%, from $78 million at December 31, 2014 to $77 million at December 31, 2015.

Goodwill and other intangible assets, net increased $6 million, primarily as a result of the acquisition of three branches from AFB, largely offset by a $3 million reduction of goodwill in conjunction with the sale of CityInsurance.

Total deposits increased $211 million, or 7.4%, from $2.87 billion at December 31, 2014 to $3.08 billion at December 31, 2015, largely as a result of the acquisition of approximately $145 million in deposits associated with the three branches from AFB.

Short-term borrowings increased $20 million, or 14.8%, from December 31, 2014 to December 31, 2015, primarily due to an increase in short-term FHLB advances. Long-term debt balances remained flat at $16.5 million. 

Shareholders' equity increased $28.4 million from December 31, 2014 to December 31, 2015 (see Capital Resources).

TABLE TWO

AVERAGE BALANCE SHEETS AND NET INTEREST INCOME

(In thousands)

	2015							2014							2013
	Average Balance			Interest		Yield/ Rate		Average Balance			Interest		Yield/ Rate		Average Balance			Interest		Yield/ Rate
Assets
Loan portfolio(1):
Residential real estate(2),(3)	$	1,474,631		$	57,692	3.91	%	$	1,384,677		$	55,627	4.02	%	$	1,308,303		$	55,078	4.21	%
Commercial, financial, and agriculture(3),(4)	1,175,707			51,660		4.39		1,163,449			54,288		4.67		1,158,790			62,735		5.41
Installment loans to individuals(3),(5)	40,966			3,959		9.66		45,471			4,556		10.02		56,662			6,250		11.03
Previously securitized loans(6)	—			1,796		—		—			2,187		—		—			2,531		—
Total loans	2,691,304			115,107		4.28		2,593,597			116,658		4.50		2,523,755			126,594		5.02
Securities:
Taxable	352,296			10,830		3.07		337,440			11,766		3.49		330,225			10,697		3.24
Tax-exempt(7)	31,389			1,749		5.57		28,464			1,757		6.17		30,635			1,885		6.15
Total securities	383,685			12,579		3.28		365,904			13,523		3.70		360,860			12,582		3.49
Deposits in depository institutions	9,733			—		—		9,205			—		—		8,116			—		—
Federal funds sold	—			—		—		—			—		—		13,052			22		0.17
Total interest-earning assets	3,084,722			127,686		4.14		2,968,706			130,181		4.39		2,905,783			139,198		4.79
Cash and due from banks	180,965							130,183							154,983
Bank premises and equipment	76,136							80,459							82,168
Other assets	243,902							246,618							255,544
Less: allowance for loan losses	(20,995		)					(21,148		)					(20,127		)
Total assets	$	3,564,730						$	3,404,818						$	3,378,351
Liabilities
Interest-bearing demand deposits	$	644,961		505		0.08	%	$	614,489		615		0.10	%	$	603,844		712		0.12	%
Savings deposits	706,926			712		0.10		632,510			784		0.12		599,574			864		0.14
Time deposits(3)	1,005,232			9,669		0.96		1,046,925			9,613		0.92		1,103,945			10,782		0.98
Short-term borrowings	145,199			327		0.23		133,769			342		0.26		127,679			325		0.25
Long-term debt	16,495			617		3.74		16,495			606		3.67		16,495			618		3.75
Total interest-bearing liabilities	2,518,813			11,830		0.47		2,444,188			11,960		0.49		2,451,537			13,301		0.54
Noninterest-bearing demand deposits	590,424							531,061							514,210
Other liabilities	40,442							33,629							39,502
Total shareholders’ equity	415,051							395,940							373,102
Total liabilities and shareholders’ equity	$	3,564,730						$	3,404,818						$	3,378,351
Net interest income				$	115,856						$	118,221						$	125,897
Net yield on earning assets						3.76	%						3.98	%						4.33	%

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.Includes the Company's residential real estate and home equity loan categories.

3. Included in the above table are the following amounts (in thousands) for the accretion of the fair value adjustments related to the acquisitions of Virginia Savings, Community and AFB:

6

	2015								2014						2013
	Virginia Savings		Community		AFB		Total		Virginia Savings		Community		Total		Virginia Savings		Community		Total
Residential real estate	$	324	$	560	$	9	$	893	$	427	$	457	$	884	$	970	$	805	$	1,775
Commercial, financial, and agriculture	273		4,540		17		4,830		504		3,900		4,404		2,397		7,861		10,258
Installment loans to individuals	98		175		2		275		154		561		715		145		1,241		1,386
Time deposits	516		160		11		687		535		250		785		542		682		1,224
Total	$	1,211	$	5,435	$	39	$	6,685	$	1,620	$	5,168	$	6,788	$	4,054	$	10,589	$	14,643

4.Includes the Company’s commercial and industrial and commercial real estate loan categories.

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%.

NET INTEREST INCOME

2015 vs. 2014

The Company’s tax equivalent net interest income decreased $2.4 million, or 2.0%, from $118.2 million in 2014 to $115.9 million in 2015. This decrease is due primarily to a decrease of 25 basis points in the yield on interest-earning assets from 4.39% in 2014 to 4.14% in 2015. During 2015, the Company continued to originate a significant portion of its commercial loans based on WSJ Prime or LIBOR and has elected to maintain fixed rate investment security balances below 15% of total assets. The Company believes that these measures will position its balance sheet to benefit from an increasing rate environment. The Company’s reported net interest margin decreased from 3.98% for the year ended December 31, 2014 to 3.76% for the year ended December 31, 2015. Excluding the favorable impact of the accretion from fair value adjustments on recent acquisitions, the net interest margin would have been 3.54% for the year ended December 31, 2015 and 3.75% for the year ended December 31, 2014. This decrease was primarily caused by loan yields compressing from 4.27% for the year ended December 31, 2014 to 4.05% for the year ended December 31, 2015.

Average interest-earning assets increased $116 million from 2014 to 2015, as increases attributable to residential real estate ($90 million), investment securities ($18 million) and deposits with depository institutions ($1 million) were partially offset by decreases in installment loans to individuals ($5 million).   Average interest-bearing liabilities increased $75 million from 2014 due to increases in savings deposits ($74 million), interest-bearing demand deposits ($30 million) and short-term borrowings ($11 million), partially offset by a decrease in time deposits ($42 million).

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 Community Bank, Virginia Savings Bank and AFB acquisitions (in thousands).  The amounts in the table below 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 than those estimated below.

	Virginia Savings				Community				AFB
Year Ended	Loan Accretion		Certificates of Deposit		Loan Accretion		Certificates of Deposit		Loan Accretion		Certificates of Deposit		Total
Actual
2013	$	3,512	$	542	$	9,907	$	682	$	—	$	—	$	14,643
2014	1,085		535		4,918		250		—		—		6,788
2015	695		516		5,275		160		28		11		6,685
Forecasted
2016	299		497		1,183		43		286		52		2,360
2017	161		—		939		4		256		11		1,371
2018	99		—		712		—		234		—		1,045

7

2014 vs. 2013

The Company’s tax equivalent net interest income decreased $7.7 million, or 6.1%, from $125.9 million in 2013 to $118.2 million in 2014. This decrease was due primarily to an expected decrease in accretion from the fair value adjustments related to the acquisitions of Virginia Savings Bank and Community Bank ($6.8 million for the year ended December 31, 2014 as compared to $14.6 million for the year ended December 31, 2013). The Company’s reported net interest margin decreased from 4.33% for the year ended December 31, 2013 to 3.98% for the year ended December 31, 2014. Excluding the favorable impact of the accretion from the fair value adjustments, the net interest margin would have been 3.75% for the year ended December 31, 2014 and 3.83% for the year ended December 31, 2013. This decrease was primarily caused by loan yields compressing from 4.48% for the year ended December 31, 2013 to 4.27% for the year ended December 31, 2014.

Average interest-earning assets increased $63 million from 2013 to 2014, as increases attributable to residential real estate ($81 million), investment securities ($5 million) and deposits with depository institutions ($1 million) were partially offset by decreases in installment loans to individuals ($11 million), and federal funds sold ($13 million). Average interest-bearing liabilities decreased $7 million from 2013 due to a decrease in time deposits ($57 million), that was partially offset by increases in savings deposits ($33 million), interest-bearing demand deposits ($11 million) and short-term borrowings ($6 million).

TABLE THREE

RATE/VOLUME ANALYSIS OF CHANGES IN INTEREST INCOME AND INTEREST EXPENSE

(In thousands)

	2015 vs. 2014 Increase (Decrease) Due to Change In:									2014 vs. 2013 Increase (Decrease) Due to Change In:
	Volume			Rate			Net			Volume			Rate			Net
Interest-earning assets:
Loan portfolio
Residential real estate	$	3,614		$	(1,549	)	$	2,065		$	3,219		$	(2,670	)	$	549
Commercial, financial, and agriculture	572			(3,200		)	(2,628		)	215			(8,662		)	(8,447		)
Installment loans to individuals	(451		)	(146		)	(597		)	(1,169		)	(525		)	(1,694		)
Previously securitized loans	—			(391		)	(391		)	—			(344		)	(344		)
Total loans	3,735			(5,286		)	(1,551		)	2,265			(12,201		)	(9,936		)
Securities:
Taxable	518			(1,454		)	(936		)	234			835			1,069
Tax-exempt(1)	181			(189		)	(8		)	(134		)	6			(128		)
Total securities	699			(1,643		)	(944		)	100			841			941
Federal funds sold	—			—			—			(22		)	—			(22		)
Total interest-earning assets	$	4,434		$	(6,929	)	$	(2,495	)	$	2,343		$	(11,360	)	$	(9,017	)
Interest-bearing liabilities:
Interest-bearing demand deposits	$	30		$	(140	)	$	(110	)	$	13		$	(110	)	$	(97	)
Savings deposits	92			(164		)	(72		)	48			(130		)	(82		)
Time deposits	(383		)	439			56			(557		)	(612		)	(1,169		)
Short-term borrowings	29			(44		)	(15		)	16			1			17
Long-term debt	—			11			11			—			(12		)	(12		)
Total interest-bearing liabilities	$	(232	)	$	102		$	(130	)	$	(480	)	$	(863	)	$	(1,343	)
Net Interest Income	$	4,666		$	(7,031	)	$	(2,365	)	$	2,823		$	(10,497	)	$	(7,674	)

1. Fully federal taxable equivalent using a tax rate of approximately 35%.

8

NON-INTEREST INCOME AND NON-INTEREST EXPENSE

2015 vs. 2014

Selected income statement fluctuations are summarized in the following table (dollars in millions):

	For the year ended December 31,
	2015		2014		$ Change			% Change
Net investment security gains	$	2.1	$	1.2	$	0.9		75.0	%
Non-interest income, excluding net investment securities gains	65.1		57.6		$	7.5		13.0
Non-interest expense	93.0		95.0		$	(2.0	)	(2.1	)

During the year ended December 31, 2015, the Company realized investment gains of $2.1 million from the call of trust preferred securities which represented a partial recovery of impairment charges previously recognized.

Exclusive of this gain, non-interest income excluding net investment securities gains increased $7.5 million to 65.1 million for the year ended December 31, 2015 as compared to $57.6 million for the year ended December 31, 2014. This increase was primarily attributable to the pre-tax gain of $11.1 million recognized as a result of the sale of CityInsurance, as well as increases in (i) other income of $1.0 million, primarily due to mortgage banking activities, (ii) bankcard revenue of $0.8 million, or 5.5%, to $15.9 million and (iii) trust revenues of $0.5 million, or 11.1%, to $5.1 million. Partially offsetting these increases were decreases in insurance commission revenues of $6.0 million, due to the sale of CityInsurance and service charges of $0.3 million, or 1.0%, from $26.6 million in 2014 to $26.3 million in 2015.

During 2015, the Company recognized $0.6 million of acquisition and integration expenses associated with the completed acquisition of AFB. Excluding these expenses, non-interest expenses decreased $2.6 million from $95.0 million for the year ended December 31, 2014 to $92.4 million for the year ended December 31, 2015. Salaries and employee benefits decreased $3.9 million from 2014 largely as a result of the sale of CityInsurance and an overall reduction of retail branch staff. Additionally, advertising expenses decreased $0.8 million from 2014. These decreases were partially offset by increases in other expenses of $1.3 million and repossessed asset losses of $0.7 million. Other expenses increased primarily as a result of the write down of a partnership investment of $1.45 million in 2015.

2014 vs. 2013

Selected income statement fluctuations are summarized in the following table (dollars in millions):

	For the year ended December 31,
	2014		2013		$ Change			% Change
Net investment security gains	$	1.2	$	0.8	$	0.4		50.0	%
Non-interest income, excluding net investment securities gains	57.6		57.2		0.4			0.7
Non-interest expense	95.0		102.9		(7.9		)	(7.7	)

During the year ended December 31, 2014, the Company realized investment gains of $1.2 million from the sale of certain equity positions related to community banks and bank holding companies.

Exclusive of net investment securities gains, non-interest income increased $0.4 million to $57.6 million for the year ended December 31, 2014 as compared to $57.2 million for the year ended December 31, 2013. Bankcard revenues increased $1.5 million, or 11.4%, to $15.1 million and trust and investment management fee income increased $0.6 million, or 15.8%, to $4.6 million. These increases were partially offset by lower service charges on deposit accounts of $1.0 million, or 3.7%, and other income of $0.7 million, primarily due to lower demand for fixed rate mortgage products.

During 2013, the Company recognized $5.5 million of acquisition and integration expenses associated with the completed acquisition of Community. Excluding these expenses, non-interest expenses decreased $2.4 million from $97.4 million for the year ended December 31, 2013 to $95.0 million for the year ended December 31, 2014. This decrease was largely attributable to a decline in other expense of $2.4 million due to a decrease in non-income based taxes as a result of the recognition of previously unrecognized tax position resulting from the close of the statute of limitations for previous tax years that was

9

discrete to 2014. In addition, legal and professional fees also decreased $1.0 million from 2013 primarily due to lower legal settlements. Partially offsetting these decreases were increases in advertising expense ($0.6 million) and bankcard expense ($0.5 million).

INCOME TAXES

The Company recorded income tax expense of $28.4 million, $24.3 million and $25.3 million in 2015, 2014 and 2013, respectively. The Company’s effective tax rates for 2015, 2014 and 2013 were 34.4%, 31.4% and 34.4%, respectively. A reconciliation of the effective tax rate to the statutory rate is included in Note Fourteen of the Notes to Consolidated Financial Statements. During the years ended December 31, 2015 and December 31, 2014, the Company reduced income tax expense by $0.6 million and $1.8 million, respectively due to the recognition of previously unrecognized tax positions resulting from the close of the statute of limitations for previous tax years. In addition, as a result of differences between the book and tax basis of the assets that were sold in conjunction with the sale of CityInsurance, the Company’s income tax expense increased by $1.1 million. Exclusive of these items, the Company’s tax rate from operations was 33.6% and 33.8% for the year ended December 31, 2015 and December 31, 2014, respectively.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company’s net deferred tax assets decreased from $36.8 million at December 31, 2014 to $30.0 million at December 31, 2015. The components of the Company’s net deferred tax assets are disclosed in Note Fourteen of the Notes to Consolidated Financial Statements. Realization of the most significant net deferred tax assets is primarily dependent on future events taking place that will reverse the current deferred tax assets. For example, realization of the deferred tax asset attributable to other-than-temporary impairment losses on securities, which have already been recognized in the Company’s financial statements, would be realized if the impaired securities were deemed to be “worthless” by the Internal Revenue Service ("IRS") or when the securities were sold and recognized for tax purposes.  The deferred tax asset and/or liability associated with unrealized securities losses is the tax impact of the unrealized gains and/or losses on the Company’s available for sale security portfolio.  At December 31, 2015 and December 31, 2014 the Company had a deferred tax liability of $0.6 million and $0.7 million, respectively, associated with unrealized securities gains.  The impact of the Company’s unrealized gains is noted in the Company’s Consolidated Statements of Changes in Shareholders’ Equity as an adjustment to Accumulated Other Comprehensive Income (Loss). The deferred tax liability at December 31, 2015 would be realized if the unrealized gains on the Company’s securities were realized from sales or maturities of the related securities.  At December 31, 2015 and 2014, the Company had a deferred tax asset of $6.7 million and $8.4 million, respectively, associated with other-than-temporarily impaired securities.  The deferred tax asset at December 31, 2015 would be realized if the Company’s other-than-temporarily impaired securities were sold, or were deemed by the IRS to be “worthless.”  The deferred tax asset associated with the allowance for loan losses remained constant at $7.4 million at December 31, 2015 and 2014. The deferred tax asset associated with the allowance for loan losses is expected to be realized as additional loan charge-offs, which have already been provided for within the Company’s financial statements, are recognized for tax purposes.  The deferred tax asset associated with the Company’s previously securitized loans is expected to be realized as the Company recognizes income for financial statement purposes from these loans in future periods. The deferred tax asset associated with these loans decreased from $4.7 million at December 31, 2014 to $4.3 million at December 31, 2015.  The deferred tax asset associated with the Company's intangible assets decreased to $2.2 million at December 31, 2015. The Company believes that it is more likely than not that each of the net deferred tax assets will be realized and that no valuation allowance is necessary as of December 31, 2015 or 2014.

RISK MANAGEMENT

Market risk is the risk of loss due to adverse changes in current and future cash flows, fair values, earnings or capital due to adverse movements in interest rates and other factors, including foreign exchange rates, underlying credit risk and commodity prices. Because the Company has no significant foreign exchange activities and holds no commodities, interest rate risk represents the primary risk factor affecting the Company’s balance sheet and net interest margin. Significant changes in interest rates by the Federal Reserve could result in similar changes in LIBOR interest rates, prime rates, and other benchmark interest rates that could affect the estimated fair value of the Company’s investment securities portfolio, interest paid on the Company’s short-term and long-term borrowings, interest earned on the Company’s loan portfolio and interest paid on its deposit accounts.

 The Company’s Asset and Liability Committee (“ALCO”) has been delegated the responsibility of managing the Company’s interest-sensitive balance sheet accounts to maximize earnings while managing interest rate risk. ALCO, comprised of various members of executive and senior management, is also responsible for establishing policies to monitor and limit the Company’s exposure to interest rate risk and to manage the Company’s liquidity position. ALCO satisfies its responsibilities through quarterly meetings during which product pricing issues, liquidity measures, and interest sensitivity positions are monitored.

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In order to measure and manage its interest rate risk, the Company uses an asset/liability management and simulation software model to periodically update the interest sensitivity position of the Company’s balance sheet. The model is also used to perform analyses that measure the impact on net interest income and capital as a result of various changes in the interest rate environment. Such analyses quantify the effects of various interest rate scenarios on projected net interest income.

The Company’s policy objective is to avoid negative fluctuations in net income or the economic value of equity of more than 15% within a 12-month period, assuming an immediate parallel increase or decrease of 400 basis points. The Company measures the long-term risk associated with sustained increases and decreases in rates through analysis of the impact to changes in rates on the economic value of equity.  Due to the current Federal Funds target rate of 50 basis points, the Company has chosen not to reflect a decrease of 50 basis points from current rates in its analysis.

The following table summarizes the sensitivity of the Company’s net income to various interest rate scenarios. The results of the sensitivity analyses presented below differ from the results used internally by ALCO in that, in the analyses below, interest rates are assumed to have an immediate and sustained parallel shock. The Company recognizes that rates are volatile, but rarely move with immediate and parallel effects. Internally, the Company considers a variety of interest rate scenarios that are deemed to be possible while considering the level of risk it is willing to assume in “worst-case” scenarios such as shown by the following:

Immediate Basis Point Change in Interest Rates	Implied Federal Funds Rate Associated with Change in Interest Rates		Estimated Increase (Decrease) in Net Income Over 12 Months
December 31, 2015
+400	4.50	%	+6.0	%
+300	3.50		+7.5
+200	2.50		+6.8
+100	1.50		+3.3
December 31, 2014
+400	4.25	%	+2.8	%
+300	3.25		+4.9
+200	2.25		+5.0
+100	1.25		+1.9

These estimates are highly dependent upon assumptions made by management, including, but not limited to, assumptions regarding the manner in which interest-bearing demand deposit and savings deposit accounts reprice in different interest rate scenarios, changes in the composition of deposit balances, pricing behavior of competitors, prepayments of loans and deposits under alternative rate environments, and new business volumes and pricing. As a result, there can be no assurance that the estimates above will be achieved in the event that interest rates increase during 2016 and beyond.  The estimates above do not necessarily imply that the Company will experience increases in net income if market interest rates rise.  The table above indicates how the Company’s net income and the economic value of equity behave relative to an increase or decrease in rates compared to what would otherwise occur if rates remain stable.

Based upon the estimates above, the Company believes that its net income is positively correlated with increasing rates as compared to the level of net income the Company would expect if interest rates remain flat.

LIQUIDITY

The Company evaluates the adequacy of liquidity at both the Parent Company level and at the banking subsidiary level. At the Parent Company level, the principal source of cash is dividends from its banking subsidiary, City National. Dividends paid by City National to the Parent Company are subject to certain legal and regulatory limitations. Generally, any dividends in amounts that exceed the earnings retained by City National in the current year plus retained net profits for the preceding two years must be approved by regulatory authorities. At December 31, 2015, City National could pay dividends up to $18.2 million without prior regulatory permission.

During 2015, the Parent Company used cash obtained from the dividends received primarily to: (1) pay common dividends to shareholders and (2) remit interest payments on the Company’s junior subordinated debentures and (3) fund repurchases of the Company's common shares.  Additional information concerning sources and uses of cash by the Parent Company is reflected in Note Twenty One of the Notes to Consolidated Financial Statements.

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Over the next 12 months, the Parent Company has an obligation to remit interest payments approximating $0.6 million on the junior subordinated debentures held by City Holding Capital Trust III. Additionally, the Parent Company anticipates continuing the payment of dividends, which are expected to approximate $25.5 million on an annualized basis for 2016 based on common shareholders of record at December 31, 2015 at a dividend rate of $1.68 for 2016.  However, interest payments on the debentures can be deferred for up to five years under certain circumstances and dividends to shareholders can, if necessary, be suspended. In addition to these anticipated cash needs, the Parent Company has operating expenses and other contractual obligations, which are estimated to require $1.0 million of additional cash over the next 12 months. As of December 31, 2015, the Parent Company reported a cash balance of $46.7 million and management believes that the Parent Company’s available cash balance, together with cash dividends from City National, will be adequate to satisfy its funding and cash needs over the next twelve months.

Excluding the interest and dividend payments discussed above, the Parent Company has no significant commitments or obligations in years after 2016 other than the repayment of its $16.5 million obligation under the debentures held by City Holding Capital Trust III. However, this obligation does not mature until June 2038, or earlier at the option of the Parent Company. It is expected that the Parent Company will be able to obtain the necessary cash, either through dividends obtained from City National or the issuance of other debt, to fully repay the debentures at their maturity.

City National manages its liquidity position in an effort to effectively and economically satisfy the funding needs of its customers and to accommodate the scheduled repayment of borrowings. Funds are available to City National from a number of sources, including depository relationships, sales and maturities within the investment securities portfolio, and borrowings from the FHLB and other financial institutions. As of December 31, 2015, City National’s assets are significantly funded by deposits and capital. City National maintains borrowing facilities with the FHLB and other financial institutions that can be accessed as necessary to fund operations and to provide contingency funding mechanisms. As of December 31, 2015, City National had the capacity to borrow an additional $1.6 billion from the FHLB and other financial institutions under existing borrowing facilities. City National maintains a contingency funding plan, incorporating these borrowing facilities, to address liquidity needs in the event of an institution-specific or systemic financial industry crisis. Also, although it has no current intention to do so, City National could liquidate its unpledged securities, if necessary, to provide an additional funding source.  City National also segregates certain mortgage loans, mortgage-backed securities, and other investment securities in a separate subsidiary so that it can separately monitor the asset quality of these primarily mortgage-related assets, which could be used to raise cash through securitization transactions or obtain additional equity or debt financing if necessary.

 The Company manages its asset and liability mix to balance its desire to maximize net interest income against its desire to minimize risks associated with capitalization, interest rate volatility, and liquidity. With respect to liquidity, the Company has chosen a conservative posture and believes that its liquidity position is strong. As illustrated in the Consolidated Statements of Cash Flows, the Company generated $47.9 million of cash from operating activities during 2015, primarily from interest income received on loans and investments, net of interest expense paid on deposits and borrowings.

The Company has obligations to extend credit, but these obligations are primarily associated with existing home equity loans that have predictable borrowing patterns across the portfolio. The Company has investment security balances with carrying values that totaled $471.3 million at December 31, 2015, and that greatly exceeded the Company’s non-deposit sources of borrowing which totaled $171.4 million.

The Company’s net loan to asset ratio is 76.6% as of December 31, 2015 and deposit balances fund 83.0% of total assets as compared to 66.8% for its peers (Bank Holding Company Peer Group with assets ranging from $3 billion to $10 billion). Further, the Company’s deposit mix has a very high proportion of transaction and savings accounts that fund 55.6% of the Company’s total assets and the Company uses time deposits over $250,000 to fund 10.5% of total assets compared to its peers, which fund 9.3% of total assets with such deposits.

INVESTMENTS

The Company’s investment portfolio increased from $355 million at December 31, 2014 to $471 million at December 31, 2015. This increase was primarily due to the Company investing excess cash on hand (cash and due from banks decreased approximately $78 million during the same time period), as well as investing the additional cash received during the acquisition of three branches from AFB.

The investment portfolio is structured to provide flexibility in managing liquidity needs and interest rate risk, while providing acceptable rates of return.

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The majority of the Company’s investment securities continue to be mortgage-backed securities. The mortgage-backed securities in which the Company has invested are predominantly underwritten to the standards of, and guaranteed by government-sponsored agencies such as FNMA and FHLMC.

The Company's municipal bond portfolio of $50.7 million as of December 31, 2015 has an average tax equivalent yield of 5.11% with an average maturity of 9.6 years. The average dollar amount invested in each security is $0.4 million. The portfolio has 47% rated "A" or better and the remaining portfolio is unrated, as the issuances represented small issuances of revenue bonds. Additional credit support has been purchased for 31% of the portfolio, while 69% has no additional credit support. Management does underwrite 100% of the portfolio on an annual basis, using the same guidelines that are used to underwrite its commercial loans. Revenue bonds were 96% of the portfolio, while the remaining 4% were general obligation bonds. Geographically, the portfolio supports the Company's footprint, with 91% of the portfolio being from municipalities throughout West Virginia, and the remainder from communities in Ohio, Indiana and Kentucky.

TABLE FOUR

INVESTMENT PORTFOLIO

The carrying value of the Company's securities are presented in the following table (in thousands):

	Carrying Values as of December 31,
	2015		2014		2013
Securities available-for-sale:
Obligations of states and political subdivisions	$	50,697	$	42,096	$	41,548
U.S. Treasuries and U.S. government agencies	5		1,827		2,365
Mortgage-backed securities:
U.S. government agencies	288,197		187,328		278,108
Private label	1,231		1,704		2,197
Trust preferred securities	5,858		9,036		13,156
Corporate securities	18,693		7,317		9,128
Total Debt Securities available-for-sale	364,681		249,308		346,502
Marketable equity  securities	3,273		3,213		4,673
Investment funds	1,512		1,522		1,485
Total Securities Available-for-Sale	369,466		254,043		352,660
Securities held-to-maturity:
Mortgage backed securities	84,937		86,742		—
Trust preferred securities	4,000		4,044		4,117
Total Securities Held-to-Maturity	88,937		90,786		4,117
Other investment securities:
Non-marketable equity securities	12,915		9,857		13,343
Total Other Investment Securities	12,915		9,857		13,343
Total Securities	$	471,318	$	354,686	$	370,120

During the year ended December 31, 2014, the Company transferred certain securities from available-for-sale to held-to-maturity. The non-cash transfers of securities into the held-to-maturity categories from available-for-sale were made at fair value, which was $83.4 million on the date of the transfer.

Included in non-marketable equity securities in the table above at December 31, 2015 are $4.7 million of Federal Home Loan Bank stock and $8.2 million of Federal Reserve Bank stock. At December 31, 2015, there were no securities of any non-governmental issuers whose aggregate carrying or estimated fair value exceeded 10% of shareholders’ equity.

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The weighted average yield of the Company's investment portfolio is presented in the following table (dollars in thousands):

	Within				After One But				After Five But				After
	One Year				Within Five Years				Within Ten Years				Ten Years
	Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield
Securities available-for-sale:
Obligations of states and political subdivisions	$	2,731	2.06	%	$	10,435	3.47	%	$	15,547	3.56	%	$	21,984	4.05	%
U.S. Treasuries and U.S. government agencies	—		—		5		1.26		—		—		—		—
Mortgage-backed securities:
U.S. government agencies	9		2.63		3,457		4.32		13,187		3.12		271,544		2.62
Private label	—		—		230		4.50		—		—		1,001		2.70
Trust preferred securities	—		—		—		—		—		—		5,858		2.53
Corporate securities	—		—		2,140		6.25		13,303		8.80		3,250		6.09
Total Debt Securities available-for-sale	2,740		2.06		16,267		4.03		42,037		5.08		303,637		2.76
Securities held-to-maturity:
U.S. government agencies	—		—		—		—		—		—		84,937		2.88
Trust preferred securities	—		—		—		—		—		—		4,000		9.30
Total Securities Held-to-Maturity	—		—		—		—		—		—		88,937		3.17
Total  debt securities	$	2,740	2.06	%	$	16,267	4.03	%	$	42,037	5.08	%	$	392,574	2.85	%

Weighted-average yields on tax-exempt obligations of states and political subdivisions have been computed on a taxable-equivalent basis using the federal statutory tax rate of 35%.  Average yields on investments available-for-sale are computed based on amortized cost. Mortgage-backed securities have been allocated to their respective maturity groupings based on their contractual maturity.

LOANS

TABLE FIVE

LOAN PORTFOLIO

The composition of the Company’s loan portfolio as of the dates indicated follows (in thousands):

	2015		2014		2013		2012		2011
Residential real estate	$	1,383,133	$	1,294,576	$	1,204,450	$	1,031,435	$	929,788
Home equity	147,036		145,604		146,090		143,110		141,797
Commercial and industrial	165,887		140,548		156,777		116,645		130,899
Commercial real estate	1,127,827		1,028,831		1,048,573		814,064		732,146
Consumer	36,083		39,705		46,402		36,564		35,845
DDA overdrafts	3,361		2,802		3,905		4,551		2,628
Gross loans	$	2,863,327	$	2,652,066	$	2,606,197	$	2,146,369	$	1,973,103

Loan balances increased $211 million from December 31, 2014 to December 31, 2015. with the acquisition of AFB contributing $114 million.

Residential real estate loans increased $89 million from December 31, 2014. Excluding the AFB acquisition, residential real estate loans increased $81 million, or 6.3%, from $1.29 billion at December 31, 2014 to $1.38 billion at December 31, 2015.

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Residential real estate loans represent loans to consumers that are secured by a first lien on residential property.  Residential real estate loans provide for the purchase or refinance of a residence and first-lien home equity loans that allow consumers to borrower against the equity in their home.  These loans primarily consist of single family 3 and 5 year adjustable rate mortgages with terms that amortize up to 30 years. The Company also offers fixed-rate residential real estate loans that are sold in the secondary market that are not included on the Company's balance sheet and the Company does not retain the servicing rights to these loans.  Residential mortgage loans are generally underwritten to comply with Fannie Mae guidelines, while the home equity loans are underwritten with typically less documentation, but with lower loan-to-value ratios and shorter maturities. At December 31, 2015, $13 million of the residential real estate loans were for properties under construction.

Home equity loans increased $1 million from December 31, 2014. Excluding the AFB acquisition, home equity loans decreased $5 million to $141 million at December 31, 2015. The Company's home equity loans represent loans to consumers that are secured by a second (or junior) lien on a residential property.  Home equity loans allow consumers to borrower against the equity in their home without paying off an existing first lien.  These loans consist of home equity lines of credit ("HELOC") and amortized home equity loans that require monthly installment payments.  Home equity loans are underwritten with less documentation, lower loan-to-value ratios and for shorter terms.  The amount of credit extended is directly related to the value of the real estate at the time the loan is made. 

The commercial and industrial ("C&I") loan portfolio consists of loans to corporate borrowers primarily in small to mid-size industrial and commercial companies. Collateral securing these loans includes equipment, machinery, inventory, receivables and vehicles. C&I loans are considered to contain a higher level of risk than other loan types, although care is taken to minimize these risks. Numerous risk factors impact this portfolio, including industry specific risks such as economy, new technology, labor rates and cyclicality, as well as customer specific factors, such as cash flow, financial structure, operating controls and asset quality. C&I loans increased $25 million from December 31, 2014. Excluding the AFB acquisition, C&I loans decreased $24 million, or 16.9%, from $141 million at December 31, 2014 to $117 million at December 31, 2015. The decrease was largely attributable to a more competitive lending environment, a C&I customer that sold its business and repaid its $8 million loan, and to various lines of credit that experienced balance reductions.

Commercial real estate loans consist of commercial mortgages, which generally are secured by nonresidential and multi-family residential properties, including hotel/motel and apartment lending. Commercial real estate loans are to many of the same customers and carry similar industry risks as C&I loans. Commercial real estate loans increased $99 million from December 31, 2014. Excluding the AFB acquisition, commercial real estate loans increased $48 million, or 4.7%, from $1.03 billion at December 31, 2014 to $1.08 billion at December 31, 2015.   At December 31, 2015, $13 million of the commercial real estate loans were for commercial properties under construction. 

The Company categorizes commercial loans by industry according to the North American Industry Classification System (NAICS) to monitor the portfolio for possible concentrations in one or more industries. As of December 31, 2015, the Company did not have an industry classification that exceeded 10% of total loans; however, approximately 20% of the Company's commercial loans are within the Lessors of Residential Buildings and Dwellings and Lessors of Nonresidential Buildings classifications.

Consumer loans may be secured by automobiles, boats, recreational vehicles and other personal property. The Company monitors the risk associated with these types of loans by monitoring such factors as portfolio growth, lending policies and economic conditions. Underwriting standards are continually evaluated and modified based upon these factors. Consumer loans decreased $4 million during 2015.  

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The following table shows the scheduled maturity of loans outstanding as of December 31, 2015 (in thousands):

	Within One Year		After One But Within Five Years		After Five Years		Total
Residential real estate	$	169,199	$	531,130	$	682,804	$	1,383,133
Home equity	21,797		56,024		69,215		147,036
Commercial and industrial	77,992		72,987		14,908		165,887
Commercial real estate	294,274		509,965		323,588		1,127,827
Consumer	18,714		20,059		671		39,444
Total loans	$	581,976	$	1,190,165	$	1,091,186	$	2,863,327
Loans maturing after one year with interest rates that are:
Fixed until maturity	$	407,968
Variable or adjustable	1,873,383
Total	$	2,281,351

ALLOWANCE AND PROVISION FOR LOAN LOSSES

Management systematically monitors the loan portfolio and the appropriateness of the allowance for loan losses (“ALLL”) on a quarterly basis to provide for probable losses incurred in the portfolio. Management assesses the risk in each loan type based on historical delinquency and loss trends, the general economic environment of its local markets, individual loan performance, and other relevant factors. Individual credits in excess of $1 million are selected at least annually for detailed loan reviews, which are utilized by management to assess the risk in the portfolio and the appropriateness of the allowance. Due to the nature of commercial lending, evaluation of the appropriateness of the allowance as it relates to these loan types is often based more upon specific credit review, with consideration given to the potential impairment of certain credits and historical loss rates, adjusted for general economic conditions and other inherent risk factors. Conversely, due to the homogeneous nature of the real estate and installment portfolios, the portions of the allowance allocated to those portfolios are primarily based on prior loss history of each portfolio, adjusted for general economic conditions and other inherent risk factors. Risk factors considered by the Company in completing this analysis include: (1) unemployment and economic trends in the Company’s markets, (2) concentrations of credit, if any, among any industries, (3) trends in loan growth, loan mix, delinquencies, losses or credit impairment, (4) adherence to lending policies and others. Each risk factor is designated as low, moderate/increasing, or high based on the Company’s assessment of the risk to loss associated with each factor. Each risk factor is then weighted to consider probability of occurrence.

The allowance not specifically allocated to individual credits is generally determined by analyzing potential exposure and other qualitative factors that could negatively impact the overall credit risk of the loan portfolio.  Loans not individually evaluated for impairment are grouped by pools with similar risk characteristics and the related historical loss rates are adjusted to reflect current inherent risk factors, such as unemployment, overall economic conditions, concentrations of credit, loan growth, classified and impaired loan trends, staffing, adherence to lending policies, and loss trends.

Determination of the allowance for loan losses is subjective in nature and requires management to periodically reassess the validity of its assumptions. Differences between actual losses and estimated losses are assessed such that management can timely modify its evaluation model to ensure that adequate provision has been made for risk in the total loan portfolio.

As a result of the Company’s quarterly analysis of the appropriateness of the ALLL, the Company recorded a provision for loan losses of $7.0 million, $4.1 million and $6.8 million for the years ended December 31, 2015, 2014 and 2013, respectively.

The provision for loan losses recorded in 2015 reflects the impact of several factors, including difficulties encountered by a certain commercial borrower of the Company engaged in the mining and energy sectors (per the North American Industry Classification System (NAICS)) which filed for bankruptcy during 2015, the modest growth in the loan portfolio, and changes in the quality of the portfolio. Changes in the amount of the provision and related allowance are based

16

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.

The Company had net charge-offs of $7.1 million for the year ended December 31, 2015 compared to $4.5 million for the year ended December 31, 2014.  Net charge-offs in 2015 consisted primarily of net charge-offs on commercial and industrial loans of $5.0 million (which primarily pertains to the commercial borrower discussed above) , residential real estate loans of $0.9 million and DDA overdraft loans of $0.6 million for the year ended December 31, 2015.  

The Company’s ratio of non-performing assets to total loans and other real estate owned decreased from 0.90% at December 31, 2014 to 0.83% at December 31, 2015.  Excluded from these ratios and balances are purchased credit-impaired loans which continue to perform in accordance with the estimated expectations. Such loans would be considered nonperforming loans if any such loan’s performance deteriorates below the initial expectations. Total past due loans decreased from $10.7 million, or 0.40% of total loans outstanding, at December 31, 2014 to $9.2 million, or 0.32% of total loans outstanding, at December 31, 2015. Acquired past due loans represent approximately 18% of total past due loans and have declined $14.8 million, or 90%, since March 31, 2013.

The allowance allocated to the commercial real estate loan portfolio decreased $1.1 million, or 12.8%, from $8.9 million at December 31, 2014 to $7.8 million at December 31, 2015. This decrease is primarily attributable to improvements in the historical loss rates in the portfolio.

The allowance allocated to the commercial and industrial loan portfolio increased $1.7 million from $1.6 million at December 31, 2014 to $3.3 million at December 31, 2015. The increase is primarily attributable to an increase in the amount of loans classified as substandard in this portfolio.

The allowance allocated to the residential real estate portfolio decreased $0.4 million from $7.2 million at December 31, 2014 to $6.8 million at December 31, 2015. The decrease is primarily attributable to improvements in the historical loss rates in the portfolio.

The allowance allocated to the home equity remained flat at $1.5 million at December 31, 2015. Consumer and overdraft loan portfolios at December 31, 2015 did not significantly change from December 31, 2014.

Based on the Company’s analysis of the appropriateness of the allowance for loan losses and in consideration of the known factors utilized in computing the allowance, management believes that the allowance for loan losses as of December 31, 2015, is adequate to provide for probable losses inherent in the Company’s loan portfolio. Future provisions for loan losses will be dependent upon trends in loan balances including the composition of the loan portfolio, changes in loan quality and loss experience trends, and recoveries of previously charged-off loans, among other factors.

17

TABLE SIX

ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES

An analysis of changes in the Company's allowance for loan losses follows (dollars in thousands):

	2015			2014			2013			2012			2011
Balance at beginning of period	$	20,150		$	20,575		$	18,809		$	19,409		$	18,224
Charge-offs:
Commercial and industrial	(5,051		)	(323		)	(1,040		)	(226		)	(522		)
Commercial real estate	(580		)	(1,925		)	(2,187		)	(4,604		)	(1,989		)
Residential real estate	(1,144		)	(1,762		)	(2,181		)	(1,030		)	(1,367		)
Home equity	(312		)	(309		)	(295		)	(1,355		)	(1,089		)
Consumer	(210		)	(188		)	(454		)	(190		)	(164		)
DDA overdrafts	(1,414		)	(1,415		)	(1,483		)	(1,522		)	(1,712		)
Total charge-offs	(8,711		)	(5,922		)	(7,640		)	(8,927		)	(6,843		)
Recoveries:
Commercial and industrial	74			89			84			32			23
Commercial real estate	366			113			785			289			1,981
Residential real estate	199			187			234			22			29
Home equity	—			—			—			18			7
Consumer	186			204			327			135			136
DDA overdrafts	792			850			1,128			1,456			1,252
Total recoveries	1,617			1,443			2,558			1,952			3,428
Net charge-offs	(7,094		)	(4,479		)	(5,082		)	(6,975		)	(3,415		)
Provision for loan losses	6,435			3,771			6,251			6,375			4,600
Provision for acquired loans	553			283			597			—			—
Balance at end of period	$	20,044		$	20,150		$	20,575		$	18,809		$	19,409
As a Percent of Average Total Loans:
Net charge-offs	0.26		%	0.17		%	0.20		%	0.34		%	0.18		%
Provision for loan losses	0.26		%	0.16		%	0.27		%	0.31		%	0.24		%
As a Percent of Non-Performing Loans:
Allowance for loan losses	114.91		%	128.11		%	90.25		%	96.59		%	87.76		%

TABLE SEVEN

NON-ACCRUAL, PAST-DUE AND RESTRUCTURED LOANS

The Company's nonperforming assets at December 31 were as follows (in thousands):

	2015		2014		2013		2012		2011
Non-accrual loans	$	16,948	$	15,306	$	22,361	$	19,194	$	21,951
Accruing loans past due 90 days or more	495		423		436		280		166
Total non-performing loans	$	17,443	$	15,729	$	22,797	$	19,474	$	22,117

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If the Company's non-accrual and impaired loans had been current in accordance with their original terms, approximately $0.8 million, $0.5 million, and $0.6 million of interest income would have been recognized during 2015, 2014 and 2013, respectively.  There were no commitments to provide additional funds on non-accrual, impaired, or other potential problem loans at December 31, 2015 and 2014.  

Interest on loans is accrued and credited to operations based upon the principal amount outstanding.  The accrual of interest income is generally discontinued when a loan becomes 90 days past due as to principal or interest unless the loan is well collateralized and in the process of collection.  When interest accruals are discontinued, interest credited to income in the current year that is unpaid and deemed uncollectible is charged to operations.  Prior-year interest accruals that are unpaid and deemed uncollectible are charged to the allowance for loan losses, provided that such amounts were specifically reserved.

Information pertaining to the Company's impaired loans is included in the following table (in thousands):

	2015		2014
Impaired loans with a valuation allowance	$	—	$	1,392
Impaired loans with no valuation allowance	8,482		5,377
Total impaired loans	$	8,482	$	6,769
Allowance for loan losses allocated to impaired loans	$	—	$	252

The impaired loans with a valuation allowance at the end of 2014 were comprised of two commercial borrowing relationships that were evaluated during that year and determined that an allowance was necessary. During 2015, one of those borrowers reduced their loan balance and therefore a reserve was not necessary and the other borrower paid off their loan in January 2016.

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.  The filing of bankruptcy is deemed to be evidence that the borrower is in financial difficulty and the discharge of the debt by the bankruptcy court is deemed to be a concession granted to the borrower.

The Company's troubled debt restructurings ("TDRs") related to its borrowers who had filed for Chapter 7 bankruptcy protection make up 92% of the Company's total TDRs as of December 31, 2015. The average age of these TDRs was 11.5 years; the average current balance as a percentage of the original balance was 67.7%; and the average loan-to-value ratio was 65.1% as of December 31, 2015. Of the total 488 Chapter 7 related TDRs, 39 had an estimated loss exposure based on the current balance and appraised value at December 31, 2015.

The following table sets forth the Company’s troubled debt restructurings ("TDRs") at December 31, 2015 and 2014 (in thousands):

19

	Accruing		Non-Accruing		Total
December 31, 2015
Commercial and industrial	$	58	$	—	$	58
Commercial real estate	1,746		—		1,746
Residential real estate	17,796		191		17,987
Home equity	2,659		34		2,693
Consumer	—		—		—
	$	22,259	$	225	$	22,484
December 31, 2014
Commercial and industrial	$	73	$	—	$	73
Commercial real estate	2,263		—		2,263
Residential real estate	17,946		545		18,491
Home equity	2,673		15		2,688
Consumer	—		—		—
	$	22,955	$	560	$	23,515

TABLE EIGHT

ALLOCATION OF THE ALLOWANCE FOR LOAN LOSSES

The allocation of the allowance for loan losses and the percent of loans in each category to total loans is shown in the table below (dollars in thousands):

	2015				2014				2013				2012				2011
	Amount		Percent of Loans in Each Category to Total Loans		Amount		Percent of Loans in Each Category to Total Loans		Amount		Percent of Loans in Each Category to Total Loans		Amount		Percent of Loans in Each Category to Total Loans		Amount		Percent of Loans in Each Category to Total Loans
Commercial and industrial	$	3,271	6	%	$	1,582	5	%	$	1,139	6	%	$	498	5	%	$	590	7	%
Commercial real estate	7,778		39	%	8,921		39	%	10,775		40	%	10,440		38	%	11,666		37	%
Residential real estate	6,778		48	%	7,208		49	%	6,057		46	%	5,229		48	%	4,839		47	%
Home equity	1,463		5	%	1,495		5	%	1,672		6	%	1,699		7	%	1,525		7	%
Consumer	97		2	%	85		2	%	77		2	%	81		2	%	88		2	%
DDA overdrafts	657		—	%	859		—	%	855		—	%	862		—	%	701		—	%
Allowance for Loan Losses	$	20,044	100	%	$	20,150	100	%	$	20,575	100	%	$	18,809	100	%	$	19,409	100	%

PREVIOUSLY SECURITIZED LOANS

As of December 31, 2015 and 2014, the carrying value of the remaining previously securitized loans was zero, while the actual contractual balances of these loans were $3.9 million and $4.9 million, respectively. During the years ended December 31, 2015, 2014 and 2013, the Company recognized $1.8 million, $2.2 million and $2.5 million, respectively, of interest income on its previously securitized loans.

GOODWILL

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The Company evaluates the recoverability of goodwill and indefinite lived intangible assets annually as of November 30^th, or more frequently if events or changes in circumstances warrant, such as a material adverse change in the business. Goodwill is considered to be impaired when the carrying value of a reporting unit exceeds its estimated fair value. Indefinite-lived intangible assets are considered impaired if their carrying value exceeds their estimated fair value. As described in Note One of the Notes to Consolidated Financial Statements, the Company conducts its business activities through one reportable business segment – community banking. Fair values are estimated by reviewing the Company’s stock price as it compares to book value and the Company’s reported earnings.  In addition, the impact of future earnings and activities are considered in the Company’s analysis.  The Company had $76.3 million and $71.4 million of goodwill at December 31, 2015 and 2014, respectively, and no impairment was required to be recognized in 2015 or 2014, as the fair value of the Company has continued to exceed its book value.

CERTIFICATES OF DEPOSIT

Scheduled maturities of time certificates of deposit of $250,000 or more outstanding at December 31, 2015, are summarized in Table Nine (in thousands). The Company has time certificates of deposit of $250,000 or more totaling $86.3 million (approximately 8% of total time deposits).  

TABLE NINE

MATURITY DISTRIBUTION OF CERTIFICATES OF DEPOSIT OF $250,000 OR MORE

	Amounts		Percentage
Three months or less	$	5,352	6	%
Over three months through six months	9,569		11	%
Over six months through twelve months	20,239		23	%
Over twelve months	51,139		60	%
Total	$	86,299	100	%

CONTRACTUAL OBLIGATIONS

The Company has various financial obligations that may require future cash payments according to the terms of the obligations. Demand, both noninterest- and interest-bearing, and savings deposits are, generally, payable immediately upon demand at the request of the customer. Therefore, the contractual maturity of these obligations is presented in the following table as “less than one year.” Time deposits, typically certificates of deposit, are customer deposits that are evidenced by an agreement between the Company and the customer that specify stated maturity dates and early withdrawals by the customer are subject to penalties assessed by the Company. Short-term borrowings and long-term debt represent borrowings of the Company and have stated maturity dates. The Company was not a party to any material capital or operating leases as of December 31, 2015.

TABLE TEN

CONTRACTUAL OBLIGATIONS

The composition of the Company's contractual obligations as of December 31, 2015 is presented in the following table (in thousands):

	Contractual Maturity in
	Less than One Year		Between One and Three Years		Between Three and Five Years		Greater than Five Years		Total
Noninterest-bearing demand deposits	$	621,073	$	—	$	—	$	—	$	621,073
Interest-bearing demand deposits(1)	680,264		—		—		—		680,264
Savings deposits(1)	766,459		—		—		—		766,459
Time deposits(1)	447,553		413,553		177,103		19		1,038,228
Short-term borrowings(1)	190,951		—		—		—		190,951
Long-term debt(1)	662		1,324		1,324		13,256		16,566
Total Contractual Obligations	$	2,706,962	$	414,877	$	178,427	$	13,275	$	3,313,541

(1) Includes interest on both fixed- and variable-rate obligations. The interest associated with variable-rate obligations is based upon interest rates in effect at December 31, 2015. The contractual amounts to be paid on variable-rate obligations are affected by market interest rates that could materially affect the contractual amounts to be paid.

The Company’s liability for uncertain tax positions at December 31, 2015 was $2.2 million pursuant to ASC Topic 740.  This liability represents an estimate of tax positions that the Company has taken in its tax returns that may ultimately not be sustained upon examination by tax authorities.  As the ultimate amount and timing of any future cash settlements cannot be predicted with reasonable reliability, this estimated liability has been excluded from the contractual obligations table.

OFF–BALANCE SHEET ARRANGEMENTS

As disclosed in Note Seventeen of the Notes to Consolidated Financial Statements, the Company has also entered into agreements with its customers to extend credit or to provide conditional commitments to provide payment on drafts presented in accordance with the terms of the underlying credit documents (including standby and commercial letters of credit). The Company also provides overdraft protection to certain demand deposit customers that represent an unfunded commitment. As a result of the Company’s off-balance sheet arrangements for 2015 and 2014, no material revenue, expenses, or cash flows were recognized.  In addition, the Company had no other indebtedness or retained interests nor entered into agreements to extend credit or provide conditional payments pursuant to standby and commercial letters of credit.

CAPITAL RESOURCES

During 2015, Shareholders’ Equity increased $28 million, or 7.3%, from $391 million at December 31, 2014 to $419 million at December 31, 2015.  This increase was primarily due to net income of $54 million and equity award vesting and exercises of $5 million, partially offset by cash dividends declared of $26 million and common stock repurchases for treasury of $7 million.

During the year ended December 31, 2015, the Company repurchased approximately 150,000 common shares at a weighted average price of $46.91. On September 24, 2014, the Company announced that the Board of Directors authorized the Company to buy back up to 1,000,000 shares of its common shares (approximately 7% of outstanding shares) in open market transactions at prices that are accretive to the earnings per share of continuing shareholders. No time limit was placed on the duration of the share repurchase program. At December 31, 2015, the Company could repurchase approximately 633,000 shares under the current plan.

In July 2013, the Federal Reserve published the final rules that established a new comprehensive capital framework for banking organizations, commonly referred to as Basel III. These final rules substantially revised the risk-based capital requirements applicable to bank holding companies and depository institutions. The final rule became effective January 1, 2015 for smaller, non-complex banking organizations with full implementation by January 1, 2019.

Regulatory guidelines require the Company to maintain a minimum common equity tier 1 ("CET 1") capital ratio of 4.5% and a total capital to risk-adjusted assets ratio of 8.0%, with at least one-half of capital consisting of tangible common stockholders’ equity and a minimum Tier 1 leverage ratio of 6.0%. Similarly, City National is also required to maintain minimum capital levels as set forth by various regulatory agencies. Under capital adequacy guidelines, City National is required to maintain minimum CET 1, total capital, Tier 1 capital, and leverage ratios of 4.5%, 8.0%, 6.0%, and 4.0%, respectively. To be classified

as “well capitalized,” City National must maintain CET 1, total capital, Tier 1 capital, and leverage ratios of 6.5%, 10.0%, 8.0%, and 5.0%, respectively.

When fully phased in on January 1, 2019, the Basel III Capital Rules will require City Holding and City National to maintain (i) a minimum ratio of CET 1 to risk-weighted assets of at least 4.5%, plus a 2.5% "capital conservation buffer" (which is added to the 4.5% CET 1 ratio as that buffer is phased in, effectively resulting in a minimum ratio of CET 1 to risk-weighted assets of at least 7.0% upon full implementation), (ii) a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the capital conservation buffer (which is added to the 6.0% Tier 1 capital ratio as that buffer is phased in, effectively resulting in a minimum Tier 1 capital ratio of 8.5% upon full implementation), (iii) a minimum ratio of Total capital (that is, Tier 1 plus Tier 2) to risk-weighted assets of at least 8.0%, plus the capital conservation buffer (which is added to the 8.0% total capital ratio as that buffer is phased in, effectively resulting in a minimum total capital ratio of 10.5% upon full implementation) and (iv) a minimum leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to average assets (as compared to a current minimum leverage ratio of 3.0% for banking organizations that either have the highest supervisory rating or have implemented the appropriate federal regulatory authority's risk-adjusted measure for market risk).

The implementation of the capital conservation buffer will begin on January 1, 2016 at the 0.625% level and be phased in over a four-year period (increasing by that amount on each subsequent January 1, until it reaches 2.5% on January 1, 2019). The Basel III Capital Rules also provide for a “countercyclical capital buffer” that is applicable to only certain covered institutions and does not have any current applicability to City Holding Company or City National Bank.

The aforementioned capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of CET 1 capital to risk-weighted assets above the minimum but below the conservation buffer (or below the combined capital conservation buffer and countercyclical capital buffer, when the latter is applied) will face constraints on dividends, equity repurchases and executive compensation based on the amount of the shortfall.

The Company’s regulatory capital ratios for both City Holding and City National are illustrated in the following table:

December 31, 2015	Actual				Minimum Required - Basel III Phase-In Schedule				Minimum Required - Basel III Fully Phased-In (*)				Required to be Considered Well Capitalized
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
CET 1 Capital
City Holding Company	$	345,620	13.7	%	$	113,919	4.5	%	$	177,207	7.0	%	$	164,549	6.5	%
City National Bank	264,812		10.5	%	113,209		4.5	%	176,103		7.0	%	163,524		6.5	%
Tier 1 Capital
City Holding Company	361,620		14.3	%	151,891		6.0	%	215,180		8.5	%	202,522		8.0	%
City National Bank	288,752		11.5	%	150,945		6.0	%	213,839		8.5	%	201,260		8.0	%
Total Capital
City Holding Company	382,180		15.1	%	202,522		8.0	%	265,810		10.5	%	253,152		10.0	%
City National Bank	308,804		12.3	%	201,260		8.0	%	264,154		10.5	%	251,575		10.0	%
Tier 1 Leverage Ratio
City Holding Company	361,620		10.2	%	142,521		4.0	%	142,521		4.0	%	178,151		5.0	%
City National Bank	288,752		8.1	%	141,874		4.0	%	141,874		4.0	%	177,343		5.0	%
(*) Represents the minimum required capital levels as of January 1, 2019 when Basel III Capital Rules have been fully phased in.

December 31, 2014:	Actual				Minimum Required for Capital Adequacy Purposes				Required to be Considered Well Capitalized
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
Tier 1 Capital
City Holding Company	$	333,163	13.4	%	$	99,723	4.0	%	$	149,585	6.0	%
City National Bank	294,870		11.9	%	99,037		4.0	%	148,556		6.0	%
Total Capital
City Holding Company	353,873		14.2	%	199,446		8.0	%	249,308		10.0	%
City National Bank	315,095		12.7	%	198,074		8.0	%	247,593		10.0	%
Tier 1 Leverage Ratio
City Holding Company	333,163		9.9	%	134,721		4.0	%	168,402		5.0	%
City National Bank	294,870		8.8	%	133,991		4.0	%	167,489		5.0	%

As of December 31, 2015, management believes that City Holding Company, and its banking subsidiary, City National, were “well capitalized.”  City Holding is subject to regulatory capital requirements administered by the Federal Reserve, while City National is subject to regulatory capital requirements administered by the OCC and the FDIC.  Regulatory agencies can initiate certain mandatory actions if either City Holding or City National fails to meet the minimum capital requirements, as shown above.  As of December 31, 2015, management believes that City Holding and City National meet all capital adequacy requirements.

LEGAL ISSUES

The Company is engaged in various legal actions that it deems to be in the ordinary course of business. As these legal actions are resolved, the Company could realize positive and/or negative impact to its financial performance in the period in which these legal actions are ultimately decided. There can be no assurance that current actions will have immaterial results, either positive or negative, or that no material actions may be presented in the future.

RECENT ACCOUNTING PROCOUNCEMENTS AND DEVELOPMENTS

Note One, “Recent Accounting Pronouncements,” of the Notes to Consolidated Financial Statements discusses recently issued new accounting pronouncements and their expected impact on the Company’s consolidated financial statements.

REPORT ON MANAGEMENT’S ASSESSMENT OF INTERNAL CONTROL OVER FINANCIAL REPORTING

The management of City Holding Company is responsible for the preparation, integrity, and fair presentation of the consolidated financial statements included in this annual report.  The consolidated financial statements of City Holding Company have been prepared in accordance with U.S. generally accepted accounting principles and, necessarily include some amounts that are based on the best estimates and judgments of management.

The management of City Holding Company is responsible for establishing and maintaining adequate internal control over financial reporting that is designed to produce reliable financial statements in conformity with U.S. generally accepted accounting principles.  The system of internal control over financial reporting is evaluated for effectiveness by management and tested for reliability through a program of internal audits with actions taken to correct potential deficiencies as they are identified.  Because of inherent limitations in any internal control system, no matter how well designed, misstatements due to error or fraud may occur and not be detected, including the possibility of the circumvention or overriding of controls.  Accordingly, even an effective internal control system can provide only reasonable assurance with respect to financial statement preparation.  Further, because of changes in conditions, internal control effectiveness may vary over time.

Management assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2015 based upon the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control - Integrated Framework (2013 Framework). Based on our assessment, management believes that, as of December 31, 2015, the Company's system of internal control over financial reporting is effective based on those criteria.  Ernst & Young LLP the Company’s independent registered public accounting firm, has issued an attestation report on the effectiveness of internal control over financial reporting. This report appears on page 26.

March 2, 2016

s/ Charles R. Hageboeck	/s/ David L. Bumgarner
Charles R. Hageboeck	David L. Bumgarner
President & Chief Executive Officer	Chief Financial Officer

25

REPORT OF ERNST & YOUNG LLP, INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM, ON EFFECTIVENESS OF INTERNAL CONTROL OVER FINANCIAL REPORTING

Audit Committee of the Board of Directors and the

Shareholders of City Holding Company

We have audited City Holding Company and subsidiaries’ internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). City Holding Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Report on Management’s Assessment of Internal Control Over Financial Reporting. Our responsibility is to express an opinion on City Holding Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, City Holding Company and subsidiaries maintained, in all material respects, effective internal control over financial reporting as of December 31, 2015, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of City Holding Company and subsidiaries as of December 31, 2015 and 2014, and the related consolidated statements of income, comprehensive income, changes in shareholders' equity, and cash flows for each of the three years in the period ended December 31, 2015 of City Holding Company and subsidiaries and our report dated March 2, 2016 expressed an unqualified opinion thereon.

	/s/ Ernst & Young LLP
Charleston, West Virginia
March 2, 2016

26

REPORT OF ERNST & YOUNG LLP, INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM, ON CONSOLIDATED FINANCIAL STATEMENTS

Audit Committee of the Board of Directors and the

Shareholders of City Holding Company

We have audited the accompanying consolidated balance sheets of City Holding Company and subsidiaries as of December 31, 2015 and 2014, and the related consolidated statements of income, comprehensive income, changes in shareholders’ equity, and cash flows for each of the three years in the period ended December 31, 2015.  These financial statements are the responsibility of City Holding Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of City Holding Company and subsidiaries at December 31, 2015 and 2014, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 2015, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), City Holding Company and subsidiaries' internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated March 2, 2016 expressed an unqualified opinion thereon.

	/s/ Ernst & Young LLP
Charleston, West Virginia
March 2, 2016

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PART I, ITEM 1 – FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS

CITY HOLDING COMPANY AND SUBSIDIARIES

(in thousands)

	December 31, 2015			December 31, 2014
Assets
Cash and due from banks	$	58,829		$	138,503
Interest-bearing deposits in depository institutions	11,284			9,725
Cash and Cash Equivalents	70,113			148,228
Investment securities available for sale, at fair value	369,466			254,043
Investment securities held-to-maturity, at amortized cost (approximate fair value at December 31, 2015 and 2014 - $90,810 and $94,191, respectively)	88,937			90,786
Other securities	12,915			9,857
Total Investment Securities	471,318			354,686
Gross loans	2,863,327			2,652,066
Allowance for loan losses	(20,044		)	(20,150		)
Net Loans	2,843,283			2,631,916
Bank owned life insurance	97,919			95,116
Premises and equipment, net	77,271			77,988
Accrued interest receivable	7,432			6,826
Deferred tax asset, net	29,974			36,766
Goodwill and other intangible assets, net	79,792			74,198
Other assets	36,957			35,909
Total Assets	$	3,714,059		$	3,461,633
Liabilities
Deposits:
Noninterest-bearing	$	621,073		$	545,465
Interest-bearing:
Demand deposits	679,735			639,932
Savings deposits	765,611			660,727
Time deposits	1,017,556			1,026,663
Total Deposits	3,083,975			2,872,787
Short-term borrowings:
Federal Home Loan Bank advances	13,000			—
Securities sold under agreements to repurchase	141,869			134,931
Long-term debt	16,495			16,495
Other liabilities	39,448			46,567
Total Liabilities	3,294,787			3,070,780
Shareholders’ 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, 2015 and December 31, 2014, less 3,319,067 and 3,345,590, shares in treasury, respectively	46,249			46,249
Capital surplus	106,269			107,370
Retained earnings	390,690			362,211
Treasury stock	(120,104		)	(120,818		)
Accumulated other comprehensive income (loss):
Unrealized gains on securities available-for-sale	927			1,190
Underfunded pension liability	(4,759		)	(5,349		)
Total Accumulated Other Comprehensive Loss	(3,832		)	(4,159		)
Total Shareholders’ Equity	419,272			390,853
Total Liabilities and Shareholders’ Equity	$	3,714,059		$	3,461,633

See notes to consolidated financial statements.

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CONSOLIDATED STATEMENTS OF INCOME

CITY HOLDING COMPANY AND SUBSIDIARIES

(in thousands, except earnings per share data)

	Year Ended December 31
	2015		2014		2013
Interest Income
Interest and fees on loans	$	115,107	$	116,658	$	126,594
Interest on investment securities:
Taxable	10,830		11,766		10,697
Tax-exempt	1,137		1,142		1,226
Interest on federal funds sold	—		—		22
Total Interest Income	127,074		129,566		138,539
Interest Expense
Interest on deposits	10,886		11,012		12,358
Interest on short-term borrowings	327		342		325
Interest on long-term debt	617		606		618
Total Interest Expense	11,830		11,960		13,301
Net Interest Income	115,244		117,606		125,238
Provision for loan losses	6,988		4,054		6,848
Net Interest Income After Provision for Loan Losses	108,256		113,552		118,390
Non-interest Income
Gains on sale of investment securities	2,130		1,156		764
Service charges	26,316		26,583		27,596
Bankcard revenue	15,894		15,063		13,521
Insurance commissions	—		5,978		5,832
Trust and investment management fee income	5,124		4,614		3,986
Bank owned  life insurance	3,374		3,070		3,391
Gain on sale of insurance division	11,084		—		—
Other income	3,284		2,258		2,916
Total Non-interest Income	67,206		58,722		58,006
Non-interest Expense
Salaries and employee benefits	47,847		51,749		51,430
Occupancy and equipment	10,277		9,990		9,910
Depreciation	6,088		6,087		5,757
FDIC insurance expense	1,794		1,647		1,852
Advertising	2,446		3,274		2,673
Bankcard expenses	3,262		3,555		3,024
Postage, delivery, and statement mailings	2,123		2,211		2,220
Office supplies	1,350		1,595		1,728
Legal and professional fees	2,391		2,049		3,028
Telecommunications	1,765		1,876		2,212
Repossessed asset losses, net of expenses	1,264		579		646
Merger related costs	598		—		5,526
Other expenses	11,746		10,429		12,900
Total Non-interest Expense	92,951		95,041		102,906

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Income Before Income Taxes	82,511		77,233		73,490
Income tax expense	28,414		24,271		25,275
Net Income Available to Common Shareholders	$	54,097	$	52,962	$	48,215
Average common shares outstanding	15,123		15,403		15,564
Effect of dilutive securities:
Employee stock options and warrant	48		85		144
Shares for diluted earnings per share	15,171		15,488		15,708
Basic earnings per common share	$	3.54	$	3.40	$	3.07
Diluted earnings per common share	$	3.53	$	3.38	$	3.04
Dividends declared per common share	$	1.68	$	1.60	$	1.48

See notes to consolidated financial statements.

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

CITY HOLDING COMPANY AND SUBSIDIARIES

(in thousands)

	Year Ended December 31
	2015			2014			2013
Net income available to common shareholders	$	54,097		$	52,962		$	48,215
Available-for-Sale Securities
Unrealized gain (loss) on available-for-sale securities arising during period	1,713			6,388			(8,244		)
Reclassification adjustment for net gains	(2,130		)	(1,156		)	(764		)
Other comprehensive (loss) income related to available-for-sale securities	(417		)	5,232			(9,008		)
Defined Benefit Pension Plan
Amortization of actuarial net gains	975			669			895
Recognition of unrealized (losses) gains	(40		)	(4,584		)	2,457
Change in underfunded pension liability	935			(3,915		)	3,352
Other comprehensive income (loss) before income taxes	518			1,317			(5,656		)
Tax effect	(191		)	(486		)	2,088
Other comprehensive income (loss), net of tax	327			831			(3,568		)
Comprehensive income, net of tax	54,424			53,793			44,647

See notes to consolidated financial statements.

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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

CITY HOLDING COMPANY AND SUBSIDIARIES

(dollars in thousands)

	Common Stock		Capital Surplus			Retained Earnings			Treasury Stock			Accumulated Other Comprehensive Income (Loss)			Total Shareholders’ Equity
Balances at December 31, 2012	$	46,249	$	103,524		$	309,270		$	(124,347	)	$	(1,422	)	$	333,274
Net income available to common shareholders						48,215									48,215
Other comprehensive income												(3,568		)	(3,568		)
Acquisition of Community Financial Corporation			4,236						24,272						28,508
Cash dividends declared ($1.48 per share)						(23,515		)							(23,515		)
Stock-based compensation expense, net			(37		)				1,319						1,282
Exercise of 126,168 stock options			(127		)				3,554						3,427
Balances at December 31, 2013	$	46,249	$	107,596		$	333,970		$	(95,202	)	$	(4,990	)	$	387,623

	Common Stock		Capital Surplus			Retained Earnings			Treasury Stock			Accumulated Other Comprehensive Income (Loss)			Total Shareholders’ Equity
Balances at December 31, 2013	$	46,249	$	107,596		$	333,970		$	(95,202	)	$	(4,990	)	$	387,623
Net income available to common shareholders						52,962									52,962
Other comprehensive income												831			831
Cash dividends declared ($1.60 per share)						(24,721		)							(24,721		)
Stock-based compensation expense, net			64						1,471						1,535
Exercise of 20,000 stock options			(290		)				870						580
Purchase of 650,799 treasury shares									(27,957		)				(27,957		)
Balances at December 31, 2014	$	46,249	$	107,370		$	362,211		$	(120,818	)	$	(4,159	)	$	390,853

	Common Stock		Capital Surplus			Retained Earnings			Treasury Stock			Accumulated Other Comprehensive Income (Loss)			Total Shareholders’ Equity
Balances at December 31, 2014	$	46,249	$	107,370		$	362,211		$	(120,818	)	$	(4,159	)	$	390,853
Net income available to common shareholders						54,097									54,097
Other comprehensive income												327			327
Cash dividends declared ($1.68 per share)						(25,618		)							(25,618		)
Stock-based compensation expense, net			266						1,527						1,793
Exercise of 81,500 stock options			(602		)				3,581						2,979
Exercise of 61,796 warrants			(765		)				2,661						1,896
Purchase of 150,385 treasury shares									(7,055		)				(7,055		)
Balances at December 31, 2015	$	46,249	$	106,269		$	390,690		$	(120,104	)	$	(3,832	)	$	419,272

See notes to consolidated financial statements.

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CONSOLIDATED STATEMENTS OF CASH FLOWS

CITY HOLDING COMPANY AND SUBSIDIARIES

(in thousands)

	Year Ended December 31
	2015			2014			2013
Net income available to common shareholders	$	54,097		$	52,962		$	48,215
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and accretion	(4,589		)	(4,654		)	(11,294		)
Provision for loan losses	6,988			4,054			6,848
Depreciation of premises and equipment	6,088			6,087			5,757
Deferred income tax expense	6,627			4,585			4,686
Net periodic employee benefit cost	836			500			903
Realized investment securities gains	(2,130		)	(1,156		)	(764		)
Stock-based compensation expense	1,793			1,535			1,282
Increase in value of bank-owned life insurance	(3,374		)	(3,069		)	(3,211		)
Proceeds from bank-owned life insurance	571			—			—
Originations of loans held for sale	(17,849		)	(8,763		)	(23,280		)
Proceeds from loans held for sale	18,668			8,319			27,830
Gain on sale of loans	(367		)	(187		)	(608		)
Gain on sale of insurance division	(11,084		)	—			—
Change in accrued interest receivable	(375		)	40			1,220
Change in other assets	473			(8,262		)	22,497
Change in other liabilities	(8,478		)	1,363			(4,188		)
Net Cash Provided by Operating Activities	47,895			53,354			75,893
Proceeds from sales of securities available-for-sale	389			6,714			19,210
Proceeds from maturities and calls of securities available-for-sale	55,726			48,983			91,096
Proceeds from maturities and calls of securities held-to-maturity	13,191			6,501			10,223
Purchases of securities available-for-sale	(175,271		)	(31,295		)	(80,778		)
Purchases of securities held-to-maturity	(10,392		)	(10,226		)	—
Net increase in loans	(100,130		)	(43,714		)	(83,962		)
Purchases of premises and equipment	(3,014		)	(2,323		)	(7,476		)
Disposals of premises and equipment	141			649			854
Proceeds from sale of CityInsurance	15,250			—			—
Acquisition of American Founders Bank, Inc., including cash acquired of $561	20,030			—			—
Acquisition of Community Financial Corporation, net of cash acquired of $8,888	—			—			(21,853		)
Net Cash Used in Investing Activities	(184,080		)	(24,711		)	(72,686		)
Net increase in noninterest-bearing deposits	52,230			52,237			20,423
Net increase (decrease) in interest-bearing deposits	18,544			36,203			(26,450		)
Net increase (decrease) in short-term borrowings	14,780			(2,867		)	23,153
Purchases of treasury stock	(7,055		)	(27,957		)	—
Proceeds from exercise of stock options	2,979			580			3,427
Proceeds from exercise of warrants	1,896			—			—
Dividends paid	(25,304		)	(24,487		)	(22,878		)
Net Cash Provided by (Used in) Financing Activities	58,070			33,709			(2,325		)
(Decrease) Increase in Cash and Cash Equivalents	(78,115		)	62,352			882
Cash and cash equivalents at beginning of period	148,228			85,876			84,994
Cash and Cash Equivalents at End of Period	$	70,113		$	148,228		$	85,876

See notes to consolidated financial statements.

33

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

CITY HOLDING COMPANY AND SUBSIDIARIES

NOTE ONE – SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES

Summary of Significant Accounting and Reporting Policies: The accounting and reporting policies of City Holding Company and its subsidiaries (the “Company”) conform with U. S. generally accepted accounting principles and require management to make estimates and develop assumptions that affect the amounts reported in the financial statements and related footnotes. Actual results could differ from management’s estimates. The following is a summary of the more significant policies.

Principles of Consolidation: The consolidated financial statements include the accounts of City Holding Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements.

The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity in conformity with U. S. generally accepted accounting principles. Voting interest entities are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. The Company consolidates voting interest entities in which it has all, or at least a majority of, the voting interest. As defined in applicable accounting standards, variable interest entities (VIEs) are entities that lack one or more of the characteristics of a voting interest entity. A controlling financial interest in an entity is present when an enterprise has a variable interest, or a combination of variable interests, that will absorb a majority of the entity’s expected losses, receive a majority of the entity’s expected residual returns, or both. The enterprise with a controlling financial interest, known as the primary beneficiary, consolidates the VIE. The Company’s wholly owned subsidiary, City Holding Capital Trust III, is a VIE for which the Company is not the primary beneficiary. Accordingly, the accounts of this entity are not included in the Company’s consolidated financial statements.

       Certain amounts in the financial statements have been reclassified. Such reclassifications had no impact on shareholders’ equity or net income for any period.

Description of Principal Markets and Services: The Company is a registered financial holding company under the Bank Holding Company Act headquartered in Charleston, West Virginia, and conducts its principal activities through its wholly-owned subsidiary, City National Bank of West Virginia (“City National”). City National is a retail and consumer-oriented community bank with 85 banking offices in West Virginia, Virginia, Kentucky and southeastern Ohio. City National provides credit, deposit, and trust and investment management services to its customers. In addition to its branch network, City National's delivery channels include ATMs, mobile banking, debit cards, interactive voice response systems and Internet technology. The Company conducts its business activities through one reportable business segment - community banking.

Cash and Due from Banks: The Company considers cash, due from banks, and interest-bearing deposits in depository institutions as cash and cash equivalents.

Securities: Management determines the appropriate classification of securities at the time of purchase. If management has the intent and the Company has the ability at the time of purchase to hold debt securities to maturity, they are classified as investment securities held-to-maturity and are stated at amortized cost, adjusted for amortization of premiums and accretion of discounts. Debt securities which the Company may not hold to maturity are classified as investment securities available-for-sale along with the Company’s investment in equity securities. Securities available-for-sale are carried at fair value, with the unrealized gains and losses, net of tax, reported in comprehensive income. Securities classified as available-for-sale include securities that management intends to use as part of its asset/liability management strategy and that may be sold in response to changes in interest rates, resultant prepayment risk, and other factors.

       The Company utilizes a third party pricing service provider to value its investment portfolio.  Annually, the Company obtains an independent auditor’s report from its third party pricing service provider regarding its controls over valuation of investment securities.  Although an unqualified opinion regarding the design and operating effectiveness of controls was issued, the report did contain caveats and disclaimers regarding the pricing information, such as the Company should review market values for reasonableness.  On a quarterly basis, the Company selects a sample of its debt securities and reprices those securities with a third party that is independent of the primary pricing service provider to verify the reasonableness of the fair values.

       Also, on a quarterly basis, the Company performs a review of investment securities to determine if any unrealized losses are other than temporarily impaired.  Management considers the following, among other things, in its determination of

34

the nature of the unrealized losses, (i) the length of time and the extent to which the fair value has been less than cost; (ii) the financial condition, capital strength, and near–term (12 months) prospects of the issuer, including any specific events which may influence the operations of the issuer such as changes in technology that may impair the earnings potential of the investment or the discontinuance of a segment of the business that may affect the future earnings potential; (iii) the historical volatility in the market value of the investment and/or the liquidity or illiquidity of the investment; (iv) adverse conditions specifically related to the security, an industry, or a geographic area; or (v) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.  The Company continues to actively monitor the market value of these investments along with the financial strength of the issuers behind these securities, as well as its entire investment portfolio.  Based on the market information available, the Company believes that (i) the declines in fair value are temporary, driven by fluctuations in the interest rate environment and not due to the credit worthiness of the issuers, (ii) the Company does not have the intent to sell any of the securities classified as available for sale, and (iii) it is more likely than not that the Company will not have to sell any such securities before recovery of cost.  The Company cannot guarantee that such securities will recover and if additional information becomes available in the future to suggest that the losses are other than temporary, the Company may need to record impairment charges in the future.

The specific identification method is used to determine the cost basis of securities sold. Certain investment securities that do not have readily determinable fair values and for which the Company does not exercise significant influence are carried at cost and classified as other investment securities on the Consolidated Balance Sheets.  These cost-method investments are reviewed for impairment at least annually or sooner if events or changes in circumstances indicate the carrying value may not be recoverable.

       Loans: Loans, excluding previously securitized loans, which are discussed separately below, are reported at the principal amount outstanding, net of unearned income.  Portfolio loans include those for which management has the intent and City has the ability to hold for the foreseeable future, or until maturity or payoff.  The foreseeable future is based upon management’s judgment of current business strategies and market conditions, the type of loan, asset/liability management, and liquidity.

       Interest income on loans is accrued and credited to operations based upon the principal amount outstanding, using methods that generally result in level rates of return. Loan origination fees, and certain direct costs, are deferred and amortized as an adjustment to the yield over the term of the loan. The accrual of interest income generally is discontinued when a loan becomes 90 days past due as to principal or interest for all loan types.  However, any loan may be placed on non-accrual if the Company receives information that indicates that it is probable a borrower will be unable to meet the contractual terms of their respective loan agreement. Other indicators considered for placing a loan on non-accrual status include the borrower’s involvement in bankruptcies, foreclosures, repossessions, litigation and any other situation resulting in doubt as to whether full collection of contractual principal and interest is attainable. When interest accruals are discontinued, unpaid interest recognized in income in the current year is reversed, and interest accrued in prior years is charged to the allowance for loan losses. Management may elect to continue the accrual of interest when the estimated net realizable value of collateral exceeds the principal balance and related accrued interest, and the loan is in process of collection.

Generally for all loan classes, interest income during the period the loan is non-performing is recorded on a cash basis after recovery of principal is reasonably assured. Cash payments received on nonperforming loans are typically applied directly against the outstanding principal balance until the loan is fully repaid. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt.

Generally, all loan types are considered past due when the contractual terms of a loan are not met and the borrower is 30 days or more past due on a payment.  Furthermore, residential and home equity loans are generally subject to charge-off when the loan becomes 120 days past due, depending on the estimated fair value of the collateral less cost to dispose, versus the outstanding loan balance. Commercial loans are generally charged off when the loan becomes 120 days past due and consumer loans are generally charged off when the loan becomes 120 days past due.

Acquired Loans: In determining the estimated fair value of the acquired loans, management considered several factors, such as estimated future credit losses, estimated prepayments, remaining lives of the acquired loans, estimated value of the underlying collateral and the present value of the cash flows expected to be received.  For smaller loans not specifically reviewed, management grouped the loans into their respective homogeneous loan pool and applied a loss estimate accordingly.

Acquired loans are accounted for using one of the two following accounting standards:

(1) ASC Topic 310-20 is used to value loans that do not have evidence of credit quality deterioration.  For these loans, the difference between the fair value of the loan and the amortized cost of the loan is amortized or accreted into income using the interest method.

35

(2) ASC Topic 310-30 is used to value loans that have evidence of credit quality deterioration.  For these loans, the expected cash flows that exceed the fair value of the loan represent the accretable yield, which is recognized as interest income on a level-yield basis over the expected cash flow periods of the loans.  The non-accretable difference represents the difference between the contractually required principal and interest payments and the cash flows expected to be collected based upon management’s estimation.  Subsequent decreases in the expected cash flows will require the Company to evaluate the need for additions to the Company’s allowance for loan losses.  Subsequent increases in the expected cash flows will result in a reversal of the provision for loan losses to the extent of prior charges with a corresponding adjustment to the accretable yield, which will result in the recognition of additional interest income over the remaining lives of the loans. 

Previously Securitized Loans: Previously securitized loans represent the carrying value of loans beneficially owned by the Company as a result of exercising its early redemption option during 2003 and 2004 to fully redeem the obligations owed to investors (“notes”) in certain of the Company’s securitization transactions. The loans were recorded at the lower of fair value or their carrying values, which was the carrying value of the related retained interest asset underlying the securitization plus amounts remitted by the Company to the note holders to redeem the notes. Because the carrying value of the retained interests incorporated assumptions with regard to expected prepayment and default rates on the loans and also considered the expected timing and amount of cash flows to be received by the Company, the carrying value of the retained interests and the carrying value of the loans was less than the actual outstanding balance of the loans. Effective January 1, 2012, the carrying value of the remaining previously securitized loans was reduced to zero and any cash received on these loans is recorded as interest income in the period that it is received.

Allowance for Loan Losses: The allowance for loan losses is maintained at a level that represents management’s best estimate of probable losses in the loan portfolio. Management’s determination of the appropriateness of the allowance for loan losses is based upon an evaluation of individual credits in the loan portfolio, historical loan loss experience, current economic conditions, and other relevant factors. This determination is inherently subjective, as it requires material estimates including the amounts and timing of future cash flows expected to be received on impaired loans that may be susceptible to significant change. These evaluations are conducted at least quarterly and more frequently if deemed necessary.  The allowance for loan losses related to loans considered to be impaired is generally evaluated based on the discounted cash flows using the impaired loan’s initial effective interest rate or the fair value of the collateral for certain collateral dependent loans. Loan losses are charged against the allowance and recoveries of amounts previously charged off are credited to the allowance. A provision for loan losses is charged to operations based on management’s periodic evaluation of the appropriateness of the allowance after considering factors noted above, among others.

In evaluating the appropriateness of its allowance for loan losses, the Company stratifies the loan portfolio into six major groupings, including commercial real estate, commercial and industrial, residential real estate, home equity, and others. Historical loss experience, as adjusted, is applied to the then outstanding balance of loans in each classification to estimate probable losses inherent in each segment of the portfolio. Historical loss experience is adjusted using a systematic weighted probability of potential risk factors that could result in actual losses deviating from prior loss experience. Risk factors considered by the Company in completing this analysis include: (1) unemployment and economic trends in the Company’s markets, (2) concentrations of credit, if any, among any industries, (3) trends in loan growth, loan mix, delinquencies, losses or credit impairment, (4) adherence to lending policies and others. Each risk factor is designated as low, moderate/increasing, or high based on the Company’s assessment of the risk to loss associated with each factor. Each risk factor is then weighted to consider probability of occurrence.

Additionally, all commercial loans within the portfolio are subject to internal risk grading. Risk grades are generally assigned by the primary lending officer and are periodically evaluated by the Company’s internal loan review process. Based on an individual loan’s risk grade, estimated loss percentages are applied to the outstanding balance of the loan to determine the amount of probable loss.

Premises and Equipment: Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed primarily by the straight-line method over the estimated useful lives of the assets. Depreciation of leasehold improvements is computed using the straight-line method over the lesser of the term of the respective lease or the estimated useful life of the respective asset. Maintenance and repairs are charged to expense as incurred, while improvements that extend the useful life of premises and equipment are capitalized and depreciated over the estimated remaining life of the asset.

Other Real Estate Owned:  Other real estate owned (“OREO”) is comprised principally of commercial and residential real estate properties obtained in partial or total satisfaction of loan obligations.  OREO acquired in settlement of indebtedness is included in Other Assets at the lower of estimated fair value of the asset, less estimated selling costs or the carrying amount of the loan.  Changes to the value subsequent to transfer are recorded in non-interest expense, along with direct operating

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expenses.  Gains or losses not previously recognized from sales of OREO are recognized in non-interest expense on the date of the sale.  As of December 31, 2015 and 2014, the amount of OREO included in Other Assets was $6.5 million and $8.2 million, respectively.

Goodwill and OtherIntangible Assets: Goodwill is the excess of the cost of an acquisition over the fair value of tangible and intangible assets acquired.  Goodwill is not amortized.  Intangible assets represent purchased assets that also lack physical substance, but can be separately distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset or liability.  Intangible assets with determinable useful lives, such as core deposits, are amortized over their estimated useful lives.

The Company performs an annual review for impairment in the recorded value of goodwill and indefinite lived intangible assets. Goodwill is tested for impairment between the annual tests if an event occurs or circumstances change that more than likely reduce the fair value of a reporting unit below its carrying value. An indefinite-lived intangible asset is tested for impairment between the annual tests if an event occurs or circumstances change indicating that the asset might be impaired.

Securities Sold Under Agreements to Repurchase:  Securities sold under agreements to repurchase are accounted for as collateralized financing transactions and are recorded at the amounts at which the securities were sold plus accrued interest.  Securities sold primarily consists of U.S. government, federal agency, and municipal securities pledged as collateral under these financing arrangements and cannot be repledged or sold, unless replaced by the secured party.

Insurance Commissions:  Commission revenue was recognized as of the effective date of the insurance policy or the date the customer was billed, whichever was later.  The Company also received contingent commissions from insurance companies as additional incentive for achieving specified premium volume goals and/or the loss experience of the insurance placed by the Company.  The Company maintained a reserve for commission adjustments based on estimated policy cancellations.

In January 2015, the Company sold its insurance operations, CityInsurance, to The Hilb Group, effective January 1, 2015. As a result of this sale, the Company recognized a one-time, after tax gain of $5.8 million.

Derivative Financial Instruments: The Company enters into derivative transactions principally to protect against the risk of adverse price or interest rate movements on the value of certain assets and liabilities and on future cash flows.  All derivative instruments are carried at fair value on the balance sheet. As of December 31, 2015 and 2014, the Company has derivative instruments not included in hedge relationships. These derivatives consist of interest rate swaps used for interest rate management purposes and derivatives executed with commercial banking customers to facilitate their interest rate management strategies. The change in the fair value of these derivative instruments is reflected in the statements of income. As of December 31, 2015, the Company also has a derivative instrument that is included in hedge relationships. This derivative consists of an interest rate swap used for interest rate management purposes on commercial real estate loans. The change in the fair value of these derivative instruments is reflected in the statements of income and net swap settlements are recognized in interest income.

Trust Assets:  Assets held in a fiduciary or agency capacity for customers are not included in the accompanying financial statements since such items are not assets of the Company.

Income Taxes: The consolidated provision for income taxes is based upon reported income and expense. Deferred income taxes are provided for temporary differences between financial reporting and tax bases of assets and liabilities, computed using enacted tax rates. The Company files a consolidated income tax return. The respective subsidiaries generally provide for income taxes on a separate return basis and remit amounts determined to be currently payable to the Parent Company.

The Company and its subsidiaries are subject to examinations and challenges from federal and state taxing authorities regarding positions taken in returns.  Uncertain tax positions are initially recognized in the consolidated financial statements when it is more likely than not the position will be sustained upon examination.  These positions are initially and subsequently measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the taxing authority and assuming full knowledge of the position and all relevant facts by the taxing authority.

The Company invests in certain limited partnerships that operate qualified low-income housing tax credit developments.  These investments are considered variable interest entities for which the Company is not the primary beneficiary.  The tax credits are reflected in the Consolidated Statements of Income as a reduction in income tax expense.  The unamortized amount of the investments is recorded within Other Assets within the Consolidated Balance Sheets.  The Company’s investments in affordable housing limited partnerships were $0.5 million and $0.9 million at December 31, 2015 and 2014, respectively.

Advertising Costs: Advertising costs are expensed as incurred.

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Stock-Based Compensation: Compensation expense related to stock options and restricted stock awards issued to employees is based upon the fair value of the award at the date of grant.  The fair value of stock options is estimated utilizing a Black Scholes pricing model, while the fair value of restricted stock awards is based upon the stock price at the date of grant.  Compensation expense is recognized on a straight line basis over the vesting period for options and the respective period for stock awards.

Basic and Diluted Earnings per Common Share: Basic earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding, excluding participating securities. Diluted earnings per share is computed by dividing net income by the weighted-average number of shares outstanding, excluding participating securities, increased by the number of shares of common stock which would be issued assuming the exercise of stock options and other common stock equivalents.

Recent Accounting Pronouncements: In January 2014, the FASB issued ASU No. 2014-04, "Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure." This ASU clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through similar legal agreement. Additionally, the amendments require interim and annual disclosures of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. This ASU became effective for the Company on January 1, 2015. The adoption of ASU 2014-04 did not have a material impact on the Company's financial statements.

In April 2014, the FASB issued ASU No. 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." This ASU changes the requirements for reporting discontinued operations. A disposal of a component or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations when certain criteria are met. Additional disclosures are also required for disposals that meet the criteria to be reported in discontinued operations. The Company elected to early adopt this ASU for the year ended December 31, 2014 relating to the sale of CityInsurance. The adoption of ASU 2014-08 did not have a material impact on the Company's financial statements.

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The core principle will be achieved using a five step process. In August 2015 the FASB issued Accounting Standards Update 2015-14, "Revenue from Contracts with Customers (Topic 606)," which amends the effective date for the Company from January 1, 2017 to January 1, 2018. The adoption of this standard is not expected to have a material impact on the Company's financial statements.

In June 2014, the FASB issued ASU No. 2014-11, "Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures." The amendments in this update require two accounting changes. First, the amendments in this update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. Second, for repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counter-party, which will result in secured borrowing accounting for the repurchase agreement. This update also requires certain disclosures for these types of transactions. This ASU became effective for the Company on January 1, 2015. The adoption of ASU 2014-11 did not have a material impact on the Company's financial statements.

In June 2014, the FASB issued ASU No. 2014-12, "Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period." The amendments in this update require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Performance targets should not be reflected in estimating the grant date fair value of the award, but compensation cost should be recognized in the period for which the requisite service has already been rendered. This ASU will become effective for the Company on January 1, 2016, with early adoption permitted. The adoption of ASU 2014-12 is not expected to have a material impact on the Company's financial statements.

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In August 2014, the FASB issued ASU No. 2014-14, "Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure." The amendments in this update require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if certain conditions are met. This ASU became effective for the Company on January 1, 2015. The adoption of ASU 2014-14 did not have a material impact on the Company's financial statements.

In February 2015, the FASB issued ASU No. 2015-02, "Consolidation (Topic 810) - Amendments to the Consolidation Analysis." ASU 2015-02 eliminates the deferral of FAS 167 and makes changes to both the variable interest model and the voting model. This ASU will become effective for the Company on January 1, 2016. The adoption of ASU 2015-02 is not expected to have a material impact on the Company's financial statements.

In April 2015, the FASB issued ASU No. 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU will become effective for the Company on January 1, 2016. The adoption of ASU 2015-03 is not expected to have a material impact on the Company's financial statements.

In April 2015, the FASB issued ASU No. 2015-05, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement." ASU 2015-05 provides guidance to clarify the customer’s accounting for fees paid in a cloud computing arrangement. This ASU will become effective for the Company on January 1, 2016. The adoption of ASU 2015-05 is not expected to have a material impact on the Company's financial statements.

In May 2015, the FASB issued ASU No. 2015-07, "Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)." ASU 2015-07 removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. This ASU will become effective for the Company on January 1, 2016. The adoption of ASU 2015-07 is not expected to have a material impact on the Company's financial statements.

In September 2015, the FASB issued ASU No. 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments." The amendments in ASU 2015-16 require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The effect on earnings of the adjustments as a result of the change to the provisional amounts will be calculated as if the accounting had been completed at the acquisition date. The amount that would've been recorded in the previous reporting periods will be presented separately on the face of the income statement or disclosed in the notes to the financial statements. This ASU will become effective for the Company on January 1, 2016. The adoption of ASU 2015-16 is not expected to have a material impact on the Company's financial statements.

In November 2015, the FASB issued ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes." This standard requires that deferred tax liabilities and assets be classified as non-current on the balance sheet. This ASU will become effective for the Company for interim and annual periods on January 1, 2017 and early adoption is permitted. The adoption of ASU No. 2015-17 is not expected to have a material impact on the Company's financial statements.

In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." This standard makes several modifications to Subtopic 825-10 including the elimination of the available-for-sale classification of equity investments, and requires equity investments with readily determinable fair values to be measured at fair value with changes in fair value recognized in net income. This ASU will become effective for the Company for interim and annual periods on January 1, 2018. The adoption of ASU No. 2016-01 is not expected to have a material impact on the Company's financial statements.

Statements of Cash Flows: Cash paid for interest, including interest paid on long-term debt and trust preferred securities, was $11.8 million, $12.1 million, and $13.4 million in 2015, 2014, and 2013, respectively. During 2015, 2014 and 2013, the Company paid $26.3 million, $23.0 million, and $16.6 million, respectively, for income taxes.

During the twelve months endedDecember 31, 2014, the Company transferred certain securities from available-for-sale to held-to-maturity. The non-cash transfers of securities into the held-to-maturity categories from available-for-sale were made at fair value on the date of the transfer. The securities had an aggregate fair value of $83.4 million on the date of transfer.

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NOTE TWO – ACQUISITION

On November 6, 2015, the Company purchased three branches in Lexington, Kentucky from American Founders Bank, Inc. ("AFB"), a wholly owned subsidiary of Financial Holdings, Inc. The Company agreed to pay: (i) a $5.2 million premium on the non-time deposits acquired (representing a 5.5% premium on average balance for the preceding twenty days), (ii) a $1.2 million premium on the loans acquired (representing a 1.0% premium on loan balances at the date of acquisition, plus certain adjustments) and (iii) $4.0 million for the one bank owned branch. The purchase added approximately $145 million in deposits and $119 million in loans.

Acquired Loans

The Company did not acquire any purchased credit-impaired loans as a result of the branch acquisition. The following table presents information regard the noncredit-impaired loans acquired (in thousands):

Outstanding balance	$	119,242
Less: fair value adjustment	(1,763		)
Fair value of acquired noncredit-impaired loans	$	117,479

Acquired Deposits

The fair values of non-time deposits approximated their carrying value at the acquisition date.  For time deposits, the fair values were estimated based on discounted cash flows, using interest rates that are currently being offered compared to the contractual interest rates.   Based on this analysis, management recorded a premium on time deposits acquired of $0.1 million, which is being amortized over 3 years.

Core Deposit Intangible

The Company believes that the customer relationships with the deposits acquired have an intangible value.  In connection with this branch acquisition, the Company recorded a core deposit intangible asset of $1.4 million. The core deposit intangible asset represents the value that the acquiree had with their deposit customers.  The fair value was estimated based on a discounted cash flow methodology that considered type of deposit, deposit retention and the cost of the deposit base.   The core deposit intangible is being amortized over 10 years.

Goodwill

The Company recorded approximately $7.9 million in goodwill as a result of this acquisition. Under GAAP, management has up to twelve months following the date of the acquisition to finalize the fair values of acquired assets and liabilities.  The measurement period ends as soon as the Company receives information it was seeking about facts and circumstances that existed as of the acquisition date or learns more information is not obtainable.  Any subsequent adjustments to the fair value of the acquired assets and liabilities, intangible assets or other purchase accounting adjustments will result in adjustments to the goodwill recorded.  The measurement period is limited to one year from the acquisition date.  The goodwill recorded in conjunction with the branch acquisition is not expected to be deductible for tax purposes.

Merger Related Costs

During the year ended December 31, 2015, the Company incurred $0.6 million of merger-related costs in connection with the AFB branch acquisition.

During the year ended December 31, 2013, the Company incurred $5.5 million of merger-related costs in connection with the Community acquisition. These costs were primarily for severance ($2.5 million), professional fees ($1.4 million) and data processing costs ($1.1 million).

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NOTE THREE – RESTRICTIONS ON CASH AND DUE FROM BANKS

City National is required to maintain an average reserve balance with the Federal Reserve Bank of Richmond to compensate for services provided by the Federal Reserve and to meet statutory required reserves for demand deposits. The average amount of the reserve balance for the year ended December 31, 2015 was approximately $18.5 million.

NOTE FOUR –INVESTMENTS

The aggregate carrying and approximate market values of securities follow (in thousands).  Fair values are based on quoted market prices, where available.  If quoted market prices are not available, fair values are based on quoted market prices of comparable financial instruments.

	December 31, 2015								December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Securities available-for-sale:
U.S. Treasuries and U.S.
government agencies	$	5	$	—	$	—	$	5	$	1,816	$	11	$	—	$	1,827
Obligations of states and
political subdivisions	49,725		979		7		50,697		41,382		722		8		42,096
Mortgage-backed securities:
U.S. government agencies	287,933		2,285		2,021		288,197		185,831		3,470		1,973		187,328
Private label	1,222		9		—		1,231		1,700		8		4		1,704
Trust preferred
securities	6,550		463		1,155		5,858		9,763		425		1,152		9,036
Corporate securities	18,793		221		321		18,693		7,806		204		693		7,317
Total Debt Securities	364,228		3,957		3,504		364,681		248,298		4,840		3,830		249,308
Marketable equity  securities	2,131		1,142		—		3,273		2,131		1,082		—		3,213
Investment funds	1,525		—		13		1,512		1,525		—		3		1,522
Total Securities
Available-for-Sale	$	367,884	$	5,099	$	3,517	$	369,466	$	251,954	$	5,922	$	3,833	$	254,043

	December 31, 2015								December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Securities held-to-maturity
U.S. government agencies	$	84,937	$	1,949	$	76	$	86,810	$	86,742	$	2,733	$	—	$	89,475
Trust preferred securities	4,000		—		—		4,000		4,044		672		—		4,716
Total Securities
Held-to-Maturity	$	88,937	$	1,949	$	76	$	90,810	$	90,786	$	3,405	$	—	$	94,191
Other investment securities:
Non-marketable equity securities	$	12,915	$	—	$	—	$	12,915	$	9,857	$	—	$	—	$	9,857
Total Other Investment
Securities	$	12,915	$	—	$	—	$	12,915	$	9,857	$	—	$	—	$	9,857

Marketable equity securities consist of investments made by the Company in equity positions of various community banks. Included within this portfolio are ownership positions in the following community bank holding companies: First National Corporation (FXNC) (4%) and Eagle Financial Services, Inc. (EFSI) (1.5%). Securities with limited marketability, such as stock in the Federal Reserve Bank ("FRB") or the Federal Home Loan Bank ("FHLB"), are carried at cost and are reported as non-marketable equity securities in the table above.

At December 31, 2015 and 2014, there were no securities of any non-governmental issuer whose aggregate carrying value or estimated fair value exceeded 10% of shareholders' equity.

Certain investment securities owned by the Company were in an unrealized loss position (i.e., amortized cost basis exceeded the estimated fair value of the securities) as of December 31, 2015 and 2014.  The following table shows the gross unrealized losses and fair value of the Company’s investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):

	December 31, 2015
	Less Than Twelve Months				Twelve Months or Greater				Total
	Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss
Securities available-for-sale:
Obligations of states and political subdivisions	$	2,406	$	5	$	128	$	2	$	2,534	$	7
Mortgage-backed securities:
U.S. Government agencies	129,612		688		34,044		1,333		163,656		2,021
Private label	—		—		—		—		—		—
Trust preferred securities	—		—		4,769		1,155		4,769		1,155
Corporate securities	10,856		174		2,231		147		13,087		321
Investment funds	—		—		1,488		13		1,488		13
Total	$	142,874	$	867	$	42,660	$	2,650	$	185,534	$	3,517

	December 31, 2014
	Less Than Twelve Months				Twelve Months or Greater				Total
	Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss
Securities available-for-sale:
Obligations of states and political subdivisions	$	1,559	$	3	$	125	$	5	$	1,684	$	8
Mortgage-backed securities:
U.S. Government agencies	—		—		60,122		1,973		60,122		1,973
Private label	1,277		4		—		—		1,277		4
Trust preferred securities	—		—		4,760		1,152		4,760		1,152
Corporate securities	—		—		4,049		693		4,049		693
Investment funds	—		—		1,496		3		1,496		3
Total	$	2,836	$	7	$	70,552	$	3,826	$	73,388	$	3,833

During the years ended December 31, 2015, 2014, and 2013 the Company recorded no credit-related net investment impairment losses. The charges deemed to be other-than-temporary were related to pooled bank trust preferred securities and were based on the Company’s quarterly reviews of its investment securities for indications of losses considered to be other-than-temporary.

The following table presents a progression of the credit loss component of OTTI on debt and equity securities recognized in earnings during the years ended December 31, 2015 and 2014 (in thousands).  The credit loss component represents the difference between the present value of expected future cash flows and the amortized cost basis of the security.  The credit component of OTTI recognized in earnings during a period is presented in two parts based upon whether the credit impairment in the current period is the first time the security was credit impaired (initial credit impairment) or if there is additional credit impairment on a security that was credit impaired in previous periods.

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	Debt Securities			Equity Securities			Total
Balance at January 1, 2014	$	20,186		$	4,698		$	24,884
Additions:
Additional credit impairment	—			—			—
Deductions:
Called or Sold	(3,600		)	(3,114		)	(6,714		)
Balance at December 31, 2014	16,586			1,584			18,170
Additions:
Additional credit impairment	—			—			—
Deductions:
Called or Sold	—			—			—
Balance at December 31, 2015	$	16,586		$	1,584		$	18,170

Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other-than-temporary would be reflected in earnings as realized losses.  In estimating other-than-temporary impairment losses, management considers, among other things (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition, capital strength, and near-term (12 months) prospects of the issuer, including any specific events which may influence the operations of the issuer such as changes in technology that may impair the earnings potential of the investment or the discontinuance of a segment of the business that may affect the future earnings potential; (iii) the historical volatility in the market value of the investment and/or the liquidity or illiquidity of the investment; (iv) adverse conditions specifically related to the security, an industry, or a geographic area; or (v) the intent to sell the investment security and if it’s more likely than not that the Company will not have to sell the security before recovery of its cost basis.  In addition, management also employs a continuous monitoring process in regards to its marketable equity securities, specifically its portfolio of regional community bank holdings.  Although the regional community bank stocks that are owned by the Company are publicly traded, the trading activity for these stocks is minimal, with trading volumes of less than 0.2% of each respective company being traded on a daily basis.  As part of management’s review process for these securities, management reviews the financial condition of each respective regional community bank for any indications of financial weakness.

Management has the ability and intent to hold the securities classified as held-to-maturity until they mature, at which time the Company expects to receive full value for the securities.  Furthermore, as of December 31, 2015, management does not intend to sell an impaired security and it is not more than likely that it will be required to sell the security before the recovery of its amortized cost basis.  The unrealized losses on debt securities are primarily the result of interest rate changes, credit spread fluctuations on agency-issued mortgage related securities, general financial market uncertainty and unprecedented market volatility.  These conditions will not prohibit the Company from receiving its contractual principal and interest payments on its debt securities.  The fair value is expected to recover as the securities approach their maturity date or repricing date.   As of December 31, 2015, management believes the unrealized losses detailed in the table above are temporary and no additional impairment loss has been recognized in the Company’s consolidated income statement.  Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss will be recognized in net income in the period the other-than-temporary impairment is identified, while any noncredit loss will be recognized in other comprehensive income.

The amortized cost and estimated fair value of debt securities at December 31, 2015, by contractual maturity, are shown in the following table (in thousands).  Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.  Mortgage-backed securities have been allocated to their respective maturity groupings based on their contractual maturity.

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	Cost		Estimated Fair Value
Securities Available-for-Sale
Due in one year or less	$	2,716	$	2,740
Due after one year through five years	24,037		16,267
Due after five years through ten years	33,285		42,038
Due after ten years	304,190		303,636
	$	364,228	$	364,681
Securities Held-to-Maturity
Due in one year or less	$	—	$	—
Due after one year through five years	—		—
Due after five years through ten years	—		—
Due after ten years	88,937		90,810
	$	88,937	$	90,810

Gross gains and gross losses realized by the Company from investment security transactions are summarized in the table below (in thousands):

	For the year ended December 31,
	2015			2014			2013
Gross realized gains	$	2,142		$	1,256		$	764
Gross realized losses	(12		)	(100		)	—
Investment security gains (losses)	$	2,130		$	1,156		$	764

The carrying value of securities pledged to secure public deposits and for other purposes as required or permitted by law approximated $291 million and $273 million at December 31, 2015 and 2014, respectively.

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NOTE FIVE –LOANS

The following summarizes the Company’s major classifications for loans (in thousands):

	December 31, 2015			December 31, 2014
Residential real estate	$	1,383,133		$	1,294,576
Home equity	147,036			145,604
Commercial and industrial	165,887			140,548
Commercial real estate	1,127,827			1,028,831
Consumer	36,083			39,705
DDA overdrafts	3,361			2,802
Gross loans	2,863,327			2,652,066
Allowance for loan losses	(20,044		)	(20,150		)
Net loans	$	2,843,283		$	2,631,916

Construction loans of $13.1 million and $23.0 million are included within residential real estate loans at December 31, 2015 and December 31, 2014, respectively.  Construction loans of $12.6 million and $28.7 million are included within commercial real estate loans at December 31, 2015 and December 31, 2014, respectively.  The Company’s commercial and residential real estate construction loans are primarily secured by real estate within the Company’s principal markets.  These loans were originated under the Company’s loan policy, which is focused on the risk characteristics of the loan portfolio, including construction loans.  Adequate consideration has been given to these loans in establishing the Company’s allowance for loan losses.

The following table details the loans acquired in conjunction with the Virginia Savings, Community and AFB acquisitions (in thousands):

	Virginia Savings		Community		AFB		Total
December 31, 2015
Outstanding loan balance	$	28,914	$	181,545	$	112,862	$	323,321
Credit-impaired loans:
Carrying value	1,707		12,899		—		14,606
Contractual principal and interest	1,965		16,362		—		18,327
December 31, 2014
Outstanding loan balance	$	38,345	$	219,923	$	—	$	258,268
Credit-impaired loans:
Carrying value	1,964		15,365		—		17,329
Contractual principal and interest	2,407		23,277		—		25,684

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Changes in the accretable yield and the carrying amount of the credit-impaired loans for the year December 31, 2015 is as follows (in thousands):

	Virginia Savings						Community						Total
	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
Balance at the beginning of the period	$	428		$	1,964		$	9,906		$	15,365		$	10,334		$	17,329
Accretion	(188		)	188			(2,477		)	2,477			(2,665		)	2,665
Net reclassifications to accretable from non-accretable	185			—			918			—			1,103			—
Payments received, net	—			(445		)	—			(2,924		)	—			(3,369		)
Disposals	(51		)	—			(2,081		)	(2,019		)	(2,132		)	(2,019		)
Balance at the end of period	$	374		$	1,707		$	6,266		$	12,899		$	6,640		$	14,606

Increases in expected cash flow subsequent to the acquisition are recognized first as a reduction of any previous impairment, then prospectively through adjustment of the yield on the loans or pools over its remaining life, while decreases in expected cash flows are recognized as impairment through a provision for loan loss and an increase in the allowance for purchased credit-impaired loans. 

NOTE SIX –ALLOWANCE FOR LOAN LOSSES

Management systematically monitors the loan portfolio and the appropriateness of the allowance for loan losses on a quarterly basis to provide for probable losses inherent in the portfolio.  Management assesses the risk in each loan type based on historical trends, the general economic environment of its local markets, individual loan performance and other relevant factors.

Individual credits in excess of $1 million are selected at least annually for detailed loan reviews, which are utilized by management to assess the risk in the portfolio and the appropriateness of the allowance.  Due to the nature of commercial lending, evaluation of the appropriateness of the allowance as it relates to these types of loan types is often based more upon specific credit reviews, with consideration given to the potential impairment of certain credits and historical loss rates, adjusted for economic conditions and other inherent risk factors.

The following summarizes the activity in the allowance for loan loss, by portfolio segment (in thousands).  The following also presents the balance in the allowance for loan loss disaggregated on the basis of the Company’s impairment measurement method and the related recorded investment in loans, by portfolio segment (in thousands).

	Commercial and industrial			Commercial real estate			Residential real estate			Home equity			Consumer			DDA overdrafts			Total
December 31, 2015
Allowance for loan loss
Beginning balance	$	1,582		$	8,921		$	7,208		$	1,495		$	85		$	859		$	20,150
Charge-offs	(5,051		)	(580		)	(1,144		)	(312		)	(210		)	(1,414		)	(8,711		)
Recoveries	74			366			199			—			186			792			1,617
Provision	6,113			(929		)	515			280			36			420			6,435
Provision for acquired loans with deteriorated credit quality	553			—			—			—			—			—			553
Ending balance	$	3,271		$	7,778		$	6,778		$	1,463		$	97		$	657		$	20,044
December 31, 2014
Allowance for loan loss
Beginning balance	$	1,139		$	10,775		$	6,057		$	1,672		$	77		$	855		$	20,575
Charge-offs	(323		)	(1,925		)	(1,762		)	(309		)	(188		)	(1,415		)	(5,922		)

46

Recoveries	89		113			187		—		204			850		1,443
Provision	394		(42		)	2,726		132		(8		)	569		3,771
Provision for acquired loans with deteriorated credit quality	$	283	$	—		$	—	$	—	$	—		$	—	283
Ending balance	$	1,582	$	8,921		$	7,208	$	1,495	$	85		$	859	$	20,150
As of December 31, 2015
Allowance for loan loss
Evaluated for impairment:
Individually	$	—	$	—		$	—	$	—	$	—		$	—	$	—
Collectively	3,267		6,966			6,777		1,451		97			657		19,215
Acquired with deteriorated credit quality	4		812			1		12		—			—		829
Total	$	3,271	$	7,778		$	6,778	$	1,463	$	97		$	657	$	20,044
Loans
Evaluated for impairment:
Individually	$	2,349	$	5,399		$	437	$	297	$	—		$	—	$	8,482
Collectively	163,209		1,110,307			1,382,325		145,041		35,997			3,361		2,840,240
Acquired with deteriorated credit quality	329		12,121			371		1,698		86			—		14,605
Total	$	165,887	$	1,127,827		$	1,383,133	$	147,036	$	36,083		$	3,361	$	2,863,327
As of December 31, 2014
Allowance for loan loss
Evaluated for impairment:
Individually	$	—	$	252		$	—	$	—	$	—		$	—	$	252
Collectively	1,540		7,898			7,208		1,429		85			859		19,019
Acquired with deteriorated credit quality	42		771			—		66		—			—		879
Total	$	1,582	$	8,921		$	7,208	$	1,495	$	85		$	859	$	20,150
Loans
Evaluated for impairment:
Individually	$	—	$	6,023		$	449	$	297	$	—		$	—	$	6,769
Collectively	139,862		1,009,241			1,293,748		142,743		39,572			2,802		2,627,968
Acquired with deteriorated credit quality	686		13,567			379		2,564		133			—		17,329
Total	$	140,548	$	1,028,831		$	1,294,576	$	145,604	$	39,705		$	2,802	$	2,652,066

Credit Quality Indicators

All non-commercial loans are evaluated based on payment history.  All commercial loans within the portfolio are subject to internal risk grading. The Company’s internal risk ratings for commercial loans are:  Exceptional, Good, Acceptable, Pass/Watch, Special Mention, Substandard and Doubtful.  Each internal risk rating is defined in the loan policy using the following criteria:  balance sheet yields, ratios and leverage, cash flow spread and coverage, prior history, capability of management, market position/industry, potential impact of changing economic, legal, regulatory or environmental conditions, purpose structure, collateral support, and guarantor support.  Risk grades are generally assigned by the primary lending officer and are periodically evaluated by the Company’s internal loan review process.  Based on an individual loan’s risk grade, estimated loss percentages are applied to the outstanding balance of the loan to determine the amount of probable loss.

The Company categorizes loans into risk categories based on relevant information regarding the customer’s debt service ability, capacity, overall collateral position along with other economic trends, and historical payment performance.  The risk grades for each credit are updated when the Company receives current financial information, the loan is reviewed by the

47

Company’s internal loan review/credit administration departments, or the loan becomes delinquent or impaired.  The risk grades are updated a minimum of annually for loans rated exceptional, good, acceptable, or pass/watch.  Loans rated special mention, substandard or doubtful are reviewed at least quarterly.  The Company uses the following definitions for its risk ratings:

Risk Rating	Description
Pass Ratings:
(a) Exceptional	Loans classified as exceptional are secured with liquid collateral conforming to the internal loan policy.  Loans rated within this category pose minimal risk of loss to the bank and the risk grade within this pool of loans is generally updated on an annual basis.
(b) Good	Loans classified as good have similar characteristics that include a strong balance sheet, satisfactory debt service coverage ratios, strong management and/or guarantors, and little exposure to economic cycles.  Loans within this category are generally reviewed on an annual basis.  Loans in this category generally have a low chance of loss to the bank.
(c) Acceptable	Loans classified as acceptable have acceptable liquidity levels, adequate debt service coverage ratios, experienced management, and have average exposure to economic cycles.  Loans within this category generally have a low risk of loss to the bank.
(d) Pass/watch	Loans classified as pass/watch have erratic levels of leverage and/or liquidity, cash flow is volatile and the borrower is subject to moderate economic risk.  A borrower in this category poses a low to moderate risk of loss to the bank.
Special mention	Loans classified as special mention have a potential weakness(es) that deserves management's close attention.  The potential weakness could result in deterioration of the loan repayment or the bank's credit position at some future date.  A loan rated in this category poses a moderate loss risk to the bank.
Substandard	Loans classified as substandard reflect a customer with a well defined weakness that jeopardizes the liquidation of the debt.  Loans in this category have the possibility that the bank will sustain some loss if the deficiencies are not corrected and the bank's collateral value is weakened by the financial deterioration of the borrower.
Doubtful	Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristics that make collection of the full contract amount highly improbable.  Loans rated in this category are most likely to cause the bank to have a loss due to a collateral shortfall or a negative capital position.

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The following table presents the Company's commercial loans by credit quality indicators, by class (in thousands):

	Commercial and industrial		Commercial real estate		Total
December 31, 2015
Pass	$	157,211	$	1,070,752	$	1,227,963
Special mention	4,099		20,942		25,041
Substandard	4,539		36,133		40,672
Doubtful	38		—		38
Total	$	165,887	$	1,127,827	$	1,293,714
December 31, 2014
Pass	$	128,812	$	970,585	$	1,099,397
Special mention	761		15,103		15,864
Substandard	10,575		42,691		53,266
Doubtful	400		452		852
Total	$	140,548	$	1,028,831	$	1,169,379

The following table presents the Company's non-commercial loans by payment performance, by class (in thousands):

	Performing		Non-Performing		Total
December 31, 2015
Residential real estate	$	1,382,715	$	418	$	1,383,133
Home equity	147,013		23		147,036
Consumer	36,049		34		36,083
DDA overdrafts	3,361		—		3,361
Total	$	1,569,138	$	475	$	1,569,613
December 31, 2014
Residential real estate	$	1,292,012	$	2,564	$	1,294,576
Home equity	145,506		98		145,604
Consumer	39,692		13		39,705
DDA overdrafts	2,802		—		2,802
Total	$	1,480,012	$	2,675	$	1,482,687

Aging Analysis of Accruing and Non-Accruing Loans

The following presents an aging analysis of the Company’s accruing and non-accruing loans, by class (in thousands). The purchased credit-impaired loan column represents the purchased credit-impaired loans that the Company acquired that are contractually past due; however, are still performing in accordance with the Company's initial expectations.

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	Originated Loans
	December 31, 2015
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	1,290,312	$	4,648	$	805	$	418	$	—	$	2,038	$	1,298,221
Home equity	142,697		306		65		22		—		136		143,226
Commercial and industrial	106,003		43		—		19		—		2,389		108,454
Commercial real estate	946,611		568		211		—		—		7,353		954,743
Consumer	31,894		71		2		34		—		—		32,001
DDA overdrafts	3,048		310		3		—		—		—		3,361
Total	$	2,520,565	$	5,946	$	1,086	$	493	$	—	$	11,916	$	2,540,006
	Acquired Loans
	December 31, 2015
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	83,292	$	613	$	127	$	—	$	—	$	880	$	84,912
Home equity	3,796		12		—		2		—		—		3,810
Commercial and industrial	56,979		98		—		—		—		356		57,433
Commercial real estate	168,588		194		—		—		506		3,796		173,084
Consumer	3,992		83		7		—		—		—		4,082
DDA overdrafts	—		—		—		—		—		—		—
Total	$	316,647	$	1,000	$	134	$	2	$	506	$	5,032	$	323,321
	Total Loans
	December 31, 2015
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	1,373,604	$	5,261	$	932	$	418	$	—	$	2,918	$	1,383,133
Home equity	146,493		318		65		24		—		136		147,036
Commercial and industrial	162,982		141		—		19		—		2,745		165,887
Commercial real estate	1,115,199		762		211		—		506		11,149		1,127,827
Consumer	35,886		154		9		34		—		—		36,083
DDA overdrafts	3,048		310		3		—		—		—		3,361
Total	$	2,837,212	$	6,946	$	1,220	$	495	$	506	$	16,948	$	2,863,327

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	Originated Loans
	December 31, 2014
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	1,200,177	$	4,235	$	758	$	169	$	—	$	2,259	$	1,207,598
Home equity	142,624		561		155		30		—		68		143,438
Commercial and industrial	128,857		100		—		210		—		78		129,245
Commercial real estate	869,530		479		—		—		—		7,330		877,339
Consumer	33,178		119		78		1		—		—		33,376
DDA overdrafts	2,483		317		2		—		—		—		2,802
Total	$	2,376,849	$	5,811	$	993	$	410	$	—	$	9,735	$	2,393,798
	Acquired Loans
	December 31, 2014
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	86,129	$	714	$	—	$	—	$	—	$	135	$	86,978
Home equity	2,164		2		—		—		—		—		2,166
Commercial and industrial	10,123		143		—		—		—		1,037		11,303
Commercial real estate	144,721		892		210		—		1,270		4,399		151,492
Consumer	6,108		172		36		13		—		—		6,329
DDA overdrafts	—		—		—		—		—		—		—
Total	$	249,245	$	1,923	$	246	$	13	$	1,270	$	5,571	$	258,268
	Total Loans
	December 31, 2014
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	1,286,306	$	4,949	$	758	$	169	$	—	$	2,394	$	1,294,576
Home equity	144,788		563		155		30		—		68		145,604
Commercial and industrial	138,980		243		—		210		—		1,115		140,548
Commercial real estate	1,014,251		1,371		210		—		1,270		11,729		1,028,831
Consumer	39,286		291		114		14		—		—		39,705
DDA overdrafts	2,483		317		2		—		—		—		2,802
Total	$	2,626,094	$	7,734	$	1,239	$	423	$	1,270	$	15,306	$	2,652,066

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The following presents the Company’s impaired loans, by class (in thousands):

	December 31, 2015						December 31, 2014
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
With no related allowance recorded:
Residential real estate	$	437	$	437	$	—	$	449	$	449	$	—
Home equity	297		297		—		297		297		—
Commercial and industrial	2,349		7,547		—		—		—		—
Commercial real estate	5,399		8,768		—		4,631		4,631		—
Consumer	—		—		—		—		—		—
DDA overdrafts	—		—		—		—		—		—
Total	$	8,482	$	17,049	$	—	$	5,377	$	5,377	$	—
With an allowance recorded
Residential real estate	$	—	$	—	$	—	$	—	$	—	$	—
Home equity	—		—		—		—		—		—
Commercial and industrial	—		—		—		—		—		—
Commercial real estate	—		—		—		1,392		1,392		252
Consumer	—		—		—		—		—		—
DDA overdrafts	—		—		—		—		—		—
Total	$	—	$	—	$	—	$	1,392	$	1,392	$	252

The following table presents information related to the average recorded investment and interest income recognized on the Company’s impaired loans, by class (in thousands):

	For the year ended
	December 31, 2015				December 31, 2014
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
With no related allowance recorded:
Residential real estate	$	441	$	—	$	452	$	—
Home equity	296		—		297		—
Commercial and industrial	2,913		—		—		—
Commercial real estate	4,869		4		6,657		17
Consumer	—		—		—		—
DDA overdrafts	—		—		—		—
Total	$	8,519	$	4	$	7,406	$	17
With an allowance recorded
Residential real estate	$	—	$	—	$	—	$	—
Home equity	—		—		—		—
Commercial and industrial	—		—		—		—
Commercial real estate	1,012		—		1,725		128
Consumer	—		—		—		—
DDA overdrafts	—		—		—		—
Total	$	1,012	$	—	$	1,725	$	128

If the Company's non-accrual and impaired loans had been current in accordance with their original terms, approximately $0.8 million, $0.5 million and $0.6 million of interest income would have been recognized during the years ended December 31, 2015, 2014 and 2013, respectively.  There were no commitments to provide additional funds on non-accrual, impaired or other potential problem loans at December 31, 2015.

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Loan Modifications

The Company’s policy on loan modifications typically does not allow for modifications that would be considered a concession from the Company.  However, when there is a modification, the Company evaluates each modification to determine if the modification constitutes a troubled debt restructuring (“TDR”) in accordance with ASU 2011-2, whereby a modification of a loan would be considered a TDR when both of the following conditions are met: (1) a borrower is experiencing financial difficulty and (2) the modification constitutes a concession.  When determining whether the borrower is experiencing financial difficulties, the Company reviews whether the debtor is currently in payment default on any of its debt or whether it is probable that the debtor would be in payment default in the foreseeable future without the modification.  Other indicators of financial difficulty include whether the debtor has declared or is in the process of declaring bankruptcy, the debtor’s ability to continue as a going concern, or the debtor’s projected cash flow to service its debt (including principal and interest) in accordance with the contractual terms for the foreseeable future, without a modification.

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.  The filing of bankruptcy is deemed to be evidence that the borrower is in financial difficulty and the discharge of the debt by the bankruptcy court is deemed to be a concession granted to the borrower.

The following tables set forth the Company’s TDRs (in thousands):

	December 31, 2015						December 31, 2014
			Non-						Non-
	Accruing		Accruing		Total		Accruing		Accruing		Total
Commercial and industrial	$	58	$	—	$	58	$	73	$	—	$	73
Commercial real estate	1,746		—		1,746		2,263		—		2,263
Residential real estate	17,796		191		17,987		17,946		545		18,491
Home equity	2,659		34		2,693		2,673		15		2,688
Consumer	—		—		—		—		—		—
	$	22,259	$	225	$	22,484	$	22,955	$	560	$	23,515

	New TDRs					New TDRs
	For the year ended					For the year ended
	December 31, 2015					December 31, 2014
		Pre		Post			Pre		Post
		Modification		Modification			Modification		Modification
		Outstanding		Outstanding			Outstanding		Outstanding
	Number of	Recorded		Recorded		Number of	Recorded		Recorded
	Contracts	Investment		Investment		Contracts	Investment		Investment
Commercial and industrial	—	$	—	$	—	—	$	—	$	—
Commercial real estate	—	—		—		1	428		428
Residential real estate	38	2,969		2,969		35	2,381		2,381
Home equity	13	361		361		10	211		211
Consumer	—	—		—		—	—		—
	51	$	3,330	$	3,330	46	$	3,020	$	3,020

NOTE SEVEN – PREVIOUSLY SECURITIZED LOANS

Between 1997 and 1999, the Company completed six securitization transactions involving approximately $760 million in 125% of fixed rate, junior-lien underlying mortgages.  The Company retained a financial interest in each of the securitizations until 2004.  Principal amounts owed to investors were evidenced by securities (“Notes”).  During 2003 and 2004, the Company exercised its early redemption options on each of those securitizations.  Once the Notes were redeemed, the Company became the beneficial owner of the mortgage loans and recorded the loans as assets of the Company within the loan portfolio.

As the Company redeemed the outstanding Notes, no gain or loss was recognized in the Company’s financial statements and the remaining mortgage loans were recorded in the Company’s loan portfolio as “previously securitized loans,” at the lower of carrying value or fair value.  Because the carrying value of the mortgage loans incorporated assumptions for expected

53

prepayment and default rates, the carrying value of the loans was generally less than the actual outstanding contractual balance of the loans.  As of December 31, 2015 and 2014, there was no carrying value remaining on these loans; while the actual contractual balance of these loans was $3.9 million and $4.9 million, respectively.  During the years ended December 31, 2015, 2014 and 2013, the Company recognized $1.8 million, $2.2 million and $2.5 million, respectively, of interest income from its previously securitized loans.

NOTE EIGHT – PREMISES AND EQUIPMENT

A summary of premises and equipment and related accumulated depreciation is summarized as follows (in thousands):

	Estimated Useful Life	2015			2014
Land		$	31,496		$	31,217
Buildings and improvements	10 to 30 yrs.	87,875			85,403
Equipment	3 to 7 yrs.	39,159			37,051
		158,530			153,671
Less: accumulated depreciation		(81,259		)	(75,683		)
		$	77,271		$	77,988

NOTE NINE – GOODWILL AND OTHER INTANGIBLE ASSETS

The Company completed its annual assessment of the carrying value of goodwill during 2015 and concluded that its carrying value was not impaired. The following table presents a roll forward of the Company's goodwill activity (in thousands):

	2015			2014
Beginning balance	$	71,401		$	71,401
Goodwill reduction in conjunction with sale of CityInsurance	(3,020		)	—
Goodwill acquired in conjunction with the acquisition of AFB	7,875			—
Ending balance	$	76,256		$	71,401

The Company believes that the customer relationships with the deposits acquired have an intangible value. In connection with acquisitions, the Company recorded a core deposit intangible, which represented the value that the acquiree had with their deposit customers. The fair value was estimated based on a discounted cash flow methodology that considered the type of deposit, estimated deposit retention, the cost of the deposit base and an alternate cost of funds. The following tables present the details of the Company's core deposit intangibles (in thousands):

	2015			2014
Gross carrying amount	$	9,802		$	8,387
Accumulated amortization	(6,266		)	(5,590		)
	$	3,536		$	2,797
Beginning balance	$	2,797		$	3,741
Core deposit intangible acquired in conjunction with the acquisition of AFB	1,415			—
Amortization expense	(676		)	(944		)
Ending balance	$	3,536		$	2,797

The core deposit intangible amortization expense for the year ended December 31, 2013 was $1.0 million. The core deposit intangibles are being amortized over ten years. The estimated amortization expense for core deposit intangible assets for each of the next five years is as follows (in thousands):

2016	$	602
2017	545
2018	496
2019	454
2020	416
Thereafter	1,023
	$	3,536

NOTE TEN – SCHEDULED MATURITIES OF TIME DEPOSITS

Scheduled maturities of the Company's time deposits outstanding at December 31, 2015 are summarized as follows (in thousands):

2016	$	437,542
2017	213,288
2018	192,576
2019	127,682
2020	46,452
Over five years	16
	$	1,017,556

Scheduled maturities of Company's time deposits that meet or exceed the FDIC insurance limit of $250,000 are summarized as follows (in thousands):

	2015		2014
Within one year	$	35,160	$	34,544
Over one through two years	16,491		16,318
Over two through three years	19,032		6,014
Over three through four years	10,907		19,808
Over four through five years	4,709		6,538
Over five years	—		—
	$	86,299	$	83,222

NOTE ELEVEN – SHORT-TERM DEBT

A summary of the Company's short-term borrowings are as follows (dollars in thousands):

	2015			2014			2013
Balance at end of year:
Securities sold under agreements to repurchase	$	141,869		$	134,931		$	137,798
Federal Home Loan Bank advances	13,000			—			—
Avg. outstanding during the year:
Securities sold under agreements to repurchase	$	143,847		$	133,769		$	127,616
Federal Home Loan Bank advances	1,352			—			63
Max. outstanding at any month end:
Securities sold under agreements to repurchase	$	166,507		$	151,637		$	150,943
Federal Home Loan Bank advances	13,000			—			—
Weighted-average interest rate:
During the year:
Securities sold under agreements to repurchase	0.22		%	0.26		%	0.25		%
Federal Home Loan Bank advances	0.53		%	—			0.31		%
End of the year:
Securities sold under agreements to repurchase	0.20		%	0.26		%	0.25		%
Federal Home Loan Bank advances	0.51		%	—			0.31		%

Through City National, the Company has purchased 47,277 shares of Federal Home Loan Bank (“FHLB”) stock at par value as of December 31, 2015. Such purchases are required based on City National’s maximum borrowing capacity with the FHLB.  Additionally, FHLB stock entitles the Company to dividends declared by the FHLB and provides an additional source of short-term and long-term funding, in the form of collateralized advances. Financing obtained from the FHLB is based, in part, on the amount of qualifying collateral available, specifically 1-4 family residential mortgages, other residential mortgages, and commercial real estate and other non-residential mortgage loans. Collateral pledged to the FHLB included approximately $1.7 billion at both December 31, 2015 and 2014 in investment securities and one-to-four-family residential property loans.  In addition to the short-term financing discussed above and long-term financing (see Note Twelve), at December 31, 2015 and 2014, City National had an additional $1.6 billion and $1.5 billion, respectively, available from unused portions of lines of credit with the FHLB and other financial institutions.

56

NOTE TWELVE – LONG-TERM DEBT

The components of the Company's long-term debt are summarized below (dollars in thousands):

	2015		2014
Junior subordinated debentures owed to City Holding Capital Trust III, due 2038, interest at a rate of 4.01% and 3.74%, respectively	$	16,495	$	16,495

The Company formed a statutory business trust, City Holding Capital Trust III (“Capital Trust III”), under the laws of Delaware. Capital Trust III was created for the exclusive purpose of (i) issuing trust-preferred capital securities (“Capital Securities”), which represent preferred undivided beneficial interests in the assets of the trust, (ii) using the proceeds from the sale of the Capital Securities to acquire junior subordinated debentures (“Debentures”) issued by the Company, and (iii) engaging in only those activities necessary or incidental thereto. The trust is considered a variable interest entity for which the Company is not the primary beneficiary. Accordingly, the accounts of the trusts are not included in the Company’s consolidated financial statements.

Distributions on the Debentures are cumulative and will be payable quarterly at an interest rate of 3.50% over the three month LIBOR rate, reset quarterly. Interest payments are due in March, June, September and December. The Debentures are redeemable prior to maturity at the option of the Company (i) in whole or at any time or in part from time-to-time, or (ii) in whole, but not in part, at any time within 90 days following the occurrence and during the continuation of certain pre-defined events.

Payments of distributions on the Capital Securities and payments on redemption of the Capital Securities are guaranteed by the Company. The Company also entered into an agreement as to expenses and liabilities with the trust pursuant to which it agreed, on a subordinated basis, to pay any cost, expenses or liabilities of the trust other than those arising under the trust preferred securities. The obligations of the Company under the junior subordinated debentures, the related indentures, the trust agreement establishing the trust, the guarantees and the agreements as to expenses and liabilities, in the aggregate, constitute a full and unconditional guarantee by the Company of the trust’s obligations under the trust preferred securities. The Capital Securities issued by the statutory business trusts qualify as Tier 1 capital for the Company under current Federal Reserve Board guidelines.

NOTE THIRTEEN – DERIVATIVE INSTRUMENTS

As of December 31, 2015 and 2014, the Company has derivative financial instruments not included in hedge relationships. These derivatives consist of interest rate swaps used for interest rate management purposes and derivatives executed with commercial banking customers to facilitate their interest rate management strategies. For the majority of these instruments the Company acts as an intermediary for its customers. Changes in the fair value of the underlying derivative contracts for the most part offset each other and do not significantly impact the Company's results of operations.

The Company also has an interest rate swap that serves as a fair value hedge for changes in long term fixed interest rates related to commercial real estate loans. Hedge ineffectiveness is assessed quarterly and any ineffectiveness is recorded as non-interest expense. For the year ended December 31, 2015 hedge ineffectiveness was less than $0.1 million.

57

The following table summarizes the notional and fair value of these derivative instruments (in thousands):

	December 31, 2015				December 31, 2014
	Notional Amount		Fair Value		Notional Amount		Fair Value
Non-hedging interest rate derivatives:
Other Assets	$	334,204	$	10,811	$	179,958	$	10,253
Other Liabilities	342,204		10,872		179,958		10,253
Derivatives designated as hedges of fair value:
Other Liabilities	5,475		61		5,475		24

The following table summarizes the change in fair value of these derivative instruments (in thousands): 

	Year Ended December 31,
	2015			2014			2013
Change in Fair Value Non-Hedging Interest Rate Derivatives:
Other income - derivative asset	$	1,030		$	6,811		$	(10,148	)
Other income - derivative liability	(1,190		)	(6,811		)	10,148
Change in Fair Value Hedging Interest Rate Derivatives:
Hedged item - derivative asset	$	25		—			—
Other income - derivative liability	12			—			—

Certain financial instruments, including derivatives, may be eligible for offset in the consolidated balance sheet and/or subject to master netting arrangements. The Company's derivative transactions with financial institution counterparties are generally executed under International Swaps and Derivative Association ("ISDA") master agreements which include "right of setoff" provisions. In such cases there is generally a legally enforceable right to offset recognized amounts and there may be an intention to settle such amounts on a net basis. Nonetheless, the Company does not generally offset financial instruments for financial reporting purposes. Information about financial instruments that are eligible for offset in the consolidated balance sheet as of December 31, 2015 is presented in the following tables (in thousands):

Gross Amounts

Not Offset in the Statement

of Financial Position

Total

of Gross

Amounts

Not Offset in

the Statement

of Financial

Position

Netting

Including

Gross

Net Amounts

Adjustment

Applicable

Amounts

of Assets

per

Netting

Gross

Offset in the

presented in

Applicable

Agreement

Amounts of

Statement of

the Statement

Master

Fair Value

and Fair

Recognized

Financial

of Financial

Netting

of Financial

Value of

Description

Assets

Position

Position

Arrangements

Collateral

Collateral

Net Amount

(a)

(b)

(c)=(a)-(b)

(d)

(c)-(d)

Non-hedging derivative assets:

Interest rate swap agreements

$

10,811

$

—

$

10,811

$

—

$

10,811

$

10,811

$

—

Gross Amounts

Not Offset in the Statement

of Financial Position

Total

of Gross

Amounts

Not Offset in

the Statement

of Financial

Position

Netting

Including

Gross

Net Amounts

Adjustment

Applicable

Amounts

of Liabilities

per

Netting

Gross

Offset in the

presented in

Applicable

Agreement

Amounts of

Statement of

the Statement

Master

Fair Value

and Fair

Recognized

Financial

of Financial

Netting

of Financial

Value of

Description

Liabilities

Position

Position

Arrangements

Collateral

Collateral

Net Amount

(a)

(b)

(c)=(a)-(b)

(d)

(c)-(d)*

Non-hedging derivative liabilities:

Interest rate swap agreements

$

10,872

$

—

$

10,872

$

—

$

17,371

$

17,371

$

—

Hedging derivative liabilities:

Interest rate swap agreements

$

61

$

—

$

61

$

—

$

97

$

97

$

—

* For instances where the fair value of financial collateral meets or exceeds the amounts presented in the Statement of Financial Position, a value of zero is displayed to represent full collateraliztion.

NOTE FOURTEEN – INCOME TAXES

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):

	2015		2014
Deferred tax assets:
Previously securitized loans	$	4,337	$	4,703
Allowance for loan losses	7,412		7,413
Deferred compensation payable	4,058		3,966
Underfunded pension liability	2,792		3,113
Accrued expenses	1,789		2,451
Impaired assets	797		1,172
Impaired securities losses	6,719		8,377
Intangible assets	2,194		4,946
Other	3,964		3,292
Total Deferred Tax Assets	34,062		39,433
Deferred tax liabilities:
Unrealized securities gains	585		741
Other	3,503		1,926
Total Deferred Tax Liabilities	4,088		2,667
Net Deferred Tax Assets	$	29,974	$	36,766

No valuation allowance for deferred tax assets was recorded at December 31, 2015 and 2014 as the Company believes it is more likely than not that all of the deferred tax assets will be realized because they were supported by recoverable taxes paid in prior years.

Significant components of the provision for income taxes are as follows (in thousands): 

	2015		2014			2013
Current:
Federal	$	20,830	$	20,629		$	18,808
State	957		(943		)	1,781
Total current tax expense	21,787		19,686			20,589
Total deferred tax expense	6,627		4,585			4,686
Income tax expense	$	28,414	$	24,271		$	25,275

     A reconciliation of the significant differences between the federal statutory income tax rate and the Company’s effective income tax rate is as follows (in thousands):

	2015			2014			2013
Computed federal taxes at statutory rate	$	28,879		$	27,031		$	25,722
State income taxes, net of federal tax benefit	887			(482		)	1,982
Tax effects of:
Tax-exempt interest income	(498		)	(500		)	(616		)
Bank-owned life insurance	(1,181		)	(1,074		)	(1,187		)
Tax reserve adjustment	—			—			24
Other items, net	327			(704		)	(650		)
Income tax expense	$	28,414		$	24,271		$	25,275

The entire amount of the Company’s unrecognized tax benefits if recognized, would favorably affect the Company’s effective tax rate.   The Company anticipates that it will release $0.9 million over the next 12 months.  A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows (in thousands):

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	2015			2014
Beginning balance	$	2,398		$	4,717
Additions for current year tax positions	299			486
Additions for prior year tax positions	377			—
Decreases for prior year tax positions	—			—
Decreases for settlements with tax authorities	—			—
Decreases related to lapse of applicable statute of limitation	(910		)	(2,805		)
Ending balance	$	2,164		$	2,398

Interest and penalties on income tax uncertainties are included in income tax expense.  During 2015, 2014 and 2013, the provision related to interest and penalties was $0.1 million, $0.1 million, and $0.1 million, respectively.  The balance of accrued interest and penalties at December 31, 2015 and 2014 was $0.4 million and $0.4 million, respectively.

The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and state taxing authorities for the years ended December 31, 2012 through 2014.

NOTE FIFTEEN – EMPLOYEE BENEFIT PLANS

Pursuant to the terms of the City Holding Company 2003 Incentive Plan and the City Holding Company 2013 Incentive Plan (the "2003 Plan" and "2013 Plan", respectively), the Compensation Committee of the Board of Directors, or its delegate, may, from time-to-time, grant stock options, stock appreciation rights (“SARs”), or stock awards to employees, directors and individuals who provide service to the Company (collectively, "Plan Participants").  The 2003 Plan expired in April of 2013 and the 2013 Plan was approved by the shareholders in April 2013. A maximum of 750,000 shares of the Company’s common stock may be issued under the 2013 plan upon the exercise of stock options, SARs and stock awards, subject to certain limitations.  These limitations may be adjusted in the event of a change in the number of outstanding shares of common stock by reason of a stock dividend, stock split or other similar event.  Specific terms of options and SARs awarded, including vesting periods, exercise prices (stock price at date of grant) and expiration dates are determined at the date of grant and are evidenced by agreements between the Company and the awardee.  The exercise price of the option grants equals the market price of the Company’s stock on the date of grant.  All incentive stock options and SARs will be exercisable up to 10 years from the date granted and all options and SARs are exercisable for the period specified in the individual agreement.  As of December 31, 2015, under both Plans, 438,515 stock options and 242,996 stock awards are still outstanding.

Each award from the 2003 Plan and 2013 Plan is evidenced by an award agreement that specifies the option price, the duration of the option, the number of shares to which the option pertains, and such other provisions as the Compensation Committee, or its delegate, determines. The option price for each grant is equal to the fair market value of a share of the Company’s common stock on the date of the grant. Options granted expire at such time as the Compensation Committee, or its delegate, determines at the date of the grant and in no event does the exercise period exceed a maximum of ten years. Upon a change-in-control of the Company, as defined in the 2003 Plan and 2013 Plan, all outstanding options and awards shall immediately vest.

Certain stock options and restricted stock awards have performance-based vesting requirements. These shares will vest in three separate annual installments of approximately 33.33% per installment on the third, fourth and fifth anniversaries of the grant date, subject further to performance-based vesting requirements. The performance-based vesting requirements are as follows:

* First Installment – the mean return on average assets of the Company (excluding merger and acquisition expenses and other nonrecurring items as determined by the Board of Directors of the Company) of the three years immediately prior to the vesting date is equal to or exceeds the median return on average assets over the 20 year period immediately preceding the vesting date of all FDIC insured depository institutions.

* Second Installment – the mean return on average assets of the Company (excluding merger and acquisition expenses and other nonrecurring items as determined by the Board of Directors of the Company) of the four years immediately prior to the vesting date is equal to or exceeds the median return on average assets over the 20 year period immediately preceding the vesting date of all FDIC insured depository institutions.

* Third Installment – the mean return on average assets of the Company (excluding merger and acquisition expenses and other nonrecurring items as determined by the Board of Directors of the Company) of the five years immediately

61

prior to the vesting date is equal to or exceeds the median return on average assets over the 20 year period immediately preceding the vesting date of all FDIC insured depository institutions.

Stock Options

A summary of the Company’s stock option activity and related information is presented below: 

	2015				2014				2013
	Options		Weighted-Average Exercise Price		Options		Weighted-Average Exercise Price		Options		Weighted-Average Exercise Price
Outstanding at January 1	167,554		$	36.74	173,601		$	35.26	289,544		$	34.38
Granted	12,961		46.41		13,953		44.43		15,475		37.74
Exercised	(81,500	)	36.63		(20,000	)	29.19		(126,168	)	33.57
Forfeited	(4,000	)	31.66		—		—		(5,250	)	34.56
Outstanding at December 31	95,015		38.38		167,554		36.74		173,601		35.26
Exercisable at end of year	19,750		$	34.54	89,750		$	36.73	76,832		$	37.97
Nonvested at beginning of year	77,804		36.76		96,769		33.10		105,960		33.81
Granted during the year	12,961		46.41		13,953		44.43		15,475		37.74
Vested during the year	(15,500	)	32.09		(32,918	)	29.25		(23,166	)	39.64
Forfeited during the year	—		—		—		—		(1,500	)	30.38
Nonvested at end of year	75,265		$	39.38	77,804		$	36.76	96,769		$	33.10

Additional information regarding the Company's stock options outstanding and exercisable at December 31, 2015, is provided in the following table:

Ranges of Exercise Prices	No. of Options Outstanding	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (Months)	Aggregate Intrinsic Value (in thousands)		No. of Options Currently Exercisable	Weighted-Average Exercise Price of Options Currently Exercisable		Weighted-Average Remaining Contractual Life (Months)	Aggregate Intrinsic Value of Options Currently Exercisable  (in thousands)
$ 25.00 - 29.99	1,250	$	28.15	3.3	$	22	1,250	$	28.15	3.3	$	22
30.00 - 34.99	11,500	31.38		3.7	164		11,500	31.38		3.7	164
35.00 - 39.99	48,351	36.04		6.2	464		—	—		—	—
40.00 - 44.99	20,953	43.24		6.3	50		7,000	40.88		2.3	33
45.00 - 50.00	12,961	46.61		9.2	—		—	—		—	—
	95,015				$	700	19,750				$	219

Proceeds from stock option exercises were $3.0 million in 2015, $0.6 million in 2014, and $4.2 million in 2013. Shares issued in connection with stock option exercises are issued from available treasury shares. If no treasury shares are available, new shares are issued from available authorized shares. During 2015, 2014 and 2013, all shares issued in connection with stock option exercises and restricted stock awards were issued from available treasury stock.

The total intrinsic value of stock options exercised was $0.9 million in 2015, $0.3 million in 2014 and $0.9 million in 2013.

Stock-based compensation expense related to stock options totaled $0.2 million for each of the years ended December 31, 2015, 2014 and 2013.  For the stock options that have performance-based criteria, management has evaluated those criteria and has determined that, as of December 31, 2015, the criteria were probable of being met. The total income tax benefit recognized

62

in the accompanying consolidated statements of income related to stock-based compensation $0.3 million in 2015, less than $0.1 million in 2014, and $0.3 million in 2013.  Unrecognized stock-based compensation expense related to stock options approximated $0.4 million at December 31, 2015. At such date, the weighted-average period over which this unrecognized expense was expected to be recognized was 1.3 years.

The fair value of the options is estimated at the date of grant using a Black-Scholes option-pricing model.   The following weighted average assumptions were used to estimate the fair value of options granted by the Company:

	2015		2014		2013
Risk-free interest rate	1.95	%	2.42	%	1.88	%
Expected dividend yield	3.50	%	3.60	%	3.70	%
Volatility factor	45.40	%	48.75	%	41.35	%
Expected life of option	7.0 years		8.0 years		8.0 years

Restricted Shares

The Company measures compensation expense with respect to restricted shares in an amount equal to the fair value of the common stock covered by each award on the date of grant. The restricted shares awarded become fully vested after various periods of continued employment from the respective dates of grant. The Company is entitled to an income tax deduction in an amount equal to the taxable income reported by the holders of the restricted shares when the restrictions are released and the shares are issued. Compensation is  charged to expense over the respective vesting periods.

Restricted shares are generally forfeited if officers and employees terminate prior to the lapsing of restrictions. The Company records forfeitures of restricted stock as treasury share repurchases and any compensation cost previously recognized is reversed in the period of forfeiture.  Recipients of restricted shares do not pay any cash consideration to the Company for the shares, have the right to vote all shares subject to such grant and receive all dividends with respect to such shares, whether or not the shares have vested.  Stock-based compensation expense related to restricted shares was approximately $1.2 million for the year ended December 31, 2015, $1.0 million for year ended December 31, 2014, and $0.8 million for the year ended December 31, 2013.  For the restricted shares that have performance-based criteria, management has evaluated those criteria and has determined that, as of December 31, 2015, the criteria were probable of being met. Unrecognized stock-based compensation expense related to non-vested restricted shares was $2.9 million at December 31, 2015. At December 31, 2015, this unrecognized expense is expected to be recognized over 3.1 years based on the weighted average-life of the restricted shares.

A summary of the Company’s restricted shares activity and related information is presented below:

	2015				2014				2013
	Restricted Awards		Average Market Price at Grant		Restricted Awards		Average Market Price at Grant		Restricted Awards		Average Market Price at Grant
Outstanding at January 1	163,431				142,469				116,711
Granted	26,840		$	46.45	27,162		$	39.72	35,083		$	38.07
Forfeited/Vested	(17,350	)			(6,200	)			(9,325	)
Outstanding at December 31	172,921				163,431				142,469

401(k) Plan

The Company provides retirement benefits to its employees through the City Holding Company 401(k) Plan and Trust (“the 401(k) Plan”), which is intended to be compliant with Employee Retirement Income Security Act (ERISA) section 404(c). The Company’s total expense associated with the retirement benefit plan approximated $0.7 million in 2015, $0.8 million in 2014, and $0.8 million in 2013.  The total number of shares of the Company’s common stock held by the 401(k) Plan as of December 31, 2015 and 2014 is 291,736 and 303,443, respectively.

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Defined Benefit Plans

The Company maintains two defined benefit pension plans (“the Defined Benefit Plans”), which were inherited from the Company's acquisition of the plan sponsors (Horizon Bancorp, Inc. and Community Financial Corporation). The Horizon Defined Benefit Plan was frozen in 1999 and maintains a December 31st year-end for purposes of computing its benefit obligations. The Community Defined Benefit Plan was frozen in 2012 and maintains a December 31st year-end for purposes of computing its benefit obligations.

Primarily as a result of the interest rate environment over the past several years and a revised mortality table issued in 2014, the benefit obligation exceeded the estimated fair value of plan assets as of December 31, 2015 and December 31, 2014. The Company has recorded a pension liability of $2.3 million and $6.7 million as of December 31, 2015 and 2014, included within Other Liabilities within the Consolidated Balance Sheets, and a $4.8 million and $5.3 million, net of tax, underfunded pension liability in Accumulated Other Comprehensive Income within Shareholders’ Equity at December 31, 2015 and 2014, respectively. The following table summarizes activity within the Company's Defined Benefit Plans (dollars in thousands):

	Pension Benefits
	2015			2014
Change in fair value of plan assets:
Fair value at beginning of measurement period	$	14,667		$	14,726
Actual (loss) gain on plan assets	(231		)	496
Contributions	4,399			409
Benefits paid	(1,400		)	(964		)
Fair value at end of measurement period	17,435			14,667
Change in benefit obligation:
Benefit obligation at beginning of measurement period	(21,390		)	(17,524		)
Interest cost	(813		)	(836		)
Actuarial gain (loss)	1,103			(3,994		)
Benefits paid	1,400			964
Benefit obligation at end of measurement period	(19,700		)	(21,390		)
Funded status	$	(2,265	)	$	(6,723	)
Weighted-average assumptions for balance sheet liability at end of year:
Discount rate	4.26		%	3.93		%
Expected long-term rate of return	5.75		%	6.92		%
Weighted-average assumptions for benefit cost at beginning of year:
Discount rate	3.93		%	4.89		%
Expected long-term rate of return	6.92		%	7.35		%

During the year ended December 31, 2015, the Company made contributions totaling $4.4 million to the Horizon Defined Benefit Plan. Based on these payments, the Company anticipates making no contributions to the plan for the year ending December 31, 2016. Based on the funding status of the Community Defined Benefit plan, no contributions were required during the year ended December 31, 2015 and no contributions are anticipated being required for the year ending December 31, 2016.

64

The following table presents the components of the net periodic pension cost of the Company's Defined Benefit Plans (in thousands):

	2015			2014			2013
Components of net periodic benefit:
Interest cost	$	813		$	836		$	776
Expected return on plan assets	(937		)	(1,032		)	(979		)
Net amortization and deferral	960			696			1,106
Net Periodic Pension Cost	$	836		$	500		$	903

Amounts related to the Company's Defined Benefit Pension Plans recognized as a component of other comprehensive income were as follows (in thousands):

	2015			2014			2013
Net actuarial gain (loss)	$	910		$	(3,906	)	$	3,469
Deferred tax (expense) benefit	(320		)	1,436			(1,332		)
Other comprehensive income (loss), net of tax	$	590		$	(2,470	)	$	2,137

Amounts recognized as a component of accumulated other comprehensive loss as of December 31, 2015 and 2014 were as follows (in thousands):

	2015			2014
Net actuarial loss	$	7,552		$	8,463
Deferred tax benefit	(2,792		)	(3,113		)
Amounts included in accumulated other comprehensive loss, net of tax	$	4,760		$	5,350

The following table summarizes the expected benefits to be paid in each of the next five years and in the aggregate for the five years thereafter (in thousands):

Plan Year Ending December 31,	Expected Benefits to be Paid
2016	$	1,047
2017	1,144
2018	1,245
2019	1,100
2020	1,133
2021 through 2025	5,782

The major categories of assets in the Company’s Defined Benefit Plans as of year-end are presented in the following table (in thousands).  Assets are segregated by the level of the valuation inputs within the fair value hierarchy established by ASC Topic 820 utilized to measure fair value (See Note Twenty).

65

	Total		Level 1		Level 2		Level 3
2015
Cash and cash equivalents	$	1,441	$	1,441	$	—	$	—
Mutual funds	5,617		5,473		144
Investment funds	2,651		607		1,371		673
Common stocks	5,082		3,880		1,202		—
Mortgage-backed securities	288		—		288		—
Government and GSE bonds	1,313		—		1,313		—
Corporate Bonds	1,043		—		1,043		—
Total	$	17,435	$	11,401	$	5,361	$	673
2014
Cash and cash equivalents	$	959	$	959	$	—	$	—
Mutual funds	6,162		5,656		506		—
Investment funds	1,610		—		1,014		596
Common stocks	3,941		3,119		822		—
Mortgage-backed securities	53		—		53		—
Government and GSE bonds	1,171		—		1,171		—
Corporate Bonds	771		—		771		—
Total	$	14,667	$	9,734	$	4,337	$	596

Mutual funds include large value and fixed income funds.  Common stocks include investments in small to mid cap funds and large cap funds primarily located inside of the United States.  Common stocks also include funds invested in commercial real estate as well as international value funds.  Government and GSE bonds include U.S. Treasury notes with varying maturity dates.  Corporate bonds include taxable bonds issued by U.S. corporations.

Horizon Defined Benefit Plan (Investment Strategy)

The Horizon Defined Benefit Plan is administered by the West Virginia Bankers Association (“WVBA”) and all investment policies and strategies are established by the WVBA Pension Committee. The policy established by the Pension Committee is to invest assets per target allocations, as detailed in the table below. The assets are reallocated periodically to meet these target allocations. The investment policy is reviewed periodically, under the advisement of a certified investment advisor, to determine if the policy should be revised.

The overall investment return goal is to achieve a return greater than a blended mix of stated indices tailored to the same asset mix of the plan assets by 0.5%, after fees, over a rolling five years moving average basis. Allowable assets include cash equivalents, fixed income securities, equity securities, alternative investments, mutual funds, exchange-traded funds, managed separate accounts, investment partnerships and commingled funds. Prohibited investments include, but are not limited to, private placements, limited partnerships, venture capital investments, direct investment in private real estate properties and residual remics. Unless explicitly authorized by the Pension Committee, the use of leverage or speculative use of derivatives is prohibited unless as part of an alternative asset program or as means for real asset managers to hedge investment risk or replicate investment positions at a lower cost than would otherwise be created in a cash market. Managers using derivatives must have systems in place to rigorously analyze and monitor duration, liquidity and counter-party credit risk in order to minimize the risk associated with the use of derivatives.

In order to achieve a prudent level of portfolio diversification, the securities of any one company are not to exceed more than 15% of the total plan assets, and no more than 25% of total plan assets are to be invested in any one industry (other than securities of the U.S. government or agencies thereof). Additionally, no more than 30% of plan assets shall be invested in foreign securities (both equity and fixed), if any. Exchange traded index funds are allowable investments and are not subject to these restrictions.

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The expected long-term rate of return for the plan’s assets is based on the expected return of each of the categories, weighted based on the median of the target allocation for each class, noted in the table below. The target, allowable, and current allocation percentages of plan assets are as follows:

	Target Allocation 2015		Allowable- Allocation Range	Percentage of Plan Assets At December 31
				2015		2014
Equity securities	63	%	40-90%	51	%	53	%
Fixed income securities	15	%	10-40%	20	%	23	%
Cash and cash equivalents	2	%	3-10%	10	%	9	%
Alternative investments	20	%	0-25%	19	%	15	%
Total	100	%		100	%	100	%

Community Defined Benefit Plan (Investment Strategy)

The Community Defined Benefit Plan is administered by the Virginia Bankers Association ("VBA") and all investment polices are established by the Board of Directors of the VBA Benefits Corporation. The investment goal is to provide asset allocation models with varying degrees of investment return and risk consistent with each bank's funding objectives and participant demographics. The Board of Directors shall at least annually review the overall investment program, and each investment alternative, to ensure the current investment mix will achieve the goals of the Plan and participating banks.

The performance goal for the investments of the Plan is to exceed the investment benchmarks over the most recent three and five year periods while taking less risk than the market. Approved asset classes include equity securities, fixed income securities and cash equivalents.

Allocations to the equity and fixed income asset classes may vary within a range of + or - 5% of the noted Target, as detailed in the table below. The minimum and maximum allocations for each sub-asset class within the equity and fixed classes are equity to 50% and 150%, respectively, of its long-term strategy target allocation.

The expected long-term rate of return for the plan’s assets is based on the expected return of each of the categories, weighted based on the median of the target allocation for each class, noted in the table below. The target, allowable, and current allocation percentages of plan assets are as follows:

	Target Allocation 2015		Allowable- Allocation Range	Percentage of Plan Assets At December 31
				2015		2014
Equity securities	25	%	20%-30%	25	%	25	%
Fixed income securities	75	%	70%-80%	75	%	75	%
	100	%		100	%	100	%

Pentegra Defined Benefit Plan

In addition, the Company and its subsidiary participate in the Pentegra Defined Benefit Plan for Financial Institutions ("The Pentegra DB Plan"), a tax-qualified defined benefit pension plan. The Pentegra DB Plan's Employer Identification Number is 13-5645888 and the Plan Number is 333. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. There are no collective bargaining agreements in place that require contributions to the Pentegra DB Plan. The Pentegra DB Plan is a single plan under Internal Revenue Code Section 413(c) and, as a result, all of the assets stand behind all of the liabilities. Accordingly, under the Pentegra DB Plan, contributions made by a participating employer may be used to provide benefits to participants of other participating employers. The funded status as of July 1, 2015 (the latest available valuation report) was 104.86%. It is the policy of the Company to fund the normal cost of the Pentegra DB Plan on an annual basis.  Other than for normal plan expenses, no contributions were required for the years ended December 31, 2015, 2014 and 2013.  The benefits of

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the Pentegra DB Plan were frozen prior to the acquisition of Classic Bancshares in 2005, and it is the intention of the Company to fund benefit amounts when assets of the plan are sufficient.

Employment Contracts

The Company has entered into employment contracts with certain of its current executive officers. The employment contracts provide for, among other things, the payment of termination compensation in the event an executive officer either voluntarily or involuntarily terminates his employment with the Company for other than “Just Cause.” The cost of these benefits was previously accrued for each executive and is included in Other Liabilities within the Consolidated Balance Sheets. The liability was $2.0 million at both December 31, 2015 and 2014 and is fully vested, and therefore no charge to operations was incurred for the years ended December 31, 2015 and December 31, 2014.

Other Post-Retirement Benefit Plans

Certain entities previously acquired by the Company had entered into individual deferred compensation and supplemental retirement agreements with certain current and former directors and officers. The Company has assumed the liabilities associated with these agreements, the cost of which is being accrued over the period of active service from the date of the respective agreement. The cost of such agreements approximated $0.2 million during 2015, 2014, and 2013, respectively. The liability for such agreements approximated $6.5 million and $6.7 million at December 31, 2015 and December 31, 2014, respectively and is included within Other Liabilities in the accompanying Consolidated Balance Sheets.

To assist in funding the above liabilities, the acquired entities had insured the lives of certain current and former directors and officers. The Company is the current owner and beneficiary of insurance policies with a cash surrender value approximating $8.0 million and $7.8 million at December 31, 2015 and 2014, respectively, which is included in Other Assets in the accompanying Consolidated Balance Sheets.

NOTE SIXTEEN – RELATED PARTY TRANSACTIONS

City National has granted loans to certain non-executive officers and directors of the Company and its subsidiaries, and to their associates totaling $14.2 million at December 31, 2015 and $4.5 million at December 31, 2014. The loans were made in the ordinary course of business and on substantially the same terms, including interest rates and collateral, as those prevailing at the same time for comparable transactions with third-party lending arrangements.  During 2015, total principal additions were $10.8 million and total principal reductions were $1.1 million. 

NOTE SEVENTEEN – COMMITMENTS AND CONTINGENCIES

The Company is a party to certain financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers.  The Company has entered into agreements with its customers to extend credit or provide conditional commitment to provide payment on drafts presented in accordance with the terms of the underlying credit documents. The Company also provides overdraft protection to certain demand deposit customers that represent an unfunded commitment.  Overdraft protection commitments, which are included with other commitments below, are uncollateralized and are paid at the Company’s discretion.  Conditional commitments generally include standby and commercial letters of credit. Standby letters of credit represent an obligation of the Company to a designated third party contingent upon the failure of a customer of the Company to perform under the terms of the underlying contract between the customer and the third party. Commercial letters of credit are issued specifically to facilitate trade or commerce. Under the terms of a commercial letter of credit, drafts will be drawn when the underlying transaction is consummated, as intended, between the customer and a third party. The funded portion of these financial instruments is reflected in the Company’s balance sheet, while the unfunded portion of these commitments is not reflected in the balance sheet.  The table below presents a summary of the contractual obligations of the Company resulting from significant commitments (in thousands):

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	December 31, 2015		December 31, 2014
Commitments to extend credit:
Home equity lines	$	183,017	$	175,312
Commercial real estate	84,672		50,298
Other commitments	177,491		145,283
Standby letters of credit	5,086		4,592
Commercial letters of credit	2,312		1,991

Loan commitments and standby and commercial letters of credit have credit risks essentially the same as that involved in extending loans to customers and are subject to the Company’s standard credit policies. Collateral is obtained based on management’s credit assessment of the customer. Management does not anticipate any material losses as a result of these commitments.

In addition, the Company is engaged in various legal actions that it deems to be in the ordinary course of business. As these legal actions are resolved, the Company could realize positive and/or negative impact to its financial performance in the period in which these legal actions are ultimately decided. There can be no assurance that current actions will have immaterial results, either positive or negative, or that no material actions may be presented in the future.

NOTE EIGHTEEN – PREFERRED STOCK

 The Company’s Board of Directors has the authority to issue preferred stock, and to the designation, preferences, rights, dividends and all other attributes of such preferred stock, without any vote or action by the shareholders.  As of December 31, 2015, no such shares were outstanding, nor were any expected to be issued.

NOTE NINETEEN – REGULATORY REQUIREMENTS AND CAPITAL RATIOS

The principal source of income and cash for City Holding (the “Parent Company”) is dividends from City National. Dividends paid by City National to the Parent Company are subject to certain legal and regulatory limitations. Generally, any dividends in amounts that exceed the earnings retained by City National in the current year plus retained net profits for the preceding two years must be approved by regulatory authorities. Approval is also required if dividends declared would cause City National’s regulatory capital to fall below specified minimum levels.  At December 31, 2015, City National could pay dividends up to $18.2 million without prior regulatory permission.

During 2015, the Parent Company used cash obtained from the dividends received primarily to: (1) pay common dividends to shareholders, (2) remit interest payments on the Company’s junior subordinated debentures and (3) fund common stock repurchases for treasury. As of December 31, 2015, the Parent Company reported a cash balance of approximately $46.7 million.  Management believes that the Parent Company’s available cash balance, together with cash dividends from City National, is adequate to satisfy its funding and cash needs in 2016.

In July 2013, the Federal Reserve published the final rules that established a new comprehensive capital framework for banking organizations, commonly referred to as Basel III. These final rules substantially revised the risk-based capital requirements applicable to bank holding companies and depository institutions. The final rule became effective January 1, 2015 for smaller, non-complex banking organizations with full implementation by January 1, 2019.

Regulatory guidelines require the Company to maintain a minimum common equity Tier 1 ("CET 1") capital ratio of 4.5% and a total capital to risk-adjusted assets ratio of 8.0%, with at least one-half of capital consisting of tangible common stockholders’ equity and a minimum Tier 1 leverage ratio of 6.0%. Similarly, City National is also required to maintain minimum capital levels as set forth by various regulatory agencies. Under capital adequacy guidelines, City National is required to maintain minimum CET 1, total capital, Tier 1 capital, and leverage ratios of 4.5%, 8.0%, 6.0%, and 4.0%, respectively. To be classified as “well capitalized,” City National must maintain CET 1, total capital, Tier 1 capital, and leverage ratios of 6.5%, 10.0%, 8.0%, and 5.0%, respectively.

When fully phased in on January 1, 2019, the Basel III Capital Rules will require City Holding and City National to maintain (i) a minimum ratio of CET 1 to risk-weighted assets of at least 4.5%, plus a 2.5% "capital conservation buffer" (which is added to the 4.5% CET 1 ratio as that buffer is phased in, effectively resulting in a minimum ratio of CET 1 to risk-weighted

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assets of at least 7.0% upon full implementation), (ii) a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the capital conservation buffer (which is added to the 6.0% Tier 1 capital ratio as that buffer is phased in, effectively resulting in a minimum Tier 1 capital ratio of 8.5% upon full implementation), (iii) a minimum ratio of Total capital (that is, Tier 1 plus Tier 2) to risk-weighted assets of at least 8.0%, plus the capital conservation buffer (which is added to the 8.0% total capital ratio as that buffer is phased in, effectively resulting in a minimum total capital ratio of 10.5% upon full implementation) and (iv) a minimum leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to average assets (as compared to a current minimum leverage ratio of 3.0% for banking organizations that either have the highest supervisory rating or have implemented the appropriate federal regulatory authority's risk-adjusted measure for market risk).

The implementation of the capital conservation buffer will begin on January 1, 2016 at the 0.625% level and be phased in over a four-year period (increasing by that amount on each subsequent January 1, until it reaches 2.5% on January 1, 2019). The Basel III Capital Rules also provide for a “countercyclical capital buffer” that is applicable to only certain covered institutions and does not have any current applicability to City Holding Company or City National Bank.

The aforementioned capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of CET 1 capital to risk-weighted assets above the minimum but below the conservation buffer (or below the combined capital conservation buffer and countercyclical capital buffer, when the latter is applied) will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall.

The Company’s regulatory capital ratios for both City Holding and City National are illustrated in the following tables (in thousands):

December 31, 2015	Actual				Minimum Required - Basel III Phase-In Schedule				Minimum Required - Basel III Fully Phased-In (*)				Required to be Considered Well Capitalized
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
CET 1 Capital
City Holding Company	$	345,620	13.7	%	$	113,919	4.5	%	$	177,207	7.0	%	$	164,549	6.5	%
City National Bank	264,812		10.5	%	113,209		4.5	%	176,103		7.0	%	163,524		6.5	%
Tier 1 Capital
City Holding Company	361,620		14.3	%	151,891		6.0	%	215,180		8.5	%	202,522		8.0	%
City National Bank	288,752		11.5	%	150,945		6.0	%	213,839		8.5	%	201,260		8.0	%
Total Capital
City Holding Company	382,180		15.1	%	202,522		8.0	%	265,810		10.5	%	253,152		10.0	%
City National Bank	308,804		12.3	%	201,260		8.0	%	264,154		10.5	%	251,575		10.0	%
Tier 1 Leverage Ratio
City Holding Company	361,620		10.2	%	142,521		4.0	%	142,521		4.0	%	178,151		5.0	%
City National Bank	288,752		8.1	%	141,874		4.0	%	141,874		4.0	%	177,343		5.0	%
(*) Represents the minimum required capital levels as of January 1, 2019 when Basel III Capital Rules have been fully phased in.

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December 31, 2014:	Actual				Minimum Required for Capital Adequacy Purposes				Required to be Considered Well Capitalized
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
Tier 1 Capital
City Holding Company	$	333,163	13.4	%	$	99,723	4.0	%	$	149,585	6.0	%
City National Bank	294,870		11.9	%	99,037		4.0	%	148,556		6.0	%
Total Capital
City Holding Company	353,873		14.2	%	199,446		8.0	%	249,308		10.0	%
City National Bank	315,095		12.7	%	198,074		8.0	%	247,593		10.0	%
Tier 1 Leverage Ratio
City Holding Company	333,163		9.9	%	134,721		4.0	%	168,402		5.0	%
City National Bank	294,870		8.8	%	133,991		4.0	%	167,489		5.0	%

As of December 31, 2015, management believes that City Holding Company, and its banking subsidiary, City National, were “well capitalized.” City Holding is subject to regulatory capital requirements administered by the Federal Reserve, while City National is subject to regulatory capital requirements administered by the Office of the Comptroller of the Currency (“OCC”) and the Federal Deposit Insurance Corporation (“FDIC”). Regulatory agencies can initiate certain mandatory actions if either City Holding or City National fails to meet the minimum capital requirements, as shown above. As of December 31, 2015, management believes that City Holding and City National meet all capital adequacy requirements.

NOTE TWENTY –FAIR VALUE MEASUREMENTS

Fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  ASC Topic 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

Level 1: Quoted prices (unadjusted) or identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company bases fair value of assets and liabilities on quoted market prices, prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data.  If such information is not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters.  Valuation adjustments may be made to ensure that financial instruments are recorded at fair value.  These adjustments may include amounts to reflect counterparty credit quality and the Company’s creditworthiness, among other things, as well as unobservable parameters.  Any such valuation adjustments are applied consistently over time.  The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values.  While management believes the company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.  Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and therefore, estimates of fair value after the balance sheet date may differ significantly from the amount presented herein.  A more detailed description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. 

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Financial Assets and Liabilities

The Company used the following methods and significant assumptions to estimate fair value for financial assets and liabilities measured on a recurring basis.

Securities Available for Sale.  Securities available for sale are reported at fair value utilizing Level 1, Level 2, and Level 3 inputs.  The fair value of securities available for sale is determined by utilizing a market approach by obtaining quoted prices on nationally recognized securities exchanges (other than forced or distressed transactions) that occur in sufficient volume or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities.  If such measurements are unavailable, the security is classified as Level 3.  Significant judgment is required to make this determination.

The Company utilizes a third party pricing service provider to value its Level 1 and Level 2 investment securities.  Annually, the Company obtains an independent auditor’s report from its third party pricing service provider regarding its controls over investment securities.  Although no control deficiencies were noted, the report did contain caveats and disclaimers regarding the pricing information, such as the Company should review fair values for reasonableness.  On a quarterly basis, the Company selects a sample of its debt securities and reprices those securities with a third party that is independent of the primary pricing service provider to verify the reasonableness of the fair values. In addition, the Company selects a sample of securities and reviews the underlying support from the primary pricing service provider.

The Company has determined that its pooled trust preferred securities are priced using Level 3 inputs in accordance with ASC Topic 820 and guidance issued by the SEC.  The Company has determined that there are few observable transactions and market quotations available for pooled trust preferred securities and they are not reliable for purposes of determining fair value of trust preferred securities held at December 31, 2015.  Due to these circumstances, the Company has elected to utilize an income valuation approach produced by a third party pricing source.  This third party model utilizes deferral and default probabilities for the underlying issuers, estimated prepayment rates and assumes no future recoveries of any defaults or deferrals.  The Company then compares the values provided by the third party model with other external sources.  At such time as there are observable transactions or quoted prices that are associated with an orderly and active market for pooled trust preferred securities, the Company will incorporate such market values in its estimate of fair values for these securities.

Derivatives.Derivatives are reported at fair value utilizing Level 2 inputs.  The Company utilizes a market approach by obtaining dealer quotations to value its customer interest rate swaps.  The Company’s derivatives are included within its Other Assets and Other Liabilities in the accompanying consolidated balance sheets. Derivative assets are typically secured through securities with financial counterparties or cross collateralization with a borrowing customer. Derivative liabilities are typically secured through the Company pledging securities to financial counterparties or, in the case of a borrowing customer, by the right of setoff. The Company considers such factors such as the likelihood of default by itself and its counterparties, right of setoff, and remaining maturities in determining the appropriate fair value adjustments. All derivative counterparties approved by the Company's Asset and Liability Committee ("ALCO") are regularly reviewed, and appropriate business action is taken to adjust the exposure to certain counterparties, if necessary. Counterparty exposure is evaluated by netting positions that are subject to master netting agreements, as well as considering the amount of marketable collateral securing the position. This approach used to estimate impacted exposures to counterparties is also used by the Company to estimate its own credit risk in derivative liability positions. To date, no material losses have been incurred due to a counterparty's inability to pay any undercollateralized position. There was no significant change in the value of derivative assets and liabilities attributed to credit risk during the year ended December 31, 2015.

The Company may be required, from time to time, to measure certain financial assets and financial liabilities at fair value on a nonrecurring basis.  Financial assets measured at fair value on a nonrecurring basis include impaired loans reported at the fair value of the underlying collateral if repayment is expected solely from the collateral.  Collateral values are estimated using Level 2 inputs based on observable market data for real estate collateral or Level 3 inputs for non-real estate collateral.  The following table presents the Company's assets and liabilities measured at fair value (in thousands):

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	Total		Level 1		Level 2		Level 3		Total Gains (Losses)
December 31, 2015
Recurring fair value measurements
Financial Assets
U.S. Government agencies	$	5	$	—	$	5	$	—
Obligations of states and political subdivisions	50,697		—		50,697		—
Mortgage-backed securities:
U.S. Government agencies	288,197		—		288,197		—
Private label	1,231		—		1,231		—
Trust preferred securities	5,858		—		3,762		2,096
Corporate securities	18,693		—		18,693		—
Marketable equity securities	3,273		3,273		—		—
Investment funds	1,512		1,512		—		—
Derivative assets	10,811		—		10,811		—
Financial Liabilities
Derivative liabilities	10,933		—		10,933		—
Nonrecurring fair value measurements
Financial Assets
Impaired loans	$	8,482	$	—	$	—	$	8,482	$	—
Other real estate owned	6,518		—		—		6,518		(937		)
December 31, 2014
Recurring fair value measurements
Financial Assets
U.S. Government agencies	$	1,827	$	—	$	1,827	$	—
Obligations of states and political subdivisions	42,096		—		42,096		—
Mortgage-backed securities:
U.S. Government agencies	187,328		—		187,328		—
Private label	1,704		—		1,704		—
Trust preferred securities	9,036		—		7,165		1,871
Corporate securities	7,317		—		7,317		—
Marketable equity securities	3,213		3,213		—		—
Investment funds	1,522		1,522		—		—
Derivative assets	10,253		—		10,253		—
Financial Liabilities
Derivative liabilities	10,277		—		10,277		—
Nonrecurring fair value measurements
Financial Assets
Impaired loans	$	6,517	$	—	$	—	$	6,517	$	(153	)
Other real estate owned	8,179		—		—		8,179		(464		)

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The table below presents a reconcilement of the Company’s financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands): 

	December 31,
	2015		2014
Beginning balance	$	1,871	$	3,887
Impairment losses on investment securities	—		—
Included in other comprehensive income	225		(1,862		)
Dispositions	—		(154		)
Transfers into Level 3	—		—
Ending Balance	$	2,096	$	1,871

The Company utilizes a third party model to compute the present value of expected cash flows which considers the structure and term of each of the five respective pooled trust preferred securities and the financial condition of the underlying issuers.  Specifically, the third party model details interest rates, principal balances of note classes and underlying issuers, the timing and amount of interest and principal payments of the underlying issuers, and the allocation of the payments to the note classes. The current estimate of expected cash flows is based on the most recent trustee reports and any other relevant market information including announcements of interest payment deferrals or defaults of underlying trust preferred securities. For issuing banks that have defaulted, management generally assumes no recovery. For issuing banks that have deferred its interest payments, management excludes the collateral balance associated with these banks and assumes no recoveries of such collateral balance in the future. The exclusion of such issuing banks in a current deferral position is based on such bank experiencing a certain level of financial difficulty that raises doubt about its ability to satisfy its contractual debt obligation, and accordingly, the Company excludes the associated collateral balance from its estimate of expected cash flows. Other assumptions used in the estimate of expected cash flows include expected future default rates and prepayments. Specifically, the model assumes annual prepayments of 1.0% with 100% at maturity and assumes 150 basis points of additional annual defaults from banks that are currently not in default or deferral.  In addition, the model assumes no recoveries except for one trust preferred security which assumes that one of the banks currently deferring or in default will cure such positions.

The table below presents a reconcilement of the Company's financial assets and liabilities measured at fair value on a nonrecurring basis using significant unobservable inputs (Level 3), which solely relates to impaired loans that were remeasured and reported at fair value through a specific valuation allowance allocation of the allowance for loan losses based upon the fair value of the underlying collateral (in thousands).  The fair value of impaired loans is estimated using one of several methods, including collateral value, liquidation value and discounted cash flows.  The significant unobservable inputs used in the fair value measurement of collateral for collateral-dependent impaired loans primarily relate to discounts applied to the customers’ reported amount of collateral.  The amount of collateral discount depends upon the marketability of the underlying collateral.  During December 31, 2015 and 2014, collateral discounts ranged from 20% to 30%. During December 31, 2015 and 2014, the Company had no Level 2 financial assets and liabilities that were measured on a nonrecurring basis.

	Year ended December 31,
	2015			2014
Beginning balance	$	6,517		$	11,714
Loans classified as impaired during the period	2,349			—
Specific valuation allowance allocations	—			—
	2,349			—
(Additional) reduction in specific valuation allowance allocations	252			628
Paydowns, payoffs, other activity	(636		)	(5,825		)
Ending balance	$	8,482		$	6,517

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Non-Financial Assets and Liabilities

The Company has no non-financial assets or liabilities measured at fair value on a recurring basis.  Certain non-financial assets measured at fair value on a non-recurring basis include other real estate owned (“OREO”), which is measured at the lower of cost or fair value, and goodwill and other intangible assets, which are measured at fair value and evaluated at least annually for impairment. The table below presents OREO that was remeasured and reported at fair value based on significant unobservable inputs (Level 3) (in thousands):

	2015			2014
Beginning Balance	$	8,179		$	8,470
OREO remeasured at initial recognition:
Carrying value of foreclosed assets prior to remeasurement	3,732			5,746
Charge-offs recognized in the allowance for loan losses	—			—
Fair value	3,732			5,746
OREO remeasured subsequent to initial recognition:
Carrying value of foreclosed assets prior to remeasurement	3,937			1,632
Fair value	3,000			1,168
Write-downs included in other non-interest expense	(937		)	(464		)
Acquired	—			—
Disposals	(4,456		)	(5,573		)
Ending Balance	$	6,518		$	8,179

Based on the Company's annual assessment for impairment in the recorded value of goodwill and indefinite lived intangible assets, no impairment was recorded during the years ended December 31, 2015 and 2014.

ASC Topic 825“Financial Instruments” as amended, requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value.  In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques.  Those techniques are significantly affected by the assumptions used, including discount rate and estimate of future cash flows.  In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument.  ASC Topic 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements.  Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The following methods and assumptions were used in estimating fair value for financial instruments:

Cash and cash equivalents: Due to their short-term nature, the carrying amounts reported in the Consolidated Balance Sheets approximate fair value.

Securities: The fair value of securities are generally based on quoted market prices or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities.

Other securities: It is not practicable to determine the fair value of the Company's other securities, which consist of FRB and FHLB stock, due to restrictions placed on its transferability.

Net loans:  The fair value of the loan portfolio is estimated by discounting the expected future cash flows using the current interest rates at which similar loans would be made to borrowers for the same remaining maturities. Loans were first segregated by type such as commercial, real estate and consumer, and were then further segmented into fixed, adjustable and variable rate categories. Expected future cash flows were projected based on contractual cash flows, adjusted for estimated prepayments.

Accrued interest receivable: The carrying amount of accrued interest receivable approximates fair value.

75

Deposits: The fair values of demand deposits (e.g., interest and noninterest-bearing checking, regular savings, and other money market demand accounts) are, by definition, equal to their carrying values. The fair values of time deposits were estimated using discounted cash flow analyses. The discount rates used were based on rates currently offered for deposits with similar remaining maturities. The fair values of the time deposit liabilities do not take into consideration the value of the Company’s long-term relationships with depositors, which may have significant value.

Short-term debt: Securities sold under agreements to repurchase and Federal Home Loan Bank advances represent borrowings with original maturities of less than 90 days. The carrying amount of borrowings under purchase agreements approximate their fair value.

Long-term debt: The fair value of long-term borrowings is estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements and market conditions of similar debt instruments.

Commitments and letters of credit: The fair values of commitments are estimated based on fees currently charged to enter into similar agreements, taking into consideration the remaining terms of the agreements and the counterparties’ credit standing.  The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date.  The amounts of fees currently charged on commitments and letters of credit are deemed insignificant, and therefore, the estimated fair values and carrying values have not been reflected in the following table.

The following table represents the estimates of fair value of financial instruments (in thousands). This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as noninterest-bearing demand, interest-bearing demand and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity.

76

	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
December 31, 2015
Assets:
Cash and cash equivalents	$	70,113	$	70,113	$	70,113	$	—	$	—
Securities available-for-sale	369,466		369,466		4,785		362,585		2,096
Securities held-to-maturity	88,937		90,810		—		90,810		—
Other securities	12,915		12,915		—		12,915		—
Net loans	2,843,283		2,843,973		—		—		2,843,973
Accrued interest receivable	7,432		7,432		7,432		—		—
Derivative assets	10,811		10,811		—		10,811		—
Liabilities:
Deposits	3,083,975		3,085,908		2,066,419		1,019,489		—
Short-term debt	154,869		154,872		—		154,872		—
Long-term debt	16,495		16,457		—		16,457		—
Derivative liabilities	10,933		10,933		—		10,933		—
December 31, 2014
Assets:
Cash and cash equivalents	$	148,228	$	148,228	$	148,228	$	—	$	—
Securities available-for-sale	254,043		254,043		4,735		247,437		1,871
Securities held-to-maturity	90,786		94,191		—		94,191		—
Other securities	9,857		9,857		—		9,857		—
Net loans	2,631,916		2,638,911		—		—		2,638,911
Accrued interest receivable	6,826		6,826		6,826		—		—
Derivative assets	10,253		10,253		—		10,253		—
Liabilities:
Deposits	2,872,787		2,879,126		1,846,124		1,033,002		—
Short-term debt	134,931		134,934		—		134,934		—
Long-term debt	16,495		16,464		—		16,464		—
Derivative liabilities	10,277		10,277		—		10,277		—

77

NOTE TWENTY-ONE –CITY HOLDING COMPANY (PARENT COMPANY ONLY) FINANCIAL INFORMATION

Condensed Balance Sheets

The following table presents the condensed balance sheets of City Holding Company, parent company only (in thousands):

	December 31
	2015		2014
Assets
Cash	$	46,672	$	12,521
Securities available-for-sale	3,273		3,212
Investment in subsidiaries	388,201		380,348
Deferred tax assets, net	1,569		1,436
Fixed assets	8		9
Other assets	3,290		16,629
Total Assets	$	443,013	$	414,155
Liabilities
Junior subordinated debentures	$	16,495	$	16,495
Dividends payable	6,376		6,062
Accrued interest payable	30		26
Other liabilities	840		719
Total Liabilities	23,741		23,302
Total Shareholders’ Equity	419,272		390,853
Total Liabilities and Shareholders’ Equity	$	443,013	$	414,155

Junior subordinated debentures represent the Parent Company’s amounts owed to City Holding Capital Trust III.

78

Condensed Statements of Comprehensive Income

The following table presents the condensed statements of comprehensive income of City Holding Company, parent company only (in thousands):

	Year Ended December 31
	2015			2014			2013
Income
Dividends from subsidiaries	$	48,950		$	46,050		$	46,317
Investment securities gains	—			1,130			89
Other income	22			65			66
	48,972			47,245			46,472
Expenses
Interest expense	618			605			617
Other expenses	1,170			849			2,352
	1,788			1,454			2,969
Income Before Income Tax Benefit and Equity in Undistributed Net Income of Subsidiaries	47,184			45,791			43,503
Income tax benefit	(795		)	(231		)	(1,050		)
Income Before Equity in Undistributed Net Income of Subsidiaries	47,979			46,022			44,553
Equity in undistributed net income of subsidiaries	6,118			6,940			3,662
Net Income	$	54,097		$	52,962		$	48,215
Total Comprehensive Income	$	54,424		$	53,793		$	44,647

79

Condensed Statements of Cash Flows

The following table presents the condensed statements of cash flows of City Holding Company, parent company only (in thousands):

	Year Ended December 31
	2015			2014			2013
Operating Activities
Net income	$	54,097		$	52,962		$	48,215
Adjustments to reconcile net income to net cash provided by operating activities:
Realized investment securities gains	—			(1,130		)	(89		)
Amortization and accretion	—			—			5
Stock based compensation	3			199			205
Depreciation	1			1			1
Change in other assets	13,338			(16,110		)	1,656
Change in other liabilities	314			2,146			(236		)
Equity in undistributed net income	(6,118		)	(6,940		)	(3,662		)
Net Cash Provided by Operating Activities	61,635			31,128			46,095
Investing Activities
Proceeds from sales of available for sale securities	—			2,334			137
Return of capital	—			2,500			—
Acquisition of Community Financial Corporation	—			—			(12,708		)
Net Cash Used in Investing Activities	—			4,834			(12,571		)
Financing Activities
Dividends paid	(25,304		)	(24,487		)	(22,878		)
Purchases of treasury stock	(7,055		)	(27,957		)	—
Exercise of stock options	2,979			580			3,428
Exercise of warrants	1,896			—			—
Net Cash Used in Financing Activities	(27,484		)	(51,864		)	(19,450		)
Increase (decrease) in Cash and Cash Equivalents	34,151			(15,902		)	14,074
Cash and cash equivalents at beginning of year	12,521			28,423			14,349
Cash and Cash Equivalents at End of Year	$	46,672		$	12,521		$	28,423

80

NOTE TWENTY-TWO – SUMMARIZED QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

A summary of selected quarterly financial information is presented below (in thousands, except for per share data):

	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
2015
Interest income	$	32,364		$	31,720		$	30,768		$	32,222
Taxable equivalent adjustment	142			144			147			179
Interest income (FTE)	32,506			31,864			30,915			32,401
Interest expense	2,973			2,937			2,910			3,010
Net interest income	29,533			28,927			28,005			29,391
Provision for loan losses	888			2,836			451			2,813
Investment securities gains	14			2,116			—			—
Non-interest income	24,007			13,289			13,706			14,074
Non-interest expense	23,165			23,244			25,377			21,165
Income  before income tax expense	29,501			18,252			15,883			19,487
Income tax expense	11,367			6,125			5,129			5,793
Taxable equivalent adjustment	(142		)	(144		)	(147		)	(179		)
Net income available to common shareholders	$	17,992		$	11,983		$	10,607		$	13,515
Net earnings allocated to common  shareholders	$	17,783		$	11,849		$	10,487		$	13,362
Basic earnings  per common share	$	1.18		$	0.78		$	0.69		$	0.88
Diluted earnings per common share	1.17			0.78			0.69			0.88
Average common shares outstanding:
Basic	15,067			15,104			15,178			15,158
Diluted	15,149			15,127			15,198			15,175
2014
Interest income	$	33,018		$	31,828		$	32,438		$	32,282
Taxable equivalent adjustment	153			151			152			164
Interest income (FTE)	33,171			31,979			32,590			32,446
Interest expense	2,978			2,973			2,968			3,041
Net interest income	30,193			29,006			29,622			29,405
Provision for loan losses	1,363			435			1,872			384
Investment securities losses	83			818			71			184
Non-interest income	14,222			14,321			14,538			14,485
Non-interest expense	23,376			24,305			24,325			23,035
Income  before income tax expense	19,759			19,405			18,034			20,655
Income tax expense	5,803			6,497			6,010			5,961
Taxable equivalent adjustment	(153		)	(151		)	(152		)	(164		)
Net income available to common shareholders	$	13,803		$	12,757		$	11,872		$	14,530
Net earnings allocated to common  shareholders	$	13,663		$	12,626		$	11,746		$	14,374
Basic earnings  per common share	$	0.87		$	0.81		$	0.76		$	0.95

81

Diluted earnings per common share	0.86	0.80	0.76	0.95
Average common shares outstanding:
Basic	15,631	15,556	15,363	15,096
Diluted	15,796	15,706	15,445	15,182

NOTE TWENTY-THREE – EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):

	For the Year Ended December 31,
	2015		2014		2013
Distributed earnings allocated to  common stock	$	25,212	$	23,984	$	23,100
Undistributed earnings allocated to common stock	28,272		28,416		24,678
Net earnings allocated to common shareholders	$	53,484	$	52,400	$	47,778
Average shares outstanding	15,123		15,403		15,564
Effect of dilutive securities:
Employee stock options and warrant outstanding	48		85		144
Shares for diluted earnings per share	15,171		15,488		15,708
Basic earnings per share	$	3.54	$	3.40	$	3.07
Diluted earnings per share	$	3.53	$	3.38	$	3.04

Options to purchase approximately 13,000 shares of common stock at an exercise price of $46.41 per share were outstanding during December 31, 2015, but were not included in the computation of diluted earnings per share because the options’ exercise price was greater than the average market price of the common shares and therefore, the effect would have been anti-dilutive. During the years ended December 31, 2014 and December 31, 2013, there were no anti-dilutive options outstanding.

82

NOTE TWENTY-FOUR – ACCUMULATED OTHER COMPREHENSIVE LOSS

The activity in accumulated other comprehensive loss is presented in the tables below (in thousands). All amounts are shown net of tax, which is calculated using a combined Federal and state income tax rate approximating 37%.

	Accumulated Other Comprehensive Loss
				Unrealized
				Gains (Losses) on
	Defined Benefit			Securities
	Pension Plans			Available-for-Sale			Total
Balance at December 31, 2013	$	(2,880	)	$	(2,110	)	$	(4,990	)
Other comprehensive income before reclassifications	(2,470		)	4,030			1,560
Amounts reclassified from other comprehensive loss	—			(729		)	(729		)
	(2,470		)	3,301			831
Balance at December 31, 2014	$	(5,350	)	$	1,191		$	(4,159	)
Other comprehensive income before reclassifications	590			1,081			1,671
Amounts reclassified from other comprehensive loss	—			(1,344		)	(1,344		)
	590			(263		)	327
Balance at December 31, 2015	$	(4,760	)	$	928		$	(3,832	)

	Amount reclassified from Other Comprehensive Loss									Affected line item
	December 31,									in the Statements
	2015			2014			2013			of Income
Securities available-for-sale:
Net securities (gains) losses reclassified into earnings	$	(2,130	)	$	(1,156	)	$	(764	)	Security gains (losses)
Related income tax expense	786			427			282			Income tax expense
Net effect on accumulated other comprehensive loss	$	(1,344	)	$	(729	)	$	(482	)

83

EX-21

Subsidiaries of City Holding Company

As of December 31, 2015, the subsidiaries, each wholly-owned, of City Holding Company included:

City National Bank of West Virginia
3601 MacCorkle Avenue S.E.		Insured Depository
Charleston, West Virginia	National Banking Association	Institution
City Financial Corporation		Inactive Securities
3601 MacCorkle Avenue, S.E.		Brokerage and Investment
Charleston, West Virginia	West Virginia Corporation	Advisory Company
City Mortgage Corporation		Inactive Mortgage Banking
Pittsburgh, Pennsylvania	Pennsylvania Corporation	Company
City Capital Management Company
300 Delaware Avenue		Capital Management
Wilmington, Delaware	Delaware Corporation	Company
City Holding Capital Trust
25 Gatewater Road		Special-purpose Statutory
Cross Lanes, West Virginia	Delaware Business Trust	Trust

EX-23

Exhibit 23

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements:

1) Registration Statement (Form S-8 No. 333-87667) of City Holding Company pertaining to the 1993 Incentive Plan,

2) Registration Statement (Form S-8 No. 333-115282) of City Holding Company pertaining to the 2003 Incentive Plan,

3) Registration Statement (Form S-8 No. 333-189055) of City Holding Company pertaining to the 2013 Incentive Plan, and

4) Registration Statement (Form S-3 No. 333-208372) of City Holding Company.

of our reports dated March 2, 2016, with respect to the consolidated financial statements of City Holding Company and subsidiaries and the effectiveness of internal control over financial reporting of City Holding Company and subsidiaries included in the Annual Report (Form 10-K) of City Holding Company and subsidiaries for the year ended December 31, 2015.

/s/ Ernst & Young LLP

Charleston, West Virginia

March 2, 2016

EX-31.A

Exhibit 31(a)

CERTIFICATION

I, Charles R. Hageboeck, certify that:

1. I have reviewed this Annual Report on Form 10-K of City Holding Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or such persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(a) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: March 2, 2016

/s/ Charles R. Hageboeck

Charles R. Hageboeck

President and Chief Executive Officer

EX-31.B

Exhibit 31(b)

CERTIFICATION

I, David L. Bumgarner, certify that:

1. I have reviewed this annual report on Form 10-K of City Holding Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or such persons performing the equivalent functions)

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(a) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: March 2, 2016

/s/ David L. Bumgarner

David L. Bumgarner

Senior Vice President and Chief Financial Officer and Principal Accounting Officer

EX-32.A

Exhibit 32(a)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K of City Holding Company (the “Company”) for the period ending December 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Charles R. Hageboeck, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: March 2, 2016

/s/ Charles R. Hageboeck

Charles R. Hageboeck

President and Chief Executive Officer

EX-32.B

Exhibit 32(b)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K of City Holding Company (the “Company”) for the period ending December 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, David L. Bumgarner, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)  the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: March 2, 2016

/s/ David L. Bumgarner

David L. Bumgarner

Senior Vice President, Chief Financial Officer and Principal Accounting Officer

XML

Document And Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Feb. 29, 2016	Jun. 30, 2015
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2015
Entity Registrant Name	CITY HOLDING CO
Entity Central Index Key	0000726854
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		14,981,420
Trading Symbol	chco
Entity Public Float			$ 720.5
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Assets
Cash and due from banks	$ 58,829	$ 138,503
Interest-bearing deposits in depository institutions	11,284	9,725
Cash and Cash Equivalents	70,113	148,228
Investment securities available for sale, at fair value	369,466	254,043
Investment securities held-to-maturity, at amortized cost (approximate fair value at December 31, 2015 and 2014 - $90,810 and $94,191, respectively)	88,937	90,786
Other securities	12,915	9,857
Total Investment Securities	471,318	354,686
Gross loans	2,863,327	2,652,066
Allowance for loan losses	(20,044)	(20,150)
Net Loans	2,843,283	2,631,916
Bank owned life insurance	97,919	95,116
Premises and equipment, net	77,271	77,988
Accrued interest receivable	7,432	6,826
Deferred tax asset, net	29,974	36,766
Goodwill and other intangible assets, net	79,792	74,198
Other assets	36,957	35,909
Total Assets	3,714,059	3,461,633
Liabilities
Noninterest-bearing	621,073	545,465
Interest-bearing:
Demand deposits	679,735	639,932
Savings deposits	765,611	660,727
Time deposits	1,017,556	1,026,663
Total Deposits	3,083,975	2,872,787
Advances from Federal Home Loan Banks	13,000	0
Securities Sold under Agreements to Repurchase	141,869	134,931
Long-term debt	16,495	16,495
Other liabilities	39,448	46,567
Total Liabilities	3,294,787	3,070,780
Shareholders’ Equity
Preferred stock, par value $25 per share: 500,000 shares authorized; none issued	0	0
Common stock, par value $2.50 per share: 50,000,000 shares authorized; 18,499,282 shares issued at December 31, 2015 and December 31, 2014, less 3,319,067 and 3,345,590, shares in treasury, respectively	46,249	46,249
Capital surplus	106,269	107,370
Retained earnings	390,690	362,211
Treasury stock	(120,104)	(120,818)
Accumulated other comprehensive income (loss):
Unrealized gains on securities available-for-sale	927	1,190
Underfunded pension liability	(4,759)	(5,349)
Total Accumulated Other Comprehensive Loss	(3,832)	(4,159)
Total Shareholders’ Equity	419,272	390,853
Total Liabilities and Shareholders’ Equity	$ 3,714,059	$ 3,461,633

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Securities held-to-maturity	$ 90,810	$ 94,191
Preferred stock, par value	$ 25	$ 25
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 2.50	$ 2.50
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	18,499,282	18,499,282
Common stock, treasury shares	3,319,067	3,345,590

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Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Interest Income
Interest and fees on loans	$ 115,107	$ 116,658	$ 126,594
Interest on investment securities:
Taxable	10,830	11,766	10,697
Tax-exempt	1,137	1,142	1,226
Interest on federal funds sold	0	0	22
Total Interest Income	127,074	129,566	138,539
Interest Expense
Interest on deposits	10,886	11,012	12,358
Interest on short-term borrowings	327	342	325
Interest on long-term debt	617	606	618
Total Interest Expense	11,830	11,960	13,301
Net Interest Income	115,244	117,606	125,238
Provision for loan losses	6,988	4,054	6,848
Net Interest Income After Provision for Loan Losses	108,256	113,552	118,390
Non-interest Income
Gains on sale of investment securities	2,130	1,156	764
Service charges	26,316	26,583	27,596
Bankcard revenue	15,894	15,063	13,521
Insurance commissions	0	5,978	5,832
Trust and investment management fee income	5,124	4,614	3,986
Bank owned life insurance	3,374	3,070	3,391
Gain (Loss) on Disposition of Business	11,084	0	0
Other income	3,284	2,258	2,916
Total Non-interest Income	67,206	58,722	58,006
Non-interest Expense
Salaries and employee benefits	47,847	51,749	51,430
Occupancy and equipment	10,277	9,990	9,910
Depreciation	6,088	6,087	5,757
FDIC insurance expense	1,794	1,647	1,852
Advertising	2,446	3,274	2,673
Bankcard expenses	3,262	3,555	3,024
Postage, delivery, and statement mailings	2,123	2,211	2,220
Office supplies	1,350	1,595	1,728
Legal and professional fees	2,391	2,049	3,028
Telecommunications	1,765	1,876	2,212
Repossessed asset losses, net of expenses	1,264	579	646
Business Combination, Acquisition Related Costs	598	0	5,526
Other expenses	11,746	10,429	12,900
Noninterest Expense	92,951	95,041	102,906
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	82,511	77,233	73,490
Income tax expense	28,414	24,271	25,275
Net Income Available to Common Shareholders	$ 54,097	$ 52,962	$ 48,215
Average common shares outstanding	15,123	15,403	15,564
Employee stock options and warrant	48	85	144
Effect of dilutive securities:
Shares for diluted earnings per share	15,171	15,488	15,708
Basic earnings per common share	$ 3.54	$ 3.40	$ 3.07
Diluted earnings per common share	3.53	3.38	3.04
Dividends declared per common share	$ 1.68	$ 1.60	$ 1.48

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Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Net income available to common shareholders	$ 54,097	$ 52,962	$ 48,215
Unrealized gain (loss) on available-for-sale securities arising during period	1,713	6,388	(8,244)
Reclassification adjustment for net gains	(2,130)	(1,156)	(764)
Other comprehensive (loss) income related to available-for-sale securities	(417)	5,232	(9,008)
Amortization of actuarial net gains	975	669	895
Recognition of unrealized (losses) gains	(40)	(4,584)	2,457
Change in underfunded pension liability	935	(3,915)	3,352
Other comprehensive income (loss) before income taxes	518	1,317	(5,656)
Tax effect	(191)	(486)	2,088
Other comprehensive income (loss), net of tax	327	831	(3,568)
Comprehensive income, net of tax	$ 54,424	$ 53,793	$ 44,647

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Consolidated Statements Of Changes In Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Capital Surplus[Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Beginning balance at Dec. 31, 2012	$ 333,274	$ 46,249	$ 103,524	$ 309,270	$ (124,347)	$ (1,422)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income available to common shareholders	48,215			48,215
Other Comprehensive Income (Loss), Net of Tax	(3,568)					(3,568)
Acquisition	28,508		4,236		24,272
Cash dividends declared	(23,515)			(23,515)
Stock-based compensation expense, net	1,282		(37)		1,319
Exercise of stock options	3,427		(127)		3,554
Ending balance at Dec. 31, 2013	387,623	46,249	107,596	333,970	(95,202)	(4,990)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income available to common shareholders	52,962			52,962
Other Comprehensive Income (Loss), Net of Tax	831					831
Cash dividends declared	(24,721)			(24,721)
Stock-based compensation expense, net	1,535		64		1,471
Exercise of stock options	580		(290)		870
Purchase of treasury shares	(27,957)				(27,957)
Ending balance at Dec. 31, 2014	390,853	46,249	107,370	362,211	(120,818)	(4,159)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income available to common shareholders	54,097			54,097
Other Comprehensive Income (Loss), Net of Tax	327					327
Cash dividends declared	(25,618)			(25,618)
Stock-based compensation expense, net	1,793		266		1,527
Exercise of stock options	2,979		(602)		3,581
Stock Issued During Period, Value, Other	1,896		(765)		2,661
Purchase of treasury shares	(7,055)				(7,055)
Ending balance at Dec. 31, 2015	$ 419,272	$ 46,249	$ 106,269	$ 390,690	$ (120,104)	$ (3,832)

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Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Stockholders' Equity [Abstract]
Cash dividends declared	$ 1.68	$ 1.60	$ 1.48
Exercise of stock options	81,500	20,000	126,168
Stock Issued During Period, Shares, Other	61,796	0	0
Purchase of treasury shares	150,385	650,799	0

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Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating Activities
Net income available to common shareholders	$ 54,097	$ 52,962	$ 48,215
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and accretion	(4,589)	(4,654)	(11,294)
Provision for loan losses	6,988	4,054	6,848
Depreciation of premises and equipment	6,088	6,087	5,757
Deferred income tax expense	6,627	4,585	4,686
Net periodic employee benefit cost	836	500	903
Realized investment securities gains	(2,130)	(1,156)	(764)
Stock-based compensation expense	1,793	1,535	1,282
Increase in value of bank-owned life insurance	(3,374)	(3,069)	(3,211)
Originations of loans held for sale	(17,849)	(8,763)	(23,280)
Proceeds from loans held for sale	18,668	8,319	27,830
Gain on sale of loans	(367)	(187)	(608)
Gain (Loss) on Disposition of Business	(11,084)	0	0
Proceeds from Life Insurance Policies	571	0	0
Change in accrued interest receivable	(375)	40	1,220
Change in other assets	473	(8,262)	22,497
Change in other liabilities	(8,478)	1,363	(4,188)
Net Cash Provided by Operating Activities	47,895	53,354	75,893
Investing Activities
Proceeds from sales of securities available-for-sale	389	6,714	19,210
Proceeds from maturities and calls of securities available-for-sale	55,726	48,983	91,096
Proceeds from maturities and calls of securities held-to-maturity	13,191	6,501	10,223
Purchases of securities available-for-sale	(175,271)	(31,295)	(80,778)
Purchases of securities held-to-maturity	(10,392)	(10,226)	0
Net increase in loans	(100,130)	(43,714)	(83,962)
Purchases of premises and equipment	(3,014)	(2,323)	(7,476)
Gain (Loss) on Disposition of Property Plant Equipment	141	649	854
Proceeds from Divestiture of Businesses	15,250	0	0
Payments to Acquire Business, Net of Cash Acquired	20,030	0	(21,853)
Net Cash Used in Investing Activities	(184,080)	(24,711)	(72,686)
Financing Activities
Net increase in noninterest-bearing deposits	52,230	52,237	20,423
Net increase (decrease) in interest-bearing deposits	18,544	36,203	(26,450)
Net increase (decrease) in short-term borrowings	14,780	(2,867)	23,153
Purchases of treasury stock	(7,055)	(27,957)	0
Proceeds from Stock Options Exercised, net of tax benefit	2,979	580	3,427
Proceeds from Warrant Exercises	1,896	0	0
Dividends paid	(25,304)	(24,487)	(22,878)
Net Cash Provided by (Used in) Financing Activities	58,070	33,709	(2,325)
(Decrease) Increase in Cash and Cash Equivalents	(78,115)	62,352	882
Cash and cash equivalents at beginning of period	148,228	85,876	84,994
Cash and Cash Equivalents at End of Period	$ 70,113	$ 148,228	$ 85,876

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Consolidated Statements Of Cash Flows (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2013
Statement of Cash Flows [Abstract]
Cash acquired from acquisition	$ 561	$ 8,888

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Summary Of Significant Accounting And Reporting Policies

12 Months Ended

Dec. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary Of Significant Accounting And Reporting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES

Summary of Significant Accounting and Reporting Policies: The accounting and reporting policies of City Holding Company and its subsidiaries (the “Company”) conform with U. S. generally accepted accounting principles and require management to make estimates and develop assumptions that affect the amounts reported in the financial statements and related footnotes. Actual results could differ from management’s estimates. The following is a summary of the more significant policies.

Principles of Consolidation: The consolidated financial statements include the accounts of City Holding Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements.

The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity in conformity with U. S. generally accepted accounting principles. Voting interest entities are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. The Company consolidates voting interest entities in which it has all, or at least a majority of, the voting interest. As defined in applicable accounting standards, variable interest entities (VIEs) are entities that lack one or more of the characteristics of a voting interest entity. A controlling financial interest in an entity is present when an enterprise has a variable interest, or a combination of variable interests, that will absorb a majority of the entity’s expected losses, receive a majority of the entity’s expected residual returns, or both. The enterprise with a controlling financial interest, known as the primary beneficiary, consolidates the VIE. The Company’s wholly owned subsidiary, City Holding Capital Trust III, is a VIE for which the Company is not the primary beneficiary. Accordingly, the accounts of this entity are not included in the Company’s consolidated financial statements.

       Certain amounts in the financial statements have been reclassified. Such reclassifications had no impact on shareholders’ equity or net income for any period.

Description of Principal Markets and Services: The Company is a registered financial holding company under the Bank Holding Company Act headquartered in Charleston, West Virginia, and conducts its principal activities through its wholly-owned subsidiary, City National Bank of West Virginia (“City National”). City National is a retail and consumer-oriented community bank with 85 banking offices in West Virginia, Virginia, Kentucky and southeastern Ohio. City National provides credit, deposit, and trust and investment management services to its customers. In addition to its branch network, City National's delivery channels include ATMs, mobile banking, debit cards, interactive voice response systems and Internet technology. The Company conducts its business activities through one reportable business segment - community banking.

Cash and Due from Banks: The Company considers cash, due from banks, and interest-bearing deposits in depository institutions as cash and cash equivalents.

Securities: Management determines the appropriate classification of securities at the time of purchase. If management has the intent and the Company has the ability at the time of purchase to hold debt securities to maturity, they are classified as investment securities held-to-maturity and are stated at amortized cost, adjusted for amortization of premiums and accretion of discounts. Debt securities which the Company may not hold to maturity are classified as investment securities available-for-sale along with the Company’s investment in equity securities. Securities available-for-sale are carried at fair value, with the unrealized gains and losses, net of tax, reported in comprehensive income. Securities classified as available-for-sale include securities that management intends to use as part of its asset/liability management strategy and that may be sold in response to changes in interest rates, resultant prepayment risk, and other factors.

       The Company utilizes a third party pricing service provider to value its investment portfolio.  Annually, the Company obtains an independent auditor’s report from its third party pricing service provider regarding its controls over valuation of investment securities.  Although an unqualified opinion regarding the design and operating effectiveness of controls was issued, the report did contain caveats and disclaimers regarding the pricing information, such as the Company should review market values for reasonableness.  On a quarterly basis, the Company selects a sample of its debt securities and reprices those securities with a third party that is independent of the primary pricing service provider to verify the reasonableness of the fair values.

       Also, on a quarterly basis, the Company performs a review of investment securities to determine if any unrealized losses are other than temporarily impaired.  Management considers the following, among other things, in its determination of the nature of the unrealized losses, (i) the length of time and the extent to which the fair value has been less than cost; (ii) the financial condition, capital strength, and near–term (12 months) prospects of the issuer, including any specific events which may influence the operations of the issuer such as changes in technology that may impair the earnings potential of the investment or the discontinuance of a segment of the business that may affect the future earnings potential; (iii) the historical volatility in the market value of the investment and/or the liquidity or illiquidity of the investment; (iv) adverse conditions specifically related to the security, an industry, or a geographic area; or (v) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.  The Company continues to actively monitor the market value of these investments along with the financial strength of the issuers behind these securities, as well as its entire investment portfolio.  Based on the market information available, the Company believes that (i) the declines in fair value are temporary, driven by fluctuations in the interest rate environment and not due to the credit worthiness of the issuers, (ii) the Company does not have the intent to sell any of the securities classified as available for sale, and (iii) it is more likely than not that the Company will not have to sell any such securities before recovery of cost.  The Company cannot guarantee that such securities will recover and if additional information becomes available in the future to suggest that the losses are other than temporary, the Company may need to record impairment charges in the future.

The specific identification method is used to determine the cost basis of securities sold. Certain investment securities that do not have readily determinable fair values and for which the Company does not exercise significant influence are carried at cost and classified as other investment securities on the Consolidated Balance Sheets.  These cost-method investments are reviewed for impairment at least annually or sooner if events or changes in circumstances indicate the carrying value may not be recoverable.

       Loans: Loans, excluding previously securitized loans, which are discussed separately below, are reported at the principal amount outstanding, net of unearned income.  Portfolio loans include those for which management has the intent and City has the ability to hold for the foreseeable future, or until maturity or payoff.  The foreseeable future is based upon management’s judgment of current business strategies and market conditions, the type of loan, asset/liability management, and liquidity.

       Interest income on loans is accrued and credited to operations based upon the principal amount outstanding, using methods that generally result in level rates of return. Loan origination fees, and certain direct costs, are deferred and amortized as an adjustment to the yield over the term of the loan. The accrual of interest income generally is discontinued when a loan becomes 90 days past due as to principal or interest for all loan types.  However, any loan may be placed on non-accrual if the Company receives information that indicates that it is probable a borrower will be unable to meet the contractual terms of their respective loan agreement. Other indicators considered for placing a loan on non-accrual status include the borrower’s involvement in bankruptcies, foreclosures, repossessions, litigation and any other situation resulting in doubt as to whether full collection of contractual principal and interest is attainable. When interest accruals are discontinued, unpaid interest recognized in income in the current year is reversed, and interest accrued in prior years is charged to the allowance for loan losses. Management may elect to continue the accrual of interest when the estimated net realizable value of collateral exceeds the principal balance and related accrued interest, and the loan is in process of collection.

Generally for all loan classes, interest income during the period the loan is non-performing is recorded on a cash basis after recovery of principal is reasonably assured. Cash payments received on nonperforming loans are typically applied directly against the outstanding principal balance until the loan is fully repaid. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt.

Generally, all loan types are considered past due when the contractual terms of a loan are not met and the borrower is 30 days or more past due on a payment.  Furthermore, residential and home equity loans are generally subject to charge-off when the loan becomes 120 days past due, depending on the estimated fair value of the collateral less cost to dispose, versus the outstanding loan balance. Commercial loans are generally charged off when the loan becomes 120 days past due and consumer loans are generally charged off when the loan becomes 120 days past due.

Acquired Loans: In determining the estimated fair value of the acquired loans, management considered several factors, such as estimated future credit losses, estimated prepayments, remaining lives of the acquired loans, estimated value of the underlying collateral and the present value of the cash flows expected to be received.  For smaller loans not specifically reviewed, management grouped the loans into their respective homogeneous loan pool and applied a loss estimate accordingly.

Acquired loans are accounted for using one of the two following accounting standards:

(1) ASC Topic 310-20 is used to value loans that do not have evidence of credit quality deterioration.  For these loans, the difference between the fair value of the loan and the amortized cost of the loan is amortized or accreted into income using the interest method.

(2) ASC Topic 310-30 is used to value loans that have evidence of credit quality deterioration.  For these loans, the expected cash flows that exceed the fair value of the loan represent the accretable yield, which is recognized as interest income on a level-yield basis over the expected cash flow periods of the loans.  The non-accretable difference represents the difference between the contractually required principal and interest payments and the cash flows expected to be collected based upon management’s estimation.  Subsequent decreases in the expected cash flows will require the Company to evaluate the need for additions to the Company’s allowance for loan losses.  Subsequent increases in the expected cash flows will result in a reversal of the provision for loan losses to the extent of prior charges with a corresponding adjustment to the accretable yield, which will result in the recognition of additional interest income over the remaining lives of the loans. 

Previously Securitized Loans: Previously securitized loans represent the carrying value of loans beneficially owned by the Company as a result of exercising its early redemption option during 2003 and 2004 to fully redeem the obligations owed to investors (“notes”) in certain of the Company’s securitization transactions. The loans were recorded at the lower of fair value or their carrying values, which was the carrying value of the related retained interest asset underlying the securitization plus amounts remitted by the Company to the note holders to redeem the notes. Because the carrying value of the retained interests incorporated assumptions with regard to expected prepayment and default rates on the loans and also considered the expected timing and amount of cash flows to be received by the Company, the carrying value of the retained interests and the carrying value of the loans was less than the actual outstanding balance of the loans. Effective January 1, 2012, the carrying value of the remaining previously securitized loans was reduced to zero and any cash received on these loans is recorded as interest income in the period that it is received.

Allowance for Loan Losses: The allowance for loan losses is maintained at a level that represents management’s best estimate of probable losses in the loan portfolio. Management’s determination of the appropriateness of the allowance for loan losses is based upon an evaluation of individual credits in the loan portfolio, historical loan loss experience, current economic conditions, and other relevant factors. This determination is inherently subjective, as it requires material estimates including the amounts and timing of future cash flows expected to be received on impaired loans that may be susceptible to significant change. These evaluations are conducted at least quarterly and more frequently if deemed necessary.  The allowance for loan losses related to loans considered to be impaired is generally evaluated based on the discounted cash flows using the impaired loan’s initial effective interest rate or the fair value of the collateral for certain collateral dependent loans. Loan losses are charged against the allowance and recoveries of amounts previously charged off are credited to the allowance. A provision for loan losses is charged to operations based on management’s periodic evaluation of the appropriateness of the allowance after considering factors noted above, among others.

In evaluating the appropriateness of its allowance for loan losses, the Company stratifies the loan portfolio into six major groupings, including commercial real estate, commercial and industrial, residential real estate, home equity, and others. Historical loss experience, as adjusted, is applied to the then outstanding balance of loans in each classification to estimate probable losses inherent in each segment of the portfolio. Historical loss experience is adjusted using a systematic weighted probability of potential risk factors that could result in actual losses deviating from prior loss experience. Risk factors considered by the Company in completing this analysis include: (1) unemployment and economic trends in the Company’s markets, (2) concentrations of credit, if any, among any industries, (3) trends in loan growth, loan mix, delinquencies, losses or credit impairment, (4) adherence to lending policies and others. Each risk factor is designated as low, moderate/increasing, or high based on the Company’s assessment of the risk to loss associated with each factor. Each risk factor is then weighted to consider probability of occurrence.

Additionally, all commercial loans within the portfolio are subject to internal risk grading. Risk grades are generally assigned by the primary lending officer and are periodically evaluated by the Company’s internal loan review process. Based on an individual loan’s risk grade, estimated loss percentages are applied to the outstanding balance of the loan to determine the amount of probable loss.

Premises and Equipment: Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed primarily by the straight-line method over the estimated useful lives of the assets. Depreciation of leasehold improvements is computed using the straight-line method over the lesser of the term of the respective lease or the estimated useful life of the respective asset. Maintenance and repairs are charged to expense as incurred, while improvements that extend the useful life of premises and equipment are capitalized and depreciated over the estimated remaining life of the asset.

Other Real Estate Owned:  Other real estate owned (“OREO”) is comprised principally of commercial and residential real estate properties obtained in partial or total satisfaction of loan obligations.  OREO acquired in settlement of indebtedness is included in Other Assets at the lower of estimated fair value of the asset, less estimated selling costs or the carrying amount of the loan.  Changes to the value subsequent to transfer are recorded in non-interest expense, along with direct operating expenses.  Gains or losses not previously recognized from sales of OREO are recognized in non-interest expense on the date of the sale.  As of December 31, 2015 and 2014, the amount of OREO included in Other Assets was $6.5 million and $8.2 million, respectively.

Goodwill and OtherIntangible Assets: Goodwill is the excess of the cost of an acquisition over the fair value of tangible and intangible assets acquired.  Goodwill is not amortized.  Intangible assets represent purchased assets that also lack physical substance, but can be separately distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset or liability.  Intangible assets with determinable useful lives, such as core deposits, are amortized over their estimated useful lives.

The Company performs an annual review for impairment in the recorded value of goodwill and indefinite lived intangible assets. Goodwill is tested for impairment between the annual tests if an event occurs or circumstances change that more than likely reduce the fair value of a reporting unit below its carrying value. An indefinite-lived intangible asset is tested for impairment between the annual tests if an event occurs or circumstances change indicating that the asset might be impaired.

Securities Sold Under Agreements to Repurchase:  Securities sold under agreements to repurchase are accounted for as collateralized financing transactions and are recorded at the amounts at which the securities were sold plus accrued interest.  Securities sold primarily consists of U.S. government, federal agency, and municipal securities pledged as collateral under these financing arrangements and cannot be repledged or sold, unless replaced by the secured party.

Insurance Commissions:  Commission revenue was recognized as of the effective date of the insurance policy or the date the customer was billed, whichever was later.  The Company also received contingent commissions from insurance companies as additional incentive for achieving specified premium volume goals and/or the loss experience of the insurance placed by the Company.  The Company maintained a reserve for commission adjustments based on estimated policy cancellations.

In January 2015, the Company sold its insurance operations, CityInsurance, to The Hilb Group, effective January 1, 2015. As a result of this sale, the Company recognized a one-time, after tax gain of $5.8 million.

Derivative Financial Instruments: The Company enters into derivative transactions principally to protect against the risk of adverse price or interest rate movements on the value of certain assets and liabilities and on future cash flows.  All derivative instruments are carried at fair value on the balance sheet. As of December 31, 2015 and 2014, the Company has derivative instruments not included in hedge relationships. These derivatives consist of interest rate swaps used for interest rate management purposes and derivatives executed with commercial banking customers to facilitate their interest rate management strategies. The change in the fair value of these derivative instruments is reflected in the statements of income. As of December 31, 2015, the Company also has a derivative instrument that is included in hedge relationships. This derivative consists of an interest rate swap used for interest rate management purposes on commercial real estate loans. The change in the fair value of these derivative instruments is reflected in the statements of income and net swap settlements are recognized in interest income.

Trust Assets:  Assets held in a fiduciary or agency capacity for customers are not included in the accompanying financial statements since such items are not assets of the Company.

Income Taxes: The consolidated provision for income taxes is based upon reported income and expense. Deferred income taxes are provided for temporary differences between financial reporting and tax bases of assets and liabilities, computed using enacted tax rates. The Company files a consolidated income tax return. The respective subsidiaries generally provide for income taxes on a separate return basis and remit amounts determined to be currently payable to the Parent Company.

The Company and its subsidiaries are subject to examinations and challenges from federal and state taxing authorities regarding positions taken in returns.  Uncertain tax positions are initially recognized in the consolidated financial statements when it is more likely than not the position will be sustained upon examination.  These positions are initially and subsequently measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the taxing authority and assuming full knowledge of the position and all relevant facts by the taxing authority.

The Company invests in certain limited partnerships that operate qualified low-income housing tax credit developments.  These investments are considered variable interest entities for which the Company is not the primary beneficiary.  The tax credits are reflected in the Consolidated Statements of Income as a reduction in income tax expense.  The unamortized amount of the investments is recorded within Other Assets within the Consolidated Balance Sheets.  The Company’s investments in affordable housing limited partnerships were $0.5 million and $0.9 million at December 31, 2015 and 2014, respectively.

Advertising Costs: Advertising costs are expensed as incurred.

Stock-Based Compensation: Compensation expense related to stock options and restricted stock awards issued to employees is based upon the fair value of the award at the date of grant.  The fair value of stock options is estimated utilizing a Black Scholes pricing model, while the fair value of restricted stock awards is based upon the stock price at the date of grant.  Compensation expense is recognized on a straight line basis over the vesting period for options and the respective period for stock awards.

Basic and Diluted Earnings per Common Share: Basic earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding, excluding participating securities. Diluted earnings per share is computed by dividing net income by the weighted-average number of shares outstanding, excluding participating securities, increased by the number of shares of common stock which would be issued assuming the exercise of stock options and other common stock equivalents.

Recent Accounting Pronouncements: In January 2014, the FASB issued ASU No. 2014-04, "Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure." This ASU clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through similar legal agreement. Additionally, the amendments require interim and annual disclosures of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. This ASU became effective for the Company on January 1, 2015. The adoption of ASU 2014-04 did not have a material impact on the Company's financial statements.

In April 2014, the FASB issued ASU No. 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." This ASU changes the requirements for reporting discontinued operations. A disposal of a component or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations when certain criteria are met. Additional disclosures are also required for disposals that meet the criteria to be reported in discontinued operations. The Company elected to early adopt this ASU for the year ended December 31, 2014 relating to the sale of CityInsurance. The adoption of ASU 2014-08 did not have a material impact on the Company's financial statements.

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The core principle will be achieved using a five step process. In August 2015 the FASB issued Accounting Standards Update 2015-14, "Revenue from Contracts with Customers (Topic 606)," which amends the effective date for the Company from January 1, 2017 to January 1, 2018. The adoption of this standard is not expected to have a material impact on the Company's financial statements.

In June 2014, the FASB issued ASU No. 2014-11, "Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures." The amendments in this update require two accounting changes. First, the amendments in this update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. Second, for repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counter-party, which will result in secured borrowing accounting for the repurchase agreement. This update also requires certain disclosures for these types of transactions. This ASU became effective for the Company on January 1, 2015. The adoption of ASU 2014-11 did not have a material impact on the Company's financial statements.

In June 2014, the FASB issued ASU No. 2014-12, "Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period." The amendments in this update require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Performance targets should not be reflected in estimating the grant date fair value of the award, but compensation cost should be recognized in the period for which the requisite service has already been rendered. This ASU will become effective for the Company on January 1, 2016, with early adoption permitted. The adoption of ASU 2014-12 is not expected to have a material impact on the Company's financial statements.

In August 2014, the FASB issued ASU No. 2014-14, "Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure." The amendments in this update require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if certain conditions are met. This ASU became effective for the Company on January 1, 2015. The adoption of ASU 2014-14 did not have a material impact on the Company's financial statements.

In February 2015, the FASB issued ASU No. 2015-02, "Consolidation (Topic 810) - Amendments to the Consolidation Analysis." ASU 2015-02 eliminates the deferral of FAS 167 and makes changes to both the variable interest model and the voting model. This ASU will become effective for the Company on January 1, 2016. The adoption of ASU 2015-02 is not expected to have a material impact on the Company's financial statements.

In April 2015, the FASB issued ASU No. 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU will become effective for the Company on January 1, 2016. The adoption of ASU 2015-03 is not expected to have a material impact on the Company's financial statements.

In April 2015, the FASB issued ASU No. 2015-05, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement." ASU 2015-05 provides guidance to clarify the customer’s accounting for fees paid in a cloud computing arrangement. This ASU will become effective for the Company on January 1, 2016. The adoption of ASU 2015-05 is not expected to have a material impact on the Company's financial statements.

In May 2015, the FASB issued ASU No. 2015-07, "Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)." ASU 2015-07 removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. This ASU will become effective for the Company on January 1, 2016. The adoption of ASU 2015-07 is not expected to have a material impact on the Company's financial statements.

In September 2015, the FASB issued ASU No. 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments." The amendments in ASU 2015-16 require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The effect on earnings of the adjustments as a result of the change to the provisional amounts will be calculated as if the accounting had been completed at the acquisition date. The amount that would've been recorded in the previous reporting periods will be presented separately on the face of the income statement or disclosed in the notes to the financial statements. This ASU will become effective for the Company on January 1, 2016. The adoption of ASU 2015-16 is not expected to have a material impact on the Company's financial statements.

In November 2015, the FASB issued ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes." This standard requires that deferred tax liabilities and assets be classified as non-current on the balance sheet. This ASU will become effective for the Company for interim and annual periods on January 1, 2017 and early adoption is permitted. The adoption of ASU No. 2015-17 is not expected to have a material impact on the Company's financial statements.

In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." This standard makes several modifications to Subtopic 825-10 including the elimination of the available-for-sale classification of equity investments, and requires equity investments with readily determinable fair values to be measured at fair value with changes in fair value recognized in net income. This ASU will become effective for the Company for interim and annual periods on January 1, 2018. The adoption of ASU No. 2016-01 is not expected to have a material impact on the Company's financial statements.

Statements of Cash Flows: Cash paid for interest, including interest paid on long-term debt and trust preferred securities, was $11.8 million, $12.1 million, and $13.4 million in 2015, 2014, and 2013, respectively. During 2015, 2014 and 2013, the Company paid $26.3 million, $23.0 million, and $16.6 million, respectively, for income taxes.

During the twelve months endedDecember 31, 2014, the Company transferred certain securities from available-for-sale to held-to-maturity. The non-cash transfers of securities into the held-to-maturity categories from available-for-sale were made at fair value on the date of the transfer. The securities had an aggregate fair value of $83.4 million on the date of transfer.

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Acquisitions

12 Months Ended

Dec. 31, 2015

Business Combinations [Abstract]

Acquisitions

ACQUISITION

On November 6, 2015, the Company purchased three branches in Lexington, Kentucky from American Founders Bank, Inc. ("AFB"), a wholly owned subsidiary of Financial Holdings, Inc. The Company agreed to pay: (i) a $5.2 million premium on the non-time deposits acquired (representing a 5.5% premium on average balance for the preceding twenty days), (ii) a $1.2 million premium on the loans acquired (representing a 1.0% premium on loan balances at the date of acquisition, plus certain adjustments) and (iii) $4.0 million for the one bank owned branch. The purchase added approximately $145 million in deposits and $119 million in loans.

Acquired Loans

The Company did not acquire any purchased credit-impaired loans as a result of the branch acquisition. The following table presents information regard the noncredit-impaired loans acquired (in thousands):

Outstanding balance	$	119,242
Less: fair value adjustment	(1,763		)
Fair value of acquired noncredit-impaired loans	$	117,479

Acquired Deposits

The fair values of non-time deposits approximated their carrying value at the acquisition date.  For time deposits, the fair values were estimated based on discounted cash flows, using interest rates that are currently being offered compared to the contractual interest rates.   Based on this analysis, management recorded a premium on time deposits acquired of $0.1 million, which is being amortized over 3 years.

Core Deposit Intangible

The Company believes that the customer relationships with the deposits acquired have an intangible value.  In connection with this branch acquisition, the Company recorded a core deposit intangible asset of $1.4 million. The core deposit intangible asset represents the value that the acquiree had with their deposit customers.  The fair value was estimated based on a discounted cash flow methodology that considered type of deposit, deposit retention and the cost of the deposit base.   The core deposit intangible is being amortized over 10 years.

Goodwill

The Company recorded approximately $7.9 million in goodwill as a result of this acquisition. Under GAAP, management has up to twelve months following the date of the acquisition to finalize the fair values of acquired assets and liabilities.  The measurement period ends as soon as the Company receives information it was seeking about facts and circumstances that existed as of the acquisition date or learns more information is not obtainable.  Any subsequent adjustments to the fair value of the acquired assets and liabilities, intangible assets or other purchase accounting adjustments will result in adjustments to the goodwill recorded.  The measurement period is limited to one year from the acquisition date.  The goodwill recorded in conjunction with the branch acquisition is not expected to be deductible for tax purposes.

Merger Related Costs

During the year ended December 31, 2015, the Company incurred $0.6 million of merger-related costs in connection with the AFB branch acquisition.

During the year ended December 31, 2013, the Company incurred $5.5 million of merger-related costs in connection with the Community acquisition. These costs were primarily for severance ($2.5 million), professional fees ($1.4 million) and data processing costs ($1.1 million).

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Restrictions On Cash Due From Banks

12 Months Ended

Dec. 31, 2015

Restricted Cash and Investments [Abstract]

Restrictions On Cash Due From Banks

RESTRICTIONS ON CASH AND DUE FROM BANKS

City National is required to maintain an average reserve balance with the Federal Reserve Bank of Richmond to compensate for services provided by the Federal Reserve and to meet statutory required reserves for demand deposits. The average amount of the reserve balance for the year ended December 31, 2015 was approximately $18.5 million.

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Investments

12 Months Ended

Dec. 31, 2015

Investments [Abstract]

Investments

INVESTMENTS

The aggregate carrying and approximate market values of securities follow (in thousands).  Fair values are based on quoted market prices, where available.  If quoted market prices are not available, fair values are based on quoted market prices of comparable financial instruments.

	December 31, 2015								December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Securities available-for-sale:
U.S. Treasuries and U.S.
government agencies	$	5	$	—	$	—	$	5	$	1,816	$	11	$	—	$	1,827
Obligations of states and
political subdivisions	49,725		979		7		50,697		41,382		722		8		42,096
Mortgage-backed securities:
U.S. government agencies	287,933		2,285		2,021		288,197		185,831		3,470		1,973		187,328
Private label	1,222		9		—		1,231		1,700		8		4		1,704
Trust preferred
securities	6,550		463		1,155		5,858		9,763		425		1,152		9,036
Corporate securities	18,793		221		321		18,693		7,806		204		693		7,317
Total Debt Securities	364,228		3,957		3,504		364,681		248,298		4,840		3,830		249,308
Marketable equity  securities	2,131		1,142		—		3,273		2,131		1,082		—		3,213
Investment funds	1,525		—		13		1,512		1,525		—		3		1,522
Total Securities
Available-for-Sale	$	367,884	$	5,099	$	3,517	$	369,466	$	251,954	$	5,922	$	3,833	$	254,043

	December 31, 2015								December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Securities held-to-maturity
U.S. government agencies	$	84,937	$	1,949	$	76	$	86,810	$	86,742	$	2,733	$	—	$	89,475
Trust preferred securities	4,000		—		—		4,000		4,044		672		—		4,716
Total Securities
Held-to-Maturity	$	88,937	$	1,949	$	76	$	90,810	$	90,786	$	3,405	$	—	$	94,191
Other investment securities:
Non-marketable equity securities	$	12,915	$	—	$	—	$	12,915	$	9,857	$	—	$	—	$	9,857
Total Other Investment
Securities	$	12,915	$	—	$	—	$	12,915	$	9,857	$	—	$	—	$	9,857

Marketable equity securities consist of investments made by the Company in equity positions of various community banks. Included within this portfolio are ownership positions in the following community bank holding companies: First National Corporation (FXNC) (4%) and Eagle Financial Services, Inc. (EFSI) (1.5%). Securities with limited marketability, such as stock in the Federal Reserve Bank ("FRB") or the Federal Home Loan Bank ("FHLB"), are carried at cost and are reported as non-marketable equity securities in the table above.

At December 31, 2015 and 2014, there were no securities of any non-governmental issuer whose aggregate carrying value or estimated fair value exceeded 10% of shareholders' equity.

Certain investment securities owned by the Company were in an unrealized loss position (i.e., amortized cost basis exceeded the estimated fair value of the securities) as of December 31, 2015 and 2014.  The following table shows the gross unrealized losses and fair value of the Company’s investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):

	December 31, 2015
	Less Than Twelve Months				Twelve Months or Greater				Total
	Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss
Securities available-for-sale:
Obligations of states and political subdivisions	$	2,406	$	5	$	128	$	2	$	2,534	$	7
Mortgage-backed securities:
U.S. Government agencies	129,612		688		34,044		1,333		163,656		2,021
Private label	—		—		—		—		—		—
Trust preferred securities	—		—		4,769		1,155		4,769		1,155
Corporate securities	10,856		174		2,231		147		13,087		321
Investment funds	—		—		1,488		13		1,488		13
Total	$	142,874	$	867	$	42,660	$	2,650	$	185,534	$	3,517

	December 31, 2014
	Less Than Twelve Months				Twelve Months or Greater				Total
	Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss
Securities available-for-sale:
Obligations of states and political subdivisions	$	1,559	$	3	$	125	$	5	$	1,684	$	8
Mortgage-backed securities:
U.S. Government agencies	—		—		60,122		1,973		60,122		1,973
Private label	1,277		4		—		—		1,277		4
Trust preferred securities	—		—		4,760		1,152		4,760		1,152
Corporate securities	—		—		4,049		693		4,049		693
Investment funds	—		—		1,496		3		1,496		3
Total	$	2,836	$	7	$	70,552	$	3,826	$	73,388	$	3,833

During the years ended December 31, 2015, 2014, and 2013 the Company recorded no credit-related net investment impairment losses. The charges deemed to be other-than-temporary were related to pooled bank trust preferred securities and were based on the Company’s quarterly reviews of its investment securities for indications of losses considered to be other-than-temporary.

The following table presents a progression of the credit loss component of OTTI on debt and equity securities recognized in earnings during the years ended December 31, 2015 and 2014 (in thousands).  The credit loss component represents the difference between the present value of expected future cash flows and the amortized cost basis of the security.  The credit component of OTTI recognized in earnings during a period is presented in two parts based upon whether the credit impairment in the current period is the first time the security was credit impaired (initial credit impairment) or if there is additional credit impairment on a security that was credit impaired in previous periods.

	Debt Securities			Equity Securities			Total
Balance at January 1, 2014	$	20,186		$	4,698		$	24,884
Additions:
Additional credit impairment	—			—			—
Deductions:
Called or Sold	(3,600		)	(3,114		)	(6,714		)
Balance at December 31, 2014	16,586			1,584			18,170
Additions:
Additional credit impairment	—			—			—
Deductions:
Called or Sold	—			—			—
Balance at December 31, 2015	$	16,586		$	1,584		$	18,170

Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other-than-temporary would be reflected in earnings as realized losses.  In estimating other-than-temporary impairment losses, management considers, among other things (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition, capital strength, and near-term (12 months) prospects of the issuer, including any specific events which may influence the operations of the issuer such as changes in technology that may impair the earnings potential of the investment or the discontinuance of a segment of the business that may affect the future earnings potential; (iii) the historical volatility in the market value of the investment and/or the liquidity or illiquidity of the investment; (iv) adverse conditions specifically related to the security, an industry, or a geographic area; or (v) the intent to sell the investment security and if it’s more likely than not that the Company will not have to sell the security before recovery of its cost basis.  In addition, management also employs a continuous monitoring process in regards to its marketable equity securities, specifically its portfolio of regional community bank holdings.  Although the regional community bank stocks that are owned by the Company are publicly traded, the trading activity for these stocks is minimal, with trading volumes of less than 0.2% of each respective company being traded on a daily basis.  As part of management’s review process for these securities, management reviews the financial condition of each respective regional community bank for any indications of financial weakness.

Management has the ability and intent to hold the securities classified as held-to-maturity until they mature, at which time the Company expects to receive full value for the securities.  Furthermore, as of December 31, 2015, management does not intend to sell an impaired security and it is not more than likely that it will be required to sell the security before the recovery of its amortized cost basis.  The unrealized losses on debt securities are primarily the result of interest rate changes, credit spread fluctuations on agency-issued mortgage related securities, general financial market uncertainty and unprecedented market volatility.  These conditions will not prohibit the Company from receiving its contractual principal and interest payments on its debt securities.  The fair value is expected to recover as the securities approach their maturity date or repricing date.   As of December 31, 2015, management believes the unrealized losses detailed in the table above are temporary and no additional impairment loss has been recognized in the Company’s consolidated income statement.  Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss will be recognized in net income in the period the other-than-temporary impairment is identified, while any noncredit loss will be recognized in other comprehensive income.

The amortized cost and estimated fair value of debt securities at December 31, 2015, by contractual maturity, are shown in the following table (in thousands).  Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.  Mortgage-backed securities have been allocated to their respective maturity groupings based on their contractual maturity.

	Cost		Estimated Fair Value
Securities Available-for-Sale
Due in one year or less	$	2,716	$	2,740
Due after one year through five years	24,037		16,267
Due after five years through ten years	33,285		42,038
Due after ten years	304,190		303,636
	$	364,228	$	364,681
Securities Held-to-Maturity
Due in one year or less	$	—	$	—
Due after one year through five years	—		—
Due after five years through ten years	—		—
Due after ten years	88,937		90,810
	$	88,937	$	90,810

Gross gains and gross losses realized by the Company from investment security transactions are summarized in the table below (in thousands):

	For the year ended December 31,
	2015			2014			2013
Gross realized gains	$	2,142		$	1,256		$	764
Gross realized losses	(12		)	(100		)	—
Investment security gains (losses)	$	2,130		$	1,156		$	764

The carrying value of securities pledged to secure public deposits and for other purposes as required or permitted by law approximated $291 million and $273 million at December 31, 2015 and 2014, respectively.

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Loans

12 Months Ended

Dec. 31, 2015

Loans Receivable, Net [Abstract]

Loans

LOANS

The following summarizes the Company’s major classifications for loans (in thousands):

	December 31, 2015			December 31, 2014
Residential real estate	$	1,383,133		$	1,294,576
Home equity	147,036			145,604
Commercial and industrial	165,887			140,548
Commercial real estate	1,127,827			1,028,831
Consumer	36,083			39,705
DDA overdrafts	3,361			2,802
Gross loans	2,863,327			2,652,066
Allowance for loan losses	(20,044		)	(20,150		)
Net loans	$	2,843,283		$	2,631,916

Construction loans of $13.1 million and $23.0 million are included within residential real estate loans at December 31, 2015 and December 31, 2014, respectively.  Construction loans of $12.6 million and $28.7 million are included within commercial real estate loans at December 31, 2015 and December 31, 2014, respectively.  The Company’s commercial and residential real estate construction loans are primarily secured by real estate within the Company’s principal markets.  These loans were originated under the Company’s loan policy, which is focused on the risk characteristics of the loan portfolio, including construction loans.  Adequate consideration has been given to these loans in establishing the Company’s allowance for loan losses.

The following table details the loans acquired in conjunction with the Virginia Savings, Community and AFB acquisitions (in thousands):

	Virginia Savings		Community		AFB		Total
December 31, 2015
Outstanding loan balance	$	28,914	$	181,545	$	112,862	$	323,321
Credit-impaired loans:
Carrying value	1,707		12,899		—		14,606
Contractual principal and interest	1,965		16,362		—		18,327
December 31, 2014
Outstanding loan balance	$	38,345	$	219,923	$	—	$	258,268
Credit-impaired loans:
Carrying value	1,964		15,365		—		17,329
Contractual principal and interest	2,407		23,277		—		25,684

Changes in the accretable yield and the carrying amount of the credit-impaired loans for the year December 31, 2015 is as follows (in thousands):

	Virginia Savings						Community						Total
	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
Balance at the beginning of the period	$	428		$	1,964		$	9,906		$	15,365		$	10,334		$	17,329
Accretion	(188		)	188			(2,477		)	2,477			(2,665		)	2,665
Net reclassifications to accretable from non-accretable	185			—			918			—			1,103			—
Payments received, net	—			(445		)	—			(2,924		)	—			(3,369		)
Disposals	(51		)	—			(2,081		)	(2,019		)	(2,132		)	(2,019		)
Balance at the end of period	$	374		$	1,707		$	6,266		$	12,899		$	6,640		$	14,606

Increases in expected cash flow subsequent to the acquisition are recognized first as a reduction of any previous impairment, then prospectively through adjustment of the yield on the loans or pools over its remaining life, while decreases in expected cash flows are recognized as impairment through a provision for loan loss and an increase in the allowance for purchased credit-impaired loans.

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Allowance For Loan Losses

12 Months Ended

Dec. 31, 2015

Receivables [Abstract]

Allowance For Loan Losses

ALLOWANCE FOR LOAN LOSSES

Management systematically monitors the loan portfolio and the appropriateness of the allowance for loan losses on a quarterly basis to provide for probable losses inherent in the portfolio.  Management assesses the risk in each loan type based on historical trends, the general economic environment of its local markets, individual loan performance and other relevant factors.

Individual credits in excess of $1 million are selected at least annually for detailed loan reviews, which are utilized by management to assess the risk in the portfolio and the appropriateness of the allowance.  Due to the nature of commercial lending, evaluation of the appropriateness of the allowance as it relates to these types of loan types is often based more upon specific credit reviews, with consideration given to the potential impairment of certain credits and historical loss rates, adjusted for economic conditions and other inherent risk factors.

The following summarizes the activity in the allowance for loan loss, by portfolio segment (in thousands).  The following also presents the balance in the allowance for loan loss disaggregated on the basis of the Company’s impairment measurement method and the related recorded investment in loans, by portfolio segment (in thousands).

	Commercial and industrial			Commercial real estate			Residential real estate			Home equity			Consumer			DDA overdrafts			Total
December 31, 2015
Allowance for loan loss
Beginning balance	$	1,582		$	8,921		$	7,208		$	1,495		$	85		$	859		$	20,150
Charge-offs	(5,051		)	(580		)	(1,144		)	(312		)	(210		)	(1,414		)	(8,711		)
Recoveries	74			366			199			—			186			792			1,617
Provision	6,113			(929		)	515			280			36			420			6,435
Provision for acquired loans with deteriorated credit quality	553			—			—			—			—			—			553
Ending balance	$	3,271		$	7,778		$	6,778		$	1,463		$	97		$	657		$	20,044
December 31, 2014
Allowance for loan loss
Beginning balance	$	1,139		$	10,775		$	6,057		$	1,672		$	77		$	855		$	20,575
Charge-offs	(323		)	(1,925		)	(1,762		)	(309		)	(188		)	(1,415		)	(5,922		)

Recoveries	89		113			187		—		204			850		1,443
Provision	394		(42		)	2,726		132		(8		)	569		3,771
Provision for acquired loans with deteriorated credit quality	$	283	$	—		$	—	$	—	$	—		$	—	283
Ending balance	$	1,582	$	8,921		$	7,208	$	1,495	$	85		$	859	$	20,150
As of December 31, 2015
Allowance for loan loss
Evaluated for impairment:
Individually	$	—	$	—		$	—	$	—	$	—		$	—	$	—
Collectively	3,267		6,966			6,777		1,451		97			657		19,215
Acquired with deteriorated credit quality	4		812			1		12		—			—		829
Total	$	3,271	$	7,778		$	6,778	$	1,463	$	97		$	657	$	20,044
Loans
Evaluated for impairment:
Individually	$	2,349	$	5,399		$	437	$	297	$	—		$	—	$	8,482
Collectively	163,209		1,110,307			1,382,325		145,041		35,997			3,361		2,840,240
Acquired with deteriorated credit quality	329		12,121			371		1,698		86			—		14,605
Total	$	165,887	$	1,127,827		$	1,383,133	$	147,036	$	36,083		$	3,361	$	2,863,327
As of December 31, 2014
Allowance for loan loss
Evaluated for impairment:
Individually	$	—	$	252		$	—	$	—	$	—		$	—	$	252
Collectively	1,540		7,898			7,208		1,429		85			859		19,019
Acquired with deteriorated credit quality	42		771			—		66		—			—		879
Total	$	1,582	$	8,921		$	7,208	$	1,495	$	85		$	859	$	20,150
Loans
Evaluated for impairment:
Individually	$	—	$	6,023		$	449	$	297	$	—		$	—	$	6,769
Collectively	139,862		1,009,241			1,293,748		142,743		39,572			2,802		2,627,968
Acquired with deteriorated credit quality	686		13,567			379		2,564		133			—		17,329
Total	$	140,548	$	1,028,831		$	1,294,576	$	145,604	$	39,705		$	2,802	$	2,652,066

Credit Quality Indicators

All non-commercial loans are evaluated based on payment history.  All commercial loans within the portfolio are subject to internal risk grading. The Company’s internal risk ratings for commercial loans are:  Exceptional, Good, Acceptable, Pass/Watch, Special Mention, Substandard and Doubtful.  Each internal risk rating is defined in the loan policy using the following criteria:  balance sheet yields, ratios and leverage, cash flow spread and coverage, prior history, capability of management, market position/industry, potential impact of changing economic, legal, regulatory or environmental conditions, purpose structure, collateral support, and guarantor support.  Risk grades are generally assigned by the primary lending officer and are periodically evaluated by the Company’s internal loan review process.  Based on an individual loan’s risk grade, estimated loss percentages are applied to the outstanding balance of the loan to determine the amount of probable loss.

The Company categorizes loans into risk categories based on relevant information regarding the customer’s debt service ability, capacity, overall collateral position along with other economic trends, and historical payment performance.  The risk grades for each credit are updated when the Company receives current financial information, the loan is reviewed by the Company’s internal loan review/credit administration departments, or the loan becomes delinquent or impaired.  The risk grades are updated a minimum of annually for loans rated exceptional, good, acceptable, or pass/watch.  Loans rated special mention, substandard or doubtful are reviewed at least quarterly.  The Company uses the following definitions for its risk ratings:

Risk Rating	Description
Pass Ratings:
(a) Exceptional	Loans classified as exceptional are secured with liquid collateral conforming to the internal loan policy.  Loans rated within this category pose minimal risk of loss to the bank and the risk grade within this pool of loans is generally updated on an annual basis.
(b) Good	Loans classified as good have similar characteristics that include a strong balance sheet, satisfactory debt service coverage ratios, strong management and/or guarantors, and little exposure to economic cycles.  Loans within this category are generally reviewed on an annual basis.  Loans in this category generally have a low chance of loss to the bank.
(c) Acceptable	Loans classified as acceptable have acceptable liquidity levels, adequate debt service coverage ratios, experienced management, and have average exposure to economic cycles.  Loans within this category generally have a low risk of loss to the bank.
(d) Pass/watch	Loans classified as pass/watch have erratic levels of leverage and/or liquidity, cash flow is volatile and the borrower is subject to moderate economic risk.  A borrower in this category poses a low to moderate risk of loss to the bank.
Special mention	Loans classified as special mention have a potential weakness(es) that deserves management's close attention.  The potential weakness could result in deterioration of the loan repayment or the bank's credit position at some future date.  A loan rated in this category poses a moderate loss risk to the bank.
Substandard	Loans classified as substandard reflect a customer with a well defined weakness that jeopardizes the liquidation of the debt.  Loans in this category have the possibility that the bank will sustain some loss if the deficiencies are not corrected and the bank's collateral value is weakened by the financial deterioration of the borrower.
Doubtful	Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristics that make collection of the full contract amount highly improbable.  Loans rated in this category are most likely to cause the bank to have a loss due to a collateral shortfall or a negative capital position.

The following table presents the Company's commercial loans by credit quality indicators, by class (in thousands):

	Commercial and industrial		Commercial real estate		Total
December 31, 2015
Pass	$	157,211	$	1,070,752	$	1,227,963
Special mention	4,099		20,942		25,041
Substandard	4,539		36,133		40,672
Doubtful	38		—		38
Total	$	165,887	$	1,127,827	$	1,293,714
December 31, 2014
Pass	$	128,812	$	970,585	$	1,099,397
Special mention	761		15,103		15,864
Substandard	10,575		42,691		53,266
Doubtful	400		452		852
Total	$	140,548	$	1,028,831	$	1,169,379

The following table presents the Company's non-commercial loans by payment performance, by class (in thousands):

	Performing		Non-Performing		Total
December 31, 2015
Residential real estate	$	1,382,715	$	418	$	1,383,133
Home equity	147,013		23		147,036
Consumer	36,049		34		36,083
DDA overdrafts	3,361		—		3,361
Total	$	1,569,138	$	475	$	1,569,613
December 31, 2014
Residential real estate	$	1,292,012	$	2,564	$	1,294,576
Home equity	145,506		98		145,604
Consumer	39,692		13		39,705
DDA overdrafts	2,802		—		2,802
Total	$	1,480,012	$	2,675	$	1,482,687

Aging Analysis of Accruing and Non-Accruing Loans

The following presents an aging analysis of the Company’s accruing and non-accruing loans, by class (in thousands). The purchased credit-impaired loan column represents the purchased credit-impaired loans that the Company acquired that are contractually past due; however, are still performing in accordance with the Company's initial expectations.

	Originated Loans
	December 31, 2015
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	1,290,312	$	4,648	$	805	$	418	$	—	$	2,038	$	1,298,221
Home equity	142,697		306		65		22		—		136		143,226
Commercial and industrial	106,003		43		—		19		—		2,389		108,454
Commercial real estate	946,611		568		211		—		—		7,353		954,743
Consumer	31,894		71		2		34		—		—		32,001
DDA overdrafts	3,048		310		3		—		—		—		3,361
Total	$	2,520,565	$	5,946	$	1,086	$	493	$	—	$	11,916	$	2,540,006
	Acquired Loans
	December 31, 2015
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	83,292	$	613	$	127	$	—	$	—	$	880	$	84,912
Home equity	3,796		12		—		2		—		—		3,810
Commercial and industrial	56,979		98		—		—		—		356		57,433
Commercial real estate	168,588		194		—		—		506		3,796		173,084
Consumer	3,992		83		7		—		—		—		4,082
DDA overdrafts	—		—		—		—		—		—		—
Total	$	316,647	$	1,000	$	134	$	2	$	506	$	5,032	$	323,321
	Total Loans
	December 31, 2015
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	1,373,604	$	5,261	$	932	$	418	$	—	$	2,918	$	1,383,133
Home equity	146,493		318		65		24		—		136		147,036
Commercial and industrial	162,982		141		—		19		—		2,745		165,887
Commercial real estate	1,115,199		762		211		—		506		11,149		1,127,827
Consumer	35,886		154		9		34		—		—		36,083
DDA overdrafts	3,048		310		3		—		—		—		3,361
Total	$	2,837,212	$	6,946	$	1,220	$	495	$	506	$	16,948	$	2,863,327

	Originated Loans
	December 31, 2014
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	1,200,177	$	4,235	$	758	$	169	$	—	$	2,259	$	1,207,598
Home equity	142,624		561		155		30		—		68		143,438
Commercial and industrial	128,857		100		—		210		—		78		129,245
Commercial real estate	869,530		479		—		—		—		7,330		877,339
Consumer	33,178		119		78		1		—		—		33,376
DDA overdrafts	2,483		317		2		—		—		—		2,802
Total	$	2,376,849	$	5,811	$	993	$	410	$	—	$	9,735	$	2,393,798
	Acquired Loans
	December 31, 2014
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	86,129	$	714	$	—	$	—	$	—	$	135	$	86,978
Home equity	2,164		2		—		—		—		—		2,166
Commercial and industrial	10,123		143		—		—		—		1,037		11,303
Commercial real estate	144,721		892		210		—		1,270		4,399		151,492
Consumer	6,108		172		36		13		—		—		6,329
DDA overdrafts	—		—		—		—		—		—		—
Total	$	249,245	$	1,923	$	246	$	13	$	1,270	$	5,571	$	258,268
	Total Loans
	December 31, 2014
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	1,286,306	$	4,949	$	758	$	169	$	—	$	2,394	$	1,294,576
Home equity	144,788		563		155		30		—		68		145,604
Commercial and industrial	138,980		243		—		210		—		1,115		140,548
Commercial real estate	1,014,251		1,371		210		—		1,270		11,729		1,028,831
Consumer	39,286		291		114		14		—		—		39,705
DDA overdrafts	2,483		317		2		—		—		—		2,802
Total	$	2,626,094	$	7,734	$	1,239	$	423	$	1,270	$	15,306	$	2,652,066

The following presents the Company’s impaired loans, by class (in thousands):

	December 31, 2015						December 31, 2014
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
With no related allowance recorded:
Residential real estate	$	437	$	437	$	—	$	449	$	449	$	—
Home equity	297		297		—		297		297		—
Commercial and industrial	2,349		7,547		—		—		—		—
Commercial real estate	5,399		8,768		—		4,631		4,631		—
Consumer	—		—		—		—		—		—
DDA overdrafts	—		—		—		—		—		—
Total	$	8,482	$	17,049	$	—	$	5,377	$	5,377	$	—
With an allowance recorded
Residential real estate	$	—	$	—	$	—	$	—	$	—	$	—
Home equity	—		—		—		—		—		—
Commercial and industrial	—		—		—		—		—		—
Commercial real estate	—		—		—		1,392		1,392		252
Consumer	—		—		—		—		—		—
DDA overdrafts	—		—		—		—		—		—
Total	$	—	$	—	$	—	$	1,392	$	1,392	$	252

The following table presents information related to the average recorded investment and interest income recognized on the Company’s impaired loans, by class (in thousands):

	For the year ended
	December 31, 2015				December 31, 2014
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
With no related allowance recorded:
Residential real estate	$	441	$	—	$	452	$	—
Home equity	296		—		297		—
Commercial and industrial	2,913		—		—		—
Commercial real estate	4,869		4		6,657		17
Consumer	—		—		—		—
DDA overdrafts	—		—		—		—
Total	$	8,519	$	4	$	7,406	$	17
With an allowance recorded
Residential real estate	$	—	$	—	$	—	$	—
Home equity	—		—		—		—
Commercial and industrial	—		—		—		—
Commercial real estate	1,012		—		1,725		128
Consumer	—		—		—		—
DDA overdrafts	—		—		—		—
Total	$	1,012	$	—	$	1,725	$	128

If the Company's non-accrual and impaired loans had been current in accordance with their original terms, approximately $0.8 million, $0.5 million and $0.6 million of interest income would have been recognized during the years ended December 31, 2015, 2014 and 2013, respectively.  There were no commitments to provide additional funds on non-accrual, impaired or other potential problem loans at December 31, 2015.

Loan Modifications

The Company’s policy on loan modifications typically does not allow for modifications that would be considered a concession from the Company.  However, when there is a modification, the Company evaluates each modification to determine if the modification constitutes a troubled debt restructuring (“TDR”) in accordance with ASU 2011-2, whereby a modification of a loan would be considered a TDR when both of the following conditions are met: (1) a borrower is experiencing financial difficulty and (2) the modification constitutes a concession.  When determining whether the borrower is experiencing financial difficulties, the Company reviews whether the debtor is currently in payment default on any of its debt or whether it is probable that the debtor would be in payment default in the foreseeable future without the modification.  Other indicators of financial difficulty include whether the debtor has declared or is in the process of declaring bankruptcy, the debtor’s ability to continue as a going concern, or the debtor’s projected cash flow to service its debt (including principal and interest) in accordance with the contractual terms for the foreseeable future, without a modification.

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.  The filing of bankruptcy is deemed to be evidence that the borrower is in financial difficulty and the discharge of the debt by the bankruptcy court is deemed to be a concession granted to the borrower.

The following tables set forth the Company’s TDRs (in thousands):

	December 31, 2015						December 31, 2014
			Non-						Non-
	Accruing		Accruing		Total		Accruing		Accruing		Total
Commercial and industrial	$	58	$	—	$	58	$	73	$	—	$	73
Commercial real estate	1,746		—		1,746		2,263		—		2,263
Residential real estate	17,796		191		17,987		17,946		545		18,491
Home equity	2,659		34		2,693		2,673		15		2,688
Consumer	—		—		—		—		—		—
	$	22,259	$	225	$	22,484	$	22,955	$	560	$	23,515

	New TDRs					New TDRs
	For the year ended					For the year ended
	December 31, 2015					December 31, 2014
		Pre		Post			Pre		Post
		Modification		Modification			Modification		Modification
		Outstanding		Outstanding			Outstanding		Outstanding
	Number of	Recorded		Recorded		Number of	Recorded		Recorded
	Contracts	Investment		Investment		Contracts	Investment		Investment
Commercial and industrial	—	$	—	$	—	—	$	—	$	—
Commercial real estate	—	—		—		1	428		428
Residential real estate	38	2,969		2,969		35	2,381		2,381
Home equity	13	361		361		10	211		211
Consumer	—	—		—		—	—		—
	51	$	3,330	$	3,330	46	$	3,020	$	3,020

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Previously Securitized Loans

12 Months Ended

Dec. 31, 2015

Previously Securitized Loans [Abstract]

Previously Securitized Loans

PREVIOUSLY SECURITIZED LOANS

Between 1997 and 1999, the Company completed six securitization transactions involving approximately $760 million in 125% of fixed rate, junior-lien underlying mortgages.  The Company retained a financial interest in each of the securitizations until 2004.  Principal amounts owed to investors were evidenced by securities (“Notes”).  During 2003 and 2004, the Company exercised its early redemption options on each of those securitizations.  Once the Notes were redeemed, the Company became the beneficial owner of the mortgage loans and recorded the loans as assets of the Company within the loan portfolio.

As the Company redeemed the outstanding Notes, no gain or loss was recognized in the Company’s financial statements and the remaining mortgage loans were recorded in the Company’s loan portfolio as “previously securitized loans,” at the lower of carrying value or fair value.  Because the carrying value of the mortgage loans incorporated assumptions for expected prepayment and default rates, the carrying value of the loans was generally less than the actual outstanding contractual balance of the loans.  As of December 31, 2015 and 2014, there was no carrying value remaining on these loans; while the actual contractual balance of these loans was $3.9 million and $4.9 million, respectively.  During the years ended December 31, 2015, 2014 and 2013, the Company recognized $1.8 million, $2.2 million and $2.5 million, respectively, of interest income from its previously securitized loans.

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Premises And Equipment

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

Premises And Equipment

PREMISES AND EQUIPMENT

A summary of premises and equipment and related accumulated depreciation is summarized as follows (in thousands):

	Estimated Useful Life	2015			2014
Land		$	31,496		$	31,217
Buildings and improvements	10 to 30 yrs.	87,875			85,403
Equipment	3 to 7 yrs.	39,159			37,051
		158,530			153,671
Less: accumulated depreciation		(81,259		)	(75,683		)
		$	77,271		$	77,988

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Goodwill And Other Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill And Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETS

The Company completed its annual assessment of the carrying value of goodwill during 2015 and concluded that its carrying value was not impaired. The following table presents a roll forward of the Company's goodwill activity (in thousands):

	2015			2014
Beginning balance	$	71,401		$	71,401
Goodwill reduction in conjunction with sale of CityInsurance	(3,020		)	—
Goodwill acquired in conjunction with the acquisition of AFB	7,875			—
Ending balance	$	76,256		$	71,401

The Company believes that the customer relationships with the deposits acquired have an intangible value. In connection with acquisitions, the Company recorded a core deposit intangible, which represented the value that the acquiree had with their deposit customers. The fair value was estimated based on a discounted cash flow methodology that considered the type of deposit, estimated deposit retention, the cost of the deposit base and an alternate cost of funds. The following tables present the details of the Company's core deposit intangibles (in thousands):

	2015			2014
Gross carrying amount	$	9,802		$	8,387
Accumulated amortization	(6,266		)	(5,590		)
	$	3,536		$	2,797
Beginning balance	$	2,797		$	3,741
Core deposit intangible acquired in conjunction with the acquisition of AFB	1,415			—
Amortization expense	(676		)	(944		)
Ending balance	$	3,536		$	2,797

The core deposit intangible amortization expense for the year ended December 31, 2013 was $1.0 million. The core deposit intangibles are being amortized over ten years. The estimated amortization expense for core deposit intangible assets for each of the next five years is as follows (in thousands):

2016	$	602
2017	545
2018	496
2019	454
2020	416
Thereafter	1,023
	$	3,536

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Scheduled Maturities Of Time Deposits

12 Months Ended

Dec. 31, 2015

Maturities of Time Deposits [Abstract]

Scheduled Maturities Of Time Deposits

SCHEDULED MATURITIES OF TIME DEPOSITS

Scheduled maturities of the Company's time deposits outstanding at December 31, 2015 are summarized as follows (in thousands):

2016	$	437,542
2017	213,288
2018	192,576
2019	127,682
2020	46,452
Over five years	16
	$	1,017,556

Scheduled maturities of Company's time deposits that meet or exceed the FDIC insurance limit of $250,000 are summarized as follows (in thousands):

	2015		2014
Within one year	$	35,160	$	34,544
Over one through two years	16,491		16,318
Over two through three years	19,032		6,014
Over three through four years	10,907		19,808
Over four through five years	4,709		6,538
Over five years	—		—
	$	86,299	$	83,222

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Short-Term Debt

12 Months Ended

Dec. 31, 2015

Short-term Debt [Abstract]

Short-Term Debt

SHORT-TERM DEBT

A summary of the Company's short-term borrowings are as follows (dollars in thousands):

	2015			2014			2013
Balance at end of year:
Securities sold under agreements to repurchase	$	141,869		$	134,931		$	137,798
Federal Home Loan Bank advances	13,000			—			—
Avg. outstanding during the year:
Securities sold under agreements to repurchase	$	143,847		$	133,769		$	127,616
Federal Home Loan Bank advances	1,352			—			63
Max. outstanding at any month end:
Securities sold under agreements to repurchase	$	166,507		$	151,637		$	150,943
Federal Home Loan Bank advances	13,000			—			—
Weighted-average interest rate:
During the year:
Securities sold under agreements to repurchase	0.22		%	0.26		%	0.25		%
Federal Home Loan Bank advances	0.53		%	—			0.31		%
End of the year:
Securities sold under agreements to repurchase	0.20		%	0.26		%	0.25		%
Federal Home Loan Bank advances	0.51		%	—			0.31		%

Through City National, the Company has purchased 47,277 shares of Federal Home Loan Bank (“FHLB”) stock at par value as of December 31, 2015. Such purchases are required based on City National’s maximum borrowing capacity with the FHLB.  Additionally, FHLB stock entitles the Company to dividends declared by the FHLB and provides an additional source of short-term and long-term funding, in the form of collateralized advances. Financing obtained from the FHLB is based, in part, on the amount of qualifying collateral available, specifically 1-4 family residential mortgages, other residential mortgages, and commercial real estate and other non-residential mortgage loans. Collateral pledged to the FHLB included approximately $1.7 billion at both December 31, 2015 and 2014 in investment securities and one-to-four-family residential property loans.  In addition to the short-term financing discussed above and long-term financing (see Note Twelve), at December 31, 2015 and 2014, City National had an additional $1.6 billion and $1.5 billion, respectively, available from unused portions of lines of credit with the FHLB and other financial institutions.

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Long-Term Debt

12 Months Ended

Dec. 31, 2015

Long-term Debt, Unclassified [Abstract]

Long-Term Debt

LONG-TERM DEBT

The components of the Company's long-term debt are summarized below (dollars in thousands):

	2015		2014
Junior subordinated debentures owed to City Holding Capital Trust III, due 2038, interest at a rate of 4.01% and 3.74%, respectively	$	16,495	$	16,495

The Company formed a statutory business trust, City Holding Capital Trust III (“Capital Trust III”), under the laws of Delaware. Capital Trust III was created for the exclusive purpose of (i) issuing trust-preferred capital securities (“Capital Securities”), which represent preferred undivided beneficial interests in the assets of the trust, (ii) using the proceeds from the sale of the Capital Securities to acquire junior subordinated debentures (“Debentures”) issued by the Company, and (iii) engaging in only those activities necessary or incidental thereto. The trust is considered a variable interest entity for which the Company is not the primary beneficiary. Accordingly, the accounts of the trusts are not included in the Company’s consolidated financial statements.

Distributions on the Debentures are cumulative and will be payable quarterly at an interest rate of 3.50% over the three month LIBOR rate, reset quarterly. Interest payments are due in March, June, September and December. The Debentures are redeemable prior to maturity at the option of the Company (i) in whole or at any time or in part from time-to-time, or (ii) in whole, but not in part, at any time within 90 days following the occurrence and during the continuation of certain pre-defined events.

Payments of distributions on the Capital Securities and payments on redemption of the Capital Securities are guaranteed by the Company. The Company also entered into an agreement as to expenses and liabilities with the trust pursuant to which it agreed, on a subordinated basis, to pay any cost, expenses or liabilities of the trust other than those arising under the trust preferred securities. The obligations of the Company under the junior subordinated debentures, the related indentures, the trust agreement establishing the trust, the guarantees and the agreements as to expenses and liabilities, in the aggregate, constitute a full and unconditional guarantee by the Company of the trust’s obligations under the trust preferred securities. The Capital Securities issued by the statutory business trusts qualify as Tier 1 capital for the Company under current Federal Reserve Board guidelines.

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Derivative Instruments

12 Months Ended

Dec. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

DERIVATIVE INSTRUMENTS

As of December 31, 2015 and 2014, the Company has derivative financial instruments not included in hedge relationships. These derivatives consist of interest rate swaps used for interest rate management purposes and derivatives executed with commercial banking customers to facilitate their interest rate management strategies. For the majority of these instruments the Company acts as an intermediary for its customers. Changes in the fair value of the underlying derivative contracts for the most part offset each other and do not significantly impact the Company's results of operations.

The Company also has an interest rate swap that serves as a fair value hedge for changes in long term fixed interest rates related to commercial real estate loans. Hedge ineffectiveness is assessed quarterly and any ineffectiveness is recorded as non-interest expense. For the year ended December 31, 2015 hedge ineffectiveness was less than $0.1 million.

The following table summarizes the notional and fair value of these derivative instruments (in thousands):

	December 31, 2015				December 31, 2014
	Notional Amount		Fair Value		Notional Amount		Fair Value
Non-hedging interest rate derivatives:
Other Assets	$	334,204	$	10,811	$	179,958	$	10,253
Other Liabilities	342,204		10,872		179,958		10,253
Derivatives designated as hedges of fair value:
Other Liabilities	5,475		61		5,475		24

The following table summarizes the change in fair value of these derivative instruments (in thousands): 

	Year Ended December 31,
	2015			2014			2013
Change in Fair Value Non-Hedging Interest Rate Derivatives:
Other income - derivative asset	$	1,030		$	6,811		$	(10,148	)
Other income - derivative liability	(1,190		)	(6,811		)	10,148
Change in Fair Value Hedging Interest Rate Derivatives:
Hedged item - derivative asset	$	25		—			—
Other income - derivative liability	12			—			—

Certain financial instruments, including derivatives, may be eligible for offset in the consolidated balance sheet and/or subject to master netting arrangements. The Company's derivative transactions with financial institution counterparties are generally executed under International Swaps and Derivative Association ("ISDA") master agreements which include "right of setoff" provisions. In such cases there is generally a legally enforceable right to offset recognized amounts and there may be an intention to settle such amounts on a net basis. Nonetheless, the Company does not generally offset financial instruments for financial reporting purposes. Information about financial instruments that are eligible for offset in the consolidated balance sheet as of December 31, 2015 is presented in the following tables (in thousands):

Gross Amounts

Not Offset in the Statement

of Financial Position

Total

of Gross

Amounts

Not Offset in

the Statement

of Financial

Position

Netting

Including

Gross

Net Amounts

Adjustment

Applicable

Amounts

of Assets

per

Netting

Gross

Offset in the

presented in

Applicable

Agreement

Amounts of

Statement of

the Statement

Master

Fair Value

and Fair

Recognized

Financial

of Financial

Netting

of Financial

Value of

Description

Assets

Position

Position

Arrangements

Collateral

Collateral

Net Amount

(a)

(b)

(c)=(a)-(b)

(d)

(c)-(d)

Non-hedging derivative assets:

Interest rate swap agreements

$

10,811

$

—

$

10,811

$

—

$

10,811

$

10,811

$

—

Gross Amounts

Not Offset in the Statement

of Financial Position

Total

of Gross

Amounts

Not Offset in

the Statement

of Financial

Position

Netting

Including

Gross

Net Amounts

Adjustment

Applicable

Amounts

of Liabilities

per

Netting

Gross

Offset in the

presented in

Applicable

Agreement

Amounts of

Statement of

the Statement

Master

Fair Value

and Fair

Recognized

Financial

of Financial

Netting

of Financial

Value of

Description

Liabilities

Position

Position

Arrangements

Collateral

Collateral

Net Amount

(a)

(b)

(c)=(a)-(b)

(d)

(c)-(d)*

Non-hedging derivative liabilities:

Interest rate swap agreements

$

10,872

$

—

$

10,872

$

—

$

17,371

$

17,371

$

—

Hedging derivative liabilities:

Interest rate swap agreements

$

61

$

—

$

61

$

—

$

97

$

97

$

—

* For instances where the fair value of financial collateral meets or exceeds the amounts presented in the Statement of Financial Position, a value of zero is displayed to represent full collateraliztion.

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Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):

	2015		2014
Deferred tax assets:
Previously securitized loans	$	4,337	$	4,703
Allowance for loan losses	7,412		7,413
Deferred compensation payable	4,058		3,966
Underfunded pension liability	2,792		3,113
Accrued expenses	1,789		2,451
Impaired assets	797		1,172
Impaired securities losses	6,719		8,377
Intangible assets	2,194		4,946
Other	3,964		3,292
Total Deferred Tax Assets	34,062		39,433
Deferred tax liabilities:
Unrealized securities gains	585		741
Other	3,503		1,926
Total Deferred Tax Liabilities	4,088		2,667
Net Deferred Tax Assets	$	29,974	$	36,766

No valuation allowance for deferred tax assets was recorded at December 31, 2015 and 2014 as the Company believes it is more likely than not that all of the deferred tax assets will be realized because they were supported by recoverable taxes paid in prior years.

Significant components of the provision for income taxes are as follows (in thousands): 

	2015		2014			2013
Current:
Federal	$	20,830	$	20,629		$	18,808
State	957		(943		)	1,781
Total current tax expense	21,787		19,686			20,589
Total deferred tax expense	6,627		4,585			4,686
Income tax expense	$	28,414	$	24,271		$	25,275

     A reconciliation of the significant differences between the federal statutory income tax rate and the Company’s effective income tax rate is as follows (in thousands):

	2015			2014			2013
Computed federal taxes at statutory rate	$	28,879		$	27,031		$	25,722
State income taxes, net of federal tax benefit	887			(482		)	1,982
Tax effects of:
Tax-exempt interest income	(498		)	(500		)	(616		)
Bank-owned life insurance	(1,181		)	(1,074		)	(1,187		)
Tax reserve adjustment	—			—			24
Other items, net	327			(704		)	(650		)
Income tax expense	$	28,414		$	24,271		$	25,275

The entire amount of the Company’s unrecognized tax benefits if recognized, would favorably affect the Company’s effective tax rate.   The Company anticipates that it will release $0.9 million over the next 12 months.  A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows (in thousands):

	2015			2014
Beginning balance	$	2,398		$	4,717
Additions for current year tax positions	299			486
Additions for prior year tax positions	377			—
Decreases for prior year tax positions	—			—
Decreases for settlements with tax authorities	—			—
Decreases related to lapse of applicable statute of limitation	(910		)	(2,805		)
Ending balance	$	2,164		$	2,398

Interest and penalties on income tax uncertainties are included in income tax expense.  During 2015, 2014 and 2013, the provision related to interest and penalties was $0.1 million, $0.1 million, and $0.1 million, respectively.  The balance of accrued interest and penalties at December 31, 2015 and 2014 was $0.4 million and $0.4 million, respectively.

The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and state taxing authorities for the years ended December 31, 2012 through 2014.

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Employee Benefit Plans

12 Months Ended

Dec. 31, 2015

Share-based Compensation [Abstract]

Employee Benefit Plans

EMPLOYEE BENEFIT PLANS

Pursuant to the terms of the City Holding Company 2003 Incentive Plan and the City Holding Company 2013 Incentive Plan (the "2003 Plan" and "2013 Plan", respectively), the Compensation Committee of the Board of Directors, or its delegate, may, from time-to-time, grant stock options, stock appreciation rights (“SARs”), or stock awards to employees, directors and individuals who provide service to the Company (collectively, "Plan Participants").  The 2003 Plan expired in April of 2013 and the 2013 Plan was approved by the shareholders in April 2013. A maximum of 750,000 shares of the Company’s common stock may be issued under the 2013 plan upon the exercise of stock options, SARs and stock awards, subject to certain limitations.  These limitations may be adjusted in the event of a change in the number of outstanding shares of common stock by reason of a stock dividend, stock split or other similar event.  Specific terms of options and SARs awarded, including vesting periods, exercise prices (stock price at date of grant) and expiration dates are determined at the date of grant and are evidenced by agreements between the Company and the awardee.  The exercise price of the option grants equals the market price of the Company’s stock on the date of grant.  All incentive stock options and SARs will be exercisable up to 10 years from the date granted and all options and SARs are exercisable for the period specified in the individual agreement.  As of December 31, 2015, under both Plans, 438,515 stock options and 242,996 stock awards are still outstanding.

Each award from the 2003 Plan and 2013 Plan is evidenced by an award agreement that specifies the option price, the duration of the option, the number of shares to which the option pertains, and such other provisions as the Compensation Committee, or its delegate, determines. The option price for each grant is equal to the fair market value of a share of the Company’s common stock on the date of the grant. Options granted expire at such time as the Compensation Committee, or its delegate, determines at the date of the grant and in no event does the exercise period exceed a maximum of ten years. Upon a change-in-control of the Company, as defined in the 2003 Plan and 2013 Plan, all outstanding options and awards shall immediately vest.

Certain stock options and restricted stock awards have performance-based vesting requirements. These shares will vest in three separate annual installments of approximately 33.33% per installment on the third, fourth and fifth anniversaries of the grant date, subject further to performance-based vesting requirements. The performance-based vesting requirements are as follows:

* First Installment – the mean return on average assets of the Company (excluding merger and acquisition expenses and other nonrecurring items as determined by the Board of Directors of the Company) of the three years immediately prior to the vesting date is equal to or exceeds the median return on average assets over the 20 year period immediately preceding the vesting date of all FDIC insured depository institutions.

* Second Installment – the mean return on average assets of the Company (excluding merger and acquisition expenses and other nonrecurring items as determined by the Board of Directors of the Company) of the four years immediately prior to the vesting date is equal to or exceeds the median return on average assets over the 20 year period immediately preceding the vesting date of all FDIC insured depository institutions.

* Third Installment – the mean return on average assets of the Company (excluding merger and acquisition expenses and other nonrecurring items as determined by the Board of Directors of the Company) of the five years immediately prior to the vesting date is equal to or exceeds the median return on average assets over the 20 year period immediately preceding the vesting date of all FDIC insured depository institutions.

Stock Options

A summary of the Company’s stock option activity and related information is presented below: 

	2015				2014				2013
	Options		Weighted-Average Exercise Price		Options		Weighted-Average Exercise Price		Options		Weighted-Average Exercise Price
Outstanding at January 1	167,554		$	36.74	173,601		$	35.26	289,544		$	34.38
Granted	12,961		46.41		13,953		44.43		15,475		37.74
Exercised	(81,500	)	36.63		(20,000	)	29.19		(126,168	)	33.57
Forfeited	(4,000	)	31.66		—		—		(5,250	)	34.56
Outstanding at December 31	95,015		38.38		167,554		36.74		173,601		35.26
Exercisable at end of year	19,750		$	34.54	89,750		$	36.73	76,832		$	37.97
Nonvested at beginning of year	77,804		36.76		96,769		33.10		105,960		33.81
Granted during the year	12,961		46.41		13,953		44.43		15,475		37.74
Vested during the year	(15,500	)	32.09		(32,918	)	29.25		(23,166	)	39.64
Forfeited during the year	—		—		—		—		(1,500	)	30.38
Nonvested at end of year	75,265		$	39.38	77,804		$	36.76	96,769		$	33.10

Additional information regarding the Company's stock options outstanding and exercisable at December 31, 2015, is provided in the following table:

Ranges of Exercise Prices	No. of Options Outstanding	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (Months)	Aggregate Intrinsic Value (in thousands)		No. of Options Currently Exercisable	Weighted-Average Exercise Price of Options Currently Exercisable		Weighted-Average Remaining Contractual Life (Months)	Aggregate Intrinsic Value of Options Currently Exercisable  (in thousands)
$ 25.00 - 29.99	1,250	$	28.15	3.3	$	22	1,250	$	28.15	3.3	$	22
30.00 - 34.99	11,500	31.38		3.7	164		11,500	31.38		3.7	164
35.00 - 39.99	48,351	36.04		6.2	464		—	—		—	—
40.00 - 44.99	20,953	43.24		6.3	50		7,000	40.88		2.3	33
45.00 - 50.00	12,961	46.61		9.2	—		—	—		—	—
	95,015				$	700	19,750				$	219

Proceeds from stock option exercises were $3.0 million in 2015, $0.6 million in 2014, and $4.2 million in 2013. Shares issued in connection with stock option exercises are issued from available treasury shares. If no treasury shares are available, new shares are issued from available authorized shares. During 2015, 2014 and 2013, all shares issued in connection with stock option exercises and restricted stock awards were issued from available treasury stock.

The total intrinsic value of stock options exercised was $0.9 million in 2015, $0.3 million in 2014 and $0.9 million in 2013.

Stock-based compensation expense related to stock options totaled $0.2 million for each of the years ended December 31, 2015, 2014 and 2013.  For the stock options that have performance-based criteria, management has evaluated those criteria and has determined that, as of December 31, 2015, the criteria were probable of being met. The total income tax benefit recognized in the accompanying consolidated statements of income related to stock-based compensation $0.3 million in 2015, less than $0.1 million in 2014, and $0.3 million in 2013.  Unrecognized stock-based compensation expense related to stock options approximated $0.4 million at December 31, 2015. At such date, the weighted-average period over which this unrecognized expense was expected to be recognized was 1.3 years.

The fair value of the options is estimated at the date of grant using a Black-Scholes option-pricing model.   The following weighted average assumptions were used to estimate the fair value of options granted by the Company:

	2015		2014		2013
Risk-free interest rate	1.95	%	2.42	%	1.88	%
Expected dividend yield	3.50	%	3.60	%	3.70	%
Volatility factor	45.40	%	48.75	%	41.35	%
Expected life of option	7.0 years		8.0 years		8.0 years

Restricted Shares

The Company measures compensation expense with respect to restricted shares in an amount equal to the fair value of the common stock covered by each award on the date of grant. The restricted shares awarded become fully vested after various periods of continued employment from the respective dates of grant. The Company is entitled to an income tax deduction in an amount equal to the taxable income reported by the holders of the restricted shares when the restrictions are released and the shares are issued. Compensation is  charged to expense over the respective vesting periods.

Restricted shares are generally forfeited if officers and employees terminate prior to the lapsing of restrictions. The Company records forfeitures of restricted stock as treasury share repurchases and any compensation cost previously recognized is reversed in the period of forfeiture.  Recipients of restricted shares do not pay any cash consideration to the Company for the shares, have the right to vote all shares subject to such grant and receive all dividends with respect to such shares, whether or not the shares have vested.  Stock-based compensation expense related to restricted shares was approximately $1.2 million for the year ended December 31, 2015, $1.0 million for year ended December 31, 2014, and $0.8 million for the year ended December 31, 2013.  For the restricted shares that have performance-based criteria, management has evaluated those criteria and has determined that, as of December 31, 2015, the criteria were probable of being met. Unrecognized stock-based compensation expense related to non-vested restricted shares was $2.9 million at December 31, 2015. At December 31, 2015, this unrecognized expense is expected to be recognized over 3.1 years based on the weighted average-life of the restricted shares.

A summary of the Company’s restricted shares activity and related information is presented below:

	2015				2014				2013
	Restricted Awards		Average Market Price at Grant		Restricted Awards		Average Market Price at Grant		Restricted Awards		Average Market Price at Grant
Outstanding at January 1	163,431				142,469				116,711
Granted	26,840		$	46.45	27,162		$	39.72	35,083		$	38.07
Forfeited/Vested	(17,350	)			(6,200	)			(9,325	)
Outstanding at December 31	172,921				163,431				142,469

401(k) Plan

The Company provides retirement benefits to its employees through the City Holding Company 401(k) Plan and Trust (“the 401(k) Plan”), which is intended to be compliant with Employee Retirement Income Security Act (ERISA) section 404(c). The Company’s total expense associated with the retirement benefit plan approximated $0.7 million in 2015, $0.8 million in 2014, and $0.8 million in 2013.  The total number of shares of the Company’s common stock held by the 401(k) Plan as of December 31, 2015 and 2014 is 291,736 and 303,443, respectively.

Defined Benefit Plans

The Company maintains two defined benefit pension plans (“the Defined Benefit Plans”), which were inherited from the Company's acquisition of the plan sponsors (Horizon Bancorp, Inc. and Community Financial Corporation). The Horizon Defined Benefit Plan was frozen in 1999 and maintains a December 31st year-end for purposes of computing its benefit obligations. The Community Defined Benefit Plan was frozen in 2012 and maintains a December 31st year-end for purposes of computing its benefit obligations.

Primarily as a result of the interest rate environment over the past several years and a revised mortality table issued in 2014, the benefit obligation exceeded the estimated fair value of plan assets as of December 31, 2015 and December 31, 2014. The Company has recorded a pension liability of $2.3 million and $6.7 million as of December 31, 2015 and 2014, included within Other Liabilities within the Consolidated Balance Sheets, and a $4.8 million and $5.3 million, net of tax, underfunded pension liability in Accumulated Other Comprehensive Income within Shareholders’ Equity at December 31, 2015 and 2014, respectively. The following table summarizes activity within the Company's Defined Benefit Plans (dollars in thousands):

	Pension Benefits
	2015			2014
Change in fair value of plan assets:
Fair value at beginning of measurement period	$	14,667		$	14,726
Actual (loss) gain on plan assets	(231		)	496
Contributions	4,399			409
Benefits paid	(1,400		)	(964		)
Fair value at end of measurement period	17,435			14,667
Change in benefit obligation:
Benefit obligation at beginning of measurement period	(21,390		)	(17,524		)
Interest cost	(813		)	(836		)
Actuarial gain (loss)	1,103			(3,994		)
Benefits paid	1,400			964
Benefit obligation at end of measurement period	(19,700		)	(21,390		)
Funded status	$	(2,265	)	$	(6,723	)
Weighted-average assumptions for balance sheet liability at end of year:
Discount rate	4.26		%	3.93		%
Expected long-term rate of return	5.75		%	6.92		%
Weighted-average assumptions for benefit cost at beginning of year:
Discount rate	3.93		%	4.89		%
Expected long-term rate of return	6.92		%	7.35		%

During the year ended December 31, 2015, the Company made contributions totaling $4.4 million to the Horizon Defined Benefit Plan. Based on these payments, the Company anticipates making no contributions to the plan for the year ending December 31, 2016. Based on the funding status of the Community Defined Benefit plan, no contributions were required during the year ended December 31, 2015 and no contributions are anticipated being required for the year ending December 31, 2016.

The following table presents the components of the net periodic pension cost of the Company's Defined Benefit Plans (in thousands):

	2015			2014			2013
Components of net periodic benefit:
Interest cost	$	813		$	836		$	776
Expected return on plan assets	(937		)	(1,032		)	(979		)
Net amortization and deferral	960			696			1,106
Net Periodic Pension Cost	$	836		$	500		$	903

Amounts related to the Company's Defined Benefit Pension Plans recognized as a component of other comprehensive income were as follows (in thousands):

	2015			2014			2013
Net actuarial gain (loss)	$	910		$	(3,906	)	$	3,469
Deferred tax (expense) benefit	(320		)	1,436			(1,332		)
Other comprehensive income (loss), net of tax	$	590		$	(2,470	)	$	2,137

Amounts recognized as a component of accumulated other comprehensive loss as of December 31, 2015 and 2014 were as follows (in thousands):

	2015			2014
Net actuarial loss	$	7,552		$	8,463
Deferred tax benefit	(2,792		)	(3,113		)
Amounts included in accumulated other comprehensive loss, net of tax	$	4,760		$	5,350

The following table summarizes the expected benefits to be paid in each of the next five years and in the aggregate for the five years thereafter (in thousands):

Plan Year Ending December 31,	Expected Benefits to be Paid
2016	$	1,047
2017	1,144
2018	1,245
2019	1,100
2020	1,133
2021 through 2025	5,782

The major categories of assets in the Company’s Defined Benefit Plans as of year-end are presented in the following table (in thousands).  Assets are segregated by the level of the valuation inputs within the fair value hierarchy established by ASC Topic 820 utilized to measure fair value (See Note Twenty).

	Total		Level 1		Level 2		Level 3
2015
Cash and cash equivalents	$	1,441	$	1,441	$	—	$	—
Mutual funds	5,617		5,473		144
Investment funds	2,651		607		1,371		673
Common stocks	5,082		3,880		1,202		—
Mortgage-backed securities	288		—		288		—
Government and GSE bonds	1,313		—		1,313		—
Corporate Bonds	1,043		—		1,043		—
Total	$	17,435	$	11,401	$	5,361	$	673
2014
Cash and cash equivalents	$	959	$	959	$	—	$	—
Mutual funds	6,162		5,656		506		—
Investment funds	1,610		—		1,014		596
Common stocks	3,941		3,119		822		—
Mortgage-backed securities	53		—		53		—
Government and GSE bonds	1,171		—		1,171		—
Corporate Bonds	771		—		771		—
Total	$	14,667	$	9,734	$	4,337	$	596

Mutual funds include large value and fixed income funds.  Common stocks include investments in small to mid cap funds and large cap funds primarily located inside of the United States.  Common stocks also include funds invested in commercial real estate as well as international value funds.  Government and GSE bonds include U.S. Treasury notes with varying maturity dates.  Corporate bonds include taxable bonds issued by U.S. corporations.

Horizon Defined Benefit Plan (Investment Strategy)

The Horizon Defined Benefit Plan is administered by the West Virginia Bankers Association (“WVBA”) and all investment policies and strategies are established by the WVBA Pension Committee. The policy established by the Pension Committee is to invest assets per target allocations, as detailed in the table below. The assets are reallocated periodically to meet these target allocations. The investment policy is reviewed periodically, under the advisement of a certified investment advisor, to determine if the policy should be revised.

The overall investment return goal is to achieve a return greater than a blended mix of stated indices tailored to the same asset mix of the plan assets by 0.5%, after fees, over a rolling five years moving average basis. Allowable assets include cash equivalents, fixed income securities, equity securities, alternative investments, mutual funds, exchange-traded funds, managed separate accounts, investment partnerships and commingled funds. Prohibited investments include, but are not limited to, private placements, limited partnerships, venture capital investments, direct investment in private real estate properties and residual remics. Unless explicitly authorized by the Pension Committee, the use of leverage or speculative use of derivatives is prohibited unless as part of an alternative asset program or as means for real asset managers to hedge investment risk or replicate investment positions at a lower cost than would otherwise be created in a cash market. Managers using derivatives must have systems in place to rigorously analyze and monitor duration, liquidity and counter-party credit risk in order to minimize the risk associated with the use of derivatives.

In order to achieve a prudent level of portfolio diversification, the securities of any one company are not to exceed more than 15% of the total plan assets, and no more than 25% of total plan assets are to be invested in any one industry (other than securities of the U.S. government or agencies thereof). Additionally, no more than 30% of plan assets shall be invested in foreign securities (both equity and fixed), if any. Exchange traded index funds are allowable investments and are not subject to these restrictions.

The expected long-term rate of return for the plan’s assets is based on the expected return of each of the categories, weighted based on the median of the target allocation for each class, noted in the table below. The target, allowable, and current allocation percentages of plan assets are as follows:

	Target Allocation 2015		Allowable- Allocation Range	Percentage of Plan Assets At December 31
				2015		2014
Equity securities	63	%	40-90%	51	%	53	%
Fixed income securities	15	%	10-40%	20	%	23	%
Cash and cash equivalents	2	%	3-10%	10	%	9	%
Alternative investments	20	%	0-25%	19	%	15	%
Total	100	%		100	%	100	%

Community Defined Benefit Plan (Investment Strategy)

The Community Defined Benefit Plan is administered by the Virginia Bankers Association ("VBA") and all investment polices are established by the Board of Directors of the VBA Benefits Corporation. The investment goal is to provide asset allocation models with varying degrees of investment return and risk consistent with each bank's funding objectives and participant demographics. The Board of Directors shall at least annually review the overall investment program, and each investment alternative, to ensure the current investment mix will achieve the goals of the Plan and participating banks.

The performance goal for the investments of the Plan is to exceed the investment benchmarks over the most recent three and five year periods while taking less risk than the market. Approved asset classes include equity securities, fixed income securities and cash equivalents.

Allocations to the equity and fixed income asset classes may vary within a range of + or - 5% of the noted Target, as detailed in the table below. The minimum and maximum allocations for each sub-asset class within the equity and fixed classes are equity to 50% and 150%, respectively, of its long-term strategy target allocation.

The expected long-term rate of return for the plan’s assets is based on the expected return of each of the categories, weighted based on the median of the target allocation for each class, noted in the table below. The target, allowable, and current allocation percentages of plan assets are as follows:

	Target Allocation 2015		Allowable- Allocation Range	Percentage of Plan Assets At December 31
				2015		2014
Equity securities	25	%	20%-30%	25	%	25	%
Fixed income securities	75	%	70%-80%	75	%	75	%
	100	%		100	%	100	%

Pentegra Defined Benefit Plan

In addition, the Company and its subsidiary participate in the Pentegra Defined Benefit Plan for Financial Institutions ("The Pentegra DB Plan"), a tax-qualified defined benefit pension plan. The Pentegra DB Plan's Employer Identification Number is 13-5645888 and the Plan Number is 333. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. There are no collective bargaining agreements in place that require contributions to the Pentegra DB Plan. The Pentegra DB Plan is a single plan under Internal Revenue Code Section 413(c) and, as a result, all of the assets stand behind all of the liabilities. Accordingly, under the Pentegra DB Plan, contributions made by a participating employer may be used to provide benefits to participants of other participating employers. The funded status as of July 1, 2015 (the latest available valuation report) was 104.86%. It is the policy of the Company to fund the normal cost of the Pentegra DB Plan on an annual basis.  Other than for normal plan expenses, no contributions were required for the years ended December 31, 2015, 2014 and 2013.  The benefits of the Pentegra DB Plan were frozen prior to the acquisition of Classic Bancshares in 2005, and it is the intention of the Company to fund benefit amounts when assets of the plan are sufficient.

Employment Contracts

The Company has entered into employment contracts with certain of its current executive officers. The employment contracts provide for, among other things, the payment of termination compensation in the event an executive officer either voluntarily or involuntarily terminates his employment with the Company for other than “Just Cause.” The cost of these benefits was previously accrued for each executive and is included in Other Liabilities within the Consolidated Balance Sheets. The liability was $2.0 million at both December 31, 2015 and 2014 and is fully vested, and therefore no charge to operations was incurred for the years ended December 31, 2015 and December 31, 2014.

Other Post-Retirement Benefit Plans

Certain entities previously acquired by the Company had entered into individual deferred compensation and supplemental retirement agreements with certain current and former directors and officers. The Company has assumed the liabilities associated with these agreements, the cost of which is being accrued over the period of active service from the date of the respective agreement. The cost of such agreements approximated $0.2 million during 2015, 2014, and 2013, respectively. The liability for such agreements approximated $6.5 million and $6.7 million at December 31, 2015 and December 31, 2014, respectively and is included within Other Liabilities in the accompanying Consolidated Balance Sheets.

To assist in funding the above liabilities, the acquired entities had insured the lives of certain current and former directors and officers. The Company is the current owner and beneficiary of insurance policies with a cash surrender value approximating $8.0 million and $7.8 million at December 31, 2015 and 2014, respectively, which is included in Other Assets in the accompanying Consolidated Balance Sheets.

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Related Party Transactions

12 Months Ended

Dec. 31, 2015

Related Party Transactions [Abstract]

Related Party Transactions

RELATED PARTY TRANSACTIONS

City National has granted loans to certain non-executive officers and directors of the Company and its subsidiaries, and to their associates totaling $14.2 million at December 31, 2015 and $4.5 million at December 31, 2014. The loans were made in the ordinary course of business and on substantially the same terms, including interest rates and collateral, as those prevailing at the same time for comparable transactions with third-party lending arrangements.  During 2015, total principal additions were $10.8 million and total principal reductions were $1.1 million.

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Commitments And Contingencies

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments And Contingencies

COMMITMENTS AND CONTINGENCIES

The Company is a party to certain financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers.  The Company has entered into agreements with its customers to extend credit or provide conditional commitment to provide payment on drafts presented in accordance with the terms of the underlying credit documents. The Company also provides overdraft protection to certain demand deposit customers that represent an unfunded commitment.  Overdraft protection commitments, which are included with other commitments below, are uncollateralized and are paid at the Company’s discretion.  Conditional commitments generally include standby and commercial letters of credit. Standby letters of credit represent an obligation of the Company to a designated third party contingent upon the failure of a customer of the Company to perform under the terms of the underlying contract between the customer and the third party. Commercial letters of credit are issued specifically to facilitate trade or commerce. Under the terms of a commercial letter of credit, drafts will be drawn when the underlying transaction is consummated, as intended, between the customer and a third party. The funded portion of these financial instruments is reflected in the Company’s balance sheet, while the unfunded portion of these commitments is not reflected in the balance sheet.  The table below presents a summary of the contractual obligations of the Company resulting from significant commitments (in thousands):

	December 31, 2015		December 31, 2014
Commitments to extend credit:
Home equity lines	$	183,017	$	175,312
Commercial real estate	84,672		50,298
Other commitments	177,491		145,283
Standby letters of credit	5,086		4,592
Commercial letters of credit	2,312		1,991

Loan commitments and standby and commercial letters of credit have credit risks essentially the same as that involved in extending loans to customers and are subject to the Company’s standard credit policies. Collateral is obtained based on management’s credit assessment of the customer. Management does not anticipate any material losses as a result of these commitments.

In addition, the Company is engaged in various legal actions that it deems to be in the ordinary course of business. As these legal actions are resolved, the Company could realize positive and/or negative impact to its financial performance in the period in which these legal actions are ultimately decided. There can be no assurance that current actions will have immaterial results, either positive or negative, or that no material actions may be presented in the future.

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Preferred Stock

12 Months Ended

Dec. 31, 2015

Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]

Preferred Stock

PREFERRED STOCK

 The Company’s Board of Directors has the authority to issue preferred stock, and to the designation, preferences, rights, dividends and all other attributes of such preferred stock, without any vote or action by the shareholders.  As of December 31, 2015, no such shares were outstanding, nor were any expected to be issued.

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Regulatory Requirements And Capital Ratios

12 Months Ended

Dec. 31, 2015

Regulatory Capital Requirements [Abstract]

Regulatory Requirements And Capital Ratios

REGULATORY REQUIREMENTS AND CAPITAL RATIOS

The principal source of income and cash for City Holding (the “Parent Company”) is dividends from City National. Dividends paid by City National to the Parent Company are subject to certain legal and regulatory limitations. Generally, any dividends in amounts that exceed the earnings retained by City National in the current year plus retained net profits for the preceding two years must be approved by regulatory authorities. Approval is also required if dividends declared would cause City National’s regulatory capital to fall below specified minimum levels.  At December 31, 2015, City National could pay dividends up to $18.2 million without prior regulatory permission.

During 2015, the Parent Company used cash obtained from the dividends received primarily to: (1) pay common dividends to shareholders, (2) remit interest payments on the Company’s junior subordinated debentures and (3) fund common stock repurchases for treasury. As of December 31, 2015, the Parent Company reported a cash balance of approximately $46.7 million.  Management believes that the Parent Company’s available cash balance, together with cash dividends from City National, is adequate to satisfy its funding and cash needs in 2016.

In July 2013, the Federal Reserve published the final rules that established a new comprehensive capital framework for banking organizations, commonly referred to as Basel III. These final rules substantially revised the risk-based capital requirements applicable to bank holding companies and depository institutions. The final rule became effective January 1, 2015 for smaller, non-complex banking organizations with full implementation by January 1, 2019.

Regulatory guidelines require the Company to maintain a minimum common equity Tier 1 ("CET 1") capital ratio of 4.5% and a total capital to risk-adjusted assets ratio of 8.0%, with at least one-half of capital consisting of tangible common stockholders’ equity and a minimum Tier 1 leverage ratio of 6.0%. Similarly, City National is also required to maintain minimum capital levels as set forth by various regulatory agencies. Under capital adequacy guidelines, City National is required to maintain minimum CET 1, total capital, Tier 1 capital, and leverage ratios of 4.5%, 8.0%, 6.0%, and 4.0%, respectively. To be classified as “well capitalized,” City National must maintain CET 1, total capital, Tier 1 capital, and leverage ratios of 6.5%, 10.0%, 8.0%, and 5.0%, respectively.

When fully phased in on January 1, 2019, the Basel III Capital Rules will require City Holding and City National to maintain (i) a minimum ratio of CET 1 to risk-weighted assets of at least 4.5%, plus a 2.5% "capital conservation buffer" (which is added to the 4.5% CET 1 ratio as that buffer is phased in, effectively resulting in a minimum ratio of CET 1 to risk-weighted assets of at least 7.0% upon full implementation), (ii) a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the capital conservation buffer (which is added to the 6.0% Tier 1 capital ratio as that buffer is phased in, effectively resulting in a minimum Tier 1 capital ratio of 8.5% upon full implementation), (iii) a minimum ratio of Total capital (that is, Tier 1 plus Tier 2) to risk-weighted assets of at least 8.0%, plus the capital conservation buffer (which is added to the 8.0% total capital ratio as that buffer is phased in, effectively resulting in a minimum total capital ratio of 10.5% upon full implementation) and (iv) a minimum leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to average assets (as compared to a current minimum leverage ratio of 3.0% for banking organizations that either have the highest supervisory rating or have implemented the appropriate federal regulatory authority's risk-adjusted measure for market risk).

The implementation of the capital conservation buffer will begin on January 1, 2016 at the 0.625% level and be phased in over a four-year period (increasing by that amount on each subsequent January 1, until it reaches 2.5% on January 1, 2019). The Basel III Capital Rules also provide for a “countercyclical capital buffer” that is applicable to only certain covered institutions and does not have any current applicability to City Holding Company or City National Bank.

The aforementioned capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of CET 1 capital to risk-weighted assets above the minimum but below the conservation buffer (or below the combined capital conservation buffer and countercyclical capital buffer, when the latter is applied) will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall.

The Company’s regulatory capital ratios for both City Holding and City National are illustrated in the following tables (in thousands):

December 31, 2015	Actual				Minimum Required - Basel III Phase-In Schedule				Minimum Required - Basel III Fully Phased-In (*)				Required to be Considered Well Capitalized
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
CET 1 Capital
City Holding Company	$	345,620	13.7	%	$	113,919	4.5	%	$	177,207	7.0	%	$	164,549	6.5	%
City National Bank	264,812		10.5	%	113,209		4.5	%	176,103		7.0	%	163,524		6.5	%
Tier 1 Capital
City Holding Company	361,620		14.3	%	151,891		6.0	%	215,180		8.5	%	202,522		8.0	%
City National Bank	288,752		11.5	%	150,945		6.0	%	213,839		8.5	%	201,260		8.0	%
Total Capital
City Holding Company	382,180		15.1	%	202,522		8.0	%	265,810		10.5	%	253,152		10.0	%
City National Bank	308,804		12.3	%	201,260		8.0	%	264,154		10.5	%	251,575		10.0	%
Tier 1 Leverage Ratio
City Holding Company	361,620		10.2	%	142,521		4.0	%	142,521		4.0	%	178,151		5.0	%
City National Bank	288,752		8.1	%	141,874		4.0	%	141,874		4.0	%	177,343		5.0	%
(*) Represents the minimum required capital levels as of January 1, 2019 when Basel III Capital Rules have been fully phased in.

December 31, 2014:	Actual				Minimum Required for Capital Adequacy Purposes				Required to be Considered Well Capitalized
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
Tier 1 Capital
City Holding Company	$	333,163	13.4	%	$	99,723	4.0	%	$	149,585	6.0	%
City National Bank	294,870		11.9	%	99,037		4.0	%	148,556		6.0	%
Total Capital
City Holding Company	353,873		14.2	%	199,446		8.0	%	249,308		10.0	%
City National Bank	315,095		12.7	%	198,074		8.0	%	247,593		10.0	%
Tier 1 Leverage Ratio
City Holding Company	333,163		9.9	%	134,721		4.0	%	168,402		5.0	%
City National Bank	294,870		8.8	%	133,991		4.0	%	167,489		5.0	%

As of December 31, 2015, management believes that City Holding Company, and its banking subsidiary, City National, were “well capitalized.” City Holding is subject to regulatory capital requirements administered by the Federal Reserve, while City National is subject to regulatory capital requirements administered by the Office of the Comptroller of the Currency (“OCC”) and the Federal Deposit Insurance Corporation (“FDIC”). Regulatory agencies can initiate certain mandatory actions if either City Holding or City National fails to meet the minimum capital requirements, as shown above. As of December 31, 2015, management believes that City Holding and City National meet all capital adequacy requirements.

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Fair Value Measurements

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  ASC Topic 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

Level 1: Quoted prices (unadjusted) or identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company bases fair value of assets and liabilities on quoted market prices, prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data.  If such information is not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters.  Valuation adjustments may be made to ensure that financial instruments are recorded at fair value.  These adjustments may include amounts to reflect counterparty credit quality and the Company’s creditworthiness, among other things, as well as unobservable parameters.  Any such valuation adjustments are applied consistently over time.  The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values.  While management believes the company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.  Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and therefore, estimates of fair value after the balance sheet date may differ significantly from the amount presented herein.  A more detailed description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. 

Financial Assets and Liabilities

The Company used the following methods and significant assumptions to estimate fair value for financial assets and liabilities measured on a recurring basis.

Securities Available for Sale.  Securities available for sale are reported at fair value utilizing Level 1, Level 2, and Level 3 inputs.  The fair value of securities available for sale is determined by utilizing a market approach by obtaining quoted prices on nationally recognized securities exchanges (other than forced or distressed transactions) that occur in sufficient volume or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities.  If such measurements are unavailable, the security is classified as Level 3.  Significant judgment is required to make this determination.

The Company utilizes a third party pricing service provider to value its Level 1 and Level 2 investment securities.  Annually, the Company obtains an independent auditor’s report from its third party pricing service provider regarding its controls over investment securities.  Although no control deficiencies were noted, the report did contain caveats and disclaimers regarding the pricing information, such as the Company should review fair values for reasonableness.  On a quarterly basis, the Company selects a sample of its debt securities and reprices those securities with a third party that is independent of the primary pricing service provider to verify the reasonableness of the fair values. In addition, the Company selects a sample of securities and reviews the underlying support from the primary pricing service provider.

The Company has determined that its pooled trust preferred securities are priced using Level 3 inputs in accordance with ASC Topic 820 and guidance issued by the SEC.  The Company has determined that there are few observable transactions and market quotations available for pooled trust preferred securities and they are not reliable for purposes of determining fair value of trust preferred securities held at December 31, 2015.  Due to these circumstances, the Company has elected to utilize an income valuation approach produced by a third party pricing source.  This third party model utilizes deferral and default probabilities for the underlying issuers, estimated prepayment rates and assumes no future recoveries of any defaults or deferrals.  The Company then compares the values provided by the third party model with other external sources.  At such time as there are observable transactions or quoted prices that are associated with an orderly and active market for pooled trust preferred securities, the Company will incorporate such market values in its estimate of fair values for these securities.

Derivatives.Derivatives are reported at fair value utilizing Level 2 inputs.  The Company utilizes a market approach by obtaining dealer quotations to value its customer interest rate swaps.  The Company’s derivatives are included within its Other Assets and Other Liabilities in the accompanying consolidated balance sheets. Derivative assets are typically secured through securities with financial counterparties or cross collateralization with a borrowing customer. Derivative liabilities are typically secured through the Company pledging securities to financial counterparties or, in the case of a borrowing customer, by the right of setoff. The Company considers such factors such as the likelihood of default by itself and its counterparties, right of setoff, and remaining maturities in determining the appropriate fair value adjustments. All derivative counterparties approved by the Company's Asset and Liability Committee ("ALCO") are regularly reviewed, and appropriate business action is taken to adjust the exposure to certain counterparties, if necessary. Counterparty exposure is evaluated by netting positions that are subject to master netting agreements, as well as considering the amount of marketable collateral securing the position. This approach used to estimate impacted exposures to counterparties is also used by the Company to estimate its own credit risk in derivative liability positions. To date, no material losses have been incurred due to a counterparty's inability to pay any undercollateralized position. There was no significant change in the value of derivative assets and liabilities attributed to credit risk during the year ended December 31, 2015.

The Company may be required, from time to time, to measure certain financial assets and financial liabilities at fair value on a nonrecurring basis.  Financial assets measured at fair value on a nonrecurring basis include impaired loans reported at the fair value of the underlying collateral if repayment is expected solely from the collateral.  Collateral values are estimated using Level 2 inputs based on observable market data for real estate collateral or Level 3 inputs for non-real estate collateral.  The following table presents the Company's assets and liabilities measured at fair value (in thousands):

	Total		Level 1		Level 2		Level 3		Total Gains (Losses)
December 31, 2015
Recurring fair value measurements
Financial Assets
U.S. Government agencies	$	5	$	—	$	5	$	—
Obligations of states and political subdivisions	50,697		—		50,697		—
Mortgage-backed securities:
U.S. Government agencies	288,197		—		288,197		—
Private label	1,231		—		1,231		—
Trust preferred securities	5,858		—		3,762		2,096
Corporate securities	18,693		—		18,693		—
Marketable equity securities	3,273		3,273		—		—
Investment funds	1,512		1,512		—		—
Derivative assets	10,811		—		10,811		—
Financial Liabilities
Derivative liabilities	10,933		—		10,933		—
Nonrecurring fair value measurements
Financial Assets
Impaired loans	$	8,482	$	—	$	—	$	8,482	$	—
Other real estate owned	6,518		—		—		6,518		(937		)
December 31, 2014
Recurring fair value measurements
Financial Assets
U.S. Government agencies	$	1,827	$	—	$	1,827	$	—
Obligations of states and political subdivisions	42,096		—		42,096		—
Mortgage-backed securities:
U.S. Government agencies	187,328		—		187,328		—
Private label	1,704		—		1,704		—
Trust preferred securities	9,036		—		7,165		1,871
Corporate securities	7,317		—		7,317		—
Marketable equity securities	3,213		3,213		—		—
Investment funds	1,522		1,522		—		—
Derivative assets	10,253		—		10,253		—
Financial Liabilities
Derivative liabilities	10,277		—		10,277		—
Nonrecurring fair value measurements
Financial Assets
Impaired loans	$	6,517	$	—	$	—	$	6,517	$	(153	)
Other real estate owned	8,179		—		—		8,179		(464		)

The table below presents a reconcilement of the Company’s financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands): 

	December 31,
	2015		2014
Beginning balance	$	1,871	$	3,887
Impairment losses on investment securities	—		—
Included in other comprehensive income	225		(1,862		)
Dispositions	—		(154		)
Transfers into Level 3	—		—
Ending Balance	$	2,096	$	1,871

The Company utilizes a third party model to compute the present value of expected cash flows which considers the structure and term of each of the five respective pooled trust preferred securities and the financial condition of the underlying issuers.  Specifically, the third party model details interest rates, principal balances of note classes and underlying issuers, the timing and amount of interest and principal payments of the underlying issuers, and the allocation of the payments to the note classes. The current estimate of expected cash flows is based on the most recent trustee reports and any other relevant market information including announcements of interest payment deferrals or defaults of underlying trust preferred securities. For issuing banks that have defaulted, management generally assumes no recovery. For issuing banks that have deferred its interest payments, management excludes the collateral balance associated with these banks and assumes no recoveries of such collateral balance in the future. The exclusion of such issuing banks in a current deferral position is based on such bank experiencing a certain level of financial difficulty that raises doubt about its ability to satisfy its contractual debt obligation, and accordingly, the Company excludes the associated collateral balance from its estimate of expected cash flows. Other assumptions used in the estimate of expected cash flows include expected future default rates and prepayments. Specifically, the model assumes annual prepayments of 1.0% with 100% at maturity and assumes 150 basis points of additional annual defaults from banks that are currently not in default or deferral.  In addition, the model assumes no recoveries except for one trust preferred security which assumes that one of the banks currently deferring or in default will cure such positions.

The table below presents a reconcilement of the Company's financial assets and liabilities measured at fair value on a nonrecurring basis using significant unobservable inputs (Level 3), which solely relates to impaired loans that were remeasured and reported at fair value through a specific valuation allowance allocation of the allowance for loan losses based upon the fair value of the underlying collateral (in thousands).  The fair value of impaired loans is estimated using one of several methods, including collateral value, liquidation value and discounted cash flows.  The significant unobservable inputs used in the fair value measurement of collateral for collateral-dependent impaired loans primarily relate to discounts applied to the customers’ reported amount of collateral.  The amount of collateral discount depends upon the marketability of the underlying collateral.  During December 31, 2015 and 2014, collateral discounts ranged from 20% to 30%. During December 31, 2015 and 2014, the Company had no Level 2 financial assets and liabilities that were measured on a nonrecurring basis.

	Year ended December 31,
	2015			2014
Beginning balance	$	6,517		$	11,714
Loans classified as impaired during the period	2,349			—
Specific valuation allowance allocations	—			—
	2,349			—
(Additional) reduction in specific valuation allowance allocations	252			628
Paydowns, payoffs, other activity	(636		)	(5,825		)
Ending balance	$	8,482		$	6,517

Non-Financial Assets and Liabilities

The Company has no non-financial assets or liabilities measured at fair value on a recurring basis.  Certain non-financial assets measured at fair value on a non-recurring basis include other real estate owned (“OREO”), which is measured at the lower of cost or fair value, and goodwill and other intangible assets, which are measured at fair value and evaluated at least annually for impairment. The table below presents OREO that was remeasured and reported at fair value based on significant unobservable inputs (Level 3) (in thousands):

	2015			2014
Beginning Balance	$	8,179		$	8,470
OREO remeasured at initial recognition:
Carrying value of foreclosed assets prior to remeasurement	3,732			5,746
Charge-offs recognized in the allowance for loan losses	—			—
Fair value	3,732			5,746
OREO remeasured subsequent to initial recognition:
Carrying value of foreclosed assets prior to remeasurement	3,937			1,632
Fair value	3,000			1,168
Write-downs included in other non-interest expense	(937		)	(464		)
Acquired	—			—
Disposals	(4,456		)	(5,573		)
Ending Balance	$	6,518		$	8,179

Based on the Company's annual assessment for impairment in the recorded value of goodwill and indefinite lived intangible assets, no impairment was recorded during the years ended December 31, 2015 and 2014.

ASC Topic 825“Financial Instruments” as amended, requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value.  In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques.  Those techniques are significantly affected by the assumptions used, including discount rate and estimate of future cash flows.  In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument.  ASC Topic 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements.  Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The following methods and assumptions were used in estimating fair value for financial instruments:

Cash and cash equivalents: Due to their short-term nature, the carrying amounts reported in the Consolidated Balance Sheets approximate fair value.

Securities: The fair value of securities are generally based on quoted market prices or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities.

Other securities: It is not practicable to determine the fair value of the Company's other securities, which consist of FRB and FHLB stock, due to restrictions placed on its transferability.

Net loans:  The fair value of the loan portfolio is estimated by discounting the expected future cash flows using the current interest rates at which similar loans would be made to borrowers for the same remaining maturities. Loans were first segregated by type such as commercial, real estate and consumer, and were then further segmented into fixed, adjustable and variable rate categories. Expected future cash flows were projected based on contractual cash flows, adjusted for estimated prepayments.

Accrued interest receivable: The carrying amount of accrued interest receivable approximates fair value.

Deposits: The fair values of demand deposits (e.g., interest and noninterest-bearing checking, regular savings, and other money market demand accounts) are, by definition, equal to their carrying values. The fair values of time deposits were estimated using discounted cash flow analyses. The discount rates used were based on rates currently offered for deposits with similar remaining maturities. The fair values of the time deposit liabilities do not take into consideration the value of the Company’s long-term relationships with depositors, which may have significant value.

Short-term debt: Securities sold under agreements to repurchase and Federal Home Loan Bank advances represent borrowings with original maturities of less than 90 days. The carrying amount of borrowings under purchase agreements approximate their fair value.

Long-term debt: The fair value of long-term borrowings is estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements and market conditions of similar debt instruments.

Commitments and letters of credit: The fair values of commitments are estimated based on fees currently charged to enter into similar agreements, taking into consideration the remaining terms of the agreements and the counterparties’ credit standing.  The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date.  The amounts of fees currently charged on commitments and letters of credit are deemed insignificant, and therefore, the estimated fair values and carrying values have not been reflected in the following table.

The following table represents the estimates of fair value of financial instruments (in thousands). This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as noninterest-bearing demand, interest-bearing demand and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity.

	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
December 31, 2015
Assets:
Cash and cash equivalents	$	70,113	$	70,113	$	70,113	$	—	$	—
Securities available-for-sale	369,466		369,466		4,785		362,585		2,096
Securities held-to-maturity	88,937		90,810		—		90,810		—
Other securities	12,915		12,915		—		12,915		—
Net loans	2,843,283		2,843,973		—		—		2,843,973
Accrued interest receivable	7,432		7,432		7,432		—		—
Derivative assets	10,811		10,811		—		10,811		—
Liabilities:
Deposits	3,083,975		3,085,908		2,066,419		1,019,489		—
Short-term debt	154,869		154,872		—		154,872		—
Long-term debt	16,495		16,457		—		16,457		—
Derivative liabilities	10,933		10,933		—		10,933		—
December 31, 2014
Assets:
Cash and cash equivalents	$	148,228	$	148,228	$	148,228	$	—	$	—
Securities available-for-sale	254,043		254,043		4,735		247,437		1,871
Securities held-to-maturity	90,786		94,191		—		94,191		—
Other securities	9,857		9,857		—		9,857		—
Net loans	2,631,916		2,638,911		—		—		2,638,911
Accrued interest receivable	6,826		6,826		6,826		—		—
Derivative assets	10,253		10,253		—		10,253		—
Liabilities:
Deposits	2,872,787		2,879,126		1,846,124		1,033,002		—
Short-term debt	134,931		134,934		—		134,934		—
Long-term debt	16,495		16,464		—		16,464		—
Derivative liabilities	10,277		10,277		—		10,277		—

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City Holding Company (Parent Company Only) Financial Information

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

City Holding Company (Parent Company Only) Financial Information

CITY HOLDING COMPANY (PARENT COMPANY ONLY) FINANCIAL INFORMATION

Condensed Balance Sheets

The following table presents the condensed balance sheets of City Holding Company, parent company only (in thousands):

	December 31
	2015		2014
Assets
Cash	$	46,672	$	12,521
Securities available-for-sale	3,273		3,212
Investment in subsidiaries	388,201		380,348
Deferred tax assets, net	1,569		1,436
Fixed assets	8		9
Other assets	3,290		16,629
Total Assets	$	443,013	$	414,155
Liabilities
Junior subordinated debentures	$	16,495	$	16,495
Dividends payable	6,376		6,062
Accrued interest payable	30		26
Other liabilities	840		719
Total Liabilities	23,741		23,302
Total Shareholders’ Equity	419,272		390,853
Total Liabilities and Shareholders’ Equity	$	443,013	$	414,155

Junior subordinated debentures represent the Parent Company’s amounts owed to City Holding Capital Trust III.

Condensed Statements of Comprehensive Income

The following table presents the condensed statements of comprehensive income of City Holding Company, parent company only (in thousands):

	Year Ended December 31
	2015			2014			2013
Income
Dividends from subsidiaries	$	48,950		$	46,050		$	46,317
Investment securities gains	—			1,130			89
Other income	22			65			66
	48,972			47,245			46,472
Expenses
Interest expense	618			605			617
Other expenses	1,170			849			2,352
	1,788			1,454			2,969
Income Before Income Tax Benefit and Equity in Undistributed Net Income of Subsidiaries	47,184			45,791			43,503
Income tax benefit	(795		)	(231		)	(1,050		)
Income Before Equity in Undistributed Net Income of Subsidiaries	47,979			46,022			44,553
Equity in undistributed net income of subsidiaries	6,118			6,940			3,662
Net Income	$	54,097		$	52,962		$	48,215
Total Comprehensive Income	$	54,424		$	53,793		$	44,647

Condensed Statements of Cash Flows

The following table presents the condensed statements of cash flows of City Holding Company, parent company only (in thousands):

	Year Ended December 31
	2015			2014			2013
Operating Activities
Net income	$	54,097		$	52,962		$	48,215
Adjustments to reconcile net income to net cash provided by operating activities:
Realized investment securities gains	—			(1,130		)	(89		)
Amortization and accretion	—			—			5
Stock based compensation	3			199			205
Depreciation	1			1			1
Change in other assets	13,338			(16,110		)	1,656
Change in other liabilities	314			2,146			(236		)
Equity in undistributed net income	(6,118		)	(6,940		)	(3,662		)
Net Cash Provided by Operating Activities	61,635			31,128			46,095
Investing Activities
Proceeds from sales of available for sale securities	—			2,334			137
Return of capital	—			2,500			—
Acquisition of Community Financial Corporation	—			—			(12,708		)
Net Cash Used in Investing Activities	—			4,834			(12,571		)
Financing Activities
Dividends paid	(25,304		)	(24,487		)	(22,878		)
Purchases of treasury stock	(7,055		)	(27,957		)	—
Exercise of stock options	2,979			580			3,428
Exercise of warrants	1,896			—			—
Net Cash Used in Financing Activities	(27,484		)	(51,864		)	(19,450		)
Increase (decrease) in Cash and Cash Equivalents	34,151			(15,902		)	14,074
Cash and cash equivalents at beginning of year	12,521			28,423			14,349
Cash and Cash Equivalents at End of Year	$	46,672		$	12,521		$	28,423

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Summarized Quarterly Financial Information (Unaudited)

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Summarized Quarterly Financial Information (Unaudited)

SUMMARIZED QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

A summary of selected quarterly financial information is presented below (in thousands, except for per share data):

	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
2015
Interest income	$	32,364		$	31,720		$	30,768		$	32,222
Taxable equivalent adjustment	142			144			147			179
Interest income (FTE)	32,506			31,864			30,915			32,401
Interest expense	2,973			2,937			2,910			3,010
Net interest income	29,533			28,927			28,005			29,391
Provision for loan losses	888			2,836			451			2,813
Investment securities gains	14			2,116			—			—
Non-interest income	24,007			13,289			13,706			14,074
Non-interest expense	23,165			23,244			25,377			21,165
Income  before income tax expense	29,501			18,252			15,883			19,487
Income tax expense	11,367			6,125			5,129			5,793
Taxable equivalent adjustment	(142		)	(144		)	(147		)	(179		)
Net income available to common shareholders	$	17,992		$	11,983		$	10,607		$	13,515
Net earnings allocated to common  shareholders	$	17,783		$	11,849		$	10,487		$	13,362
Basic earnings  per common share	$	1.18		$	0.78		$	0.69		$	0.88
Diluted earnings per common share	1.17			0.78			0.69			0.88
Average common shares outstanding:
Basic	15,067			15,104			15,178			15,158
Diluted	15,149			15,127			15,198			15,175
2014
Interest income	$	33,018		$	31,828		$	32,438		$	32,282
Taxable equivalent adjustment	153			151			152			164
Interest income (FTE)	33,171			31,979			32,590			32,446
Interest expense	2,978			2,973			2,968			3,041
Net interest income	30,193			29,006			29,622			29,405
Provision for loan losses	1,363			435			1,872			384
Investment securities losses	83			818			71			184
Non-interest income	14,222			14,321			14,538			14,485
Non-interest expense	23,376			24,305			24,325			23,035
Income  before income tax expense	19,759			19,405			18,034			20,655
Income tax expense	5,803			6,497			6,010			5,961
Taxable equivalent adjustment	(153		)	(151		)	(152		)	(164		)
Net income available to common shareholders	$	13,803		$	12,757		$	11,872		$	14,530
Net earnings allocated to common  shareholders	$	13,663		$	12,626		$	11,746		$	14,374
Basic earnings  per common share	$	0.87		$	0.81		$	0.76		$	0.95

Diluted earnings per common share	0.86	0.80	0.76	0.95
Average common shares outstanding:
Basic	15,631	15,556	15,363	15,096
Diluted	15,796	15,706	15,445	15,182

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Earnings Per Share

12 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):

	For the Year Ended December 31,
	2015		2014		2013
Distributed earnings allocated to  common stock	$	25,212	$	23,984	$	23,100
Undistributed earnings allocated to common stock	28,272		28,416		24,678
Net earnings allocated to common shareholders	$	53,484	$	52,400	$	47,778
Average shares outstanding	15,123		15,403		15,564
Effect of dilutive securities:
Employee stock options and warrant outstanding	48		85		144
Shares for diluted earnings per share	15,171		15,488		15,708
Basic earnings per share	$	3.54	$	3.40	$	3.07
Diluted earnings per share	$	3.53	$	3.38	$	3.04

Options to purchase approximately 13,000 shares of common stock at an exercise price of $46.41 per share were outstanding during December 31, 2015, but were not included in the computation of diluted earnings per share because the options’ exercise price was greater than the average market price of the common shares and therefore, the effect would have been anti-dilutive. During the years ended December 31, 2014 and December 31, 2013, there were no anti-dilutive options outstanding.

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Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Accumulated Other Comprehensive Income

ACCUMULATED OTHER COMPREHENSIVE LOSS

The activity in accumulated other comprehensive loss is presented in the tables below (in thousands). All amounts are shown net of tax, which is calculated using a combined Federal and state income tax rate approximating 37%.

	Accumulated Other Comprehensive Loss
				Unrealized
				Gains (Losses) on
	Defined Benefit			Securities
	Pension Plans			Available-for-Sale			Total
Balance at December 31, 2013	$	(2,880	)	$	(2,110	)	$	(4,990	)
Other comprehensive income before reclassifications	(2,470		)	4,030			1,560
Amounts reclassified from other comprehensive loss	—			(729		)	(729		)
	(2,470		)	3,301			831
Balance at December 31, 2014	$	(5,350	)	$	1,191		$	(4,159	)
Other comprehensive income before reclassifications	590			1,081			1,671
Amounts reclassified from other comprehensive loss	—			(1,344		)	(1,344		)
	590			(263		)	327
Balance at December 31, 2015	$	(4,760	)	$	928		$	(3,832	)

	Amount reclassified from Other Comprehensive Loss									Affected line item
	December 31,									in the Statements
	2015			2014			2013			of Income
Securities available-for-sale:
Net securities (gains) losses reclassified into earnings	$	(2,130	)	$	(1,156	)	$	(764	)	Security gains (losses)
Related income tax expense	786			427			282			Income tax expense
Net effect on accumulated other comprehensive loss	$	(1,344	)	$	(729	)	$	(482	)

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Summary Of Significant Accounting And Reporting Policies (Policies)

12 Months Ended

Dec. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Significant Accounting and Reporting Policies

Summary of Significant Accounting and Reporting Policies: The accounting and reporting policies of City Holding Company and its subsidiaries (the “Company”) conform with U. S. generally accepted accounting principles and require management to make estimates and develop assumptions that affect the amounts reported in the financial statements and related footnotes. Actual results could differ from management’s estimates. The following is a summary of the more significant policies.

Principles Of Consolidation

Principles of Consolidation: The consolidated financial statements include the accounts of City Holding Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements.

The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity in conformity with U. S. generally accepted accounting principles. Voting interest entities are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. The Company consolidates voting interest entities in which it has all, or at least a majority of, the voting interest. As defined in applicable accounting standards, variable interest entities (VIEs) are entities that lack one or more of the characteristics of a voting interest entity. A controlling financial interest in an entity is present when an enterprise has a variable interest, or a combination of variable interests, that will absorb a majority of the entity’s expected losses, receive a majority of the entity’s expected residual returns, or both. The enterprise with a controlling financial interest, known as the primary beneficiary, consolidates the VIE. The Company’s wholly owned subsidiary, City Holding Capital Trust III, is a VIE for which the Company is not the primary beneficiary. Accordingly, the accounts of this entity are not included in the Company’s consolidated financial statements.

       Certain amounts in the financial statements have been reclassified. Such reclassifications had no impact on shareholders’ equity or net income for any period.

Cash and Due from Banks

Cash and Due from Banks: The Company considers cash, due from banks, and interest-bearing deposits in depository institutions as cash and cash equivalents.

Securities

Securities: Management determines the appropriate classification of securities at the time of purchase. If management has the intent and the Company has the ability at the time of purchase to hold debt securities to maturity, they are classified as investment securities held-to-maturity and are stated at amortized cost, adjusted for amortization of premiums and accretion of discounts. Debt securities which the Company may not hold to maturity are classified as investment securities available-for-sale along with the Company’s investment in equity securities. Securities available-for-sale are carried at fair value, with the unrealized gains and losses, net of tax, reported in comprehensive income. Securities classified as available-for-sale include securities that management intends to use as part of its asset/liability management strategy and that may be sold in response to changes in interest rates, resultant prepayment risk, and other factors.

       The Company utilizes a third party pricing service provider to value its investment portfolio.  Annually, the Company obtains an independent auditor’s report from its third party pricing service provider regarding its controls over valuation of investment securities.  Although an unqualified opinion regarding the design and operating effectiveness of controls was issued, the report did contain caveats and disclaimers regarding the pricing information, such as the Company should review market values for reasonableness.  On a quarterly basis, the Company selects a sample of its debt securities and reprices those securities with a third party that is independent of the primary pricing service provider to verify the reasonableness of the fair values.

       Also, on a quarterly basis, the Company performs a review of investment securities to determine if any unrealized losses are other than temporarily impaired.  Management considers the following, among other things, in its determination of the nature of the unrealized losses, (i) the length of time and the extent to which the fair value has been less than cost; (ii) the financial condition, capital strength, and near–term (12 months) prospects of the issuer, including any specific events which may influence the operations of the issuer such as changes in technology that may impair the earnings potential of the investment or the discontinuance of a segment of the business that may affect the future earnings potential; (iii) the historical volatility in the market value of the investment and/or the liquidity or illiquidity of the investment; (iv) adverse conditions specifically related to the security, an industry, or a geographic area; or (v) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.  The Company continues to actively monitor the market value of these investments along with the financial strength of the issuers behind these securities, as well as its entire investment portfolio.  Based on the market information available, the Company believes that (i) the declines in fair value are temporary, driven by fluctuations in the interest rate environment and not due to the credit worthiness of the issuers, (ii) the Company does not have the intent to sell any of the securities classified as available for sale, and (iii) it is more likely than not that the Company will not have to sell any such securities before recovery of cost.  The Company cannot guarantee that such securities will recover and if additional information becomes available in the future to suggest that the losses are other than temporary, the Company may need to record impairment charges in the future.

The specific identification method is used to determine the cost basis of securities sold. Certain investment securities that do not have readily determinable fair values and for which the Company does not exercise significant influence are carried at cost and classified as other investment securities on the Consolidated Balance Sheets.  These cost-method investments are reviewed for impairment at least annually or sooner if events or changes in circumstances indicate the carrying value may not be recoverable.

Loans

Loans: Loans, excluding previously securitized loans, which are discussed separately below, are reported at the principal amount outstanding, net of unearned income.  Portfolio loans include those for which management has the intent and City has the ability to hold for the foreseeable future, or until maturity or payoff.  The foreseeable future is based upon management’s judgment of current business strategies and market conditions, the type of loan, asset/liability management, and liquidity.

       Interest income on loans is accrued and credited to operations based upon the principal amount outstanding, using methods that generally result in level rates of return. Loan origination fees, and certain direct costs, are deferred and amortized as an adjustment to the yield over the term of the loan. The accrual of interest income generally is discontinued when a loan becomes 90 days past due as to principal or interest for all loan types.  However, any loan may be placed on non-accrual if the Company receives information that indicates that it is probable a borrower will be unable to meet the contractual terms of their respective loan agreement. Other indicators considered for placing a loan on non-accrual status include the borrower’s involvement in bankruptcies, foreclosures, repossessions, litigation and any other situation resulting in doubt as to whether full collection of contractual principal and interest is attainable. When interest accruals are discontinued, unpaid interest recognized in income in the current year is reversed, and interest accrued in prior years is charged to the allowance for loan losses. Management may elect to continue the accrual of interest when the estimated net realizable value of collateral exceeds the principal balance and related accrued interest, and the loan is in process of collection.

Generally for all loan classes, interest income during the period the loan is non-performing is recorded on a cash basis after recovery of principal is reasonably assured. Cash payments received on nonperforming loans are typically applied directly against the outstanding principal balance until the loan is fully repaid. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt.

Generally, all loan types are considered past due when the contractual terms of a loan are not met and the borrower is 30 days or more past due on a payment.  Furthermore, residential and home equity loans are generally subject to charge-off when the loan becomes 120 days past due, depending on the estimated fair value of the collateral less cost to dispose, versus the outstanding loan balance. Commercial loans are generally charged off when the loan becomes 120 days past due and consumer loans are generally charged off when the loan becomes 120 days past due.

Previously Securitized Loans

Previously Securitized Loans: Previously securitized loans represent the carrying value of loans beneficially owned by the Company as a result of exercising its early redemption option during 2003 and 2004 to fully redeem the obligations owed to investors (“notes”) in certain of the Company’s securitization transactions. The loans were recorded at the lower of fair value or their carrying values, which was the carrying value of the related retained interest asset underlying the securitization plus amounts remitted by the Company to the note holders to redeem the notes. Because the carrying value of the retained interests incorporated assumptions with regard to expected prepayment and default rates on the loans and also considered the expected timing and amount of cash flows to be received by the Company, the carrying value of the retained interests and the carrying value of the loans was less than the actual outstanding balance of the loans. Effective January 1, 2012, the carrying value of the remaining previously securitized loans was reduced to zero and any cash received on these loans is recorded as interest income in the period that it is received.

Allowance for Loan Losses

Allowance for Loan Losses: The allowance for loan losses is maintained at a level that represents management’s best estimate of probable losses in the loan portfolio. Management’s determination of the appropriateness of the allowance for loan losses is based upon an evaluation of individual credits in the loan portfolio, historical loan loss experience, current economic conditions, and other relevant factors. This determination is inherently subjective, as it requires material estimates including the amounts and timing of future cash flows expected to be received on impaired loans that may be susceptible to significant change. These evaluations are conducted at least quarterly and more frequently if deemed necessary.  The allowance for loan losses related to loans considered to be impaired is generally evaluated based on the discounted cash flows using the impaired loan’s initial effective interest rate or the fair value of the collateral for certain collateral dependent loans. Loan losses are charged against the allowance and recoveries of amounts previously charged off are credited to the allowance. A provision for loan losses is charged to operations based on management’s periodic evaluation of the appropriateness of the allowance after considering factors noted above, among others.

In evaluating the appropriateness of its allowance for loan losses, the Company stratifies the loan portfolio into six major groupings, including commercial real estate, commercial and industrial, residential real estate, home equity, and others. Historical loss experience, as adjusted, is applied to the then outstanding balance of loans in each classification to estimate probable losses inherent in each segment of the portfolio. Historical loss experience is adjusted using a systematic weighted probability of potential risk factors that could result in actual losses deviating from prior loss experience. Risk factors considered by the Company in completing this analysis include: (1) unemployment and economic trends in the Company’s markets, (2) concentrations of credit, if any, among any industries, (3) trends in loan growth, loan mix, delinquencies, losses or credit impairment, (4) adherence to lending policies and others. Each risk factor is designated as low, moderate/increasing, or high based on the Company’s assessment of the risk to loss associated with each factor. Each risk factor is then weighted to consider probability of occurrence.

Additionally, all commercial loans within the portfolio are subject to internal risk grading. Risk grades are generally assigned by the primary lending officer and are periodically evaluated by the Company’s internal loan review process. Based on an individual loan’s risk grade, estimated loss percentages are applied to the outstanding balance of the loan to determine the amount of probable loss.

Premises and Equipment

Premises and Equipment: Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed primarily by the straight-line method over the estimated useful lives of the assets. Depreciation of leasehold improvements is computed using the straight-line method over the lesser of the term of the respective lease or the estimated useful life of the respective asset. Maintenance and repairs are charged to expense as incurred, while improvements that extend the useful life of premises and equipment are capitalized and depreciated over the estimated remaining life of the asset.

Other Real Estate Owned

Other Real Estate Owned:  Other real estate owned (“OREO”) is comprised principally of commercial and residential real estate properties obtained in partial or total satisfaction of loan obligations.  OREO acquired in settlement of indebtedness is included in Other Assets at the lower of estimated fair value of the asset, less estimated selling costs or the carrying amount of the loan.  Changes to the value subsequent to transfer are recorded in non-interest expense, along with direct operating expenses.  Gains or losses not previously recognized from sales of OREO are recognized in non-interest expense on the date of the sale. 

Goodwill and Other Intangible Assets

Goodwill and OtherIntangible Assets: Goodwill is the excess of the cost of an acquisition over the fair value of tangible and intangible assets acquired.  Goodwill is not amortized.  Intangible assets represent purchased assets that also lack physical substance, but can be separately distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset or liability.  Intangible assets with determinable useful lives, such as core deposits, are amortized over their estimated useful lives.

The Company performs an annual review for impairment in the recorded value of goodwill and indefinite lived intangible assets. Goodwill is tested for impairment between the annual tests if an event occurs or circumstances change that more than likely reduce the fair value of a reporting unit below its carrying value. An indefinite-lived intangible asset is tested for impairment between the annual tests if an event occurs or circumstances change indicating that the asset might be impaired.

Securities Sold Under Agreements to Repurchase

Securities Sold Under Agreements to Repurchase:  Securities sold under agreements to repurchase are accounted for as collateralized financing transactions and are recorded at the amounts at which the securities were sold plus accrued interest.  Securities sold primarily consists of U.S. government, federal agency, and municipal securities pledged as collateral under these financing arrangements and cannot be repledged or sold, unless replaced by the secured party.

Insurance Commissions

Insurance Commissions:  Commission revenue was recognized as of the effective date of the insurance policy or the date the customer was billed, whichever was later.  The Company also received contingent commissions from insurance companies as additional incentive for achieving specified premium volume goals and/or the loss experience of the insurance placed by the Company.  The Company maintained a reserve for commission adjustments based on estimated policy cancellations.

Derivative Financial Instruments

Derivative Financial Instruments: The Company enters into derivative transactions principally to protect against the risk of adverse price or interest rate movements on the value of certain assets and liabilities and on future cash flows.  All derivative instruments are carried at fair value on the balance sheet. As of December 31, 2015 and 2014, the Company has derivative instruments not included in hedge relationships. These derivatives consist of interest rate swaps used for interest rate management purposes and derivatives executed with commercial banking customers to facilitate their interest rate management strategies. The change in the fair value of these derivative instruments is reflected in the statements of income

Trust Assets

Trust Assets:  Assets held in a fiduciary or agency capacity for customers are not included in the accompanying financial statements since such items are not assets of the Company.

Income Taxes

Income Taxes: The consolidated provision for income taxes is based upon reported income and expense. Deferred income taxes are provided for temporary differences between financial reporting and tax bases of assets and liabilities, computed using enacted tax rates. The Company files a consolidated income tax return. The respective subsidiaries generally provide for income taxes on a separate return basis and remit amounts determined to be currently payable to the Parent Company.

The Company and its subsidiaries are subject to examinations and challenges from federal and state taxing authorities regarding positions taken in returns.  Uncertain tax positions are initially recognized in the consolidated financial statements when it is more likely than not the position will be sustained upon examination.  These positions are initially and subsequently measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the taxing authority and assuming full knowledge of the position and all relevant facts by the taxing authority.

The Company invests in certain limited partnerships that operate qualified low-income housing tax credit developments.  These investments are considered variable interest entities for which the Company is not the primary beneficiary.  The tax credits are reflected in the Consolidated Statements of Income as a reduction in income tax expense.  The unamortized amount of the investments is recorded within Other Assets within the Consolidated Balance Sheets.

Advertising Costs

Advertising Costs: Advertising costs are expensed as incurred.

Stock-Based Compensation

Stock-Based Compensation: Compensation expense related to stock options and restricted stock awards issued to employees is based upon the fair value of the award at the date of grant.  The fair value of stock options is estimated utilizing a Black Scholes pricing model, while the fair value of restricted stock awards is based upon the stock price at the date of grant.  Compensation expense is recognized on a straight line basis over the vesting period for options and the respective period for stock awards.

Basic and Diluted Earnings per Common Share

Basic and Diluted Earnings per Common Share: Basic earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding, excluding participating securities. Diluted earnings per share is computed by dividing net income by the weighted-average number of shares outstanding, excluding participating securities, increased by the number of shares of common stock which would be issued assuming the exercise of stock options and other common stock equivalents.

Recent Accounting Pronouncements

Recent Accounting Pronouncements: In January 2014, the FASB issued ASU No. 2014-04, "Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure." This ASU clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through similar legal agreement. Additionally, the amendments require interim and annual disclosures of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. This ASU became effective for the Company on January 1, 2015. The adoption of ASU 2014-04 did not have a material impact on the Company's financial statements.

In April 2014, the FASB issued ASU No. 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." This ASU changes the requirements for reporting discontinued operations. A disposal of a component or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations when certain criteria are met. Additional disclosures are also required for disposals that meet the criteria to be reported in discontinued operations. The Company elected to early adopt this ASU for the year ended December 31, 2014 relating to the sale of CityInsurance. The adoption of ASU 2014-08 did not have a material impact on the Company's financial statements.

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The core principle will be achieved using a five step process. In August 2015 the FASB issued Accounting Standards Update 2015-14, "Revenue from Contracts with Customers (Topic 606)," which amends the effective date for the Company from January 1, 2017 to January 1, 2018. The adoption of this standard is not expected to have a material impact on the Company's financial statements.

In June 2014, the FASB issued ASU No. 2014-11, "Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures." The amendments in this update require two accounting changes. First, the amendments in this update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. Second, for repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counter-party, which will result in secured borrowing accounting for the repurchase agreement. This update also requires certain disclosures for these types of transactions. This ASU became effective for the Company on January 1, 2015. The adoption of ASU 2014-11 did not have a material impact on the Company's financial statements.

In June 2014, the FASB issued ASU No. 2014-12, "Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period." The amendments in this update require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Performance targets should not be reflected in estimating the grant date fair value of the award, but compensation cost should be recognized in the period for which the requisite service has already been rendered. This ASU will become effective for the Company on January 1, 2016, with early adoption permitted. The adoption of ASU 2014-12 is not expected to have a material impact on the Company's financial statements.

In August 2014, the FASB issued ASU No. 2014-14, "Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure." The amendments in this update require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if certain conditions are met. This ASU became effective for the Company on January 1, 2015. The adoption of ASU 2014-14 did not have a material impact on the Company's financial statements.

In February 2015, the FASB issued ASU No. 2015-02, "Consolidation (Topic 810) - Amendments to the Consolidation Analysis." ASU 2015-02 eliminates the deferral of FAS 167 and makes changes to both the variable interest model and the voting model. This ASU will become effective for the Company on January 1, 2016. The adoption of ASU 2015-02 is not expected to have a material impact on the Company's financial statements.

In April 2015, the FASB issued ASU No. 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU will become effective for the Company on January 1, 2016. The adoption of ASU 2015-03 is not expected to have a material impact on the Company's financial statements.

In April 2015, the FASB issued ASU No. 2015-05, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement." ASU 2015-05 provides guidance to clarify the customer’s accounting for fees paid in a cloud computing arrangement. This ASU will become effective for the Company on January 1, 2016. The adoption of ASU 2015-05 is not expected to have a material impact on the Company's financial statements.

In May 2015, the FASB issued ASU No. 2015-07, "Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)." ASU 2015-07 removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. This ASU will become effective for the Company on January 1, 2016. The adoption of ASU 2015-07 is not expected to have a material impact on the Company's financial statements.

In September 2015, the FASB issued ASU No. 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments." The amendments in ASU 2015-16 require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The effect on earnings of the adjustments as a result of the change to the provisional amounts will be calculated as if the accounting had been completed at the acquisition date. The amount that would've been recorded in the previous reporting periods will be presented separately on the face of the income statement or disclosed in the notes to the financial statements. This ASU will become effective for the Company on January 1, 2016. The adoption of ASU 2015-16 is not expected to have a material impact on the Company's financial statements.

In November 2015, the FASB issued ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes." This standard requires that deferred tax liabilities and assets be classified as non-current on the balance sheet. This ASU will become effective for the Company for interim and annual periods on January 1, 2017 and early adoption is permitted. The adoption of ASU No. 2015-17 is not expected to have a material impact on the Company's financial statements.

In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." This standard makes several modifications to Subtopic 825-10 including the elimination of the available-for-sale classification of equity investments, and requires equity investments with readily determinable fair values to be measured at fair value with changes in fair value recognized in net income. This ASU will become effective for the Company for interim and annual periods on January 1, 2018.

Statements of Cash Flows

Statements of Cash Flows: Cash paid for interest, including interest paid on long-term debt and trust preferred securities, was $11.8 million, $12.1 million, and $13.4 million in 2015, 2014, and 2013, respectively. During 2015, 2014 and 2013, the Company paid $26.3 million, $23.0 million, and $16.6 million, respectively, for income taxes.

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Acquisitions (Tables)

12 Months Ended

Dec. 31, 2015

Business Combinations [Abstract]

Acquired Loans At Acquisition

Outstanding balance	$	119,242
Less: fair value adjustment	(1,763		)
Fair value of acquired noncredit-impaired loans	$	117,479

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Investments (Tables)

12 Months Ended

Dec. 31, 2015

Investments [Abstract]

Aggregate Carrying And Approximate Market Values Of Available-For-Sale Securities

	December 31, 2015								December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Securities available-for-sale:
U.S. Treasuries and U.S.
government agencies	$	5	$	—	$	—	$	5	$	1,816	$	11	$	—	$	1,827
Obligations of states and
political subdivisions	49,725		979		7		50,697		41,382		722		8		42,096
Mortgage-backed securities:
U.S. government agencies	287,933		2,285		2,021		288,197		185,831		3,470		1,973		187,328
Private label	1,222		9		—		1,231		1,700		8		4		1,704
Trust preferred
securities	6,550		463		1,155		5,858		9,763		425		1,152		9,036
Corporate securities	18,793		221		321		18,693		7,806		204		693		7,317
Total Debt Securities	364,228		3,957		3,504		364,681		248,298		4,840		3,830		249,308
Marketable equity  securities	2,131		1,142		—		3,273		2,131		1,082		—		3,213
Investment funds	1,525		—		13		1,512		1,525		—		3		1,522
Total Securities
Available-for-Sale	$	367,884	$	5,099	$	3,517	$	369,466	$	251,954	$	5,922	$	3,833	$	254,043

Aggregate Carrying And Approximate Market Values Of Held-To-Maturity Securities

	December 31, 2015								December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Securities held-to-maturity
U.S. government agencies	$	84,937	$	1,949	$	76	$	86,810	$	86,742	$	2,733	$	—	$	89,475
Trust preferred securities	4,000		—		—		4,000		4,044		672		—		4,716
Total Securities
Held-to-Maturity	$	88,937	$	1,949	$	76	$	90,810	$	90,786	$	3,405	$	—	$	94,191
Other investment securities:
Non-marketable equity securities	$	12,915	$	—	$	—	$	12,915	$	9,857	$	—	$	—	$	9,857
Total Other Investment
Securities	$	12,915	$	—	$	—	$	12,915	$	9,857	$	—	$	—	$	9,857

Gross Unrealized Losses And Fair Value Of Investments

The following table shows the gross unrealized losses and fair value of the Company’s investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):

	December 31, 2015
	Less Than Twelve Months				Twelve Months or Greater				Total
	Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss
Securities available-for-sale:
Obligations of states and political subdivisions	$	2,406	$	5	$	128	$	2	$	2,534	$	7
Mortgage-backed securities:
U.S. Government agencies	129,612		688		34,044		1,333		163,656		2,021
Private label	—		—		—		—		—		—
Trust preferred securities	—		—		4,769		1,155		4,769		1,155
Corporate securities	10,856		174		2,231		147		13,087		321
Investment funds	—		—		1,488		13		1,488		13
Total	$	142,874	$	867	$	42,660	$	2,650	$	185,534	$	3,517

	December 31, 2014
	Less Than Twelve Months				Twelve Months or Greater				Total
	Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss
Securities available-for-sale:
Obligations of states and political subdivisions	$	1,559	$	3	$	125	$	5	$	1,684	$	8
Mortgage-backed securities:
U.S. Government agencies	—		—		60,122		1,973		60,122		1,973
Private label	1,277		4		—		—		1,277		4
Trust preferred securities	—		—		4,760		1,152		4,760		1,152
Corporate securities	—		—		4,049		693		4,049		693
Investment funds	—		—		1,496		3		1,496		3
Total	$	2,836	$	7	$	70,552	$	3,826	$	73,388	$	3,833

Credit Loss Component Of OTTI On Debt Securities Recognized In Earnings

The following table presents a progression of the credit loss component of OTTI on debt and equity securities recognized in earnings during the years ended December 31, 2015 and 2014 (in thousands).  The credit loss component represents the difference between the present value of expected future cash flows and the amortized cost basis of the security.  The credit component of OTTI recognized in earnings during a period is presented in two parts based upon whether the credit impairment in the current period is the first time the security was credit impaired (initial credit impairment) or if there is additional credit impairment on a security that was credit impaired in previous periods.

	Debt Securities			Equity Securities			Total
Balance at January 1, 2014	$	20,186		$	4,698		$	24,884
Additions:
Additional credit impairment	—			—			—
Deductions:
Called or Sold	(3,600		)	(3,114		)	(6,714		)
Balance at December 31, 2014	16,586			1,584			18,170
Additions:
Additional credit impairment	—			—			—
Deductions:
Called or Sold	—			—			—
Balance at December 31, 2015	$	16,586		$	1,584		$	18,170

Amortized Cost And Estimated Fair Value Of Debt Securities By Contractual Maturity

The amortized cost and estimated fair value of debt securities at December 31, 2015, by contractual maturity, are shown in the following table (in thousands).  Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.  Mortgage-backed securities have been allocated to their respective maturity groupings based on their contractual maturity.

	Cost		Estimated Fair Value
Securities Available-for-Sale
Due in one year or less	$	2,716	$	2,740
Due after one year through five years	24,037		16,267
Due after five years through ten years	33,285		42,038
Due after ten years	304,190		303,636
	$	364,228	$	364,681
Securities Held-to-Maturity
Due in one year or less	$	—	$	—
Due after one year through five years	—		—
Due after five years through ten years	—		—
Due after ten years	88,937		90,810
	$	88,937	$	90,810

Gross Gains And Losses Realized

Gross gains and gross losses realized by the Company from investment security transactions are summarized in the table below (in thousands):

	For the year ended December 31,
	2015			2014			2013
Gross realized gains	$	2,142		$	1,256		$	764
Gross realized losses	(12		)	(100		)	—
Investment security gains (losses)	$	2,130		$	1,156		$	764

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Loans (Tables)

12 Months Ended

Dec. 31, 2015

Loans Receivable, Net [Abstract]

Summary Of Major Classifications For Loans

The following summarizes the Company’s major classifications for loans (in thousands):

	December 31, 2015			December 31, 2014
Residential real estate	$	1,383,133		$	1,294,576
Home equity	147,036			145,604
Commercial and industrial	165,887			140,548
Commercial real estate	1,127,827			1,028,831
Consumer	36,083			39,705
DDA overdrafts	3,361			2,802
Gross loans	2,863,327			2,652,066
Allowance for loan losses	(20,044		)	(20,150		)
Net loans	$	2,843,283		$	2,631,916

Loans Acquired

The following table details the loans acquired in conjunction with the Virginia Savings, Community and AFB acquisitions (in thousands):

	Virginia Savings		Community		AFB		Total
December 31, 2015
Outstanding loan balance	$	28,914	$	181,545	$	112,862	$	323,321
Credit-impaired loans:
Carrying value	1,707		12,899		—		14,606
Contractual principal and interest	1,965		16,362		—		18,327
December 31, 2014
Outstanding loan balance	$	38,345	$	219,923	$	—	$	258,268
Credit-impaired loans:
Carrying value	1,964		15,365		—		17,329
Contractual principal and interest	2,407		23,277		—		25,684

Activity For The Accretable Yield And Carrying Amount Of Loans

Changes in the accretable yield and the carrying amount of the credit-impaired loans for the year December 31, 2015 is as follows (in thousands):

	Virginia Savings						Community						Total
	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
Balance at the beginning of the period	$	428		$	1,964		$	9,906		$	15,365		$	10,334		$	17,329
Accretion	(188		)	188			(2,477		)	2,477			(2,665		)	2,665
Net reclassifications to accretable from non-accretable	185			—			918			—			1,103			—
Payments received, net	—			(445		)	—			(2,924		)	—			(3,369		)
Disposals	(51		)	—			(2,081		)	(2,019		)	(2,132		)	(2,019		)
Balance at the end of period	$	374		$	1,707		$	6,266		$	12,899		$	6,640		$	14,606

Increases in expected cash flow subsequent to the acquisition are recognized first as a reduction of any previous impairment, then prospectively through adjustment of the yield on the loans or pools over its remaining life, while decreases in expected cash flows are recognized as impairment through a provision for loan loss and an increase in the allowance for purchased credit-impaired loans.

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Allowance For Loan Losses (Tables)

12 Months Ended

Dec. 31, 2015

Receivables [Abstract]

Schedule Of Allowance For Loan Loss By Portfolio Segment

The following summarizes the activity in the allowance for loan loss, by portfolio segment (in thousands).  The following also presents the balance in the allowance for loan loss disaggregated on the basis of the Company’s impairment measurement method and the related recorded investment in loans, by portfolio segment (in thousands).

	Commercial and industrial			Commercial real estate			Residential real estate			Home equity			Consumer			DDA overdrafts			Total
December 31, 2015
Allowance for loan loss
Beginning balance	$	1,582		$	8,921		$	7,208		$	1,495		$	85		$	859		$	20,150
Charge-offs	(5,051		)	(580		)	(1,144		)	(312		)	(210		)	(1,414		)	(8,711		)
Recoveries	74			366			199			—			186			792			1,617
Provision	6,113			(929		)	515			280			36			420			6,435
Provision for acquired loans with deteriorated credit quality	553			—			—			—			—			—			553
Ending balance	$	3,271		$	7,778		$	6,778		$	1,463		$	97		$	657		$	20,044
December 31, 2014
Allowance for loan loss
Beginning balance	$	1,139		$	10,775		$	6,057		$	1,672		$	77		$	855		$	20,575
Charge-offs	(323		)	(1,925		)	(1,762		)	(309		)	(188		)	(1,415		)	(5,922		)

Recoveries	89		113			187		—		204			850		1,443
Provision	394		(42		)	2,726		132		(8		)	569		3,771
Provision for acquired loans with deteriorated credit quality	$	283	$	—		$	—	$	—	$	—		$	—	283
Ending balance	$	1,582	$	8,921		$	7,208	$	1,495	$	85		$	859	$	20,150
As of December 31, 2015
Allowance for loan loss
Evaluated for impairment:
Individually	$	—	$	—		$	—	$	—	$	—		$	—	$	—
Collectively	3,267		6,966			6,777		1,451		97			657		19,215
Acquired with deteriorated credit quality	4		812			1		12		—			—		829
Total	$	3,271	$	7,778		$	6,778	$	1,463	$	97		$	657	$	20,044
Loans
Evaluated for impairment:
Individually	$	2,349	$	5,399		$	437	$	297	$	—		$	—	$	8,482
Collectively	163,209		1,110,307			1,382,325		145,041		35,997			3,361		2,840,240
Acquired with deteriorated credit quality	329		12,121			371		1,698		86			—		14,605
Total	$	165,887	$	1,127,827		$	1,383,133	$	147,036	$	36,083		$	3,361	$	2,863,327
As of December 31, 2014
Allowance for loan loss
Evaluated for impairment:
Individually	$	—	$	252		$	—	$	—	$	—		$	—	$	252
Collectively	1,540		7,898			7,208		1,429		85			859		19,019
Acquired with deteriorated credit quality	42		771			—		66		—			—		879
Total	$	1,582	$	8,921		$	7,208	$	1,495	$	85		$	859	$	20,150
Loans
Evaluated for impairment:
Individually	$	—	$	6,023		$	449	$	297	$	—		$	—	$	6,769
Collectively	139,862		1,009,241			1,293,748		142,743		39,572			2,802		2,627,968
Acquired with deteriorated credit quality	686		13,567			379		2,564		133			—		17,329
Total	$	140,548	$	1,028,831		$	1,294,576	$	145,604	$	39,705		$	2,802	$	2,652,066

Schedule Of Credit Quality Indicators

The following table presents the Company's commercial loans by credit quality indicators, by class (in thousands):

	Commercial and industrial		Commercial real estate		Total
December 31, 2015
Pass	$	157,211	$	1,070,752	$	1,227,963
Special mention	4,099		20,942		25,041
Substandard	4,539		36,133		40,672
Doubtful	38		—		38
Total	$	165,887	$	1,127,827	$	1,293,714
December 31, 2014
Pass	$	128,812	$	970,585	$	1,099,397
Special mention	761		15,103		15,864
Substandard	10,575		42,691		53,266
Doubtful	400		452		852
Total	$	140,548	$	1,028,831	$	1,169,379

The following table presents the Company's non-commercial loans by payment performance, by class (in thousands):

	Performing		Non-Performing		Total
December 31, 2015
Residential real estate	$	1,382,715	$	418	$	1,383,133
Home equity	147,013		23		147,036
Consumer	36,049		34		36,083
DDA overdrafts	3,361		—		3,361
Total	$	1,569,138	$	475	$	1,569,613
December 31, 2014
Residential real estate	$	1,292,012	$	2,564	$	1,294,576
Home equity	145,506		98		145,604
Consumer	39,692		13		39,705
DDA overdrafts	2,802		—		2,802
Total	$	1,480,012	$	2,675	$	1,482,687

Schedule Of Aging Analysis Of Accruing And Non-Accruing Loans

The following presents an aging analysis of the Company’s accruing and non-accruing loans, by class (in thousands). The purchased credit-impaired loan column represents the purchased credit-impaired loans that the Company acquired that are contractually past due; however, are still performing in accordance with the Company's initial expectations.

	Originated Loans
	December 31, 2015
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	1,290,312	$	4,648	$	805	$	418	$	—	$	2,038	$	1,298,221
Home equity	142,697		306		65		22		—		136		143,226
Commercial and industrial	106,003		43		—		19		—		2,389		108,454
Commercial real estate	946,611		568		211		—		—		7,353		954,743
Consumer	31,894		71		2		34		—		—		32,001
DDA overdrafts	3,048		310		3		—		—		—		3,361
Total	$	2,520,565	$	5,946	$	1,086	$	493	$	—	$	11,916	$	2,540,006
	Acquired Loans
	December 31, 2015
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	83,292	$	613	$	127	$	—	$	—	$	880	$	84,912
Home equity	3,796		12		—		2		—		—		3,810
Commercial and industrial	56,979		98		—		—		—		356		57,433
Commercial real estate	168,588		194		—		—		506		3,796		173,084
Consumer	3,992		83		7		—		—		—		4,082
DDA overdrafts	—		—		—		—		—		—		—
Total	$	316,647	$	1,000	$	134	$	2	$	506	$	5,032	$	323,321
	Total Loans
	December 31, 2015
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	1,373,604	$	5,261	$	932	$	418	$	—	$	2,918	$	1,383,133
Home equity	146,493		318		65		24		—		136		147,036
Commercial and industrial	162,982		141		—		19		—		2,745		165,887
Commercial real estate	1,115,199		762		211		—		506		11,149		1,127,827
Consumer	35,886		154		9		34		—		—		36,083
DDA overdrafts	3,048		310		3		—		—		—		3,361
Total	$	2,837,212	$	6,946	$	1,220	$	495	$	506	$	16,948	$	2,863,327

	Originated Loans
	December 31, 2014
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	1,200,177	$	4,235	$	758	$	169	$	—	$	2,259	$	1,207,598
Home equity	142,624		561		155		30		—		68		143,438
Commercial and industrial	128,857		100		—		210		—		78		129,245
Commercial real estate	869,530		479		—		—		—		7,330		877,339
Consumer	33,178		119		78		1		—		—		33,376
DDA overdrafts	2,483		317		2		—		—		—		2,802
Total	$	2,376,849	$	5,811	$	993	$	410	$	—	$	9,735	$	2,393,798
	Acquired Loans
	December 31, 2014
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	86,129	$	714	$	—	$	—	$	—	$	135	$	86,978
Home equity	2,164		2		—		—		—		—		2,166
Commercial and industrial	10,123		143		—		—		—		1,037		11,303
Commercial real estate	144,721		892		210		—		1,270		4,399		151,492
Consumer	6,108		172		36		13		—		—		6,329
DDA overdrafts	—		—		—		—		—		—		—
Total	$	249,245	$	1,923	$	246	$	13	$	1,270	$	5,571	$	258,268
	Total Loans
	December 31, 2014
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	1,286,306	$	4,949	$	758	$	169	$	—	$	2,394	$	1,294,576
Home equity	144,788		563		155		30		—		68		145,604
Commercial and industrial	138,980		243		—		210		—		1,115		140,548
Commercial real estate	1,014,251		1,371		210		—		1,270		11,729		1,028,831
Consumer	39,286		291		114		14		—		—		39,705
DDA overdrafts	2,483		317		2		—		—		—		2,802
Total	$	2,626,094	$	7,734	$	1,239	$	423	$	1,270	$	15,306	$	2,652,066

Schedule Of Impaired Loans

The following presents the Company’s impaired loans, by class (in thousands):

	December 31, 2015						December 31, 2014
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
With no related allowance recorded:
Residential real estate	$	437	$	437	$	—	$	449	$	449	$	—
Home equity	297		297		—		297		297		—
Commercial and industrial	2,349		7,547		—		—		—		—
Commercial real estate	5,399		8,768		—		4,631		4,631		—
Consumer	—		—		—		—		—		—
DDA overdrafts	—		—		—		—		—		—
Total	$	8,482	$	17,049	$	—	$	5,377	$	5,377	$	—
With an allowance recorded
Residential real estate	$	—	$	—	$	—	$	—	$	—	$	—
Home equity	—		—		—		—		—		—
Commercial and industrial	—		—		—		—		—		—
Commercial real estate	—		—		—		1,392		1,392		252
Consumer	—		—		—		—		—		—
DDA overdrafts	—		—		—		—		—		—
Total	$	—	$	—	$	—	$	1,392	$	1,392	$	252

Schedule Of Information Related To Average Recorded Investment And Interest Income Recognized On Impaired Loans

The following table presents information related to the average recorded investment and interest income recognized on the Company’s impaired loans, by class (in thousands):

	For the year ended
	December 31, 2015				December 31, 2014
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
With no related allowance recorded:
Residential real estate	$	441	$	—	$	452	$	—
Home equity	296		—		297		—
Commercial and industrial	2,913		—		—		—
Commercial real estate	4,869		4		6,657		17
Consumer	—		—		—		—
DDA overdrafts	—		—		—		—
Total	$	8,519	$	4	$	7,406	$	17
With an allowance recorded
Residential real estate	$	—	$	—	$	—	$	—
Home equity	—		—		—		—
Commercial and industrial	—		—		—		—
Commercial real estate	1,012		—		1,725		128
Consumer	—		—		—		—
DDA overdrafts	—		—		—		—
Total	$	1,012	$	—	$	1,725	$	128

Schedule Of Troubled Debt Restructurings

The following tables set forth the Company’s TDRs (in thousands):

	December 31, 2015						December 31, 2014
			Non-						Non-
	Accruing		Accruing		Total		Accruing		Accruing		Total
Commercial and industrial	$	58	$	—	$	58	$	73	$	—	$	73
Commercial real estate	1,746		—		1,746		2,263		—		2,263
Residential real estate	17,796		191		17,987		17,946		545		18,491
Home equity	2,659		34		2,693		2,673		15		2,688
Consumer	—		—		—		—		—		—
	$	22,259	$	225	$	22,484	$	22,955	$	560	$	23,515

	New TDRs					New TDRs
	For the year ended					For the year ended
	December 31, 2015					December 31, 2014
		Pre		Post			Pre		Post
		Modification		Modification			Modification		Modification
		Outstanding		Outstanding			Outstanding		Outstanding
	Number of	Recorded		Recorded		Number of	Recorded		Recorded
	Contracts	Investment		Investment		Contracts	Investment		Investment
Commercial and industrial	—	$	—	$	—	—	$	—	$	—
Commercial real estate	—	—		—		1	428		428
Residential real estate	38	2,969		2,969		35	2,381		2,381
Home equity	13	361		361		10	211		211
Consumer	—	—		—		—	—		—
	51	$	3,330	$	3,330	46	$	3,020	$	3,020

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Premises And Equipment (Tables)

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

Summary Of Premises And Equipment

A summary of premises and equipment and related accumulated depreciation is summarized as follows (in thousands):

	Estimated Useful Life	2015			2014
Land		$	31,496		$	31,217
Buildings and improvements	10 to 30 yrs.	87,875			85,403
Equipment	3 to 7 yrs.	39,159			37,051
		158,530			153,671
Less: accumulated depreciation		(81,259		)	(75,683		)
		$	77,271		$	77,988

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Goodwill And Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The following table presents a roll forward of the Company's goodwill activity (in thousands):

	2015			2014
Beginning balance	$	71,401		$	71,401
Goodwill reduction in conjunction with sale of CityInsurance	(3,020		)	—
Goodwill acquired in conjunction with the acquisition of AFB	7,875			—
Ending balance	$	76,256		$	71,401

Schedule Of Core Deposit Intangibles

The Company believes that the customer relationships with the deposits acquired have an intangible value. In connection with acquisitions, the Company recorded a core deposit intangible, which represented the value that the acquiree had with their deposit customers. The fair value was estimated based on a discounted cash flow methodology that considered the type of deposit, estimated deposit retention, the cost of the deposit base and an alternate cost of funds. The following tables present the details of the Company's core deposit intangibles (in thousands):

	2015			2014
Gross carrying amount	$	9,802		$	8,387
Accumulated amortization	(6,266		)	(5,590		)
	$	3,536		$	2,797
Beginning balance	$	2,797		$	3,741
Core deposit intangible acquired in conjunction with the acquisition of AFB	1,415			—
Amortization expense	(676		)	(944		)
Ending balance	$	3,536		$	2,797

Schedule of Estimated Future Amortization Expense for Core Deposits

The estimated amortization expense for core deposit intangible assets for each of the next five years is as follows (in thousands):

2016	$	602
2017	545
2018	496
2019	454
2020	416
Thereafter	1,023
	$	3,536

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Scheduled Maturities Of Time Deposits (Tables)

12 Months Ended

Dec. 31, 2015

Maturities of Time Deposits [Abstract]

Scheduled Maturities Of Time Deposits

Scheduled maturities of the Company's time deposits outstanding at December 31, 2015 are summarized as follows (in thousands):

2016	$	437,542
2017	213,288
2018	192,576
2019	127,682
2020	46,452
Over five years	16
	$	1,017,556

Scheduled Maturities Of Time Deposits Of $100,000 Or More

Scheduled maturities of Company's time deposits that meet or exceed the FDIC insurance limit of $250,000 are summarized as follows (in thousands):

	2015		2014
Within one year	$	35,160	$	34,544
Over one through two years	16,491		16,318
Over two through three years	19,032		6,014
Over three through four years	10,907		19,808
Over four through five years	4,709		6,538
Over five years	—		—
	$	86,299	$	83,222

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Short-Term Debt (Tables)

12 Months Ended

Dec. 31, 2015

Short-term Debt [Abstract]

Summary Of Short-Term Borrowings

A summary of the Company's short-term borrowings are as follows (dollars in thousands):

	2015			2014			2013
Balance at end of year:
Securities sold under agreements to repurchase	$	141,869		$	134,931		$	137,798
Federal Home Loan Bank advances	13,000			—			—
Avg. outstanding during the year:
Securities sold under agreements to repurchase	$	143,847		$	133,769		$	127,616
Federal Home Loan Bank advances	1,352			—			63
Max. outstanding at any month end:
Securities sold under agreements to repurchase	$	166,507		$	151,637		$	150,943
Federal Home Loan Bank advances	13,000			—			—
Weighted-average interest rate:
During the year:
Securities sold under agreements to repurchase	0.22		%	0.26		%	0.25		%
Federal Home Loan Bank advances	0.53		%	—			0.31		%
End of the year:
Securities sold under agreements to repurchase	0.20		%	0.26		%	0.25		%
Federal Home Loan Bank advances	0.51		%	—			0.31		%

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Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2015

Long-term Debt, Unclassified [Abstract]

Long-Term Debt

The components of the Company's long-term debt are summarized below (dollars in thousands):

	2015		2014
Junior subordinated debentures owed to City Holding Capital Trust III, due 2038, interest at a rate of 4.01% and 3.74%, respectively	$	16,495	$	16,495

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Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value Of Derivative Instruments

The following table summarizes the notional and fair value of these derivative instruments (in thousands):

	December 31, 2015				December 31, 2014
	Notional Amount		Fair Value		Notional Amount		Fair Value
Non-hedging interest rate derivatives:
Other Assets	$	334,204	$	10,811	$	179,958	$	10,253
Other Liabilities	342,204		10,872		179,958		10,253
Derivatives designated as hedges of fair value:
Other Liabilities	5,475		61		5,475		24

Change In Fair Value Of Derivative Instruments

The following table summarizes the change in fair value of these derivative instruments (in thousands): 

	Year Ended December 31,
	2015			2014			2013
Change in Fair Value Non-Hedging Interest Rate Derivatives:
Other income - derivative asset	$	1,030		$	6,811		$	(10,148	)
Other income - derivative liability	(1,190		)	(6,811		)	10,148
Change in Fair Value Hedging Interest Rate Derivatives:
Hedged item - derivative asset	$	25		—			—
Other income - derivative liability	12			—			—

Offsetting Assets

Information about financial instruments that are eligible for offset in the consolidated balance sheet as of December 31, 2015 is presented in the following tables (in thousands):

Gross Amounts

Not Offset in the Statement

of Financial Position

Total

of Gross

Amounts

Not Offset in

the Statement

of Financial

Position

Netting

Including

Gross

Net Amounts

Adjustment

Applicable

Amounts

of Assets

per

Netting

Gross

Offset in the

presented in

Applicable

Agreement

Amounts of

Statement of

the Statement

Master

Fair Value

and Fair

Recognized

Financial

of Financial

Netting

of Financial

Value of

Description

Assets

Position

Position

Arrangements

Collateral

Collateral

Net Amount

(a)

(b)

(c)=(a)-(b)

(d)

(c)-(d)

Non-hedging derivative assets:

Interest rate swap agreements

$

10,811

$

—

$

10,811

$

—

$

10,811

$

10,811

$

—

Offsetting Liabilities

Gross Amounts

Not Offset in the Statement

of Financial Position

Total

of Gross

Amounts

Not Offset in

the Statement

of Financial

Position

Netting

Including

Gross

Net Amounts

Adjustment

Applicable

Amounts

of Liabilities

per

Netting

Gross

Offset in the

presented in

Applicable

Agreement

Amounts of

Statement of

the Statement

Master

Fair Value

and Fair

Recognized

Financial

of Financial

Netting

of Financial

Value of

Description

Liabilities

Position

Position

Arrangements

Collateral

Collateral

Net Amount

(a)

(b)

(c)=(a)-(b)

(d)

(c)-(d)*

Non-hedging derivative liabilities:

Interest rate swap agreements

$

10,872

$

—

$

10,872

$

—

$

17,371

$

17,371

$

—

Hedging derivative liabilities:

Interest rate swap agreements

$

61

$

—

$

61

$

—

$

97

$

97

$

—

* For instances where the fair value of financial collateral meets or exceeds the amounts presented in the Statement of Financial Position, a value of zero is displayed to represent full collateraliztion.

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Summary Of Deferred Tax Assets And Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):

	2015		2014
Deferred tax assets:
Previously securitized loans	$	4,337	$	4,703
Allowance for loan losses	7,412		7,413
Deferred compensation payable	4,058		3,966
Underfunded pension liability	2,792		3,113
Accrued expenses	1,789		2,451
Impaired assets	797		1,172
Impaired securities losses	6,719		8,377
Intangible assets	2,194		4,946
Other	3,964		3,292
Total Deferred Tax Assets	34,062		39,433
Deferred tax liabilities:
Unrealized securities gains	585		741
Other	3,503		1,926
Total Deferred Tax Liabilities	4,088		2,667
Net Deferred Tax Assets	$	29,974	$	36,766

Summary Of Income Tax Expense

Significant components of the provision for income taxes are as follows (in thousands): 

	2015		2014			2013
Current:
Federal	$	20,830	$	20,629		$	18,808
State	957		(943		)	1,781
Total current tax expense	21,787		19,686			20,589
Total deferred tax expense	6,627		4,585			4,686
Income tax expense	$	28,414	$	24,271		$	25,275

Reconciliation Of The Significant Differences Between The Federal Statutory Income Tax Rate And Effective Income Tax Rate

A reconciliation of the significant differences between the federal statutory income tax rate and the Company’s effective income tax rate is as follows (in thousands):

	2015			2014			2013
Computed federal taxes at statutory rate	$	28,879		$	27,031		$	25,722
State income taxes, net of federal tax benefit	887			(482		)	1,982
Tax effects of:
Tax-exempt interest income	(498		)	(500		)	(616		)
Bank-owned life insurance	(1,181		)	(1,074		)	(1,187		)
Tax reserve adjustment	—			—			24
Other items, net	327			(704		)	(650		)
Income tax expense	$	28,414		$	24,271		$	25,275

Reconciliation Of The Unrecognized Tax Benefits Rollforward

A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows (in thousands):

	2015			2014
Beginning balance	$	2,398		$	4,717
Additions for current year tax positions	299			486
Additions for prior year tax positions	377			—
Decreases for prior year tax positions	—			—
Decreases for settlements with tax authorities	—			—
Decreases related to lapse of applicable statute of limitation	(910		)	(2,805		)
Ending balance	$	2,164		$	2,398

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Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2015

Multiemployer Plans [Line Items]

Summary Of Stock Option Activity

A summary of the Company’s stock option activity and related information is presented below: 

	2015				2014				2013
	Options		Weighted-Average Exercise Price		Options		Weighted-Average Exercise Price		Options		Weighted-Average Exercise Price
Outstanding at January 1	167,554		$	36.74	173,601		$	35.26	289,544		$	34.38
Granted	12,961		46.41		13,953		44.43		15,475		37.74
Exercised	(81,500	)	36.63		(20,000	)	29.19		(126,168	)	33.57
Forfeited	(4,000	)	31.66		—		—		(5,250	)	34.56
Outstanding at December 31	95,015		38.38		167,554		36.74		173,601		35.26
Exercisable at end of year	19,750		$	34.54	89,750		$	36.73	76,832		$	37.97
Nonvested at beginning of year	77,804		36.76		96,769		33.10		105,960		33.81
Granted during the year	12,961		46.41		13,953		44.43		15,475		37.74
Vested during the year	(15,500	)	32.09		(32,918	)	29.25		(23,166	)	39.64
Forfeited during the year	—		—		—		—		(1,500	)	30.38
Nonvested at end of year	75,265		$	39.38	77,804		$	36.76	96,769		$	33.10

Stock Options Outstanding And Exercisable

Additional information regarding the Company's stock options outstanding and exercisable at December 31, 2015, is provided in the following table:

Ranges of Exercise Prices	No. of Options Outstanding	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (Months)	Aggregate Intrinsic Value (in thousands)		No. of Options Currently Exercisable	Weighted-Average Exercise Price of Options Currently Exercisable		Weighted-Average Remaining Contractual Life (Months)	Aggregate Intrinsic Value of Options Currently Exercisable  (in thousands)
$ 25.00 - 29.99	1,250	$	28.15	3.3	$	22	1,250	$	28.15	3.3	$	22
30.00 - 34.99	11,500	31.38		3.7	164		11,500	31.38		3.7	164
35.00 - 39.99	48,351	36.04		6.2	464		—	—		—	—
40.00 - 44.99	20,953	43.24		6.3	50		7,000	40.88		2.3	33
45.00 - 50.00	12,961	46.61		9.2	—		—	—		—	—
	95,015				$	700	19,750				$	219

Weighted Average Assumptions Estimate The Fair Value Of Options Granted

The following weighted average assumptions were used to estimate the fair value of options granted by the Company:

	2015		2014		2013
Risk-free interest rate	1.95	%	2.42	%	1.88	%
Expected dividend yield	3.50	%	3.60	%	3.70	%
Volatility factor	45.40	%	48.75	%	41.35	%
Expected life of option	7.0 years		8.0 years		8.0 years

Restricted Shares Activity And Related Information

A summary of the Company’s restricted shares activity and related information is presented below:

	2015				2014				2013
	Restricted Awards		Average Market Price at Grant		Restricted Awards		Average Market Price at Grant		Restricted Awards		Average Market Price at Grant
Outstanding at January 1	163,431				142,469				116,711
Granted	26,840		$	46.45	27,162		$	39.72	35,083		$	38.07
Forfeited/Vested	(17,350	)			(6,200	)			(9,325	)
Outstanding at December 31	172,921				163,431				142,469

Summary Of Activity Within The Defined Benefit Plan

The following table summarizes activity within the Company's Defined Benefit Plans (dollars in thousands):

	Pension Benefits
	2015			2014
Change in fair value of plan assets:
Fair value at beginning of measurement period	$	14,667		$	14,726
Actual (loss) gain on plan assets	(231		)	496
Contributions	4,399			409
Benefits paid	(1,400		)	(964		)
Fair value at end of measurement period	17,435			14,667
Change in benefit obligation:
Benefit obligation at beginning of measurement period	(21,390		)	(17,524		)
Interest cost	(813		)	(836		)
Actuarial gain (loss)	1,103			(3,994		)
Benefits paid	1,400			964
Benefit obligation at end of measurement period	(19,700		)	(21,390		)
Funded status	$	(2,265	)	$	(6,723	)
Weighted-average assumptions for balance sheet liability at end of year:
Discount rate	4.26		%	3.93		%
Expected long-term rate of return	5.75		%	6.92		%
Weighted-average assumptions for benefit cost at beginning of year:
Discount rate	3.93		%	4.89		%
Expected long-term rate of return	6.92		%	7.35		%

Net Periodic Pension Cost Of The Defined Benefit Plan

The following table presents the components of the net periodic pension cost of the Company's Defined Benefit Plans (in thousands):

	2015			2014			2013
Components of net periodic benefit:
Interest cost	$	813		$	836		$	776
Expected return on plan assets	(937		)	(1,032		)	(979		)
Net amortization and deferral	960			696			1,106
Net Periodic Pension Cost	$	836		$	500		$	903

Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block]

Amounts related to the Company's Defined Benefit Pension Plans recognized as a component of other comprehensive income were as follows (in thousands):

	2015			2014			2013
Net actuarial gain (loss)	$	910		$	(3,906	)	$	3,469
Deferred tax (expense) benefit	(320		)	1,436			(1,332		)
Other comprehensive income (loss), net of tax	$	590		$	(2,470	)	$	2,137

Amounts recognized as a component of accumulated other comprehensive loss as of December 31, 2015 and 2014 were as follows (in thousands):

	2015			2014
Net actuarial loss	$	7,552		$	8,463
Deferred tax benefit	(2,792		)	(3,113		)
Amounts included in accumulated other comprehensive loss, net of tax	$	4,760		$	5,350

Summary Of Expected Benefit Payments

The following table summarizes the expected benefits to be paid in each of the next five years and in the aggregate for the five years thereafter (in thousands):

Plan Year Ending December 31,	Expected Benefits to be Paid
2016	$	1,047
2017	1,144
2018	1,245
2019	1,100
2020	1,133
2021 through 2025	5,782

Summary Of Assets Segregated By Level Of Valuation Inputs Within The Fair Value Hierarchy

The major categories of assets in the Company’s Defined Benefit Plans as of year-end are presented in the following table (in thousands).  Assets are segregated by the level of the valuation inputs within the fair value hierarchy established by ASC Topic 820 utilized to measure fair value (See Note Twenty).

	Total		Level 1		Level 2		Level 3
2015
Cash and cash equivalents	$	1,441	$	1,441	$	—	$	—
Mutual funds	5,617		5,473		144
Investment funds	2,651		607		1,371		673
Common stocks	5,082		3,880		1,202		—
Mortgage-backed securities	288		—		288		—
Government and GSE bonds	1,313		—		1,313		—
Corporate Bonds	1,043		—		1,043		—
Total	$	17,435	$	11,401	$	5,361	$	673
2014
Cash and cash equivalents	$	959	$	959	$	—	$	—
Mutual funds	6,162		5,656		506		—
Investment funds	1,610		—		1,014		596
Common stocks	3,941		3,119		822		—
Mortgage-backed securities	53		—		53		—
Government and GSE bonds	1,171		—		1,171		—
Corporate Bonds	771		—		771		—
Total	$	14,667	$	9,734	$	4,337	$	596

Horizon Defined Benefit Plan

Multiemployer Plans [Line Items]

Schedule of Allocation of Plan Assets [Table Text Block]

The target, allowable, and current allocation percentages of plan assets are as follows:

	Target Allocation 2015		Allowable- Allocation Range	Percentage of Plan Assets At December 31
				2015		2014
Equity securities	63	%	40-90%	51	%	53	%
Fixed income securities	15	%	10-40%	20	%	23	%
Cash and cash equivalents	2	%	3-10%	10	%	9	%
Alternative investments	20	%	0-25%	19	%	15	%
Total	100	%		100	%	100	%

Community Defined Benefit Plan

Multiemployer Plans [Line Items]

Schedule of Allocation of Plan Assets [Table Text Block]

The target, allowable, and current allocation percentages of plan assets are as follows:

	Target Allocation 2015		Allowable- Allocation Range	Percentage of Plan Assets At December 31
				2015		2014
Equity securities	25	%	20%-30%	25	%	25	%
Fixed income securities	75	%	70%-80%	75	%	75	%
	100	%		100	%	100	%

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Commitments And Contingencies (Tables)

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Schedule Of Contractual Obligations From Significant Commitments

The table below presents a summary of the contractual obligations of the Company resulting from significant commitments (in thousands):

	December 31, 2015		December 31, 2014
Commitments to extend credit:
Home equity lines	$	183,017	$	175,312
Commercial real estate	84,672		50,298
Other commitments	177,491		145,283
Standby letters of credit	5,086		4,592
Commercial letters of credit	2,312		1,991

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Regulatory Requirements And Capital Ratios (Tables)

12 Months Ended

Dec. 31, 2015

Regulatory Capital Requirements [Abstract]

Schedule Of Capital Amounts And Ratios

December 31, 2015	Actual				Minimum Required - Basel III Phase-In Schedule				Minimum Required - Basel III Fully Phased-In (*)				Required to be Considered Well Capitalized
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
CET 1 Capital
City Holding Company	$	345,620	13.7	%	$	113,919	4.5	%	$	177,207	7.0	%	$	164,549	6.5	%
City National Bank	264,812		10.5	%	113,209		4.5	%	176,103		7.0	%	163,524		6.5	%
Tier 1 Capital
City Holding Company	361,620		14.3	%	151,891		6.0	%	215,180		8.5	%	202,522		8.0	%
City National Bank	288,752		11.5	%	150,945		6.0	%	213,839		8.5	%	201,260		8.0	%
Total Capital
City Holding Company	382,180		15.1	%	202,522		8.0	%	265,810		10.5	%	253,152		10.0	%
City National Bank	308,804		12.3	%	201,260		8.0	%	264,154		10.5	%	251,575		10.0	%
Tier 1 Leverage Ratio
City Holding Company	361,620		10.2	%	142,521		4.0	%	142,521		4.0	%	178,151		5.0	%
City National Bank	288,752		8.1	%	141,874		4.0	%	141,874		4.0	%	177,343		5.0	%
(*) Represents the minimum required capital levels as of January 1, 2019 when Basel III Capital Rules have been fully phased in.

December 31, 2014:	Actual				Minimum Required for Capital Adequacy Purposes				Required to be Considered Well Capitalized
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
Tier 1 Capital
City Holding Company	$	333,163	13.4	%	$	99,723	4.0	%	$	149,585	6.0	%
City National Bank	294,870		11.9	%	99,037		4.0	%	148,556		6.0	%
Total Capital
City Holding Company	353,873		14.2	%	199,446		8.0	%	249,308		10.0	%
City National Bank	315,095		12.7	%	198,074		8.0	%	247,593		10.0	%
Tier 1 Leverage Ratio
City Holding Company	333,163		9.9	%	134,721		4.0	%	168,402		5.0	%
City National Bank	294,870		8.8	%	133,991		4.0	%	167,489		5.0	%

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring And Nonrecurring Basis

 The following table presents the Company's assets and liabilities measured at fair value (in thousands):

	Total		Level 1		Level 2		Level 3		Total Gains (Losses)
December 31, 2015
Recurring fair value measurements
Financial Assets
U.S. Government agencies	$	5	$	—	$	5	$	—
Obligations of states and political subdivisions	50,697		—		50,697		—
Mortgage-backed securities:
U.S. Government agencies	288,197		—		288,197		—
Private label	1,231		—		1,231		—
Trust preferred securities	5,858		—		3,762		2,096
Corporate securities	18,693		—		18,693		—
Marketable equity securities	3,273		3,273		—		—
Investment funds	1,512		1,512		—		—
Derivative assets	10,811		—		10,811		—
Financial Liabilities
Derivative liabilities	10,933		—		10,933		—
Nonrecurring fair value measurements
Financial Assets
Impaired loans	$	8,482	$	—	$	—	$	8,482	$	—
Other real estate owned	6,518		—		—		6,518		(937		)
December 31, 2014
Recurring fair value measurements
Financial Assets
U.S. Government agencies	$	1,827	$	—	$	1,827	$	—
Obligations of states and political subdivisions	42,096		—		42,096		—
Mortgage-backed securities:
U.S. Government agencies	187,328		—		187,328		—
Private label	1,704		—		1,704		—
Trust preferred securities	9,036		—		7,165		1,871
Corporate securities	7,317		—		7,317		—
Marketable equity securities	3,213		3,213		—		—
Investment funds	1,522		1,522		—		—
Derivative assets	10,253		—		10,253		—
Financial Liabilities
Derivative liabilities	10,277		—		10,277		—
Nonrecurring fair value measurements
Financial Assets
Impaired loans	$	6,517	$	—	$	—	$	6,517	$	(153	)
Other real estate owned	8,179		—		—		8,179		(464		)

Schedule Of Reconciliation Of Investment Securities Available For Sale Measured At Fair Value On A Recurring Basis Level 3 Assets

The table below presents a reconcilement of the Company’s financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands): 

	December 31,
	2015		2014
Beginning balance	$	1,871	$	3,887
Impairment losses on investment securities	—		—
Included in other comprehensive income	225		(1,862		)
Dispositions	—		(154		)
Transfers into Level 3	—		—
Ending Balance	$	2,096	$	1,871

Schedule Of Level 3 Financial Assets And Liabilities Measured On A Recurring Basis

The table below presents a reconcilement of the Company's financial assets and liabilities measured at fair value on a nonrecurring basis using significant unobservable inputs (Level 3), which solely relates to impaired loans that were remeasured and reported at fair value through a specific valuation allowance allocation of the allowance for loan losses based upon the fair value of the underlying collateral (in thousands).  The fair value of impaired loans is estimated using one of several methods, including collateral value, liquidation value and discounted cash flows.  The significant unobservable inputs used in the fair value measurement of collateral for collateral-dependent impaired loans primarily relate to discounts applied to the customers’ reported amount of collateral.  The amount of collateral discount depends upon the marketability of the underlying collateral.  During December 31, 2015 and 2014, collateral discounts ranged from 20% to 30%. During December 31, 2015 and 2014, the Company had no Level 2 financial assets and liabilities that were measured on a nonrecurring basis.

	Year ended December 31,
	2015			2014
Beginning balance	$	6,517		$	11,714
Loans classified as impaired during the period	2,349			—
Specific valuation allowance allocations	—			—
	2,349			—
(Additional) reduction in specific valuation allowance allocations	252			628
Paydowns, payoffs, other activity	(636		)	(5,825		)
Ending balance	$	8,482		$	6,517

Schedule Of OREO Measured And Reported At Fair Value

The table below presents OREO that was remeasured and reported at fair value based on significant unobservable inputs (Level 3) (in thousands):

	2015			2014
Beginning Balance	$	8,179		$	8,470
OREO remeasured at initial recognition:
Carrying value of foreclosed assets prior to remeasurement	3,732			5,746
Charge-offs recognized in the allowance for loan losses	—			—
Fair value	3,732			5,746
OREO remeasured subsequent to initial recognition:
Carrying value of foreclosed assets prior to remeasurement	3,937			1,632
Fair value	3,000			1,168
Write-downs included in other non-interest expense	(937		)	(464		)
Acquired	—			—
Disposals	(4,456		)	(5,573		)
Ending Balance	$	6,518		$	8,179

Schedule Of Estimates Of Fair Value Of Financial Instruments

	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
December 31, 2015
Assets:
Cash and cash equivalents	$	70,113	$	70,113	$	70,113	$	—	$	—
Securities available-for-sale	369,466		369,466		4,785		362,585		2,096
Securities held-to-maturity	88,937		90,810		—		90,810		—
Other securities	12,915		12,915		—		12,915		—
Net loans	2,843,283		2,843,973		—		—		2,843,973
Accrued interest receivable	7,432		7,432		7,432		—		—
Derivative assets	10,811		10,811		—		10,811		—
Liabilities:
Deposits	3,083,975		3,085,908		2,066,419		1,019,489		—
Short-term debt	154,869		154,872		—		154,872		—
Long-term debt	16,495		16,457		—		16,457		—
Derivative liabilities	10,933		10,933		—		10,933		—
December 31, 2014
Assets:
Cash and cash equivalents	$	148,228	$	148,228	$	148,228	$	—	$	—
Securities available-for-sale	254,043		254,043		4,735		247,437		1,871
Securities held-to-maturity	90,786		94,191		—		94,191		—
Other securities	9,857		9,857		—		9,857		—
Net loans	2,631,916		2,638,911		—		—		2,638,911
Accrued interest receivable	6,826		6,826		6,826		—		—
Derivative assets	10,253		10,253		—		10,253		—
Liabilities:
Deposits	2,872,787		2,879,126		1,846,124		1,033,002		—
Short-term debt	134,931		134,934		—		134,934		—
Long-term debt	16,495		16,464		—		16,464		—
Derivative liabilities	10,277		10,277		—		10,277		—

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City Holding Company (Parent Company Only) Financial Information (Tables)

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Balance Sheets

The following table presents the condensed balance sheets of City Holding Company, parent company only (in thousands):

	December 31
	2015		2014
Assets
Cash	$	46,672	$	12,521
Securities available-for-sale	3,273		3,212
Investment in subsidiaries	388,201		380,348
Deferred tax assets, net	1,569		1,436
Fixed assets	8		9
Other assets	3,290		16,629
Total Assets	$	443,013	$	414,155
Liabilities
Junior subordinated debentures	$	16,495	$	16,495
Dividends payable	6,376		6,062
Accrued interest payable	30		26
Other liabilities	840		719
Total Liabilities	23,741		23,302
Total Shareholders’ Equity	419,272		390,853
Total Liabilities and Shareholders’ Equity	$	443,013	$	414,155

Condensed Statements Of Comprehensive Income

The following table presents the condensed statements of comprehensive income of City Holding Company, parent company only (in thousands):

	Year Ended December 31
	2015			2014			2013
Income
Dividends from subsidiaries	$	48,950		$	46,050		$	46,317
Investment securities gains	—			1,130			89
Other income	22			65			66
	48,972			47,245			46,472
Expenses
Interest expense	618			605			617
Other expenses	1,170			849			2,352
	1,788			1,454			2,969
Income Before Income Tax Benefit and Equity in Undistributed Net Income of Subsidiaries	47,184			45,791			43,503
Income tax benefit	(795		)	(231		)	(1,050		)
Income Before Equity in Undistributed Net Income of Subsidiaries	47,979			46,022			44,553
Equity in undistributed net income of subsidiaries	6,118			6,940			3,662
Net Income	$	54,097		$	52,962		$	48,215
Total Comprehensive Income	$	54,424		$	53,793		$	44,647

Condensed Statements Of Cash Flows

The following table presents the condensed statements of cash flows of City Holding Company, parent company only (in thousands):

	Year Ended December 31
	2015			2014			2013
Operating Activities
Net income	$	54,097		$	52,962		$	48,215
Adjustments to reconcile net income to net cash provided by operating activities:
Realized investment securities gains	—			(1,130		)	(89		)
Amortization and accretion	—			—			5
Stock based compensation	3			199			205
Depreciation	1			1			1
Change in other assets	13,338			(16,110		)	1,656
Change in other liabilities	314			2,146			(236		)
Equity in undistributed net income	(6,118		)	(6,940		)	(3,662		)
Net Cash Provided by Operating Activities	61,635			31,128			46,095
Investing Activities
Proceeds from sales of available for sale securities	—			2,334			137
Return of capital	—			2,500			—
Acquisition of Community Financial Corporation	—			—			(12,708		)
Net Cash Used in Investing Activities	—			4,834			(12,571		)
Financing Activities
Dividends paid	(25,304		)	(24,487		)	(22,878		)
Purchases of treasury stock	(7,055		)	(27,957		)	—
Exercise of stock options	2,979			580			3,428
Exercise of warrants	1,896			—			—
Net Cash Used in Financing Activities	(27,484		)	(51,864		)	(19,450		)
Increase (decrease) in Cash and Cash Equivalents	34,151			(15,902		)	14,074
Cash and cash equivalents at beginning of year	12,521			28,423			14,349
Cash and Cash Equivalents at End of Year	$	46,672		$	12,521		$	28,423

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Summarized Quarterly Financial Information (Tables)

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Summary Of Selected Quarterly Financial Information

A summary of selected quarterly financial information is presented below (in thousands, except for per share data):

	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
2015
Interest income	$	32,364		$	31,720		$	30,768		$	32,222
Taxable equivalent adjustment	142			144			147			179
Interest income (FTE)	32,506			31,864			30,915			32,401
Interest expense	2,973			2,937			2,910			3,010
Net interest income	29,533			28,927			28,005			29,391
Provision for loan losses	888			2,836			451			2,813
Investment securities gains	14			2,116			—			—
Non-interest income	24,007			13,289			13,706			14,074
Non-interest expense	23,165			23,244			25,377			21,165
Income  before income tax expense	29,501			18,252			15,883			19,487
Income tax expense	11,367			6,125			5,129			5,793
Taxable equivalent adjustment	(142		)	(144		)	(147		)	(179		)
Net income available to common shareholders	$	17,992		$	11,983		$	10,607		$	13,515
Net earnings allocated to common  shareholders	$	17,783		$	11,849		$	10,487		$	13,362
Basic earnings  per common share	$	1.18		$	0.78		$	0.69		$	0.88
Diluted earnings per common share	1.17			0.78			0.69			0.88
Average common shares outstanding:
Basic	15,067			15,104			15,178			15,158
Diluted	15,149			15,127			15,198			15,175
2014
Interest income	$	33,018		$	31,828		$	32,438		$	32,282
Taxable equivalent adjustment	153			151			152			164
Interest income (FTE)	33,171			31,979			32,590			32,446
Interest expense	2,978			2,973			2,968			3,041
Net interest income	30,193			29,006			29,622			29,405
Provision for loan losses	1,363			435			1,872			384
Investment securities losses	83			818			71			184
Non-interest income	14,222			14,321			14,538			14,485
Non-interest expense	23,376			24,305			24,325			23,035
Income  before income tax expense	19,759			19,405			18,034			20,655
Income tax expense	5,803			6,497			6,010			5,961
Taxable equivalent adjustment	(153		)	(151		)	(152		)	(164		)
Net income available to common shareholders	$	13,803		$	12,757		$	11,872		$	14,530
Net earnings allocated to common  shareholders	$	13,663		$	12,626		$	11,746		$	14,374
Basic earnings  per common share	$	0.87		$	0.81		$	0.76		$	0.95

Diluted earnings per common share	0.86	0.80	0.76	0.95
Average common shares outstanding:
Basic	15,631	15,556	15,363	15,096
Diluted	15,796	15,706	15,445	15,182

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Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Schedule Of Computation Of Basic And Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):

	For the Year Ended December 31,
	2015		2014		2013
Distributed earnings allocated to  common stock	$	25,212	$	23,984	$	23,100
Undistributed earnings allocated to common stock	28,272		28,416		24,678
Net earnings allocated to common shareholders	$	53,484	$	52,400	$	47,778
Average shares outstanding	15,123		15,403		15,564
Effect of dilutive securities:
Employee stock options and warrant outstanding	48		85		144
Shares for diluted earnings per share	15,171		15,488		15,708
Basic earnings per share	$	3.54	$	3.40	$	3.07
Diluted earnings per share	$	3.53	$	3.38	$	3.04

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Accumulated Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The activity in accumulated other comprehensive loss is presented in the tables below (in thousands). All amounts are shown net of tax, which is calculated using a combined Federal and state income tax rate approximating 37%.

	Accumulated Other Comprehensive Loss
				Unrealized
				Gains (Losses) on
	Defined Benefit			Securities
	Pension Plans			Available-for-Sale			Total
Balance at December 31, 2013	$	(2,880	)	$	(2,110	)	$	(4,990	)
Other comprehensive income before reclassifications	(2,470		)	4,030			1,560
Amounts reclassified from other comprehensive loss	—			(729		)	(729		)
	(2,470		)	3,301			831
Balance at December 31, 2014	$	(5,350	)	$	1,191		$	(4,159	)
Other comprehensive income before reclassifications	590			1,081			1,671
Amounts reclassified from other comprehensive loss	—			(1,344		)	(1,344		)
	590			(263		)	327
Balance at December 31, 2015	$	(4,760	)	$	928		$	(3,832	)

Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income

	Amount reclassified from Other Comprehensive Loss									Affected line item
	December 31,									in the Statements
	2015			2014			2013			of Income
Securities available-for-sale:
Net securities (gains) losses reclassified into earnings	$	(2,130	)	$	(1,156	)	$	(764	)	Security gains (losses)
Related income tax expense	786			427			282			Income tax expense
Net effect on accumulated other comprehensive loss	$	(1,344	)	$	(729	)	$	(482	)

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Summary Of Significant Accounting And Reporting Policies (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($) branch	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Mar. 31, 2015 USD ($)
Condensed Financial Statements, Captions [Line Items]
Threshold Period Past Due for Write-off of Financing Receivable	30 days
Gain on Divestiture of Business, net of tax	$ 5.8
Other Real Estate, Foreclosed Assets, and Repossessed Assets	$ 6.5	$ 8.2
Amount of tax benefit that is greater than	50.00%
Investments in affordable housing limited partnerships	$ 0.5	0.9
Cash paid for interest	11.8	12.1	$ 13.4
Income taxes paid	$ 26.3	$ 23.0	$ 16.6
Held-to-maturity Securities, Transferred Security, at Carrying Value				$ 83.4
City National
Condensed Financial Statements, Captions [Line Items]
Number of offices | branch	85
Residential Real Estate
Condensed Financial Statements, Captions [Line Items]
Threshold Period Past Due for Write-off of Financing Receivable	120 days
Commercial Industrial Loans And Commercial Real Estate [Member]
Condensed Financial Statements, Captions [Line Items]
Threshold Period Past Due for Write-off of Financing Receivable	120 days
Consumer Loan
Condensed Financial Statements, Captions [Line Items]
Threshold Period Past Due for Write-off of Financing Receivable	120 days

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Acquisitions (Narrative) (Details) $ in Thousands	1 Months Ended	12 Months Ended
	Nov. 06, 2015 USD ($) store	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Business Acquisition [Line Items]
Property, Plant and Equipment, Gross		$ 158,530	$ 153,671
Deposits		3,083,975	2,872,787
Goodwill, Acquired During Period		76,256	71,401	$ 71,401
Merger-related costs		598	0	5,526
Professional fees		$ 2,391	$ 2,049	3,028
American Founders Bank [Member]
Business Acquisition [Line Items]
Number of branches acquired | store	3
Business Combination, Premium on Non-Time Deposits ($s)	$ 5,200
Business Combination, Premium on Loans ($s)	$ 1,200
Business Combination, Premium on Non-Time Deposits (%)	5.50%
Business Combination, Average Days for Premium Calculation	20
Business Combination, Premium on Loans (%)	1.00%
Property, Plant and Equipment, Gross	$ 4,000
Carry Value of Loans at Acquisition Date	119,242
Deposits	145,000
Premium on time deposits	100
Premium on time deposits amortization period		3 years
Core deposit intangible	1,400
Amortization time period for core deposit intangible assets		10 years
Goodwill, Acquired During Period	$ 7,900
Merger-related costs		$ 600
Community Financial Corporation [Member]
Business Acquisition [Line Items]
Merger-related costs				$ 5,500
Severance costs		2,500
Professional fees		1,400
Data processing costs		$ 1,100

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Acquisitions (Acquired Loans At Acquisition) (Details) - American Founders Bank [Member] $ in Thousands	Nov. 06, 2015 USD ($)
Business Acquisition [Line Items]
Carry Value of Loans at Acquisition Date	$ 119,242
Fair Value Adjustment for NonCredit Impaired Loans	(1,763)
Fair Value of NonCredit Impaired Loans	$ 117,479

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Restrictions On Cash Due From Banks (Details) $ in Millions	Dec. 31, 2015 USD ($)
Restricted Cash and Investments [Abstract]
Reserve balance	$ 18.5

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Investments (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Schedule of Investments [Line Items]
Credit-related net investment impairment losses	$ 0.0	$ 0.0	$ 0.0
Carrying value of securities pledged	$ 291.0	$ 273.0
Maximum
Schedule of Investments [Line Items]
Regional community bank stocks, percent of average trading volumes	0.20%
First National Corporation (FXNC) [Domain] | Maximum
Schedule of Investments [Line Items]
Equity ownership positions in the community bank holding companies	4.00%
Eagle Financial Services, Inc. (EFSI) [Domain] | Maximum
Schedule of Investments [Line Items]
Equity ownership positions in the community bank holding companies	1.50%

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Investments (Aggregate Carrying And Approximate Market Values Of Available-For-Sale Securities) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Securities available-for-sale, Amortized Cost	$ 367,884	$ 251,954
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	5,099	5,922
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	3,517	3,833
Securities available-for-sale	369,466	254,043
U.S. Government agencies
Schedule of Available-for-sale Securities [Line Items]
Securities available-for-sale, Amortized Cost	5	1,816
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	0	11
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	0	0
Securities available-for-sale	5	1,827
Obligations of states and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Securities available-for-sale, Amortized Cost	49,725	41,382
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	979	722
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	7	8
Securities available-for-sale	50,697	42,096
U.S. Government agencies
Schedule of Available-for-sale Securities [Line Items]
Securities available-for-sale, Amortized Cost	287,933	185,831
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	2,285	3,470
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	2,021	1,973
Securities available-for-sale	288,197	187,328
Private label
Schedule of Available-for-sale Securities [Line Items]
Securities available-for-sale, Amortized Cost	1,222	1,700
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	9	8
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	0	4
Securities available-for-sale	1,231	1,704
Trust preferred securities
Schedule of Available-for-sale Securities [Line Items]
Securities available-for-sale, Amortized Cost	6,550	9,763
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	463	425
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	1,155	1,152
Securities available-for-sale	5,858	9,036
Corporate securities
Schedule of Available-for-sale Securities [Line Items]
Securities available-for-sale, Amortized Cost	18,793	7,806
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	221	204
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	321	693
Securities available-for-sale	18,693	7,317
Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Securities available-for-sale, Amortized Cost	364,228	248,298
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	3,957	4,840
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	3,504	3,830
Securities available-for-sale	364,681	249,308
Equity Securities
Schedule of Available-for-sale Securities [Line Items]
Securities available-for-sale, Amortized Cost	2,131	2,131
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	1,142	1,082
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	0	0
Securities available-for-sale	3,273	3,213
Investment funds
Schedule of Available-for-sale Securities [Line Items]
Securities available-for-sale, Amortized Cost	1,525	1,525
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	0	0
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	13	3
Securities available-for-sale	$ 1,512	$ 1,522

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Investments (Aggregate Carrying And Approximate Market Values Of Held-To-Maturity Securities) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity, Amortized Cost	$ 88,937	$ 90,786
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain	1,949	3,405
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss	76	0
Securities held-to-maturity, Estimated Fair Value	90,810	94,191
US Government Agencies Debt Securities
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity, Amortized Cost	84,937	86,742
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain	1,949	2,733
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss	76	0
Securities held-to-maturity, Estimated Fair Value	86,810	89,475
Trust preferred securities
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity, Amortized Cost	4,000	4,044
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain	0	672
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss	0	0
Securities held-to-maturity, Estimated Fair Value	4,000	4,716
Non-marketable Equity Securities
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity, Amortized Cost	12,915	9,857
Securities held-to-maturity, Estimated Fair Value	12,915	9,857
Securities
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity, Amortized Cost	12,915	9,857
Securities held-to-maturity, Estimated Fair Value	$ 12,915	$ 9,857

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Investments (Gross Unrealized Losses And Fair Value Of Investments) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Schedule of Investments [Line Items]
Securities available-for-sale, Less Than Twelve Months, Estimated Fair Value	$ 142,874	$ 2,836
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	867	7
Securities available-for-sale, Twelve Months or Greater, Estimated Fair Value	42,660	70,552
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	2,650	3,826
Securities available-for-sale, Total, Estimated Fair Value	185,534	73,388
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	3,517	3,833
Obligations of states and political subdivisions
Schedule of Investments [Line Items]
Securities available-for-sale, Less Than Twelve Months, Estimated Fair Value	2,406	1,559
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	5	3
Securities available-for-sale, Twelve Months or Greater, Estimated Fair Value	128	125
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	2	5
Securities available-for-sale, Total, Estimated Fair Value	2,534	1,684
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	7	8
U.S. Government agencies
Schedule of Investments [Line Items]
Securities available-for-sale, Less Than Twelve Months, Estimated Fair Value	129,612	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	688	0
Securities available-for-sale, Twelve Months or Greater, Estimated Fair Value	34,044	60,122
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	1,333	1,973
Securities available-for-sale, Total, Estimated Fair Value	163,656	60,122
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	2,021	1,973
Private label
Schedule of Investments [Line Items]
Securities available-for-sale, Less Than Twelve Months, Estimated Fair Value	0	1,277
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	4
Securities available-for-sale, Twelve Months or Greater, Estimated Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	0
Securities available-for-sale, Total, Estimated Fair Value	0	1,277
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	0	4
Trust preferred securities
Schedule of Investments [Line Items]
Securities available-for-sale, Less Than Twelve Months, Estimated Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	0
Securities available-for-sale, Twelve Months or Greater, Estimated Fair Value	4,769	4,760
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	1,155	1,152
Securities available-for-sale, Total, Estimated Fair Value	4,769	4,760
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	1,155	1,152
Corporate securities
Schedule of Investments [Line Items]
Securities available-for-sale, Less Than Twelve Months, Estimated Fair Value	10,856	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	174	0
Securities available-for-sale, Twelve Months or Greater, Estimated Fair Value	2,231	4,049
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	147	693
Securities available-for-sale, Total, Estimated Fair Value	13,087	4,049
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	321	693
Investment funds
Schedule of Investments [Line Items]
Securities available-for-sale, Less Than Twelve Months, Estimated Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	0
Securities available-for-sale, Twelve Months or Greater, Estimated Fair Value	1,488	1,496
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	13	3
Securities available-for-sale, Total, Estimated Fair Value	1,488	1,496
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ 13	$ 3

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Investments (Credit Loss Component Of OTTI On Debt Securities Recognized In Earnings) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Beginning Balance	$ 18,170	$ 24,884
Additions:
Additional credit impairment	0	0
Deductions:
Sold	0	6,714
Ending Balance	18,170	18,170
Debt Securities
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Beginning Balance	16,586	20,186
Additions:
Additional credit impairment	0	0
Deductions:
Sold	0	3,600
Ending Balance	16,586	16,586
Equity Securities
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Beginning Balance	1,584	4,698
Additions:
Additional credit impairment	0	0
Deductions:
Sold	0	3,114
Ending Balance	$ 1,584	$ 1,584

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Investments (Amortized Cost And Estimated Fair Value Of Debt Securities By Contractual Maturity) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Investments [Abstract]
Securities Available-for-Sale, Due in one year or less, Cost	$ 2,716
Securities Available-for-Sale, Due after one year through five years, Cost	24,037
Securities Available-for-Sale, Due after five years through ten years, Cost	33,285
Securities Available-for-Sale, Due after ten years, Cost	304,190
Securities Available-for-Sale, Cost, Total	364,228
Securities Available-for-Sale, Due in one year or less, Estimated Fair Value	2,740
Securities Available-for-Sale, Due after one year through five years, Estimated Fair Value	16,267
Securities Available-for-Sale, Due after five years through ten years, Estimated Fair Value	42,038
Securities Available-for-Sale, Due after ten years, Estimated Fair Value	303,636
Securities Available-for-Sale, Estimated Fair Value, Total	364,681
Securities Held-to-Maturity, Due after ten years, Cost	88,937
Securities Held-to-Maturity, Cost, Total	88,937	$ 90,786
Securities Held-to-Maturity, Due after ten years, Estimated Fair Value	90,810
Securities held-to-maturity, Estimated Fair Value	$ 90,810	$ 94,191

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Investments (Gross Gains And Losses Realized) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Investments [Abstract]
Gross realized gains	$ 2,142	$ 1,256	$ 764
Gross realized losses	(12)	(100)	0
Investment security gains (losses)	$ 2,130	$ 1,156	$ 764

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Loans (Narrative) (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Residential Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Construction Loan	$ 13.1	$ 23.0
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Construction Loan	$ 12.6	$ 28.7

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Loans (Summary Of Major Classifications For Loans) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 2,863,327	$ 2,652,066
Allowance for loan losses	(20,044)	(20,150)
Net Loans	2,843,283	2,631,916
Residential Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	1,383,133	1,294,576
Allowance for loan losses	(6,778)	(7,208)
Home equity - junior liens
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	147,036	145,604
Allowance for loan losses	(1,463)	(1,495)
Commercial And Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	165,887	140,548
Allowance for loan losses	(3,271)	(1,582)
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	1,127,827	1,028,831
Allowance for loan losses	(7,778)	(8,921)
Consumer Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	36,083	39,705
Allowance for loan losses	(97)	(85)
DDA Overdrafts
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	3,361	2,802
Allowance for loan losses	$ (657)	$ (859)

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Loans (Composition of Loans Acquired) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Gross loans	$ 2,863,327	$ 2,652,066
Virginia Savings Bank [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Gross loans	28,914	38,345
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net	1,707	1,964
Contractually required principal and interest	1,965	2,407
Community Bank [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Gross loans	181,545	219,923
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net	12,899	15,365
Contractually required principal and interest	16,362	23,277
American Founders Bank [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Gross loans	112,862
Virginia Savings Bank and Community Bank [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Gross loans	323,321	258,268
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net	14,606	17,329
Contractually required principal and interest	$ 18,327	$ 25,684

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Loans (Activity For The Accretable Yield And Carrying Amount Of Loans) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015 USD ($)
Virginia Savings Bank [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at the beginning of the period	$ 428
Accretion	(188)
Net reclassifications to accretable from non-accretable	185
Disposals	(51)
Balance at the end of the period	374
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities, Carrying Amount Net [Roll Forward]
Balance at the beginning of the period	1,964
Accretion	188
Payments received, net	(445)
Disposals	0
Balance at the end of the period	1,707
Community Bank [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at the beginning of the period	9,906
Accretion	(2,477)
Net reclassifications to accretable from non-accretable	918
Disposals	(2,081)
Balance at the end of the period	6,266
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities, Carrying Amount Net [Roll Forward]
Balance at the beginning of the period	15,365
Accretion	2,477
Payments received, net	(2,924)
Disposals	(2,019)
Balance at the end of the period	12,899
Virginia Savings Bank and Community Bank [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at the beginning of the period	10,334
Accretion	(2,665)
Net reclassifications to accretable from non-accretable	1,103
Disposals	(2,132)
Balance at the end of the period	6,640
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities, Carrying Amount Net [Roll Forward]
Balance at the beginning of the period	17,329
Accretion	2,665
Payments received, net	(3,369)
Disposals	(2,019)
Balance at the end of the period	$ 14,606

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Allowance For Loan Losses (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Receivables [Abstract]
Loan Review Selection Threshold ($)	$ 1
Interest income forgone	$ 800,000	$ 500,000	$ 600,000

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Allowance For Loan Losses (Schedule Of Allowance For Loan Loss By Portfolio Segment) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Allowance for Loan Losses [Roll Forward]
Beginning balance	$ 20,150	$ 20,575
Charge-offs	(8,711)	(5,922)
Recoveries	1,617	1,443
Provision	(6,435)	(3,771)
Provision for acquired loans with deteriorated credit quality	553	283
Ending balance	20,044	20,150
Allowance for loan loss, Evaluated for impairment, Individually	0	252
Allowance for loan loss, Evaluated for impairment, Collectively	19,215	19,019
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses	829	879
Allowance for loan loss, Total	20,044	20,150
Loans, Evaluated for impairment, Individually	8,482	6,769
Loans, Evaluated for impairment, Collectively	2,840,240	2,627,968
Gross loans	2,863,327	2,652,066
Commercial And Industrial
Allowance for Loan Losses [Roll Forward]
Beginning balance	1,582	1,139
Charge-offs	(5,051)	(323)
Recoveries	74	89
Provision	(6,113)	(394)
Provision for acquired loans with deteriorated credit quality	553	283
Ending balance	3,271	1,582
Allowance for loan loss, Evaluated for impairment, Individually	0	0
Allowance for loan loss, Evaluated for impairment, Collectively	3,267	1,540
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses	4	42
Allowance for loan loss, Total	3,271	1,582
Loans, Evaluated for impairment, Individually	2,349	0
Loans, Evaluated for impairment, Collectively	163,209	139,862
Gross loans	165,887	140,548
Commercial real estate
Allowance for Loan Losses [Roll Forward]
Beginning balance	8,921	10,775
Charge-offs	(580)	(1,925)
Recoveries	366	113
Provision	929	42
Provision for acquired loans with deteriorated credit quality	0	0
Ending balance	7,778	8,921
Allowance for loan loss, Evaluated for impairment, Individually	0	252
Allowance for loan loss, Evaluated for impairment, Collectively	6,966	7,898
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses	812	771
Allowance for loan loss, Total	7,778	8,921
Loans, Evaluated for impairment, Individually	5,399	6,023
Loans, Evaluated for impairment, Collectively	1,110,307	1,009,241
Gross loans	1,127,827	1,028,831
Residential Real Estate
Allowance for Loan Losses [Roll Forward]
Beginning balance	7,208	6,057
Charge-offs	(1,144)	(1,762)
Recoveries	199	187
Provision	(515)	(2,726)
Provision for acquired loans with deteriorated credit quality	0	0
Ending balance	6,778	7,208
Allowance for loan loss, Evaluated for impairment, Individually	0	0
Allowance for loan loss, Evaluated for impairment, Collectively	6,777	7,208
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses	1	0
Allowance for loan loss, Total	6,778	7,208
Loans, Evaluated for impairment, Individually	437	449
Loans, Evaluated for impairment, Collectively	1,382,325	1,293,748
Gross loans	1,383,133	1,294,576
Home equity - junior liens
Allowance for Loan Losses [Roll Forward]
Beginning balance	1,495	1,672
Charge-offs	(312)	(309)
Recoveries	0	0
Provision	(280)	(132)
Provision for acquired loans with deteriorated credit quality	0	0
Ending balance	1,463	1,495
Allowance for loan loss, Evaluated for impairment, Individually	0	0
Allowance for loan loss, Evaluated for impairment, Collectively	1,451	1,429
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses	12	66
Allowance for loan loss, Total	1,463	1,495
Loans, Evaluated for impairment, Individually	297	297
Loans, Evaluated for impairment, Collectively	145,041	142,743
Gross loans	147,036	145,604
Consumer Loan
Allowance for Loan Losses [Roll Forward]
Beginning balance	85	77
Charge-offs	(210)	(188)
Recoveries	186	204
Provision	(36)	8
Provision for acquired loans with deteriorated credit quality	0	0
Ending balance	97	85
Allowance for loan loss, Evaluated for impairment, Individually	0	0
Allowance for loan loss, Evaluated for impairment, Collectively	97	85
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses	0	0
Allowance for loan loss, Total	97	85
Loans, Evaluated for impairment, Individually	0	0
Loans, Evaluated for impairment, Collectively	35,997	39,572
Gross loans	36,083	39,705
DDA Overdrafts
Allowance for Loan Losses [Roll Forward]
Beginning balance	859	855
Charge-offs	(1,414)	(1,415)
Recoveries	792	850
Provision	(420)	(569)
Provision for acquired loans with deteriorated credit quality	0	0
Ending balance	657	859
Allowance for loan loss, Evaluated for impairment, Individually	0	0
Allowance for loan loss, Evaluated for impairment, Collectively	657	859
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses	0	0
Allowance for loan loss, Total	657	859
Loans, Evaluated for impairment, Individually	0	0
Loans, Evaluated for impairment, Collectively	3,361	2,802
Gross loans	3,361	2,802
Receivables Acquired with Deteriorated Credit Quality [Member]
Allowance for Loan Losses [Roll Forward]
Loans, Acquired with Deteriorated Credit Quality	14,605	17,329
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial And Industrial
Allowance for Loan Losses [Roll Forward]
Loans, Acquired with Deteriorated Credit Quality	329	686
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial real estate
Allowance for Loan Losses [Roll Forward]
Loans, Acquired with Deteriorated Credit Quality	12,121	13,567
Receivables Acquired with Deteriorated Credit Quality [Member] | Residential Real Estate
Allowance for Loan Losses [Roll Forward]
Loans, Acquired with Deteriorated Credit Quality	371	379
Receivables Acquired with Deteriorated Credit Quality [Member] | Home equity - junior liens
Allowance for Loan Losses [Roll Forward]
Loans, Acquired with Deteriorated Credit Quality	1,698	2,564
Receivables Acquired with Deteriorated Credit Quality [Member] | Consumer Loan
Allowance for Loan Losses [Roll Forward]
Loans, Acquired with Deteriorated Credit Quality	86	133
Receivables Acquired with Deteriorated Credit Quality [Member] | DDA Overdrafts
Allowance for Loan Losses [Roll Forward]
Loans, Acquired with Deteriorated Credit Quality	$ 0	$ 0

XML

Allowance For Loan Losses (Schedule Of Credit Quality Indicators) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	$ 2,863,327	$ 2,652,066
Commercial Industrial Loans And Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	1,293,714	1,169,379
Commercial And Industrial
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	165,887	140,548
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	1,127,827	1,028,831
Residential Real Estate
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	1,383,133	1,294,576
Home equity - junior liens
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	147,036	145,604
Consumer Loan
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	36,083	39,705
DDA Overdrafts
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	3,361	2,802
Pass | Commercial Industrial Loans And Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	1,227,963	1,099,397
Pass | Commercial And Industrial
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	157,211	128,812
Pass | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	1,070,752	970,585
Special Mention | Commercial Industrial Loans And Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	25,041	15,864
Special Mention | Commercial And Industrial
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	4,099	761
Special Mention | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	20,942	15,103
Substandard | Commercial Industrial Loans And Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	40,672	53,266
Substandard | Commercial And Industrial
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	4,539	10,575
Substandard | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	36,133	42,691
Doubtful | Commercial Industrial Loans And Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	38	852
Doubtful | Commercial And Industrial
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	38	400
Doubtful | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	$ 0	$ 452

XML

Allowance For Loan Losses (Schedule of Non-Commercial Loans By Payment Performance) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	$ 2,863,327	$ 2,652,066
Residential Real Estate
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	1,383,133	1,294,576
Home equity - junior liens
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	147,036	145,604
Consumer Loan
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	36,083	39,705
DDA Overdrafts
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	3,361	2,802
Non-commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	1,569,613	1,482,687
Performing
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	1,569,138	1,480,012
Performing | Residential Real Estate
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	1,382,715	1,292,012
Performing | Home equity - junior liens
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	147,013	145,506
Performing | Consumer Loan
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	36,049	39,692
Performing | DDA Overdrafts
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	3,361	2,802
Non-Performing
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	475	2,675
Non-Performing | Residential Real Estate
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	418	2,564
Non-Performing | Home equity - junior liens
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	23	98
Non-Performing | Consumer Loan
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	34	13
Non-Performing | DDA Overdrafts
Financing Receivable, Recorded Investment [Line Items]
Loans, Total	$ 0	$ 0

XML

Allowance For Loan Losses (Schedule Of Aging Analysis Of Accruing And Non-Accruing Loans) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 2,837,212	$ 2,626,094
Impaired Financing Receivable, Recorded Investment, Past Due	506	1,270
Non-accrual	16,948	15,306
Gross loans	2,863,327	2,652,066
Residential Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	1,373,604	1,286,306
Impaired Financing Receivable, Recorded Investment, Past Due	0	0
Non-accrual	2,918	2,394
Gross loans	1,383,133	1,294,576
Home equity - junior liens
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	146,493	144,788
Impaired Financing Receivable, Recorded Investment, Past Due	0	0
Non-accrual	136	68
Gross loans	147,036	145,604
Commercial And Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	162,982	138,980
Impaired Financing Receivable, Recorded Investment, Past Due	0	0
Non-accrual	2,745	1,115
Gross loans	165,887	140,548
Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	1,115,199	1,014,251
Impaired Financing Receivable, Recorded Investment, Past Due	506	1,270
Non-accrual	11,149	11,729
Gross loans	1,127,827	1,028,831
Consumer Loan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	35,886	39,286
Impaired Financing Receivable, Recorded Investment, Past Due	0	0
Non-accrual	0	0
Gross loans	36,083	39,705
DDA Overdrafts
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	3,048	2,483
Impaired Financing Receivable, Recorded Investment, Past Due	0	0
Non-accrual	0	0
Gross loans	3,361	2,802
Originated Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	2,520,565	2,376,849
Impaired Financing Receivable, Recorded Investment, Past Due	0	0
Non-accrual	11,916	9,735
Gross loans	2,540,006	2,393,798
Originated Loans | Residential Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	1,290,312	1,200,177
Impaired Financing Receivable, Recorded Investment, Past Due	0	0
Non-accrual	2,038	2,259
Gross loans	1,298,221	1,207,598
Originated Loans | Home equity - junior liens
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	142,697	142,624
Impaired Financing Receivable, Recorded Investment, Past Due	0	0
Non-accrual	136	68
Gross loans	143,226	143,438
Originated Loans | Commercial And Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	106,003	128,857
Impaired Financing Receivable, Recorded Investment, Past Due	0	0
Non-accrual	2,389	78
Gross loans	108,454	129,245
Originated Loans | Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	946,611	869,530
Impaired Financing Receivable, Recorded Investment, Past Due	0	0
Non-accrual	7,353	7,330
Gross loans	954,743	877,339
Originated Loans | Consumer Loan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	31,894	33,178
Impaired Financing Receivable, Recorded Investment, Past Due	0	0
Non-accrual	0	0
Gross loans	32,001	33,376
Originated Loans | DDA Overdrafts
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	3,048	2,483
Impaired Financing Receivable, Recorded Investment, Past Due	0	0
Non-accrual	0	0
Gross loans	3,361	2,802
Acquired Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	316,647	249,245
Impaired Financing Receivable, Recorded Investment, Past Due	506	1,270
Non-accrual	5,032	5,571
Gross loans	323,321	258,268
Acquired Loans | Residential Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	83,292	86,129
Impaired Financing Receivable, Recorded Investment, Past Due	0	0
Non-accrual	880	135
Gross loans	84,912	86,978
Acquired Loans | Home equity - junior liens
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	3,796	2,164
Impaired Financing Receivable, Recorded Investment, Past Due	0	0
Non-accrual	0	0
Gross loans	3,810	2,166
Acquired Loans | Commercial And Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	56,979	10,123
Impaired Financing Receivable, Recorded Investment, Past Due	0	0
Non-accrual	356	1,037
Gross loans	57,433	11,303
Acquired Loans | Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	168,588	144,721
Impaired Financing Receivable, Recorded Investment, Past Due	506	1,270
Non-accrual	3,796	4,399
Gross loans	173,084	151,492
Acquired Loans | Consumer Loan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	3,992	6,108
Impaired Financing Receivable, Recorded Investment, Past Due	0	0
Non-accrual	0	0
Gross loans	4,082	6,329
Acquired Loans | DDA Overdrafts
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current		0
Impaired Financing Receivable, Recorded Investment, Past Due	0	0
Non-accrual	0	0
Gross loans	0	0
Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	6,946	7,734
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	5,261	4,949
Financing Receivables, 30 to 59 Days Past Due [Member] | Home equity - junior liens
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	318	563
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial And Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	141	243
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	762	1,371
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer Loan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	154	291
Financing Receivables, 30 to 59 Days Past Due [Member] | DDA Overdrafts
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	310	317
Financing Receivables, 30 to 59 Days Past Due [Member] | Originated Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	5,946	5,811
Financing Receivables, 30 to 59 Days Past Due [Member] | Originated Loans | Residential Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	4,648	4,235
Financing Receivables, 30 to 59 Days Past Due [Member] | Originated Loans | Home equity - junior liens
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	306	561
Financing Receivables, 30 to 59 Days Past Due [Member] | Originated Loans | Commercial And Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	43	100
Financing Receivables, 30 to 59 Days Past Due [Member] | Originated Loans | Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	568	479
Financing Receivables, 30 to 59 Days Past Due [Member] | Originated Loans | Consumer Loan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	71	119
Financing Receivables, 30 to 59 Days Past Due [Member] | Originated Loans | DDA Overdrafts
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	310	317
Financing Receivables, 30 to 59 Days Past Due [Member] | Acquired Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	1,000	1,923
Financing Receivables, 30 to 59 Days Past Due [Member] | Acquired Loans | Residential Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	613	714
Financing Receivables, 30 to 59 Days Past Due [Member] | Acquired Loans | Home equity - junior liens
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	12	2
Financing Receivables, 30 to 59 Days Past Due [Member] | Acquired Loans | Commercial And Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	98	143
Financing Receivables, 30 to 59 Days Past Due [Member] | Acquired Loans | Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	194	892
Financing Receivables, 30 to 59 Days Past Due [Member] | Acquired Loans | Consumer Loan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	83	172
Financing Receivables, 30 to 59 Days Past Due [Member] | Acquired Loans | DDA Overdrafts
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	1,220	1,239
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	932	758
Financing Receivables, 60 to 89 Days Past Due [Member] | Home equity - junior liens
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	65	155
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial And Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	211	210
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer Loan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	9	114
Financing Receivables, 60 to 89 Days Past Due [Member] | DDA Overdrafts
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	3	2
Financing Receivables, 60 to 89 Days Past Due [Member] | Originated Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	1,086	993
Financing Receivables, 60 to 89 Days Past Due [Member] | Originated Loans | Residential Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	805	758
Financing Receivables, 60 to 89 Days Past Due [Member] | Originated Loans | Home equity - junior liens
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	65	155
Financing Receivables, 60 to 89 Days Past Due [Member] | Originated Loans | Commercial And Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Originated Loans | Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	211	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Originated Loans | Consumer Loan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	2	78
Financing Receivables, 60 to 89 Days Past Due [Member] | Originated Loans | DDA Overdrafts
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	3	2
Financing Receivables, 60 to 89 Days Past Due [Member] | Acquired Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	134	246
Financing Receivables, 60 to 89 Days Past Due [Member] | Acquired Loans | Residential Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	127	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Acquired Loans | Home equity - junior liens
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Acquired Loans | Commercial And Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Acquired Loans | Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	210
Financing Receivables, 60 to 89 Days Past Due [Member] | Acquired Loans | Consumer Loan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	7	36
Financing Receivables, 60 to 89 Days Past Due [Member] | Acquired Loans | DDA Overdrafts
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	495	423
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	418	169
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Home equity - junior liens
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	24	30
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial And Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	19	210
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer Loan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	34	14
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | DDA Overdrafts
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Originated Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	493	410
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Originated Loans | Residential Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	418	169
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Originated Loans | Home equity - junior liens
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	22	30
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Originated Loans | Commercial And Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	19	210
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Originated Loans | Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Originated Loans | Consumer Loan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	34	1
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Originated Loans | DDA Overdrafts
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Acquired Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	2	13
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Acquired Loans | Residential Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Acquired Loans | Home equity - junior liens
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	2	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Acquired Loans | Commercial And Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Acquired Loans | Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Acquired Loans | Consumer Loan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	13
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Acquired Loans | DDA Overdrafts
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	$ 0	$ 0

XML

Allowance For Loan Losses (Schedule Of Impaired Loans) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded investment	$ 8,482	$ 5,377
With no related allowance recorded, Unpaid principal balance	17,049	5,377
With an allowance recorded, Recorded investment	0	1,392
With an allowance recorded, Unpaid principal balance	0	1,392
With an allowance recorded, Related allowance	0	252
Residential Real Estate
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded investment	437	449
With no related allowance recorded, Unpaid principal balance	437	449
With an allowance recorded, Recorded investment	0	0
With an allowance recorded, Unpaid principal balance	0	0
With an allowance recorded, Related allowance	0	0
Home equity - junior liens
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded investment	297	297
With no related allowance recorded, Unpaid principal balance	297	297
With an allowance recorded, Recorded investment	0	0
With an allowance recorded, Unpaid principal balance	0	0
With an allowance recorded, Related allowance	0	0
Commercial And Industrial
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded investment	2,349	0
With no related allowance recorded, Unpaid principal balance	7,547	0
With an allowance recorded, Recorded investment	0	0
With an allowance recorded, Unpaid principal balance	0	0
With an allowance recorded, Related allowance	0	0
Commercial real estate
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded investment	5,399	4,631
With no related allowance recorded, Unpaid principal balance	8,768	4,631
With an allowance recorded, Recorded investment	0	1,392
With an allowance recorded, Unpaid principal balance	0	1,392
With an allowance recorded, Related allowance	0	252
Consumer Loan
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded investment	0	0
With no related allowance recorded, Unpaid principal balance	0	0
With an allowance recorded, Recorded investment	0	0
With an allowance recorded, Unpaid principal balance	0	0
With an allowance recorded, Related allowance	0	0
DDA Overdrafts
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded investment	0	0
With no related allowance recorded, Unpaid principal balance	0	0
With an allowance recorded, Recorded investment	0	0
With an allowance recorded, Unpaid principal balance	0	0
With an allowance recorded, Related allowance	$ 0	$ 0

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Allowance For Loan Losses (Schedule Of Information Related To Average Recorded Investment And Interest Income Recognized On Impaired Loans) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Average recorded investment	$ 8,519	$ 7,406
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	4	17
With an allowance recorded, Average recorded investment	1,012	1,725
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	0	128
Residential Real Estate
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Average recorded investment	441	452
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	0	0
With an allowance recorded, Average recorded investment	0	0
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	0	0
Home equity - junior liens
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Average recorded investment	296	297
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	0	0
With an allowance recorded, Average recorded investment	0	0
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	0	0
Commercial And Industrial
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Average recorded investment	2,913	0
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	0	0
With an allowance recorded, Average recorded investment	0	0
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	0	0
Commercial real estate
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Average recorded investment	4,869	6,657
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	4	17
With an allowance recorded, Average recorded investment	1,012	1,725
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	0	128
Consumer Loan
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Average recorded investment	0	0
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	0	0
With an allowance recorded, Average recorded investment	0	0
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	0	0
DDA Overdrafts
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Average recorded investment	0	0
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	0	0
With an allowance recorded, Average recorded investment	0	0
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	$ 0	$ 0

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Allowance For Loan Losses (Schedule Of Troubled Debt Restructurings) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015 USD ($) contract	Dec. 31, 2014 USD ($) contract
Financing Receivable, Modifications [Line Items]
Accruing	$ 22,259	$ 22,955
Non-Accruing	225	560
Total	$ 22,484	$ 23,515
Number of Contracts | contract	51	46
Pre-modification Outstanding Recorded Investment	$ 3,330	$ 3,020
Post-modification Outstanding Recorded Investment	3,330	3,020
Commercial Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Accruing	58	73
Non-Accruing	0	0
Total	$ 58	$ 73
Number of Contracts | contract	0	0
Pre-modification Outstanding Recorded Investment	$ 0	$ 0
Post-modification Outstanding Recorded Investment	0	0
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Accruing	1,746	2,263
Non-Accruing	0	0
Total	$ 1,746	$ 2,263
Number of Contracts | contract	0	1
Pre-modification Outstanding Recorded Investment	$ 0	$ 428
Post-modification Outstanding Recorded Investment	0	428
Residential Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Accruing	17,796	17,946
Non-Accruing	191	545
Total	$ 17,987	$ 18,491
Number of Contracts | contract	38	35
Pre-modification Outstanding Recorded Investment	$ 2,969	$ 2,381
Post-modification Outstanding Recorded Investment	2,969	2,381
Home Equity Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Accruing	2,659	2,673
Non-Accruing	34	15
Total	$ 2,693	$ 2,688
Number of Contracts | contract	13	10
Pre-modification Outstanding Recorded Investment	$ 361	$ 211
Post-modification Outstanding Recorded Investment	361	211
Consumer Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Accruing	0	0
Non-Accruing	0	0
Total	$ 0	$ 0
Number of Contracts | contract	0	0
Pre-modification Outstanding Recorded Investment	$ 0	$ 0
Post-modification Outstanding Recorded Investment	$ 0	$ 0

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Previously Securitized Loans (Details)	12 Months Ended
	Dec. 31, 2015 USD ($) transaction	Dec. 31, 2014 USD ($) transaction	Dec. 31, 2013 USD ($) transaction
Previously Securitized Loans [Abstract]
Number of securitization transactions | transaction	6	6	6
Proceeds from securitization transactions	$ 760,000,000	$ 760,000,000	$ 760,000,000
Fixed rate of junior-lien underlying mortgages	125.00%	125.00%	125.00%
Outstanding balance of securitized loans	$ 3,900,000	$ 4,900,000
Recognized interest income from previously securitized loans	1,800,000	2,200,000	$ 2,500,000
Carrying Value Outstanding on Loans Securitized	$ 0	$ 0

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Premises And Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 158,530	$ 153,671
Less: accumulated depreciation	(81,259)	(75,683)
Property, Plant and Equipment, Net, Total	77,271	77,988
Land
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	31,496	31,217
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 87,875	85,403
Buildings and improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	30 years
Buildings and improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	10 years
Equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 39,159	$ 37,051
Equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	7 years
Equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	3 years

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Goodwill And Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 676	$ 944	$ 1,000
Core Deposits
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	10 years

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Goodwill And Other Intangible Assets (Summary Of Core Deposit Intangibles) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Gross carrying amount				$ 9,802	$ 8,387
Accumulated amortization				(6,266)	(5,590)
Total	$ 2,797	$ 3,741	$ 3,741	$ 3,536	$ 2,797
Finite-lived Intangible Assets [Roll Forward]
Beginning balance	2,797	3,741
Core deposit intangible acquired in conjunction with the acquisition of AFB	1,415	0
Amortization expense	(676)	(944)	(1,000)
Ending balance	$ 3,536	$ 2,797	$ 3,741

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Goodwill And Other Intangible Assets (Schedule Of Estimated Future Amortization Expense For Core Deposits) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
2016	$ 602
2017	545
2018	496
2019	454
2020	416
Thereafter	1,023
Total	$ 3,536	$ 2,797	$ 3,741

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Goodwill And Other Intangible Assets Goodwill and Other Intangible Assets (Rollforward of Goodwill) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Goodwill [Roll Forward]
Beginning balance	$ 71,401	$ 71,401
Goodwill reduction in conjunction with sale of CityInsurance	(3,020)	0
Goodwill acquired in conjunction with the acquisition of AFB	7,875	0
Ending balance	$ 76,256	$ 71,401

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Scheduled Maturities Of Time Deposits (Scheduled Maturities Of Time Deposits) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Maturities of Time Deposits [Abstract]
2016	$ 437,542
2017	213,288
2018	192,576
2019	127,682
2020	46,452
Over five years	16
Time Deposits, Total	$ 1,017,556	$ 1,026,663

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Scheduled Maturities Of Time Deposits (Scheduled Maturities Time Deposits Of $100,000 Or More) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Maturities of Time Deposits [Abstract]
Within one year	$ 35,160	$ 34,544
Over one through two years	16,491	16,318
Over two through three years	19,032	6,014
Over three through four years	10,907	19,808
Over four through five years	4,709	6,538
Over five years	0	0
Time Deposits Exceeding FDIC Insurance Limits	$ 86,299	$ 83,222

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Short-Term Debt (Narrative) (Details) - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Investment Securities And One To Four Family Residential Property Loans
Short-term Debt [Line Items]
Collateral pledged to the FHLB	$ 1.7	$ 1.7
City National
Short-term Debt [Line Items]
FHLB stock held	47,277
Unused FHLB funds	$ 1.6	$ 1.5

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Short-Term Debt (Summary Of Short-Term Borrowings) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Short-term Debt [Abstract]
Securities Sold under Agreements to Repurchase	$ 141,869	$ 134,931	$ 137,798
Advances from Federal Home Loan Banks	13,000	0	0
Customer repurchase agreements, avg outstanding	143,847	133,769	127,616
Federal Home Loan Bank, Advances, Activity for Year, Average Balance of Agreements Outstanding	1,352		63
Customer repurchase agreements, Max. outstanding at any month end	166,507	151,637	150,943
Federal Home Loan Bank, Advances, Activity for Year, Maximum Outstanding at any Month End	$ 13,000	$ 0	$ 0
Customer repurchase agreements, Weighted-averaged interest rate, During the year	0.22%	0.26%	0.25%
Federal Home Loan Bank, Advances, Activity for Year, Average Interest Rate at Period End	0.53%		0.31%
Customer repurchase agreements, Weighted-average interest rate, End of the year	0.20%	0.26%	0.25%
Federal Home Loan Bank, Advances, Activity for Year, Average Interest Rate at Period End	0.51%		0.31%

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Long-Term Debt (Components Of Long-Term Debt) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Long-term Debt, Unclassified [Abstract]
Long-term debt	$ 16,495	$ 16,495
Junior subordinated debentures, interest rate	4.01%	3.74%
Junior subordinated debentures, due date	Dec. 31, 2038	Dec. 31, 2038
Percent over three month LIBOR Rate	3.50%	3.50%
Junior subordinated debenture, Threshold in days	90 days	90 days

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Derivative Instruments (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($)
Maximum | Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Loss on Fair Value Hedge Ineffectiveness	$ 0.1

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Derivative Instruments (Fair Value Of Derivative Instruments) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Not Designated as Hedging Instrument [Member] | Other Assets
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	$ 334,204	$ 179,958
Fair Value	10,811	10,253
Not Designated as Hedging Instrument [Member] | Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	342,204	179,958
Fair Value	10,872	10,253
Designated as Hedging Instrument [Member] | Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	5,475	5,475
Fair Value	$ 61	$ 24

XML

Derivative Instruments (Change In Fair Value Of Derivative Instruments) (Details) - Other Income [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Not Designated as Hedging Instrument [Member] | Derivative assets
Derivatives, Fair Value [Line Items]
Change in Fair Value	$ 1,030	$ 6,811	$ (10,148)
Not Designated as Hedging Instrument [Member] | Derivative liabilities
Derivatives, Fair Value [Line Items]
Change in Fair Value	(1,190)	(6,811)	10,148
Designated as Hedging Instrument [Member] | Derivative assets
Derivatives, Fair Value [Line Items]
Change in Fair Value	25	0	0
Designated as Hedging Instrument [Member] | Derivative liabilities
Derivatives, Fair Value [Line Items]
Change in Fair Value	$ 12	$ 0	$ 0

XML

Derivative Instruments Derivative Instruments (Derivative Assets Offset in The Consolidated Balance Sheet) (Details) - Not Designated as Hedging Instrument [Member] - Interest Rate Swap $ in Thousands	Dec. 31, 2015 USD ($)
Offsetting Assets [Line Items]
Gross Amounts of Recognized Assets	$ 10,811
Derivative assets	10,811
Derivative Asset, Fair Value of Collateral	10,811
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	10,811
Derivative Asset, Fair Value, Amount Offset Against Collateral	$ 0

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Derivative Instruments Derivative Instruments (Derivative Liabilities Offset in the Consolidated Balance Sheet) (Details) - Interest Rate Swap $ in Thousands	Dec. 31, 2015 USD ($)
Not Designated as Hedging Instrument [Member]
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	$ 10,872
Derivative Liability	10,872
Derivative Liability, Fair Value of Collateral	17,371
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	17,371
Derivative Liability, Fair Value, Amount Offset Against Collateral	0
Designated as Hedging Instrument [Member]
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	61
Derivative Liability	61
Derivative Liability, Fair Value of Collateral	97
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	97
Derivative Liability, Fair Value, Amount Offset Against Collateral	$ 0

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Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Examination [Line Items]
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations		$ (910)	$ (2,805)
Income tax interest and penalties		100	100	$ 100
Income tax accrued and penalties		$ 400	$ 400
Scenario, Forecast
Income Tax Examination [Line Items]
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations	$ (900)

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Income Taxes (Summary Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Previously securitized loans	$ 4,337	$ 4,703
Allowance for loan losses	7,412	7,413
Deferred compensation payable	4,058	3,966
Underfunded pension liability	2,792	3,113
Accrued expenses	1,789	2,451
Impaired assets	797	1,172
Impaired securities losses	6,719	8,377
Intangible assets	2,194	4,946
Other	3,964	3,292
Total Deferred Tax Assets	34,062	39,433
Unrealized securities gains	585	741
Other	3,503	1,926
Total Deferred Tax Liabilities	4,088	2,667
Net Deferred Tax Assets	$ 29,974	$ 36,766

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Income Taxes (Summary Of Income Tax Expense) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Federal									$ 20,830	$ 20,629	$ 18,808
State									957	(943)	1,781
Total current									21,787	19,686	20,589
Total deferred									6,627	4,585	4,686
Income tax expense	$ 5,793	$ 5,129	$ 6,125	$ 11,367	$ 5,961	$ 6,010	$ 6,497	$ 5,803	$ 28,414	$ 24,271	$ 25,275

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Income Taxes (Reconciliation Of The Significant Differences Between The Federal Statutory Income Tax Rate And Effective Income Tax Rate) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Computed federal taxes at statutory rate									$ 28,879	$ 27,031	$ 25,722
State income taxes, net of federal tax benefit									887	(482)	1,982
Tax-exempt interest income									(498)	(500)	(616)
Bank-owned life insurance									(1,181)	(1,074)	(1,187)
Tax reserve adjustment									0	0	24
Other items, net									327	(704)	(650)
Income tax expense	$ 5,793	$ 5,129	$ 6,125	$ 11,367	$ 5,961	$ 6,010	$ 6,497	$ 5,803	$ 28,414	$ 24,271	$ 25,275

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Income Taxes (Reconciliatoin Of The Unrecognized Tax Benefits Rollforward) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of the beginning and ending balance of unrecognized tax benefits
Beginning Balance	$ 2,398	$ 4,717
Additions for current year tax positions	299	486
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions	377	0
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions	0	0
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities	0	0
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations	(910)	(2,805)
Ending Balance	$ 2,164	$ 2,398

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Employee Benefit Plans (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Defined Benefit Plan, Contributions by Employer	$ 4,399,000	$ 409,000
Incentive stock options and SARs exercisable period	10 years
Stock awards had been awarded	438,515
Proceeds from exercise of stock options	$ 3,000,000	600,000	$ 4,200,000
Total intrinsic value of stock options exercised	900,000	300,000	900,000
Stock-based compensation expense	200,000	200,000	200,000
Income tax benefit recognized related to stock-based compensation	300,000		300,000
Unrecognized stock-based compensation expense	$ 400,000
Weighted-average period, unrecognized expense expected to be recognized	1 year 3 months
Stock-based compensation expense related to restricted shares	$ 1,200,000	1,000,000	800,000
Total expense associated with the retirement benefit plan	$ 700,000	$ 800,000	800,000
Number of shares of the Company's common stock held by the 401(k)	291,736	303,443
Recorded a pension liability	$ 2,300,000	$ 6,700,000
Underfunded pension liability	4,800,000	5,300,000
Executive officers accrued benefit liability	2,000,000	2,000,000
Deferred compensation agreement costs	200,000	200,000	$ 200,000
Deferred compensation agreement liabilities	6,500,000	6,700,000
Cash surrender value of company owned life insurance	8,000,000	7,800,000
Non-Vested Restricted Shares
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Unrecognized stock-based compensation expense	$ 2,900,000
Weighted-average period, unrecognized expense expected to be recognized	3 years 1 month
Restricted Stock
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock awards had been awarded	242,996
Performance Shares [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	33.33%
Maximum
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Common stock issued upon the exercise of stock options, SARs and stock awards	750,000
Income tax benefit recognized related to stock-based compensation		$ 100,000
Horizon Defined Benefit Plan
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Defined Benefit Plan, Contributions by Employer	$ 4,400,000
Overall investment return goal above stated indices	0.50%
Moving average basis	5 years
Maximum percent of plan assets in any one security	15.00%
Maximum percent of plan assets in any on industry	25.00%
Maximum percent of plan assets in foreign securities	30.00%
Anticipated next year plan contributions	$ 0
Community Defined Benefit Plan
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Defined Benefit Plan, Contributions by Employer	$ 0
Defined benefit plan, allocation allowance	5.00%
Anticipated next year plan contributions	$ 0
Community Defined Benefit Plan | Maximum
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Moving average basis	5 years
Allocation for sub-asset class within equity and fixed classes	150.00%
Community Defined Benefit Plan | Minimum
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Moving average basis	3 years
Allocation for sub-asset class within equity and fixed classes	50.00%
Pentegra Defined Benefit Plan for Financial Institutions
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Defined Benefit Plan, Funded Percentage	104.86%
Share-based Compensation Award, Tranche One [Member] | Performance Shares [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Mean Return on Average Assets of CHCO Time Period	3 years
Median Return on Average Assets of all FDIC Insured Depository Institutions Time Period	20 years
Share-based Compensation Award, Tranche Two [Member] | Performance Shares [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Mean Return on Average Assets of CHCO Time Period	4 years
Median Return on Average Assets of all FDIC Insured Depository Institutions Time Period	20 years
Share-based Compensation Award, Tranche Three [Member] | Performance Shares [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Mean Return on Average Assets of CHCO Time Period	5 years
Median Return on Average Assets of all FDIC Insured Depository Institutions Time Period	20 years

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Employee Benefit Plans (Summary Of Stock Option Activity) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options Outstanding, beginning balance	167,554	173,601	289,544
Options, Granted	12,961	13,953	15,475
Options, Exercised	(81,500)	(20,000)	(126,168)
Options, Forfeited	(4,000)	0	(5,250)
Options Outstanding, ending balance	95,015	167,554	173,601
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Weighted-Average Exercise Price, Outstanding, beginning balance	$ 36.74	$ 35.26	$ 34.38
Weighted-Average Exercise Price, Granted	46.41	44.43	37.74
Weighted-Average Exercise Price, Exercised	36.63	29.19	33.57
Weighted-Average Exercise Price, Forfeited	31.66	0.00	34.56
Weighted-Average Exercise Price, Outstanding, ending balance	$ 38.38	$ 36.74	$ 35.26
Options, Exercisable at end of year	19,750	89,750	76,832
Weighted-Average Exercise Price, Exercisable at end of year	$ 34.54	$ 36.73	$ 37.97
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares	75,265	77,804	96,769	105,960
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	12,961	13,953	15,475
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares	15,500	32,918	23,166
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares	0	0	1,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value	$ 39.38	$ 36.76	$ 33.10	$ 33.81
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	46.41	44.43	37.74
Weighted-Average Exercise Price, Vested during the year	32.09	29.25	39.64
Weighted-Average Exercise Price, Forfeited during the year	$ 0.00	$ 0.00	$ 30.38

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Employee Benefit Plans (Stock Options Outstanding And Exercisable) (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
No. of Options Outstanding | shares	95,015
Aggregate Intrinsic Value | $	$ 700
No. of Options Currently Exercisable | shares	19,750
Aggregate Intrinsic Value of Options Currently Exercisable | $	$ 219
Ranges Of Exercise Prices Twenty Five Point Zero To Twenty Nine Point Ninety Nine [Member] [Domain]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
No. of Options Outstanding | shares	1,250
Weighted-Average Exercise Price	$ 28.15
Weighted Average Remaining Contractual Life, Outstanding	3 years 3 months
Aggregate Intrinsic Value | $	$ 22
No. of Options Currently Exercisable | shares	1,250
Weighted-Average Exercise Price of Options Currently Exercisable	$ 28.15
Weighted Average Remaining Contractual Life, Exercisable	3 years 3 months
Aggregate Intrinsic Value of Options Currently Exercisable | $	$ 22
Ranges Of Exercise Prices Twenty Five Point Zero To Twenty Nine Point Ninety Nine [Member] [Domain] | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ranges Of Exercise Prices	$ 25.00
Ranges Of Exercise Prices Twenty Five Point Zero To Twenty Nine Point Ninety Nine [Member] [Domain] | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ranges Of Exercise Prices	$ 29.99
Ranges Of Exercise Prices Thirty Point Zero To Thirty Four Point Ninety Nine [Member] [Domain] [Domain]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
No. of Options Outstanding | shares	11,500
Weighted-Average Exercise Price	$ 31.38
Weighted Average Remaining Contractual Life, Outstanding	3 years 8 months
Aggregate Intrinsic Value | $	$ 164
No. of Options Currently Exercisable | shares	11,500
Weighted-Average Exercise Price of Options Currently Exercisable	$ 31.38
Weighted Average Remaining Contractual Life, Exercisable	3 years 8 months
Aggregate Intrinsic Value of Options Currently Exercisable | $	$ 164
Ranges Of Exercise Prices Thirty Point Zero To Thirty Four Point Ninety Nine [Member] [Domain] [Domain] | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ranges Of Exercise Prices	$ 30.00
Ranges Of Exercise Prices Thirty Point Zero To Thirty Four Point Ninety Nine [Member] [Domain] [Domain] | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ranges Of Exercise Prices	$ 34.99
Ranges Of Exercise Prices Thirty Five Point Zero To Thirty Nine Point Ninety Nine [Member] [Domain] [Domain]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
No. of Options Outstanding | shares	48,351
Weighted-Average Exercise Price	$ 36.04
Weighted Average Remaining Contractual Life, Outstanding	6 years 2 months
Aggregate Intrinsic Value | $	$ 464
No. of Options Currently Exercisable | shares	0
Weighted-Average Exercise Price of Options Currently Exercisable	$ 0.00
Aggregate Intrinsic Value of Options Currently Exercisable | $	$ 0
Ranges Of Exercise Prices Thirty Five Point Zero To Thirty Nine Point Ninety Nine [Member] [Domain] [Domain] | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ranges Of Exercise Prices	$ 35.00
Ranges Of Exercise Prices Thirty Five Point Zero To Thirty Nine Point Ninety Nine [Member] [Domain] [Domain] | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ranges Of Exercise Prices	$ 39.99
Ranges Of Exercise Prices Forty Point Zero To Forty Four Point Ninety Nine [Member] [Domain] [Domain]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
No. of Options Outstanding | shares	20,953
Weighted-Average Exercise Price	$ 43.24
Weighted Average Remaining Contractual Life, Outstanding	6 years 3 months
Aggregate Intrinsic Value | $	$ 50
No. of Options Currently Exercisable | shares	7,000
Weighted-Average Exercise Price of Options Currently Exercisable	$ 40.88
Weighted Average Remaining Contractual Life, Exercisable	2 years 3 months
Aggregate Intrinsic Value of Options Currently Exercisable | $	$ 33
Ranges Of Exercise Prices Forty Point Zero To Forty Four Point Ninety Nine [Member] [Domain] [Domain] | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ranges Of Exercise Prices	$ 40.00
Ranges Of Exercise Prices Forty Point Zero To Forty Four Point Ninety Nine [Member] [Domain] [Domain] | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ranges Of Exercise Prices	$ 44.99
Ranges Of Exercise Prices Forty Five Point Zero To Fifty Point Zero [Member] [Domain] [Domain]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
No. of Options Outstanding | shares	12,961
Weighted-Average Exercise Price	$ 46.61
Weighted Average Remaining Contractual Life, Outstanding	9 years 2 months
Aggregate Intrinsic Value | $	$ 0
No. of Options Currently Exercisable | shares	0
Weighted-Average Exercise Price of Options Currently Exercisable	$ 0.00
Aggregate Intrinsic Value of Options Currently Exercisable | $	$ 0
Ranges Of Exercise Prices Forty Five Point Zero To Fifty Point Zero [Member] [Domain] [Domain] | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ranges Of Exercise Prices	$ 45.00
Ranges Of Exercise Prices Forty Five Point Zero To Fifty Point Zero [Member] [Domain] [Domain] | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ranges Of Exercise Prices	$ 50.00

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Employee Benefit Plans (Weighted Average Assumptions Estimate The Fair Value Of Options Granted) (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation [Abstract]
Risk-free interest rate	1.95%	2.42%	1.88%
Expected dividend yield	3.50%	3.60%	3.70%
Volatility factor	45.40%	48.75%	41.35%
Expected life of option	7 years	8 years	8 years

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Employee Benefit Plans (Restricted Shares Activity And Related Information) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation [Abstract]
Restricted Awards, beginning balance	163,431	142,469	116,711
Restricted Awards, Granted	26,840	27,162	35,083
Restricted Awards, Forfeited/Vested	(17,350)	(6,200)	(9,325)
Restricted Awards, ending balance	172,921	163,431	142,469
Average Market Price at Grant, Granted	$ 46.45	$ 39.72	$ 38.07

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Employee Benefit Plans (Summary Of Activity Within The Defined Benefit Plan) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value at beginning of measurement period	$ 14,667	$ 14,726
Actual gain (loss) on plan assets	(231)	496
Defined Benefit Plan, Contributions by Employer	4,399	409
Benefits paid	(1,400)	(964)
Fair value at End of measurement period	17,435	14,667	$ 14,726
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit obligation at beginning of measurement period	(21,390)	(17,524)
Interest cost	(813)	(836)	(776)
Actuarial loss	1,103	(3,994)
Benefit obligation at end of measurement period	(19,700)	(21,390)	$ (17,524)
Funded status	(2,265)	(6,723)
Benefits paid	1,400	964
Other comprehensive loss	$ (4,760)	$ (5,350)
Weighted-average assumptions for balance sheet liability at end of year, Discount rate	4.26%	3.93%
Weighted-average assumptions for balance sheet liability at end of year, Expected long-term rate of return	5.75%	6.92%
Weighted-average assumptions for benefit cost at beginning of year, Discount rate	3.93%	4.89%
Weighted-average assumptions for benefit cost at beginning of year, Expected long-term rate of return	6.92%	7.35%

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Employee Benefit Plans (Net Periodic Pension Cost Of The Defined Benefit Plan) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation [Abstract]
Interest cost	$ 813	$ 836	$ 776
Expected return on plan assets	(937)	(1,032)	(979)
Net amortization and deferral	960	696	1,106
Net Periodic Pension Cost	$ 836	$ 500	$ 903

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Employee Benefit Plans Employee Benefit Plans (Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Loss [Abstract]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax	$ 910	$ (3,906)	$ 3,469
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), Tax	(320)	1,436	(1,332)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), Net of Tax	590	(2,470)	$ 2,137
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax	7,552	8,463
Underfunded pension liability	(2,792)	(3,113)
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax	$ 4,760	$ 5,350

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Employee Benefit Plans (Summary Of Expected Benefit Payments) (Details) $ in Thousands	Dec. 31, 2015 USD ($)
Share-based Compensation [Abstract]
2016	$ 1,047
2017	1,144
2018	1,245
2019	1,100
2020	1,133
2021 through 2025	$ 5,782

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Employee Benefit Plans (Summary Of Assets Segregated By Level Of Valuation Inputs Within The Fair Value Hierarchy) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
Total	$ 17,435	$ 14,667	$ 14,726
Level 1
Defined Benefit Plan Disclosure [Line Items]
Total	11,401	9,734
Level 2
Defined Benefit Plan Disclosure [Line Items]
Total	5,361	4,337
Level 3
Defined Benefit Plan Disclosure [Line Items]
Total	673	596
Cash and Cash Equivalents
Defined Benefit Plan Disclosure [Line Items]
Total	1,441	959
Cash and Cash Equivalents | Level 1
Defined Benefit Plan Disclosure [Line Items]
Total	1,441	959
Mutual Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total	5,617	6,162
Mutual Funds [Member] | Level 1
Defined Benefit Plan Disclosure [Line Items]
Total	5,473	5,656
Mutual Funds [Member] | Level 2
Defined Benefit Plan Disclosure [Line Items]
Total	144	506
Hedge Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total	2,651	1,610
Hedge Funds [Member] | Level 1
Defined Benefit Plan Disclosure [Line Items]
Total	607	0
Hedge Funds [Member] | Level 2
Defined Benefit Plan Disclosure [Line Items]
Total	1,371	1,014
Hedge Funds [Member] | Level 3
Defined Benefit Plan Disclosure [Line Items]
Total	673	596
Common Stock [Member]
Defined Benefit Plan Disclosure [Line Items]
Total	5,082	3,941
Common Stock [Member] | Level 1
Defined Benefit Plan Disclosure [Line Items]
Total	3,880	3,119
Common Stock [Member] | Level 2
Defined Benefit Plan Disclosure [Line Items]
Total	1,202	822
Mortgage-Backed Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total	288	53
Mortgage-Backed Securities [Member] | Level 2
Defined Benefit Plan Disclosure [Line Items]
Total	288	53
Government and GSE Bonds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total	1,313	1,171
Government and GSE Bonds [Member] | Level 2
Defined Benefit Plan Disclosure [Line Items]
Total	1,313	1,171
Corporate Bond [Member]
Defined Benefit Plan Disclosure [Line Items]
Total	1,043	771
Corporate Bond [Member] | Level 2
Defined Benefit Plan Disclosure [Line Items]
Total	$ 1,043	$ 771

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Employee Benefit Plans (Summary Of Current Allocation Percentages Of Plan Assets) (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Horizon Defined Benefit Plan
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	100.00%
Percentage of Plan Assets	100.00%	100.00%
Horizon Defined Benefit Plan | Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	63.00%
Allowable-Allocation Range, Minimum	40.00%
Allowable-Allocation Range, Maximum	90.00%
Percentage of Plan Assets	51.00%	53.00%
Horizon Defined Benefit Plan | Debt Securities
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	15.00%
Allowable-Allocation Range, Minimum	10.00%
Allowable-Allocation Range, Maximum	40.00%
Percentage of Plan Assets	20.00%	23.00%
Horizon Defined Benefit Plan | Cash and Cash Equivalents
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	2.00%
Allowable-Allocation Range, Minimum	3.00%
Allowable-Allocation Range, Maximum	10.00%
Percentage of Plan Assets	10.00%	9.00%
Horizon Defined Benefit Plan | Other Securities
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	20.00%
Allowable-Allocation Range, Minimum	0.00%
Allowable-Allocation Range, Maximum	25.00%
Percentage of Plan Assets	19.00%	15.00%
Community Defined Benefit Plan
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	100.00%
Percentage of Plan Assets	100.00%	100.00%
Community Defined Benefit Plan | Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	25.00%
Allowable-Allocation Range, Minimum	20.00%
Allowable-Allocation Range, Maximum	30.00%
Percentage of Plan Assets	25.00%	25.00%
Community Defined Benefit Plan | Debt Securities
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	75.00%
Allowable-Allocation Range, Minimum	70.00%
Allowable-Allocation Range, Maximum	80.00%
Percentage of Plan Assets	75.00%	75.00%

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Related Party Transactions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Related Party Transactions [Abstract]
Granted loans to certain non-executive officers and directors	$ 14.2	$ 4.5
Total principal additions	10.8
Total principal reductions	$ 1.1

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Commitments And Contingencies (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Standby letters of credit
Commitments And Contingencies [Line Items]
Contractual obligations	$ 5,086	$ 4,592
Commercial letters of credit
Commitments And Contingencies [Line Items]
Contractual obligations	2,312	1,991
Home equity lines | Commitments to extend credit:
Commitments And Contingencies [Line Items]
Contractual obligations	183,017	175,312
Commercial real estate | Commitments to extend credit:
Commitments And Contingencies [Line Items]
Contractual obligations	84,672	50,298
Other commitments | Commitments to extend credit:
Commitments And Contingencies [Line Items]
Contractual obligations	$ 177,491	$ 145,283

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Preferred Stock Preferred Stock (Details)	Dec. 31, 2015 shares
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Preferred shares outstanding	0

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Regulatory Requirements And Capital Ratios (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
City National
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Dividends payable	$ 18,200
Parent Company
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Cash balance	$ 46,672	$ 12,521

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Regulatory Requirements And Capital Ratios (Schedule Of Capital Amounts And Ratios) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Parent Company
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common equity tier one capital amount	$ 345,620
Common equity tier one ratio	13.65%
Common equity tier one, minimum capital required basel III phase in schedule, capital amount	$ 113,919
Common equity tier one captial ratio, minimum capital required basel III phase in schedule	4.50%
Common equity tier one capital required, minimum capital required basel III fully phased in	$ 177,207
Common equity tier one capital ratio, minimum capital required basel III fully phased in	7.00%
Common equity tier one capital required to be well capitalized	$ 164,549
Common equity tier one capital ratio required to be well capitalized	6.50%
Total Capital, Amount	$ 382,180	$ 353,873
Total Capital, Ratio	15.10%	14.20%
Capital Required for Capital Adequacy		$ 199,446
Total Capital, minimum capital required basel III phase in schedule	$ 202,522
Total Capital Ratio, minimum capital required basel III phase in schedule	8.00%
Total Capital, minimum capital required basel III fully phased in	$ 265,810
Total Capital Ratio, minimum capital required basel III fully phased in	10.50%
Capital Required to be Well Capitalized	$ 253,152	$ 249,308
Total Capital, Minimum Ratio	10.00%	8.00%
Capital Required to be Well Capitalized to Risk Weighted Assets		10.00%
Tier I Capital, Amount	$ 361,620	$ 333,163
Tier one risk based capital, minimum capital required basel III phase in schedule	$ 151,891
Tier one risk based capital ratio minimum capital required basel III phase in schedule	6.00%
Tier one risk based capital, minimum capital required basel III fully phased in	$ 215,180
Tier one risk based capital ratio, minimum capital required basel III fully phased in	8.50%
Tier One Risk Based Capital Required to be Well Capitalized	$ 202,522	$ 149,585
Tier I Capital, Ratio	14.28%	13.40%
Tier One Risk Based Capital Required for Capital Adequacy		$ 99,723
Tier I Capital, Well Capitalized Ratio	8.00%	6.00%
Tier I Capital, Minimum Ratio		4.00%
Tier 1 Capital, Average Assets, Amount	$ 361,620	$ 333,163
Tier I Capital, Average Assets, Ratio	10.15%	9.90%
Tier One Leverage Capital Required for Capital Adequacy		$ 134,721
Tier One Leverage Capital, minimum capital required basel III phase in schedule	$ 142,521
Tier One Leverage Ratio, minimum capital required basel III phase in schedule	4.00%
Tier One Leverage Capital, minimum capital required basel III fully phased in	$ 142,521
Tier One Leverage Ratio, minimum capital required basel III fully phased in	4.00%
Tier One Leverage Capital Required to be Well Capitalized	$ 178,151	$ 168,402
Tier 1 Capital, Average Assets, Well Capitalized Ratio	5.00%	5.00%
Tier I Capital, Average Assets, Minimum Ratio		4.00%
City National
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common equity tier one capital amount	$ 264,812
Common equity tier one ratio	10.53%
Common equity tier one, minimum capital required basel III phase in schedule, capital amount	$ 113,209
Common equity tier one captial ratio, minimum capital required basel III phase in schedule	4.50%
Common equity tier one capital required, minimum capital required basel III fully phased in	$ 176,103
Common equity tier one capital ratio, minimum capital required basel III fully phased in	7.00%
Common equity tier one capital required to be well capitalized	$ 163,524
Common equity tier one capital ratio required to be well capitalized	6.50%
Total Capital, Amount	$ 308,804	$ 315,095
Total Capital, Ratio	12.27%	12.70%
Capital Required for Capital Adequacy		$ 198,074
Total Capital, minimum capital required basel III phase in schedule	$ 201,260
Total Capital Ratio, minimum capital required basel III phase in schedule	8.00%
Total Capital, minimum capital required basel III fully phased in	$ 264,154
Total Capital Ratio, minimum capital required basel III fully phased in	10.50%
Capital Required to be Well Capitalized	$ 251,575	$ 247,593
Total Capital, Minimum Ratio	10.00%	8.00%
Capital Required to be Well Capitalized to Risk Weighted Assets		10.00%
Tier I Capital, Amount	$ 288,752	$ 294,870
Tier one risk based capital, minimum capital required basel III phase in schedule	$ 150,945
Tier one risk based capital ratio minimum capital required basel III phase in schedule	6.00%
Tier one risk based capital, minimum capital required basel III fully phased in	$ 213,839
Tier one risk based capital ratio, minimum capital required basel III fully phased in	8.50%
Tier One Risk Based Capital Required to be Well Capitalized	$ 201,260	$ 148,556
Tier I Capital, Ratio	11.48%	11.90%
Tier One Risk Based Capital Required for Capital Adequacy		$ 99,037
Tier I Capital, Well Capitalized Ratio	8.00%	6.00%
Tier I Capital, Minimum Ratio		4.00%
Tier 1 Capital, Average Assets, Amount	$ 288,752	$ 294,870
Tier I Capital, Average Assets, Ratio	8.14%	8.80%
Tier One Leverage Capital Required for Capital Adequacy		$ 133,991
Tier One Leverage Capital, minimum capital required basel III phase in schedule	$ 141,874
Tier One Leverage Ratio, minimum capital required basel III phase in schedule	4.00%
Tier One Leverage Capital, minimum capital required basel III fully phased in	$ 141,874
Tier One Leverage Ratio, minimum capital required basel III fully phased in	4.00%
Tier One Leverage Capital Required to be Well Capitalized	$ 177,343	$ 167,489
Tier 1 Capital, Average Assets, Well Capitalized Ratio	5.00%	5.00%
Tier I Capital, Average Assets, Minimum Ratio		4.00%

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Fair Value Measurements (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Goodwill, Impairment Loss	$ 0	$ 0
Fair Value Inputs, Prepayment Rate	1.00%	1.00%
Annual prepayments maturity	100.00%	100.00%
Additional basis points	150.00%	150.00%
Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Collateral discount	20.00%	20.00%
Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Collateral discount	30.00%	30.00%

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Fair Value Measurements (Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring And Nonrecurring Basis) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
U.S. Government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets, Recurring	$ 5	$ 1,827
U.S. Government agencies | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets, Recurring	5	1,827
Obligations of states and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets, Recurring	50,697	42,096
Obligations of states and political subdivisions | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets, Recurring	50,697	42,096
U.S. Government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets, Recurring	288,197	187,328
U.S. Government agencies | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets, Recurring	288,197	187,328
Private label
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets, Recurring	1,231	1,704
Private label | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets, Recurring	1,231	1,704
Trust preferred securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets, Recurring	5,858	9,036
Trust preferred securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets, Recurring	3,762	7,165
Trust preferred securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets, Recurring	2,096	1,871
Corporate securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets, Recurring	18,693	7,317
Corporate securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets, Recurring	18,693	7,317
Marketable equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets, Recurring	3,273	3,213
Marketable equity securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets, Recurring	3,273	3,213
Investment funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets, Recurring	1,512	1,522
Investment funds | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets, Recurring	1,512	1,522
Derivative assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets, Recurring	10,811	10,253
Derivative assets | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets, Recurring	10,811	10,253
Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets, Nonrecurring	8,482	6,517
ProvisionForLoanLossesonImpairedLoansDuringPeriod	0	(153)
Impaired loans | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets, Nonrecurring	8,482	6,517
Other real estate owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets, Nonrecurring	6,518	8,179
Write Downs Included In Other Noninterest Expense	937	464
Other real estate owned | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets, Nonrecurring	6,518	8,179
Derivative liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Liabilities, Recurring	10,933	10,277
Derivative liabilities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Liabilities, Recurring	$ 10,933	$ 10,277

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Fair Value Measurements (Schedule Of Reconciliation Of Investment Securities Available For Sale Measured At Fair Value On A Recurring Basis Level 3 Assets) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 1,871	$ 3,887
Impairment losses on investment securities	0	0
Included in other comprehensive income	225	(1,862)
Dispositions	0	(154)
Transfers into Level 3	0	0
Ending Balance	$ 2,096	$ 1,871

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Fair Value Measurements Schedule of Level 3 Financial Assets and Liabilities Measured on A Recurring Basis (Details) - Level 3 - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair Value Measurement On Nonrecurring Basis Asset And Liabilities Value [Roll Forward]
Beginning balance	$ 6,517	$ 11,714
Loans classified as impaired during the period	2,349	0
Specific valuation allowance allocations	0	0
Fair Value	2,349	0
(Additional) reduction in specific valuation allowance allocations	252	628
Paydowns, payoffs, other activity	(636)	(5,825)
Ending balance	$ 8,482	$ 6,517

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Fair Value Measurements (Schedule Of OREO Measured And Reported At Fair Value) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Other Real Estate [Roll Forward]
Beginning Balance	$ 8,179	$ 8,470
Acquired	0	0
Disposals	(4,456)	(5,573)
Ending Balance	6,518	8,179
OREO Remeasured At Initial Recognition
Other Real Estate [Roll Forward]
Carrying value of foreclosed assets prior to remeasurement	3,732	5,746
Charge-offs recognized in the allowance for loan losses	0	0
Fair value	3,732	5,746
OREO Remeasured Subsequent To Initial Recognition
Other Real Estate [Roll Forward]
Carrying value of foreclosed assets prior to remeasurement	3,937	1,632
Fair value	3,000	1,168
Write-downs included in other non-interest expense	$ (937)	$ (464)

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Fair Value Measurements (Schedule Of Estimates Of Fair Value Of Financial Instruments) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Assets:
Securities available-for-sale	$ 369,466	$ 254,043
Securities held-to-maturity	90,810	94,191
Carrying Amount
Assets:
Cash and cash equivalents	70,113	148,228
Securities available-for-sale		254,043
Securities held-to-maturity		90,786
Other securities		9,857
Net loans		2,631,916
Accrued interest receivable		6,826
Derivative assets	10,811	10,253
Liabilities:
Deposits		2,872,787
Short-term debt	154,869	134,931
Long-term debt		16,495
Derivative liabilities	10,933	10,277
Fair Value
Assets:
Cash and cash equivalents	70,113	148,228
Securities available-for-sale	369,466	254,043
Securities held-to-maturity	90,810	94,191
Other securities	12,915	9,857
Net loans	2,843,973	2,638,911
Accrued interest receivable	7,432	6,826
Derivative assets	10,811	10,253
Liabilities:
Deposits	3,085,908	2,879,126
Short-term debt	154,872	134,934
Long-term debt	16,457	16,464
Derivative liabilities	10,933	10,277
Level 1
Assets:
Cash and cash equivalents	70,113	148,228
Securities available-for-sale	4,785	4,735
Securities held-to-maturity	0	0
Other securities	0	0
Net loans	0	0
Accrued interest receivable	7,432	6,826
Derivative assets	0	0
Liabilities:
Deposits	2,066,419	1,846,124
Short-term debt	0	0
Long-term debt	0	0
Derivative liabilities	0	0
Level 2
Assets:
Cash and cash equivalents	0	0
Securities available-for-sale	362,585	247,437
Securities held-to-maturity	90,810	94,191
Other securities	12,915	9,857
Net loans	0	0
Accrued interest receivable	0	0
Derivative assets	10,811	10,253
Liabilities:
Deposits	1,019,489	1,033,002
Short-term debt	154,872	134,934
Long-term debt	16,457	16,464
Derivative liabilities	10,933	10,277
Level 3
Assets:
Cash and cash equivalents	0	0
Securities available-for-sale	2,096	1,871
Securities held-to-maturity	0	0
Other securities	0	0
Net loans	2,843,973	2,638,911
Accrued interest receivable	0	0
Derivative assets	0	0
Liabilities:
Deposits	0	0
Short-term debt	0	0
Long-term debt	0	0
Derivative liabilities	$ 0	$ 0

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City Holding Company (Parent Company Only) Financial Information (Condensed Balance Sheets) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Assets
Securities available-for-sale	$ 369,466	$ 254,043
Fixed assets	77,271	77,988
Other assets	36,957	35,909
Total Assets	3,714,059	3,461,633
Liabilities
Other liabilities	39,448	46,567
Total Liabilities	3,294,787	3,070,780
Total Shareholders’ Equity	419,272	390,853	$ 387,623	$ 333,274
Total Liabilities and Shareholders’ Equity	3,714,059	3,461,633
Parent Company
Assets
Cash	46,672	12,521
Securities available-for-sale	3,273	3,212
Investment in subsidiaries	388,201	380,348
Net Deferred Tax Assets	1,569	1,436
Fixed assets	8	9
Other assets	3,290	16,629
Total Assets	443,013	414,155
Liabilities
Junior subordinated debentures	16,495	16,495
Dividends payable	6,376	6,062
Accrued interest payable	30	26
Other liabilities	840	719
Total Liabilities	23,741	23,302
Total Shareholders’ Equity	419,272	390,853
Total Liabilities and Shareholders’ Equity	$ 443,013	$ 414,155

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City Holding Company (Parent Company Only) Financial Information (Condensed Statements Of Comprehensive Income) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Condensed Financial Statements, Captions [Line Items]
Investment securities gains	$ 0	$ 0	$ 2,116	$ 14	$ 184	$ 71	$ 818	$ 83
Interest expense	3,010	2,910	2,937	2,973	3,041	2,968	2,973	2,978	$ 11,830	$ 11,960	$ 13,301
Income tax benefit	5,793	5,129	6,125	11,367	5,961	6,010	6,497	5,803	28,414	24,271	25,275
Net income available to common shareholders	$ 13,515	$ 10,607	$ 11,983	$ 17,992	$ 14,530	$ 11,872	$ 12,757	$ 13,803	54,097	52,962	48,215
Total comprehensive income									54,424	53,793	44,647
Parent Company
Condensed Financial Statements, Captions [Line Items]
Dividends from subsidiaries									48,950	46,050	46,317
Investment securities gains									0	1,130	89
Other income									22	65	66
Income									48,972	47,245	46,472
Interest expense									618	605	617
Other expenses									1,170	849	2,352
Expenses									1,788	1,454	2,969
Income Before Income Taxes									47,184	45,791	43,503
Income tax benefit									(795)	(231)	(1,050)
Income Before Equity in Undistributed Net Income of Subsidiaries									47,979	46,022	44,553
Equity in undistributed net income of subsidiaries									6,118	6,940	3,662
Net income available to common shareholders									54,097	52,962	48,215
Total comprehensive income									$ 54,424	$ 53,793	$ 44,647

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City Holding Company (Parent Company Only) Financial Information (Condensed Statements Of Cash Flows) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating Activities
Net income available to common shareholders	$ 13,515	$ 10,607	$ 11,983	$ 17,992	$ 14,530	$ 11,872	$ 12,757	$ 13,803	$ 54,097	$ 52,962	$ 48,215
Adjustments to reconcile net income to net cash provided by operating activities:
Realized investment securities gains									(2,130)	(1,156)	(764)
Stock based compensation									1,793	1,535	1,282
Depreciation									6,088	6,087	5,757
Change in other assets									473	(8,262)	22,497
Change in other liabilities									(8,478)	1,363	(4,188)
Net Cash Provided by Operating Activities									47,895	53,354	75,893
Investing Activities
Proceeds from sales of available for sale securities									389	6,714	19,210
Payments to Acquire Business, Net of Cash Acquired									20,030	0	(21,853)
Net Cash Used in Investing Activities									(184,080)	(24,711)	(72,686)
Financing Activities
Dividends paid									(25,304)	(24,487)	(22,878)
Purchases of treasury stock									(7,055)	(27,957)	0
Exercise of stock options									3,000	600	4,200
Proceeds from Warrant Exercises									1,896	0	0
Net Cash Provided by (Used in) Financing Activities									58,070	33,709	(2,325)
Increase (decrease) in Cash and Cash Equivalents									(78,115)	62,352	882
Cash and cash equivalents at beginning of period				148,228				85,876	148,228	85,876	84,994
Cash and Cash Equivalents at End of Period	70,113				148,228				70,113	148,228	85,876
Parent Company
Operating Activities
Net income available to common shareholders									54,097	52,962	48,215
Adjustments to reconcile net income to net cash provided by operating activities:
Realized investment securities gains									0	1,130	89
Amortization and accretion									0	0	5
Stock based compensation									3	199	205
Depreciation									1	1	1
Change in other assets									(13,338)	16,110	(1,656)
Change in other liabilities									314	2,146	(236)
Equity In Undistributed Earnings Of Subsidiaries									(6,118)	(6,940)	(3,662)
Net Cash Provided by Operating Activities									61,635	31,128	46,095
Investing Activities
Proceeds from sales of available for sale securities									0	2,334	137
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital									0	2,500	0
Payments to Acquire Business, Net of Cash Acquired									0	0	(12,708)
Net Cash Used in Investing Activities										4,834	(12,571)
Financing Activities
Dividends paid									(25,304)	(24,487)	(22,878)
Purchases of treasury stock									(7,055)	(27,957)	0
Exercise of stock options									2,979	580	3,428
Proceeds from Warrant Exercises									1,896	0	0
Net Cash Provided by (Used in) Financing Activities									(27,484)	(51,864)	(19,450)
Increase (decrease) in Cash and Cash Equivalents									34,151	(15,902)	14,074
Cash and cash equivalents at beginning of period				$ 12,521				$ 28,423	12,521	28,423	14,349
Cash and Cash Equivalents at End of Period	$ 46,672				$ 12,521				$ 46,672	$ 12,521	$ 28,423

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Summarized Quarterly Financial Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]
Interest income	$ 32,222	$ 30,768	$ 31,720	$ 32,364	$ 32,282	$ 32,438	$ 31,828	$ 33,018	$ 127,074	$ 129,566	$ 138,539
Taxable equivalent adjustment	(179)	(147)	(144)	(142)	(164)	(152)	(151)	(153)
Interest income (FTE)	32,401	30,915	31,864	32,506	32,446	32,590	31,979	33,171
Interest expense	3,010	2,910	2,937	2,973	3,041	2,968	2,973	2,978	11,830	11,960	13,301
Net Interest Income	29,391	28,005	28,927	29,533	29,405	29,622	29,006	30,193
Provision for loan losses	2,813	451	2,836	888	384	1,872	435	1,363	6,988	4,054	6,848
Investment securities gains (losses)	0	0	2,116	14	184	71	818	83
Noninterest income	14,074	13,706	13,289	24,007	14,485	14,538	14,321	14,222	67,206	58,722	58,006
Noninterest expense	21,165	25,377	23,244	23,165	23,035	24,325	24,305	23,376	92,951	95,041	102,906
Income before income tax expense	19,487	15,883	18,252	29,501	20,655	18,034	19,405	19,759	82,511	77,233	73,490
Income tax expense	5,793	5,129	6,125	11,367	5,961	6,010	6,497	5,803	28,414	24,271	25,275
Interest Income Taxable Equivalent Adjustment - Tax	179	147	144	142	164	152	151	153
Net Income Available to Common Shareholders	13,515	10,607	11,983	17,992	14,530	11,872	12,757	13,803	$ 54,097	$ 52,962	$ 48,215
Net earnings available to common shareholders	$ 13,362	$ 10,487	$ 11,849	$ 17,783	$ 14,374	$ 11,746	$ 12,626	$ 13,663
Basic earnings per common share	$ 0.88	$ 0.69	$ 0.78	$ 1.18	$ 0.95	$ 0.76	$ 0.81	$ 0.87	$ 3.54	$ 3.40	$ 3.07
Diluted earnings per common share	$ 0.88	$ 0.69	$ 0.78	$ 1.17	$ 0.95	$ 0.76	$ 0.80	$ 0.86	$ 3.53	$ 3.38	$ 3.04
Basic	15,158	15,178	15,104	15,067	15,096	15,363	15,556	15,631	15,123	15,403	15,564
Diluted	15,175	15,198	15,127	15,149	15,182	15,445	15,706	15,796	15,171	15,488	15,708

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Earnings Per Share [Abstract]
Distributed earnings allocated to common stock									$ (25,212)	$ (23,984)	$ (23,100)
Undistributed earnings allocated to common stock									28,272	28,416	24,678
Net earnings allocated to common shareholders									$ 53,484	$ 52,400	$ 47,778
Average common shares outstanding	15,158,000	15,178,000	15,104,000	15,067,000	15,096,000	15,363,000	15,556,000	15,631,000	15,123,000	15,403,000	15,564,000
Employee stock options and warrant outstanding									48,000	85,000	144,000
Shares for diluted earnings per share	15,175,000	15,198,000	15,127,000	15,149,000	15,182,000	15,445,000	15,706,000	15,796,000	15,171,000	15,488,000	15,708,000
Basic earnings per share	$ 0.88	$ 0.69	$ 0.78	$ 1.18	$ 0.95	$ 0.76	$ 0.81	$ 0.87	$ 3.54	$ 3.40	$ 3.07
Diluted earnings per share	$ 0.88	$ 0.69	$ 0.78	$ 1.17	$ 0.95	$ 0.76	$ 0.80	$ 0.86	$ 3.53	$ 3.38	$ 3.04
Options to purchase shares of common stock, anti-dilutive									13,000	0	0
Common stock exercise price, lower limit									$ 46.41

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Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Combined Federal And State Income Tax Rate	37.00%	37.00%
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ (4,159)	$ (4,990)
Other comprehensive income before reclassifications	1,671	1,560
Amounts reclassified from other comprehensive loss	(1,344)	(729)
Other Comprehensive Income (Loss), Net of Tax	327	831	$ (3,568)
Ending balance	(3,832)	(4,159)	(4,990)
Unrealized Gains (Losses) on Securities Available-for-Sale
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	1,191	(2,110)
Other comprehensive income before reclassifications	1,081	4,030
Amounts reclassified from other comprehensive loss	(1,344)	(729)
Other Comprehensive Income (Loss), Net of Tax	(263)	3,301
Ending balance	928	1,191	(2,110)
Defined Benefit Pension Plans
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(5,350)	(2,880)
Other comprehensive income before reclassifications	590	(2,470)
Amounts reclassified from other comprehensive loss	0	0
Other Comprehensive Income (Loss), Net of Tax	590	(2,470)
Ending balance	$ (4,760)	$ (5,350)	$ (2,880)

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Accumulated Other Comprehensive Income Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net securities (gains) losses reclassified into earnings									$ (2,130)	$ (1,156)	$ (764)
Net periodic employee benefit cost									(47,847)	(51,749)	(51,430)
Income tax expense	$ (5,793)	$ (5,129)	$ (6,125)	$ (11,367)	$ (5,961)	$ (6,010)	$ (6,497)	$ (5,803)	(28,414)	(24,271)	(25,275)
Net effect on accumulated other comprehensive loss	$ (13,515)	$ (10,607)	$ (11,983)	$ (17,992)	$ (14,530)	$ (11,872)	$ (12,757)	$ (13,803)	(54,097)	(52,962)	(48,215)
Unrealized Gains (Losses) on Securities Available-for-Sale | Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net securities (gains) losses reclassified into earnings									(2,130)	(1,156)	(764)
Income tax expense									786	427	282
Net effect on accumulated other comprehensive loss									$ (1,344)	$ (729)	$ (482)