CHCO City Holding Company

City Holding Company, “the Company” (NASDAQ:CHCO), a $3.5 billion bank holding company headquartered in Charleston, today announced record net income of $53.0 million, or $3.38 per diluted share, for the year ended December 31, 2014. City’s net income increased $4.8 million from 2013 due primarily to decreases in the provision for loan losses, other expenses, and income tax expense. For 2014, the Company achieved a return on assets of 1.56%, a return on tangible equity of 16.5%, a net interest margin of 3.98%, and an efficiency ratio of 53.7%.

For the fourth quarter of 2014 the Company reported net income of $14.5 million, or $0.95 per diluted share. The Company achieved a return on assets of 1.69%, a return on tangible equity of 18.3%, a net interest margin of 3.89%, and an efficiency ratio of 52.1% in the fourth quarter of 2014.

City’s CEO Charles Hageboeck stated, “I am pleased to report that 2014 was a record year for City with reported earnings of $3.38 per diluted share. Despite lower accretion income from two previous acquisitions in Virginia, City was again able to produce impressive financial results in 2014. Leading the way to our record earnings in 2014 was a decrease in our provision for loan losses. During 2014, our credit and lending teams continued their progress in resolving nonperforming loans, which declined $7.1 million, or 31%, from $22.8 million at December 31, 2013 to $15.7 million at December 31, 2014. In addition, our past due loans declined 45% to 0.40% of loans outstanding at December 31, 2014. This improvement in asset quality was consistent with recent trends, which reduced the required allowance for loan losses and enabled our provision in 2014 to decline $2.8 million from 2013.”

“Our net interest income declined $7.6 million from 2013 due to lower accretion income ($7.8 million) related to our acquisitions of Virginia Savings Bank and Community Financial Corporation (“Community Bank”). This decline was anticipated given our success in working out a significant number of larger problem loans during 2013. Excluding the impact of accretion income, our net interest margin decreased from 3.83% for the year ended December 31, 2013 to 3.75% for the year ended December 31, 2014. The compression in our net interest margin is due to the prolonged historically low interest rate environment the banking industry has experienced since 2008. While the interest rate environment remains a headwind for City, we are excited to report residential real estate loan growth of $90 million (7.5%) in 2014 and are encouraged to see our outstanding commercial loan balances rebound upward in the second half of 2014.”

“Our noninterest income grew modestly in 2014 on the strength of increased bankcard revenues and trust and investment management fee income. Noninterest expenses, excluding merger related charges in 2013, decreased $2.3 million from 2013 due largely to lower non-income based taxes. This decline, along with a decrease in the Company’s effective income tax rate, was caused by the recognition of a previously unrecognized tax position resulting from the expiration of the statute of limitations for previous years. The combined favorable impact of these discrete items for 2014 was $0.18 per diluted share (net of taxes).”

“During 2014 we increased our quarterly dividend by 8% to 40 cents per share and we repurchased 651,000 common shares. Our tangible capital of 9.4% at December 31, 2014 allows City to be poised for opportunities that may occur in the future.”

“Finally, we announced on January 12, 2015, that we sold our insurance operations, CityInsurance, to The Hilb Group effective January 1, 2015. While City has enjoyed significant success from CityInsurance in recent years, we made a strategic decision to focus on our core business of banking and to exit the rapidly consolidating insurance industry. We would like to thank the employees and leadership of CityInsurance for their service and contributions to City and wish them continued success operating as part of The Hilb Group. As a result of this sale, City will recognize a one-time after tax gain of $5.8 million from this transaction in the first quarter of 2015”, Hageboeck concluded.

Net Interest Income

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

During the fourth quarter of 2014, the Company’s tax equivalent net interest income decreased $0.2 million, or 0.7%, from $29.6 million during the third quarter of 2014 to $29.4 million. The Company’s reported net interest margin decreased from 3.95% for the third quarter of 2014 to 3.89% for the fourth quarter of 2014. Excluding the favorable impact of the accretion from the fair value adjustments ($1.3 million for the quarter ended December 31, 2014 and $1.8 million for the quarter ended September 30, 2014), the net interest margin would have been 3.71% for both the quarter ended December 31, 2014 and the quarter ended September 30, 2014.

Credit Quality- Asset Quality Improves in 2014

The Company’s ratio of nonperforming assets to total loans and other real estate owned improved from 1.20% at December 31, 2013 to 0.90% at December 31, 2014. Excluded from this ratio are purchased credit-impaired loans which continue to perform in accordance with the estimated expectations. Such loans would be considered nonperforming loans if the loan’s performance deteriorates below the initial expectations. Total past due loans decreased from $19.5 million, or 0.75% of total loans outstanding, at December 31, 2013 to $10.7 million, or 0.40% of total loans outstanding, at December 31, 2014. Acquired past due loans represent approximately 32% of total past due loans and have declined $13.0 million, or 79%, since March 31, 2013.

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 $0.4 million in the fourth quarter of 2014 and $4.1 million for the year ended December 31, 2014 compared to $1.9 million and $6.8 million of the comparable periods in 2013. During the fourth quarter of 2014 the Company re-estimated the expected cash flows from its purchased credit impaired loans, which resulted in a $0.2 million addition to the ALLL. The provision for loan losses recorded in 2014 reflects the modest growth in the loan portfolio, changes in the quality of the portfolio and general improvement in the Company’s historical loss rates used to compute the allowance not specifically allocated to individual credits. Additionally, the improvement in nonperforming assets also contributed to a lower provision for loan losses during 2014. 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.

Non-interest Income

During 2014, the Company realized investment gains of $1.2 million from the sale of certain equity positions related to community banks and bank holding companies. Exclusive of net investment securities gains, non-interest income increased $0.4 million to $57.6 million for the year ended December 31, 2014 as compared to $57.2 million for the year ended December 31, 2013. Bankcard revenues increased $1.5 million, or 11.4%, to $15.1 million and trust and investment management fee income increased $0.6 million, or 15.8%, to $4.6 million. These increases were partially offset by lower service charges on deposit accounts ($1.0 million or 3.7%) and other income ($0.7 million primarily due to lower demand for fixed rate mortgage products).

Exclusive of net investment securities gains, total non-interest income increased $0.2 million from $14.3 million for the fourth quarter of 2014 as compared to the fourth quarter of 2013. Increases in bankcard revenues ($0.3 million) and trust and investment management fee income ($0.2 million) were partially offset by decreases in service charges ($0.2 million) and bank owned life insurance revenues ($0.2 million).

Non-interest Expenses

During 2013, the Company recognized $5.5 million of acquisition and integration expenses associated with the completed acquisition of Community Bank. Excluding these expenses, noninterest expenses decreased $2.4 million from $97.4 million for the year ended December 31, 2013 to $95.0 million for the year ended December 31, 2014. This decrease was largely attributable to a decline in other expense of $2.4 million due to a decrease in non-income based taxes as a result of the recognition of previously unrecognized tax position resulting from the close of the statute of limitations for previous tax years that was discrete to 2014. In addition, legal and professional fees also decreased $1.0 million from 2013 primarily due to lower legal settlements. Partially offsetting these decreases were increases in advertising expense ($0.6 million) and bankcard expense ($0.5 million).

For the fourth quarter of 2014, total non-interest expenses decreased $1.9 million, from $24.9 million for the fourth quarter of 2013 to $23.0 million. This decrease was attributable to a decline in other expense ($0.9 million), legal and professional fees ($0.9 million), and salaries and employee benefits ($0.4 million). Other expenses decreased due to a decrease in non-income based taxes as a result of the recognition of previously unrecognized tax position resulting from the close of the statute of limitations for a previous tax year. As noted previously, this favorable difference was discrete to the fourth quarter of 2014. The decline in legal and professional fees from 2013 was primarily due to lower legal settlements. These decreases were partially offset by increased advertising expense of $0.3 million.

Balance Sheet Trends

Loans increased $45.9 million (1.8%) from December 31, 2013 to $2.65 billion at December 31, 2014 due to an increase in residential real estate loans of $90.1 million (7.5%) that were partially offset by decreases in commercial real estate loans($20.3 million), commercial and industrial (“C&I”) loans ($15.7 million), and consumer loans of ($6.7 million). During the first half of 2014, a variety of factors led to the decline in commercial real estate and C&I loans – a $14 million participation loan was repurchased by the lead bank (a large community bank); a $9 million loan from an acquisition that was classified as substandard was repaid in full; and a financially weak $9 million loan was refinanced by a smaller competitor that provided the borrower a cash out option. During the second half of 2014, the Company did experience an increase in commercial loan balances, particularly commercial real estate loans which increased $25.4 million from June 30, 2014 to December 31, 2014. In regards to consumer loans, the Company strategically decided to reduce the balances of an indirect portfolio of auto loans acquired with the Community Bank acquisition. These loans have higher loss percentages compared to the Company’s historical consumer portfolio and accounted for approximately $5.8 million of the decrease in 2014.

Total average depository balances increased $40.8 million, or 1.5%, from the quarter ended December 31, 2013 to the quarter ended December 31, 2014. Increases in noninterest-bearing demand deposits ($39.1 million), savings deposits ($35.4 million), and interest-bearing demand deposits ($22.5 million) were partially offset by a decrease in time deposits ($56.3 million).

Income Tax Expense

The Company’s effective income tax rate for the quarter and year ended December 31, 2014 was 29.1% and 31.4%, respectively, compared to 34.2% and 34.4% for the quarter and year ended December 31, 2013, respectively. During the quarter and the year ended December 31, 2014, the Company reduced income tax expense by $1.0 million and $1.8 million, respectively, due to the recognition of previously unrecognized tax position resulting from the close of the statute of limitations for previous tax years. Exclusive of this discrete item recognized in the quarter and year ended December 31, 2014, the Company’s tax rate from operations was 33.8% for both periods.

Capitalization and Liquidity

The Company’s loan to deposit ratio was 92.3% and the loan to asset ratio was 76.6% at December 31, 2014. The Company maintained investment securities totaling 10.3% of assets as of this date. Further, the Company’s deposit mix is weighted heavily toward checking and saving accounts that fund 53.4% of assets at December 31, 2014. Time deposits fund 29.7% of assets at December 31, 2014, 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 continues to be strongly capitalized. The Company’s tangible equity ratio was 9.4% at December 31, 2014 compared to 9.5% at December 31, 2013. The Company was able to maintain approximately the same tangible capital from December 31, 2013 despite the repurchase of approximately 651,000 shares of its common stock and increasing the quarterly cash dividend by over 8%. At December 31, 2014, City National Bank’s Leverage Ratio is 8.82%, its Tier I Capital ratio is 11.93%, and its Total Risk-Based Capital ratio is 12.75%. These regulatory capital ratios are significantly above levels required to be considered “well capitalized,” which is the highest possible regulatory capital designation.

On December 17, 2014, the Board approved a quarterly cash dividend of $0.40 cents per share payable January 30, 2015, to shareholders of record as of January 15, 2015. During the year ended December 31, 2014, the Company repurchased 651,000 common shares at a weighted average price of $42.96. On September 24, 2014, the Company announced that the Board of Directors authorized the Company to buy back up to 1,000,000 shares of its common shares (approximately 7% of outstanding shares) in open market transactions at prices that are accretive to the earnings per share of continuing shareholders. No time limit was placed on the duration of the share repurchase program. As part of this authorization, the Company rescinded repurchases of additional shares under a repurchase program plan approved in July 2011. The Company had repurchased 980,076 shares under the July 2011 Stock Repurchase Plan. At December 31, 2014, the Company could repurchase approximately 784,000 shares under the current plan.

City Holding Company is the parent company of City National Bank of West Virginia. City National operates 82 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, 2013. 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 December 31, 2014 Form 10-K. The Company will continue to evaluate the impact of any subsequent events on the preliminary December 31, 2014 results and will adjust the amounts if necessary.

CITY HOLDING COMPANY AND SUBSIDIARIES     Financial Highlights   (Unaudited)                 Three Months Ended December 31, Percent   2014     2013   Change   Earnings ($000s, except per share data): Net Interest Income (FTE) $ 29,405 $ 32,159 (8.56 )% Net Income available to common shareholders 14,530 13,246 9.69 % Earnings per Basic Share 0.95 0.84 13.42 % Earnings per Diluted Share 0.95 0.83 13.95 %                 Key Ratios (percent): Return on Average Assets 1.69 % 1.56 % 8.18 % Return on Average Tangible Equity 18.26 % 17.14 % 6.52 % Net Interest Margin 3.89 % 4.33 % (10.30 )% Efficiency Ratio 52.14 % 53.20 % (2.00 )% Average Shareholders' Equity to Average Assets 11.40 % 11.35 % 0.43 %   Consolidated Risk Based Capital Ratios (a): Tier I 13.38 % 13.00 % 2.92 % Total 14.21 % 13.84 % 2.67 %   Tangible Equity to Tangible Assets 9.37 % 9.49 % (1.16 )%                 Common Stock Data: Cash Dividends Declared per Share $ 0.40 $ 0.37 8.11 % Book Value per Share 25.85 24.61 5.04 % Tangible Book Value per Share 20.95 19.84 5.61 % Market Value per Share: High 46.95 49.21 (4.59 )% Low 41.88 41.87 0.02 % End of Period 46.53 46.33 0.43 %   Price/Earnings Ratio (b) 12.22 13.80 (11.45 )%               Twelve Months Ended December 31, Percent   2014     2013   Change   Earnings ($000s, except per share data): Net Interest Income (FTE) $ 118,221 $ 125,895 (6.10 )% Net Income available to common shareholders 52,962 48,215 9.85 % Earnings per Basic Share 3.40 3.07 10.82 % Earnings per Diluted Share 3.38 3.04 11.23 %                 Key Ratios (percent): Return on Average Assets 1.56 % 1.43 % 8.99 % Return on Average Tangible Equity 16.49 % 16.20 % 1.78 % Net Interest Margin 3.98 % 4.33 % (8.09 )% Efficiency Ratio 53.72 % 55.82 % (3.77 )% Average Shareholders' Equity to Average Assets 11.63 % 11.04 % 5.30 %                 Common Stock Data: Cash Dividends Declared per Share $ 1.60 $ 1.48 8.11 % Market Value per Share: High 46.95 49.21 (4.59 )% Low 41.20 36.07 14.22 %   Price/Earnings Ratio (b) 13.68 15.09 (9.37 )%     (a) December 31, 2014 risk-based capital ratios are estimated. (b) December 31, 2014 price/earnings ratio computed based on annualized fourth quarter 2014 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   2010 19.71 20.02 20.31 20.31 26.87 38.03 2011 20.39 20.58 20.86 21.05 26.06 37.22 2012 21.46 21.63 22.14 22.47 30.96 37.16 2013 23.36 23.52 24.03 24.61 36.07 49.21 2014 25.05 25.45 25.52 25.85 41.20 46.95                             Earnings per Basic Share   Quarter Ended March 31 June 30 September 30 December 31 Year-to-Date   2010 0.59 0.68 0.58 0.64 2.48 2011 0.62 0.65 0.77 0.65 2.68 2012 0.68 0.50 0.71 0.73 2.63 2013 0.51 0.83 0.89 0.84 3.07 2014 0.87 0.81 0.76 0.95 3.40                             Earnings per Diluted Share   Quarter Ended March 31 June 30 September 30 December 31 Year-to-Date   2010 0.58 0.68 0.58 0.64 2.47 2011 0.62 0.64 0.76 0.65 2.67 2012 0.67 0.50 0.71 0.73 2.61 2013 0.51 0.82 0.88 0.83 3.04 2014 0.86 0.80 0.76 0.95 3.38 CITY HOLDING COMPANY AND SUBSIDIARIES     Consolidated Statements of Income (Unaudited) ($ in 000s, except per share data)   Three Months Ended December 31,   2014     2013     Interest Income Interest and fees on loans $ 29,011 $ 31,901 Interest on investment securities: Taxable 2,969 2,924 Tax-exempt   302   291   Total Interest Income 32,282 35,116   Interest Expense Interest on deposits 2,792 2,868 Interest on short-term borrowings 96 94 Interest on long-term debt   153   153   Total Interest Expense   3,041   3,115   Net Interest Income 29,241 32,001 Provision for loan losses   384   1,945   Net Interest Income After Provision for Loan Losses 28,857 30,056   Non-Interest Income Gains on sale of investment securities 184 671 Service charges 6,750 6,995 Bankcard revenue 3,744 3,403 Insurance commissions 1,238 1,269 Trust and investment management fee income 1,363 1,093 Bank owned life insurance 778 976 Other income   612   541   Total Non-Interest Income 14,669 14,948   Non-Interest Expense Salaries and employee benefits 12,489 12,910 Occupancy and equipment 2,449 2,529 Depreciation 1,534 1,468 FDIC insurance expense 448 500 Advertising 726 408 Bankcard expenses 891 697 Postage, delivery, and statement mailings 549 521 Office supplies 360 408 Legal and professional fees 552 1,469 Telecommunications 522 581 Repossessed asset losses, net of expenses 27 (72 ) Merger related expenses - 72 Other expenses   2,488   3,390   Total Non-Interest Expense   23,035   24,881   Income Before Income Taxes 20,491 20,123 Income tax expense   5,961   6,877   Net Income Available to Common Shareholders $ 14,530 $ 13,246     Distributed earnings allocated to common shareholders $ 5,996 $ 5,775 Undistributed earnings allocated to common shareholders   8,378   7,352   Net earnings allocated to common shareholders $ 14,374 $ 13,127     Average common shares outstanding 15,096 15,636 Effect of dilutive securities: Employee stock options and warrants   86   163   Shares for diluted earnings per share   15,182   15,799     Basic earnings per common share $ 0.95 $ 0.84 Diluted earnings per common share $ 0.95 $ 0.83 Dividends declared per common share $ 0.40 $ 0.37   Comprehensive Income $ 14,156 $ 14,429 CITY HOLDING COMPANY AND SUBSIDIARIES     Consolidated Statements of Income (Unaudited) ($ in 000s, except per share data)   Twelve months ended December 31,   2014     2013   Interest Income Interest and fees on loans $ 116,658 $ 126,594 Interest on investment securities: Taxable 11,766 10,697 Tax-exempt 1,142 1,226 Interest on federal funds sold   -   22 Total Interest Income 129,566 138,539   Interest Expense Interest on deposits 11,012 12,358 Interest on short-term borrowings 342 325 Interest on long-term debt   606   618 Total Interest Expense   11,960   13,301 Net Interest Income 117,606 125,238 Provision for loan losses   4,054   6,848 Net Interest Income After Provision for Loan Losses 113,552 118,390   Non-Interest Income Gains on sale of investment securities 1,156 764 Service charges 26,583 27,596 Bankcard revenue 15,063 13,521 Insurance commissions 5,978 5,832 Trust and investment management fee income 4,614 3,986 Bank owned life insurance 3,070 3,391 Other income   2,258   2,916 Total Non-Interest Income 58,722 58,006   Non-Interest Expense Salaries and employee benefits 51,749 51,430 Occupancy and equipment 9,990 9,910 Depreciation 6,087 5,757 FDIC insurance expense 1,647 1,852 Advertising 3,274 2,673 Bankcard expenses 3,373 2,870 Postage, delivery, and statement mailings 2,211 2,220 Office supplies 1,595 1,728 Legal and professional fees 2,049 3,028 Telecommunications 1,876 2,212 Repossessed asset losses, net of expenses 579 646 Merger related expenses - 5,526 Other expenses   10,611   13,054 Total Non-Interest Expense   95,041   102,906 Income Before Income Taxes 77,233 73,490 Income tax expense   24,271   25,275 Net Income Available to Common Shareholders $ 52,962 $ 48,215   Distributed earnings allocated to common shareholders $ 23,984 $ 23,100 Undistributed earnings allocated to common shareholders   28,416   24,678 Net earnings allocated to common shareholders $ 52,400 $ 47,778   Average common shares outstanding 15,403 15,564 Effect of dilutive securities: Employee stock options and warrants   85   144 Shares for diluted earnings per share   15,488   15,708   Basic earnings per common share $ 3.40 $ 3.07 Diluted earnings per common share $ 3.38 $ 3.04 Dividends declared per common share $ 1.60 $ 1.48   Comprehensive Income $ 54,657 $ 44,647 CITY HOLDING COMPANY AND SUBSIDIARIES     Consolidated Statements of Changes in Stockholders' Equity (Unaudited) ($ in 000s)     Three Months Ended December 31, 2014 December 31, 2013   Balance at October 1 $ 391,673 $ 378,042   Net income 14,530 13,246 Other comprehensive income: Change in unrealized (loss) gainon securities available-for-sale 1,232 (932 ) Change in underfunded pension liability (1,606 ) 2,115 Cash dividends declared ($0.40/share) and ($0.37/share), respectively (6,040 ) (5,827 ) Issuance of stock award shares, net 326 318 Exercise of 1,000 stock options 26 - Exercise of 19,028 stock options - 661 Purchase of 193,943 common shares of treasury   (8,424 )   -   Balance at December 31 $ 391,717   $ 387,623         Twelve Months Ended December 31, 2014 December 31, 2013   Balance at January 1 $ 387,623 $ 333,274   Net income 52,962 48,215 Other comprehensive income: Change in unrealized gain (loss) on securities available-for-sale 3,301 (5,683 ) Change in underfunded pension liability (1,606 ) 2,115 Cash dividends declared ($1.60/share) and ($1.48/share), respectively (24,721 ) (23,515 ) Issuance of stock award shares, net 1,535 1,282 Acquisition of Community Financial Corporation - 28,508 Exercise of 20,000 stock options 580 - Exercise of 126,168 stock options - 3,427 Purchase of 650,799 common shares of treasury   (27,957 )   -   Balance at December 31 $ 391,717   $ 387,623   CITY HOLDING COMPANY AND SUBSIDIARIES         Condensed Consolidated Quarterly Statements of Income (Unaudited) ($ in 000s, except per share data)   Quarter Ended December 31 September 30 June 30 March 31 December 31   2014     2014     2014     2014     2013     Interest income

 

$ 32,282 $ 32,438 $ 31,828 $ 33,018 $ 35,116 Taxable equivalent adjustment

 

  164     152     151     153     158   Interest income (FTE) 32,446 32,590 31,979 33,171 35,274 Interest expense

 

  3,041     2,968     2,973     2,978     3,115   Net interest income

 

29,405 29,622 29,006 30,193 32,159 Provision for loan losses   384     1,872     435     1,363     1,945   Net interest income after provision for loan losses 29,021 27,750 28,571 28,830 30,214   Noninterest income 14,669 14,609 15,139 14,305 14,948 Noninterest expense   23,035     24,325     24,305     23,376     24,881   Income before income taxes 20,655 18,034 19,405 19,759 20,281 Income tax expense 5,961 6,010 6,497 5,803 6,877 Taxable equivalent adjustment   164     152     151     153     158   Net income $ 14,530   $ 11,872   $ 12,757   $ 13,803   $ 13,246                             Distributed earnings allocated to common shareholders $ 5,996 $ 6,073 $ 6,178 $ 6,224 $ 5,775 Undistributed earnings allocated to common shareholders   8,378     5,673     6,448     7,439     7,352   Net earnings allocated to common shareholders $ 14,374   $ 11,746   $ 12,626   $ 13,663   $ 13,127     Average common shares outstanding 15,096 15,363 15,556 15,631 15,636   Effect of dilutive securities: Employee stock options and warrants   86     82     150     165     163     Shares for diluted earnings per share   15,182     15,445     15,706     15,796     15,799     Basic earnings per common share $ 0.95 $ 0.76 $ 0.81 $ 0.87 $ 0.84 Diluted earnings per common share 0.95 0.76 0.80 0.86 0.83   Cash dividends declared per share 0.40 0.40 0.40 0.40 0.37                         Net Interest Margin 3.89 % 3.95 % 3.95 % 4.15 % 4.33 %   Interest Income from Accretion Related to Fair Value Adjustments Recorded as a Result of Acquisition $ 1,307 $ 1,836 $ 1,494 $ 2,151 $ 3,899   Net Interest Margin (excluding accretion) 3.71 % 3.71 % 3.75 % 3.85 % 3.81 % CITY HOLDING COMPANY AND SUBSIDIARIES         Non-Interest Income and Non-Interest Expense (Unaudited) ($ in 000s)     Quarter Ended December 31 September 30 June 30 March 31 December 31   2014   2014   2014   2014   2013     Non-Interest Income: Service charges $ 6,750 $ 6,934 $ 6,739 $ 6,160 $ 6,995 Bankcard revenue 3,744 3,796 3,838 3,685 3,403 Insurance commissions 1,238 1,396 1,319 2,025 1,269 Trust and investment management fee income 1,363 1,103 1,111 1,037 1,093 Bank owned life insurance 778 771 765 756 976 Other income   612   538   549   559   541   Subtotal 14,485 14,538 14,321 14,222 14,277 Gain (loss) on sale of investment securities   184   71   818   83   671   Total Non-Interest Income $ 14,669 $ 14,609 $ 15,139 $ 14,305 $ 14,948     Non-Interest Expense: Salaries and employee benefits $ 12,489 $ 13,144 $ 12,977 $ 13,139 $ 12,910 Occupancy and equipment 2,449 2,531 2,395 2,615 2,529 Depreciation 1,534 1,542 1,533 1,478 1,468 FDIC insurance expense 448 432 357 410 500 Advertising 726 799 925 824 408 Bankcard expenses 891 843 833 806 697 Postage, delivery and statement mailings 549 557 530 575 521 Office supplies 360 405 420 410 408 Legal and professional fees 552 476 612 409 1,469 Telecommunications 522 510 506 338 581 Repossessed asset (gains) losses, net of expenses 27 31 142 379 (72 ) Merger related expenses - - - - 72 Other expenses   2,488   3,055   3,075   1,993   3,390   Total Non-Interest Expense $ 23,035 $ 24,325 $ 24,305 $ 23,376 $ 24,881                               Employees (Full Time Equivalent) 889 908 912 925 923 Branch Locations 82 82 82 82 83                                   CITY HOLDING COMPANY AND SUBSIDIARIES     Consolidated Balance Sheets ($ in 000s)   December 31, 2014 December 31, 2013 (Unaudited) Assets Cash and due from banks $ 138,503 $ 75,999 Interest-bearing deposits in depository institutions 9,725 9,877 Federal funds sold   -     -   Cash and cash equivalents 148,228 85,876   Investment securities available-for-sale, at fair value 254,043 352,660 Investment securities held-to-maturity, at amortized cost 90,786 4,117 Other securities   9,857     13,343   Total investment securities 354,686 370,120   Gross loans 2,652,066 2,606,197 Allowance for loan losses   (20,150 )   (20,575 ) Net loans 2,631,916 2,585,622   Bank owned life insurance 95,116 92,047 Premises and equipment, net 77,988 82,548 Accrued interest receivable 6,826 6,866 Net deferred tax assets 36,264 42,165 Intangible assets 74,198 75,142 Other assets   35,909     27,852   Total Assets $ 3,461,131   $ 3,368,238     Liabilities Deposits: Noninterest-bearing $ 545,465 $ 493,228 Interest-bearing: Demand deposits 639,932 601,527 Savings deposits 660,727 612,772 Time deposits   1,026,663     1,077,606   Total deposits 2,872,787 2,785,133 Short-term borrowings Customer repurchase agreements 134,931 137,798 Long-term debt 16,495 16,495 Other liabilities   45,201     41,189   Total Liabilities 3,069,414 2,980,615   Stockholders' Equity Preferred stock, par value $25 per share: 500,000 shares authorized; none issued - - Common stock, par value $2.50 per share: 50,000,000 shares authorized; 18,499,282 shares issued at December 31, 2014 and , December 31, 2013 less 3,345,590 and 2,748,922 shares in treasury, respectively 46,249 46,249 Capital surplus 107,370 107,596 Retained earnings 362,211 333,970 Cost of common stock in treasury (120,818 ) (95,202 ) Accumulated other comprehensive loss: Unrealized gain on securities available-for-sale 1,190 (2,110 ) Underfunded pension liability   (4,485 )   (2,880 ) Total Accumulated Other Comprehensive Loss   (3,295 )   (4,990 ) Total Stockholders' Equity   391,717     387,623   Total Liabilities and Stockholders' Equity $ 3,461,131   $ 3,368,238   CITY HOLDING COMPANY AND SUBSIDIARIES       Investment Portfolio   (Unaudited) ($ in 000s)   Original Cost

Credit-Related

Net Investment Impairment

Losses through

December 31, 2014

  Unrealized Gains (Losses)   Carrying Value   US Government Agencies $ 1,816 $ - $ 11 $ 1,827 Mortgage Backed Securities 274,272 - 1,503 275,775 Municipal Bonds 41,382 - 714 42,096 Pooled Bank Trust Preferreds 22,297 (20,171 ) (459 ) 1,667 Single Issuer Bank Trust Preferreds, Subdebt of Financial Institutions, and Bank Holding Company Preferred Stocks 20,578 (1,015 ) (832 ) 18,731 Money Markets and Mutual Funds 1,525 - (4 ) 1,521 Federal Reserve Bank and FHLB stock 9,857 - - 9,857 Community Bank Equity Positions   3,714   (1,584 )   1,082     3,212

Total Investments

$ 375,441 $ (22,770 ) $ 2,015   $ 354,686 CITY HOLDING COMPANY AND SUBSIDIARIES         Loan Portfolio   (Unaudited) ($ in 000s)   December 31 September 30 June 30 March 31 December 31   2014     2014     2014     2014     2013   Residential real estate (1) $ 1,294,576 $ 1,274,062 $ 1,242,972 $ 1,212,232 $ 1,204,450 Home equity - junior liens 145,604 146,965 145,452 144,482 146,090 Commercial and industrial 132,641 130,462 131,627 126,569 148,302 Commercial real estate (2) 1,036,738 1,034,593 1,011,367 1,027,431 1,057,048 Consumer 39,705 41,042 42,858 42,320 46,402 DDA overdrafts   2,802     3,618     3,501     4,001     3,905 Gross Loans $ 2,652,066   $ 2,630,742   $ 2,577,777   $ 2,557,035   $ 2,606,197   Construction loans included in: (1) - Residential real estate loans $ 22,992 $ 22,426 $ 20,078 $ 17,697 $ 17,337 (2) - Commercial real estate loans $ 28,652 $ 24,875 $ 24,608 $ 28,894 $ 24,026 CITY HOLDING COMPANY AND SUBSIDIARIES       Acquisition Activity - Accretion (Unaudited) ($ in millions)   The following table presents the actual and forecasted accretion related to the fair value adjustments on net interest income recorded as a result of the Virginia Savings Bancorp ("Virginia Savings") and Community Financial Corporation ("Community") acquisitions.     Virginia Savings Community Loan Certificates of Loan Certificates of Year Ended: Accretion(a)   Deposit(a) Accretion(a)   Deposit(a) Total   1Q 2014 $ 299 $ 131 $ 1,628 $ 93 $ 2,151 2Q 2014

284

135

1,023

52

$ 1,494 3Q 2014

315

135

1,334

52

$ 1,836 4Q 2014 187 135 933 52 1,307 2015 458 518 2,239 160 3,375 2016 271 497 1,373 48 2,189 2017 156 - 995 - 1,151   a - 2014 amounts are based on actual results. 2015, 2016 and 2017 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 December 31, 2014 2013 Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate   Assets: Loan portfolio (1): Residential real estate (2) $ 1,427,870 $ 14,156 3.93 % $ 1,334,624 $ 13,949 4.15 % Commercial, financial, and agriculture (2) 1,157,915 13,031 4.46 % 1,182,401 15,924 5.34 % Installment loans to individuals (2), (3) 53,321 1,266 9.42 % 60,877 1,465 9.55 % Previously securitized loans (4) ***     558 *** ***     563 *** Total loans 2,639,106 29,011 4.36 % 2,577,902 31,901 4.91 % Securities: Taxable 322,871 2,969 3.65 % 331,134 2,924 3.50 % Tax-exempt (5)     30,775       466   6.01 %     28,430       449   6.27 % Total securities 353,646 3,435 3.85 % 359,564 3,373 3.72 % Deposits in depository institutions 9,948 - - 8,194 - - Federal funds sold     -       -   -       -       -   0.00 % Total interest-earning assets 3,002,700 32,446 4.29 % 2,945,660 35,274 4.75 % Cash and due from banks 138,946 140,269 Bank premises and equipment 78,740 82,738 Other assets 246,502 250,067 Less: Allowance for loan losses     (21,010 )         (20,415 )     Total assets $   3,445,878       $   3,398,319         Liabilities: Interest-bearing demand deposits 619,736 136 0.09 % 597,221 176 0.12 % Savings deposits 642,938 187 0.12 % 607,522 218 0.14 % Time deposits (2) 1,030,010 2,469 0.95 % 1,086,288 2,474 0.90 % Short-term borrowings 150,205 96 0.25 % 145,491 94 0.26 % Long-term debt     16,495       153   3.68 %     16,495       153   3.68 % Total interest-bearing liabilities 2,459,384 3,041 0.49 % 2,453,017 3,115 0.50 % Noninterest-bearing demand deposits 556,937 517,820 Other liabilities 36,881 41,893 Stockholders' equity     392,676           385,589       Total liabilities and stockholders' equity $   3,445,878       $   3,398,319       Net interest income   $   29,405     $   32,159   Net yield on earning assets       3.89 %       4.33 %     (1) For purposes of this table, non-accruing loans have been included in average balances and loan fees, which are immaterial, have been included in interest income. (2) 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") and Community Financial Corporation ("Community"):     Three Months Ended December 31, 2014 Three Months Ended December 31, 2013 Virginia Savings Community Total Virginia Savings Community Total Residential real estate

$

  66

$

   94

$

   160

$

   154

$

   298

$

  452

Commercial, financial, and agriculture 80 751 831 374 2,460 2,834 Installment loans to individuals 41 88 129 33 285 318 Time deposits     135       52   187       121       174   295    

$

  322

   

$

  985

$

 1,307

   

$

   682

   

$

 3,217

$

 3,899

      (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, 2014 2013 Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate   Assets: Loan portfolio (1): Residential real estate (2) $ 1,385,798 $ 55,744 4.02 % $ 1,304,741 $ 55,165 4.23 % Commercial, financial, and agriculture (2) 1,154,338 54,197 4.70 % 1,154,637 62,679 5.43 % Installment loans to individuals (2), (3) 53,461 4,530 8.47 % 64,377 6,219 9.66 % Previously securitized loans (4) ***     2,187 *** ***     2,531 *** Total loans 2,593,597 116,658 4.50 % 2,523,755 126,594 5.02 % Securities: Taxable 337,440 11,766 3.49 % 330,225 10,697 3.24 % Tax-exempt (5)     28,464       1,757   6.17 %     30,635       1,885   6.15 % Total securities 365,904 13,523 3.70 % 360,860 12,582 3.49 % Deposits in depository institutions 9,205 - - 8,116 - - Federal funds sold     -       -   0.00 %     13,052       22   0.17 % Total interest-earning assets 2,968,706 130,181 4.39 % 2,905,783 139,198 4.79 % Cash and due from banks 130,183 154,983 Bank premises and equipment 80,459 82,168 Other assets 246,616 255,544 Less: Allowance for loan losses     (21,148 )         (20,127 )     Total assets $   3,404,816       $   3,378,351         Liabilities: Interest-bearing demand deposits 614,489 615 0.10 % 603,844 712 0.12 % Savings deposits 632,510 784 0.12 % 599,574 866 0.14 % Time deposits (2) 1,046,925 9,613 0.92 % 1,103,945 10,782 0.98 % Short-term borrowings 133,769 342 0.26 % 127,679 325 0.25 % Long-term debt     16,495       606   3.67 %     16,495       618   3.75 % Total interest-bearing liabilities 2,444,188 11,960 0.49 % 2,451,537 13,303 0.54 % Noninterest-bearing demand deposits 531,061 514,210 Other liabilities 33,624 39,502 Stockholders' equity     395,943           373,102       Total liabilities and stockholders' equity $   3,404,816       $   3,378,351       Net interest income   $   118,221     $   125,895   Net yield on earning assets       3.98 %       4.33 %   (1) For purposes of this table, non-accruing loans have been included in average balances and loan fees, which are immaterial, have been included in interest income. (2) 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") and Community Financial Corporation ("Community"):     Twelve Ended December 31, 2014 Twelve Months Ended December 31, 2013 Virginia Savings Community Total Virginia Savings Community Total Residential real estate

$

427

$

457

$

884

$

970

$

805

$

1,775

Commercial, financial, and agriculture 504 3,900 4,404 2,397 7,861 10,258 Installment loans to individuals 154 561 715 145 1,241 1,386 Time deposits     535       250   785       542       682   1,224    

$

1,620    

$

5,168

$

6,788    

$

4,054    

$

10,589

$

14,643       (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 $0. (5) Computed on a fully federal tax-equivalent basis assuming a tax rate of approximately 35%. CITY HOLDING COMPANY AND SUBSIDIARIES         Analysis of Risk-Based Capital   (Unaudited) ($ in 000s)   December 31 September 30 June 30 March 31 December 31 2014 (a) 2014 2014 2014 2013   Tier I Capital: Stockholders' equity $ 391,717 $ 391,673 $ 397,231 $ 393,750 $ 387,623 Goodwill and other intangibles (74,011) (74,247) (74,483) (74,719) (74,955) Accumulated other comprehensive loss 3,295 2,921 2,509 4,214 4,990 Qualifying trust preferred stock 16,000 16,000 16,000 16,000 16,000 Unrealized loss on AFS securities - - - - - Excess deferred tax assets (3,334) (3,131) (4,019) (6,508) (8,800) Total tier I capital $ 333,667 $ 333,216 $ 337,238 $ 332,737 $ 324,859               Total Risk-Based Capital: Tier I capital $ 333,667 $ 333,216 $ 337,238 $ 332,737 $ 324,859 Qualifying allowance for loan losses 20,150 20,487 20,536 21,044 20,575 Unrealized gain on securities 560 630 605 786 606 Total risk-based capital $ 354,377 $ 354,333 $ 358,379 $ 354,567 $ 346,040   Net risk-weighted assets $ 2,493,078 $ 2,493,938 $ 2,464,081 $ 2,450,949 $ 2,499,591                         Ratios: Average stockholders' equity to average assets 11.40% 11.78% 11.71% 11.64% 11.35% Tangible capital ratio 9.37% 9.58% 9.80% 9.60% 9.49% Risk-based capital ratios: Tier I capital 13.38% 13.36% 13.69% 13.58% 13.00% Total risk-based capital 14.21% 14.21% 14.54% 14.47% 13.84% Leverage capital 9.91% 10.07% 10.15% 10.07% 9.80%   (a) December 31, 2014 risk-based capital ratios are estimated.                           CITY HOLDING COMPANY AND SUBSIDIARIES Intangibles (Unaudited) ($ in 000s)   As of and for the Quarter Ended December 31 September 30 June 30 March 31 December 31 2014 2014 2014 2014 2013   Intangibles, net $ 74,198 $ 74,434 $ 74,670 $ 74,906 $ 75,142 Intangibles amortization expense 236 236 236 236 260           Quarter Ended December 31 September 30 June 30 March 31 December 31   2014     2014     2014     2014     2013     Balance at beginning of period $ 20,487 $ 20,536 $ 21,044 $ 20,575 $ 20,606   Charge-offs: Commercial and industrial (7 ) 325 1 4 268 Commercial real estate 260 696 587 382 1,384 Residential real estate 414 605 316 427 583 Home equity 21 142 38 108 17 Consumer 17 49 38 84 128 DDA overdrafts   363     390     321     341     381   Total charge-offs 1,068 2,207 1,301 1,346 2,761   Recoveries: Commercial and industrial 4 4 18 63 33 Commercial real estate 19 11 53 30 116 Residential real estate 96 28 39 24 97 Home equity - - - - - Consumer 32 43 53 76 85 DDA overdrafts   196     200     195     259     454   Total recoveries 347 286 358 452 785           Net charge-offs 721 1,921 943 894 1,976 Provision for (recovery of) acquired loans 148 (3 ) 150 (12 ) 507 Provision for loan losses   236     1,875     285     1,375     1,438   Balance at end of period $ 20,150   $ 20,487   $ 20,536   $ 21,044   $ 20,575     Loans outstanding $ 2,652,066   $ 2,630,742   $ 2,577,777   $ 2,557,035   $ 2,606,197   Average loans outstanding   2,639,106     2,600,142     2,563,601     2,570,719     2,577,902   Allowance as a percent of loans outstanding   0.76 %   0.78 %   0.80 %   0.82 %   0.79 % Allowance as a percent of non-performing loans   128.10 %   112.61 %   106.86 %   100.09 %   90.25 % Net charge-offs (annualized) as a percent of average loans outstanding   0.11 %   0.30 %   0.15 %   0.14 %   0.31 % Net charge-offs, excluding overdraft deposit accounts, (annualized) as a percent of average loans outstanding   0.08 %   0.27 %   0.13 %   0.13 %   0.32 % CITY HOLDING COMPANY AND SUBSIDIARIES           Summary of Non-Performing Assets (Unaudited) ($ in 000s)   December 31 September 30 June 30 March 31 December 31   2014     2014     2014     2014     2013     Nonaccrual loans $ 15,307 $ 17,384 $ 18,423 $ 20,593 $ 22,363 Accruing loans past due 90 days or more   423     809     794     432     436   Total non-performing loans 15,730 18,193 19,217 21,025 22,799 Other real estate owned   8,180     9,162     9,129     9,538     8,470   Total non-performing assets $ 23,910   $ 27,355   $ 28,346   $ 30,563   $ 31,269     Non-performing assets as a percent of loans and other real estate owned 0.90 % 1.04 % 1.10 % 1.19 % 1.20 %                 CITY HOLDING COMPANY AND SUBSIDIARIES Summary of Total Past Due Loans (Unaudited) ($ in 000s) Originated December 31 September 30 June 30 March 31 December 31   2014     2014     2014     2014     2013     Residential real estate $ 5,164 $ 5,276 $ 5,794 $ 4,118 $ 4,850 Home equity - junior liens 746 751 926 638 921 Commercial and industrial 310 188 25 77 - Commercial real estate 479 938 443 789 668 Consumer 197 58 80 63 182 DDA overdrafts   318     592     281     196     393   Total past due loans $ 7,214   $ 7,803   $ 7,549   $ 5,881   $ 7,014     Acquired December 31 September 30 June 30 March 31 December 31   2014     2014     2014     2014     2013     Residential real estate $ 714 $ 500 $ 873 $ 813 $ 1,014 Home equity - junior liens 2 16 3 21 - Commercial and industrial 143 96 58 127 80 Commercial real estate 2,372 2,972 2,110 3,789 10,689 Consumer 221 162 374 397 695 DDA overdrafts   -     -     -     -     -   Total past due loans $ 3,452   $ 3,746   $ 3,418   $ 5,147   $ 12,478     Total December 31 September 30 June 30 March 31 December 31   2014     2014     2014     2014     2013     Residential real estate $ 5,878 $ 5,776 $ 6,667 $ 4,931 $ 5,864 Home equity - junior liens 748 767 929 659 921 Commercial and industrial 453 284 83 204 80 Commercial real estate 2,851 3,910 2,553 4,578 11,357 Consumer 418 220 454 460 877 DDA overdrafts   318     592     281     196     393   Total past due loans $ 10,666   $ 11,549   $ 10,967   $ 11,028   $ 19,492     Total past due loans as a percent of loans outstanding 0.40 % 0.44 % 0.43 % 0.43 % 0.75 %                 CITY HOLDING COMPANY AND SUBSIDIARIES Summary of Troubled Debt Restructurings (Unaudited) ($ in 000s)   December 31 September 30 June 30 March 31 December 31   2014     2014     2014     2014     2013     Residential real estate $ 18,492 $ 18,040 $ 19,212 $ 18,940 $ 20,345 Home equity - junior liens 2,688 2,821 2,858 2,866 2,873 Commercial and industrial 73 77 86 84 88 Commercial real estate 2,263 2,270 2,281 1,854 1,783 Consumer   -     -     -     -     -   Total $ 23,516   $ 23,208   $ 24,437   $ 23,744   $ 25,089   CITY HOLDING COMPANY AND SUBSIDIARIES         Summary of Purchased Credit Impaired Loans (Unaudited) ($ in 000s)     Virginia Savings Acquisition December 31 September 30 June 30 March 31 December 31 2014   2014   2014   2014   2013   Contractual required principal and interest 2,407 3,481 3,735 3,821 3,932 Carrying value 1,964 2,987 3,098 3,102 3,182   Community Acquisition December 31 September 30 June 30 March 31 December 31 2014   2014   2014   2014   2013   Contractual required principal and interest 23,277 24,147 27,394 30,476 38,566 Carrying value 15,365 15,518 17,902 19,986 26,330

City Holding CompanyCharles R. Hageboeck, Chief Executive Officer and President304-769-1102