City Holding Company Announces Annual Earnings
City Holding Company (“Company” or “City”) (NASDAQ:CHCO), a $4.0 billion
bank holding company headquartered in Charleston, West Virginia, today
announced net income of $52.1 million and diluted earnings of $3.45 per
share for the year ended December 31, 2016.
Highlights of the Company’s performance and results for the year ended
December 31, 2016 include the following:
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Return on assets and return on tangible equity of 1.36% and 14.8%,
respectively.
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Reported net interest income increased $4.0 million (3.4%) from the
year ended December 31, 2015, while net interest income exclusive of
accretion from fair value adjustments increased $7.7 million (7.1%)
from the year ended December 31, 2015.
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Total loan growth of $183.7 million (6.4%) from December 31, 2015 to
December 31, 2016.
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Asset quality continues to remain strong with nonperforming assets
declining from $24.0 million, or 0.84% of total loans and other real
estate owned at December 31, 2015 to $18.7 million, or 0.61%, at
December 31, 2016. Past due loans declined from 0.32% of total loans
outstanding at December 31, 2015 to 0.28% at December 31, 2016.
Highlights of the Company’s fourth quarter performance include the
following:
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Return on assets and return on tangible equity of 1.49% and 16.1%,
respectively.
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Reported net interest income increased $0.6 million (2.1%) from the
quarter ended September 30, 2016, while net interest income exclusive
of accretion from fair value adjustments increased $0.8 million (2.8%)
from the quarter ended September 30, 2016.
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Total loan growth of $88.3 million (3.0%) from September 30, 2016 to
December 31, 2016.
Net Interest Income
The Company’s tax equivalent net interest income increased $4.0 million,
or 3.4%, from $115.8 million in 2015 to $119.8 million in 2016. This
increase was due primarily to an increase in average loan balances from
organic growth ($127.1 million) and from loans associated with the
acquisition of three branches in the Lexington, Kentucky market in
November 2015 (approximately $102.4 million in loans) contributing
additional net interest income of $9.0 million in 2016. In addition,
higher average investment balances ($111.5 million) increased net
interest income by $3.9 million. During 2016 in conjunction with its
interest rate risk management strategy, the Company elected to grow
investment balances and reduce cash balances to enhance net interest
income. As part of this strategy, the Company purchased tax-exempt
municipal securities to improve its earnings by lowering its effective
income tax rate. As a result of this strategy, the Company’s overnight
borrowings increased during 2016 and the Company anticipates growing
time deposit balances in 2017 to reduce overnight borrowings. These
increases in net interest income were partially offset by lower
accretion from fair value adjustments on recent acquisitions that
decreased net interest income $3.8 million ($6.7 million in 2015
compared to $2.9 million in 2016) and margin compression which lowered
net interest income $3.9 million. The Company’s reported net interest
margin decreased from 3.76% for the year ended December 31, 2015 to
3.50% for the year ended December 31, 2016. Excluding the favorable
impact of the accretion from the fair value adjustments, the net
interest margin would have been 3.54% for the year ended December 31,
2015 and 3.41% for the year ended December 31, 2016. This decrease was
primarily caused by the yield on loans (excluding accretion) compressing
slightly from 4.05% for the year ended December 31, 2015 to 3.96% for
the year ended December 31, 2016 and by the yield on investment
securities decreasing from 3.28% to 3.01% for the same period.
During the fourth quarter of 2016, the Company’s tax equivalent net
interest income increased $0.6 million, or 2.1%, to $30.6 million from
$30.0 million during the third quarter of 2016. This increase was
largely due to higher average commercial and residential real estate
loan balances (up $87.3 million from the third quarter of 2016) that
increased net interest income by $0.8 million and higher average
investment securities balances (up $39.3 million from the third quarter
of 2016) that increased net interest income by $0.2 million. The
Company’s reported net interest margin decreased from 3.48% for the
third quarter of 2016 to 3.42% for the fourth quarter of 2016. Excluding
the favorable impact of the accretion from the fair value adjustments
($0.5 million for the quarter ended December 31, 2016 and $0.6 million
for the quarter ended September 30, 2016), the net interest margin would
have been 3.37% for the quarter ended December 31, 2016 and 3.40% for
the quarter ended September 30, 2016. The decrease in the net interest
margin from the third quarter of 2016 is attributable to the yield on
investment securities compressing 8 basis points and a slightly higher
cost of funds. The Company’s yield on loans (excluding accretion)
remained stable at 3.94% for both the quarter ended September 30, 2016
and the quarter ended December 31, 2016. The majority of the Company’s
commercial loans originated in 2016 have variable interest rates and the
Company believes that it remains well positioned to benefit from rising
interest rates.
Credit Quality
The Company’s ratio of nonperforming assets to total loans and other
real estate owned improved from 0.84% at December 31, 2015 to 0.61% at
December 31, 2016. Total nonperforming assets decreased from $24.0
million at December 31, 2015 to $18.7 million at December 31, 2016.
Excluded from this ratio are purchased credit-impaired loans in which
the Company estimated cash flows and estimated a credit mark. Such loans
would be considered nonperforming loans if the loan’s performance
deteriorates below the initial expectations. Total past due loans
decreased from $9.2 million, or 0.32% of total loans outstanding, at
December 31, 2015 to $8.6 million, or 0.28% of total loans outstanding,
at December 31, 2016.
As a result of the Company’s quarterly analysis of the adequacy of the
Allowance for Loan Losses (“ALLL”), the Company recorded a provision for
loan losses of $1.3 million in the fourth quarter of 2016 and $4.4
million for the year ended December 31, 2016, compared to $2.8 million
and $7.0 million for the comparable periods in 2015. The provision for
loan losses recorded in 2016 reflects the impact of several factors,
including the growth in the loan portfolio and changes in the quality of
the portfolio. Additionally, during the fourth quarter of 2016, a
commercial customer of the Company with a hotel/motel related credit
whose business is located in North Central West Virginia experienced a
downfall in occupancy rates as a result of a slowdown in the oil and gas
industry. As a result, the Company increased the allowance for loan
losses in the fourth quarter in relation to this loan. Beyond this
particular loan, the Company has very limited exposure to the oil and
gas industry and does not have any direct loans to any oil and gas
operations. Changes in the amount of the allowance and related provision
are based on the Company’s detailed systematic methodology and are
directionally consistent with changes in the composition and quality of
the Company’s loan portfolio. The Company believes its methodology for
determining the adequacy of its ALLL adequately provides for probable
losses inherent in the loan portfolio and produces a provision and
allowance for loan losses that is directionally consistent with changes
in asset quality and loss experience.
Non-interest Income
During 2016, the Company realized $3.5 million of investment gains
compared to $2.1 million during 2015. These gains represented partial
recoveries of impairment charges previously recognized on pools of trust
preferred securities. In addition, during 2015 the Company sold its
insurance operation which resulted in the recognition of a pre-tax gain
of $11.1 million in 2015. Exclusive of these gains, non-interest income
increased from $54.0 million for the year ended December 31, 2015 to
$55.3 million for the year ended December 31, 2016. This increase was
primarily attributable to an increase of $0.6 million, or 3.9%, in
bankcard revenues; an increase of $0.4 million, or 8.8%, in trust and
investment management fee income; and an increase of $0.4 million, or
1.5%, in service charges.
Non-interest income increased from $14.1 million for the fourth quarter
of 2015 to $14.4 million for the fourth quarter of 2016. This increase
was mainly due to an increase in bankcard revenues of $0.2 million, or
5.6%, from the fourth quarter of 2015.
Non-interest Expenses
Non-interest expenses increased $3.2 million from the year ended
December 31, 2015 to the year ended December 31, 2016. During 2015, the
Company recognized $0.6 million of acquisition and integration expenses
associated with the acquisition of three branches in Lexington,
Kentucky. Excluding acquisition related expenses, non-interest expenses
increased $3.8 million from $92.4 million for the year ended December
31, 2015 to $96.2 million for the year ended December 31, 2016. This
increase was largely due to an increase in salaries and employee
benefits ($2.1 million) due to salary adjustments and increased health
insurance costs. In addition non-interest expenses increased $1.7
million due to the annual operating costs of the three branches acquired
in November 2015 and from an increase of $0.5 million in bankcard
expenses due to increased transaction volumes.
Non-interest expenses increased $1.3 million from the quarter ended
December 31, 2015 to the quarter ended December 31, 2016. Exclusive of
acquisition related expenses of $0.3 million, total non-interest
expenses increased $1.6 million from $20.9 million in the fourth quarter
of 2015 to $22.5 million in the fourth quarter of 2016. This increase
was due to an increase in salaries and employee benefits of $1.0 million
caused by salary adjustments and increased health insurance costs, an
increase in other expenses of $0.2 million, advertising expenses of $0.2
million, and the operating costs associated with the acquisition of
three branches of $0.2 million. These increases were partially offset by
lower FDIC insurance expenses ($0.3 million).
Balance Sheet Trends
For the year ending December 31, 2016, period end loan balances
increased $183.7 million (6.4%) to $3.05 billion. Commercial loans
increased $122.3 million (9.4%) and residential real estate loans
increased $68.3 million (4.9%) from December 31, 2015 to December 31,
2016. A significant portion of the increase in commercial loans during
2016 were in the Columbus, Ohio and Charlotte, North Carolina markets
and were diversified across a broad base of industry types, such as
multi-family housing, properties leased to the government, nursing
homes, grocery and retail stores, and other commercial and industrial
loans. These increases were slightly offset by decreases in home equity
junior lien loans ($5.1 million) and consumer loans ($3.5 million).
Total average depository balances increased $219.3 million, or 7.4%,
from the year ended December 31, 2015 to the year ended December 31,
2016. This growth was partially attributable to deposits acquired in
2015 via acquisition in Lexington, Kentucky ($126.6 million). Exclusive
of these acquired deposits, noninterest deposits increased $64.2 million
(10.9%), interest bearing deposits increased $27.4 million (4.3%) and
savings deposits increased $21.1 million (3.0%). These increases were
partially offset by a decrease in time deposits ($20.0 million).
Income Tax Expense
The Company’s effective income tax rate for the year ended December 31,
2016 was 32.5% compared to 34.4% for the year ended December 31, 2015.
During the years ended December 31, 2016 and December 31, 2015, the
Company reduced income tax expense by $0.5 million and $0.6 million,
respectively, due to the recognition of previously unrecognized tax
positions subsequent to the close of the statute of limitations for
previous tax years. In addition, as previously noted, the Company sold
its insurance agency, CityInsurance, in the first quarter of 2015. As a
result of differences between the book and tax basis of the assets that
were sold, the Company’s income tax expense increased by $1.1 million.
Exclusive of these items, the Company’s tax rate from operations was
33.2% and 33.6% for the year ended December 31, 2016 and December 31,
2015, respectively.
The Company’s effective income tax rate for the quarter ended December
31, 2016 was 30.2% compared to 30.0% for the quarter ended December 31,
2015. During the quarters ended December 31, 2016, and December 31,
2015, the Company reduced income tax expense by $0.5 million and $0.6
million, respectively, due to the recognition of previously unrecognized
tax positions resulting from the close of the statute of limitations for
previous tax years. Exclusive of these items, the Company’s tax rate
from operations was 32.8% and 33.1% for the quarters ended December 31,
2016 and December 31, 2015, respectively.
Capitalization and Liquidity
At December 31, 2016, the Company’s loan to deposit ratio was 94.3% and
the loan to asset ratio was 76.7%. The Company maintained investment
securities totaling 13.6% of assets as of the same date. Further, the
Company’s deposit mix is weighted heavily toward checking and saving
accounts that fund 55.2% of assets at December 31, 2016. Time deposits
fund 26.2% of assets at December 31, 2016, but very few of these
deposits are in accounts that have balances of more than $250,000,
reflecting the core retail orientation of the Company.
The Company is strongly capitalized. The Company’s tangible equity ratio
was 9.3% at both December 31, 2016 and December 31, 2015. At December
31, 2016, City National Bank’s Leverage Ratio of 8.33%, Common Equity
Tier I ratio of 11.29%, Tier I Capital ratio of 11.58%, and Total
Risk-Based Capital ratio of 12.30%. These regulatory capital ratios are
significantly above levels required to be considered “well capitalized,”
which is the highest possible regulatory designation.
On December 14, 2016, the Board approved a quarterly cash dividend of
$0.43 cents per share payable January 31, 2017, to shareholders of
record as of January 13, 2017.
On December 19, 2016, the Company announced that it had filed a
prospectus supplement to its existing shelf registration statement on
Form S-3 for the sale of its common stock having an aggregate value of
up to $55 million through an “at-the-market” equity offering program.
The Company intends to use the net proceeds from the offering to support
loan growth, bolster regulatory capital, and provide cash for possible
future acquisitions. Pending this use, the proceeds will be invested by
the Company in various investment securities. During the quarter ended
December 31, 2016, the Company sold approximately 108,000 common shares
at a weighted average price of $66.21, net of broker fees. Through
January 17, 2017, the Company has sold approximately 145,000 common
shares at a weighted average price of $66.02, net of broker fees.
City Holding Company is the parent company of City National Bank of West
Virginia. City National Bank operates 85 branches across West Virginia,
Virginia, Kentucky and Ohio.
Forward-Looking Information
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 materially from those projected in the
forward-looking statements. Important factors that could cause actual
results to differ materially from those discussed in such
forward-looking statements include, but are not limited to, (1) the
Company may incur additional loan loss provision due to negative credit
quality trends in the future that may lead to a deterioration of asset
quality; (2) the Company may incur increased charge-offs in the future;
(3) the Company could have adverse legal actions of a material nature;
(4) the Company may face competitive loss of customers; (5) the Company
may be unable to manage its expense levels; (6) the Company may have
difficulty retaining key employees; (7) changes in the interest rate
environment may have results on the Company’s operations materially
different from those anticipated by the Company’s market risk management
functions; (8) changes in general economic conditions and increased
competition could adversely affect the Company’s operating results; (9)
changes in other regulations and government policies affecting bank
holding companies and their subsidiaries, including changes in monetary
policies, could negatively impact the Company’s operating results; (10)
the Company may experience difficulties growing loan and deposit
balances; (11) the current economic environment poses significant
challenges for us and could adversely affect our financial condition and
results of operations; (12) deterioration in the financial condition of
the U.S. banking system may impact the valuations of investments the
Company has made in the securities of other financial institutions
resulting in either actual losses or other than temporary impairments on
such investments; (13) the effects of the Wall Street Reform and
Consumer Protection Act (the “Dodd-Frank Act”) 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 businesses; (14) the impact of new minimum capital thresholds
established as a part of the implementation of Basel III; and (15) other
risk factors relating to the banking industry or the Company as detailed
from time to time in the Company’s reports filed with the Securities and
Exchange Commission, including those risk factors included in the
disclosures under the heading “ITEM 1A Risk Factors” of the Company’s
Annual Report on Form 10-K for the fiscal year ended December 31, 2015.
Forward-looking statements made herein reflect management's
expectations as of the date such statements are made. Such information
is provided to assist stockholders and potential investors in
understanding current and anticipated financial operations of the
Company and is included pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. The Company undertakes
no obligation to update any forward-looking statement to reflect events
or circumstances that arise after the date such statements are made. Further,
the Company is required to evaluate subsequent events through the filing
of its Form 10-K for the fiscal year ended December 31, 2016. The
Company will continue to evaluate the impact of any subsequent events on
the preliminary December 31, 2016 results and will adjust the amounts if
necessary.
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CITY HOLDING COMPANY AND SUBSIDIARIES
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Financial Highlights
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(Unaudited)
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Three Months Ended
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Twelve Months Ended
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December 31, 2016
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September 30, 2016
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June 30, 2016
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March 31, 2016
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December 31, 2015
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December 31, 2016
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December 31, 2015
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Earnings
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Net Interest Income (FTE)
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$
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30,638
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$
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30,002
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$
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29,863
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$
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29,312
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$
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29,391
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$
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119,817
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$
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115,856
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Net Income available to common shareholders
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14,656
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13,232
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12,541
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11,702
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13,515
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52,128
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54,097
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Per Share Data
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Earnings per share available to common shareholders:
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Basic
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$
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0.97
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$
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0.88
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$
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0.83
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$
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0.78
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$
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0.88
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$
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3.46
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$
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3.54
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Diluted
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0.97
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0.88
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0.83
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0.78
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0.88
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3.45
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3.53
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Weighted average number of shares (in thousands):
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Basic
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14,894
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14,899
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14,889
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14,916
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15,158
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14,900
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15,123
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Diluted
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14,914
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14,909
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14,902
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14,927
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15,174
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14,913
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15,170
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Period-end number of shares (in thousands)
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15,128
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15,007
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15,005
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14,971
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15,180
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15,128
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15,180
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Cash dividends declared
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$
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0.43
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$
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0.43
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$
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0.43
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$
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0.43
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$
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0.42
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$
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1.72
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$
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1.68
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Book value per share (period-end)
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29.25
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28.97
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28.60
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27.93
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27.62
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29.25
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27.62
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Tangible book value per share (period-end)
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24.02
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23.69
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23.30
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22.61
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22.36
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24.02
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22.36
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Market data:
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High closing price
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$
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68.29
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$
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50.60
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$
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50.14
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$
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47.78
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$
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51.12
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$
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68.29
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$
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51.73
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Low closing price
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48.49
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44.53
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43.06
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40.82
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43.85
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40.82
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41.76
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Period-end closing price
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67.60
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50.29
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45.47
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47.78
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45.64
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67.60
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45.64
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Average daily volume (in thousands)
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57
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61
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63
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71
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55
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63
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53
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Treasury share activity:
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Treasury shares repurchased (in thousands)
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-
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-
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2
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229
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150
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231
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150
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Average treasury share repurchase price
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$
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-
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$
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-
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$
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46.65
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$
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43.31
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$
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46.91
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$
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43.34
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$
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46.91
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Common share issuance:
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Common shares issued (in thousands)
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108
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-
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-
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-
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-
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108
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-
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Average common share issue price (a)
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$
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66.21
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$
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-
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$
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-
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$
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-
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$
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-
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$
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66.21
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$
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-
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Key Ratios (percent)
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Return on average assets
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1.49
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%
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1.38
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%
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1.31
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%
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1.25
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%
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1.48
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%
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1.36
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%
|
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1.52
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%
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Return on average tangible equity
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16.1
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%
|
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14.9
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%
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14.5
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%
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|
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13.8
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%
|
|
|
15.5
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%
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|
|
14.8
|
%
|
|
|
15.8
|
%
|
Yield on interest earning assets
|
|
|
3.81
|
%
|
|
|
3.85
|
%
|
|
|
3.95
|
%
|
|
|
3.91
|
%
|
|
|
3.99
|
%
|
|
|
3.88
|
%
|
|
|
4.14
|
%
|
Cost of interest bearing liabilities
|
|
|
0.50
|
%
|
|
|
0.49
|
%
|
|
|
0.49
|
%
|
|
|
0.48
|
%
|
|
|
0.46
|
%
|
|
|
0.49
|
%
|
|
|
0.47
|
%
|
Net Interest Margin
|
|
|
3.42
|
%
|
|
|
3.48
|
%
|
|
|
3.56
|
%
|
|
|
3.53
|
%
|
|
|
3.62
|
%
|
|
|
3.50
|
%
|
|
|
3.76
|
%
|
Non-interest income as a percent of total revenue
|
|
|
32.1
|
%
|
|
|
32.1
|
%
|
|
|
31.6
|
%
|
|
|
31.1
|
%
|
|
|
32.5
|
%
|
|
|
31.7
|
%
|
|
|
36.1
|
%
|
Efficiency Ratio
|
|
|
48.9
|
%
|
|
|
56.3
|
%
|
|
|
55.6
|
%
|
|
|
56.8
|
%
|
|
|
48.5
|
%
|
|
|
54.8
|
%
|
|
|
53.7
|
%
|
Price/Earnings Ratio (b)
|
|
|
17.38
|
|
|
|
14.33
|
|
|
|
13.66
|
|
|
|
15.40
|
|
|
|
12.94
|
|
|
|
19.56
|
|
|
|
12.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital (period-end)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Shareholders' Equity to Average Assets
|
|
|
11.25
|
%
|
|
|
11.35
|
%
|
|
|
11.13
|
%
|
|
|
11.23
|
%
|
|
|
11.65
|
%
|
|
|
|
|
Tangible equity to tangible assets
|
|
|
9.34
|
%
|
|
|
9.39
|
%
|
|
|
9.38
|
%
|
|
|
9.03
|
%
|
|
|
9.34
|
%
|
|
|
|
|
Consolidated risk based capital ratios (c):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CET I
|
|
|
13.41
|
%
|
|
|
13.00
|
%
|
|
|
13.21
|
%
|
|
|
13.38
|
%
|
|
|
13.65
|
%
|
|
|
|
|
Tier I
|
|
|
13.98
|
%
|
|
|
13.59
|
%
|
|
|
13.82
|
%
|
|
|
14.00
|
%
|
|
|
14.28
|
%
|
|
|
|
|
Total
|
|
|
14.73
|
%
|
|
|
14.33
|
%
|
|
|
14.57
|
%
|
|
|
14.78
|
%
|
|
|
15.10
|
%
|
|
|
|
|
Leverage
|
|
|
10.08
|
%
|
|
|
9.92
|
%
|
|
|
9.74
|
%
|
|
|
9.78
|
%
|
|
|
10.15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branches
|
|
|
85
|
|
|
|
85
|
|
|
|
85
|
|
|
|
85
|
|
|
|
85
|
|
|
|
|
|
FTE
|
|
|
847
|
|
|
|
834
|
|
|
|
852
|
|
|
|
854
|
|
|
|
853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets per FTE (in thousands)
|
|
$
|
4,687
|
|
|
$
|
4,636
|
|
|
$
|
4,468
|
|
|
$
|
4,484
|
|
|
$
|
4,354
|
|
|
|
|
|
Deposits per FTE (in thousands)
|
|
|
3,815
|
|
|
|
3,812
|
|
|
|
3,688
|
|
|
|
3,732
|
|
|
|
3,615
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The common share issue price is presented net of commissions and
excludes one-time offering costs of approximately $265,000.
|
(b) The price/earnings ratio is computed based on annualized
quarterly earnings.
|
(c) December 31, 2016 risk-based capital ratios are estimated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) ($ in 000s, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
December 31, 2016
|
|
September 30, 2016
|
|
June 30, 2016
|
|
March 31, 2016
|
|
December 31, 2015
|
|
December 31, 2016
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans
|
|
$
|
30,126
|
|
$
|
29,444
|
|
$
|
29,640
|
|
$
|
28,927
|
|
$
|
29,032
|
|
$
|
118,138
|
|
$
|
115,107
|
Interest on investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
3,277
|
|
|
3,183
|
|
|
2,927
|
|
|
3,005
|
|
|
2,856
|
|
|
12,392
|
|
|
10,830
|
Tax-exempt
|
|
|
481
|
|
|
419
|
|
|
365
|
|
|
357
|
|
|
334
|
|
|
1,622
|
|
|
1,137
|
Total Interest Income
|
|
|
33,884
|
|
|
33,046
|
|
|
32,932
|
|
|
32,289
|
|
|
32,222
|
|
|
132,152
|
|
|
127,074
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits
|
|
|
3,137
|
|
|
3,006
|
|
|
3,011
|
|
|
2,898
|
|
|
2,760
|
|
|
12,052
|
|
|
10,886
|
Interest on short-term borrowings
|
|
|
188
|
|
|
90
|
|
|
86
|
|
|
107
|
|
|
91
|
|
|
472
|
|
|
327
|
Interest on long-term debt
|
|
|
179
|
|
|
172
|
|
|
167
|
|
|
164
|
|
|
159
|
|
|
683
|
|
|
617
|
Total Interest Expense
|
|
|
3,504
|
|
|
3,268
|
|
|
3,264
|
|
|
3,169
|
|
|
3,010
|
|
|
13,207
|
|
|
11,830
|
Net Interest Income
|
|
|
30,380
|
|
|
29,778
|
|
|
29,668
|
|
|
29,120
|
|
|
29,212
|
|
|
118,945
|
|
|
115,244
|
Provision for loan losses
|
|
|
1,301
|
|
|
1,432
|
|
|
1,122
|
|
|
539
|
|
|
2,813
|
|
|
4,395
|
|
|
6,988
|
Net Interest Income After Provision for Loan Losses
|
|
|
29,079
|
|
|
28,346
|
|
|
28,546
|
|
|
28,581
|
|
|
26,399
|
|
|
114,550
|
|
|
108,256
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains on sale of investment securities
|
|
|
-
|
|
|
2,668
|
|
|
845
|
|
|
-
|
|
|
-
|
|
|
3,513
|
|
|
2,130
|
Service charges
|
|
|
6,995
|
|
|
6,842
|
|
|
6,564
|
|
|
6,303
|
|
|
6,893
|
|
|
26,703
|
|
|
26,316
|
Bankcard revenue
|
|
|
4,142
|
|
|
4,216
|
|
|
4,190
|
|
|
3,967
|
|
|
3,923
|
|
|
16,515
|
|
|
15,894
|
Trust and investment management fee income
|
|
|
1,597
|
|
|
1,329
|
|
|
1,371
|
|
|
1,276
|
|
|
1,547
|
|
|
5,573
|
|
|
5,124
|
Bank owned life insurance
|
|
|
952
|
|
|
846
|
|
|
768
|
|
|
760
|
|
|
898
|
|
|
3,326
|
|
|
3,374
|
Gain on sale of insurance division
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
11,084
|
Other income
|
|
|
685
|
|
|
846
|
|
|
843
|
|
|
821
|
|
|
813
|
|
|
3,195
|
|
|
3,284
|
Total Non-Interest Income
|
|
|
14,371
|
|
|
16,747
|
|
|
14,581
|
|
|
13,127
|
|
|
14,074
|
|
|
58,825
|
|
|
67,206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
|
12,427
|
|
|
12,993
|
|
|
12,790
|
|
|
12,673
|
|
|
11,296
|
|
|
50,883
|
|
|
47,847
|
Occupancy and equipment
|
|
|
2,792
|
|
|
2,759
|
|
|
2,708
|
|
|
2,836
|
|
|
2,583
|
|
|
11,095
|
|
|
10,277
|
Depreciation
|
|
|
1,516
|
|
|
1,585
|
|
|
1,567
|
|
|
1,567
|
|
|
1,539
|
|
|
6,235
|
|
|
6,088
|
FDIC insurance expense
|
|
|
137
|
|
|
508
|
|
|
512
|
|
|
465
|
|
|
443
|
|
|
1,622
|
|
|
1,794
|
Advertising
|
|
|
445
|
|
|
667
|
|
|
778
|
|
|
716
|
|
|
264
|
|
|
2,606
|
|
|
2,446
|
Bankcard expenses
|
|
|
1,011
|
|
|
1,188
|
|
|
1,016
|
|
|
938
|
|
|
918
|
|
|
4,154
|
|
|
3,690
|
Postage, delivery, and statement mailings
|
|
|
492
|
|
|
517
|
|
|
506
|
|
|
565
|
|
|
532
|
|
|
2,080
|
|
|
2,123
|
Office supplies
|
|
|
320
|
|
|
325
|
|
|
366
|
|
|
353
|
|
|
273
|
|
|
1,364
|
|
|
1,350
|
Legal and professional fees
|
|
|
515
|
|
|
869
|
|
|
437
|
|
|
366
|
|
|
522
|
|
|
2,186
|
|
|
1,963
|
Telecommunications
|
|
|
494
|
|
|
459
|
|
|
431
|
|
|
428
|
|
|
409
|
|
|
1,813
|
|
|
1,765
|
Repossessed asset losses, net of expenses
|
|
|
244
|
|
|
305
|
|
|
53
|
|
|
288
|
|
|
217
|
|
|
890
|
|
|
1,264
|
Merger related expenses
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
315
|
|
|
-
|
|
|
598
|
Other expenses
|
|
|
2,063
|
|
|
3,109
|
|
|
3,119
|
|
|
2,945
|
|
|
1,854
|
|
|
11,236
|
|
|
11,746
|
Total Non-Interest Expense
|
|
|
22,456
|
|
|
25,284
|
|
|
24,283
|
|
|
24,140
|
|
|
21,165
|
|
|
96,164
|
|
|
92,951
|
Income Before Income Taxes
|
|
|
20,994
|
|
|
19,809
|
|
|
18,844
|
|
|
17,568
|
|
|
19,308
|
|
|
77,211
|
|
|
82,511
|
Income tax expense
|
|
|
6,338
|
|
|
6,577
|
|
|
6,303
|
|
|
5,866
|
|
|
5,793
|
|
|
25,083
|
|
|
28,414
|
Net Income Available to Common Shareholders
|
|
$
|
14,656
|
|
$
|
13,232
|
|
$
|
12,541
|
|
$
|
11,702
|
|
$
|
13,515
|
|
$
|
52,128
|
|
$
|
54,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributed earnings allocated to common shareholders
|
|
$
|
6,428
|
|
$
|
6,376
|
|
$
|
6,375
|
|
$
|
6,365
|
|
$
|
6,303
|
|
$
|
25,710
|
|
$
|
25,212
|
Undistributed earnings allocated to common shareholders
|
|
|
8,051
|
|
|
6,699
|
|
|
6,016
|
|
|
5,206
|
|
|
7,059
|
|
|
25,795
|
|
|
28,272
|
Net earnings allocated to common shareholders
|
|
$
|
14,479
|
|
$
|
13,075
|
|
$
|
12,391
|
|
$
|
11,571
|
|
$
|
13,362
|
|
$
|
51,505
|
|
$
|
53,484
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares outstanding
|
|
|
14,894
|
|
|
14,899
|
|
|
14,889
|
|
|
14,916
|
|
|
15,158
|
|
|
14,900
|
|
|
15,123
|
Shares for diluted earnings per share
|
|
|
14,914
|
|
|
14,909
|
|
|
14,902
|
|
|
14,927
|
|
|
15,175
|
|
|
14,913
|
|
|
15,170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share
|
|
$
|
0.97
|
|
$
|
0.88
|
|
$
|
0.83
|
|
$
|
0.78
|
|
$
|
0.88
|
|
$
|
3.46
|
|
$
|
3.54
|
Diluted earnings per common share
|
|
$
|
0.97
|
|
$
|
0.88
|
|
$
|
0.83
|
|
$
|
0.78
|
|
$
|
0.88
|
|
$
|
3.45
|
|
$
|
3.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
Loan Portfolio
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) ($ in 000s)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
September 30, 2016
|
|
June 30, 2016
|
|
March 31, 2016
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate (1)
|
|
$
|
1,451,462
|
|
$
|
1,445,242
|
|
$
|
1,417,137
|
|
$
|
1,395,670
|
|
$
|
1,383,133
|
Home equity - junior liens
|
|
|
141,965
|
|
|
141,616
|
|
|
142,827
|
|
|
142,694
|
|
|
147,036
|
Commercial and industrial
|
|
|
185,667
|
|
|
176,387
|
|
|
171,362
|
|
|
165,549
|
|
|
165,340
|
Commercial real estate (2)
|
|
|
1,229,516
|
|
|
1,158,088
|
|
|
1,135,493
|
|
|
1,135,625
|
|
|
1,127,581
|
Consumer
|
|
|
32,545
|
|
|
33,614
|
|
|
33,799
|
|
|
34,754
|
|
|
36,083
|
DDA overdrafts
|
|
|
5,071
|
|
|
2,965
|
|
|
2,780
|
|
|
2,825
|
|
|
3,361
|
Gross Loans
|
|
$
|
3,046,226
|
|
$
|
2,957,912
|
|
$
|
2,903,398
|
|
$
|
2,877,117
|
|
$
|
2,862,534
|
|
|
|
|
|
|
|
|
|
|
|
Construction loans included in:
|
|
|
|
|
|
|
|
|
|
|
(1) - Residential real estate loans
|
|
$
|
14,182
|
|
$
|
12,284
|
|
$
|
12,344
|
|
$
|
13,966
|
|
$
|
13,135
|
(2) - Commercial real estate loans
|
|
|
12,840
|
|
|
7,309
|
|
|
2,237
|
|
|
15,172
|
|
|
12,599
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secondary Mortgage Loan Activity
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans originated
|
|
$
|
6,444
|
|
$
|
5,624
|
|
$
|
3,103
|
|
$
|
2,809
|
|
$
|
3,855
|
Mortgage loans sold
|
|
|
4,936
|
|
|
5,836
|
|
|
3,183
|
|
|
3,107
|
|
|
4,135
|
Mortgage loans gain on loans sold
|
|
|
107
|
|
|
129
|
|
|
80
|
|
|
58
|
|
|
88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
($ in 000s)
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
December 31, 2016
|
|
September 30, 2016
|
|
June 30, 2016
|
|
March 31, 2016
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
62,263
|
|
|
$
|
57,233
|
|
|
$
|
69,933
|
|
|
$
|
165,134
|
|
|
$
|
58,829
|
|
Interest-bearing deposits in depository institutions
|
|
|
25,876
|
|
|
|
7,576
|
|
|
|
8,643
|
|
|
|
10,031
|
|
|
|
11,284
|
|
Cash and cash equivalents
|
|
|
88,139
|
|
|
|
64,809
|
|
|
|
78,576
|
|
|
|
175,165
|
|
|
|
70,113
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities available-for-sale, at fair value
|
|
|
450,083
|
|
|
|
434,717
|
|
|
|
409,039
|
|
|
|
362,282
|
|
|
|
369,466
|
|
Investment securities held-to-maturity, at amortized cost
|
|
|
75,169
|
|
|
|
79,499
|
|
|
|
83,208
|
|
|
|
86,518
|
|
|
|
88,937
|
|
Other securities
|
|
|
14,352
|
|
|
|
11,895
|
|
|
|
10,203
|
|
|
|
9,960
|
|
|
|
12,915
|
|
Total investment securities
|
|
|
539,604
|
|
|
|
526,111
|
|
|
|
502,450
|
|
|
|
458,760
|
|
|
|
471,318
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans
|
|
|
3,046,226
|
|
|
|
2,957,912
|
|
|
|
2,903,398
|
|
|
|
2,877,117
|
|
|
|
2,862,534
|
|
Allowance for loan losses
|
|
|
(19,730
|
)
|
|
|
(19,550
|
)
|
|
|
(19,139
|
)
|
|
|
(19,315
|
)
|
|
|
(19,251
|
)
|
Net loans
|
|
|
3,026,496
|
|
|
|
2,938,362
|
|
|
|
2,884,259
|
|
|
|
2,857,802
|
|
|
|
2,843,283
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank owned life insurance
|
|
|
100,732
|
|
|
|
100,293
|
|
|
|
99,446
|
|
|
|
98,679
|
|
|
|
97,919
|
|
Premises and equipment, net
|
|
|
75,165
|
|
|
|
75,589
|
|
|
|
75,040
|
|
|
|
75,965
|
|
|
|
77,271
|
|
Accrued interest receivable
|
|
|
8,408
|
|
|
|
7,986
|
|
|
|
8,428
|
|
|
|
8,517
|
|
|
|
7,432
|
|
Net deferred tax assets
|
|
|
28,012
|
|
|
|
23,179
|
|
|
|
23,995
|
|
|
|
27,541
|
|
|
|
29,974
|
|
Intangible assets
|
|
|
79,135
|
|
|
|
79,284
|
|
|
|
79,433
|
|
|
|
79,581
|
|
|
|
79,792
|
|
Other assets
|
|
|
23,957
|
|
|
|
50,748
|
|
|
|
55,234
|
|
|
|
47,656
|
|
|
|
36,957
|
|
Total Assets
|
|
$
|
3,969,648
|
|
|
$
|
3,866,361
|
|
|
$
|
3,806,861
|
|
|
$
|
3,829,666
|
|
|
$
|
3,714,059
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
|
672,286
|
|
|
$
|
669,865
|
|
|
$
|
651,867
|
|
|
$
|
666,523
|
|
|
$
|
621,073
|
|
Interest-bearing:
|
|
|
|
|
|
|
|
|
|
|
Demand deposits
|
|
|
695,891
|
|
|
|
713,642
|
|
|
|
701,248
|
|
|
|
711,366
|
|
|
|
679,735
|
|
Savings deposits
|
|
|
822,057
|
|
|
|
765,195
|
|
|
|
758,323
|
|
|
|
780,982
|
|
|
|
765,611
|
|
Time deposits
|
|
|
1,041,419
|
|
|
|
1,030,584
|
|
|
|
1,030,841
|
|
|
|
1,028,400
|
|
|
|
1,017,556
|
|
Total deposits
|
|
|
3,231,653
|
|
|
|
3,179,286
|
|
|
|
3,142,279
|
|
|
|
3,187,271
|
|
|
|
3,083,975
|
|
Short-term borrowings
|
|
|
|
|
|
|
|
|
|
|
Federal Funds purchased
|
|
|
64,100
|
|
|
|
6,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
13,000
|
|
Customer repurchase agreements
|
|
|
184,205
|
|
|
|
173,384
|
|
|
|
153,674
|
|
|
|
156,714
|
|
|
|
141,869
|
|
Long-term debt
|
|
|
16,495
|
|
|
|
16,495
|
|
|
|
16,495
|
|
|
|
16,495
|
|
|
|
16,495
|
|
Other liabilities
|
|
|
30,702
|
|
|
|
56,412
|
|
|
|
66,054
|
|
|
|
51,068
|
|
|
|
39,448
|
|
Total Liabilities
|
|
|
3,527,155
|
|
|
|
3,431,577
|
|
|
|
3,378,502
|
|
|
|
3,411,548
|
|
|
|
3,294,787
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Common stock
|
|
|
46,518
|
|
|
|
46,249
|
|
|
|
46,249
|
|
|
|
46,249
|
|
|
|
46,249
|
|
Capital surplus
|
|
|
112,873
|
|
|
|
105,996
|
|
|
|
105,648
|
|
|
|
106,137
|
|
|
|
106,269
|
|
Retained earnings
|
|
|
417,017
|
|
|
|
408,823
|
|
|
|
402,044
|
|
|
|
395,963
|
|
|
|
390,690
|
|
Cost of common stock in treasury
|
|
|
(126,958
|
)
|
|
|
(127,538
|
)
|
|
|
(127,619
|
)
|
|
|
(129,142
|
)
|
|
|
(120,104
|
)
|
Accumulated other comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on securities available-for-sale
|
|
|
(2,352
|
)
|
|
|
6,013
|
|
|
|
6,796
|
|
|
|
3,670
|
|
|
|
927
|
|
Underfunded pension liability
|
|
|
(4,605
|
)
|
|
|
(4,759
|
)
|
|
|
(4,759
|
)
|
|
|
(4,759
|
)
|
|
|
(4,759
|
)
|
Total Accumulated Other Comprehensive Loss
|
|
|
(6,957
|
)
|
|
|
1,254
|
|
|
|
2,037
|
|
|
|
(1,089
|
)
|
|
|
(3,832
|
)
|
Total Stockholders' Equity
|
|
|
442,493
|
|
|
|
434,784
|
|
|
|
428,359
|
|
|
|
418,118
|
|
|
|
419,272
|
|
Total Liabilities and Stockholders' Equity
|
|
$
|
3,969,648
|
|
|
$
|
3,866,361
|
|
|
$
|
3,806,861
|
|
|
$
|
3,829,666
|
|
|
$
|
3,714,059
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory Capital
|
|
|
|
|
|
|
|
|
|
|
Total CET 1 capital
|
|
$
|
371,677
|
|
|
$
|
355,934
|
|
|
$
|
349,100
|
|
|
$
|
341,165
|
|
|
$
|
345,620
|
|
Total tier 1 capital
|
|
|
387,677
|
|
|
|
371,934
|
|
|
|
365,100
|
|
|
|
357,165
|
|
|
|
361,620
|
|
Total risk-based capital
|
|
|
408,406
|
|
|
|
392,258
|
|
|
|
384,855
|
|
|
|
377,003
|
|
|
|
382,180
|
|
Total risk-weighted assets
|
|
|
2,772,456
|
|
|
|
2,737,721
|
|
|
|
2,642,040
|
|
|
|
2,550,739
|
|
|
|
2,531,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) ($ in 000s)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
December 31, 2016
|
|
September 30, 2016
|
|
June 30, 2016
|
|
March 31, 2016
|
|
December 31, 2015
|
|
December 31, 2016
|
|
December 31, 2015
|
Allowance for Loan Losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
$
|
19,550
|
|
|
$
|
19,139
|
|
|
$
|
19,315
|
|
|
$
|
19,251
|
|
|
$
|
20,148
|
|
|
$
|
19,251
|
|
|
$
|
20,074
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
-
|
|
|
|
(103
|
)
|
|
|
(44
|
)
|
|
|
(1
|
)
|
|
|
(3,148
|
)
|
|
|
(148
|
)
|
|
|
(5,768
|
)
|
Commercial real estate
|
|
|
(463
|
)
|
|
|
(142
|
)
|
|
|
(769
|
)
|
|
|
(302
|
)
|
|
|
(303
|
)
|
|
|
(1,676
|
)
|
|
|
(580
|
)
|
Residential real estate
|
|
|
(453
|
)
|
|
|
(539
|
)
|
|
|
(337
|
)
|
|
|
(405
|
)
|
|
|
(386
|
)
|
|
|
(1,734
|
)
|
|
|
(1,144
|
)
|
Home equity
|
|
|
(90
|
)
|
|
|
(125
|
)
|
|
|
(69
|
)
|
|
|
(106
|
)
|
|
|
(76
|
)
|
|
|
(390
|
)
|
|
|
(312
|
)
|
Consumer
|
|
|
(24
|
)
|
|
|
(20
|
)
|
|
|
(44
|
)
|
|
|
(38
|
)
|
|
|
(39
|
)
|
|
|
(126
|
)
|
|
|
(210
|
)
|
DDA overdrafts
|
|
|
(395
|
)
|
|
|
(378
|
)
|
|
|
(321
|
)
|
|
|
(318
|
)
|
|
|
(376
|
)
|
|
|
(1,412
|
)
|
|
|
(1,414
|
)
|
Total charge-offs
|
|
|
(1,425
|
)
|
|
|
(1,307
|
)
|
|
|
(1,584
|
)
|
|
|
(1,170
|
)
|
|
|
(4,328
|
)
|
|
|
(5,486
|
)
|
|
|
(9,428
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
1
|
|
|
|
9
|
|
|
|
3
|
|
|
|
1
|
|
|
|
2
|
|
|
|
14
|
|
|
|
74
|
|
Commercial real estate
|
|
|
40
|
|
|
|
43
|
|
|
|
20
|
|
|
|
384
|
|
|
|
317
|
|
|
|
487
|
|
|
|
366
|
|
Residential real estate
|
|
|
74
|
|
|
|
23
|
|
|
|
51
|
|
|
|
39
|
|
|
|
69
|
|
|
|
187
|
|
|
|
199
|
|
Home equity
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Consumer
|
|
|
9
|
|
|
|
28
|
|
|
|
52
|
|
|
|
29
|
|
|
|
32
|
|
|
|
118
|
|
|
|
186
|
|
DDA overdrafts
|
|
|
180
|
|
|
|
183
|
|
|
|
160
|
|
|
|
242
|
|
|
|
198
|
|
|
|
764
|
|
|
|
792
|
|
Total recoveries
|
|
|
304
|
|
|
|
286
|
|
|
|
286
|
|
|
|
695
|
|
|
|
618
|
|
|
|
1,570
|
|
|
|
1,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
|
|
|
(1,121
|
)
|
|
|
(1,021
|
)
|
|
|
(1,298
|
)
|
|
|
(475
|
)
|
|
|
(3,710
|
)
|
|
|
(3,916
|
)
|
|
|
(7,811
|
)
|
Provision for (recovery of) acquired loans
|
|
|
(1
|
)
|
|
|
(4
|
)
|
|
|
128
|
|
|
|
40
|
|
|
|
32
|
|
|
|
163
|
|
|
|
553
|
|
Provision for loan losses
|
|
|
1,302
|
|
|
|
1,436
|
|
|
|
994
|
|
|
|
499
|
|
|
|
2,781
|
|
|
|
4,232
|
|
|
|
6,435
|
|
Balance at end of period
|
|
$
|
19,730
|
|
|
$
|
19,550
|
|
|
$
|
19,139
|
|
|
$
|
19,315
|
|
|
$
|
19,251
|
|
|
$
|
19,730
|
|
|
$
|
19,251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans outstanding
|
|
$
|
3,046,226
|
|
|
$
|
2,957,912
|
|
|
$
|
2,903,398
|
|
|
$
|
2,877,117
|
|
|
$
|
2,862,534
|
|
|
|
|
|
Allowance as a percent of loans outstanding
|
|
|
0.65
|
%
|
|
|
0.66
|
%
|
|
|
0.66
|
%
|
|
|
0.67
|
%
|
|
|
0.67
|
%
|
|
|
|
|
Allowance as a percent of non-performing loans
|
|
|
140.1
|
%
|
|
|
129.0
|
%
|
|
|
124.0
|
%
|
|
|
120.4
|
%
|
|
|
110.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans outstanding
|
|
$
|
3,006,426
|
|
|
$
|
2,919,756
|
|
|
$
|
2,891,292
|
|
|
$
|
2,864,943
|
|
|
$
|
2,789,354
|
|
|
$
|
2,920,837
|
|
|
$
|
2,691,304
|
|
Net charge-offs (annualized) as a percent of average loans
outstanding
|
|
|
0.15
|
%
|
|
|
0.14
|
%
|
|
|
0.18
|
%
|
|
|
0.07
|
%
|
|
|
0.53
|
%
|
|
|
0.13
|
%
|
|
|
0.29
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
Asset Quality Information, continued
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) ($ in 000s)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
September 30, 2016
|
|
June 30, 2016
|
|
March 31, 2016
|
|
December 31, 2015
|
Nonaccrual Loans
|
|
|
|
|
|
|
|
|
|
|
Residential real estate
|
|
$
|
4,302
|
|
|
$
|
3,919
|
|
|
$
|
2,531
|
|
|
$
|
2,977
|
|
|
$
|
2,918
|
|
Home equity
|
|
|
100
|
|
|
|
154
|
|
|
|
165
|
|
|
|
152
|
|
|
|
136
|
|
Commercial and industrial
|
|
|
1,958
|
|
|
|
2,441
|
|
|
|
2,724
|
|
|
|
2,967
|
|
|
|
2,745
|
|
Commercial real estate
|
|
|
7,341
|
|
|
|
8,077
|
|
|
|
9,779
|
|
|
|
9,718
|
|
|
|
11,149
|
|
Consumer
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total nonaccrual loans
|
|
|
13,701
|
|
|
|
14,591
|
|
|
|
15,199
|
|
|
|
15,814
|
|
|
|
16,948
|
|
Accruing loans past due 90 days or more
|
|
|
382
|
|
|
|
569
|
|
|
|
241
|
|
|
|
225
|
|
|
|
495
|
|
Total non-performing loans
|
|
|
14,083
|
|
|
|
15,160
|
|
|
|
15,440
|
|
|
|
16,039
|
|
|
|
17,443
|
|
Other real estate owned
|
|
|
4,588
|
|
|
|
5,435
|
|
|
|
5,868
|
|
|
|
6,054
|
|
|
|
6,519
|
|
Total non-performing assets
|
|
$
|
18,671
|
|
|
$
|
20,595
|
|
|
$
|
21,308
|
|
|
$
|
22,093
|
|
|
$
|
23,962
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets as a percent of loans and other real estate
owned
|
|
|
0.61
|
%
|
|
|
0.69
|
%
|
|
|
0.73
|
%
|
|
|
0.77
|
%
|
|
|
0.84
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Past Due Loans
|
|
|
|
|
|
|
|
|
|
|
Residential real estate
|
|
$
|
6,074
|
|
|
$
|
5,713
|
|
|
$
|
5,490
|
|
|
$
|
5,045
|
|
|
$
|
6,610
|
|
Home equity
|
|
|
673
|
|
|
|
925
|
|
|
|
595
|
|
|
|
595
|
|
|
|
406
|
|
Commercial and industrial
|
|
|
94
|
|
|
|
399
|
|
|
|
304
|
|
|
|
343
|
|
|
|
159
|
|
Commercial real estate
|
|
|
1,115
|
|
|
|
1,275
|
|
|
|
1,746
|
|
|
|
2,138
|
|
|
|
1,480
|
|
Consumer
|
|
|
39
|
|
|
|
104
|
|
|
|
150
|
|
|
|
82
|
|
|
|
196
|
|
DDA overdrafts
|
|
|
599
|
|
|
|
554
|
|
|
|
290
|
|
|
|
514
|
|
|
|
313
|
|
Total past due loans
|
|
$
|
8,594
|
|
|
$
|
8,970
|
|
|
$
|
8,575
|
|
|
$
|
8,717
|
|
|
$
|
9,164
|
|
|
|
|
|
|
|
|
|
|
|
|
Total past due loans as a percent of loans outstanding
|
|
|
0.28
|
%
|
|
|
0.30
|
%
|
|
|
0.30
|
%
|
|
|
0.30
|
%
|
|
|
0.32
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Troubled Debt Restructurings ("TDRs")
|
|
|
|
|
|
|
|
|
|
|
Accruing:
|
|
|
|
|
|
|
|
|
|
|
Residential real estate
|
|
$
|
20,643
|
|
|
$
|
19,944
|
|
|
$
|
19,685
|
|
|
$
|
18,306
|
|
|
$
|
17,796
|
|
Home equity
|
|
|
3,105
|
|
|
|
3,159
|
|
|
|
2,873
|
|
|
|
2,878
|
|
|
|
2,659
|
|
Commercial and industrial
|
|
|
42
|
|
|
|
46
|
|
|
|
50
|
|
|
|
54
|
|
|
|
58
|
|
Commercial real estate
|
|
|
5,525
|
|
|
|
2,718
|
|
|
|
2,743
|
|
|
|
523
|
|
|
|
1,746
|
|
Total accruing TDRs
|
|
$
|
29,315
|
|
|
$
|
25,867
|
|
|
$
|
25,351
|
|
|
$
|
21,761
|
|
|
$
|
22,259
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Accruing
|
|
|
|
|
|
|
|
|
|
|
Residential real estate
|
|
$
|
172
|
|
|
$
|
452
|
|
|
$
|
390
|
|
|
$
|
36
|
|
|
$
|
191
|
|
Home equity
|
|
|
30
|
|
|
|
85
|
|
|
|
44
|
|
|
|
-
|
|
|
|
34
|
|
Commercial and industrial
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Commercial real estate
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Consumer
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total non-accruing TDRs
|
|
$
|
202
|
|
|
$
|
537
|
|
|
$
|
434
|
|
|
$
|
36
|
|
|
$
|
225
|
|
|
|
|
|
|
|
|
|
|
|
|
Total TDRs
|
|
$
|
29,517
|
|
|
$
|
26,404
|
|
|
$
|
25,785
|
|
|
$
|
21,797
|
|
|
$
|
22,484
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND SUBSIDIARIES
|
Consolidated Average Balance Sheets, Yields, and Rates
|
(Unaudited) ($ in 000s)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
December 31, 2016
|
|
September 30, 2016
|
|
December 31, 2015
|
|
|
Average
|
|
|
|
Yield/
|
|
Average
|
|
|
|
Yield/
|
|
Average
|
|
|
|
Yield/
|
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan portfolio (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate (2)
|
|
$
|
1,597,711
|
|
|
$
|
15,469
|
|
3.85
|
%
|
|
$
|
1,570,787
|
|
|
$
|
15,310
|
|
3.88
|
%
|
|
$
|
1,518,581
|
|
|
$
|
14,763
|
|
3.86
|
%
|
Commercial, financial, and agriculture (2)
|
|
|
1,372,197
|
|
|
|
13,518
|
|
3.92
|
%
|
|
|
1,311,819
|
|
|
|
13,066
|
|
3.96
|
%
|
|
|
1,230,907
|
|
|
|
13,034
|
|
4.20
|
%
|
Installment loans to individuals (2), (3)
|
|
|
36,518
|
|
|
|
696
|
|
7.59
|
%
|
|
|
37,150
|
|
|
|
690
|
|
7.39
|
%
|
|
|
39,865
|
|
|
|
750
|
|
7.47
|
%
|
Previously securitized loans (4)
|
|
***
|
|
|
443
|
|
***
|
|
***
|
|
|
378
|
|
***
|
|
***
|
|
|
485
|
|
***
|
Total loans
|
|
|
3,006,426
|
|
|
|
30,126
|
|
3.99
|
%
|
|
|
2,919,756
|
|
|
|
29,444
|
|
4.01
|
%
|
|
|
2,789,353
|
|
|
|
29,032
|
|
4.13
|
%
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
479,272
|
|
|
|
3,277
|
|
2.72
|
%
|
|
|
449,977
|
|
|
|
3,183
|
|
2.81
|
%
|
|
|
387,048
|
|
|
|
2,856
|
|
2.93
|
%
|
Tax-exempt (5)
|
|
|
64,351
|
|
|
|
739
|
|
4.57
|
%
|
|
|
54,317
|
|
|
|
644
|
|
4.72
|
%
|
|
|
37,818
|
|
|
|
513
|
|
5.38
|
%
|
Total securities
|
|
|
543,623
|
|
|
|
4,016
|
|
2.94
|
%
|
|
|
504,294
|
|
|
|
3,827
|
|
3.02
|
%
|
|
|
424,866
|
|
|
|
3,369
|
|
3.15
|
%
|
Deposits in depository institutions
|
|
|
11,117
|
|
|
|
-
|
|
-
|
|
|
|
9,623
|
|
|
|
-
|
|
-
|
|
|
|
9,562
|
|
|
|
-
|
|
-
|
|
Total interest-earning assets
|
|
|
3,561,166
|
|
|
|
34,142
|
|
3.81
|
%
|
|
|
3,433,673
|
|
|
|
33,271
|
|
3.85
|
%
|
|
|
3,223,781
|
|
|
|
32,401
|
|
3.99
|
%
|
Cash and due from banks
|
|
|
68,514
|
|
|
|
|
|
|
|
87,219
|
|
|
|
|
|
|
|
117,290
|
|
|
|
|
|
Premises and equipment, net
|
|
|
75,744
|
|
|
|
|
|
|
|
75,743
|
|
|
|
|
|
|
|
75,729
|
|
|
|
|
|
Other assets
|
|
|
249,270
|
|
|
|
|
|
|
|
263,258
|
|
|
|
|
|
|
|
248,694
|
|
|
|
|
|
Less: Allowance for loan losses
|
|
|
(20,024
|
)
|
|
|
|
|
|
|
(19,517
|
)
|
|
|
|
|
|
|
(21,101
|
)
|
|
|
|
|
Total assets
|
|
$
|
3,934,670
|
|
|
|
|
|
|
$
|
3,840,376
|
|
|
|
|
|
|
$
|
3,644,393
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits
|
|
$
|
689,784
|
|
|
$
|
157
|
|
0.09
|
%
|
|
$
|
687,487
|
|
|
$
|
138
|
|
0.08
|
%
|
|
$
|
650,523
|
|
|
$
|
126
|
|
0.08
|
%
|
Savings deposits
|
|
|
793,362
|
|
|
|
276
|
|
0.14
|
%
|
|
|
761,734
|
|
|
|
234
|
|
0.12
|
%
|
|
|
732,129
|
|
|
|
192
|
|
0.10
|
%
|
Time deposits (2)
|
|
|
1,036,103
|
|
|
|
2,704
|
|
1.04
|
%
|
|
|
1,030,731
|
|
|
|
2,634
|
|
1.02
|
%
|
|
|
1,004,296
|
|
|
|
2,442
|
|
0.96
|
%
|
Short-term borrowings
|
|
|
233,192
|
|
|
|
188
|
|
0.32
|
%
|
|
|
154,585
|
|
|
|
90
|
|
0.23
|
%
|
|
|
165,996
|
|
|
|
91
|
|
0.22
|
%
|
Long-term debt
|
|
|
16,495
|
|
|
|
179
|
|
4.32
|
%
|
|
|
16,495
|
|
|
|
172
|
|
4.15
|
%
|
|
|
16,495
|
|
|
|
159
|
|
3.82
|
%
|
Total interest-bearing liabilities
|
|
|
2,768,936
|
|
|
|
3,504
|
|
0.50
|
%
|
|
|
2,651,032
|
|
|
|
3,268
|
|
0.49
|
%
|
|
|
2,569,439
|
|
|
|
3,010
|
|
0.46
|
%
|
Noninterest-bearing demand deposits
|
|
|
680,604
|
|
|
|
|
|
|
|
700,932
|
|
|
|
|
|
|
|
609,350
|
|
|
|
|
|
Other liabilities
|
|
|
42,353
|
|
|
|
|
|
|
|
52,641
|
|
|
|
|
|
|
|
41,151
|
|
|
|
|
|
Stockholders' equity
|
|
|
442,777
|
|
|
|
|
|
|
|
435,771
|
|
|
|
|
|
|
|
424,453
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
3,934,670
|
|
|
|
|
|
|
$
|
3,840,376
|
|
|
|
|
|
|
$
|
3,644,393
|
|
|
|
|
|
Net interest income
|
|
|
|
$
|
30,638
|
|
|
|
|
|
$
|
30,003
|
|
|
|
|
|
$
|
29,391
|
|
|
Net yield on earning assets
|
|
|
|
|
|
3.42
|
%
|
|
|
|
|
|
3.48
|
%
|
|
|
|
|
|
3.62
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) 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 Bancorp ("Virginia
Savings"), Community Financial Corporation ("Community") and
American Founders Banks, Inc. ("AFB"):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate
|
|
|
|
$
|
160
|
|
|
|
|
|
$
|
166
|
|
|
|
|
|
$
|
196
|
|
|
Commercial, financial, and agriculture
|
|
|
|
|
145
|
|
|
|
|
|
|
311
|
|
|
|
|
|
|
1,146
|
|
|
Installment loans to individuals
|
|
|
|
|
13
|
|
|
|
|
|
|
16
|
|
|
|
|
|
|
50
|
|
|
Time deposits
|
|
|
|
|
148
|
|
|
|
|
|
|
148
|
|
|
|
|
|
|
180
|
|
|
|
|
|
|
$
|
466
|
|
|
|
|
|
$
|
641
|
|
|
|
|
|
$
|
1,572
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Includes the Company’s consumer and DDA overdrafts loan
categories.
|
(4) Effective January 1, 2012, the carrying value of the Company's
previously securitized loans was reduced to $0.
|
(5) Computed on a fully federal tax-equivalent basis assuming a tax
rate of approximately 35%.
|
|
|
CITY HOLDING COMPANY AND SUBSIDIARIES
|
Consolidated Average Balance Sheets, Yields, and Rates
|
(Unaudited) ($ in 000s)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
December 31, 2016
|
|
December 31, 2015
|
|
|
Average
|
|
|
|
Yield/
|
|
Average
|
|
|
|
Yield/
|
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan portfolio (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate (2)
|
|
$
|
1,565,079
|
|
|
$
|
60,736
|
|
3.88
|
%
|
|
$
|
1,474,631
|
|
|
$
|
57,692
|
|
3.91
|
%
|
Commercial, financial, and agriculture (2)
|
|
|
1,318,094
|
|
|
|
52,812
|
|
4.01
|
%
|
|
|
1,175,707
|
|
|
|
52,177
|
|
4.44
|
%
|
Installment loans to individuals (2), (3)
|
|
|
37,664
|
|
|
|
2,917
|
|
7.75
|
%
|
|
|
40,966
|
|
|
|
3,442
|
|
8.40
|
%
|
Previously securitized loans (4)
|
|
***
|
|
|
1,673
|
|
***
|
|
***
|
|
|
1,796
|
|
***
|
Total loans
|
|
|
2,920,837
|
|
|
|
118,138
|
|
4.04
|
%
|
|
|
2,691,304
|
|
|
|
115,107
|
|
4.28
|
%
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
444,110
|
|
|
|
12,392
|
|
2.79
|
%
|
|
|
352,296
|
|
|
|
10,830
|
|
3.07
|
%
|
Tax-exempt (5)
|
|
|
51,096
|
|
|
|
2,494
|
|
4.88
|
%
|
|
|
31,389
|
|
|
|
1,749
|
|
5.57
|
%
|
Total securities
|
|
|
495,206
|
|
|
|
14,886
|
|
3.01
|
%
|
|
|
383,685
|
|
|
|
12,579
|
|
3.28
|
%
|
Deposits in depository institutions
|
|
|
10,115
|
|
|
|
-
|
|
-
|
|
|
|
9,733
|
|
|
|
-
|
|
-
|
|
Total interest-earning assets
|
|
|
3,426,158
|
|
|
|
133,024
|
|
3.88
|
%
|
|
|
3,084,722
|
|
|
|
127,686
|
|
4.14
|
%
|
Cash and due from banks
|
|
|
95,295
|
|
|
|
|
|
|
|
180,965
|
|
|
|
|
|
Premises and equipment, net
|
|
|
76,056
|
|
|
|
|
|
|
|
76,136
|
|
|
|
|
|
Other assets
|
|
|
257,525
|
|
|
|
|
|
|
|
243,902
|
|
|
|
|
|
Less: Allowance for loan losses
|
|
|
(19,953
|
)
|
|
|
|
|
|
|
(20,995
|
)
|
|
|
|
|
Total assets
|
|
$
|
3,835,081
|
|
|
|
|
|
|
$
|
3,564,730
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits
|
|
$
|
685,399
|
|
|
$
|
615
|
|
0.09
|
%
|
|
$
|
644,961
|
|
|
$
|
505
|
|
0.08
|
%
|
Savings deposits
|
|
|
772,296
|
|
|
|
975
|
|
0.13
|
%
|
|
|
706,926
|
|
|
|
712
|
|
0.10
|
%
|
Time deposits (2)
|
|
|
1,029,172
|
|
|
|
10,462
|
|
1.02
|
%
|
|
|
1,005,232
|
|
|
|
9,669
|
|
0.96
|
%
|
Short-term borrowings
|
|
|
176,065
|
|
|
|
472
|
|
0.27
|
%
|
|
|
145,199
|
|
|
|
327
|
|
0.23
|
%
|
Long-term debt
|
|
|
16,495
|
|
|
|
683
|
|
4.14
|
%
|
|
|
16,495
|
|
|
|
617
|
|
3.74
|
%
|
Total interest-bearing liabilities
|
|
|
2,679,427
|
|
|
|
13,207
|
|
0.49
|
%
|
|
|
2,518,813
|
|
|
|
11,830
|
|
0.47
|
%
|
Noninterest-bearing demand deposits
|
|
|
679,950
|
|
|
|
|
|
|
|
590,424
|
|
|
|
|
|
Other liabilities
|
|
|
44,673
|
|
|
|
|
|
|
|
40,442
|
|
|
|
|
|
Stockholders' equity
|
|
|
431,031
|
|
|
|
|
|
|
|
415,051
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
3,835,081
|
|
|
|
|
|
|
$
|
3,564,730
|
|
|
|
|
|
Net interest income
|
|
|
|
$
|
119,817
|
|
|
|
|
|
$
|
115,856
|
|
|
Net yield on earning assets
|
|
|
|
|
|
3.50
|
%
|
|
|
|
|
|
3.76
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) 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 Bancorp ("Virginia
Savings"), Community Financial Corporation ("Community") and
American Founders Banks, Inc. ("AFB"):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate
|
|
|
|
$
|
698
|
|
|
|
|
|
$
|
893
|
|
|
Commercial, financial, and agriculture
|
|
|
|
|
1,505
|
|
|
|
|
|
|
4,830
|
|
|
Installment loans to individuals
|
|
|
|
|
112
|
|
|
|
|
|
|
275
|
|
|
Time deposits
|
|
|
|
|
592
|
|
|
|
|
|
|
687
|
|
|
|
|
|
|
$
|
2,907
|
|
|
|
|
|
$
|
6,685
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Includes the Company’s consumer and DDA overdrafts loan
categories.
|
(4) Effective January 1, 2012, the carrying value of the Company's
previously securitized loans was reduced to $0.
|
(5) Computed on a fully federal tax-equivalent basis assuming a tax
rate of approximately 35%.
|
|
|
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
Acquisition Activity
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) ($ in 000s)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
December 31, 2016
|
|
September 30, 2016
|
|
June 30, 2016
|
|
March 31, 2016
|
|
December 31, 2015
|
Purchased Credit Impaired Loans
|
|
|
|
|
|
|
|
|
|
|
Virginia Savings Acquisition
|
|
|
|
|
|
|
|
|
|
|
Contractual required principal and interest
|
|
$
|
1,895
|
|
|
$
|
1,908
|
|
$
|
1,924
|
|
$
|
1,942
|
|
$
|
1,965
|
Carrying value
|
|
|
1,700
|
|
|
|
1,707
|
|
|
1,714
|
|
|
1,715
|
|
|
1,707
|
|
|
|
|
|
|
|
|
|
|
|
Community Acquisition
|
|
|
|
|
|
|
|
|
|
|
Contractual required principal and interest
|
|
$
|
11,157
|
|
|
$
|
12,091
|
|
$
|
14,042
|
|
$
|
14,415
|
|
$
|
16,362
|
Carrying value
|
|
|
8,857
|
|
|
|
9,712
|
|
|
11,160
|
|
|
11,219
|
|
|
12,899
|
|
|
|
|
|
|
|
|
|
|
|
Accretion
|
|
|
|
|
|
|
|
|
|
|
The following table presents the actual and forecasted accretion
related to the fair value adjustments on net interest income
recorded as a result of the Virginia Savings Bancorp ("Virginia
Savings"), Community Financial Corporation ("Community") and
American Founders Bank, Inc. ("AFB") acquisitions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Virginia Savings Acquisition
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
48
|
|
|
$
|
65
|
|
$
|
67
|
|
$
|
104
|
|
$
|
138
|
Certificates of deposit
|
|
|
124
|
|
|
|
124
|
|
|
124
|
|
|
124
|
|
|
129
|
|
|
$
|
172
|
|
|
$
|
189
|
|
$
|
191
|
|
$
|
228
|
|
$
|
267
|
|
|
|
|
|
|
|
|
|
|
|
Community Acquisition
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
286
|
|
|
$
|
261
|
|
$
|
699
|
|
$
|
408
|
|
$
|
1,226
|
Certificates of deposit
|
|
|
11
|
|
|
|
11
|
|
|
11
|
|
|
11
|
|
|
40
|
|
|
$
|
297
|
|
|
$
|
272
|
|
$
|
710
|
|
$
|
419
|
|
$
|
1,266
|
|
|
|
|
|
|
|
|
|
|
|
AFB Acquisition
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
(16
|
)
|
|
$
|
167
|
|
$
|
109
|
|
$
|
117
|
|
$
|
28
|
Certificates of deposit
|
|
|
13
|
|
|
|
13
|
|
|
13
|
|
|
13
|
|
|
11
|
|
|
$
|
(3
|
)
|
|
$
|
180
|
|
$
|
122
|
|
$
|
130
|
|
$
|
39
|
|
|
|
|
|
|
|
|
|
|
|
All Acquisitions
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
318
|
|
|
$
|
493
|
|
$
|
875
|
|
$
|
629
|
|
$
|
1,392
|
Certificates of deposit
|
|
|
148
|
|
|
|
148
|
|
|
148
|
|
|
148
|
|
|
180
|
|
|
$
|
466
|
|
|
$
|
641
|
|
$
|
1,023
|
|
$
|
777
|
|
$
|
1,572
|
|
|
|
|
|
|
|
|
|
|
|
Accretion Forecast
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2017
|
|
$
|
1,273
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2018
|
|
|
981
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2019
|
|
|
868
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: The amounts reflected above require management to make
significant assumptions based on estimated future default,
prepayment and discount rates. Actual performance could be
significantly different from that assumed, which could result in the
actual results being materially different from the amounts estimated
above.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND SUBSIDIARIES
|
Non-GAAP Reconciliations
|
(Unaudited) ($ in 000s, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
December 31, 2016
|
|
September 30, 2016
|
|
June 30, 2016
|
|
March 31, 2016
|
|
December 31, 2015
|
|
December 31, 2016
|
|
December 31, 2015
|
Net Interest Income/Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income, fully taxable equivalent
|
|
$
|
30,638
|
|
|
$
|
30,002
|
|
|
$
|
29,863
|
|
|
$
|
29,312
|
|
|
$
|
29,391
|
|
|
$
|
119,814
|
|
|
$
|
115,856
|
|
Taxable equivalent adjustment
|
|
|
(258
|
)
|
|
|
(224
|
)
|
|
|
(195
|
)
|
|
|
(192
|
)
|
|
|
(179
|
)
|
|
|
(869
|
)
|
|
|
(612
|
)
|
Net interest income ("GAAP")
|
|
$
|
30,380
|
|
|
$
|
29,778
|
|
|
$
|
29,668
|
|
|
$
|
29,120
|
|
|
$
|
29,212
|
|
|
$
|
118,945
|
|
|
$
|
115,244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest earning assets
|
|
|
3,561,166
|
|
|
|
3,433,673
|
|
|
|
3,369,565
|
|
|
|
3,338,659
|
|
|
|
3,223,782
|
|
|
|
3,426,158
|
|
|
|
3,084,722
|
|
Net Interest Margin
|
|
|
3.42
|
%
|
|
|
3.48
|
%
|
|
|
3.56
|
%
|
|
|
3.53
|
%
|
|
|
3.62
|
%
|
|
|
3.50
|
%
|
|
|
3.76
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income, fully taxable equivalent, excluding accretion
|
|
$
|
30,172
|
|
|
$
|
29,361
|
|
|
$
|
28,840
|
|
|
$
|
28,535
|
|
|
$
|
27,819
|
|
|
$
|
116,907
|
|
|
$
|
109,171
|
|
Taxable equivalent adjustment
|
|
|
(258
|
)
|
|
|
(224
|
)
|
|
|
(195
|
)
|
|
|
(192
|
)
|
|
|
(179
|
)
|
|
|
(869
|
)
|
|
|
(612
|
)
|
Accretion related to fair value adjustments
|
|
|
466
|
|
|
|
641
|
|
|
|
1,023
|
|
|
|
777
|
|
|
|
1,572
|
|
|
|
2,907
|
|
|
|
6,685
|
|
Net interest income ("GAAP")
|
|
$
|
30,380
|
|
|
$
|
29,778
|
|
|
$
|
29,668
|
|
|
$
|
29,120
|
|
|
$
|
29,212
|
|
|
$
|
118,945
|
|
|
$
|
115,244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest earning assets
|
|
$
|
3,561,166
|
|
|
$
|
3,433,673
|
|
|
$
|
3,369,565
|
|
|
$
|
3,338,659
|
|
|
$
|
3,223,782
|
|
|
$
|
3,426,158
|
|
|
$
|
3,084,722
|
|
Net Interest Margin (excluding accretion)
|
|
|
3.37
|
%
|
|
|
3.40
|
%
|
|
|
3.44
|
%
|
|
|
3.44
|
%
|
|
|
3.42
|
%
|
|
|
3.41
|
%
|
|
|
3.54
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Equity Ratio (period end)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets
|
|
|
9.34
|
%
|
|
|
9.39
|
%
|
|
|
9.38
|
%
|
|
|
9.03
|
%
|
|
|
9.34
|
%
|
|
|
|
|
Effect of goodwill and other intangibles, net
|
|
|
1.81
|
%
|
|
|
1.86
|
%
|
|
|
1.89
|
%
|
|
|
1.89
|
%
|
|
|
1.95
|
%
|
|
|
|
|
Equity to assets ("GAAP")
|
|
|
11.15
|
%
|
|
|
11.25
|
%
|
|
|
11.27
|
%
|
|
|
10.92
|
%
|
|
|
11.29
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense, excluding FIN 48 and Sale of insurance
operations
|
|
$
|
6,338
|
|
|
$
|
6,577
|
|
|
$
|
6,303
|
|
|
$
|
5,866
|
|
|
$
|
5,793
|
|
|
$
|
25,083
|
|
|
$
|
28,414
|
|
FIN 48
|
|
|
554
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
592
|
|
|
|
554
|
|
|
|
592
|
|
Sale of insurance operations
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,282
|
)
|
Income tax expense ("GAAP")
|
|
$
|
6,892
|
|
|
$
|
6,577
|
|
|
$
|
6,303
|
|
|
$
|
5,866
|
|
|
$
|
6,385
|
|
|
$
|
25,637
|
|
|
$
|
27,724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
20,994
|
|
|
|
19,809
|
|
|
|
18,844
|
|
|
|
17,568
|
|
|
|
19,308
|
|
|
|
77,211
|
|
|
|
82,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate, excluding FIN 48 and Sale of insurance
operations
|
|
|
30.2
|
%
|
|
|
33.2
|
%
|
|
|
33.4
|
%
|
|
|
33.4
|
%
|
|
|
30.0
|
%
|
|
|
32.5
|
%
|
|
|
34.4
|
%
|
Effective tax rate ("GAAP")
|
|
|
32.8
|
%
|
|
|
33.2
|
%
|
|
|
33.4
|
%
|
|
|
33.4
|
%
|
|
|
33.1
|
%
|
|
|
33.2
|
%
|
|
|
33.6
|
%
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170119005128/en/ Copyright Business Wire 2017
Source: Business Wire
(January 19, 2017 - 7:30 AM EST)
News by QuoteMedia
www.quotemedia.com
|