ex99-1.htm

Charleston, West Virginia – City Holding Company, “the Company” (NASDAQ:CHCO), a $2.5 billion bank holding company headquartered in Charleston, today announced net income for the third quarter of $12.7 million or $0.76 per diluted share compared to $13.6 million or $0.77 per diluted share in the third quarter of 2006. For the third quarter of 2007, the Company achieved a return on assets of 2.03%, a return on equity of 17.2%, a net interest margin of 4.32%, and an efficiency ratio of 46.9%.

Charles Hageboeck, Chief Executive Officer and President, noted, “City’s performance continues to be strong, albeit in a difficult operating environment characterized by slower growth, declining net interest margins, and deteriorating asset quality. Despite the decline in net income, the Company remains one of the most profitable banks in the industry with return on assets of 2.03%, and asset quality remains strong. The two largest sources of non-interest income – branch service charges and insurance revenues – both showed solid growth in the third quarter, and the Company has continued to recruit additional talent to strengthen our ability to compete, and to grow effectively in our markets. Although the Company’s nonperforming assets increased during the quarter, our low levels of net charge-offs excluding overdraft depository accounts remained steady at 0.05% (this ratio has not exceeded 0.20% since the quarter ended December 31, 2005) and past due loans remain low at only 0.45% of total loans. During the quarter, the Company was able to repurchase 436,800 shares of its common stock and maintain its strong tangible equity to tangible assets ratio of 9.6% at September 30, 2007.”

The Company’s tax equivalent net interest income decreased $1.3 million, or 5.1%, from $25.7 million during the third quarter of 2006 to $24.4 million during the third quarter of 2007. This decrease is attributable to two factors. First, the Company experienced a decrease of $0.3 million in interest income from previously securitized loans in the third quarter of 2007 as compared to the third quarter of 2006 as the average balance of these loans decreased 54.5%. The decrease in average balances was partially mitigated by an increase in the yield on these loans from 43.2% for the third quarter of 2006 to 82.9% for the third quarter of 2007 (see Previously Securitized Loans).

Secondly, the Company’s reported net interest margin experienced compression to 4.32% in the third quarter of 2007 as compared to 4.51% in the third quarter of 2006. The Company’s net interest margin exclusive of Previously Securitized Loans decreased from 4.20% for the third quarter of 2006 to 4.03% for the third quarter of 2007 and resulting in the reduction of approximately $1.0 million in net interest income. The average yield on the Company’s loans (net of Previously Securitized Loans) decreased from 7.14% in the third quarter of 2006 to 7.10% in the third quarter of 2007, while the average cost of interest bearing liabilities increased from 3.04% in the third quarter of 2006 to 3.26% in the third quarter of 2007. The increase in the average cost of interest bearing liabilities can in turn be linked to an increase in the cost of time deposits of 39 basis points between the third quarters of 2006 and 2007.

As a result of the Company’s quarterly analysis of the adequacy of the ALLL, the Company recorded a provision for loan losses of $1.2 million in the third quarter of 2007 and the third quarter of 2006. The Company’s provision reflects difficulties encountered by two of the Company’s borrowers and the downgrade of their related credits and management’s assessment of these difficulties. Additionally, the provision reflects an increase in the average balances of overdraft depository accounts during the quarter ended September 30, 2007. Changes in the amount of the provision and related allowance are based on the Company’s detailed methodology and are directionally consistent with changes in credit quality, growth, and changes in the composition and quality of the Company’s loan portfolio. The Company believes its methodology for determining the adequacy of its ALLL adequately provides for probable losses inherent in the loan portfolio.

The Company had net charge-offs of $0.8 million for the third quarter of 2007, with depository accounts representing $0.6 million (or approximately 76%) of this total. While charge-offs on depository accounts are appropriately taken against the ALLL, the revenue associated with depository accounts is reflected in service charges and has been steadily growing as the core base of checking accounts has grown. Net charge-offs on residential loans were $0.2 million, while commercial and installments loans experienced no net charge-offs for the quarter ended September 30, 2007. The increase in charge-offs on residential loans was primarily related to three credits (that had been appropriately considered in establishing the allowance for loan losses in prior periods). Trends with respect to net charge-offs are positive, with annualized net charge-offs related to loans (excluding overdrafts) of 0.08% for year-to-date 2007, as compared with 0.11% for 2006 and 0.22% for 2005. The positive trend in net charge-offs is attributable to declines in balances of loans originated prior to 2002 (including loans acquired as part of the Classic Bancshares acquisition). At September 30, 2007, balances of loans written subsequent to 2002 comprise approximately 76% of total loan balances.

The Company’s ratio of non-performing assets to total loans and other real estate owned increased from 0.71% at June 30, 2007 to 1.22% at September 30, 2007 as a result of the downgrade of the credit relationships discussed earlier, but continues to compare favorably to that of our peer group (bank holding companies with total assets between $1 and $5 billion), which reported average non-performing assets as a percentage of loans and other real estate owned of 0.98% for the most recently reported quarter ended June 30, 2007. The composition of the Company’s loan portfolio, which is weighted more heavily toward residential mortgage loans and less towards non-real estate secured commercial loans than that of our peers, has allowed us to maintain a lower allowance in comparison to peers.

Net of investment security gains/(losses) and the gain from the sale of the Company’s retail credit card portfolio, non-interest income increased $0.5 million to $13.8 million in the third quarter of 2007 as compared to $13.3 million in the third quarter of 2006. The largest source of non-interest income is service charges from depository accounts, which increased $0.4 million, or 3.3%, from $10.8 million during the third quarter of 2006 to $11.2 million during the third quarter of 2007. Insurance commission revenues increased $0.6 million, or 114.3% due to the hiring of additional staff by City Insurance to provide worker’s compensation insurance to West Virginia businesses and to bolster the Company’s team of insurance agents focused on selling directly to retail customers. Partially off-setting these increases was a decrease in other income of $0.4 million due to lower credit card fee income as a result of the sale of the retail credit card portfolio during the third quarter of 2006 and the sale of the merchant credit card processing agreements during the first quarter of 2007.

Net of charges related to the redemption of $6.0 million of the Company’s trust preferred securities, non-interest expenses increased $0.3 million (or 1.7%) to $18.0 million in the third quarter of 2007 as compared to $17.7 million in the third quarter of 2006. Salaries and employee benefits increased $0.6 million, or 6.6%, from the third quarter of 2006 due to additional staffing while bankcard expenses increased $0.1 million, or 28.5%, due to increased usage by customers. These increases were essentially offset by decreases in other expenses of $0.3 million, or 13.2% due to the sales of the retail and merchant credit card portfolios.

At September 30, 2007, the Company reported “Previously Securitized Loans” of $8.3 million compared to $10.3 million at June 30, 2007, $15.6 million at December 31, 2006, and $18.5 million at September 30, 2006, respectively. The balance of previously securitized loans has decreased 19.4%, 46.7%, and 55.1% from June 30, 2007, December 31, 2006, and September 30, 2006, respectively. The yield on the previously securitized loans was 82.9% for the quarter ended September 30, 2007, compared to 66.4% for the quarter ended June 30, 2007, 46.6% for the quarter ended December 31, 2006, and 43.2% for the quarter ended September 30, 2006. The yield on the previously securitized loans has increased due to improved cash flows as net default rates have been less than previously estimated. The default rates have decreased as a result of the Company’s assumption of the servicing of all of the pool balances during the second quarter of 2005. Subsequent to our assumption of the servicing of these loans, the Company has experienced net recoveries but does not believe that the trend of net recoveries can be sustained indefinitely.

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 86.7% and the loan to asset ratio was 69.0% at September 30, 2007. The Company maintained investment securities totaling 18.9% of assets as of September 30, 2007. Further, the Company’s deposit mix is weighted heavily toward checking and saving accounts that fund 42.5% of assets at September 30, 2007. Time deposits fund 37.0% of assets at September 30, 2007, 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.

During the quarter ended September 30, 2007, the Company repurchased 436,800 common shares at a weighted average price of $34.49. On August 21, 2007, 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 6% 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 the previous share repurchase program plan approved in December 2006. The Company had repurchased 890,600 shares under the December 2006 Stock Repurchase Plan. The Company’s tangible equity ratio was 9.6% at September 30, 2007 compared with a tangible equity ratio of 10.0% at December 31, 2006.

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 or decreased prepayments on previously securitized loans that would result in impairment losses or lower the yield on such loans; (4) the Company may 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; and (12) the Company may experience difficulties growing loan and deposit balances. Forward-looking statements made herein reflect management's expectations as of the date such statements are made. Such information is provided to assist stockholders and potential investors in understanding current and anticipated financial operations of the Company and is included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances that arise after the date such statements are made.

CITY HOLDING COMPANY AND SUBSIDIARIES
Financial Highlights
(Unaudited)


	Three Months Ended September 30,						Percent
	2007			2006			Change

Earnings ($000s, except per share data):
Net Interest Income (FTE)	$	24,448		$	25,750			(5.06	)%
Net Income		12,714			13,620			(6.65	)%
Earnings per Basic Share		0.76			0.78			(2.56	)%
Earnings per Diluted Share		0.76			0.77			(1.30	)%


Key Ratios (percent):
Return on Average Assets		2.03	%		2.17	%		(6.22	)%
Return on Average Equity		17.19	%		18.56	%		(7.38	)%
Net Interest Margin		4.32	%		4.51	%		(4.36	)%
Efficiency Ratio		46.94	%		42.39	%		10.72	%
Average Shareholders' Equity to Average Assets		11.82	%		11.67	%		1.27	%

Consolidated Risk Based Capital Ratios (a):
Tier I		14.84	%		14.99	%		(1.00	)%
Total		15.83	%		15.87	%		(0.25	)%

Average Tangible Equity to Average Tangible Assets		9.59	%		9.69	%		(1.06	)%


Common Stock Data:
Cash Dividends Declared per Share	$	0.31		$	0.28			10.71	%
Book Value per Share		17.68			16.99			3.63	%
Tangible Book Value per Share		14.14			13.68			3.37	%
Market Value per Share:
High		39.59			40.19			(1.49	)%
Low		31.16			35.42			(12.03	)%
End of Period		36.41			39.87			(8.68	)%

Price/Earnings Ratio (b)		11.98			12.78			(6.27	)%
	Nine Months Ended September 30,						Percent
	2007			2006			Change

Earnings ($000s, except per share data):
Net Interest Income (FTE)	$	73,683		$	78,025			(5.56	)%
Net Income		38,267			40,247			(4.92	)%
Earnings per Basic Share		2.24			2.27			(1.32	)%
Earnings per Diluted Share		2.24			2.26			(0.88	)%


Key Ratios (percent):
Return on Average Assets		2.03	%		2.13	%		(5.00	)%
Return on Average Equity		16.79	%		18.25	%		(8.00	)%
Net Interest Margin		4.35	%		4.60	%		(5.49	)%
Efficiency Ratio		45.83	%		43.88	%		4.46	%
Average Shareholders' Equity to Average Assets		12.06	%		11.68	%		3.26	%


Common Stock Data:
Cash Dividends Declared per Share	$	0.93		$	0.84			10.71	%
Market Value per Share:
High		41.54			40.19			3.36	%
Low		31.16			34.53			(9.76	)%

(a) September 30, 2007 risk-based capital ratios are estimated
(b) September 30, 2007 price/earnings ratio computed based on annualized third quarter 2007 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

2003	$	10.10	$	10.74	$	11.03	$	11.46	$	25.50	$	37.15
2004		12.09		11.89		12.70		13.03		27.30		37.58
2005		13.20		15.56		15.99		16.14		27.57		39.21
2006		16.17		16.17		16.99		17.46		34.53		41.87
2007		17.62		17.40		17.68				31.16		41.54


Earnings per Basic Share

	Quarter Ended
	March 31		June 30		September 30		December 31		Year-to-Date

2003	$	0.56	$	0.73	$	0.69	$	0.64	$	2.62
2004		0.66		0.80		0.66		0.67		2.79
2005		0.70		0.72		0.73		0.72		2.87
2006		0.71		0.78		0.78		0.74		3.00
2007		0.76		0.72		0.76				2.24


Earnings per Diluted Share

	Quarter Ended
	March 31		June 30		September 30		December 31		Year-to-Date

2003	$	0.55	$	0.72	$	0.68	$	0.63	$	2.58
2004		0.65		0.79		0.65		0.66		2.75
2005		0.69		0.71		0.72		0.72		2.84
2006		0.71		0.77		0.77		0.74		2.99
2007		0.76		0.72		0.76				2.24

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited) ($ in 000s, except per share data)

	Three Months Ended September 30,
	2007			2006

Interest Income
Interest and fees on loans	$	32,721		$	31,774
Interest on investment securities:
Taxable		6,024			6,870
Tax-exempt		415			437
Interest on loans held for sale		-			122
Interest on deposits in depository institutions		171			452
Interest on federal funds sold		266			92
Total Interest Income		39,597			39,747

Interest Expense
Interest on deposits		13,190			11,782
Interest on short-term borrowings		1,758			1,343
Interest on long-term debt		426			1,108
Total Interest Expense		15,374			14,233
Net Interest Income		24,223			25,514
Provision for loan losses		1,200			1,225
Net Interest Income After Provision for Loan Losses		23,023			24,289

Non-Interest Income
Investment securities losses		(1	)		(2,067	)
Service charges		11,192			10,833
Insurance commissions		1,127			526
Trust and investment management fee income		523			572
Bank owned life insurance		596			561
Gain on sale of credit card portfolio		-			3,563
Other income		377			778
Total Non-Interest Income		13,814			14,766

Non-Interest Expense
Salaries and employee benefits		9,307			8,733
Occupancy and equipment		1,600			1,602
Depreciation		1,160			1,061
Professional fees		416			379
Postage, delivery, and statement mailings		641			765
Advertising		801			810
Telecommunications		438			498
Bankcard expenses		623			485
Insurance and regulatory		364			384
Office supplies		472			417
Repossessed asset (gains) losses, net of expenses		(47	)		20
Loss on early extinguishment of debt		-			379
Other expenses		2,256			2,600
Total Non-Interest Expense		18,031			18,133
Income Before Income Taxes		18,806			20,922
Income tax expense		6,092			7,302
Net Income	$	12,714		$	13,620

Basic earnings per share	$	0.76		$	0.78
Diluted earnings per share	$	0.76		$	0.77
Average Common Shares Outstanding:
Basic		16,714			17,557
Diluted		16,767			17,619

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited) ($ in 000s, except per share data)

	Nine months ended September 30,
	2007			2006

Interest Income
Interest and fees on loans	$	96,131		$	91,788
Interest on investment securities:
Taxable		19,709			21,618
Tax-exempt		1,270			1,359
Interest on loans held for sale		-			322
Interest on deposits in depository institutions		401			1,018
Interest on federal funds sold		815			92
Total Interest Income		118,326			116,197

Interest Expense
Interest on deposits		38,978			31,503
Interest on short-term borrowings		4,965			3,795
Interest on long-term debt		1,383			3,607
Total Interest Expense		45,326			38,905
Net Interest Income		73,000			77,292
Provision for loan losses		3,700			2,900
Net Interest Income After Provision for Loan Losses		69,300			74,392

Non-Interest Income
Investment securities gains (losses)		45			(2,067	)
Service charges		32,681			31,597
Insurance commissions		2,971			1,661
Trust and investment management fee income		1,529			1,642
Bank owned life insurance		1,877			1,776
Gain on sale of credit card merchant agreements		1,500			3,563
Other income		1,252			2,445
Total Non-Interest Income		41,855			40,617

Non-Interest Expense
Salaries and employee benefits		27,275			26,129
Occupancy and equipment		4,762			4,825
Depreciation		3,339			3,182
Professional fees		1,204			1,345
Postage, delivery, and statement mailings		1,988			2,098
Advertising		2,533			2,339
Telecommunications		1,352			1,499
Bankcard expenses		1,737			1,486
Insurance and regulatory		1,132			1,153
Office supplies		1,369			1,171
Repossessed asset (gains), net of expenses		(52	)		(105	)
Loss on early extinguishment of debt		-			661
Other expenses		6,514			7,402
Total Non-Interest Expense		53,153			53,185
Income Before Income Taxes		58,002			61,824
Income tax expense		19,735			21,577
Net Income	$	38,267		$	40,247

Basic earnings per share	$	2.24		$	2.27
Diluted earnings per share	$	2.24		$	2.26
Average Common Shares Outstanding:
Basic		17,057			17,759
Diluted		17,116			17,817

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Statements of Changes in Stockholders' Equity
(Unaudited) ($ in 000s)


	Three Months Ended
	September 30, 2007			September 30, 2006

Balance at July 1	$	294,783		$	284,120

Net income		12,714			13,620
Other comprehensive income:
Change in unrealized gain on securities available-for-sale		2,201			4,188
Change in unrealized gain on interest rate floors		2,050			1,465
Cash dividends declared ($0.31/share)		(5,105	)		-
Cash dividends declared ($0.28/share)		-			(4,916	)
Issuance of stock award shares, net		54			284
Exercise of 7,928 stock options		-			228
Excess tax benefits on stock compensation		-			27
Purchase of 436,800 common shares of treasury		(14,977	)		-
Purchase of 18,000 common shares of treasury		-			(689	)
Balance at September 30	$	291,720		$	298,327



	Nine Months Ended
	September 30, 2007			September 30, 2006

Balance at January 1	$	305,307		$	292,141

Cumulative effect of adopting FIN 48		(125	)		-
Net income		38,267			40,247
Other comprehensive income:
Change in unrealized gain on securities available-for-sale		83			277
Change in unrealized gain on interest rate floors		1,050			453
Cash dividends declared ($0.93/share)		(15,703	)		-
Cash dividends declared ($0.84/share)		-			(14,823	)
Issuance of stock award shares, net		372			471
Exercise of 7,300 stock options		154			-
Exercise of 39,935 stock options		-			653
Excess tax benefits on stock compensation		3			222
Purchase of 1,017,000 common shares of treasury		(37,688	)		-
Purchase of 590,053 common shares of treasury		-			(21,314	)
Balance at September 30	$	291,720		$	298,327

CITY HOLDING COMPANY AND SUBSIDIARIES
Condensed Consolidated Quarterly Statements of Income
(Unaudited) ($ in 000s, except per share data)

	Quarter Ended
	Sept. 30			June 30			March 31			Dec. 31			Sept. 30
	2007			2007			2007			2006			2006

Interest income	$	39,597		$	39,530		$	39,198		$	39,925		$	39,747
Taxable equivalent adjustment		224			231			230			228			236
Interest income (FTE)		39,821			39,761			39,428			40,153			39,983
Interest expense		15,374			15,196			14,756			14,820			14,233
Net interest income		24,447			24,565			24,672			25,333			25,750
Provision for loan losses		1,200			1,600			900			901			1,225
Net interest income after provision
for loan losses		23,247			22,965			23,772			24,432			24,525

Noninterest income		13,814			13,689			14,371			13,586			14,766
Noninterest expense		18,031			17,525			17,616			18,099			18,133
Income before income taxes		19,030			19,129			20,527			19,919			21,158
Income tax expense		6,092			6,576			7,066			6,752			7,302
Taxable equivalent adjustment		224			231			230			228			236
Net income	$	12,714		$	12,322		$	13,231		$	12,939		$	13,620



Basic earnings per share	$	0.76		$	0.72		$	0.76		$	0.74		$	0.78
Diluted earnings per share		0.76			0.72			0.76			0.74			0.77
Cash dividends declared per share		0.31			0.31			0.31			0.28			0.28


Average Common Share (000s):
Outstanding		16,714			17,100			17,369			17,535			17,557
Diluted		16,767			17,158			17,424			17,601			17,619

Net Interest Margin		4.32	%		4.32	%		4.41	%		4.43	%		4.51	%

CITY HOLDING COMPANY AND SUBSIDIARIES
Non-Interest Income and Non-Interest Expense
(Unaudited) ($ in 000s)

	Quarter Ended
	Sept 30			June 30		Mar 31			Dec 31		Sept 30
	2007			2007		2007			2006		2006

Non-Interest Income:
Service charges	$	11,192		$	11,426	$	10,063		$	10,962	$	10,833
Insurance commissions		1,127			832		1,012			675		526
Trust and investment management fee income		523			437		568			498		572
Bank owned life insurance		596			585		696			576		561
Other income		377			364		513			803		778
Subtotal		13,815			13,644		12,852			13,514		13,270
Investment securities (losses) gains		(1	)		45		-			72		(2,067	)
Gain on sale of credit card merchant agreements		-			-		1,500			-		3,563
Total Non-Interest Income	$	13,814		$	13,689	$	14,352		$	13,586	$	14,766

Non-Interest Expense:
Salaries and employee benefits	$	9,307		$	8,912	$	9,057		$	8,354	$	8,733
Occupancy and equipment		1,600			1,525		1,637			1,655		1,602
Depreciation		1,160			1,109		1,070			1,037		1,061
Professional fees		416			385		403			415		379
Postage, delivery, and statement mailings		641			569		777			735		765
Advertising		801			880		852			876		810
Telecommunications		438			460		455			549		498
Bankcard expenses		623			597		518			478		485
Insurance and regulatory		364			383		385			375		384
Office supplies		472			442		455			408		417
Repossessed asset (gains) losses, net of expenses		(47	)		9		(14	)		6		20
Loss on early extinguishment of debt		-			-		-			708		379
Other expenses		2,256			2,254		2,002			2,503		2,600
Total Non-Interest Expense	$	18,031		$	17,525	$	17,597		$	18,099	$	18,133




Employees (Full Time Equivalent)		808			807		791			779		767
Branch Locations		68			68		68			67		67

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
	September 30			December 31
	2007			2006
	*(Unaudited)*
Assets
Cash and due from banks	$	55,695		$	58,014
Interest-bearing deposits in depository institutions		17,248			27,434
Federal funds sold		20,000			25,000
Cash and cash equivalents		92,943			110,448

Investment securities available-for-sale, at fair value		434,053			472,398
Investment securities held-to-maturity, at amortized cost		35,935			47,500
Total investment securities		469,988			519,898

Gross Loans		1,719,776			1,677,469
Allowance for loan losses		(16,980	)		(15,405	)
Net loans		1,702,796			1,662,064

Bank owned life insurance		56,868			55,195
Premises and equipment		51,561			44,689
Accrued interest receivable		12,255			12,337
Net deferred tax assets		23,369			23,652
Intangible assets		58,328			58,857
Other assets		23,740			20,667
Total Assets	$	2,491,848		$	2,507,807

Liabilities
Deposits:
Noninterest-bearing	$	299,819		$	321,038
Interest-bearing:
Demand deposits		412,479			422,925
Savings deposits		347,810			321,075
Time deposits		922,567			920,179
Total deposits		1,982,675			1,985,217
Short-term borrowings		165,787			136,570
Long-term debt		21,853			48,069
Other liabilities		29,813			32,644
Total Liabilities		2,200,128			2,202,500

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 September 30, 2007 and December 31, 2006
less 1,995,895 and 1,009,095 shares in treasury, respectively		46,249			46,249
Capital surplus		103,475			104,043
Retained earnings		216,652			194,213
Cost of common stock in treasury		(70,260	)		(33,669	)
Accumulated other comprehensive (loss):
Unrealized loss on securities available-for-sale		(2,566	)		(2,649	)
Unrealized gain (loss) on derivative instruments		840			(210	)
Underfunded pension liability		(2,670	)		(2,670	)
Total Accumulated Other Comprehensive (Loss)		(4,396	)		(5,529	)
Total Stockholders' Equity		291,720			305,307
Total Liabilities and Stockholders' Equity	$	2,491,848		$	2,507,807

CITY HOLDING COMPANY AND SUBSIDIARIES
Loan Portfolio
(Unaudited) ($ in 000s)

	Sept 30		June 30		March 31		Dec 31			Sept 30
	2007		2007		2007		2006			2006

Residential real estate	$	600,094	$	601,045	$	596,412	$	598,502		$	604,867
Home equity		338,161		330,203		324,653		321,708			318,666
Commercial, financial, and agriculture		666,960		681,388		663,183		673,719			693,933
Loans to depository institutions		60,000		60,000		50,000		25,000			20,000
Installment loans to individuals		46,244		47,397		44,756		42,943			41,215
Previously securitized loans		8,317		10,321		12,744		15,597			18,520
Gross Loans	$	1,719,776	$	1,730,354	$	1,691,748	$	1,677,469		$	1,697,201






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)

	2005		$	30.3	$	11.4		27	%
	2006			15.6		9.4		42	%
	2007			7.5		7.2		74	%
	2008			5.4		5.5		83	%
	2009			4.0		4.0		83	%
	2010			3.4		3.2		83	%

a - 2005 and 2006 amounts are based on actual results. 2007 amounts are based on actual results through September 30, 2007 and estimated amounts for the remainder of the year. 2008, 2009, and 2010 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 September 30,
				2007								2006
	Average					Yield/			Average					Yield/
	Balance			Interest		Rate			Balance			Interest		Rate

Assets:
Loan portfolio:
Residential real estate	$	598,954		$	9,272		6.14	%	$	601,686		$	8,766		5.78	%
Home equity		334,363			6,547		7.77	%		315,341			6,389		8.04	%
Commercial, financial, and agriculture		679,104			12,776		7.46	%		676,271			13,108		7.69	%
Loans to depository institutions		60,000			820		5.42	%		6,522			88		5.35	%
Installment loans to individuals		47,626			1,379		11.49	%		42,848			1,219		11.29	%
Previously securitized loans		9,220			1,927		82.92	%		20,261			2,205		43.18	%
Total loans		1,729,267			32,721		7.51	%		1,662,929			31,775		7.58	%
Securities:
Taxable		442,696			6,024		5.40	%		512,083			6,870		5.32	%
Tax-exempt		38,810			639		6.53	%		40,815			673		6.54	%
Total securities		481,506			6,663		5.49	%		552,898			7,543		5.41	%
Loans held for Sale		-			-		-			4,353			121		11.03	%
Deposits in depository institutions		15,184			171		4.47	%		35,524			452		5.05	%
Federal funds sold		20,870			266		5.06	%		7,631			92		4.78	%
Total interest-earning assets		2,246,827			39,821		7.03	%		2,263,335			39,983		7.01	%
Cash and due from banks		51,149								49,801
Bank premises and equipment		50,333								43,205
Other assets		171,478								173,761
Less: Allowance for loan losses		(16,563	)							(15,425	)
Total assets	$	2,503,224							$	2,514,677

Liabilities:
Interest-bearing demand deposits		410,907			1,136		1.10	%		423,762			1,329		1.24	%
Savings deposits		347,055			1,523		1.74	%		317,038			1,118		1.40	%
Time deposits		923,937			10,530		4.52	%		897,761			9,336		4.13	%
Short-term borrowings		165,965			1,758		4.20	%		136,927			1,342		3.89	%
Long-term debt		21,871			426		7.73	%		82,082			1,108		5.36	%
Total interest-bearing liabilities		1,869,735			15,373		3.26	%		1,857,570			14,233		3.04	%
Noninterest-bearing demand deposits		309,553								332,494
Other liabilities		28,092								31,076
Stockholders' equity		295,844								293,537
Total liabilities and
stockholders' equity	$	2,503,224							$	2,514,677
Net interest income				$	24,448							$	25,750
Net yield on earning assets							4.32	%							4.51	%

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited) ($ in 000s)

	Nine Months Ended September 30,
				2007								2006
	Average					Yield/			Average					Yield/
	Balance			Interest		Rate			Balance			Interest		Rate

Assets:
Loan portfolio:
Residential real estate	$	596,585		$	27,144		6.08	%	$	597,223		$	25,630		5.74	%
Home equity		328,036			19,091		7.78	%		309,007			17,945		7.76	%
Commercial, financial, and agriculture		672,331			38,119		7.58	%		654,491			36,492		7.45	%
Loans to depository institutions		56,410			2,271		5.38	%		2,197			89		5.42	%
Installment loans to individuals		45,596			3,967		11.63	%		49,381			4,211		11.40	%
Previously securitized loans		11,583			5,539		63.94	%		24,090			7,422		41.19	%
Total loans		1,710,541			96,131		7.51	%		1,636,389			91,789		7.50	%
Securities:
Taxable		482,484			19,709		5.46	%		554,884			21,618		5.21	%
Tax-exempt		39,789			1,954		6.57	%		42,823			2,091		6.53	%
Total securities		522,273			21,663		5.55	%		597,707			23,709		5.30	%
Loans held for sale		-			-		-			3,337			322		12.90	%
Deposits in depository institutions		12,823			401		4.18	%		28,208			1,018		4.83	%
Federal funds sold		20,832			814		5.22	%		2,571			92		4.78	%
Total interest-earning assets		2,266,469			119,009		7.02	%		2,268,212			116,930		6.89	%
Cash and due from banks		50,668								51,077
Bank premises and equipment		47,555								42,787
Other assets		170,137								170,710
Less: Allowance for loan losses		(16,114	)							(16,135	)
Total assets	$	2,518,715							$	2,516,651

Liabilities:
Interest-bearing demand deposits		423,222			3,777		1.19	%		435,505			3,917		1.20	%
Savings deposits		340,490			4,259		1.67	%		314,057			2,776		1.18	%
Time deposits		922,958			30,942		4.48	%		864,972			24,810		3.83	%
Short-term borrowings		158,250			4,965		4.19	%		149,858			3,795		3.39	%
Long-term debt		25,368			1,383		7.29	%		89,834			3,607		5.37	%
Total interest-bearing liabilities		1,870,288			45,326		3.24	%		1,854,226			38,905		2.81	%
Noninterest-bearing demand deposits		314,744								338,994
Other liabilities		29,803								29,393
Stockholders' equity		303,880								294,038
Total liabilities and
stockholders' equity	$	2,518,715							$	2,516,651
Net interest income				$	73,683							$	78,025
Net yield on earning assets							4.35	%							4.60	%

CITY HOLDING COMPANY AND SUBSIDIARIES
Analysis of Risk-Based Capital
(Unaudited) ($ in 000s)

	Sept 30			June 30			March 31			Dec 31			Sept 30
	2007 (a)			2007			2007			2006			2006

Tier I Capital:
Stockholders' equity	$	291,720		$	294,783		$	303,354		$	305,307		$	298,327
Goodwill and other intangibles		(58,328	)		(58,504	)		(58,681	)		(58,857	)		(59,038	)
Accumulated other comprehensive income		4,396			8,647			4,684			2,859			4,109
Qualifying trust preferred stock		16,000			16,000			16,000			16,000			22,000
Unrealized Loss of AFS securities		(94	)		-			-			-			-
Excess deferred tax assets		-			(332	)		(2,983	)		-			-
Total tier I capital	$	253,694		$	260,594		$	262,374		$	265,309		$	265,398


Total Risk-Based Capital:
Tier I capital	$	253,694		$	260,594		$	262,374		$	265,309		$	265,398
Qualifying allowance for loan losses		16,980			16,616			16,082			15,405			15,557
Total risk-based capital	$	270,674		$	277,210		$	278,456		$	280,714		$	280,955

Net risk-weighted assets	$	1,709,486		$	1,719,589		$	1,712,680		$	1,734,214		$	1,770,458


Ratios:
Average stockholders' equity to average assets		11.82	%		12.11	%		12.27	%		12.14	%		11.67	%
Tangible capital ratio		9.59	%		9.58	%		9.79	%		10.06	%		9.69	%
Risk-based capital ratios:
Tier I capital		14.84	%		15.15	%		15.32	%		15.30	%		14.99	%
Total risk-based capital		15.83	%		16.12	%		16.26	%		16.19	%		15.87	%
Leverage capital		10.38	%		10.52	%		10.68	%		10.79	%		10.81	%


(a) September 30, 2007 risk-based capital ratios are estimated




CITY HOLDING COMPANY AND SUBSIDIARIES
Intangibles
(Unaudited) ($ in 000s)

	As of and for the Quarter Ended
	Sept 30			June 30			March 31			Dec 31			Sept 30
	2007			2007			2006			2006			2006

Intangibles, net	$	58,328		$	58,504		$	58,681		$	58,857		$	59,038
Intangibles amortization expense		176			177			176			181			181

CITY HOLDING COMPANY AND SUBSIDIARIES
Summary of Loan Loss Experience
(Unaudited) ($ in 000s)

	Quarter Ended
	Sept. 30			June 30			March 31			Dec. 31			Sept. 30
	2007			2007			2007			2006			2006

Balance at beginning of period	$	16,616		$	16,083		$	15,405		$	15,557		$	15,268

Charge-offs:
Commercial, financial, and agricultural		-			120			35			844			207
Real estate-mortgage		240			452			111			230			177
Installment loans to individuals		91			60			84			126			165
Overdraft deposit accounts		1,035			956			860			892			1,018
Total charge-offs		1,366			1,588			1,090			2,092			1,567

Recoveries:
Commercial, financial, and agricultural		19			41			148			101			44
Real estate-mortgage		22			15			15			350			64
Installment loans to individuals		89			98			132			118			131
Overdraft deposit accounts		400			367			573			470			392
Total recoveries		530			521			868			1,039			631

Net charge-offs		836			1,067			222			1,053			936
Provision for loan losses		1,200			1,600			900			901			1,225
Balance at end of period	$	16,980		$	16,616		$	16,083		$	15,405		$	15,557

Loans outstanding	$	1,719,776		$	1,730,354		$	1,691,748		$	1,677,469		$	1,697,201
Average loans outstanding		1,729,267			1,710,989			1,690,946			1,689,846			1,662,929
Allowance as a percent of loans outstanding		0.99	%		0.96	%		0.95	%		0.92	%		0.92	%
Allowance as a percent of non-performing loans		86.88	%		145.11	%		235.75	%		384.93	%		408.43	%
Net charge-offs (annualized) as a
percent of average loans outstanding		0.19	%		0.25	%		0.05	%		0.25	%		0.23	%
Net charge-offs, excluding overdraft deposit
accounts, (annualized) as a percent of average loans outstanding		0.05	%		0.11	%		(0.02	)%		0.15	%		0.07	%

CITY HOLDING COMPANY AND SUBSIDIARIES
Summary of Non-Performing Assets
(Unaudited) ($ in 000s)

	Sept 30			June 30			March 31			Dec 31			Sept 30
	2007			2007			2007			2006			2006

Nonaccrual loans	$	18,896		$	11,194		$	6,714		$	3,319		$	3,359
Accruing loans past due 90 days or more		566			212			108			635			328
Previously securitized loans past due 90 days or more		83			45			-			48			122
Total non-performing loans		19,545			11,451			6,822			4,002			3,809
Other real estate owned, excluding property associated
with previously securitized loans		1,091			624			290			161			499
Other real estate owned associated with previously
securitized loans		405			231			252			20			20
Other real estate owned		1,496			855			542			181			519
Total non-performing assets	$	21,041		$	12,306		$	7,364		$	4,183		$	4,328

Non-performing assets as a percent of loans and
other real estate owned		1.22	%		0.71	%		0.44	%		0.25	%		0.25	%



CITY HOLDING COMPANY AND SUBSIDIARIES
Summary of Total Past Due Loans
(Unaudited) ($ in 000s)

	Sept 30			June 30			March 31			Dec 31			Sept 30
	2007			2007			2007			2006			2006

Residential real estate	$	4,500		$	3,354		$	2,372		$	4,534		$	4,072
Home equity		1,075			879			999			1,083			1,412
Commercial, financial, and agriculture		311			2,248			1,185			2,082			1,970
Loans to depository institutions		-			-			-			-			-
Installment loans to individuals		279			370			283			389			495
Previously securitized loans		948			799			596			1,110			949
Overdraft deposit accounts		575			692			500			652			548
Total past due loans	$	7,688		$	8,342		$	5,935		$	9,850		$	9,446

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