City Holding Company Announces First Quarter Results
CHARLESTON, W.Va., April 26 /PRNewswire-FirstCall/ -- City Holding Company, “the Company” (Nasdaq: CHCO), a $2.6 billion bank holding company headquartered in Charleston, today announced net income per diluted share for the first quarter of $0.58 compared to $0.69 per diluted share in the first quarter of 2009. Net income for the first quarter of 2010 was $9.3 million compared to $10.9 million in the first quarter of 2009. For the first quarter of 2010, the Company achieved a return on assets of 1.42%, a return on tangible equity of 14.6%, a net interest margin of 4.14%, and an efficiency ratio of 54.9%. This compares with a return on assets of 1.70%, a return on equity of 19.1%, a net interest margin of 4.46%, and an efficiency ratio of 47.7% for the comparable period of 2009.
City’s CEO Charles Hageboeck stated that, “As the U.S. economy continues to recover, City’s results continue to be quite favorable compared to our peers in the banking industry. Our asset quality continues to improve with net charge-offs, non-performing assets, and past due loans all improving as compared to December 31, 2009. This continued improvement is due to the relative stability of the markets we do business within and our disciplined lending model. While West Virginia’s unemployment rate of 9.5% approximates the national unemployment rate of 9.7% for February 2010, West Virginia‘s foreclosure rate for January 2010 of 0.08% is well below the national average of 0.24%. City’s most significant asset quality problems continue to be non-owner occupied residential construction at The Greenbrier Resort in White Sulphur Springs, West Virginia and real estate in the Eastern Panhandle of West Virginia, a distant part of the Washington DC metropolitan area. These properties account for approximately 66% of City’s nonperforming assets at March 31, 2010. During the second quarter of 2010, a Greenbrier property held in the Company’s loan portfolio sold at a value that approximated the Company’s recorded value in such property.
“City continues to maintain healthy capital, strong liquidity, and a stable core-deposit franchise, with an asset sensitive balance sheet that is poised to benefit from future interest rate increases. We remain well prepared to build our company’s future while our competitors struggle to work through liquidity and asset quality issues. Our quarterly dividend of 34 cents per share has been maintained while many of our peers have eliminated or significantly reduced dividends to shareholders. City remains one of the most profitable and best capitalized publicly traded banks in the U.S. and is well positioned to assist our shareholders and customers through the current difficult economic environment,” Hageboeck concluded.
Net Interest Income
The Company’s tax equivalent net interest income decreased $1.2 million, or 4.9%, from $25.0 million during the first quarter of 2009 to $23.8 million during the first quarter of 2010. This decline is due to a decrease in interest income associated with the gain from the sale of interest rate floors. During the third and fourth quarters of 2008, the Company sold $450 million of interest rate floors. The $16.7 million gain from sales of these interest rate floors is being recognized over the remaining lives of the various hedged loans – primarily prime-based commercial and home equity loans. During the first quarter of 2010, the Company recognized $1.5 million of interest income compared to $2.9 million of interest income recognized in the first quarter of 2009 from the interest rate floors. The Company’s reported net interest margin decreased from 4.46% for the quarter ended March 31, 2009 to 4.14% for the quarter ended March 31, 2010.
Credit Quality
The Company’s ratio of non-performing assets to total loans and other real estate owned decreased from 1.43% at December 31, 2009 to 1.39% at March 31, 2010. The Company’s ratio of non-performing assets to total loans and other real estate owned compares very favorably to peers. The Company’s non-performing asset ratio of 1.39% at March 31, 2010 is only 25% of the 5.57% non-performing asset ratio reported by the Company’s peer group (bank holding companies with total assets between $1 and $5 billion) as of the most recently reported quarter ended December 31, 2009.
Past due loans decreased modestly from $8.5 million at December 31, 2009 to $7.2 million or 0.40% of total loans outstanding at March 31, 2010. Past due commercial, financial, and agriculture loans were $0.5 million or 0.07% of loans outstanding at March 31, 2010; past due residential real estate loans were $3.8 million or 0.64% of loans outstanding at March 31, 2010; and past due home equity loans were $1.8 million or 0.46% of loans outstanding at March 31, 2010.
The Company had net charge-offs of $0.8 million for the first quarter of 2010. Net charge-offs on commercial and residential loans were $0.4 and $0.4 million, respectively, for the first quarter. In addition, net charge-offs for depository accounts were $0.1 million for the first quarter of 2010. While charge-offs on depository accounts are appropriately taken against the ALLL, the revenue associated with depository accounts is reflected in service charges.
At March 31, 2010, the Allowance for Loan Losses (“ALLL”) was $19.0 million or 1.05% of total loans outstanding and 133% of non-performing loans compared to $22.0 million or 1.23% of loans outstanding and 107% of non-performing loans at March 31, 2009, and $18.7 million or 1.04% of loans outstanding and 133% of non-performing loans at December 31, 2009.
As a result of the Company’s quarterly analysis of the adequacy of the ALLL, the Company recorded a provision for loan losses of $1.1 million in the first quarter of 2010 compared to $1.7 million for the comparable period in 2009. The provision for loan losses recorded during the first quarter of 2010 reflects the decrease in commercial charge-offs during the quarter. Changes in the amount of the provision and related allowance 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.
Impairment Losses
During the first quarter of 2010, the Company recorded $1.7 million of credit-related net investment impairment losses. The charges deemed to be other than temporary were related to pooled bank trust preferreds ($0.8 million credit-related net impairment losses) with a remaining book value of $6.8 million at March 31, 2010, single issuer bank trust preferreds ($0.6 million credit-related net impairment losses) with a remaining book value of $87.2 million at March 31, 2010, and community bank and bank holding company equity positions ($0.3 million credit-related net impairment losses) with remaining book value of $5.4 million at March 31, 2010. The credit-related net impairment charges related to the pooled bank trust preferred securities and single issuer bank trust preferred securities (Cascade Capital Trust I issued by Cascade Financial Corporation of Everett, Washington) were based on the Company’s quarterly reviews of its investment securities for indications of losses considered to be other than temporary. Based on management’s assessment of the securities the Company owns, the seniority position of the securities within the pools, the level of defaults and deferred payments within the pools, and a review of the financial strength of the banks within the respective pools, management concluded that credit-related net impairment charges of $0.8 million and $0.6 million on the pooled bank trust preferred securities and single issuer bank trust preferred securities, respectively, were appropriate for the quarter ended March 31, 2010. The credit-related net impairment charges of $0.3 million related to the Company’s equity position in First United Corporation of Oakland, Maryland. The Company impaired this equity position due to the length of time and extent to which the market value of this security has been below the Company’s cost basis in this equity security.
Non-interest Income
Exclusive of net other-than-temporary investment impairment losses, non-interest income decreased $0.7 million to $13.8 million in the first quarter of 2010 as compared to $14.5 million in the first quarter of 2009. Insurance commissions revenues decreased $0.5 million, or 27.7%, from $1.9 million during the first quarter of 2009 to $1.4 million during the first quarter of 2010 due to decreased contingency payments. Additionally, service charges from depository accounts decreased $0.2 million, or 2.0%, to $10.2 million in the first quarter of 2010.
Non-interest Expenses
Non-interest expenses increased $1.7 million from $18.8 million in the first quarter of 2009 to $20.5 million in the first quarter of 2010. Insurance and regulatory expense increased $0.8 million, or 215.7%, from the quarter ended March 31, 2009 primarily as a result of the Company fully utilizing its FDIC credits and increases in the assessment rates during 2009. In addition, repossessed asset losses increased $0.8 million primarily due to the write down of a foreclosed property located in the northern panhandle of West Virginia. This write-down was due to the results of an updated appraisal obtained on this property. The Company continually reevaluates the recorded value of properties that it has repossessed by obtaining updated appraisals on at least an annual basis. As a result of this write down, this foreclosed property is now valued at approximately one-half of its original cost.
Balance Sheet Trends
As compared to December 31, 2009, loans have increased $9.4 million (0.5%) at March 31, 2010 due to increases in commercial loans of $9.2 million (1.2%) and residential real estate loans of $1.8 million (0.3%). These decreases were partially offset by decreases in installment loans of $0.6 million (1.5%) and previously securitized loans of $0.6 million (33.0%).
Total average depository balances increased $24.9 million, or 1.2%, from the quarter ended December 31, 2009 to the quarter ended March 31, 2010. This growth was primarily in interest-bearing deposits and noninterest-bearing deposits, which have increased $21.6 million and $10.1 million, respectively. These increases were partially offset by a decrease of $10.0 in time deposits.
Income Tax Expense
The Company’s effective income tax rate for the first quarter of 2010 was 33.4% compared to 32.5% for the year ended December 31, 2009, and 34.6% for the quarter ended March 31, 2009. The effective rate is based upon the Company’s expected tax rate for the year ending December 31, 2010.
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 81.8% and the loan to asset ratio was 67.8% at March 31, 2010. The Company maintained investment securities totaling 20.9% of assets as of this date. Further, the Company’s deposit mix is weighted heavily toward checking and saving accounts that fund 45.4% of assets at March 31, 2010. Time deposits fund 37.5% of assets at March 31, 2010, but very few of these deposits are in accounts that have balances of more than $150,000, reflecting the core retail orientation of the Company.
The Company is also strongly capitalized. The Company’s tangible equity ratio remained at 9.8% at both March 31, 2010 and December 31, 2009. At March 31, 2010, City National Bank’s Leverage Ratio is 8.82%, its Tier I Capital ratio is 11.80%, and its Total Risk-Based Capital ratio is 12.80%. These regulatory capital ratios are significantly above levels required to be considered “well capitalized,” which is the highest possible regulatory designation. Further, the Company has not achieved strong bank capital through the excessive issuance of trust preferred debt by the bank holding company or by participation in the Troubled Asset Relief Program (“TARP”).
On March 31, 2010, the Board approved a quarterly cash dividend to 34 cents per share payable April 30, 2010, to shareholders of record as of April 15, 2010. During the quarter ended March 31, 2010, the Company repurchased 84,015 common shares at a weighted average price of $31.01 as part of a one million share repurchase plan authorized by the Board of Directors in October 2009.
City Holding Company is the parent company of City National Bank of West Virginia. City National operates 67 branches across West Virginia, Eastern Kentucky and Southern 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 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 may experience increases in the default rates on previously securitized loans that would result in impairment losses or lower the yield on such loans; (4) the Company may not continue to benefit from strong recovery efforts on previously securitized loans resulting in improved yields on these assets; (5) the Company could have adverse legal actions of a material nature; (6) the Company may face competitive loss of customers; (7) the Company may be unable to manage its expense levels; (8) the Company may have difficulty retaining key employees; (9) 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; (10) changes in general economic conditions and increased competition could adversely affect the Company’s operating results; (11) 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; (12) the Company may experience difficulties growing loan and deposit balances; (13) the current economic environment poses significant challenges for us and could adversely affect our financial condition and results of operations; (14) continued deterioration in the financial condition of the U.S. banking system may impact the valuations of investments the Company has made in the securities of other financial institutions resulting in either actual losses or other than temporary impairments on such investments; and (15) the United States government’s plan to purchase large amounts of illiquid, mortgage-backed and other securities from financial institutions may not be effective and/or it may not be available to us. 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 March 31, |
Percent |
|||
2010 |
2009 |
Change |
||
Earnings ($000s, except per share data): |
||||
Net Interest Income (FTE) |
$ 23,746 |
$ 24,974 |
(4.92)% |
|
Net Income available to common shareholders |
9,313 |
10,924 |
(14.75)% |
|
Earnings per Basic Share |
0.59 |
0.69 |
(14.49)% |
|
Earnings per Diluted Share |
0.58 |
0.69 |
(15.94)% |
|
Key Ratios (percent): |
||||
Return on Average Assets |
1.42% |
1.70% |
(16.68)% |
|
Return on Average Tangible Equity |
14.57% |
19.10% |
(23.69)% |
|
Net Interest Margin |
4.14% |
4.46% |
(7.13)% |
|
Efficiency Ratio |
54.87% |
47.67% |
13.82% |
|
Average Shareholders' Equity to Average Assets |
11.87% |
11.12% |
6.72% |
|
Consolidated Risk Based Capital Ratios (a): |
||||
Tier I |
13.67% |
12.33% |
10.87% |
|
Total |
14.65% |
13.49% |
8.60% |
|
Tangible Equity to Tangible Assets |
9.79% |
8.99% |
8.98% |
|
Common Stock Data: |
||||
Cash Dividends Declared per Share |
$ 0.34 |
$ 0.34 |
- |
|
Book Value per Share |
19.71 |
17.87 |
10.29% |
|
Tangible Book Value per Share |
16.11 |
14.27 |
12.93% |
|
Market Value per Share: |
||||
High |
34.92 |
33.41 |
4.52% |
|
Low |
30.37 |
20.88 |
45.45% |
|
End of Period |
34.29 |
26.68 |
28.52% |
|
Price/Earnings Ratio (b) |
14.53 |
9.67 |
50.31% |
|
(a) March 31, 2010 risk-based capital ratios are estimated |
||||
(b) March 31, 2010 price/earnings ratio computed based on annualized first quarter 2010 earnings |
||||
CITY HOLDING COMPANY AND SUBSIDIARIES |
|||||||
Financial Highlights |
|||||||
(Unaudited) |
|||||||
Book Value and Market Price Range per Share |
|||||||
Market Price |
|||||||
Book Value per Share |
Range per Share |
||||||
March 31 |
June 30 |
September 30 |
December 31 |
Low |
High |
||
2006 |
$ 16.17 |
$ 16.17 |
$ 16.99 |
$ 17.46 |
$ 34.53 |
$ 41.87 |
|
2007 |
17.62 |
17.40 |
17.68 |
18.14 |
31.16 |
41.54 |
|
2008 |
18.92 |
18.72 |
17.61 |
17.58 |
29.08 |
42.88 |
|
2009 |
17.69 |
18.24 |
18.95 |
19.40 |
20.88 |
34.34 |
|
2010 |
19.71 |
30.37 |
34.92 |
||||
Earnings per Basic Share |
|||||||
Quarter Ended |
|||||||
March 31 |
June 30 |
September 30 |
December 31 |
Year-to-Date |
|||
2006 |
$ 0.71 |
$ 0.78 |
$ 0.78 |
$ 0.74 |
$ 3.00 |
||
2007 |
0.76 |
0.72 |
0.76 |
0.78 |
3.02 |
||
2008 |
0.81 |
0.83 |
(0.16) |
0.26 |
1.74 |
||
2009 |
0.69 |
0.64 |
0.66 |
0.70 |
2.69 |
||
2010 |
0.59 |
0.59 |
|||||
Earnings per Diluted Share |
|||||||
Quarter Ended |
|||||||
March 31 |
June 30 |
September 30 |
December 31 |
Year-to-Date |
|||
2006 |
$ 0.71 |
$ 0.77 |
$ 0.77 |
$ 0.74 |
$ 2.99 |
||
2007 |
0.76 |
0.72 |
0.76 |
0.78 |
3.01 |
||
2008 |
0.80 |
0.83 |
(0.16) |
0.26 |
1.74 |
||
2009 |
0.69 |
0.64 |
0.66 |
0.70 |
2.68 |
||
2010 |
0.58 |
0.58 |
|||||
CITY HOLDING COMPANY AND SUBSIDIARIES |
||||
Consolidated Statements of Income |
||||
(Unaudited) ($ in 000s, except per share data) |
||||
Three Months Ended March 31, |
||||
2010 |
2009 |
|||
Interest Income |
||||
Interest and fees on loans |
$ 24,854 |
$ 28,058 |
||
Interest on investment securities: |
||||
Taxable |
5,611 |
6,062 |
||
Tax-exempt |
470 |
409 |
||
Interest on deposits in depository institutions |
- |
5 |
||
Total Interest Income |
30,935 |
34,534 |
||
Interest Expense |
||||
Interest on deposits |
7,184 |
9,373 |
||
Interest on short-term borrowings |
100 |
153 |
||
Interest on long-term debt |
160 |
254 |
||
Total Interest Expense |
7,444 |
9,780 |
||
Net Interest Income |
23,491 |
24,754 |
||
Provision for loan losses |
1,080 |
1,650 |
||
Net Interest Income After Provision for Loan Losses |
22,411 |
23,104 |
||
Non-Interest Income |
||||
Total investment securities impairment losses |
(3,203) |
(2,157) |
||
Noncredit impairment losses recognized in other comprehensive income |
1,552 |
- |
||
Net investment securities impairment losses |
(1,651) |
(2,157) |
||
Gain on sale of investment securities |
- |
82 |
||
Service charges |
10,228 |
10,435 |
||
Insurance commissions |
1,397 |
1,933 |
||
Trust and investment management fee income |
862 |
707 |
||
Bank owned life insurance |
728 |
732 |
||
Other income |
548 |
701 |
||
Total Non-Interest Income |
12,112 |
12,433 |
||
Non-Interest Expense |
||||
Salaries and employee benefits |
9,749 |
9,583 |
||
Occupancy and equipment |
2,045 |
1,909 |
||
Depreciation |
1,218 |
1,211 |
||
Professional fees |
363 |
453 |
||
Postage, delivery, and statement mailings |
609 |
718 |
||
Advertising |
913 |
863 |
||
Telecommunications |
451 |
420 |
||
Bankcard expenses |
476 |
648 |
||
Insurance and regulatory |
1,187 |
376 |
||
Office supplies |
493 |
531 |
||
Repossessed asset losses, net of expenses |
946 |
129 |
||
Other expenses |
2,101 |
1,993 |
||
Total Non-Interest Expense |
20,551 |
18,834 |
||
Income Before Income Taxes |
13,972 |
16,703 |
||
Income tax expense |
4,659 |
5,779 |
||
Net Income Available to Common Shareholders |
$ 9,313 |
$ 10,924 |
||
Basic earnings per common share |
$ 0.59 |
$ 0.69 |
||
Diluted earnings per common share |
$ 0.58 |
$ 0.69 |
||
Average Common Shares Outstanding: |
||||
Basic |
15,793 |
15,921 |
||
Diluted |
15,851 |
15,933 |
||
CITY HOLDING COMPANY AND SUBSIDIARIES |
|||
Consolidated Statements of Changes in Stockholders' Equity |
|||
(Unaudited) ($ in 000s) |
|||
Three Months Ended |
|||
March 31, 2010 |
March 31, 2009 |
||
Balance at January 1 |
$ 307,735 |
$ 284,296 |
|
Net income |
9,313 |
10,924 |
|
Other comprehensive income: |
|||
Change in unrealized gain (loss) on securities available-for-sale |
3,136 |
(2,616) |
|
Change in underfunded pension liability |
- |
- |
|
Change in unrealized (loss) on interest rate floors |
(912) |
(1,786) |
|
Cash dividends declared ($0.34/share) |
(5,373) |
(5,410) |
|
Issuance of stock award shares, net |
371 |
275 |
|
Exercise of 200 stock options |
3 |
- |
|
Exercise of 300 stock options |
- |
3 |
|
Purchase of 84,015 common shares of treasury |
(2,605) |
- |
|
Purchase of 49,363 common shares of treasury |
- |
(1,242) |
|
Balance at March 31 |
$ 311,668 |
$ 284,444 |
|
CITY HOLDING COMPANY AND SUBSIDIARIES |
||||||
Condensed Consolidated Quarterly Statements of Income |
||||||
(Unaudited) ($ in 000s, except per share data) |
||||||
Quarter Ended |
||||||
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
||
2010 |
2009 |
2009 |
2009 |
2009 |
||
Interest income |
$ 30,935 |
$ 31,887 |
$ 32,651 |
$ 32,964 |
$ 34,534 |
|
Taxable equivalent adjustment |
255 |
234 |
236 |
219 |
220 |
|
Interest income (FTE) |
31,190 |
32,121 |
32,887 |
33,183 |
34,754 |
|
Interest expense |
7,444 |
8,302 |
8,995 |
9,526 |
9,780 |
|
Net interest income |
23,746 |
23,819 |
23,892 |
23,657 |
24,974 |
|
Provision for loan losses |
1,080 |
1,575 |
1,675 |
2,150 |
1,650 |
|
Net interest income after provision |
||||||
for loan losses |
22,666 |
22,244 |
22,217 |
21,507 |
23,324 |
|
Noninterest income |
12,112 |
12,923 |
12,340 |
14,287 |
12,433 |
|
Noninterest expense |
20,551 |
19,216 |
18,802 |
20,336 |
18,834 |
|
Income before income taxes |
14,227 |
15,951 |
15,755 |
15,458 |
16,923 |
|
Income tax expense |
4,659 |
4,639 |
5,022 |
5,093 |
5,779 |
|
Taxable equivalent adjustment |
255 |
234 |
236 |
219 |
220 |
|
Net income available to common shareholders |
$ 9,313 |
$ 11,078 |
$ 10,497 |
$ 10,146 |
$ 10,924 |
|
Basic earnings per common share |
$ 0.59 |
$ 0.70 |
$ 0.66 |
$ 0.64 |
$ 0.69 |
|
Diluted earnings per common share |
0.58 |
0.70 |
0.66 |
0.64 |
0.69 |
|
Cash dividends declared per share |
0.34 |
0.34 |
0.34 |
0.34 |
0.34 |
|
Average Common Share (000s): |
||||||
Outstanding |
15,793 |
15,838 |
15,893 |
15,908 |
15,921 |
|
Diluted |
15,851 |
15,897 |
15,952 |
15,949 |
15,933 |
|
Net Interest Margin |
4.14% |
4.07% |
4.09% |
4.12% |
4.46% |
|
CITY HOLDING COMPANY AND SUBSIDIARIES |
||||||
Non-Interest Income and Non-Interest Expense |
||||||
(Unaudited) ($ in 000s) |
||||||
Quarter Ended |
||||||
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
||
2010 |
2009 |
2009 |
2009 |
2009 |
||
Non-Interest Income: |
||||||
Service charges |
$ 10,228 |
$ 11,628 |
$ 11,689 |
$ 11,261 |
$ 10,435 |
|
Insurance commissions |
1,397 |
1,110 |
1,208 |
1,325 |
1,933 |
|
Trust and investment management fee income |
862 |
549 |
590 |
497 |
707 |
|
Bank owned life insurance |
728 |
753 |
794 |
992 |
732 |
|
Other income |
548 |
320 |
379 |
544 |
701 |
|
Subtotal |
13,763 |
14,360 |
14,660 |
14,619 |
14,508 |
|
Investment securities (losses) |
- |
(1,437) |
(2,320) |
(332) |
(2,075) |
|
Total Non-Interest Income |
$ 13,763 |
$ 12,923 |
$ 12,340 |
$ 14,287 |
$ 12,433 |
|
Non-Interest Expense: |
||||||
Salaries and employee benefits |
$ 9,749 |
$ 8,523 |
$ 9,623 |
$ 9,797 |
$ 9,583 |
|
Occupancy and equipment |
2,045 |
1,947 |
1,953 |
1,880 |
1,909 |
|
Depreciation |
1,218 |
1,180 |
1,171 |
1,184 |
1,211 |
|
Professional fees |
363 |
439 |
216 |
397 |
453 |
|
Postage, delivery, and statement mailings |
609 |
573 |
611 |
698 |
718 |
|
Advertising |
913 |
830 |
883 |
927 |
863 |
|
Telecommunications |
451 |
455 |
476 |
514 |
420 |
|
Bankcard expenses |
476 |
570 |
695 |
686 |
648 |
|
Insurance and regulatory |
1,187 |
1,014 |
411 |
1,578 |
376 |
|
Office supplies |
493 |
484 |
520 |
470 |
531 |
|
Repossessed asset losses, net of expenses |
946 |
321 |
136 |
86 |
129 |
|
Other expenses |
2,101 |
2,880 |
2,107 |
2,119 |
1,993 |
|
Total Non-Interest Expense |
$ 20,551 |
$ 19,216 |
$ 18,802 |
$ 20,336 |
$ 18,834 |
|
Employees (Full Time Equivalent) |
815 |
809 |
814 |
831 |
830 |
|
Branch Locations |
67 |
67 |
68 |
69 |
69 |
|
CITY HOLDING COMPANY AND SUBSIDIARIES |
|||
Consolidated Balance Sheets |
|||
($ in 000s) |
|||
March 31 |
December 31 |
||
2010 |
2009 |
||
(Unaudited) |
|||
Assets |
|||
Cash and due from banks |
$ 43,309 |
$ 59,116 |
|
Interest-bearing deposits in depository institutions |
5,055 |
3,519 |
|
Cash and cash equivalents |
48,364 |
62,635 |
|
Investment securities available-for-sale, at fair value |
528,325 |
485,767 |
|
Investment securities held-to-maturity, at amortized cost |
27,244 |
28,164 |
|
Total investment securities |
555,569 |
513,931 |
|
Gross loans |
1,801,840 |
1,792,434 |
|
Allowance for loan losses |
(18,982) |
(18,687) |
|
Net loans |
1,782,858 |
1,773,747 |
|
Bank owned life insurance |
74,116 |
73,388 |
|
Premises and equipment |
64,188 |
64,193 |
|
Accrued interest receivable |
8,623 |
7,969 |
|
Net deferred tax assets |
28,331 |
29,480 |
|
Intangible assets |
56,900 |
57,010 |
|
Other assets |
39,219 |
40,121 |
|
Total Assets |
$ 2,658,168 |
$ 2,622,474 |
|
Liabilities |
|||
Deposits: |
|||
Noninterest-bearing |
$ 337,180 |
$ 328,440 |
|
Interest-bearing: |
|||
Demand deposits |
477,722 |
457,293 |
|
Savings deposits |
391,383 |
379,893 |
|
Time deposits |
996,214 |
998,096 |
|
Total deposits |
2,202,499 |
2,163,722 |
|
Short-term borrowings |
107,783 |
118,329 |
|
Long-term debt |
16,937 |
16,959 |
|
Other liabilities |
19,281 |
15,729 |
|
Total Liabilities |
2,346,500 |
2,314,739 |
|
Stockholders' Equity |
|||
Preferred stock, par value $25 per share: 500,000 shares authorized; none issued |
- |
- |
|
Common stock, par value $2.50 per share: 50,000,000 shares authorized; |
|||
18,499,282 shares issued at March 31, 2010 and December 31, 2009 |
|||
less 2,686,427 and 2,616,161 shares in treasury, respectively |
46,249 |
46,249 |
|
Capital surplus |
101,699 |
101,750 |
|
Retained earnings |
257,107 |
253,167 |
|
Cost of common stock in treasury |
(93,057) |
(90,877) |
|
Accumulated other comprehensive (loss): |
|||
Unrealized gain/(loss) on securities available-for-sale |
1,256 |
(1,880) |
|
Unrealized gain on derivative instruments |
2,151 |
3,063 |
|
Underfunded pension liability |
(3,737) |
(3,737) |
|
Total Accumulated Other Comprehensive (Loss) |
(330) |
(2,554) |
|
Total Stockholders' Equity |
311,668 |
307,735 |
|
Total Liabilities and Stockholders' Equity |
$ 2,658,168 |
$ 2,622,474 |
|
CITY HOLDING COMPANY AND SUBSIDIARIES |
||||||||
Investment Portfolio |
||||||||
(Unaudited) ($ in 000s) |
||||||||
Other Than |
||||||||
Temporary Credit |
||||||||
Impairment |
||||||||
Charges through |
Unrealized Gains |
|||||||
Original Cost |
March 31, 2010 |
(Losses) |
Carrying Value |
|||||
Mortgage Backed Securities |
280,790 |
- |
8,902 |
289,692 |
||||
Municipal Bonds |
54,460 |
- |
710 |
55,170 |
||||
Pooled Bank Trust Preferreds |
29,615 |
(18,223) |
(4,576) |
6,817 |
||||
Single Issuer Bank Trust Preferreds, |
||||||||
Subdebt of Financial Institutions, and |
||||||||
Bank Holding Company Preferred Stocks |
106,986 |
(1,638) |
36 |
105,384 |
||||
Money Markets and Mutual Funds |
80,173 |
- |
(10) |
80,164 |
||||
Federal Reserve Bank and FHLB stock |
12,942 |
- |
- |
12,942 |
||||
Community Bank Equity Positions |
10,089 |
(1,749) |
(2,939) |
5,401 |
||||
Total Investments |
$ 575,055 |
$ (21,610) |
$ 2,124 |
$ 555,569 |
||||
CITY HOLDING COMPANY AND SUBSIDIARIES |
||||||
Loan Portfolio |
||||||
(Unaudited) ($ in 000s) |
||||||
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
||
2010 |
2009 |
2009 |
2009 |
2009 |
||
Residential real estate |
$ 597,429 |
$ 595,678 |
$ 590,653 |
$ 596,925 |
$ 599,692 |
|
Home equity |
398,443 |
398,752 |
396,648 |
392,751 |
389,453 |
|
Commercial, financial, and agriculture |
761,223 |
752,052 |
762,194 |
747,886 |
753,234 |
|
Installment loans to individuals |
43,597 |
44,239 |
45,309 |
45,550 |
45,175 |
|
Previously securitized loans |
1,148 |
1,713 |
2,580 |
3,223 |
3,754 |
|
Gross Loans |
$ 1,801,840 |
$ 1,792,434 |
$ 1,797,384 |
$ 1,786,335 |
$ 1,791,308 |
|
CITY HOLDING COMPANY AND SUBSIDIARIES |
||||
Previously Securitized Loans |
||||
(Unaudited) ($ in millions) |
||||
Annualized |
Effective |
|||
December 31 |
Interest |
Annualized |
||
Year Ended: |
Balance (a) |
Income (a) |
Yield (a) |
|
2009 |
$ 1.7 |
$ 5.6 |
108% |
|
2010 |
0.9 |
2.9 |
219% |
|
2011 |
0.7 |
1.7 |
219% |
|
2012 |
0.5 |
1.3 |
219% |
|
2013 |
0.3 |
0.8 |
219% |
|
a - 2008 and 2009 amounts are based on actual results. 2010 amounts are based on actual results through March 31, 2010 and estimated amounts for the remainder of the year. 2011, 2012, and 2013 amounts are based on estimated amounts. Note: The amounts reflected in the table above require management to make significant assumptions based on estimated future default, prepayment, and discount rates. Actual performance could be significantly different from that assumed, which could result in the actual results being materially different from the amounts estimated above. |
||||
CITY HOLDING COMPANY AND SUBSIDIARIES |
|||||||
Consolidated Average Balance Sheets, Yields, and Rates |
|||||||
(Unaudited) ($ in 000s) |
|||||||
Three Months Ended March 31, |
|||||||
2010 |
2009 |
||||||
Average |
Yield/ |
Average |
Yield/ |
||||
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
||
Assets: |
|||||||
Loan portfolio: |
|||||||
Residential real estate |
$ 592,935 |
$ 7,895 |
5.40% |
$ 603,767 |
$ 8,781 |
5.90% |
|
Home equity |
397,690 |
5,358 |
5.46% |
386,653 |
6,143 |
6.44% |
|
Commercial, financial, and agriculture |
753,548 |
9,910 |
5.33% |
756,201 |
10,875 |
5.83% |
|
Installment loans to individuals |
47,520 |
913 |
7.79% |
47,566 |
1,118 |
9.53% |
|
Previously securitized loans |
1,441 |
779 |
219.24% |
3,867 |
1,141 |
119.66% |
|
Total loans |
1,793,134 |
24,855 |
5.62% |
1,798,054 |
28,058 |
6.33% |
|
Securities: |
|||||||
Taxable |
477,632 |
5,611 |
4.76% |
430,734 |
6,062 |
5.71% |
|
Tax-exempt |
49,635 |
724 |
5.92% |
37,558 |
629 |
6.79% |
|
Total securities |
527,267 |
6,335 |
4.87% |
468,292 |
6,691 |
5.79% |
|
Deposits in depository institutions |
4,773 |
- |
0.00% |
4,826 |
5 |
0.42% |
|
Total interest-earning assets |
2,325,174 |
31,190 |
5.44% |
2,271,172 |
34,754 |
6.21% |
|
Cash and due from banks |
54,639 |
52,410 |
|||||
Bank premises and equipment |
64,116 |
60,813 |
|||||
Other assets |
207,817 |
211,000 |
|||||
Less: Allowance for loan losses |
(19,108) |
(22,564) |
|||||
Total assets |
$ 2,632,638 |
$ 2,572,831 |
|||||
Liabilities: |
|||||||
Interest-bearing demand deposits |
456,969 |
350 |
0.31% |
416,695 |
463 |
0.45% |
|
Savings deposits |
381,900 |
282 |
0.30% |
360,740 |
507 |
0.57% |
|
Time deposits |
999,661 |
6,552 |
2.66% |
982,947 |
8,403 |
3.47% |
|
Short-term borrowings |
110,163 |
100 |
0.37% |
147,510 |
153 |
0.42% |
|
Long-term debt |
16,944 |
160 |
3.83% |
19,032 |
254 |
5.41% |
|
Total interest-bearing liabilities |
1,965,637 |
7,444 |
1.54% |
1,926,924 |
9,780 |
2.06% |
|
Noninterest-bearing demand deposits |
341,132 |
324,333 |
|||||
Other liabilities |
13,343 |
35,392 |
|||||
Stockholders' equity |
312,526 |
286,182 |
|||||
Total liabilities and |
|||||||
stockholders' equity |
$ 2,632,638 |
$ 2,572,831 |
|||||
Net interest income |
$ 23,746 |
$ 24,974 |
|||||
Net yield on earning assets |
4.14% |
4.46% |
|||||
CITY HOLDING COMPANY AND SUBSIDIARIES |
||||||
Analysis of Risk-Based Capital |
||||||
(Unaudited) ($ in 000s) |
||||||
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
||
2010 (a) |
2009 |
2009 |
2009 |
2009 |
||
Tier I Capital: |
||||||
Stockholders' equity |
$ 311,668 |
$ 307,735 |
$ 303,973 |
$ 294,584 |
$ 284,444 |
|
Goodwill and other intangibles |
(56,705) |
(56,810) |
(56,928) |
(57,046) |
(57,165) |
|
Accumulated other comprehensive loss (income) |
330 |
2,554 |
(330) |
5,970 |
10,844 |
|
Qualifying trust preferred stock |
16,000 |
16,000 |
16,000 |
16,000 |
16,000 |
|
Unrealized Loss on AFS securities |
(2,950) |
(3,531) |
(2,355) |
(4,146) |
(4,111) |
|
Excess deferred tax assets |
(3,827) |
(3,412) |
(10,105) |
(14,804) |
(15,796) |
|
Total tier I capital |
$ 264,516 |
$ 262,536 |
$ 250,255 |
$ 240,558 |
$ 234,215 |
|
Total Risk-Based Capital: |
||||||
Tier I capital |
$ 264,516 |
$ 262,536 |
$ 250,255 |
$ 240,558 |
$ 234,215 |
|
Qualifying allowance for loan losses |
18,982 |
18,687 |
19,655 |
20,975 |
21,980 |
|
Total risk-based capital |
$ 283,498 |
$ 281,223 |
$ 269,910 |
$ 261,533 |
$ 256,195 |
|
Net risk-weighted assets |
$ 1,935,071 |
$ 1,926,824 |
$ 1,919,093 |
$ 1,910,831 |
$ 1,899,282 |
|
Ratios: |
||||||
Average stockholders' equity to average assets |
11.87% |
11.70% |
11.33% |
11.00% |
11.12% |
|
Tangible capital ratio |
9.79% |
9.77% |
9.62% |
9.11% |
8.87% |
|
Risk-based capital ratios: |
||||||
Tier I capital |
13.67% |
13.63% |
13.04% |
12.59% |
12.33% |
|
Total risk-based capital |
14.65% |
14.60% |
14.06% |
13.69% |
13.49% |
|
Leverage capital |
10.28% |
10.23% |
9.79% |
9.47% |
9.37% |
|
(a) March 31, 2010 risk-based capital ratios are estimated |
||||||
CITY HOLDING COMPANY AND SUBSIDIARIES |
||||||
Intangibles |
||||||
(Unaudited) ($ in 000s) |
||||||
As of and for the Quarter Ended |
||||||
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
||
2010 |
2009 |
2009 |
2009 |
2009 |
||
Intangibles, net |
$ 56,900 |
$ 57,010 |
$ 57,127 |
$ 57,244 |
$ 57,362 |
|
Intangibles amortization expense |
110 |
117 |
117 |
118 |
117 |
|
CITY HOLDING COMPANY AND SUBSIDIARIES |
||||||
Summary of Loan Loss Experience |
||||||
(Unaudited) ($ in 000s) |
||||||
Quarter Ended |
||||||
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
||
2010 |
2009 |
2009 |
2009 |
2009 |
||
Balance at beginning of period |
$ 18,687 |
$ 19,655 |
$ 20,975 |
$ 21,980 |
$ 22,254 |
|
Charge-offs: |
||||||
Commercial, financial, and agricultural |
361 |
1,821 |
2,117 |
2,332 |
1,479 |
|
Real estate-mortgage |
423 |
448 |
567 |
507 |
394 |
|
Installment loans to individuals |
26 |
87 |
36 |
73 |
69 |
|
Overdraft deposit accounts |
550 |
737 |
795 |
690 |
664 |
|
Total charge-offs |
1,360 |
3,093 |
3,515 |
3,602 |
2,606 |
|
Recoveries: |
||||||
Commercial, financial, and agricultural |
9 |
88 |
27 |
91 |
29 |
|
Real estate-mortgage |
23 |
31 |
19 |
(9) |
81 |
|
Installment loans to individuals |
50 |
37 |
95 |
35 |
55 |
|
Overdraft deposit accounts |
493 |
394 |
379 |
330 |
517 |
|
Total recoveries |
575 |
550 |
520 |
447 |
682 |
|
Net charge-offs |
785 |
2,543 |
2,995 |
3,155 |
1,924 |
|
Provision for loan losses |
1,080 |
1,575 |
1,675 |
2,150 |
1,650 |
|
Balance at end of period |
$ 18,982 |
$ 18,687 |
$ 19,655 |
$ 20,975 |
$ 21,980 |
|
Loans outstanding |
$ 1,801,840 |
$ 1,792,434 |
$ 1,797,384 |
$ 1,786,335 |
$ 1,791,308 |
|
Average loans outstanding |
1,793,134 |
1,792,759 |
1,803,611 |
1,794,022 |
1,798,054 |
|
Allowance as a percent of loans outstanding |
1.05% |
1.04% |
1.09% |
1.17% |
1.23% |
|
Allowance as a percent of non-performing loans |
132.62% |
133.06% |
118.88% |
96.80% |
107.44% |
|
Net charge-offs (annualized) as a percent of average loans outstanding |
0.18% |
0.57% |
0.66% |
0.70% |
0.43% |
|
Net charge-offs, excluding overdraft deposit accounts, (annualized) as a percent of average loans outstanding |
0.16% |
0.49% |
0.57% |
0.62% |
0.40% |
|
CITY HOLDING COMPANY AND SUBSIDIARIES |
||||||
Summary of Non-Performing Assets |
||||||
(Unaudited) ($ in 000s) |
||||||
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
||
2010 |
2009 |
2009 |
2009 |
2009 |
||
Nonaccrual loans |
$ 14,008 |
$ 13,583 |
$ 16,423 |
$ 20,956 |
$ 20,007 |
|
Accruing loans past due 90 days or more |
305 |
382 |
98 |
680 |
386 |
|
Previously securitized loans past due 90 days or more |
- |
79 |
12 |
32 |
64 |
|
Total non-performing loans |
14,313 |
14,044 |
16,533 |
21,668 |
20,457 |
|
Other real estate owned, excluding property associated |
||||||
with previously securitized loans |
10,800 |
11,729 |
12,323 |
9,840 |
6,686 |
|
Other real estate owned associated with previously |
||||||
securitized loans |
- |
- |
- |
189 |
374 |
|
Other real estate owned |
10,800 |
11,729 |
12,323 |
10,029 |
7,060 |
|
Total non-performing assets |
$ 25,113 |
$ 25,773 |
$ 28,856 |
$ 31,697 |
$ 27,517 |
|
Non-performing assets as a percent of loans and |
||||||
other real estate owned |
1.39% |
1.43% |
1.59% |
1.76% |
1.53% |
|
CITY HOLDING COMPANY AND SUBSIDIARIES |
||||||
Summary of Total Past Due Loans |
||||||
(Unaudited) ($ in 000s) |
||||||
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
||
2010 |
2009 |
2009 |
2009 |
2009 |
||
Residential real estate |
$ 3,850 |
$ 3,830 |
$ 3,167 |
$ 5,029 |
$ 5,882 |
|
Home equity |
1,818 |
2,396 |
1,718 |
2,019 |
1,454 |
|
Commercial, financial, and agriculture |
498 |
601 |
545 |
1,754 |
2,044 |
|
Installment loans to individuals |
133 |
172 |
185 |
118 |
192 |
|
Previously securitized loans |
539 |
1,023 |
1,054 |
878 |
818 |
|
Overdraft deposit accounts |
326 |
461 |
510 |
526 |
410 |
|
Total past due loans |
$ 7,164 |
$ 8,483 |
$ 7,179 |
$ 10,324 |
$ 10,800 |
|
SOURCE City Holding Company
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article