Exhibit 99

NEWS RELEASE

For Immediate Release

January 25, 2005

For Further Information Contact:

Gerald R. Francis, President & CEO

(304) 769-1101

City Holding Company Announces Record 2004 Earnings

Charleston, West Virginia – City Holding Company, “the Company” (NASDAQ:CHCO), a $2.2 billion bank holding company headquartered in Charleston, today announced net income for the fourth quarter of 2004 of $11.1 million, or diluted earnings per share of $0.66 compared to $10.7 million, or $0.63 per diluted share in the fourth quarter of 2003. For the quarter, the Company achieved a return on assets of 2.01%, a return on equity of 20.5%, a net interest margin of 4.27%, and an efficiency ratio of 50.3%. The Company believes that these results place it among the most profitable banks within its peer group. At December 31, 2004 the market and book value of the Company’s common stock was $36.24 and $12.99 per share compared to a market and book value of $35.06 and $11.46 per share at December 31, 2003.

For the full year 2004, the Company reported record net income of $46.3 million, or diluted earnings per share of $2.75 compared to $43.7 million, or diluted earnings per share of $2.58 during 2003. Return on assets for the full year was 2.10%, return on equity was 22.4%, the net interest margin was 4.29% and the efficiency ratio was 48.5%.

Balance Sheet Trends

Between December 31, 2003 and December 31, 2004, total loans increased $62.6 million. Specifically, home equity loan balances increased by $25.7 million, or 9.1%; commercial real estate loan balances grew by $49.5 million, or 14.1%; and residential real estate loans grew by $23.3 million, or 5.2%. Offsetting growth in these targeted loan portfolios were decreases in indirect loans of $14.4 million and decreases in consumer loans of $15.5 million. The Company also experienced continued growth in average depository balances, which were 2.4% higher in the fourth quarter of 2004 as compared to the fourth quarter of 2003, increasing from $1.622 billion to $1.661 billion. This growth occurred in average non-interest bearing deposits, which were up 4.9%; interest-bearing demand deposits, which were up 4.0%; and time deposits, which were up 2.1%.

Previously Securitized Loans

Between 1997 and 1999, the Company originated and securitized $760 million in 125% loan-to-value junior-lien underlying mortgages in six separate pools known as City Capital Home Loan Trust 1997-1, 98-1, 98-2, 98-3, 98-4 and 99-1. The Company had a retained interest in the residual cash flows associated with these underlying mortgages after satisfying priority claims. Principal amounts owed to investors in the securitizations were evidenced by securities that were subject to redemption under certain circumstances. Once the Notes were redeemed, the Company became the beneficial owner of the mortgage loans and recorded the loans as “Previously Securitized Loans” within the loan portfolio. At December 31, 2003, the Company had exercised its early redemption option with respect to four of these trusts. The Company exercised its early redemption option with respect to the remaining two trusts during 2004. As a result, carrying balances for “Retained Interests” at December 31, 2003 became classified as “Previously Securitized Loans”. Therefore, the combined balances of Previously Securitized Loans and Retained Interests at December 31, 2003 of $93.1 million declined by $34.7 million to $58.4 million at December 31, 2004, a reduction of 37%.

Because the carrying value of the previously securitized loans incorporates discounts for expected prepayment and default rates, the carrying value of the loans is generally less than the contractual outstanding balance of the loans. As of December 31, 2004, the contractual outstanding balances of the mortgages securitized were $75.0 million while the carrying value of these assets was $58.4 million. The difference between the carrying value and the contractual outstanding balance of previously securitized loans is accreted into interest income over the life of the loans. Net credit losses on previously securitized loans are first recorded against this discount and, therefore, impact the yield earned on these loans. Should net credit losses exceed the reported balance of the discount over the life of the loans, credit losses would then be provided for through the Company’s provision and allowance for loan losses.

Because the previously securitized loans have been experiencing faster prepayment rates than previously assumed, the Company has revised its assumptions regarding prepayment rates upward as of December 31, 2004. This has two effects. First, balances are now expected to decrease more quickly than originally anticipated which will reduce the amount of net interest income earned on these assets. Second, the difference between the carrying value and the contractual outstanding balance must be amortized over a shorter anticipated average life, which will increase the anticipated yield on these loans. Based upon its revised assumptions, the Company now expects the net carrying value of previously securitized loan balances to decrease as shown below:

December 31, 2005	$36 million
December 31, 2006	$26 million
December 31, 2007	$19 million
December 31, 2008	$14 million

While the average balances outstanding are now projected to be lower, the yield is now expected to be in the range of 18% and 20%, depending on defaults and prepayment rates experienced on these loans in the future.

Net Interest Income

Tax equivalent net interest income in the fourth quarter of 2004 was $21.9 million, as compared to tax equivalent net interest income of $22.3 million in the fourth quarter of 2003. This decrease in net interest income can be attributed to lower interest income on Previously Securitized Loans and Retained Interests, which declined by $2.2 million between the fourth quarter of 2003 and the fourth quarter of 2004. The combined average balance of Retained Interests and Previously Securitized Loans fell from $94.4 million during the fourth quarter of 2003 to average balances of $66.3 million during the fourth quarter of 2004. Further, the yield fell from a combined average of 21.2% in the fourth quarter of 2003 to 16.8% in the fourth quarter of 2004. The Company partially offset this significant decline in interest income through loan growth as previously described. Also, the Company increased average investment security balances by approximately $125 million between the fourth quarter of 2003 and the fourth quarter of 2004. This increase in investment security balances was funded using lower rate advances from the Federal Home Loan Bank of Pittsburgh. Finally, during the fourth quarter of 2003, the Company reduced the cost of long-term debt through the redemption of $57.5 million in 9.125% trust preferred securities.

The average yield on interest-earning assets decreased 47 basis points from 6.33% in the fourth quarter of 2003 to 5.86% in the fourth quarter of 2004. This decrease reflects decreased balances of Previously Securitized Loans and Retained Interests, a decrease in the yield on previously securitized loans, significant growth in balances of investment securities which carry lower yields than loans, and the impact of earning assets that repriced downward due to lower interest rates.

The cost of interest-bearing liabilities increased 2 basis points from 1.95% in the fourth quarter of 2003 to 1.97% in the fourth quarter of 2004. The increased cost of interest-bearing liabilities is primarily due to an increase in the average balances of short-term borrowings and long-term debt from the Federal Home Loan Bank of Pittsburgh that were utilized to fund the Company’s increase in investment securities.

For the full year, net interest income on a fully tax equivalent basis increased 1.6% from $86.6 million in 2003 to $88.0 million in 2004. Interest income on previously securitized loans and retained interests declined by $2.5 million overall for 2004 as compared to 2003. As previously described, most of this impact was felt in the fourth quarter of 2004 when outstanding balances were at their lowest levels compared to the prior year. For the full year, the Company also experienced compression in yields on loans due to the overall level of interest rates. As new loans were originated, or existing loans were repriced to reflect existing lower levels of market interest rates, the yield on the loan portfolio fell during 2004. These negative effects were offset by increases in average loans outstanding; by an increase in average investment security balances outstanding of $143.6 million; and by a corresponding increase in the rates earned on these securities of 30 basis points. This leverage strategy was put into place during the fourth quarter of 2003 specifically to offset anticipated reductions in net interest income from declining balances of previously securitized loans.

Credit Quality

At December 31, 2004, the Allowance for Loan Losses (“ALLL”) was $17.8 million or 1.31% of total loans outstanding and 487% of non-performing loans. Adjusting for $58.4 million in previously securitized loans, where losses are not expected to flow through the allowance for loan losses but instead are reflected in the yield on these assets, the ALLL represents 1.38% of loans net of previously securitized loans. At December 31, 2003, the ALLL was $21.4 million or 1.66% of total loans outstanding and 529% of non-performing loans. The Company believes that its methodology for determining its ALLL adequately provides for probable losses inherent in the loan portfolio at December 31, 2004. The Company recorded no provision for loan losses in the fourth quarter of 2004 or for the year ended December 31, 2004.

During the fourth quarter of 2004, the Company had gross charge-offs of $1.334 million. These charge-offs were offset by $0.612 million in recoveries, resulting in net charge-offs of $0.722 million. These charged-off loans had been adequately considered in determining the adequacy of the allowance for loan losses in prior periods. Of the net charge-offs of $0.722 million, net charge-offs on installment loans represented $0.311 million, or 43% of total net charge-offs. Installment loans include indirect auto loans and other unsecured consumer loans that have not actively been underwritten since 2001. Net charge-offs on these loans have been steadily declining in line with the decline in outstanding balances. Also, net charge-offs on depository accounts represented $0.348 million, or 48% of total net charge-offs. While charge-offs on depository accounts are appropriately taken against the ALLL, the revenue associated with depository accounts is generally reflected in service charges, and has been steadily growing as the Company’s core base of checking accounts has grown. As a result, net charge-offs, exclusive of depository accounts and installment loans, amounted to just $0.063 million in the fourth quarter of 2004. For the full year, net charge-offs exclusive of depository accounts and installment loans amounted to only $0.819 million or 0.07% of outstanding loans exclusive of previously securitized loans, installment loans and depository accounts.

Non-performing assets were $3.903 million, representing 0.29% of total loans and other real estate owned. This ratio has been very stable over the last two years, fluctuating between 0.29% and 0.38%. A significant portion of the non-performing assets are previously securitized loans representing 21% of all non-performing assets at December 31, 2004. Charge-offs of these particular loans do not run through the ALLL, but are reflected through the yield on the loans as previously described.

Non-Interest Income

Non-interest income in the fourth quarter of 2004 was $11.9 million as compared to $10.2 million in the fourth quarter of 2003, representing an increase of 16.4%. The largest source of non-interest income is fee income from depository accounts, which increased from $7.8 million during the fourth quarter of 2003 to $8.7 million during the fourth quarter of 2004, or 11.8%, reflecting growth in new customers and services provided to the Company’s depository customers. The Company also experienced a 48% increase in insurance revenues and 23% increase in trust revenues in the fourth quarter of 2004 as compared to the fourth quarter of 2003. During the fourth quarter of 2004, the Company recorded additional income of $0.6 million from bank-owned life insurance, from the settlement of an insured claim.

For the full year, non-interest income increased from $38.7 million in 2003 to $50.0 million in 2004. Service charges increased from $28.4 million in 2003 to $32.6 million in 2004, an increase of 14.7%. Insurance revenues increased by 10.8% and trust revenues increased by 28.6% between 2003 and 2004. During 2004, the Company recorded income of $5.5 million associated with the settlement of litigation brought on December 31, 2001 in a derivative action against certain current and former directors and former executive officers of the Company and City National Bank seeking to recover alleged damages on behalf of the Company and City National Bank. The Company previously disclosed a dispute with its insurer, regarding certain legal fees and costs associated with the litigation. During the fourth quarter of 2004, the Company received a reimbursement of $0.4 million from its insurer for previously paid legal fees in settlement of this dispute. As previously discussed, the Company benefited from an increase in income on bank-owned life insurance in 2004 of $0.6 million. The Company has also benefited during 2004 from gains on the sale of certain securities totaling $1.2 million as compared to losses of $0.1 million in 2003. In 2003, the Company benefited from a $1.6 million legal settlement with the FDIC. Total non-interest income net of security gains, litigation proceeds, and bank-owned life insurance increased from $36.0 million in 2003 to $40.5 million in 2004, representing an increase of 12.6%.

Non-Interest Expenses

Non-interest expense decreased from $17.9 million in the fourth quarter of 2003 to $17.1 million in the fourth quarter of 2004. This decrease was principally caused by a charge of $2.246 million associated with the early redemption of $57.5 million in 9.125% trust preferred securities during the fourth quarter of 2003. Net of this charge, non-interest expense increased by $1.5 million, or about 9.7%. This increase was principally in compensation expense, which increased by $1.7 million from $7.9 million in the fourth quarter of 2003 to $9.6 million in the fourth quarter of 2004. The Company incurred $1.9 million for executive severances in the fourth quarter of 2004 as compared to $0.4 million in the fourth quarter of 2003. At December 31, 2004 the Company has accrued its estimated obligation to five executive officers for severance payments as provided for under their respective employment agreements.

For the full year, expenses increased by $1.8 million, or 2.9%, from $64.5 million in 2003 to $66.3 million in 2004. Compensation expense was up from $31.1 million in 2003 to $34.3 million in 2004, representing an increase of $3.2 million, or 10.2%. This increase is firstly attributable to executive severance costs of $3.3 million in 2004 as compared to $1.7 million in 2003 Secondly, the increase in compensation expense in 2004 as compared to 2003 can also be attributed to higher levels of heath care expense for the Company’s employees.

In 2003, the Company reported a charge of $2.388 million associated with the early redemption of $57.5 million in 9.125% trust preferred securities during the fourth quarter. In 2004 however, the Company reported a charge of only $0.263 million associated with the repurchase of $2 million of its outstanding 9.15% trust preferred securities in the open market. In 2003, the Company reported gains on repossessed assets totaling $0.691 million as compared to gains of $0.077 million in 2004. Non-interest expenses net of gains on repossessed assets, expenses associated with early extinguishment of debt, and executive severance costs, increased from $61.1 million in 2003 to $62.9 million, or an increase of $1.8 million or 3.0%.

Capitalization and Liquidity

One of the Company’s strengths is that it is highly profitable while maintaining strong liquidity and capital. With respect to liquidity, the Company’s loan to deposit ratio was 81.0% and the loan to asset ratio was 61.2% at December 31, 2004. The Company maintained investment securities totaling 30.7% of assets as of this date. Further, the Company’s deposit mix is weighted heavily toward checking and saving accounts that fund 45.7% of assets at December 31, 2004. Time deposits fund 29.9% of assets but very few of these deposits are in accounts of more than $250,000 reflecting the core retail orientation of the Company. Equity represents 9.8% of total assets, leaving only 14.6% of the Company’s assets funded by short and long-term borrowings and other liabilities.

The Company is also strongly capitalized. Capitalization (as measured by average equity to average assets) was 9.81% at December 31, 2004 as a result of the Company’s strong earnings. The Company’s tangible equity ratio is 9.51% at December 31, 2004. With respect to regulatory capital, at December 31, 2004, the Company’s Leverage Ratio is 10.74%, the Tier I Capital ratio is 15.47%, and the Total Risk-Based Capital ratio is 16.64%. The Company’s regulatory capital ratios are significantly above levels required to be considered “well capitalized”, which is the highest possible regulatory designation.

During the fourth quarter of 2004, the Company repurchased no common shares. For the full year, the Company repurchased 197,040 shares at a weighted average price of $29.72 as part of a 1 million share repurchase plan originally authorized by the Board of Directors in June of 2002. Under this authorization, as of December 31, 2004, the Company may repurchase an additional 382,260 shares from time to time depending upon market conditions.

Other Events of Interest

In September, City National Bank opened new banking offices in Wal-Mart Supercenters located in Barboursville and Charleston, West Virginia. These two new locations provide customers with convenient access to City services and staff in two of the state’s most popular shopping areas. Based upon the Company’s success with these stores, in October, the Company announced plans to open two additional banking offices in new Wal-Mart Supercenters currently under construction in Beckley, West Virginia and in Ashland, Kentucky. Both branches are expected to open in the second quarter of 2005.

On December 29, 2004 the Company announced that it had executed a definitive agreement to acquire Classic Bancshares, Inc. of Ashland, Kentucky, and its principal banking subsidiary, Classic Bank. The transaction is expected to close in the second quarter of 2005. As a result of this business combination, the Company will have the largest market share in the Huntington WV/Ashland, KY MSA.

On January 18, 2005, the Company announced that David L. Bumgarner had joined City Holding Company as Senior Vice President and Controller.

The Company has declared a first quarter dividend of $0.22 per common share payable on January 31, 2005, to shareholders of record on January 15, 2005, representing a 10% increase over the first quarter of 2004.

City Holding Company is the parent company of City National Bank of West Virginia. In addition to the Bank, City National Bank operates CityInsurance Professionals, an insurance agency offering a full range of insurance products and services.

This news release contains certain forward-looking statements that are included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such information involves risks and uncertainties that could result in the Company’s actual results differing from those projected in the forward-looking statements. Important factors that could cause actual results to differ materially from those discussed in such forward-looking statements include, but are not limited to, (1) the Company may incur additional loan loss provision due to negative credit quality trends in the future that may lead to a deterioration of asset quality; (2) the Company may not continue to experience significant recoveries of previously charged-off loans and the Company may incur increased charge-offs in the future; (3) the Company may experience increases in the default rates on previously securitized loans causing the yields on these assets to decline; (4) the Company could have adverse legal actions of a material nature; (5) the Company may face competitive loss of customers; (6) the Company may be unable to manage its expense levels;(7) the Company may have difficulty retaining key employees; (8) changes in the interest rate environment may have results on the Company’s operations materially different from those anticipated by the Company’s market risk management functions; (9) changes in general economic conditions and increased competition could adversely affect the Company’s operating results; (10) changes in other regulations and government policies affecting bank holding companies and their subsidiaries, including

changes in monetary policies, could negatively impact the Company’s operating results; and (11) the Company may experience difficulties growing loan and deposit balances. Forward-looking statements made herein reflect management’s expectations as of the date such statements are made. Such information is provided to assist stockholders and potential investors in understanding current and anticipated financial operations of the Company and is included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances that arise after the date such statements are made.

CITY HOLDING COMPANY AND SUBSIDIARIES

Financial Highlights

(Unaudited)

	Three Months Ended						Percent Change
	December 31 2004			December 31 2003
Earnings ($000s, except per share data):
Net Interest Income (FTE)	$	21,870		$	22,341		(2.11	)%
Net Income		11,087			10,672		3.89	%
Earnings per Basic Share		0.67			0.64		4.69	%
Earnings per Diluted Share		0.66			0.63		4.76	%
Key Ratios (percent):
Return on Average Assets		2.01	%		2.08	%	(3.35	)%
Return on Average Equity		20.50	%		22.79	%	(10.05	)%
Net Interest Margin		4.27	%		4.74	%	(9.84	)%
Efficiency Ratio		50.28	%		56.22	%	(10.57	)%
Average Shareholders’ Equity to Average Assets		9.81	%		9.12	%	7.53	%
Risk-Based Capital Ratios (a):
Tier I		15.47	%		11.93	%	29.67	%
Total		16.64	%		13.17	%	26.35	%
Common Stock Data:
Cash Dividends Declared per Share	$	0.22		$	0.20		10.00	%
Book Value per Share		12.99			11.46		13.37	%
Market Value per Share:
High		37.58			37.15		1.16	%
Low		31.85			31.50		1.11	%
End of Period		36.24			35.06		3.37	%
Price/Earnings Ratio (b)		13.52			13.70		(1.31	)%

(a) December 31, 2004 risk-based capital ratios are estimated.

(b) December 31, 2004 price/earnings ratio computed based on annualized fourth quarter 2004 earnings.

	Twelve Months Ended						Percent Change
	December 31 2004			December 31 2003
Earnings ($000s, except per share data):
Net Interest Income (FTE)	$	87,985		$	86,641		1.55	%
Net Income		46,344			43,694		6.06	%
Earnings per Basic Share		2.79			2.63		6.08	%
Earnings per Diluted Share		2.75			2.58		6.59	%
Key Ratios (percent):
Return on Average Assets		2.10	%		2.18	%	(3.89	)%
Return on Average Equity		22.43	%		24.50	%	(8.43	)%
Net Interest Margin		4.29	%		4.65	%	(7.75	)%
Efficiency Ratio		48.49	%		52.09	%	(6.91	)%
Average Shareholders’ Equity to Average Assets		9.34	%		8.89	%	5.05	%
Common Stock Data:
Cash Dividends Declared per Share	$	0.88		$	0.80		10.00	%
Market Value per Share:
High		37.58			37.15		1.16	%
Low		27.30			25.50		7.06	%

CITY HOLDING COMPANY AND SUBSIDIARIES

Financial Highlights

(Unaudited)

Book Value and Market Price Range per Share

	Book Value per Share				Market Price Range per Share
	March 31	June 30	September 30	December 31	Low	High
1999	13.07	12.85	12.80	11.77	12.50	32.75
2000	11.76	11.72	11.72	9.68	4.88	16.19
2001	8.82	8.70	8.37	8.67	5.13	14.64
2002	8.92	9.40	9.64	9.93	12.04	30.20
2003	10.10	10.74	11.03	11.46	25.50	37.15
2004	12.09	11.89	12.70	12.99	27.30	37.58
Earnings per Basic Share

	Quarter Ended
	March 31		June 30		September 30		December 31		Year-to-Date
1999	0.31		0.42		0.14		(0.49	)	0.37
2000	0.24		0.02		(0.05	)	(2.47	)	(2.27	)
2001	(0.34	)	(1.19	)	(0.46	)	0.45		(1.54	)
2002	0.38		0.45		0.53		0.56		1.93
2003	0.56		0.73		0.69		0.64		2.63
2004	0.66		0.80		0.66		0.67		2.79
Earnings per Diluted Share
	Quarter Ended
	March 31		June 30		September 30		December 31		Year-to-Date
1999	0.31		0.42		0.14		(0.49	)	0.37
2000	0.24		0.02		(0.05	)	(2.47	)	(2.27	)
2001	(0.34	)	(1.19	)	(0.46	)	0.45		(1.54	)
2002	0.38		0.45		0.52		0.55		1.90
2003	0.55		0.72		0.68		0.63		2.58
2004	0.65		0.79		0.65		0.66		2.75

CITY HOLDING COMPANY AND SUBSIDIARIES

Consolidated Statements of Income

(Unaudited) ($ in 000s, except per share data)

	Three Months Ended December 31
	2004			2003
Interest Income
Interest and fees on loans	$	21,511		$	21,331
Interest on investment securities:
Taxable		7,779			5,760
Tax-exempt		437			479
Interest on retained interests		—			2,000
Interest on deposits in depository institutions		16			11
Interest on federal funds sold		3			—
Total Interest Income		29,746			29,581
Interest Expense
Interest on deposits		5,932			5,653
Interest on short-term borrowings		424			133
Interest on long-term debt		1,756			1,711
Total Interest Expense		8,112			7,497
Net Interest Income		21,634			22,084
Provision for (recovery of) loan losses		—			(1,000	)
Net Interest Income After Provision for Loan Losses		21,634			23,084
Non-Interest Income
Investment securities gains (losses)		32			287
Service charges		8,678			7,762
Insurance commissions		754			510
Trust fee income		466			379
Bank owned life insurance		1,184			593
Mortgage banking income		70			60
Other income		685			610
Total Non-Interest Income		11,869			10,201
Non-Interest Expense
Salaries and employee benefits		9,578			7,916
Occupancy and equipment		1,560			1,550
Depreciation		981			1,056
Professional fees and litigation expense		571			542
Postage, delivery, and statement mailings		589			584
Advertising		600			578
Telecommunications		403			466
Insurance and regulatory		330			297
Office supplies		210			278
Repossessed asset (gains) losses and expenses		(31	)		19
Loss on early extinguishment of debt		—			2,246
Other expenses		2,340			2,335
Total Non-Interest Expense		17,131			17,867
Income Before Income Taxes		16,372			15,418
Income Tax Expense		5,285			4,746
Net Income	$	11,087		$	10,672
Basic Earnings per Share	$	0.67		$	0.64
Diluted Earnings per Share	$	0.66		$	0.63
Average Common Shares Outstanding:
Basic		16,572			16,641
Diluted		16,810			16,961

CITY HOLDING COMPANY AND SUBSIDIARIES

Consolidated Statements of Income

(Unaudited) ($ in 000s, except per share data)

	Twelve Months Ended December 31
	2004			2003
Interest Income
Interest and fees on loans	$	86,099		$	81,296
Interest on investment securities:
Taxable		30,110			21,267
Tax-exempt		1,809			2,112
Interest on retained interests		808			12,465
Interest on deposits in depository institutions		52			114
Interest on federal funds sold		3			36
Total Interest Income		118,881			117,290
Interest Expense
Interest on deposits		23,207			22,537
Interest on short-term borrowings		1,082			792
Interest on long-term debt		7,582			8,456
Total Interest Expense		31,871			31,785
Net Interest Income		87,010			85,505
Provision for (recovery of) loan losses		—			(6,200	)
Net Interest Income After Provision for Loan Losses		87,010			91,705
Non-Interest Income
Investment securities gains (losses)		1,173			(148	)
Service charges		32,609			28,422
Insurance commissions		2,733			2,467
Trust fee income		2,026			1,575
Bank owned life insurance		2,931			1,320
Mortgage banking income		282			517
Net proceeds from litigation settlement		5,453			1,600
Other income		2,829			2,985
Total Non-Interest Income		50,036			38,738
Non-Interest Expense
Salaries and employee benefits		34,245			31,070
Occupancy and equipment		5,984			6,015
Depreciation		3,932			4,411
Professional fees and litigation expense		3,265			2,879
Postage, delivery, and statement mailings		2,474			2,646
Advertising		2,366			2,340
Telecommunications		1,820			1,874
Insurance and regulatory		1,323			1,266
Office supplies		1,048			1,428
Repossessed asset (gains) losses and expenses		(77	)		(691	)
Loss on early extinguishment of debt		263			2,388
Other expenses		9,690			8,872
Total Non-Interest Expense		66,333			64,498
Income Before Income Taxes		70,713			65,945
Income Tax Expense		24,369			22,251
Net Income	$	46,344		$	43,694
Basic Earnings per Share	$	2.79		$	2.63
Diluted Earnings per Share	$	2.75		$	2.58
Average Common Shares Outstanding:
Basic		16,632			16,634
Diluted		16,882			16,947

CITY HOLDING COMPANY AND SUBSIDIARIES

Consolidated Statements of Changes in Stockholders’ Equity

(Unaudited) ($ in 000s)

	Three Months Ended
	December 31, 2004			December 31, 2003
Balance at September 30	$	210,285		$	183,463
Net income		11,087			10,672
Other comprehensive income:
Change in unrealized gain on securities available-for-sale		(2,255	)		545
Change in underfunded pension liability		(35	)		(847	)
Cash dividends declared ($0.22/share)		(3,650	)		—
Cash dividends declared ($0.20/share)		—			(3,328	)
Exercise of 26,327 stock options		648			—
Exercise of 5,000 stock options		—			185
Balance at December 31	$	216,080		$	190,690
	Twelve Months Ended
	December 31, 2004			December 31, 2003
Balance at January 1	$	190,690		$	165,393
Net income		46,344			43,694
Other comprehensive income:
Change in unrealized gain on securities available-for-sale		(2,481	)		(2,198	)
Change in underfunded pension liability		(35	)		(847	)
Cash dividends declared ($0.88/share)		(14,629	)		—
Cash dividends declared ($0.80/share)		—			(13,310	)
Exercise of 140,730 stock options		2,048			—
Exercise of 104,982 stock options		—			1,216
Purchase of 197,040 common shares for treasury		(5,857	)		—
Purchase of 118,300 common shares for treasury		—			(3,258	)
Balance at December 31	$	216,080		$	190,690

CITY HOLDING COMPANY AND SUBSIDIARIES

Condensed Consolidated Quarterly Statements of Income

(Unaudited) ($ in 000s, except per share data)

	Quarter Ended
	Dec. 31 2004			Sept. 30 2004			June 30 2004			March 31 2004			Dec. 31 2003
Interest income	$	29,746		$	29,667		$	29,293		$	30,175		$	29,581
Taxable equivalent adjustment		236			236			246			257			257
Interest income (FTE)		29,982			29,903			29,539			30,432			29,838
Interest expense		8,112			8,035			7,860			7,863			7,497
Net interest income		21,870			21,868			21,679			22,569			22,341
Provision for loan losses		—			—			—			—			(1,000	)
Net interest income after provision for loan losses		21,870			21,868			21,679			22,569			23,341
Noninterest income		11,869			10,856			16,389			10,920			10,201
Noninterest expense		17,131			15,783			16,985			16,433			17,867
Income before income taxes		16,608			16,941			21,083			17,056			15,675
Income tax expense		5,285			5,749			7,539			5,796			4,746
Taxable equivalent adjustment		236			236			246			257			257
Net income	$	11,087		$	10,956		$	13,298		$	11,003		$	10,672
Basic earnings per share	$	0.67		$	0.66		$	0.80		$	0.66		$	0.64
Diluted earnings per share		0.66			0.65			0.79			0.65			0.63
Cash dividends declared per share		0.22			0.22			0.22			0.22			0.20
Average Common Share (000s):
Outstanding		16,572			16,584			16,694			16,681			16,641
Diluted		16,810			16,812			16,935			16,972			16,961
Net Interest Margin		4.27	%		4.27	%		4.20	%		4.42	%		4.74	%

CITY HOLDING COMPANY AND SUBSIDIARIES

Non-Interest Income and Non-Interest Expense

(Unaudited) ($ in 000s)

	Quarter Ended
	Dec. 31 2004			Sept. 30 2004		June 30 2004			March 31 2004		Dec. 31 2003
Non-Interest Income:
Service charges	$	8,678		$	8,440	$	8,110		$	7,381	$	7,762
Insurance commissions		754			600		718			660		510
Trust fee income		466			446		627			487		379
Bank owned life insurance		1,184			575		591			581		593
Mortgage banking income		70			72		71			69		60
Net proceeds from litigation settlement		—			—		5,453			—		—
Other income		685			719		695			730		610
Subtotal		11,837			10,852		16,265			9,908		9,914
Investment security gains (losses)		32			4		124			1,012		287
Total Non-Interest Income	$	11,869		$	10,856	$	16,389		$	10,920	$	10,201
Non-Interest Expense:
Salaries and employee benefits	$	9,578		$	8,150	$	8,390		$	8,127	$	7,916
Occupancy and equipment		1,560			1,472		1,459			1,494		1,550
Depreciation		981			972		974			1,006		1,056
Professional fees and litigation expense		571			668		1,181			844		542
Postage, delivery, and statement mailings		589			601		598			685		584
Advertising		600			459		651			656		578
Telecommunications		403			488		463			466		466
Insurance and regulatory		330			342		320			331		297
Office supplies		210			252		273			312		278
Repossessed asset (gains) losses and expenses		(31	)		5		(108	)		57		19
Loss on early exinguishment of debt		—			—		263			—		2,246
Other expenses		2,340			2,374		2,521			2,455		2,335
Total Non-Interest Expense	$	17,131		$	15,783	$	16,985		$	16,433	$	17,867
Employees (Full Time Equivalent)		691			692		692			690		701
Branch Locations		56			56		54			54		54

CITY HOLDING COMPANY AND SUBSIDIARIES

Consolidated Balance Sheets

($ in 000s)

	December 31 2004			December 31 2003
	(Unaudited)
Assets
Cash and due from banks	$	52,854		$	58,216
Interest-bearing deposits in depository institutions		3,230			5,122
Cash and cash equivalents		56,084			63,338
Investment securities available-for-sale, at fair value		620,034			645,663
Investment securities held-to-maturity, at amortized cost		59,740			59,298
Total investment securities		679,774			704,961
Loans:
Residential real estate		469,458			446,134
Home equity		308,173			282,481
Commercial real estate		400,801			351,284
Other commercial		71,311			76,167
Installment		18,145			33,651
Indirect		10,324			24,707
Credit card		18,126			18,979
Previously securitized loans		58,436			58,788
Gross Loans		1,354,774			1,292,191
Allowance for loan losses		(17,815	)		(21,426	)
Net loans		1,336,959			1,270,765
Retained interests		—			34,320
Bank owned life insurance		50,845			49,214
Premises and equipment		34,607			35,338
Accrued interest receivable		9,868			10,216
Net deferred tax assets		27,025			29,339
Other assets		18,068			16,939
Total Assets	$	2,213,230		$	2,214,430
Liabilities
Deposits:
Noninterest-bearing	$	319,425		$	309,706
Interest-bearing:
Demand deposits		411,127			393,443
Savings deposits		281,466			278,117
Time deposits		660,705			655,496
Total deposits		1,672,723			1,636,762
Short-term borrowings		145,183			168,403
Long-term debt		148,836			190,836
Other liabilities		30,408			27,739
Total Liabilities		1,997,150			2,023,740
Stockholders’ Equity
Preferred stock, par value $25 per share: 500,000 shares authorized; none issued		—			—
Common stock, par value $2.50 per share: 50,000,000 shares authorized; 16,919,248 shares issued and outstanding at December 31, 2004 and December 31, 2003, including 331,191 and 274,881 shares in treasury		42,298			42,298
Capital surplus		55,512			57,364
Retained earnings		128,175			96,460
Cost of common stock in treasury		(8,761	)		(6,803	)
Accumulated other comprehensive (loss) income:
Unrealized gain on securities available-for-sale		1,281			3,762
Underfunded pension liability		(2,425	)		(2,391	)
Total Accumulated Other Comprehensive (Loss) Income		(1,144	)		1,371
Total Stockholders’ Equity		216,080			190,690
Total Liabilities and Stockholders’ Equity	$	2,213,230		$	2,214,430

CITY HOLDING COMPANY AND SUBSIDIARIES

Loan Portfolio

(Unaudited) ($ in 000s)

	December 31 2004		September 30 2004		June 30 2004		March 31 2004		Dec. 31 2003
Residential real estate	$	469,458	$	468,372	$	459,759	$	439,643	$	446,134
Home equity		308,173		304,934		301,231		292,192		282,481
Commercial real estate		400,801		377,742		374,292		347,724		351,284
Other commercial		71,311		70,745		73,139		74,743		76,167
Loans to depository institutions		—		—		—		20,000		—
Installment		18,145		20,221		24,722		28,351		33,651
Indirect		10,324		13,020		16,140		20,006		24,707
Credit card		18,126		17,893		17,961		18,119		18,979
Previously securitized loans		58,436		70,970		83,385		92,954		58,788
Gross Loans	$	1,354,774	$	1,343,897	$	1,350,629	$	1,333,732	$	1,292,191

CITY HOLDING COMPANY AND SUBSIDIARIES

Consolidated Average Balance Sheets, Yields, and Rates

(Unaudited) ($ in 000s)

	Three Months Ended December 31,
	2004							2003
	Average Balance			Interest		Yield/ Rate		Average Balance			Interest		Yield/ Rate
Assets:
Loan portfolio:
Residential real estate	$	468,362		$	6,646	5.68	%	$	449,765		$	7,127	6.34	%
Home equity		307,712			3,966	5.16	%		277,736			3,006	4.33	%
Commercial real estate		386,592			5,641	5.84	%		329,013			4,784	5.82	%
Other commercial		68,816			1,015	5.90	%		78,875			1,057	5.36	%
Installment		20,168			604	11.98	%		36,475			1,064	11.67	%
Indirect		11,584			321	11.08	%		26,785			742	11.08	%
Credit card		17,756			534	12.03	%		18,791			558	11.88	%
Previously securitized loans		66,307			2,784	16.79	%		54,141			2,993	22.11	%
Total loans		1,347,297			21,511	6.39	%		1,271,581			21,331	6.71	%
Securities:
Taxable		656,511			7,779	4.74	%		531,308			5,760	4.34	%
Tax-exempt		37,573			673	7.16	%		39,292			736	7.49	%
Total securities		694,084			8,452	4.87	%		570,600			6,496	4.55	%
Retained interest in securitized loans		—			—	—			40,287			2,000	19.86	%
Deposits in depository institutions		4,753			16	1.35	%		4,465			11	0.99	%
Federal funds sold		766			3	1.57	%		—			—	—
Total interest-earning assets		2,046,900			29,982	5.86	%		1,886,933			29,838	6.33	%
Cash and due from banks		42,920							47,190
Bank premises and equipment		34,859							35,817
Other assets		99,641							107,409
Less: Allowance for loan losses		(18,332	)						(23,153	)
Total assets	$	2,205,988						$	2,054,196
Liabilities:
Interest-bearing demand deposits	$	408,038		$	675	0.66	%	$	392,314		$	583	0.59	%
Savings deposits		275,776			361	0.52	%		281,689			375	0.53	%
Time deposits		661,131			4,896	2.96	%		647,554			4,694	2.90	%
Short-term borrowings		131,202			424	1.29	%		104,427			133	0.51	%
Long-term debt		174,923			1,756	4.02	%		115,482			1,712	5.93	%
Total interest-bearing liabilities		1,651,070			8,112	1.97	%		1,541,466			7,497	1.95	%
Noninterest-bearing demand deposits		315,759							300,905
Other liabilities		22,829							24,512
Stockholders’ equity		216,330							187,313
Total liabilities and stockholders’ equity	$	2,205,988						$	2,054,196
Net interest income				$	21,870						$	22,341
Net yield on earning assets						4.27	%						4.74	%

CITY HOLDING COMPANY AND SUBSIDIARIES

Consolidated Average Balance Sheets, Yields, and Rates

(Unaudited) ($ in 000s)

	Twelve Months Ended December 31,
	2004							2003
	Average Balance			Interest		Yield/ Rate		Average Balance			Interest		Yield/ Rate
Assets:
Loan portfolio:
Residential real estate	$	454,890		$	26,869	5.91	%	$	455,971		$	30,583	6.71	%
Home equity		298,703			14,004	4.69	%		251,135			11,165	4.45	%
Commercial real estate		367,599			20,684	5.63	%		301,494			18,448	6.12	%
Other commercial		72,825			3,913	5.37	%		84,738			4,988	5.89	%
Loans to depository institutions		3,060			35	1.14	%		4,658			78	1.67	%
Installment		25,343			2,895	11.42	%		47,121			5,349	11.35	%
Indirect		16,599			1,823	10.98	%		35,449			3,868	10.91	%
Credit card		18,002			2,164	12.02	%		18,925			2,268	11.98	%
Previously securitized loans		80,151			13,712	17.11	%		20,426			4,549	22.27	%
Total loans		1,337,172			86,099	6.44	%		1,219,917			81,296	6.66	%
Securities:
Taxable		666,863			30,110	4.52	%		517,728			21,267	4.11	%
Tax-exempt		38,169			2,784	7.29	%		43,709			3,248	7.43	%
Total securities		705,032			32,894	4.67	%		561,437			24,515	4.37	%
Retained interest in securitized loans		3,300			808	24.48	%		66,662			12,465	18.70	%
Deposits in depository institutions		5,347			52	0.97	%		10,778			114	1.06	%
Federal funds sold		193			3	1.55	%		3,406			36	1.06	%
Total interest-earning assets		2,051,044			119,856	5.84	%		1,862,200			118,426	6.36	%
Cash and due from banks		43,616							45,831
Bank premises and equipment		34,804							36,289
Other assets		102,179							89,549
Less: Allowance for loan losses		(19,790	)						(26,877	)
Total assets	$	2,211,853						$	2,006,992
Liabilities:
Interest-bearing demand deposits	$	405,865		$	2,599	0.64	%	$	385,882		$	2,174	0.56	%
Savings deposits		279,174			1,456	0.52	%		287,823			1,606	0.56	%
Time deposits		662,068			19,152	2.89	%		627,741			18,756	2.99	%
Short-term borrowings		120,849			1,082	0.90	%		99,567			792	0.80	%
Long-term debt		201,218			7,582	3.77	%		109,947			8,457	7.69	%
Total interest-bearing liabilities		1,669,174			31,871	1.91	%		1,510,960			31,785	2.10	%
Noninterest-bearing demand deposits		312,036							292,075
Other liabilities		24,072							25,585
Stockholders’ equity		206,571							178,372
Total liabilities and stockholders’ equity	$	2,211,853						$	2,006,992
Net interest income				$	87,985						$	86,641
Net yield on earning assets						4.29	%						4.65	%

CITY HOLDING COMPANY AND SUBSIDIARIES

Analysis of Risk-Based Capital

(Unaudited) ($ in 000s)

	Dec. 31 2004(a)			Sept. 30 2004			June 30 2004			March 31 2004			Dec. 31 2003
Tier I Capital:
Stockholders’ equity	$	216,080		$	210,285		$	197,569		$	202,204		$	190,690
Goodwill and other intangibles		(6,255	)		(6,306	)		(6,357	)		(6,408	)		(6,459	)
Accumulated other comprehensive income		1,144			(1,146	)		6,454			(4,742	)		(1,372	)
Qualifying trust preferred stock		28,000			28,000			28,000			30,000			30,000
Excess deferred tax assets		(3,128	)		—			(6,922	)		(807	)		(8,053	)
Total tier I capital	$	235,841		$	230,833		$	218,744		$	220,247		$	204,806
Total Risk-Based Capital:
Tier I capital	$	235,841		$	230,833		$	218,744		$	220,247		$	204,806
Qualifying allowance for loan losses		17,815			18,537			18,939			19,169			21,426
Total risk-based capital	$	253,656		$	249,370		$	237,683		$	239,416		$	226,232
Net risk-weighted assets	$	1,524,581		$	1,517,158		$	1,514,261		$	1,505,892		$	1,717,206
Ratios:
Average stockholders’ equity to average assets		9.81	%		9.26	%		9.33	%		8.96	%		9.12	%
Tangible capital ratio		9.51	%		9.24	%		8.71	%		8.85	%		8.34	%
Risk-based capital ratios:
Tier I capital		15.47	%		15.21	%		14.43	%		14.63	%		11.93	%
Total risk-based capital		16.64	%		16.44	%		15.68	%		15.89	%		13.17	%
Leverage capital		10.74	%		10.47	%		9.89	%		10.01	%		10.04	%
(a)    December 31, 2004 risk-based capital ratios are estimated. CITY HOLDING COMPANY AND SUBSIDIARIES Intangibles (Unaudited) ($ in 000s)
	As of and for the Quarter Ended
	Dec. 31 2004			Sept. 30 2004			June 30 2004			March 31 2004			Dec. 31 2003
Intangibles, net	$	6,255		$	6,306		$	6,357		$	6,408		$	6,459
Intangibles amortization expense		51			51			51			51			51

CITY HOLDING COMPANY AND SUBSIDIARIES

Summary of Loan Loss Experience

(Unaudited) ($ in 000s)

	Quarter Ended
	Dec. 31 2004			Sept. 30 2004			June 30 2004			March 31 2004			Dec. 31 2003
Balance at beginning of period	$	18,537		$	19,833		$	20,289		$	21,426		$	23,436
Charge-offs:
Residential real estate		166			299			173			217			419
Home equity		5			105			66			133			18
Commercial real estate		105			1,134			44			342			130
Other commercial		14			220			22			159			28
Installment		458			568			457			588			715
Overdraft deposit accounts		586			631			610			787			583
Total charge-offs		1,334			2,957			1,372			2,226			1,893
Recoveries:
Residential real estate		137			196			133			104			135
Home equity		—			1			—			5			—
Commercial real estate		10			922			201			311			141
Other commercial		80			103			127			55			182
Installment		147			183			202			260			211
Overdraft deposit accounts		238			256			253			354			214
Total recoveries		612			1,661			916			1,089			883
Net charge-offs		722			1,296			456			1,137			1,010
(Recovery of) provision for loan losses		—			—			—			—			(1,000	)
Balance at end of period	$	17,815		$	18,537		$	19,833		$	20,289		$	21,426
Loans outstanding	$	1,354,774		$	1,343,897		$	1,350,629		$	1,333,732		$	1,292,191
Average loans outstanding		1,347,297			1,348,265			1,342,001			1,310,894			1,271,581
Allowance as a percent of loans outstanding		1.31	%		1.38	%		1.47	%		1.52	%		1.66	%
Allowance as a percent of non-performing loans		487	%		515	%		493	%		432	%		529	%
Net charge-offs (annualized) as a percent of average loans outstanding		0.21	%		0.38	%		0.14	%		0.35	%		0.32	%

CITY HOLDING COMPANY AND SUBSIDIARIES

Summary of Non-Performing Assets

(Unaudited) ($ in 000s)

	Dec. 31 2004		Sept. 30 2004		June 30 2004		March 31 2004		Dec. 31 2003
Nonaccrual loans	$2,147		$1,924		$1,792		$2,268		$2,140
Accruing loans past due 90 days or more	677		800		689		1,039		1,195
Previously securitized loans past due 90 days or more	832		876		1,544		1,388		717
Total non-performing loans	3,656		3,600		4,025		4,695		4,052
Other real estate owned	247		267		171		296		312
Total non-performing assets	$3,903		$3,867		$4,196		$4,991		$4,364
Non-performing assets as a percent of loans and other real estate owned	0.29	%	0.29	%	0.31	%	0.37	%	0.34	%